Stocks Jump To Record Highs As Bond Yields, Economic Data Dump

Ugly retail sales and dismal industrial production capped a gravely disappointing week for US macro data, tumbling into the red for the first time in 3 months...

Source: Bloomberg

As four GDP-tracking estimates came down an average 0.43-pp between last Friday and today.

And by the end of the week, stocks had pushed to record highs and Treasury yields had collapsed to two-week lows (an implied 500-Dow-point divergence)...

Source: Bloomberg

How will that end?

Dow led on the week as multiple "trade deal is close" comments juiced the markets again and again (Trannies lagged)...

Source: Bloomberg

Chinese stocks were ugly this week...

Source: Bloomberg

European stocks were more mixed with Spain lower and the rest marginally higher...

Source: Bloomberg

The US equity market open appears to be a very bullish event...

Vol was crushed at the close to force The Dow to close above 28,000 for the first time...

In the US, defensives dominated the market gains...

Source: Bloomberg

Healthcare surged to new record highs on Elizabeth Warren's Medicare-for-All flip-flop...

Source: Bloomberg

Short squeeze after short squeeze were ignited this week on the heels of various "trade deal is close" bullshit headlines...

Source: Bloomberg

The S&P is now at its most overbought since late April...

Source: Bloomberg

Buybacks continue to dominate...

Source: Bloomberg

VIX continued its collapse this week...

..crashing to an 11 handle...

...and sending the term structure to its steepest since just before the VIXmageddon as XIV imploded...

Source: Bloomberg

But that doesn't stop the world and their pet rabbit shorting vol - to yet another new record short (5th week in a row)...

Source: Bloomberg

Credit markets continue to decouple from stocks...

Source: Bloomberg

Especially in CLO-land...

Source: Bloomberg

Treasury yields all tumbled on the week with the short-end underperforming...

Source: Bloomberg

This was the biggest weekly yield compression since September...

Source: Bloomberg

The Dollar ended the week lower (with the last two days saw the biggest drop in a month)

Source: Bloomberg

Yuan ended the week marginally lower (but rebounding back above the Yuan fix overnight)...

Source: Bloomberg

Cryptos all drifted lower this week after a big surge last weekend...

Source: Bloomberg

Gold and Silver both rallied this week while copper dropped (and crude played insane ping pong on trade/OPEC headlines)...

Source: Bloomberg

WTI continues to swing between rails in a tight range...

 

 

Notably, precious metals rallied this week amid the biggest outflows since Dec 2016...

 

 

And finally, amid all the political circus this week, President Trump's approval rating surged to a 5-week high...

Source: Bloomberg

And in case you wondered why stocks just keep rising despite dismal earnings and deteriorating macro data...

Source: Bloomberg

It's simple - the Fed is expanding its balance sheet at the fastest pace since the very peak of QE3 money-printing...

Source: Bloomberg