Monday Morning Reads
- It's All Going To End Badly
- In Search for Leverage
- Online Lenders Reduce Risk
- Shocked by Your Tax Refund?
- In Quest for Electric Supercars
- Furor Rages On
- Mass Production of iPhones to Start in India
- The Smart Gun Doesn’t Exist
- What Will Q1 Earnings Reveal About Economic Strength?
- Market Timing in Disguise?
- Futures point to muted open
- Boeing gets 737 Max advice from president
- Aphria misses by $0.16, misses on revenue
- Huawei can stay in Germany's 5G race
- A win for Tiger is a win for Nike
- Waste Management to buy Advanced Disposal Services for $2.9B - WSJ
- Another outage for Facebook, Instagram and WhatsApp
- American Air cancels 737 Max flights through summer
- M&T Bank beats by $0.09, beats on revenue
- Citigroup Q1 2019 Earnings Preview
- Goldman Sachs Q1 2019 Earnings Preview
- Lots of M&A news on the radar
From the Weekend:
- Positive view on CVS (CVS). Barron's Report
- Positive views on FANG, CXO, NBL. Barron's Report
- Positive view on Alcon (ALC). Barron's Report
- Positive view on Disney (DIS). Barron's Report
- Positive views on HBAN, KEY, VLO, KSS, PEP, MDT. Barron's Report
- Cautious views on EA, ATVI, TTWO. Barron's Report
- Avianca (AVH) is cancelling 153 flights next week amid risks it can lose 30% of its fleet. Reuters Report
- Police investigators are using Google (GOOG) to track suspects. NY Times Report
- A key Barclays (BCS) investor has voted against Board seat for activist Edward Bramson. Sunday Times UK Report
- American Airlines (AAL) has cancelled all Boeing (BA) 737 Max flights through August 19. CNBC Report
- Apple (AAPL) could invest $500 mln in gaming service. FT Report
- Facebook (FB) suffered an outage Sunday that lasted hours. Bloomberg Report
- A goodwill accounting standard will be key for success of merger between Deutsche Bank (DB) and Commerzbank (CRZBY). WSJ Report
- Canada recreational marijuana sales are below expectations for the first six months (TLRY, CGC, MJ, NBEV). WSJ Report
- Germany regulators will likely not exclude Huawei from 5G (XLK). FT Report
- Apple (AAPL) / Qualcomm (QCOM) trial will begin tomorrow. FT Report
- Cannabis retailers are preparing for April 20 holiday where sales are expected to double (MJ, TLRY, NBEV, CGC). Bloomberg Report
- Volkswagen (VWAGY) plans to make electric SUV for China in 2021 (TSLA). Reuters Report
- Germany regulators will look into Damiler (DDAIF) Mercedes emission issue that is impacting 60k cars. Reuters Report
- Huawei is open to selling 5G chips for Apple (AAPL) iPhones. CNBC Report
- Catalent (CTLT) to purchase Paragon Bioservices for $1.2 bln. WSJ Report
Though it will be a shorter trading week (due to Good Friday), traders will have plenty of things to monitor. Bank and financial earnings continue to pour in today, with Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Charles Schwab (NYSE:SCHW) and M&T Bank (NYSE:MTB) updating investors before the bell. U.S. stock index futures are holding steady ahead of the Q1 reports, pointing to a muted open on Wall Street. Other events throughout the week include Pinterest's (PINS) highly-anticipated IPO, retail sales data and the Fed's beige book release.
U.S. Treasury Secretary Steven Mnuchin said on Saturday a U.S.-China trade agreement would go "way beyond" previous efforts to open China’s markets to American companies and the two sides were "getting close to the final round of concluding issues." "This is way beyond anything that looked like a bilateral investment treaty," he added. U.S. negotiators have also reportedly tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing.
"If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation," President Trump tweeted on Sunday. "Quantitative tightening was a killer, should have done the exact opposite!" ECB President Mario Draghi took the rare step of sounding concern over the independence of the Fed in the face of the constant criticism and cautiously stuck to the message that an upturn in the European economy is still possible in the second half of 2019.
A communique from the IMF's steering committee, released Saturday in Washington, said that "growth is projected to firm up in 2020, but risks remain tilted to the downside." "These include trade tensions, policy uncertainty, geopolitical risks, and a sudden sharp tightening of financial conditions. To protect the expansion, we will continue to mitigate risks, enhance resilience, and, if necessary, act promptly to shore up growth for the benefit of all."
The idea of a second Brexit referendum is "very likely" to be put before Britain’s parliament again although the government remains opposed to any new plebiscite, according to Chancellor of the Exchequer Phillip Hammond. While the government was opposed to a new public vote, many Labour lawmakers are pressing their leader Jeremy Corbyn to demand a new referendum in talks with the government. Theresa May has so far failed to get her own Conservative Party behind her Brexit divorce deal and has reached out to the opposition.
French President Emmanuel Macron will address his nation this evening to announce a set of measures designed to quell the anger that has fueled the Yellow Vest protests. It follows a 10-week national debate devised to assuage grassroots discontent and relaunch his presidency, a month ahead of EU elections seen as a referendum on his policies. Some 31,000 Yellow Vests turned out across the country on Saturday for a 22nd consecutive weekend.
Facebook (NASDAQ:FB), Instagram and WhatsApp were down in much of the world for several hours on Sunday, in the latest failure to hit the three social media platforms. The company told the BBC: "We're sorry for any inconvenience," but gave few other details. Facebook experienced one of its longest outages in March, when some users around the globe could not access Facebook, Instagram and WhatsApp for more than 24 hours.
The grounding of Boeing's (NYSE:BA) 737 MAX jetliners continues to ripple through the airline industry, with American Airlines (NASDAQ:AAL) now joining Southwest (NYSE:LUV) in extending flight cancellations into August. Together, the two airlines will be cutting an average of 275 flights a day and many of them will be during the key summer travel period. It's still unclear when the Max, which has been grounded since mid-March, will return as Boeing works on a highly-awaited software fix.
Expanding its digital business and North American footprint, French advertising giant Publicis (OTCQX:PUBGY) will pay $4.4B to acquire Alliance Data's (NYSE:ADS) Epsilon marketing unit. Catalent (NYSE:CTLT) is set to announce this morning it will acquire privately-held Paragon Bioservices for $1.2B, in a bid to expand its gene therapy manufacturing capabilities. Meanwhile, in one of the biggest solid-waste company acquisitions in more than a decade, Waste Management (NYSE:WM) is reportedly near a deal to acquire rival Advanced Disposal Services (NYSE:ADSW) for nearly $2.9B.
What else is happening...
'Make Stock Buybacks Illegal?' reads a new headline from contributor Lance Roberts.
German regulator says Huawei can stay in 5G race.
In Asia, Japan +1.4%. Hong Kong -0.3%. China -0.3%. India +0.4%.
In Europe, at midday, London flat. Paris flat. Frankfurt -0.1%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq -0.1%. Crude -0.3% to $63.70. Gold -0.4% to $1289.60. Bitcoin +1.8% to $5149.
Ten-year Treasury Yield flat at 2.56%
Today's Economic Calendar
8:30Empire State Mfg Survey
8:30Fed's Evans Speech
12:00 PMFed's Evans: Economic Conditions and Monetary Policy
4:00 PMTreasury International Capital