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01/11/23 Briefing

Writer: Simon Charles HooperSimon Charles Hooper

The S&P 500 futures are down 16 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 66 points and are trading 0.4% below fair value. The Dow Jones Industrial Average futures are down 111 points and are trading 0.3% below fair value.

Stock futures indicate a lower open on the heels of solid gains to start the week. Buyers are showing some hesitation in front of the Treasury's quarterly refunding announcement at 8:30 a.m. ET, an impending batch of economic news that includes the October ISM Manufacturing Index, the FOMC decision at 2:00 p.m. ET, and Fed Chair Powell's press conference at 2:30 p.m. ET

The 10-yr note yield is up two basis points to 4.90% and the 2-yr note yield is down one basis point to 5.07%.

China's Caixin Manufacturing PMI returned into contraction after two months of expansion.

The weekly MBA Mortgage Applications Index declined 2.1% after last week's 1.0% decline. Other economic data today includes:

  • 8:15 ET: October ADP Employment Change (Briefing.comconsensus 100K; prior 89K)

  • 9:45 ET: Final October S&P Global US Manufacturing PMI (prior 49.8)

  • 10:00 ET: September Construction Spending (Briefing.comconsensus 0.4%; prior 0.5%), October ISM Manufacturing Index (Briefing.comconsensus 49.0; prior 49.0), and September job openings (prior 9.610 mln)

  • 10:30 ET: Weekly crude oil inventories (prior +1.37 mln)

In corporate news:

  • Advanced Micro (AMD 96.90, -1.60, -1.6%): beats by $0.02, beats on revs; guides Q4 revs in-line; Data Center GPU revs to exceed $2.0 bln in 2024

  • Paycom Software (PAYC 153.75, -91.22, -37.2%): beats by $0.16, misses on revs; guides Q4 revs below consensus; will expand its payroll solution into Mexico

  • Match Group (MTCH 31.50, -3.10, -9.0%): beats by $0.04, reports revs in-line; guides Q4 revs below consensus

  • First Solar (FLSR 147.62, +5.17, +3.6%): beats by $0.45, misses on revs; guides FY23 EPS in-line, reaffirms FY23 revs guidance

  • Estee Lauder (EL 110.95, -17.92, -13.9%): beats by $0.32, reports revs in-line; guides Q2 EPS below consensus; guides FY24 EPS below consensus

  • Wayfair (W 37.22, -5.39, -12.7%): beats by $0.35, misses on revs

  • Tesla (TSLA 201.51, +0.67, +0.3%) aiming to produce 200K Cybertrucks per year, according to Reuters

  • CVS Health (CVS 68.09, -0.92, -1.3%): beats by $0.08, beats on revs; reaffirms FY23 EPS guidance

  • Humana (HUM 505.31, -18.38, -3.5%): beats by $0.62, beats on revs; guides FY23 EPS in-line

  • Kraft Heinz (KHC 31.70, +0.24, +0.8%): beats by $0.06, misses on revs; guides FY23 EPS above consensus; announces leadership and organizational changes

  • Boeing (BA 188.80, +1.98, +1.1%): upgraded to Conviction Buy from Buy at Goldman

  • Norwegian Cruise Line (NCLH 13.12, -0.47, -3.5%): beats by $0.08, reports revs in-line; guides Q4 EPS below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +2.4%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.1%, India's Sensex: -0.4%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +0.8%.

  • In economic data:

  • China's October Caixin Manufacturing PMI 49.5 (expected 50.8; last 50.6)

  • Japan's October Manufacturing PMI 48.7 (expected 48.5; last 48.5) o South Korea's October trade surplus $1.64 bln (expected deficit of $2.00 bln; last surplus of $3.70 bln). October Imports -9.7% yr/yr (expected -4.3%; last -16.5%) and Exports 5.1% yr/yr (expected 5.5%; last -4.4%). October Manufacturing PMI 49.8 (last 49.9)

  • Hong Kong's September Retail Sales 13.0% yr/yr (last 13.7%)

  • Australia's October AIG Manufacturing Index -20.9 (last -12.8) and AIG Construction Index 18.5 (last 7.1). October Manufacturing PMI 48.2 (expected 48.0; last 48.7). September Building Approvals -4.6% m/m (expected 1.3%; last 8.1%); -7.1% yr/yr (last -5.9%). September Private House Approvals -4.6% m/m (last 5.8%)

  • New Zealand's Q3 Employment Change -0.2% qtr/qtr (expected 0.4%; last 1.0%). Q3 Labor Cost Index 0.8% qtr/qtr (expected 1.0%; last 1.1%); 4.1% yr/yr (expected 4.2%; last 4.3%). Q3 Unemployment Rate 3.9%, as expected (last 3.6%) and Q3 Participation Rate 72.00% (expected 72.50%; last 72.50%)

  • In news:

  • China's Caixin Manufacturing PMI returned into contraction after two months of expansion while Australia's Manufacturing PMI pointed to the eighth consecutive month of contracting activity.

  • BYD will reportedly discount some of its vehicles this month.

  • Japan is planning to spend around JPY17 trln on economic stimulus.

  • Reserve Bank of New Zealand Deputy Governor Hawkesby said that slow demand from China is weighing on commodity prices and that the economy can withstand a much higher unemployment rate.

  • Major European indices trade near their flat lines amid light volume due to All Saints' Day. STOXX Europe 600: +0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: UNCH, Spain's IBEX 35: UNCH.

  • In economic data:

  • U.K.'s October Nationwide HPI 0.9% m/m (expected -0.4%; last 0.1%); -3.3% yr/yr (expected -4.8%; last -5.3%). October Manufacturing PMI 44.8 (expected 45.2; last 44.3)

  • Swiss October procure.chPMI 40.6 (expected 45.0; last 44.9)

  • In news:

  • GlaxoSmithKline beat quarterly expectations and raised its guidance while Aston Martin missed estimates and lowered its volume growth forecast for the year due to production delays.

  • Bankruptcies in Sweden have reached a 24-year high.

 

U.S. equity futures:

  • S&P 500 Futures -21 @ 4,173

  • DJIA Futures: -131 @ 32,922

  • Nasdaq 100 Futures: -71 @ 14,336

Overseas:

  • Europe: DAX UNCH, FTSE -0.1%, CAC UNCH

  • Asia: Nikkei +2.4%, Hang Seng -0.1%, Shanghai Composite +0.1%

Commodities:

  • Crude Oil +1.61 @ 82.63

  • Nat Gas -0.099 @ 3.476

  • Gold -1.65 @ 1992.65

  • Silver -0.187 @ 22.765

  • Copper +0.0118 @ 3.6608

Earnings/Guidance:

  • Advanced Energy (AEIS) beats by $0.14, misses on revs; guides Q4 EPS in-line, revs below consensus

  • Advanced Micro (AMD) beats by $0.02, beats on revs; guides Q4 revs in-line

  • Alight (ALIT) beats by $0.02, misses on revs; raises FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Amcor (AMCR) beats by $0.01, reports revs in-line; reaffirms FY24 EPS guidance

  • Apellis Pharmaceuticals (APLS) misses by $0.18, beats on revs

  • Assurant (AIZ) beats by $1.71, beats on revs

  • Astec Industries (ASTE) misses by $0.63, misses on revs

  • Avanos Medical (AVNS) beats by $0.02, reports revs in-line; guides FY23 EPS in-line, revs in-line

  • Avista (AVA) beats by $0.05, beats on revs; guides FY23 EPS in-line

  • Axalta Coating Systems (AXTA) beats by $0.07, reports revs in-line; raises FY23 EPS guidance above consensus

  • Bally's Corporation (BALY) misses by $1.03, reports revs in-line; guides FY23 revs in-line

  • Bausch + Lomb (BLCO) beats by $0.03, beats on revs; raises FY23 revs in-line

  • Berry Petroleum (BERY) misses by $0.14, beats on revs

  • Big 5 Sports (BGFV) reports Q3 EPS of $0.08 vs $0.16 single est; revs fell 8.2% yr/yr to $239.9 mln vs $243.6 mln single est

  • Blackbaud (BLKB) beats by $0.15, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Brinker (EAT) beats by $0.23, reports revs in-line; raises FY24 EPS above consensus, revs in-line

  • Brookfield Infrastructure (BIP) misses by $0.01

  • Builders FirstSource (BLDR) beats by $0.36, misses on revs; guides FY23 revs below consensus

  • Caesars Entertainment (CZR) beats by $0.05, beats on revs

  • Canada Goose (GOOS) beats by CAD 0.38, misses on revs, lowers FY24 guidance

  • CDW (CDW) beats by $0.12, misses on revs

  • Cerevel Therapeutics (CERE) beats by $0.02

  • Chefs' Warehouse (CHEF) misses by $0.01, beats on revs; guides FY23 revs above consensus; authorizes two-year repurchase program up to $100 mln

  • Chesapeake Energy (CHK) beats by $0.54, beats on revs

  • Clean Harbors (CLH) misses by $0.41, misses on revs

  • Columbus McKinnon (CMCO) beats by $0.06, beats on revs; guides Q3 revs in-line

  • Costamare (CMRE) beats by $0.02, beats on revs (two ests)

  • CVS Health (CVS) beats by $0.08, beats on revs; reaffirms FY23 EPS guidance

  • Diamondrock Hospitality (DRH) beats by $0.03, beats on revs

  • Dine Brands (DIN) beats by $0.15, reports revs in-line, narrows FY23 adjusted EBITDA guidance

  • Donnelley Financial (DFIN) beats by $0.07, misses on revs

  • Douglas Emmett (DEI) beats by $0.01, beats on revs; guides FY23 FFO in-line

  • Driven Brands (DRVN) beats by $0.02, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • DTE Energy (DTE) misses by $0.19; guides FY23 EPS below consensus

  • DT Midstream (DTM) beats by $0.04; reaffirms FY23 EPS guidance

  • Dun & Bradstreet (DNB) beats by $0.01, beats on revs; guides FY23 EPS in-line, revs in-line

  • DuPont (DD) beats by $0.08, misses on revs; guides FY23 EPS in-line, lowers revs below consensus

  • Earthstone Energy (ESTE) misses by $0.23, beats on revs

  • EnLink Midstream (ENLC) reports Q3 (Sep) results, misses on revs; on track to achieve midpoint of FY23 adjusted EBITDA guidance

  • Entergy (ETR) beats by $0.25; guides FY23 EPS in-line

  • Equitable Holdings (EQH) misses by $0.17, beats on revs

  • Equity Residential (EQR) misses by $0.01, reports revs in-line; guides Q4 FFO in-line

  • ESAB Corp. (ESAB) beats by $0.12, beats on revs; raises FY32 EPS above consensus, revs in-line

  • Estee Lauder (EL) beats by $0.32, reports revs in-line; guides Q2 EPS below consensus; guides FY24 EPS below consensus

  • Extreme Networks (EXTR) beats by $0.03, beats on revs; guides Q2 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus

  • First Solar (FSLR) beats by $0.45, misses on revs; guides FY23 EPS in-line, reaffirms FY23 revs guidance

  • First Watch Restaurant Group (FWRG) beats by $0.05, beats on revs; guides FY23 revs in-line

  • Fresh Del Monte (FDP) misses by $0.07, misses on revs

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

  • Frontier Communications Parent (FYBR) beats by $0.09, reports revs in-line; reaffirms FY23 guidance metrics

  • Garmin (GRMN) beats by $0.13, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Generac (GNRC) beats by $0.09, beats on revs; reaffirms FY23 revs guidance

  • GlaxoSmithKline (GSK) reports Q3 (Sep) results, beats on revs; raises outlook

  • Green Brick Partners (GRBK) beats by $0.11, beats on revs

  • Gulfport Energy (GPOR) reports Q3 results; delivered net production of 1,056.9 MMcfe per day, above analyst expectations; raising FY23 production forecast to 1,045-1,055 MMcfe per day

  • Humana (HUM) beats by $0.62, beats on revs; guides FY23 EPS in-line

  • Huntsman (HUN) misses by $0.05, misses on revs

  • IDEXX Labs (IDXX) beats by $0.16, misses on revs; guides FY23 EPS in-line, revs below consensus

  • IQVIA (IQV) beats by $0.05, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Janus Henderson Group (JHG) beats by $0.10, beats on revs; approves new share repurchase authorization of up to $150 mln of common shares

  • Kadant (KAI) beats by $0.42, beats on revs; guides Q4 EPS in-line, revs in-line

  • Kennametal (KMT) beats by $0.06, misses on revs; guides Q2 EPS below consensus, revs in-line; guides FY24 EPS in-line, revs in-line

  • Kraft Heinz (KHC) beats by $0.06, misses on revs; guides FY23 EPS above consensus; announces leadership and organizational changes

  • Li Auto (LI) reports October deliveries increased 302.1% yr/yr

  • Liberty Global (LBTYA) reports Q3 (Sep) results

  • Littelfuse (LFUS) beats by $0.36, beats on revs; guides Q4 EPS below consensus, revs below consensus

  • LivaNova (LIVN) beats by $0.09, beats on revs; guides FY23 EPS in-line, revs below consensus

  • Livent (LTHM) misses by $0.04, misses on revs; lowers FY23 revs below consensus; cuts adj. EBITDA outlook

  • Louisiana-Pacific (LPX) beats by $0.09, reports revs in-line

  • Lumen Technologies (LUMN) misses by $0.13, reports revs in-line

  • Martin Marietta (MLM) beats by $0.89, reports revs in-line; guides FY23 revs in-line

  • MasTec (MTZ) misses by $0.89, misses on revs; guides Q4 EPS below consensus; guides FY23 revs below consensus

  • Match Group (MTCH) beats by $0.04, reports revs in-line; guides Q4 revs below consensus

  • Materion (MTRN) beats by $0.09, reports revs in-line; guides FY23 EPS in-line

  • Meritage (MTH) beats by $0.86, beats on revs; guides Q4 EPS in-line, revs below consensus

  • MGIC Investment (MTG) beats by $0.08, reports revs in-line

  • NIO (NIO) provides October 2023 delivery update

  • NiSource (NI) beats by $0.03; reaffirms FY23 EPS guidance; guides FY24 EPS in-line

  • Noble Corporation (NE) beats by $0.03, beats on revs; guides Q4 revs in-line, increases quarterly interim dividend

  • Norwegian Cruise Line (NCLH) beats by $0.08, reports revs in-line; guides Q4 EPS below consensus

  • O-I Glass (OI) beats by $0.10, misses on revs; lowers Q4 EPS guidance below consensus

  • ONEOK (OKE) misses by $0.08

  • Parsons (PSN) beats by $0.07, beats on revs; raises FY23 revs guidance above consensus

  • Paycom Software (PAYC) beats by $0.16, misses on revs; guides Q4 revs below consensus

  • Perion Network (PERI) beats by $0.10, reports revs in-line; reaffirms FY23 revs guidance

  • Phillips Edison & Company (PECO) beats by $0.01, beats on revs; narrows FY23 FFO guidance

  • ProPetro (PUMP) beats by $0.02, beats on revs

  • PROS Holdings (PRO) beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line

  • Quad/Graphics (QUAD) reports Q3 (Sep) results

  • Radware (RDWR) reports EPS in-line, revs in-line

  • Safehold (SAFE) misses by $0.02, beats on revs

  • Scotts Miracle-Gro (SMG) beats by $0.11, beats on revs

  • Select Energy Services (WTTR) misses by $0.11, misses on revenue

  • Silicon Labs (SLAB) beats by $0.01, beats on revs; guides Q4 EPS below consensus, revs in-line

  • SiteOne Landscape Supply (SITE) misses by $0.25, reports revs in-line

  • Skyline Champion (SKY) beats by $0.02, beats on revs

  • Sonoco Products (SON) beats by $0.23, misses on revs; guides Q4 EPS in-line; raises FY23 EPS above consensus

  • Sotera Health (SHC) beats by $0.01, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance; anticipates results at lower end of range

  • Spirit Aerosystems (SPR) beats by $0.12, misses on revs

  • Sportradar Group (SRAD) reports Q3 results; misses on revs; guides FY23 revs below consensus

  • SSR Mining (SSRM) reports EPS inline, misses on revs

  • SunCoke Energy (SXC) misses by $0.10, beats on revs

  • Sunoco LP (SUN) beats by $1.72, beats on revs

  • TE Connectivity (TEL) beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs below consensus

  • Ternium S.A. (TX) misses by $0.16, beats on revs

  • TG Therapeutics (TGTX) beats by $0.70

  • Thomson Reuters (TRI) beats by $0.11, reports revs in-line; reaffirms FY23 revs guidance

  • Timken (TKR) misses by $0.04, misses on revs; guides FY23 EPS below consensus, revs below consensus

  • Toyota Motor (TM) reports H1 results; sees FY24 outlook above expectations

  • Trane (TT) beats by $0.13, beats on revs; raises FY23 guidance

  • Trimble (TRMB) beats by $0.08, reports revs in-line; guides Q4 EPS below consensus

  • United Therapeutics (UTHR) beats by $0.28, beats on revs

  • Unum Group (UNM) beats by $0.02, reports revs in-line

  • Verisk Analytics (VRSK) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Voya Financial (VOYA) beats by $0.02, reiterates Investor Day target of 12% to 17% EPS growth through the three-year period ending in 2024

  • Wayfair (W) beats by $0.35, misses on revs

  • Xenia Hotels (XHR) misses by $0.01, reports revs in-line; guides FY23 AFFO in-line

  • XPeng (XPEV) reports October deliveries increased 292% yr/yr

  • Yum! Brands (YUM) beats by $0.17, misses on revs, comps of +6%

  • Yum China (YUMC) misses by $0.06, misses on revs; SSS +4% yr/yr

  • Zurn Elkay Water Solutions (ZWS) beats by $0.02, reports revs in-line; guides Q4 revs below consensus

News:

  • Israel targeted Hamas militants in northern Gaza, according to the New York Times

  • Chip industry expects a rebound, according to the Wall Street Journal

  • Macau Gaming Inspection and Coordination Bureau reported October gross revs 401% yr/yr to HKD 19.5 bln versus -10.7% in October of 2022

  • Vice President Harris announces new U.S. initiatives to advance the safe and responsible use of artificial intelligence

  • Aldeyra Therapeutics (ALDX) has entered into an exclusive option agreement with AbbVie (ABBV)

  • argenx (ARGX) Highlights Data Evaluating VYVGART in Neuromuscular Autoimmune Disease at AANEM and MGFA Scientific Sessions

  • AstraZeneca (AZN) announces collaboration and investment agreement with Cellectis (CLLS) to accelerate cell therapy and genomic medicine ambitions

  • BlueLinx (BXC) announces new $100 million share repurchase authorization

  • Bristol-Myers (BMY) appoints Christopher Boerner, Ph.D., to Chair of the Board, effective April 1, 2024

  • Canada Goose (GOOS) announces that Neil Bowden, current Deputy CFO, has been named Chief Financial Officer and current CFO, Jonathan Sinclair, has been named President, APAC, both effective April 1, 2024

  • Celanese (CE) announced the intended closure of its Polyamide 66 and High-Performance Nylon polymerization units

  • Chesapeake Energy (CHK) and Vitol announce the entrance into a Heads of Agreement with Chesapeake Energy Marketing a subsidiary of Chesapeake Energy Corporation

  • CRISPR Therapeutics (CRSP) completes FDA Advisory Committee Meeting for Exagamglogene Autotemcel for severe sickle cell disease

  • Digital Realty Trust (DLR) announces definitive agreements with Brookfield Infrastructure Partners L.P. (BIP) and its institutional partners, Cyxtera Technologies (CYXTQ) and Digital Core REIT that successfully resolves the relationships with Cyxtera

  • DraftKings (DKNG) announces plans to launch online sportsbook in maine through deal with Passamaquoddy Tribe

  • Gran Tierra Energy (GTE) announces appointment of Sebastien Morin as COO; Announces Normal Course Issuer Bid and Automatic Share Purchase Plan

  • ICF International (ICFI): The Oregon Housing and Community Services Department recently awarded global consulting and technology services provider ICF a new contract to provide technology-enabled disaster management and program implementation services to support wildfire recovery efforts

  • IperionX (IPX) awarded $12.7 mln DOD contract

  • Karuna Therapeutics (KRTX) announces it will be presenting new efficacy, safety, and tolerability analyses from its EMERGENT program evaluating KarXT (xanomeline-trospium) in adults with schizophrenia at the upcoming Neuroscience Education Institute Congress

  • Match Group (MTCH) and Google (GOOG) settle antitrust lawsuit, according to Bloomberg

  • Merck (MRK): KEYTRUDA (pembrolizumab) Significantly Improved Overall Survival (OS) Versus Placebo as Adjuvant Therapy for Certain Patients With Renal Cell Carcinoma (RCC) Following Nephrectomy

  • Merck (MRK): FDA Approves Merck's KEYTRUDA (pembrolizumab) Plus Gemcitabine and Cisplatin as Treatment for Patients With Locally Advanced Unresectable or Metastatic Biliary Tract Cancer

  • Nano Dimension (NNDM) updates plans for Extraordinary General Meeting of shareholders

  • Northrop Grumman (NOC) awarded $543 mln U.S. Navy contract modification

  • Novartis AG (NVS): FDA approves Novartis Cosentyx for hidradenitis suppurativa patients

  • Novavax's (NVAX) updated COVID-19 vaccine now approved in the EU

  • Novonix Limited (NVX) finalizes $100 mln grant award from DOE

  • Organon (OGN) and Sempre Health announce a strategic partnership designed to motivate eligible patients to refill their prescriptions on time and improve adherence through an innovative pricing program that offers personalized support

  • Paycom Software (PAYC) will expand its payroll solution into Mexico

  • Phillips Edison & Company (PECO) announces Devin Murphy to step down as President; Bob Myers promoted to President; Joe Schlosser promoted to COO

  • Selecta Biosciences (SELB) has entered into an agreement to transition the manufacturing and development rights and remaining clinical operations of ImmTOR for SEL-212 to its development and commercialization partner, Swedish Orphan Biovitrum AB

  • Silence Therapeutics (SLN) announces positive topline results from the multiple dose component of the APOLLO phase 1 study of zerlasiran in 36 adults with baseline lipoprotein(a), or Lp(a), levels at or over 150 nmol/L and stable atherosclerotic cardiovascular disease

  • SpringWorks Therapeutics (SWTX) Announces Presentation of Additional Data from Phase 3 DeFi Trial of Nirogacestat in Adults with Desmoid Tumors at the 2023 CTOS Annual Meeting

  • Tesla (TSLA) aiming to produce 200K Cybertrucks per year, according to Reuters

  • Thomson Reuters (TRI) announces updates on its multi-year global investment strategy in generative artificial intelligence

  • Trimble (TRMB) announces David Barnes to retire; Phil Sawarynski named CFO effective May 2024

  • Unum Group (UNM) board of directors authorizes $500 million share repurchase program

  • WeWork (WE) aiming to file for bankruptcy next week, according to the Wall Street Journal

M&A:

  • Afya (AFYA) announces additional purchase of 15% of Centro de Ciencias em Saude de Itajuba S.A.

  • American Water Works (AWK): Indiana American Water acquires Sunset Village Water System in Southeast Indiana

  • Brown & Brown (BRO) announces sale of certain third-party administer businesses and enters into long-term strategic relationship with Davies Group Ltd

  • Clear Channel Outdoor (CCO) Completes Sale of Clear Channel France to Equinox Industries (EQX); initiates process to sell its Europe-North segment businesses and strategic review of its Latin American businesses

  • DuPont (DD) to complete previously announced sale of 80.1% ownership interest in Delrin acetal homopolymer business to an affiliate of TJC LP

  • Tyler Tech (TYL) acquires ResourceX; financial terms were not disclosed

Syndicate:

  • Encompass Health (EHC) files mixed shelf securities offering

  • Western Digital (WDC) prices upsizes and prices offering of $1.4 bln of convertible senior notes due 2028

  • Xcel Energy (XEL) files common stock offering

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

  • CRSP +17.2%, NVX +14.8%, GRBK +6.5%, GTE +6.2%, PRO +5.9%, CZR +4.7%, AIZ+4.3%, CGAU +4.3%, XPEV +3.9%, GNRC+3.1%, FSLR +2.9%, TM +2.7%, FRSH +2.6%, MTTR +2.5%, TT +2.5%, MTH +2.1%, DKNG+2%, NVAX +1.7%, SLI +1.5%, BLKB +1.5%, LPX +1.5%, ARGX +1.3%, LI +1.2%, AEIS+1.2%, MTG +1%, AVA +1%, CCO +0.9%

  • Gapping down:

  • WE -37.7%, PAYC -37.5%, BGFV -15%, MTZ-12.3%, YUMC -12.3%, WTTR -8.7%, QUAD-8%, MTCH -7.5%, OI -7.1%, PECO -6.5%, APAM -6.1%, LTHM -5.8%, IPX -4.9%, VOYA-4.9%, SAFE -4.7%, HUN -4.2%, FDP -3.8%, UNM -3.4%, SKY -2.8%, AMD -2.5%, TX-2.1%, XHR -2%, GSK -2%, SON -1.6%, DD-1.5%, AN -1.2%, NNDM -1.1%, CE -1.1%, SSRM -0.9%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Boeing (BA) upgraded to Conviction Buy from Buy at Goldman; tgt $258

  • Cemig (CIG) upgraded to Buy from Hold at HSBC Securities; tgt $2.90

  • Progressive (PGR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $160

  • Shopify (SHOP) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $50

  • Simon Properties (SPG) upgraded to Conviction Buy from Buy at Goldman; tgt $144

  • Stellantis (STLA) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $26.40

  • STMicroelectronics (STM) upgraded to Overweight from Equal-Weight at Morgan Stanley

  • Downgrades:

  • BP (BP) downgraded to Underweight from Neutral at JP Morgan

  • ZoomInfo (ZI) downgraded to Neutral from Buy at Goldman; tgt lowered to $17

  • Others:

  • British American Tobacco (BTI) initiated with an Overweight at Morgan Stanley; tgt $38

  • Credit Acceptance Corp. (CACC) initiated with an Underperform at TD Cowen; tgt $360

  • Discover Financial Services (DFS) initiated with an Outperform and named a Top Pick at TD Cowen; tgt $100

  • Haleon plc (HLN) initiated with an Overweight at Morgan Stanley; tgt $9

  • OneMain Holdings (OMF) initiated with an Outperform at TD Cowen; tgt $43

  • Sallie Mae (SLM) initiated with an Outperform at TD Cowen; tgt $17.50

  • SeaWorld Entertainment (SEAS) assumed with a Neutral at JP Morgan; tgt lowered to $57

  • Six Flags (SIX) initiated with an Underweight at JP Morgan; tgt $16

  • Synchrony Financial (SYF) initiated with an Outperform at TD Cowen; tgt $34

Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for Oct 28 (Briefing.comConsensus NA; Prior -1.0%)

  • 08:15 ET: ADP Employment Change for Oct (Briefing.comConsensus 100K; Prior 89K)

  • 09:45 ET: S&P Global US Manufacturing PMI - Final for Oct (Briefing.comConsensus NA; Prior 49.8)

  • 10:00 ET: Construction Spending for Sept (Briefing.comConsensus 0.4%; Prior 0.5%)

  • 10:00 ET: ISM Manufacturing Index for Oct (Briefing.comConsensus 49.0%; Prior 49.0%)

  • 10:00 ET: JOLTS - Job Openings for Sept (Briefing.comConsensus NA; Prior 9.610M)

  • 10:00 ET: EIA Crude Oil Inventories for Oct 28 (Briefing.comConsensus NA; Prior +1.37M)

  • 10:00 ET: FOMC Rate Decision (Briefing.comConsensus 5.25-5.50%; Prior 5.25-5.50%)

Earnings:

  • Monday (Oct 30)

  • Morning:  CHKP CNA JKS MCD ON RVTY SJW SOFI WDC XPO

  • Afternoon: ADUS AGNC AMKR ACGL ANET AXNX BCC BRX CSWC CHGG CRK CACC CWK DENN PLOW EQC FMC FWRD HLIT PEAK HTLF IRT INST KMPR KFRC LSCC LEG MATX MPWR OGS OTTR PDM PINS PCH PSMT PSA LUNG QGEN RMBS SPG THC RIG TREX VFC VRNS VNO WELL WOLF WK ZI

  • Tuesday (Oct 31)

  • Morning: AGCO ALLE AME AMGN BUD ARES TECH BP CCJ CAT CVLT DORM DEA ETN ECL NPO EPD ETRN BEN GEHC GPN GPK GPRE HRMY HAYW HNI HUBB INCY NSP IGT IPGP JBLU LDOS LGIH LXP MAC MBUU MPC MPLX MSCI NBIX PRFT PFE PJT PEG PACK RGEN ST SSTK SIRI SFM STVN SYY TNC COCO BLD UFPI WEC XYL ZBRA

  • Afternoon:  AEIS AMD APAM AIZ BLKB CZR CHK CGNX DEI EQH EQR FSLR FRSH HUN LFUS LTHM LUMN MTCH MTH MTG NE OI OKE PAYC PECO PRO SAFE SKY SON TX UNM VOYA XHR YUMC

  • Wednesday (Nov 1)

  • Morning:  ALIT APLS APO ASTE AVNS AVA AXTA BLCO BRY EAT BLDR GOOS CDW CERE CHEF CLH CMCO CNDT CVS DRH DBRG DIN DFIN DRVN DTM DTE DNB DD ETR ESAB EL EXTR FWRG FDP FTDR FYBR GRMN GNRC GSK HUM IDXX IQV JHG KMT KHC LIVN MLM MTRN NMRK NI NCLH PSN PERI PUMP RDWR SMG SITE SHC SPR SXC SUN SPWR TEL TKR TT TRMB TTMI UTHR VRSK W WING YUM

  • Afternoon:  EGHT AFL ABNB ALB ALKT ALL ATUS AFG AIG AWK AMWL ANSS ACA ATRC CAR AVT ACLS AXS BALY BMRN BKH BXP BFAM BWXT CHRW CRC CPE CWH CWST CDAY CF CAKE CHRD CWAN CTSH CFLT CORT CLB CCRN CSGS CW DASH DXC ELF EIX EA ECPG ERII ET ETSY EXAS EXEL FARO FSLY FORM FCPT GKOS THG HLF HST HPP NARI INFA IR NGVT IIPR FROG JOBY KW LMAT LMND LNC MGY MTW MRO VAC MCK MLNK MET MSTR MIR MKSI MOD MDLZ MUSA NFG NSA NVRO NMIH NOG NUS NTR KAR PLMR PGRE PK PYPL PRCT PCOR PRU PTC QTWO QRVO QCOM QDEL QNST RDN RPD RYN RRX RELY RNR REZI RVLV RLJ ROKU RSI SRPT SDGR SIGI SCI SIMO SITM SEDG STAA SRI RGR SUM SMCI TNDM TENB TS TYL VSTO HCC WTS WERN WES WMB WSC ZETA ZG

  • Thursday (Nov 2)

  • Morning: FLWS ACIW GOLF ADT WMS AGIO ATI ALGT ALGM ALE ALNY AMR AEP APG APTV AHH ARW AUPH ATHM AVNT BALL BHC BAX BCE BDC BCRX BWA BR CARS COR LNG CWEN COP CROX CMI CYBR DLX XRAY LPG DUK DT LLY ENTG NVRI EPAM ESNT EXC FSS RACE FOXA GEL ROCK GIL HAE DINO HEP HWM HII H IDA INMD NSIT ICE IDCC ITCI IONS IRM ITRI ITT JLL KRTX K KTB KYMR LAMR LANC LNTH DRS MAR MDU MGPI MRNA TAP MUR NTCT DNOW NRG OGE OMCL OGN PCRX PZZA PARA PH PBF MD PTON PENN PGTI PNW PBI PTLO PPL PBH PRMW PWR RCM REGN ROK SPGI SABR SNDR SEE SHAK SHOP SITC SWI SO SRC SBUX SRCL STRA TFX TPX CI THRY TRN UNIT UPBD VIRT WEN WCC WLK ZTS

  • Thursday (Nov 2)

  • Afternoon:  TXG ABCL ACAD ACCO LNT ALTR AMH COLD AMN APPN AAPL TEAM BAND BILL BL SQ BKNG BOOT CABO IMOS CHUY CRUS NET COHU CODI ED BAP CUBE CYTK DH DOCN BOOM DKNG DBX LOCO EOG EVH EXPI EXPE FRT FIGS FIVN FND FTNT FOXF FNKO GDDY LOPE GDYN HLIO HTGC HMN HURN ICFI PODD IAS IRTC KN KTOS LYV MTZ MERC MCW MODV MC MNST MSI MP LASR OHI OPEN OEC OUT PLTR PCTY PEN PRDO PXD PLYA KWR QLYS RMAX RDFN REG RGA RPT RYAN SBAC SEM TSLX SWKS SM SWN SPT SPXC STEM SYK SG SNDX TMST TRUP UDMY OLED VTR VIAV VIR VTLE WW YELP

  • Friday (Nov 3) 

  • Morning:  AMCX AXL ATMU BLMN CAH CBOE CHD CNK CRBG D FLR FLGT IT GTES EAF HR TILE KOP MOG.A NWN OMI DOC PAA PRVA PRLB SSP SRE TDS SLCA USM WPC

  • Afternoon:  MCHP

 

Asia & Europe detail:

Asia: Nikkei +2.4%, Hang Seng -0.1%, Shanghai Composite +0.1%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. China's Caixin Manufacturing PMI returned into contraction after two months of expansion while Australia's Manufacturing PMI pointed to the eighth consecutive month of contracting activity. BYD will reportedly discount some of its vehicles this month. Japan is planning to spend around JPY17 trln on economic stimulus. Reserve Bank of New Zealand Deputy Governor Hawkesby said that slow demand from China is weighing on commodity prices and that the economy can withstand a much higher unemployment rate.

  • In economic data:

  • China's October Caixin Manufacturing PMI 49.5 (expected 50.8; last 50.6)

  • Japan's October Manufacturing PMI 48.7 (expected 48.5; last 48.5) o South Korea's October trade surplus $1.64 bln (expected deficit of $2.00 bln; last surplus of $3.70 bln). October Imports -9.7% yr/yr (expected -4.3%; last -16.5%) and Exports 5.1% yr/yr (expected 5.5%; last -4.4%). October Manufacturing PMI 49.8 (last 49.9)

  • Hong Kong's September Retail Sales 13.0% yr/yr (last 13.7%)

  • Australia's October AIG Manufacturing Index -20.9 (last -12.8) and AIG Construction Index 18.5 (last 7.1). October Manufacturing PMI 48.2 (expected 48.0; last 48.7). September Building Approvals -4.6% m/m (expected 1.3%; last 8.1%); -7.1% yr/yr (last -5.9%). September Private House Approvals -4.6% m/m (last 5.8%)

  • New Zealand's Q3 Employment Change -0.2% qtr/qtr (expected 0.4%; last 1.0%). Q3 Labor Cost Index 0.8% qtr/qtr (expected 1.0%; last 1.1%); 4.1% yr/yr (expected 4.2%; last 4.3%). Q3 Unemployment Rate 3.9%, as expected (last 3.6%) and Q3 Participation Rate 72.00% (expected 72.50%; last 72.50%)

---Equity Markets---

  • Japan's Nikkei: +2.4%

  • Hong Kong's Hang Seng: -0.1%

  • China's Shanghai Composite: +0.1%

  • India's Sensex: -0.4%

  • South Korea's Kospi: +1.0%

  • Australia's ASX All Ordinaries: +0.8%

---FX---

  • USD/JPY: -0.3% to 151.14

  • USD/CNH: UNCH at 7.3354

  • USD/INR: UNCH at 83.27

 

Europe: DAX UNCH, FTSE -0.1%, CAC UNCH

Major European indices trade near their flat lines amid light volume due to All Saints' Day. GlaxoSmithKline beat quarterly expectations and raised its guidance while Aston Martin missed estimates and lowered its volume growth forecast for the year due to production delays. Bankruptcies in Sweden have reached a 24-year high.

  • In economic data:

  • U.K.'s October Nationwide HPI 0.9% m/m (expected -0.4%; last 0.1%); -3.3% yr/yr (expected -4.8%; last -5.3%). October Manufacturing PMI 44.8 (expected 45.2; last 44.3)

  • Swiss October procure.chPMI 40.6 (expected 45.0; last 44.9)

---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: UNCH

  • U.K.'s FTSE 100: -0.1%

  • France's CAC 40: UNCH

  • Italy's FTSE MIB: UNCH

  • Spain's IBEX 35: UNCH

---FX---

  • EUR/USD: -0.3% to 1.0544

  • GBP/USD: -0.2% to 1.2130

  • USD/CHF: -0.1% to 0.908

 
 
 

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