Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Thursday, Dec. 21. The Bottom Line segment of today’s podcast starts at (3:38) for listeners who want to skip ahead.
State of Play
Stocks sold off unexpectedly yesterday. It was actually the worst day since September for the S&P 500, which dropped 1.5%. No clear catalyst for this. After yesterday’s close Micron (MU 0.00%↑) beat earnings, delivering some welcome positive news. That stock is up 6% in the pre-market. As we look at our board of indicators at 0635 there are clear signs of a rebound, at least for stocks:
Stock index futures are pointing to gains, led by tech and small caps. The Russell 2000 is up 0.9% with the Nasdaq up 0.7%. S&P futures are up 0.4%;
Commodities aren’t doing anything. WTI crude oil is effectively flat trading around $74/barrel. Copper is down 0.3%;
Bonds are also flat. The 2-year yield is 4.38%. The 10-year yields 3.89%.
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