A very quiet day until the Fed meeting note got released at 2pm. Stocks rose slightly and bonds fell – although there was really nothing new in the notes. The notes basically shows that the FOMC members were disappointed with economic progress. No further insight on what actions they might take.
A weak 3yr treasury auction might be to blame for a lackluster day for bonds.
More or less flat day for stocks.
Energy was down very slightly while ags remained strong with corn up another 4%.
GBP fell on lackluster economic data especially on housing which showed home prices fell across England in September. UK inflation remained stubbornly high. Inflation exceeded the government’s 3% limit for a seventh month in September as higher clothing and food costs kept up price pressures in the economy.
Intel reported after market close and beat both earnings and revenue (but not by a big margin). CSX, a major railroad operator, also narrowly beat out earnings and revenue expectation. JPM is the big one reporting tomorrow after market close. So far this earnings season seems to be off to another great start.
With QEII now baked into asset pricing, I expect earnings reports to drive the stock market. Looks like it’s shaping up to be another good quarter with exception of perhaps financials.
Very good thing we switched out of Nikkei – it has been getting crushed the past few days on relentless strengthening of yen. I think it’d be a good idea to short some more Nikkei from here.
Tomorrow:
• Japan Aug machinery orders for Aug
• UK unemployment data for Aug
• Euroland industrial production for Aug
• China trade balance for Sep
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