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07/12/23 Briefing



The S&P 500 futures are up four points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 41 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 44 points and are trading 0.1% below fair value.

Equity futures indicate a flattish open following yesterday's retreat.

Treasury yields are little changed from yesterday's settlement levels. The 2-yr note yield is up one basis point to 4.62% and the 10-yr note yield is up three basis points to 4.15%.

Ongoing speculation about a quicker than expected end to negative rates in Japan sent the yen higher against the dollar (USD/JPY -1.5% to 145.10) to a level not seen since early September.

In other news, Venezuela has renewed its push to annex a portion of oil-rich Guyana, according to The Washington Post. WTI crude oil futures are up 0.8% from yesterday's settlement at $69.90/bbl.

Today's economic calendar features:

  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 223,000; prior 218,000) and Continuing Claims (prior 1.927 mln)

  • 10:00 ET: October Wholesale Inventories (Briefing.com consensus -0.2%; prior 0.2%)

  • 10:30 ET: Weekly natural gas inventories (prior +10 bcf)

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

In corporate news:

  • AbbVie (ABBV 145.70, -0.68, -0.5%): confirms it will acquire Cerevel Therapeutics (CERE) for $45.00/share in cash; total equity value of approximately $8.7 bln; to be accretive to EPS in 2030

  • C3.ai (AI 25.86, -3.30, -11.3%): beats by $0.05, misses on revs; guides Q3 revs in-line; guides FY24 revs in-line

  • JetBlue Airways (JBLU 5.08, +0.35, +7.4%): raises Q4 guidance

  • GameStop (GME 13.68, -1.16, -7.8%): beats by $0.08, misses on revs

  • Braze (BRZE 60.78, +4.66, +8.3%): beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • The Duckhorn Portfolio (NAPA 9.30, -0.91, -8.9%): misses by $0.01, misses on revs; guides FY24 EPS in-line, revs below consensus

  • Chewy (CHWY 17.08, -2.27, -11.7%): misses by $0.02, reports revs in-line; guides Q4 revs below consensus; guides FY24 revs below consensus

  • Veeva Systems (VEEV 173.99, -4.40, -2.5%): beats by $0.05, reports revs in-line; guides Q4 EPS above consensus, revs below consensus; reaffirms FY25 revs guidance

  • Dollar General (DG 138.25, +4.33, +3.2%): beats by $0.06, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a lower note. Japan's Nikkei: -1.8%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.1%, India's Sensex: -0.2%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: UNCH.

    • In economic data:

      • China's November trade surplus $68.39 bln (expected surplus of $58.00 bln; last surplus of $56.53 bln). November Imports -0.6% yr/yr (expected 3.3%; last 3.0%) and Exports 0.5% yr/yr (expected -1.1%; last -6.4%)

      • Japan's October Leading Index 108.7 (expected 108.2; last 109.3) and Coincident Indicator 0.2% m/m (last 0.3%)

      • Australia's October Building Approvals 7.5% m/m, as expected (last -4.6%); -6.1% yr/yr, as expected (last -20.6%). October trade surplus AUD7.129 bln (expected surplus of AUD7.500 bln; last surplus of AUD6.184 bln). October Imports -1.9% m/m (last 8.0%) and Exports 0.4% m/m (last -1.8%)


  • In news:

    • China reported a larger than expected trade surplus for November, but domestic demand appeared weak as imports fell 0.6% yr/yr against expectations for growth.

    • Japan sold 30-yr debt to weak demand with the sale drawing the lowest bid-to-cover ratio since 2015.

    • Meanwhile, Japan's Ministry of Finance noted that primary dealers have suggested a reduction to 20-yr JGB sales.

    • Separately, ongoing speculation about a quicker than expected end to negative rates in Japan sent the yen higher by nearly 1.5% against the dollar to a level not seen since early September.

    • Standard & Poor's said that it expects a soft landing for the Australian economy, warranting a continuation of the country's AAA rating.

    • The Reserve Bank of Australia appointed a new chief economist and assistant governor.



  • Major European indices trade near their flat lines while Spain's IBEX (-1.1%) lags amid weakness in financials. STOXX Europe 600: -0.2%, Germany's DAX: -0.2%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -1.1%.

    • In economic data:

      • Eurozone's Q3 GDP -0.1% qtr/qtr, as expected (last 0.1%); 0.0% yr/yr (expected 0.1%; last 0.6%). Q3 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.1%); 1.3% yr/yr (expected 1.4%; last 1.3%)

      • Germany's October Industrial Production -0.4% m/m (expected 0.2%; last -1.3%); -3.4% yr/yr (last -3.8%)

      • U.K.'s November Halifax House Price Index 0.5% m/m (expected 0.3%; last 1.2%); -1.0% yr/yr (last -3.1%)

      • France's October trade deficit EUR8.6 bln (expected deficit of EUR8.5 bln; last deficit of EUR8.9 bln)

      • Italy's October Industrial Production -0.2% m/m (expected -0.3%; last 0.1%); -1.1% yr/yr (last -2.0%). October Retail Sales 0.4% m/m (expected 0.1%; last -0.4%); 0.3% yr/yr (last 1.2%)

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


  • In news:

    • Eurozone's Q3 GDP was left unrevised at -0.1% qtr/qtr.

    • Airline stocks are among regional laggards after JPMorgan downgraded several carriers.

    • European Central Bank policymaker Villeroy de Galhau said that disinflation is occurring quicker than expected, which could invite rate cuts in 2024.

    • British Chamber of Commerce expects domestic growth of 0.6% in 2023 followed by a 0.4% contraction in 2024.



U.S. equity futures:

  • S&P 500 Futures +3 @ 4,552

  • DJIA Futures: -32 @ 36,022

  • Nasdaq 100 Futures: +39 @ 15,827

Overseas:

  • Europe: DAX -0.2%, FTSE UNCH, CAC -0.1%

  • Asia: Nikkei -1.8%, Hang Seng -0.7%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil +0.54 @ 69.92

  • Nat Gas -0.052 @ 2.517

  • Gold +1.95 @ 2049.85

  • Silver +0.030 @ 24.258

  • Copper +0.0275 @ 3.7620

Earnings/Guidance:

  • Argan ( AGX 0.36% ) misses by $0.46, beats on revs

  • Braze ( BRZE 0.00% ) beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Broadridge Financial ( BR 1.52% ) reaffirms FY24 EPS guidance and provides plan for growth at Investor Day

  • C3.ai ( AI 2.96% ) beats by $0.05, misses on revs; guides Q3 revs in-line; guides FY24 revs in-line

  • ChargePoint ( CHPT 3.02% ) reports Q3 (Oct) results, misses on revs

  • Chevron ( CVX 0.23% ) announces an expected organic capital expenditure range of $15.5 to $16.5 billion for consolidated subsidiaries (capex) and an affiliate capital expenditure (affiliate capex) budget of approximately $3 billion for 2024

  • Chewy ( CHWY 5.05% ) misses by $0.02, reports revs in-line; guides Q4 revs below consensus; guides FY24 revs below consensus

  • Ciena ( CIEN 0.02% ) beats by $0.06, beats on revs

  • Couchbase ( BASE 0.00% ) beats by $0.10, beats on revs; guides JanQ revs in-line

  • Dollar General ( DG 0.40% ) beats by $0.06, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance

  • Forward Air ( FWRD 0.00% ) provides mid-quarter update on fourth quarter 2023 performance: Weight per shipment increased 11.0%, revenue per shipment excluding fuel increased 2.6% and pounds per day increased 5.5%, all over the same period last year

  • GameStop ( GME 0.47% ) beats by $0.08, misses on revs

  • GMS ( GMS 1.05% ) beats by $0.04, beats on revs

  • Greif ( GEF 0.78% ) beats by $0.26, misses on revs; provides FY24 financial targets

  • JetBlue Airways ( JBLU 0.00% ) raises Q4 guidance

  • Oxford Industries ( OXM 3.95% ) beats by $0.05, reports revs in-line; guides Q4 EPS below consensus, revs mostly above consensus; guides FY24 EPS below consensus, revs mostly above consensus

  • Semtech ( SMTC 0.00% ) beats by $0.17, reports revs in-line; guides Q4 EPS in-line, revs below consensus

  • Sportsman's Warehouse ( SPWH 0.00% ) beats by $0.11, beats on revs, comps of -11.4%; guides Q4 EPS below consensus, revs in-line, comps of negative 6-11%

  • Sprinklr ( CXM 0.18% ) beats by $0.05, beats on revs; guides JanQ EPS in-line, revs in-line

  • The Duckhorn Portfolio ( NAPA 0.49% ) misses by $0.01, misses on revs; guides FY24 EPS in-line, revs below consensus

  • Veeva Systems ( VEEV 0.24% ) beats by $0.05, reports revs in-line; guides Q4 EPS above consensus, revs below consensus; reaffirms FY25 revs guidance

  • Verint Systems ( VRNT 0.00% ) beats by $0.08, beats on revs; guides FY24 EPS above consensus, revs in-line

News:

  • Israeli military kills five Hamas military leaders, according to the New York Times

  • Senate bill to provide Ukraine with additional funding fails to pass because Republicans wanted changes to border security policy, according to the New York Times

  • White House supports plan to claw back some patents for certain higher priced medicines, according to Stat News

  • Venezuela has renewed push to annex Guyana, according to Washington Post

  • 3D Systems ( DDD 2.12% ) enters into separate privately negotiated repurchase agreements with a limited number of holders of its 0% Convertible Senior Notes due 2026 to repurchase approximately $135 mln aggregate principal amount of the Notes at a 26% discount to par value

  • AerSale ( ASLE 0.00% ) receives Boeing 737NG Supplemental Type Certificate for its Enhanced Flight Vision System 'AerAware'

  • Alibaba ( BABA 1.23% ) online shopping grip is getting weaker, according to the Wall Street Journal

  • Amazon ( AMZN 0.02% ) CEO Andy Jassy says customers are trading down, CNBC

  • Anixa Biosciences ( ANIX 0.00% ) and Cleveland Clinic Present Positive New Data from Phase 1 Study of Breast Cancer Vaccine

  • Artivion ( AORT 0.45% ) appoints Lance Berry as CFO, announces retirement of CFO Ashley Lee, effective Dec 4

  • Becton Dickinson ( BDX 0.06% ) receives FDA 510(k) clearance for potentially transformative fingertip blood collection device

  • BHP Group ( BHP 0.70% ) CFO and executive leadership team update; Vandita Pant has been appointed Chief Financial Officer

  • Bristol-Myers Squibb ( BMY 0.70% ) increases quarterly cash dividend 5.3% to $0.60/share from $0.57/share

  • Bristol-Myers ( BMY 0.70% ) announces additional $3 billion share repurchase authorization

  • Bristol-Myers ( BMY 0.70% ) announces Phase 3 CheckMate -8HW Trial Evaluating Opdivo (nivolumab) plus Yervoy (ipilimumab) compared to chemotherapy in microsatellite instability-high or mismatch repair deficient metastatic colorectal cancer meets primary endpoint

  • Canadian Solar's ( CSIQ 0.00% ) CSI Solar Co. awarded by Copenhagen Infrastructure Partners Flagship Funds, a supply and integration contract for a 500 MW / 1,170 MWh DC of energy storage solutions

  • CEMEX S.A. ( CX 0.58% ) announced that it agreed to refinance its bilateral loan extending the maturity of the Term Loan to 2028

  • Centrus Energy ( LEU 1.74% ) and Lightbridge (LTBR) enter into a contract to conduct a FEED study for a Lightbridge pilot fuel fabrication facility in Piketon, Ohio

  • Chewy ( CHWY 5.05% ) appoints David Reeder as CFO, effective Feb 14

  • CME Group ( CME 0.51% ) extends employment agreement for Chairman & Chief Executive Officer Terry Duffy through 2025

  • CME Group ( CME 0.51% ) declared its annual variable dividend amounting to $5.25 per share (previous annual variable dividend amounted to $4.50 per share)

  • COMPASS Pathways ( CMPS 0.00% ) appoints Teri Loxam as Chief Financial Officer

  • Crown Castle ( CCI 0.73% ): Elliott Sends Letter to the Board of Crown Castle Inc. Summarizing Feedback Supportive of Change

  • Cytokinetics ( CYTK 0.00% ) presents results from COURAGE-ALS at the 34th International Symposium on ALS/MND

  • Easterly Government Properties ( DEA 0.41% ) and CEO William C. Trimble, III entered into a Transition and Separation Agreement

  • Eastman Chemical ( EMN 0.06% ) increases quarterly cash dividend to $0.81/share from $0.79/share

  • Farfetch ( FTCH 1.69% ) director J. Michael Evans resigned from the Board, effective November 30

  • Fisker Chairman ( FSR 10.19% ) and CEO Henrik Fisker makes statement

  • Ford Motor ( F 0.85% ) and Resideo (REZI) launch 'ev-home power partnership'

  • Garmin ( GRMN 0.72% ) announces launch of Tacx NEO 3M, its new indoor smart trainer

  • Ginkgo Bioworks ( DNA 0.00% ) enters into non-binding MOU with Synplogen to advance global DNA manufacturing and gene therapy platform services within the Japanese market

  • Google ( GOOG 0.00% ) aiming to introduce generative artificial intelligence models for mobile phones, according to Financial Times

  • Grupo Aeroportuario Del Sureste ( ASR 2.54% ) announces passenger traffic for November increased 1.6% yr/yr to 5.8 mln passengers

  • HIVE Digital Technologies ( HIVE 0.00% ) provides November production update

  • HUTCHMED ( HCM 0.00% ) announces disposal of interest in consumer products businesses

  • IES Holdings ( IESC 0.00% ) promotes Matthew Simmes to the position of President and Chief Operating Officer of the Company

  • Kennedy Wilson ( KW 0.08% ) continues on its strategic asset recycling plan, reducing costs by $15-20 mln over 18 months; partner Fairfax Financial Holdings increases first mortgage commitment within its debt investment platform to $10 bln

  • KKR ( KKR 0.94% ) wants to raise $7 bln for global climate fund, according to Reuters

  • Kymera Therapeutics ( KYMR 0.00% ) Announces First Patient Dosed in Phase 2 Atopic Dermatitis Clinical Trial of KT-474 (SAR444656), a First-in-Class, Investigational IRAK4 Degrader, Generating a $15 Million Payment from Sanofi

  • Lion Electric ( LEV 1.18% ) announced the successful final certification for its medium duty battery pack, the LionBattery MD, a lithium-ion battery pack specifically designed for the Company's medium duty trucks and school buses

  • Madison Square Garden ( MSG ) could lose liquor license, according to the New York Post

  • McDonald's ( MCD 0.11% ) starting testing CosMc's, a new small-format, beverage-led concept

  • MediciNova ( MNOV 0.00% ) receives a notice of decision to grant for a new patent covering MN-166 (ibudilast) for the treatment of progressive MS in Europe

  • Merck ( MRK 0.56% ) announces findings from phase 2 keyvibe-002 trial evaluating an investigational coformulation of vibostolimab and pembrolizumab in previously treated patients with metastatic non-small cell lung cancer

  • Merck ( MRK 0.56% ) announces KEYLYNK-008 trial evaluating KEYTRUDA plus LYNPARZA (olaparib) for patients with metastatic squamous non-small cell lung cancer to stop for futility

  • Meta ( META 0.00% ) begins encrypting messages, according to the Wall Street Journal

  • Meta ( META 0.00% ) and Microsoft (MSFT) will purchase AMD (AMD) AI chip, according to CNBC

  • N-able ( NABL 1.14% ) announces enhancements to its RMM platform, including advanced management capabilities for iOS and macOS devices

  • NIKE ( NKE 0.61% ) and Tiger Woods could be headed for breakup, according to Sports Illustrated

  • Nio ( NIO 4.31% ) considers additional job cuts, according to Bloomberg

  • Northrop Grumman ( NOC 0.77% ) authorizes new $2.5 bln share repurchase authorization

  • Oncolytics Biotech ( ONCY 0.00% ) and SOLTI Present Positive Translational Data at SABCS

  • Option Care Health ( OPCH 0.00% ) announces increase to its share repurchase authorization from $250 mln to $500 mln; the program has no specified expiration date

  • Petrobras ( PBR 1.57% ) receives notification of the Federal Court of Accounts' decision about the changes to its Bylaws

  • PureTech Health plc ( PRTC 0.00% ) presents data from phase 1 trial of lyt-200 targeting galectin-9 in solid tumors at the ESMO Immuno-Oncology Congress 2023

  • Regeneron Pharma ( REGN 0.00% ): Updated Linvoseltamab Pivotal Data Demonstrated Strong Rates and Depth of Response in Patients with Heavily Pre-Treated Multiple Myeloma

  • Repligen ( RGEN 0.00% ) announces private convertible transaction of $600 million principal amount of 1.00% convertible senior notes due 2028 through exchange and new subscription agreements

  • Robinhood Markets ( HOOD 0.00% ) launches crypto trading in the European Union with customers earning bitcoin back on every trade

  • Sanofi ( SNY 0.00% ) updates pipeline to accelerate growth driven by record number of potential blockbuster launches

  • Sanofi ( SNY 0.00% ) reports Sarclisa Phase 3 trial met primary endpoint of progression free survival in patients with newly diagnosed multiple myeloma not eligible for transplant

  • Sunstone Hotel ( SHO 0.91% ) adds $0.06 to current Q4 dividend

  • Talos Energy ( TALO 4.96% ) provides operational updates

  • Tesla ( TSLA 0.00% ): PensionDanmark to sell Tesla shares, according to Reuters

  • Western Digital ( WDC 0.00% ) aiming to increase NAND prices by 55%, according to Digitimes

M&A:

  • AbbVie ( ABBV 1.25% ) confirms it will acquire Cerevel Therapeutics (CERE) for $45.00/share in cash; total equity value of approximately $8.7 bln; to be accretive to EPS in 2030

  • Canadian Nat'l Rail ( CNI 0.51% ) acquires Iowa Northern Railway which operates approximately 275 track miles in Iowa connecting to CN's U.S. rail network; financial terms were not disclosed

  • LianBio ( LIAN 0.00% ) decides not to pursue unsolicited proposal from Concentra Biosciences to acquire 100% of the equity of LianBio for $4.30 per share in cash

  • Medtronic ( MDT 0.28% ) delivers notice to EOFlow that it exercised its right to terminate previously announced agreements to acquire EOFlow; does not expect termination fee; will not impact FY24 adjusted EPS

  • Patria Investments ( PAX 0.00% ) signs agreement to acquire Credit Suisse's real estate business in Brazil for ~$130 mln

  • Vanda Pharma ( VNDA 0.00% ) acquires U.S. and Canadian rights to PONVORY (ponesimod) from Johnson & Johnson's (JNJ) Actelion Pharmaceuticals Ltd.

  • Woodside Energy Group ( WDS 0.77% ) issues response to media speculation; confirms it is in discussions regarding a potential merger with Santos Ltd.

Syndicate:

  • 89bio ( ENTB ) announces upsized pricing of $150.0 million public offering of common stock and pre-funded warrants

  • Beacon Roofing Supply ( BECN 0.00% ) prices secondary offering of 5 million shares of common stock

  • Core & Main ( CNM 2.03% ) announces secondary offering of 15 million shares of its Class A common stock by certain selling stockholders

  • HCI Group ( HCI 1.67% ) prices offering of 1.0 mln shares of common stock at $78.00 per share

  • Nikola Corporation ( NKLA 0.00% ) announces proposed offerings of $100 mln of common stock and $200 mln of Convertible Senior Notes due 2026

  • Vivid Seats ( SEAT 0.00% ) files for 18,500,000 shares of common stock by selling shareholder

  • Wave Life Sciences ( WVE 0.00% ) prices $100 million public offering of ordinary shares

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

    • ASLE +15.6%, CERE +13.1%, SMTC +11.2%, VRNT +10.7%, BRZE +7.9%, MNOV +4.2%, AORT +3.8%, DNA +3.8%, FSR +2.5%, ASR +2%, BASE +1.9%, FWRD +1.7%, TRN +1.7%, BHP +1.3%, PAX +1.2%, WDS +1%, SNY +0.8%, OPCH +0.7%


  • Gapping down:

    • CXM -24.8%, WVE -22.6%, NKLA -15.7%, NAPA -11.9%, SEAT -10.9%, ANIX -9.9%, CHWY -9.9%, AI -9.6%, SPWH -8.3%, GME -7.2%, AGX -6.3%, GEF -6%, ETNB -5.8%, CNM -4.7%, HCI -3.8%, OXM -3.5%, VEEV -3%, HIVE -2.6%, PYCR -2.5%, CHPT -2.4%, DDD -1.6%, CMPS -1.6%


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

  • Upgrades

    • Biogen (BIIB) upgraded to Outperform from Mkt Perform at Raymond James; tgt $283

    • Bioventus (BVS) upgraded to Buy from Hold at Canaccord Genuity; tgt $7

    • Datadog (DDOG) upgraded to Buy from Hold at Stifel; tgt raised to $140

    • Equinor (EQNR) upgraded to Buy from Neutral at BofA Securities

    • J.B. Hunt Transport (JBHT) upgraded to Neutral from Sell at UBS; tgt $205

    • Prada (PRDSY) upgraded to Outperform from Neutral at Exane BNP Paribas

    • Qiagen (QGEN) upgraded to Buy from Neutral at Goldman; tgt $50

    • Schneider National (SNDR) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $25

    • Sphere Entertainment Co. (SPHR) upgraded to Buy from Neutral at Seaport Research Partners; tgt $38

    • VistaGen (VTGN) upgraded to Buy from Hold at Jefferies; tgt $15


  • Downgrades:

    • Danaher (DHR) downgraded to Neutral from Buy at Goldman; tgt lowered to $205

    • Deutsche Lufthansa AG (DLAKY) downgraded to Underweight from Overweight at JP Morgan

    • The Duckhorn Portfolio (NAPA) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $11

    • FMC Corp (FMC) downgraded to Neutral from Buy at Mizuho; tgt $59

    • Int'l Consolidated Airlines (ICAGY) downgraded to Underweight from Neutral at JP Morgan

    • Kering SA (PPRUY) downgraded to Neutral from Outperform at Exane BNP Paribas

    • Sprinklr (CXM) downgraded to Neutral from Buy at BTIG Research

    • Swatch (SWGAY) downgraded to Hold from Buy at Deutsche Bank

    • Take-Two (TTWO) downgraded to Neutral from Buy at BofA Securities; tgt $170

    • Vodafone PLC (VOD) downgraded to Underperform from Neutral at Exane BNP Paribas


  • Others:

    • Alcoa (AA) initiated with a Hold at HSBC Securities; tgt $29

    • AmBev (ABEV) initiated with a Buy at Citigroup

    • Bio-Rad Labs (BIO) initiated with a Buy at UBS; tgt $395

    • Bio-Techne (TECH) initiated with a Buy at UBS; tgt $80

    • Certara (CERT) initiated with a Neutral at UBS; tgt $17

    • Coca-Cola FEMSA (KOF) initiated with a Neutral at Citigroup; tgt $90

    • Elanco Animal Health (ELAN) initiated with an Outperform at Exane BNP Paribas; tgt $18

    • FEMSA (FMX) initiated with a Neutral at Citigroup

    • Fulgent Genetics (FLGT) initiated with a Neutral at UBS; tgt $35

    • Hertz Global (HTZ) initiated with a Neutral at Goldman; tgt $10

    • IDEXX Labs (IDXX) initiated with an Outperform at Exane BNP Paribas; tgt $602

    • LCI Industries (LCII) initiated with a Market Perform at BMO Capital Markets; tgt $105

    • Patrick Industries (PATK) initiated with an Outperform at BMO Capital Markets; tgt $105

    • Phibro Animal Health (PAHC) initiated with an Underperform at Exane BNP Paribas; tgt $9

    • Pure Storage (PSTG) initiated with a Buy at Guggenheim; tgt $48

    • Viper Energy Partners (VNOM) resumed with an Outperform at Evercore ISI; tgt $37

    • Zoetis (ZTS) initiated with an Outperform at Exane BNP Paribas; tgt $237


Econ Data:

  • 08:30 ET: Initial Claims for Dec 2 (Briefing.com Consensus 223K; Prior 218K)

  • 08:30 ET: Continuing Claims for Nov 25 (Briefing.com Consensus NA; Prior 1927K)

  • 10:00 ET: Wholesale Inventories for Oct (Briefing.com Consensus -0.2%; Prior 0.2%)

  • 10:30 ET: EIA Natural Gas Inventories for Dec 2 (Briefing.com Consensus NA; Prior +10 bcf)

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

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 -1.8%, Hang Seng -0.7%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region ended Thursday on a lower note. China reported a larger than expected trade surplus for November, but domestic demand appeared weak as imports fell 0.6% yr/yr against expectations for growth. Japan sold 30-yr debt to weak demand with the sale drawing the lowest bid-to-cover ratio since 2015. Meanwhile, Japan's Ministry of Finance noted that primary dealers have suggested a reduction to 20-yr JGB sales. Separately, ongoing speculation about a quicker than expected end to negative rates in Japan sent the yen higher by nearly 1.5% against the dollar to a level not seen since early September. Standard & Poor's said that it expects a soft landing for the Australian economy, warranting a continuation of the country's AAA rating. The Reserve Bank of Australia appointed a new chief economist and assistant governor.

  • In economic data:

    • China's November trade surplus $68.39 bln (expected surplus of $58.00 bln; last surplus of $56.53 bln). November Imports -0.6% yr/yr (expected 3.3%; last 3.0%) and Exports 0.5% yr/yr (expected -1.1%; last -6.4%)

    • Japan's October Leading Index 108.7 (expected 108.2; last 109.3) and Coincident Indicator 0.2% m/m (last 0.3%)

    • Australia's October Building Approvals 7.5% m/m, as expected (last -4.6%); -6.1% yr/yr, as expected (last -20.6%). October trade surplus AUD7.129 bln (expected surplus of AUD7.500 bln; last surplus of AUD6.184 bln). October Imports -1.9% m/m (last 8.0%) and Exports 0.4% m/m (last -1.8%)


---Equity Markets---

  • Japan's Nikkei: -1.8%

  • Hong Kong's Hang Seng: -0.7%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: -0.2%

  • South Korea's Kospi: -0.1%

  • Australia's ASX All Ordinaries: UNCH

---FX---

  • USD/JPY: -1.6% to 144.99

  • USD/CNH: -0.2% to 7.1598

  • USD/INR: UNCH at 83.35

Europe: DAX -0.2%, FTSE UNCH, CAC -0.1%

Major European indices trade near their flat lines while Spain's IBEX (-1.1%) lags amid weakness in financials. Eurozone's Q3 GDP was left unrevised at -0.1% qtr/qtr. Airline stocks are among regional laggards after JPMorgan downgraded several carriers. European Central Bank policymaker Villeroy de Galhau said that disinflation is occurring quicker than expected, which could invite rate cuts in 2024. British Chamber of Commerce expects domestic growth of 0.6% in 2023 followed by a 0.4% contraction in 2024.

  • In economic data:

    • Eurozone's Q3 GDP -0.1% qtr/qtr, as expected (last 0.1%); 0.0% yr/yr (expected 0.1%; last 0.6%). Q3 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.1%); 1.3% yr/yr (expected 1.4%; last 1.3%)

    • Germany's October Industrial Production -0.4% m/m (expected 0.2%; last -1.3%); -3.4% yr/yr (last -3.8%)

    • U.K.'s November Halifax House Price Index 0.5% m/m (expected 0.3%; last 1.2%); -1.0% yr/yr (last -3.1%)

    • France's October trade deficit EUR8.6 bln (expected deficit of EUR8.5 bln; last deficit of EUR8.9 bln)

    • Italy's October Industrial Production -0.2% m/m (expected -0.3%; last 0.1%); -1.1% yr/yr (last -2.0%). October Retail Sales 0.4% m/m (expected 0.1%; last -0.4%); 0.3% yr/yr (last 1.2%)

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


---Equity Markets---

  • STOXX Europe 600: -0.2%

  • Germany's DAX: -0.2%

  • U.K.'s FTSE 100: UNCH

  • France's CAC 40: -0.1%

  • Italy's FTSE MIB: -0.4%

  • Spain's IBEX 35: -1.1%

---FX---

  • EUR/USD: UNCH at 1.0760

  • GBP/USD: UNCH at 1.2562

  • USD/CHF: +0.3% to 0.8774

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