This is a sample of our Client Morning Brief that arrives just before U.S. markets open.

Equity markets
S&P futures are trading higher this morning, (0.33%)

Asian markets were higher overnight.
Latest             Change        % Change
Tokyo                Nikkei Stock        22497.18         88.30             0.39
Hong Kong       Hang Seng          30809.22        273.08            0.89

European indices are mixed this morning.
Latest             Change       % Change
London             FTSE 100               7662.00         -0.52           -0.01
Frankfurt          Xetra DAX             12972.77        29.71            0.23

* Futures point to a higher opening.   Market is digesting some positive earnings and company news this morning and appears headed for higher opening.

 

Oil Prices
Oil prices are trading higher this morning. Uncertainty remains over the extent to which the renewed sanctions will curb Iran’s oil exports. Historically, sanctions against Iran have cut the country’s exports by around 1 million barrels a day. Heightened tensions in the Middle East following the U.S. withdrawal from the Iran deal, indicating risks of a wider conflict. In Syria, Israel’s military carried out strikes against Iranian targets,after it said Iranian forces based there fired rockets at its soldiers. The U.S. Energy Information Administration on Wednesday reported a 1.5 million barrel  decline in total commercial petroleum stocks for last week-40 million  barrels, or 3.2%, below the five-year average. WTI is currently trading at $71.66 a barrel and Brent Crude is at $77.57 a barrel.    To access Oil news type .Oil into NewsWare.

Economic
On the economic calendar this morning is the monthly CPI numbers which were just released. The consumer price index rose 0.2% in April. The consumer price index has risen 2.5% in the past 12 months – the highest rate in 14 months. Yet the yearly increase in the core rate was unchanged at 2.1%, a softer than expected reading that’s likely to give comfort to a Federal Reserve on inflation watch. To filter the news by economic stories type .economic into NewsWare.

Option Activity –
Bullish option activity in             BB, MBI & YBF
Bearish option activity in           LB, FTR & BMY
To access news related to options type .OPTIONS into NewsWare.

Upcoming Earnings: 

RDFN        Redfin Corp    Earnings after the close    EPS est $-0.44
The “at the money” straddle is priced at 8.86% move ($2.05) move.

In last quarter earnings release the CEO Glenn Kelman said  “Redfin’s 2017 was a year of break-out traffic growth and new products. A major strategic shift toward representing sellers as well as buyers expanded our market presence and influence. Most important, we continued to serve our customers better by far than other brokers. In the fourth quarter, Redfin continued to accelerate its year-over-year gains in market-share, with revenue and net income above our guidance, even as the real estate market began to wane in the closing months of 2017,” continued Mr. Kelman. “We also strengthened our business at a more fundamental level, expanding Redfin Mortgage to new markets, launching a new premium service for home-selling customers, and shipping major upgrades to our agent software that we believe will over time improve both service quality and agent efficiency.”

To see earnings related news on Redfin type RDFN & .ERN into NewsWare.

Company               Ticker       Straddle Price    Dollar move
Air Lease Corp        AL                2.37             $1.05
DROPBOX INC       DBX            9.80              $2.47
Flowserve Corp       FLS             7.78              $3.72
NVIDIA Corp           NVDA          5.65             $14.42
Omeros Corp          OMER        11.25               $1.90
Redfin Corp            RDFN           8.86               $2.05
*Straddle prices do not give a direction, but can be used to determine the dollar move.

Sector Update:
Retail
COST   Costco Wholesale April Same-Store Sales Up 10.9%.
WMT    Deutsche Bank lowers its price target to $87 from $99.
M          Morgan Stanley downgraded the stock to Underweight from equal weight.

Drug Makers
LLY        To acquire Armo BioSciences for $50 per share.
NBRV    SunTrust lowers its price target to $22 from $24.
PRTO    HC Wainwright upgraded the stock to Buy from neutral.

FANG
AAOL    Dropped plans for 1b Irish datacenter over planning delays.
AAPL    U.S Tranportation dept selects Apple to help assess regulation on unmanned aircrafts.
AMZN    RyanAir selects Amazon Web Services for its cloud infrastructure.

Dow 30
WMT    Morgan Stanley lowers it price target to $93 from $99.
DIS      Comcast to include 2.5b breakup fee in any new Fox bid.
JPM     China recievs a JP Morgan application for a joint venture brokerage.

Rumors
EVHC    KKR said to be planning an 11b bid for Encision.
WFC    Shares are trading higher in front of its Investor Day.

*Information displayed above is for informational purposes only. Trading involves the risk of capital and we are not making any predictions on future events or movements in equity prices.  All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is not indicative of future price action.

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