Stocks Meandering for now
Dollar continues to press higher, but no Short Squeeze burst much to my surprise, Euro 2 month low the run up in Dollar not hampering or slowing the re- reflation trade as Stocks ease higher and Commodities are split. Precious metals Sideways to lower, energy higher, base metals sideways to lower. Long end bond lower as yields creep towards one-year highs a bit of higher inflation and good economic data weighing on futures. 5s 30 yield curve steepest in almost 5 years. A busy day for earnings no headline grabber type stocks,46 SPX companies report today. Gilead science and peloton after the close. Qualcomm yesterday warned of chip shortages a common theme throughout the sector Qualcomm down 6% or so premarket. Something lost in the Amazon earnings was that Company breached the $1B a day in sales average in 2020 ok then From Goldman Sachs Head of Commodity via BBg “His view is that we’re heading into a new commodities bull-market super cycle, reminiscent of the 1970s. He argues that President Biden’s policy priorities will contribute to a boom in oil prices, and other industrial commodities.
Today Yellen and heads of Sec and other regulators will gather to discuss Robinhood and everything Redditt, nothing of substance likely to come from it but look good in headlines. Bloomberg comment here that Robinhood’s option trading platform last month was the second most active platform next to Schwab.
With the run up in corn yesterday possibly on rumors of a Big Export order Out of China all eyes will be on the 7:30 Export order data from USDA. Hogs as usual will be in focus take note that Reuters reporting that another Swine flu outbreak is taking hold in China. Crop report Tuesday may continue to limit volatility and interest in grain complex until the release. Via pro farmer “Another blizzard will track its way through the Midwest today, with temperatures expected to dive in its wake. That helped push cash hog prices $3.50 higher on Wednesday, as marketing’s will likely slow in states impacted by the wintry blast”. Not a surprise country who have seen a successful roll out of vaccine’s are seeing their currency’s outperform peers -BBG.
Stocks Mixed worldwide Spoos little changed Nasdaq up a touch, Europe steady to higher Shanghai -.4%, Kospi -1,35%, NKY -1%, hang Seng closed-.6%. BOE hinted that negative rates are not happening Soon, 10-year gilt yields highest since 3-2020 and GBP rallying a bit.