Analytics, 08 November 2019
Daily comment Nov 8
- Wall St opens lower on US-China trade uncertainty
- DIS +4.7% on upbeat earnings results
- DBX -8.9% despite 3Q beat
- BABA +0.6% on Hong Kong offering plans
- Trump will not impose tariffs on EU cars
- WTI -1.4%
Market movers:
- Dropbox (-8.9%) reported 3Q revenue and profit beat. Rev. +19% y/y (+20% y/y ex-fx) to $428.2mn vs est. $423.6mn. Paying users +13.8% y/y 14.0mn. ARPU +3.8% y/y to $123.15. Adj. EPS +18.2% y/y to 13c vs est. 11c. Sees 4Q rev. of $442-444mn or 17.5%-18% y/y growth. (https://bit.ly/2K0TfvR)
- Disney (+4.7%) topped 4Q revenue and EPS estimate. 4Q rev. +33% y/y to $19.1bn boosted by a 52% increase in studio entertainment revenue. Adj. EPS -27.7% y/y to $1.07 vs est. $0.95. Disney+ is set to launch on Nov 12. and will be distributed on Amazon’s Fire TV, Samsung and LG smart TVs. (https://bit.ly/2NsQrtf)
- Alibaba (+0.6%): According to Reuters, the tech giant is planning its Hong Kong listing in the end of the month. BABA hopes to raise ~$15bn vs $25bn raised during NY IPO back in 2014. (https://reut.rs/32q5pVf)
- According to money managers, Saudi Aramco’ IPO will probably bring less than $1.7tn – the amount Saudi’s crown prince is willing to accept. (https://bloom.bg/32wsPs2)
Macro:
- The House economic advisor confirmed reports of removing tariffs after signing “phase one”. However, trade advisor Peter Navarro said there is no agreement now and the decision depends upon President Trump. (https://bloom.bg/2CnD1IQ)
- Donald Trump will not impose tariffs on EU auto goods next week. (https://bloom.bg/2Q9Vf91)
Commodities:
- WTI (-1.4%): The oil futures dipped mainly on trade uncertainty, supply concerns.
- Goldman Sachs expects OPEC+ will more likely decide to keep output steady on the next meeting. (Bloomberg)
Coming up:
- US Sept wholesale inventories data are due at 10:00 AM (EST).