Bessent’s Big ‘Bazooka’ Not Big Enough, Trump’s $5G Promise, Debt Woes
Let’s see why the $6B repurchase plan let down investors and bond traders, check the math on Trump’s $5G ‘dividend’ promise, and … a Nvidia probe.
Two Down, Two to Go
Wednesday was another tough day up and down Wall Street. Crude oil was up almost 4%. Treasury yields continued to rise. Oh, and equities ended up getting slapped around a bit.
The S&P 500 gave back 0.48% for the regular session while the Nasdaq Composite surrendered 0.64%. Yes, yields still went the wrong way despite the fact that the U.S. Treasury Department announced that it would triple its liquidity stability program buyback operation to $6 billion worth of 10-Year to 20-Year bonds.
This move followed the Treasury’s announcement last month that it was going to at least double those repurchases.
Energy ($XLE), for obvious reasons, was the only S&P sector to show gains on Wednesday as the Industrials ($XLI) led 10 sector SPDR ETFs into the red. Datadog ($DDOG) and Meta Platforms ($META) were the top performers in the S&P 500 for the day. The downside was led by Casey’s General Stores ($CASY). That stock was pummeled for a loss of 14.2%.
Two down, two to go. Dougie is still off tomorrow, but I will not be your tour guide. One of my colleagues will be at the helm.
I wish you all a peaceful evening. It has been a pleasure to work with you these past two days, as it always is. May God guide you and hold you until we meet again.
Sarge
Position: None
Fighting Flares Up Again in Iran, Warsh Turns Hawkish, Treasury Yields Climb
The U.S. hits Iran over the weekend in renewed fighting and Fed chair vows to go after inflation; also, let’s check the week ahead.
That’s a Wrap!
That was a long, tough day. All of that macroeconomic data did nothing to spark the marketplace. We had to wait until the closing bell to see some of the type of action we, as traders, crave.
Equities closed slightly lower on Wednesday as traders awaited Nvidia’s ($NVDA) results, among others. The S&P 500 ended almost flat at -0.02%, while the Nasdaq Composite gave back -0.08%. Can’t make that stuff up.
Five of the 11 S&P sector SPDR ETFs wound up in the green, led by industrials ($XLI). Health Care ($XLV) was the weakest performer among these funds.
Treasury yields climbed. The U.S. 2-Year Treasury yield moved up 3 basis points to 4.21%, while the U.S. 10-Year Note paid 4.65% (+3 bps) by day’s end. The yield on the U.S. 30-Year Treasury yield ticked up 1 basis point to 5.17%.
As I send this note, we are still waiting on Nvidia. CrowdStrike ($CRWD), Okta ($OKTA) and Salesforce ($CRM) have all already reported. The market has react favorably to all three.
Position: Long NVDA, CRWD equity
Iran Put on Notice, Partners Warned; How to Corral the Yield Curve
Trump vows economic pain for Iran; my colleague has an intriguing (and smart) economic plan; bracing for the week ahead.
This Chart Shows How Poorly Most Stocks Are Performing
Let’s take a look at an indicator that I don’t normally follow, but which is giving a powerful signal right now.
Trump’s Ultimatum, Manufacturing Cranks Up, Palantir Pops
Trump means it … this time … on Iran; U.S. manufacturing churns higher, and Palantir? Wow!
Rinse, Warsh and Repeat; More War; Wall Street Ugliness
Let’s see what just happened at the FOMC, ask whether the Fed is really ‘fractured,’ assess the market damage and look at the latest in the war.
Why I’m Eyeing Lockheed, RTX; Fire in Hormuz; SpaceX Lands on … Nasdaq 100
As U.S.-Iran truce hits bump after ship hit in Hormuz, I’m eyeing adding to these defense stocks; also the latest on NATO, SpaceX and Monday’s market.
Semi Shocker; Micron, Intel, AMD Hit Home Runs; Warsh Gets to Work
Let’s pop open the hood and look at the market in June and Q2 to zero in on the winners; also, why we must watch the new Fed head closely today.