Analytics, 02 October 2019
Daily comment Oct 3
- Wall St opens mixed on economic fears
- TSLA -5.2% on 3Q deliveries miss
- PEP+2.0% on 3Q beat
- GPRO -20.4% on slashed outlook
- NFLX -1.7% on Italy tax evasion probe
- US to impose EU tariffs in the end of the month
- WTI -1.8%
Market movers:
- Tesla (-5.2%): 3Q deliveries rose <2% to 97k vs est. 97.4k, days after leaked email showed Elon Mask’ hopes for 100k. (https://reut.rs/2nVAYbz)
- PepsiCo (+2%) on 3Q revenue beat. 3Q rev. +4.3% y/y to $17.19bn vs est. $16.93bn. Adj. EPS -1.9% y/y to $1.49 vs est. $1.75 on higher expenses. Reiterates EPS guidance for FY19. (https://reut.rs/2oJw8xY)
- GoPro (-20.4%): The Co. slashed its profit forecast for 2H19 on Hero 8 Black production delay; cut annual growth forecast to 6%-9% from prior 9%-12%; sees Adj. EPS: $0.33-$0.39 vs prior range $0.37 - $0.49. (https://reut.rs/2n9Ii2F)
- Netflix (-1.7%): According to Reuters, Italy initiated a tax evasion investigation into NFLX. (https://reut.rs/2oGZn4D)
Macro:
- Markit US Services PMI came at 50.9 (in line with est.); Composite PMI: 51.0 vs prior 51.0. (Bloomberg)
- Starting 18 Oct US will impose tariffs on $7.5bn of EU good following WTO ruling over Airbus case. (https://on.wsj.com/2n67K9e)
- Irish Foreign Minister said no-deal Brexit unavoidable with a “final” plan as it does not address Irish hard border problem. (https://reut.rs/2oN3lbM)
- Markit Eurozone Services PMI revised down to 51.6 vs prior 51; Composite PMI: 50.1.vs prior 50.4. (https://bloom.bg/2oJP7Zo)
- Market raised bets for further rate cuts during the next Fed meeting. Currently the bets for 25bps rate cut is 72.9%. (https://bloom.bg/2pBO3XH)
Commodities:
- WTI (-1.8%): Saudi restored production to the level prior the attacks. (https://on.ft.com/2oQHlww)
- US crude inventories rose by 3.1mn to ~424mn bls last week (the most since May): EIA. (https://bit.ly/1BXb9op)
Coming up:
- On Fri (10/4): Fed Chairman Powell speech is at 2:00 PM (EST)