2/13/2019 Morning Brief
In her speech on Tuesday, Cleveland Fed President Loretta Mester said “The Federal Reserve will chart plans to stop letting its bond holdings roll off "at coming meetings,". Federal Reserve Chair Jerome Powell also gave a speech yesterday where he talked up the economy and down the potential for recession. Fed Speak: Cleveland Federal Reserve Bank President Loretta Mester to deliver a speech about economic outlook and monetary policy in Lexington, KY at 8:50 am ET. Philadelphia Federal Reserve Bank Chairman Patrick Harker is scheduled to give a speech on the economic outlook in Philadelphia, PA at 12:00pm ET. Economic Reports: At 8:30 am ET, The Bureau of Labor Statistics will release the Jan CPI data. At 10:00 am ET, The tlanta Fe Business Inflation Expections. At 10:30 am ET the EIA Pertoleum Status Report.
Markets are trading higher this morning. Futures are higher based on continued sentiment that the US will push back the tariff deadline as negotiations with China continue. The consumer-price index rose 1.6% in January. Trump appears likely to sign the funding bill to avert another government shutdown. European and Asian exchanges are higher.
S&P’s Overnight High 275.35 Low 274.10% Change higher by 0.32%
Asian Mkts Close Change % Change
Tokyo 21144.48 280.27 1.34
Hong Kong 28497.59 326.26 1.16
Euro Mkts Last Change % Change
London 7177.04 43.90 0.62
Germany 11157.27 31.19 0.28
Oil prices are trading higher this morning. In its monthly oil report, the International Energy Agency believes that Crude oil supplies will outpace demand in 2019. While OPEC has initiated production curb, the IEA raised its estimate of growth in crude supply from outside of OPEC to1.8 million bpd in 2019, from 1.6 million. Yesterday the American Petroleum Institute reported that inventories of crude in the U.S. unexpectedly declined by around 998,000 barrels in the latest week. Later today we will get the official data from the Energy Information Administration.
WTI is at $53.73 barrel, Brent Crude is at $63.36 a barrel.
Bullish option activity in AVP, AZN & CAG
Bearish option activity in BBY, CSCO & RHT
HD P/SGN Expands 2019 renewable energy initiatives in wind and solar.
PAG .REC Seaport Global initiates coverage with a Buy recommendation.
WMT .Options Walmart’s weekly calls are avtive.
CRL .MA Charles River to acquire Citoxlab for EUR448M in cash
TEVA .ERN Lowered guidance, also plans to close 11 manufacturing facilities in 2019
BHC .FDA Received 510(k) clearance for custom contact lens coating technology
INTC .MA XLNX & MLNX merger talks broke down, INTC is said to have an interest in MLNX
WBA .NewPR Announce pact for mobile payment solution with Alipay.
CSCO .ERN Tariffs and demand could weigh on its earnings outlook.
GOOG P/SGN Plans to unveil its first lower-priced smartphone this year.
GOOG P/SGN Said to be creating a sales force for its Cloud offerings
AMZN P/SGN Lawmakers are questioning the NY state deal to lure the AMZN 2nd headquarters
SPY P/SGN Trump intends to sign border deal to avoid shutdown.
RTN .CTRCT Raytheon wins 88m U.S. Navy contract.
GM .Rumor GM & AMZN in talks to invest in Rivian Automotive
ATVI .Rumor Said to be reducing staff by 8%.
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