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Friday 12/20/2019
 
MORNING NOTES:      
S&P’s this morning        High 319.76 Low 319.33 Change lower by 0.10%.
 
Tokyo -48.22 Hong Kong +70.86     London +14.59 Germany -+66.46
 
S&P Futures are higher this morning. The S&P’s have reversed course and are now positive indicating a higher opening. Nike delivered a 12 cent beat, but missed on revenues last night. The anticipation of positive results from the multiple economic reports due out today is providing fuel for the equity markets this morning. Asian stocks ended mixed in thin-pre-Christmas trading on Friday. Underlying sentiment remained positive after China unveiled a new list of import tariff exemptions for six chemical and oil products from the United States and U.S. Treasury Secretary Steven Mnuchin said the two sides would sign their so-called Phase one trade pact at the beginning of January. The benchmark Shanghai Composite index dropped 0.40 percent to 3,004.94 European stocks are trading higher this morning as Mnuchin’s comments are seen as a positive for global economic growth. The FTSE is little changed ahead of a parliamentary vote on the Brexit deal later today.
 
OIL PRICES:
Oil prices are slightly lower this morning. After six straight days of gains, oil prices displaying weakness in pre-market trading. Year-end profit taking is occurring as oil traders start to removing risk. The trend continues to be positive as increased OPEC production cuts and the U.S China trade deal is a positive for the global economy. Two of the major brokerage firms increased their price targets for oil prices this week which is an indication that oil prices are unlikely to significantly pullback in the near term. Inventory data would need to start to show increasing in stockpile figures for a significant move lower to occur. The Baker-Hughes will be releasing their rig count totals today at 1 pm.
 
WTI is at $61.01 a barrel, Brent Crude is at $66.41 a barrel.        
 For news on oil type in .OIL or “OPEC” into NewsWare
Economic:    
 
There are a number of economic releases due out today. The economic calendar starts with the revised Q3 GDP report due out at 8:30 am ET, along with corporate profits. Personal income and outlays report
for October is due out at 10 am ET. That release includes the Federal
Reserve’s preferred measure of inflation, the PCE core index. Also, 10 am will be the release of the widely followed University of Michigan report on consumer sentiment., followed at 11 am by the Kansas City Fed manufacturing survey. The Bank of England Governor Mark Carney will be stepping down in March. He will be replaced by Andrew Bailey. Bailey is currently the chief executive officer of the Financial Conduct Authority.
 
 
Economic Reports: .
At 08:30 am ET GDP & Corporate Profits
At 10:00 am ET Consumer Sentiment
At 11:00 am ET Kansas City Fed Manufacturing index
At 01:00 pm ET Baker Hughes Rig Count
 
Fed Speak:  
            
To access Economic news type  .Economic into NewsWare.
 
 
Options Activity:                                                                            
Bullish option activity in   AMD, I & LK
Bearish option activity in  CCL, MAT & PLUG
To access news related to options type .OPTIONS into NewsWare
 
 
Sector Update: Headlines to Note-
 
Retail:
MIK     .REC    Morgan Stanley downgraded to Underweight with a $5 price target.
KMX    .ERN    Reported a 12 cent earnings miss on higher revenue.
BIG   .Options   Big Lots experience unusual call volumes yesterday.
 
FDA/Drug Makers:
LXRX    P/SGN    Reported positive data from its phase 3 trial.
IMMU    .REC      BofA initiates coverage with a Buy rating and a $26 price target.
ITCI      .Options   Implied volatility is elevated as it heads into its PUDFA date next week.
 
DOW 30:
CAR    .REC      JP Morgan raised its price target to $178 from $155.
MRK    P/SGN    Japan regulators approved MRK’s KEYTRUDA drug.
NKE     .REC       Morgan Stanley raised its price target to $119.
 
FANG:
AAPL    .REC      Piper raises its price target to $305 from $290.
GOOG   P/SGN   HIt with an EU fine and ordered to clarify their rules for suspending advertisers.
AAPL     .Rumor  Said to be working on a method to use satellites to beam data to devices.
 
Rumors:
SPY       P.SGN     The House also approved the amended North American trade pact.
GS        P/SGN    Said to be in talks with the U.S. government to settle the 1MDB probe.
BMY       P/SGN     Receives EU approval for Revlimid/rituximab combination.
 
 
Upcoming Earnings Expected dollar move and the expected dollar move.
Option volumes from 12/19.
 
 
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