11/21/2018 Morning Brief

Economic

The Fed still to plans to raise rates next month, even as volatility in stocks rattles world markets. Fed officials have signaled in recent days they plan to proceed with another quarter percentage point increase in their benchmark short-term interest rate when they meet Dec. 19, marking their fourth rate increase this year. The market pullback does underscore however the uncertain outlook for what the Fed will do after that. "Interest rates are still very low. We've raised them, but they are still at a very low level," said New York Fed President John Williams on Monday. He reiterated the Fed's plans to pursue a "gradual path" of rate rises. Economic Reports; At 8:30 am ET Durable Goods Orders, Jobless Claims. At 10 am ET Consumer Sentiment, Existing Home Sales and Leading Economic Indicators. Ay 10:30 am ET the EIA Petroleum Report. At 1:00 pm ET the Baker Hughes Rig count numbers.

Equity markets –

S&P futures are trading higher this morning, (0.92%)

Asian markets mixed last night.

Close Change % chg

Nikkei Stock 21507.54 -75.58 -0.35

Hang Seng 25971.47 131.13 0.51

European indices are higherthis morning this morning.

Last Change %Change

FTSE 100 6997.52 49.60 0.71

Xetra DAX 11131.68 65.27 0.59

Oil Prices

Oil bounced above $63 a barrel on Wednesday to claw back some of the previous day's 6 percent plunge, lifted by am report of an unexpected decline in U.S. crude inventories. The American Petroleum Institute (API) said on Tuesday that U.S. crude inventories last week fell by 1.5 million barrels, easing concerns for now that a supply glut is building up. OPEC, plus Russia and other non-OPEC producers, is considering a supply cut of between 1 million barrels per day (bpd) and 1.4 million bpd at a Dec. 6 meeting WTI is currently trading at $54.26 a barrel and Brent Crude is at $63.44 a barrel.

Economic

The Fed still to plans to raise rates next month, even as volatility in stocks rattles world markets. Fed officials have signaled in recent days they plan to proceed with another quarter percentage point increase in their benchmark short-term interest rate when they meet Dec. 19, marking their fourth rate increase this year. The market pullback does underscore however the uncertain outlook for what the Fed will do after that. "Interest rates are still very low. We've raised them, but they are still at a very low level," said New York Fed President John Williams on Monday. He reiterated the Fed's plans to pursue a "gradual path" of rate rises. Economic Reports; At 8:30 am ET Durable Goods Orders, Jobless Claims. At 10 am ET Consumer Sentiment, Existing Home Sales and Leading Economic Indicators. Ay 10:30 am ET the EIA Petroleum Report. At 1:00 pm ET the Baker Hughes Rig count numbers.

Option Activity -

Bullish option activity in AMAT, ECA & WDC

Bearish option activity in CZR, NOK & UNP

Sector Update:

Retail

BBY Piper lowered its price target to $81 from $87.

TGT Citi lowers its price target to $84 from $92.

TJX Citi lowers its price target to $58 from $62.50

Drug Makers

GMDA Oppenheimer initiated coverage with an Outperform rating and a $15 price target.

BGNE JP Morgan initiated coverage with an Overweight rating and a $174 price target.

SYN Company reports positive outcome of FDA meetings on SYN-004 .

Dow 30:

GS Morgan Stanley downgrades the stock to Equal Weight from overweight.

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