The Market In 5 Minutes: Alibaba, Brocade And A Game 6

Macro Focus

Futures for the Dow Jones Industrial Average dropped 20 points to 17,919.00, while the Standard & Poor’s 500 index futures declined 1 point to 2,102.75. Futures for the Nasdaq 100 index rose 1 point to 4,758.25.

Oil prices traded lower as Brent crude futures slipped 1.43 percent to trade at $47.45 per barrel, while US WTI crude futures also fell 1.65 percent to trade at $45.90 a barrel.

USA ADP Employment Change for Oct 147.0K vs 165.0K consensus estimate. The prior reading was 154.0K.

• The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
• The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.

BZ News Desk Focus

• Yelp YELP Reports Q3 Non-GAAP EPS $0.22 vs. Est. $(0.03), Rev. $186.2M vs. Est. $183M
• Alibaba BABA Reports Q2 EPS $0.79 vs. $0.69 Est., Rev. $5.142B vs. $5.03B Est.
• Gilead GILD Reports Q3 Adj. EPS $2.75 vs $2.86 Est., Sales $7.5B vs $7.45B Est.
• Time Warner TWX Reports Q3 Adj. EPS $1.83 vs $1.37 Est., Sales $7.2B vs $7B Est.
• Square SQ Reports Q3 Loss $32M, Sales $439M vs $430.1M Est.; Raises Outlook
• Herbalife HLF Reports Q3 EPS $1.01 vs $1.09 Est., Raises FY16 EPS Outlook
• Allergan AGN Reports Q3 Adj. EPS $3.32 vs $3.58 Est., Sales $3.622B vs $3.69B Est.

Sell-Side Themes

Wedbush weighed in on several retail names, with Foot Locker FL and and Dicks Sporting Goods DKS getting favorable commentary.

Sell-Side's Most Noteworthy Calls

• Argus downgraded Pfizer PFE to Hold.
• Blair downgraded Tableau Software DATA to Market Perform.
• Credit Suisse upgraded Anadarko Petroleum APC to Outperform.
• Barclays upgraded Talend TLND to Overweight.
• BMO started Party City PRTY at Market Perform.
• Deutsche Bank started CSX CSX at Buy.

Deal Talk

Broadcom AVGO will acquire Brocade Communications BRCD for $5.9 billion or $12.75 per share.

Tesla TSLA and SolarCity SCTY held a Q&A with select media and analysts Tuesday night. Elon Musk said he sees "zero chance of SolarCity going bankrupt."

Shares of LPL Financial LPLA spiked to a high of $32.06 Tuesday, as DealReporter said the company was in talks with private equity firms, according to sources. Reuters reported last month that LPL was working with Goldman Sachs to explore a potential sale.

In The News

Banks no longer reign over the mortgage market as they accounted for less than half of the mortgage dollars extended to borrowers during the third quarter. Taking their place are nonbank lenders more willing to make riskier loans banks now shun.

Traders see just a 15 percent chance that U.S. central bankers will raise their main interest rate in November, fed funds futures pricing suggests. A number of factors, from good-but-not-excellent jobs data to growing political risk, seem to have weighed on market participants' minds and led them to discount an increase this month.

Blogosphere

"The story of Deutsche is yet another in the endless litany of the global elites, taking their self-serving ideals too far in the real world, with the tacit approval of easily bought-and-swayed governments looking on."

Trending

BABA UGAZ VRX UWTI FB AGN DGAZ YELP GILD ADPT SPY OCLR

Chicago Cubs and Cleveland Indians will go the distance, with a final game of the season between the two teams with the longest combined championship droughts in history at 178 years. The Cubs made it possible Tuesday by routing the Indians, 9-3, trying to become the first #WorldSeries team since the 1985 Kansas City Royals to overcome a 3-1 deficit.

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