While Europe was ripping higher this morning, commodity prices were slipping quietly lower and Treasury prices higher as the USD was very modestly higher and US equity futures were treading water. The payroll print provided the fuel to pump us up to within a tick of the year's highs in the S&P, smashed the USD weaker, twanged Treasury yields higher and sent Financials and Materials zooming higher. Unable to break those record highs, stocks reversed as Energy (Oil was sliding once again) and Tech (AAPL) led them lower. Within a few hours we had retraced the entire NFP spike in FX and equity markets but Treasury yields kept pushing higher (30Y +14bps on the week). Gold closes green on the week while Oil/Silver/Copper were red as the AUD lost almost 2% against the USD and EUR gained 1%. AAPL tumbled 2%, closing below its 50DMA for its biggest 2-week slide in six months. VIX was jabbed under 14% briefly but ended fractionally lower on the day at 14.4% (-0.2vols). Equities and risk-assets disengaged today and equity's inability to manage a late-day ramp (and AAPL closing at lows) must be a little concerning for the cheerleaders.
Gold and Silver remain the post-QEternity winners, followed by the Dow, with Oil and European stocks lagging...
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and while the Transports remain the post-QEternity losers, they have caught up a little this week as the Russell and Nasdaq pull back...
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S&P futures gave back some of the week's gains and was unable to stage a decent ramp into the close. We have seen three high volume, high average trade size sell-offs this week punctuated by a lovely linear tickle-algo-driven ramp...
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Gold drifted lower post-NFP, and while the USD and stocks diverged from the barbarous relic in the short-term, they repidly turned back around as the post-European close proceeded. Bonds kept pushing higher in yield to end somewhat synchronized on the week with stocks (from their early Monday correlations)...
Quite a week for Oil... but Gold managed to close the week positive (up 0.5%) and Silver and Copper unch...
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The USD, aside from the 70-pip ramp-and-return in EUR this morning, has been dead-pan flat for over 24 hours - ending the week -0.75%. AUD has lost significant ground on the week and the day (as JPY also dropped 0.85% on the week against the USD)...
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Treasuries slid all week - with 30Y ending +14bps and 10Y +10bps - all inching close to unch from QEternity levels...
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While we touched the year's highs in the indices today, the sectors are behaving quite differently since the post-QEternity peak... with Healthcare +3.5% since the 9/14 peak, Staples +1.5%, Utilities Unch, Financials & Tech -2.5%, and Energy -4.8%...
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and the major financials tried to recapture the 9/14 post-QEternity highs today but were immediately sold... BofA and MS are -4.5% from that peak despite the apparent euphoria...
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So the indices keep on suggesting the world is fixed and life is good, the risk-aversion seems high.
Charts: Bloomberg
Bonus Chart: unLOCKed value... after IPOing at $9.00 per share, opening at $8.66, spiking to $9.02, LOCK has dropped to close at its lows at $7.30 - for a 19% wealth transfer in 3 days - congratulations...
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