S&P, Dow, Nasdaq futures edge up after solid start to the week

Inventory index futures had been cautious Wednesday with buying and selling anticipated to be uneven amid low end-of-year quantity.

S&P futures (SPX) +0.1%, Dow futures (INDU) +0.1% and Nasdaq 100 futures (NDX:IND) +0.1%.

“Within the US, latest internet flows have diverged sharply between Single Shares (promoting) and Macro Merchandise (shopping for),” Goldman Sachs stated. “Internet publicity to mega cap tech is off file highs however nonetheless elevated vs. historical past, whereas L/S ratio throughout R2K constituents has fallen to new lows, suggesting hedge funds stay skeptical of the value power in small cap shares (although file name volumes in IWM level to a beta chase and hedging of quick portfolios through choices).”

“On a sector degree, managers have aggressively internet bought Cyclicals since November, and L/S ratios throughout Power, Financials, and Industrials are all at or close to multi-year lows.”

The ten-year Treasury yield (US10Y) was down 1 foundation level to three.87%. The two-year yield (US2Y) was down 5 foundation factors to 4.29%.

The financial calendar is pretty empty. However there’s a $58B public sale of 5-year Treasuries (US5Y) with outcomes out this afternoon.