Halloween Is Over. Is Santa Here Already?

It's possible that the S&P 500 bottomed today. Bond King Jeffrey Gundlach appeared on CNBC following Fed Chair Jerome Powell's presser and opined that the entire yield curve looked attractive, at least for a trade. We agree. He also observed that the S&P 500 might have found support at its uptrend line connecting the lows of March 23, 2020 and October 12, 2022 (chart). We agree.

Today started with a relief rally in the bond market when the Treasury announced at 8:30 am that it would issue less than most dealers expected in 10-year and 30-year bonds next week. The 10-year Treasury yield dropped from 4.934% yesterday afternoon around 5:00 pm to close at 4.734%. Contributing to the rally were weaker-than-expected M-PMI and ADP reports for October. On the other hand, September's JOLTS report gave comfort to stock investors that there are still plenty of job openings. Of course, the rally in the bond market also helped the stock market, especially the Nasdaq, which rose 1.63%, while the S&P 500 gained 1.05%.