Good morning contrarians! Stock futures are green for a change, continuing the rally from yesterday. The Nasdaq is leading things, up 0.9% as of 0645. The S&P 500 is up 0.7% with Dow Industrials 0.5% to the good. The Russell 2000 which tracks small caps is up 0.4%.
Bonds are holding steady, with the 2-year yield at 1.32% and the 10-year at 1.92%.
Commodities aren’t doing much either. WTI crude is down about 0.7% to trade around $89/barrel. Gold is unchanged at 1,827/oz. Natural gas is continuing to drop though, down 2% to get closer to the $4 level (currently $4.17).
Cryptos are flat. Bitcoin is down about 1% to trade around $43,500.
Earnings
In the after market we had good news from Chipotle (
$CMG), which has rallied, and bad from LYFT (
$LYFT), whose shares have been punished.
CVS Health (
$CVS) just reported, beating earnings and revenue estimates. The stock is up 1% in the pre-market.
CME Group (
$CME), Fox Corp (
$FOXA), GlaxoSmithKline (
$GSK), Yum Brands (
$YUM) also report before the open at 0930.
The after market should be interesting again. Uber (
$UBER) is expected to report at 1600, followed by Sonos (
$SONO), Vimeo (
$VMEO), and Disney (
$DIS). We’ll also get Twilio (
$TWLO), Mattel (
$MAT), Zynga (
$ZNGA), and MGM Resorts (
$MGM) after the close.
The Bottom Line
A lot of volatility has left the market this week. Doesn’t mean it won’t return of course, but things are noticeably calmer. Futures being bright green was a cause for concern during the high vol days of last week and the week before, but it’s difficult to see where the catalyst for ‘risk-off’ could come from. Earnings don’t get interesting until after the close.
Yesterday's bottom line told you it was looking like a blah day but to keep an eye out because those days often turn out to be the most interesting. We ended up getting a rally in risk assets, with the Dow, Nasdaq and Russell all adding north of 1%. This may be a good indication the bull market is alive and well (which it is statistically, anyway) as stocks tend to rally for no good reason during bull markets.