A rough day for stocks, despite NVIDIA being up again. American Airlines took it on the chin despite data that shows Americans are traveling in record numbers. Global inflation readings and another poor treasury auction caused some concerns and led to higher bond yields. The Fed's Beige book showed some pessimism with rising uncertainty and greater downside risk despite reporting that national activity continued to expand in April and through mid-May. Treasuries ended the day with steeper yields with the 2Y still under 5% at 4.98% but 10's at 4.62%
Speaking of the Fed, they get a Goldman alum joining the ranks as Beth Hammack will replace the retiring Loreta Mester as the next President of the Cleveland Fed. I didn't spend too much time on the internet, but I'm sure the internet had nothing to say about that.
It seems like every couple of weeks there is some catalyst that leads to higher yields, which sets off some cycle of investors questioning the drivers of higher yields and whether they will feedback into the real economy and drag down stock prices. From there the collective generally looks to the next inflation or employment print to provide the answers that seem elusive at the moment.
We'll get jobless claims, another look at GDP and inventories on the day ahead.
XTOD: NVDA 2024 = CSCO 2000. I mean, it is exactly the same thing.
XTOD: Franklin Templeton's Sonal Desai sees 10-year yields settling in above 5% for the longer-term, in part due to the fiscal deficit.
XTOD: Whatever reservations folks might've had about the optics of hiring another Goldman alum into the Fed's top ranks would be presumably diminished by Hammack bringing significant heft on financial plumbing and markets to a committee/board that has been seen as light in those areas
XTOD: As per Taleb’s minority rule, political parties are coalitions of single-issue voters and not collections of centrists. You win by rewarding your supporters with targeted handouts.
XTOD: When trying to make sense of the world, it helps to remember that everyone out there is just doing their best......to advance their own interests.
XTOD: The longer you’ve had strength, the harder it is to lose strength.
XTOD: ‘Bruce, if I run any more, — and we're still running — ‘if I run any more I'm liable to have a heart attack and die.’ He said, ‘Then die’
It made me so mad that I went the full five miles. Afterward I went to the shower and then I wanted to talk to him about it. I said, you know, ‘Why did you say that?’ He said, ‘Because you might as well be dead. Seriously, if you always put limits on what you can do, physical or anything else, it'll spread over into the rest of your life. It'll spread into your work, into your morality, into your entire being. There are no limits. There are plateaus, but you must not stay there, you must go beyond them.’” - John Little, “The Art of Expressing the Human Body” (1998)
https://x.com/dailydirtnap/status/1795881530612449478
https://x.com/lisaabramowicz1/status/1795823142784639057
https://x.com/NickTimiraos/status/1795826575113679177
https://x.com/naval/status/1795939446530986041
https://x.com/Jesse_Livermore/status/1795602840800637043
https://x.com/EricCressey/status/1794887375392534971
https://x.com/historyinmemes/status/1795610586379604054
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