Company / Analytics

Daily comment Nov 15

• Wall St opens higher on trade hopes
• NVDA +0.6%, JD +4.3% on 3Q EPS beat
• AMZN to challenge Pentagon JEDI decision
• US retail sales recovered in October
• Hong Kong sees first annual recession in 10-y
• WTI +0.2%

Market movers:

• Nvidia (+0.6%) reported 3Q revenue and profit beat, soft guidance. Sees strong demand for chips used in data centers in 4Q. (https://bit.ly/2qfeK5i)
• JD (+4.3%) reported 3Q revenue and EPS beat helped by strong online sales. (https://bit.ly/2QnwXrY)
• Apple (+1%) hired one of President Trump’ closest allies to lobby its interest in order to avoid tariffs increase. (https://cnb.cx/32SGk5r)
• Alibaba (+0.5%) capped the 12.5mn shares available to individual investors at HK$188 a piece (4% premium to NY). (https://bloom.bg/2NPZcOo)
• Italy plans to introduce 3% web taxes on digital companies such as Facebook, Google and Amazon beginning from 2020. (https://reut.rs/2Qmlol2)
• US Defense Secretary rejected Amazon WS CEO’ notion of bias in awarding Microsoft with JEDI cloud contract. (https://reut.rs/32QMXoU)
• Earlier, Amazon (+0.1%) announced plans to protest Pentagon contract award to Microsoft (+0.4%). (https://on.wsj.com/2Oalh9m)

Macro:

• White House economic adviser Larry Kudlow signaled trade talks over the first phase are near the final stage. (https://bloom.bg/2qTwnri)
• US Retail sales in October +0.3% m/m vs est. +0.2% and -0.3% prior. Ex-fuel and auto: +0.3% m/m vs est. +0.4% and -0.1% in September. (https://reut.rs/2rG6Bai)
• Hong Kong 3Q GDP -3.2% q/q (-2.9% y/y) – in-line with preliminary reading. Forecast for FY growth revised down to -1.3% from 0 -1% growth. (https://reut.rs/32OG4EE)

Commodities:

• WTI (+0.2%): US stockpiles + 2.22mn bls last week: EIA (US government data). (https://bit.ly/2pl05Fc)
• IEA raised forecast for non-OPEC supply growth for 2020 by 100k bpd. (https://bloom.bg/2qkl0c3)