(Daily Alts) Cancel the June Fed meeting and good luck getting the FOMC out of their board shorts and bikinis long enough for a July meeting. While one data point should never be enough to influence change, the five sigma surprise in the non-farm payroll numbers last week could create an exclamation point to the ongoing trend of slow economic data.
The markets quickly responded to the data by collapsing short & long term Treasury yields, crushing the U.S. Dollar, launching Gold, commodities and Utility stocks. Also key was a continued strengthening in credit spreads as investors bought high grade and high yield credit as they were comfortable with slowing economic data with few thoughts of recession. Among equities, buyers were most interested in Small Caps, Value Stocks and Higher Beta stocks as the S&P 500 neared its 52-week high.
