Analytics, 25 November 2019
Daily comment Nov 25
- Wall St opens higher on trade hopes
- China tightened restrictions on intellectual property theft
- UBER lost its license in London
- LVMH to acquire TIF for $16.2bn
- NVDA +4.1% on rating upgrade
- TSLA +2% on upbeat cybertruck pre-orders
- WTI +0.4%
Market movers:
- Tesla (+2%): Cybertruck pre-orders have reached 200k over the weekend. (https://bit.ly/2Dad7sz)
- Uber (-2.1%): The Co’ license to operate in London has not been renewed. Uber has time to appeal and its service will not immediately be blocked. (https://bit.ly/2XLDPRI)
- Tiffany (+5.7%): The co. accepted a take-over proposal by LVMH. LVMH will acquire Tiffany for $135/sh in cash (~$16.2bn in total value). The transaction is expected to close in the middle of 2020. (https://cnb.cx/2QO9pNd)
- Netflix (+0.1%): Wells Fargo downgraded the stock to “underperform” from “market perform” cutting PT down from $308 to $265 (~14% downside) (https://cnb.cx/35wDfKb)
- Nvidia (+4.1%): Morgan Stanley raised the Co. rating to “overweight” from “equal-weight”. PT set to $259, a 19% upside. (https://cnb.cx/2XLHcbk)
- Disney (-0.1%): “Frozen II” hauled in $350mn for its first three days following premiere, including US sales of $127mn and $223mn internationally. Analysts expected ~$100mn-$140mn. (https://cnb.cx/33eNhy1)
Macro:
- China regulators increased penalties and lowered criminal threshold for intellectual property theft. (https://bloom.bg/2XLLVK6)
- According to US national security advisor, US-China “phase one” agreement still possible by the end of the year. (https://reut.rs/2QLn4Ve)
Commodities:
- WTI (+0.4%): Hedge fund managers cut their net long bets on WTI by 13% in the week ended Nov. 19. (Bloomberg)
- OPEC+ delayed the date of a group meeting to Dec. 5. (https://bit.ly/35B5dVo)
Coming up:
- Jerome Powell will give a speech at 7:00 PM (EST) in Rhode Island.