Analytics, 12 December 2019
Daily comment Dec 12
- Wall St opens higher after Fed decision to put the rate on hold
- It’s UK election day
- LULU -5.1% despite 3Q beat
- SBUX +1.6% on rating upgrade
- iPhone shipments to China dropped in November
- WTI +0.4%
Corporate news:
- Lululemon (-5.2%) reported 3Q comps and EPS beat, missed on guidance. 3Q Revenue +22.5% y/y to $916.14mn vs est. $899.7mn. Comps +17% y/y vs est. 14.4%. Adj. EPS +28% y/y to $0.96 vs est. $0.93. Sees 4Q EPS of $2.10-$2.13 vs est. $2.13. CEO told analysts LULU saw “record performance” during the Thanksgiving weekend. https://bit.ly/34fi2n4
- Starbucks (+1.6%): JP Morgan analyst raised his recommendation on the SBUX to “overweight” from “neutral”, setting a PT at $94 (~8.5% upside). – Bloomberg
- Apple (-0.4%): iPhone shipments in China plunged 35.4% y/y in November, according to Credit Suisse. https://cnb.cx/2PfMBVB
- Tesla (+1.3%): The carmaker is planning to raise imported Model 3 prices in China from January. https://reut.rs/36wFu0O
- Twitter (-0.1%): The Co. disclosed plans to build “decentralized standard” for social networks. https://reut.rs/34hRFNg
Macro:
- President Trump is scheduled to meet today with top trade advisors to discuss planned 15% tariffs imposition on Chinese goods. https://reut.rs/2YOnagY
- Fed left interest rates unchanged, indicated it is not planning rate hikes during 2020. https://bloom.bg/34b9opz
- UK voting ends at 5:00 PM (EST) with the result due at midnight. The latest polls showing Conservative party lead over the Labour party. https://bloom.bg/34izJSx
Commodities:
- WTI (+0.4%): US crude inventories unexpectedly rose by 899k bls last week: EIA. https://bit.ly/38zUAnN
- According to IEA, recently announced by OPEC+ deeper production won’t prevent a surplus in early 2020. https://bloom.bg/38zjbJl
Coming up:
- Companies to report earnings today: Adobe, Broadcom, Oracle
- 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