May 2020 - Page 17 of 49 - Financial Occultist

The last 4 of 5 days have been to the upside for the major indices

The major indices are closing with solid gains on the day. The NASDAQ index closed at the highest level since February 21. Facebook and Amazon closed at record high levels. The S&P index is closing higher but after trading above its 100 day moving average at 2975.37, the pair has rotated lower and will close below its 100 day moving average at 2971.61. So that is a bit of a disappointment

The final numbers are showing:

The S&P rose 48.67 points or 1.67% to 2971.61. The high reached 2980.29. The low extended to 2953.63.
The NASDAQ index rose by 190.67 points or 2.08% to 9375.77. The high price extended to 9392.816. The low price fell 29304.199
The Dow industrial average rose by 369.04 points or 1.52% to 24575.90. The high price extended to 24649.48. The low fell to 24455.94

some big gainers today included:

Twitter, +7.83%
Alcoa, +7.88%
Deutsche Bank, +6.23%
Facebook, +6.04%
Wynn Resorts +5.88%
Slack, plus a 5.7%
Southwest air, +5.27%
United Airlines, +5.24%
Disney, +4.86%
Intel, +4.69%
Morgan Stanley, +4.4%

losers today included:

Lockheed Martin, -2.46%
Northrop Grumman, -1.94%
Chewy, -1.62%
J&J, -0.9%
Merck and Company, -0.86%
United health, -0.42%
Verizon, -0.22%
Pfizer, -0.13%
Home Depot, -0.03%

Thought For A Day

21-May-20 06:15 am

Anirudh Sethi

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20-May-20 10:53 pm

Analysis

Anirudh Sethi

Don’t you guys get it? The S&P 500 is just following the unemployment rate.

20-May-20 10:49 pm

Anirudh Sethi

Major European indices closing higher, reversing earlier session lows

20-May-20 09:17 pm

Anirudh Sethi

German DAX rises 1.5%. France’s CAC up 0.9%

The major European indices are closing higher and in the process reversed earlier session lows. Provisional closes are showing:

German DAX, +1.5%. The low extended to -0.87%
France’s CAC +0.9%. The low extended to -1.39%
UK’s FTSE, +1.2%. The low extended to -0.68%
Spain’s Ibex, +1.2%. The low extended to -1.66%
Italy’s FTSE MIB, +1.1%. The low extended to -2.11%

In the European debt market, the benchmark 10 year yields are ending the session lower. The biggest decline are was France at -1.7%. It moved above the 0.0% level at the highs today (high yield reached 0.002%). Buyers came in and pushed yield down into the close (trading at -0.033%).

In the UK today, the treasurysold £3.8bn of three-year gilts at a yield of -0.003%. That was the first sale below 0% in the UK as investors look for further declines in UK rates as the battle Brexit and coronavirus headwinds.

Bank of England’s governor Bailey said that the challenge for the central bank is getting inflation to return to target.

German DAX rises 1.5%. France's CAC up 0.9%

Global monetary policy.

20-May-20 08:58 pm

Anirudh Sethi

Today’s 20-year Treasury auction will be the first since 1986

20-May-20 08:46 pm

Analysis

Anirudh Sethi

Interesting day in the bond market

The Treasury will jump into 20-year sales today for the first time in 34 years.

The initial auction of $20 billion is a relatively large one and is a reminder of how much debt the US is piling on. The notes are trading at 1.230%-1.220% on the bid/ask in the when-issued market. That puts them much closer to 30-year bonds (1.44%) than 10-years (0.71%).

“An auction concession of some sort is warranted; although we anticipate the new issue will be well absorbed even if it comes at a modest discount,” writes Ian Lyngen, head of US rates strategy at BMO.

The broader bond market is reluctant to send and clear signals at the moment. 10s have been in a tight range for six weeks now and it’s tough to envision a clear break on either side because you have inflation keeping yields up and the Fed keeping them down.