Stocks shrugging off weaker than expected China GDP as earnings remain in focus

US Stocks

• Global stocks are edging up this morning, shrugging off a deceleration in Chinese economic growth while European stocks are in the red following profit warnings from large-cap stocks like Michelin  
• US stocks index futures are off their earlier AM highs but are still pointing to gains on the open in NY with the Dow Jones minis +0.28%, S&P500 minis +0.23% and Nasdaq 100 minis +0.44% 
• The VIX is little changed this morning and is currently at 19.59 after closing at 20.06 yesterday
• General Electric (GE) November 16 & January 2019 OTM Puts, SPY October 19 OTM Puts, and Bank of America (BAC) October 19 OTM Calls & Puts are the most heavily traded options contracts in the US pre-market
• US 10-Year Treasury Bonds are higher with yields down -0.17 basis points to 3.1769%
• The US Treasury 2s-10s Spread has narrowed 0.21 basis points to 0.3%
• WTI Crude is currently down -1.58% to USD$68.65/bbl with the Brent-WTI spread up USD$2.35 to USD$11.33/bbl
• Gold is currently little changed 0.17% to USD$1227.91/oz
• Global oil prices are on pace to post losses this week as an increase in US inventories (more than 2x what was forecasted) outweighed worries about rising tensions between the US and Saudi Arabia. Global oil prices are on pace to post losses this week as an increase in US inventories (more than 2x what was forecasted) outweighed worries about rising tensions between the US and Saudi Arabia

Stocks Trending in the News

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• American Express (AXP) beat on 3Q results and upped full year guidance.  American Express reported 3Q EPS of USD$1.88, a touch above consensus with revenue of USD$10.14 billion versus USD$10.07 billion consensus.  American Express hiked full-year EPS guidance to USD$7.30-7.40 from USD$6.90-7.30.  American Express is rated ‘Neutral’ in our US Large-Cap Global Top Stock Ideas.
• Apple (AAPL) will unveil new products on October 30th in Brooklyn according to a press release.  Apple will likely unveil new iPads and Mac computers, analysts have commented.  Apple will probably release an updated iPad Pro, a lower cost MacBook laptop, and new Mac mini desktop.   Apple is rated ‘Top Buy’ in our US Large-Cap Global Top Stock Ideas and rated ‘Attractive’ in our US Information Technology Global Top Stock Ideas.
• Citizens Financial Group (CFG) reported 3Q results that beat expectations.  Citizens Financial Group 3Q adjusted EPS came at 93 cents, above 90 expected.   Citizens Financial Group saw 3Q revenue of USD$1.56 billion, matching estimates with USD$416mm of non-interest income.   Net charge-off for Citizens Financial Group came at USD$86mm, a touch above USD$82.9nm expected.  Citizens Financial Group is rated ‘Attractive’  in our US Large-Cap Global Top Stock Ideas.
• Honeywell (HON) delivered 3Q sales of USD$10.76 billion matching consensus.  Honeywell saw 3Q EPS come at USD$3.11, also matching consensus.  Honeywell lowered full-year guidance on revenue to USD$41.7-41.8 billion, down from USD$43.1-43.6 billion.  Honeywell is rated ‘Neutral’ in our US Large-Cap and US Industrials Global Top Stock Ideas.
• InterContinental Hotels Group (IHG LN) delivered 3Q results below expectations, with softer revenue trends.  InterContinental Hotels Group saw comparable RevPAR growth of 1%, below consensus with year to date RevPAR growth of 2.7%.  InterContinental Hotels Group announced it is returning USD$500mm to shareholders via a special dividend.  InterContinental Hotels Group is rated ‘Attractive’ in our United Kingdom All-Cap Global Top Stock Ideas.
• Michelin (ML FP) is falling 7.6% at 91.83 euros after issuing a warning about declining volumes in Europe and China.  Michelin said new emissions rules in Europe and slow car sales in China, dampening its sales outlook.  Michelin expects sales to fall in the second half of the year given those developments.   Michelin beat 3Q expectations, but all focus is on its sales warning.  Michelin is rated ‘Unattractive’ in our European Large-Cap Global Top Stock Ideas.
• PayPal (PYPL) reported 3Q results that exceeded analysts’ expectations.  PayPal reported adjusted EPS of 58 cents, beating the 54 cents consensus.  PayPal hiked 4Q revenue expectation to USD$4.2-4.28 billion, matching consensus estimates.  PayPal also said it is making progress on monetizing its Venmo mobile payment service.  PayPal is trading 9.5% higher in extended trading at $82.50.  PayPal is rated ‘Unattractive’ in our US Large-Cap Global Top Stock Ideas.
• Tencent (700 HK) backed iCarbonX has hired Goldman Sachs banker Shawn Lee to be its CFO.  Tencent backed iCarbonX is seeking to help people use their genetic data to generate recommendations for diet medicine for them.  iCarbonX has raised USD$100mm in financing, including from Tencent.  Tencent closed 0.36% higher at HKD$282.  Tencent is rated ‘Attractive’ in our China All-Cap Global Top Stock Ideas.
• Volvo AB (VOLVB SS) reported mixed 3Q results and the stock is trading 4.3% lower at 130.90 krona.  Volvo AB sees strong demand in North America that it expects to continue into 2019, offsetting weakening demand in Europe.   Volvo’s return on sale came at 11.1%, above its 10% target and up from 9.1%.  Volvo is rated ‘Neutral’ in our European Large-Cap Global Top Stock Ideas.
  

European Stocks

• European stocks are declining this morning, with profit warnings from major companies like Michelin weighing on investor moods
• The Euro Stoxx 600 is currently down -0.29%, the FTSE 100 is higher by +0.23%, the DAX has fallen -0.19%, and the CAC 40 is lower by -0.67%
• The EU has sent the Italian coalition government a letter asking for an explanation for it budget plans, calling the current a breach of EU fiscal rules
• Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.37x
• Utilities (+1%), Food & Beverage (+0.86%), and Personal & Household Goods (+0.83%) stocks are the top performers in the Euro Stoxx 600 today
• Automobiles & Parts (-2.32%), Travel & Leisure (-1.93%), and Industrial Goods & Services (-1.56%) stocks are the worst performers in the Euro Stoxx 600 today
• 29 stocks in the Euro Stoxx 600 are at 4-week highs while 83 stocks are at 4-week lows
• 5 stocks in the Euro Stoxx 600 are overbought while 124 stocks are oversold according to the 16-day RSI Measure
• VSTOXX, the European stocks equivalent of the VIX, is moving up this morning and is currently at 19.36 after closing at 18.17 yesterday
• EUR€ is currently little changed against the USD$ at 1.1462
• GBP£ is currently little changed against the USD$ at 1.3032
• CHF is currently little changed against the USD$ at 1.0041
• German 10-Year Bunds are higher with yields down -0.2 basis points to 0.414%
• UK 10-Year GILTs are lower with yields up 0.2 basis points to 1.54%

Asian Stocks

• Asian stocks finished the last day of trading this week mixed, with Chinese and Hong Kong stocks up after the sharpest drop in valuations since 2015 earlier in the week
• The Nikkei 225 finished down -0.56%, the Hang Seng ended up +0.42%, the Hang Seng China Enterprise up +0.84%, and the CSI 300 was +2.97%
• Chinese 3Q GDP, disappointed, coming in at +6.5% vs. expectations for +6.6%
• Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.25x
• 3 stocks in the Nikkei 225 hit 4-week highs while 15 stocks reached 4-week lows
• 0 stocks in the Nikkei 225 closed overbought while 6 stocks closed oversold according to the 16-day RSI Measure
• Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 1.78x
• 0 stocks in the Hang Seng hit 4-week highs while 12 stocks reached 4-week lows
• 0 stocks in the Hang Seng closed overbought while 7 stocks closed oversold according to the 16-day RSI Measure
• Japan 10-Year Government Bonds are higher with yields down -0.3 basis points to 0.149%
• JGBs 2s-10s Spread has narrowed 0.2 basis points to 0.27%
• JPY¥ is currently up +0.16% against the USD$ to 112.39

Submitted October 19, 2018 at 08:16AM by QuantalyticsResearch https://ift.tt/2AhQguu