Analytics, 24 September 2019
Daily comment Sep 25
Daily comment Sep 25
- Wall St opens flat amid trade hopes despite political pressure
- AVGO -3.5% on convertible prefs offering
- eBay -0.6% as CEO stepped down
- BABA +1% on creation of an AI chip
- PM +6.0%, to merge with Altria
- Trump faces impeachment investigation
- China to buy more US pork
- Aramco to announce IPO plans in Oct
- WTI -2.5%
Market movers:
- Broadcom (-3.5%): The Co. announced $3.25mn mandatory convertible preferred stock offering (vs planned $3mn). The proceeds will be used to reduce AVGO debt. (https://prn.to/2mA3aj8)
- Alibaba developed a new AI chip to enhance services for its cloud computing division. (https://reut.rs/2l2oDAP)
- eBay (-0.6%) following the CEO Devin Wening ‘decision to leave the company. The company reiterated forecast for FY19 revenue and adj. EPS growth. (https://prn.to/2mFZix6)
- Aramco will unveil IPO plans next month. The Co. is expected to go public in November. (https://bloom.bg/2nbYH6t)
- Philip Morris (+6%) and Altria (+0.1%) completed merger talks. The combined tobacco giant will have a value ~$200bn. (https://on.ft.com/2lvJ1KX)
- Nike (+6%) as 1Q revenue and profit beat market expectations. Rev +7.2% y/y to $10.66bn vs est. $10.44bn. Gross margin was 45.7% vs est. 44.45%. EPS +27.7% y/y to 86c vs. 70c. Tax helped with an effective rate of 12.4%. NAm rev. +4% y/y (excl. FX), down from +7% in 4Q, EMEA +12% (up from +11% in 4Q), and China +27% (up from +24% in the prior Q). (https://reut.rs/2kY1Oy0)
Macro:
- The House opened a formal inquiry into President Trump impeachment following the news that Trump pressed Ukrainian president to investigate Joe Biden’s son business activity. Trump is expected to release the transcript of his call with the Ukrainian counterpart later today. (https://on.ft.com/2lvZZZk)
- According to Bloomberg, China will make more US pork purchases in a move to ease trade tensions. (https://bloom.bg/2n5heBn)
- UK PM returned to the Parliament after the Court decision. Investors see unlikely initiation of confidence vote against PM ahead of US summit on 17th Oct as well as the promise to deliver Brexit by 31st Oct. (https://bloom.bg/2luqsXy)
Commodities:
- WTI (-2.5%): after Saudi Aramco said it’s restoring facilities ahead of schedule. (https://bloom.bg/2kWbxou)
- US crude stockpiles rose $1.38mn bls last week: API.
Coming up:
- Chicago Fed President will give a speech over monetary policy in Illinois later today.
- On Fri (9/27) -US Core PCE data is due.