The Market In 5 Minutes: OPEC, Earnings And Trump's Cabinet

Macro Focus

Futures for the Dow Jones Industrial Average rose 41 points to 19,156.00, while the Standard & Poor’s 500 index futures gained 5.75 points to 2,209.50. Futures for the Nasdaq 100 index climbed 4.50 points to 4,879.50.

Oil prices traded higher as Brent crude futures rose 7.48 percent to trade at $48.75 per barrel, while US WTI crude futures also climbed 7.78 percent to trade at $48.75 a barrel. The OPEC meeting is ongoing, although a deal is reportedly in place to cut output.

ADP Employment Change for Nov 216.0K vs 165.0K consensus estimate. The prior reading was 147.0K.

Personal Income (MoM) for Oct 0.60% vs 0.40% consensus estimate. Personal Spending (MoM) for Oct 0.30% vs 0.50% consensus estimate.

Federal Reserve Board Gov. Jerome Powell will speak in Washington, D.C. at 9:15 a.m. ET.
The Chicago PMI for November is schedule for release at 9:45 a.m. ET.
The pending home sales index for October will be released at 10:00 a.m. ET.
The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
Federal Reserve Gov. Jerome Powell is set to speak at 11:45 a.m. ET.
Cleveland Federal Reserve Bank President Loretta Mester will speak at 12:35 p.m. ET.
The Federal Open Market Committee will release its latest Beige Book report at 2:00 p.m. ET.
Data on farm prices for November will be released at 3:00 p.m. ET.

BZ News Desk Focus

American Eagle Outfitters AEO Reports Q3 EPS $0.41 vs. Est. $0.41, Rev. $941M vs. Est. $940M
Splunk SPLK Reports Q3 Adj. EPS $0.12, Sales $245M vs $230M Est.
Nutanix NTNX Reports Q1 Adj EPS $(0.37) vs $(0.44) Est, Revenue $166.8M vs $152.25M Est, Billings $239.8M Up 86.9% YoY
Autodesk ADSK Reports Q3 EPS $(0.18) vs. Est. $(0.24), Rev. $490M vs. Est. $476M
Guidewire Software GWRE Reports Q1 Adj. EPS $0.02 vs $0.07 in Same Qtr. Last Year, Sales $94.1M vs $87.2M Est.

Sell-Side Themes

Chardan downgraded Arrowhead Pharmaceuticals ARWR and upgraded Arbutus Biopharma ABUS. A handful of other analysts also downgraded Arrowhead following a drug discontinuation.

Sell-Side's most Noteworthy Calls

Bernstein downgraded F5 Networks FFIV to Market Perform.
Deutsche Bank upgraded Goldman Sachs GS to Buy.
Mizuho upgraded UnitedHealth UNH to Buy.
Aegis Capital started Shutterfly SFLY at Buy.

Deal Talk

Praxair PX confirmed Tuesday that it has approached Linde LNEGY about resuming merger talks. Praxair said there would be no further comment at this time.

WGL Holdings WGL is said to be considering a sale after receiving takeover interest from Spain’s Iberdrola SA, according to sources as reported by Bloomberg. The companies have held preliminary talks. Representatives for the parties declined comment on the rumor.

In The News

President-elect Donald Trump will name longtime banker and former Goldman Sachs executive Steven Mnuchin as his Treasury secretary nominee, a transition official said.

The federal government is on track to forgive at least $108 billion in U.S. student debt in coming years, in a report that shows the Obama administration’s approach is proving far more costly than previously thought.

Blogosphere

"The costliest mistake 2% investors make is timing the market. They sell after losses and buy back only when the coast is clear. The problem is not just the money you leave on the table this time, but these mistakes leave behind scar tissue that compounds in our brains."

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