Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Wednesday, Nov. 15. The Bottom Line segment of today’s podcast starts at (5:29) for listeners who want to skip ahead.
State of Play
Stocks rallied in a major way after yesterday’s CPI showed inflation slowing ahead of schedule. It was the best day for the S&P 500 and Nasdaq since April, with both indexes up ~2% each. Small caps did even better, with the Russell 2000 gaining 5%. As of 0645 it looks like the risk on mood is set to continue after positive earnings from Target (TGT 0.00%↑) :
Stock index futures are continuing their ascent, with the Nasdaq up 0.6% and S&P up 0.4%;
Bonds are consolidating after putting in big gains yesterday as well. The 2-year yield is up 4 basis points to 4.86% whilst the 10-year yield is up 3bps to 4.47% (yields move inversely to prices);
Commodities aren’t doing much. Copper is up 0.7% but WTI crude oil is down 0.7% to trade around $77.70/barrel.
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