Analytics, 01 November 2019
Daily comment Nov 1
- Wall St opens higher on unexpectedly strong US payrolls, China manufacturing activity
- GOOGL +2% to acquire Fitbit
- BABA +1.3% on strong cloud revenue
- AMGN +1.1% on collaboration with BeiGene
- WTI +1.6%
Market movers:
- Alibaba (+1.3%) reported 2Q rev. and EPS beat. Rev. +40% y/y to ¥119bn vs est. ¥116.7bn driven by increases in mobile users. Cloud computing +64% y/y to ¥9.3nb; Mobile MAU +30m q/q to 785mn vs est. 752.4mn. Adj. EPS +36.5% y/y to ¥13.1 vs est. ¥10.6. (https://bit.ly/2WC3BHE)
- Alphabet (+0.5%) will acquire Fitbit for $7.35/share in cash, valuing the company at ~$2.1bn. (https://bwnews.pr/2N3KpPH)
- Amgen (+1.1%) will take a 20.5% stake in Chinese BeiGene for ~$2.7bn in cash to expand access to the Chinese pharmaceuticals market. ADRS of BeiGene jumped 25% following the release. (https://bit.ly/2PEig3m)
Macro:
- US Jobs for October: +128k m/m vs est. +85k and prior revised +180k. Unemployment rate 3.6% (in line with est.) (https://bloom.bg/2N4XN6i)
- Chinese Caixin manufacturing PMI for October came in at 51.7 vs est. 51.0 - the fastest pace in 6 years. (Bloomberg)
Commodities:
- WTI (+1.6%): The oil futures rose mainly on positive economic data from US and China.
- The shutdown of Keystone crude pipeline in North Dakota could potentially increase costs for US Gulf refiners. (Bloomberg)
Coming up:
- On Fri (11/1): ISM Manufacturing Index for October will be released at 10:00 AM (EST)