October 16, 2021

Turnaround Tuesday, Pepsi’s inflation warning, dollar rebounds, nothing stopping oil, gold lower

US stocks are rebounding as investors find value in beaten up tech stocks and are coming to the realization that the global natural gas crisis is good news for energy stocks. Yesterday, the Nasdaq selloff brought the recent slide to 8.5% from recent record highs. US growth exceptionalism will be the theme for the next couple of quarters and that will help make it easy for fund managers to buy every dip. Turnaround Tuesday might not lead to a substantial rally as Evergrande uncertainty remains, DC drama will last a couple more weeks, Treasury yields are consolidating ahead of Friday’s employment report, and Shanghai markets are closed for Golden Week.

The risks to the outlook remain and trading over the next couple of days may start to become rangebound. Pepsico’s results and commentary provided another check to the inflation is persisting camp, and if that…

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