• US stock market, economy and companies update (October 01, 2015)

    US futures were up very modestly earlier today, but the gains evaporated quickly in thin trading after the open. There was a degree of cognitive dissonance as investors saw another very strong month for US auto sales even as the ISM manufacturing index slipped closer to flatlining. As of writing, the DJIA is down 0.63%, S&P500 has given up 0.43% and the Nasdaq is off 0.67%, weighed down by tech losses.

    The September ISM manufacturing reading brought the index closer to contraction, sinking to 50.2 from 51.1, with the new orders index dropping to 50.1 and prices paid falling to 38.0. Survey respondents cited concerns about the global economy and consumer confidence for the continuing declines. The continuing claims reading of 2.19 million marked a freash cycle low for the series, passing the prior low of 2.204 million seen four months ago.

    WTI crude advanced past the $46 handle in the Asian and European sessions, then briefly spiked as high as $47.10 around 09:00ET, just ahead of the open of cash US equity trading. Headlines and analysis of Russia's new bombing campaign in Syria have dominated the media today, while some say short covering also helped drive the momentary move higher. As of writing, the front-month WTI contract has gradually relinquished its gains and fallen back below $46. Brent is back around $48.40 after rising as high as $49.80 earlier.

    US automakers saw double digit sales gains in the month of September, likely pushing the industry's total US annualized sales rate over 18 million units, its best rate in over a decade. Fiat Chrysler US sales rose 14%, powered by a 40% rise in Jeep deliveries, its second best month ever for the brand. GM sales gained 12% and Ford sales gained a whopping 23% y/y. Nissan's September figure up 18% y/y, Honda reported sales +13% y/y.

    Congress pieced together a stopgap deal that will keep the government funded through December 11, but the deal sets up another budget showdown for later this fall, as Congress will need to pass a budget and raise the debt ceiling. The last time these two legislative requirements fell near each other, in 2013, the government was shut down for 17 days. Note that the final FOMC meeting of the year is conveniently scheduled for December 16.

    Shares of Apple are off 2.4% after Digitimes reported that some of Cupertino's component suppliers are concerned that Apple may trim orders in the fourth quarter. Suppliers said that iPhone 6S shipments could fall to 65-70M units in the fourth quarter from 75-80M units in the third quarter. Avago is off 4% on the news, Cirrus Logic has lost 2.5% and Qualcomm is off less than 1%.

    Glencore's modest recovery seen over the last two sessions stalled out today. In a note out earlier, Barclays wrote that the company had up to $50B in credit lines opened with banks, with only 30% used, based on comments made after management met with major investors two days ago to tell them it is still operationally and financially robust. There were further reports out this morning that the CEO, in a memo to employees, stated that the company has $13.5B in available liquidity.

    Looking Ahead
    - 12:00 (IT) Italy Sept New Car Registrations Y/Y: No est v 10.7% prior
    - 12:00 (IT) Italy Sept Budget Balance: No est v -7.8B prior
    - 13:00 (MX) Mexico Sept IMEF Manufacturing Index: No est v 51.8 prior; Non-Manufacturing Index: No est v 49.5 prior
    - 14:00 (BR) Brazil Sept Trade Balance: $2.5Be v $2.7B prior; Total Exports: No est v $15.5B prior; Total Imports: No est v $12.8B prior
    - 17:00 (CO) Colombia July Economic Activity Index (Monthly GDP): Y/Y: No est v 3.1% prior
    - 19:00 (KR) South Korea Aug Current Account Balance: No est v $10.1B prior; Balance of Goods (BOP): No est v $10.9B prior
    - 19:00 (KR) South Korea Sept CPI M/M: 0.2%e v 0.2% prior; Y/Y: 0.9%e v 0.7% prior; CPI Core Y/Y: No est v 2.1% prior
    - 19:30 (JP) Japan Aug Jobless Rate: 3.3%e v 3.3% prior; Job-To-Applicant Ratio: No est v 1.21 prior; Overall Household Spending Y/Y: 0.4%e v -0.2% prior
    - 21:30 (AU) Australia Aug Retail Sales M/M: 0.4%e v -0.1% prior


    Economic Data
    - (ZA) South Africa Q3 BER Consumer Confidence: -5 v -15 prior
    - (ZA) South Africa Aug Electricity Consumption Y/Y: -5.4% v -2.2% prior; Electricity Production Y/Y: -4.9% v -3.3% prior
    - (US) Sept Challenger Job Cuts: 58.9 v 41.2K prior; Y/Y: 93.2% v 2.9% prior
    - (US) Initial Jobless Claims: 277K v 271Ke; Continuing Claims: 2.19M v 2.23Me
    - (BR) Brazil Sept PMI Manufacturing: 47.0 v 45.8 prior
    - (CA) Canada Sept Manufacturing PMI: 54.8 v 49.4 prior
    - (SG) Singapore Sept Purchasing Managers Index (PMI): 48.6 v 49.4e v 49.3 prior; Electronics Sector Index: 48.5 v 48.8 prior
    - (US) Sept Final Markit Manufacturing PMI: 53.1 v 53e
    - (US) Sept ISM Manufacturing: 50.2 v 50.6e; Prices Paid: 38.0 v 39.3e
    - (US) Aug Construction Spending M/M: 0.7% v 0.5%e
    - (MX) Mexico Aug Total Remittances: $2.3B v $2.2B prior
    - (US) Weekly EIA Natural Gas Inventories: +98 bcf v +99 to +101 bcf expected
    - (MX) Mexico Sept PMI Manufacturing: 52.1 v 52.2e

    [I]Contributed by Trade The News[/I]
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