Daily comment Oct 30

Analytics, 30 October 2019

Market movers:

Advanced micro devices (+0.4%): reported in-line profit, revenue miss. 3Q rev. +9.2% y/y to $1.80bn vs est. $1.81bn. Computer and graphics rev. +36% q/q to $1.28bn vs est. $1.18bn. Adj. EPS +38.5% y/y to 18c (in-line with est.). Says 4Q rev. increase expected to be driven by Ryzen, EPYC and Radeon product sales. (https://bit.ly/2PCtvt0)
GE (+9.5%) reported upbeat EPS, raised FY guidance. 3Q rev. -21% y/y to $23.36bn vs est. $28.77bn. Adj. industrial FCF was $650mn. 3Q adj. EPS +7% y/y to 15c vs est. 12c. Sees FY adj. industrial FCF of $0 to $2bn, saw -$1.0bn to $1bn, vs est. $102.3mn. (https://invent.ge/2NqoqBn)
Amgen (-1.2%) reported 3Q profit beat, raised FY rev. and EPS forecast. 3Q rev-2.8% y/y to $5.74b vs est. $5.63bn. Adj. EPS -0.9% y/y to $3.66 vs est. $3.53. Sees FY adj. EPS $14.20-$14.45, saw $13.75- $14.30, est. $14.40; Sees FY rev. $22.8bn-$23bn, saw $22.4bn-$22.9bn vs est. $22.80bn.
Fiat Chrysler confirmed merger talks with PSA Group (Peugeot). (https://on.wsj.com/2WsIzLb)

Macro:

US 3Q GDP +1.9% q/q vs est. 1.6% and 2% prior; Core PCE +2.2% q/q (in line with est.); Personal consumption +2.9% q/q vs est. +2.6%. (https://bloom.bg/2NpQFjJ)
According to Reuters, the “phase one” of the US-China trade agreement might not be completed before summit in Chile next month due to disagreement on the volume of US farm goods purchases. (https://reut.rs/2JyMbpI)
The Fed will announce its interest rates decision at 2:00 PM (EST), and Jerome Powell will hold a press conference at 2:30 PM.

Commodities:

WTI (-0.3%): US crude inventories rose by 1.22mn bls last week: API.
Saudi Arabia sent informal request to Brazil to join OPEC. (Bloomberg)
Saudi Crown Prince will determine the timing of Aramco’s IPO, kingdom’s EnMin said. (https://bloom.bg/2ovdVEF)

Coming up:

Companies to report earnings after the market close: Apple, Facebook, Starbucks, Etsy, Twilio.
On Fri (11/1): US jobs report for Oct

Company / Analytics