NEW YORK (Real Money) -- Just a total repudiation of pretty much everything that's been the case: That's how I feel about yesterday's trading right from the get-go.
Here's the setting. On Sunday night the market looked pretty benign. I didn't see anything that would indicate things should be awry. When I got up, though, the S&P 500 was down 6, and a bunch of bourses in European countries were getting hammered, particularly in Italy.
Sure, the AstraZeneca (AZN) deal seemed to blow up, and China's Shanghai Composite was down 1%. We knew that Credit Suisse (CS) was in legal trouble. Deutsche Bank (DB) had sold $11 billion in equity. We had U.S. Treasuries up a few ticks.
(TLT) -- and that left the market with room to run. So now we see something that can even trump the downward force of the all-powerful stock futures, and it turns out to be exactly what used to send them lower -- climbing rates. Now, all of this is algorithmic lunacy. Most stocks do not benefit from higher rates. Right now only the banks do. Yet we're seeing high-growth stocks going higher when rates go higher, and that's nuts. I can imagine that someone with a straight face could say, "Yeah, but when rates go up that signifies that companies will have the ability to raise price." But that's too stupid for words.
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