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The Market In 5 Minutes: Oil Inventories, Earnings Beats And A Walgreens-Rite Aid Snag

Benzinga News Desk

Below is a tool used by the Benzinga News Desk each trading day -- it's a look at everything happening in the market, in five minutes. Apply for daily AM access by clicking here or email minutes@benzinga.com.

Macro Focus

Futures for the Dow Jones Industrial Average climbed 10 points to 18,074.00, while the Standard & Poor’s 500 index futures gained 0.50 points to 2,132.50. Futures for the Nasdaq 100 index slipped 4 points to 4,823.00.

Oil prices traded higher as Brent crude futures gained 1.28 percent to trade at $52.34 per barrel, while US WTI crude futures also rose 1.28 percent to trade at $51.27 a barrel.

Weekly API data revealed an inventory draw of 3.8 million barrels. The Street was expecting a build of about 2.4 million barrels, after last week’s 2.7 million barrels build.

  • Data on housing starts for September will be released at 8:30 a.m. ET.
  • San Francisco Federal Reserve Bank President John Williams is set to speak in Newark, NJ at 8:45 a.m. ET.
  • The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
  • Dallas Federal Reserve Bank President Rob Kaplan will speak in Fort Worth at 1:30 p.m. ET.
  • The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.
  • New York Federal Reserve Bank President William Dudley is set to speak in New York at 7:45 p.m. ET.

BZ News Desk Focus

  • Morgan Stanley (NYSE: MS) Q3 EPS $0.81 vs $0.63 Est., Revenue $8.91B vs $8.16B Est.
  • Yahoo (NASDAQ: YHOO) Reports Q3 Adj. EPS $0.20 vs $0.14 Est., GAAP Sales $1.305B vs $1.31B Est.
  • Halliburton (NYSE: HAL) Q3 EPS $0.01 vs $(0.07) Est., Revenue $3.8B vs $3.9B Est.
  • Reynolds American (NYSE: RAI) Q3 EPS $0.61 vs $0.65 Est., Revenue $3.21B vs $3.31B Est.
  • Intuitive Surgical (NASDAQ: ISRG) Reports Q3 EPS $6.19 vs. Est. $5.13, Rev. $683M vs. $650M Est.

Sell-Side Themes

Intel (NASDAQ: INTC) reported Q2 adj. EPS $0.80 vs $0.72 estimates and sales $15.8 billion vs. $15.58 billion estimates. Several analyst maintained their Buy rating on Intel, with price targets ranging from $35 to $46.

Sell-Side's Most Noteworthy Calls

  • FBR downgraded Wells Fargo (NYSE: WFC) to Market Perform.
  • Jefferies downgraded Quintiles (NYSE: Q) to Hold.
  • Credit Suisse upgraded Yum Brands (NYSE: YUM) to Outperform.
  • Loop Capital upgraded Twitter (NYSE: TWTR) to Hold.
  • Baird started Coherus Biosciences (NASDAQ: CHRS) at Outperform.
  • Credit Suisse started Square (NYSE: SQ) at Neutral.

Deal Talk

Blackstone (NYSE: BX) is said be the favorite to acquire Team Health (NYSE: TMH), according to sources as reported by Reuters on Tuesday. The sources said Blackstone is negotiating the final terms for a deal.

Kroger (NYSE: KR) is close to passing on acquiring the 650 stores that Walgreens (NASDAQ: WBA) and Rite Aid (NYSE: RAD) would have to sell to gain regulatory approval of their $17 billion merger, sources told the New York Post. Kroger at first expressed interest in buying the stores.

Shares of Campbell Soup (NYSE: CPB) spiked to a high of $55.20 Tuesday, on unconfirmed market chatter that Coca-Cola (NYSE: KO) is working with 3G Captial to structure a take-over of Campbell. Sources say a potential deal could be value at approximately $66 per share or $20 billion. Last year a report surfaced that the Dorrance family, led by 17% shareholder Mary Alice Dorrance Malone, had hired an advisor to handle a potential sale of the company.

In The News

One junk-bond trader at Goldman Sachs (NYSE: GS) earned more than $100 million in trading profits for the firm earlier this year, an unusual gain at a time when new regulations have pushed Wall Street to take fewer risks.

Is Netflix (NASDAQ: NFLX) taking over Hollywood? After its blow-out quarter and string of original hits, it just might be.

Blogosphere

If Americans are working 25 percent more than Europeans, what are the implications for retirees and the economy?

Trending

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The final presidential debate may be Donald Trump's last best chance to turn around an election in which Hillary Clinton appears to be decisively pulling away. #TrumpDebateGuests #debatenight

Guess This Chart

  • This company reported Q3 EPS of $0.99 vs. $1.01 est. on revenue of $1.50B Monday morning.
  • Two weeks ago it was reported that this company has had issues with some of its products, but they aren't expected to impact its ongoing merger.
  • Sympathy plays include Abbott Laboratories, Boston Scientific and Edwards Lifesciences.
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