Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Wednesday, Oct. 16. The Bottom Line segment of today’s podcast and Stocks on the Contrarian Radar©️ feat AI chip names NVDA 0.00%↑ AMD 0.00%↑ and UCTT 0.00%↑ start at (2:46) for listeners who want to skip ahead.
State of Play
Stocks dropped a bit yesterday led by tech after disappointing earnings from ASML Holding (ASML 0.00%↑). As we eye our board of indicators for signs of direction at 0645, it appears that some risk appetite is emerging:
Stock index futures are flat with the exception of small caps, which are higher (usually a good sign). The Russell 20000 is up 0.6%;
Commodities are rebounding, or at least copper is, up 1%. WTI crude oil is holding steady just north of $70/barrel;
Cryptos continue to gain ground with Bitcoin up 3% to trade around $67,600;
Bonds are also seeing a few bids with the 2-year yield down 3 basis points to 3.93% whilst the 10-year is down 2bps to 4.01% (yields move inversely to prices).
Today’s Known Events
More earnings are on tap:
Morgan Stanley (MS 0.00%↑) and US Bancorp (USB 0.00%↑) are among banks reporting before the open at 0930;
Abbott (ABT 0.00%↑) is also due intermittently;
After the close at 1600 we’ll hear from Alcoa (AA 0.00%↑) and Kinder Morgan (KMI 0.00%↑), among others.
That’s pretty much all we got of interest today. Japan reports trade figures this evening.
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