Analytics, 17 October 2019
Daily comment Oct 17
- Wall St opens higher amid ease of political and trade tensions
- Brexit deal with EU reached in Brussels
- NFLX +6% on subscribers’ growth
- MS +2.9% on profit beat
- IBM -6.1% on revenue miss
- TSLA +1% on China approval
- GM reached an agreement with UAW
- WTI -0.7%
Market movers:
- Netflix (+6.0%): The Co. reported better than expected paying subscribers adds. Rev. +31% y/y to $5.24bn vs est. $5.25bn. Adj. EPS +42% y/y to $1.47 vs est. $1.23. Streaming paid net change +6.77mn vs est. +6.80mn. NFLX sees 4Q streaming paid net change +7.60mn vs est. +9.32mn. Sees 4Q rev. $5.44bn vs est. $5.51bn. Sees 4Q EPS 51c vs est. 82c. (https://reut.rs/31nENnc)
- Morgan Stanley (+2.9%): MS beat 3Q profit estimates. Net rev. +1.6% y/y to $10.03bn vs est. $9.59bn, helped by bond trading and M&A advisory fees. FICC rev. +21% y/y, Equities rev. - 1.3% y/y, IB rev. +4.3% y/y, wealth management -0.9% y/y. Adj. EPS +3.4% y/y to $1.21 vs est. $1.10. (https://reut.rs/32p37qn)
- IBM (-6.1%): The Co. missed revenue estimates due to weakness in European markets. Rev. -3.9% y/y to $18.03bn vs est. $18.22bn. Adj. EPS -21% y/y to $2.68 vs est. $2.67, helped by ax benefit. IBM still sees FY19 adj. EPS at least $12.80 vs est. $12.81. (https://reut.rs/2MOBrV3)
- Honeywell (+2.3%): The Co. missed on revenue and slashed FY forecast. Rev. -15.6% y/y to $9.09bn vs est. $9.11bn. Organic sales + 3% y/y vs est. +3.5%. Adj. EPS +2.5% y/y to $2.08 vs est. $2.01 thanks to solid margins. Sees FY sales $36.7-36.9bn, saw $36.7-37.2bn, est. $36.97bn. Sees FY EPS $8.10-8.15, saw $7.95-8.15, est. $8.09. (https://reut.rs/33IuR9H)
- Facebook (+0.4%): FB hopes to get 100 banks and financial firms as partners after addressing regulatory concerns. (https://reut.rs/2qeFQJk)
- Tesla (+1.0%): TSLA formally received Chinese approval to commence manufacturing in the country. (https://reut.rs/2Mnp4jP)
- General Motors (-0.6%): The company and the United Auto Workers union (UAW) reached a tentative agreement for a new 4-y labor deal. (https://reut.rs/32mgjw7)
Macro:
- UK PM Johnson reached a Brexit agreement with EU, however, DUP claimed it would not support the deal. (https://on.wsj.com/32pKthZ)
- US Trade representative Mnuchin said the US and China are working together on text of “phase one”. (https://bloom.bg/2BhWQRj)
Commodities:
- WTI (-0.7%): US crude stockpiles rose by 10.5mn bls to 432.5mn bls last week (vs est. +2.8mn): API. Official data are due later today.
Coming up:
- Fri (10/18): China 3Q GDP data are due