NewsWare: Top Stories and Earnings Update

Commentary, earnings, News
 
Wednesday 1/29/2020
 
MORNING NOTES:      
 
S&P’s this morning        High 328.28 Low 327.56 Change +0.44%
 
Tokyo +163.69  Hong Kong -789.01 London +6.31  Germany +23.93
 
S&P Futures are trading higher this morning. Markets are reacting positively to earnings reports form AAPL, GE, GD & MA. BA plans to sell a division Stanley Tool Works has caused the stock to move higher. Later this afternoon the FOMC will be releasing their statement on Monetary Policy.
Asian Markets are mostly higher on Wednesday with modest gains following the overnight rebound on Wall Street. In Hong Kong, their markets opened for the first time since the Lunar New Year holidays began, the Hang Seng Index closed down 2.8% as traders weighed the impact of the fast-spreading coronavirus outbreak in China. According to Chinese health officials, the coronavirus outbreak has killed 132 people and infected 5,974 people.
European stocks continue to be concerned about the economic impact of the coronavirus outbreak, However, the release of consumer confidence reports is pushing their markers higher this morning. The forward-looking GfK consumer confidence index for February rose to 9.9 points from 9.7 in January. The French consumer confidence strengthened in January as well. U.K. house prices increased 1.9 percent year-on-year in January, following a 1.4 percent rise in December.
 
 
OIL PRICES:
Oil prices are trading higher this morning. Estimate data from industry group the American Petroleum Institute released yesterday displayed a drop in U.S. oil inventories by 4.3 million barrels for the week ended Jan.24. Later this morning the official data will be released by the Energy Information Administration. OPEC sources are indicating that the cartel is looking to extend oil output cuts until at least June from March, with the possibility of deeper reductions on the table if oil demand in China is significantly impacted by the coronavirus outbreak. Production concerns in Libya and signs of a slowdown in U.S. oil production are factors to keep aware of.
 
WTI is at $53.97 a barrel, Brent Crude is at $60.08 a barrel.     
 For news on oil type in .OIL or “OPEC” into NewsWare
Economic:    
The Fed is widely expected to hold interest rates stable when it
concludes its latest round of policy meetings this evening, traders will be watching for fresh cues on how the U.S. central bank controls
short-term rates challenges. Policymakers may be looking to unwind a program that began last year when the Fed flooded markets with cash to avoid volatility in the overnight lending rates. The Fed releases its policy statement at 2 p.m. ET, and Fed Chairman Jerome Powell will deliver a longer statement and answer questions from reporters starting at 2:30 p.m. With four new voting members on the committee, the press conference may provide clues as to this year’s monetary policy decisions. Expectations are for the Fed to hold interest rates steady and maintain a reactionary, wait-and-see policy. It is expected that they will address the short term lending issue and to make a statement that they are ready to react to any significant geopolitical issues that may occur this year,
 
 
 
Economic Reports: 
At 08:30 am ET International Trade in Goods., Adv Retail Sales & Wholesale inventories.
At 10:00 am ET Pending Home Sales & the State Street Consumer Confidence index.
At 10:30 am ET EIA Petroleum Status report
At 02:00 pm ET FOMC Policy Statement.
At 02:30 pm ET Fed Chair’s Jerome Powell’s press conference.
 
 
Fed Speak:  
 
To access Economic news type  .Economic into NewsWare.
 
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Options Activity:                                                                            
Bullish option activity in   APT, LAKE & LVS
Bearish option activity in  LOPE OSK & WYNN
To access news related to options type .OPTIONS into NewsWare
 
 
Sector Update: Headlines to Note-
 
Retail:
LB        .MA    Exploring Strategic Options for its Victoria Secrets chain.
SBUX   .REC  J P Morgan says the stock should be bought on weakness.
AMZN  .ERN   Earnings due Thur afternoon, stock is priced for a $24.00 move.
 
FDA/Drug Makers:
HOTH  P/SGN Plans on exercising licensing option for dermatological diseases.
SRNE  P/SGN  To initiate natural cell killer therapy development for cotonavirus.
TEVA   P/SGN   FDA Approved Autoinjector Device For AJOVY Injection.
 
DOW 30:
MSFT  .ERN   Earnings due after the bell, stock is priced for a $5.60 move.
AAPL  .REC    JP Morgan raised its price target to $350 from $300.
KO      .ERN    Earning due Thur morning, stock is priced for a $1.50 move.
 
Rumors:
SPY    P/SGN   White House considers suspending flights from China to U.S.
TSLA     .ERN   Earnings due out after the bell stock is priced for a 65.00 move.
FB        .ERN    Earnings due out today, stock is priced for a 9.95 move.
 
 
Earnings Announcements and Options Analysis

 

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