Analytics, 17 September 2019
Daily comment Sep 18
Daily comment Sep 18
- Wall St opens lower ahead of FOMC decision today
- ADBE -3.5%, FDX -12% after reporting quarterly earnings
- Treasuries rose following Fed REPO market interventions
- US to increase sanctions pressure on Iran
- WTI -1.7%
Market movers:
- Adobe (-3.5%): on disappointing 4Q guidance despite 3Q EPS beat. 3Q Rev. +23.7% y/y to $2.83bn (est. $2.82bn). Adj. EPS +18.5% y/y to $2.05 (est. $1.97). Sees 4Q Adj. EPS at ~$2.25 (est. $2.3); 4Q rev. at ~$2.97bn (est. $3.02). (https://adobe.ly/2knMCKp)
- FedEx (-12%): on 1Q EPS miss, weak guidance. 1Q Rev. -0.3% y/y to $17.05 (est. $17.06); Adj. EPS -11.8% y/y to $3.05. FDX sees FY adj. EPS at $11-$13 (est. $14.73) citing higher costs and weaker economic outlook as well as lower revenue from Amazon. (https://bit.ly/2m0AFum)
Macro:
- Investors are waiting for the rate decision later today. Consensus expects the Committee will lower the rate range by 25bp to 1.75% to 2.0%. The FOMC meeting starts at 2:00 PM (EST). (https://on.wsj.com/2m0xy5E)
- NY Fed intervened short-term funding market with $50bn injection yesterday to boost liquidity. The Fed will conduct another $75bn REPO operation today. 10-y Treasury yields fell to 1.77%. (https://bloom.bg/2kmmKOT)
- US Housing starts for Aug rose to 1.36mn vs est. 1.25mn and 1.19mn prior. (https://bloom.bg/2kqPXZa)
Commodities:
- WTI (-1.7%): Saudis claimed that it will have fully restored production by the end of this month (https://bloom.bg/2kPiMOY)
- Iran denied involvement in the attacks upon Saudi’s Aramco. However, SA will present evidence to the contrary later today. (https://bloom.bg/2lZNlle)
- Trump told Mnuchin to “substantially increase” sanctions on Iran. (https://cnb.cx/2kSyhpk)
Coming up:
- BoJ and BoE decisions on Thurs 9/19