Good morning contrarians! It is Tuesday, March 14.
Yesterday was highly volatile a day after the shocking weekend rescue of Signature Bank of New York (SBNY 0.00%↑) and Silicon Valley Bank (SIVB 0.00%↑). Major stock indexes managed to finish roughly unchanged though the Russell 2000 which tracks small caps was an outlier, dropping by 1.5%. Bank stocks got beat up and trading was halted in several regional banks at various points during the day. The SPDR S&P Regional Bank ETF (KRE 0.00%↑) finished 12% lower after all was said and done.
State of Play
As of 0630 things are a little all over the place:
Stock futures are pointing to gains, led by the Russell (+1%). Banks are among big gainers, with First Republic (FRC 0.00%↑) up 20% in the pre-market;
Bonds are dropping again, especially at the short end of the curve. The yield on the 2-year is up 20 basis points to 4.23%. The 10-year is up 9bps to 3.61% (yields move inversely to prices);
Cryptos are continuing their improbable ascent, with Bitcoin up 11% to trade north of $24,000;
Commodities are retreating, with WTI crude oil down almost 3% to trade around $73/barrel and copper down <1%. Gold and silver are down a bit after rallying yesterday.
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