Analytics, 06 January 2020
Daily comment Jan 6
- Wall St opens lower amid Middle East geopolitical risks
- The heavens advanced
- Iran exits nuclear deal
- AAPL -0.7% on possible delays of some 5G line-ups
- BA -1% on FAA requirement
- WTI +0.8%
Market movers:
- Apple (-0.7%): Susquehanna analyst’ checks suggest the Apple 5G line-up will come with some delays. https://bit.ly/2Qro7Ji Separately, Needham cut its recommendation from “strong buy” to “buy”.
- Boeing (-1%): FAA may require more training for the 737 Max pilots. Boeing also confirmed the uncovered issues with wiring during internal audit and plans to take more debt. https://cnb.cx/36rlgG4
- Bed Bath & Beyond (+2.8%) signed a lease-back agreement to sell ~half of its real estate to private asset company. The transaction will bring ~$250mn. https://on.wsj.com/36wbiDo
Macro:
- President Trump warned the US targeted 52 Iranian sites to hit them in case Iran strikes any American assets or people. https://bit.ly/2SXaYJS
- Iraq Parliament voted yesterday to remove US forces from the country. Donald Trump threatened ally Iraq with sanctions if US troops forced to leave the country. https://bloom.bg/2ZTCvgC
- Iran said it is completely exiting the 2015 nuclear pact. https://on.wsj.com/2FmybwY
- US ISM for December: 47.2 vs est. 49 and 48.1 prior. https://bit.ly/2QLnd9C
Commodities:
- WTI (+0.8%): The oil futures rose amid escalation of the US- Iran tensions after General Soleimani death and Iran’s promise for retaliation.
- OPEC December output fell 50k bpd m/m to 29.5mn bpd. https://reut.rs/2N1xygv
- Gold jumped above $1,580, the highest since Apr 2013
Coming up:
- Mon (1/6): Final December Services PMI for the US, China, Eurozone.