11/07/2018 Morning Brief

Economic

Later today the Federal Open Market Committee meeting is scheduled to start its 2-day meeting. Current sentiment is that Fed will announce another rate increase in December followed by three more in 2019. However, markets appear to be pricing in the likelihood of just two more increases in 2019. On Thursday when the Fed will be releasing its policy statement which will give traders greater insight into the central bank's thinking on the economy, inflation and whether their pace of rate increases needs to be altered. Today’s Economic Reports: At 10:30am ET – EIA Petroleum Status Report. At 3;00pm ET – Federal Reserve’s Consumer Credit figures for Sept.

Equity markets –

S&P futures are trading higher this morning, (0.89%)

Asian markets closed mixed last night.

Close Change %Change

Nikkei Stock 22085.80 -61.95 -0.28

Hang Seng 26147.69 26.73 0.10

European indices are higher this morning this morning.

Last Change %Change

FTSE 100 7117.50 76.82 1.09

Xetra DAX 11576.60 92.26 0.80

* Stock futures are trending higher this morning. Markets are reacting to the election outcomes this morning, but will soon focus will soon be on the FOMC meeting.

Oil Prices

Oil prices are trading higher this morning. It is being reported that Russia and Saudi Arabia have started bilateral discussions over possible 2019 oil production cuts. U.S. crude prices have fallen 19% since breaking above $76 a barrel in early October, on worries over slowing demand for fuel and record production from major oil exporters. Later this morning the Energy Information Administration will be releasing its figures on U.S. oil Inventories WTI is currently trading at $62.82 a barrel and Brent Crude is at $73.18 a barrel. * Stock futures are trending higher this morning. Markets are reacting to the election outcomes this morning, but will soon focus will soon be on the FOMC meeting.

Option Activity -

Bullish option activity in ATVI, KNX & NTNX

Bearish option activity in COL, GM & OSTK

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

CYBR Cyberark Softw 13.57 $9.20 Wen Afternoon

ROKU Roku Inc 14.45 $8.04 Wen Afternoon

SQ Square Inc 9.33 $7.21 Wen Afternoon

TPIC TPI Composites 9.90 $2.67 Wen Afternoon

VKTX Viking Therapeu 21.84 $3.00 Wen Afternoon

Tue Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

CYBR 163 103 414 382

ROKU 4,184 6,533 14,646 14,777

SQ 24,165 13,968 27,319 17,103

TPIC 303 4 931 462

VKTX 2,736 2,089 39,703 26,251

Sector Update:

Retail

TGT Cowen upgrades the stock to Outperform, raises price target to $100 from $90.

CVS Citi raises its price target to$94 from $81.

CWH Wells Fargo lowers its price target to $28 from $33.

Drug Makers

LLY Societe Generale raises its price target to $106

ABMD Morgan Stanley upgrades the stock to Overweight from equal weight.

AXDX JP Morgan downgrades the stock to Neutral from overweight.

FANG

AMZN Announced the expansion of its grocery pickup option into 8 more cities.

APPL News MacBook Air is receiving positive reviews.

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Dow 30:

INTC Seeking privacy bill to protect companies that agree to FTC oversight.

DIS 21st Century Fox sees DIS transaction closing in first half of 2019.

BA Issuing safety bulletin for pilots after Indonesia crash.

RUMOR:

VIRT To acquire ITG for $30.30 per 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.