8/8/2019 Morning Review - 110310
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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]
U.S. EQUITIES
Health care firm HUM jumped 3.3% after at least 4 brokerages
raised their price targets on the company, while rivals AET
(+0.5%), WLP (+1.9%) and CI(+4.2%) also advanced. In earnings news,
shares of PFE fell 1.0% on weak sales in emerging markets and
generic competition for Lipitor, despite postingstrong profits due
to cost controls. MA added 2.9% after reporting a 15% rise in 3rd
quarter net income as international spending strengthened,
whilecereal maker K (-2.1%) announced lower earnings and revenue
thanks to weak sales and product recalls. Elsewhere, TM (+0.9%)
said sales in Chinadeclined 6% in October, marking the first
year-on-year drop in a year and a half.
Important Conferences/Corporate Meetings Today:Deutsche Bank
BRICs Metals & Mining Conference London, GBGoldman Sachs Global
Industrials Conference New York, NYOppenheimer & Co. Healthcare
Conference New York, NY
Important Earnings Today (with Estimates) From
Source: Thomson ONE
Three Day (High 1193.00; Low 1173.75):Prior Day SPX (High
1195.88; Low 1187.86; Close 1184.38):
S&P Futures
One Day (High 1193.00; Low 1180.75): AET: $0.67 AOL: $0.44 CAR:
$0.74 BBBB: $0.35 CHTR: $-0.06 CHK: $0.65 CNW: $0.26 CLR: $0.41
CVD: $0.50
CVS: $0.64 DVN: $1.29 EQY: $0.25 GRMN: $0.75 IT: $0.23 THG:
$0.93 HSNI: $0.34 H: $0.04 IPI: $0.11
KIM: $0.26 KKR: $0.49 MGM: $-0.23 TAP: $1.13 MUR: $1.10 NWSA:
$0.25 PZZA: $0.35 PRX: $0.54 PRE: $2.90
PEGA: $0.24 PL: $0.66 PRU: $1.43 PHM: $-0.04 QCOM: $0.51 Q:
$0.09 RKT: $1.49 SIX: $4.91 SE: $0.32
TRK: $0.19 SPX: $1.04 STE: $0.54 TWX: $0.53 RIG: $1.39 WBMD:
$0.22 WLP: $1.58 WFMI: $0.28Source: Bloomberg
8/8/2019 Morning Review - 110310
4/8
4
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]
FIXED INCOME
Source: Bloomberg
Todays Important Economic Indicators/Events (with Consensus):MBA
Purchase Applications (7:00am EST)Challenger Job-Cut Report (7:30am
EST)ADP Employment Report (8:15am EST)Treasury Refunding
Announcement (9:00am EST)Factory Orders (10:00am EST): 1.8% ISM
Non-Manufacturing Index (10:00am EST): 54.0EIA Petroleum Status
Report (10:30am EST)FOMC Meeting Announcement (2:15pm EST)
Source: Bloomberg
Treasuries gained Tuesday ahead of the Feds expected decision on
a second round of quantitative easing at 2:15pm Wednesday. A
Bloomberg surveyrevealed that 29 of 56 economists surveyed think
the central bank will purchase at least $500 billion in additional
assets, while 7 forecasted monthlytotals of $50 to $100 billion
without specifying a total amount. The remained either didnt
quantify their forecast or predicted Treasury purchases of up
to$500 billion. Yields on the long bond dropped 7 bps on the day to
3.93%, as benchmark 10-year note yields declined for the 3rd time
in 4 days, down 4bps t0 2.59%. Meanwhile, 2-year note yields traded
near record lows at 0.34%.
