Summing up the day on CNBC in 19 seconds...
Crude (and USDJPY to a lesser extent) was the driver today as overnight stimulus hope from China's crap data was toppled by Iran's double-whammy of increased production and price cuts to Europe...
Your day in equity markets explained... China crap data (sell), that's great news - moar stimulus (buy), but Iran just cut prices of crude to Europe (sell), and now the Saudis have threatened to use nukes against Iran (sell more)... but then - spurious headline saved the world - CHINA SHOULD CUT RESERVE RATIO, RAISE DEFICIT: SEC. JOURNAL
All fundamentals...
The China headline ramped S&P Futs perfectly to VWAP...
Cash indices all gave up their post-China gains before the spurious China headline appeared (just a reminder - the last few RRR cuts have been utter failures)
FANGs ramped the open - tumbled all the way into the red - then were rescued by Chinese headlines...
Energy stocks were hammered but the bounce rescued financials
It appears concerns about energy loan transparency are weighing on regional banks...
Tumbling to the lowest since Oct 2013...
Energy credit risk continues to surge to record highs...
Investment Grade credit is still worrisome...
BUT - ex-Energy credit risk is surging also and following a worrisom contagion pattern...
Treasury yields ended the day modestly higher whipsawing intraday... with 10Y getting close to 2.00%
The USD Index ended the day unchanged, holding yesterday's gains...
Crude and Copper loved the crap China data and ripped higher on stimulus dreams only to dump it all back once US equities opened. Gold was flat whilke Silver rallied...
Charts: Bloomberg
Bonus Chart: BofA sees S&P 500 pricing in a 50% chance of recession
Bonus Bonus Chart: Earnings expectations are rolling over again!! (h/t @Not_Jim_Cramer)
S&P Forward EPS Estimate Rolling Over. Again. pic.twitter.com/Dq99eR35j1
— Not Jim Cramer (@Not_Jim_Cramer) January 19, 2016