Morning Reads

Morning Reads

• Businesses Brace for Currency Chaos
• Britain’s Economic Experiment Stumbles at the Start
• Less Turnover, Smaller Raises
• Rising Interest Rates Test Demand for Cars
• Crypto Needs More Rules
• Kim Kardashian Could Be ‘Tip of the Iceberg’
• Ray Dalio No Longer Thinks ‘Cash Is Trash’
• Samsung Kicks Advanced-Chipmaking Race
• South Korean Internet Giant Buys Poshmark in $1.2 Billion Deal
• Credit Suisse’s Options Worsen as Markets Mayhem Takes Toll
• Apple Will Be Forced to Use New Charger After EU Votes for USB-C
• Meta Is Closing One New York Office With Cutbacks Looming
• Pfizer’s Unthinkable Boom Now Leaves Investors Anxious
• Warren Buffett’s Successor
• How McKinsey Cashed In
• Few Customers Get Refunds

Options

Futures

PREMIUM

• Premium Morning Watchlist
• Top stocks for 2022
• Option Data
• Chart Set Ups

PREPPER

• S&P 500 futures are 1.7% above fair value; the Nasdaq 100 futures are 2.1% above fair value; and the DJIA futures are 1.5% above fair value
• Key factors driving the futures market:
  • A smaller-than-expected 25-basis point rate hike by the Reserve Bank of Australia stokes hope that the Fed will follow a similar path
  • Falling Treasury yields
  • Bargain-hunting efforts following huge declines in September, bolstered by understanding that sentiment readings show extremely bearish mindset (contrarian indicator)
• The Reserve Bank of Australia raised its cash rate by 25 basis points (50 basis points expected) to 2.60%, acknowledging that "the cash rate has been increased substantially in a short period of time" and that it wants to take time to assess the outlook for inflation and economic growth
• UK Finance Minister Kwarteng says he will release his fiscal plan and the OBR's forecasts later this month instead of Nov. 23, as previously indicated
• The UN has issued a warning that the world economy is close to a recession
• North Korea fired a missile over Japan for the first time since 2017
• Eurozone PPI was up 43.3% yr/yr in August versus 38.0% in July
• Japan's Tokyo core CPI was up 2.8% yr/yr in September, reaching its highest point since 2014
• Brokerage research calls of note:
  • Upgrades: BK, COMM, DPZ, GILD
  • Downgrades: MTB, PARA
• WTI crude futures +1.4% to $84.81/bbl; nat gas futures +0.6% to $6.51/mmbtu; copper futures +0.5% to $3.43/lb
• 2-yr note yield -8 bps to 4.03% and 10-yr note yield -6 bps to 3.59%
• Today's economic data: August Factory Orders and August JOLTS - Job Openings at 10:00 a.m. ET