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Afternoon Note

The Pendulum Swings

By Charles Payne, CEO & Principal Analyst
10/9/2019 1:20 PM

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

Clear trends:

Resolve

Short & Oversold Bounce

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.

United States Job Openings

 

 

 


 

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