While, as to be expected, Janet Yellen quickly walked back her "interest rates may need to rise, if" comment that shook tech stocks (in particular) yesterday, the market's instant reaction to her comment, and her ultimate reaction to the market's reaction, speaks to two things.
1. The very precarious nature of today's stock market, that, by the way, hovers at literally all-time high valuations.
2. The utter owning of policymakers by the stock market.
Her later-in-the-day comment got equity futures off the floor and kept them in the green leading into today's cash session...
Need I lecture, once again, on the artificial nature of what presently underpins equity prices? On "thin ice", on "bad shots", etc.?
I'll keep this morning's note brief, as you'll be receiving our typically more robust weekly message sometime later today.
Asian equities were mixed overnight, with half of the markets we track (that were open) finishing lower overnight.
Europe, on the other hand, is notably green this morning, with all but 2 of the 19 bourses we follow trading higher.
U.S. major averages are (save for SP500 EW and the Russell [both flat]) catching a bit of a bid as well: Dow up 43 points (0.12%), SP500 up 0.36%, SP500 Equal Weight down 0.07%, Nasdaq 100 up 0.72%, Nasdaq Comp up 0.61%, Russell 2000 down 0.03%.
The VIX (SP500 implied volatility) is down 4.93%. VXN (Nasdaq 100 i.v.) is down 3.77%.
Oil futures are up 1.16%, gold's up 0.08%, silver's down 0.43%, copper futures are down 0.25% and the ag complex is up 0.69%.
The 10-year treasury is down (yield up) and the dollar is up a notable 0.43%.
Led by MP (rare earth miner), uranium miners, energy stocks, ALB (lithium) and wind stocks -- but dragged by utilities stocks, base metals futures, silver, bank and staples stocks -- our core portfolio is up 0.46% to start the day.
Well, the intro to this note inspires to me to quote from that daily devotional I published back in 2013:
"We’re at the mercy of a few very bright, academically gifted appointees who’ve proven to be most adept at test-taking and, alas, mess-making."
Marty
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