Analytics, 18 October 2019
Daily comment Oct 18
- Wall St opens flat amid mixed economic data from China
- China GDP growth slowed in 3Q
- KO +1.5% on strong organic growth
- AXP +0.4% on 3Q beat
- WMT +0.5%, to take $2.2bn charge for pension plan change
- Saudi Aramco to delay IPO
- GM’ workers to remain on strike for another week
- US tariffs on EU goods took effect todaы
- WTI +0.7%
Market movers:
- Coca Cola (+1.5%): 3Q rev. +15% y/y to $9.5bn vs est. $9.4, helped by zero-sugar and healthier options of its soft drink. Organic rev. +5% y/y vs est. +4.1%. Adj. EPS -3.5% y/y to $0.56 (in line). Guidance reaffirmed. (https://bit.ly/2TgSy4I)
- American Express (+0.4%): The Co. topped 3Q revenue and EPS estimate. Rev. +8.3% y/y to $10.99bn vs est. $10.93bn helped by strong consumer sector. Adj. EPS +10.6% y/y to $2.08 vs est. $2.02. Sees 4Q rev. growth at 8%-10% vs est. 8.9%. (https://amex.co/2J2e6yi)
- Walmart (+0.5%): WMT also beat revenue and profit expectations. 2Q rev. +1.8% y/y to $130.4bn vs est. $128.4bn. WMT sees ~$2.2bn pre-tax charge for Asda Pension change. Adj. EPS $1.27 vs est. $1.09. (https://bit.ly/2oJ5cPr)
- Saudi Aramco decided to delay IPO until December or January in order to get 3Q production figures into pre-IPO assessments. (https://on.wsj.com/2pvsjwG)
- General Motors (+0.4%): Around 49k GM’ employees will remain on strike for another week until the vote on a tentative deal is taken. (https://bit.ly/31oZu2f)
Macro:
- China GDP for 3Q slowed to 6.0% - the slowest pace in ~30 years - from 6.2% q/q vs est. 6.1%. Industrial production for Sep: +5.8% y/y vs est. 4.9%. Sep. retail sales +7.8% y/y (in line). (https://bloom.bg/2VPWU4j)
- Tariffs on $7.5bn EU goods imposed by the US took effect today. The US placed 10% tariffs on EU aircrafts and 25% on whiskey and cheese. (https://bloom.bg/32sIRUO)
Commodities:
- WTI (+0.7%): According to EIA: US crude stockpiles +9.3mn bls in the week ended Oct. 11 vs est. +3mn. Gasoline stockpiles -2.6mn bls, the most since April. (https://bloom.bg/2OZk9Hu)
Coming up:
- A series of Fed talks: Robert Kaplan, Esther George, Neel Kashkari and Richard Clarida are all scheduled to speak today.