Monday, stocks fell 0.8% in the U.S. on low volume. Tuesday, stocks fell in Asia 0.6%, climbed slightly in Europe, and rose 0.8% in the U.S. on light volume. All eyes were on the Janet Yellen speech to The Economic Club of New York where she stated the obvious, threatened greater monetary accommodation based on world economic trends, and tried to justify the FOMC’s clueless policy moves. This brought the VXO crashing 11% to close at 13.52 and the 10-Year U.S. Treasury Bond yield falling 3% to close at 1.81. It also sent precious metals up 2% and their miners about twice that amount.
Wednesday, stocks in Asia continued the trend set in the U.S. — rising 0.9%. Stocks in rose Europe 1.3% and 0.4% in the U.S. on low volume. Thursday, stocks closed little changed in Asia, dropped 1% in Europe, and fell 0.3% in the U.S. on moderate volume. The VXO rose 5% to close at 13.80 and the 10-Year U.S. Treasury Bond yield fell 2% to close at 1.79. IBM broke above 150 to close at 151.45 as a testament to the power of buybacks as a means to manipulate loser stock prices higher.
From the Lunatic Logic Department, and in further testament to being on the wrong side of reason, IBM (along with the NBA, American Airlines, and Apple computer) denounced the new North Carolina law that declares a difference between men and women by assigning them to men’s and women’s bathroom and locker room facilities. Let’s see. If I say I’m the President of the United States, and believe that I am the President of the United States, does that give me full access to the White House? Or if I say I’m sixteen years old and believe I am sixteen years old even though my biological age is actually thirteen, does that make me sixteen and qualify me me to apply for a drivers license?
Friday, stocks plummeted 2.3% in Asia and 1.5% in Europe but held nearly unchanged on moderate volume as the VXO retraced Thursday’s gains to fall to 13.16. Precious metals fell 2% and crude oil slipped 4% to end the week below $37 per barrel.