If only stock indices only included stocks that were green…Â IBM’s 80-point weight on the Dow disappointed some but that was no problem for the index-pushers who needed the S&P 500 to tap its 200DMA. The only thing that mattered to stocks today was EURJPY… and that managed to get the S&P 500 ‘almost’ to its 200DMA (but noit quite) and ensure a green close for the Dow.
The USDollar slipped lower all day (-0.4%) led by EUR and GBP strength. Gold ($1245) and silver gained on the day but even with a weak USD, oil and copper dropped (with oil very volatile).Â
US Treasury yields drifted lower by 1-2bps (thin trading) decoupling from the post-European close exuberance in stocks. HY credit decoupled from stocks initially (post-Europe) but as stocks ramped so did spreads and VIX continues to run ahead of stocks (under 19 today) as it appears hedges are being lifted. Of course, AAPL was a big help, up over 2% pushing back towards its magical $100 ahead of this evening’s results. S&P futures volume was dismally low.
First – spot the rally days in the S&P 500 (based on the lower pane only)…
On the day, stock indices were green (except the IBM-stunted Dow)
And from Bullard’s QE4 comment…
and Financials and Tech are underperforming off the Bullard bottom… with Homebuilders squeezed higher
VIX notably ahead of stocks…
And while HY decoupled initially, it ramped pretty rapidly as stocks surged…
Treasury yields dipped lower on the day… rallying after Europe closed…
Decoupling from stocks…
The USD drifted weaker all day too (led by GBP and EUR strength – and AUD ahead of the China GDP tonight)
But stocks only cared about the fun-durr-mentals of EURJPY (notably decoupled from USDJPY)
USD weakness helped PMs modestly but not copper and oil…
With some notable volatility in oil prices today… but that’s nothing new…
