{"id":13461,"date":"2019-09-30T07:56:36","date_gmt":"2019-09-30T12:56:36","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=13461"},"modified":"2019-09-30T07:56:36","modified_gmt":"2019-09-30T12:56:36","slug":"before-the-open-sep-30-7","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=13461","title":{"rendered":"Before the Open (Sep 30-4)"},"content":{"rendered":"

Good morning. Happy Friday. Happy Employment Numbers Day. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mixed. Japan, New Zealand, Indonesia and the Philippines did well; Hong Kong, South Korea and India were weak. Europe, Africa and the Middle East<\/strong> currently lean to the upside. Denmark, Poland, Norway, Hungary, the Netherlands and Portugal are up; Israel and Saudi Arabia are down. Futures in the States<\/strong> point towards a slight up open for the cash market. <\/span>
\n—————
\n VIDEO: <\/strong>State of the Market<\/a>
\n—————<\/span>
\n The dollar is flat. Oil is up; copper is down. Gold is flat; silver is down. Bonds are up. <\/span>
\n Here are the employment figures.<\/strong><\/span>
\n unemployment rate: 3.5%
\n nonfarm payrolls: +136K
\n private payrolls:
\n average workweek:
\n hourly wages: flat at $28.11
\n labor participation rate:<\/span><\/span><\/span><\/span><\/span><\/span>
\n August number revised up to 168K from 130K.<\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n All eyes will be on the September jobs report as investors look for clues on whether the Federal Reserve is likely to cut rates later this month. This comes after economic reports that depict a contracting manufacturing sector and weaker-than-expected growth in the services sector. Stock index futures are mixed, with the Nasdaq roughly -0.3%, S&P -0.3% and Dow -0.3%. In Asia, Hong Kong\u2019s Hang Seng Index closed down 1.0% as the city imposed emergency power to ban face masks as protests continue. Across the Atlantic, the Stoxx Europe 600 Index rose 0.3%.<\/span>
\n EU will respond to U.S. tariffs, Germany\u2019s Maas says<\/span>
\n The European Union will take retaliatory measures in reaction to new U.S. tariffs on European goods, German foreign minister Heiko Maas told newspapers. \u201cThe European Union will have to react and, after obtaining the approval of the World Trade Organization, probably impose punitive tariffs as well,\u201d Maas said. The comments come after the WTO ruled that some subsidies EU states paid to planemaker Airbus were illegal, allowing the U.S. to slap tariffs on $7.5B of EU products exported to the U.S.<\/span>
\n Apple orders 10% boost to iPhone 11 production<\/span>
\n Facing unexpectedly higher demand, Apple (NASDAQ:AAPL) has told suppliers to boost production of the iPhone 11 by up to 10%, Nikkei reports. The up-to-8M-unit increase suggests a more budget-minded focus in the new iPhones is paying off in higher shipments – and the lowest-end model is receiving the biggest order surge. Suppliers are on watch Friday including Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), Qorvo (NASDAQ:QRVO), TSMC (NYSE:TSM), Skyworks (NASDAQ:SWKS), LG Display (NYSE:LPL), and Lumentum (NASDAQ:LITE).<\/span>
\n SoftBank’s Vision Fund 2 struggles as WeWork falters<\/span>
\n SoftBank’s (OTCPK:SFTBY) Masayoshi Son is struggling to raise funds for Vision Fund 2, the company’s second massive technology investment fund, Reuters reports. That comes after recent missteps including the failed IPO of The We Company (WE) and falling valuations in other investments. While the fund claimed $108B lined up at launch this summer, the only large committed amount so far is $38B from SoftBank itself.<\/span>
\n BP\u2019s drilling chief to take over as CEO<\/span>
\n BP (NYSE:BP) names Bernard Looney, currently head of the energy company\u2019s upstream operations, to succeed Bob Dudley as CEO. After a 40-year career with BP, Dudley, who became CEO soon after the Deepwater Horizon disaster, will step down as CEO and from the board in February and will retire at the end of March. Looney, who joined BP in 1991 as a drilling engineer, will join the board on Feb. 5. He\u2019ll continue in his current role until that date.<\/span>
\n U.S. lobbied Indonesia for Visa, Mastercard – Reuters<\/span>
\n The U.S. lobbying of Indonesia helped loosen local regulations opposed by card networks Visa (NYSE:V) and Mastercard (NYSE:MA), Reuters reports. The change means U.S. card companies can process transactions without a local partner, making for a more lucrative arrangement. The U.S. Trade Representative tied the rule changes to Indonesia keeping a privileged trade status that gets the country lower tariffs on $2B in annual exports to the U.S.<\/span>
\n U.S. shopping mall vacancies hit 8-year high<\/span>
\n Some 9.4% of units were unoccupied in Q3, equaling a post-financial crisis high reached in 2011, according to data from Moody\u2019s Analytics\u2019 Reis. The data, which tracks 77 metro areas, found that 17 cities had a vacancy rate under 7%, with San Francisco leading with a 4.1% rate. On the other hand, 24 cities had vacancy rates above 12%, including Memphis, Buffalo, and Albuquerque.<\/span>
\n What else is happening…<\/span>
\n HP (NYSE:HPQ) to cut up to 9K jobs; 2020 EPS guidance below consensus.<\/span>
\n AG Barr asks Facebook (NASDAQ:FB) to hold off on encryption.<\/span>
\n Fed will do what it takes to sustain growth, Clarida says.<\/span>
\n Arbutus (NASDAQ:ABUS) -24.5% as it discontinues hepatitis treatment.<\/span>
\n Thursday’s Key Earnings<\/strong>
\n Costco (NASDAQ:COST) -1.7% AH on reporting mixed Q4 earnings.
\n SMART Global (NASDAQ:SGH) -4.8% AH on earnings miss, downside guidance.<\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:30 Non-farm payrolls
\n 8:30 International Trade
\n 10:25 Fed’s Bostic Speech
\n 1:00 PM Baker-Hughes Rig Count
\n 2:00 PM Jerome Powell: “Fed Listens: Perspectives on Maximum Employment and Price Stability”
\n 2:10 PM Fed’s Brainard: “Gauging Maximum Employment in a Changing Labor Market”
\n 4:00 PM Fed’s Quarles: “The Importance of Price Stability and Low Inflation in Today’s Economy”
\n 4:45 PM Fed’s George Speaks on Sunday<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n——————–
\n Good morning. Happy Thursday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly down. Japan, New Zealand, Taiwan, Australia and Malaysia were weakest; China was still closed. Europe, Africa and the Middle East<\/strong> currently leans to the downside. The UK, Greece, South Africa, Finland, Norway and Saudi Arabia are weakest. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\n—————
\n VIDEO: <\/strong>State of the Market<\/a>
\n—————<\/span>
\n The dollar is flat. Oil and copper are down. Gold and silver are down. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n The WTO has given the U.S. the go-ahead to impose tariffs on as much as $7.5B worth of European exports annually – in retaliation for illegal government aid to Airbus (OTCPK:EADSY) – and the Trump administration is wasting no time in levying them. A list has been released of hundreds of European products that will get new tariffs as early as Oct. 18, including 25% levies on French wine, Italian cheese and single-malt Scotch whisky. The main target, however, is Airbus aircraft made in the EU, which face a 10% duty that could hurt U.S. airlines like Delta (NYSE:DAL) which have billions of dollars of orders waiting to be filled.<\/span>
\n Slight turnaround<\/span>
\n Wall Street is looking to recover from an 800-point plunge over the last two sessions as investors track fears of an economic recession and the latest tariff ruling from the WTO. After Tuesday’s dire picture on manufacturing from the ISM, investors now await today’s ISM services report and tomorrow’s non-farm payrolls data to confirm or quash concerns about world economic growth. Ahead of the release, U.S. stock index futures are indicating a higher open, with the Dow ahead by 88 points, and S&P 500 and Nasdaq up 0.4% and 0.5%, respectively.<\/span>
\n Uber diversifies<\/span>
\n Uber (NYSE:UBER) is launching a new app in Chicago on Friday that will match temporary workers looking for shift work with businesses. The new venture, called Uber Works, expands its offerings from on-demand drivers, trucking and food delivery to on-demand workers. It also comes as Uber\u2019s mainstay business is under threat, with California passing a bill mandating the reclassification of ride-hailing drivers as employees rather than contractors.<\/span>
\n Deliveries fall short<\/span>
\n Tesla (NASDAQ:TSLA) achieved record production of 96,155 vehicles in Q3 and record deliveries of approximately 97,000 vehicles (consisting of 17,400 Model S\/X cars and 79,600 Model 3s). But the figures missed some of the last estimates turned in by Wall Street analysts and could disappoint investors after Elon Musk pushed employees to get to the 100K level. Tesla’s deliveries are a closely watched number in the industry, providing the closest proximation to sales. TSLA -4.7% premarket.<\/span>
\n Facebook takedown case<\/span>
\n EU countries can order Facebook (NASDAQ:FB) to take down posts, photographs and videos and restrict global access to that material, according to Europe’s top court. They can also compel the tech giant to remove worldwide user comments that have been declared illegal. The case had been closely watched because of its potential ripple effects for regulating internet content, which will place more responsibility on companies to patrol their websites.<\/span>
\n $0 commission pool<\/span>
\n E*Trade (NASDAQ:ETFC) is joining the fray in eliminating retail commissions for online U.S.-listed stock, ETF, and options trades, following TD Ameritrade (NASDAQ:AMTD), Charles Schwab (NYSE:SCHW), and Interactive Brokers (IEX:IBKR). “With this new commission schedule we are further raising the bar, delivering an unrivaled experience at price points that cannot be beat,” said CEO Mike Pizzi. E-Trade estimates a quarterly revenue impact of $75M from dropping the fees, pushing the stock down 5% in after-hours trade on Wednesday.<\/span>
\n Healthcare initiatives<\/span>
\n Walmart (NYSE:WMT) will begin several healthcare pilot programs for its U.S. employees starting Jan. 1 as it looks for ways to slash healthcare costs – one of the largest expenses for the retailer after wages. Plans include connecting patients with local doctors, testing a concierge service, video chats with medical professionals and access to fitness clubs. Others in the industry are also targeting healthcare, with Amazon (NASDAQ:AMZN) recently launching a virtual primary care clinic with an option to send nurses to employees’ homes.<\/span>
\n Thinning middle management<\/span>
\n Just weeks after the company cast doubt on its ability to hit profit targets amid a turnaround effort, Kroger (NYSE:KR) is laying off hundreds of employees across its stores. “As part of ongoing talent management, many store operating divisions are evaluating middle management roles and team structures with an eye toward keeping resources close to the customer,” a spokesperson declared. “Store divisions operate independently but all of them are taking steps to ensure they have the right talent in the right store leadership positions.”<\/span>
\n Airbnb listing<\/span>
\n Airbnb (AIRB) is set to hire Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) as joint lead advisers on its planned stock market flotation next year, Reuters reports. The appointments would represent another high-profile assignment for the investment banks, albeit potentially less lucrative because Airbnb is leaning toward going public through a direct listing rather than an IPO. In a direct listing, no new shares are sold, and the role of the investment banks is more of one advising on market conditions vs. underwriting.<\/span>
\n Saudis restore output<\/span>
\n Saudi Arabia has fully restored oil output following attacks on its facilities last month that took half of its production offline at their peak. “We all rose to the challenge,” Energy Minister Prince Abdulaziz bin Salman told an energy conference in Moscow, adding that the kingdom’s focus is now on the listing of Saudi Aramco (ARMCO). “We have stabilized production capacity, we are at 11.3M barrels per day. We still have the kit and the tools to overcome any future challenges.”<\/span>
\n What else is happening…<\/span>
\n Italy probes Netflix (NASDAQ:NFLX) over tax evasion.<\/span>
\n Vaping crisis sees Imperial Brands (OTCQX:IMBBY) chief step down.<\/span>
\n Microsoft (NASDAQ:MSFT) is making smartphones again.<\/span>
\n 70% of eurozone bonds have sub-zero yields.<\/span>
\n FireEye (NASDAQ:FEYE) hires Goldman Sachs for potential sale.<\/span>
\n GoPro (NASDAQ:GPRO) -15% premarket after guidance cut.<\/span>
\n Wednesday’s Key Earnings<\/strong>
\n Bed Bath & Beyond (NASDAQ:BBBY) -2.8% AH posting mixed results.<\/span><\/span>
\nToday’s Economic Calendar<\/strong>
\n 3:45 Fed’s Evans: Monetary Policy
\n 7:30 Challenger Job-Cut Report
\n 8:30 Initial Jobless Claims
\n 8:30 Fed\u2019s Quarles: \u201cThe Financial Stability Board at 10 Years\u201d
\n 9:45 PMI Services Index
\n 10:00 ISM Non-Manufacturing Index
\n 10:00 Factory Orders
\n 10:30 EIA Natural Gas Inventory
\n 12:10 PM Fed’s Mester Speech
\n 4:30 PM Money Supply
\n 4:30 PM Fed Balance Sheet
\n 6:35 PM Fed\u2019s Clarida: Economic Outlook and Monetary Policy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n——————–
\n Good morning. Happy Wednesday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed down big. Japan, South Korea, India, Australia, Malaysia, Indonesia, Singapore and the Philippines each dropped more than 1%. Europe, Africa and the Middle East<\/strong> are currently suffering big losses. The UK, Denmark, Poland, France, Germany, the UAE, South Africa, Finland, Greece, Norway, Singapore, the Netherlands, Italy, Belgium, Austria, Sweden and the Czech Republic are down 1% or more. Futures in the States<\/strong> point towards a moderate gap down open for the cash market. <\/span>
\n—————
\n VIDEO: <\/strong>State of the Market<\/a>
\n—————<\/span>
\n The dollar is up. Oil is up; copper is flat. Gold and silver are up. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Markets are still on edge following data that showed U.S. factory activity shrinking in September to its weakest level since 2009, ratcheting up fears that the U.S.-China trade war is hobbling the world’s largest economy. The weak print saw the Dow drop nearly 350 points yesterday – with another 173-point loss likely at the open – while stocks flashed red across Europe and Asia overnight. Wall Street’s next focus is this morning’s ADP private payrolls report, which will give further clues about the labor market and broader economy ahead of the government’s monthly jobs report on Friday.<\/span>
\n Largest online gambling operator<\/span>
\n Flutter Entertainment (OTC:PDYPF), operator of Betfair and Paddy Power, is merging with Stars Group (NASDAQ:TSG) via an all share combination. Peter Jackson, currently CEO of Flutter, will assume the role of CEO of the combined group (which will be domiciled in Dublin, Ireland with a premium listing on the London Stock Exchange). The merger is expected to deliver substantial value creation for shareholders from pre-tax cost synergies of \u00a3140M per annum, along with potential revenue cross-sell in international markets and lower finance costs.<\/span>
\n Juul seeks more help from Altria<\/span>
\n Joe Murillo, who headed regulatory affairs for Altria (NYSE:MO) and previously ran the company’s e-cig business, is now Juul’s (JUUL) chief regulatory officer. He’s the first big hire made by new Juul CEO K.C. Crosthwaite, who himself moved over from Altria last week to take the helm of the startup. Facing a proposed U.S. ban on flavored e-cigarettes, Murillo will gather the applications that Juul must submit to the FDA by May 2020 for any products it wants to keep on the market beyond that point.<\/span>
\n Libra trouble<\/span>
\n Cracks are showing up in Facebook’s (NASDAQ:FB) Libra payments coalition, with key financial partners reconsidering their participation after a backlash from government officials. Visa (NYSE:V), Mastercard (NYSE:MA) and other backers are rethinking the project as officials in the U.S. and Europe raise the specter of regulatory scrutiny. Executives from Libra backers are now being summoned to a Thursday meeting in Washington, D.C., ahead of an Oct. 14 meeting in Geneva to go over a Libra Association charter and name a board.<\/span>
\n Opioid settlements<\/span>
\n Johnson & Johnson (NYSE:JNJ) is paying $20.4M to settle claims by two Ohio counties, allowing the U.S. healthcare giant to avoid an upcoming federal trial seeking to hold the industry responsible for the nation’s opioid epidemic. On Monday, Mallinckrodt (NYSE:MNK) announced a $24M settlement with the same two counties, while Endo International (NASDAQ:ENDP) and Allergan (NYSE:AGN) settled with the counties in August to avoid going to trial. Remaining defendants in the Oct. 21 court case include McKesson (NYSE:MCK), AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH), Teva (NYSE:TEVA), Walgreens (NASDAQ:WBA) and Henry Schein (NASDAQ:HSIC).<\/span>
\n Trading war<\/span>
\n Billions of dollars were wiped off the market values of top stock-trading platforms on Tuesday as Charles Schwab (NYSE:SCHW) intensified a price war by scrapping trading fees. “We don’t want to fall into the trap that a myriad of other firms in a variety of industries have fallen into, and wait too long to respond to new entrants,” said CFO Peter Crawford. Movement: TD Ameritrade (NASDAQ:AMTD) plunged 25%, E*Trade (NASDAQ:ETFC) sunk 16%, Interactive Brokers (IEX:IBKR) fell 9% and Charles Schwab declined 10%.<\/span>
\n Drone deliveries<\/span>
\n The Department of Transportation has given UPS (NYSE:UPS) the green light to operate a drone airline in a landmark development. The company will be allowed to deliver vital healthcare supplies nationwide after testing the program successfully on a hospital campus in Raleigh, North Carolina. As delivery options expand, future steps may include a single operator on the ground controlling multiple flights, or using drones to supplement traditional package delivery by trucks in rural areas.<\/span>
\n Big bet on EVs<\/span>
\n Volkswagen’s (OTCPK:VWAGY) Traton truck division plans to spend more than \u20ac2B over the next five years on electric vehicles and digital offerings to keep up with the industry\u2019s “radical’ transformation. While most passenger carmakers have already jumped into the EV revolution, the weight of trucks and the goods they transport has so far prevented a similar shift toward battery-powered heavy vehicles. Daimler (OTCPK:DDAIF) and Volvo (OTCPK:VOLVY) have embarked on some electric truck projects, while Tesla (NASDAQ:TSLA) has been aiming to launch a semi truck as well, though details remain scarce.<\/span>
\n Brexit ultimatum<\/span>
\n Boris Johnson will send his final Brexit offer to the EU today, according to the Telegraph. The “two borders for four years” plan would scrap the so-called Irish border backstop and instead place Northern Ireland in a temporary regime with a time limit. Customs checks would be required between Northern Ireland and the Republic of Ireland – something the latter and the EU oppose – as well as creating a regulatory border between Great Britain and Northern Ireland in the Irish Sea.<\/span>
\n Unrest in Hong Kong<\/span>
\n The Hang Seng Index was closed for a market holiday on Tuesday, though things quickly went south during today’s open, before the benchmark ended the session 0.2% lower. In an escalation of violence, Hong Kong police yesterday shot a teenage protester, the first to be hit by live ammunition in almost four months of unrest in the Chinese-ruled city. Data also showed retail sales in the Asian financial hub slumping 23% in August, marking a seventh consecutive month of decline (July’s drop was 11.4%).<\/span>
\n What else is happening…<\/span>
\n UAW rejects GM (NYSE:GM) offer as strike forces 6,000 layoffs.<\/span>
\n Tesla (TSLA) acquires DeepScale to develop fully autonomous vehicles.<\/span>
\n Growth plans… Coke Energy (NYSE:KO) is coming to the U.S.<\/span>
\n Nike (NYSE:NKE) CEO was briefed on doping efforts.<\/span>
\n U.S. repos and the JPMorgan (NYSE:JPM) factor.<\/span>
\n Crude prices dent Exxon’s (NYSE:XOM) Q3 profits.<\/span>
\n Fitch cuts WeWork (WE) deeper into junk territory.<\/span>
\n American (NASDAQ:AAL) pilots demand 737 MAX (NYSE:BA)-related compensation.<\/span>
\n Today’s Economic Calendar<\/strong>
\n Auto Sales
\n 7:00 MBA Mortgage Applications
\n 8:15 ADP Jobs Report
\n 9:00 Fed’s Harker Speech
\n 10:30 EIA Petroleum Inventories
\n 10:50 Fed’s Williams Speech<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n——————–
\n Good morning. Happy Tuesday. <\/span>
\n The Asian\/Pacific<\/strong> markets leaned to the upside. Japan, Hong Kong, New Zealand, Taiwan, Australia and Singapore closed up; India, Indonesia, Thailand and the Philippines posted losses; China was closed. Europe, Africa and the Middle East<\/strong> are mixed and quiet. Russia, Israel and Sweden are up; Poland, Turkey, Greece, Saudi Arabia and the Czech Republic are down. Futures in the States<\/strong> point to a moderate gap up open for the cash market.<\/span>
\n—————
\nSubscribe<\/a> to Leavitt Brothers trading ideas and market analysis. <\/span>
\n—————<\/span>
\n The dollar is up. Oil is up; copper is down. Gold and silver are down. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Chinese President Xi Jinping marked 70 years of Communist Party rule during a National Day event by saying the country must maintain lasting prosperity and stability in Hong Kong and Macau. While the Hong Kong Stock Exchange and Shanghai Stock Exchange were both closed for the holiday, trading was active on other Asia markets. Japan’s Nikkei rose 0.6% amid a weaker yen and after a Bank of Japan survey of business sentiment at large manufacturers came in better than expected. South Korea’s Kospi rose 0.4%, while Australia’s ASX 200 finished 0.8% higher after the Reserve Bank of Australia cut a key interest rate. Meanwhile, European stocks are having a softer day, with the Stoxx 600 Index slipping 0.1% at midday after PMI reports limped in. U.S. stock futures are pointing higher ahead of the trading day, with the earnings calendar highlighted by reports from Stitch Fix (NASDAQ:SFIX), McCormick (NYSE:MKC) and United Natural Foods (NYSE:UNFI).<\/span>
\n Spotlight on oil<\/span>
\n Oil prices are tracking higher on reports that production in the U.S. and Russia fell during the third quarter. While oil prices are forecast to remain fairly steady for the balance of the year, many market watchers think upward pricing pressure is fading away with Saudi Arabia believed to have restored capacity to 11.3M barrels per day after the attack on September 14 knocked out 5.7M bpd of output. “Demand growth is weakening, oil supply outside OPEC is rising significantly and OPEC+’s production discipline has recently faded,” noted Commerzbank analyst Carsten Fritsch. In today’s early action, WTI crude oil futures +1.3% to $54.77\/bbl and Brent crude +1.2% to $59.96\/bbl.<\/span>
\n Japan close to full employment<\/span>
\n Unemployment in Japan remained at 2.2% in August to match the lowest level of the last 26 years. Government officials say the labor market is close to “full employment” with a record 67.51M people working. Another significant economic development in Japan occurs today with the consumption tax rising to 10% from 8%. The government maintains the increased burden on consumers is necessary to boost social welfare programs and reduce the mounting national debt. Prime Minister Shinzo Abe aims to prop up consumer spending through fiscal policy moves.<\/span>
\n Waiting on Tesla<\/span>
\n Tesla (NASDAQ:TSLA) is expected to update on deliveries sometime during the first few days of October. The EV automaker delivered 95,356 cars in Q2 and is forecast by analysts to deliver around 97K in Q3, although Elon Musk told employees last week the company has a shot at hitting 100K deliveries. Looking ahead to Q4, the consensus estimate from analysts is for deliveries of 104K, consisting of 85K Model 3s, 10K Model X SUVs and 9K Model S cars.<\/span>
\n U.S. auto sales preview<\/span>
\n U.S. auto sales are forecast by Edmunds to fall 11.6% in September to 1,267,607 new cars and trucks for an estimated seasonally adjusted annual rate of 17.1M. “September auto sales look a little bleak on paper, but it’s just a matter of a tough year-over-year comparison,” noted Edmunds analyst Jeremy Acevedo on the timing of the Labor Day holiday. Unit sales are expected to drop 5.2% for General Motors (NYSE:GM) in September, while Toyota (NYSE:TM), Ford (NYSE:F) and Fiat Chrysler Automobiles (NYSE:FCAU) are all expected to post a double-digit drop for the month. Incentive spending in Q3 is projected to rise 6% to $4,159 to mark the highest level ever for the period and fall just $28 short of the all-time quarter high set in Q4 of 2017. In addition to the sales updates, commentary from Ford execs on demand trends and GM management on the impact of the workers strike will be closely watched this week.<\/span>
\n Macau shows growth<\/span>
\n The Macau sector is being watched closely with China’s National Day holiday in full swing and the report on gross gaming revenue for September showing 0.6% growth vs. +1.0% consensus. Hong Kong-listed names took a day off from trading due to the holiday, but U.S. parents Wynn Resorts (NASDAQ:WYNN), MGM Resorts (NYSE:MGM) and Las Vegas Sands (NYSE:LVS) could see some volatility off the developments. Looking ahead at the full Golden Week period (October 1-7), analysts think the mix of mass-market traffic will be higher this year based on hotel booking trends.<\/span>
\n Drugmakers pursue new plan to wrap opioid suits<\/span>
\n Five drugmakers tied up in sprawling opioid crisis lawsuits are pressing a novel plan to shrink or end the litigation: latching on to the bankruptcy of OxyContin maker Purdue Pharma. Johnson & Johnson (NYSE:JNJ), Teva (NYSE:TEVA), Endo International (NASDAQ:ENDP), Allergan (NYSE:AGN) and Mallinckrodt (NYSE:MNK) are pursuing a global settlement where they’d fund a trust through Purdue’s case, in exchange for release from liability – a plan not dissimilar to an approach tried in the Takata airbag litigation.<\/span>
\n Three pharmacies now pulling Zantac over FDA alert<\/span>
\n Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) have joined CVS (NYSE:CVS) in pulling Zantac off their shelves. The FDA issued an alert about potential low levels of a known human carcinogen in ranitidine medicines like Zantac, made by Sanofi (NASDAQ:SNY). There’s no recall of the medication, but the three pharmacies are refunding money to purchasers returning it.<\/span>
\n Credit Suisse clears CEO in surveillance imbroglio<\/span>
\n A Credit Suisse (NYSE:CS) investigation has cleared its CEO Tidjane Thiam in the case of botched surveillance of the bank’s ex-head of wealth management. Iqbal Khan abruptly left his position at Credit Suisse in July before joining rival UBS, and private detectives observed him on suspicion that he’d poach employees from his former bank (but found no evidence). The internal probe said Credit Suisse Chief Operating Officer Pierre-Olivier Bouee acted alone in the case, and he has resigned.<\/span>
\n What else is happening…<\/span>
\n General Motors (GM) strike to take a toll.<\/span>
\n Meritor (NYSE:MTOR) launches restructuring.<\/span>
\n Facebook (NASDAQ:FB) will exempt opinion pieces and satire from its fact-checking program.<\/span>
\n REITs in harm’s way from Forever 21 bankruptcy.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 4:15 Fed’s Evans Speech
\n 8:50 Fed\u2019s Clarida Speech
\n 8:55 Redbook Chain Store Sales
\n 9:15 Fed’s Bullard Speech
\n 9:30 Fed\u2019s Bowman Speech
\n 9:45 PMI Manufacturing Index
\n 10:00 ISM Manufacturing Index
\n 10:00 Construction Spending<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n——————–
\n Good morning. Happy Monday. Hope you had a good weekend. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mixed. Hong Kong, South Korea and New Zealand posted gains; Japan, China, Indonesia, Thailand and the Philippines posted losses. Europe, Africa and the Middle East<\/strong> are currently mixed. Finland, Portugal, Israel and Saudi Arabia are up; Poland, Russia, Greece, South Africa and Hungary are down. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\n—————
\n VIDEO: <\/strong>LeavittBrothers.com Overview<\/a>
\n—————<\/span>
\n The dollar is up. Oil is up; copper is flat. Gold and silver are down. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n U.S. futures point to the three major stock averages opening with a modest gain as the Trump administration said it’s “not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time,” after reports on Friday suggested otherwise. S&P futures are up 0.4%, Nasdaq futures gained 0.5% and Dow futures pointed to a 90-pont rise at the open, or up 0.3%. In Europe, the Stoxx Europe 600 is little changed at 391.94 and the FTSE 100 is down 0.2%. In Asia, trading is mixed, with Japan\u2019s Nikkei 225 closing down 0.6%, Hong Kong\u2019s Hang Seng up 0.5%, and in Singapore, the FTSE Straits Times Index fell 0.3%.<\/span>
\n U.K. finance minister says Britain will leave EU on Oct. 31, hopefully with deal<\/span>
\n \u201cHopefully we leave with a deal,\u201d U.K. Finance Minister Sajid Javid told ITV, adding that leaving with a deal isn\u2019t perfect but it\u2019s \u201cappropriate.\u201d Javid refused to say how the government could deliver Brexit if there’s no deal given that a U.K. law demands the prime minister delay its exit from the EU in such a case.<\/span>
\n GM, UAW talk on as strike enters third week<\/span>
\n General Motors (NYSE:GM) and the United Auto Workers were set to keep talking over a labor deal Monday morning as the strike entered its third week. The two had seemed close to a tentative deal on Wednesday, according to multiple reports, after some breakthroughs in progress. The UAW represents 48,000 striking hourly workers.<\/span>
\n Rio Tinto scraps sale\/IPO for Canadian iron ore unit<\/span>
\n After years of looking to unload its Canadian iron ore unit, Rio Tinto (NYSE:RIO) has scrapped plans for a sale or initial public offering of the business, according to multiple reports. Rio Tinto has a 59% stake in Iron Ore Co. of Canada, and timing has turned against a split, as iron ore prices that hit a multi-year high earlier this year have receded and look to decline further in the coming year.<\/span>
\n Japan’s KDDI chooses Nokia for 5G upgrade<\/span>
\n Japanese telecom KDDI (OTCPK:KDDIY) has gone with Nokia (NYSE:NOK) as its primary partner on developing a 5G network. Nokia is a longtime supplier to the company and will use its AirScale for radio access, which will support evolving KDDI’s 4G network even as the two build out the next-gen solution. It’s Nokia’s 48th global commercial 5G contract.<\/span>
\n Facebook will have to share messages with the U.K.<\/span>
\n Under a new treaty between the U.S. and the U.K., social media platforms based in the U.S., including Facebook (NASDAQ:FB) and WhatsApp, will be forced to share user’s encrypted messages with the British police, Bloomberg reports. The U.S. and U.K. have agreed not to investigate each other’s citizens as part of the deal, and the U.S. won\u2019t be able to use information obtained from British firms in any cases carrying the death penalty.<\/span>
\n Speaking of encryption\u2026<\/span>
\n In the U.S., Congressional antitrust investigators are scrutinizing plans by Google (GOOG, GOOGL) to use a new internet protocol, the Wall Street Journal reports. The new standard would encrypt internet traffic to improve security, but could also alter the internet\u2019s competitive landscape. Cable and wireless companies fear being shut out from much data if browser users move wholesale to this new standard – which many ISPs don\u2019t currently support – giving Google a competitive advantage.<\/span>
\n What else is happening…<\/span>
\n CVS Health (NYSE:CVS) stops selling Zantac heartburn drug.<\/span>
\n BP (NYSE:BP) to announce CEO retirement.<\/span>
\n M&A deal activity pace slows.<\/span>
\n Volkswagen (OTCPK:VWAGY) Dieselgate case starts in Germany.<\/span>
\n \u2018Cracking issue\u2019 on some Boeing (NYSE:BA) 737 plans.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 9:45 Chicago PMI
\n 10:30 Dallas Fed Manufacturing Survey<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Friday. Happy Employment Numbers Day. The Asian\/Pacific markets closed mixed. Japan, New Zealand, Indonesia and the Philippines did well; Hong Kong, South Korea and India were weak. Europe, Africa and the Middle East currently lean to the upside. Denmark, Poland, Norway, Hungary, the Netherlands and Portugal are up; Israel and Saudi Arabia […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13461"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13461"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13461\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}