Analytics, 21 October 2019
Daily comment Oct 21
- Wall St opens higher on trade progress
- UK PM seeks a vote on Brexit deal
- HAL +4.2% on 3Q profit beat
- BA -4.6% after emails showed FAA was misled of 737 MAX safety
- SAP and MSFT partnered in a cloud deal
- WTI -1.7%
Market movers:
- Halliburton (+4.2%): Reported 3Q EPS beat, while missed on revenue. Rev. -10% y/y to $5.55bn vs est. $5.81bn hurt by a slowdown in North American shale drilling. Completion and Production rev. -16% y/y $3.51bn vs est. $3.67bn. 3Q adj. EPS plunged 30% y/y to 35c vs est. 34c. (https://bit.ly/2J7FdI4)
- Boeing (-4.6%): Company’s former test pilot warned about 737 Max safety problems during a simulation back in 2016. That was not disclosed to FAA. The messages have now been turned over to Congress. (https://cnb.cx/32ASDnF)
- SAP (+2.3%) and Microsoft (+0.1%) disclosed 3-y cloud migration offerings for large enterprises. (https://bit.ly/2qv5jyl)
- Wirecard (+6.9%): The Co. hired KPMG as an independent auditor following FT allegations. (https://reut.rs/2BGovM9)
Macro:
- UK parliament forced Boris Johnson to seek another Brexit delay until Jan 31. PM in its turn decided to push for a vote on his latest Brexit plan on Monday. (https://reut.rs/32JlUwR)
- VP Liu He said China and the US have made a significant progress towards reaching an agreement. (https://reut.rs/2BsjuGz)
- President Trump is planning to sign the “phase one” in the middle of November. (https://reut.rs/33MOygp)
Commodities:
- WTI (-1.7%): Hedge fund managers almost tripled their bearish oil bets since mid-Sept. Short selling of WTI rose 7.6% to 114.7k contracts in the week ended Oct. 15 vs 39.9k m/m. (https://bloom.bg/2BvrkQ4)
- Kuwait and Saudi Arabia are expected to sign a Neutral Zone pact to restart oil production within 45 days. The estimated production potential of the area is ~500k bpd. (https://bloom.bg/2Mw1ZvG)
Coming up:
- Fed’s Bowman speech is scheduled at 11:40 AM (EST) today