The Dow gained 557pts or 2.13% to 26,642 while the S&P500 put on 1.34% to 3198 and Nasdaq gained its footing +0.94% to 10,488. It wasn't the monsters of tech nor the banks that contributed to most of the gains. XLF put on 0.5% pulled down by Wells Fargo and Citigroups losses of 4.57% and 3.93% respectively. The other sectors appeared to receive rotational support.
The three US banks loss provisions have surged as shown in the chart below, JPMorgan, Citigroup and Wells Fargo (BofA, and a bunch of other banks are set to report on Thursday) set aside almost $28 billion for bad loans inQ2, up almost $10 billion from last quarter,
And I believe this could be just the tip of the iceberg. It is time to avoid Everything Debt.
With banks making up a significant weightage in the ASX, it is no surprise that ASX futures is somewhat muted at this point.
Precious metals sector experienced a whipsaw overnight but settled at US1812/oz slightly higher than when our market closed yesterday but silver zoomed to US19.70 and looking very positive. But that did not deter market participants from buying big into the sector, with GDX higher by 3.93%. HUI +4.44% , GDX +3.99% and PureFunds Junior Silver +4.17%.
US equity markets are higher after-hours following news that Moderna’s potential COVID-19 vaccine produced immune responses in patients in the early stage trial, according to results published in a peer-reviewed journal for the first time.
The US biotech company’s vaccine candidate produced antibodies in all 45 participants in the first cohort of the phase one trial run by the National Institutes of Health, while the paper said there were no safety problems that could curtail further trials.
....but we have heard this so often and they are still very preliminary indications.
A volatile day got ugly fast early triggered by the inflation data but was rescued by relatively positive virus reports from various states sparking the usual buying panic in stocks. A late-day panic-bid rescued everything of course as a MoC buy hit the tape...
The Dow rose 600 points, back above yesterday's highs, finding support early on at the 200DMA...
From the June 8th highs, the non-Nasdaq indices are coming back a little...
But, Nasdaq was the laggard once again with The Dow outpacing it for the 3rd straight day - the biggest outperformance in 4 months...
And while stocks overall were bid (led by the Dow), investors also bought bonds...
Source: Bloomberg
They also bought bullion... Source: Bloomberg
And they bought Bitcoin... Source: Bloomberg
You want the truth!
You can't handle the truth!
Value outperformed Growth for the second day in a row... Source: Bloomberg
FANG Stocks plunged over 10% from yesterday's highs before bouncing back intraday... Source: Bloomberg
TSLA could not hold its manipulated opening ramp gains for the second day in a row...
WFC was ugly as JPM clung to gains after earnings... Source: Bloomberg
10Y Treasury yield closed near 3-month lows... Source: Bloomberg
The Dollar reverted back to the lower end of its recent range... Source: Bloomberg
Cryptos were mixed today, weak overnight but bid from the European open... Source: Bloomberg
Commodities didn't move too much today aside from oil which bounced during the US day session (ahead of tonight's inventory data) Source: Bloomberg
And finally, for all those panicking about a "second wave" and demanding nationwide lockdowns, perhaps an uncomfortable glance at the rate of deaths might change your mind about just how much hysteria is required... Source: Bloomberg
