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Writer's pictureSimon Charles Hooper

02/03/22 Briefing


The S&P 500 futures are up 2 points and are trading roughly in line with fair value. The Nasdaq 100 futures are up 18 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are down 11 points and are trading slightly below fair value.

Equity futures are mixed and little changed from the flat line. There is not a lot of conviction this morning ahead of the FOMC rate hike decision at 2:00 p.m. ETfollowed by Fed Chair Powell's press conference at 2:30 p.m. ET.

In overseas news, South Korea's CPI increased at its fastest yr/yr pace (+5.7%) since December 2008 in the October reading. China has implemented a 7-day lockdown of the area around the Foxconn iPhone manufacturing plant in Zhengzhou, according to Reuters.

Shipping giant Maersk, seen as a gauge for global trade, beat Q3 expectations but warned of "dark clouds on the horizon" as demand slows, according to CNBC.

The weekly MBA Mortgage Application Index fell 0.5% with purchase applications falling 1.0% and refinancing applications rising 0.2%. Other data to expect today includes:

  • 8:15 ET: October ADP Employment Change (Briefing.comconsensus 198,000; prior 208,000)

  • 10:30 ET: Weekly crude oil inventories (prior +2.59 mln)

In corporate news:

  • CVS Health (CVS 96.90 +2.28 +2.41%): beats by $0.10, beats on revs; guides FY22 EPS in-line; CVS (CVS), Walgreens (WBA), and Walmart (WMT) will pay $13.8 bln to settle opioid claims, according to Reuters

  • Humana (HUM 550.30 -4.19 -0.76%): beats by $0.61, reports revs in-line; reaffirms FY22 EPS guidance

  • Airbnb (ABNB 102.42 -6.63 -6.08%): beats by $0.29, beats on revs; guides Q4 revs in-line, expects Nights and Experiences Booked growth to moderate slightly qtr/qtr

  • Advanced Micro (AMD 62.58 +2.92 +4.89%): misses by $0.03, misses on revs; guides Q4 revs below consensus

  • Rogers Corp (ROG 135.90 -93.59 -40.78%): DuPont terminates deal to acquire Rogers Corp.

  • Match Group (MTCH 50.50 +6.60 +15.03%): reports Q3 (Sep) results, beats on revs; guides Q4 revs below consensus

  • Cirrus Logic (CRUS 72.00 +4.15 +6.12%): beats by $0.55, beats on revs; guides Q3 revs in-line

  • Caesars Entertainment (CZR 47.38 +2.99 +6.74%): beats by $0.08, beats on revs

  • ZoomInfo (ZI 34.28 -9.22 -21.20%): beats by $0.04, beats on revs; guides Q4 EPS in-line, revs in-line; raises FY22 EPS above consensus, revs above consensus

  • Mondelez Int'l (MDLZ 63.30 +1.43 +2.31%): beats by $0.05, beats on revs, raise FY22 outlook

  • Estee Lauder (EL 183.78 -22.98 -11.11%): beats by $0.06, reports revs in-line; guides FY23 revs below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +1.2%, India's Sensex: -0.4%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: +0.1%.

    • In economic data:

      • South Korea's October CPI 0.3% m/m (expected 0.2%; last 0.3%); 5.7% yr/yr (expected 5.6%; last 5.6%)

      • Australia's October AIG Manufacturing Index 49.6 (last 50.2). September Home Loans -9.3% m/m (last -2.7%). September Building Approvals -5.8% m/m (expected -7.0%; last 23.1%) and September Private House Approvals -7.8% m/m (last 4.8%)

      • New Zealand's Q3 Employment Change 1.3% qtr/qtr (expected 0.5%; last 0.0%). Q3 Unemployment Rate 3.3% (expected 3.2%; last 3.3%) and Participation Rate 71.7% (expected 71.0%; last 70.9%). Q3 Labor Cost Index 1.1% qtr/qtr, as expected (last 1.3%); 3.8% yr/yr, as expected (last 3.4%)

    • In news:

      • China's Foreign Ministry refuted yesterday's reports about a Reopening Committee being formed.

      • The Japanese government noted that JPY6.3 trln was spent on interventions in the currency market in October.

      • A Chinese military vessel entered Japan's territorial waters earlier today.

      • Tensions are growing between North and South Korea after DPRK fired at least ten missiles.

      • South Korea's CPI increased at its fastest yr/yr pace since December 2008 in the October reading.

  • Major European indices trade in mixed fashion after October Manufacturing PMI readings from Germany, France, Italy, and Spain fell deeper into contractionary territory. STOXX Europe 600: UNCH, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.2%.

    • In economic data:

      • Eurozone's October Manufacturing PMI 46.4 (expected 46.6; last 48.4)

      • Germany's October Manufacturing PMI 45.1 (expected 45.7; last 47.8). October Unemployment Change 8,000 (expected 15,000; last 13,000) and October Unemployment Rate 5.5%, as expected (last 5.5%). September trade surplus EUR3.7 bln (expected surplus of EUR700 mln; last surplus of EUR1.2 bln). September Imports -2.3% m/m (expected -0.4%; last 4.9%) and Exports -0.5% m/m (expected 0.1%; last 2.9%)

      • France's October Manufacturing PMI 47.2 (expected 47.4; last 47.7). September budget deficit EUR146.60 bln (last deficit of EUR149.90 bln)

      • Italy's October Manufacturing PMI 46.5 (expected 46.9; last 48.3)

      • Spain's October Manufacturing PMI 44.7 (expected 47.5; last 49.0)

    • In news:

      • Russia will reportedly resume its participation in the Black Sea grain deal.

      • European Central Bank policymaker Nagel said that the ECB has a long way to go on rate hikes and that the central bank should begin reducing its bond portfolio at the start of 2023.

      • Shipping giant Maersk beat Q3 expectations but warned that demand for containers is falling.

 

U.S. equity futures:

  • S&P 500 Futures: +5 @ 3,861

  • DJIA Futures: +16 @ 32,669

  • Nasdaq 100 Futures: +29 @ 11,318

Overseas:

  • Europe: DAX UNCH, FTSE -0.4%, CAC -0.1%

  • Asia: Nikkei -0.1%, Hang Seng +0.5%, Shanghai Composite +1.2%

Commodities:

  • Crude Oil +0.15 @ 88.52

  • Nat Gas  +0.326 @ 6.04

  • Gold +8.85 @ 1658.55

  • Silver +0.103  @ 19.77

  • Copper +0.0055 @ 3.478

U.S. Summary:

  • Earnings/Guidance:

    • ACI Worldwide (ACIW) misses by $0.02, misses on revs; guides FY22 revs below consensus

    • Advanced Energy (AEIS) beats by $0.73, beats on revs; guides Q4 EPS in-line, revs above consensus

    • Advanced Micro (AMD) misses by $0.03, misses on revs; guides Q4 revs below consensus

    • Airbnb (ABNB) beats by $0.29, beats on revs; guides Q4 revs in-line, expects Nights and Experiences Booked growth to moderate slightly qtr/qtr

    • Alteryx (AYX) beats by $0.05, beats on revs; guides Q4 EPS above consensus, revs above consensus

    • Ameresco (AMRC) misses by $0.15, beats on revs; reaffirms FY22 EPS guidance, revs guidance

    • American Intl (AIG) beats by $0.14, beats on revs

    • Amcor (AMCR) reports Q1 earnings in-line, beats on revs; reaffirms FY23 (Jun) adjusted EPS growth on a comparable constant currency basis

    • Andersons (ANDE) beats by $0.13, beats on revs

    • Artisan Partners Asset Mgmt (APAM) beats by $0.01, beats on revs

    • AssetMark (AMK) beats by $0.06, beats on revs

    • Assurant (AIZ) beats by $0.01, misses on revs

    • Astec Industries (ASTE) misses by $0.03, beats on revs

    • AtriCure (ATRC) misses by $0.01, beats on revs; guides FY22 EPS in-line, revs in-line

    • Avanos Medical (AVNS) beats by $0.03, misses on revs; reaffirms FY22 EPS guidance, revs guidance

    • AvidXchange (AVDX) reports Q3 (Sep) results, beats on revs; raises FY22 revs above consensus

    • B2Gold (BTG) misses by $0.03, misses on revs, reaffirms 2022 production guidance

    • Bandwidth (BAND) beats by $0.24, beats on revs; guides Q4 EPS in-line, revs above consensus

    • Bausch + Lomb (BLCO) beats by $0.08, reports revs in-line; guides FY22 revs below consensus

    • Belden (BDC) beats by $0.20, beats on revs; guides Q4 EPS above consensus, revs above consensus; reaffirms target of at least $8.00 of adjusted EPS by 2025

    • Big 5 Sports (BGFV) beats by $0.02, beats on revs, comps of -9.8%; guides Q4 EPS below estimate, expects comps to decline in the high single-digit to low double-digit range

    • Blackbaud (BLKB) beats by $0.09, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

    • Bright Horizons (BFAM) beats by $0.02, beats on revs; guides FY22 EPS above consensus, revs in-line

    • Brixmor Property (BRX) reports FFO in-line, beats on revs; guides FY22 FFO in-line

    • Broadridge Financial (BR) misses by $0.04, beats on revs; reaffirms FY23 EPS guidance, reaffirms FY23 recurring revenue growth CC

    • Caesars Entertainment (CZR) beats by $0.08, beats on revs

    • Camping World (CWH) misses by $0.31, beats on revs, used vehicle comps +2.0%, new vehicle comps -7.2%; gross margins fell 408 bps yr/yr

    • Canada Goose (GOOS) beats by $0.17, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus

    • Cardlytics (CDLX) misses by $0.05, misses on revs; guides Q4 revs below consensus

    • CDW (CDW) beats by $0.08, reports revs in-line

    • Charles River (CRL) beats by $0.13, beats on revs; guides FY22 EPS above consensus, revs mostly above consensus

    • Cheesecake Factory (CAKE) misses by $0.33, misses on revs, comps of +1.1%; continued to face inflationary pressures in Q3, also increases share buyback authorization by 5 mln shares; guides FY22 total sales in-line with consensus

    • Chegg (CHGG) beats by $1.09, beats on revs; guides Q4 revs below consensus

    • C.H. Robinson (CHRW) misses by $0.39, misses on revs

    • Cirrus Logic (CRUS) beats by $0.55, beats on revs; guides Q3 revs in-line

    • Clean Harbors (CLH) beats by $0.37, beats on revs

    • Clorox (CLX) beats by $0.15, beats on revs; guides FY23 EPS in-line

    • Comstock (CRK) beats by $0.01, beats on revs

    • Conduent (CNDT) beats by $0.01, reports revs in-line; reaffirms FY22 revs guidance

    • Credit Acceptance Corp. (CACC) beats by $0.43, reports revs in-line

    • CRISPR Therapeutics (CRSP) reports Q3 results, provides clinical update

    • CVS Health (CVS) beats by $0.10, beats on revs; guides FY22 EPS in-line

    • Denny's (DENN) misses by $0.02, beats on revs; Q3 comps 1.5%; provides Q4 guidance

    • Devon Energy (DVN) beats by $0.75, beats on revs; trims dividend

    • Dine Brands (DIN) beats by $0.36, beats on revs

    • DISH Network (DISH) beats by $0.07, misses on revs

    • Dynatrace (DT) beats by $0.04, beats on revs; guides Q3 EPS in-line, revs below consensus

    • Edison (EIX) reports EPS in-line, beats on revs; narrows FY22 EPS guidance

    • Electronic Arts (EA) beats by $0.07, misses on revs; raises FY23 EPS guidance, still below consensus; lowers FY23 revenue guidance below consensus

    • Enhabit Inc. (EHAB) misses by $0.10, reports revs in-line; guides FY22 EPS below consensus, revs below consensus

    • Enovis Corporation (ENOV) beats by $0.11, reports revs in-line; guides FY22 EPS below consensus

    • Estee Lauder (EL) beats by $0.06, reports revs in-line; guides FY23 revs below consensus

    • Exelixis (EXEL) beats by $0.12, beats on revs; narrows FY22 revs in-line

    • Extra Space Storage (EXR) beats by $0.02, beats on revs; guides FY22 FFO below consensus

    • FMC Corp (FMC) beats by $0.12, beats on revs; guides Q4 EPS in-line, revs in-line

    • Fresh Del Monte (FDP) beats by $0.44, beats on revs

    • Freshworks (FRSH) beats by $0.04, beats on revs; guides FY22 EPS above consensus, revs in-line

    • Frontier Communications Parent (FYBR) beats by $0.30, reports revs in-line

    • Generac (GNRC) beats by $0.11, reports revs in-line; reaffirms FY22 revs in-line

    • Gentherm (THRM) beats by $0.17, beats on revs

    • GlaxoSmithKline (GSK) beats by GBP0.08, beats on revs; raises outlook

    • H & R Block (HRB) beats by $0.10, reports revs in-line; reaffirms FY23 EPS in-line, revs in-line

    • Hanover Insurance (THG) beats by $0.05, misses on revs

    • Healthpeak (PEAK) reports FFO in-line, beats on revs; guides FY22 FFO in-line

    • Horizon Pharma (HZNP) beats by $0.24, beats on revs; guides FY22 revs above consensus

    • Humana (HUM) beats by $0.61, reports revs in-line; reaffirms FY22 EPS guidance

    • Huron Consulting (HURN) beats by $0.02, beats on revs; guides FY22 EPS in-line, revs above consensus

    • Inspire Medical Systems (INSP) beats by $0.19, beats on revs; guides FY22 revs above consensus

    • Instructure (INST) beats by $0.04, beats on revs; guides Q4 revs above consensus

    • iRhythm (IRTC) beats by $0.18, misses on revs; cuts FY22 revs guidance

    • James River Group (JRVR) misses by $0.04, reports revs in-line

    • Jones Lang LaSalle (JLL) reports Q3 (Sep) results, beats on revs

    • Kadant (KAI) beats by $0.25, beats on revs; guides Q4 revs below consensus; guides FY22 EPS below consensus, revs below consensus

    • KAR Auction Services (KAR) misses by $0.08, misses on revs

    • Liberty Global (LBTYA) reports Q3 (Sep) revs narrowly above expectations; reconfirms FY22 targets

    • Littelfuse (LFUS) beats by $0.49, beats on revs; guides Q4 EPS below consensus, revs below consensus; announces dividend payment

    • Livent (LTHM) beats by $0.02, misses on revs; narrows FY22 guidance

    • LL Flooring Holdings (LL) misses by $0.40, misses on revs

    • LSB Industries (LXU) beats by $0.09, beats on revs

    • Magnolia Oil & Gas (MGY) beats by $0.16, beats on revs

    • Martin Marietta (MLM) beats by $0.06, beats on revs

    • Match Group (MTCH) reports Q3 (Sep) results, beats on revs; guides Q4 revs below consensus

    • Materion (MTRN) misses by $0.13, misses on revs; lowers FY22 EPS below consensus

    • McKesson (MCK) misses by $0.03, reports revs in-line; guides FY23 EPS above consensus

    • Mercury (MRCY) beats by $0.03, beats on revs; guides Q2 (Dec) EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

    • MicroStrategy (MSTR) misses by $1.98, reports revs in-line

    • Mirion Technologies (MIR) misses by $0.03, reports revs in-line; lowers FY22 EPS outlook

    • Mondelez Int'l (MDLZ) beats by $0.05, beats on revs, raise FY22 outlook

    • New York Times (NYT) beats by $0.08, reports revs in-line

    • NMI Hldgs (NMIH) beats by $0.09, misses on revs

    • ODP Corporation (ODP) misses by $0.24, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

    • O-I Glass (OI) beats by $0.02, beats on revs; guides Q4 EPS in-line

    • ONEOK (OKE) beats by $0.01, misses on revs; expects FY23 adjusted EBITDA to increase 10% yr/yr

    • OneSpan (OSPN) beats by $0.14, beats on revs

    • Owens & Minor (OMI) beats by $0.02, beats on revs; reaffirms FY22 EPS guidance, narrows FY22 revs in-line

    • Paramount Global (PARA) misses by $0.05, misses on revs; Paramount+ added 4.6 mln subscribers

    • Parsons (PSN) misses by $0.03, beats on revs; raises FY22 revs mostly above consensus

    • Paycom Software (PAYC) beats by $0.09, beats on revs; guides Q4 revs above consensus; guides FY22 revs above consensus

    • ProPetro (PUMP) misses by $0.24, misses on revs

    • PROS Holdings (PRO) beats by $0.11, beats on revs; guides Q4 EPS in-line, revs in-line

    • Public Storage (PSA) beats by $0.62, misses on revs

    • Resideo (REZI) misses by $0.18, misses on revs; lowers FY22 revs outlook

    • Rockwell Automation (ROK) beats by $0.06, reports revs in-line; guides FY23 EPS in-line, revs above consensus

    • Scotts Miracle-Gro (SMG) misses by $0.05, misses on revs; guides for FY23adj. operating income growth of low single-digits

    • SeaSpine (SPNE) misses by $0.10, beats on revs; guides FY22revs in-line

    • Service Corp (SCI) beats by $0.17, beats on revs; raises FY22EPS above consensus

    • Silicon Motion (SIMO) misses by $0.45, misses on revs; PC and smartphone markets remain challenged; expects overall sales to remain flat as it approaches the end of the year

    • Sinclair Broadcast (SBGI) misses on EPS and revs; guides Q4 revs below consensus

    • SiteOne Landscape Supply (SITE) beats by $0.05, beats on revs

    • Sixth Street Specialty Lending (TSLX) misses by $0.02, beats on revs; increases quarterly dividend by 7%

    • Skyline Champion (SKY) beats by $0.63, beats on revs

    • Sotera Health (SHC) beats by $0.01, reports revs in-line; guides FY22EPS below consensus, revs below consensus

    • SpartanNash (SPTN) issues upside revenue guidance for Q3 and FY22

    • Steven Madden (SHOO) beats by $0.01, beats on revs; guides FY22EPS below consensus

    • Sun Country Airlines (SNCY) beats by $0.08, beats on revs; guides Q4 revs in-line

    • Super Micro Computer (SMCI) beats by $0.60, beats on revs; guides Q2 EPS, revs above consensus; guides FY23EPS, revs above consensus

    • TE Connectivity (TEL) beats by $0.01, beats on revs; guides Q1 revs below consensus

    • Trane (TT) beats by $0.15, beats on revs

    • Tupperware (TUP) misses by $0.28, misses on revs

    • Univar Solutions (UNVR) beats by $0.08, beats on revs

    • Unum Group (UNM) beats by $0.10, reports revs in-line; reaffirms FY22after-tax adjusted operating income per share growth

    • Verisk Analytics (VRSK) misses by $0.01, misses on revs

    • ViewRay (VRAY) reports EPS in-line, beats on revs; guides FY22revs in-line

    • Vulcan Materials (VMC) beats by $0.07, beats on revs

    • Western Union (WU) reports EPS in-line, revs in-line; reaffirms FY22EPS guidance, revs guidance

    • Xenia Hotels (XHR) misses by $0.04, misses on revs; guides FY22FFO below consensus

    • Yum! Brands (YUM) misses by $0.06, beats on revs

    • Yum China (YUMC) beats by $0.19, reports revs in-line; comps were flat, with flat growth at KFC and +2% growth at Pizza Hut, excluding FX

    • Zeta Global (ZETA) reports Q3 (Sep) results, beats on revs; guides Q4 revs in-line

    • Zimmer Biomet (ZBH) beats by $0.02, beats on revs; guides FY22EPS above consensus, revs above consensus

    • ZoomInfo (ZI) beats by $0.04, beats on revs; guides Q4 EPS in-line, revs in-line; raises FY22EPS above consensus, revs above consensus

  • News:

    • Benjamin Netanyahu's right wing alliance holds slight lead in Israel election, according to the New York Times

    • US intelligence shows that Russian military leaders recently discussed possibility of using a tactical nuclear weapon in Ukraine, according to the New York Times

    • China to keep coal price cap in place, according to Bloomberg

    • Russia will rejoin Ukraine grain export deal, CNBC

    • Alkermes (ALKS) announces approval to explore separating commercial-stage neuroscience business and development-stage oncology business

    • Arbutus Biopharma (ABUS) announced data from i) two separate clinical trials evaluating its RNAi therapeutic, AB-729 and a preclinical study of its oral PD-L1 inhibitor, AB-101

    • BeiGene (BGNE) announces that the European Commission has granted marketing authorization of BRUKINSA for the treatment of adult patients with relapsed/refractory marginal zone lymphoma who have received at least one prior anti-CD20-based therapy

    • CDW (CDW) increases quarterly cash dividend to $0.59/share from $0.50/share

    • Comstock's (CRK) Board approved the reinstatement of a quarterly dividend at an annual dividend rate of $0.50 per share

    • Credit Suisse (CS): Qatar Investment Authority aiming to increase stake in Credit Suisse, according to Financial Times

    • CVS Health (CVS) has agreed in principle to a financial resolution designed to substantially resolve all opioid lawsuits and claims against the company by states, political subdivisions, such as counties and cities, and tribes in the United States

    • CVS (CVS), Walgreens (WBA), and Walmart (WMT) will pay $13.8 bln to settle opioid claims, according to Reuters

    • Emergent BioSolutions (EBS) announced results from a Phase 2 study evaluating its single dose chikungunya virus virus-like particle (CHIKV VLP) vaccine candidate in prior recipients of other investigational alphavirus vaccines

    • Enact Holdings (ACT) declared a special cash dividend of $1.12/share and authorized a $75 million share repurchase program

    • Enovix (ENVX) has signed a non-binding Memorandum of Understanding with one of the largest consumer electronics companies in the world

    • Estee Lauder (EL) increases quarterly dividend to $0.66/share from $0.60/share

    • Exelixis (EXEL) enters a clinical development and option agreement for ADU-1805

    • Foxconn (HNHPF): China orders 7 day lockdown for area around Foxconn plant that makes Apple (AAPL) iPhones, according to Bloomberg

    • Freshpet (FRPT) announces that Todd Cunfer has been named Chief Financial Officer, effective December 1, 2022

    • G1 Therapeutics (GTHX) describes safety data from the first 18 patients enrolled in its ongoing Phase 2, single arm study of trilaciclib administered prior to the antibody-drug conjugate, sacituzumab govitecan-hziy in patients with unresectable locally advanced or metastatic triple-negative breast cancer

    • Gilead Sciences (GILD): FDA approves sNDA for Vemlidy for the treatment of chronic hepatitis B virus

    • LiveVox (LVOX) announces that John DiLullo has been named Chief Executive Officer of the Company, effective immediately

    • loanDepot (LDI) amends and restates master repurchase agreement with Jefferies Funding

    • Lockheed Martin (LMT) awarded $581 mln U.S. Navy contract

    • Mammoth Energy Services (TUSK) announces that its subsidiaries, Piranha Proppant and Taylor Frac, have entered into two sand supply agreements with third-party service providers with terms of 12 months and 21 months, respectively, beginning on January 1, 2023

    • NN Inc (NNBR) Board has implemented a management transition plan to address CEO retirement; Board has engaged an outside search firm to look for next CEO

    • Pan Am Silver (PAAS) expands high-grade silver zone at the La Colorada Skarn project to now span approximately 200m in diameter and up to 250m vertically

    • Perrigo (PRGO) announced a $170 million strategic investment to expand and strengthen its U.S. infant formula manufacturing

    • ProPetro (PUMP) acquired Silvertip Completion Services Operating, a provider of wireline perforating and pumpdown services solely in the Permian Basin, for $150 mln in cash and stock

    • Rocket Lab USA (RKLB) confirms that it will attempt to catch an Electron rocket with a helicopter as it returns to Earth from space during the Company's next launch

    • Rhythm Pharmaceuticals (RYTM) announces "positive" Phase 2 results and long-term extension trial data in hypothalamic obesity that are being presented today as a late-breaking poster at The Obesity Society's ObesityWeek

    • Sprouts Farmers Market (SFM) expands partnership with DoorDash (DASH)

    • Tesla (TSLA) closes first showroom in China, according to Reuters

    • Twitter (TWTR): Elon Musk wants to charge $8/month for verified Twitter accounts, according to the Wall Street Journal

    • Wallbox (WBX) and Uber (UBER) extend partnership to additional European countries

  • M&A:

    • Albertsons (ACI): Washington State AG Ferguson files lawsuit to block Albertsons from paying $4 billion to shareholders before merger with Kroger (KR) can be reviewed

    • Benefitfocus (BNFT) to be acquired by Voya Financial (VOYA) at $10.50/share or ~$570 mln

    • DuPont (DD) terminates deal to acquire Rogers Corp

    • Kingsway Fin (KFS) acquires CSuite Financial Partners for $8.5 mln

    • Quanex (NX) acquires LMI Custom Mixing for $92 mln

    • Ryder System (R) has acquired Dotcom Distribution; financial terms not disclosed

    • Select Energy Services (WTTR) announced the acquisitions of Breakwater and certain water gathering pipeline and disposal assets from Cypress; reports Q3 results

    • SPX Corp (SPXC) divested three wholly-owned subsidiaries that hold asbestos liabilities and certain assets, including related insurance assets, to Canvas Holdco

  • Syndicate: 

    • Aura Biosciences (AURA) files $250 mln mixed securities shelf offering

    • Brixmor Property (BRX) files mixed securities shelf offering

    • Penske Auto (PAG) files mixed securities shelf offering

  • IPOs:

    • Expect to Price: No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • BNFT +47.1%, ARCT +29.3%, OSPN +25%, QUAD+20.4%, CHGG +18.9%, BAND +16.9%, MTCH +15.1%, YUMC +12.3%, EDAP +11.3%, SCI +7.8%, SMCI+7.2%, CRK +7%, CZR +6.9%, CRUS +6.1%, TRQ+5.9%, NVO +5.6%, DD +5.1%, SPXC +5%, BRX +5%, BMBL +4.8%, UNVR +4.8%, AEIS +4.7%, FRSH+4.7%, AMD +4.4%, LIAN +4.2%, ATEN +4.1%, ZETA+3.9%, AROC +3.8%, CRSP +3.6%, FCPT +3.6%, INSP+3.5%, VRAY +3.4%, ABUS +3.3%, OI +3.3%, MDLZ+3.3%, UNM +3%, INTU +2.7%, PRGO +2.5%, MGY+2.5%, GSK +2.3%, NNBR +2.2%, AYX +1.9%, NMR+1.5%, PEAK +1.3%, GNRC +1.3%, EBS +1.1%, EXPI+1%, RIO +0.9%, CLX +0.9%

  • Gapping down:

    • ROG -40.8%, ZI -20.5%, ENVX -10.2%, CAKE -7.4%, IRTC -7.3%, CDLX -7.1%, CNDT -6.3%, FRPT -6.1%, ABNB -5.9%, EHAB -5.9%, PRO -5%, MIR -5%, PUMP -4.7%, CACC -4.6%, CWH -4.2%, LTHM -4.2%, BGFV -3.9%, SIMO -3.7%, VRSK -3.6%, LFUS -3%, DVN -2.9%, DENN -2.7%, SITE -2.7%, AIG -2.6%, NMIH -2.4%, PRU -2.4%, ATCO -2.4%, GTE -2.1%, AUDC -1.9%, FUN -1.9%, FDP -1.9%, MCK -1.7%, TSLX -1.6%, REZI -1.2%, ANDE -1%, EA -1%, UTHR-1%, HRB -0.9%

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Red Electrica (RDEIY) upgraded to Hold from Sell at Berenberg

  • Downgrades:

    • Abiomed (ABMD) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $388

    • Bally's Corporation (BALY) downgraded to Hold from Buy at Stifel; tgt lowered to $25

    • British American Tobacco (BTI) downgraded to Neutral from Buy at Goldman

    • Cleveland-Cliffs (CLF) downgraded to Underperform from Peer Perform at Wolfe Research; tgt $12

    • Ecolab (ECL) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $135

    • NASDAQ (NDAQ) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $57

    • Semler Scientific (SMLR) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $45

    • Universal Logistics (ULH) downgraded to Hold from Buy at Stifel; tgt $36

  • Others:

    • Aeva (AEVA) initiated with a Hold at WestPark Capital; tgt $3

    • AEye (LIDR) initiated with a Hold at WestPark Capital; tgt $1

    • Canopy Growth (CGC) initiated with an Underperform at Bernstein; tgt $1.50

    • Check Point Software (CHKP) initiated with a Neutral at Macquarie; tgt $129

    • Cloudflare (NET) initiated with a Neutral at Macquarie; tgt $60

    • CrowdStrike (CRWD) initiated with an Outperform at Macquarie; tgt $220

    • Datadog (DDOG) initiated with a Neutral at Macquarie; tgt $85

    • Dynatrace (DT) initiated with a Neutral at Macquarie; tgt $38

    • HubSpot (HUBS) initiated with an Outperform at Macquarie; tgt $355

    • Innoviz Technologies (INVZ) initiated with a Buy at WestPark Capital; tgt $12

    • Legend Biotech (LEGN) initiated with an Outperform at Evercore ISI

    • Lineage Cell Therapeutics (LCTX) initiated with an Outperform at Robert W. Baird; tgt $5

    • Luminar Technologies (LAZR) initiated with a Buy at WestPark Capital; tgt $14

    • Microsoft (MSFT) initiated with a Neutral at Macquarie; tgt $234

    • nCino (NCNO) assumed with an Outperform at Macquarie; tgt $42

    • Okta (OKTA) initiated with a Neutral at Macquarie; tgt $60

    • Ouster (OUST) initiated with a Buy at WestPark Capital; tgt $4

    • Palo Alto Networks (PANW) initiated with a Neutral at Macquarie; tgt $185

    • Salesforce (CRM) assumed with an Outperform at Macquarie; tgt $210

    • ServiceNow (NOW) assumed with an Outperform at Macquarie; tgt $500

    • Snowflake (SNOW) initiated with a Neutral at Macquarie; tgt $173

    • Sorrento Therapeutics (SRNE) initiated with an Overweight at Cantor Fitzgerald; tgt $5

    • Velodyne Lidar (VLDR) initiated with an Underperform at WestPark Capital

    • Workday (WDAY) initiated with a Neutral at Macquarie; tgt $170

    • Zscaler (ZS) initiated with a Neutral at Macquarie; tgt $155

Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for Oct. 29 (Briefing.comConsensus NA; Prior 1.7%)

    • 08:15 ET: ADP Employment Change for Oct (Briefing.comConsensus 198K; Prior 208K)

    • 10:30 ET: EIA Crude Oil Inventories for Oct. 29 (Briefing.comConsensus NA; Prior +2.59M)

    • 14:00 ET: FOMC Rate Decision for November (Briefing.comConsensus 3.75-4.00%; Prior 3.00-3.25%)

  • 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 -0.1%, Hang Seng +0.5%, Shanghai Composite +1.2%

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. China's Foreign Ministry refuted yesterday's reports about a Reopening Committee being formed. The Japanese government noted that JPY6.3 trln was spent on interventions in the currency market in October. A Chinese military vessel entered Japan's territorial waters earlier today. Tensions are growing between North and South Korea after DPRK fired at least ten missiles. South Korea's CPI increased at its fastest yr/yr pace since December 2008 in the October reading.

  • In economic data:

    • South Korea's October CPI 0.3% m/m (expected 0.2%; last 0.3%); 5.7% yr/yr (expected 5.6%; last 5.6%)

    • Australia's October AIG Manufacturing Index 49.6 (last 50.2). September Home Loans -9.3% m/m (last -2.7%). September Building Approvals -5.8% m/m (expected -7.0%; last 23.1%) and September Private House Approvals -7.8% m/m (last 4.8%)

    • New Zealand's Q3 Employment Change 1.3% qtr/qtr (expected 0.5%; last 0.0%). Q3 Unemployment Rate 3.3% (expected 3.2%; last 3.3%) and Participation Rate 71.7% (expected 71.0%; last 70.9%). Q3 Labor Cost Index 1.1% qtr/qtr, as expected (last 1.3%); 3.8% yr/yr, as expected (last 3.4%)

---Equity Markets---

  • Japan's Nikkei: -0.1%

  • Hong Kong's Hang Seng: +0.5%

  • China's Shanghai Composite: +1.2%

  • India's Sensex: -0.4%

  • South Korea's Kospi: +0.1%

  • Australia's ASX All Ordinaries: +0.1%

---FX---

  • USD/JPY: -0.8% to 147.06

  • USD/CNH: -0.1% to 7.2982

  • USD/INR: +0.1% to 82.72

Europe: DAX UNCH, FTSE -0.4%, CAC -0.1%

Major European indices trade in mixed fashion after October Manufacturing PMI readings from Germany, France, Italy, and Spain fell deeper into contractionary territory. Russia will reportedly resume its participation in the Black Sea grain deal. European Central Bank policymaker Nagel said that the ECB has a long way to go on rate hikes and that the central bank should begin reducing its bond portfolio at the start of 2023. Shipping giant Maersk beat Q3 expectations but warned that demand for containers is falling.

  • In economic data:

    • Eurozone's October Manufacturing PMI 46.4 (expected 46.6; last 48.4)

    • Germany's October Manufacturing PMI 45.1 (expected 45.7; last 47.8). October Unemployment Change 8,000 (expected 15,000; last 13,000) and October Unemployment Rate 5.5%, as expected (last 5.5%). September trade surplus EUR3.7 bln (expected surplus of EUR700 mln; last surplus of EUR1.2 bln). September Imports -2.3% m/m (expected -0.4%; last 4.9%) and Exports -0.5% m/m (expected 0.1%; last 2.9%)

    • France's October Manufacturing PMI 47.2 (expected 47.4; last 47.7). September budget deficit EUR146.60 bln (last deficit of EUR149.90 bln)

    • Italy's October Manufacturing PMI 46.5 (expected 46.9; last 48.3)

    • Spain's October Manufacturing PMI 44.7 (expected 47.5; last 49.0)

---Equity Markets---

  • STOXX Europe 600: UNCH

  • Germany's DAX: UNCH

  • U.K.'s FTSE 100: -0.4%

  • France's CAC 40: -0.1%

  • Italy's FTSE MIB: +0.2%

  • Spain's IBEX 35: -0.2%

---FX---

  • EUR/USD: +0.2% to 0.9895

  • GBP/USD: +0.2% to 1.1505

  • USD/CHF: -0.2% to 0.9966


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