The S&P 500 futures are up 14 points and are trading 0.4% above fair value. The Nasdaq 100 futures are up 36 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are up 142 points and are trading 0.5% above fair value.
Equity futures are moving higher this morning after Friday'supbeat finish.
There is still a growing hope that China will loosen zero-covid related restrictions despite the spokesman for China's Health Commission saying that no changes are being made to the country's coronavirus protocols.
The Biden administration privately asked Ukraine to show it is open to negotiations with Russia, according to the Washington Post.
Apple (AAPL) is trading down in premarket action following its production warning while Meta Platforms (META) trades up after The Wall Street Journal reported the company is planning large layoffs.
Treasury yields are mixed this morning. The 2-yr note yield is up two basis points to 4.69% while the 10-yr note yield is down two basis points to 4.13%.
The U.S. Dollar Index is pulling back, down 0.3% to 110.55.
Economic data today is limited to the September Consumer Credit report (prior $23.80 bln) at 3:00 p.m. ET.
In corporate news:
Apple (AAPL 135.65 -2.73 -1.97%): provides update on supply of iPhone 14 Pro and iPhone 14 Pro Max; expects lower iPhone 14 Pro and iPhone 14 Pro Max shipments than previously anticipated
Meta Platforms (META 93.38 +2.59 +2.85%): planning large layoffs, according to WSJ.
BioNTech (BNTX 150.18 -4.13 -2.68%): beats by 3.56, beats on revs; raises COVID-19 revs outlook
Wells Fargo (WFC 47.05 +0.31 +0.66%): is under pressure to pay $1 bln to CFPB, according to Bloomberg.
Costco (COST 479.00 -7.41 -1.52%): downgraded to Equal Weight from Overweight at Wells Fargo
Palantir Technologies (PLTR 7.86 -0.07 -0.88%): misses by $0.01, reports revs in-line; guides Q4 revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a higher note. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: +2.7%, China's Shanghai Composite: +0.2%, India's Sensex: +0.4%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +0.6%.
In economic data:
China's October trade surplus $85.15 bln (expected surplus of $95.95 bln; last surplus of $84.78 bln). October Imports -0.7% yr/yr (expected 0.1%; last 0.3%) and Exports -0.3% yr/yr (expected 4.3%; last 5.7%)
In news:
There was more speculation about China loosening restrictions, but the spokesman for China's Health Commission said that no changes are being made to the country's coronavirus protocols.
The approval rating of Japan's cabinet office fell nine points to 36%, according to Yomiuri.
Yonhap reported that there are growing expectations for South Korea's 2023 GDP growth to be at 2.0% or below due to high rates, high inflation, and weak won.
Major European indices trade on a mostly higher note with Germany's DAX (+0.8%) showing relative strength. STOXX Europe 600: +0.5%, Germany's DAX: +0.8%, U.K.'s FTSE 100: -0.2%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +0.2%.
In economic data:
Eurozone's October Construction PMI 44.9 (last 45.3). November Sentix Investor Confidence -30.9 (expected -35.0; last -38.3)
Germany's September Industrial Production 0.6% m/m (expected 0.2%; last -1.2%). October Construction PMI 43.8 (last 41.8)
U.K.'s October Halifax House Price Index -0.4% m/m, as expected (last -0.1%); 8.3% yr/yr (last 9.8%)
France's October Construction PMI 44.3 (last 49.1)
Italy's October Construction PMI 48.1 (last 46.7)
In news:
The U.K. is reportedly planning to implement a road tax on electric vehicles and GBP35 bln in spending cuts.
The German government will reportedly spend GBP83.3 bln to finance next year's cap on energy prices.
Bank of France Governor Villeroy de Galhau said that ECB rate hikes need to continue since underlying inflation has not peaked.
U.S. equity futures:
S&P 500 Futures: +16 @ 3,787
DJIA Futures: +148 @ 32552
Nasdaq 100 Futures: +38 @ 10,985
Overseas:
Europe: DAX +0.8%, FTSE -0.2%, CAC +0.1%
Asia: Nikkei +1.2%, Hang Seng +2.7%, Shanghai Composite +0.2%
Commodities:
Crude Oil -0.84@ 91.74
Nat Gas +0.695 @ 7.095
Gold +2.30 @ 1678.90
Silver -0.092 @ 20.692
Copper -0.0778 @ 3.6087
Earnings/Guidance:
Affiliated Managers (AMG) beats by $0.30, beats on revs
Amicus Therapeutics (FOLD) beats by $0.07
Beam Therapeutics (BEAM) reports Q3 (Sep) results, beats on revs
Berkshire Hathaway (BRK.B) reports Q3 results
BioNTech (BNTX) beats by 3.56, beats on revs; raises COVID-19 revs outlook
Bluebirdbio (BLUE) beats by $0.24, misses on revs
Cactus (WHD) beats by $0.04, reports revs in-line
Choice Hotels (CHH) misses by $0.13, beats on revs; provides FY22 EBITDA guidance
Cronos Group (CRON) misses by CAD0.02, misses on revs
Essential Utilities (WTTR) beats by $0.04, beats on revs; reaffirms FY22 EPS guidance
Franco-Nevada (FNV) misses by $0.03, misses on revs
Haemonetics (HAE) beats by $0.16, beats on revs; raises FY23 guidance
Helios Technologies (HLIO) misses by $0.07, misses on revs; lowers FY22 EPS below consensus, revs below consensus
HF Sinclair (DINO) beats by $0.36, beats on revs
Holly Energy Partners (HEP) misses by $0.19, beats on revs
IAA (IAA) misses by $0.05, beats on revs
Kosmos Energy (KOS) beats by $0.06
NiSource (NI) beats by $0.02; guides FY22 EPS in-line; guides FY23 EPS in-line
NRG Energy (NRG) misses by $0.79, beats on revs
Palantir Technologies (PLTR) misses by $0.01, reports revs in-line; guides Q4 revs below consensus
Ritchie Bros. (RBA) beats by $0.15, beats on revs
Shift4 Payments (FOUR) beats by $0.01, reports revs in-line; raises FY22 revs in-line
TreeHouse Foods (THS) reports Q3 (Sep) results, misses on revs; guides Q4 revs in-line
United Micro (UMC) reports October revs increased 27.1% yr/yr to NT$24.34 bln
Viatris (VTRS) reports Q3 (Sep) results, misses on revs; reaffirms FY22 revs guidance
News:
Republicans expected to gain control of House as party holds voter advantages on inflation and crime while Democrats hold advantage on issue of threats to democracy, according to the Washington Post
The Biden administration privately asks Ukraine to show it is open to negotiations with Russia, according to the Washington Post
China's National Health Commission reaffirmed zero coronavirus policy and says situation could become "more severe and complex" amid flu season, according to
President Biden will soon confront oil executives on prices, according to Bloomberg
Senator Joe Manchin (D-WV) was highly critical of President Biden's comments about shutting down all coal plants in America, according to Politico
Tropical system could impact Florida later this week, according to the Wall Street Journal
The Federal Reserve releases its Financial Stability Report for November 2022
AMGEN (AMGN) presents new Phase 2 data that show Olpasiran delivers significant reduction in LIPOPROTEIN(A) levels
Anavex (AVXL): FDA grants Orphan Drug Designation to ANAVEX2-73 (blarcamesine) for the treatment of Fragile X syndrome
Apple (AAPL) provides update on supply of iPhone 14 Pro and iPhone 14 Pro Max; expects lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated
AstraZeneca (AZN) presents data at ASN Kidney Week 2022 reinforcing urgent need for early screening of chronic kidney disease and the benefits of earlier treatment initiation for patients and healthcare systems
BrainStorm Cell Therapeutics (BCLI) Presents New Analyses from NurOwn's Phase 3 ALS Trial at the 21st Annual NEALS Meeting
Caledonia Mining (CMCL) provides updated mineral resources and technical report for Maligreen
Cameco (CCJ) signs uranium supply agreement with China Nuclear International Corporation
Cenovus Energy (CVE) approved the renewal of the company's normal course issuer bid to purchase up to 136,717,741 common shares during the 12-month period commencing November 9, 2022
Daqo New Energy (DQ) approves $700 mln share repurchase
Exxon (XOM) could lose $2 bln from sale of California oil assets, according to Reuters
FOX Corporation (FOX) issues statement on arbitration ruling
F-star Therapeutics (FSTX) Announces Publication of Phase 1 Dose-Escalation Trial of FS118 in Patients with Advanced Cancer and PD-L1 Resistance in Clinical Cancer Research
Galapagos NV (GLGP) outlines roadmap for pipeline and commercial growth during its R&D Day; expects Jyseleca net sales of 80-90 mln in 2022
GlaxoSmithKline (GSK) provides update on DREAMM-3 phase III trial for Blenrep in relapsed/refractory multiple myeloma; study did not meet primary endpoint
GOL Linhas Aereas Inteligentes S.A. (GOL) reports October traffic figures
Horizon Pharma (HZNP) reports data supporting the use of KRYSTEXXA (pegloticase) Injection with Methotrexate to Treat Uncontrolled Gout in People With Mild-to-Moderate Chronic Kidney Disease
Insulet (PODD) Issued Voluntary Medical Device Correction for Omnipod DASH Personal Diabetes Manager on October 17, 2022
Ionis (IONS) presents positive Phase 2 data in patients with IgA Nephropathy at American Society of Nephrology's Kidney Week 2022
iRhythm (IRTC) presents New Research Confirms that Zio by iRhythm Provides High Value From a Health Economic Perspective
Kamada (KMDA) Provides Update on Recent Progress Achieved in Ongoing Pivotal Phase 3 Clinical Trial of Inhaled AAT
KBR (KBR) was awarded a contract by Deepak Fertilizers and Petrochemicals Corporation to help three DFPCL plants achieve lower emissions and simultaneously increase production capacity
Lexicon Pharma (LXRX) reports new Analysis of SCORED Trial Demonstrates Sotagliflozin's Effect on Reducing Albuminuria in Patients With Type 2 Diabetes and Chronic Kidney Disease
Merck (MRK): Reductions in certain types of hpv-related cervical and non-cervical diseases in women and men observed with real-world use of Merck's GARDASIL in systematic literature review of 138 studies
Meta (META) planning large layoffs, according to the Wall Street Journal
Novartis AG's (NVS) Sandoz announces further investment in key manufacturing facility in Austria, to support increased global demand for essential antibiotics
Osisko Gold Royalties (OR) has entered into a binding agreement with SolGold plc with respect to a $50 mln royalty financing to support the advancement of SolGold's Cascabel copper-gold property in northeastern Ecuador
Petrobras (PBR): Former Petrobras executive urges Brazil to block dividend payment, according to Reuters
Rallybio (RLYB) reports "positive" topline results from its Phase 1 single ascending dose (SAD) study in healthy participants of RLYB116
Regeneron Pharma (REGN) reports Aflibercept 8 mg Late-breaking Data Presented at Retina Society in Diabetic Macular Edema and Wet Age-related Macular Degeneration
Silence Therapeutics (SLN) Presents New Analysis from SLN360 Phase 1 Single Dose Study in High Lipoprotein(a) at the American Heart Association (AHA) 2022 Annual Meeting
Trimble (TRMB) announces strategic collaboration to explore the use of autonomous construction surveying technology
TriNet Group (TNET) commenced a modified "Dutch auction" tender offer for cash up to $250 million in value of its common stock at a price per share not less than $63.00 and not greater than $72.00
Triumph Bancorp (TBK) commences a modified "Dutch Auction" tender offer to repurchase up to $100 million of its common stock
Twitter (TWTR): Elon Musk eliminated half of Twitter's staff, according to the New York Times
Vera Therapeutics (VERA) Presents New Analysis of Phase 2a JANUS Trial of Atacicept in IgA Nephropathy and Positive Final Phase 2 Results of MAU868 in Kidney Transplant Recipients with Reactivated BK Virus Infection at the American Society of Nephrology Kidney Week 2022 Annual Meeting
Verve Therapeutics (VERV) reports VERVE-101 Investigational New Drug Application placed on hold by U.S. Food and Drug Administration
Vir Biotechnology (VIR) Presents New Data Evaluating the Potential for VIR-2218 and VIR-3434 to Achieve a Functional Cure for Chronic Hepatitis B Virus (HBV) Infection
Wells Fargo (WFC) is under pressure to pay $1 bln to CFPB, according to Bloomberg
Zimmer Biomet (ZBH) Announces One-Year Data from mymobility Clinical Study at 2022 AAHKS Annual Meeting
M&A:
Activision (ATVI) insiders are concerned deal with Microsoft (MSFT) could collapse, according to the New York Post
Allegion (ALLE) to acquire assets of plano; expected to close in the first quarter of 2023; Terms of the plano transaction were not disclosed
Bowman Consulting Group (BWMN) announced the purchase of SEI Engineering
Castellum (CTM) to acquire an East-coast-based government contractor generating approximately $10 million in revenue
Fox (FOXA) holds 10 year option to purchase stake in FanDuel (DKNG), according to Reuters
Gold Fields (GFI) Board stands behind existing terms of transaction with Yamana Gold (AUY)
IAA (IAA): Ritchie Bros. (RBA) to acquire IAA in stock and cash transaction valued at ~$7.3 bln
Ouster (OUST) and Velodyne (VLDR) announce proposed merger of equals
Peabody Energy (BTU) & Coronado discontinue combination discussions
Philip Morris International (PM): PMHH Is Pleased to Complete Its Offer for Swedish Match and Become the Owner of 82.59% of the Shares; Extends the Offer Period; and Adjusts the Price for Future Tenders Due to the Scheduled Dividend
Walgreens (WBA) unit Village Practice Management wants to combine Summit Health, according to theWall Street Journal
Syndicate:
Annexon (ANNX) files for 42,137,548 common stock offering by selling stockholders
CVRx, Inc. (CVRX) files $150 mln mixed securities shelf offering
Dragonfly Energy (DFLI) files for 38,132,989 common stock offering by selling stockholders; relates to warrants
FAT Brands (FAT) announced that it has withdrawn its previously announced proposed registered public offering of shares of its Class A Common Stock as a result of market conditions
LSB Industries (LXU) announces secondary offering of 14,350,000 shares of common stock by selling stockholder with the Company repurchasing 3,500,000 of the shares
ProPetro (PUMP) files for 10,116,888 common stock offering by selling stockholder
Rayonier (RYN) files mixed securities shelf offering
Select Energy Services (WTTR) files for 8,717,619 common stock offering by selling stockholders
Wynn Resorts (WYNN) files mixed securities shelf offering
IPOs:
Expect to Price:
Acrivon Therapeutics (Nasdaq: ACRV): The clinical stage biopharmaceutical company developing precision oncology medicines is expected to price its 5.9 M share IPO between $16-$18.
Gapping Up/Down
Gapping up:
LXRX +11.1%, IAA +7%, VLRS +5.6%, HAE +5.4%, TBK +3.5%, DQ +3.4%, CCJ +3%, KOS +2.9%, FOX+2.3%, UMC +1.4%, BRK.B +1.2%, GFI +1.1%, BCLI+0.9%, IWM +0.8%, CVE +0.6%, SPY +0.6%, QQQ+0.6%, DIA +0.6%
Gapping down:
VERV -14.2%, ICPT -3%, NI -3%, BNTX -2.5%, RBA-2.1%, GSK -1.7%, AAPL -1.3%, BEAM -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
ACM Research (ACMR) upgraded to Hold from Underperform at Jefferies; tgt lowered to $7
Coterra Energy (CTRA) upgraded to Peer Perform from Underperform at Wolfe Research
DoorDash (DASH) upgraded to Outperform from Perform at Oppenheimer; tgt $70
Fluor (FLR) upgraded to Buy from Neutral at DA Davidson; tgt raised to $40
Downgrades:
Adient (ADNT) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $36
AvalonBay (AVB) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $160
Costco (COST) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $490
Estee Lauder (EL) downgraded to Hold from Buy at Berenberg; tgt lowered to $220
Galapagos NV (GLPG) downgraded to Mkt Perform from Outperform at Raymond James
GATX (GATX) downgraded to Neutral from Positive at Susquehanna
Huntsman (HUN) downgraded to Sector Perform from Sector Outperform at Scotiabank
IdaCorp (IDA) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $103
Others:
Datadog (DDOG) initiated with a Peer Perform at Wolfe Research
Upcoming Events:
Econ Data:
15:00 ET: Consumer Credit for Sep (Briefing.comConsensus NA; Prior $23.8B)
Earnings
Monday (Nov 7)
Morning: AMG BLDP BNTX WHD CHH CRON DK WTRG FNV HAE HLIO DINO HEP NI NRG PLTR RBA FOUR THS VTRS
Afternoon: ME TWOU AAON ACCO ATVI ADTN LNT AEL AMWL ASH BNFT BHF BWXT CBT CERT DHT FANG DOCN DIOD EHTH FN FGEN FIVN FLGT GRPN HIMS ICUI IFF LGND LPSN LYFT MTW DOOR MLNK MOS MWA NSTG NFE OSH PACB PRDO PRIM QTWO QGEN ROVR SANM SWAV SEDG TTWO TASK TDC TRIP UIS VECO VNOM WELL XNCR YMAB
Tuesday (Nov 8)
Morning: ACRS AHCO BSY BLDR CG CLVT CNHI CEG COTY CYXT DBD DD ELAN EXK EVBG EVRI EXPD FA GFS HAIN HSKA IGT RIDE LITE MNKD NEO NXST NWN NCLH NOVT PKI PRGO PLNT PLTK RCM RETA REYN SAGE SCSC SSP SQSP STVN SPWR SHO SKIN TAC TGI
Afternoon: DDD ABCL AFRM AKAM ALRM BIRD AMC DOX AMRS ANGI ARLO ARRY AXON BLNK CARG CLNE CRCT DAR DV EBS ENV EOLS FNF FLYW GMED GDRX GO GXO HALO HCAT HRTX ICHR IOSP INO IAC NVTA JKHY LMND LFST RAMP LCID MASI MRTX MODN MRC NTRA NHI NEWR NWSA KIND NOG NLOK NVAX OXY OPK OSUR PLUG PRI PRA PUBM SEER SILK SRC SFM SUPN SG TWO UPST VSAT WTI DIS XENE ZD
Asia & Europe detail:
Asia: Nikkei +1.2%, Hang Seng +2.7%, Shanghai Composite +0.2%
Equity indices in the Asia-Pacific region began the week on a higher note. There was more speculation about China loosening restrictions, but the spokesman for China's Health Commission said that no changes are being made to the country's coronavirus protocols. The approval rating of Japan's cabinet office fell nine points to 36%, according to Yomiuri. Yonhap reported that there are growing expectations for South Korea's 2023 GDP growth to be at 2.0% or below due to high rates, high inflation, and weak won.
In economic data:
China's October trade surplus $85.15 bln (expected surplus of $95.95 bln; last surplus of $84.78 bln). October Imports -0.7% yr/yr (expected 0.1%; last 0.3%) and Exports -0.3% yr/yr (expected 4.3%; last 5.7%)
---Equity Markets---
Japan's Nikkei: +1.2%
Hong Kong's Hang Seng: +2.7%
China's Shanghai Composite: +0.2%
India's Sensex: +0.4%
South Korea's Kospi: +1.0%
Australia's ASX All Ordinaries: +0.6%
---FX---
USD/JPY: -0.1% to 146.52
USD/CNH: +0.8% to 7.2303
USD/INR: -0.1% to 81.92
Europe: DAX +0.8%, FTSE -0.2%, CAC +0.1%
Major European indices trade on a mostly higher note with Germany's DAX (+0.8%) showing relative strength. The U.K. is reportedly planning to implement a road tax on electric vehicles and GBP35 bln in spending cuts. The German government will reportedly spend GBP83.3 bln to finance next year's cap on energy prices. Bank of France Governor Villeroy de Galhau said that ECB rate hikes need to continue since underlying inflation has not peaked.
In economic data:
Eurozone's October Construction PMI 44.9 (last 45.3). November Sentix Investor Confidence -30.9 (expected -35.0; last -38.3)
Germany's September Industrial Production 0.6% m/m (expected 0.2%; last -1.2%). October Construction PMI 43.8 (last 41.8)
U.K.'s October Halifax House Price Index -0.4% m/m, as expected (last -0.1%); 8.3% yr/yr (last 9.8%)
France's October Construction PMI 44.3 (last 49.1)
Italy's October Construction PMI 48.1 (last 46.7)
---Equity Markets---
STOXX Europe 600: +0.5%
Germany's DAX: +0.8%
U.K.'s FTSE 100: -0.2%
France's CAC 40: +0.1%
Italy's FTSE MIB: +0.7%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: +0.1% to 0.9967
GBP/USD: +0.5% to 1.1427
USD/CHF: -0.4% to 0.9900
留言