The Market In 5 Minutes: Trump Victory Spooks Stocks

Macro Focus

Futures for the Dow Jones Industrial Average dropped 372 points to 17,911.00, while the Standard & Poor’s 500 index futures tumbled 47 points to 2,087.75. Futures for the Nasdaq 100 index declined 127.25 points to 4,674.00.

Oil prices traded lower as Brent crude futures fell 0.04 percent to trade at $46.02 per barrel, while US WTI crude futures also fell 0.22 percent to trade at $44.88 a barrel.

• Data on wholesale inventories for September will be released at 8:30 a.m. ET.
• The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
• The Treasury is set to auction 10-year notes at 1:00 p.m. ET.
• Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in Eau Claire, Wi. at 1:30 p.m. ET.
• San Francisco Federal Reserve Bank President John Williams will speak at the University of San Francisco at 9:00 p.m. ET.

BZ News Desk Focus

• TripAdvisor (NASDAQ: TRIP) Reports Q3 EPS $0.53 In Line With Estimates, Revenue $421M vs $436.31M Est
• Wendy's (NASDAQ: WEN) Q3 EPS $0.18 vs $0.10 Est, Revenue $364M vs $351M Est
• Vivint Solar (NYSE: VSLR) Reports Q3 EPS $(0.36) vs. Est. $(0.45), Rev. $41.3M vs. Est. $43.48M
• Jazz Pharmaceuticals (NASDAQ: JAZZ) Reports Q3 EPS $2.57 vs. Est. $2.61, Rev. $374.181M vs. Est. $388.88M
• Coty (NYSE: COTY) Q1 EPS $0.23 vs $0.33 Est, Revenue $1.1B vs $1.1B Est
• DISH Network (NASDAQ: DISH) Q3 EPS $0.64 vs $0.68 Est, Revenue $3.75B vs $3.74B Est

Sell-Side Themes

Hertz Global (NYSE: HTZ) plunged more than 22 percent after Q3 EPS missed by $1.15, while revenue fell by $0.1 billion. The company also offered a downbeat forecast.

Deutsche Bank downgraded the stock from Buy to Hold and slashed the target price from $59 to $24.
Northcoast Research downgraded from Buy to Neutral.
Credit Suisse retained a Neutral rating and price tag of $48.

Sell-Side's Most Noteworthy Calls

• Bank of America downgraded SunPower (NASDAQ: SPWR) to Neutral.
• Bank of American downgraded Constellation Brands (NYSE: STZ) to Underperform.
• Mizuho upgraded Depomed (NASDAQ: DEPO) to Buy.
• Wunderlich upgraded Oasis Petroleum (NYSE: OAS) to Buy.
• B. Riley started Points International (NASDAQ: PCOM) at Buy.

Deal Talk

Kellogg (NYSE: K) spiked as high as $78.37 Tuesday, following a report from Brazil Journal that 3G Capital is raising $8 billion to $10 billion for their next takeover target, according to sources. The article didn't mention Kellogg, but did state that a Mondelez (NASDAQ: MDLZ) takeover would more likely come from Kraft Heinz (NYSE: KHC) than from 3G.

American Apparel has resumed talks with at least two potential bidders for the U.S. teen clothing retailer, after bankruptcy sale negotiations with brand licensor Authentic Brands Group stalled earlier this week, a source close to the company told Reuters.

In The News

Republican Presidential candidate Donald Trump has won the 2016 Presidential election in a hotly-contested vote against Hillary Clinton that few saw coming. To the surprise of many, Trump won big from Florida, Ohio and Pennsylvania en route to getting the necessary 270 electoral votes.

With his win in the U.S. presidential election, Trump is uniquely positioned to overhaul America’s relationship with Russia. But how Moscow will engage with the president-elect is still far from clear

Blogosphere

"Markets could be in for volatility for awhile, even if they come back later today. A crash, however, would be statistically unlikely so it’s weird to see so many expecting one. I think that’s a case of people interjecting their personal feelings and fears, which is something that’s practically unavoidable when forecasting."

Trending

As of 7:20 a.m., a margin of 123,890 puts Clinton on track to become the fifth candidate to win the popular vote but lose the election. #NotMyPresident