11/27/2018 Morning Brief

Economic

In an interview with the WSJ yesterday, President Trump said that it is "highly unlikely" that he would accept Beijing's request to hold off on increasing tariff rates on Chinese goods from the beginning of January 2019, raising some doubts about achieving a trade deal between the world's two largest economic superpowers when Trump and Chinese President Xi Jinping meet on Friday in Buenos Aires. In Fed Speak; Federal Reserve Board of Governors Vice Chairman Richard Clarida is scheduled to speak today at 7:45 am ET in NY. At 2:30 pm ET. Atlanta Fed President Raphael Bostic, Kansas City President Esther George and Chicago President Charles Evans will be on a panel discussion discussing Financial Innovation, the Economy, Regulation, and the Future of Payments in New York. Economic Reports; At 9:00 am ET, S&P Corelogic Sase Shiller Home Price Index and the FHFA House Price Index. At 10:00 am ET Consumer Confidence Index.

Equity markets –

S&P futures are moving lower this morning, (-0.62%)

Asian markets closed mixed last night.

Exchange Close Change %Change

Nikkei 21952.40 140.40 0.64

Hang Seng 26331.96 -44.22 -0.17

European markets are trading higher this morning.

Exchange Last Change %Change

FTSE 7011.16 -24.84 -0.35

DAX 11314.17 -40.55 -0.36

* Futures point to a higher opening this morning. U.S. stock indexes are pulling back as remarks from President Donald Trump stoked fresh anxieties about the prospects of a near-term resolution of trade tensions between the U.S. and China.

Oil Prices

Oil Prices are trading higher this morning. Indications of softer demand growth and oversupply in 2019 likely means that Saudi Arabia and Russia will need to review their current production levels. Oil traders expect that OPEC and Russia will rein in crude output when they convene in Vienna next week. The American Petroleum Institute is scheduled to release weekly inventory numbers later in the day. WTI is currently trading at $51.80 a barrel and Brent Crude is at $60.84 a barrel.

Option Activity -

Bullish option activity in CPB, GM & Z

Bearish option activity in BOX, MNK & OSTK

Upcoming Earnings:

Ticker Company Straddle Price $ Move When Reporting

SMTC Semtech Corp 9.59 $4.41 Wen Afternoon

TLYS Tillys Inc 20.80 $3.22 Wen Afternoon

Mon Option Volumes

Ticker Call Volu Put Volu Call OI Put OI

SMTC 140 18 1,062 734

TLYS 867 26 1,232 187

Sector Update:

Retail

RH Wells Fargo resumes coverage with an Outperform rating and a $145 price target.

FIVE Loop Capital lowers its price target to $110 from $125.

CVS Wells Fargo raises its price target to $104 from $98.

Drug Makers

BMY BMO Capital lowers its price target to $56 from $58.

HKMPF Jefferies upgrades to the stock to Buy from hold.

TNXP Announced a 1 for 10 reverse split.

Dow 30:

DIS Imperial Capital upgrades the stock to Outperform with a $129 price target.

UTX Announced plans to split into 3 separate companies.

FANG:

AAPL RBC lowers its price target to $235 from $240.

AAPL iPhone tariff threat represents near-term overhang for Apple, says Wedbush

AAPL Baird weakness is a buying opportunity says Baird

*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.