NewsWare: Top Stories and Earnings update

Commentary, News
 
Monday 2/03/2020
 
MORNING NOTES:      
 
S&P’s this morning        High 327.05 Low 327.20 Change +1.03%
 
Tokyo +112.65  Hong Kong +319.00 London +105.44  Germany +172.27
 
S&P Futures are moving significantly higher this morning. Google reported a slight drop in revenue yesterday afternoon and is trading lower by 3.5% this morning. Last night solid bounce in China equities markets has created a global rally this morning. Coronavirus figures continue to climb for both deaths and infections. Later today we have earnings releases from DIS, GILD & SNAP.
 
 
Asian markets pushed higher overnight following the positive cues overnight from Wall Street and as the Chinese market rebounded after sharp losses in the previous session amid concerns about the rapid spread of the coronavirus as well as its impact on the global economy. Stimulus plans announced by China to support its economy has bolstered investor sentiment. The Shanghai Composite closed up 1.34% to 2783.29. Chinese health officials state that the coronavirus outbreak has killed 425 people and infected 20,438 people. Yesterday’s figures were 361 killed with 17,205 people infected.
 
European stocks rose sharply on Tuesday as a brutal sell-off in Chinese equities halted amid expectations that China would roll out more stimulus measures to provide liquidity to markets and boost consumption amid the deadly coronavirus outbreak. BP shares surged 4.5%, the oil giant’s best one-day rise in a year, as it raised its dividend and reported a narrower profit fall than many of its rivals.
 
 
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OIL PRICES:
Oil prices are trading slightly higher this morning as global equity markets rebounded amid new stimulus measures from China. China’s central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points on Monday as part of efforts to relieve pressure on the economy from a rapidly spreading coronavirus outbreak. Oil traders will be paying close attention to news out of Vienna where a quickly assembled OPEC technical meeting will take place ahead of an earlier-than-planned ministerial meeting next week. Sinopec–Asia’s largest refiner–is cutting throughput by 12%, or around 600 kb/d, in February in response to slowing Chinese oil demand.
 
WTI is at $50.74 a barrel, Brent Crude is at $54.77 a barrel.  
 
 For news on oil type in .OIL or “OPEC” into NewsWare
Economic:    
China’s central bank injected $71.21 billion worth of liquidity into the banking system earlier today via reverse repurchase agreements after offering a large amount of funds a day before. The Trump administration is going ahead with controversial new rules that would clear the way for the U.S. to start applying punitive tariffs on goods from countries accused of having undervalued currencies, the Commerce Department said yesterday. The Fed’s quarterly survey of senior loan officers found that a majority of banks expect to tighten standards almost across the board because of unexpected deterioration in the quality of those loans, meaning borrowers could be more likely to default.  Despite the tighter standards, banks said they expect demand for mortgages as well as for business and commercial real estate loans to remain broadly unchanged from 2019. Senate Banking Committee announces confirmation hearing for Federal Reserve nominees Judy Shelton, Christopher Waller for Feb. 13.
 
 
Economic Reports: 
 
At 08:55 am ET Redbook on Retail Sales
At 10:00 am ET Factory Orders
 
 
Fed Speak:  
 
To access Economic news type  .Economic into NewsWare.
 
 
Options Activity:                                                                            
Bullish option activity in GDOT, GILD & ZM
Bearish option activity in AINV, NCLH & ON
To access news related to options type .OPTIONS into NewsWare
 
 
Sector Update: Headlines to Note-
 
Retail:
BOOT  .ERN   To release earnings after the close, a move of $3.40 is expected.
ORLY   .ERN   To release earnings tomorrow after the close, a move of $16.75 is expected.
YUMC  .ERN   To release earnings Thursday after the close, a move of $2.78 is expected.
 
 
FDA/Drug Makers:
GILD     .ERN   To release earnings after the close, a move of $3.25 is expected.
STAA  P/SGN   Announced that a clinical trial is underway for the EVO Implantable lens.
INSM     .REC   Goldman raises its price target to $46 from $33.
 
DOW 30:
MRK   .ERN     Earnings due out tomorrow morning, a move of $2.40 is expected.
DIS    .ERN     Earnings due today after the close, stock is priced for a $8.50 move.
AAPL P/SGN    Apple suppliers see restarting China production Feb. 10
 
Rumors:
SPY    P/SGN    China is said to be seeking some flexibility on Phase 1 trade pledges.
WYNN P/SGN    Weakness continues as Macau shuts casinos for 15 days.
MTCH    .ERN    Earnings due out after the bell, stock is priced for a $8.50 move.
 
 
 
 
Earnings Announcements and Options Analysis: Volumes from yesterday.
 
 
 
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