MORNING NOTES:
Futures are indicating a lower opening today. The FOMC is meeting today with a policy statement due out tomorrow afternoon. A rate cut is already priced into the markets. GOOG’s earnings disappointed traders overnight as there EPS came in lighter than expected. Overnight in Asia the markets were mixed as they are paying close attention to the Feds decision on interest rates. China closed lower by 0.87. European markets are mainly negative this morning.
S&P’s this morning High 303.43 Low 302.80 Change lower by 0.11%.
Tokyo +106.86 Hong Kong -104.50 London -48.86 Germany -12.35
OIL PRICES: Oil prices are trading lower this morning. Growth in the U.S. oil production will be a large driver in determining the scope of production cuts by OPEC and Russia. The December meeting is the last scheduled OPEC meeting prior to the expiration of the currently agreed upon production curbs. OPEC and Russia are likely to agree on additional production curbs to prop up oil prices. Later this afternoon, the American Petroleum Institute will be releasing its weekly stockpile estimates.
WTI is at $55.36 a barrel, Brent Crude is at $61.22 a barrel.
For news on oil type in .OIL or “OPEC” into NewsWare
Economic: The FOMC meeting begins today. An announcement on the Fed’s monetary policy is due out on Wednesday at 2:00 pm ET. The odd’s of a 25 basis point cut are currently at 96.2%. The key will be in the language used by the Fed in their policy statement. Wednesdays statement is likely to appear hawkish with little indication of addition rate cuts on the horizon. British parliament rejected a plan by Prime Minister Boris Johnson to organize a snap election, adding an additional layer of uncertainty surrounding the economic outlook.
Economic Reports:
At 08:55 am ET Redbook Retail sales report.
At 09:00 am ET Case Schiller Home Price Index.
At 10:00 am ET Consumer Confidence, Pending Home Sales Index.
To access Economic news type .Economic into NewsWare.
Options Activity:
Bullish option activity in GNRC, NXPI & PFE
Bearish option activity in GRUB, MAT & RH
To access news related to options type .OPTIONS into NewsWare
Sector Update: Headlines to Note
Retail
TIF .MA HSBC & Oppenheimer downgrade Morgan Stanley upgrade
PAG .ERN Reports a beat on EPS and Revenue this morning
AN .ERN Reports a beat on EPS and Revenue this morning.
FDA / Drug Markets
VLRX P/SGN Presented positive Apomophine study data at World Congress of Neuology.
MRK .ERN EPS and Revenue beat raised FY19 guidance.
PFE .ERN EPS and Revenue beat raised FY19 guidance.
Dow 30
AAPL .ERN Straddle is priced for an $11 move when earnings are released on Wednesday.
TRV .REC Credit Suisse lowers its price target to $126 from $141
VZ P/SGN Yahoo has entered into an agreement with MGM for sports betting
FANG
GOOG .REC Oppenheimer raises its price target to $1530 from $1370
FB .ERN Straddle is priced for an $11 move when earnings are released tomorrow.
AMZN P/SGN To make grocery service delivery free for Prime members.
Rumors
SPY P/SGN House to vote on impeachment procedures later this week.
SBUX .ERN Straddle is priced for an $4.20 move when earnings are released tomorrow.
WDC .ERN Straddle is priced for a $5.00 move when earnings are released tomorrow.
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