TradeTheNews.com :
Earnings Season Opens, Key Central Banks Talk Normalization and the Equity
Rally Rolls on
Fri, 13 Oct 2017 16:05 PM EST
The party for US stock indices extended with the Transports leading the way
higher throughout much of the week. Airline stocks climbed after managements’
indicated the industry weathered the September storms better than originally
thought. The September FOMC minutes along with a deluge of commentary affirmed
the Fed remained firmly on a charted course towards a December rate hike, but
Friday’s softer than expected CPI figures supported the notion normalization
will remain agonizingly slow. Global growth shined and officials from around
the globe touted the synchronized pick up, while the Chinese import figures on
Friday suggested potential acceleration. President Trump followed through with
another of his election pledges when he essentially began the process of
withdrawing from the 2015 Iranian nuclear deal. WIT crude prices climbed more
than 3% on the week finishing back above the 200-day moving average. The
Greenback largely stabilized before drifting lower late in the week along with
Treasury yields following the disappointing inflation readings. For the week
the S&P added 0.2%, the Dow gained 0.4% and the NASDAQ rose 0.2%.
In corporate news this week, JPMorgan and Citi kicked off earnings season by
reporting a top-line beat, but shares traded down as some analysts saw weakness
in loan volume growth and potential warnings signs in credit card charge offs.
Wells Fargo also drifted lower after posting a miss on revenue and noting
higher legal costs. Micron’s announced sale of $1.2B in new shares was received
positively, bringing in so many buyers that shares priced at $41 instead of
$40. Honeywell announced it would spin-off its homes product portfolio and
global distribution unit into two separately publicly traded companies, but
will retain its aerospace unit.
SUNDAY 10/8
*(CN) CHINA SEPT CAIXIN SERVICES PMI: 50.6 V 52.7 PRIOR (21-month low)
MONDAY 10/9
*(FR) BANK OF FRANCE SEPT BUSINESS SENTIMENT: 104 V 105E
*(CN) CHINA SEPT FOREIGN RESERVES: $3.1085T v $3.100Te (8th straight increase)
*(EU) EURO ZONE OCT SENTIX INVESTOR CONFIDENCE: 29.7 V 28.5E (highest reading
since 2007)
HON Reportedly readying to spin off non-core assets into two new entities -
press
OPEC Sec Gen Barkindo: Sees 2017 global oil demand growth at 1.45M bpd, sees
2018 demand growth at 1.4M bpd
TUESDAY 10/10
LG Electronics reports prelim Q3 (KRW) Op 516.1B v 283.2B y/y, Rev 15.2T v
13.2T y/y
(FR) FRANCE AUG INDUSTRIAL PRODUCTION M/M: -0.3% V +0.4%E; Y/Y: 2.4% V 1.5%E
(UK) AUG INDUSTRIAL PRODUCTION M/M: 0.2% V 0.2%E; Y/Y: 1.6% V 0.9%E
(DE) German IG Metall union recommends 6.0% pay increase for metal and
electrical industry
WMT Affirms FY18 $4.30-4.40 v $4.38e (prior $4.30-4.40); Launches new $20B
share repurchase program (8.3% of market cap) - investor day slides
IMF UPDATES WORLD ECONOMIC OUTLOOK (WEO): Raises 2017 global growth forecast
from 3.5% to 3.6%; Raises 2018 global growth forecast from 3.6% to 3.7%
(ES) Spain pro-independence Popular Unity Candidacy party (CUP) has reportedly
rejected the text of Catalan President Puigdemont speech - Spanish press
(ES) Catalan President Puigdemont: asks for mandate to declare Catalonia an
independent state; proposes to suspend referendum results for several weeks in
order to hold talks
(MX) US reportedly to seek stricter NAFTA rules of origin requiring 85% of
content to come from the three NAFTA countries - CNBC
(AU) Australia sells A$3.5B (record amount) v A$3.5B indicated in Nov 2022
bonds, bid to cover 3.68x, avg yield 2.4167%
WEDS 10/11
DAL Reports Q3 $1.57 v $1.54e, Rev $11.1B v $11.0Be
(UK) PM May: if there is no Brexit deal, we will have to make arrangements with
other EU states on citizen rights - comments in Parliament
(US) Pres Trump tweets: "Fake @NBCNews made up a story that I wanted a
"tenfold" increase in our U.S. nuclear arsenal. Pure fiction, made up
to demean. NBC = CNN!"
(US) AUG JOLTS JOB OPENINGS: 6.082M V 6.125ME
TMUS Sprint acquisition of T-Mobile reportedly to likely meet opposition from
DOJ antitrust regulators - press
*(US) FOMC MINUTES FROM SEPT 19-20 MEETING: MANY FED POLICYMAKERS FELT ANOTHER
RATE INCREASE WAS LIKELY WARRANTED THIS YEAR
(US) Association of American Railroads weekly rail traffic report for week
ending Oct 7th: 554.8K carloads and intermodal units, +6.3% y/y (update)
(US) US President Trump: Looking at ~10% repatriation tax rate (vs current 35%
corporate tax rate)
MU Prices upsized $1.2B (prior $1.0B) offering of 29.3M shares at $41.00/shr
THURS 10/12
(EU) EU Chief Negotiator Barnier: Have NOT made great steps in negotiations but
recent round was constructive- 5th round of Brexit negotiation press conference
JPM Reports Q3 $1.76 v $1.67e, Rev $26.3B (Managed Rev) v $25.7Be
GM Reportedly cutting back on production on Detroit Hamtrack assembly plant for
6 weeks due to slower demand - press
C Reports Q3 $1.42 v $1.30e, Rev $18.2B v $17.7Be
(IN) INDIA SEPT CPI Y/Y: 3.3% V 3.5%E
(US) SEPT PPI FINAL DEMAND M/M: 0.4% V 0.4%E; Y/Y: 2.6% V 2.6%E
(US) US negotiators reportedly made proposal in talks to sunset NAFTA after
five years - press
Samsung Reports prelim Q3 (KRW) Op profit 14.5T* (record) v 14.3Te, Rev 62.0T v
62.0Te
(SG) SINGAPORE Q3 ADVANCE GDP Q/Q: 6.3% V 3.7%E; Y/Y: 4.6% V 3.8%E
(SG) SINGAPORE CENTRAL BANK (MAS) SEMI-ANNUAL POLICY DECISION: KEEPS ZERO
APPRECIATION PATH FOR SGD CURRENCY, maintains width and center of currency band
Samsung CEO*/Co-vice Chairman Kwon Oh-hyun to step down
(US) President Trump said to plan to end subsidy payments to insurers related
to sale of Obamacare insurance coverage – US press
(CN) PBOC offers CNY498B 1-year Medium-term Lending Facility (MLF) OPERATION AT
3.2% V 3.2% PRIOR
*(CN) CHINA SEPT TRADE BALANCE (CNY) 193.0B V 266.1BE
*(CN) CHINA SEPT TRADE BALANCE: $28.5B V $38.0BE
FRIDAY 10/13
BAC Reports Q3 $0.48 v $0.46e, Rev $21.9B* v $22.0Be
(US) SEPT CPI M/M: 0.5% V 0.6%E; CPI EX FOOD AND ENERGY M/M: 0.1% V 0.2%E; CPI
NSA: 246.819 V 246.911E
(US) SEPT ADVANCE RETAIL SALES M/M: 1.6% V 1.7%E; RETAIL SALES EX AUTO M/M:
1.0% V 0.9%E
(US) OCT PRELIMINARY UNIVERSITY OF MICHIGAN CONFIDENCE: 101.1 V 95.0E
(US) Atlanta Fed raises Q3 GDP to 2.7% from 2.5% on 10/6
(US) Pres Trump: We cannot and will not make this Iran nuclear deal
certification (as expected)
(US) Weekly Baker Hughes US Rig Count: 928 v 936 w/w (-0.9%)
