Reads
- Rosy Economic Data. Shares Fell Anyway.
- Xi’s Power Grab Spurs Historic Market Rout
- Japan’s Suspected FX Intervention Fails to Stem Yen Slide
- Wall Street Is Heading to Saudi Arabia as US Oil Spat Simmers
- Europe’s Economy Contracts as Tough Winter Looms
- Discounters Thrive
- Higher Interest Rates
- Most in NABE Survey Say US Already in Recession or May Be Soon
- There Is a Rosy Projection
- Is ‘Absolutely Insane’
- The Fantasy of Instant Delivery Is Imploding
- Palace Intrigue at UBS Pits CEO Against a Rising Star
- Rising Shipping Costs
- Meta-Backed Meesho Is Beating Amazon
- Starbucks Showdown
- Tesla Cuts Prices in China as Costs Fall, Competition Heats Up
- Elon Musk’s Twitter Takeover Seen Swelling the Company’s Debt
- “My Price Will Only Go Up”
Option
Futures
PREMIUM
PREPPER
- S&P 500 futures are 0.8% above fair value; the Nasdaq 100 futures are 0.6% above fair value; and the DJIA futures are 0.8% above fair value
- Key factors driving the futures market:
- Broad-based decline in sovereign bond yields
- Troubles in Chinese stock markets (Hang Seng -6.4%), after Xi tightens grip on power, drive safe-haven flows to U.S.
- Carryover momentum from last week's turnaround effort
- Chinese President Xi secures unprecedented, third five-year term as China's leader. Hang Seng down 6.4% as investors worry about tighter market regulation and persistence of zero-Covid policy.
- Chinese stocks suffering large losses following Xi leadership news
- New COVID restrictions imposed in Guangzhou, a city of 19 million residents and a big manufacturing base, according to Bloomberg
- China's September retail sales, industrial production, and fixed asset investment reports are mixed; Q3 GDP +3.9% qtr/qtr (+3.5% expected)
- Uk gilts rally with reports suggesting Rishi Sunak is frontrunner to replace Truss a Prime Minister and that Finance Minister Hunt will soon announce tax hikes on high earners.
- Eurozone's Flash Manufacturing PMI for October at 46.6 (prior 48.4)
- Japan reportedly spent more than $30 bln last week to intervene in currency market to support the yen
- Huge week of earnings news this week with about 33% of S&P 500 companies reporting; Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META) and Amazon.com (AMZN) all due to report
- Two-thirds of respondents to NABE Survey say U.S. economy is already in recession or will be in a recession in 2023
- JPMorgan Chase President Pinto doesn't think the stock market has seen a bottom yet
- Brokerage research calls of note:
- Upgrades: ANSS, CAR, NOW, T, HEI, TDOC, TXN, VC, WOLF
- Downgrades: ADI, DHR, FDX, GPRE, MDU, AAN, ADDYY, BIDU, CSTR, CVX, CLR, ERIC, HBAN, META, NXPI, QRVO, SLAB, SO, WSM
- WTI crude futures -1.3% to $83.96/bbl; nat gas futures -1.6% to $4.88/mmbtu; copper futures -0.9% to $3.44/lb.
- 2-yr note yield -4 bps to 4.47% and 10-yr note yield -4 bps to 4.17%
- Today's economic data: Preliminary October IHS Markit Manufacturing and Services PMIs at 9:45 a,m. ET