First Call - Hedge Fund Telemetry

Not much follow-thru after our rally yesterday; Japan +1.3% but China only +.6%, Europe mostly down and just can't seem to get any follow through to the upside. S&P futures (-9 have fallen 16 points from session highs. Main reason's cited for a big rally in US equities on Tuesday seemed to largely be a function of oversold conditions and a decent batch of Q3 earnings. Treasuries unchanged to slightly weaker. Dollar better on the euro cross but little changed vs yen. Gold down 0.1%. WTI crude off 0.4%.
No UK inflation, as CPI missed (.1% vs. .3% estimates). Broader European CPI was inline (.5%)
Today’s Fed Minutes will be the macro highlight of the week; currently a 77% chance of a hike by December. Trump was again critical of him/Fed last night.
Earnings getting most of the attention. Netflix boosted by big sub beat following disappointment last quarter (please note, I am watching overnight VWAP after print at 390 as a stop if it gets there. I think this could fade lower) Lam Research said Q3 a near term trough, Q4 guidance better than feared and some talk of a reprieve for semicap equipment space. IBM down on Cognitive revenue decline and slowdown in Strategic Imperatives (please note I will not be covering) United Airlines revenue guidance better. CSX helped by another positive OR surprise and good pricing commentary.
Not much new in the macro and geopolitical headlines. White House talked up traction behind deregulatory push. Also some focus on Trump’s perceived willingness to accept Saudi Arabia’s denials in case of missing dissident journalist. China continued to sell Treasuries in August. Bloomberg reported Mueller probe results could be released soon after midterm elections.
US Treasury Department data showed China's US Treasury holdings fell to $1.165T in August from $1.171T in July, marking third straight decline and lowest since June 2017. Some suggestion that the decline (while moderate) reflects efforts to support the yuan, though no evidence that Beijing is weaponizing Treasury holdings amid the trade dispute with the US
Most watched earnings today ABT, BMI, MTB, MTG, NTRS, UNF, USB, and WGO before the open and AA, CCI, CCK, SLG, STLD, TCBI, UMPQ, and URI after the close

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