Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Tuesday, Aug. 22.
State of Play
The Nasdaq (QQQ 0.00%↑) celebrated its best day of the month yesterday even as bonds sold off. There was no apparent catalyst. Investors seem to be looking ahead to Nvidia (NVDA 0.00%↑) earnings tomorrow. As of 0640 we are looking at the risk-on mood continuing:
Stock index futures are pointing to gains led again by tech, with the Nasdaq up 0.6%. S&P 500 (SPY 0.00%↑) futures are up 0.2%. Small caps appear to be up for it today as well, with the Russell 2000 (IWM 0.00%↑) up 0.5%;
Commodities are mixed but importantly copper is rallying, up 1.4%. WTI crude oil is unchanged trading around $80/barrel;
Bonds are unchanged. The 2-year yields 4.99% and the 10-year 4.31%. The 10-year hit 4.35% yesterday, its highest level since 2007 (yields move inversely to prices).
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