12/06/2018 Morning Brief

Economic

The market is waiting on a speech from Federal Reserve Chairman Jerome Powell, which will be scrutinized for signals related to the central bank's interest-rate policy. In Fed Speak: Atlanta Federal Reserve Bank President Raphael Bostic to speak in Atlanta at 12:15 pm ET. New York Federal Reserve Bank President John Williams to speak in NY at 6:30 pm ET. Federal Reserve Bank Chairman Jerome Powell to speak at 6:45 pm ET. Economic Reports: At 8:15 am ET ADP Employment report. At 8:30 am ET Jobless Claims, Productivity and Costs & a report on International Trade. At 9:45 PMI Services. At 10:00 am ET Factory Orders and the ISM Non Mfg Index. At 11:00am ET the EIA Petroleum Status Report. To access Economic news type .Economic into NewsWare.

Equity markets –

S&P futures are moving lower this morning, (-1.64%)

Asian markets closed lower last night.

Exchange Close Change %Change

Nikkei 21501.62 -417.71 -1.91

Hang Seng 26156.38 -663.30 -2.47

European markets are trading lower this morning.

Exchange Last Change %Change

FTSE 6744.57 -177.27 -2.56

DAX 10924.10 -276.14 -2.47

* U.S. stock futures are tumbling this morning. Selling became so intense at one point that circuit breakers were triggered, after the arrest of a Huawei executive reignited trade worries. Huawei's chief financial officer, who was arrested in Canada at the behest of American authorities, isn't an ordinary senior executive. She's the daughter of the Chinese telecommunications giant's founder. Market is in an oversold position, however the arrest of the Huawei will ignite fears of a drawn out trade war with China and cause the market to drop significantly at the open.

Oil Prices

Oil Prices are trading higher this morning. The Organization of the Petroleum Exporting Countries and its partner gather today to debate production cuts. Saudi Arabia's energy minister sent oil markets tumbling early Thursday when he said the group hadn't yet reached a deal on cutting back production. The Energy Information Administration will publish official stock data later in the day. Media reports that the cartel relationship has become tense as Russia the worlds largest oil producer is exerting more control over the production levels. WTI is currently trading at $50.60 a barrel and Brent Crude is at $58.87 a barrel.

Option Activity -

Bullish option activity in CL, JBLU & MYL

Bearish option activity in DHI, DWDP & WDAY

Upcoming Earnings:

Ticker Company Straddle Price $ Move When Reporting

AVGO Broadcom 3.96 $9.58 Thur Afternoon

ULTA Ultra Beauty 5.23 $16.04 Thur Afternoon

Sector Update:

Retail

AZO UBS raised its price target to $1005.00 from $860.00

M Atlantic Equities downgraded the stock to Underweight from neutral.

Drug Makers

BMY BMO Capital upgrades the stock ot Outperform from market perform $60 price target.

EW TO be discussing financial guidance & strategy at an investors conference today.

AZN Reports of a pending CEO departure are unfounded says CEO.

Dow 30:

AAPL UBS lowered its price target to $210 from $225.

IBM To present at the Wells Fargo Tech Summit.

MSFT To presents at Barclays Global Technology, Media and Telecommunications Conference.

FANG:

GOOG Guggenheim initiates coverage with a Buy recommendation and a price target of $1,330.00.

FB Stifel downgrades the stock to Hold from buy with a $150 price target.

FB Guggenheim initiates coverage with a Neutral rating and a price target of $150.

Rumors

MAR Their data breach is being traced to Chinese hackers.

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