MORNING NOTES:
S&P’s this morning High 314.76 Low 314.30 Change lower by 0.08%.
Tokyo +76.30 Hong Kong -3.64 London -7.94 Germany -23.66
Futures are slightly lower this morning.Futures are indicating a lower start to the week as the market are preparing for a wave of policy updates from global central banks and new developments in U.S. and China trade negotiations. Sunday is the Trump Administrations deadline for new tariffs to roll in. Asian stocks ended mostly higher on Monday, although the upside remained limited on concerns about an escalation in the U.S.-China trade warafter top White House economic adviser Larry Kudlow said that a Dec. 15 deadline is still in place to impose a new round of U.S. tariffs on Chinese consumer goods. Chinese shares ended little changed with a positive bias after the release of November trade data. Hong Kong shares finished marginally lower. China’s exports shrank for the fourth consecutive month in November, although imports came in better than expected, suggesting that Beijing’s stimulus efforts are working. European stocks edged lower on Monday, with weak exports data from China and lingering U.S.-China trade worries keeping investors nervous. French Finance Minister Le Maire said that France was ready to challenge U.S. President Trump’s tariffs threat at the World Trade Organization (WTO). Also, caution prevailed ahead of key developments this week, including the Federal Reserve’s latest interest rate decision, new ECB boss Christine Lagarde’s first policy meeting and the U.K. general election.
OIL PRICES: Oil prices are lower this morning as weak exports data from China and lingering U.S.-China trade worries spurred fresh concerns regarding fuel demand. On Friday, OPEC + Russia agreed to additional production cuts. The new agreement calls for an additional reduction of 500,000 barrels daily through March 2020. There is concern that this new target may not be achievable as a number of OPEC members have not been in compliance with the current level of production curbs. Saudi Arabia’s Aramco IPO priced is priced at the high end of the targeted range to give the oil giant a total value of $1.7 trillion making it the world’s biggest-ever IPO.
WTI is at $58.55 a barrel, Brent Crude is at $63.63 a barrel.
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Economic: The U.K. election and some big central bank meetings will be in focus this week. The Federal Reserve’s FOMC committee meets this week to discuss monetary policy. No change in interest rates is expected. The CME’s Fed-watch tool indicates the odds of no change in interest rates decision to be at 99.3%. The European Central Bank will meet on Thursday. There are little expectations that the ECB will make any changes in monetary policy and will likely allow more time for the September stimulus measures to work its way into the European economy. German exports grew 1.2 percent on a monthly basis inOctober, expectations were for a decline of 0.3 percent.
Economic Reports: .
Fed Speak:
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Options Activity:
Bullish option activity in IMMU, SFIX & ZNGA
Bearish option activity in CASY, CIEN & COST
To access news related to options type .OPTIONS into NewsWare
Sector Update: Headlines to Note-
Retail:
CONN .ERN Earnings to be released Tuesday morning, priced for a $2.60 move.
ORLY .REC Goldman downgrades the stock to Neutral from buy with a $479 price target.
PLAY .ERN Earnings out Tuesday after the bell, priced for a $4.40 move.
FDA/Drug Makers:
BLUE P/SGN Released new data from its phase1/2 study of LeniGlobin gene therapy.
ARQL .MA Merck to acquire the company for $20 a share.
FATE .REC Wells Fargo upgrades to Outperform from market perform with a $24 price target.
DOW 30:
HD .CC Analysts day is Wednesday Dec 11th
MMM .REC Citi downgrades the stock to Neutral from Buy with a $180 price target.
CVX .REC Citi downgrades the stock to Neutral fro Buy with a $120 price target.
FANG:
AMZN Peri.Fly AMZN will continue to support and work with Dept of Defense on contracts.
AAPL P/SGN China orders state offices to replace foreign software.
AMZN Peri.Fly Said to have signed a lease space in Midtown Manhattan for 335,000 sq ft.
Rumors:
SPY P.SGN House Judiciary Committee may vote this week on articles of impeachment
MDB .ERN To release earnings after the close, expected to move $13 after eps is announced
SFIX P/SGN To release earnings after the close, expected to move $4.40 after eps is announced
Upcoming Earnings Expected dollar move option volumes from 12/6
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