Analytics, 16 December 2019
Daily comment Dec 16
- Wall St opens higher on trade hopes
- China releases upbeat economic data; targets 6% economic growth
- DIS +0.6% on Frozen II sales, expansion plans
- NVDA +1.1% on Jefferies PT target raise
- BA -3.7% on possible 737 Max production halt
- WTI +0.2%
Corporate news:
- Nvidia (+1.1%): Jefferies raised Nvidia PT from $250 to $255 (~12.7% upside), citing Co’ potential in AI and gaming. Reiterated “Buy” rating. https://bit.ly/2qVPjGe
- Alphabet (+0.4%): DoJ is reviewing Google’s shopping practice as part of its broader antitrust probe. https://bloom.bg/2Pqzhh1
- Disney (+0.6%): The Frozen II has become the 6-th Disney movie that that gathered over $1bn in box office this year. https://cnb.cx/2EltXVI
- Disney plans to expand Disney+ streaming to France as soon as March in a deal with Canal+. https://bit.ly/2RYxnGi
- Boeing (-3.7%): The Co’ management is considering suspension or shrinking 737 Max production. https://on.wsj.com/2PRb3LR
Macro:
- Both sides officially confirm “phase one” trade deal that is expected to nearly double US exports to China over the next two years. Under the partial deal, the US halted imposition of December tariffs and will reduce 15% Sept tariffs to 7.5%. China will make similar move also increasing imports from the US. https://bloom.bg/36CYx9B
- China is planning to set a lower economic growth target of ~6% in 2020 vs 6.0%-6.5% this year. https://reut.rs/2Pp9Nk4
- China retail sales for Nov: +8.0% y/y vs est. +7.6% and 7.2% prior. Industrial production +6.2% y/y vs est. +5.0% and +4.7% prior. https://reut.rs/2M1P1oz
- German IHS Markit’s manufacturing PMI unexpectedly fell to 43.4 in December from prior 44.1 vs est. 44.6. https://bloom.bg/38N2daS
Commodities:
- WTI (+0.2%): Hedge-fund managers increase net-long bets WTI by 52%, the most in 3 years in the week ending Dec. 10. https://bloom.bg/2EjF95v
- Bloomberg’ strategist said the recent announcement of production cuts by OPEC+ is “weaker than it looks”. https://bloom.bg/2rPKQFq
- Preliminary trade deal should help to stabilize the oil market, Eni CEO said. https://bloom.bg/2PS9JIC
Coming up:
- On Thu (12/19): Policy decisions by BoJ and BoE.