Analytics, 06 December 2019
Daily comment Dec 6
- Wall St opens higher following upbeat US jobs report
- QCOM +1.3%, unveiled its new budget processors
- TSLA Model 3 qualifies in China for subsidies
- US Democrats to introduce minimum tax burden for companies
- WTI -0.5%, OPEC+ agreed production cuts in principal
Corporate news:
- Netflix (+1.0%): Netflix CEO disclosed the company is spending ~$420mn on production of Indian content. (https://bloom.bg/2LvpbZR)
- Qualcomm (+1.3%) unveiled Snapdragon 7c and 8c processors for budget ARM laptops. (https://bit.ly/2RoYMkg)
- Tesla (+1.7%): Morgan Stanley analyst raised his TSLA PT under bull case scenario from $440 to $500, citing announcement of Cyber Truck and China sales growth potential. PT on base case remains the same at $240. (https://bit.ly/2s2JLtA)
- Tesla Model 3 produced in China qualified for the local government subsidies. Buyers could receive ~$3550 as a government incentive. (https://bloom.bg/2r9d121)
Macro:
- US Nonfarm payrolls for November: +266k vs est. +186k and prior revised +156k. Unemployment rate was 3.5% vs est. 3.6% and 3.6% prior. (https://bit.ly/2PmWmQi)
- Chinese Finance Minister initiated the process of waiving retaliatory tariffs on import of the US pork and soybeans. (https://bloom.bg/34WywSh)
- US Leading Democratic candidate Joe Biden plans to introduce minimum levy on tax-avoiding companies like Amazon and Netflix. (https://bloom.bg/33R8JcF)
Commodities:
- WTI (-0.5%): OPEC+ agreed on principal to reduce production by an extra 500k bpd to 1.2mn bpd by the end of Mar 2020. (https://cnb.cx/33YO3Q6)
Coming up:
- On (12/11): Expected date of Aramco IPO
- On (12/12): The UK election
- On (12/12-12/13): The EU leaders’ summit
- On (12/15): Scheduled date of Imposition of 15% tariffs on China imports by the US