Correction? What Correction?

Economic Data

- (PT) Portugal PPI M/M: -0.2% v -0.1% prior; Y/Y: -1.0% v -1.0% prior
- (PL) Poland Sept Sold Industrial Output M/M: 16.5% v 14.5%e; Y/Y: 4.2% v 2.7%e
- (PL) Poland Sept PPI M/M: 0.1% v 0.1%e; Y/Y: -1.6% v -1.5%e
- (US) Sept Housing Starts: 1.017M v 1.008Me; Building Permits: 1.018M v 1.030Me
- (CA) Canada Sept CPI M/M: 0.1% v 0.1%e; Y/Y: 2.0% v 2.0%e; Consumer Price Index: 125.8 v 125.7 prior
- (CA) Canada Sept CPI Core M/M: 0.2% v 0.2%e; Y/Y: 2.1% v 2.1%e
- (US) Oct Preliminary University of Michigan Confidence: 86.4 v 84.0e

The equity snap-back has been general over the European and US sessions. Stock indices in Europe are looking to close up around 3% a piece, while most leading US indices are up more than 1.5% a piece. Meanwhile, the VIX is back around 20 after reaching 29.30 just 24 hours ago. Benchmark government yields are reversing the moves seen midweek, and the US 10-year is at 2.22%. As of writing, the DJIA is up 1.60%, the S&P500 is up 1.55% and the Nasdaq is up 1.63%.

The Chinese central bank stepped in with more support for China's banking system, just two days after the September CPI data came in at its lowest level since early 2010. Reportedly the PBoC will inject 200 billion yuan into as many as 20 publically traded banks. Recall that back on September 16th, the PBoC started offering a 500 billion yuan standing liquidity facility to the top five Chinese banks.

After dropping to the $80 handle in trade yesterday, WTI crude is up more than three bucks to trade around $83.45 this morning. Headlines out today suggest that non-Persian Gulf OPEC nations are pushing back against their Gulf partners and seeking a cut in OPEC production quotas. Libya wants a ceiling of 30M bpd, while Iran wants an emergency meeting and will call on Saudi Arabia to lower its production.

Shares of ITT Education are up sharply this morning after the company released long-delayed second quarter enrollment metrics and fresh third quarter metrics. This was the first enrollment data out of the company since the company disclosed it had breached debt covenants and withdrew its 2014 forecast in May and warned enrollments would fall again. The data suggested the fall-off wasn't as bad as expected and shares are up ~80%, but off their best levels.

Earnings winners include General Electric and Morgan Stanley. GE is up 3.6% after the firm reported very solid results. CEO Immelt called the economy healthy and the best US market since the crisis. Industrial names Honeywell and Textron are also up sharply on strong results: HON is up 4% and TXT is up 11%. Like other big investment banks, Morgan Stanley had an excellent third quarter, with earnings and revenue that comfortably topped expectations, although some of its unit revenue growth was less impressive than its peers. MS is up 2.6%.

On the downside, shares of Google are off their worst post-market lows but still down more than 1% after its dismal third quarter results. Analysts note that the firm's decline in cost per click was better than last quarter, although the gain in paid clicks was much less than forecasted. Shares of Sandisk fell nearly 5% in the postmarket after the firm's fourth quarter guidance missed expectations and executives warned they were seeing grow constraints despite the robust demand outlook. SNDK is down 1% as of writing.  

Looking Ahead

- Norway, Slovenia and Spain Sovereign Debt Rating may be released after the close
- 15:00 (US) API Monthly Statistical Report