First Call - Hedge Fund Telemetry

S&P futures little changed after US equities finished mostly lower on Tuesday. Asian equities mixed overnight. China eked out a modest gain. European markets on the defensive. Treasuries weaker across the curve. Dollar firmer vs yen, but down on euro cross. Gold up 0.1%. WTI crude slightly lower.
Very quiet session thus far. Nothing particularly incremental surrounding any of the high-profile topics. Sentiment still seems fairly lackluster following recent bout of weakness on concerns about speed of bond yield backup, though no real change in fundamental narrative. Markets playing a waiting game for earnings. S&P bullish sentiment is at at 44%, Nasdaq 100 remains at 53%, Bonds 34%, USD 58%, Euro 25%, Gold 18%, Copper 51%, Crude 90%
Treasury Secretary Mnuchin said wants to make sure China does engage in competitive devaluation. Fed’s Williams said he expects central bank to get rates back to normal/neutral in next year or so. Italian government reiterated (again) that it will not backtrack on plans boost deficit spending. Brexit deal reportedly imminent.
Trian disclosed nearly 3% stake in PPG. Third Point boosted its stake in Campbell's Soup to 7%. Sears reportedly preparing for bankruptcy filing. McDonald's franchisees considering push to get company to improve profit and cash flow. SoftBank in talks to take a majority stake in WeWork.
Yesterday Trump complained the Fed is raising rates too fast; but last night NY Fed chief Williams said higher rates result in sustained expansion and reduced risk taking. Currently a 78% chance of a rate hike by December.
China stepping up "pre-crisis prevention" by increasing the number of banks/brokers it considers "too big to fail" from 20 to 50+ per Bloomberg.
Day 3 that that the S&P’s 50 moving average held/bounced as support (2878). The index hasn’t traded meaningfully below that metric since late June.
Industrials (-1.5%) and Materials (-3.4%) were the big laggards yesterday, as every other S&P subsector was between +1% and -.3%).
The VIX has closed just under 16 for the last 3 sessions, highest closing levels since late June.
Solid October equity volume so far; MTD the average is 7.4B vs. 6.8B last month and 6.9B YTD.
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