Here is what you need to know.
The stock-market meltdown relents with a global rally. Global markets are in rally mode after two days of heavy selling, with Hong Kong’s Hang Seng (+2.12%) pacing the advance in Asia and Britain’s FTSE (+0.69%) out front in Europe. The S&P 500 is set to open up 1.3% near 2,764.
Trump says he can do ‘a lot more’ to hurt China’s economy if no concessions are made ahead of Xi meeting. “It’s had a big impact,” President Donald Trump told Fox News of the impact of the tariffs he recently placed on China. “Their economy has gone down very substantially and I have a lot more to do if I want to do it.”
China posts a record trade surplus with the US. China’s trade surplus with the US ballooned to a record $34.13 billion in September, easily surpassing the record $31.05 billion from August, Reuters reports.
Gold logs its biggest gain since Brexit. Thursday’s stock-market sell-off sparked a flight to safety that sent the yellow metal up 2.46% to more than $1,224 an ounce, making for its biggest gain since the Brexit vote in June 2016.
The madness in markets has traders paying the most in years to protect against more damage in tech stocks. Skew, or the premium options traders are paying to protect against a 10% loss in the PowerShares QQQ Trust ETF over the next three months, relative to wagers on a similar increase, is at a level seen only a handful of times in the past decade.
Richard Branson and Virgin Group are severing their business relationships with Saudi Arabia. In a blog post on Virgin Group’s website, the company said Virgin Galactic and Virgin Orbit would suspend discussions with the Public Investment Fund of Saudi Arabia in the wake of the disappearance of the journalist Jamal Khashoggi at the Saudi Consulate in Istanbul last week.
Sears CEO Eddie Lampert is exploring a bid for some of the company’s assets in an alternative bankruptcy scenario. Lampert is considering making a play for Sears’ Kenmore appliances brand and home-services business in addition to some real estate, creating a scenario that would help the retailer at least initially avoid liquidation, Reuters says, citing sources.
Square has been getting demolished. Shares of the payments company plunged nearly 11% Thursday after the unexpected resignation of CFO Sarah Friar. They have lost more than 30% since hitting a record high on October 1.
The banks kick off earnings season. Citigroup, JPMorgan, and Wells Fargo all report ahead of the opening bell.
US economic data keeps coming. Import and export prices will be released at 8:30 a.m. ET, and University of Michigan consumer confidence will cross the wires at 10 a.m. ET.