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The Morning Hammer: Thank You OPEC!

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Yesterday afternoon, OPEC announced an output cut, ending months of speculation and confusing headlines.

That sent oil and energy stocks skyrocketing, and pushed the S&P 500 to flip from a decline to a 0.5% gain.

Now if you are bullish on oil and willing to take serious risk, I would look at Diamond Offshore Drilling (DO), which will be removed from the S&P at tomorrow's close.

This is a truly hated stock (just 3 buy ratings out of 35 covering analysts) and it's still near generational lows. The index removal is definitely the type of news you see near cyclical lows.

I'm already pretty heavy in energy with my KYN and BGR positions, but I'm still taking a look.

Overseas markets followed through on the oil-driven US strength, with the Euro Stoxx 50 up 0.8% and the Nikkei up 1.4%.

Commerzbank announced a major workforce reduction and dividend suspension, and is shrinking its securities business.

Pepsi (PEP) beat on earnings and raised guidance on strong results in North America.

Barclays cut its target on Apple (AAPL) and removed its “Top Pick” status, sending the stock a little lower pre-market.

Pacific Crest downgraded FitBit (FIT) to underweight on weak channel checks.

Despite the mostly good news flow, SPX futures are back to flat, which I guess makes sense ahead of 2 days of important economic data.

Today, we have GDP with the all-important PCE Deflator (the Fed's preferred inflation indicator) following tomorrow.

Trader are split roughly 50-50 on whether the Fed will hike rates in December, and these numbers could very well shift based on these reports.

US economic data has been generally stinky since late July, though we've had a few bright spots like the recent Durable Goods, Consumer Confidence, and Jobless Claims numbers.

This morning, the Fed's Harker said he wants to raise rates sooner rather than later. So let's see if the numbers support him.