08/11/22 Briefing

The S&P 500 futures are up 5 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 43 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 50 points and are trading 0.2% above fair value.

Equity futures trade with a positive bias as market participants turn their attention to the midterm elections and previews highlighting a typically positive bias for the market in the 12-month period following a midterm election.

The U.S. Dollar Index is modestly higher, up 0.3% to 110.47.

Treasury yields are holding steady this morning. The 10-yr note yield is unchanged at 4.21% and the 2-yr note yield is down one basis point to 4.71%.

Energy complex futures are moving lower this morning. WTI crude oil futures are down 0.6% to $91.20/bbl and natural gas futures are down 5.1% to $6.88/mmbtu. 

Economic data today was limited to the October NFIB Small Business Optimism Index, which came in at 91.3 after the prior reading of 92.1

In corporate news:

• Lyft (LYFT 11.74 -2.40 -16.97%): beats by $0.02, reports revs in-line, adjusted EBITDA of $66.2 mln, ahead of its guidance; guides Q4 revs in-line, guides for adjusted EBITDA of $80-$100 mln; downgraded to In-line from Outperform at Evercore ISI

• Take-Two (TTWO 89.32 -19.08 -17.60%): reports Q2 (Sep) results, misses on revs; guides Q3 revs in-line; lowers FY23 guidance

• SolarEdge Technologies (SEDG 234.12 +22.82 +10.80%): misses by $0.53, beats on revs; guides Q4 revs in-line

• TripAdvisor (TRIP 18.76 -5.04 -21.18%): misses by $0.10, beats on revs, expects a modest sequential slowdown in Q4 revs

• Five9 (FIVN 41.65 -5.35 -11.38%): beats by $0.04, beats on revs; guides Q4 EPS, revs below consensus

• DuPont (DD 63.66 +1.92 +3.11%): beats by $0.03, beats on revs; guides FY22 EPS above consensus, revs slightly below consensus

• Scotts Miracle-Gro (SMG 52.81 +1.10 +2.13%): upgraded to Overweight from Equal Weight at Barclays

• NVIDIA (NVDA 147.29 +4.28 +2.99%): offered alternative chip to clear export restrictions, according to WSJ.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note while India's Sensex was closed for a holiday. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.4%, India's Sensex: CLOSED, South Korea's Kospi: +1.2%, Australia's ASX All Ordinaries: +0.3%.

  • In economic data:

    • Japan's September Leading Index 97.4 (expected 97.5; last 101.3) and Coincident Indicator -0.7% m/m (last 1.7%). September Overall wage Income 2.1% (expected 1.7%; last 1.7%). September Household Spending 1.8% m/m (expected 1.7%; last -1.7%); 2.3% yr/yr (expected 2.7%; last 5.1%)

    • South Korea's September Current Account surplus $1.61 bln (last deficit of $3.05 bln)

    • Australia's October AIG Services Index 47.7 (last 48.0) and November Westpac Consumer Sentiment -6.9% (last -0.9%). October NAB Business Survey 22 (last 25) and Business Confidence 0 (last 5)

    • New Zealand's 2-yr inflation expectations 3.6% (last 3.1%)

  • In news:

    • The Bank of Japan's latest summary of opinions noted that consumer inflation is expected to continue accelerating.

    • The Japanese government is reportedly planning to add JPY1.4 trln worth of loans to its second extra budget.

    • Macau will reportedly ease entry rules for foreigners at the beginning of next week.

• Major European indices trade near their flat lines. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.2%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.3%.

  • In economic data:

    • Eurozone's September Retail Sales 0.4% m/m, as expected (last -0.3%); -0.6% yr/yr (expected -1.3%; last -1.4%)

    • France's Q3 nonfarm payrolls 0.4% qtr/qtr, as expected (last 0.5%). September trade deficit EUR17.50 bln (expected deficit of EUR14.30 bln; last deficit of EUR15.30 bln). September Current Account deficit EUR7.30 bln (last deficit of EUR5.90 bln)

    • Italy's September Retail Sales 0.5% m/m (last -0.3%); 4.1% yr/yr (last 4.4%)

  • In news:

    • Bank of England Chief Economist Pill pushed back against suggestions that policymakers are too focused on reducing inflation at the expense of growth.

    • European Central Bank President Lagarde repeated that the ECB must bring inflation back to the 2.0% target.

    • The latest trading update from British homebuilder Persimmon noted a decrease in sales and prices of new homes alongside a rise in cancellation rates.

U.S. equity futures:

• S&P 500 Futures: +8 @ 3,815

• DJIA Futures: +64 @ 32,891

• Nasdaq 100 Futures: +52 @ 11,030

Overseas:

• Europe: DAX +0.3%, FTSE -0.2%, CAC UNCH

• Asia: Nikkei +1.3%, Hang Seng -0.2%, Shanghai Composite -0.4%

Commodities:

• Crude Oil -0.60 @ 91.19

• Nat Gas  -0.411 @ 6.533

• Gold -6.25 @ 1674.25

• Silver -0.107  @ 20.812

• Copper -0.0778 @ 3.6087

• Earnings/Guidance:

  • 23andMe (ME) beats by $0.02, beats on revs; reaffirms FY23 revs guidance

  • 2U misses (TWOU) by $0.02, reports revs in-line; reaffirms FY22 revs guidance

  • AAON (AAON) beats by $0.08, beats on revs

  • ACCO Brands (ACCO) beats by $0.01, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

  • Activision Blizzard (ATVI) beats by $0.08, beats on revs

  • AdaptHealth (AHCO) misses by $0.20, beats on revs; raises FY22 revs above consensus

  • ADTRAN (ADTN) misses by $0.08, beats on revs

  • Alliant Energy (LNT) misses by $0.09, misses on revs; raises FY22 EPS outlook; guides FY23 EPS in-line; increases its 2023 expected annual dividend target

  • Amwell (AMWL) misses by $0.04, beats on revs; guides FY22 revs in-line

  • Ashland (ASH) beats by $0.05, reports revs in-line; guides FY23 revs above consensus

  • Bayer AG (BAYRY) reports Q3 results; revs rise 6% yr/yr; reaffirms FY22 outlook

  • Benefitfocus (BNFT) beats by $0.01, misses on revs

  • Bentley Systems (BSY) beats by $0.02, misses on revs, reaffirms FY22 outlook

  • Brighthouse Financial (BHF) beats by $0.02, misses on revs

  • Builders FirstSource (BLDR) beats by $1.90, beats on revs; guides FY22 revs above consensus

  • BWX Technologies (BWXT) misses by $0.02, misses on revs; guides FY22 EPS in-line, revs in-line

  • Cabot (CBT) beats by $0.10, beats on revs; guides FY22 EPS above consensus

  • Carlyle Group (CG) beats by $0.35, beats on revs

  • Certara (CERT) misses by $0.02, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • ChannelAdvisor (ECOM) reports Q3 (Sep) results, revs in-line

  • Clarivate (CLVT) beats by $0.03, misses on revs; lowers FY22 EPS in-line, revs below consensus

  • Constellation Energy (CEG) misses by $1.34, beats on revs

  • Coty (COTY) reports EPS in-line, beats on revs; reaffirms FY23 EPS guidance

  • DHT (DHT) beats by $0.04, misses on revs

  • Diamondback Energy (FANG) beats by $0.36, reports revs in-line; expects Q4 oil production of 224-228 MBO/d

  • Diamond Offshore (DO) beats on top and bottom lines

  • DigitalOcean (DOCN) beats by $0.15, beats on revs; guides Q4 EPS below consensus, revs below consensus

  • Diodes (DIOD) beats by $0.13, reports revs in-line; guides Q4 revs in-line

  • DuPont (DD) beats by $0.03, beats on revs; guides FY22 EPS above consensus, revs slightly below consensus

  • eHealth (EHTH) beats by $0.28, beats on revs; reaffirms FY22 revs guidance

  • Elanco Animal Health (ELAN) beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • Everbridge (EVBG) beats by $0.11, reports revs in-line; guides Q4 EPS above consensus, revs in-line

  • Everi (EVRI) misses by $0.05, beats on revs

  • Fabrinet (FN) beats by $0.23, beats on revs; guides Q2 EPS, revs above consensus

  • FibroGen (FGEN) misses by $0.15, misses on revs

  • First Advantage Corp. (FA) misses by $0.02, misses on revs; lowers FY22 revs below consensus

  • Five9 (FIVN) beats by $0.04, beats on revs; guides Q4 EPS, revs below consensus

  • FS KKR Capital (FSK) reports EPS in-line, beats on revs

  • Fulgent Genetics (FLGT) reports EPS in-line, beats on revs; guides Q4 revs in-line; guides FY22 EPS below two analyst estimate, revs below two analyst estimate

  • GlobalFoundries (GFS) beats by $0.05, beats on revs; guides Q4 EPS above consensus, revs in-line

  • Groupon (GRPN) misses by $0.24, misses on revs

  • Hain Celestial (HAIN) beats by $0.01, misses on revs; reaffirms FY23 guidance

  • Heliogen (HLGN) reports in-line results; misses on revs

  • Hims & Hers Health (HIMS) beats by $0.01, beats on revs; guides Q4 revs above consensus

  • ICU Medical (ICUI) beats by $0.29, beats on revs; reaffirms FY22 EPS guidance

  • Intl Flavors (IFF) beats by $0.03, reports revs in-line; guides FY22 revs below consensus

  • Intl Game Tech. PLC (IGT) beats by $0.13, beats on revs; guides Q4 revs in-line; guides FY22 revs in-line; declares dividend

  • Ligand Pharma (LGND) reports Q3 (Sep) results, beats on revs; guides FY22 revs above consensus

  • LivePerson (LPSN) reports Q3 (Sep) results, beats on revs; guides Q4 revs below consensus; guides FY22 revs above consensus

  • Lordstown Motors (RIDE) misses by $0.42; reaffirms outlook

  • Lumentum (LITE) beats by $0.13, beats on revs; guides DecQ EPS below consensus, revs below consensus

  • Lyft (LYFT) beats by $0.02, reports revs in-line, adjusted EBITDA of $66.2 mln, ahead of its guidance; guides Q4 revs in-line, guides for adjusted EBITDA of $80-$100 mln

  • Manitowoc (MTW) beats by $0.01, misses on revs

  • Masonite International (DOOR) beats by $0.04, beats on revs

  • MeridianLink (MLNK) misses by $0.01, misses on revs; guides Q4 revs below consensus

  • Mosaic (MOS) misses by $0.18, misses on revs; provides market update; tightness in grain, oilseed, potash, and phosphates expected to persist through 2023

  • Mueller Water (MWA) misses by $0.04, beats on revs

  • NanoString Technologies (NSTG) misses by $0.17, misses on revs; lowers FY22 revs below consensus

  • Nexstar beats by $1.61, misses on revs

  • Nintendo (NTDOY) reports H1 results; revs rise 5% yr/yr

  • Northwest Natural (NWN) beats by $0.16, beats on revs; reaffirms FY22 EPS guidance

  • Novanta (NOVT) beats by $0.07, beats on revs; guides Q4 EPS below consensus, revs in-line

  • Oak Street Health (OSH) beats by $0.04, beats on revs; guides FY22 revs above consensus

  • Pacific Biosciences (PACB) misses by $0.01, misses on revs

  • Pactiv Evergreen (PTVE) reports Q3 (Sep) results, beats on revs; increases FY22 adjusted EBITDA guidance

  • PerkinElmer (PKI) beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Perrigo (PRGO) misses by $0.11, misses on revs; guides FY22 EPS below consensus, reaffirms FY22 revs guidance

  • Planet Fitness (PLNT) beats by $0.04, beats on revs; raises FY22 revenue and EPS guidance; authorized a new $500 mln share repurchase program

  • Playtika (PLTK) misses by $0.06, beats on revs; guides FY22 revs in-line

  • PowerSchool (PWSC) reports Q3 (Sep) results, revs in-line; guides Q4 revs in-line

  • Primoris Services (PRIM) beats by $0.21, beats on revs; reaffirms FY22 EPS guidance

  • Nexstar (NXST) beats by $1.61, misses on revs

  • Q2 Holdings (QTWO) beats by $0.06, misses on revs; guides Q4 revs below consensus

  • Qiagen (QGEN) beats by $0.10, beats on revs; guides Q4 EPS, revs above consensus

  • R1 RCM (RCM) misses by $0.21, misses on revs; guides FY22 revs below consensus

  • Reynolds Consumer Products (REYN) beats by $0.01, misses on revs; guides Q4 EPS in-line, revs in-line

  • Rover Group (ROVR) reports Q3 (Sep) results, beats on revs; guides Q4 revs above consensus

  • Rhythm Pharmaceuticals (RYTM) beats by $0.22, misses on revs; provides business update

  • SAGE Therapeutics (SAGE) misses by $0.12, beats on revs

  • Sanmina (SANM) beats by $0.17, beats on revs; guides Q1 EPS above two analyst estimate, revs above estimate

  • Scripps (SSP) misses by $0.18, misses on revs

  • ShockWave Medical (SWAV) beats by $0.30, beats on revs; raises FY22 revs outlook

  • SolarEdge Technologies (SEDG) misses by $0.53, beats on revs; guides Q4 revs in-line

  • Squarespace (SQSP) misses by $0.15, reports revs in-line; guides Q4 revs in-line

  • Stevanato Group S.p.A. (STVN) beats by $0.01, reports revs in-line; guides FY22 EPS in-line, revs in-line

  • Sunstone Hotel (SHO) beats by $0.01, beats on revs

  • Take-Two (TTWO) reports Q2 (Sep) results, misses on revs; guides Q3 revs in-line; lowers FY23 guidance

  • TaskUs (TASK) beats by $0.06, beats on revs; guides Q4 revs above consensus

  • Teradata (TDC) beats by $0.02, misses on revs; guides Q4 EPS in-line, reaffirms certain FY22 guidance

  • The Beauty Health Company (SKIN) reports Q3 (Sep) results, beats on revs; guides FY22 revs above consensus

  • TransAlta (TAC) reports Q3 (Sep) results, beats on revs

  • TripAdvisor (TRIP) misses by $0.10, beats on revs, expects a modest sequential slowdown in Q4 revs

  • Triumph Group (TGI) beats by $0.07, beats on revs; raises FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Unisys (UIS) beats by $0.18, misses on revs; guides FY22 revs below consensus

  • Veeco Instruments (VECO) beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • Viper Energy Partners (VNOM) reports Q3 (Sep) results, beats on revs

  • Vivid Seats (SEAT) beats on revs; raises FY22 revs above consensus

  • Welltower (WELL) beats by $0.01, reports revs in-line; guides Q4 FFO in-line

  • Xencor (XNCR) beats by $0.13, beats on revs

  • Y-mAbs Therapeutics (YMAB) beats by $0.07, beats on revs; reiterates all elements of its FY22 guidance

• News:

  • Republicans have an 84% chance of capturing the House and Republicans have an 59% chance of taking control of the Senate following tonight's midterm election, according to Five Thirty Eight

  • 227 House districts favor Republicans while 174 districts favor Democrats. There are 34 toss up districts, Real Clear Politics

  • 48 Senate seats favor Republicans while 44 favor Democrats. There are 8 toss up states, Real Clear Politics

  • Richmond Fed President Thomas Barkin (not a voting FOMC member) says Fed will "persist" in its efforts to bring down inflation, according to Bloomberg

  • Judge blocks some of New York's gun restrictions, according to the Wall Street Journal

  • EU getting ready to impose more Iran sanctions, according to Bloomberg

  • Acacia Research (ACTG) CEO Clifford Press resigned on November 1; current COO Martin McNulty Jr appointed interim CEO

  • Adaptimmune Therapeutics (ADAP) reports increased response rate and durability of response in its Phase 1 SURPASS trial; ORR now 52% across ovarian, urothelial, and head & neck cancers

  • Adidas AG (ADDYY) announces CEO Kasper Rorsted will depart on Nov. 11, 2022; former Puma (PMMAF) CEO Bjrn Gulden to become ADDYY's new CEO Jan. 1, 2023

  • AMC Entertainment (AMC) and Zoom (ZM) partner to bring Zoom Rooms to AMC Movie Theatres beginning sometime in 2023

  • Amgen (AMGN) presented a new analysis from the Phase 3 FOURIER and FOURIER studies of Repatha in adults with atherosclerotic cardiovascular disease

  • Apple (AAPL): Lockdown of iPhone district in China expires tomorrow, according to Bloomberg

  • Array Tech (ARRY) to supply solar trackers for one of its largest solar projects in the U.S.

  • Arrowhead (ARWR) Presents New Phase 2 Data at AHA 2022 on Cardiometabolic Pipeline

  • BioMarin Pharmaceutical (BMRN) today a progress update on its BLA for valoctocogene roxaparvovec AAV gene therapy for adults with severe Hemophilia A

  • Boeing (BA): Emirates expands its cargo fleet with five Boeing 777 Freighters

  • Broadmark Realty (BRMK) CEO Brian Ward resigns, effective immediately; names Chairman Jeffrey Pyatt as Interim CEO and Jonathan Hermes as CFO

  • CinCor Pharma (CINC) announced that detailed results from the Phase 2 BrigHtn trial evaluating the safety and efficacy of baxdrostat in treatment-resistant hypertension were published online today in the New England Journal of Medicine

  • Cohu (COHU) announces that a leading global MEMS sensor manufacturer has selected Cohu's next generation MEMS test platform, Sense+ for testing their portfolio of advanced gyroscopic sensors

  • Enova International's (ENVA) Board authorized an increase to its share repurchase program of up to $150 million

  • Intercept (ICPT) Announces Development Program for Next-Generation FXR Agonist INT-787 in Severe Alcohol-Associated Hepatitis

  • Investors Title Company (ITIC) declares special dividend of $3.00/share

  • Keros Therapeutics (KROS) announced results from a preclinical study of a research form of KER-012 on cardiac and pulmonary pathology in an established rat model of pulmonary arterial hypertension

  • Lordstown Motors (RIDE) and Foxconn (HNHPF) broaden strategic partnership

  • Norwegian Cruise Line (NCL) beats by $0.05, beats on revs; guides Q4 revs in-line

  • Novartis AG (NVS): New long-term Leqvio (inclisiran) data from Novartis show sustained efficacy and safety over four years

  • Nvidia (NVDA) offered alternative chip to clear export restrictions, according to the Wall Street Journal

  • PGT Inc. (PGTI) detected a ransomware infection that impacted some of its network and disrupted daily operations

  • R1 RCM (RCM) announces Lee Rivas to succeed Joseph Flanagan as Chief Executive Officer effective Jan. 1, 2023

  • Southwest Gas (SWX) appoints Robert J. Stefani as Senior Vice President and Chief Financial Officer, effective November 30

  • Tesla (TSLA) to recall 40K units over power loss issue, according to Reuters

  • WPP plc (WPP) announced that Chief Financial Officer John Rogers has decided to step down from the company

  • Xencor (XNCR) announced topline clinical data from its Phase 1a single-dose, healthy volunteer study of XmAb564, in development for patients with autoimmune diseases

  • Yamana Gold (AUY) enters into arrangement agreement with Agnico and Pan American and announces change of recommendation

• M&A:

  • Bruker (BRKR) announces the acquisition of Inscopix; financial terms were not disclosed

  • Core & Main (CNM) to acquire substantially all of the assets of Lanier Municipal Supply, a distributor of water, wastewater, storm drainage, agricultural and irrigation products

  • Equitrans Midstream (ETRN) files mixed securities shelf offering

  • FEMSA (FMX) to acquire all of the outstanding shares of NET PAY

  • Forward Air (FWRD) to acquire Chickasaw Container Services, a privately held intermodal drayage provider; transaction to be funded from cash on handed and is expected to close in November 2022; additional financial details not disclosed

  • MeridianLink (MLNK) acquires OpenClose, a fintech provider of residential mortgage software for financial institutions; financial details not disclosed

  • Welltower (WELL) to effectuate the sale and transition of 147 skilled nursing facilities currently operated by ProMedica

• Syndicate: 

  • 2seventy bio (TSVT) files $400 mln mixed securities shelf offering

  • AmerisourceBergen (ABC) announces secondary offering of 10 mln shares held by WBA

  • Athersys (ATHX) commences common stock offering

  • Baozun (BZUN) acuires Gap Greater China

  • Blue Ridge Bankshares (BRBS) files $100 mln mixed securities shelf offering

  • Ducommun (DCO) files $300 mln mixed securities shelf offering

  • FibroGen (FGEN) announced a royalty monetization financing with NovaQuest Capital Management (NovaQuest) that will result in proceeds to FibroGen in the amount of $50 million

  • LSB Industries (LXU) prices offering of 14.35 mln shares of common stock at $13.50 per share; co repurchases 3.5 mln shares

  • Marinus Pharmaceuticals (MRNS) commences common stock offering

  • Roivant Sciences (ROIV) commence $150 mln common stock 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:

  • HIMS +21.9%, ROVR +16.3%, RIDE +11.9%, TWOU+11.6%, TASK +11%, LPSN +11%, SEDG +10.5%, PRIM +8.7%, EHTH +6.9%, ARRY +6.6%, SANM+5.6%, FN +5.5%, ME +5.1%, LGND +5%, ENVA+4.9%, YMAB +4.5%, NFE +4.3%, PTVE +4%, QGEN+3.4%, ACCO +3.1%, CG +3%, CERT +2.9%, ICPT+2.8%, ARWR +2.7%, XNCR +2.7%, DD +2.6%, AMGN+2.2%, CNX +1.9%, OSH +1.8%, TGI +1.5%, ATVI+1.3%, HLGN +1.3%, PGTI +1.1%, DO +1.1%

• Gapping down:

  • ATHX -43.8%, TRIP -19.2%, TTWO -18.8%, LYFT-18.5%, MRNS -18%, UIS -16.3%, NSTG -15.4%, ROIV -13%, FIVN -12.8%, QTWO -9.2%, GRPN -8.9%, DOCN -8.5%, BRMK -8%, FLGT -6.3%, MDT -5.3%, VZLA -5.1%, PACB -5%, ARCC -4.1%, LXU -3.4%, SWAV -3%, ABC -2.8%, VECO -2.8%, VNOM -2.6%, ENSG -2.2%, ETRN -2.1%, BNFT -1.3%, IRTC -1.2%, COHU -1.2%, MWA -1.2%, DHT -1.2%, CLVT -1.2%, NYT -1%

Analyst Research (see Upgrades/Downgradescalendarfor full list):

• Upgrades

  • Block (SQ) upgraded to Outperform from Neutral at Macquarie; tgt $100

  • Dave & Buster's (PLAY) upgraded to Buy from Hold at Deutsche Bank; tgt $48

  • Energy Recovery (ERII) upgraded to Outperform from Mkt Perform at Raymond James; tgt $23

  • Global Partners (GLP) upgraded to Buy from Hold at Stifel; tgt raised to $35

  • Mettler-Toledo (MTD) upgraded to Neutral from Sell at Goldman; tgt raised to $1355

  • Scotts Miracle-Gro (SMG) upgraded to Overweight from Equal Weight at Barclays; tgt $75

  • Southern Copper (SCCO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $54

  • Telephone & Data (TDS) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $14

  • US Cellular (USM) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $24

• Downgrades:

  • Arcosa (ACA) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $65

  • AVEO Oncology (AVEO) downgraded to Hold from Buy at Stifel; tgt $15

  • Benefitfocus (BNFT) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • ICU Medical (ICUI) downgraded to Mkt Perform from Outperform at Raymond James

  • Jack In The Box (JACK) downgraded to Hold from Buy at Deutsche Bank; tgt $88

  • Lyft (LYFT) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $18

  • Marsh McLennan (MMC) downgraded to Neutral from Overweight at Atlantic Equities; tgt $185

  • National Storage Affiliates (NSA) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $42

• Others:

  • ASML (ASML) initiated with an Overweight at Morgan Stanley

  • Eni S.p.A. (E) resumed with an Outperform at Exane BNP Paribas

  • Generation Bio (GBIO) initiated with a Buy at Canaccord Genuity; tgt $9

  • National Grid (NGG) resumed with an Overweight at JP Morgan

  • Rocket Pharmaceuticals (RCKT) initiated with a Buy at Canaccord Genuity; tgt $53

  • STMicroelectronics (STM) initiated with an Equal-Weight at Morgan Stanley

Upcoming Events:

• Econ Data:

  • 06:00 ET: NFIB Small Business Optimism for Oct (Briefing.comConsensus NA; Prior 92.1)

• 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 +1.3%, Hang Seng -0.2%, Shanghai Composite -0.4%

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note while India's Sensex was closed for a holiday. The Bank of Japan's latest summary of opinions noted that consumer inflation is expected to continue accelerating. The Japanese government is reportedly planning to add JPY1.4 trln worth of loans to its second extra budget. Macau will reportedly ease entry rules for foreigners at the beginning of next week.

• In economic data:

  • Japan's September Leading Index 97.4 (expected 97.5; last 101.3) and Coincident Indicator -0.7% m/m (last 1.7%). September Overall wage Income 2.1% (expected 1.7%; last 1.7%). September Household Spending 1.8% m/m (expected 1.7%; last -1.7%); 2.3% yr/yr (expected 2.7%; last 5.1%)

  • South Korea's September Current Account surplus $1.61 bln (last deficit of $3.05 bln)

  • Australia's October AIG Services Index 47.7 (last 48.0) and November Westpac Consumer Sentiment -6.9% (last -0.9%). October NAB Business Survey 22 (last 25) and Business Confidence 0 (last 5)

  • New Zealand's 2-yr inflation expectations 3.6% (last 3.1%)

---Equity Markets---

• Japan's Nikkei: +1.3%

• Hong Kong's Hang Seng: -0.2%

• China's Shanghai Composite: -0.4%

• India's Sensex: CLOSED

• South Korea's Kospi: +1.2%

• Australia's ASX All Ordinaries: +0.3%

---FX---

• USD/JPY: -0.2% to 146.28

• USD/CNH: +0.4% to 7.2534

• USD/INR: -0.3% to 81.57

Europe: DAX +0.3%, FTSE -0.2%, CAC UNCH

Major European indices trade near their flat lines. Bank of England Chief Economist Pill pushed back against suggestions that policymakers are too focused on reducing inflation at the expense of growth. European Central Bank President Lagarde repeated that the ECB must bring inflation back to the 2.0% target. The latest trading update from British homebuilder Persimmon noted a decrease in sales and prices of new homes alongside a rise in cancellation rates.

• In economic data:

  • Eurozone's September Retail Sales 0.4% m/m, as expected (last -0.3%); -0.6% yr/yr (expected -1.3%; last -1.4%)

  • France's Q3 nonfarm payrolls 0.4% qtr/qtr, as expected (last 0.5%). September trade deficit EUR17.50 bln (expected deficit of EUR14.30 bln; last deficit of EUR15.30 bln). September Current Account deficit EUR7.30 bln (last deficit of EUR5.90 bln)

  • Italy's September Retail Sales 0.5% m/m (last -0.3%); 4.1% yr/yr (last 4.4%)

---Equity Markets---

• STOXX Europe 600: +0.3%

• Germany's DAX: +0.3%

• U.K.'s FTSE 100: -0.2%

• France's CAC 40: UNCH

• Italy's FTSE MIB: +0.3%

• Spain's IBEX 35: +0.3%

---FX---

• EUR/USD: -0.2% to 1.0000

• GBP/USD: -0.5% to 1.1454

• USD/CHF: +0.2% to 0.9909