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• S&P futures up 1%, though US equities set for big weekly losses. S&P on track for third straight weekly pullback. Asian equities higher overnight. Greater China stocks outperformed. European markets also attempting a bounce. Treasuries weaker across the curve after a bullish flattening move on Thursday. Dollar a bit stronger vs yen and euro. Gold down 0.25% following a big Thursday rally. WTI crude up 0.7%.  S&P and Nasdaq bullish sentiment dropped to 10% (similar level to February lows) and sufficient for the lower high bounce ahead we are expecting.  
• Still a lot of discussion about recent selloff, though nothing particularly incremental. Rapid backup in rates (firmer data, hawkish Fed, supply), crowded long positioning in growth/momentum factors, earnings season angst (peak margin concerns on input price pressures), heightened US-China tensions, signs of softer China demand, and buyback blackout periods among the widely cited drivers.
• China September exports came in stronger than expected. Recent articles have also noted Trump and Xi to talk trade next month and US won’t name China a currency manipulator. Eurozone August industrial production surprised to the upside. Brexit deal continues to look imminent. Cabinet expected to pass Italian budget early next week, setting up showdown with Brussels.
• Not much corporate news heading into start of Q3 earnings season for the banks this morning. Street seems to be looking for a largely in line quarter, though estimates have come down on softer NIM and loan trends. NIM outlooks likely to get outsized scrutiny given rising deposit betas. Same with loan demand given higher rates, but a still favorable capex backdrop. Capital return theme expected to remain a bright spot.
• Perhaps some "thawing" in US/China relations.  Yesterday it was announced A) China won’t be labeled a currency manipulator per Treasury Secretary Mnuchin and B) Trump will meet with Xi Jinping at the G-20 next month (which potentially implies some trade concessions from China).
  
• JPM first blush - Inline number overall. The headline beat came all on credit/lower provision which at some point is going to stop. Trading guidance was weak at Barclays, inline. Missed FICC, offset by equities. NIM better which should provide support for Regionals. Mortgage banking stunk. Loan growth very weak
• Semiconductors continues to get attention as a "risk-off" proxy.  Now -10.4% in 6 days, and negative for the year (-1.9%).  The NYSE FANG index is still +11.9% YTD (but -11% over the last 6 sessions).
• Perspective on the recent equity selloff; yesterday the VIX topped out at 28.84 and closed at 25. This versus intraday highs of 50 and closing around 38 during the selloff in February.
• 4th highest volume day of 2018 yesterday (11.5B).  The 3 that were higher were during the February equity selloff (Feb 6th highest of the year, 12.4B).
  

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Occasionally, an earnings report date could change, or could be incorrect. We rely on various sources including Street Account, Factset, and Bloomberg to compile this report.    

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