First Call - Hedge Fund Telemetry

S&P futures up 0.7% and a wild 35 point overnight range. Asian markets rallied overnight with Hong Kong the standout, up over 4%. European equities seeing good gains. Treasuries weaker with curve flattening. Dollar lagging euro and sterling, but firmer vs yen. Gold up 0.1%. Copper up nearly 2%. WTI crude down 0.1% and on track for a big weekly pullback.
Trade providing the latest tailwind for risk sentiment after Bloomberg reported Trump wants to make a deal with China later this month. However, agreement may only revolve around a ceasefire, while also some skepticism amid speculation that this could be a ploy to boost market ahead of midterm elections next week. In addition, still no sign China willing to implement deeper structural changes sought by White House.
Earnings the other big story with Apple under scrutiny following disappointing Dec Q guide that included more cautious macro commentary. The big concern was the discontinuation of breaking out numbers on iPhones, iPads, and computers. Starbucks boosted by comp beat. Kraft beat on top line, but stock hit by margin miss. Symantac better than feared with enterprise security stabilization. OLED cut guidance. LNC and ~MET both beat. CC guided FY EBITDA to low end of prior range. Shake Shack comps light. Ali Baba a little light on revenues and guided revenues down yet stock up 4%
Economic calendar in focus this morning with October employment report. Street looking for a 200K increase in nonfarm payrolls following a disappointing 134K gain in September that seemed to be constrained by weather. Unemployment rate expected to remain at 3.7%. Average hourly earnings growth expected to slow to 0.2% m/m from 0.3% in September, but base effect should push y/y increase to 3.2%.

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