1/11/2019 Morning Brief


Yesterday, Federal Reserve Chairman Jerome Powell predicted no recession in 2019 and said the U.S. central bank will be patient in determining when to hike interest rates. Fed Vice Chairman Richard Clarida also said the Fed could afford to take a wait-and-see stance on interest rates if headwinds to the economy from financial markets or global growth prove persistent. Economic Reports: At 8:30 am ET the much watch Consumer Price index will be released for December. At 1:00 pm ET the Baker Hughes Rig Count numbers are to be released.

Stock futures are pointing to a lower opening this morning. European exchanges are trading mixed and Asian exchanges closed higher based on the status of the China-US trade talks. The more positive tone in stock markets in January has come from reassurance from the Federal Reserve that it would adjust its pace of tightening monetary policy if needed. The US government shutdown continues, and President Trump threatened to declare an emergency so that he can bypass Congress to pay for his boarder wall.

S&P’s Overnight High 259.03 Low 257.59 % Change down 0.44%

Asian Mkts Close Change % Change

Tokyo 20359.70 195.90 0.97

Hong Kong 26667.27 145.84 0.55

Euro Mkts Last Change % Change

London 6918.90 -23.97 -0.35

Germany 10850.62 195.90 -0.76

Oil Prices

Oil prices continued to show strength in the overnight market. WTI is currently trading at $53.02 a barrel. Brent Crude is trading at 62.09 a barrel. Crude prices have closed higher for nine straight sessions in their longest winning streak in nine years. Oil markets are receiving support from supply cuts led by the Organization of the Petroleum Exporting Countries and aimed at reining in a glut that emerged in the second half of 2018. Playing a key part in the emerging glut was the United States, where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd. Later today, Baer Hughes will be releasing its weekly data on the number of rigs drilling for oil in the U.S., a key metric of activity in the sector.

Options Activity:

Bullish option activity in AMRN, IP & MGM

Bearish option activity in CHS, MNK & PCG

Sector Update:


GPS .REC - Barclays 2x downgrade new rating is Underweight was overweight, $25 PT

LB .Filing ALert - In 8K LB stated they expect to report adj eps on the high end of guidance.

LULU .REC - Oppenheimer feels they are managing risks in China well.

Drug Makers:

PG .REC Evercore initiates coverage at Outperform with a $70 price target.

AMRN .RUMOR Cantor sees potential takeover and positive RX trends in the stock.

MO .FDA FDA to study vaping addiction in young adults.

Dow 30:

INTC .HOT - Citi puts the stock on Positive Catalyst Watch list. Raises price target to $54.

GS .HOT - Said to be liable for 5b in the 1MDB scandal.

DIS .MA - Fox does not intend to bid on regional sports network that DIS might sell.


NFLX .REC Raymond James upgrades the stock to Strong Buy from Buy.

AAPL .NDT – New Product Alert – Apple to release 3 new I-phone in 2019.

AMZN .REC Oppenheimer feels U.S. holiday sales likely strong.


SPY White House exploring alternative ways to pay for border wall.

BUD .MA Considering a sale of part of its Asian operations.

TLRY .Volatile Privateer does not have plans to sell after lock up period expires next week.

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