Tuesday Morning Reads

Tuesday Morning Reads




Morning Charts:

Open Interest Changes

Seeking Alpha:

Shares of Alibaba's secondary listing in Hong Kong closed at HK$187.60, 6.6% higher than the issue price, marking this year's largest share sale and a boost for the embattled Hong Kong market. Alibaba (NYSE:BABA) intends to use the funds to diversify and has raised at least $11.3B from the deal (that could reach as much as $12.9B if an over-allotment option is exercised). While the offering was larger than the roughly $8B raised by Uber (NYSE:UBER) in May, it's still expected to be topped by Saudi Aramco's (ARMCO) anticipated listing in Riyadh in December.
Go deeper: 'Alibaba's Undervaluation Has Reached A Critical Point' by Oleh Kombaiev.

Data in the mix with stocks at records

Signs of trade progress on Monday helped propel U.S. indices to records as the DJIA tacked on 190 points and returned to the 28,000 level. Dow futures are now ahead by 0.6%, though S&P and Nasdaq futures have pulled back a bit, as leaders of the U.S.-China trade negotiations held another phone call on Tuesday morning. Investors today are also eyeing the U.S. data front, with new home sales expected to jump and consumer confidence figures on tap.
Go deeper: Ironman at Political Calculations models S&P 500 through end-2019.

Powell sees 'glass more than half full'

"Monetary policy is now well positioned to support a strong labor market and return inflation decisively to the Fed's 2% target," Fed Chair Jerome Powell said Monday evening at the Greater Providence Chamber of Commerce. "At this point in the long expansion, I see the glass as much more than half full. With the right policies, we can fill it further, building on the gains so far and spreading the benefits more broadly to all Americans."
Go deeper: Alexander Veytsman says not to forget the yield curve.

Dwindling opposition to Sprint, T-Mobile merger

T-Mobile's (NASDAQ:TMUS) efforts to close its deal with Sprint (NYSE:S) are gathering pace before a trial with opposing attorneys general on Dec. 9. Nevada is the next state to drop its opposition to the tie-up in exchange for early deployment of next generation wireless networks and the promise of several hundred jobs. On Monday, Texas attorney general Ken Paxton announced that his office additionally "reached a settlement with T-Mobile resolving the state's antitrust claims against the proposed merger." TMUS +1.3% premarket.
Go deeper: Stone Fox Capital comments on T-Mobile CEO Legere's retirement.

Global ticketing giant

eBay (NASDAQ:EBAY) agreed to sell its StubHub business on Monday to Viagogo Entertainment, a significant competitor internationally - and particularly in the U.K. and Europe. Already among the largest players in the growing secondary market for sports, music and live-entertainment, the combined company expects to sell hundreds of thousands of tickets each day across more than 70 countries. The $4.05B deal is also a major cash windfall for eBay, which scooped up StubHub for $310M in 2007.
Go deeper: eBay faces competition from specialized marketplaces, writes Gainsboro Capital.

Investors size up Impossible Foods

Impossible Foods is in talks with investors about a new funding round that would more than double the $2B valuation the alternative protein company attained earlier this year. Sources additionally told Reuters that the fundraising could mean an initial public offering may be on tap as early as next year. Rival Beyond Meat (NASDAQ:BYND) still trades at 3X the level where the company's IPO was priced in May and the strong rally has pushed most of the sell-side community to the sidelines.

Timeline for Fiat Chrysler, PSA deal

Giving an estimated date for their proposed tie-up, Fiat Chrysler (NYSE:FCAU) and Peugeot-owner PSA (OTCPK:PEUGF) told their employees they would sign a binding merger agreement in the coming weeks. Nine working groups were further established to create the world's fourth-largest carmaker. FCA Chairman John Elkann said last week he was not worried that a shock racketeering lawsuit from GM (NYSE:GM) would derail the merger, which aims to keep the companies ahead of the curve with connected, electrified, shared and autonomous mobility.

What else is happening...

Starboard Value takes stake in CVS Health (NYSE:CVS) - Dow Jones.

Calvin Klein owner (NYSE:PVH) warns on China tariffs.

AIG (NYSE:AIGsells vast holdings of Fortitude Re for $1.8B.

Canada's biggest rail strike enters the eighth day.

House Democrats 'within range' of USMCA trade deal.

Tuesday's Key Earnings
Hewlett Packard Enterprise (NYSE:HPE-4.5% AH as revenue came up short.
Palo Alto Networks (NYSE:PANW-8.5% AH on downside FY EPS outlook.

Today's Markets
In Asia, Japan +0.4%. Hong Kong -0.3%. China flat. India -0.2%.
In Europe, at midday, London +0.1%. Paris -0.1%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.6%. S&P -0.1%. Nasdaq -0.1%. Crude +0.4% to $58.24. Gold +0.1% to $1457.70. Bitcoin +6.3% to $7177.
Ten-year Treasury Yield -2 bps to 1.75%

Today's Economic Calendar
8:30 International trade in goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 New Home Sales
10:00 Richmond Fed Mfg.
11:30 Results of $18B, 2-Year FRN Auction
1:00 PM Results of $41B, 5-Year Note Auction
1:00 PM Fed's Brainard: “Federal Reserve Framework Review of Monetary Policy Strategy, Tools, and Communication”

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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