Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Wednesday, Jan. 3, 2024. The Bottom Line segment of today’s podcast starts at (5:32) for listeners who want to skip ahead.
State of Play
Stocks sold off yesterday, with tech seeing the worst of it as the Nasdaq gave up 1.6%. It wasn’t all bad however as investors flocked to the relative (perceived?) safety of value names. Pharma stocks Moderna (MRNA 0.00%↑) and Pfizer (PFE 0.00%↑) were among the biggest winners. As we look at our board of indicators at 0635, it looks like we could be in for some more selling:
Stock index futures are pointing to a lower open, led by small caps. The Russell 2000 is down 1%. Nasdaq futures are down 0.5% with S&P 500 and Dow Industrials down 0.3%;
Commodities aren’t doing much. WTI crude oil is unchanged at $70/barrel with copper down 1%;
Bonds are moving a bit lower, with the 10-year yield up 3 basis points to 3.98% whilst the 2-year is up 2bps to 4.35% (yields move inversely to prices)
Cryptos appear to be consolidating, with Bitcoin down 2.5% to trade around $44,500.
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