Markets started the day in exuberant mood. Investors were greatly rotating away from bonds into stocks, "war-off" premia were holding up and oil prices were not shooting higher. Then the macro data hit - better-than-expected - and things got a little anxious in equity land (and bond yields pushed higher in Taper-on mode). Then Boehner et al. showed their support for Obama and stocks started to crumble. Commodities had already risen back above Friday's close (dismissing any de-escalation) and while stocks stalled on their collapse lower at Sunday's futures open, they inevitably dumped back to unchanged from Friday. VIX jumped back above 17.25% and the curve flattened and bonds (slow to start) saw yields dump back lower. A late-day pure algo run to VWAP saved the day and closed us green in stocks buy Trannies are not happy as WTI closes back above $108.50.
Cash equity markets followed a similar pattern to Friday... with a late-day stck save by the Johnny 5...
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S&P futures dumped to unchange from Friday and were rescued by an algo ramp to VWAP into the close...
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Since Kerry's 8/26 speech, only energy is green and builders and financials are hurting...
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Treasuries were late to the safety party and also did not participate in any great way as stocks ripped into the close...
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it seesm hard assets were the safe-haven choice of the day as Oil and Gold pushed higher tick for tick...
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The FX markets were very quiet...
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Some very different reactions across asset-classes today to the news and data... (Stocks shrugged at ISM but were volatile then dumped on Boehner; Bonds dumped on ISM but were slow to rally back on Boehner as it seemed 'safety' was sought in Gold and Oil)
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Charts: Bloomberg