11/30/2018 Morning Brief

Economic

The G-20 summit is to start today in Buenos Aires. The market is watching for developments on the Saturday trade talks between President Donald Trump and China President Xi Jinping. Fitch Ratings feels that the impact of the US-China trade war on other major economies through supply-chain linkages will be highest in Korea and Japan and reflects their sales of intermediate products to China that are ultimately bound for the US market. These exposures are still quite small relative to total exports. In Fed Speak: New York Federal Reserve Bank President John Williams is to participate in panel on "The Global Economy starting at 9:00 this morning in New York. Economic Reports: At 9:45 the Chicago PMI is scheduled for release. At 1:00 pm ET The Baker-Hughes Rig Count numbers are scheduled for release.

Equity markets –

S&P futures are now flat, but have rallied in the last 10 min this morning, (-0.00%)

Asian markets closed higher last night.

Exchange Close Change %Change

Nikkei 22351.06 88.46 0.40

Hang Seng 26506.75 55.72 0.21

European markets are trading lower this morning.

Exchange Last Change %Change

FTSE 6987.28 -51.68 -0.73

DAX 11232.53 -64.16 -0.57

* Futures point to a lower opening this morning. Market’s trend will be focused on the G20 summit.

Oil Prices

Oil Prices are trading lower this morning. Oil is trader lowers as it becomes clear that none of the producers are willing to cut production. The Organization of the Petroleum Exporting Countries and its Russia-led allies are meeting next Thursday and Friday in Vienna to debate cutting as much as 1.4 million barrels a day from its collective output. Saudi Arabia, which since the summer had been ramping up output to cool markets, would be in a position to carry the bulk of these cuts since it increased output by 1 million barrels a day in just a few months. Iran and other oil producers will press Saudi Arabia to bear the brunt of production cuts when OPEC meets next week. Saudi oil minister Khalid al-Falih is lobbying others in OPEC, as well as Russia, to join the production cuts. He is warning privately that oil markets will tank further in early 2019 if no action is taken, according to people familiar with his efforts. But Mr. Falih also insists the kingdom won't move on its own. WTI is currently trading at $50.73 a barrel and Brent Crude is at $58.98 a barrel.

Option Activity -

Bullish option activity in CCL, MDR & TWTR

Bearish option activity in AEO, DKS & HAL

Upcoming Earnings:

Ticker Company Straddle Price $ Move When Reporting

CONN Conn’s Inc 14.31 $3.94 Tues Morning

HOME At Home Grp 10.29 $2.85 Tues Morning

TOLL Toll Brothers 7.59 $2.55 Tues Morning

OLLI Ollies Bargain 3.02 $2.71 Tues Afternoon

RH Restoration Hw 16.00 $18.33 Tues Afternoon

Sector Update:

Retail

DSW Citi lowered its price target to $30 from $33

SFM BofA downgraded the stock to Underperform from buy, $21 price target.

GME Wedbush feels that a sale to private equity is imminent.

Drug Makers

ABT Goldman upgrades the stock to Buy from neutral, raises PT to $81 from $78.

LH Lowered it guidance this morning, GS removed it from its conviction buy list.

ALKS BofA raises its price target to $58 from $55.

Dow 30:

GS BofA downgraded to Neutral from buy, PT lowered to $225 from $280.

GS Fed’s are investigating firms internal controls re: Malaysian wealth fund crisis.

FANG:

AAPL Nomura feels the stock has further to fall.

FB CFO Sandberg ordered investigation to see if Soros stood to profit from criticizing the company.

AMZN Germany's antitrust regulator is opening an investigation into Amazon.

Rumors

SYMC Michael Fey resigns as President and COO

ROKU Heavy Call activity yesterday, directionally bullish.

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