12/04/2018 Morning Brief
President Trump named U.S. Trade Representative Robert Lighthizer to head trade negotiations with China. Mr. Lighthizer has been pressing for more tariffs on China as a way to build leverage over Beijing and has focused on fundamental issues dividing the two nations, such as U.S. allegations that Beijing pressures American companies to turn over technology to Chinese counterparts and fails to protect U.S. intellectual property. In a prepared statement released late on Monday, Fed Chairman Jerome Powell said the central bank has made progress in helping promote economic strength and financial stability but is working to address several remaining challenges. In Fed Speak: New York Federal Reserve Bank President John Williams at 10:00 am ET. Economic Reports: At 8:55 am ET the Fed’s Redbook, A weekly measure of comparable store sales at chain stores, discounters, and department stores is scheduled to be released.
Equity markets –
S&P futures are moving lower this morning, (-0.30%)
Asian markets closed mixed last night.
Exchange Close Change %Change
Nikkei 22036.05 -538.71 -2.39
Hang Seng 27260.44 78.40 0.29
European markets are trading lower this morning.
Exchange Last Change %Change
FTSE 7009.36 -53.05 -0.75
DAX 11392.63 -72.83 -0.64
* Futures point to a lower opening this morning as the markets factor in the U.S. China trade situation. While trade tensions have eased due to the 90-day postponement of tariffs, both sides have pledged to ramp up talks, but no agreement has been made. With the exception of China, Asian markets were mostly down. European markets the FTSE is falling due to Brexit news – EU court advises that the U.K. can revoke Brexit.Oil Prices are trading higher this morning.
Oil prices rose more than 2 percent this morning, extending gains ahead of expected output cuts by OPEC and Russia. Canada has also mandated a production cut. OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day (bpd), OPEC sources have said, adding that they were still talking to Russia about the extent of its production cuts. Helping OPEC in its efforts to rein in emerging oversupply was an order on Sunday by the Canadian province of Alberta for producers to scale back output by 325,000 bpd until excess crude in storage is reduced. WTI is currently trading at $54.00 a barrel and Brent Crude is at $62.90 a barrel.
Option Activity -
Bullish option activity in ACHC, CRON & YUM
Bearish option activity in HRB, PVH & TOL
Ticker Company Straddle Price $ Move When Reporting
MRVL Marvel Tech 6.76 $1.11 Tues Afternoon
MOMO MOMO INC 10.47 $3.47 Wen Morning
Mondays option volumes (near term)
Ticker Call Vol Put Vol Call OI Put OI
MRVL 2,752 1,747 3,774 1,852
MOMO 4,282 1,370 12,760 7,025
KR Kroger to sell product in branded sections of Walgreens
TIF UBS lowers its price target to $104 from $141.
RH JPM raised its price target to $180 from $155.
MYL Company announces U.S. launch of generic Prevacid
TSRO Wedbush downgrades the stock to Neutral from outperform.
SNNA BMO lowered it price target to $17 from $27.
MSFT Said to be building new default web browser to replace Edge
V Visa, Mastercard offer merchants' charge cut to end EU probe
XOM Looks to sell stake in Azeri field in Caspian Sea
AAPL HSBC downgrades the stock to Hold from buy. $200 price target.
AAPL Foxconn considering an Iphone factory in Vietnam
AAPL Cirrus Logic becomes the latest AAPL supplier to cut guidance.
SPY Congressional leaders yesterday introduced a 2-week spending bill to give
lawmakers more time to avoid a partial government shutdown.
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