Friday Morning Reads
- The Jobs Report
- When Will It Be Time To Sell
- Wells Fargo (WFC) is planning new mortgage bond. Bloomberg Report
- Plunge Coming?
- SoftBank (SFTBY) plans to make $500 mln investment in Grab. Reuters Report
- Dip or Catch Up?
- Kraft Heinz (KHC) passed up on takeover offer for Campbell Soup (CPB). NY Post Report
- Apple (AAPL) might have issues with pricing strategy after 5G. Digitimes Report
- Futures inch down ahead of jobs report
- IEA: Plastic use driving oil demand to 2050
- DOT takes hands-off approach to self-driving cars
- Chinese spy chip report weighs on Apple suppliers
- GE lays out pay package for new CEO Culp
- Tesla falls further after Musk mocks SEC in tweet
- Southwest Airlines reports September traffic
- Kraft Heinz passes on Campbell Soup
Chart of the Day:
- The Watchlist
- Week Ahead Webinar
- Today's Option Recap
- 2018 Top 5 For Back Half of 2018
- 2018 Top 5 Stocks
Todays Open Interest Changes:
The U.S. economy likely created jobs at a brisk clip in September, with anticipated job gains of 191,000 matching the monthly average for the past three months, and the unemployment rate probably falling to an 18-year low of 3.8%. Further suggesting gradual interest rates increases from the Fed, the non-farm payrolls data is expected to show a steady rise in wages, implying moderate inflation pressures and easing concerns about the economy overheating.
EU Brexit negotiators told national diplomats in Brussels late Thursday that a divorce deal with Britain was "very close," according to a tweet from Reuters U.K. Bureau chief Guy Faulconbridge. Sterling got a slight boost on the news. Fresh proposals likely emerged on how to avoid extensive checks on the Irish border, a key potential deal-breaker in the closely watched Brexit talks.
The end of an era... Mystery-cloaked numbered bank accounts have officially come to a close in Switzerland, the world's biggest center for managing offshore wealth. Swiss authorities have begun automatically sharing client data with tax agencies in dozens of other countries - under global standards that aim to crack down on tax cheats - and will expand next year to about 80 partner states.
Beijing lashed out overnight at U.S. Vice President Mike Pence after Washington's No.2 accused China of "malign" efforts to undermine the U.S. elections process and "reckless" military actions in the South China Sea. "This is nothing but speaking on hearsay evidence, confusing right and wrong and creating something out of thin air," according to China's foreign ministry. Pence also took aim at Google's (GOOG, GOOGL) Project Dragonfly, saying it would accelerate Chinese censorship efforts.
Crushed by years of recession and political upheaval, Brazilians will head to the polls Sunday for the first round of presidential elections. The current frontrunner is Jair Bolsonaro, still recovering from being stabbed while on the campaign trail, with the Workers' Party's Fernando Haddad likely the runner-up. The economy, unemployment, crime and corruption have become contentious issues for the candidates.
Oil demand for transport is expected to slow by 2050 due to the rise of EVs and government efforts to cut carbon emissions, according to the IEA, but that will be offset by rising demand for plastics and other petrochemical products. In fact, the world's energy watchdog sees petrochemicals accounting for more than a third of global oil demand growth by 2030 and nearly half of demand growth by 2050.
Unilever has scrapped plans to move its headquarters to the Netherlands in the face of growing opposition from U.K. investors. The decision would have kicked Unilever (UL, UN) out of the FTSE 100, forcing funds that track the benchmark index to sell their holdings without a premium. The withdrawal also means that for now, Britain gets to keep one of its most valuable companies as it moves closer to Brexit.
Shares in Apple's suppliers saw a broad decline overnight on the back of a bombshell report that alleged Chinese spy chips were discovered in data center equipment used by Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL). The tech giants have denied the allegations by Bloomberg Businessweek, which said the hack reached almost 30 U.S. companies and compromised America's technology supply chain. Across Asia: AMS -3.7%, Catcher -1.4%, Largan -7.3%, LG Display -2.1%, Murata -3.9%, Wistron -4.4%, Hon Hai -1.4%, AAC Tech -2.1%, Merry -6.6%, TDK -4.8% TSMC -1.6%.
Samsung Electronics expects its third-quarter operating profit to be its highest ever at 17.5T won ($15.4B), topping analyst estimates amid strong demand for its electronic components. However, many anticipate Q3 to mark a peak in Samsung's (OTC:SSNLF) earnings as a two-year super cycle of tight supply comes to an end, with prices of some chips already sliding sharply.
The WeWork culture is catching on via the co-working giant's latest endeavor: Powered By We. Diversifying its offerings beyond individuals and small businesses, WeWork (VWORK) is moving into the corporate sphere through new partnerships with Standard Chartered (OTCPK:SCBFF), UBS (NYSE:UBS) and others. It's set to redesign and operate floors - think ping pong tables, beer taps and open floor space - to foster innovative thinking among employees.
In a lengthy employee memo, Snap (NYSE:SNAP) CEO Evan Spiegel addressed challenges ahead, admitting that a recent product redesign was "rushed." The company's "stretch goal" is still to break even in Q4 and achieve "full year profitability" in 2019, as well as remaking its Discover section (devoted to professional media and celebrity content). SNAP shares are clawing back some of yesterday's losses, now up 3.3% premarket.
Decade-old rape allegations against Cristiano Ronaldo, one of the world's best soccer players, is prompting alarm among corporate sponsors. "We are deeply concerned... and will continue to closely monitor the situation,” Nike (NYSE:NKE) said in a statement, echoing similar sentiment from Electronic Arts (NASDAQ:EA). Ronaldo has said his conscience was clear and that he would await the results of any investigation.
Wells Fargo is planning its first offering of bonds tied to U.S. home loans without government backing since the 2008 financial crisis, Bloomberg reports. Top portions of Wells' (NYSE:WFC) $441M non-agency bond will be rated AAA, while the sale will be finalized next week. More than $1T of mortgage bonds without government backing were issued in 2005 and 2006 each, according to Sifma.
Preparing for a future with self-driving vehicles, the U.S. Department of Transportation has released an 80-page report entitled "Automated Vehicles 3.0." It touts six principles, including prioritizing safety, remaining technology neutral, modernizing regulations and encouraging a consistent regulatory and operational environment. Guidelines are voluntary with a self-policing approach, rather than being regulations, which "could stifle innovation."
Upping its current $11B valuation, SoftBank (OTCPK:SFTBY) is reportedly nearing a deal to invest about $500M in Grab (GRAB) as part of the latest funding round of Southeast Asia's biggest ride-hailing firm. After acquiring Uber's (UBER) Southeast Asian business earlier this year, Grab is now looking to offer services such as food delivery, electronic money transfers and mobile payments.
Tesla -2.8% premarket after Elon Musk fired off a tweet apparently mocking the SEC after yesterday's closing bell. "Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!" wrote the Tesla (NASDAQ:TSLA) CEO. Musk also alleged that BlackRock (NYSE:BLK) and other financial firms pocket "excessive profit" from short lending, while pretending to charge low rates for "passive" index tracking.
New General Electric CEO Larry Culp could receive $21.3M in annual compensation and earn shares valued at more than $200M if he manages to reverse the company's deep stock slump, according to an SEC filing. "The board's package to attract Larry is overwhelmingly tied to performance... Nearly 90% of his annual pay will be at risk." Culp is the first outside CEO for GE in the company's 126-year history.
In Asia, Japan -0.6%. Hong Kong -0.2%. China closed. India -2.3%.
In Europe, at midday, London -0.6%. Paris -0.4%. Frankfurt -0.6%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq -0.1%. Crude +0.4% to $74.62. Gold +0.3% to $1205.50. Bitcoin -0.2% to $6544.
Ten-year Treasury Yield +1 bps to 3.2%
Today's Economic Calendar
8:30 Non-farm payrolls
8:30 International Trade
12:30 PM Fed's Kaplan speech
12:30 PM Fed's Bostic Speech
1:00 PM Baker-Hughes Rig Count
3:00 PM Consumer Credit