Analytics, 12 September 2019
Daily comment Sep 13
Daily comment Sep 13
- Wall St opens mixed despite signs of trade progress
- House committee starts big tech antitrust review: FB -0.2%, AAPL -1.5%, GOOG -0.3%, AMZN -0.2%; AVGO -3.5% on cautious demand outlook
- China and South Korea markets closed for a holiday
- WTI +0.5%
Market movers:
- Facebook (-0.2%), Amazon (-0.2%), Apple (-1.5%) and Alphabet (-0.3%) are set to provide documents to House committee in regards with antitrust review. (https://cnb.cx/2kfZKkJ)
- Meanwhile, Goldman Sachs lowered AAPL (-1.5%) TP from $187 to $165 (25% downside), keeping a “neutral” rating. GS sees deteriorating hardware profit margins as a result of TV+ free trial. (https://cnb.cx/2maf7eV)
- According to Bloomberg, Square (-1.9%) is currently testing a new feature on its Cash App that will allow fee- free stock trading. (https://bloom.bg/2lM437R)
- Broadcom (-3.5%) on cautious FY guidance. 3Q Rev. +8.8% y/y (in line with est.). Gross margin was 71% vs 67.3% y/y. Adj. EPS+3.6% y/y to $5.16. AVGO reiterated FY guidance, however, gave a cautious forecast for semiconductor market demand. (https://bit.ly/2kbfPIe)
Macro:
- Trump administration is open for interim trade agreement ahead of the early October meeting. (https://on.ft.com/2lRle7H)
- China will stimulate local firms to buy US agricultural products such as soybeans and pork. (https://bloom.bg/2mbiIte)
- US Aug retail sales +0.4% m/m vs est. +0.2% and +0.7% in July. Ex-auto data flat m/m vs est. +0.1%. (https://bloom.bg/2kbe5ia)
Commodities:
- WTI (+0.5%) on positive trade developments despite oil oversupply concerns.
Coming up:
- PM Johnson will meet EU President Jean-Claude Juncker on Mon 9/16.
- FOMC rate decision on Wed 9/18