Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Monday, Oct. 30. The Bottom Line segment of today’s podcast starts at (3:00) for listeners who want to skip ahead.
State of Play
Friday saw a big sell off in large cap stocks as Dow Industrials dropped more than 1%. The S&P 500 fell by 0.5% to officially enter a correction (10% decline from the peak). As of 0635 it looks like a little bit of risk appetite is returning however:
Stock index futures are pointing to gains, led by tech. The Nasdaq is up 0.7% with the S&P right behind it, up 0.6%;
Commodities are mixed. WTI crude oil is down 1% to trade around $84/barrel but copper is up 1.2%;
Bonds are selling off a tiny bit. The 2-year yield is up 3 basis points to 5.04% whilst the 10-year is up 3bps to 4.88% (yields move inversely to prices).
Known Events
There are no economic data releases worth mentioning today. Later tonight the Bank of Japan decides interest rate policy.
There are earnings however. McDonald’s (MCD 0.00%↑), SoFi (SOFI 0.00%↑), and onsemi (ON 0.00%↑) report before today’s open.
After the close Pinterest (PINS 0.00%↑), Arista Networks (ANET 0.00%↑), and Transocean (RIG 0.00%↑) are among companies reporting earnings.
The week will likely be marked by three events: the Fed meeting that concludes Wednesday, Apple (AAPL 0.00%↑) earnings on Thursday, and non-farm payrolls on Friday.
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