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10/12/2021 Briefing

The S&P 500 futures trade 16 points, or 0.3%, above fair value as investors await the Consumer Price Index (CPI) report for November at 8:30 a.m. ET. The S&P 500 enters the session up 2.8% for the week.

The Briefing.comconsensus is projecting a 0.6% m/m increase in total CPI, but the White House is already saying that the data is "backward looking" and will not capture recent price declines for consumers. Nevertheless, a high inflation reading could persuade the Fed to taper faster than planned at next week's policy meeting.

Investors will also receive the preliminary University of Michigan Index of Consumer Sentiment for December (Briefing.comconsensus 68.0) at 10:00 a.m. ETand the Treasury Budget for November at 2:00 p.m. ET.

U.S. Treasuries are sniffing some inflation pressures, as yields edge higher across the curve. The 2-yr yield is up three basis points to 0.72%, and the 10-yr yield is up two basis points to 1.51%. The U.S. Dollar Index is up 0.1% to 96.36. WTI crude futures are up 1.2%, or $0.84, to $71.78/bbl.

Separately, Broadcom (AVGO 625.00, +41.58, +7.1%) and Oracle (ORCL 98.85, +10.08, +11.4%) are rallying on positive earnings results and plans to repurchase $10 billion worth of shares. Costco (COST 534.20, +9.87, +1.9%) is up more modestly after beating EPS estimates.

In U.S. Corporate news:

  • Broadcom (AVGO 625.00, +41.58): +7.1% after beating EPS estimates, guiding fiscal Q1 revenue above consensus, increasing its quarterly dividend by 14%, and announcing a new $10 billion share repurchase program.

  • Oracle (ORCL 98.85, +10.08): +11.4% after beating top and bottom-line estimates and increasing its share repurchase program by $10 billion. On a related note, the stock was upgraded to Buy from Hold at Deutsche Bank.

  • Costco (COST 534.20, +9.87): +1.9% after beating EPS estimates.

  • lululemon athletica (LULU 411.00, -5.92): -1.4% after guiding Q4 revenue slightly below consensus, although the company did beat EPS estimates.

  • Tesla (TSLA 991.89, -11.91): -1.2% as CEO Elon Musk continued to sell shares as previously committed and joked on Twitter about leaving his job to become an influencer.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a lower note. Japan's Nikkei: -1.0% (+1.5% for the week) Hong Kong's Hang Seng: -1.1% (+1.0% for the week) China's Shanghai Composite: -0.2% (+1.6% for the week) India's Sensex: UNCH (+1.9% for the week) South Korea's Kospi: -0.6% (+1.4% for the week) Australia's ASX All Ordinaries: -0.3% (+1.7% for the week).

  • In economic data:

  • Japan's November PPI 0.6% m/m (expected 0.3%; last 1.4%); 9.0% yr/yr (expected 8.5%; last 8.3%)

  • New Zealand's November Business NZ PMI 50.6 (last 54.3). November Electronic Card Retail Sales 9.6% m/m (last 10.0%); 2.9% yr/yr (last -7.6%)


  • In news:

  • Japan's PPI increased at its fastest yr/yr pace since 1981 in the November reading. A Bank of Japan official said that steelmakers are optimistic about a rebound in production this month.

  • The Japanese government approved a tax reform plan for FY22, as expected.

  • China will hold a 2.5 day central economic work conference, starting Wednesday.



  • Major European indices trade near their flat lines, making for a quiet finish to the week. STOXX Europe 600: -0.2% (+2.9% week-to-date) Germany's DAX: +0.1% (+3.2% week-to-date) U.K.'s FTSE 100: UNCH (+2.8% week-to-date) France's CAC 40: -0.1% (+2.0% week-to-date) Italy's FTSE MIB: -0.1% (+3.3% week-to-date) Spain's IBEX 35: -0.4% (+1.5% week-to-date).

  • In economic data:

  • Germany's November CPI -0.2% m/m, as expected (last -0.2%); 5.2% yr/yr, as expected (last 5.2%)

  • U.K.'s October Industrial Production -0.6% m/m (expected 0.1%; last -0.4%); 1.4% yr/yr (expected 2.2%; last 2.9%). Manufacturing Production 0.0% m/m (expected 0.1%; last 0.1%); 1.3% yr/yr (expected 1.7%; last 2.8%). October Construction Output -1.8% m/m (expected 0.2%; last 1.3%); 3.2% yr/yr (expected 5.0%; last 7.2%). October trade deficit GBP13.93 bln (expected deficit of GBP14.06 bln; last deficit of GBP14.74 bln). Q3 GDP 4.6% yr/yr (expected 6.6%; last 5.3%)

  • Italy's October Industrial Production -0.6% m/m (expected 0.4%; last 0.1%); 2.0% yr/yr (expected 3.3%; last 4.5%)

  • Spain's October Industrial Production -0.9% yr/yr (expected 0.7%; last 0.4%)


  • In news:

  • British Prime Minister Johnson may be facing a no-confidence vote from his party after the reimposition of coronavirus restrictions.

  • Today is the deadline that was set for the U.K. and France to solve their fishing dispute, but the situation remains unresolved.




U.S. equity futures:

  • S&P 500 Futures: +15 @ 4,683

  • DJIA Futures: +86 @ 35,841

  • Nasdaq 100 Futures: +36 @ 16,186

Overseas:

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

  • Asia: Nikkei -1.0%, Hang Seng -1.1%, Shanghai Composite -0.2%

Commodities:

  • Crude Oil +0.78 @ 71.72

  • Nat Gas +0.032 @ 3.846

  • Gold -2.55 @ 1774.15

  • Silver -0.115 @ 21.898

  • Copper +0.0002 @ 4.332

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • American Outdoor Brands (AOUT) misses by $0.18, misses on revs; guides FY22 EPS in-line, revs below consensus, announces $15 mln share repurchase program

  • Broadcom (AVGO) beats by $0.04, reports revs in-line; guides JanQ revs above consensus; increases quarterly dividend by 14%; announces new $10 bln share repurchase program

  • Centene (CNC) sees FY22EPS in line; sees FY22revs above consensus

  • CF Industries (CF) raises FY21adjusted EBITDA guidance due to its assessment of global nitrogen market conditions

  • Chewy (CHWY) misses by $0.04, reports revs in-line; guides Q4 revs in-line

  • Comtech Telecom (CMTL) beats by $0.07, reports revs in-line; reaffirms FY22revs in-line (midpoint above consensus)

  • Costco (COST) beats by $0.32, reports revs in-line

  • Gran Tierra Energy (GTE) issues FY22guidance; expects adjusted EBITDA of $360-460 mln; raises FY22production guidance

  • Leslie's (LESL) beats by $0.01, beats on revs; guides FY22EPS above consensus, revs above consensus; also announces $300 million share repurchase authorization

  • lululemon athletica (LULU) beats by $0.22, reports revs in-line; guides Q4 EPS in-line, revs slightly below consensus;

  • Mesa Air (MESA) misses by $0.18, misses on revs; expects COVID issues to spill-over through the next two quarters

  • National Beverage (FIZZ) reports Q2 (Oct) earnings; net sales grew 4.2% yr/yr

  • Oracle (ORCL) beats by $0.10, beats on revs; increases share repurchase program by $10 bln;

  • Sprinklr (CXM) beats by $0.04, beats on revs; guides JanQ EPS above consensus, revs above consensus

  • Taiwan Semi (TSM) revenue for November 2021 was approximately NT$148.27 billion, an increase of 10.2 percent from October 2021 and an increase of 18.7 percent from November 2020

  • Tecnoglass (TGLS) raises FY21revenue and EBITDA guidance; responds to short seller report

  • Vail Resorts (MTN) beats by $0.15, misses on revs; Board declares dividend

  • Yellow Corporation (YELL) Provides Quarter-To-Date Operating Data for Fourth Quarter 2021


  • General News:

  • White House economic adviser Brian Deese says today's inflation report is "backward looking" and will not capture "recent price movements", according to Bloomberg

  • President Biden is expected to quickly sign bill that will allow debt ceiling to be raised one time only with 51 votes in Senate. Congress is expected to vote on actual debt ceiling raise by $2.5 trillion next week, which will be enough to get Treasury past the midterm elections, according to New York Times

  • White House says "If diplomacy cannot get on track soon, and if Iran's nuclear program continues to accelerate, then we will have no choice but to take additional measures to further restrict Iran's revenue-producing sectors"

  • US considering banning Semiconductor Manufacturing International from purchasing US products, according to the Wall Street Journal

  • Democrats will eliminate vaping tax from reconciliation bill, according to the Wall Street Journal

  • Activision Blizzard (ATVI) employees are close to forming a union, according to the Washington Post

  • AllianceBernstein (AB) announces preliminary assets under management of $759 bln as of November 30

  • Altair Engineering (ALTR) appointed Stephanie Buckner to serve as the Company's Chief Operating Officer, effective January 1, 2022

  • Angion (ANGN) and Vifor Pharma Report Topline Results from Phase 2 GUARD Trial of ANG-3777 in Cardiac Surgery-Associated Acute Kidney Injury

  • Arbutus Biopharma (ABUS) amended Cross License Agreement with Genevant Sciences GmbH

  • Azul S.A. (AZUL) reports November 2021 traffic

  • B2Gold (BTG) reaches agreement in principle for Menankoto exploration permit

  • Bayer (BAYRY) wins second Roundup case, according to Reuters

  • BeiGene (BGNE) presents results from phase 3 Trial of tislelizumab in nasopharyngeal cancer at ESMO Immuno-Oncology Congress 2021

  • C3.ai (AI) receives $500 mln five-year Production-Other Transaction Agreement from the U.S. Department of Defense

  • CareTrust REIT (CTRE) appoints David Sedgwick as Chief Executive Officer, to be effective as of January 1, 2022

  • CenterPoint (CNP) increases quarterly dividend 8% to $0.17/share

  • Centrexion Therapeutics (CNTX) announces "positive" data from ONA-XR in early breast cancer at 2021 San Antonio Breast Cancer Symposium

  • C.H. Robinson (CHRW) raises quarterly dividend to $0.55 from $0.51/share; authorizes share repurchase of 20 mln shares

  • Clene (CLNN) along with its subsidiaries 'Clene' and its wholly owned subsidiary Clene Nanomedicine presented data from the RESCUE-ALS Phase 2 study of CNM-Au8

  • Crown (CCK) authorizes $3.0 bln share repurchase program

  • Edison (EIX) raises common stock dividend 5.66%

  • Eli Lilly (LLY) and Regor Therapeutics Group entered into a multi-year research collaboration and licensing agreement to discover, develop and commercialize novel therapies for metabolic disorders

  • Energous (WATT) appoints Cesar Johnston as CEO, effective December 6

  • Erie Indemnity (ERIE) approves increase in regular quarterly cash dividend to $1.11/share from $1.035/share on each Class A share

  • Everbridge (EVBG) announces David Meredith has notified Board of his intention to resign as CEO; reiterates Q4 & FY21 guidance

  • FIGS, Inc. (FIGS) CFO Jeffrey Lawrence decided to retire, effective December 24, 2021

  • FMC Corp (FMC) signs agreements with Corteva Agriscience (CTVA) for the supply of growers seed treatment insecticides

  • Franklin Resources (BEN) reported preliminary month-end AUM of $1,546.8 billion at November 30, 2021, compared to $1,561.7 billion at October 31, 2021

  • GE (GE) and Union Pacific (UNP) suspend employee vaccine mandates, according to the Wall Street Journal

  • Invesco reports preliminary month-end assets under management of $1,572.5 bln as of November 30

  • iTeos (ITOS) Announces New Data for its Anti-TIGIT Antibody, EOS-448, at the American Society of Hematology Annual Meeting and TIGIT Therapies Digital Summit

  • Johnson & Johnson (JNJ) announces interim recommendation by the Strategic Advisory Group of Experts on Immunization for the WHO supporting use of COVID-19 vaccine as booster

  • Lazard (LAZ) reports that its preliminary AUM as of November 30, 2021 totaled approximately $267.4 billion

  • Lumber Liquidators (LL) announced that it expects to complete its corporate entity name change to LL Flooring Holdings, Inc. effective January 1, 2022, upon satisfying all applicable legal and regulatory requirements

  • MediciNova (MNOV) announces MN-166 (ibudilast) poster presentation at the 32nd international symposium on ALS/MND

  • Microsoft (MSFT) offered to bring Xbox-exclusive games to iPhone, according to TheVerge

  • Moderna (MRNA) announces interim data from the Phase 1 study of the Company's quadrivalent seasonal flu vaccine candidate, mRNA-1010

  • New Pacific Metals (NEWP) appoints prior CEO and founder Dr. Rui Feng as Chairman of the Board

  • ObsEva (OBSV) reports 52-Week Data from the Phase 3 PRIMROSE studies of linzagolix for the treatment of uterine fibroids demonstrating sustained safety and efficacy results at 52 weeks to be presented orally

  • Orchid Island Capital (ORC) approves increased share repurchase authorization

  • Proterra (PTRA) appoints Gareth Joyce to succeed Jack Allen as CEO, effective January 1

  • Relay Therapeutics (RLAY) shares additional preclinical data at the 2021 San Antonio Breast Cancer Symposium for RLY-2608

  • Roche Hldg's (RHHBY) Genentech report bew data from the Phase II CITYSCAPE trial show encouraging results with genentech's novel anti-TIGIT tiragolumab plus tecentriq

  • SpringWorks Therapeutics (SWTX) announced that the company has entered into a clinical trial collaboration agreement with AbbVie (ABBV)

  • Sun Life (SLF) appoints Scott Powers to succeed Bill Anderson as Chair, effective in May 2022

  • TechnipFMC (FTI) awarded three frame agreements by Petrobras (PBR)

  • TE Connectivity (TEL) to increase quarterly dividend to $0.56 per share from $0.50 per share for the four fiscal quarters starting in April 2022

  • Tesla (TSLA) CEO Elon Musk tweets "thinking of quitting my jobs & becoming an influencer full-time wdyt"

  • Tesla (TSLA): Regulators are speaking with Tesla about faulty autopilot cameras, according to CNBC

  • Texas Capital (TCBI) appoints Matt Scurlock as Executive Vice President and CFO, effective January 1, 2022

  • Tupperware (TUP) to open strategic global sourcing center in Singapore

  • Uber (UBER): EU may give Uber drivers employee benefits, according to Reuters

  • Urban Outfitters (URBN) appointed Kelly Campbell to the Board, expanding size to 11 from 10 members

  • Valaris (VAL) announces support agreement with the Seatankers Group

  • Victory Capital (VCTR) reports AUM of $160.5 billion as of November 30, 2021, -1% M/M

  • Waste Mgmt (WM) approves 13% increase quarterly dividend for 2022 to $0.65/share; authorizes repurchase program up to $1.5 bln of common stock

  • Zumiez (ZUMZ) discloses authorization for repurchase of $150 mln in common stock


  • M&A:

  • Bottomline Technologies (EPAY) mulling sale, according to Bloomberg

  • CC Neuberger Principal Holdings II (PRPB): Getty Images to become publicly traded company through combination with CC Neuberger Principal Holdings II

  • inTEST Corp (INTT) agrees to acquire Acculogic for approx $9 mln

  • Iron Mountain (IRM) to acquire ITRenew

  • North Mountain Merger Corp. (NMMC): Corcentric to become publicly listed through a business combination with NMMC

  • RR Donnelley & Sons (RRD) reports that Chatham Asset Management has increased its offer to acquire the company to $10.85/share in cash

  • SS&C Techs (SSNC) agrees to acquire Hubwise Holdings in cash transaction


  • Syndicate:

  • Bank7 (BSVN) announces pricing of secondary offering at $22.00/share

  • BNY Mellon (BK) files mixed securities shelf offering

  • Nymox Pharma (NYMX) files for $25 mln mixed securities shelf offering

  • Snap-On (SNA) files mixed securities shelf offering


  • IPOs:

  • Expected to Price:

  • No IPOs expected to price.



Gapping Up/Down

  • Gapping up:

  • CNTX +33.5%, AI +20%, ORCL +11.7%, OCX +10.9%, AVGO +7.1%, INTT +5.6%, HALO +4.5%, LESL +4.1%, RRD +3.2%, ORC +2.9%, CXM +2.8%, GTE +2.5%, CCK +2.2%, TGLS +2.1%, CF +2.1%, ZUMZ +1.9%, COST +1.9%, BTG +1.6%, PRPB +1.4%, WM +1.3%, NEWP +1.1%,


  • Gapping down:

  • EVBG -30.7%, AOUT -19.1%, ANGN -18.9%, MESA-15.3%, CHWY -9.9%, PTRA -6.6%, FIZZ -5.6%, MTN-5.4%, IMUX -5%, AZUL -1.6%, TUP -1.5%, LULU-1.4%, LCID -1%,



Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Arconic (ARNC) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $40

  • Aurinia Pharma (AUPH) upgraded to Outperform from Perform at Oppenheimer; tgt lowered to $31

  • AvalonBay (AVB) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt $285

  • Bright Health Group (BHG) upgraded to Overweight from Neutral at JP Morgan; tgt $6

  • Commercial Metals (CMC) upgraded to Overweight from Neutral at JP Morgan; tgt $42

  • Greenbrier (GBX) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $56

  • Jabil (JBL) upgraded to Buy from Neutral at Goldman; tgt raised to $75

  • LyondellBasell (LYB) upgraded to Buy from Hold at HSBC Securities; tgt $112

  • Martin Marietta (MLM) upgraded to Buy from Hold at Truist; tgt $525

  • Oracle (ORCL) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $120

  • Patterson-UTI (PTEN) upgraded to Buy from Neutral at Citigroup; tgt $11

  • Royal Caribbean (RCL) upgraded to Hold from Sell at Berenberg; tgt $80

  • SM Energy (SM) upgraded to Outperform from Market Perform at Cowen; tgt raised to $42

  • Sprinklr (CXM) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $20

  • Zymeworks (ZYME) upgraded to Outperform from Mkt Perform at SVB Leerink


  • Downgrades:

  • AGCO Corp (AGCO) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $124

  • BJ Restaurants (BJRI) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $38

  • Carrier Global (CARR) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $56

  • Centerspace (CSR) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $112

  • Constellium (CSTM) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $21

  • Everbridge (EVBG) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $100

  • Everbridge (EVBG) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $90

  • Everbridge (EVBG) downgraded to Hold from Buy at Stifel; tgt lowered to $100

  • Everbridge (EVBG) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $95

  • Everbridge (EVBG) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $127

  • Fidelity Nat'l Info (FIS) downgraded to In-line from Outperform at Evercore ISI

  • Fiserv (FISV) downgraded to In-line from Outperform at Evercore ISI

  • Global Payments (GPN) downgraded to In-line from Outperform at Evercore ISI

  • Kaiser Alum (KALU) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $98

  • Mesa Air (MESA) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $7

  • Peloton (PTON) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $50

  • Radius Health (RDUS) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $7

  • Radius Health (RDUS) downgraded to Neutral from Buy at Goldman; tgt lowered to $12

  • Southwest Air (LUV) downgraded to Sell from Neutral at Goldman; tgt lowered to $36

  • Sumo Logic (SUMO) downgraded to Hold from Buy at Berenberg; tgt $16

  • Torrid (CURV) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $14


  • Others:

  • Abbott Labs (ABT) initiated with an Outperform at RBC Capital Mkts; tgt $146

  • AppLovin (APP) initiated with a Buy at DA Davidson; tgt $125

  • Aspen Aerogels (ASPN) initiated with a Buy at The Benchmark Company; tgt $70

  • Bank of America (BAC) resumed with a Buy at UBS; tgt $64

  • BioCryst Pharma (BCRX) initiated with an Outperform at Oppenheimer; tgt $16

  • Biogen (BIIB) resumed with a Mkt Perform at Raymond James

  • Boston Scientific (BSX) initiated with an Outperform at RBC Capital Mkts; tgt $51

  • Citigroup (C) resumed with a Neutral at UBS; tgt $67

  • Delcath (DCTH) initiated with a Buy at H.C. Wainwright; tgt $25

  • Denali Therapeutics (DNLI) resumed with a Mkt Perform at Raymond James

  • Edwards Lifesciences (EW) initiated with an Outperform at RBC Capital Mkts; tgt $142

  • European Sustainable Growth Acquisition Corp. (EUSG) initiated with a Buy at DA Davidson; tgt $17

  • Flywire (FLYW) initiated with a Neutral at Goldman; tgt $47

  • Global-E Online (GLBE) initiated with a Buy at Goldman; tgt $89

  • Globus Medical (GMED) initiated with an Outperform at RBC Capital Mkts; tgt $80

  • ironSource (IS) initiated with a Buy at DA Davidson; tgt $11

  • JPMorgan Chase (JPM) resumed with a Buy at UBS; tgt $210

  • Medtronic (MDT) initiated with an Outperform at RBC Capital Mkts; tgt $140

  • NuVasive (NUVA) initiated with an Outperform at RBC Capital Mkts; tgt $60

  • Paymentus (PAY) initiated with a Buy at Goldman; tgt $41

  • Payoneer (PAYO) initiated with a Neutral at Goldman; tgt $8.50

  • Pliant Therapeutics (PLRX) initiated with an Outperform at Oppenheimer; tgt $40

  • PNC (PNC) initiated with a Buy at UBS; tgt $240

  • Riskified (RSKD) initiated with a Sell at Goldman; tgt $9

  • SomaLogic (SLGC) initiated with a Buy at Jefferies; tgt $16

  • Spirit Realty Capital (SRC) initiated with an Outperform at Wolfe Research; tgt $57

  • Spruce Biosciences (SPRB) initiated with a Speculative Buy at The Benchmark Company; tgt $7

  • Stryker (SYK) initiated with a Sector Perform at RBC Capital Mkts; tgt $278

  • Teleflex (TFX) initiated with an Outperform at RBC Capital Mkts; tgt $415

  • Ternium S.A. (TX) initiated with a Buy at Goldman; tgt $57

  • Truist (TFC) initiated with a Neutral at UBS; tgt $63

  • U.S. Bancorp (USB) initiated with a Buy at UBS; tgt $70

  • Vale S.A. (VALE) resumed with a Neutral at Goldman

  • Wells Fargo (WFC) resumed with a Buy at UBS; tgt $65

  • Zimmer Biomet (ZBH) initiated with a Sector Perform at RBC Capital Mkts; tgt $140


Upcoming Events:

  • Econ Data:

  • 08:30 ET: CPI for Nov (Briefing.comConsensus 0.6%; Prior 0.9%)

  • 08:30 ET: Core CPI for Nov (Briefing.comConsensus 0.5%; Prior 0.6%)

  • 10:00 ET: Univ. of Michigan Consumer Sentiment Prelim for Dec (Briefing.comConsensus 68.0; Prior 67.4)

  • 14:00 ET: Treasury Budget for Nov (Briefing.comConsensus NA; Prior -$165.0B)


  • Earnings:

  • Monday (Dec 6)

  • Morning: SAIC

  • Afternoon: COUP HQY MDB SUMO


  • Tuesday (Dec 7)

  • Morning: AZO CONN DBI

  • Afternoon: AVAV CASY CHPT BASE PLAY PD S SFIX TOL


  • Wednesday (Dec 8)

  • Morning: BF.B CPB KFY LOVE PLAB THO UNFI VRA

  • Afternoon: GME GEF OXM PHR RH SPWH CURV PATH


  • Thursday (Dec 9)

  • Morning: CIEN HRL

  • Afternoon: AOUT AVGO CHWY COST LESL LULU MESA ORCL MTN


  • Friday (Dec 10)

  • Morning: ASO




Asia & Europe detail:

Asia: Nikkei -1.0%, Hang Seng -1.1%, Shanghai Composite -0.2%

Equity indices in the Asia-Pacific region ended the week on a lower note. Japan's PPI increased at its fastest yr/yr pace since 1981 in the November reading. A Bank of Japan official said that steelmakers are optimistic about a rebound in production this month. The Japanese government approved a tax reform plan for FY22, as expected. China will hold a 2.5 day central economic work conference, starting Wednesday.

  • In economic data:

  • Japan's November PPI 0.6% m/m (expected 0.3%; last 1.4%); 9.0% yr/yr (expected 8.5%; last 8.3%)

  • New Zealand's November Business NZ PMI 50.6 (last 54.3). November Electronic Card Retail Sales 9.6% m/m (last 10.0%); 2.9% yr/yr (last -7.6%)


---Equity Markets---

  • Japan's Nikkei: -1.0% (+1.5% for the week)

  • Hong Kong's Hang Seng: -1.1% (+1.0% for the week)

  • China's Shanghai Composite: -0.2% (+1.6% for the week)

  • India's Sensex: UNCH (+1.9% for the week)

  • South Korea's Kospi: -0.6% (+1.4% for the week)

  • Australia's ASX All Ordinaries: -0.3% (+1.7% for the week)

---FX---

  • USD/JPY: +0.3% to 113.78

  • USD/CNH: UNCH at 6.3732

  • USD/INR: +0.3% to 75.74


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

Major European indices trade near their flat lines, making for a quiet finish to the week. British Prime Minister Johnson may be facing a no-confidence vote from his party after the reimposition of coronavirus restrictions. Today is the deadline that was set for the U.K. and France to solve their fishing dispute, but the situation remains unresolved.

  • In economic data:

  • Germany's November CPI -0.2% m/m, as expected (last -0.2%); 5.2% yr/yr, as expected (last 5.2%)

  • U.K.'s October Industrial Production -0.6% m/m (expected 0.1%; last -0.4%); 1.4% yr/yr (expected 2.2%; last 2.9%). Manufacturing Production 0.0% m/m (expected 0.1%; last 0.1%); 1.3% yr/yr (expected 1.7%; last 2.8%). October Construction Output -1.8% m/m (expected 0.2%; last 1.3%); 3.2% yr/yr (expected 5.0%; last 7.2%). October trade deficit GBP13.93 bln (expected deficit of GBP14.06 bln; last deficit of GBP14.74 bln). Q3 GDP 4.6% yr/yr (expected 6.6%; last 5.3%)

  • Italy's October Industrial Production -0.6% m/m (expected 0.4%; last 0.1%); 2.0% yr/yr (expected 3.3%; last 4.5%)

  • Spain's October Industrial Production -0.9% yr/yr (expected 0.7%; last 0.4%)


---Equity Markets---

  • STOXX Europe 600: -0.2% (+2.9% week-to-date)

  • Germany's DAX: +0.1% (+3.2% week-to-date)

  • U.K.'s FTSE 100: UNCH (+2.8% week-to-date)

  • France's CAC 40: -0.1% (+2.0% week-to-date)

  • Italy's FTSE MIB: -0.1% (+3.3% week-to-date)

  • Spain's IBEX 35: -0.4% (+1.5% week-to-date)

---FX---

  • EUR/USD: -0.2% to 1.1272

  • GBP/USD: -0.1% to 1.3203

  • USD/CHF: +0.1% to 0.9242


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The S&P 500 futures are up 3 points and are trading % above fair value. The Nasdaq 100 futures are up 9 points and are trading roughly in-line with fair value. The Dow Jones Industrial Average futures