Mon, 26th June 2017

Anirudh Sethi Report


Archives of “May 12, 2017” Day

1999 Called, They Want Their Stock Bubble Back…

File this one away under “Completely Obvious…”

Earlier this week the parent company of Snapchat reported a quarterly loss of more than TWO BILLION dollars.

Snapchat, of course, is the photo-focused social networking app that’s adored by tweens and adults who still live with their parents.

(Talk about a lucractive demographic.)

The company IPO’d just a few months ago with a market capitalization of $30+ billion despite slowing growth and a history of never turning a profit EVER.

According to the company’s quarterly report its finances have gone from bad to worse.

Operating cashflow dropped from negative $92.5 million to negative $155 million; and its total loss for the quarter including stock-based compensation was $2.2 billion.

It’s incredible that this is the same company that was a Wall Street favorite just eight weeks ago.

Spot The Odd One Out

After this week’s mixed inflation data, China’s 10Y bond yield rose to its highest since Dec 2014, industrial metals stumbled to 2017 lows, and Chinese stocks slumped.

This leaves China under-water in 2017, dramatically decoupled from the rest of the world… something that has not ended well in the past.

Spot The Odd One Out…


And tightening Chinese Monetary Conditions signal trouble ahead for VIX…

Probably nothing.

US Indices end the day lower but well off the lows

When a down day feels like an up day

The US major indices are ending the day down on the day, but well off the lows.  The Nasdaq did break it’s string of 4 consecutive record closes on the down day today.
  • The S&P is closing at 2394.57, down about -5 points or -0.21%. The low reached 2381.74.
  • The Nasdaq is closing at 6115.96, down -13.17 points or -0.22%. The low reached 6075.67.
  • The Dow is closing at 20919.90, down -23.21 points or -0.11%. The low reached 20798.90.