10/30/2018 Morning Brief

Economic

Trump is said to be preparing to unleash tariffs on all Chinese imports if upcoming talks with China's president do not yield results. The Federal Reserve is set to propose the creation of new regulatory categories of banks based on size as well as other risk factors, such as international activity, off-balance sheet exposures and reliance on volatile forms of short-term funding. The expected plan may reduce regulatory costs for regional U.S. lenders under the $700B asset line. Today’s Economic Reports: At 8:55am ET The Feds Redbook on Retail Sales. At 9:00am ET The Home Price Index report. At !0:00 am ET Consumer Confidence.

Equity markets –

S&P futures are trading higher this morning, (0.15%)

Asian markets closed mixed last night.

Close Change %Change

Nikkei Stock 21457.29 307.49 1.45

Hang Seng 24585.53 -226.51 -0.91

European indices are higher this morning this morning.

Last Change %Change

FTSE 100 7051.57 25.25 0.36

Xetra DAX 11335.68 0.20 0.00

* Futures currently point to a positive opening this morning as Wall Street digests President Trump's conflicting remarks about US trade policy.

Oil Prices

Oil prices are trading lower this morning. Oil prices fell Tuesday morning trading, dragged down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran's crude exports. In a sign that oil supply remains ample despite the looming US sanctions against Iran's petroleum exports, crude output from the world's top 3 producers, Russia, the United States and Saudi Arabia, reached 33 million barrels per day (bpd) for the first time in September. Iran's seaborne crude exports, by contrast, have fallen from a 2018-peak of just over 2.5 million bpd in May to around 1.5 million bpd in September and October. WTI is currently trading at $66.53 a barrel and Brent Crude is at $76.61 a barrel.

Option Activity -

Bullish option activity in AET, MGM & YELP

Bearish option activity in BAX, KR & S

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

EXAS Exact Sciences 19.51 $11.18 Tuesday Afternoon

FEYE FireEye 11.37 $1.86 Tuesday Afternoon

Mon Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

EXAS 15,957 406 62,254 942

FEYE 2,115 365 7,493 1,866

Sector Update:

Retail

JWM Wedbush raises its price target to $75 from $55.

DDS Wedbush downgrades the stock to Neutral, lowers price target to $70 from $95.

Drug Makers

GLPG Nomura raises its price target to $140 from $124.

EXAS UBS says recent stock weakness is a buying opportunity.

CELG Mizuho maintains Buy rating, lowers price target to $117 from $129.

FANG

AAPL Apple has taken down its online store ahead of today's event in New York, scheduled to begin 10:00 am ET.

GOOG A women walk out is planned for Thursday to protest harassment issues.

AAPL Expected to unveil IPads with facial recognition.

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Dow 30:

MCD Citi raised its target price to $189 from $171.

IBM UBS lowered its ptice target to $150 from $180.

PFE Narrows guidance on tougher pricing, generic competition.

RUMOR:

GE Cuts dividend and plans to split up power unit.

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