11/06/2018 Morning Brief

Economic

There is a Fed meeting on Wednesday and Thursday this week, no changes to interest rates are expected. A thriving labor market is part of a continuing economic boom that will have to slow down or it eventually will cause trouble, according to a Goldman Sachs analysis. In addition Goldman feels that the Fed is likely to be more aggressive in raising rates that the market expects. Today’s Economic Reports: At 8:55 am ET The Johnson Redbook Retail Sales Index. At 10:00 am ET The JOLTS (job openings) Report..

Equity markets –

S&P futures are trading lower this morning, (-0.09%)

Asian markets closed higher last night.

Close Change %Change

Nikkei Stock 22147.75 248.76 1.14

Hang Seng 26120.96 186.57 0.72

European indices are lower this morning this morning.

Last Change %Change

FTSE 100 7037.90 -65.94 -0.93

Xetra DAX 11453.50 -41.46 -0.36

* Stock futures are trending lower this morning. Markets are focused on the mid-term elections

Oil Prices

Oil prices are trading lower this morning. Morgan Stanley lowered its forecast for Brent crude. They feel that weaker demand, rising supply and an unexpected number of US waivers on economic the sanctions will keep crude oil prices around $77.50 a barrel for Brent crude. There are reports that India and China have given firm commitments on reducing their imports from Iran. WTI is currently trading at $62.85 a barrel and Brent Crude is at $72.65 a barrel.

Option Activity -

Bullish option activity in ECA, GD & PACB

Bearish option activity in AAOI, COL,& UTX

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

DATA Tableau Softw 9.93 $10.57 Tues Afternoon

KORS Michael Kors 9.66 $.5.64 Wednesday Morning

Mon Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

DATA 683 150 3,146 1,773

KORS 6,524 2,846 5,532 641

Sector Update:

Retail

AZO Morgan Stanley raises its target price to $800 from $760.

AAP UBS raises its price target to $190 from $180.

CVS Reports $1.73 eps vrs estimate of $1.71 on higher revenue.

Drug Makers

MYL BofA upgrades the stock to Buy from neutral.

ALKS Cantor lowers its price target to $41 from $46.

BMY Morgan Stanley lowers its price target to $59 from $63.

FANG

FB Britain’s Info Comm has referred FB’s targeting techniques to EU regulators.

AAPL Morgan Stanley said AAPL’s 10K provides very positive statistics.

AMZN To hire thousands of seasonal drivers for its new delivery program.

Dow 30:

UTX Puts are active going into the midterm elections.

DIS Starting to see positive call volumes ahead of earnings on Thur.

RUMOR:

BA Defense sector is seeing weakness headed into the midterm election results.

BOJA To be acquired by Durational Capital mgmt. for $16.10 a share.

*Information displayed above is for informational purposes only. Trading involves the risk of capital and we are not making any predictions on future events or movements in equity prices. All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is not indicative of future price action.