After gapping up, Friday proved to be a day of rest with the indexes chopping and range-bound below their 50-day averages.  Unfortunately, we could see more of the same chop today with the Federal holiday, Columbus Day, closing the bond markets and banking.  In addition, with no earnings events or Economic calendar reports finding inspiration could be challenging.  We may, In fact,  have to wait until Wednesday when JPM kicks off earnings season and investors search for taper clues in the FOMC minutes later the same day.  As we used to say in the Army, hurry up and wait.

Asian markets traded mixed overnight with tech surging.  European markets trade mixed but mostly lower this morning, as the U.S. point to a lower open to begin the week with oil surging over $81 per barrel. 

Economic Calendar

Earnings Calendar

Although we have nine companies listed on the earnings calendar, none of them are confirmed.  Consequently, there are no notable reports this Monday. 

News & Technicals’

Merck said it asked the FDA to authorize emergency use of its experimental antiviral pill to treat mild-to-moderate Covid-19 in adults.  Phase three clinical trial data showed that the drug molnupiravir reduced the chances that patients newly diagnosed with Covid were hospitalized by about 50%.  The experimental drug could be available to Americans by late this year.  Southwest has canceled more than 1,800 flights over the weekend.  The Dallas-based airline blamed the disruptions on air traffic control issues, bad weather, and staffing shortfalls.  The energy crises in mainland China and Europe are the latest to roil shipping. Capital Economics noted that the number of ships waiting outside Chinese ports had jumped again in recent weeks.  Factory shutdowns in Vietnam, where many firms moved manufacturing amid the U.S.-China trade dispute, have also affected the production of many goods.  U.S. bond markets are closed due to the Columbus Day Federal Holiday.

The indexes spent most of the day Friday chopping and range-bound as they struggled to find the energy below their 50-day averages.  With the bond markets and banking closed for Columbus Day, I would not be all that surprised to see the choppiness continue today.  With nothing on Economic Calendar and no verified earnings reports, we struggle to find inspiration.  Perhaps the political debt ceiling wrangling and sound bite jousting over the social programs bill could inspire, but it is more likely to inject volatility into the chop.  This week traders will search for clues of taper in the Wednesday FOMC minutes and the kickoff of 4^th quarter earnings with the big banks with JPM Wednesday morning. 

Trade Wisely,

Doug