S&P's didn't see the light of day yesterday. In premarket hours China's largest banks tripled the number of bad loans written off in the first half of the year. That led to a selloff in global indices and raised the prospect of a tighter Chinese monetary policy. Compounding the weakness, Caterpillar had a disappointing earnings number and a reduced Q4 forecast. Gold took a hit on the China news as well, settling down -8.60 at 1334.00. Wednesday's EIA Crude Inventories showed another larger than expected build for the week ending October 19th. That's the seventh build in the last eight weeks. Combined with possible tightening in China the skies continued to look dark for WTI. Dec Oil settled down -1.44 at 96.86.
Initial Claims Forecast 335K Prior 358K
Trade Balance Forecast -40.0B Prior -39.1B
New Home Sales Forecast 420K Prior 421K
Traders will be watching today's data to decide if yesterday's equity trade was simply a speed bump or possibly a sign of things to come. Initial Claims has been know to stir up some reaction but probably not without a major leap to the upside. The Trade Balance number, while not a major market mover, might have some special meaning today as the markets try to glean some information about what's going to happen in China. Last but not least we've still got lots of earnings reports out tomorrow.Trade strong