The twists and turns continue
The quiet moves in the past few weeks have given way to a more-emotional market. Yesterday's business closings in California and the blow-off in Tesla shares has investors feeling uneasy.
I'll be watching closely for comments from Brainard at the top of the hour. If she repeats a recent line from Bostic and Mester that the recovery is flattening, it could hurt risk assets. She's been worried lately and tried to block banks from paying dividends so don't expect a positive take from her.
The performance of stocks reporting earnings is what has me feeling uneasy. Take Fastenal today, which reported a good quarter. Shares initially spiked but are now significantly lower on the day.
Last quarter the post-earnings trade was positive even on bad news and we're not seeing the same thing early this quarter. Even JPMorgan is now trading in negative territory.
Cameron Crise at Bloomberg today points out that the Nasdaq rallied 2% from the prior close, made an all-time high and then finished more than 1% lower. That's only happened one time before: March 7, 2000 -- three days before the tech bubble popped.
Update: And just like that the S&P 500 bounced 15 points.
