Oil bounced a bit (on Saudi noise)... banks dropped (ahead of CCAR)... Healthcare ripped again (on a bill that appears to be DOA)... and stocks gave up hope in the last few minutes...
Everything was awesome briefly - an opening ramp on crude and some healthcare hope steadied stocks early but that was it. After Europe closed, stocks went nowhere until slumping into the close...
FANG Stocks ended marginally lower, stuck in a very tight range fo rthe last 4 days...
Equities advanced after two days of losses as crude broke a three-day downturn. Treasury yields continued lower with a flatter 2s/10s curve as a strong reopening of a $5b 30-year TIPS auction helped to keep yields in check throughout the afternoon. Fed’s Bullard, in an interview with WSJ, said the Fed’s projected rate path may be too aggressive. S&P reversed early session losses led by advances in health-care stocks with biotech and pharmaceuticals leading the way. The Canadian dollar advanced after a strong retail sales beat while Mexico’s peso gained over 1% vs the greenback.
VIX was clubbed like a baby seal today, but notably S&P Futs did not react too exuberantly... and once VIX had reached Tueaday;s losw it snapped back higher...
Banks were the biggest losers today as Healthcare soared after the GOP Bill was released... (and retail bounced)
Bank Stocks have taken a hit in the last few days...
Hospital stocks soared after the release of the Obamacare replacement bill...
And Biotech stocks are now up almost 10% in the last 4 days to its highest since Jan 2016...
HY Energy credit risk has spiked back to 7-month wides...
But Credit markets continue to show signs of stress...(HY CDX at 2-month wides)
NOTE: Virgin Media pulled a $3.43b 1L TL refinancing from syndication due to market conditions, according traders and portfolio managers who aren’t authorized to speak publicly. Co. launched the repricing on June 15, seeking to shave 25bps off its existing loan. Virgin Media is the 16th loan to be pulled this year...About 10 loans in all were withdrawn from syndication in 2016.
Treasury yields fell on the day across the entire complex (even as stocks rallied) with further flatteniing in 2s30s...
All yield curve bets are collapsing...
Banks remain at a premium to the yield curve's collapse (ahead of tonight's CCAR)
The Dollar Index fell for the 2nd day in a row, having stalled at the payrolls-ledge...
WTI and RBOB rallied modestly on the day after Saudi comments on $60 oil price hope for the Aramco IPO....
Gold rose for the second day (as the dollar slid), pushing back above the 200-day moving average
Dip-Buyers remain absent as Central Bank balance sheets drop most since December...