Good morning contrarians! Yesterday was pretty weird, with a rally reversing around mid-day. Dow Industrials closed lower for the first time in 14 trading days. Then we had some more positive earnings after the close, with Intel ($INTC
) and Roku ($ROKU
) beating estimates.
Finally overnight the Bank of Japan surprised everybody by loosening its yield curve control and signaling “greater flexibility.” As of 0630, markets in the US at least are looking to resume their rally, led by tech.
Earnings out this morning include portfolio companies Colgate Palmolive ($CL
). Personal Consumption Expenditures, the Fed’s preferred inflation gauge, is out at 0830. That will likely set the tone for today. You’ll want to watch bond markets and of course Fed fund futures.
More on today’s set up: