Today's Headlines

Bloomberg: 

• Foreigners Sold U.S. Assets as China Reduces Treasuries. Foreign investors were net sellers of U.S. long-term portfolio assets in August as China reduced its holdings of Treasuries to a six-month low. The net long-term portfolio investment outflow was $8.9 billion after a revised $31 billion inflow in July, the Treasury Department said in a statement today in Washington. Net sales of U.S. equities by official holders abroad were a record $3.1 billion, and China lowered its holdings of U.S. government debt for the second time in three months, the department said.

• European Stocks Climb for Ninth Day on Earnings Optimism. European stocks rallied for a ninth day, their longest winning streak since June 2010, as companies from Novartis AG to Reckitt Benckiser (RB/) Group Plc raised forecasts and the U.S. unemployment rate fell to an almost five-year low. Novartis rose 2 percent, making the biggest contribution to the Stoxx Europe 600 Index’s gains. Reckitt Benckiser jumped the most since February 2009. Tele2 AB tumbled to a four-year low after Sweden’s second-largest phone company posted an unexpected loss and lowered its 2015 forecast for sales and profit. Telekom Austria AG slid 5.7 percent after buying frequency blocks at a spectrum auction. The Stoxx 600 advanced 0.5 percent to 320.97, extending a five-year high.  

• Treasury Yields Fall to 3-Month Lows After U.S. Adds Fewer Jobs. Treasury 10-year note yields fell to a three-month low after a report showed payrolls climbed less than projected in September, indicating the U.S. economy had little momentum leading up to the federal government shutdown. European, Canadian and emerging-markets debt also rallied as the payrolls report added to speculation that the Federal Reserve will maintains its U.S. bond-buying program into next year, which has helped to keep borrowing costs low worldwide. The Treasury’s auction of $35 billion of one-month bills attracted demand at close to the pre-government shutdown average seen for the securities this year as investor concern that the U.S. may default ebbed.

• WTI Crude Falls Below $98 for First Time Since July. “The fundamentals of the market aren’t that supportive,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “We’re looking for another sizable build in tomorrow’s report, adding to what are already ample supplies. We should see the builds continue for the next several weeks.” WTI crude for November delivery, which expires today, decreased $1.67, or 1.7 percent, to $97.55 a barrel at 1:52 p.m. on the New York Mercantile Exchange. Prices touched $97.50, the lowest level since July 1. The more-active December contract slid $1.34, or 1.3 percent, to $98.34. The volume of all futures traded was 32 percent higher than the 100-day average. 

• Gold Futures Climb to Highest in Three Weeks on U.S. Jobs Data. “The payrolls data is pushing gold higher as investors think the economy needs more support to gain momentum,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. Gold futures for December delivery climbed 0.9 percent to $1,327.70 an ounce at 9 a.m. on the Comex in New York, after reaching $1,337.90, the highest for a most-active contract since Sept. 30. The price fell as much as 0.5 percent before the jobs data was released. 

• Soybeans, Corn Fall as Dry Weather to Speed Up U.S. Harvesting. Soybean futures for delivery in January slid 0.2 percent to $12.975 a bushel at 10:40 a.m. on the Chicago Board of Trade. Prices reached $13.0125 yesterday, the highest since Oct. 8. U.S. soybean production may rise 4.4 percent to the highest in three years, the USDA said Sept. 12. Corn futures for delivery in December slumped 1.1 percent to $4.3925 a bushel in Chicago, heading for the biggest drop since Oct. 11.

• JPMorgan Guilty Plea Sought by Holder Shows Harder Stance. JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon went to Washington almost a month ago to see if U.S. Attorney General Eric Holder would settle a criminal probe of mortgage fraud at the bank if it paid more money to resolve related civil investigations. 

• EBay(EBAY) Probed by Regulator Over Loans Pioneered by Payday Lenders. EBay Inc. (EBAY) is facing a probe by the Consumer Financial Protection Bureau over a loan program that mimics a structure used by high-interest lenders to evade state rules before the practice was stamped out by regulators. 

Wall Street Journal: 

• Wall Street Profits May Halve in Second Half. Washington Wrangling Takes Toll, Comptroller Says.

Fox News:

• US rift with allies grows as Saudi Arabia, France voice concerns. While the White House battles Congress over everything from the budget to ObamaCare, a potentially seismic shake-up is happening in America's relationship with some of its most-longstanding allies.

MarketWatch:

• Coach’s(COH) shares drop; weak sales fuel concern.

CNBC:

• Watch Art Cashin: Why high-momentum stocks got hit. (video)

• CEO pay skyrockets on soaring stock market. CEOs' wallets are turning into one of the biggest winners from the rising stock market, with the top 10 payouts hitting a record $4.7 billion, and they're likely to get even fatter next year.

Zero Hedge: 

• September Nonfarm Payrolls Miss 148K vs Exp. 180K; Unemployment Rate Drops to 7.2%. (graph)

• If You Believe In The Recovery, Do Not Look At This Chart. (graph)

• Dan Loeb's Third Point Returns 10% Of Capital Amid "Concerns About The Global Economy". (graph) 

• Some Thoughts On Debts, Deficits & Economic Growth. (graph)

Business Insider: 

• LIVE: Apple(AAPL) Reveals New iPads.

• Almost No Risk Is Priced Into Financial Markets, And There's Virtually Nothing On Investors' Radar.

• Netflix(NFLX) Shares Collapsing. (graph)

• THE SCARIEST JOBS CHART EVER.

• There's A Big Slowdown At Malls Across America.

CNN:

• Polls: Early reviews for HealthCare.gov aren't pretty. Just 12% of people questioned in a CBS News poll released Tuesday say they think the process is going well, with nearly half saying it's not going well and nearly four in 10 saying they can't evaluate the signup process at HealthCare.gov.

Reuters: 

• China central bank may tighten cash supply as home prices fuel inflation fears. China signaled concern on Tuesday that ample credit could fuel inflation as a report showed house prices jumped the most in nearly three years, with double-digit gains in major cities. A policy adviser to the People's Bank of China told Reuters the authority may tighten cash conditions in the financial system to address the inflation risks, while the central bank refrained from supplying cash to money markets for the second day running. If it also avoids injecting cash at its next money market operation on Thursday, the effect will be a net weekly drain of 58 billion yuan - the second biggest since February. "(Policy) will only be tightened slightly as inflation is rising. There are some concerns on bank lending," said Song Guoqing, an academic member of the central bank's monetary policy committee.

• Bankers prep first ever US home-rental cashflow ABS -sources. The first-ever bond backed by home-rental cashflows, a US$300 million asset-backed security from private equity giant Blackstone, will begin pre-marketing within the next two weeks, sources close to the deal said on Tuesday. The security is expected to have credit ratings from Kroll, Morningstar, and Moody's, the sources said.