{"id":13677,"date":"2019-12-23T08:44:41","date_gmt":"2019-12-23T13:44:41","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=13677"},"modified":"2019-12-23T08:44:41","modified_gmt":"2019-12-23T13:44:41","slug":"before-the-open-dec-23-27","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=13677","title":{"rendered":"Before the Open (Dec 23-27)"},"content":{"rendered":"

Good morning. Happy Friday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly up. Japan, Hong Kong, South Korea, India, Taiwan and Malaysia did well; China and New Zealand were weak. Europe, Africa and the Middle East<\/strong> currently lean to the upside. Denmark, Poland, Germany, Russia, South Africa, Hungary, the Netherlands and Portugal are leading while the UAE and Italy lag. 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 down. Oil is up; copper is down. Gold is flat; silver is down. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Banks are making the biggest round of job cuts in four years as they slash costs to deal with a slowing economy and adapt to digital technology, Bloomberg reports, citing filings and labor unions. Morgan Stanley (NYSE:MS) is the most recent bank to join the spree, cutting about 1,500 jobs, according to people familiar with the matter. Overall, more than 50 lenders have announced plans to get rid of a combined 77,780 jobs this year, the most since 91,448 in 2015. European banks, which face negative interest rates, account for almost 82% of the total.<\/span>
\n Global equity markets spread holiday cheer<\/span>
\n U.S. stock futures all point up, following rising equity markets in Europe and Asia that brought global benchmarks to new records. S&P futures gained 0.2%, the Nasdaq rose 0.3% and the Dow added 0.3%, following a record-setting session on Thursday that was buoyed by strong holiday sales reported by Amazon and Mastercard\u2019s SpendingPulse. Hong Kong\u2019s Hang Seng Index closed up 1.3% and Taiwan\u2019s TPEx 50 rose 0.4%, led by communication services and tech stocks. Stoxx Europe 600 rose 0.3% in early trading in Europe; the FTSE gained 0.3% and Germany\u2019s DAX increased 0.4%.<\/span>
\n Boeing counselor handling Max crash legal matters retires<\/span>
\n J. Michael Luttig, who has been managing legal matters associated with the Lion Air and Ethiopian Airlines crashes, will retire from Boeing (NYSE:BA) at year-end. Luttig served as the planemaker\u2019s general counsel since 2006 and assumed his current responsibilities in May 2019.<\/span>
\n YouTube creators gain more control in copyright claims<\/span>
\n Creators using Google\u2019s (NASDAQ:GOOG) YouTube can now address copyright claims directly in the Studio back-end workspace. The update also provides an \u201cAssisted Trim\u201d feature, which pre-sets endpoints to where the claimed content appears in a video for easier editing. Copyright disputes between creators and music labels or other third parties have been a consistent problem, with creators often accusing the copyright holders of overzealous claims.<\/span>
\n Coca-Cola denies plans to enter CBD market<\/span>
\n The beverage maker refutes an anonymous YouTube video claiming that Coca-Cola (NYSE:KO) is developing a drink containing CBD extract for the Canadian market. A company statement said the rumors aren\u2019t true, and repeated its stance that it has no plans to enter the CBD market.<\/span>
\n Mortgage insurers keep an eye on Genworth<\/span>
\n Several mortgage insurers may be holding on to some excess capital in case Genworth\u2019s (NYSE:GNW) deal with China Oceanwide falls apart and the U.S. mortgage unit comes up for sale, Compass Point analyst Chris Gamaitoni wrote. The analyst said he doesn\u2019t have any insight into the reapproval status of the deal, but is watching closely \u201cto see if any developments lead to a disposal of the U.S. mortgage insurance business. On Monday, Genworth and Oceanwide extended the deadline for the merger to March 31, 2020, their 13th extension, and said the deal would require reapproval from the New York Department of Financial Services, Fannie Mae and Freddie Mac.<\/span>
\n What else is happening…<\/span>
\n Tesla (NASDAQ:TSLA) confirms $1.29B loan for Shanghai plant.<\/span>
\n Comcast (NASDAQ:CMCSA) seeks to buy streaming service Xumo.<\/span>
\n Astellas (OTCPK:ALPMF, OTCPK:ALPMY) buys Xyphos for up to $665M.<\/span>
\n Wesco (NYSE:WCC) sweetens bid for Anixter (NYSE:AXE).<\/span>
\n Today’s Economic Calendar<\/strong>
\n 10:00 State Street Investor Confidence Index
\n 10:30 EIA Natural Gas Inventory
\n 11:00 EIA Petroleum Inventories
\n 1:00 PM Baker-Hughes Rig Count
\n 3:00 PM Farm Prices<\/span><\/span><\/span><\/span><\/span><\/span>
\n———————————-
\n Good morning. Happy Thursday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly up. Japan, China, South Korea and New Zealand did well; India and the Philippines were weak. Europe, Africa and the Middle East<\/strong> currently lean to the upside. Denmark, Poland, Greece, Switzerland, Norway, Hungary and the Czech Republic are up; the UAE, Russia and Italy are 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 flat. Oil is flat; copper is up. Gold and silver are up. Bonds are flat. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n U.S. holiday e-commerce sales grew nearly 19% from the 2018 period, according to new Mastercard data. Online sales represented 14.6% of the total retail sales between November 1 and Christmas Eve, boosting retail giants like Amazon (NASDAQ:AMZN), Target (NYSE:TGT) and Walmart (NYSE:WMT).<\/span>
\n U.S., China closer to trade deal<\/span>
\n China\u2019s commerce ministry spokesman said the parties are close to signing the Phase 1 trade deal agreement. The parties are working through the necessary procedures while remaining in communication. Earlier this week, President Trump said there would be a signing ceremony with President Xi Jinping.<\/span>
\n Oil, gold gain on trade optimism<\/span>
\n Oil and gold prices gained in early hours after the positive comments on the U.S.-China trade deal. Brent crude and West Texas Intermediate both gained 0.4%, with the commodity also benefiting from an OPEC-led supply constriction. Gold crossed the $1,500 per ounce level, marking the strongest performance in nearly two months.<\/span>
\n AWS head sees continued Alibaba strength<\/span>
\n Amazon Web Services (AMZN) CEO Andy Jassy told Nikkei he expects Alibaba (NYSE:BABA) to continue to grow into a dominant cloud player, but sees Alibaba somewhat limited to China. Jassy said enterprise and public sector cloud adoption is in the early stages, with the U.S. as much as 36 months ahead of other countries in adoption.<\/span>
\n Allergan signs $750M Namenda settlement<\/span>
\n Purchasers of Allergan\u2019s (NYSE:AGN) Namenda asked a federal judge to approve a $750M settlement regarding claims the company conspired to keep generics for the Alzheimer\u2019s drug off the market. Allergan signed the settlement on December 20 but denied any wrongdoing.<\/span>
\n What else is happening…<\/span>
\n Blackstone (NYSE:BX) to replace CEO Calhoun in coming months.<\/span>
\n Greece may tap bond markets despite cash buffer.<\/span>
\n China shows surging imports of U.S. soy.<\/span>
\n Investors not concerned about profit-stock disconnect.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:30 Initial Jobless Claims
\n 10:00 State Street Investor Confidence Index
\n 1:00 PM Results of $32B, 7-Year Note Auction
\n 4:30 PM Money Supply
\n 4:30 PM Fed Balance Sheet<\/span><\/span><\/span><\/span><\/span><\/span>
\n——————————-
\n Good morning. Happy Tuesday.<\/span>
\n The Asian\/Pacific<\/strong> markets were mixed. China and New Zealand moved up; South Korea, India and Malaysia moved down. Europe, Africa and the Middle East<\/strong> currently lean up. Denmark, Poland, Turkey, Greece, Norway, Hungary and the Czech Republic are up; Italy is down. Futures in the States<\/strong> point towards a flat 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 slightly. Oil and copper are up. Gold and silver are up. Bonds are down. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Markets are looking to celebrate a different Christmas Eve than the one last year, which saw the S&P 500 dip into bear market territory after President Trump teased about firing Fed Chair Jerome Powell amid rising interest rates. Easing trade tensions, as well as rate cuts in recent months, saw the S&P 500 hit another record on Monday, up nearly 29% YTD, and Wall Street is looking to build on those gains during today’s holiday-shortened trading session. Futures are slightly in the green to commence the Santa Claus rally, which is the tendency for stocks to rise over the last five trading sessions of December and the first two trading sessions of January.<\/span>
\n Muilenberg gets the boot at Boeing<\/span>
\n Boeing (NYSE:BA) shares, which have slipped more than 20% over the past nine months, rose nearly 3% to lead all 30 Dow stocks on Monday after the company canned CEO Dennis Muilenburg in the wake of the 737 MAX crisis. “The board decided that a change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders,” according to a press release. Muilenburg will be replaced by Boeing Chairman David Calhoun, effective January 13, 2020 (CFO Greg Smith will serve as interim CEO during the brief transition period).<\/span>
\n Biggest day in U.S. retail history<\/span>
\n U.S. consumers are setting more holiday shopping records, as job growth and fatter wallets, along with stronger household finances, have put many in a buying mood this season. Marking the biggest single day in U.S. retail history, Super Saturday (12\/21) sales reached $34.4B, topping Black Friday’s $31.2B by 10%, according to Customer Growth Partners. Figures were paced by the ‘Big Four’ mega retailers – Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), Costco (NASDAQ:COST) and Target (NYSE:TGT) – while online spending this season has so far accounted for 58% of sales growth from a year earlier.<\/span>
\n Deliveries over public safety?<\/span>
\n Investigations by ProPublica and BuzzFeed News reveal that drivers delivering Amazon (AMZN) packages were involved in more than 60 crashes that led to serious injuries since 2015, including 13 deaths. The publications say the company repeatedly quashed or delayed safety initiatives – to prioritize faster deliveries and increased revenue – though Amazon maintains its rate of fatal crashes is better than the most recent federal rate. “Statistically at this scale, traffic incidents have occurred and will occur again, but these are exceptions, and we will not be satisfied until we achieve zero incidents across our delivery operations.”<\/span>
\n Judge strikes down NYC cruising cap<\/span>
\n Calling it “arbitrary and capricious,” Judge Lyle Frank of the Supreme Court of the State of New York has struck down a new rule limiting how much time ride-hail drivers can spend driving busy streets in Manhattan without passengers. It’s a win for Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), though the city’s mayor’s office is reviewing its legal options, including an appeal. NYC passed the rule in August with the aim of reducing traffic congestion in Manhattan, where ride-share vehicles make up close to a third of peak traffic.<\/span>
\n Musk trolls the bears<\/span>
\n “Whoa… the stock is so high lol,” Elon Musk tweeted yesterday as Tesla (NASDAQ:TSLA) shares topped the symbolic threshold of $420 – the price at which he wanted to take the EV maker private in 2018. Musk is also spending some time fact-checking his own Wikipedia page. He requested edits including the fact he does “zero investing,” adding that all his wealth was tied up in SpaceX (SPACE) and Tesla, and if both companies went bankrupt so would he.<\/span>
\n Pay bump for top brass at Netflix<\/span>
\n Six months after Netflix (NASDAQ:NFLX) shareholders decided against a lucrative executive compensation plan in a non-binding vote, the streaming giant has established a plan similar to the one nixed in June. It gives CEO Reed Hastings a $650K salary next year and $34M in stock options (a 10% increase from 2019), and awards Chief Content Officer Ted Sarandos exactly the same amount as Hastings, but via a different split. Shares of Netflix have climbed 24% this year, trailing the 29% rise in the S&P 500. The stock rose 39% in 2018.<\/span>
\n DraftKings is going public<\/span>
\n DraftKings (DRAFT) is becoming a listed company via an acquisition by Diamond Eagle Acquisition (NASDAQ:DEAC), which will change its name to DraftKings Inc. and reincorporate in Nevada. The new entity will be the only publicly traded pure-play sports betting and online gaming company in the U.S., with the deal expected to close in the first half of 2020. About a third of Americans now live in a state where sports betting is legal following a Supreme Court ruling in 2018.<\/span>
\n What else is happening…<\/span>
\n ByteDance (BDNCE) doesn’t plan on selling TikTok.<\/span>
\n Buffett prot\u00e9g\u00e9 Todd Combs to head Geico (BRK.A, BRK.B).<\/span>
\n Mylan (NASDAQ:MYL) gets U.S. FDA approval for Eliquis generic.<\/span>
\n $1.3B funding round for EV maker Rivian.<\/span>
\n SEC investigates BMW (OTCPK:BMWYY) over sales practices – WSJ.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:55 Redbook Chain Store Sales
\n 10:00 Richmond Fed Mfg.
\n 10:00 Results of $41B, 5-Year Note Auction
\n NYSE closes at 1:00 PM
\n SIFMA closes at 2:00 PM<\/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 were mixed. New Zealand, Taiwan and the Philippines did well. China was very weak; Australia was down too. Europe, Africa and the Middle East<\/strong> currently lean up. The UK, Denmark, Turkey, UAE, Greece, Norway and Saudi Arabia are up; South Africa, Italy and Israel are 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 small amounts. Gold and silver are up. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n China said it will reduce tariffs from Jan. 1 on more than 850 goods, including frozen pork, high-tech components and vital medicines, leading the Shanghai Composite Index to tumble 1.4% overnight. It will also cut import levies for more than 8,000 products for 23 countries and regions that have free-trade agreements with China, known as “most favored nation” rates. While the tariff reduction is not directly linked to the American trade war, it will likely guarantee that the coming Phase One trade deal with the U.S. doesn’t invite complaints from other trading partners.<\/span>
\n More record highs in store<\/span>
\n Wall Street futures are starting a holiday-shortened week ahead by 0.2% on the back of easing geopolitical risks and China’s plans to cut import tariffs for its trading partners. “The Phase One agreement and U.K. elections have cleared up tail risks, but the market is now transcending that euphoria,” said Stephen Innes, strategist at AxiTrader. “With plenty of capital yet to be deployed, markets could even push significantly higher supported by the global growth rebound.”<\/span>
\n Big\/small haul for ‘Rise of Skywalker’<\/span>
\n Despite a mixed fan reaction and thumbs-down review from most critics, The Rise of Skywalker took in an estimated $175.5M in the U.S. and Canada over the weekend, marking the lowest opening of the new Star Wars trilogy. It also garnered $198M internationally, bringing its global box office haul to $374M for the weekend, and could become Disney’s seventh $1B film released in 2019. The film will be the last Star Wars movie until 2022 as Disney puts the series on a “hiatus.”<\/span>
\n Satellite-to-device tech<\/span>
\n Apple (NASDAQ:AAPL) has a secret team working on satellite technology that the iPhone maker could use to beam internet services directly to devices, bypassing wireless networks, Bloomberg reports. It’s not a far fetched idea. Apple has increasingly made moves to design and control every aspect of its products, like its own custom A-series silicon and 5G modems. While a clear direction and use for satellites hasn’t been finalized, CEO Tim Cook has shown interest in the project and indicated it’s a company priority.<\/span>
\n Walmart bets on future of superstore<\/span>
\n Supercenters are again front and center for Walmart’s (NYSE:WMT) strategy, CEO Doug McMillon told a recent meeting, as the company debates how to best compete with Amazon.com (NASDAQ:AMZN) and its major revenue source: AWS. Besides consumer goods, Walmart’s sprawling stores – often open for 24 hours – would include venues to fill medical prescriptions, money transfer kiosks or hair salons. It contrasts from a strategy laid out just a year ago, when e-commerce and other businesses were shown as equal parts of a circle.<\/span>
\n Kalanick close to selling entire Uber stake<\/span>
\n Uber (NYSE:UBER) co-founder and former CEO Travis Kalanick has sold more than $2.5B worth of company shares since a lockup period expired last month, leaving him with less than 10% of his holdings. At the rate he’s going, he’ll be completely divested from Uber within days, raising questions about his confidence in the company and status as a board member. The sales have been a headwind for Uber in its shaky first year as a public firm. Shares are currently trading at around $30, more than a third lower than its $45 IPO price.<\/span>
\n Rescue needed for WeWork rescue plan<\/span>
\n SoftBank’s (OTCPK:SFTBY) attempt to secure $3B from Japan\u2019s three biggest banks has stalled as the lenders hit internal lending limits to the firm, Reuters reports. It complicates a $9.5B rescue package for WeWork (WE) and could result in SoftBank entering the new year without financing in place. The banks are now seeking ways to provide the funding while offsetting exposure, such as using some of SoftBank’s 26% stake in Alibaba (NYSE:BABA) as collateral.<\/span>
\n Construction continues on Nord Stream 2<\/span>
\n U.S. sanctions have temporarily stopped construction on Nord Stream 2 – as Washington opposes a project that will increase Europe’s dependence on Russian energy – though a workaround is already in progress. Gazprom (OTCPK:OGZPY) is the majority owner of the pipeline, which has financial backing from five European companies: Royal Dutch Shell (RDS.A, RDS.B), Germany’s Uniper (OTC:UNPPY) and BASF (OTCQX:BASFY), Austria’s OMV (OTCPK:OMVJF) and France’s Engie (OTCPK:ENGIY). Should the sanctions be expanded to western companies in the Nord Stream 2 consortium, Gazprom will buy out their stakes in the project and insulate the project from sanctions.<\/span>
\n Beleaguered Starliner returns to Earth<\/span>
\n Boeing’s (NYSE:BA) Starliner had a “bull’s-eye” landing in the New Mexico desert on Sunday after failing to hit the right orbit to reach the International Space Station. The entire ordeal appears to be bad news for Boeing’s century-old legacy of engineering prowess, which is already facing heat due to the 737 MAX crisis, but good news for SpaceX (SPACE), which is vying with Boeing to revive NASA’s human spaceflight capabilities. Boeing has advanced 1.3% this year, a fraction of the 29% gain posted by the S&P 500 Index, marking its worst underperformance compared with U.S. stocks since 2001.<\/span>
\n What else is happening…<\/span>
\n New $1.4B loan for Tesla’s (NASDAQ:TSLA) Shanghai plant.<\/span>
\n JD’s (NASDAQ:JD) logistics unit taps banks for IPO.<\/span>
\n Goldman Sachs (NYSE:GS) rules out loans for Arctic drilling.<\/span>
\n Bayer (OTCPK:BAYRY) soars on backing in glyphosate suit.<\/span>
\n CSX (NASDAQ:CSX) train derails near Harpers Ferry, W.VA.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 8:30 Chicago Fed National Activity Index
\n 8:30 Durable Goods
\n 8:30 New Home Sales
\n 11:00 Survey of Business Uncertainty
\n 1:00 PM Results of $40B, 2-Year Note Auction<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Friday. The Asian\/Pacific markets closed mostly up. Japan, Hong Kong, South Korea, India, Taiwan and Malaysia did well; China and New Zealand were weak. Europe, Africa and the Middle East currently lean to the upside. Denmark, Poland, Germany, Russia, South Africa, Hungary, the Netherlands and Portugal are leading while the UAE and […]<\/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\/13677"}],"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=13677"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13677\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}