Stocks Bounce, Erase Trade Tantrum Losses, Amid Bond Bloodbath

China didn't shit the bed... so everything is awesome again (and Trump's just negotiating so don't sweat those other few hundred billion dollar tariffs)...

 

It looks like The National Team wanted to make sure that CHINEXT did not extend its losses beyond 2014 and saved SHCOMP after the lunch break...

 

US equity indices surged on the day...

 

But as Futures show best, while The Dow and S&P managed to erase yesterday's losses, Nasdaq did not... and late-day weakness spoiled the party altogether...

NOTE - Algos lifted Nasdaq futs to perfectly top-tick the cash opening level from yesterday before reversing

 

Tesla tumbled on the day despite tech's gains...

 

FANG Stocks gained on the day but were unable to erase yesterday's losses...

 

And then there's Tilray...$154 highs just two months after it IPO'd at $17...

Tilray soared 24% after the Canadian cannabis company received approval from the U.S. government to import medical cannabis into the country for a clinical trial. The gain added another $3 billion to Tilray’s market cap, pushing it to $14 billion to top peer Canopy Growth Corp. and making it the largest cannabis company.

 

Do investors really believe China's $60 billion tariff response is all there is? Take a look at bond yields today!

Treasury yields surged today...

 

10Y Yields pushing to May highs above 3.00% (3.05% highs today, +7bps from lows) - we wonder whether this was China rattling their sabre a little at Trump's tariff tantrum...

The last time Treasury yields spiked like this was July 20/21 following China's huge weakening of the fix and "weaponization" of the yuan...

 

The rise in yields has pushed 2Y to its cheapest relative to stocks since Dec 2007 - the market top...

 

The Yield Curve steepened notably - back to unchanged on the month...

 

 

The Dollar trod water after flip-flopping the last few days...

 

The offshore yuan strengthened from the post-tariffs low last night...

 

Another mixed day for EM FX overall drifting very modestly higher. The Ruble and Rand surged on the day as Lira, Rupee, and Argentine Peso tumbled...

Crptos managed gains on the day with Ripple ripping 15% higher after execs said the company could launch a commercial version of its payment platform xRapid "in the next month or so"...

 

Crude gained on the day but copper soared on chatter of China stimulus, PMs drifted modestly lower...

 

Gold futures managed to hold on to $1200...

 

Copper rejected 2.60 once again and soared...

 

Commodity land is getting interesting in other areas...

Lumber futures have tumbled to 18-mo lows, despite all the rhetoric about tariffs sending prices soaring...

 

But Soybean prices fell to a decade-low on Tuesday after data pointed to a quickly advancing US harvest and as the Trump administration escalated trade tensions with the China, the largest destination for American exports of the legume.

 

Finally, we note that the S&P 500 Price-to-Sales remains near record highs...

And as the stock market pushes higher, so professionals continue to bid for crash risk protection... (SKEW inverted)