Good morning. A lot going on today. Realize I will not be here
much of the day and I think Steve is also out of town, so just you
guys!!
The
Asian/Pacificmarkets were quiet. China posted a
big gain. Hong Kong also did well. Otherwise most markets were
little changed.
Europe, Africa and the Middle Eastare doing well.
France, Germany, Greece, South Africa, Finland, Switzerland,
Norway, Italy, Belgium, Portugal, Israel and Austria are leading;
Russia and the UAE are down. Futures in the
Statespoint towards a moderate gap down open for
the cash market.
The dollar is down slightly. Oil is up; copper is down. Gold and
silver are flat. Bonds are up.
Stories/News from Seeking Alpha...
There's only one event today that competes for attention in
markets with trade concerns - this year's biggest IPO. Uber has
priced its initial public offering at $45/share - the low end of
its targeted range - for a valuation of $82.4B, hoping its
conservative approach will spare it from the trading plunge
suffered by rival Lyft (NASDAQ:LYFT) since its IPO. The company,
which will list on the NYSE under ticker "UBER," has yet to record
an operating profit, but hopes its four main branches -
ride-hailing, deliveries, B2B (leasing, freight, health) and future
(robo and flying taxis) - will pay off in the longer term. Will
investors think the same?
Futures flat despite tariff hike
DJIA futures fell over 100 points overnight after President
Trump's tariff increase on $200B worth of Chinese goods took effect
after midnight, but those losses have now been erased, while
Shanghai closed up 3.1%. China's Commerce Ministry immediately
announced it would take countermeasures against the American move,
but did not reveal what its response would entail. While trade
negotiators from the two sides today are scheduled to meet for a
second day in Washington, President Trump is already taking steps
to impose a fresh round of tariffs on $325B in Chinese goods that
aren’t currently taxed. If that happens, virtually all Chinese
exports to the U.S. would face 25% tariffs, further ratcheting up
tensions between the world's two largest economies.
CPI offers 'transitory' test
CPI figures this morning will provide the first test of whether
low inflation is indeed what Jerome Powell and his Fed colleagues
are now calling "transitory." The U.S. Labor Department's report
will likely show consumer price index rose 0.4% in April, following
a similar gain in March. Core consumer price inflation, with a
particular eye on clothing and shelter measures, comes after
producer price inflation in April rose less than anticipated.
Brexit stockpiling boosts U.K. growth
The U.K. economy accelerated in the first quarter of the year to
grow by 0.5%, according to preliminary official figures, but the
Office for National Statistics credited the advance to stockpiling
by businesses ahead of the original Brexit date of March 29. The
rate of growth was up from 0.2% in the final three months of 2018.
Meanwhile, there is still no deal between the Conservatives and
Labour on the U.K.'s departure from the EU following another week
of tough Brexit negotiations.
Bezos brings on next space race
Blue Origin (BORGN) founder Jeff Bezos has unveiled the
company's "Blue Moon" lunar lander, which will be able to deliver
payloads to the lunar surface, deploy up to four smaller rovers and
shoot out satellites that orbit the moon. "I love Vice President
Pence's 2024 lunar landing goal," he declared, adding that Blue
Origin can meet that timeline "because we started this three years
ago." Bezos invests more than $1B in Blue Origin each year -
through sales of his Amazon (NASDAQ:AMZN) shares - and is competing
with space ventures like Elon Musk's SpaceX (SPACE) and United
Launch Alliance, a partnership between Boeing (NYSE:BA) and
Lockheed Martin (NYSE:LMT).
Occidental CEO faces shareholders
Occidental Petroleum (NYSE:OXY) CEO Vicki Hollub takes her case
for buying Anadarko Petroleum (NYSE:APC) to stockholders today at
an annual meeting that will be the first chance for OXY investors
to present their views to managers, even if they do not get a say
on the deal. The lack of a vote and the stock’s drop to a 10-year
low of $56.33 on Thursday could also lead to a messy victory party.
Occidental turned the tables on Chevron (NYSE:CVX), which has
withdrawn from the bidding process, by securing a $10B investment
from Berkshire Hathaway (BRK.A, BRK.B) and an $8.8B asset sale to
France's Total (NYSE:TOT).
Boston Beer drinks up Dogfish Head for $300M
The cash-and-stock deal would put Sam Adams beer and Dogfish
Head's 60-, 90- and 120-Minute IPAs and sour beers all under the
same company. It will also see Dogfish co-founder Sam Calagione
join the board of Boston Beer (NYSE:SAM), whose founder, Jim Koch,
is chairman. In the transaction, Calagione and his family will
receive about 406K shares of Boston Beer and Dogfish shareholders
will receive $173M in cash. SAM +1.8% premarket
More news and brews
The Asia business of Anheuser-Busch InBev (NYSE:BUD), which
makes up 18% of group volume, has filed a draft prospectus for a
Hong Kong IPO that could be valued at a minimum of $5B. AB InBev
aims to spin off the business to reduce its net debt, which stood
at $102.5B at the end of December, a figure inflated by its late
2016 purchase of nearest rival SABMiller for around $100B. It also
wants to bring its net debt/EBITDA ratio to around 2x from a
multiple of 4.6 at the end of last year, halving its proposed
dividend and saying payouts will only grow slowly to achieve that
result.
What else is happening...
Contributor Beth Kindig discusses the Uber (UBER) IPO, saying
it's record-breaking for the wrong reasons.
Facebook (NASDAQ:FB) rejects call from co-founder to break up
company into three.
Up over 60% YTD, Bitcoin (BTC-USD) clears $6,000 for first time
since November.
GE's (NYSE:GE) rising bonds offer endorsement of CEO Larry
Culp.
Seven banks face EU antitrust fines for forex rigging.
Volkswagen's (OTCPK:VWAGY) new electric car tops 10,000 orders
in 24 hours.
Is Apple (NASDAQ:AAPL) a buy once again? Contributor MangoTree
Analysis thinks so.
Thursday's Key Earnings
Booking Holdings (NASDAQ:BKNG) +3.8% AH posting a bookings
increase.
Cheniere Energy (NYSEMKT:LNG) +1.8% topping estimates.
Duke Energy (NYSE:DUK) -1.1% hurt by weather, share
dilution.
Dropbox (NASDAQ:DBX) +5.1% AH on paid user growth.
ES futures choppy decline overnight but not down too bad all
things considered, currently down about 12 points, Currently
testing the underside of the primary pivot
Newsletter
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Pre Market
Posted by matt on 10th of May 2019 at 09:16 am
Premarket
Good morning. A lot going on today. Realize I will not be here much of the day and I think Steve is also out of town, so just you guys!!
The Asian/Pacificmarkets were quiet. China posted a big gain. Hong Kong also did well. Otherwise most markets were little changed. Europe, Africa and the Middle Eastare doing well. France, Germany, Greece, South Africa, Finland, Switzerland, Norway, Italy, Belgium, Portugal, Israel and Austria are leading; Russia and the UAE are down. Futures in the Statespoint towards a moderate gap down open for the cash market.
The dollar is down slightly. Oil is up; copper is down. Gold and silver are flat. Bonds are up.
Stories/News from Seeking Alpha...
There's only one event today that competes for attention in markets with trade concerns - this year's biggest IPO. Uber has priced its initial public offering at $45/share - the low end of its targeted range - for a valuation of $82.4B, hoping its conservative approach will spare it from the trading plunge suffered by rival Lyft (NASDAQ:LYFT) since its IPO. The company, which will list on the NYSE under ticker "UBER," has yet to record an operating profit, but hopes its four main branches - ride-hailing, deliveries, B2B (leasing, freight, health) and future (robo and flying taxis) - will pay off in the longer term. Will investors think the same?
Futures flat despite tariff hike
DJIA futures fell over 100 points overnight after President Trump's tariff increase on $200B worth of Chinese goods took effect after midnight, but those losses have now been erased, while Shanghai closed up 3.1%. China's Commerce Ministry immediately announced it would take countermeasures against the American move, but did not reveal what its response would entail. While trade negotiators from the two sides today are scheduled to meet for a second day in Washington, President Trump is already taking steps to impose a fresh round of tariffs on $325B in Chinese goods that aren’t currently taxed. If that happens, virtually all Chinese exports to the U.S. would face 25% tariffs, further ratcheting up tensions between the world's two largest economies.
CPI offers 'transitory' test
CPI figures this morning will provide the first test of whether low inflation is indeed what Jerome Powell and his Fed colleagues are now calling "transitory." The U.S. Labor Department's report will likely show consumer price index rose 0.4% in April, following a similar gain in March. Core consumer price inflation, with a particular eye on clothing and shelter measures, comes after producer price inflation in April rose less than anticipated.
Brexit stockpiling boosts U.K. growth
The U.K. economy accelerated in the first quarter of the year to grow by 0.5%, according to preliminary official figures, but the Office for National Statistics credited the advance to stockpiling by businesses ahead of the original Brexit date of March 29. The rate of growth was up from 0.2% in the final three months of 2018. Meanwhile, there is still no deal between the Conservatives and Labour on the U.K.'s departure from the EU following another week of tough Brexit negotiations.
Bezos brings on next space race
Blue Origin (BORGN) founder Jeff Bezos has unveiled the company's "Blue Moon" lunar lander, which will be able to deliver payloads to the lunar surface, deploy up to four smaller rovers and shoot out satellites that orbit the moon. "I love Vice President Pence's 2024 lunar landing goal," he declared, adding that Blue Origin can meet that timeline "because we started this three years ago." Bezos invests more than $1B in Blue Origin each year - through sales of his Amazon (NASDAQ:AMZN) shares - and is competing with space ventures like Elon Musk's SpaceX (SPACE) and United Launch Alliance, a partnership between Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT).
Occidental CEO faces shareholders
Occidental Petroleum (NYSE:OXY) CEO Vicki Hollub takes her case for buying Anadarko Petroleum (NYSE:APC) to stockholders today at an annual meeting that will be the first chance for OXY investors to present their views to managers, even if they do not get a say on the deal. The lack of a vote and the stock’s drop to a 10-year low of $56.33 on Thursday could also lead to a messy victory party. Occidental turned the tables on Chevron (NYSE:CVX), which has withdrawn from the bidding process, by securing a $10B investment from Berkshire Hathaway (BRK.A, BRK.B) and an $8.8B asset sale to France's Total (NYSE:TOT).
Boston Beer drinks up Dogfish Head for $300M
The cash-and-stock deal would put Sam Adams beer and Dogfish Head's 60-, 90- and 120-Minute IPAs and sour beers all under the same company. It will also see Dogfish co-founder Sam Calagione join the board of Boston Beer (NYSE:SAM), whose founder, Jim Koch, is chairman. In the transaction, Calagione and his family will receive about 406K shares of Boston Beer and Dogfish shareholders will receive $173M in cash. SAM +1.8% premarket
More news and brews
The Asia business of Anheuser-Busch InBev (NYSE:BUD), which makes up 18% of group volume, has filed a draft prospectus for a Hong Kong IPO that could be valued at a minimum of $5B. AB InBev aims to spin off the business to reduce its net debt, which stood at $102.5B at the end of December, a figure inflated by its late 2016 purchase of nearest rival SABMiller for around $100B. It also wants to bring its net debt/EBITDA ratio to around 2x from a multiple of 4.6 at the end of last year, halving its proposed dividend and saying payouts will only grow slowly to achieve that result.
What else is happening...
Contributor Beth Kindig discusses the Uber (UBER) IPO, saying it's record-breaking for the wrong reasons.
Facebook (NASDAQ:FB) rejects call from co-founder to break up company into three.
Up over 60% YTD, Bitcoin (BTC-USD) clears $6,000 for first time since November.
GE's (NYSE:GE) rising bonds offer endorsement of CEO Larry Culp.
Seven banks face EU antitrust fines for forex rigging.
Volkswagen's (OTCPK:VWAGY) new electric car tops 10,000 orders in 24 hours.
Is Apple (NASDAQ:AAPL) a buy once again? Contributor MangoTree Analysis thinks so.
Thursday's Key Earnings
Booking Holdings (NASDAQ:BKNG) +3.8% AH posting a bookings increase.
Cheniere Energy (NYSEMKT:LNG) +1.8% topping estimates.
Duke Energy (NYSE:DUK) -1.1% hurt by weather, share dilution.
Dropbox (NASDAQ:DBX) +5.1% AH on paid user growth.
GoPro (NASDAQ:GPRO) +8.7% AH beating expectations.
Nutrien (NYSE:NTR) -1.2% AH citing unfavorable weather conditions.
Vale (NYSE:VALE) -2% AH hit by dam rupture impacts.
Wynn Resorts (NASDAQ:WYNN) -4.6% AH as operating revenue trailed estimates.
Yelp (NYSE:YELP) -5.6% AH with Q1 profits falling short.
Today's Economic Calendar
8:30 Consumer Price Index
8:30 Fed's Brainard: “Renewing the Promise of the Middle Class”
9:05 Fed's Bostic: Economic Outlook and Monetary Policy
10:00 Fed's Williams Speech
1:00 PM Baker-Hughes Rig Count
2:00 PM Treasury Budget
10:55 Fed's Daly Speech on Sunday
Thanks Matt for the Pre
Posted by rogerv on 10th of May 2019 at 09:27 am
Thanks Matt for the Pre Market preview
ES futures choppy decline overnight
Posted by matt on 10th of May 2019 at 09:18 am
ES futures choppy decline overnight but not down too bad all things considered, currently down about 12 points, Currently testing the underside of the primary pivot