Global stocks are surging on news that the US President Trump has asked US trade officials to begin drafting a trade agreement with China

Global stocks are surging on news that the US President Trump has asked US trade officials to begin drafting a trade agreement with China

US Stocks

  • Global stocks are surging to end the week on hopes that US – China trade tensions are thawing
  • US index futures are point to a jump in US stocks on the NY open with Dow Jones minis +1.20%, S&P500 minis +0.88% and Nasdaq 100 minis +0.18%
  • According to Bloomberg News, US President Trump has instructed US trade officials to begin drafting a potential trade agreement following a phone call between US President Donald Trump and Chinese President Xi Jinping
  • Change in US Nonfarm Payrolls for October will be released later this morning at 8:30am
  • Disappointing new iPhone sales for Apple (AAPL) may put a cap on gains in the tech indices this morning – there may be an opportunity to buy QQQ this morning if there is a disconnect between the benchmark tech ETF and other major US stocks ETFs like SPY and IWM
  • The VIX is little changed this morning and is currently at 18.65 after closing at 19.34 yesterday
  • FXI December 21 OTM Calls, SPY November 2 OTM Puts, EEM December 21 OTM Calls & Puts, and HYG November 16 & January 2019 OTM Puts are the most actively traded options contracts in the US pre-market
  • US 10-Year Treasury Bonds are lower with yields up 3.24 basis points to 3.1627%
  • The US Treasury 2s-10s Spread has widened 0.61 basis points to 0.29%
  • WTI Crude is currently down -2.48% to USD$63.69/bbl with the Brent-WTI spread up USD$2.76 to USD$8.58/bbl
  • Gold is currently little changed 0.17% to USD$1235.48/oz

Stocks Trending in the News

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

  • Alibaba Group Holding Limited (BABA) shares are trading higher after reporting earnings that largely beat analyst expectations. Alibaba delivers FY2Q2019 adjusted EPS of USD$1.40/share, beating consensus estimates of USD$1.06/share by 31%. Alibaba’s top-line revenue fell just short of analyst forecasts with FY2Q2019 revenue of USD$12.40bn while consensus forecasts called for USD$12.45bn. Alibaba management also pulled-back FY2019 revenue growth guidance by between 4% to 6%. Trump comments on a potential China-US trade resolution has put a further bid into Chinese stocks. Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Apple (AAPL) reported 3Q results that beat expectations but guidance that disappointed. Following the disappointing guidance, Apple declined more that 5%. Apple reported 4Q revenue of USD$62.9 billion while 61.44 billion was expected. Apple’s 3Q EPS of USD$2.91 beat USD$2.78 expected. Apple sold 46.9mn iPhones, 48.4mn was expected. Apple 4Q outlook, however, has come at the low end of expectations. Apple expects 4Q sales of iPhones, which included the key holiday season, to be 46.9mn units while the market is expecting 48.4mn. Notably Apple announced that in the future it will not report individual sales figures on iPhones, iPads and iMac sales. Apple is rated “Attractive” in both our US Large-Cap and US Information Technology Global Top Stock Ideas.
  • Caesars Entertainment (CZR) reported an unexpected profit of 14 cents per share. Caesars Entertainment was expected to report a 1 cent per share loss. Caesars Entertainment reported revenue of USD$2.19 billion, in line with USD$2.21 billion expected. Adjusted ebitdar was USD$600mn. Caesars Entertainment is rated “Unattractive” in both our US Large-Cap and US Consumer Discretionary Global Top Stock ideas.
  • CBS Corp. (CBS) reported 3Q profit of USD$1.24 excluding some items versus USD$1.22 expected. CSB saw a 19% jump in tv-show licensing and as sales at its entertainment unit. CBS expects a surge in ad sales in the next quarter with up to USD$250mn in additional ad sales. CBS is rated is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock ideas.
  • Kraft Heinz (KHC) reported 3Q adjusted EPS that missed estimates. Kraft Heinz reported adjusted EPS of 78 cents while 81 cents was consensus. Kraft Heinz net sales came at USD$6.38 billion, consensus was USD$6.31 billion. Kraft Heinz saw higher costs weigh in results. Kraft Heinz is rated is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock ideas.
  • Mahindra & Mahindra (MM IN) reported a 17% increase in tractor sales for October. Mahindra & Mahindra reported 47,376 units sold versus 39.516 a year ago. Exports were 2% of sales. Mahindra & Mahindra said demand is strong as festival season approaches. Mahindra & Mahindra is rated “Attractive” in our India All-Cap Global Top Stock Ideas.
  • MGM China (2282 HK) surged on news Macau casino revenue rose 2.6%. Total revenue hit a record USD$3.38 billion and the sector is reacting positively. MGM China is rated “Neutral” in our china All-Cap Global Top Stock ideas.
  • Mitsubishi Corp (8058 JP) increased net income guidance to 640 billion yen but still comes blow average consensus of 654 billion yen. Mitsubishi Corp booked a one-time charge of 55 billion yen for losses related to Chiyoda Corp. Mitsubishi Corp expects strong growth from its energy business. Mitsubishi Corp is rated “Unattractive” in our Japan Large-cap Global Top Stock Ideas.
  • Rosneft (ROSN RS) may invite ExxonMobil (XOM) to participate in Far East project called Eastern Petrochemical according to a report in the local Russian press. The report outlines a number of options, one of which is to offer ExxonMobil over 50% of the project, having ExxonMobil control, to avoid US sanctions. Blomberg reports Russian officials mentioned in October that the 2 companies were talking. ExxonMobil is rated “Neutral” in our US Large-Cap Global Top Stock Ideas, Rosneft is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas.
  • Starbucks (SBUX) posted results that beat sales expectations in the US. Starbucks sales in the Americas rose 4% versus 2.8% consensus. Starbucks saw 1% growth in China. Starbucks reported 4Q EPS of 62 cents while 60 cents was consensus. Starbucks is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock ideas.

European Stocks

  • European stocks are advancing this AM and poised to close the week with the biggest weekly advance since December 2016
  • The Euro Stoxx 600 is currently up +1.04%, the FTSE 100 is higher by +0.75%, the DAX has advanced +1.46%, and the CAC 40 has risen +1.3%
  • News that trade tensions between China and the US may be thawing is putting a bid into export-sensitive stocks
  • Eurozone manufacturing PMI dropped to 52.0 for the month of October (final amount)
  • Italian manufacturing shrank for most of October, the greatest negative move in 4 years
  • Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 5.59x
  • Automobiles & Parts (+3.51%), Basic Resources (+2.91%), and Technology (+2.05%) stocks are the top performers in the Euro Stoxx 600 today
  • Food & Beverage (-0.07%), Health Care (-0.06%), and Utilities (+0.11%) stocks are the worst performers in the Euro Stoxx 600 today
  • 77 stocks in the Euro Stoxx 600 are at 4-week highs while 8 stocks are at 4-week lows
  • 6 stocks in the Euro Stoxx 600 are overbought while 16 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 18.05 after closing at 19 yesterday
  • EUR€ is currently up +0.316% against the USD$ to 1.1444
  • GBP£ is currently little changed against the USD$ at 1.3029
  • CHF is currently up +0.471% against the USD$ to 1.0026
  • German 10-Year Bunds are lower with yields up 3.3 basis points to 0.432%
  • UK 10-Year GILTs are lower with yields up 3.3 basis points to 1.488%

Asian Stocks

  • Asian stocks shot up overnight following news that US President Donald Trump has asked US trade officials to draft a potential trade agreement
  • The Nikkei 225 finished up +2.56%, the Hang Seng ended up +4.21%, the Hang Seng China Enterprise up +3.97%, and the CSI 300 was +3.56%
  • The 4%+ jump in the Hang Seng is the biggest one day for the index since CY2015
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2.95x
  • 10 stocks in the Nikkei 225 hit 4-week highs while 29 stocks reached 4-week lows
  • 0 stocks in the Nikkei 225 closed overbought while 22 stocks closed oversold according to the 16-day RSI Measure
  • 6 stocks in the Hang Seng hit 4-week highs while 1 stocks reached 4-week lows
  • 0 stocks in the Hang Seng closed overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • Japan 10-Year Government Bonds are lower with yields up 0.6 basis points to 0.129%
  • JGBs 2s-10s Spread has widened 1.1 basis points to 0.26%
  • JPY¥ is currently little changed against the USD$ at 112.85

submitted by /u/QuantalyticsResearch
[link] [comments]
Source: reddit
Global stocks are surging on news that the US President Trump has asked US trade officials to begin drafting a trade agreement with China

Be the first to comment

Leave a Reply

Your email address will not be published.


*