With Bono's words still hanging in the air, the market's response to Apple's unveiling is simple: "we still haven't found what we're looking for." Some argue the weakness is AAPL-related, others point to AUDJPY fun-durr-mentals, but the bottom-line is the Fed hinted at more hawkishness, short-term bonds are weakening (long-end rally with notable flattening), VIX is rising and inverted (to 1-mo highs), and HY credit is getting ugly once again as it seems stocks are indeed catching on to the fact that the Fed will really be removing the punchbowl... S&P fell to 3-week lows as AUD collapsed (but EUR strength sent the USD lower on the day) and lost the crucial 2,000 level by the most since it was first breached.
A brief reminder from last night... other asset-classes get it... [7]
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This is Apple's reaction to the big unveiling...
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What really matters...
S&P intraday correlation today: vs. AAPL: 84% vs. AUDJPY: 90%
— Not Jim Cramer (@Not_Jim_Cramer) September 9, 2014 [10]
But notice that its impact on the S&P was not followed through by AUDJPY - which after all is what matters...
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as S&P 500 lost 2,000 by the most since its initial breach...
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Leaving stocks down notably on the week... as Nasdaq plunges on AAPL
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and now red post-Dismal Jobs data...
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Credit was ugly today... and stocks once again appear to be catching down...
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Stocks and bonds appear to have recoupled for now...
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Treasuries saw notable flattening today... (5s30s back under 147bps - near multi-year lows)
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FX markets but as stocks started to fade so the USD saw notable selling across the board...
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which sparked some buying in PMs...
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Copper and AUD weakness on the day was very notable - we suspect related to implied growth weakness from the huge CNY adjustment in China overnight
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Charts: Bloomberg
