Analytics, 26 September 2019
Daily comment Sep 27
Daily comment Sep 27
- Wall St opens flat amid US political turmoil and warning signs on EU economy
- MU -6.5% on weak 1Q outlook
- AAPL +0.2%, to seek theater deals
- TSLA +0.8% on 3Q deliveries hopes
- US personal spending slowed in Aug
- WTI -1.8% on easing tensions in Middle East
Market movers:
- Micron (-6.5%) after 1Q guide fell short of expectations. 4Q rev. -42.3% y/y to $4.87bn vs est. $4.56. Gross margin was 30.6% vs est. 29.8%. EPS -84.1% y/y to 56c vs est. 48c. MU guides 1Q rev of $5.0bn (+/- $200mn) vs est. $4.87bn, gross margin of 26.5% (+/- 1.5%) vs est. 28.34%, and EPS 46c (+/- 7c) vs est. 48c. (https://bit.ly/2nf9sVq)
- According to WJS, Apple is in talks to show its own-production feature films in theaters before releasing them on Apple TV+. (https://on.wsj.com/2mfYgI7)
- Tesla (+0.8%): As per Elon Musk’ leaked e-mail, Tesla has “a shot” at delivering 100k cars in 3Q and the company will roll out a software update for watching movies and playing games in cars. (https://reut.rs/2lrBlJq)
- Toyota will raise its stake in Subaru to 20% from 17%. (https://reut.rs/2natJvi)
Macro:
- During the closed meeting Trump made remarks towards the whistleblower, referring to him as a “spy”. (https://bloom.bg/2lFSpM0)
- According to CNBC, principal-level US/China trade negotiations will take place in Washington on Oct. 10-11. (https://cnb.cx/2nvLTb5)
- US Core PCE deflator for Aug: +1.8% (in line with est.;) Personal income +0.4% (in line) and personal spending +0.1% (vs est. +0.3%). (https://reut.rs/2lFgFhl)
- China’s Aug industrial profits -2% y/y vs +2.6% in July.
- Eurozone economic confidence for Sep came at 101.7 vs est. 103.0 while consumer confidence was in-line at -6.5 vs est. -6.5. (Bloomberg)
- BoE policy maker Saunders said rate cuts may be needed even if there is a Brexit deal.
Commodities:
- WTI (-1.8%): Saudi Arabia agreed to impose a partial cease-fire in Yemen. – Dow Jones.
- Iran installed new powerful centrifuges increasing nuclear capacity even further. – International Atomic Energy Agency (https://bloom.bg/2lvLl4A)