NewsWare Morning Highlights

Commentary, News

MORNING NOTES:

S&P’s this morning High 312.27 Low 309.99 Change lower by 0.47%.

Tokyo -149.69 Hong Kong -53.42 London -84.45 Germany +65.70

Futures indicate a lower opening this morning. S&P futures have been weaken all morning and are currently down by 0.35%. The market is attempting to price in the latest trade talk developments. President Trump says that he might be willing to wait to strike a trade deal with China until after the US elections next year. Asian stocks fell broadly on Tuesday due to weak U.S. manufacturing data and worries that the U.S. could re-escalate trade tensions with China. The Shanghai Composite index closed higher by 8.89 points, or 0.31 percent, at 2,884.70. Hong Kong’s Hang Seng index fell 0.2 percent after a government report showed the country’s retail sales fell for the ninth straight month in October. European market are trading higher this morning as they appear to be recovering some of the ground lost in the prior session.

OIL PRICES: Oil prices are trading higher this morning. Oil traders are closely monitoring the event surrounding this week OPEC meeting. Today the Joint Technical Committee is scheduled to meet. The JTC reviews the state of the oil market ahead of the Thursday/Friday OPEC meeting. It is widely expected that OPEC and its allies will continue with its current production curbs. The group has pledged to trim a combined 1.2 million barrels through March of 2020. The current agreement is scheduled to end in March and an extension of the agreement appears likely. Estimates indicate that OPEC’s compliance stood at 147% in October. While additional production cuts are a possibility, at this time it appears that OPEC will be looking for its members to adhere to the agreed upon production curbs rather than attempting to lower output.

WTI is at $56.33 a barrel, Brent Crude is at $61.24 a barrel.         

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

Economic: The White House proposed tariffs against $2.4 billion of French importsin response to the European nation’s new digital-services tax, which it said unfairly targets U.S. tech companies such as Apple and Alphabet’s Google. The threat to impose levies on French products came within hours of Mr. Trump saying he would revive tariffs on steel and aluminum imports from Brazil and Argentina. French Finance Minister Bruno Le Maire said the European Union would strike back against the U.S. if President Trump follows through on a plan to impose tariffs on French imports, in what could develop into trans-Atlantic tit-for-tat on trade. U.S. Trade Representative Robert Lighthizer said the U.S. action “sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on U.S. companies.”


Economic Reports: .
At 08:55 am ET Johnson Redbook on Retail Sales.
At 04:30 pm ET API weekly report on U.S stockpile estimates.

Fed Speak:
To access Economic news type .Economic into NewsWare.

Options Activity:
Bullish option activity in CVX, GD & XOM
Bearish option activity in GRUB, ROKU & WDAY
To access news related to options type .OPTIONS into NewsWare

Sector Update: Headlines to Note-
Retail:
LULU .REC UBS raised its price target to $230 from $210.
GES .CC 5-1 call put ratio headed into today’s Investors Day.
RH .ERN Earning due out after the bell tomorrow, priced for a $24 move.

FDA / Drug Makers:
BOLD .MA Agreed to be taken over by Astellas Pharma for $60 a share.
AXSM P/SGN It’s AXS-12 reboxetine met its primary endpoint in phase 2 trial.
QURE .REC Goldman initiated coverage, Buy recommendation and $98 price target.

Dow 30:
UNH .ERN Co says it sees FY20 adjusted EPS $16.25-$16.55, consensus $16.46
INTC .MA Said to be in advanced talks to buy Israel’s Habana Labs (est cost $1B).

FANG:
NFLX .REC Citi cuts rating to Neutral from buy, cuts price target to $325 from $410.
FB .REC Piper initiates coverage with Overweight rating and a $230 price target.
AMZN Hots.Fly Cyber Monday was single biggest shopping day in company history.

Rumors:
SPY P/SGN The House Intel Committee plans to release its Ukraine/Trump report today
CRM .ERN Earnings due out this afternoon. Priced for a $7.2 move.
MRVL .ERN Earnings due out this afternoon. Priced for a $1.60 move.


Upcoming Earnings Expected dollar move


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