PMI beat, ISM missed (after all fabrications), and construction spending missed big… so sell bonds and buy stocks!! Today saw Treasury yields spike 5-7bps (10Y's biggest 1-day move in over 6 weeks). Stocks were mixed with Trannies surging once again to record-er highs (+0.5%) and Russell (-0.5%) along with Nasdaq modestly red (S&P and Dow also record highs). Of course all the excitement of the day was the post-ISM reaction and re-reaction (which saw the Russell lose 1.2% at its worst). The USD rose 0.3% (best day in a month) to 4-month highs. Gold, silver, and oil all fell 0.4% or so (reflecting USD strength) as Copper surged 1.4% (presumably after China's PMI over the weekend). VIX was higher and notably divergent from stocks once again…
Mixed day for US equities…
But not for bonds…
VIX remains decoupled from last week's exuberance…
But JPY caught up and Treasuries appear to be trying to…
The USD rose 0.3% today -its best best in a month – to the highest in 4 months…
And the USD strength is pressuring commodities (aside from Copper which surged on the back of China PMI we presume).
The day across stocks, bonds, and gold as ISM hit and adjusted…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1n5voZc Tyler Durden