Courtesy of Blain.
Remember when CNBC told us for 2 weeks that Brexit was going to lead to the end of humanity as we knew it? Well the stock market finished today nearly where it was 7 trading days ago. The zombies that came out to eat us alive are confused, and all the food in our bomb shelter 600 feet below ground level (where our servers are) is untouched. BOOOOOORING.
Meh. I’ve had better crisis than this Russell. Give me some sweaty CNBC anchors in Greece, give me some synthetic mortgages backed by air, give me Cisco at 150x earnings, give me Pets.com valued at 88x revenue. This? Lame.
Far more interesting was the fact that “Brexit” passed “Porn” as the most searched term on google last week.
The S&P 500 gained 1.70% and the NASDAQ 1.86%. In economic news, consumer spending rose 0.4% in May. Personal income increased 0.2%.
“It will take a long time for Britain’s relationship with the EU to be resolved, but it will take a short time for people to realize this is primarily Britain’s problem,” David Kelly, chief global strategist at JPMorgan Funds said.
The S&P 500 is back to just below the 50 day moving average which is beginning to slope downward – which probably is the bigger issue technically. The NASDAQ rallied back to both the 100 day moving average and our trendline in blue which connects major lows of recent years.
From a positive reading to a -50 and back to a positive reading… all in 4 trading sessions. Now that’s volatility!
Here is the kicker – the FTSE is actually UP from where it closed pre-vote!
Despite the sharp 2 day rally, yields on the 10 year are not normalizing which still strikes as suspicious and “bearish”.
General Mills (GIS) climbed 3.2% after posting fiscal fourth-quarter adjusted earnings and revenue that topped Wall Street’s expectations. The maker of Cheerios cereal, Yoplait yogurt and other foods raised its quarterly dividend as well as its target for cost savings. This was actually a VERY nice chart even going into earnings as “boring stocks” have been where people have been hiding apparently.
Tesaro (TSRO) more than doubled after the biotech company’s late-stage trials of an ovarian cancer treatment met primary endpoints.
