Futures vs FV: SP +9.97; DJ +115.06; NASDAQ +31.27
Stocks rebounding sharply from a weak TUES that was masked by DJ30's gains. Big tech names rebounding, not giving another day of test as we wanted, but the market does not always give exactly what you want. Comes close. RUTX, SP400? We will see; not holding our breath on a recovery, and indeed that is not even our thesis for the market in Q4. That is a large cap move and NASDAQ large caps are rebounding.
ADP, Sep: 230K vs 184K exp vs 168K prior (from 163K). Highest in 7 months.
Panic about people to work jobs, wage-led inflation, blah, blah. Nonsensical stuff. Stop paying people not to work and we have 95M more workers.
Mortgages: 0.0% vs 2.9% prior week.
Fed: Evans says it is time for the Fed to return to a "supporting actor" role in the economy. Way past time. And it should be a cameo appearance versus the lead as it has been for a decade. Okay, 3 decades.
Upgrades: BABA; KORS; CI
Bonds: 3.087% vs 3.061%. Yields rise on strong eco data. Okay, that at least makes sense.
EUR/USD: 1.1532 VS 1.1551%. Dollar up again. That makes sense.
USD/JPY: 113.83 vs 113.64
Oil: 75.35, +0.12. S Arabia says NOV output will be higher and oil rises.
Gold: 1206.90, -0.10
Futures gapped modestly higher and have rallied upside since. That is a good pre-market, the steady move versus the gap and hang out waiting for sellers to take a shot. These type of moves tend to have more staying power.
Thus, we will see how AMZN, NFLX rebound from tests along with the cloud software that really struggled Tuesday. Looking at CAT early to see how it reacts to the Tuesday move higher.
Jon Johnson, Chief Market Strategist
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