THURSDAY 10/8/15; Japan Machinery Orders; BOE Rate Decision; DPZ; ECB Minutes; FOMC Minutes Create Stock Market Rally; SPX Above 2K; INDU Above 17K; AA Kicks off Q3 Earnings Season; RT

At 8:52 AM Tokyo (7:52 PM EST Wednesday evening in the States), US futures are flat. Asia is set for a flat to subdued open after Japan Machinery Orders disappoint down -5.7% month-on-month versus the estimate -3.6%. Machinery orders are down -3.5% year-on-year versus the -4.2% expected. Japan’s trade balance is 




















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AA kicks off Q3 earnings season reporting 7 cents on EPS missing the 13 cents expectation and also missing on the top line at $5.57 billion versus $5.65 billion expected. AA drops -4.2%. Engineering products and aerospace product sales are strong but the lower commodity prices are hurting Alcoa. Q3 earnings season is off and stumbling with a dud out of the gate.

Restaurateur RT collapses -6.4% after reporting a loss on earnings; the Rolling Stones sing, ‘Goodbye Ruby Tuesday’. Retailer GPS ‘falls into the gap’ dropping -6% after reporting weak sales. Gap is the parent company of Old Navy and Banana Republic brands. Helen of Troy is sitting pretty after reporting earnings. HELE +8%.

Euro 1.1284. Dollar/yen 119.86. Pound 1.5349. WTIC oil 49.67. Brent 53.30. Natty gas 2.487. Gold 1139. Silver 15.70. Copper 2.349.

US Treasury yields are; 2-year 0.637%, 5-year 1.396%, 10-year 2.102%, 30-year 2.937%. The yield curve steepens with the 2-10 spread up to 146.5 basis points. German bund 0.593%. Japan 10-year yield 0.339%.

The central bankers are the market. The shocker today is that the Federal Reserve was never close to considering a rate hike in September. This will change analyst thinking and push out the expectation for a rate hike well into 2016. Easy money falls from helicopters forever! The Fed continues printing money rewarding the wealthy class. Traders rejoice at the easy profits made in the stock market due to the Fed’s ongoing dovish accommodation. Meanwhile, the middle class and poor struggle daily to find jobs and support their families.