NewsWare Morning Highlights

Commentary, News

MORNING NOTES:

S&P’s this morning        High 314.30 Low 313.50 Change higher by 0.18%.
Tokyo -18.33  Hong Kong +208.81    London -3.12   Germany +58.59Futures are moving higher this morning on anticipation of positive announcement from the Federal Reserve and on the U.S. China trade talks. U.S. and Chinese trade negotiators are laying the groundwork for a delay of a round of tariffs set to kick in on Dec. 15, as they haggle over how to get Beijing to commit to the purchases of U.S. farm products on which President Trump is insisting. Asian stocks ended mostly higher on Wednesday after the Wall Street Journal reported that U.S. and Chinese trade negotiators are laying the groundwork for a delay of a fresh round of tariffs set to kick in on Dec. 15. Chinese shares ticked higher as investors hoped for a delay in U.S. tariffs and new loan growth data for November topped forecasts. The benchmark Shanghai Composite index gained 0.24 percent to end at 2,924.42 European markets are cautious ahead of a busy few days as the U.S. and European central banks hold policy meetings that will provide fresh assessments of key economic indicators, as well as a general election in the U.K. that could prove to be a turning point for Brexit. British Prime Minister Boris Johnson is expected to win only a modest majority in Thursday’s vote
OIL PRICES: Oil prices are trading lower this morning. The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 1.4 million barrels for the week ended Dec. 6 to 447 million, while analysts were expecting a fall of 2.8 million barrels. Uncertainty ahead of the Sunday tariff deadline on Chinese imports is also weighing on oil prices. It’s being reported that the White House Administration is laying the groundwork to delay the tariffs that are due to take effect on Sunday. However, White House economic adviser Larry Kudlow said the “tariffs are still on the table”. The Saudi Aramco IPO gained 10% on its first day of trading. OPEC’s monthly market report and weekly EIA data are due out later Wednesday while the IEA’s report comes out Thursday.

WTI is at $58.96 a barrel, Brent Crude is at $63.92 a barrel.         
For news on oil type in .OIL or “OPEC” into

NewsWareEconomic:  Federal Reserve officials are likely to hold their benchmark interestrate steady after their two-day meeting concludes Wednesday and aren’t expected to make notable changes to their wait-and-see posture on more rate reductions. The market is likely to react to the Fed’s policy statement that is due out at 2:00 pm ET. Traders will be looking for clues to the future path of interest rates in the policy statement. Fed Chairman Powell has indicated there is a very high bar for the Fed to reverse any of its recent rate cuts by raising rates, and officials have indicated that they still see risks of weaker-than-expected growth in the months ahead. This means that while officials are comfortable leaving rates on hold, they are still more likely to cut than raise them. He could provide an update on steps officials have taken to address the liquidity issues that currently exist in the Repo markets. The minutes from the Fed’s late October Federal Open Market Committee meeting showed officials were mulling two strategies to keep short-term rates in line with central bank goals. One was to continue to use temporary operations when needed, and the other was to adopt a new facility that would allow financial firms to convert Treasurys into reserves at the Fed, which proponents hope would cap on short-term rate volatility.

Economic Reports: .
At 08:30 am ET Consumer Price Index Report
At 10:00 am ET Quarterly Services Survey, Atlanta Fed Business Inflation Expectations.
At 10:30 am ET EIA report on crude oil stockpiles
At 02:30 pm ET FOMC Meeting Announcement

Fed Speak:
At 02:30 pm ET Jerome Powell Press Conference.

To access Economic news type .Economic into NewsWare.

Options Activity:
Bullish option activity in AEO, EVH & NOLK
Bearish option activity in ADBE, ITCI & LK
To access news related to options type .OPTIONS into NewsWare

Sector Update: Headlines to Note-
Retail:
LULU .ERN Earnings to be released today after the bell , priced for an $16.25 move.
HD .ERN HD forecasts fiscal 202 same store sales growth below estimates.
COST .ERN Earnings out Thursday after the bell, priced for a $9.50 move.

FDA/Drug Makers:
PTI P/SGN To initiate 1st ever personalized medicine-based clinical trial.
CORV P/SGN Announced plans to explore strategic alternatives after FDA rejected Brinavess.
XBIT .REC Piper raises price target to $28 from $16.

DOW 30:
CVX P/SGN Taking a $10-$11b write down on its natural gas division.
UNH .REC Wells Fargo raised its price target to $335 from $318.
XOM P/SGN Cleared of fraud charge related to misleading investors in NY court.

FANG:
AMZN P/SGN Stake in Deliveroo raises competition concerns attracting UK regulators.
NFLX .REC Piper is positive on NFLX, sees growth in both domestic and Intl markets.
FB P/SGN AG Barr would like to conclude anti-trust probe into big tech companies in 2020.

Rumors:
SPY P.SGN China wants the Dec 15th tariffs canceled as a pre-condition for continued talks.
PLCE .ERN Down 15% in the pre-market after releasing weak guidance.
ORCL .ERN To release earnings Thur morning, expected to move $2.50 after eps.


Upcoming Earnings Expected dollar move option volumes from 12/9


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