Wednesday Morning Reads

Wednesday Morning Reads





Morning Charts:

Open Interest Changes for Today:

Seeking Alpha:

Brexit negotiations continue today after yesterday’s talks failed to finalize some important issues, according to The Wall Street Journal. A key summit of EU leaders starts tomorrow, where a deal is still possible. There’s about two weeks left before the U.K.’s scheduled departure.

Service debut for long-haul Boeing plane depends on demand - executive

Boeing's (NYSE:BA) plans for putting its 777-8 craft into service for the world's longest-ever commercial flights depend somewhat on customer demand, a company exec says. Boeing hopes to win an order from Qantas for use on the Sydney-London route, over the competing A350-1000 from Airbus (OTCPK:EADSY); Qantas would hope to have delivery in late 2022, but an engine delay in Boeing's 777-9 may have pushed the 777-8 beyond an earlier plan for 2022 service.

WeWork stops China expansion

WeWork (WE) will continue to open its planned locations for 2020, but will halt its expansion plans for 2021, according to Nikkei. WeWork has opened offices in 125 buildings in 12 cities in the region since entering China in 2017. The key growth market accounts for 15% of total WeWork locations and is the third-largest geography in revenue. WeWork is cutting back as it works to extinguish its cash burn after the failed IPO.
Go deeper: SoftBank hires bankers for WeWork cash issue.

Apollo Global offers $5B bid for Tech Data

Apollo Global Management (NYSE:APO) has reportedly approached Tech Data (NASDAQ:TECD) with a $130/share cash buyout offer, which amounts to about $5B. Tech Data’s shares are currently near all-time highs on optimism that demand from small and medium-sized businesses will remain strong despite macro concerns.
Go deeper: See Tech Data’s average ratings.

United Airlines flies after raising full-year earnings guidance

United Airlines (NASDAQ:UAL) topped Q3 earnings expectations and raised its FY19 EPS forecast to $11.25-12.25, in-line with consensus estimates. The company says this quarter’s performance puts United “ahead of pace” to meet its $11-13 EPS goal by the end of 2020.
Go deeper: Earnings press release.

Eaton to sell lighting business to Signify in $1.4B deal

Eaton (NYSE:ETN) has agreed to sell its Lighting business to Signify (OTCPK:PHPPY) for $1.4B after a comprehensive review of various transaction alternatives. The Lighting unit amassed sales of $1.7B in 2018, about 8% of the company’s overall revenue. The acquisition is the largest by Signify, the former Philips Lighting, which was spun off from Philips in 2016.

Johnson & Johnson sees $110M talc verdict overturned

An appeals court in Missouri has overturned a $110M verdict against Johnson & Johnson (NYSE:JNJ) in a case over whether the company's talc caused ovarian cancer. That overturned a 2017 decision favoring a Virginia woman who used the talc for feminine hygiene for decades. The appeals court cited a state supreme court ruling limiting out-of-state plaintiffs' ability to sue. But J&J still faces several other lawsuits in St. Louis.

What else is happening...

Charter (NASDAQ:CHTRprices $2B in debt.

Buffett (BRK.A,BRK.B) asks for Fed OK, to boost Bank of America (NYSE:BAC) stake above 10%.

Pratt (NYSE:UTXurges engine checks after Swiss A220 flight diverted.

Aramco (ARMCO) to pay up to $450M in fees to IPO advisors - Bloomberg.

Tuesday's Key Earnings
United Airlines (UAL+1.4% AH on earnings beat, raising full year guidance.
Interactive Brokers (NASDAQ:IBKR-0.8% AH on in-line earnings, higher currency diversification loss.
J.B. Hunt Transport Services (NASDAQ:JBHT+0.5% AH on missing Q3 earnings, flat volumes.
América Móvil (NYSE:AMXremains flat post earnings.
Sleep Number (NASDAQ:SNBR+5.9% AH on earnings beat, double-digit comp sales growth.

Today's Markets
In Asia, Japan +1.20%. Hong Kong +0.61%. China -0.41%. India +0.02%.
In Europe, at midday, London -0.20%. Paris -0.27%. Frankfurt -0.01%.
Futures at 5:30, Dow -0.32%. S&P -0.33%. Nasdaq -0.29%. Crude -0.47% to $52.61. Gold +0.24% to $1,487. Bitcoin -2% to $8,136.
Ten-year Treasury Yield -4.5 bps to 1.724%.

Today's Economic Calendar
7:00 MBA Mortgage Applications
8:30 Retail Sales
9:00 Fed's Evans: Monetary Policy
10:00 Atlanta Fed's Business Inflation Expectations
10:00 Business Inventories
10:00 NAHB Housing Market Index
2:00 PM Fed's Beige Book
3:00 PM Fed's Brainard: “Future of Money in the Digital Age”
4:00 PM Treasury International Capital

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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