Monday Morning Reads

Monday Morning Reads




  • Positive view on Slack (WORK). Barron's Report
  • Positive view on American Airlines (AAL). Barron's Report
  • Positive view on Google (GOOG). Barron's Report
  • Positive view on Wells Fargo (WFC). Barron's Report
  • BP (BP) CEO Bob Dudley is aiming to announce retirement. Telegraph UK Report
  • IEX Exchange could soon be put up for sale (ICE, NDAQ, CME). NY Post Report
  • Boeing (BA) engineers omitted safeguards from 737 Max 8 flight-control systems. WSJ Report
  • Google (GOOG) internet protocol subject of antitrust investigation. WSJ Report
  • US officials to look at hacking vulnerabilities in airlines (HACK, JETS). WSJ Report
  • CVS (CVS) stops selling Zantac products following FDA alert. WSJ Report
  • Nasdaq (NDAQ) tightening restrictions on IPOs on small Chinese companies. Reuters Report



Morning Charts:

Open Interest Changes for Today:

Seeking Alpha:

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’s Nikkei 225 closing down 0.6%, Hong Kong’s Hang Seng up 0.5%, and in Singapore, the FTSE Straits Times Index fell 0.3%.

U.K. finance minister says Britain will leave EU on Oct. 31, hopefully with deal

“Hopefully we leave with a deal,” U.K. Finance Minister Sajid Javid told ITV, adding that leaving with a deal isn’t perfect but it’s “appropriate.” 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.

GM, UAW talk on as strike enters third week

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.

Rio Tinto scraps sale/IPO for Canadian iron ore unit

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.
Go deeper: Take a look at Rio Tinto’s cash flow.

Japan's KDDI chooses Nokia for 5G upgrade

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.

Facebook will have to share messages with the U.K.

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’t be able to use information obtained from British firms in any cases carrying the death penalty.

Speaking of encryption…

In the U.S., Congressional antitrust investigators are scrutinizing plans by Google (GOOGGOOGL) 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’s 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’t currently support - giving Google a competitive advantage.

What else is happening...

CVS Health (NYSE:CVSstops selling Zantac heartburn drug.

BP (NYSE:BP) to announce CEO retirement.

M&A deal activity pace slows.

Volkswagen (OTCPK:VWAGYDieselgate case starts in Germany.

‘Cracking issue’ on some Boeing (NYSE:BA) 737 plans.

Today's Markets
In Asia, Japan -0.56%. Hong Kong +0.53%. China -0.92%. India -0.38%.
In Europe, at midday, London -0.19%. Paris +0.02%. Frankfurt +0.01%.
Futures at 6:20, Dow +0.33%. S&P +0.35%. Nasdaq +0.51%. Crude -0.97% to $55.37. Gold -0.85% to $1,493.60. Bitcoin -2.1% to $7,956.
Ten-year Treasury Yield +2.6 bps to 1.699%.

Today's Economic Calendar
9:45 Chicago PMI
10:30 Dallas Fed Manufacturing Survey

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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