Analytics, 09 October 2019
Daily comment Oct 9
- Wall St opens higher on trade hopes
- LEVI +2% on 3Q beat
- JNJ -1.2% on $8bn court ruling
- China is open for a conditional trade deal
- Fed may expand balance sheet again
- WTI +1.5% on signs of easing trade and political tensions
Market movers:
- Netflix (-1.1%): The co. signed a deal with an Italian media company to produce movies in Italy. NFLX plans to open offices in the country in order to pay taxes there. (https://reut.rs/2Ovmw4D)
- Levi Strauss (+2%): On 3Q EPS and revenue beat. Rev. +4% y/y to $1.45bn vs est. $1.44bn. Adj. EPS -8.8% y/y to $0.31 vs est. $0.26. Guidance reiterated. (https://bit.ly/2Vrfv6j)
- Johnson & Johnson (-1.2%): Philadelphia court ruled one of the J&J units to pay $8bn in damages after it failed to adequately warn about side effects of its drug Risperdal. (https://cnb.cx/2Izxh20)
- Saudi Aramco plans to publish IPO prospectus by the end of the month. (https://on.wsj.com/31XMDVO)
Macro:
- China is ready for a partial trade deal as long as no more tariffs will be imposed by the US, Bloomberg reported. (https://bloom.bg/2Oy3nis)
- Yesterday US imposed visa limits for China officials who is responsible for Muslims abuse in one of the provinces. (https://reut.rs/33io8Dg)
- China in its turn planning visa restrictions for US citizens tied to anti-China groups. (https://reut.rs/33io8Dg)
- Jerome Powell said Fed will resume purchases of Treasury securities, adding the move should not be considered as QE. (https://bloom.bg/30Vsxdp)
- Several UK ministers are ready to quit as Boris Johnson leads the country to a “no-deal”. (https://reut.rs/33fUYVa)
Commodities:
- WTI (+1.5%): Oil rose mostly on trade hopes ahead of high-level meeting on Thursday.
- US crude inventories rose 4.13mn bls last week: API. (Bloomberg)
Coming up:
- On Thu (10/10): The US CPI data are due