morning review - 110510

8/8/2019 Morning Review - 110510

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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

Energy stocks were among the top performers Thursday, as oil prices hit a 6-month high above $86 a barrel. HAL (+3.6%), SLB (+4.9%), CVX (+3.0%),COP (+3.1%) and XOM (+2.1%) all showed substantial gains. In tech news, QCOM added 5.8% after it announced unexpectedly strong profits and atleast 6 brokerages raised their price targets on the firm. Also, MSFT (+0.4%) lifted its sales forecast for video game device Kinect, and Baird initiatedcoverage of AAPL (+1.8%) with an Outperform rating. On the earnings front, TWC (+4.5%) posted a better-than-expected rise in net income afteradding more Internet customers, while WFMI jumped 15.1% as it beat Street estimates on strong sales in established markets.

Important Conferences/Corporate Meetings Today:BancAnalysts Association of Boston Conference Boston, MA

Important Earnings Today (with Estimates) From

Source: Thomson ONE

Three Day (High 1218.75; Low 1179.50): Prior Day SPX (High 1221.25; Low 1198.34; Close 1221.06):

S&P Futures One Day (High 1218.75; Low 1195.25): AIG: $1.35

BZH: $-0.47 COKE: $1.07 CVH: $0.67 DISH: $0.41 FIG: $0.11 KG: $0.19 NWN: $-0.31

PSMT: $0.34

REVU: $-0.13 TW: $0.89 VTR: $0.71 WPO: $6.89 WSC: $2.09

Source: Bloomberg


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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]

FIXED INCOME

Source: Bloomberg

Todays Important Economic Indicators/Events (with Consensus): Employment Situation (8:30am EST)

o Nonfarm payrolls: +60Ko Unemployment rate: 9.6%o Average hourly earnings: 0.2%o Average workweek: 34.2 hours

Pending Home Sales Index (12:30pm EST) Consumer Credit (3:00pm EST): $-3.0B

Source: Bloomberg

Treasuries rose Thursday, pushing 2- and 5-year note yields to record lows after the central banks announcement on Wednesday that it will purchaseanother round of assets. Five-year yields dropped 8 bps to end the day at 1.02% after sliding to an all-time low of 1.0148%, while the benchmark yield fell11 bps intraday before ending at 2.48%. The governments $10 billion TIPS auction drew a yield of 0.409% and saw strong coverage of 2.91 times versus2.80 times at the September 2 sale. Meanwhile in a Washington Post opinion piece, Fed Chairman Ben Bernanke assured that the central banks additionalasset purchases should stimulate economic growth and higher stock prices and that concern over significant increases in inflation is overstated.

Noteworthy Speakerso Charles Plosser (8:30am EST)o Thomas Hoenig (9:30am EST)o Sandra Pianalto (9:45am EST)o Richard Fisher (11:15am EST)o Ben Bernanke (2:00pm EST)o James Bullard (2:45pm EST)o Jeffrey Lacker (4:15pm EST)


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morning review - 110510

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