Morning Reads
- China Is Burning More Coal, a Growing Climate Challenge
- BOE Hikes by 75 Basis Points But Rejects Market Rate Path
- Mystery Whales Baffle Gold Market After Central Bank Purchases
- Fed Makes Fourth Jumbo Rate Increase and Signals More to Come
- Federal Reserve Chief Tells Markets to Focus on Interest-Rate Endpoint
- SEC Pulls In Record Enforcement Haul, Moves to Rewrite Mutual-Fund Rules
- Debt Limit Showdown Looms as White House Braces for a Divided Washington
- Mortgage Rates Too High? (Blame the Fed, Wall Street and Your Neighbor.)
- It’s Harder to Buy a House. This City Fought Back by Outbidding Corporate Landlords
- There Has to Be a Better Way to Lose $800 Billion
- Elon Musk Takes a Page Out of Mark Zuckerberg’s Social Media Playbook
- The Case That Elon Musk Knows Exactly What He’s Doing at Twitter
- Albertsons, Despite Debt, Will Hand $4 Billion to Owners Before Merger
- Blackstone’s $70 Billion Real Estate Fund for Retail Investors Is Losing Steam
- Peloton Drops on Outlook, Even as CEO Says ‘Ship Is Turning’
- Pilots Are Frustrated With Airlines, Too
Options
Futures
PREMIUM
PREPPER
- S&P 500 futures are 0.7% below fair value; the Nasdaq 100 futures are 0.9% below fair value; and the DJIA futures are 0.5% below fair value
- Key factors driving the futures market:
- Sharp move up in Treasury yields following yesterday's FOMC meeting (2-yr yield up to 4.72% and 10-yr yield up to 4.19%)
- Prospect of Fed's terminal rate being higher than previously expected and being held there longer than previously expected has sapped the rebound momentum
- Disappointing guidance from Qualcomm (QCOM) keeps pressure on growth stocks
- Reports indicate health authorities in China are decrying the idea that there will soon be a shift away from the zero-COVID policy
- The Bank of England raised its key policy rate by 75 basis points, as expected, to 3.00%; two voters dissented preferring smaller increases of 50 basis points and 25 basis points, respectively
- The Norges Bank raised its key policy rate by 25 basis points, as expected, to 2.50%
- Several ECB officials are pushing the idea that further rate hikes are needed to contain inflation, although ECB member Panetta cautions against bigger-than-expected rate hikes, according to Reuters
- Elon Musk planning to cut half of Twitter staff, according to Bloomberg
- Brokerage research calls of note:
- Upgrades: ALKS, FRPT, LIND, RARE, YUMC
- Downgrades: AIZ, CFR, CTSH, FSR, LFUS, MC, MRVI, OMCL, POWI, QRVO, RDWR, RPD, ROKU, SBGI, SKY, PATH, ZG, ZION
- WTI crude futures -1.1% to $88.99/bbl; nat gas futures -2.6% to $6.39/mmbtu; copper futures -2.3% to $3.39/lb.
- 2-yr note yield +17 bps to 4.72% and 10-yr note yield +13 bps to 4.19%
- Today's economic data: Weekly Initial Jobless Claims, September Trade Balance, and Q3 Productivity at 8:30 a.m. ET; October Final IHS Markit Services PMI at 9:45 a.m. ET; September Factory Orders and October ISM Non-Manufacturing Index at 10:00 a.m. ET