Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Thursday, July 13: The start of earnings season.
State of Play
Stocks rallied yesterday after the softer-than-anticipated inflation report. Small caps once again led the way but this time tech came along for the ride. Both Nasdaq and Russell 2000 were up 1%+. As of 0625 it looks like the party is set to continue:
Stock index futures are pointing to gains, led by the Nasdaq this time (+0.7%);
Bond yields are dropping. Major rally in short-term bonds yesterday. The 2-year yield is down another 9 basis points to 4.65%. The 10-year is down 4bps to 3.83% (yields move inversely to prices);
Commodities are unchanged. WTI crude oil is trading around $76/barrel. Copper is up about 0.5%.
Listen to this episode with a 7-day free trial
Subscribe to Contrarian Investor Premium to listen to this post and get 7 days of free access to the full post archives.
