MORNING NOTES:  

S&P futures are lower this morning.  Futures are reacting to the U.S China trade talks. China came out this morning indicating that they are reluctant to resume trade talks with the Trump Administration. Asian stock markets were mixed Friday, The Tokyo market are gaining on news that their central will keep rates steady.  Hong Kong opened higher but closed lower based on the trade talk developments. European markets are moving lower this morning. Auto sector is weak due to possible auto tariff’s in Germany. IN the U.K., Brexit discussion are stalled as the opposition leader says Theresa May is too weak to guarantee any deal.

S&P’s Overnight          High  287.04          Low   285.98     % Change lower by 0.45

Asian MarketsCloseChange% Change EuroLastChange% Change
Tokyo21250.09187.110.89 London  7312.47   -41.04-0.56
Hong Kong27946.46-328.61-1.16 Germany12161.04   -149.33-0.77

Oil Prices:

Oil prices are higher this morning.  Oil trading has seen increased volatile lately. Concerns on global supplies and demand are creating a sense of uncertainty which leads to elevated volatility. Tensions in the Middle East continue to grow. A Saudi led coalition, bombed area held Iranian back rebels in Yemen on Thursday. This weekend a group of OPEC members aligned with Saudi Arabia are hold a summit. President Trump has indicated that he does not want a war with Iran, however there are indications that a conflict is possible. Recently the U.S. has started a military build up in the Persian Gulf region. The New York Times reported that the White House is reviewing plans to send 120,000 U.S. troop to the Middle East. Yesterday, the president issued an order that all nonessential government staff are to leave Iraq immediately. Later today, Baker Hughes will be releasing their rig count figures.

WTI is at $63.37 a barrel, Brent Crude is at $73.01 a barrel.     

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

 Economic:                         

Federal Reserve officials expected inflation to run at a 2% rate this year. In her speech yesterday Fed governor Lael Brainard said the central bank should be prepared to allow inflation to run modestly above 2% without raising interest rates to more credibly demonstrate its commitment to the goal.  The market is has priced in a quarter point rate reduction later in the 2019. Fed Speak:  At 10:00 am Federal Reserve Board of Governors Vice Chairman Richard Clarida will be speaking in New Jersey. At 11:15 am ET New York Federal Reserve Bank President John Williams is to attend a meeting in NYC. At 1:40 pm ET FederalReserve Board of Governors Vice Chairman Richard Clarida is to give a speech on “The Federal Reserve’s reviewof Its Monetary Policy Strategy, Tools, and Communication Practices” in Philadelphia. At 3:00 pm New York Federal Reserve Bank President John Williams is schedule to speak ant another event in NY. Economic Reports: At 10:00 am ET  Mid-month reading of Consumer Sentiment, E-Commerce Retail Sales and Leading Indicators are due out. At 1:00 pm ET Baker Hughes Rig Count figures.

  To access Economic news type   .Economic into NewsWare.

Options Activity:                                                                      

Bullish option activity in               HOME,  MOS &  Z

Bearish option activity in             CWH, IQ & UBER

To access news related to options type  .OPTIONS into NewsWare

Sector Update:

Retail   

FL           .REC     Barclays said to be an aggressive buyer into their Q1 earnings release.

CWH       .REC     Keybanc downgraded the stock to Sector weight from overweight with a $23 pt.

M           .REC      UBS raised its price target to $25 from $23.     

Drug Makers:

AGRX        P/SGN       Resubmitted in new drug application to the FDA for Twirla.

JNJ           P/SGN       FBI is investigating alleged illegal payoffs to the Brazilian government.

SOLY         P/SGN        FDA said their application by be converted to a De Novo process.

Dow 30:

MMM         .REC       JP Morgan lowers its price target to $143 from $154.

BA          Peri.Fly     Singapore Airlines CEO says their order for 31,  737 planes will continue.

HD            .ERN       Straddle is price for a $6.72 move when earnings are announced on Tues.

FANG:

AAPL      .REC          Nomura lowers its price target to $175 from $180.

GOOG     Peri.Fly     Italy is launching a probe in the company for alleged antitrust abuse.

FB          Peri.Fly     Said to be saturated with fraudulent accts impersonating tech executives.

Rumor:

SPY      .Rumor      China is likely to respond to Trumps foreign telcomm ban in a significant way.

CRAY    .MA           Announced that they will be acquired by HPE for $35 a share.

PRRR    .MA           BRX said to be acquiring PRRR for $18.81 a share.

Upcoming Earnings Releases and Expected move:

SymbolEarn Datea/pStradl pct$ MoveTotal Call / Put RatioDateCall VolumPut Volumvol Call / Put  RatioCall Open IntPut Open IntOI Call / Put  Ratio
AZO20190521am5.8657.540.605/251541271.217959610.83
EV20190521am3.151.210.036/220760.0063551.15
HD20190521am3.406.542.345/25255814241.80802282590.97
KSS20190521am8.065.141.525/2514065152.735937146380.41
TOL20190521am6.062.361.475/252772571.088669440.92
CRMT20190521pm2.632.597.696/2229129.001011011.00
JWN20190521pm9.103.361.925/251101550.711183104180.11
URBN20190521pm9.092.432.085/25586314440.721667382242.03
AAP20190522am0.631.000.336/226141524.04250242600.59
ADI20190522am5.095.330.265/253927280.54122615420.80
LOW20190522am5.475.941.575/25125012800.98303332430.94
TGT20190522am5.623.980.635/25259851700.5011777100491.17
TTM20190522am7.820.990.515/2513550.24340816092.12
VFC20190522am6.485.923.835/252832212.86322835270.92
CTRP20190522pm8.543.310.615/25761330.5729589513.11
HTHT20190522pm8.813.143.456/221352.6012617491.68
KHC20190522pm3.671.191.215/25170318670.9156709488871.16
LB20190522pm9.902.210.145/25139320820.67638635081.82
NTAP20190522pm7.064.921.015/252152091.037708970.86
VIPS20190522pm11.871.002.695/25197306.57125525400.49

*Information displayed above is for informational purposes only. Trading involves the risk of capital and we are not making any predictions on future events or movements in equity prices.  All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is not indicative of future price action.


As always, please use protective buy and sell stops when trading futures and options.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

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