Morning Review - 102910

8/8/2019 Morning Review - 102910

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Nicholas Colas (Chief Market Strategist): 212 448 6095 or [email protected] Clark: 212 448 6085 or [email protected]

Beth Reed: 212 448 6096 or [email protected]


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U.S. EQUITIES

In earnings land, XOM (+0.8%) topped estimates in reporting a 55% increase in quarterly profit on higher crude prices and improved refining margins, butrevenues fell short of projections. Shares of MMM dropped 6.5% despite earnings and revenue that beat expectations, as the diversified manufacturerraised its full-year outlook due to anticipated earnings dilution stemming from several acquisitions during the quarter. Retailer SKX sank 18.2% onweak earnings and a 70% rise in inventory, while it was also downgraded by at least 2 firms. Meanwhile, MOT (+0.5%) swung a profit after posting aloss in the year-ago quarter, and SYMC added 4.1% despite a fall in net income as results were better than forecasted.

Important Conferences/Corporate Meetings Today:None

Important Earnings Today (with Estimates) From

Source: Thomson ONE

Three Day (High 1187.50; Low 1167.75):Prior Day SPX (High 1189.53; Low 1177.10; Close 1183.67):

S&P Futures

One Day (High 1187.50; Low 1173.50): LNT: $1.07 AGP: $0.81 AON: $0.67 ACI: $0.37 CPN: $0.39 CVX: $2.14 CI: $1.06 CNX: $0.58 CEG: $0.64 D: $1.07

DRC: $0.47 DTE: $0.96 EIX: $1.18 EL: $0.77 HLS: $0.40 HSIC: $0.87 ITT: $0.99 LPNT: $0.66 MGLN: $0.92 MRK: $0.83

NDAQ: $0.46 NWL: $0.41 NEE: $1.43 OGE: $1.55 OHI: $0.45 POM: $0.40 COL: $0.94 SWN: $0.46 WY: $0.11Source: Bloomberg


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FIXED INCOME

Source: Bloomberg

Todays Important Economic Indicators/Events (with Consensus):GDP (8:30am EST): 2.0%

o GDP Price Index: 2.0%Employment Cost Index (8:30am EST): 0.5%Chicago PMI (9:45am EST): 57.6University of Michigan Consumer Sentiment (9:55am EST): 68.0Farm Prices (3:00pm EST)

Source: Bloomberg

Thursday 10-year Treasuries snapped their longest losing streak in 2 years, rising for the first time in 7 days, as investors speculated the Fed remains opento large asset purchases to stimulate the economy. Benchmark yields fell 6 bps to 2.66%, while 2-year note yields also dropped 6 bps in their biggestintraday decline since the end of August. Results for the Treasurys $29 billion 7-year note auction were solid, with coverage of 3.06 times and a highyield of 1.970%, which was 2 bps below the 1:00pm EST bid. Coverage topped last months 3.04 times and was the highest since the issue was reinstatedin February 2009.


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Morning Review - 102910