PMI beat, ISM missed (after all fabrications), and construction spending missed big... so sell bonds and buy stocks!! Today saw Treasury yields spike 5-7bps (10Y's biggest 1-day move in over 6 weeks). Stocks were mixed with Trannies surging once again to record-er highs (+0.5%) and Russell (-0.5%) along with Nasdaq modestly red (S&P and Dow also record highs). Of course all the excitement of the day was the post-ISM reaction and re-reaction (which saw the Russell lose 1.2% at its worst). The USD rose 0.3% (best day in a month) to 4-month highs. Gold, silver, and oil all fell 0.4% or so (reflecting USD strength) as Copper surged 1.4% (presumably after China's PMI over the weekend). VIX was higher and notably divergent from stocks once again...
Mixed day for US equities... low volume once again but a major divergence between Russell and Trannies -
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which we have not seen in the last 10-day meltup
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Since we got back from Memorial Day, things have not been going well for the "growthy" Russell 2000...
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"most shorted" names sold off notably today (just like Friday) and have recovered all the squeeze from pre-Memorial Day...
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But bonds saw selling all day - except the flush after the initial weak ISM
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VIX remains decoupled from last week's exuberance...
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But JPY caught up and Treasuries appear to be trying to...
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The USD rose 0.3% today -its best best in a month - to the highest in 4 months...
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And the USD strength is pressuring commodities (aside from Copper which surged on the back of China PMI we presume).
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The day across stocks, bonds, and gold as ISM hit and adjusted...
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Charts: Bloomberg