Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Wednesday, Oct. 25. The Bottom Line segment of today’s podcast starts at (3:41) for listeners who want to skip ahead.
State of Play
Stocks rallied yesterday after mostly positive earnings. But then after the close Google (GOOG 0.00%↑) earnings disappointed and that stock is down almost 7% overnight. This outweighed positive earnings from Microsoft (MSFT 0.00%↑) and as of 0635 it looks like we’re due to give back yesterday’s gains:
Stock index futures are pointing to a lower open, with tech and small caps leading the drop. Nasdaq and Russell 2000 are down 0.6% each. S&P 500 futures are down 0.3%;
Bonds are selling off as well, but less precipitously. The 10-year yield is up 3 basis points to 4.87% whilst the 2-year is unchanged at 5.08% (yields move inversely to prices);
Cryptos are finally consolidating a bit, with Bitcoin down 0.5% to trade around $34,000;
Commodities aren’t doing much. WTI crude oil is unchanged after dropping yesterday, trading around $83.50/barrel. Copper is down 0.6%;
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