The Dow Jones Industrial Average is up slightly this morning as a very busy week gets underway. In today's Morning Movers, we...
•...preview some of the potential market-moving events this week; •...explain why PG&E Corp (PCG) is getting crushed this morning; •...and highlight Sempra Energy's (SRE) big gain.
In Aliens, the sequel to Ridley Scott's classic Alien, Ripley had to contend with not just one but many space monsters. In scene after scene, the creatures swarmed from all sides, and the characters never knew where look for the next sign of danger.
That's a little bit like the market this week. The morning is certainly quiet, as S&P 500 futures are little changed, while Dow Jones Industrial Average futures have ticked up 13 points, or 0.1%, and Nasdaq Composite futures have declined 0.2%.
And maybe it will stay that way this week, though I'd consider that unlikely. There's just too much going on for the market to remain stay this quiet. Then again, it wouldn't take much to bring the calm to an end. Consider all that the market has to deal with this week :
• Fallout from this past weekend's G7 meeting. "The recent G7 meeting was unlike any other in history, and while that makes for dramatic headlines capital markets already know this drill," writes DataTrek's Nicholas Colas.
• The Trump-Kim summit, which begins at 9:00 p.m. Eastern time. "The bottom line seems to be whether North Korea will agree to fully getting rid of its nuclear weapons and will they demand in return the US military leaving South Korea," writes Bleakley Advisory Group's Peter Boockvar.
• Wednesday's FOMC meeting, where the Fed is expected to hike interest rates by a quarter point, and could have other changes in store. "We expect the economy and labor market to continue to garner critical mass, and inflation to continue to creep higher in the months immediately ahead," writes Jefferies economist Thomas Simons. "Both dual mandate objectives favor continued rate hikes and balance sheet normalization."
• Thursday's meeting of the European Central Bank, where Draghi and team might. "The ECB will probably be the most interesting of the central bank meetings given the coordinated signals sent by their various speakers last week that the meeting is a live one for debating the end of QE," writes Deutsche Bank's Jim Reid.
• Friday's meeting of the Bank of Japan.
All these events have the potential to create ripples--it's just a question of how big they'll be.
Earnings & News
Envision Healthcare (EVHC) is up 2.5% to $44.75 after confirming it will be acquired by KKR (KKR), up 0.1% to $23, for $46 a share.
Genworth Financial (GNW) is up 30.2% to $4.96 after receiving approval from the Committee on Foreign Investment in the United States to proceed with its$2.7 billion buyout by China Oceanwide Holdings.
PG&E Corp (PCG) is down 6.8% to $38.62 after the California Department of Forestry and Fire Protection investigators found that 12 wildfires in October 2017 were caused by electric power and distribution lines, conductors and the failure of power poles.
Rent-A-Center (RCII) is up 4.5% to $10.56 after it received an increased offer to buy the company after ending its strategic review process.
Sempra Energy (SRE) has climbed 9.1% to $110.61 after activist investors called on the company to consider steps to unlock shareholder value. - Teresa Rivas
Upgrades & Downgrades
First Data (FDC) is up 4.9% to $20.95 after Goldman Sachs upgraded it to Buy.
Incyte Corp. (INCY) is up 2.1% to $71.47 after Evercore ISI upgraded it to Outperform.
Match Group (MTCH) is up 3.7% to $43.05 after Jefferies upgraded it to Buy.
Nektar Therapeutics (NKTR) is down 2.1% to $53 after H.C. Wainwright downgraded it to Neutral.
Oasis Petroleum (OAS) is down 2.2% to $12.58 after Jefferies downgraded it to Hold.
Westlake Chemical (WSK) is down 1% to $116.50 after RBC Capital Markets cut it to Sector Perform. - T.R.
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