Carl Court
Stock index futures were cautious Wednesday with trading expected to be choppy amid low end-of-year volume.
S&P futures (SPX) +0.1%, Dow futures (INDU) +0.1% and Nasdaq 100 futures (NDX:IND) +0.1%.
“In the US, recent net flows have diverged sharply between Single Stocks (selling) and Macro Products (buying),” Goldman Sachs said. “Net exposure to mega cap tech is off record highs but still elevated vs. history, while L/S ratio across R2K constituents has fallen to new lows, suggesting hedge funds remain skeptical of the price strength in small cap stocks (though record call volumes in IWM point to a beta chase and hedging of short portfolios via options).”
“On a sector level, managers have aggressively net sold Cyclicals since November, and L/S ratios across Energy, Financials, and Industrials are all at or near multi-year lows.”
The 10-year Treasury yield (US10Y) was down 1 basis point to 3.87%. The 2-year yield (US2Y) was down 5 basis points to 4.29%.
The economic calendar is fairly empty. But there is a $58B auction of 5-year Treasuries (US5Y) with results out this afternoon.
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