Analytics, 28 October 2019
Daily comment Oct 28
- Wall St opens higher on trade and political optimism
- T +3% on 3Q EPS beat
- LVMH +0.4%, proposed $14.5bn Tiffany buyout
- MSFT +3%, won 10-y Pentagon contract
- GOOG to report earnings after the bell
- EU agreed to delay Brexit
- Bitcoin +9.5%
- WTI +0.2%
Market movers:
- AT&T (+3%): The Co. topped 3Q EPS analyst estimate. 3Q rev. -2.4% y/y to $44.59bn vs est. $45.04bn. 3Q wireless postpaid net adds +101k (+13%) y/y vs est. -84k. Adj. Ebitda $15.08bn vs est. $15.27bn. 3Q FCF -4.2% to $6.2bn vs est. $5.70bn. 3Q adj. EPS +4.4% y/y to 94c vs est. 93c. Separately, T plans to separate chairman and CEO roles upon Randall Stephenson transition in 2020. (https://soc.att.com/31UksWU)
- LVMH sent a takeover proposal to Tiffany, offering $120 a share in cash (~30% premium at a moment of proposal). Tiffany is reportedly working on response. (https://on.wsj.com/333sjmJ)
- Microsoft (+3%): Pentagon awarded to the company a 10-y $10bn cloud contract. (https://reut.rs/2BULF13)
- Bitcoin (+9.5%): A Chinese chief of Foreign exchange regulator indicated the possibility of using blockchain and AI in cross-border trade finance. (https://bloom.bg/2MW1POp)
Macro:
- US Trade Representative said on Friday the US and China were close to finalization of some sections of the agreement. (https://cnb.cx/2Wk1B6B)
- EU agreed to delay Brexit until 31 Jan. UK PM is pushing a vote on early general election. (https://bloom.bg/2qRm8DV)
- Fed will meet on Wed to decide on interest rate cuts. The CB is expected to cut the rate by 25bps, the 3rd reduction during the year. (https://bloom.bg/34iCXpV)
Commodities:
- WTI (+0.2%): Net-long positions on WTI rose 8.5% to 93.8k contracts in a week ended Oct. 22. (https://bloom.bg/347zEla)
Coming up:
- Among companies to report earnings this week: Apple, Alphabet, Facebook, Pfizer, Airbus.
- On Wed (10/30): US 3Q GDP data are due
- On Fri (11/1): US jobs report for Oct