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• 🕺Markets seemingly optimistic ... even greedy in a bear

• 🤝 Debt ceiling deal may mean more liquidity

• ⛵ Is Nvidia going to be the tide again this week?

🐝 Monday Buzz - The only big news in town came out of Washington, where our favorite political "bromance", Biden and McCarthy, managed to shake hands over that sticky debt ceiling problem. Now, is this a massive thumbs-up for markets? Not really. But is it a doom-and-gloom scenario? Nah. The commentary around it, though, has been as upbeat as Eeyore on a rainy day.

There's been a lot of chatter about a tidal wave of Treasury bill issuance that's supposed to hit soon. It's got folks worried about what it means for market liquidity and equity valuations. It's a fair worry, but it's become as popular as avocado toast and maybe just as overblown. Some folks are saying this could drain around a trillion bucks of liquidity by year-end, but that's a bit too simplistic. It's like saying every slice of avocado toast equals an hour at the gym. Doesn't quite work that way, right?

🏛️ Vibes From the Stock Market - Now onto the meat and potatoes. When it comes to stocks, we're like sailors navigating by the North Star – and our North Star is earnings strength. This baby is what's keeping the wind in our sails, helping the S&P 500 rally further. Add to that a slower pace of global monetary tightening and a favorable technical landscape, and you've got a pretty sweet deal going for stocks.

What's the cloud in our silver lining, you ask? We're a bit worried that as the economy goes back to "normal" (yes, that elusive state of being), it could weigh on earnings more than it pulls down yields, creating a headwind for stocks.

Two more things that have us reaching for the antacids: 1) bears are turning into bulls, chasing stocks for reasons as nebulous as "AI" (like your grandpa suddenly deciding he needs the latest iPhone, it's a bit concerning), and 2) the upside potential for the S&P 500 isn't exactly making us jump for joy. Even if we assume a 19x multiple on the 2024 EPS forecast of $240 (and these are pretty generous assumptions), it only nudges the index up about 8.5% from here. Not exactly a ticker-tape parade.

💵 The Macro Level - Quants have been piling into stocks recently, which is kind of like your grandma discovering online shopping - it's given the market a bit of a lift and kept things relatively smooth.

Meanwhile, China's playing 'catch the chicken' with COVID, opting to power through the current wave rather than slap on new lockdowns, with an eye on juicing the economy. Russia, on the other hand, is pumping oil like there's no tomorrow to prop up its economy, all while juggling a disastrous war in Ukraine. It's a bit like trying to put out a fire while simultaneously trying to roast marshmallows.

On the bright side, regional bank stocks are starting to look like a half-price sale on Black Friday, attracting some serious bargain hunters.

📱 Foxconn's sweetening the deal for new recruits at the world's largest iPhone factory with better pay and bonus packages. It's like the golden ticket in a Willy Wonka chocolate bar.

💾 South Korea's memory giants, Samsung and SK Hynix, are deciding to sidestep China's Micron ban, showing they're not keen on playing 'pin the tail on the donkey' with the global tech supply chain.

🤖 In other tech news, Nvidia's Jensen Huang unveiled a heap of new AI-related goodies at a show in Taiwan including a WPP and Nvidia tag-team on a new generative AI platform that could knock out ad campaigns faster than you can say "Mad Men".

📺 Meanwhile while Newell Brands announced a restructuring plan to streamline its North American distribution network, aiming for annual pre-tax savings of around $25-35 million. That's a whole lot of penny-pinching. 🤏💵

🧑‍🚒 🗒️ In the world of home insurance, State Farm's taking a rain check on new policies in California thanks to wildfire risks and inflation pressures.

🌯 Wrap for earnings. Have a fantastic day! 🌯

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Fin-specto Revelio!