NewsWare Morning Highlights

Commentary, News

MORNING NOTES:

Futures are indication a slightly lower opening this morning. Weak earnings announcements from CAT & BA are pushing the indexes lower this morning. On deck this afternoon we have MSFT MSFT is likely to see a $4 -$5 move off of their earnings results. Overnight in Asia the markets were mixed. The Hang Sang index closed lower on the lack of a stimulus plan. Media reports that China is preparing to replace Carrie Lam as the city leader. China closed lower 0.43 while Tokyo markets gained on positive trade relations and earnings news. European markets are lower this morning due to uncertainty on the Bexist timeline.

S&P’s this morning        High 299.22 Low  298.24 Change lower by 0.10%.

Tokyo +76.48    Hong Kong -219.47          London -26.93        Germany -2.42


OIL PRICES: Oil prices are trading lower this morning. Yesterday, it was reported that OPEC and its members will be considering deeper production cuts in their December meeting. With demand slowing, additional production cuts by OPEC are needed to stabilize oil prices. This news event push oil prices higher until the American Petroleum Institute reported its stockpiles estimates yesterday afternoon. Their report indicated a larger than expected build of 4.45 million barrels. Later this morning the official data will be released from the Energy Information Administration.

WTI is at $53.95 a barrel, Brent Crude is at $59.23 a barrel.         

For news on oil type in .OIL or “OPEC” into NewsWare


Economic:    The main economic story today continues to be Brexit. While British lawmakers approved the Boris Johnson’s Brexit plan, it was done with conditions. While the plan was approved, the time table was not. Creating uncertainty around how and when Brexit will occur. Yesterday, China’s Vice Foreign Minister Le Yucheng said that China and the U.S. had achieved some progress in their trade talks and that there is no disagreement that can not be resolved as long as both sides respect each other.


Economic Reports:
At 09:00 am ET FHFA House Price Index.
At 10:30 am ET Energy Information Administration’s Petroleum status report.

Fed Speak:
At 01:00 pm ET Dallas Fed Bank President Robert Kaplan

To access Economic news type .Economic into NewsWare.

Options Activity:

Bullish option activity in BSX, CLF & MSFT
Bearish option activity in CAT, IRBT & WHR
To access news related to options type .OPTIONS into NewsWare

Sector Update: Headlines to Note

Retail
TSCO .REC Baird lowers its price target to $120 from $125.
KSS .REC Evercore downgrades the stock to In Line from outperform.
ULTA .REC Cowen lowers its price target to $300 from $313


FDA / Drug Markets
BIIB .REC Guggenheim upgrade to Buy, sees a 50% chance of Alzheimer’s drug approval.
LLY .ERN Beat on EPS, miss on Revenue. Guidance for FY19 was raised.
NVS P/SGN Asthma drug fevipiprant failed in two phase 3 trials the company announced.

Dow 30
WBA .REC JP Morgan downgrades to Neutral from overweight. PT lowered to $63 from $73.
CAT .ERN Miss on EPS & Revenue – Company also lowered its FY19 guidance.
NKE CEO CEO Mark Parker to step down at the end of the year.

FANG
GOOG P/SGN Announces a significant breakthrough in quantum computing.
AAPL .REC Morgan Stanley raises its price target to $289 from $247.
AMZN .ERN Straddle being priced for a $57 move when earnings are announced on Thursday.

Rumors
SPY P/SGN Trumps said to be coordinating a msg strategy on impeachment probe.
SRPT .ERN Earnings expected this afternoon, straddle is priced for an $8 move.
HSY .ERN Straddle is priced for a $6.50 when earnings are released tomorrow morning


Earnings and Options Indications:


As always, please use protective buy and sell stops when trading futures and options.

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