10/26/2018 Morning Brief

Economic

Federal Reserve Vice Chairman Richard Clarida endorsed the central bank's plans to gradually raise interest rates and pinpointed the behavior of inflation as key to deciding when to stop Today’s Economic Reports: At 8:30 am ET The first estimate for third-quarter GDP is schedule to be released. At 10:00 am ET Consumer Sentiment numbers will be released. At 1:00 pm ET The Baker Hughes rig count figures.

Equity markets –

S&P futures are trading lower this morning, (-1.73%)

Asian markets closed lower last night.

Close Change %Change

Nikkei Stock 21184.60 -84.13 -0.40

Hang Seng 24717.63 -276.83 -1.11

European indices are lower this morning this morning.

Last Change %Change

FTSE 100 6925.77 -78.33 -1.12

Xetra DAX 11139.30 -167.82 -1.48
* U.S. stocks were poised for another round of selling Friday, with futures pointing to a lower start for the final session of a week marked by volatility that has pushed the major indexes in and out of negative territory for the year.

Oil Prices

Oil prices are trading lower this morning. Crude oil prices have weakened heading into the end of the year, defying expectations of near $100 per barrel just a few weeks ago as the US moved to re-impose hard financial sanctions on OPEC member Iran. Yesterday Saudi Arabia’s OPEC governor said "The market in the fourth quarter could be shifting towards an oversupply situation as evidenced by rising inventories over the past few weeks,” In addition he mentioned that there could be a need for intervention to reduce oil stockpiles after increases in recent months. Traders are looking ahead to weekly data from Baker Hughes on the number of rigs drilling for oil in the U.S. WTI is currently trading at $66.33 a barrel and Brent Crude is at $76.01 a barrel.

Option Activity -

Bullish option activity in HLT, NVS & TEN

Bearish option activity in KHC, MDR & CMG

Upcoming Earnings

Ticker Company When Reporting (tentative)

LL Lumber Liquidators Tuesday am

BAH Booz Allen Holdings Tuesday am

MDLZ Mondelez inc. Tuesday pm

PZZA Papa Johns Tuesday pm

For earnings related news type .ERN into NewsWare

Sector Update:

Retail

ORLY RBC raises its price target to $372 from $368.

TSCO Wedbush raises its taget price to $100 from $80.

AAP Added to Best Ideas list at Wedbush.

Drug Makers

GILD Piper lowers its price target to $75 from $85. Drops rating to Neutral from Overweight.

BMRN Morgan Stanley raises its price target to $120 from $115.

MYOV Goldman initiaes coverage with a Neutral rating and a $35 price target.

FANG

AMZN JP Morgan lowers its price target to $2100 from $2200.

GOOG Multiple brokers feel the stock is undervalued at these levels.

FB Straddle indicated an 8% move going into earnings.

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Dow 30:

INTC Susquehanna raises its price target to $58 from $54.

BA Bernstein raises its price target to $440 from $426.

CVX In talks to by Petrobras’s Texas refinery.

RUMOR:

MLNX Said to have hired an advisor for a potential sale.

CORI Gurnet Point launches tender offer for all outstanding shares.

SPY SEC to hold discussions on Market Data and Market Access.

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