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• S&P futures up 0.9%, reversing earlier weakness. Follows another big selloff in US equities last week. Asian markets mixed overnight. China underperformed with Shanghai Composite down over 2%. European equities seeing good gains with Italy a standout. Treasuries slightly weaker. Dollar firmer vs yen, little changed vs euro. Gold off 0.4%. WTI crude down 0.2%.
• Nothing specific behind bounce in US futures. However, also not particularly surprising given stocks are oversold amid a constant flurry of articles highlighting concerns about peak economic growth (business investment slowdown under scrutiny), peak earnings growth (labor, raw material, FX headwinds), a potential Fed policy mistake, and the unlikelihood Trump and Xi will make any progress on trade at their meeting next month.
• A few developments in focus, though nothing really to shift the narrative. Italy boosted by S&P decision not to lower debt rating (though outlook cut to negative). Merkel will reportedly not run for reelection of her party’s chair following latest election disappointment (though wants to stay on as Chancellor) DAX +2% so seems like market is getting used to idea of a new Chancellor one day soon. No surprise as right wing populist Bolsonaro won Brazilian presidential election. IBM to acquire RHT for ~$34B, a 63% premium.  Auto stocks spiking on news China may cut taxes on car purchases to 5% from 10%.
  
• The XLK (Tech SPDR) is -9.6% so far in October; Barron’s noting that’s the worst monthly performance in a decade.  So likely some extra focus on FB and AAPL earnings this week.
• Speculation that market volatility may lead to a Fed "pause"; chances of a December hike now at 71% vs.80% last Monday.
• Equity volatility is back, as the S&P has seen at least a 1% intraday range in 12 of the last 13 sessions.  And Tuesday-Friday last week the index had at least 2%+ swings.
• Q3 Earnings nearly half way done (240 S&P names so far); only 58% have beat Revenue estimates vs. 72% in Q2.  82% are better on the EPS line vs. 84% last quarter.
• Earnings today: (BAH, BLMN, CTB, ESS, FDC, HSBC, MCY, ON, WFT, and YNDX before the open and AEIS, AKAM, ALSN, AMKR, APPF, AVB, BLKB, CBL, CGNX, CHGG, CLR, CYH, EFII, EGHT, KLAC, MDLZ, PI, QTS, RE, RIG, RMBS, SANM, TKR, TNET, UDR, VNO, VRNS, WCN, and WING after the close).
  

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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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