Morning Brief

S&P futures are lower this morning. Futures are trading lower as the additional tariffs are in place. China has indicated that it will retaliate. The China retaliation likely to be placing tariffs on the remainder of U.S goods not affected yet. They could also devalue their currency as an alternative counter measure. It is important to note that the U.S tariffs are based on goods leaving China’s ports today. There is a 3-4 week transportation time period for before those goods are actually taxed. Asian markets were mainly up overnight. The Shanghai composite index gained 0.84%. The 3 major European indexes are off their earlier highs and continue in positive territory.

S&P’s Overnight High Low % Change
S&P’s 282.30 281.90 -0.27
Asian Markets Close Change % Change Euro Last Change % Change
Tokyo 21344.92 -57.21 -0.27 London 7228.73 21.32 0.30
Hong Kong 28550.24 239.17 0.84 Germany 12057.60 83.68 0.70

 

Oil Prices:
Oil prices are flat to lower this morning. The elevated stock pile data is creating a concern for oil prices this morning. That combined with the questionable impact of U.S. sanction being able to drop Iranian exports to zero is highly unlikely. Organization of the Petroleum Exporting Countries’ output reached a four-year low in April. However, U.S. crude exports exceeded 3 million bpd for the first time this year. Later today, Baker Hughes will be releasing its rig count figure

WTI is at $61.83 a barrel, Brent Crude is at $70.54 a barrel.

 

Economic:  
U.S tariffs kicked in this morning and China is planning on imposing new tariffs on the U.S. While it is a positive sign that the Chinese negotiators stayed in DC to work towards an agreement. It is important to note that the talks on Thursday lasted only 90 minutes. Talks are scheduled to resume today. While the tariff announcement hit this morning, the Trump administration filing shows will only U.S tariffs kicked in this morning and China is planning on imposing new tariffs on the U.S. While it is a positive sign that the Chinese negotiators stayed in DC to work towards an agreement. It is important to note that the talks on Thursday lasted only 90 minutes. Talks are scheduled to resume today. While the tariff announcement hit this morning, the Trump administration filing shows will only take effect on goods leaving China’s ports on 5/10. This creates an opportunity of 3-4 weeks for an agreement to be reached before the tariffs actually take effect. Fed Speak: at 8:30 am ET, Federal Reserve Member of the Board of Governors Lael Brainard will be speaking in Washington DC. At 9:05 am ET Atlanta Federal Reserve Bank President Raphael Bostic will be speaking in Meridian MS. At 10:00 am ET New York Federal Reserve Bank President John Williams will be speaking at an event in the Bronx, NY. Economic Reports: At 8:30 am ET this morning the Consumer Price Index is due out. At 1:30 pm Baker Hughes will be releasing its rig count figures.

take effect on goods leaving China’s ports on 5/10. This creates an opportunity of 3-4 weeks for an agreement to be reached before the tariffs actually take effect. Fed Speak: at 8:30 am ET, Federal Reserve Member of the Board of Governors Lael Brainard will be speaking in Washington DC. At 9:05 am ET Atlanta Federal Reserve Bank President Raphael Bostic will be speaking in Meridian MS. At 10:00 am ET New York Federal Reserve Bank President John Williams will be speaking at an event in the Bronx, NY. Economic Reports: At 8:30 am ET this morning the Consumer Price Index is due out. At 1:30 pm Baker Hughes will be releasing its rig count figures.

Options Activity:

Bullish option activity in              cars pags nio seas fit wcg OSTK CHGG MCD
Bearish option activity in             TIME, CIEN UNIT

Sector News:

Retail

FL .REC Barclays said to be an aggressive buyer into their Q1 earnings release.
CWH .REC Keybanc downgraded the stock to Sector weight from overweight with a $23 pt.
M .REC UBS raised its price target to $25 from $23.

Drug Makers:

AGRX P/SGN Resubmitted in new drug application to the FDA for Twirla.
JNJ P/SGN FBI is investigating alleged illegal payoffs to the Brazilian government.
SOLY P/SGN FDA said their application by be converted to a De Novo process.

Dow 30:

MMM .REC JP Morgan lowers its price target to $143 from $154.
BA Peri.Fly Singapore Airlines CEO says their order for 31, 737 planes will continue.
HD .ERN Straddle is price for a $6.72 move when earnings are announced on Tues.

FANG:

AAPL .REC Nomura lowers its price target to $175 from $180.
GOOG Peri.Fly Italy is launching a probe in the company for alleged antitrust abuse.
FB Peri.Fly Said to be saturated with fraudulent accts impersonating tech executives.

Rumor:

SPY Rumor China is likely to respond to Trumps foreign telecom ban in a significant way.
CRAY .MA Announced that they will be acquired by HPE for $35 a share.
PRRR .MA BRX said to be acquiring PRRR for $18.81 a share.

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