Analytics, 22 October 2019
Daily comment Oct 22
- Wall St opens higher on trade optimism, upbeat earnings
- MCD -3.3% on 3Q comps miss
- WeWork to seek emergency finance
- Biogen +36.5% on stellar 3Q, Alzheimer treatment plans
- Brexit plan faces vote in Parliament later today
- WTI +1.5%
Market movers:
- McDonald’s (-3.3%) missed on 3Q revenue and EPS amid intensified competition. Rev. +1.1% y/y to $5.43bn vs est. $5.49bn. 3Q comps +5.9% vs est. +5.7% and +4.20% a year ago. Adj. EPS was flat y/y at $2.11 vs est. $2.21. (https://bit.ly/2p7jxFc)
- WeWork: The Co. board will discuss emergency financing options amid possible takeover by Softbank. The Co. valuation plunged to $8bn. Adam Neumann is expected to step down as WeWork CEO. (https://bit.ly/2N1J1vQ)
- Biogen (+36.5%) topped 3Q revenue and EPS estimate. Rev. +4.7% y/y to $3.6bn vs est. $3.5bn. Adj. EPS +24% y/y to $9.2 vs est. $$8.3. The Co. will file for US drug regulator (FDA) approval of experimental Alzheimer’s therapy. (https://bloom.bg/32CyCx5)
Macro:
- Donald Trump hopes to sign a deal in November at a summit in Chile. He indicated that China has already started agricultural goods purchases. (https://bloom.bg/35VNeK8)
- The House of Commons vote on the latest Brexit plan is scheduled today at 2:00 PM EST (7:00 PM London time.) (https://bloom.bg/2W3pM95)
Commodities:
- WTI (+1.5%): US crude inventory probably increased by 3mn bls last week: Bloomberg survey.
- Chevron received an approval from US Treasury Department to operate in Venezuela until 22 Jan. (https://reut.rs/2N5npP2))
Coming up:
- Snap, Chipotle, iRobot, Skechers and Texas Instruments are among companies to report earnings after the bell.
- On Thu (10/24): ECB monetary policy decision