Analytics, 03 October 2019
Daily comment Oct 4
Daily comment Oct 4
- Wall St opens higher following modest US jobs gain
- Unemployment rate at a 50-y low
- AAPL +1.7%, to increase iPhone 11 production
- COST -1.6% on 4Q comps miss
- Snap +4.2% on rating upgrade
- HP, WeWork to cut workforce
- UK PM will ask Brexit delay if no-deal reached in 2 weeks
- WTI +1.0%
Market movers:
- Apple (+1.7%): According to Nikkei report, Apple is increasing iPhone 11 production by 11% on higher than expected demand. (https://cnb.cx/2InURyZ)
- Costco (-1.6%) on 4Q EPS miss. 4Q Rev. +7.0% y/y to $47.50bn vs est. $47.7bn. Comps +5.1% vs est. +5.0%. Adj. EPS +4.7% y/y to $2.47 vs est. $2.54. (https://bit.ly/2Vd8Igx)
- Snap (+4.2%): Morgan Stanley upgraded stock to “equal-weight” from “underweight”, raising TP to $17 (18% upside) on improved revenue trends. (Bloomberg)
- HP (+0.7%): The Co. would cut up to 9k jobs (~16%) as a part of restructuring plan. (https://reut.rs/2MgIu8M)
- In a similar move, WeWork will slash 25% or ~2k of its workforce. (https://bloom.bg/2VmII2B)
Macro:
- US Non-farm payrolls rose 136k slightly missing est. ~145k in September. Unemployment rate came at 3.5% vs est. 3.7%. How market attention turned to Powell speech later today. (https://bloom.bg/2Vdx4Xr)
- Boris Johnson will send a letter asking to postpone Brexit if he can’t get a deal by Oct 19. (https://bloom.bg/30MUkgd)
Commodities:
- WTI (+1.0%): Mostly on weak economic data and fears of recession.
- OPEC member Nigeria is ready for further production cuts if needed. (https://bloom.bg/2MbIbw5)
Coming up:
- On Fri (10/4): Fed Chairman Powell speech is at 2:00 PM (EST).