Everyone’s just waiting on Santa.
Stocks are still “pricing in” tax cuts at the sector level apparently, but the broader market has seemingly entered a pre-holiday drift.
The benchmarks were basically flat on Wall Street although it’s worth noting that small-caps have outperformed over the past two sessions:
As a reminder, this year has been lake placid:
From worst to first in December for Telecom and Energy which have lagged all year long but are now outperforming:
Treasurys were mixed on Thursday following a slight disappointment on the Q3 GDP revision. 30Y yields halted a their march higher…
…leading to renewed flattening in the 5s30s.
As a reminder, headed into Thursday this was the biggest weekly steepening since the election (“bigly”) for the 2s30s:
Even the bears are long according to the NAAIM’s weekly active money manager survey:
Things were poppin’ north of the border today and I know just the man to tell you about it:
BOOM! Canadian retail sales crush it
— Luke Kawa (@LJKawa) December 21, 2017
“BOOM!” Chewbacca socks.
Between that and a hotter-than-expected CPI print, the loonie rose:
Bottom line:
BoC January hike odds now >50% for the first time since late October.
— Luke Kawa (@LJKawa) December 21, 2017
The yen hit a one-week low overnight after Kuroda reiterated his penchant for insanity:
There’s trouble in crazy town:
Which means it’s time to break out the credit cards and get it on the “cheap”:
Finally, take a second to appreciate the extent to which no one is talking about Christmas anymore…
