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 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.
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.
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.
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.
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.
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.
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.
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.