The Crude Conundrum
Let’s look at sticky oil prices, even after the flow largely returns from the Middle East. Also, could Tesla merge with SpaceX?
A Look at Wednesday
From my evening update:
US economic data is light Wednesday, with only weekly mortgage applications and EIA petroleum inventories.
The Fed remains in its blackout period ahead of next week’s October 27–28 FOMC meeting.
Non-Bill (>1yr in maturity) US Treasury auctions resume with a $13B 20-year bond reopening.
Q3 earnings season continues with 26 S&P 500 components including a number of AI-related names: Meta Platforms ($META), Tesla ($TSLA), Lam Research ($LRCX), Philip Morris ($PM), Thermo Fisher Scientific ($TMO), Texas Instruments ($TXN), IBM ($IBM), Abbott Laboratories ($ABT), NextEra Energy ($NEE), Danaher ($DHR), AT&T ($T), CME Group ($CME), Elevance Health ($ELV), CSX ($CSX), Moody’s ($MCO), Kinder Morgan ($KMI), United Rentals ($URI), Wabtec ($WAB), Crown Castle ($CCI), Northern Trust ($NTRS), Teledyne Technologies ($TDY), Las Vegas Sands ($LVS), Packaging Corp. of America ($PKG), Southwest Airlines ($LUV), Rollins ($ROL) and Globe Life ($GL).
Ex-US highlights are UK September CPI, PPI, RPI, public finances, August house price index, Japan September trade balance, New Zealand Q3 CPI.
Small-Caps Lead a Broad Rally as Tech Bounce Stalls
Easing long-term yields and oil prices lifted the Russell 2000 to its best day since early August and saw 9 of 11 S&P 500 sectors higher, even as weakness in Tech dragged on the cap-weighted index.