Company / Analytics

Daily comment Nov 14

• Wall St opens lower on mixed economic data and trade developments
• CSCO -6.3% on soft 2Q guidance
• WMT +2.6% on EPS beat, raised outlook
• DIS showed 10mn streaming sign-ups in 1 day
• NVDA to report after the bell
• Germany narrowly avoided recession
• China IP slowed in October
• WTI +0.8%

Market movers:

• Cisco (-6.3%): The Co. reported Revenue and EPS beat, missed on guidance. 1Q rev. +2% y/y to $13.16bn vs est. $13.07bn. Adj. EPS +12% y/y to $0.84 vs est. $0.79. Sees 2Q rev. to decline 3%-5% y/y vs est. +2.4% y/y; sees EPS at $0.75-$0.77 vs est. $0.79 amid changeling economic environment. (https://bit.ly/2CKNQ8a)
• Walmart (+2.6%): The Co. reported 3Q EPS beat, in-line revenue. 3Q Rev. +2.5% y/y to $128.0bn (in-line). US Comps +3.2% vs est. +3.1%. Adj. EPS +7.4% y/y to $1.16. Raised FY EPS outlook from “slight decrease to slight increase” to “slight increase”. (https://bit.ly/2OaXTbV)
• Peloton (+0.1%): The Co. is planning to launch a cheaper treadmill machine next year; exploring Apps for Amazon Fire TV, Apple watch. (https://bloom.bg/2XfBFK0)
• Disney (-0.2%): Disney+ streaming exceeds expectations with 10mn sign-ups. (https://reut.rs/2qT8jVm)

Macro:

• China said it would allow imports of US qualified poultry (which have been banned since 2015) starting Thursday. (https://bloom.bg/2rLz1jp)
• China Industrial output for October +4.7% y/y vs est. +5.4% and +5.8% prior. Retail sales +7.2% y/y vs est. +7.8%. (https://bloom.bg/2XlvOmo)
• German 3Q GDP +0.1% q/q vs est. -0.1% and prior revised -0.2%. (https://cnb.cx/32Hc5hW)
• US PPI for October +0.4% m/m vs est. +0.3% and -0.3% prior. US weekly jobless claims +15k to 225k in the week ended 9 Nov, 5-m high. (https://bloom.bg/2XcYHB0)

Commodities:

• WTI (+0.8%): OPEC Secretary-General said the US shale forecast for 2020 will likely be revised downwards. (https://bloom.bg/2NPFrXr)
• US crude inventories probably fell 514k bls last week: API.

Coming up:

• Companies to report earnings today: Nvidia.