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01/11/22 Briefing


The S&P 500 futures are up 36 points and are trading 1.0% above fair value. The Nasdaq 100 futures are up 135 points and are trading 1.2% above fair value. The Dow Jones Industrial Average futures are up 201 points and are trading 0.6% above fair value.

Equity futures are higher this morning after yesterday's modest retreat. First-of-the-month inflows, falling Treasury yields, and speculation that China could soon exit its zero-Covid policy are among the early support factors along with some M&A buzz that has followed reports of Johnson & Johnson (JNJ) acquiring Abiomed (ABMD) for $16.6 billion in cash.

Earnings news has generally been better than expected and Treasury yields are declining, which is helping to boost sentiment in the market. The 10-yr note yield dropped back below 4.00%, down 13 basis points to 3.94%. The 2-yr note yield is down six basis points to 4.43%. 

There has been a relief rally in Chinese stocks, and U.S. stocks with high exposure to the Chinese market, after speculation circulated on social media that China is preparing to gradually exit its zero COVID-19 policy, according to Bloomberg. This is unconfirmed by Chinese authorities. 

In other news, the Reserve Bank of Australia raised its cash rate by 25 bps to 2.85%, as expected. 

Market participants will receive the following economic data today:

  • 10:00 ET: September Construction Spending (Briefing.comconsensus -0.5%; prior -0.7%) and October ISM Manufacturing Index (Briefing.comconsensus 50.0%; prior 50.9%); September JOLTS Job Openings (prior 10.053 million)

In corporate news:

  • Uber (UBER 28.90 +2.33 (+8.77%): misses by $0.67, beats on revs, mobility gross bookings increased 45%, delivery gross bookings up 13%; guides Q4 adj. EBITDA of $600-$630 mln

  • BP (BP 33.35 +0.07 (+0.21%):  beats by $0.64, misses on revs

  • Pfizer (PFE 48.40 +1.85 (+3.97%): beats by $0.38, beats on revs; raises FY22 guidance; announces positive top-line data from the Phase 3 clinical trial MATISSE investigating its bivalent RSV prefusion vaccine candidate, RSVpreF or PF-06928316, when administered to pregnant participants to help protect their infants from RSV disease after birth

  • Eli Lilly (LLY 353.84 -8.25 (-2.28%): beats by $0.05, reports revs in-line; guides FY22 EPS below consensus, revs in-line

  • Avis Budget (CAR 245.40 +8.94 (+3.78%): beats by $7.06, reports revs in-line

  • Abiomed (ABMD 382.26 +130.18 (+51.64%): by $0.27, misses on revs; to be acquired by Johnson & Johnson (JNJ) for $380/share in cash; expected to be accretive to adj. earnings beginning in 2024

  • Stryker (SYK 218.08 -11.16 (-4.87%): misses by $0.11, reports revs in-line; guides FY22 EPS below consensus; downgraded to Hold from Buy at Canaccord Genuity

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note with Hong Kong's Hang Seng (+5.2%) leading the way amid strength in tech names. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: +5.2%, China's Shanghai Composite: +2.6%, India's Sensex: +0.6%, South Korea's Kospi: +1.8%, Australia's ASX All Ordinaries: +1.6%.

  • In economic data:

  • China's October Caixin Manufacturing PMI 49.2 (expected 49.0; last 48.1)

  • Japan's October Manufacturing PMI 50.7, as expected (last 50.7)

  • South Korea's October Nikkei Manufacturing PMI 48.2 (last 47.3). October trade deficit $6.70 bln (expected deficit of $3.94 bln; last deficit of $3.78 bln). October Imports 9.9% yr/yr (expected 6.9%; last 18.6%) and Exports -5.7% yr/yr (expected -3.0%; last 2.7%)

  • India's October Manufacturing PMI 55.3 (expected 54.9; last 55.1)

  • Hong Kong's September Retail Sales 0.2% yr/yr (last -0.1%)

  • Australia's October Manufacturing PMI 52.7 (expected 52.8; last 53.5)

  • New Zealand's September Building Consents 3.8% m/m (last -1.6%)

  • In news:

  • China is reportedly setting up a "reopening committee" for its economy.

  • Japan's Manufacturing PMI expanded for the 21st consecutive month in the October reading while China's Caixin Manufacturing PMI remained in contraction for the third consecutive month.

  • Japan's Ministry of Industry asked companies and households to conserve energy during the winter.

  • The Reserve Bank of Australia raised its cash rate by 25 bps to 2.85%, as expected.

  • Major European indices trade on a firmly higher note. STOXX Europe 600: +1.4%, Germany's DAX: +1.3%, U.K.'s FTSE 100: +1.6%, France's CAC 40: +1.7%, Italy's FTSE MIB: +1.8%, Spain's IBEX 35: +1.3%.

  • In economic data:

  • Germany's September Import Price Index -0.9% m/m (expected 1.1%; last 4.3%); 29.8% yr/yr (expected 31.0%; last 32.7%)

  • U.K.'s October Manufacturing PMI 46.2 (expected 45.8; last 48.4). October Nationwide HPI -0.9% m/m (last 0.0%); 7.2% yr/yr (expected 8.3%; last 9.5%)

  • Swiss October procure.chPMI 54.9 (expected 56.0; last 57.1) and Q4 SECO Consumer Climate -38 (expected -43; last -42)

  • In news:

  • The Bank of England began its scheduled Gilt auctions today, selling GBP750 bln in shorter maturities.

  • European Central Bank President Lagarde said that recession risk in the eurozone has increased, and that inflation is too high.

  • BP reported better than expected quarterly results, raised its guidance, and boosted buyback.

 

U.S. equity futures:

  • S&P 500 Futures: +37 @ 3,909

  • DJIA Futures: +215 @ 32,948

  • Nasdaq 100 Futures: +133 @ 11,539

Overseas:

  • Europe: DAX +1.3%, FTSE +1.6%, CAC +1.7%

  • Asia: Nikkei +0.3%, Hang Seng +5.2%, Shanghai Composite +2.6%

Commodities:

  • Crude Oil +1.12 @ 87.65

  • Nat Gas  -0.148 @ 6.207

  • Gold +16.45 @ 1656.85

  • Silver +0.829  @ 19.948

  • Copper +0.0983 @ 3.4733

U.S. Summary:

  • Earnings/Guidance:

  • Acadia Healthcare (ACHC) beats by $0.85, beats on revs; guides FY22 revs in-line

  • Addus HomeCare (ADUS) reports EPS in-line, revs in-line

  • Aerojet Rocketdyne (AJRD) beats by $0.01, misses on revs

  • Aflac (AFL) misses by $0.07, beats on revs

  • AGCO Corp (AGCO) beats by $0.02, misses on revs; guides FY22 EPS in-line, revs in-line

  • American Water Works (AWK) beats by $0.12, reports revs in-line; affirms FY22 EPS in-line; initiates FY23 EPS in-line

  • Ametek (AME) beats by $0.08, beats on revs; raises FY22 EPS above consensus, revs above consensus

  • Amkor (AMKR) beats by $0.35, beats on revs; guides for Q4 EPS and EPS

  • ArcBest (ARCB) beats by $0.08, beats on revs

  • Arconic (ARNC) reports Q3 (Sep) results, beats on revs; guides FY22 revs in-line

  • Arista Networks (ANET) beats by $0.20, beats on revs; guides Q4 revs above consensus

  • Avis Budget (CAR) beats by $7.06, reports revs in-line

  • Avista (AVA) misses by $0.22; lowers FY22 EPS in-line; guides FY23 EPS in-line

  • Axonics Modulation (AXNX) beats by $0.13, beats on revs; raises FY22 revs above consensus

  • Bank of N.T. Butterfield & Son (NTB) beats by $0.04, reports revs in-line

  • BioCryst Pharma (BCRX) beats by $0.03, beats on revs

  • Bio-Techne (TECH) misses by $0.05, misses on revs

  • Black Stone Minerals (BSM) reports Q3 results; mineral and royalty production increased 23% sequentially to 37.3 MBoe/d; expects FY22 total production at or above midpoint of initial guidance of 34.0-37.0 MBoe/d; announces distribution of $0.45/unit, a 7% increase

  • Blucora (BCOR) misses by $0.01, beats on revs; narrows FY22 guidance

  • Boise Cascade (BCC) beats by $1.39, beats on revs

  • BP (BP) beats by $0.64, misses on revs

  • Catalent (CTLT) misses by $0.22, misses on revs; lowers FY23 revs guidance below consensus

  • Chemed (CHE) beats by $0.09, reports revs in-line; guides FY22 EPS above consensus

  • Cincinnati Fincl (CINF) beats by $0.06, misses on revs

  • Civitas Resources (CIVI) beats by $0.03, beats on revs, increases dividend by 11%

  • CNO Financial (CNO) reports EPS in-line, beats on revs

  • Colliers (CIGI) misses by $0.23, beats on revs; lowers FY22 adjusted EPS growth forecast, guides FY22 revs in-line

  • CVR Energy (CVI) misses by $0.01; beats on revs; approves $1.00 per share special dividend

  • Douglas Dynamics (PLOW) beats by $0.11, beats on revs; guides FY22 EPS in-line, revs in-line

  • Easterly Government Properties (DEA) misses by $0.01, misses on revs; lowers FY22 FFO guidance

  • Eaton (ETN) beats by $0.01, reports revs in-line; guides Q4 EPS in-line

  • Ecovyst (ECVT) misses by $0.01, beats on revs; lowers FY22 revs below consensus

  • Eli Lilly (LLY) beats by $0.05, reports revs in-line; guides FY22 EPS below consensus, revs in-line

  • Enpro Industries (NPO) beats by $0.77, beats on revs; guides FY22 EPS in-line, revs below consensus

  • Enterprise Products (EPD) beats by $0.02, beats on revs

  • Esperion Therapeutics (ESPR) beats by $0.12, misses on revs

  • Flowserve (FLS) misses by $0.15, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • Gartner (IT) beats by $0.54, beats on revs; raises FY22 EPS above consensus, revs above consensus

  • Goodyear Tire (GT) misses by $0.15, reports revs in-line; expects price/mix to exceed raw material costs in Q4

  • Harmonic (HLIT) beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line

  • Harsco (HSC) beats by $0.16, beats on revs; guides Q4 EPS in-line

  • Hayward Holdings (HAYW) beats by $0.02, beats on revs; guides FY22 revs in-line

  • Heartland Financial (HTLF) beats by $0.02, reports revs in-line

  • Henry Schein (HSIC) beats by $0.01, misses on revs; guides FY22 EPS in-line, lowers revs below consensus

  • Herbalife Nutrition (HLF) beats by $0.11, reports revs in-line; withdrawing FY22 guidance due to rapidly shifting macroeconomic sentiment; Michael O. Johnson announced as Chairman and interim CEO

  • Hologic (HOLX) beats by $0.20, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • IDEXX Labs (IDXX) beats by $0.19, beats on revs; guides FY22 revs mostly below consensus

  • IMAX (IMAX) misses by $0.07, reports revs in-line

  • Intercept Pharma (ICPT) beats by $1.80, misses on revs; raises FY22 revs in-line

  • Kennametal (KMT) misses by $0.03, beats on revs; guides Q2 revs in-line; guides FY23 EPS below consensus, revs in-line

  • Kforce (KFRC) beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line

  • Lattice Semi (LSCC) beats by $0.04, beats on revs; guides Q4 revs above consensus

  • Lear (LEA) beats by $0.20, beats on revs; reiterates FY22 revs in-line

  • Leggett & Platt (LEG) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs below consensus

  • Leidos (LDOS) beats by $0.02, beats on revs; guides FY22 EPS in-line, revs in-line

  • LGI Homes (LGIH) beats by $0.48, home revs fell 27.2% yr/yr

  • Li Auto (LI) reports October deliveries increased 31.4% yr/yr

  • Louisiana-Pacific (LPX) beats by $0.21, beats on revs

  • Marathon Petroleum (MPC) beats by $0.78, beats on revs; raises dividend ~30%

  • Marriott Vacations (VAC) beats by $0.49, beats on revs; raises FY22 EPS above consensus

  • Molson Coors Brewing (TAP) misses by $0.03, beats on revs

  • MPLX LP (MPLX) beats by $0.53, beats on revs

  • Neurocrine Biosciences (NBIX) misses by $0.04, beats on revs; acquires Diurnal for ~$56 mln

  • Newmont Goldcorp (NEM) misses by $0.07, misses on revs, reaffirms FY22 outlook

  • NIO (NIO) reports October deliveries increased 174.3% yr/yr

  • NXP Semi (NXPI) reports Q3 (Sep) results, revs in-line; guides Q4 revs below consensus

  • ONE Gas (OGS) beats by $0.02, beats on revs; guides FY22 EPS in-line

  • Otter Tail Power (OTTR) beats by $0.19, beats on revs; lowers FY22 EPS below consensus

  • Pfizer (PFE) beats by $0.38, beats on revs; raises FY22 guidance

  • Phillips 66 (PSX) beats by $1.43

  • Pitney Bowes (PBI) misses by $0.02, misses on revs; reaffirms FY22 revenue guidance

  • Premier (PINC) misses by $0.07, misses on revs; guides FY23 EPS in-line, revs in-line

  • PriceSmart (PSMT) beats by $0.12, reports revs in-line, comps +9.2%; September comps +7.8%

  • Rambus (RMBS) reports Q3 (Sep) results, misses on revs

  • Ranpak (PACK) beats by $0.02, misses on revs

  • Regal Rexnord (RRX) beats by $0.01, reports revs in-line; guides FY22 EPS in-line

  • Repligen (RGEN) beats by $0.09, beats on revs; guides FY22 EPS in-line, revs in-line

  • Ryman Hospitality (RHP) misses by $0.04, beats on revs; reinstates quarterly dividend of $0.10/sh

  • SBA Comm (SBAC) beats by $0.50, beats on revs; guides FY22 FFO above consensus, revs above consensus

  • Scorpio Tankers (STNG) beats by $0.25, beats on revs

  • Sealed Air (SEE) beats by $0.08, misses on revs; guides FY22 EPS in-line, revs below consensus

  • Simon Properties (SPG) beats by $0.05, beats on revs; guides FY22 FFO above consensus

  • Sirius XM (SIRI) misses by $0.01, reports revs in-line; guides FY22 revs in-line; declares dividend

  • SoFi Technologies (SOFI) reports Q3 (Sep) results, beats on revs; guides FY22 revs above consensus

  • Sonoco Products (SON) beats by $0.21, reports revs in-line; guides Q4 EPS in-line

  • Sony (SONY) beats by JPY40.96, beats on revs; guides FY23 revs above consensus

  • Stryker (SYK) misses by $0.11, reports revs in-line; guides FY22 EPS below consensus

  • Sunoco LP (SUN) misses by $0.38, beats on revs

  • Thomson Reuters (TRI) beats by $0.07, reports revs in-line; reaffirms FY22 revs guidance

  • TopBuild (BLD) beats by $0.72, beats on revs; guides FY22 revs above consensus

  • Toyota Motor (TM) reports Q2 results; beats on revs

  • Trex (TREX) reports EPS in-line, misses on revs; reaffirms Q4 revs guidance

  • Triton International (TRTN) beats by $0.09, reports revs in-line

  • Uber (UBER) misses by $0.67, beats on revs, mobility gross bookings increased 45%, delivery gross bookings up 13%; guides Q4 adj. EBITDA of $600-$630 mln

  • Varonis Systems (VRNS) reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs below consensus; authorizes up to $100 mln for share buybacks

  • Wabtec (WAB) beats by $0.01, misses on revs; narrows FY22 EPS in-line, lowers FY22 revenue guidance

  • Waters (WAT) beats by $0.06, beats on revs; guides Q4 EPS below consensus; guides FY22 EPS below consensus

  • Williams Cos (WMB) beats by $0.05, beats on revs; continues to expect 2022 Adjusted EBITDA near high end of previously announced guidance range of $6.1-$6.4 billion

  • XPeng (XPEV) reports it delivered 5,101 vehicles delivered in October

  • Zebra Tech (ZBRA) misses by $0.41, misses on revs

  • News:

  • Unconfirmed social media posts say China is preparing to gradually exit zero COVID-19 policy, according to Bloomberg

  • China chip restrictions could be less than feared, according to Bloomberg

  • White House announces US UAE partnership to accelerate transition to clean energy

  • President Biden says he will ask Congress to impose tax on "excess profits" at oil companies

  • Windfall energy profit tax proposal does not have a path to pass Congress at this time, according to CNN

  • AMN Healthcare (AMN) announced Cary Grace as its next president and CEO

  • AngioDynamics (ANGO) Announces First Patient Enrolled in APEX-AV Study Assessing AlphaVac F1885 PE System in Treatment of Pulmonary Embolism

  • AstraZeneca (AZN) reports Vaxzevria receives full Marketing Authorisation in the EU for the prevention of COVID-19

  • CenterPoint (CNP) announces the promotion of Jason P. Wells, Executive Vice President and Chief Financial Officer, to the role of President and Chief Operating Officer, effective January 1, 2023

  • C.H. Robinson (CHRW) appoints Arun Rajan as COO, effective immediately

  • Credit Suisse (CS) aiming to move forward with China expansion, according to Reuters

  • Delta Air Lines (DAL) pilots vote to authorize strike if necessary, according to Reuters

  • Easterly Government Properties (DEA) has sold, or has agreed to sell, ten primarily government leased assets

  • Foxconn (HNHPF) will shift some Apple (AAPL) iPhone production to other sites amid COVID-19 outbreak, according to the Wall Street Journal

  • GameStop's (GME) NFT Marketplace launches with ImmutableX

  • General Electric (GE) awarded a not-to-exceed $1.085 bln U.S. Navy contract

  • Harmony Biosciences (HRMY) announces initial topline results from its Phase 2 proof-of-concept study in patients with Prader-Willi syndrome

  • Herbalife Nutrition (HLF) named former CEO Michael Johnson next Chairman and interim CEO succeeding Dr. John Agwunobi, who is departing the company

  • ICF International (ICFI) selected as an awardee of a SWIFT IDIQ contract

  • Karyopharm Therapeutics (KPTI): European Commission grants orphan medicinal product designation for selinexor for the treatment of myelofibrosis

  • Karyopharm Therapeutics (KPTI) and Menarini Group announce orphan medicinal product designation from the European Commission for selinexor for the treatment of myelofibrosis

  • LAVA Therapeutics (LVTX) announces the appointment of Fred M. Powell as Chief Financial Officer, effective today

  • LCI Industries (LCII) announces that Brian Hall, LCI Industries' Executive Vice President and Chief Financial Officer, has notified the Company of his intention to resign from the Company to pursue philanthropic ventures and opportunities as well as to spend more time with his family

  • Lithia Motors (LAD) increases share repurchase authorization by $450 mln to ~$500 mln

  • Occidental Petro (OXY) announces lease agreement to support large-scale Direct Air Capture projects

  • Pfizer (PFE) announces positive top-line data from the Phase 3 clinical trial MATISSE investigating its bivalent RSV prefusion vaccine candidate, RSVpreF or PF-06928316, when administered to pregnant participants to help protect their infants from RSV disease after birth

  • Quest Diagnostics (DGX) announces Jim Davis has succeeded Steve Rusckowski as the CEO and President of DGX

  • Red Robin Gourmet (RRGB) CFO Lynn Schweinfurth to retire; succeeded by Todd Wilson who will join the company on November 7

  • Repligen (RGEN) extends and expands long-term supply agreement with Ecolab's (ECL) Purolite

  • Tenneco (TEN) appoints Jeff Stafeil as CFO, contingent upon the close of the transaction

  • Tesla (TSLA) aiming to start mass production of cybertruck in late 2023, according to Reuters

  • TuSimple Holdings (TSP) announces that it has fired CEO Xiaodi Hou

  • Vale S.A. (VALE) signs agreements to develop Mega Hubs in the Middle East and provide decarbonization solutions for steelmaking

  • Varonis Systems (VRNS) authorized an $100 mln share repurchase program

  • Veeva Systems (VEEV) announced a ten-year strategic partnership agreement with Merck (MRK)

  • Vir Biotechnology (VIR) Announces Multiple Abstracts Highlighting New Hepatitis B Data Accepted for Presentation at AASLD's The Liver Meeting 2022

  • M&A:

  • Atlas Corp (ATCO) to be acquired by Poseidon Acquisition Corp. for $15.50 in cash per share

  • Blucora (BCOR) to sell its tax software business, TaxAct; Cinven to purchase TaxAct for $720 mln in cash

  • Credit Suisse (CS) is not considering sale, according to Bloomberg

  • RadNet (RDNT) reports that it has acquired a 75% interest in London-based Heart & Lung Imaging Limited

  • Johnson & Johnson (JNJ) to acquire Abiomed (AMBD) for $380/share in cash; expected to be accretive to adj. earnings beginning in 2024

  • Microsoft (MSFT): EU will soon start probe of Microsoft deal to purchase Activision (ATVI), according to Politico

  • Sealed Air (SEE) to acquire Liquibox for $1.15 bln; expects deal to be accretive immediately after close

  • Victoria's Secret (VSCO) has signed a definitive agreement to acquire 100% of Adore Me

  • Welsbach Technology Metals Acquisition Corp. (WTMA): WaveTech Group and WTMA announce merger agreement; WaveTech plans to list on the Nasdaq Stock Market under ticker "WTG"

  • Syndicate

  • Sasol (SSL) launches offering of $750 mln guaranteed senior unsecured convertible bonds due 2027

  • Nuvalent (NUVL) prices offering of 6,865,672 shares of Class A common stock at $33.50 per share

  • IPOs:

  • Expect to Price: No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • LI +10.1%, NIO +9%, HOLX +8.4%, CIVI +7.3%, MLCO+6.9%, HLF +5.7%, GME +4.8%, BSM +4.8%, LSCC+4.6%, RRGB +4.5%, CAR +4.5%, LVS +4.2%, PLOW+4.1%, WYNN +4%, NVTA +3.9%, XPEV +3.9%, LEG+3.7%, ADUS +3.5%, AMKR +3.4%, OTTR +3.1%, IMO+3%, SONY +2.3%, KPTI +2.1%, VIR +2%, BZUN +2%, MGM +2%, OXY +1.7%, AZN +1.6%, VAC +1.5%, LPX+1.4%, CINF +1.1%, DAL +1%, IT +1%, LDOS +0.9%

  • Gapping down:

  • VRNS -31.5%, HLIT -9%, TREX -8.5%, GT -7.6%, SSL -6.7%, SYK -5.4%, CLW -4.4%, AXNX -4.3%, CVI-2.7%, TSP -2%, FLS -1.8%, SBAC -1.8%, RHP-1.4%, AFL -0.9%

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • AnaptysBio (ANAB) upgraded to Buy from Neutral at Guggenheim; tgt $44

  • Auto Trader (ATDRY) upgraded to Buy from Neutral at UBS

  • Carvana (CVNA) upgraded to Neutral from Underweight at JP Morgan; tgt $20

  • Exxon Mobil (XOM) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $115

  • First Solar (FSLR) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $162

  • Gogo (GOGO) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $15

  • Komatsu (KMTUY) upgraded to Neutral from Sell at Goldman

  • Lennox Int'l (LII) upgraded to Neutral from Underweight at JP Morgan; tgt $226

  • LPL Financial (LPLA) upgraded to Outperform from Neutral at Credit Suisse; tgt $315

  • Monster Beverage (MNST) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $106

  • Norfolk Southern (NSC) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt raised to $237

  • Downgrades:

  • Altra Industrial Motion (AIMC) downgraded to Neutral from Outperform at Robert W. Baird; tgt $62

  • Banco Santander Brasil (BSBR) downgraded to Underperform from Neutral at BofA Securities

  • Centerspace (CSR) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $70

  • Charles Schwab (SCHW) downgraded to Neutral from Outperform at Credit Suisse; tgt $84

  • Clearwater Paper (CLW) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $45

  • Emerson (EMR) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $96

  • Guardant Health (GH) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $50

  • Instil Bio (TIL) downgraded to Market Perform from Outperform at Cowen

  • Principal Fincl (PFG) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $89

  • RPT Realty (RPT) downgraded to Neutral from Outperform at Credit Suisse; tgt $10

  • Steven Madden (SHOO) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $29

  • Stryker (SYK) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $220

  • Union Pacific (UNP) downgraded to Underperform from Sector Perform at RBC Capital Mkts; tgt lowered to $187

  • TuSimple Holdings (TSP) downgraded to Perform from Outperform at Oppenheimer

  • TuSimple Holdings (TSP) downgraded to Underweight from Overweight at JP Morgan

  • Varonis Systems (VRNS) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $20

  • Varonis Systems (VRNS) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $20

  • Varonis Systems (VRNS) downgraded to Underweight from Overweight at Wells Fargo; tgt lowered to $24

  • Others:

  • ACADIA Pharmaceuticals (ACAD) initiated with a Hold at Loop Capital; tgt $17

  • atai Life Sciences N.V. (ATAI) initiated with a Buy at Loop Capital; tgt $18

  • ATS Automation (ATSAF) assumed with an Outperform at RBC Capital Mkts

  • Axsome Therapeutics (AXSM) initiated with a Buy at Loop Capital; tgt $95

  • Cerevel Therapeutics (CERE) initiated with a Buy at Loop Capital; tgt $40

  • Chemours (CC) initiated with an Underperform at Credit Suisse; tgt $24

  • COMPASS Pathways (CMPS) initiated with a Buy at Loop Capital; tgt $34

  • Deckers Outdoor (DECK) resumed with a Buy at BofA Securities; tgt $425

  • EDAP TMS SA (EDAP) initiated with a Buy at Jefferies; tgt $11

  • Evolent Health (EVH) initiated with a Hold at Truist; tgt $33

  • Exelixis (EXEL) initiated with a Buy at EF Hutton; tgt $28

  • Intellia Therapeutics (NTLA) initiated with a Buy at EF Hutton; tgt $130

  • Karuna Therapeutics (KRTX) initiated with a Buy at Loop Capital; tgt $288

  • Kone Oyj (KNYJY) initiated with a Hold at Deutsche Bank

  • Legend Biotech (LEGN) initiated with an Outperform at Cowen

  • NorthWestern (NWE) initiated with a Neutral at JP Morgan; tgt $55

  • OptimizeRx (OPRX) initiated with a Buy at Stifel; tgt $19

  • PDS Biotechnology (PDSB) initiated with a Buy at B. Riley Securities; tgt $10

  • Regeneron Pharma (REGN) initiated with a Buy at EF Hutton; tgt $851

  • Rocket Pharmaceuticals (RCKT) initiated with a Buy at BTIG Research; tgt $35

  • SAGE Therapeutics (SAGE) initiated with a Hold at Loop Capital; tgt $41

  • Schindler (SHLAF) initiated with a Buy at Deutsche Bank

  • Sumitomo Mitsui (SMFG) resumed with a Buy at Nomura

  • Tronox (TROX) initiated with an Underperform at Credit Suisse; tgt $10

  • Under Armour (UAA) resumed with a Neutral at BofA Securities; tgt $8

Upcoming Events:

  • Econ Data:

  • 09:00 ET: JOLTS - Job Openings for Sep (Briefing.comConsensus NA; Prior 10.053M)

  • 10:00 ET: ISM Manufacturing Index for Oct (Briefing.comConsensus 50.0%; Prior 50.9%)

  • 10:00 ET: Construction Spending for Sep (Briefing.comConsensus -0.5%; Prior -0.7%)

  • Earnings

  • Monday (Oct 31)

  • Morning:  CNA GPN HWM NSP JELD ON PEG SAIA XPO

  • Afternoon: ACHC ADUS AFL AWK AMKR ANET CAR AXNX NTB BCC CHE CINF CIVI CNO PLOW FLS GT HLIT HTLF HLF HOLX IMAX KMT KFRC LSCC LEG VAC NXPI OGS OTTR PSMT RMBS RRX RHP SBAC SON SYK TREX VRNS VNO WMB

  • Tuesday (Nov 1)

  • Morning: ABMD AJRD AGCO AME ARCB ARNC AVA TECH BCOR BPMC BP CTLT CNP CIGI CVLT DEA ETN ECL ECVT LLY NPO EPD ETRN ESPR FOXA BEN IT HLNE HSC HAYW HSIC IDXX INCY ICPT IPGP KKR LCII LEA LDOS LGIH LPX MPC TAP MPLX MYGN NBIX NEM PFE PSX PBI PINC PACK RGEN SAFE STNG SEE SPG SIRI SOFI SUN SYY TRI BLD TRTN UBER WAB WAT WEC XYL ZBRA

  • Afternoon:  AEIS AMD ABNB AYX AIG ANDE APAM AMK AIZ ATCO ATRC BTG BAND BLKB BFAM BRX CZR CWH CDLX CAKE CHGG CHK CRUS CLX CRK CNDT CACC DENN DVN EIX EA ET EXEL EXR FMC FCPT FRPT FRSH HRB THG PEAK HURN INSP INST IRTC JRVR KAI KAR LFUS LTHM MGY MTCH MCK MRCY MSTR MIR MDLZ NMIH OI OKE OSPN PAYC PUMP PRO PRU PSA RNR REZI SPNE SCI SIMO TSLX SKY SNCY SMCI UNVR UNM VRSK VRAY VOYA WU YUMC ZETA ZI



Asia & Europe detail:

Asia: Nikkei +0.3%, Hang Seng +5.2%, Shanghai Composite +2.6%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note with Hong Kong's Hang Seng (+5.2%) leading the way amid strength in tech names. Japan's Manufacturing PMI expanded for the 21st consecutive month in the October reading while China's Caixin Manufacturing PMI remained in contraction for the third consecutive month. Japan's Ministry of Industry asked companies and households to conserve energy during the winter. The Reserve Bank of Australia raised its cash rate by 25 bps to 2.85%, as expected.

  • In economic data:

  • China's October Caixin Manufacturing PMI 49.2 (expected 49.0; last 48.1)

  • Japan's October Manufacturing PMI 50.7, as expected (last 50.7)

  • South Korea's October Nikkei Manufacturing PMI 48.2 (last 47.3). October trade deficit $6.70 bln (expected deficit of $3.94 bln; last deficit of $3.78 bln). October Imports 9.9% yr/yr (expected 6.9%; last 18.6%) and Exports -5.7% yr/yr (expected -3.0%; last 2.7%)

  • India's October Manufacturing PMI 55.3 (expected 54.9; last 55.1)

  • Hong Kong's September Retail Sales 0.2% yr/yr (last -0.1%)

  • Australia's October Manufacturing PMI 52.7 (expected 52.8; last 53.5)

  • New Zealand's September Building Consents 3.8% m/m (last -1.6%)

---Equity Markets---

  • Japan's Nikkei: +0.3%

  • Hong Kong's Hang Seng: +5.2%

  • China's Shanghai Composite: +2.6%

  • India's Sensex: +0.6%

  • South Korea's Kospi: +1.8%

  • Australia's ASX All Ordinaries: +1.6%

---FX---

  • USD/JPY: -1.1% to 147.09

  • USD/CNH: -0.8% to 7.2741

  • USD/INR: -0.1% to 82.63

Europe: DAX +1.3%, FTSE +1.6%, CAC +1.7%

Major European indices trade on a firmly higher note. The Bank of England began its scheduled Gilt auctions today, selling GBP750 bln in shorter maturities. European Central Bank President Lagarde said that recession risk in the eurozone has increased, and that inflation is too high. BP reported better than expected quarterly results, raised its guidance, and boosted buyback.

  • In economic data:

  • Germany's September Import Price Index -0.9% m/m (expected 1.1%; last 4.3%); 29.8% yr/yr (expected 31.0%; last 32.7%)

  • U.K.'s October Manufacturing PMI 46.2 (expected 45.8; last 48.4). October Nationwide HPI -0.9% m/m (last 0.0%); 7.2% yr/yr (expected 8.3%; last 9.5%)

  • Swiss October procure.chPMI 54.9 (expected 56.0; last 57.1) and Q4 SECO Consumer Climate -38 (expected -43; last -42)

---Equity Markets---

  • STOXX Europe 600: +1.4%

  • Germany's DAX: +1.3%

  • U.K.'s FTSE 100: +1.6%

  • France's CAC 40: +1.7%

  • Italy's FTSE MIB: +1.8%

  • Spain's IBEX 35: +1.3%

---FX---

  • EUR/USD: +0.5% to 0.9928

  • GBP/USD: +0.6% to 1.1529

  • USD/CHF: -0.7% to 0.9937


 

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