The puck just dropped in the US-Canada Women’s final, and we admit our eyes may drift from our equity and rates screens every now and then today. The S&P opened down 0.3% this morning, after futures turned lower when the head of the IAEA said that Iran’s diplomatic window is closing. The index headed higher after the open, towards the 50d ma ~6895 but turned lower as we rounded noon. Major indexes are down ~0.5 and the weakness is evenly distributed across market caps and Growth/Value lines.

Credit is having a bad day. BDCs and Private Credit names are down across the board, reacting to Blue Owl’s decision to halt quarterly redemptions in a private credit fund in conjunction with asset sales from a few funds. In addition BNPL provider Klarna is down sharply after disappointing earnings, though it looks like credit metrics were broadly stable. Deere is trading sharply higher after beating estimates.

Energy is a leading sector on higher oil and Iran tensions. Utilities resumed their leadership from last week as defensive position. Deere and Quanta are helping lift Industrials. On the downside its Financials leading lower. The private credit names are the worst off, while the big banks are down ~1% across the board and services/exchange/broker names are also lower.

The economic data this morning was mixed. Initial claims fell to 206k from 227k last week. Continuing claims were about in line with estimates at 1.869ml. Pending home sales fell 0.8% m/m and 0.4% y/y. The index fell to its lowest recorded level. Yields are around their lows, near unchanged on the day after drifting higher earlier following the jobs data. The US Dollar Index is slightly higher. PCE and GDP data are ahead of us tomorrow.

Commodities are mixed. Not surprisingly oil prices are extending to the upside on Iran updates. Gold and silver are off the overnight highs and hovering around unchanged.