S&P +1.45% (2073.1), D +1.28% (17749.1), N +1.46% (4664.6), CL1 -4.39% (35.71), Copper +0.73% (207.15), Gold +1.18% (1073.70) 10YrYld +0.03 (2.2977), DXY +0.17% (98.39), Vix -14.75% (17.86).
The S&P closed up 130bps from the European close ending the day just off session highs with of course just about all those gains post-Fed. Volumes up 5% to 8.5bln vs 7.1bln est, dollars traded up 3.5% to $330bln, $60bln above avg. A little better than 80% of volume to the upside.
Markets rallied post Fed announcement, closing on session highs. Rate rise inline with expectations, more hawkish than many expected. Normalization likely to proceed gradually. Most Short +3.8%. DXY/Rates initially sold off but came back to levels pre Fed; 2yr breaks above 1%. Banks rallied 2%. XLF +1.6% / KRE +1%. HYG +80bps/JNK +90bps, Yellen played down Third Ave blowup. EEM +2%. Oil back to flat on the week following big Inventory Build; BHI -4% / HAL -3%. Solar continues to squeeze as tax credits extended; FIRST SOLAR +10% tops S&P, making a new 52 week high. Homebuilders trade well on better Housing Starts; PULTE +4%. On Earnings/guide; JOY GLOBAL +6%, HONEYWELL +6%, DOVER -1%, NUCOR -4%. HILTON +5% looking to spin off hotel properties into REIT (DJ). GE (Buy) +2%, new 52 week high, currently hosting annual outlook meeting, guide broadly inline; full thoughts in the morning. LIFT OFF….DELTA +2% hits new all time high ahead of tomorrow’s Investor Day, full details below.
ECO: Housing Starts 1173k, est 1130k; MoM +10.5%, est +6.6%. Building Permits MoM +11%, est -1%. IP -0.6%, est -0.2%. Man PMI 51.3, est 52.6.