NewsWare Morning Highlights

Commentary, News

MORNING NOTES:

S&P’s this morning High 315.19 Low 314.99 Change higher by 0.24%.

Tokyo +32.95 Hong Kong +348.71 London +38.37 Germany +39.99

Futures are moving higher this morning. The U.S. central bank’s policy makers indicated that they believe interest rates are low enough to stimulate growth in the world’s largest economy, and left monetary policy unchanged on Wednesday. President Trump meets with his senior trade team in Washington today about planned Dec. 15 tariffs on nearly $160B in Chinese imports. Asian stocks ended mixed on Thursday as traders exercised caution ahead of a U.S.-China tariff deadline and the closely watched British election, with polls predicting a narrow Conservative win. Chinese shares ended lower to snap a five-day winning run ahead of Trump’s tariff decision. The benchmark Shanghai Composite index dropped 0.3 percent to 2,915.70 European stocks are slightly higher this morning as the market awaits a policy announcement by European Central Bank (ECB). This is Christine Lagarde first ECB meeting since taking over as president from Mario Draghi and it remains to be seen whether she will abandon the central bank’s ultra dovish stance. British voters head to the polls today and a Conservative Party majority is seen as the likely outcome. A Conservative majority is expected to lift the pound on greater political certainty and the prospect that the U.K. will leave the European Union smoothly


OIL PRICES: Oil prices are trading higher this morning. In a closely-watched oil-market report, the International Energy Administration (IEA) said it was trimming its 2020 non-OPEC oil supply growth forecast by 200,000 barrels a day to 2.1 million barrels. However, it still expects global inventories to build by 700,000 barrels a day in the first three months of next year. The IEA said it was reducing its production growth forecast “to take account of lower output from participants in the OPEC+ deal and a weaker growth outlook for Brazil, Ghana and the United States.” The IEA’s report came the day after OPEC released its own monthly market report, in which the cartel also held its demand growth forecasts for 2019 and 2020, while holding its non-OPEC supply growth forecast at 2.17 million barrels a day. The two reports also took relatively similar stances on global trade. Torpid economic growth, partly as a thanks to the trade war between the U.S. and China, has been cited as a drag on oil demand growth in numerous reports from the two organizations in 2019.

WTI is at $59.06 a barrel, Brent Crude is at $64.20 a barrel.         

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


Economic: The Federal Reserve held interest rates steady and signaledno appetite to raise them soon. After lowering rates at their three previous meetings to guard the U.S. economy from the effects of trade tensions and a global slowdown, Fed officials on Wednesday indicated comfort with leaving monetary policy on hold through next year while keeping an eye on those risks. “Our economic outlook remains a favorable one,” said Fed Chairman Jerome Powell. The rate-setting committee voted 10-0 to leave the central bank’sbenchmark rate in a range between 1.5% and 1.75%, the first unanimous vote since May. The markets will be monitoring the European Central Bank’s monetary-policy decision and Christine Lagarde’s first conference as president this morning. It is expected that Lagarde will “signal a ‘wait and see’ approach” to interest rates.


Economic Reports: .
At 08:30 am ET Jobless Claim & the PPI-FD

Fed Speak:

To access Economic news type .Economic into NewsWare.

Options Activity:
Bullish option activity in AMBA, LOGM & WMB
Bearish option activity in ADBE, LULU & NX
To access news related to options type .OPTIONS into NewsWare

Sector Update: Headlines to Note-
Retail:
LL .ERN Increased its full-year adj operating margin guidance to 2.1% to 2.4%
COST .ERN Earnings out Thursday after the bell, priced for a $9.70 move.
LULU .REC Brokers coming out mainly positive on the stock after eps announcement.

FDA/Drug Makers:
PBYI P/SGN Positive phase II effective rates to be presented at a conference today.
AMRX P/SGN Receives abbreviated New Drug Application approval for EluRyng
MRK P/SGN KEYTRUDA shows improved survival in analysis of lung cancer patients

DOW 30:
JPM P/SGN Plans to revamp its wealth management division.
WBA .MA Joint venture with McKesson combining pharm wholesale businesses in Ger.
CSCO .REC Cowen raises its price target to $165 from $155.

FANG:
AMZN P/SGN Said to be adjusting shipping rates for last min holiday season shoppers.
NFLX .REC Judge forbids NFLX from hiring executives under contracts.

Rumors:
SPY P.SGN White House to have ‘high-stakes’ meeting today on China tariffs.
ADBE .ERN To release earnings after the close, expected to move $10.50 after eps.
ADSK .REC JP Morgan downgrades the stock to Underweight from neutral, PT $175.


Upcoming Earnings Expected dollar move option volumes from 12/9


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