>>> What to look at today - 10th of April 2019

Stocks traded mixed in Asia on renewed concern about a global economic slowdown and an escalation in trade tensions. Ten-year Treasury yields edged back below 2.50 percent.
Shares in Japan bore the brunt of losses, while those in Hong Kong posted modest declines. Chinese and Korean equities advanced. European futures were little changed while U.S. contracts ticked higher. Earlier, the S&P 500 Index fell for the first time in nine sessions as the Trump administration threatened tariffs on the European Union and the International Monetary Fund cut its global growth outlook to the lowest since the financial crisis. The pound gained as the European Union looked set to force the U.K to delay Brexit for as long as a year.
US After Hours LEVI +4%, WDFC -4%, PSMT -1.2% following earnings/guidance

Nikkei -0.53% Hang Seng -0.17% CSI +0.39% Shanghai +0.20% Shenzen +0.05%

Eur$ 1.1270 CNH 6.7193 CNY 6.7123 GBP 1.3071 JPY 111.14 WTI$ 64.21 +0.30%

S&P +0.14% EuroStoxx -0.14% FTSE -0.05% Dax -0.02% SMI -0.17%

Macro :
- Italy Sees EU10b Sales of State-Backed NPLs Over Next 2 Years
- Mnuchin Says He’s Not Really Concerned About the Inverted Curve
- Saudi Aramco Sells $12 Billion of Bonds in Unprecedented Debut

Keep an eye on :
- AIR FP : Airbus Dismissed >100 for Ethics/Compliance Issues in 2018: Rtrs
- AIR FP : Airbus May Start Bribery Settlement Talks By Year-End: Les Echos
- ADOC FP : Adocia ADO09 Topline Data Show Improved Blood Glucose Excursion
- ADP FP : ADP Shares Slip on Report of Privatization Bill Hurdle
- AKSO NO : Aker Solutions and FSubsea Create FASTSubsea
- ALT LN : Altitude Group Sees Earnings in Line With Market Expectations
- ASC LN : Asos 1H Pretax Misses Estimates; Keeps FY19 Views
- AZN LN : AstraZeneca’s Lynparza Gets New EU Approval for Breast Cancer
- ALCAR FP : Carmat to Delay Resumption of Artificial Heart Study
- CGG FP : CGG Says Second Survey Offshore Gabon Completed
- CRN LN : Cairn Homes Holder to Offer Up to 17m Shares via Goodbody, Numis --> priced @ EU1,34/share
- CPR IM : Campari Hit by Tariff Worries
- COFB BB : Cofinimmo Buys Dutch Healthcare Center on 15Y Lease at 7% Yield
- CBK GY : German Chancellery Met With Deutsche Bank, Commerzbank Execs: HB
- CBK GY : Commerzbank Staff Call For Vote to Scupper Deutsche Deal: FT
- DBK GY : Qatar Plan to Make Deutsche Bank Investment Has Stalled: Rtrs
- DB1 GY : Deutsche Boerse to Buy Axioma for About EU820m Equity Value
- DIA SM : DIA Board Has Favorable Opinion on Letterone Bid: Filing
- DNLM LN : Dunelm Comp. Sales Rise, Sees FY Profit Ahead of Forecasts
- DUST SS : Dustin Second Quarter Net Sales Meet Estimates
- FRE GY : Failed Akorn Purchase Cost Fresenius EU101m Before Tax: FAZ
- FDL LN : Findel Notes Sports Direct’s Extension of Offer to April 24 (1)
- FME GY : FTC Approves Final Order on Fresenius Medical/NxStage Deal
- HFG GY : HelloFresh’s Meal-Kit Lead Does Little to Nourish Investors
- INDV LN : Indivior Indicted on Claims of Fraudulent Opioid Drug Marketing
- LEVI US : *LEVI STRAUSS 1Q REVENUE UP 7%
- MCS LN : McCarthy & Stone First Half Revenue Rises 17%
- NTGY SM : Cepsa Wants to Sell 42% Stake in Medgaz to Naturgy: Cinco Dias
- NXR LN : Norcros Sees Adj. Oper. Profit in Line With Board Forecasts (1)
- OMV AV : OMV Seeks Consent for New Zealand Offshore Drilling Program: ODT
- PAGE LN : Pagegroup 1Q Gross Profit Up 11.7%; Sees 2019 Op. Profit in Line
- PWTN SW : Panalpina Board Proposes No Dividend Be Paid Out in 2019
- RNO FP : Ghosn Holds Nearly 1 Million Renault Shares, Les Echos Says
- RCO FP : Remy Cointreau Hit by Tariff Worries
- RR/ LN : Rolls-Royce Says Some Blades Need Replacement Earlier Than Seen
- SAE GY : Shop Apotheke Europe Starts Equity Offering of New Shares
- SGC LN : Stagecoach Disqualified From 3 U.K. Rail Franchise Competitions
- SCYR SM : Sacyr Approves Sale of Convertible Bonds for EU150 Million
- SOP FP : Sopra Steria Unit to Acquire A Majority Stake in SAB
- SWEDA SS : Swedish FSA Looking at Whether Swedbank Misled Authorites: DI
- TED LN : Ted Baker Creates JV For Mainland China, Hong Kong, Macau
- TPZ SM : Telepizza Board Has Favorable Opinion on KKR Bid: Filing
- TIETO FH : Tieto Starts Talks to Cut Jobs as Part of Earlier Savings Plan
- UBSG SW : Glass Lewis Says Investors Should Reject UBS Executive Pay
- UQA AV : Uniqa Economic Capital, Solvency Ratios Fell on 4Q Markets
- URW NA : Unibail to Sell Tour Majunga in Paris for EU850 Million
- VOW3 GY : Volkswagen Is Said Eyeing Big Stake in JAC Motor: Reuters

>>> Europe : Brokers Upgrades & Downgrades - 10th of April 2019

>>> Up
* Aena Upgraded to Buy at Kepler Cheuvreux; PT 180 Euros
* Disney Upgraded to Outperform at BMO; PT $140
* FLSmidth Upgraded to Overweight at Morgan Stanley; PT 395 Kroner
* Gooch & Housego Raised to Hold at Stifel; Price Target 11 Pounds
* PulteGroup Upgraded to Neutral at JPMorgan; PT $25.50

>>> Down
* DNA Downgraded to Hold at SEB Equities; Price Target 21.50 Euros
* EON Downgraded to Underperform at MainFirst; PT 8.10 Euros
* Epiroc Cut to Equal-weight at Morgan Stanley; PT 103 Kronor
* Evotec SE Downgraded to Hold at Deutsche Bank
* FDM Group Downgraded to Hold at Stifel; Price Target 9.23 Pounds
* Glencore Downgraded by RBC on Thermal Coal Price Weakness
* Novartis Cut to Underweight at Morgan Stanley; PT 80 Francs
* Qinetiq Downgraded to Hold at Investec; PT 3.10 Pounds
* Ryanair Downgraded to Hold at Goodbody
* Siemens Gamesa Downgraded to Neutral at Redburn
* Valeo Downgraded to Sell at Citi
* Valora Downgraded to Sell at Baader Helvea; PT 242 Francs

>>> Initiation
* Alcon Rated New Neutral at JPMorgan; PT 55 Francs
* Alcon Rated New Overweight at Morgan Stanley
* Alcon Rated New Hold at Berenberg; PT 55 Francs
* Danone Rated New Overweight at Barclays; PT 82 Euros
* Dassault Systemes Reinstated at KeyBanc With Sector Weight
* Intervest Offices Rated New Hold at ING; PT 26 Euros
* Lindt & Spruengli Rated New Underweight at Barclays
* Nestle Rated New Overweight at Barclays; PT 106 Francs
* Nostrum Oil & Gas Resumed at Peel Hunt With Add; PT 1.40 Pounds
* Tencent ADRs Rated New Outperform at Oppenheimer; PT $55
* Thales Reinstated at Deutsche Bank With Hold; PT 116 Euros
* Unilever GDRs Rated New Underweight at Barclays; PT 46 Euros
* Viafin Service Rated New Accumulate at Inderes; PT 6.70 Euros

>>> Call
* Novartis Generic Pressures Not Priced In, MS Cuts to Underweight
* Valeo Margin Concern Prompts Downgrade, Michelin Stays Buy: Citi
* Large-Cap Food Fighting Back, ABF, Nestle in Top Picks: Barclays

>>> Europe 600 Pre Market Indication

  • EasyJet (EJT1 TH) +1.8%
  • Suez (SZ1 TH) +1.3%
  • Demant (WDH1 TH) +1.1%
    • Demant is bringing Philips hearing aids to market
  • Sampo (SMPA TH) +0.9%
  • Siemens Gamesa (GTQ1 TH) -0.8%
    • Siemens Gamesa Downgraded to Neutral at Redburn
  • Deutsche Wohnen (DWNI TH) -0.8%
  • Glencore (8GC TH) -1%
    • Glencore Downgraded by RBC on Thermal Coal Price Weakness
  • Neste (NEF TH) -1%
  • EON (EOAN TH) -1.3%
  • Novartis (NOT TH) -1.3%
    • Novartis Generic Pressures Not Priced In, MS Cuts to Underweight
  • Zalando (ZAL TH) -1.7%
  • Metro AG (B4B TH) -3.4%
    • Redos Drops From Race for Metro Unit Real: Boersen-Zeitung
  • Evotec SE (EVT TH) -4.3%
    • Evotec SE Downgraded to Hold at Deutsche Bank

>>> US Close Dow -0.72% S&P -0.61% Nasdaq -0.56% Russell -1.22%


Closing Stock Market Summary

The S&P 500 lost 0.6% on Tuesday, as negative macroeconomic headlines and a bit of corporate news fostered some broad-based profit taking. Tuesday's decline snapped an eight-session winning streak for the benchmark index.

The Dow Jones Industrial Average lost 0.7%, the Nasdaq Composite lost 0.6%, and the Russell 2000 lost 1.2%.

The stock market began the day with some discouraging news pertaining to trade and growth: (1) The White House proposed tariffs on $11 billion of EU products in response to the subsidies the EU provides Airbus and (2) the International Monetary Fund (IMF) lowered its world growth forecast for 2019 to 3.3% from the 3.5% growth it forecast in January.

Although the tariff amount was not substantial and the growth cut was not surprising, they did provide investors with excuses to take some profits. The broader market attempted to rebound, but the comeback effort was derailed after shares of Apple (AAPL 199.50, -0.60, -0.3%) rolled over into negative territory. AAPL had risen for nine consecutive days prior to today's decline.

The S&P 500 industrials (-1.4%) and financial (-0.9%) sectors were added weights for the market following some corporate developments.

Bank stocks were particularly weak after Bank of America (BAC 28.89, -0.28, -1.0%) announced it will increase its minimum wage to $17 per hour on May 1, followed by incremental increases to $20 per hour by 2021. The wage increase raised some concerns about other banks feeling pressured to do the same and its subsequent impact on their profit-margins. The SPDR S&P Bank ETF (KBE 43.13, -0.75) lost 1.7%.

American Airlines (AAL 33.31, -0.57, -1.7%) and Pentair (PNR 39.13, -6.13, -13.5%), meanwhile, both lowered their first quarter expectations with Pentair also slashing its fiscal 2019 outlook. AAL finished well off its session low (-3.8%), though, as the company only reduced the top end of its unit revenue growth to 1.0% from 2.0%.

U.S. Treasuries saw increased buying interest following the IMF growth cut for 2019. The 2-yr yield and the 10-yr yield decreased two basis points each to 2.34% and 2.50%, respectively. The U.S. Dollar Index finished flat at 97.01. WTI crude lost 0.5% to $64.06/bbl.

Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for March and the JOLTS - Job Openings report for February:

  • The NFIB Small Business Optimism Index for March ticked higher to 101.8 from the prior month's reading of 101.7.
  • The February Job Openings and Labor Turnover Survey showed that job openings decreased to 7.087 million from a revised 7.625 million (from 7.581 million) in January.

Looking ahead, investors will receive the Consumer Price Index for March, the minutes from the FOMC March meeting, the weekly MBA Mortgage Applications Index, and the Treasury Budget for March on Wednesday.

  • Nasdaq Composite +19.2% YTD
  • Russell 2000 +15.7% YTD
  • S&P 500 +14.8% YTD
  • Dow Jones Industrial Average +12.1% YTD

>>> US After Hours Summary: LEVI +4%, WDFC -4%, PSMT -1.2% following e


After Hours Summary: LEVI +4%, WDFC -4%, PSMT -1.2% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SLP +9.7%, LEVI +3.7%, GTBIF +2.2%

Companies trading higher in after hours in reaction to news: INSM +2.8% (granted additional U.S. patent for ARIKAYCE), JBLU +2.5% (may announce trans-Atlantic routes; the company is hosting an event tomorrow - CNBC), HPE +2.2% (still checking), AMGN +1.6% (Amgen and UCB confirm FDA approval for EVENITY for the treatment of osteoporosis in postmenopausal women at high risk for fracture), EXC +0.4% (upgraded to Neutral from Sell at Goldman)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: WDFC -4.1%, PSMT -1.2%

Companies trading lower in after hours in reaction to news: PTE -12.2% (announces public offering of common stock), PHAS -6.5% (files for 3 mln share common stock offering), APPS -4% (files for $100 mln mixed securities shelf offering ), AMRS -2.8% after closing up 19% on the day; also says received Nasdaq notice for non-compliance as expected)