A wrap of today’s market offered in response to specific request, but for all to share.
Little bit of a screwy day. Not completely out of left field, but a little screwy nonetheless. The day began with UK Prime Minister calling for a snap election. This makes sense from her point of view, as she is dealing for the moment, from a position of strength. This also will push out the need for her to defend herself in another general election until 2022. That should make the Brexit negotiation that much smoother…. should…. unless the situation in Scotland becomes even more complicated. We’ll know more on 8 June. What we knew today was the Pound screamed higher, kissing 1.29 vs. the US Dollar at one point. FYI, the Euro, and the Yen also took flight against the greenback.
Nothing to See Here
The there were some disappointing quarterly earnings results. UAL dragged the Transports out back, while GS, and JNJ put the whammy on the DJIA. Should I mention HOG? Jeekies. Oh, the broader indices did fight back, and there were some notable winners, even among Dow components. UNH, for one responded very well to earnings. Broadly speaking though, the Financials took it on the chin with Health Care, while the Staples and the bond proxies stayed in the green.
The bond proxies? You bet your tail. With uncertainty in the UK, a tug of war in France, a planet mired in chaos, the reduced expectations for a June rate hike thanks to some lousy macro, and did I already say a planet mired in chaos?…. Treasuries ran wild, just like the late “Macho Man” Randy Savage used to. You know gang, every time I try to lighten my bond portfolio.. I end up getting cold feet…and every time… I’m glad for it.
It may be noteworthy, kids.. that both Oil, and Gold stayed near where they began despite all of that dollar weakness, and Crude had to make a nice comeback to just get there.
P.S. For all of you numbers junkies out there, IBM just reported a beat on EPS, and a miss on revenue. The stock is down 3.3% in the immediate aftermath.
P.S.S. I suddenly feel like a Slim Jim.
Positions in stocks mentioned: none. I left them out on purpose, but 4 for the top 9 on the Dow there, Chilly Willy.