Facebook (FB)

Facebook (FB) – Getting Likes –The social media giant reported lower than expected revenue for the third quarter and warned it was in the early stages of a transformation in its core businesses that will lead to slower growth and higher costs in the short term.  All in all, the results and guidance were well received by investors, with many fearing worse results.  In the pre-market , FB is trading 6% higher near $155 per share.

Coka Cola Co. (KO)

Coka Cola Co. (KO) –Bubbling! –The  Atlanta-based company posted a $1.88 Billion profit for the 3^rd quarter as diet soda and a healthier alternative drinks helped to exceed eps estimates. Shares were indicating a modest jump higher pre-market with a 1.5% lift over the past 12 months. The company has been little phased with the recent market volatility likely due to its defensive nature. Management has re-stated that they have no intentions of entering the cannabis space in the latest fad with many competing beverage producers.  

signals to buy USD against sterling

 RBC's month-end hedging model is sending "strong" signals to buy USD against sterling, the Australian dollar, the Norwegian krone and the Canadian dollar. Among those four currencies, dollar strength is for now only evident against sterling, which hit a 10-week low of 1.2756 against the dollar earlier in the session, according to FactSet. The Australian dollar trades up 0.4% against the U.S. dollar at 0.7086, while the U.S. currency is slightly lower against the Canadian dollar, and flat against the Norwegian krone. Meanwhile, EUR/USD is 0.1% lower at 1.1358, helping the DXY dollar index rise 0.2%.

Facebook (FB)

Earnings season will continue to roll on this week, with FAANG members, Facebook (FB) and Apple (AAPL) reporting.  On Friday, energy giants, Chevron (CVX) and Exxon Mobil (XOM) report before the market open.  The recent market volatility has had an effect on what the market feels the probability that the Fed may “pause” on interest rate hikes.  The chance of a December hike is now 71%, and last Monday markets were implying 80%.

commodities may be willing to pay a premium

"When inventories are low, users of commodities may be willing to pay a premium for owning a spot commodity relative to futures prices in order to avoid facing a 'stock out,'" says Geert Rouwenhorst, who has conducted extensive research on commodity prices. "You can only heat your building with physical heating oil, not futures on heating oil.  So when inventories are low, you are willing to pay a premium to own spot heating oil to avoid the risk of running out. This premium is sometimes called the convenience yield, and can lead to a backwardated futures curve." A front-month roll implies that a fund invests in the nearest maturity futures contract of their respective commodity.  Traders need to know that during the month, the fund will automatically sell out of its current contract and buy into the next nearest maturity the front month  in order to avoid delivery, you need to be aware that this can cause some big problems if not done right.  Many of the most popular commodity ETPs utilize a front month rolling strategy, which can lead to big losses for a position. The products that employ this strategy are known as "first generation" products, as they were the early entrants to the market.