The market is meandering but exhibiting resolve. It is clear, buyers are more aggressive today.

Clear trends:

Resolve

• The rally has ebbed and flowed but buyers keep emerging when major indices begin to fade.

Short & Oversold Bounce

• Tesla (TSLA) had more “bad” news and the stock is powering higher.  Under Armor (UA) got an upgrade this morning, it feels like investors are looking for depressed names with large short positions to squeeze if there is a wave of excitement.

Earnings

It’s early but so far, so good with Levi Strauss (LEVI) and Fire Eye (FEYE) last night and Louis Vuitton (LVMH) today.

LVMH reports Q3 revs +17% Y/Y (11% on organic basis) to EUR 13.32 billion vs. EUR 12.76 billion consensus.

"The United States and Europe saw good progress in the third quarter, as did Asia, despite the difficult context in Hong Kong."

Revenue by business group:

In million euros	9 months 2019	9 months 2018	Change 2019 / 2018 First 9 months
			Reported	Organic*
Wines & Spirits	3 919	3 565	+ 10 %	+ 7 %
Fashion & Leather Goods	15 873	13 052	+ 22 %	+ 18 %
Perfumes & Cosmetics	4 912	4 410	+ 11 %	+ 8 %
Watches & Jewelry	3 261	3 021	+ 8 %	+ 4 %
Selective Retailing	10 555	9 544	+ 11 %	+ 6 %
Other activities and eliminations	(122)	(463)	ns	ns
Total LVMH	38 398	33 129	+ 16 %	+ 11 %

* With comparable structure and constant exchange rates. The exchange rate impact was +4 % and the structural impact was +1 % (Belmond integration since April 2019). 

It’s a board-based rally led by technology, as semiconductor stocks are higher on hopes of lessen trade tensions. 

S&P 500 Index	+0.56%
Communication Services (XLC)	+0.47%
Consumer Discretionary (XLY)	+0.53%
Consumer Staples (XLP)	+0.45%
Energy (XLE)	+0.75%
Financials (XLF)	+0.65%
Health Care (XLV)	+0.34%
Industrials (XLI)	+0.35%
Materials (XLB)	+0.49%
Real Estate (XLRE)	+0.08%
Technology (XLK)	+1.07%
Utilities (XLU)	+0.17%

 

Job Openings

The JOLTs report came in slightly lower than excepted, its lowest level since March 2018 but still very robust 7 million jobs.  The nation is closer to full employment, perhaps at any time in history there will be fewer jobs.

Note: The decline driven by Midwest -183,000 might include labor dispute and 737 Max noise.

 

 

 

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