11/01/2018 Morning Brief

Economic

The Federal Reserve unveiled a proposal on Wednesday that would ease regulations for banks with less than US$700 billion in assets. Under the Fed proposal, midsized lenders would face lower liquidity and compliance requirements, and smaller banks would get even easier treatment. The Treasury Department said Wednesday it would again boost the size of its debt auctions to meet funding needs caused by swelling budget deficits and a shrinking Federal Reserve portfolio. Today’s Economic Reports: At 8:15 am ET ADP Employment Report. 8:30 am ET Jobless Claims 10:00 am ET Construction Spending & the ISM Manufacturing Index. 2:00 pm ET Auto Sales.

Equity markets –

S&P futures are trading Higher this morning, (0.24%)

Asian markets closed mixed last night.

Close Change %Change

Nikkei Stock 21687.65 -232.81 -1.06

Hang Seng 25416.00 436.31 1.75

European indices are higher this morning this morning.

Last Change %Change

FTSE 100 7135.99 7.89 0.11

Xetra DAX 11514.53 67.02 0.59

* U.S. Stock Futures are trending lower but have been in positive territory all morning. The market is being pushed higher by positive earnings reports.

Oil Prices

Oil prices are trading lower this morning. Oil prices fell early on Thursday, extending losses in previous sessions, amid signs of rising supply and growing concerns that demand might weaken on the prospect of a global economic slowdown. Thursday's drops came after U.S. Energy Information Administration data showed crude oil inventories climbed for a sixth straight week. Also weighing on prices is growing concerns over the prospect of a global slowdown amid the ongoing U.S-China trade war. WTI is currently trading at $64.89 a barrel and Brent Crude is at $74.33 a barrel.

Option Activity -

Bullish option activity in AGNC, ALB & HIG

Bearish option activity in ABBV, MDR & REV

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

SBUX Starbucks 4.65 $2.71 Thur Afternoon

TNDM Tandem Diabetes 12.63 $4.75 Thur Afternoon

XOM Exxon Mobil 1.99 $1.59 Fri Morning

Wen Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

SBUX 9,499 5,422 15,488 10,310

TNDM 456 90 1,889 961

XOM 6,806 2,758 33,789 22,707

Sector Update:

Retail

AEO BofA lowers its rating to Neutral and cuts it price target to $18 from $27.

GAP RBC lowers its price target to $30 from $34.

ANF RBC lowers its price target to $23 from $27.

Drug Makers

EXRX RBC raises its target tpice to $101 from $94.

ACAD Cantor raises its price target to $30 from $27.

PFE BMO Capital downgrades the stock to Market Perform from outperform.

FANG

AMZN ParcelPay Technology expands relationship with AMZN..

AAPL App Store revenue declined in Oct according to B of A.

GOOG CEO writes to employees apologizing for past executive sexual misconduct.

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Dow 30:

DIS Announces deal with Whirlpool to be the official appliance of world resorts.

CSCO See’s dramatic change in IT operations as CIO's embrace analytics and automation

AAPL Said to be exploring a tie up with iHeartMedia

RUMOR:

DVMT Icahn sues Dell over plans to go public.