11/20/2018 Morning Brief

Economic

In a speech yesterday, Federal Reserve President John William said “We’ll be likely raising interest rates somewhat but it’s really in the context of a very strong economy,” he said at a community event in New York on Monday. “We’re not on a preset course. We’ll adjust how we do monetary policy to do our best to keep this economy going strong with low inflation.” The Fed's Randall Quarles is expected to be named head of the Financial Stability Board, a global body overseeing financial regulations. Economic Reports; At 8:30 am ET Housing Starts. Redbook on retail sales at 8:55 am ET.

Equity markets –

S&P futures are trading higher this morning, (-0.51%)

Asian markets Lower last night.

Nikkei Stock 21583.12 -238.04 -1.09

Hang Seng 25840.34 -531.66 -2.02

European indices are lower this morning this morning.

Last Change %Change

FTSE 100 6985.92 -14.97 -0.21

Xetra DAX 11148.88 -95.66 -0.85

* Futures point to continued selloff this morning. A combination of soft earnings forecasts from sector giants like Apple and Facebook, anxieties that corporate earnings may have peaked and frosty trading relations between the U.S. and China have left tech stocks vulnerable to selling.

Oil Prices

Oil gave back earlier gains to drift lower on Tuesday as a deteriorating economic outlook and evidence of surging U.S. production outweighed investor optimism over possible OPEC production cuts. The American Petroleum Institute is scheduled to releases its weekly crude oil stockpiles data at 4.30 pm ET today. Tuesday. WTI is currently trading at $57.25 a barrel and Brent Crude is at $66.56 a barrel. * Futures point to continued selloff this morning. A combination of soft earnings forecasts from sector giants like Apple and Facebook, anxieties that corporate earnings may have peaked and frosty trading relations between the U.S. and China have left tech stocks vulnerable to selling.

Option Activity -

Bullish option activity in AMC, EQT & TSRO

Bearish option activity in ESV, MAT & MDT

Upcoming Earnings

Ticker Company Straddle $move When Reporting (tentative)

KEYS Keysight Tech 7.99 $4.44 Tuesday Afternoon

SBLK Star Bulk Carrier 18.25 $1.60 Tuesday Afternoon

Mon Options Volumes (near term)

Ticker Call Vol Put Vol Call OI Put OI

KEYS 334 73 2,524 178

SBLK 1156 0 1,850 454

Sector Update:

Retail

LB Piper raises its price target to $34 from $28.

JACK Barclays lowers its price target to $86 from $93.

URBN BofA lowers its price target to $50 from $60.

Drug Makers

HSDT BTIG upgrades the stock to Buy from neutral with a $14 price target.

ACHC KKR is still in talks to acquire Acadia Healthcare.

VKTX Raymond James upgrades the stock to Strong Buy from outperform with a $43 price target.

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Dow 30:

AAPL Goldman lowers its price target to $182 from $209.

BA To launch joint SkyGrid venture with SparkCognition.

RUMOR:

COWN Acquire Quarton Inernational

*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.