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'All Drugged Up And Nowhere To Go' - S&P Flatlines As Bond Yields, Dollar Surge

Hmmmm...Wall of worry indeed...

 

Chaotic flip-flopping headlines hit Spanish stocks today (and continued after the close)...

 

While Trannies had a big day, S&P and Nasdaq was very quiet...

 

And even as VIX rallied, S&P Futs flatlined...

 

The decoupling continues between The Dow and Dow VIX (and is very clear from the chart, the surge in 2Y yields) which all started when China intervened in its FX market...

 

While the major indices were dead-stick today, there were some significant moves under the hood...

CVS/Walgreens tumbled on AMZN news...

 

Biotechs tumbled on Celgene, then fell further on Trump's opioid speech...

 

FANG Stocks bounced today ahead of tonight's AMZN and GOOGL earnings...(but remain lower on the week)

 

Interestingly, 'High-Tax' Corporations underperformed the broad market despite the adoption of the budget resolution...

 

High yield bond prices leaked back lower to crucial technical support once again...

 

The yield curve flattened very modestly today but banks didn't care...

 

Treasury yields rose once again...

 

Sending 10Y Yields to 7-month highs...

 

Which sent the UST-Bund spread soaring over 200bps (as Draghi extended QE) to six-month highs...

 

The Dollar Index sprinted higher - the biggest day for the dollar in 9 months - to 3 month highs...

 

EUR weakness was the biggest driver of today's push but commodity currency moves (Loonie Central Bank and Aussie CPI) is helping on the week...

 

Dollar strength drove PMs lower but crude jumped on Saudi comments regarding production cuts...

 

Finally, while 10Y Tsy yields are at their 'cheapest' to Bunds in 6 months, Treasury yields are now near their highest relative to equity divi yields in 3 years...