WEDNESDAY 10/14/15; China CPI (Consumer Price Index) and PPI (Producer Price Index); DAL; BAC; WFC; US PPI; Retail Sales; Business Inventories; WMT Collapses After Cutting Outlook; US 10-Year Treasury Yield Under 2%; Beige Book; NFLX

Australia stocks begin the session lower. Ditto the other Asian indexes. China September CPI (Consumer Price Index) is up +1.6% year-on-year less than the +1.8% expected and below the prior month’s +2%. China PPI (Producer Price Index) is down -5.9% exactly in line with the estimates and the prior month. The PPI is negative every month for nearly four years. Deflation risks linger in China.

A couple of hours into Asia trading, as the democrat debates finish in the States on Tuesday evening, the ASX 200 is down -0.6%. KOSPI off -0.8% and NIKK down -1.7%. The Nikkei Index is under 18K. Komatsu bulldozes itself -4% lower. Nikon loses more than -5% on slumping camera sales. Japanese car makers trade higher.

In China, the SSEC is down marginally -0.2% and in Hong Kong, the HSI loses -0.7%. Singapore GDP is better than expected so the economy narrowly avoids recession. The Singapore central bank eases monetary policy but






















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Netflix is on a conference call. XLNX jumps +3.1% after beating by a penny on EPS and guiding higher. Tesla announces an auto-pilot feature for its cars which is met with yawns. TSLA +0.2%.

Treasury Secretary Lew says the United States will run out of money in early November unless Congress raises the debt ceiling limit. The heat in the Washington, DC, kitchen is only getting hotter.

WSJ journalist Jon Hilsenrath releases an article titled, “Fed Doubts Grow on 2015 Rate Hike.” The article is important since Hilsenrath is considered by many market participants as a mouthpiece of the Fed. Hilsenrath always appears to have insight into the Federal Reserve’s thinking that others do not. Hilsenrath cites weak economic data and activity likely pushing the first rate hike into 2016 therefore the party begins.

Hilsenrath has signaled the all-clear. US futures are buoyant and rising. Asia and Europe trading should be positive. The easy money will continue well into 2016 so traders will buy stocks tomorrow. The central bankers are the market. The Fed saves the day!