Stock markets were broadly sideways today as we saw rallies in US treasuries and the Euro against the dollar. The most notable feature of this current market is the continued divergence between the US stock and bond markets.
5 year treasuries had a strong auction, pushing the curve even higher. Treasury futures were pushed up overnight by strength in the European bond market, especially German Bunds
Several stocks that had been beaten down saw a pop today, including QIHU, which has seen its price swing from over 120 to under 60. Today it rallied above 75 for the first time since mid September, only to give back some gains later in the day.
PCLN also saw its shares rise. It has now erased all the loses it suffered earlier in the month.
Shares of biohazard suit manufacturer LAKE rose today. No specific news to explain the pop as of yet, but it has been heavily shorted after rising as high as $29 share in October. It has seen its sales spike due to increased demand from fighting Ebola.
The yen arrested its decline against the dollar. Last night the BOJ released the minutes from its last meeting. Some governors expressed concern at the expansion of central bank assets.
Gold futures rose slightly today. Through last week, gold declined 0.3 percent this year. The metal in 2013 tumbled 28 percent, ending a 12-year bull run. A second straight annual drop would mark the longest slump since 1998.
The e-mini S&P 500 futures sold off a bit in the morning, most likely profit taking traders trying to take advantage of the increased market liquidity on the open. Both GDP and the Case/Shiller home index came in above expectations. Volume was below average which is to be expected as most traders are on vacation.
The Euro continued its slight rise against the dollar, following through on yesterdays move to the upside. The Euro has declined from a high of around $1.4 since May 2014.