Morning 10-2

  President Donald Trump announced early Friday morning that he and first lady Melania Trump have both tested positive for COVID-19 and would “begin our quarantine and recovery process immediately.” The Trumps were tested after Hope Hicks, one of the president’s closest advisers, tested positive Friday (roll Call)

 Stocks tumbled as news hit early in the A.M., they are off worse levels of day but still heavy Spoos -1.5% Nasdaq -2.2% European stocks less bad with Dax -1% Stoxx 50-.9%. Limiting some of the downside is the heightened possibility of more stimulus as EZ cpi fell the most in 4+ years, from trading economics “The Eurozone consumer prices are expected to fall 0.3% from a year earlier in September, the steepest decline since April 2016 and compared to market expectations of a 0.2% drop, a preliminary estimate showed. The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, likely hit an all-time low of 0.2%.”

 Dollar initially rallied on the news but have since pulled back to trade little changed on day, Todays payroll numbers were already trending towards a non-event and now with Covid news become even Less relevant. Not a surprise treasury has a bid albeit a soft one Bonds + half a handle and have less then 1 full point range nothing it appears can shake bonds out of there range. After one of the worst days in Copper this year  it bouncing a bit today, rumors yesterday of a blow out  in Nat gas options has yet to be confirmed, but activity over the last week or so has been a bit irrational even for Nat Gas

 Markets don’t like Uncertainty we all agree on that thus the drop in Risk overnight, Is the president’s case Mild, is he showing Symptoms? Are other members of Government infected questions as well that will need to be answered from Mizuho lot of uncertainty heading into the weekend. The biggest question now is how many other people in the White House have been infected? Another issue is what it does to the debate schedule? Will the next Presidential debate on October 15th take place? Trump faces an uphill struggle to turn things around. Less debates, the lower the odds that happens. It also limits his rallies during quarantine”

Todays payroll data is the last before election don’t be surprised if number beats to the upside as some mysterious amount of jobs are created, this happened in the Obama years.

News:

  • On Thursday, a combined $74.5 million worth of Amazon call options expiring in January and March changed hands, divided between two block trades. Almost $52 million worth of bullish Facebook options expiring in the same months traded in two transactions. Roughly $25 million was spent on similarly dated Netflix calls in two blocks, while $28.4 million worth of Alphabet Inc. bullish bets crossed in two trades.” BBG
  • -@ChadPergram: House approves $2.2 trillion coronavirus bill. The vote was 214 to 207. All Republicans voted no. House Democrats are showing they have now passed two coronavirus bills on their own. The Senate will not take up this bill
  • Pence tests negative
  • Most of Asia on Holiday
  • New York Bond ratings cut for first time in 30 years
  • *TESLA 3Q DELIVERIES 139,300, EST. 129,950

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