11/23/2018 Morning Brief

Economic

The US economic numbers continue to display a cause for concern. Falling mortgage applications and rising jobless numbers create a difficult situation for the Fed to continue its pace of rate hikes. The US - China trade dispute continues to drag on the equity markets, the Shanghai Composite Index closed down 2.5% today. Media reports that the U.S. government has attempted to persuade foreign allies to avoid telecommunications equipment from China's Huawei Technologies Co. due to what they see as cybersecurity risks. Earlier today a Chinese vice minister of commerce said China won't allow other countries to deprive it of its developing-nation status at the World Trade Organization. These are likely negotiating tools of the Trump Administration as it prepares for an economic summit late this month. Economic Reports; At 9:45 am ET; the Composite Purchasing Managers' Index (PMI Composite Flash).

Equity markets –

S&P futures are trading lower this morning, (-0.59%)

Asian markets mixed last night.

Close Change % change

Nikkei Stock 21646.55 139.01 0.65

Hang Seng 25927.68 -91.73 -0.35

European indices are mixed this morning this morning.

Last Change %Change

FTSE 100 69954.27 -6.05 -0.09

Xetra DAX 11156.83 18.34 0.16

* Futures point to a lower opening. The market closes early today and liquidly will be light. A significant market event typically occurs the day after Thanksgiving.

Oil Prices

Oil Prices are trading lower this morning. Oil prices are at their lowest levels in more than a year. The oil traders continue to push prices lower due to concerns over a slowing global demand and the current over supply based on oil stock pile data. Prices should start to move higher before the Dec 7th OPEC meeting in Vienna. A plan to reduce production is likely to be implemented at this meeting. WTI is currently trading at $52.29 a barrel and Brent Crude is at $61.02 a barrel.

Option Activity -

Bullish option activity in AKRA, NKTR & ROKU.

Bearish option activity in CRM, FB & QEP

Sector Update:

Retail

BBY Morgan Stanley lowers its price target to $75 from $80

TGT Morgan Stanley lowers its price target to $60 from $70.

ROST Morgan Stanley lowers its price target to $94 from $99

Drug Makers

NVS The EC, approved Luxturna, a treatment of vision loss due to a genetic mutation.

GRFS In talks for a 5b stake in China's Shanghai RAAS Blood Products.

Dow 30:

V Offering to reduce fees for tourists in EU in an attempt to avoid fines from an antitrust investigation.

AAPL Said to be reducing the price of the iPhone XR in Japan due to tepid demand.

GS A sovereign-wealth fund accused GS in a lawsuit Wed, in a corruption scandal.

Rumor

TSLA Cut is price on Model X and Model S in China.

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