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Firmer Netflix, AT&T Earnings Support NASDAQ Outperformance

EQUITIES
  • US equity markets are recovering further off lows headed into the NY crossover, with the e-mini S&P probing overnight highs of 4348.75. This trims the day's losses and tips the index back in positive territory - but is outperformed by the NASDAQ future, buoyed by strong pre-market trade in post-earnings trade for Netflix (NFLX +13.4% post-earnings), AT&T (T +3.3%) and countering the pullback in Tesla (TSLA -5.2% after pessimistic guidance). Freeport McMoran, American Airlines the last key reports due pre-market.
  • Technically, the 200-dma undercuts as support for the e-mini S&P at 4319.17, which held overnight despite pressure feeding through from weaker Chinese asset markets. The average was broken in late Sep/early Oct, but proved to be a false break. Weekly jobless claims will draw some focus, but the appearance from Fed's Powell could prove more pivotal given the 50/50 pricing for another 25bps hike this cycle.

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