11/28/2018 Morning Brief

Wednesday, November 28, 2018
Economic

A senior White House adviser voiced concern over this coming weekend's meeting between President Trump and Chinese President Xi Jinping, suggesting the two leaders may not be able to resolve their escalating trade dispute. In Fed Speak: at 12:00 pm ET Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on "The Federal Reserve's Framework for Monitoring Financial Stability" at the Economic Club of New York, in New York. At 8:30 am ET, The second estimate for third-quarter GDP, the U.S. international trade in goods report, Wholesale inventories, Corporate profits and Retail inventories will be released. At 10:00 am ET, New home sales, Richmond Fed Manufacturing Index and The State Street Investor Confidence Index.

Equity markets –

S&P futures are moving higher this morning, (0.45%)

Asian markets closed higher last night.

Exchange Close Change %Change

Nikkei 22177.02 224.62 1.02

Hang Seng 26682.56 350.60 1.33

European markets are trading mixed this morning.

Exchange Last Change %Change

FTSE 7011.17 -5.68 -0.08

DAX 11323.82 14.71 0.13

* Futures point to a higher opening this morning. Market’s trend will be focused on this morning’s economic releases and Fed Chari Jerome Powell speech this afternoon.

Oil Prices

Oil Prices are trading lower this morning. Oil prices wavered between small losses and gains Wednesday, partially aided by a weaker U.S. dollar. Crude Oil remains under pressure amid signs of climbing inventories. Oil prices again came under pressure after the American Petroleum Institute, an industry group, reported late Tuesday that U.S. crude stockpiles grew by 3.5 million barrels last week. Official inventory data from the Energy Information Administration on Wednesday is expected to show a 500,000 barrel increase in crude stocks for the week ended Nov. 23. WTI is currently trading at $51.48 a barrel and Brent Crude is at $59.93 a barrel.

Option Activity -

Bullish option activity in CPRX, NLSN & TSRO

Bearish option activity in FOSL, GE & HIIQ

Upcoming Earnings:

Ticker Company Straddle Price $ Move When Reporting

SMTC Semtech Corp 9.93 $4.56 Wen Afternoon

TLYS Tillys Inc 20.36 $3.04 Wen Afternoon

Tues Option Volumes

Ticker Call Volu Put Volu Call OI Put OI

SMTC 47 67 1,176 800

TLYS 211 44 2,125 203

Sector Update:

Retail

AZO Stephens assumes coverage with an Overweight rating and a $875 price target.

GPS MKM Partners lowers its taget price to $30 from $32.

AZO Credit Suisse raised its price target to $854 from $810.

Drug Makers

TEVA Recalling certain blood pressure medicines in the U.S.

ALQA to spin off & merge AquaMed Tech with TO Pharmaceuticals.

CPRX 11/28 is the PUDFA date for Catalyst Pharma Firdapse.

Dow 30:

MCD Piper raised its price target to $194 from $185.

UNH Piper raised its price target to $312 from $300.

UTX Multiple brokers have lowered their price targets on the stock this morning.

FANG:

AAPL Wedbush lowered its price target to $275 from $310.

AMZN Evercore raised its price target to $1,990 from $1,970.

GOOG YouTube is said to be lowering from its premium subscription fee.

Rumors

CPB Is looking at former Pinnacle Foods head as its next CEO.

ALK Goldman added the stock to its conviction buy list.

*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.