Wholesale Inventories, a few Earnings, Fed Rate Pause Off?

Good morning contrarians! It is Thursday, June 8.

State of Play

Yesterday was a pretty strange day on Wall Street. You had a big rally in small caps led by regional banks, with the Russell 200 gaining almost 2%. But then tech got sold, with the Nasdaq dropping 1.3%.

As of 0635 this morning, all is once again pretty quiet:

• Stock index futures are flat as a board. No movement at all to report;

• Commodities aren’t really doing anything. WTI crude oil is up <1% to trade around $73/barrel. Copper is unchanged;

• Bonds are continuing to sell off a bit. The 2-year yield is up 2 basis points to 4.57% with the 10-year up 2bps to 3.81%. Apparently some concerns about the Fed pause being off the table are to blame for this.