The Dow gave up an initial 400 pt rally to close 218pts lower...

The Dow gave up an initial 400 pt rally to close 218pts lower largely on late hour selloff, while the S&P500 also dropped by 0.7% to 2848 remaining within the 2800-2900 zone. The downward pressure came largely from financial and property stocks with XLF (financials) dropping 2.1%. Nasdaq bucked the trend closing 0.5% higher led once again by the monsters of tech, with Apple hitting $300. The FAANG stocks have hit another record run and you would wonder that at some point, the run must run out of fuel and would be a major drag on the indices when that happens. The rally is very highly dependent on gains in the FAANG stocks to offset everything else. And when you look at the indices and think everything looks ok, it is actually a mirage. It is never sustainable when the indices depend on a few stocks to hold itself up.   

It looks like this virus is becoming more of a mystery each day , now Governor Cuomo (NY) announced that two thirds of new hospitalised cases originate from people who have been staying home. Either its contracted through members of the family who are asymptomatic or they receive guests into their homes.
Nasdaq Continues Record Run Despite Biggest Job Loss Ever

by Zero Hedge
Wed, 05/06/2020 - 16:01



Nasdaq outperformed once again today...(as everything else lagged)...NOTE - like yesterday, everything got a bit jiggy in the last 20-30 mins...

...because nothing says buy stocks like over 20 million job losses!!


Source: Bloomberg
Sending the Nasdaq Composite within a few points of unchanged for 2020...

Source: Bloomberg
And Nasdaq is roaring as earnings collapse...


Source: Bloomberg
Makes you wonder if anyone is actually paying attention...
Bank stocks were battered again (despite higher yields, steeper curves)...

Source: Bloomberg
The Virus Fear trade worsened notably again...

Source: Bloomberg
HYG and LQD are giving back lots of the Fed-supported buying binge...

Source: Bloomberg
Continued dramatic corporate issuance (and a heavy Treasury calendar ahead) sent longer-dated yields higher.

Source: Bloomberg
The moves have been dramatic jerks higher this week which suggest rate-locks, not systemic selling

Source: Bloomberg
The yield curve steepened significantly today (2s30s +9bps)...

Source: Bloomberg
The dollar managed gains, pushing up towards its recent downtrend channel...

Source: Bloomberg
Cryptos were higher on the day...but it was clear there was a rotation into Bitcoin from altcoin...

Source: Bloomberg
With Bitcoin testing $9400 intraday as the halving looms...

Source: Bloomberg


Gold was thumped back below $1700...

WTI could not make its mind up but ended lower on the day - breaking its 5 day win streak...

Wholesale beef prices are screaming higher, but cattle prices plunge as supply chains break...

Source: Bloomberg
Copper and Gold are signaling stocks are way over their skis here...

Source: Bloomberg
And finally, FANG stocks have broken to a new record high... as if the world was not locked down, economies on their backs.

Source: Bloomberg
Don't you just love buybacks!!??