11/02/2018 Morning Brief

Economic

Yesterday President Trump had a conversation with China, news organizations are reporting that Trump Administration is preparing an outline for a trade deal. Global markets are trading higher, on the hopes that trade tensions between the U.S. and China are de-escalating. Today’s Economic Reports: 8:30 am ET Non Farm Payrolls and the Sept Intl Trade report10:00 am ET Factory orders. 1:00 pm ET Baker Hughes Rig Count.

Equity markets –

S&P futures are trading Higher this morning, (0.60%)

Asian markets closed significantly higher last night.

Close Change %Change

Nikkei Stock 22243.66 551.01 2.56

Hang Seng 26486.35 1070.35 4.21

European indices are higher this morning this morning.

Last Change %Change

FTSE 100 7175.89 61.23 0.86

Xetra DAX 11680.75 212.21 1.85

* U.S. Stock Futures higher this morning after a Trump tweeted a positive tone to his call with China.

Senior officials this morning stated that Turmp is not ready to discuss a trade deal.

Oil Prices

Oil prices are trading lower this morning. Surging output by the world's three largest producers outweighed supply concerns from the start of U.S. sanctions next week against Iran's petroleum exports. The US has agreed to let eight countries -- including Japan, India, & South Korea keep buying Iranian oil after if re-imposes sanctions on the OPEC producer on Nov 5. These waivers are being granted in exchange for continued import cuts so as not to drive up oil prices. WTI is currently trading at $63.50 a barrel and Brent Crude is at $72.96 a barrel.

Option Activity -

Bullish option activity in LL, MYL & OAS

Bearish option activity in LLY, WM & YELP

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

FOLD Amicus Thera 5.21 $0.62 Mon Morning

PCG PG&E Corp 5.36 $2.53 Mon Morning

SYY Sysco Corp 4.56 $3.26 Mon Morning

Thur Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

FOLD 22 0 839 136

PCG 138 20 3277 275

SYY 65 81 854 677

Sector Update:

Retail

SYY RBC raised its target price to $67 from $63.

BKE Deutsche Bank upgrades the stock to Hold from sell with a $19 price target.

ULTA Oppenheimer says that it is upbeat on Ulta Beauty.

Drug Makers

BAX Argus upgrades the stock to Buy from hold with a $70 price target.

EBS Goldman upgrades the stock to Buy from neutral and raises its target price to $75.

MYL Elevated call volu ahead of next week’s earnings announcement, Call Put ratio is 4.8 to 1.

FANG

AAPL BofA downgraded the stock to Neutral from buy.

AAPL Morgan Stanley stays at Overweight, but lowers target price to $226 from $247.

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Dow 30:

JPM Dimon says JPM is not interested in buying Deutsche Bank.

GS Is distancing itself from liability in its underwriting role in 1MDB, Kuala Lumpur sovereign investment fund.

CVX Tops EPS by 5 cents, stock is $2 in the pre market.

RUMOR:

SPY Senior official in the Trump Admin say Trump is not ready to cut a trade deal with China.

MCK Reports the retirement of CEO & Chairman.

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