2/08/2019 Morning Brief

Economic:

Dallas Fed President Robert Kaplan commentated yesterday that he considers the Federal Reserve is now "in the neighborhood of neutral," which is the rate at which the Fed is neither accommodative or restrictive. St. Louis Fed President James Bullard feels the central bank's current interest-rate policy stance is slightly restrictive at the time when the central bank should be more concerned about the slower growth and weaker inflation expected this year. Financial markets are starting to price in the impact of higher tariff’s on Chinese goods. Trade Talk are schedule to be held in China next week, however the two sided are still far away from an agreement. President Trump said that it is unlikely that he and Chinese Premier will get together before the March 1 deadline. Fed Speak: San Francisco Federal Reserve Bank President Mary Daly is scheduled to speak at an economic event in San Francisco today at 1:15pm ET. Economic Reports: At 1:00 pm ET Baker Hughes will be releasing its rig count figures for the past week.

Markets"

Markets are drifting between small gains and losses, concerns related to softening growth around the world are creating a barrier for the markets to move higher. Italy’s industrial production contracted for a fourth straight month, Reserve Bank of Australia lowered its growth projections and Japanese shares hit a one-month low overnight. These factors are creating a negative sentiment for the S&P futures

S&P’s Overnight High 270.14 Low 268.43 % Change lower by -0.47%

Asian Mkts Close Change % Change

Tokyo 20333.17 -418.11 -2.01

Hong Kong 27946.32 -43.89 -0.16

Euro Mkts Last Change % Change

London 7074.41 -19.17 -0.27

Germany 10959.14 -62.88 -0.57

Oil Prices

Oil prices are trading mixed to higher this morning. Oil prices are displaying weakness due global growth concerns, which is thought to be a negative indicator on demand. China is one of the world’s largest consumer of oil and their economy continues to show signs of deceleration. The U.S. China trade talks have a way to go before reaching a trade deal according to Trump’s economic advisor Larry Kudlow. Later today Baker Hughes will be releasing its Rig Count figures for the past week.

WTI is at $52.63 a barrel, Brent Crude is at $61.99 a barrel.

Options Activity:

Bullish option activity in GM, MYL & UAA

Bearish option activity in COTY, DE & HLF

Sector Update:

Retail

ORLY .REC RBC raised its target price to $398 from $389.

FAST .REC Stephens raised its target price to $72 from $60.

WMT P/SGN Lauching a home brand unit on its e-commerce site “MoDRN”

Drug Makers:

LLY P/SGN Initiated an exchange offer to divest its remaining interest in ELAN.

GILD P/SGN Yescarta sales could double in 2019 as more centers come online.

QURE P/SGN Announced updated clinical data from phase IIb study.

Dow 30:

V P/SGN Raised its offer to $319.5m and outbid MA for U.K. payments Co. Earthport.

NKE .REC Oppenheimer raised its price target to $100 from $90.

UTX .REC Morgan Stanley raised it price target to $155 from $145.

FANG-

FB P/SGN Plan to appeal German court ruling on its data collection practices.

GOOG PERI.FLY Is removing certain search results to comply with Russia’s regulators.

AAPL P/SGN The decision to stop reporting Iphone sales is said to be creating added volatility.

Rumor:

SPY Peri.Fly India’s zero tariff on it 5.6b of exports to the U.S is under review.

GT .ERN Reports Q4 adjusted EPS 51c, consensus 69c.

ARNC Hots.fly To explore potential sale of certain businesses.

TSLA .Rumor Model 3 gains approval for autopilot in Europe

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