Business

'Dip-buyers' stepped up bravely to rescue stock markets after Trump Jr.'s email threatened to unravel the hype of Trump tax cuts... but it seems McConnell's sumemr-school for Senators has saved the day as hope is back that healthcare (then tax cuts) will emerge... and the S&P reached unchanged...

The question is - now that the machines accomplished their machines - what happenes next?

Because the dollar is not buying it...

Mark Yusko, CIO of Morgan Creek Capital Management, is unafraid to say it how it is. Recall in May, his keynote address warned:

At China's largest online retailer, TaoBao, customers can now buy literally everything from discounted groceries, apparel and pet food to defaulted loans on their favorite bankrupt steel company or that awesome condo complex in that unoccupied 'Ghost City' they've always adored. 

As an example, you could purchase this lovely snack(?)....

...or this portfolio of 118 non-performing loans from some companies in Yunnan province....

The US Treasury sold $24 billion in 3 Year paper at a yield of 1.573%, the highest since 1.63% in March and above the 6-month average of 1.52%, if stopping through the When Issued of 1.576% by 0.3bps.

The internals were also solid, with the bid-to- cover at 2.87, below June's 3.00 however, again better than the 6-MMA of 2.81. Total bids of $69.4b for $24.5b in notes sold vs six previous auction average of $69.5b in bids for average of $26.0b in notes sold

Well they "built it", but in May, "no one came." Wholesale Inventories rose a better-than-expected 0.4% MoM but sales tumbled worse-than-expected 0.5% (the 3rd monthly decline in a row).

Inventories reversed April's decline...

But sales keep falling... and accelerating...

Automotive inventories rose 0.7% MoM (against April's 1.4% drop) but Automotive sales dropped 0.5% in April.