12/03/2018 Morning Brief

Economic

At the G-20 summit, Trump agreed to hold off on his threat to slap 25 percent tariffs on USD 200 billion worth of Chinese goods from January 1, Beijing agreed to buy very substantial amount of agricultural, energy, industrial and other products from the U.S. to narrow its trade gap with the U.S. In Fed Speak: New York Federal Reserve Bank President John Williams is speaking in New York at 9:15 am ET.. Economic Reports. Federal Reserve Member of the Board of Governors Lael Brainard to give the keynote address at the "Evolving Structure of the U.S. Treasury Market" at 10:30 am ET. Dallas Federal Reserve Bank President Robert Kaplan to speak at 1:00 in Laredo, TX. Economic Reports: PMI Manufacturing Index at 9:45 am ET. ISM Manufacturing Index at 1:00 am ET. Construction Spending at 10:00am ET.

Equity markets –

S&P futures are moving higher this morning, (1.60%)

Asian markets closed higher last night.

Exchange Close Change %Change

Nikkei 22574.76 223.70 1.00

Hang Seng 27182.04 675.29 2.55

European markets are trading higher this morning.

Exchange Last Change %Change

FTSE 7108.55 128.31 1.84

DAX 11514.64 257.40 2.29

* Futures point to a big opening this morning. Positive news from the G-20 summit is pushing markets higher this morning.

Oil Prices

Oil Prices are trading higher this morning. Over the weekend Russia said that it would join Saudi Arabia in curbing crude output. In a surprise move, Qatar said it plans to leave the Organization of the Petroleum Exporting Countries in January. Their intention is to focus on the production of natural gas. Qatar is one of OPEC's smallest producers, with an output of about 600,000 barrels a day, making its impact on the group's market share limited. WTI is currently trading at $53.21 a barrel and Brent Crude is at $61.89 a barrel.

Option Activity -

Bullish option activity in AXL, GSK & PAA

Bearish option activity in CZR, GE & GS

Upcoming Earnings:

Ticker Company Straddle Price $ Move When Reporting

CONN Conn’s Inc 14.46 $4.04 Tues Morning

HOME At Home Grp 10.47 $2.98 Tues Morning

Options volumes from Friday

Ticker Call Vol Put Vol Call OI Put OI

CONN 136 94 1,050 639

HOME 608 09 1,952 2,942

Sector Update:

Retail

TSCO Oppenheimer downgrades the stock to Perform for outperform

COST Citi downgrades the stock to Neutral from buy with a $238 price target.

TGT Citi lowers its price target to $78 from $84.

Drug Makers

MRKR Piper upgrades the stock to Overweight from neutral with a $10 price target.

BHVN Piper say buy aggressively after impressive phase III trial data.

SLBD Citi raised its price target to $31 from $25.

Dow 30:

NKE JP Morgan raised its price target to $85 from $81.

CAT BofA upgrades the stock to Buy from neutral with a $163 price target.

VZ JP Morgan downgrades the stock to Neutral from overweight.

FANG:

AAPL Said to be releasing an "upgraded model" of its AirPods earbuds in 1Q19

AMZN Amazon trials cashierless checkout technology at bigger stores.

AAPL Phones that connect on 5G will not be available until 2020 at the earliest.

Rumors

F China agreed to "reduce and remove" tariffs below the 40% on U.S.-made vehicles.

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