Observations + Charts
A few items are in focus this morning. Eurozone inflation exp shot higher on a 1-year basis (+4% vs. +3.5% in Aug and +3.4% in Jul) although 3-year exp held steady at +2.5% (this places a bit of pressure on the ECB, not won’t likely change the course of policy). Democrats had a very strong night in various races around the country as the party continues to best Republicans in off-cycle/special elections thanks largely to abortion. Washington shutdown chatter will rise further in the coming days as no plan has yet to emerge for dealing w/the looming 11/17 spending expiration.
None of the earnings Tues night/Wed morning were “macro”, although Ahold is one of the weakest stocks in Europe after reporting, w/the firm’s US business a source of concern (in the US, mgmt. called out a reduction in SNAP benefits, higher interest rates, and the resumption of student loan payments as factors that are weighing on consumer sentiment) while EBAY also had some downbeat words about what it’s seeing w/consumer activity.
A bunch of Fed officials will be speaking today, including Powell at 9:15amET.. The 10-year Treasury auction at 1pmET will be very important (while normally an anodyne and relatively unimportant event, a solid auction could push yields even lower). For earnings, the big reports before the open include BIIB, EDR, K, RBLX, RL, UAA, and WBD while DIS, HUBS, MGM, TTWO, and TWLO are the highlights after the close.