{"id":13666,"date":"2019-12-16T08:56:23","date_gmt":"2019-12-16T13:56:23","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=13666"},"modified":"2019-12-16T08:56:23","modified_gmt":"2019-12-16T13:56:23","slug":"before-the-open-dec-16-20","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=13666","title":{"rendered":"Before the Open (Dec 16-20)"},"content":{"rendered":"

Good morning. Happy Friday. Happy Options Expiration Day. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mixed. Hong Kong, South Korea, Malaysia, Indonesia and the Philippines did well while Japan, China and Taiwan were weak. Europe, Africa and the Middle East<\/strong> are mostly up. Denmark, France, Turkey, Germany, Finland, Switzerland, Norway, Italy, Austria, Sweden and Saudi Arabia are up; Greece is down. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\n—————
\nFREE Online Course: Jason Leavitt’s Mini Masterclass in Trading<\/a> <\/span>
\n—————<\/span>
\n The dollar is up. Oil and copper are down. Gold and silver are down small amounts. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Amazon’s in-house delivery network, which operates 150 U.S. delivery stations and employs more than 90,000 people, is “on track to deliver 3.5B packages by the end of the year,” according to a new press release. Oh yes, wait a minute… Morgan Stanley estimates the Amazon (NASDAQ:AMZN) delivery network will move 6.5B packages by 2022, more than UPS (NYSE:UPS) at 5B and FedEx (NYSE:FDX) at 3.4B, dealing a potential long-term threat to the rival shipping firms. While Amazon has already ended its relationship with FedEx, UPS continues to handle delivery for about half of its global packages.<\/span>
\n More record highs<\/span>
\n Wall Street stocks rose to all-time highs on Thursday, with the S&P 500 index pushing past 3,200 for the first time, after Treasury Secretary Steven Mnuchin said the U.S. and China would sign their “phase one” trade agreement in early January. However, there wasn’t much movement from futures overnight, as investors begin winding down their books in the days leading up to the year-end holidays. Later in the session, we’ll get consumer spending figures, key inflation measures and the third estimate for third-quarter GDP.<\/span>
\n Next milestone for American spaceflight<\/span>
\n Since the retirement of NASA’s Space Shuttle program in 2011, the agency has been looking to relaunch humans into space from U.S. soil. This morning, Boeing’s (NYSE:BA) CST-100 Starliner spacecraft is scheduled to blast off into orbit (connecting with the International Space Station tomorrow), and if all goes well, it could be flying its first crewed missions by next year. Back in 2014, NASA allotted $2.6B for SpaceX’s (SPACE) Crew Dragon and $4.2B for Boeing’s Starliner under its Commercial Crew Program.<\/span>
\n Is the Force strong enough?<\/span>
\n It’s the opening weekend for Star Wars: The Rise of Skywalker, the conclusion to a nine-chapter saga that kicked off more than four decades ago. Disney (NYSE:DIS) is cautiously predicting a start of around $160M, which is more than most films make in their entire theatrical run, but a figure that would rank as one of the weakest opening weekends for the franchise. Whether or not Rise of Skywalker sets any records, it will only further Disney’s $10B historic year at the box office.<\/span>
\n Tobacco age going to 21<\/span>
\n The minimum age to purchase cigarettes, e-cigarettes and other tobacco products will be raised to 21 nationwide under the spending bill passed by the Senate on Thursday. The two biggest U.S. cigarette manufacturers, Altria (NYSE:MO) and Reynolds American (NYSE:BTI), both supported the age restriction, as did Juul Labs (JUUL), which has been sharply criticized over a surge in underage vaping. Nineteen states have already passed laws raising the minimum tobacco purchase age to 21, including California, Texas and New York.<\/span>
\n Goldman and 1MDB<\/span>
\n Goldman Sachs (NYSE:GS) and the U.S. Department of Justice have largely agreed on a fine of just under $2B to settle allegations that the bank ignored warning signs while billions of dollars were being stolen from its client, a Malaysian government fund known as 1MDB. The deal would see a Goldman subsidiary in Asia, not the parent company, plead guilty to violating U.S. bribery laws, WSJ reports. Also being discussed is installing an independent monitor at the bank to oversee and recommend changes to its compliance procedures.<\/span>
\n House clears USMCA trade deal<\/span>
\n In a vote 385-41, the U.S. House of Representatives overwhelmingly approved legislation to implement USMCA (a trade deal that includes tougher labor and auto content rules, but leaves $1.2T in annual trade flows largely unchanged). U.S. Treasury Secretary Steven Mnuchin expects the agreement to add 0.5% to U.S. GDP growth, though others are more skeptical. According to the Congressional Budget Office, automakers will take a nearly $3B hit over the next ten years due to terms of the agreement.<\/span>
\n Bailey to lead BOE through Brexit<\/span>
\n Boris Johnson is testing out his new parliamentary majority today following a “second reading” and vote on his Brexit bill in the House of Commons. Further debate will be then conducted in both chambers, and if passed into law, it would mean that the U.K. would leave the EU on January 31. Other U.K. news… Andrew Bailey, the current head of the Financial Conduct Authority, has been named to replace Mark Carney as the next governor of the Bank of England.<\/span>
\n What else is happening…<\/span>
\n U.S. Steel (NYSE:X) tumbles on Q4 loss, dividend cut.<\/span>
\n Merck (NYSE:MRK) receives FDA approval for Ebola vaccine.<\/span>
\n Live Nation (NYSE:LYV) avoids DOJ lawsuit over ticketing practices.<\/span>
\n Shaken, not stirred… Apple (NASDAQ:AAPL) eyes James Bond content.<\/span>
\n France slaps latest fine on Google (GOOG, GOOGL).<\/span>
\n Chipotle (NYSE:CMG) faces accusation of union retaliation.<\/span>
\n Shell (NYSE:RDS.A) sees $2.3B in charges, cuts output estimate.<\/span>
\n Thursday’s Key Earnings<\/strong>
\n Accenture (NYSE:ACN) +1.2% raising lower end of its guidance.
\n Conagra (NYSE:CAG) +15.9% improving sales.
\n Darden Restaurants (NYSE:DRI) -6.3% dragged down by Olive Garden.
\n Nike (NYSE:NKE) -2.1% AH on tiny margin misses.
\n Rite Aid (NYSE:RAD) +42.3% posting blockbuster earnings.<\/span><\/span><\/span><\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:30 GDP Q3
\n 8:30 Corporate profits
\n 10:00 Personal Income and Outlays
\n 10:00 Consumer Sentiment
\n 11:00 Kansas City Fed Mfg Survey
\n 1:00 PM Baker-Hughes Rig Count<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n——————————
\n Good morning. Happy Thursday. <\/span>
\n The Asian\/Pacific<\/strong> markets leaned down. India, New Zealand and Thailand did well; Hong Kong, Taiwan, Indonesia and the Philippines were weak. Europe, Africa and the Middle East<\/strong> currently lean down. Finland, Austria and Saudi Arabia are up; Germany, the UAE, Russia, Greece, South Africa and Spain are down. Futures in the States<\/strong> point towards a slight down open for the cash market. <\/span>
\n—————
\nVIDEO: Trading Examples with BE, CRC, SHOP, SVM<\/a> <\/span>
\n—————<\/span>
\n The dollar is flat. Oil is down slightly; copper is up slightly. Gold and silver are up small amounts. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Despite a weakening economy, Sweden’s Riksbank has swum against the tide of global monetary policy by hiking its benchmark repo rate by a quarter point to 0.0%. The move, which ends half a decade of negative rates, may have other central banks admit to some downside amid fears of penalizing good savers, supporting companies that might otherwise collapse and inflating bubbles in the property market. Kicking the unconventional addiction is not easy, with rates still negative in the eurozone, Hungary, Japan, Denmark and Switzerland.<\/span>
\n Slightly higher open<\/span>
\n Market reaction has been relatively muted so far as the Democrat-led House of Representatives voted to impeach President Trump for abuse of power and obstruction of justice. The case will now go to the Republican-controlled Senate, where the trial is likely to be dismissed or end with Trump being acquitted. Wall Street fell short of extending its five-session winning streak on Wednesday, as stocks reversed gains late in the day, though futures are now pointing to a slightly higher open.<\/span>
\n Impeachment process and markets<\/span>
\n The S&P 500 fell as much as 4.9% on October 8, 1998, the day the House voted to begin impeachment proceedings against President Clinton, before trimming losses to end the day down 1.2%. By the time Clinton was acquitted by the Senate in February 1999, the index was up 28%. Markets shrugged off an impeachment inquiry against President Nixon on February 6, 1974, but the S&P 500 fell around 30% until his resignation due to Watergate. There were other forces at play, however, including Nixon’s decision to suspend the gold standard and a recession following the oil shock of late 1973.<\/span>
\n Nike earnings: What to expect<\/span>
\n With shares of Nike (NYSE:NKE) up 35% YTD, investors are expecting more good news when the sneaker giant reports FQ2 results after the bell. The company is likely to show growth in profits and revenue amid success in selling merchandise directly to consumers in-store and online, though focus will be on North America, where Nike has struggled to meet market expectations in recent quarters. Also watch out for comments about new CEO John Donahoe, who takes over for Mark Parker when he steps down in January.<\/span>
\n Facebook heads to the Super Bowl<\/span>
\n Facebook (NASDAQ:FB) is airing its first ad at the big game, as part of the social network’s “More Together” campaign which launched in May. The spot will have cameo appearances from Chris Rock and Sylvester Stallone, and display “how people from different backgrounds come together over shared interests and experiences, all through Facebook Groups.” Fox (NASDAQ:FOX) had been selling 30-second slots for more than $5M, Variety reported in November.<\/span>
\n MAX problems prompt Boeing downgrade<\/span>
\n Amid a 737 MAX production halt and grounding extension, Moody’s has cut Boeing (NYSE:BA) one level to A3, four levels above speculative grade. The agency sees long-term risk to the company\u2019s reputation, which could jeopardize its financial future, as well as increasing program costs and claims for compensation. Overnight, Norwegian Air’s acting CEO told a podcast – released by DNB Markets – that he hopes to secure a deal with Boeing by year-end over compensation for the 737 MAX grounding.<\/span>
\n California green lights driverless trucks, vans<\/span>
\n The next step in the self-driving revolution is taking shape as California approves a broader variety of autonomous vehicles to be tested on the state’s public roads, including small to mid-sized trucks and vans. Companies testing vehicles without a human test driver behind the wheel will have to build in a link to a remote operator and must agree to share data with the state. While 65 firms currently hold permits to test autonomous vehicles in California, only one company, Alphabet’s Waymo (GOOG, GOOGL), has attained a license to test fully driverless vehicles.<\/span>
\n Creating a smart standard<\/span>
\n Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Google (GOOG, GOOGL) and the Zigbee Alliance have announced a new partnership called “Project Connected Home over IP.” It will create a new standard that will make it easier for the fragmented ecosystem of smart home products to work together. \u201cThe project is built around a shared belief that smart home devices should be secure, reliable, and seamless to use,\u201d the companies said in a press release.<\/span>
\n Doubling down on a Scottish referendum<\/span>
\n Scotland’s First Minister Nicola Sturgeon is sending a letter to Boris Johnson asking for the U.K. Parliament to grant Scotland the right to hold another independence referendum. If he responds “no” again, Sturgeon says she will “consider all reasonable options to secure Scotland’s right to self-determination.” Scotland, part of the United Kingdom for almost 313 years, rejected independence by 55% to 45% in a 2014 referendum (but that was before Brexit).<\/span>
\n What else is happening…<\/span>
\n IAC (NASDAQ:IAC) spins off online dating service Match (NASDAQ:MTCH).<\/span>
\n Uber (NYSE:UBER) settles sex-discrimination charge with EEOC.<\/span>
\n German automakers end car-sharing in North America.<\/span>
\n WeWork (WE) wants to sell Managed by Q.<\/span>
\n Nvidia (NASDAQ:NVDA)-Mellanox (NASDAQ:MLNX) deal poses rival to Intel (NASDAQ:INTC).<\/span>
\n Broadcom (NASDAQ:AVGO) aims to sell one of its wireless-chip units.<\/span>
\n Wednesday’s Key Earnings<\/strong>
\n General Mills (NYSE:GIS) +1.9% posting pet segment strength.
\n Micron (NASDAQ:MU) +4.6% AH on beats, in-line revenue outlook.<\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:30 Initial Jobless Claims
\n 8:30 Philly Fed Business Outlook
\n 8:30 Current Account
\n 10:00 Existing Home Sales
\n 10:00 Leading Indicators
\n 10:30 EIA Natural Gas Inventory
\n 4:30 PM Money Supply
\n 4:30 PM Fed Balance Sheet<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n———————————–
\n Good morning. Happy Wednesday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly up. Hong Kong, India, New Zealand, Malaysia, Indonesia and Thailand all did well; Japan was weak. Europe, Africa and the Middle East<\/strong> currently lean slightly up. The UAE, Greece, South Africa, Switzerland and Saudi Arabia are up; Denmark and Turkey are down. Futures in the States<\/strong> point towards a slight positive open for the cash market. <\/span>
\n—————
\nVIDEO: Trading Examples with BE, CRC, SHOP, SVM<\/a> <\/span>
\n—————<\/span>
\n The dollar is up. Oil and copper are down. Gold and silver are down. Bonds are flat. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Start your engines… The boards of Peugeot (OTCPK:PEUGF) maker PSA Group and rival Fiat Chrysler (NYSE:FCAU) have backed a 50-50 share merger that would create the world’s fourth-largest carmaker. It includes sweeteners to make the trans-Atlantic tie-up more attractive to U.S. regulators and PSA shareholders, as automakers invest billions in new technologies, such as electric cars and self-driving vehicles. The combined company will be led by PSA Chief Executive Officer Carlos Tavares, with Fiat Chairman John Elkann holding the same role at the enlarged firm. A shock lawsuit filed by GM (NYSE:GM) last month over alleged union bribing did not affect the merger terms, FCA CEO Mike Manley told reporters, adding that the claim was “meritless.”<\/span>
\n More car headlines<\/span>
\n As part of a new four-year labor contract with the UAW union, Ford (NYSE:F) said it will invest nearly $1.5B in two Michigan assembly plants, creating about 3,000 factory jobs. Part of the money will be spent on retooling for electrified versions of its top-selling F-150 pickup truck, the company\u2019s profit engine, as well as battery-assembly operations. Across European equities, shares in Volvo (OTCPK:VOLVY) advanced 4% after the company agreed to transfer its Japanese truck business to Japan\u2019s Isuzu Motors (OTCPK:ISUZY) in a deal worth $2.3B.<\/span>
\n Headway made on supersonic travel<\/span>
\n NASA officials have approved the final assembly of the X-59 QueSST, the supersonic X-plane designed and being put together by Lockheed Martin (NYSE:LMT). A long pointed nose and sharply swept wings ensure that the individual pressure waves created by an airplane surpassing Mach 1 never converge, resulting in a soft “thump” rather than a loud sonic boom. Test flights are scheduled for 2021 and will help establish new rules for commercial air travel (the boom had led U.S. authorities to ban supersonic passenger flights over land in 1973).<\/span>
\n Sixth day of gains?<\/span>
\n The S&P closed higher for the fifth consecutive session on Tuesday, notching its longest winning streak since November. Stronger-than-expected housing data continued to support the bullish case for stocks as investors await more details about a preliminary trade agreement between the U.S. and China. Futures contracts linked to the DJIA are now up by 24 points, while S&P 500 and Nasdaq futures are ahead by 0.1%.<\/span>
\n Google settles Australian tax dispute<\/span>
\n Google (GOOG, GOOGL) has reached a settlement worth almost half-a-billion dollars with Australia’s tax office amid a longstanding dispute over its tax practices between 2008 and 2018. Big Tech has faced criticism globally for reducing their tax bills by booking profits in low-tax countries regardless of the location of the end customer. The Australian Taxation Office has netted A$1.25B over the past two years after signing tax settlements with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) under the Multinational Anti-Avoidance Law.<\/span>
\n Xi plans to diversify Macau<\/span>
\n Casino stocks could see some volatility as Chinese President Xi Jinping arrives in Macau to mark the 20th anniversary of its handover to China. A slew of supportive policies are expected to be announced, aimed at diversifying Macau’s casino-dependent economy into a financial center, including a new yuan-denominated stock exchange. They’re widely seen as a reward for the territory’s stability and loyalty, unlike the former British colony of Hong Kong, which has been rocked by six months of anti-government protests.<\/span>
\n U.S. finalizing limits of sensitive tech exports<\/span>
\n “Based on their titles, the rules appear to be narrowly tailored to address specific national security issues, which should go a long way to calming the nerves of those in industry concerned that the administration would impose controls over broad categories of widely available technologies,” said Kevin Wolf, former assistant secretary of commerce for export administration. The rules, which could cover sectors from AI and quantum computing to 3-D printing and robotics, will also be submitted to international bodies for approval so that they may be implemented overseas, not just by the U.S.<\/span>
\n Vaping studies and news roundup<\/span>
\n The nicotine formula used by Juul (JUUL) is nearly identical to the flavor and addictive profile of Altria’s (NYSE:MO) Marlboro cigarette brand, according to researchers at the Portland State University in Oregon. Another study published in the American Journal of Preventive Medicine suggested that vapers had 1.3x the risk of developing respiratory disease compared to non-smokers, while cigarette smokers had 2.5x the risk. In related news, British American Tobacco (NYSE:BTI) and three other e-cig makers have been banned by the U.K. advertising watchdog from promoting their vaping products on public Instagram pages.<\/span>
\n What else is happening…<\/span>
\n Netflix (NASDAQ:NFLX) notches over 50% increase in originals.<\/span>
\n Court approves PG&E’s (NYSE:PCG) deal with wildfire victims.<\/span>
\n AB InBev (NYSE:BUD) enters multi-year partnership with the NHL.<\/span>
\n Price cut for China-built Tesla (NASDAQ:TSLA) Model 3s?<\/span>
\n UPS (NYSE:UPS) slips following a guidance cut at FedEx (NYSE:FDX).<\/span>
\n Smith & Wesson (NASDAQ:AOBC) faces legal action for mass shooting in Toronto.<\/span>
\n Tuesday’s Key Earnings<\/strong>
\n FedEx (FDX) -6.8% AH as operating margins plunged.
\n Navistar (NYSE:NAV) -10.5% giving light guidance.<\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 5:15 Fed’s Brainard: “Monetary Policy, Technology and Globalization”
\n 7:00 MBA Mortgage Applications
\n 10:30 EIA Petroleum Inventories
\n 12:40 PM Fed’s Evans Speech<\/span><\/span><\/span><\/span><\/span>
\n———————————
\n Good morning. Happy Tuesday. <\/span>
\nThe Asian\/Pacific<\/strong> markets closed mostly up. China, Hong Kong, South Korea, India and Taiwan rallied more than 1%. Europe, Africa and the Middle East<\/strong> currently lean up. Poland, the UAE, Greece, South Africa, Finland and Saudi Arabia are leading; Germany, Hungary and Spain are lagging. Futures in the States<\/strong> point towards a flat open for the cash market.<\/span>
\n—————
\nVIDEO: Trading Examples with BE, CRC, SHOP, SVM<\/a> <\/span>
\n—————<\/span>
\nThe 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>
\nThe crisis at Boeing is deepening after the planemaker halted production of a 737 line for the first time in two decades, as the grounding of its best-selling MAX jet drags into 2020. While Boeing (NYSE:BA) doesn’t expect to lay off any production line workers at this time, the move could have repercussions across its global supply chain and the U.S. economy (until now 737 MAX jets were produced at a rate of 42\/month). How long might the shutdown last? Boeing, whose shares are down 6% since the news, stressed this was up to the FAA.<\/span>
\nMore records<\/span>
\nEquities hit record highs on Monday, with Wall Street logging the fourth straight day of gains, as a Phase One trade deal cleared the way to end a banner year with a bang. “Increased trade is going to allow companies to start spending again on capital expenditures. That had been frozen, and most of those are technology purchases,” said Kim Forrest, founder of Bokeh Capital. U.S. stock index futures paused overnight, awaiting the latest from the data front – Housing Starts, Industrial Production and JOLTS – as well as earnings from Navistar (NYSE:NAV) and FedEx (NYSE:FDX).<\/span>
\nWhat to expect: FedEx results<\/span>
\nFollowing weak earnings guidance in September, FedEx (FDX) results come after the bell today as the shipping giant battles new competitors in the industry. Last week, Morgan Stanley said Amazon (NASDAQ:AMZN) is already delivering about half of its own packages in the U.S., and will soon pass both UPS (NYSE:UPS) and FedEx in total volume. E-commerce volume and holiday shipping is one topic FedEx management will likely address, as well as critical business-to-business activity.<\/span>
\nNetflix in numbers<\/span>
\nThe streaming giant saw revenue for its Asia-Pacific business increase 153% during a two-year period ending Sept. 30 and membership rise 148%, according to a company filing. “Europe, the Middle East and Africa” also more than doubled in subscribers since the start of 2017, and is the largest non-U.S. region. The new metrics showed a final tally of 158.3M members globally, which could persuade Wall Street to focus more on Netflix’s (NASDAQ:NFLX) growth outside the increasingly competitive U.S. market.<\/span>
\nU.S., Mexico settle USMCA labor row<\/span>
\nTensions have been defused over the new USMCA trade deal as U.S. Trade Representative Robert Lighthizer met with Mexican deputy foreign minister Jesus Seade in Washington. Mexico had expressed fears that the “attach\u00e9s” called for in the agreement would effectively serve as “labor inspectors,” but the U.S. said they will not be labeled as such and will abide by all relevant Mexican laws. The House Ways and Means Committee is set to hold a hearing on the new version of USMCA today, with a vote expected in the full House on Thursday.<\/span>
\nDoor shut on extending Brexit transition<\/span>
\nThe sterling honeymoon has come to an end after the currency dropped by the most since last July, tumbling 1.1% to $1.3188. Threat of a no-deal split… Legislation from Prime Minister Boris Johnson will include text that guarantees the Brexit transition phase isn’t extended beyond December 2020, even if no new trade terms have been secured. The pound had climbed to as high as $1.3514 on Friday as the Tories swept to victory, fueling optimism there would be a speedy resolution to the Brexit deadlock.<\/span>
\nFrench strike negotiations are suspended<\/span>
\nFrench workers are taking to the streets for the 13th day of a transport strike over President Macron’s efforts to reform the pension system. The conflict is being complicated further by the resignation of Jean-Paul Delevoye, appointed by Macron to oversee pension reform, after it was exposed that he failed to report multiple side jobs. Strike organizers are hoping for a repeat of 1995, when they shut down a government pension reform effort following three weeks of strikes just before Christmas.<\/span>
\nToyota’s 2020 outlook nears Volkswagen<\/span>
\nAutomakers are fighting to sell cars in a difficult environment, but Toyota (NYSE:TM) is still forecasting growth in 2020, with sales of 10.77M vehicles worldwide. That puts it closer to No. 1 automaker Volkswagen (OTCPK:VWAGY), which delivered 10.83M vehicles – including its MAN and Scania heavy trucks – in 2018, and has been the top-selling automaker for the past five years. Alliances are also becoming ever more critical in the global auto industry as manufacturers seek to pool resources to develop electric vehicles and autonomous capabilities.<\/span>
\nUnilever sales growth will miss forecasts<\/span>
\nLike other consumer goods companies, Unilever (NYSE:UN) has struggled to keep up with shoppers turning to fresher foods, niche brands or vegan trends. Sales gains are now seen at slightly below guidance for 2019, and underlying growth will be in the lower half of a multiyear range of 3% to 5% in 2020, according to the company, which blamed a slowdown in South Asia and weakness in North America. Analysts at RBC Europe said the new forecast implies Q4 growth will be the weakest in more than a decade. UN -6.1% premarket.<\/span>
\nRaising the tobacco age<\/span>
\nLegislation on a federal ban of the sale of tobacco products and e-cigarettes to people under 21 is being talked about in Washington once again. The smoking crackdown would give the FDA six months to develop regulations and then three years to work with states on implementing the change. A large number of states already have age laws in place, meaning the development isn’t unanticipated for companies like Juul (JUUL), Altria (NYSE:MO), Philip Morris (NYSE:PM) and Vector Group (NYSE:VGR).<\/span>
\nWhat else is happening…<\/span>
\nSEC settles with former Goldman (NYSE:GS) banker over 1MDB scandal.<\/span>
\nPanic in the coffee markets as futures soar.<\/span>
\nIntel (NASDAQ:INTC) buys AI chipmaker for $2B; Cisco (NASDAQ:CSCO) acquires Exablaze.<\/span>
\nRoku (NASDAQ:ROKU) falls after CFO announces resignation.<\/span>
\nPurdue Pharma paid out $10.4B amid opioid crisis.<\/span>
\nRoche (OTCQX:RHHBY) scores green light for $4.3B Spark’s (NASDAQ:ONCE) deal.<\/span>
\nToday’s Economic Calendar<\/strong>
\n8:00 Fed’s Kaplan Speech
\n8:30 Housing Starts
\n8:55 Redbook Chain Store Sales
\n9:15 Industrial Production
\n10:00 Job Openings and Labor Turnover Survey
\n12:30 PM Fed’s Williams Speech
\n1:00 PM Fed’s Rosengren Speech<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n—————————–
\n Good morning. Happy Monday. Hope you had a good weekend. <\/span>
\nThe Asian\/Pacific<\/strong> markets were split. China and Australia posted gains; Hong Kong, Thailand and the Philippines were weak. Europe, Africa and the Middle East<\/strong> are currently mostly up. The UK, Denmark, France, Germany, South Africa, Switzerland, Spain, the Netherlands, Austria and Saudi Arabia are doing well, while Greece lags. Futures in the States<\/strong> point towards a moderate gap up open for the cash market. <\/span>
\n—————
\nFREE Online Course: Jason Leavitt’s Mini Masterclass in Trading<\/a> <\/span>
\n—————<\/span>
\nThe dollar is down. Oil is flat; copper is up. Gold and silver are up. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\nStocks across the globe are going green again as investors digest the Phase One trade deal, which is expected to nearly double U.S. exports to China over the next two years. Shanghai is ahead by 0.6% and the Euro Stoxx 50 up 0.8%, while S&P 500 and Nasdaq futures are 0.4% higher and the Dow is expected to tack on 60 points at the open. Over in Britain, the FTSE 100 is advancing 2% for a second session on reduced uncertainty as Prime Minister Boris Johnson eyes a parliament vote before Christmas to “get Brexit done.”<\/span>
\nWhat’s in the U.S.-China trade deal?<\/span>
\nBesides agreeing to buy around $200B worth of American-made goods, China said it would crack down on intellectual property theft, forced technology transfers and deepen access to its financial markets. Beijing also suspended additional tariffs on some U.S. goods that were meant to be implemented on Dec. 15, as the U.S. held off on new duties and reduced existing levies. The deal, after proofreading and legal checks, will be signed in the first week of 2020.<\/span>
\nScottish referendum ruled out<\/span>
\n“We have just seen what happens when politicians try to overturn a referendum result,” senior cabinet minister Michael Gove told Sky News. “We were told in 2014 that would be the choice for a generation. We are not going to have an independence referendum in Scotland.” “You cannot hold Scotland in the union against its will,” SNP leader Nicola Sturgeon responded. “You cannot just lock us in a cupboard and turn the key and hope that everything goes away. If the U.K. is to continue, then it can only be by consent.”<\/span>
\nFresh tensions over USMCA enforcement<\/span>
\nMexico is protesting the call for up to five U.S. attach\u00e9s in Mexico to track the enforcement of its labor laws and ensure compliance with the new USMCA. The version of the deal President Trump sent to Congress on Friday to be ratified included the provision, but the draft that Mexico agreed to and signed did not, WSJ reports. Announcement coming? Mexico trade negotiator Jes\u00fas Seade traveled to Washington on Sunday to talk over the details with U.S. Trade Rep. Robert Lighthizer and other U.S. lawmakers.<\/span>
\nHalting production of the 737 MAX?<\/span>
\nBoeing (NYSE:BA) -2.4% premarket on reports that the planemaker could either suspend or cut back production of the 737 MAX after failing to meet its own deadline for FAA recertification for the grounded jet. A board decision, which could heap further pressure on airlines, could come today. Carriers are already paying higher rates to lease planes to make up for the loss in capacity, while delays to their expansion plans are holding back revenue growth, said Shukor Yusof of Endau Analytics in Malaysia.<\/span>
\nGrowing investor interest in space<\/span>
\nMorgan Stanley held its second annual space summit last week, with analyst Adam Jonas telling CNBC the NYC event “tripled the investor count” compared to last year’s conference, and “we ran out of room.” “Investor interest in space is really, really growing,” Jonas declared. “[But there are still] knowledge gaps and, in the public support for space, that’s what had been lacking.” The event featured multiple panels, including leaders from companies like Virgin Galactic (NYSE:SPCE), Viasat (NASDAQ:VSAT), Intelsat (NYSE:I), Maxar Technologies (NYSE:MAXR), Parsons (NYSE:PSN) and Jacobs Engineering (NYSE:J).<\/span>
\nGerman car industry warned over Huawei<\/span>
\nChina’s ambassador to Germany has threatened Berlin with retaliation if it excludes Huawei as a supplier of 5G wireless equipment, citing the millions of vehicles German carmakers sell in China. Chancellor Angela Merkel’s government has been widely accused of bowing to Chinese pressure after she ruled out banning Huawei from the country\u2019s 5G network. Lawmakers from her ruling coalition are seeking to overrule her decision with legislation that would impose a ban on “untrustworthy” 5G vendors.<\/span>
\nDuPont nutrition unit to merge with IFF<\/span>
\nDuPont (NYSE:DD) has reached a deal to combine its $26B nutrition business with International Flavors & Fragrances (NYSE:IFF), under a 55.4%-44.6% structure that will also see DuPont get a one-time cash payment of $7.3B. The company will be a major supplier of soy protein and binders for plant-based meat alternatives, as well as capsules for the pharma industry and scents for household cleaning products. It continues a multi-year strategy that saw the breakup of DowDuPont (after a merger in 2015) into three standalone companies – DuPont, Dow Inc. (NYSE:DOW) and Corteva (NYSE:CTVA). DD +1.9%; IFF -6% premarket.<\/span>
\n‘Frozen II’ skates past the $1B mark<\/span>
\nAt the top of the box office for three weeks, Disney’s (NYSE:DIS) Frozen 2 has lost its crown to Jumanji: The Next Level, but not before the film crossed the $1B milestone. The animated comedy is now the sixth Disney release of the year to join the billion-dollar club and the eighth title of 2019 thus far. Disney isn’t done yet. This coming weekend will feature the debut of Star Wars: The Rise of Skywalker, another movie that’s all but guaranteed to pass the $1B mark.<\/span>
\nNo deal at COP25<\/span>
\nSparring for two weeks in Madrid at the annual UN climate summit, delegates from nearly 200 nations failed to strengthen targets to cut emissions or to create a global carbon-trading system, two main goals of the 2015 Paris accord. Funding and financing to assist developing countries transition into less-polluting technology also proved contentious. The EU already committed to reaching net-zero emissions by 2050 on Friday, in an effort to counter the backtracking among major powers.<\/span>
\nWhat else is happening…<\/span>
\nGerman manufacturing slump deepens again.<\/span>
\nElectric bikes, food deal… Uber (NYSE:UBER) seeks path to profitability.<\/span>
\nChina targeting ‘around 6%’ growth in 2020 – Reuters.<\/span>
\nThe brief calm in Hong Kong is over.<\/span>
\nIs the OPEC+ deal much weaker than it looks?<\/span>
\nReport flags ‘cracks’ at Brazil Vale (NYSE:VALE) dam.<\/span>
\nCalifornia governor rejects PG&E (NYSE:PCG) bankruptcy plan.<\/span>
\nToday’s Economic Calendar<\/strong>
\n8:30 Empire State Mfg Survey
\n9:45 PMI Composite Flash
\n10:00 NAHB Housing Market Index
\n4:00 PM Treasury International Capital<\/span><\/span><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Friday. Happy Options Expiration Day. The Asian\/Pacific markets closed mixed. Hong Kong, South Korea, Malaysia, Indonesia and the Philippines did well while Japan, China and Taiwan were weak. Europe, Africa and the Middle East are mostly up. Denmark, France, Turkey, Germany, Finland, Switzerland, Norway, Italy, Austria, Sweden and Saudi Arabia are up; […]<\/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\/13666"}],"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=13666"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13666\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}