Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Tuesday, Oct. 24. The Bottom Line segment of today’s podcast starts at (3:30) for listeners who want to skip ahead.
State of Play
Stocks finished a bit lower yesterday but the big move was the reversal in bonds after a certain Bill Ackman took to Twitter to announce he had closed his short position. As of 0640 we’re looking at risk-on developing:
Stock index futures are pointing to a higher open for a change, led by small caps. The Russell 2000 (IWM 0.00%↑) is up 0.7%. Nasdaq (QQQ 0.00%↑) +0.6%. S&P 500 (SPY 0.00%↑) +0.4%;
Cryptos continue to rally. Bitcoin is up another 12% (!) to trade around $34,400;
Bonds are retreating a bit. The 10-year yield is up 3 basis points to 4.86%. The 2-year yield is up 2bps to 5.08% (yields move inversely to prices);
Commodities aren’t really doing anything. WTI crude oil is up 0.7% to trade around $86/barrel. Copper is unchanged.
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