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07/11/23 Briefing


The S&P 500 futures are down 9 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 6 points and are trading fractionally below fair value. The Dow Jones Industrial Average futures are down 86 points and are trading 0.2% below fair value.

The stock market is poised for a lower open, driven by normal selling activity after big gains last week.

The 10-yr note yield is down four basis points to 4.62% and the 2-yr note yield is unchanged from yesterday at 4.94%.

Minneapolis Fed President Kashkari (FOMC voter) said in an interview that he is not convinced rate hikes are over, according to The Wall Street Journal.

The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, as expected, and also changed some of the language in its policy statement, fueling speculation that additional hikes are not being planned at this time.

China reported a smaller than expected $56.53 billion October trade surplus (expected surplus of $82.00 bln; last surplus of $77.71 bln). Imports jumped by a much better than expected 3.0% year-over-year (expected -4.8%) and exports sank -6.4% year-over-year versus an expected -3.3% decline.

Notable U.S. economic data today includes:

  • 8:30 ET: September Trade Balance (Briefing.com consensus -$60.1 bln; prior -$58.3 bln)

  • 15:00 ET: September Consumer Credit (Briefing.com consensus $9.0 bln; prior -$15.6 bln)

In corporate news:

  • Uber (UBER 47.68, -0.63, -1.3%): beats by $0.04, misses on revs

  • NXP Semi (NXPI 183.51, +0.71, +0.4%): beats by $0.08, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY23 revs below consensus

  • Vertex Pharma (VRTX 381.33, -4.43, -1.2%): beats by $0.16, reports revs in-line; raises FY23 revs guidance, still doesn't meet consensus

  • TripAdvisor (TRIP 17.77, +1.66, +10.3%): beats by $0.05, beats on revs

  • D.R. Horton (DHI 118.00, +0.28, +0.2%): beats by $0.51, beats on revs, homes closed decreased 1% yr/yr; guides FY24 revs in-line; increases quarterly dividend to $0.30 from $0.25/share

  • GlobalFoundries (GFS 52.90, +1.24, +2.4%): beats by $0.05, reports revs in-line; guides Q4 EPS mostly above consensus, revs below consensus

  • Intel (INTC 38.13, +0.18, +0.5%): ends plans to expand chip operations in Vietnam, according to Reuters; could get billions in government funding for defense chip facilities, according to the WSJ

  • NVIDIA (NVDA 454.70, -2.81, -0.6%): Baidu (BIDU) places artificial intelligence chip order with Huawei instead of Nvidia, according to Reuters

  • Datadog (DDOG 98.00, +18.45, +23.2%): beats by $0.11, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Emerson (EMR 88.47, -3.27, -3.6%): misses by $0.02, misses on revs; guides Q1 EPS in-line; guides FY24 EPS above consensus, revs above consensus

  • Planet Fitness (PLNT 59.00, +3.83, +6.9%): beats by $0.04, beats on revs, system-wide same store sales increased by 8.4%

  • Intl Flavors (IFF 76.41, +4.07, +5.6%): beats by $0.14, beats on revs; guides Q4 revs in-line

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a lower note. Japan's Nikkei: -1.3%, Hong Kong's Hang Seng: -1.7%, China's Shanghai Composite: UNCH, India's Sensex: UNCH, South Korea's Kospi: -2.3%, Australia's ASX All Ordinaries: -0.2%.

    • In economic data:

      • Japan's September Household Spending 0.3% m/m (expected -0.4%; last 3.9%); -2.8% yr/yr (expected -2.7%; last -2.5%). September Overall Wage Income 1.2% yr/yr (last 0.8%)

      • China's October trade surplus $56.53 bln (expected surplus of $82.00 bln; last surplus of $77.71 bln). October Imports 3.0% yr/yr (expected -4.8%; last -6.2%) and Exports -6.4% yr/yr (expected -3.3%; last -6.2%)


  • In news:

    • China's Commerce Ministry issued new rules governing exports of rare earths.

    • China Securities News speculated that the People's Bank of China will cut the reserve requirement ratio or lower the medium term lending facility rate again this year.

    • China's Vice Premier He will meet with Treasury Secretary Yellen in San Francisco on Thursday and Friday.

    • The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, as expected. However, the RBA changed some of the language in its policy statement, fueling speculation that additional hikes are not being planned at this time.

    • New Zealand's Treasury noted that key economic indicators point to an ongoing slowdown.



  • Major European indices trade on a lower note. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.2%.

    • In economic data:

      • Eurozone's September PPI 0.5% m/m, as expected (last 0.7%); -12.4% yr/yr (expected -12.5%; last -11.5%). October Construction PMI 42.7 (last 43.6)

      • Germany's October Construction PMI 38.3 (last 39.3). September Industrial Production -1.4% m/m (expected -0.1%; last -0.1%); -3.9% yr/yr (last -1.5%)

      • U.K.'s October Halifax House Price Index 1.1% m/m (expected 0.2%; last -0.3%); -3.2% yr/yr (last -4.5%)

      • France's October Construction PMI 41.0 (last 43.7)

      • Italy's October Construction PMI 51.8 (last 49.8)

      • Spain's September Industrial Production -1.4% yr/yr (expected -2.9%; last -3.3%)

      • Swiss October Unemployment Rate 2.1%, as expected (last 2.1%)


  • In news:

    • Germany's Construction PMI for October pointed to the fastest pace of contraction in the sector since April 2020.

    • House prices in the U.K. recorded their first month-over-month increase since March. Meanwhile, British homebuilder Persimmon raised its completions forecast for the year due to falling average selling prices.

    • UBS beat operating profit expectations for Q3. French Finance Minister Le Maire said that the inflationary crisis is now in the past.



U.S. equity futures:

  • S&P 500 Futures -10 @ 4,356

  • DJIA Futures: -88 @ 34,008

  • Nasdaq 100 Futures: -16 @ 15,139

Overseas:

  • Europe: DAX -0.3%, FTSE -0.1%, CAC -0.5%

  • Asia: Nikkei -1.3%, Hang Seng -1.7%, Shanghai Composite UNCH

Commodities:

  • Crude Oil -1.27 @ 79.55

  • Nat Gas -0.118 @ 3.146

  • Gold -24.65 @ 1963.95

  • Silver -0.629 @ 22.605

  • Copper -0.0617 @ 3.6573

Earnings/Guidance:

  • 908 Devices ( MASS 0.00% ) beats by $0.08, beats on revs; guides FY23 revs in-line

  • AAON ( AAON 0.00% ) beats by $0.09, beats on revs

  • ACM Research ( ACMR 0.00% ) beats by $0.23, reports revs in-line; guides FY23 revs below consensus

  • ACV Auctions ( ACVA 0.00% ) reports Q3 (Sep) results, revs in-line; guides Q4 revs in-line; guides FY23 revs above consensus

  • AdaptHealth ( AHCO 0.00% ) reports Q3 (Sep) results, beats on revs; guides FY23 revs in-line

  • ADTRAN ( ADTN 0.00% ) misses by $0.05, misses on revs; guides Q4 revs below consensus

  • Air Products ( APD â–¾ 0.65% ) beats by $0.04, misses on revs; guides Q1 EPS in-line; guides FY24 EPS mostly above consensus

  • Air Transport Services Group ( ATSG 0.00% ) misses by $0.18, misses on revs; guides FY23 EPS below consensus; names Joe Hete as CEO

  • Albany Intl ( AIN â–´ 0.21% ) beats by $0.10, beats on revs; guides FY23 EPS in-line, revs above consensus

  • Alpha and Omega Semi ( AOSL 0.00% ) beats by $0.01, reports revs in-line; guides Q2 revs below consensus

  • Alphatec ( ATEC 0.00% ) reports Q3 (Sep) results, beats on revs; reaffirms FY23 revs guidance

  • Alteryx ( AYX â–¾ 7.33% ) beats by $0.34, beats on revs; guides Q4 EPS below consensus, revs in-line; guides FY23 EPS above consensus, revs above consensus

  • Ameresco ( AMRC â–¾ 10.73% ) misses by $0.06, misses on revs; guides FY23 EPS below consensus, revs below consensus due to project conversion delays and material shortages

  • Arvinas ( ARVN 0.00% ) beats by $0.40, misses on revs

  • Aspen Tech ( AZPN 0.00% ) misses by $0.28, misses on revs; guides FY24 EPS in-line, revs in-line

  • AssetMark ( AMK 0.00% ) beats by $0.04, beats on revs

  • Bentley Systems ( BSY 0.00% ) beats by $0.03, beats on revs

  • Bluebirdbio ( BLUE 0.00% ) beats by $0.01, misses on revs

  • Brinks ( BCO â–¾ 0.38% ) beats by $0.13, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Cabot ( CBT â–¾ 2.39% ) beats by $0.17, misses on revs; guides FY24 EPS in-line

  • Carlyle Group ( CG 0.00% ) beats by $0.15, misses on revs

  • CCC Intelligent Solutions ( CCCS 0.00% ) beats by $0.01, beats on revs; guides Q4 revs above consensus

  • Celanese ( CE â–¾ 0.77% ) beats by $0.27, misses on revs; guides Q4 EPS below consensus

  • Celsius ( CELH 0.00% ) beats by $0.38, beats on revs

  • Choice Hotels ( CHH â–¾ 1.64% ) misses by $0.03, reports revs in-line; raises FY23 EPS in-line; urges Wyndham Board to resume acquisition discussions

  • Clarivate ( CLVT â–¾ 1.60% ) beats by $0.03, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • CNH Industrial ( CNHI â–¾ 2.07% ) misses by $0.01, reports revs in-line; guides FY23 EPS below consensus

  • CNO Financial ( CNO â–¾ 1.51% ) beats by $0.15

  • Coherent ( COHR â–¾ 0.09% ) beats by $0.04, reports revs in-line; guides Q2 EPS in-line, revs in-line; reaffirms FY24 EPS guidance, revs guidance

  • Coterra Energy ( CTRA â–¾ 2.14% ) beats by $0.06, reports revs in-line, increases 2023 production guidance

  • Crane NXT ( CXT â–¾ 0.70% ) reports Q3 (Sep) results, revs in-line; guides FY23 EPS in-line, reaffirms FY23 core revenue growth outlook

  • CRISPR Therapeutics ( CRSP 0.00% ) beats by $0.63

  • Datadog ( DDOG 0.00% ) beats by $0.11, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Delek Logistics Partners ( DKL â–´ 1.94% ) beats by $0.01; beats on revs

  • Delek US Holdings ( DK â–¾ 0.81% ) beats by $0.62, beats on revs

  • DHT ( DHT â–¾ 0.44% ) misses by $0.01, reports revs in-line

  • Diamondback Energy ( FANG 0.00% ) beats by $0.06, beats on revs; raises FY23 net production and CapEx guidance

  • Diamond Offshore ( DO â–¾ 2.99% ) reports Q3 results; beats on revs

  • D.R. Horton ( DHI â–¾ 0.96% ) beats by $0.51, beats on revs, homes closed decreased 1% yr/yr; guides FY24 revs in-line; increases quarterly dividend to $0.30 from $0.25/share

  • Elanco Animal Health ( ELAN â–¾ 2.60% ) beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line

  • Emerson ( EMR â–¾ 0.25% ) misses by $0.02, misses on revs; guides Q1 EPS in-line; guides FY24 EPS above consensus, revs above consensus

  • Enovis Corporation ( ENOV â–¾ 1.40% ) beats by $0.02, reports revs in-line; guides FY23 EPS in-line

  • Ero Copper ( ERO â–¾ 1.33% ) announces $105 mln brought deal financing via 8.51 mln shares at price of $12.35/share

  • Essential Utilities ( WTRG â–¾ 1.40% ) beats by $0.01, misses on revs; reaffirms FY23 EPS guidance; reaffirms 2025 goals

  • EverCommerce ( EVCM 0.00% ) misses by $0.11, reports revs in-line; trims FY23 revs outlook

  • Evergy ( EVRG 0.00% ) beats by $0.04; guides FY23 EPS in-line

  • Fabrinet ( FN â–¾ 0.57% ) beats by $0.15, beats on revs; guides Q2 EPS above consensus, revs in-line

  • Fidelity Nat'l Info ( FIS â–¾ 0.46% ) beats by $0.07, misses on revs; guides FY23 revs in-line

  • Geo Group ( GEO â–¾ 1.00% ) reports Q3 results, beats on revenue, issues Q4 GAAP net income guidance

  • GlobalFoundries ( GFS 0.00% ) beats by $0.05, reports revs in-line; guides Q4 EPS mostly above consensus, revs below consensus

  • Gogo ( GOGO 0.00% ) beats by $0.03, misses on revs; lowers FY23 revenue guidance

  • Goodyear Tire ( GT 0.00% ) beats by $0.17, misses on revs

  • Guardant Health ( GH 0.00% ) beats by $0.30, beats on revs; ups FY23 revs outlook

  • Hain Celestial ( HAIN 0.00% ) beats by $0.02, misses on revs

  • Halozyme Therapeutics ( HALO 0.00% ) beats by $0.04, reports revs in-line; guides FY23 EPS above consensus, revs in-line

  • HighPeak Energy ( HPK 0.00% ) reports Q3 (Sep) results, beats on revs

  • Hims & Hers Health ( HIMS â–¾ 3.09% ) reports EPS in-line, beats on revs; guides Q4 revs above consensus; guides FY23 revs above consensus

  • HireRight Holdings ( HRT â–¾ 1.35% ) beats by $0.02, reports revs in-line; guides FY23 EPS above consensus, revs in-line

  • Hostess Brands ( TWNK 0.00% ) misses by $0.02, misses on revs

  • ICHOR Corporation ( ICHR 0.00% ) misses by $0.01, beats on revs; provides in-line Q4 guidance

  • ICU Medical ( ICUI 0.00% ) beats by $0.18, misses on revs

  • IDEAYA Biosciences ( IDYA 0.00% ) beats by $0.03, misses on revs

  • Ingredion ( INGR â–¾ 0.28% ) beats by $0.38, misses on revs; guides FY23 EPS above consensus, revs below consensus

  • International Money Express ( IMXI 0.00% ) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line

  • International Seaways ( INSW â–¾ 0.83% ) beats by $0.41, beats on revs; declares dividend and supplemental dividend

  • Intl Flavors ( IFF â–¾ 0.51% ) beats by $0.14, beats on revs; guides Q4 revs in-line

  • JELD-WEN ( JELD â–¾ 2.69% ) beats by $0.19, beats on revs; guides FY23 revs in-line

  • KKR ( KKR â–¾ 2.80% ) beats by $0.11

  • Latham Group ( SWIM 0.00% ) misses by $0.07, misses on revs; guides FY23 revs below consensus

  • LCI Industries ( LCII â–¾ 4.12% ) misses by $0.35, misses on revs

  • Lion Electric ( LEV â–¾ 4.37% ) beats by $0.01, beats on revs

  • Madison Square Garden Entertainment ( MSGE â–¾ 2.99% ) misses on EPS and revs; reaffirms FY24 revs guidance

  • Matterport ( MTTR 0.00% ) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line; guides FY23 EPS above consensus, revs in-line

  • Medifast ( MED â–´ 1.06% ) beats by $1.06, beats on revs; guides FY23 EPS above two analyst estimate, revs below two analyst estimate

  • Myriad Genetics ( MYGN 0.00% ) beats by $0.05, beats on revs; raises FY23 EPS, revs guidance

  • NeoGenomics ( NEO 0.00% ) beats by $0.07, beats on revs; guides FY23 revs above consensus

  • Nintendo ( NTDOY ) reports H1 results; provides outlook

  • Novanta ( NOVT 0.00% ) beats by $0.11, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • NXP Semi ( NXPI 0.00% ) beats by $0.08, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY23 revs below consensus

  • Olaplex ( OLPX 0.00% ) beats by $0.02, beats on revs; guides FY23 revs above consensus

  • Olo Inc. ( OLO â–´ 1.56% ) reports EPS in-line, beats on revs; guides Q4 revs above consensus

  • Opko Health ( OPK 0.00% ) misses by $0.01, beats on revs

  • OrthoPediatrics ( KIDS 0.00% ) beats by $0.01, reports revs in-line; reaffirms FY23 revs guidance

  • Oscar Health ( OSCR â–¾ 0.35% ) beats by $0.18, beats on revs

  • Paymentus ( PAY â–¾ 2.58% ) beats by $0.05, reports revs in-line; guides Q4 revs in-line

  • Perrigo ( PRGO â–¾ 0.97% ) beats by $0.03, misses on revs; guides FY23 EPS below consensus, revs below two analyst estimate

  • Planet Fitness ( PLNT â–¾ 0.27% ) beats by $0.04, beats on revs, system-wide same store sales increased by 8.4%

  • PRA Group ( PRAA 0.00% ) beats by $0.06, beats on revs

  • Premier ( PINC 0.00% ) beats by $0.03, reports revs in-line

  • Quanterix ( QTRX 0.00% ) reports Q3 results, beats on revs

  • Realty Income ( O â–¾ 0.77% ) reports FFO in-line, beats on revs; guides FY23 FFO in-line

  • Revolution Medicines ( RVMD 0.00% ) beats by $0.02, no revenue

  • RingCentral ( RNG â–¾ 0.25% ) beats by $0.03, reports revs in-line; guides Q4 EPS above consensus, revs in-line

  • Rocket Pharmaceuticals ( RCKT 0.00% ) beats by $0.06; cash sufficient to fund operations through 2025

  • Rover Group ( ROVR 0.00% ) beats by $0.02, beats on revs; guides Q4 revs above consensus; Board approves extension of share repurchase program with additional $100 million

  • Ryman Hospitality ( RHP â–¾ 1.34% ) beats by $0.10, reports revs in-line

  • Rhythm Pharmaceuticals ( RYTM 0.00% ) misses by $0.02, beats on revs

  • SAGE Therapeutics ( SAGE 0.00% ) misses by $0.69, misses on revs

  • Sanmina ( SANM 0.00% ) misses by $0.11, misses on revs; guides Q1 EPS below two analyst estimate, revs below two analyst estimate

  • Scholar Rock ( SRRK 0.00% ) misses by $0.03

  • ShockWave Medical ( SWAV 0.00% ) beats by $0.14, reports revs in-line; reaffirms FY23 revs guidance

  • Skyward Specialty Insurance Group ( SKWD 0.00% ) beats by $0.29, beats on gross written premiums

  • SmartRent ( SMRT â–¾ 2.63% ) reports EPS in-line, misses on revs; guides Q4 revs below consensus; guides FY23 revs below consensus

  • Squarespace ( SQSP â–´ 0.60% ) reports Q3 (Sep) results, beats on revs; guides Q4 revs above consensus

  • StepStone Group ( STEP 0.00% ) misses by $0.02, misses on revs

  • Sunstone Hotel ( SHO â–¾ 2.04% ) beats by $0.03, beats on revs; guides Q4 FFO below consensus

  • Talos Energy ( TALO â–¾ 5.43% ) misses by $0.04, reports revs in-line

  • Tanger Factory ( SKT â–¾ 1.46% ) beats by $0.02, beats on revs; guides FY23 FFO in-line; Steven B. Tanger transitioning to Non-Executive Chair

  • TaskUs ( TASK 0.00% ) beats by $0.03, beats on revs; guides Q4 revs above consensus

  • Teradata ( TDC â–´ 1.03% ) reports EPS in-line, revs in-line; guides Q4 EPS above consensus; reaffirms FY23 revs guidance

  • Thoughtworks ( TWKS 0.00% ) beats by $0.01, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • TransMedics Group ( TMDX 0.00% ) reports Q3 (Sep) results, beats on revs; guides FY23 revs above consensus

  • TripAdvisor ( TRIP 0.00% ) beats by $0.05, beats on revs

  • Uber ( UBER â–´ 0.82% ) beats by $0.04, misses on revs

  • Triumph Group ( TGI â–¾ 2.35% ) beats by $0.02, beats on revs; raises FY24 revs mostly above consensus

  • UBS AG ( UBS â–¾ 0.49% ) misses by $0.31; beats on revs

  • Unisys ( UIS â–¾ 0.34% ) beats by $0.19, beats on revs, raises FY23 revenue growth guidance

  • Valaris ( VAL â–¾ 3.14% ) misses by $0.01; misses on revs

  • Vaxcyte ( PCVX 0.00% ) misses by $0.07, no revenue

  • Veeco Instruments ( VECO 0.00% ) beats by $0.16, beats on revs; guides Q4 EPS in-line, revs in-line

  • Vertex Pharma ( VRTX 0.00% ) beats by $0.16, reports revs in-line; raises FY23 revs guidance, still doesn't meet consensus

  • Verve Therapeutics ( VERV 0.00% ) beats by $0.18, beats on revs

  • Vimeo ( VMEO 0.00% ) beats by $0.09, beats on revs; guides Q4 revs in-line

  • Viper Energy Partners ( VNOM 0.00% ) beats by $0.63, beats on revs, increases FY23 average daily production guidance

  • Vivid Seats ( SEAT 0.00% ) sees Q3 revenue of $188.1 mln vs. $153.9 mln FactSet consensus; raises FY23 revenues to $685.0-705.0 million from $630.0-650 mln vs. $643.1 mln FactSet consensus ; sees FY24 revs of $810-840 mln vs. $690.1 mln FactSet consensus

  • Waters ( WA T) beats by $0.29, misses on revs; guides FY23 EPS below consensus, revs below consensus

  • Zimmer Biomet ( ZBH â–´ 0.51% ) beats by $0.05, reports revs in-line; reaffirms FY23 EPS guidance, guides FY23 revs below consensus

News:

  • Israeli Prime Minister Benjamin Netanyahu says there will be no ceasefire without release of hostages. He also indicated Israel will have a role to play in Gaza for an "indefinite period", according to ABC News

  • Minneapolis Fed President Neel Kashkari (voting FOMC member) says in interview that he is not convinced rate hikes are over, according to the Wall Street Journal

  • Adaptive Biotechnologies ( ADPT 0.00% ) announces a multi-year, global translational collaboration with BeiGene (BGNE) to assess minimal residual disease using clonoSEQ assay technology across the company's pipeline of treatments for patients with lymphoid malignancies

  • Arbutus Biopharma ( ABUS 0.00% ) announces that William Collier will retire from his position as the Company's President and Chief Executive Officer, and as a member of the Board of Directors, at the end of 2023

  • Ballard Power ( BLDP 0.00% ) receives follow-on order for 2.4 MW of Ballard fuel cell engines

  • Baidu ( BIDU 0.00% ) places artificial intelligence chip order with Huawei instead of Nvidia (NVDA), according to Reuters

  • Celanese ( CE â–¾ 0.77% ) names Scott Richardson COO; names Chuck Kyrish CFO; both appointments effective November 8

  • Cenovus Energy ( CVE â–¾ 1.67% ) has renewed its share buyback program, plans to purchase up to 133,160,021 shares

  • CNH Industrial ( CNHI â–¾ 2.07% ): Board approves new $1 bln share buyback program

  • Genera Motors ( GM â–¾ 2.22% ) will halt production of Cruise driverless van, according to Reuters

  • Gilead ( GILD 0.00% ) and Arcus (RCUS) announce new data showing encouraging clinical activity of Anti-TIGIT domvanalimab-containing regimen as first-line treatment for upper GI Cancers

  • Grupo Aeroportuario Del Sureste ( ASR â–´ 2.58% ) announces that passenger traffic for October 2023 reached a total of 5.4 million passengers, representing a decrease of 0.4% compared to October 2022

  • Hims & Hers Health ( HIMS â–¾ 3.09% ) announces $50 million share repurchase program authorization

  • Ingredion ( INGR â–¾ 0.28% ) to realign its business to better serve customers and enhance clarity for financial stakeholders

  • Intel ( INTC 0.00% ) ends plans to expand chip operations in Vietnam, according to Reuters

  • Intel ( INTC 0.00% ) could get billions in government funding for defense chip facilities, according to the Wall Street Journal

  • Intl Flavors ( IFF â–¾ 0.51% ) announces the continuation of the cooperation agreement with Icahn Capital LP and its affiliates

  • Jazz Pharma ( JAZZ 0.00% ) announces a five-year strategic research collaboration agreement to evaluate zanidatamab, Jazz's investigational HER2-targeted bispecific antibody, in multiple HER2-expressing cancers

  • Kratos Defense and Security ( KTOS 0.00% ) awarded $579 mln U.S. Air Force contract

  • Leonardo DRS ( DRS 0.00% ) awarded more than $134 million production order for family of weapon sights

  • Lucid Group ( LCID 0.00% ) to integrate the North American Charging Standard into future vehicles by 2025; announcing all vehicles built with current Combined Charging System able to charge at Tesla (TSLA) Supercharger network using adapter in 2025

  • Meta ( META 0.00% ) banned political advertisers from using generative artificial intelligence tools, according to Reuters

  • Metropolitan Bank ( MCB â–¾ 0.24% ) promotes Daniel Dougherty to CFO, effective Nov 6 following the resignation of Greg Sigrist on October 31

  • Morgan Stanley ( MS â–¾ 0.45% ) outgoing CEO James Gorman will also step down as Chairman next year, according to Bloomberg

  • Stellantis ( STLA â–¾ 2.78% ) introduces all-new 2025 Ram 1500 Ramcharger unveiled with class-shattering unlimited battery-electric range

  • StepStone Group ( STEP 0.00% ) appoints Chief Accounting Officer David Park as CFO effective January 1, 2024

  • Ventyx Biosciences ( VTYX 0.00% ) announced results from the Phase 2 trial of VTX958 in patients with moderate to severe plaque psoriasis, did not meet the internal target to support further development of VTX958 in psoriasis

  • VMware ( VMW â–´ 1.93% ) and Google (GOOG) Cloud announce planned PostgreSQL-compatible Database Solution for traditional and generative AI applications on VMware Cloud, among other updates

  • WeWork ( WE â–¾ 24.73% ) filed for protection under Chapter 11 of the U.S. Bankruptcy Code

M&A:

  • Capri Holdings ( CPRI â–¾ 0.76% ) and Tapestry (TPR) receive request for additional info from FTC related to its review of the two companies' previously announced transaction

  • Crescent Point Energy ( CPG â–¾ 2.56% ) enters into agreement to acquire Hammerhead Energy (HHRS) (halted) for ~$2.5 bln including approximately $455 million in assumed net debt, consisting of cash and common shares of the Co

  • I-80 Gold Corp ( IAUX â–¾ 8.22% ) enters non-binding term sheet to sell minority interest in Ruby Hill Property in Nevada

  • J.M. Smucker ( SJM â–¾ 0.56% ) extends offer to acquire Hostess Brands (TWNK) by one day

  • Kinder Morgan ( KMI â–¾ 1.19% ) announces that it has agreed to acquire NextEra Energy (NEE) Partner's South Texas assets, STX Midstream, for $1.815 billion

  • MAXIMUS ( MMS â–¾ 0.19% ) completes the divestiture of employment services operations in Italy, Singapore, and Canada

  • Snap-On ( SNA â–¾ 0.70% ) announced that it acquired Mountz for ~$40 mln in cash on November 1, 2023

  • Telefonica S.A. ( TEF â–¾ 0.50% ) subsidiary makes offer for shares representing approximately up to 28.19% of the share capital and the voting rights of Telefnica Deutschland Holding (TELDF)

  • Vivid Seats ( SEAT 0.00% ) announces its acquisition of Vegas.com, in a cash and stock transaction valued at ~$240 mln

Syndicate:

  • American Electric ( AEP 0.00% ) files mixed shelf securities offering

  • Aura Biosciences ( AURA 0.00% ) prices offering of 11.0 mln shares of common stock at $9.00 per share

  • Clearwater Analytics ( CWAN â–¾ 2.00% ) prices offering of 20.0 mln shares of common stock at $17.50 per share

  • Core & Main ( CNM â–¾ 2.04% ) announces secondary offering of 19 mln common shares and share repurchase

  • Crescent Point Energy ( CPG â–¾ 2.56% ) announces CDN$500 million bought deal offering of common shares

  • ESSA Pharma EPIX 0.00% ) enters into At-The-Market equity offering sales agreement

  • Knife River Corp. ( KNF â–´ 7.77% ) commences 5,142,383 common stock offering by selling stockholder MDU Resources Group

  • MacroGenics ( MGNX 0.00% ) files $300 mln mixed shelf securities offering

  • Splunk ( SPLK 0.00% ) files for 12,799,822 shares of common stock by selling shareholders

  • The Vita Coco Company ( COCO 0.00% ) announces secondary offering of 4 mln common stocks by Verlinvest Beverages SA

  • Vital Energy ( VTLE â–¾ 3.37% ) files for 8,277,106 shares of common stock by selling shareholders; also files for 1,402,258 shares of common stock by selling shareholder

  • Welltower ( WELL â–¾ 0.35% ) prices offering of 17.5 mln shares of common stock

IPOs:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • TMDX +40.4%, UIS +27%, AYX +17%, VMEO +13.4%, PAY +12.2%, PRAA +10.5%, TRIP +10.2%, CLVT +10.2%, ROVR +9.3%, SEAT +8.6%, CELH +8%, RNG +7.7%, TASK +7.7%, VECO +7.4%, DCGO +7.4%, MTTR +7.1%, HIMS +6.7%, BLDP +6.5%, QTRX +6.5%, IFF +6%, ATEC +4.8%, NEO +4.4%, SKWD +4.3%, AAON +4.1%, CBT +3.3%, TDC +3.2%, CTRA +3%, MGNX +2.9%, UBS +2.6%, ACMR +2.6%, IDYA +2.6%, VLRS +2.4%, KIDS +2.2%, HALO +2.1%, AMK +2%, DO +1.9%, FSK +1.8%, JELD +1.8%, STEP +1.6%, NEE +1.3%, FN +1.3%, O +1.2%, CRSP +1.1%, COHR +1.1%


  • Gapping down:

    • VTYX -73.5%, AMRC -22%, AURA -17.3%, EVCM -15.6%, SANM -11.9%, ALPN -10.7%, ATSG -9.7%, ADTN -9.1%, ERO -7.8%, SWAV -7.4%, CPG -5.9%, MMS -5.6%, MED -5.2%, COCO -4.9%, BATRA -4.8%, HNRG -4.6%, OLO -4.3%, OSCR -3.7%, CWAN -3.6%, DHT -2.6%, CXW -2.5%, WELL -2.4%, CPRI -2.3%, VRTX -2.3%, CNM -2%, ICHR -2%, ICUI -2%, AZPN -1.7%, AOSL -1.7%, CE -1.7%, VTLE -1.5%, EPIX -1.5%, OPK -1.5%, MYGN -1.5%, CG -1.5%, GT -1.4%, RCKT -1.4%, VAL -1.3%, GEO -1.1%, HL -1%, PAX -1%, TSLA -0.8%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

    • Appian (APPN) upgraded to Buy from Neutral at DA Davidson; tgt raised to $55

    • DigitalOcean (DOCN) upgraded to Buy from Sell at Goldman; tgt $33

    • Hess (HES) upgraded to Buy from Hold at Argus; tgt $171

    • HP Inc. (HPQ) upgraded to Buy from Hold at Edward Jones

    • MacroGenics (MGNX) upgraded to Buy from Neutral at Guggenheim; tgt $12

    • Monday.com (MNDY) upgraded to Buy from Neutral at DA Davidson; tgt $170

    • NatWest Group plc (NWG) upgraded to Outperform from Underperform at Exane BNP Paribas

    • Spirit Realty Capital (SRC) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $46

    • Ventas (VTR) upgraded to Outperform from Neutral at Wedbush; tgt raised to $51


  • Downgrades:

    • ADTRAN (ADTN) downgraded to Neutral from Buy at Rosenblatt; tgt lowered to $7

    • Ameresco (AMRC) downgraded to Mkt Perform from Outperform at William Blair

    • Codexis (CDXS) downgraded to Hold from Buy at The Benchmark Company

    • Eversource Energy (ES) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $65

    • FEMSA (FMX) downgraded to Market Perform from Outperform at Itau BBA; tgt $127

    • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Neutral from Buy at Seaport Research Partners

    • Kennedy Wilson (KW) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6

    • NorthWestern (NWE) downgraded to Neutral from Buy at Ladenburg Thalmann; tgt $51

    • Olo Inc. (OLO) downgraded to Mkt Perform from Outperform at William Blair

    • Peloton (PTON) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $4

    • RE/MAX Holdings (RMAX) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9

    • Sonos (SONO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $12

    • UDR (UDR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $34

    • Ventyx Biosciences (VTYX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $8

    • Ventyx Biosciences (VTYX) downgraded to Hold from Buy at Stifel; tgt $6

    • Zentalis Pharma (ZNTL) downgraded to Market Perform from Outperform at Leerink Partners; tgt $15


  • Others:

    • Accenture (ACN) initiated with a Neutral at UBS; tgt $333

    • Alight (ALIT) initiated with a Buy at UBS; tgt $10

    • ASGN Incorporated (ASGN) initiated with a Sell at UBS; tgt $72

    • Automatic Data (ADP) initiated with a Neutral at UBS; tgt $235

    • Birkenstock Holding Plc (BIRK) initiated with an Outperform at Evercore ISI; tgt $47

    • BridgeBio Pharma (BBIO) initiated with a Buy at Citigroup; tgt $42

    • Burlington Stores (BURL) initiated with an Outperform at Evercore ISI; tgt $150

    • Canada Goose (GOOS) initiated with an In-line at Evercore ISI; tgt $11

    • Ceridian HCM (CDAY) initiated with a Buy at UBS; tgt $87

    • Clearwater Analytics (CWAN) initiated with a Buy at UBS; tgt $24

    • Cognizant Tech (CTSH) initiated with a Neutral at UBS; tgt $70

    • Enfusion (ENFN) initiated with a Neutral at UBS; tgt $9

    • Ferrari (RACE) initiated with an Outperform at Evercore ISI; tgt $375

    • Foot Locker (FL) initiated with an In-line at Evercore ISI; tgt $23

    • Gap (GPS) initiated with an Outperform at Evercore ISI; tgt $17

    • GFL Environmental (GFL) initiated with an Outperform at TD Cowen; tgt $40

    • Granite Ridge Resources (GRNT) initiated with a Buy at BofA Securities; tgt $9

    • Home Depot (HD) initiated with a Sector Perform at RBC Capital Mkts; tgt $303

    • Intapp (INTA) initiated with a Buy at UBS; tgt $45

    • Iron Mountain (IRM) initiated with a Sell at UBS; tgt $44

    • Kohl's (KSS) initiated with an In-line at Evercore ISI; tgt $24

    • Lowe's (LOW) initiated with a Sector Perform at RBC Capital Mkts; tgt $194

    • lululemon athletica (LULU) initiated with an Outperform at Evercore ISI; tgt $475

    • Macy's (M) initiated with an In-line at Evercore ISI; tgt $13

    • New Oriental Education & Technology (EDU) initiated with an Overweight at Morgan Stanley; tgt $81

    • Newmont Goldcorp (NEM) resumed with an Outperform at BMO Capital Markets; tgt lowered to $58

    • NIKE (NKE) initiated with an Outperform at Evercore ISI; tgt $124

    • Nordstrom (JWN) initiated with an In-line at Evercore ISI; tgt $14

    • On (ONON) initiated with an Outperform at Evercore ISI; tgt $38

    • Paychex (PAYX) initiated with a Neutral at UBS; tgt $120

    • Paycom Software (PAYC) initiated with a Buy at UBS; tgt $235

    • Paycor (PYCR) initiated with a Neutral at UBS; tgt $20

    • Paylocity (PCTY) initiated with a Neutral at UBS; tgt $160

    • PVH (PVH) initiated with an Outperform at Evercore ISI; tgt $100

    • Rackspace Technology (RXT) initiated with a Neutral at UBS; tgt $1.40

    • Ralph Lauren (RL) initiated with an Outperform at Evercore ISI; tgt $130

    • Revolve Group (RVLV) initiated with an In-line at Evercore ISI; tgt $14

    • Robert Half (RHI) initiated with a Sell at UBS; tgt $60

    • Ross Stores (ROST) initiated with an Outperform at Evercore ISI; tgt $140

    • Savara (SVRA) initiated with a Buy at Guggenheim; tgt $7

    • SS&C Techs (SSNC) initiated with a Buy at UBS; tgt $72

    • TAL Education (TAL) initiated with an Overweight at Morgan Stanley; tgt $10.50

    • Tapestry (TPR) initiated with an In-line at Evercore ISI; tgt $30

    • Thomson Reuters (TRI) initiated with a Buy at UBS; tgt $153

    • TJX (TJX) initiated with an Outperform at Evercore ISI; tgt $105

    • TriNet Group (TNET) initiated with a Neutral at UBS; tgt $110

    • Ulta Beauty (ULTA) initiated with an Outperform at Evercore ISI; tgt $460

    • Under Armour (UAA) initiated with an In-line at Evercore ISI; tgt $8

    • V.F. Corp (VFC) initiated with an In-line at Evercore ISI; tgt $17

    • Victoria's Secret (VSCO) resumed with an In-line at Evercore ISI; tgt $20


Econ Data:

  • 08:30 ET: Trade Balance for Sept (Briefing.com Consensus -$60.1B; Prior -$58.3B)

  • 15:00 ET: Consumer Credit for Sept (Briefing.com Consensus $9.0B; Prior -$15.6B)

Earnings:

  • Monday (Nov 6)

    • Morning: AMG BNTX CEG DISH ERJ ENOV ES FRPT HGV KNF TGLS THS VVX

    • Afternoon: AAON ACVA ADTN AL ATSG AIN AOSL AYX AMRC AZPN AMK CBT CCCS CE CNO COHR CXW CTRA CXT DHT FANG WTRG EVCM FN FSK GT GH HALO HL HPK HIMS ICHR ICUI IFF JELD MTTR MED MWA MYGN NEO NXPI OLO OPK PAY PHIN PRAA O RVMD RNG ROVR RHP SANM SWAV STEP SNCY TALO SKT TASK TDC TMDX TRIP UIS VECO VRTX VMEO VNOM


  • Tuesday (Nov 7)

    • Morning: MASS ACMR AHCO APD BSY BLUE BCO CG CELH CHH CLVT CNHI DHI DDOG DK ELAN EMR EVRG EXPD FIS GEN GEO GFS GOGO HAIN HLNE INGR IMXI INSW KKR SWIM LCII LEV MSGE MLCO MRSN MFA NOVT OLPX PTEN PRGO PLNT PINC RYTM RXO SAGE SMRT SQSP SHO TGNA TWKS TPG TGI UBER WAT ZBH

    • During Market Hours: TVTX

    • Afternoon: ATEN AGTI AKAM AEL AMPL ANDE ANGI RCUS ARRY AXON BBAI BHF BMBL CARG CAVA CIVI COLL CRSR COTY CPNG CRCT CTOS CBAY DAR DVA DVN BROS EBAY ENVX EOLS EXFY EXR FNF FLYW GILD GMED GPRO GO GXO HRB HRT IAC IOSP INGN INSP INTA IPAR IOVA JKHY JRVR KVYO KVYO KD LZ LCID MNKD MRVI MQ MASI DOOR MRCY MOS MRC NHI OXY LPRO OSUR PR PETQ POWI PWSC PRI PRIM PGNY RXT METC RRR RIVN HOOD SHLS SNBR STE TOST USPH UPST UPWK VCYT VTRS VTEX WTI XNCR XPOF


  • Wednesday (Nov 8)

    • Morning: DIBS DDD ADNT ANIP AVDX BIGC BIIB CEVA GIB CRL CCO YOU EDR EVRI EVGO FSR GTN HLMN HLLY IBP BEKE K KRNT LFST LITE MCFT MIDD NFE NYT NXST ODP PAYO PFGC PLTK RL REYN RBLX SPNS SEAS FOUR SPTN SPHR STWD STER SHOO TBLA TEVA TPB UAA VCEL VSH WRBY WBD WOW KLG XPEL

    • During Market Hours: AEE

    • Afternoon: ME AFRM BIRD AMC APP ASH ATO BGS BTG BYND BE WHD CDRE CDLX CDNA CERT CDE CTVA CYRX CUTR APPS DIOD DUOL ENS ENV FICO FLT GNK G DNA HP HUBS HBM INFN CART IONQ JXN JAMF JAZZ KGC KGS LGND LPSN RAMP LAZR LYFT MGNI MGM NTRA ORA PYCR PRA PUBM RGNX RVNC RKLB SILK STR SOVO STKL SUPN TTWO TTGT MODG COOK TTEC TWLO VSAT SPCE DIS XENE ZD ZIP


  • Thursday (Nov 9)

    • Morning: MT AZN BDX CCOI COMM DGII EPC EVBG FA FVRR FREY GDRX GRAB HBI HIMX NTLA IRWD DNUT LI MTSI EYE NOMD NVMI NVAX OTLY RDNT RBC SCSC STNG SHCR SONY SLVM TPR TDG USFD UTZ VVV VERX WD WB WRK WIX WWW XMTR YETI

    • Afternoon: TWOU ALRM ARLO AVPT BW BBDC BLNK CPRI CLNE CLFD LAW DV DOCS FLO GDOT HOLX ILMN INDI LNW MTD MODN NVTS NWSA ONTO ORGN ONL PAR PLUG PRPL RPAY SVV SOUN SYNA TTD TMCI U VRRM VZIO VUZI WEST WPM


  • Friday (Nov 10)

    • Morning: STNE

    • Afternoon: BGNE



Asia & Europe detail:

Asia: Nikkei -1.3%, Hang Seng -1.7%, Shanghai Composite UNCH

Equity indices in the Asia-Pacific region ended Tuesday on a lower note. China's Commerce Ministry issued new rules governing exports of rare earths. China Securities News speculated that the People's Bank of China will cut the reserve requirement ratio or lower the medium term lending facility rate again this year. China's Vice Premier He will meet with Treasury Secretary Yellen in San Francisco on Thursday and Friday. The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, as expected. However, the RBA changed some of the language in its policy statement, fueling speculation that additional hikes are not being planned at this time. New Zealand's Treasury noted that key economic indicators point to an ongoing slowdown.

  • In economic data:

    • Japan's September Household Spending 0.3% m/m (expected -0.4%; last 3.9%); -2.8% yr/yr (expected -2.7%; last -2.5%). September Overall Wage Income 1.2% yr/yr (last 0.8%)

    • China's October trade surplus $56.53 bln (expected surplus of $82.00 bln; last surplus of $77.71 bln). October Imports 3.0% yr/yr (expected -4.8%; last -6.2%) and Exports -6.4% yr/yr (expected -3.3%; last -6.2%)


---Equity Markets---

  • Japan's Nikkei: -1.3%

  • Hong Kong's Hang Seng: -1.7%

  • China's Shanghai Composite: UNCH

  • India's Sensex: UNCH

  • South Korea's Kospi: -2.3%

  • Australia's ASX All Ordinaries: -0.2%

---FX---

  • USD/JPY: +0.2% to 150.40

  • USD/CNH: +0.2% to 7.2893

  • USD/INR: UNCH at 83.21

Europe: DAX -0.3%, FTSE -0.1%, CAC -0.5%

Major European indices trade on a lower note. Germany's Construction PMI for October pointed to the fastest pace of contraction in the sector since April 2020. House prices in the U.K. recorded their first month-over-month increase since March. Meanwhile, British homebuilder Persimmon raised its completions forecast for the year due to falling average selling prices. UBS beat operating profit expectations for Q3. French Finance Minister Le Maire said that the inflationary crisis is now in the past.

  • In economic data:

    • Eurozone's September PPI 0.5% m/m, as expected (last 0.7%); -12.4% yr/yr (expected -12.5%; last -11.5%). October Construction PMI 42.7 (last 43.6)

    • Germany's October Construction PMI 38.3 (last 39.3). September Industrial Production -1.4% m/m (expected -0.1%; last -0.1%); -3.9% yr/yr (last -1.5%)

    • U.K.'s October Halifax House Price Index 1.1% m/m (expected 0.2%; last -0.3%); -3.2% yr/yr (last -4.5%)

    • France's October Construction PMI 41.0 (last 43.7)

    • Italy's October Construction PMI 51.8 (last 49.8)

    • Spain's September Industrial Production -1.4% yr/yr (expected -2.9%; last -3.3%)

    • Swiss October Unemployment Rate 2.1%, as expected (last 2.1%)


---Equity Markets---

  • STOXX Europe 600: -0.3%

  • Germany's DAX: -0.3%

  • U.K.'s FTSE 100: -0.1%

  • France's CAC 40: -0.5%

  • Italy's FTSE MIB: -0.3%

  • Spain's IBEX 35: -0.2%

---FX---

  • EUR/USD: -0.3% to 1.0683

  • GBP/USD: -0.4% to 1.2297

  • USD/CHF: +0.2% to 0.9005

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