TradeTheNews.com Weekly
Market Update: Trump Dumps JCPOA; Equities, Oil and the Dollar Lift
Fri, 11 May 2018 16:04 PM EST
US stock indices moved out to the best levels since March this week, after
inflation readings remained relatively benign, keeping a lid on Treasury yields
and lingering inflationary concerns. Regardless, WTI crude finished the week
with a $70 handle for the first time since 2015 after Trump made good on his
campaign promise to pull out of the Iran nuclear deal. The Greenback continued
to melt up causing consternation for several emerging market currencies and
resulted in various central bank interventions. The BOE met and, as expected,
ratcheted back expectations for further hikes this year. Brexit, NAFTA, and
China trade negotiations wore on with little concrete progress to speak of.
North American trading partners met in D.C. and remained hopeful that some kind
of agreement can be reached by next week's self-imposed deadline, with some
speculation that negotiators might shift toward a ‘skinny’ NAFTA deal as a
starting point. For the week the S&P500 rose 2.4%, the DJIA added 2.3%, and
the Nasdaq gained 2.7%.
In corporate news this week, Walmart confirmed an agreement to acquire 77% of
India’s Flipkart for $16B in order to accelerate its move into commerce in
South Asia. Nestle and Starbucks announced a $7.2B partnership to market, sell,
and distribute Starbucks’ coffee brands, excluding the ready-to-drink products.
AthenaHealth received an unsolicited $160/share cash offer from holder Elliott
Management, who see promise for the company in the healthcare IT industry.
Nvidia posted a beat on revenue and earnings in its quarterly report, but
warned investors that their cryptocurrency-related chip sales will be reduced
substantially this quarter. Disney earnings also exceeded top and bottom line
estimates thanks to a slew of blockbusters that drove 21% rev growth in its
studio division. Wendy's and Papa John’s lost ground following disappointing
results once again.
MONDAY MAY 7
(EU) EURO ZONE MAY SENTIX INVESTOR CONFIDENCE: 19.2 V 21.0E
*(US) MAR CONSUMER CREDIT: $11.6B V $15.2BE
TUESDAY MAY 8
DPW.DE Reports Q1 Net €600M v €633M y/y, EBIT €905M v €972Me, Rev €14.8B v
€14.9B y/y
(AR) Argentina Pres Macri: have started negotiations with IMF for a flexible
credit line
(US) Federal Reserve Apr Senior Loan Officer Survey: banks reported weaker
demand for auto and credit card loans; banks eased standards on CRE loans due
to competition
DIS Reports Q2 $1.84 v $1.68e, Rev $14.5B v $14.2Be
(KR) China Premier Li: Urges concerned parties to seize opportunity to promote
denuclearization, maintain peace and stability on the Korean Peninsula - Xinhua
WEDNESDAY MAY 9
DTE.DE Reports Q1 adj Net €1.19B v €939M y/y, adj EBITDA $5.55B v $5.51Be, Rev
€17.9B v €18.1Be
SIE.DE Reports Q2 Net €2.0B* v €1.14Be, Industrial Business profit €2.25B v
€2.07Be, Rev €20.2B v €20.5Be
ABI.BE Reports Q1 $0.73 v $0.79e, EBITDA $5.0B v $4.81B y/y, Rev $13.1B v
$12.8Be
9984.JP Reports FY17/18 Net ¥1.04T v ¥1.43T y/y, Op ¥1.30T v ¥1.28Te, Rev
¥9.16T v ¥8.90T y/y
(US) APR PPI FINAL DEMAND M/M: 0.1% V 0.2%E; Y/Y: 2.6% V 2.8%E
(IR) Pres Trump: if Iran restarts its nuclear program there will be very severe
consequences
(US) Atlanta Fed maintains Q2 GDP forecast at 4.0%, unchanged from May 3rd
(US) Association of American Railroads weekly rail traffic report for week
ending May 5th: 545.9K, +7.5% y/y
THURSDAY MAY 10
(PH) PHILIPPINES CENTRAL BANK (BSP) RAISES OVERNIGHT BORROWING RATE BY 25BPS TO
3.25%; AS EXPECTED
(UK) MAR INDUSTRIAL PRODUCTION M/M: 0.1% V 0.2%E; Y/Y: 2.9% V 3.1%E
(UK) BANK OF ENGLAND (BOE) QUARTERLY INFLATION REPORT
(UK) BANK OF ENGLAND (BOE) LEAVES INTEREST RATES UNCHANGED AT 0.50%; AS
EXPECTED
*(UK) BOE MAY MINUTES: VOTED 7-2 TO LEAVES INTEREST RATES UNCHANGED
(McCafferty, Saunders dissent calling for 25bps hike)
(US) APR CPI M/M: 0.2% V 0.3%E; CPI EX FOOD AND ENERGY M/M: 0.1% V 0.2%E; CPI
NSA: 250.546 V 250.700E
NVDA Reports Q1 $2.05 v $1.65e, Rev $3.21B v $2.91Be
FRIDAY MAY 11
MT.NL Reports Q1 $1.17 v $0.98 y/y, EBITDA $2.51B v $2.36Be, Rev $19.2B v
$18.5Be
(US) UBS Asset Management's Briscoe: Close to the end of Fed rate hike cycle
*(IT) ITALY DEBT AGENCY (TESORO) SELLS TOTAL €6.75B VS. €5.25-6.75B IN 2021,
2025 AND 2033 BTP BONDS
(US) APR IMPORT PRICE INDEX M/M: 0.3% V 0.5%E; Y/Y: 3.3% V 3.9%E
(CA) CANADA APR NET CHANGE IN EMPLOYMENT: -1.1K V +20.0KE; UNEMPLOYMENT RATE:
5.8% V 5.8%E
CAT Reports Apr dealer statistics: Total Machines +28% y/y
(US) MAY PRELIMINARY UNIVERSITY OF MICHIGAN CONFIDENCE: 98.8 V 98.3E
(US) Weekly Baker Hughes US Rig Count: 1,045 v 1,032 w/w (+1.3%) (6th straight
rise)
(US) Pres Trump: expects 'much lower prices on drugs' taking effect 'very
soon'; the middlemen won't be so rich anymore
