10/29/2018 Morning Brief

Economic

In the past six months the U.S. economy has shown very strong economic growth. Few believe a recession is near, and that the expansion is widely expected to continue, but at a slower pace. Rate hikes by the Fed have helped to cool the economy. Interest rate-sensitive sectors are already showing signs of concern. Homebuilding has contracted in five of the past six quarters. Fed Speak: Chicago Federal Reserve Bank President Charles Evans to speak in Chicago at 9:45 am ET. Today’s Economic Reports: At 8:30 am ET Personal Income & Outlays. 10:30 am ET Dallas Fed Manufacturing survey.

Equity markets –

S&P futures are trading Higher this morning, (+1.41%)

Asian markets closed mixed last night.

Close Change %Change

Nikkei Stock 21149.80 -34.80 -0.16

Hang Seng 24812.04 94.41 0.38

European indices are higher this morning this morning.

Last Change %Change

FTSE 100 7074.76 135.20 1.95

Xetra DAX 11410.32 209.70 1.87

* U.S. stocks were poised for rebound today as traders awaited a flurry of corporate earnings as well as a reading on US
consumer prices.

Oil Prices

Oil prices are trading lower this morning. Oil markets have turned range-bound after its recent slide as traders weigh whether Saudi Arabia and OPEC allies will be able to offset supply losses anticipated from Iran due to US sanctions. With just days to go before renewed sanctions take effect, three of Iran's top five customers - India, China and Turkey - are resisting Washington's call to end purchases outright, arguing there are not sufficient supplies worldwide to replace them. Iran has started selling crude to private companies via a domestic exchange for the first time, the Oil Ministry's news website reported. WTI is currently trading at $67.33 a barrel and Brent Crude is at $77.31 a barrel.

Option Activity -

Bullish option activity in MYL, NE & QCOM

Bearish option activity in DB, HSBC & STZ

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

CNGX Cognex Corp 8.61 $3.55 Monday afternoon

EGHT 8x8 Inc 12.08 $2.01 Monday afternoon

KLAC KLA-Tencor 7.86 $6.86 Monday Afternoon

MA Mastercard 0.84 $1.67 Tuesday Morning

For earnings related news type .ERN into NewsWare

Fri Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

CNGX 218 27 2845 1913

EGHT 69 17 5139 307

KLAC 326 158 1727 1453

MA 6293 2105 15405 8276

Sector Update:

Retail

WMT Cowen raises its price target to $120 from $115.

GNC Buckingham initiates coverage with a Buy recommendation and a $6.00 price target.

KR Reaffirms FY18 adjusted EPS view $2.00-$2.15, consensus $2.12

Drug Makers

PTI Piper initiated coverage with an Overweight rating and a $14 price target.

RARE Credit Suisse cuts its target price to $59 from $79.

SNDX Morgan Stanley downgrades the stock to Equal Weight and lowers its price target to $6 from $24.

FANG

AAPL On Tuesday it is expected that they will announce a larger IPad Pro, new laptop and a new mac mini.

AAPL BofA lowers is Dec I-Phones projections to account for a slow-down changes in currency valuations.

FB WJS reports that FB & GOOG may face billions in new taxes in Asia & Latin America.

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Dow 30:

CAT Stifel lowered its price target to $142 from $168.

V UBS raises its target price to $`46 from $141.

WMT Announced the availability of Blue Apron meal kits at its jet.com site.

RUMOR:

IBM Announced plans to buy RHT in a 34b deal.

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