The S&P 500 futures are up eight points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 30 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 44 points and are trading 0.1% above fair value.
The stock market is poised for a higher open after modest losses to start the week. The tone could shift following the release of this morning's economic data.
The November ADP Employment Change will be released at 8:15 ET and the revised Q3 productivity and unit labor costs will be released at 8:30 ET.
Other data today included the weekly MBA Mortgage Applications Index, which jumped 2.8% with refinance applications surging 14% while purchase applications declined 0.3%.
The 2-yr note yield is up six basis points to 4.60% and the 10-yr note yield is unchanged from yesterday at 4.18%.
WTI crude oil futures are below $72.00/bbl, down 0.8% to $71.73.bbl.
In other news, cryptocurrency prices continue to climb. Bitcoin is at $44,074.
In corporate news:
Mastercard (MA 411.50, +2.81, +0.7%): increases quarterly cash dividend to $0.66/share from $0.57/share and approves new $11 billion share repurchase program
Old Dominion (ODFL reports November less-than-truckload operating metrics; revs/day fell 0.9% yr/yr
Toll Brothers (TOL 88.90, +1.69, +1.9%): beats by $0.39, beats on revs, guides for Q1 deliveries of 1,800-1,900 units, FY24 deliveries of 9,850-10,350 units
Amazon (AMZN 146.98, +0.10, +0.1%): aiming to lower fees for merchants selling clothing priced below $20, according to Bloomberg
MongoDB (MDB 411.50, -21.69, -5.0%): beats by $0.45, beats on revs; guides Q4 EPS above consensus, revs above consensus
Box (BOX 23.11, -3.58, -13.4%): misses by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
Campbell Soup (CPB 41.00, +0.63, +1.6%): beats by $0.04, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
SentinelOne (S 23.30, +3.30, +16.5%): beats by $0.05, beats on revs; guides Q4 revs above consensus; guides FY24 revs above consensus
Yext (YEXT 5.90, -1.11, -15.8%): beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus
Dave & Buster's (PLAY 41.25, -0.67, -1.6%): beats by $0.16, misses on revs
Avis Budget (CAR 192.99, +9.02, +4.9%): declares special dividend of $10.00 per share
Phreesia (PHR 16.90, +2.15, +14.6%): beats by $0.10, beats on revs; reaffirms FY24 revs guidance; guides FY25 revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +2.0%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: -0.1%, India's Sensex: +0.5%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +1.6%.
In economic data:
Japan's December Reuters Tankan Index 12 (last 6)
Australia's November AIG Construction Index -22.2 (last 18.5) and AIG Manufacturing Index -25.3 (last -20.9). Q3 GDP 0.2% qtr/qtr (expected 0.4%; last 0.4%); 2.1% yr/yr (expected 1.8%; last 2.0%)
In news:
China's National Development and Reform Commission will set up a coal production reserve system by 2027.
China's Ministry of Finance expects that the country's economy will maintain a positive trend in Q4.
Japan is considering providing a JPY50,000 payment for each child to low-income families.
Standard & Poor's and Fitch did not make any changes to China's sovereign rating despite Moody's lowering the country's outlook to Negative from Stable yesterday.
Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.1%.
In economic data:
Eurozone's October Retail Sales 0.1% m/m (expected 0.2%; last -0.1%); -1.2% yr/yr (expected -1.1%; last -2.9%)
Germany's October Factory Orders -3.7% m/m (expected 0.2%; last 0.7%)
In news:
Travel agency TUI expects that bookings during the winter season will be up strongly yr/yr while the International Air Transport Association chief made positive comments about expectations for the airline industry in 2024.
Finance Ministers in the EU are reportedly looking at implementing debt reduction targets.
European Central Bank policymaker Kazaks said that he does not see the need for rate cuts in the first half of 2024, but he is open to changing that view.
U.S. equity futures:
S&P 500 Futures +11 @ 4,578
DJIA Futures: +55 @ 36,180
Nasdaq 100 Futures: +35 @ 15,913
Overseas:
Europe: DAX +0.3%, FTSE +0.5%, CAC +0.5%
Asia: Nikkei +2.0%, Hang Seng +0.8%, Shanghai Composite -0.1%
Commodities:
Crude Oil -0.60 @ 71.72
Nat Gas +0.016 @ 2.726
Gold +7.05 @ 2043.35
Silver -0.049 @ 24.497
Copper +0.0258 @ 3.8098
Earnings/Guidance:
AeroVironment ( AVAV 0.00% ) beats by $0.35, beats on revs; guides FY24 EPS below consensus, revs above consensus
Asana ( ASAN â–´ 2.19% ) beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus
Box ( BOX â–´ 0.72% ) misses by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
British American Tobacco ( BTI â–¾ 1.22% ) reaffirms FY23 outlook
Campbell Soup ( CPB â–¾ 1.56% ) beats by $0.04, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
Dave & Buster's ( PLAY 0.00% ) beats by $0.16, misses on revs
Delta Air Lines ( DAL â–¾ 1.44% ) reaffirms Q4 guidance
Descartes ( DSGX 0.00% ) misses by $0.03, reports revs in-line
Exxon Mobil ( XOM 0.00% ) provides update to to its Corporate Plan through 2027; On track to deliver ~$14 billion of further earnings and cash flow growth potential over the next four years
HealthEquity ( HQY 0.00% ) beats by $0.10, beats on revs; guides FY24 EPS above consensus, revs in-line; guides FY25 revs above consensus
InMode ( INMD 0.00% ) lowers FY23 guidance
Korn/Ferry ( KFY â–¾ 1.71% ) beats by $0.02, beats on revs
LGI Homes ( LGIH 0.00% ) announces it closed 522 homes in Nov, up 26.7% yr/yr
Lovesac ( LOVE 0.00% ) beats by $0.15, reports revs in-line; guides Q4 EPS in-line, revs in-line
MongoDB ( MDB 0.00% ) beats by $0.45, beats on revs; guides Q4 EPS above consensus, revs above consensus
Old Dominion ( ODFL 0.00% ) reports November less-than-truckload operating metrics; revs/day fell 0.9% yr/yr
Ollie's Bargain Outlet ( OLLI 0.00% ) beats by $0.06, beats on revs, comps +7.0%; guides FY24 EPS above consensus, revs above consensus
Phreesia ( PHR â–¾ 2.83% ) beats by $0.10, beats on revs; reaffirms FY24 revs guidance; guides FY25 revs below consensus
SentinelOne ( S â–¾ 1.19% ) beats by $0.05, beats on revs; guides Q4 revs above consensus; guides FY24 revs above consensus
Stitch Fix ( SFIX 0.00% ) misses by $0.05, reports revs in-line; guides Q2 revs in-line; reaffirms FY24 revs guidance
Suncor Energy ( SU â–¾ 1.72% ) announces 2024 corporate guidance
Thor Industries ( THO â–¾ 2.51% ) beats by $0.03, reports revs in-line; guides FY24 EPS in-line, revs in-line
Toll Brothers ( TOL 0.00% ) beats by $0.39, beats on revs, guides for Q1 deliveries of 1,800-1,900 units, FY24 deliveries of 9,850-10,350 units
United Micro ( UMC â–¾ 1.53% ) reports November revs declined 16.7% yr/yr to NT$18.79 bln
United Natural Foods ( UNFI â–´ 0.68% ) beats by $0.28, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
Yext ( YEXT â–¾ 0.43% ) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus
News:
President Biden told donors he wasn't confident he'd be seeking another term if Donald Trump wasn't running, according to CNN
Senate Republicans are expected to vote against bill for Ukraine and Israel funding today because it doesn't include changes to southern border security policy, according to the New York Times
Accenture ( ACN â–¾ 0.18% ) nominates Dr. Martin Brudermller, CEO and Chairman of the Board of Executive Directors of BASF (BASFY), to Join its Board of Directors
Amazon ( AMZN 0.00% ) aiming to lower fees for merchants selling clothing priced below $20, according to Bloomberg
AMD ( AMD 0.00% ) to ship 400K new AI GPUs next year, according to Digitimes
Apple ( AAPL 0.00% ) wants iPhone batteries made in China, according to Financial Times
Aspen Aerogels ( ASPN â–¾ 2.02% ) announces a commercial award for its PyroThin EV Thermal Barrier segment; provides update on its U.S. Dept of Energy loan application status
Avis Budget ( CAR 0.00% ) declares special dividend of $10.00 per share
AxoGen ( AXGN 0.00% announces the appointment of Mr. Nir Naor as Chief Financial Officer, effective immediately
Bank of N.T. Butterfield & Son ( NTB â–¾ 1.76% ) approves a $90 mln ordinary share repurchase program through December 31, 2024
Baytex Energy Trust ( BTE â–¾ 4.40% ) announces that its Board of Directors has approved a budget for 2024 exploration and development expenditures of $1.2 to $1.3 billion, which is designed to generate average annual production of 150,000 to 156,000 boe/d
Bit Digital ( BTBT 0.00% ) reports monthly production update for November
BYD Company ( BYDDY ) and the Latin American Energy Organization announce that an Interinstitutional Cooperation Agreement was formalized recently, with the aim of advancing the cause of electric mobility in Latin America and the Caribbean
Canadian Solar's ( CSIQ 0.00% ) majority-owned e-STORAGE will deliver 226 MWh DC of turnkey energy storage solutions to ENGIE in the UK
Cboe Global Markets ( CBOE â–´ 0.10% ) reports November monthly trading volume statistics
Check Point Software ( CHKP 0.00% ) voluntarily provided the SEC info related to its experience with the 2020 SolarWinds hack
CME Group ( CME 0.00% ) to launch FX Spot+ to connect OTC and futures liquidity
Coca-Cola Consolidated ( COKE 0.00% ) declares a special dividend of $16.00/share payable on February 9, 2024 to stockholders of record as of the close of business on January 26, 2024
Coherus ( CHRS 0.00% ) Presents Phase 1/2 Clinical Data on Casdozokitug, a First-in-Class IL-27-Targeted Antibody, at the 2023 ESMO Immuno-Oncology Congress
Danaher ( DHR â–¾ 1.21% ) decreases quarterly cash dividend to $0.24/share from $0.27/share
First Financial ( FFBC 0.00% ) authorizes purchase of up to 5.0 mln shares of its common stock, representing approximately 5% of its outstanding shares of common stock
GM's Cruse ( GM â–¾ 1.18% ) exec says autonomous unit has "hit all time low", according to Reuters
Gold Royalty ( GROY â–¾ 2.56% ) announces $31 million royalty and gold-linked loan investment in Aura's Borborema project, financed by $40 million strategic convertible debenture financing with Queen's Road Capital and Taurus Funds Management
Grupo Aeroportuario del Pacifico ( PAC â–´ 0.07% ) reports November traffic increased 0.7% yr/yr
IGM Biosciences ( IGMS 0.00% ) to cut its workforce by approximately 22%, extends cash runway into 2Q26; announces strategic pipeline prioritization
IGM Biosciences ( IGMS 0.00% ): Medivir's partner IGM Biosciences announces strategic pipeline prioritization to extend its cash runway
Incannex ( IXHL 0.00% ) provides update on IHL-42X Drug Candidate in Phase 2/3 Clinical Trial in Obstructive Sleep Apnea
Iris Energy ( IREN 0.00% ) announces monthly investor update for November 2023; Bitcoin mined of 369
LendingTree ( TREE 0.00% ) repurchases portion of 2025 convertible notes
Mastercard ( MA â–´ 0.11% ) increases quarterly cash dividend to $0.66/share from $0.57/share and approves new $11 billion share repurchase program
Midland States Bancorp ( MSBI 0.00% ) approves new stock repurchase program up to $25 mln; effective January 1, 2024 and expires on December 31, 2024
Netflix ( NFLX 0.00% ): SAG-AFTRA members approve 2023 tv/theatrical contracts tentative agreement
NET Power ( NPWR â–¾ 3.21% ) has signed a Strategic Supply Agreement with Lummus Technology to design and supply recuperative heat exchangers for NET Power's near-zero emissions power generation process
Neurocrine Biosciences ( NBIX 0.00% ) Receives Breakthrough Therapy Designation from U.S. Food and Drug Administration for Crinecerfont in Congenital Adrenal Hyperplasia
New Found Gold Corp. ( NFGC â–¾ 4.01% ) intercepts 43 g/t au over 11.6m at keats west
Nio ( NIO â–´ 1.50% ) aiming to spin off battery production unit, according to Reuters
Novartis ( NVS â–¾ 2.04% ) receives FDA approval for Fabhalta, offering superior hemoglobin improvement in the absence of transfusions as the first oral monotherapy for adults with PNH
Novavax's ( NVAX 0.00% ) updated COVID-19 vaccine now authorized in Canada
Nvidia ( NVDA 0.00% ) working to ensure new chips are compliant with China restrictions, according to Reuters
Pharvaris N.V. ( PHVS 0.00% ) announces positive top-line phase 2 data from the chapter-1 study of Deucrictibant for the prophylactic treatment of HAE attacks
PTC Therapeutics ( PTCT 0.00% ) Provides Updates on Translarna Regulatory Activities
Radiant Logistics ( RLGT â–¾ 1.15% ) authorizes a repurchase program of up to 5 mln shares of the Co's common stock
Rio Tinto ( RIO â–¾ 0.81% ) updates progress in its portfolio for the future
Rio Tinto ( RIO â–¾ 0.81% ) will provide an update today at its Investor Seminar on the world class Simandou iron ore project in Guinea, which is being progressed in partnership with CIOH, a Chinalco-led consortium, Winning Consortium Simandou, Baowu and the Republic of Guinea
Rhythm Pharmaceuticals ( RYTM 0.00% ) Announces Updates on MC4R Pathway Programs at R&D Event
Spotify ( SPOT â–´ 2.65% ) cancelled key podcast, according to TechCruch
Sterling Infrastructure ( STRL 0.00% ) announces authorization of a $200 million stock repurchase program
Tesla ( TSLA 0.00% ): Former Tesla employee is concerned about self driving safety, according to BBC
Teva Pharma ( TEVA â–´ 0.30% ) presents new Post Hoc Phase 3 Data Analysis Shows AJOVY (fremanezumab) Reduced Migraine Attacks in Adults with Migraine and Co-morbid Obesity
Trustmark ( TRMK 0.00% ) authorizes new stock repurchase program up to $50 mln, effective January 1, 2024 and expires December 31, 2024
Voyager Therapeutics ( VYGR 0.00% ) has selected a lead development candidate for its superoxide dismutase 1-mutated amyotrophic lateral sclerosis gene therapy program
xAI to raise $1 bln to compete with ChatGPT, according to the Wall Street Journal
M&A:
Danaher ( DHR â–¾ 1.21% ) completes acquisition of Abcam (ABCM)
enCore Energy Corp ( EU â–¾ 0.25% ) enters $70 mln transaction with Boss Energy
Equity Bancshares ( EQBK â–¾ 1.32% ) adds to Missouri franchise, will acquire Bank of Kirksville
Five9 ( FIVN 0.00% ) responds to market rumor: Five9 is not pursuing any such acquisition
R1 RCM ( RCM 0.00% ) announced that it has entered into a definitive agreement to acquire Acclara
Toyota ( TM â–´ 0.33% ) aiming to sell stake in Harmonic Drive Systems, according to Reuters
Syndicate:
Atour Lifestyle Hldgs. Ltd. ( ATAT 0.00% ) prices secondary offering of 9.6 mln shares of common stock at $15.80 per share
Credo Technology Group ( CRDO 0.00% ) files $300 mln mixed shelf securities offering; prices offering of 10.0 mln shares of common stock at $17.50 per share
Evolent Health ( EVH â–¾ 9.10% ) prices offering of $350.0 mln of convertible senior notes due 2029
EyePoint Pharmaceuticals ( EYPT 0.00% ) prices offering of 11,764,706 shares of its common stock at $17.00 per share
Fluence ( FLNC 0.00% ) files for 18,000,000 shares of its common stock by selling shareholders
Royal Bank of Canada ( RY â–´ 0.24% ) files mixed shelf securities offering
SharkNinja ( SN â–´ 3.90% ) prices secondary offering of 6,095,169 ordinary shares at $47.00 per ordinary share
Signet Jewelers ( SIG â–´ 5.89% ) files mixed shelf securities offering
Sphere Entertainment Co. ( SPHR â–¾ 15.50% ) announces pricing of $225 million offering of convertible senior notes
IPOs:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
S +18.7%, PHR +14.6%, ASPN +13.9%, SFIX +8%, EYPT +7.2%, CAR +4.4%, ATAT +3.9%, NBIX +3.7%, RCM +3.5%, TOL +3.2%, EU +3%, POWL +3%, HQY +2.9%, RIO +2%, IGMS +2%, BTBT +1.8%, NTB +1.7%, NVAX +1.4%, CHRS +1.4%, RLGT +1.3%, MSBI +1.1%, NVS +1.1%, IREN +0.9%, SIG +0.8%, MA +0.8%
Gapping down:
BOX -14.9%, YEXT -14.7%, ASAN -13.6%, FLNC -9.8%, OOMA -7.1%, BTI -7.1%, CRDO -4.8%, MDB -4.3%, UMC -3.1%, DSGX -2.8%, FIVN -2.6%, EVH -2.5%, PLAY -2.2%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
AutoZone (AZO) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $3100
Builders FirstSource (BLDR) upgraded to Buy from Neutral at B. Riley Securities; tgt raised to $177
Capital One (COF) upgraded to Buy from Neutral at BofA Securities; tgt raised to $129
Discover Financial Services (DFS) upgraded to Buy from Neutral at BofA Securities; tgt raised to $116
Downgrades:
Asana (ASAN) downgraded to Reduce from Hold at HSBC Securities; tgt $18
BRF SA (BRFS) downgraded to Neutral from Overweight at JP Morgan
Others:
Advanced Energy (AEIS) initiated with a Neutral at Seaport Research Partners
Agilon Health (AGL) initiated with a Mkt Outperform at JMP Securities; tgt $18
AGNC Investment (AGNC) resumed with a Neutral at UBS; tgt $9
AMN Healthcare (AMN) initiated with a Mkt Outperform at JMP Securities; tgt $85
Angel Oak Mortgage REIT (AOMR) resumed with a Neutral at UBS; tgt $10
Apollo Commercial Real Estate (ARI) initiated with a Neutral at UBS; tgt $10.50
Ares Commercial Real Estate (ACRE) initiated with a Neutral at UBS; tgt $10.50
ARMOUR Residential REIT (ARR) initiated with a Neutral at UBS; tgt $18.50
AvidXchange (AVDX) initiated with a Buy at BTIG Research; tgt $14
Blackstone Mortgage Trust (BXMT) initiated with a Neutral at UBS; tgt $23.50
Chimera Investment (CIM) initiated with a Neutral at UBS; tgt $5.50
Cross Country (CCRN) initiated with a Mkt Perform at JMP Securities
Digital Realty Trust (DLR) initiated with a Sector Weight at KeyBanc Capital Markets
Enact Holdings (ACT) initiated with a Neutral at UBS; tgt $29
Mr. Cooper Group (COOP) initiated with a Buy at UBS; tgt $80
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Dec 2 (Briefing.com Consensus NA; Prior 0.3%)
08:15 ET: ADP Employment Change for Nov (Briefing.com Consensus 127K; Prior 113K)
08:30 ET: Productivity-Rev. for Q3 (Briefing.com Consensus 4.8%; Prior 4.7%)
08:30 ET: Unit Labor Costs-Rev. for Q3 (Briefing.com Consensus -0.8%; Prior -0.8%)
08:30 ET: Trade Balance for Oct (Briefing.com Consensus -$64.4B; Prior -$61.5B)
10:30 ET: EIA Crude Oil Inventories for Dec 2 (Briefing.com Consensus NA; Prior +1.61M)
Earnings:
Monday (Dec 4)
Morning: SAIC
Afternoon: GTLB
Tuesday (Nov 5)
Morning: AZO CNM CRMT DBI FERG GII SIG SJM
Afternoon: ASAN AVAV BOX MDB PLAY PHR S SFIX TOL YEXT
Wednesday (Dec 6)
Morning: BF.B CPB KFY LOVE OLLI THO UNFI
Afternoon: AGX AI BASE BRZE CXM CHPT CHWY GEF GME OXM SPWH SMTC VEEV VRNT
Thursday (Dec 7)
Morning: CIEN DG GMS
Afternoon: AVGO COO CURV DOCU GWRE HPC LULU SMAR SWBI MTN
Friday (Dec 8)
Morning: MOMO
Asia & Europe detail:
Asia: Nikkei +2.0%, Hang Seng +0.8%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. China's National Development and Reform Commission will set up a coal production reserve system by 2027. China's Ministry of Finance expects that the country's economy will maintain a positive trend in Q4. Japan is considering providing a JPY50,000 payment for each child to low-income families. Standard & Poor's and Fitch did not make any changes to China's sovereign rating despite Moody's lowering the country's outlook to Negative from Stable yesterday.
In economic data:
Japan's December Reuters Tankan Index 12 (last 6)
Australia's November AIG Construction Index -22.2 (last 18.5) and AIG Manufacturing Index -25.3 (last -20.9). Q3 GDP 0.2% qtr/qtr (expected 0.4%; last 0.4%); 2.1% yr/yr (expected 1.8%; last 2.0%)
---Equity Markets---
Japan's Nikkei: +2.0%
Hong Kong's Hang Seng: +0.8%
China's Shanghai Composite: -0.1%
India's Sensex: +0.5%
South Korea's Kospi: UNCH
Australia's ASX All Ordinaries: +1.6%
---FX---
USD/JPY: +0.2% to 147.38
USD/CNH: -0.1% to 7.1674
USD/INR: UNCH at 83.32
Europe: DAX +0.3%, FTSE +0.5%, CAC +0.5%
Major European indices trade in the green. Travel agency TUI expects that bookings during the winter season will be up strongly yr/yr while the International Air Transport Association chief made positive comments about expectations for the airline industry in 2024. Finance Ministers in the EU are reportedly looking at implementing debt reduction targets. European Central Bank policymaker Kazaks said that he does not see the need for rate cuts in the first half of 2024, but he is open to changing that view.
In economic data:
Eurozone's October Retail Sales 0.1% m/m (expected 0.2%; last -0.1%); -1.2% yr/yr (expected -1.1%; last -2.9%)
Germany's October Factory Orders -3.7% m/m (expected 0.2%; last 0.7%)
---Equity Markets---
STOXX Europe 600: +0.4%
Germany's DAX: +0.3%
U.K.'s FTSE 100: +0.5%
France's CAC 40: +0.5%
Italy's FTSE MIB: +0.6%
Spain's IBEX 35: +0.1%
---FX---
EUR/USD: -0.2% to 1.0778
GBP/USD: UNCH at 1.2589
USD/CHF: UNCH at 0.8748