Major indices have given up some of their early gains amid intraday weakness. A positive start to earnings season is somewhat offsetting the US-China trade friction and US government shutdown.

Eight sectors are moving higher. Real Estate (XLRE) is in the lead and is getting a boost from data center REITs, after Prologis, Inc. (PLD) reported earnings that beat both top and bottom lines, while raising guidance, this morning. Meanwhile, Technology (XLK) is the runner up and getting a boost from many semiconductor names.

On the flip side, Industrials (XLI) is the laggard, followed by Energy (XLE), which is continuing to underperform on lower oil prices.

The Fear & Greed Index is improving, but still in the fear zone.

This morning, Scott Bessent proposed a longer pause on US tariffs for China if China delays their tightened limits on rare earths. He said on the idea of a longer truce with China that it could be possible, “but all that’s going to be negotiated in the coming weeks.”

Expectations of the length of the shutdown continue to increase and betting markets are now indicating 36 days.

The New York State manufacturing Index surged 19.4 points to 10.7 in October and beat expectations of -1.

Notable Changes:

• New orders improved to 3.7 from -19.6
• Shipments rebounded to 14.4 from -17.3
• Inventories moved to -1 from -4.9
• Employment increased to 6.2 from -1.2

Notably, the 6-month outlook reached its highest level since January at 30.3%.