DAILY MORNING CHAI

The S&P 500 futures trade 26 points, or 0.8%, below fair value at the end of a rough week, although they were down as much as 2.3% below fair value in the overnight session. Investors are currently digesting the earnings news from the mega-cap companies, which carried the market higher yesterday. Apple (AAPL 110.53, -4.79, -4.2%), Amazon (AMZN 3167.50, -43.51, -1.4%), and Facebook (FB 278.59, -2.24, -0.8%) are each trading lower as shareholders nitpick their earnings reports, while Alphabet (GOOG 1667.26, +100.02, +6.4%) is being rewarded with a 6% gain following its positive results. Granted, Apple did refrain from providing guidance, which isn't helping the stock's performance this morning. Its 4% decline is perhaps the most influential weight on the market right now. On the data front, investors will receive Personal Income (Briefing.com consensus 0.3%) and Spending (Briefing.com consensus 1.0%) data for September, which will include PCE Prices, and the Q3 Employment ...

The S&P 500 futures trade 16 points, or 0.5%, above fair value to extend the rebound effort from yesterday afternoon. A deluge of earnings reports has taken some focus away from deadlocked stimulus talks, the resurgence of the coronavirus, and the upcoming presidential election. The response to those reports, however, has been relatively mixed and underwhelming. Dow components Pfizer (PFE 37.85, -0.07, -0.2%), Merck (MRK 79.70, +0.86, +1.1%), Caterpillar (CAT 160.99, -2.21, -1.4%), and 3M (MMM 166.00, -0.16, -0.1%) each beat EPS estimates but no report has moved the needle this morning. Separately, shares of Xilinx (XLNX 127.64, +13.09, +11.4%) are up 11% ahead of the opening bell after agreeing to be acquired by Adv. Micro Devices (AMD 80.32, -1.84, -2.2%) in an all-stock transaction valued at $35 billion. On a related note, AMD beat top and bottom-line estimates and guided Q4 revenue above consensus. Today's economic data will consist of Durable Goods Orders for September ...

The S&P 500 futures are down 36 points and trade 1.0% below fair value amid news that stimulus talks remain deadlocked and the U.S. hit a new record in daily coronavirus cases. Naturally, growth concerns are at the root of the negative bias since the resurgence of the virus threatens more lockdowns and the lack of a stimulus deal threatens to exclude many struggling businesses and households from the economy. The 10-yr yield is down two basis points to 0.82% amid increased demand for the growth/inflation-sensitive bond. In addition, Germany's SAP (SAP 119.30, -30.38, -20.3%) disappointed investors by lowering its revenue outlook due to the lockdowns in Europe and a muted demand recovery. Shares of SAP are down 20% at the NYSE. Separately, investors are looking ahead to a huge week in tech earnings. Microsoft (MSFT 214.59, -1.64, -0.8%) will report on Tuesday, followed by Apple (AAPL 114.01, -1.03, -0.9%), Amazon (AMZN 3193.52, -10.88, -0.3%), Alphabet (GOOG 1624.00, -17.00, ...

The S&P 500 futures trade 15 points, or 0.4%, above fair value at the end of a negative and indecisive week. The benchmark index will look to pare its 0.9% weekly decline today. Yesterday's recovery-minded trade has presumably been aided by news that Gilead Sciences (GILD 63.46, +2.79, +4.6%) had its remdesivir treatment for COVID-19 approved by the FDA. Stimulus talks, meanwhile, are ongoing but the prospects for an approved deal before the election are looking less likely. The prolonged stimulus talks haven't deterred bond investors from continuing to sell longer-dated Treasuries, which have sent yields higher for the seventh straight day. The 10-yr yield is up one basis point to 0.86%, while the 2-yr yield is flat at 0.15%. The U.S. Dollar Index is down 0.2% to 92.79. WTI crude futures are up 0.4% to $40.79/bbl. Separately, Dow components Intel (INTC 48.74, -5.16, -9.6%) and American Express (AXP 102.00, -2.79, -2.7%) are trading sharply lower (INTC much more than AXP...

The S&P 500 futures trade 15 points, or 0.5%, above fair value to recoup a bulk of Friday's late-day slide. Stimulus talks and the timeline for a deal remain a focal point for the market. House Speaker Pelosi said over the weekend that the White House has until Tuesday to reach a stimulus agreement in order to pass it before the election. Ms. Pelosi said she was optimistic an agreement can be reached before then. The Senate, meanwhile, plans to vote on extending PPP funding on Tuesday and on a $500 bln stimulus package on Wednesday -- neither is expected to pass. Today's economic data will be limited to the NAHB Housing Market Index for October (Briefing.com consensus 83) at 10:00 a.m. ET. On a related note, China posted weaker than expected GDP growth for the third quarter, coming in at 2.7%, compared to expectations of 3.2%. Longer-dated Treasuries are moving lower in a trade that suggests investors are anticipating future economic growth/inflation. The 2-yr yield is f...