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11/11/21 Briefing

The S&P 500 futures trade 24 points, or 0.5%, above fair value as the market tries to rebound from two days of selling, which was attributed to profit taking, hawkish Fed expectations, and rising Treasury yields.

The Treasury market will be out of the picture today since it's closed for Veterans Day. Likewise, there is no economic data scheduled for today, leaving the market in a state of digestion while investors review the latest news headlines.

In response to earnings news, Walt Disney (DIS 164.75, -9.70, -5.4%) is down 5%, Affirm Holdings (AFRM 167.91, +33.48, +25.6%) is up 25%, Opendoor Technologies (OPEN 23.00, +3.50, +17.8%) is up 18%, and Beyond Meat (BYND 76.31, -18.12, -19.4%) is down 19%.

Separately, Axios is reporting that Senator Manchin (D-WV) could delay a decision on whether to vote on the $1.75 trillion budget reconciliation bill until next year due to high inflation and so Congress can focus on the debt ceiling issue. Recall, total CPI was up 6.2% year-over-year in October.

The U.S. Dollar Index is up 0.2% to 95.02 for the first time since July 2020. WTI crude futures are down 0.8%, or $0.63, to $80.82/bbl.

In U.S. Corporate news:

  • Walt Disney (DIS 164.75, -9.70): -5.4% after missing top and bottom-line estimates.

  • Tesla (TSLA 1094.00, +28.06): +2.4% after CEO Elon Musk filed Form-4 insider sales, revealing he sold approximately $4.7 billion worth of stock over the past two days. Last Saturday, Mr. Musk asked Twitter if he should sell 10% of his stake to pay taxes.

  • Affirm Holdings (AFRM 167.91, +33.48): +25.6% after beating revenue estimates, guiding revenue for fiscal Q2 and FY22 above consensus, and expanding its Amazon.com (AMZN 3512.94, +30.89, +0.9%) relationship to all eligible U.S. purchases.

  • Beyond Meat (BYND 76.31, -18.12): -19.4% after missing EPS estimates and guiding Q4 revenue below consensus.

  • Opendoor Technologies (OPEN 23.00, +3.50): +17.8% after beating top and bottom-line estimates and guiding Q4 revenue above consensus.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific ended Thursday on a mostly higher note. Japan's Nikkei: -0.6% Hong Kong's Hang Seng: +1.0% China's Shanghai Composite: +1.2% India's Sensex: -0.7% South Korea's Kospi: -0.2% Australia's ASX All Ordinaries: -0.5%.

  • In economic data:

  • Japan's October PPI 1.2% m/m (expected 0.4%; last 0.3%); 8.0% yr/yr (expected 7.0%; last 6.3%)

  • Australia's October Employment Change -46,300 (expected 50,000; last -138,000) and Full Employment Change -40,400 (last 26,700). October Unemployment Rate 5.2% (expected 4.8%; last 4.6%) and October Participation Rate 64.7% (expected 64.9%; last 64.5%)

  • New Zealand's October FPI -0.9% m/m (last 0.5%)


  • In news:

  • The night went by without additional news about Evergrande after yesterday's conflicting headlines regarding the company's delayed debt payments. The Chinese government is reportedly looking at relaxing property rules to make it easier for troubled developers to sell assets.

  • South Korea's exports through the first ten days of November were up 29.3% yr/yr with chip exports growing 45.3%.



  • Major European indices trade in mixed fashion. STOXX Europe 600: +0.1% Germany's DAX: +0.1% U.K.'s FTSE 100: +0.4% France's CAC 40: +0.1% Italy's FTSE MIB: -0.1% Spain's IBEX 35: -0.6%.

  • In economic data:

  • U.K.'s September GDP 0.6% m/m (last 0.4%). Flash Q3 GDP 1.3% qtr/qtr (expected 1.5%; last 5.5%); 6.6% yr/yr (expected 6.8%; last 23.6%). September Construction Output 1.3% m/m (expected 0.2%; last -0.7%); 7.2% yr/yr (expected 6.9%; last 10.1%). September Industrial Production -0.4% m/m (expected 0.2%; last 1.0%); 2.9% yr/yr (expected 3.1%; last 3.7%). September Manufacturing Production 0.1% m/m (expected 0.2%; last 0.3%); 2.8% yr/yr (expected 3.1%; last 4.1%). September trade deficit GBP14.74 bln (expected deficit of GBP14.30 bln; last deficit of GBP14.93 bln)

  • In news:

  • European Central Bank policymaker Holzmann said that a deterioration in the economic situation means that the pre-pandemic growth path may not be reached for two years, adding that inflation should be below 2% in 2023 or 2024.

  • The European Commission raised its forecast for eurozone inflation in 2021 to 2.4% from 1.9% while the outlook for 2022 was increased to 2.2% from 1.4%. The forecast expects inflation at 1.4% in 2023.

  • European Economic Commissioner Gentiloni said that the Italian economy is moving from recovery to expansion.




U.S. equity futures:

  • S&P 500 Futures: +17 @ 4,664

  • DJIA Futures: +43 @ 36,123

  • Nasdaq 100 Futures: +105 @ 16,091

Overseas:

  • Europe: DAX +0.1%, FTSE +0.4%, CAC +0.1%

  • Asia: Nikkei -0.6%, Hang Seng +1.0%, Shanghai Composite +1.2%

Commodities:

  • Crude Oil -0.59 @ 80.59

  • Nat Gas +0.128 @ 5.008

  • Gold +12.90 @ 1860.90

  • Silver +0.225 @ 24.997

  • Copper +0.0720 @ 4.3950

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • 1stdibs.com (DIBS) misses by $0.03, beats on revs; guides Q4 revs above consensus

  • 23andMe (ME) beats by $0.09, reports revs in-line

  • Affirm (AFRM) reports Q1 (Sep) results, beats on revs; guides DecQ revs above consensus; guides FY22 revs above consensus

  • Amwell (AMWL) beats by $0.02, misses on revs; lowers FY21 revenue guidance below consensus

  • AppLovin (APP) reports Q3 (Sep) results, beats on revs

  • ArcelorMittal (MT) beats by $0.14, misses on revs

  • Atmos Energy (ATO) misses by $0.01, beats on revs; guides FY22 EPS mostly above consensus; declares dividend

  • Azul S.A. (AZUL) beats by BRL 0.91, beats on revs

  • Beazer Homes (BZH) beats by $0.75, beats on revs; issues upside FY 22 EPS guidance

  • Beyond Meat (BYND) misses by $0.48, reports revs in-line; guides Q4 revs below consensus

  • Blend Labs (BLND) misses by $0.27, beats on revs

  • Brooks Automation (BRKS) beats by $0.01, beats on revs

  • Bumble Inc. (BMBL) misses by $0.14, reports revs in-line; raises FY21 revs guidance above consensus

  • CMC Materials (CCMP) misses by $0.25, reports revs in-line; guides Q1 revs in-line

  • Compass (COMP) misses by $0.14, beats on revs; guides Q4 revs above consensus

  • Cricut (CRCT) misses by $0.03, misses on revs

  • Datto Holding (MSP) beats by $0.05, beats on revs; guides Q4 revs above consensus

  • Digi Intl (DGII) beats by $0.01, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Dillard's (DDS) reports Q3 (Oct) results, beats on revs

  • Docebo (DCBO) reports Q3 (Sep) results, beats on revs

  • Duolingo (DUOL) reports Q3 (Sep) results, beats on revs; guides Q4 revs above consensus

  • Dutch Bros (BROS) beats by $0.15, beats on revs; guides Q4 revs above consensus

  • Edgewell Personal Care (EPC) beats by $0.17, beats on revs; guides FY22 EPS in-line, revs above consensus

  • Enersys (ENS) misses by $0.06, misses on revs

  • Fair Isaac (FICO) beats by $0.74, misses on revs; guides FY22 EPS above consensus, revs below consensus

  • FIGS, Inc. (FIGS) beats by $0.01, beats on revs; guides FY21 revs above consensus

  • Frontier Group Holdings (ULCC) beats by $0.10, beats on revs

  • Gold Fields (GFI) reports Q3 production results; reaffirms FY21 guidance

  • GoodRx (GDRX) reports EPS in-line, revs in-line; guides Q4 revs in-line

  • Hims & Hers Health (HIMS) reports EPS in-line, beats on revs; raises FY21 revs guidance above consensus

  • Honest Company (HNST) reports EPS in-line, beats on revs

  • indie Semiconductor (INDI) beats by $0.02, beats on revs

  • Kinross Gold (KGC) beats by $0.02, misses on revs

  • LegalZoom.com (LZ) misses by $0.02, beats on revs; guides Q4 revs in-line

  • Maravai Life Sciences (MRVI) beats by $0.09, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Marqeta (MQ) beats by $0.06, beats on revs; guides Q4 revs above consensus

  • MediaAlpha (MAX) reports Q3 (Sep) results, misses on revs; guides Q4 revs below consensus

  • NICE (NICE) beats by $0.05, beats on revs; guides FY21 EPS above consensus, revs above consensus

  • Opendoor Technologies (OPEN) beats by $0.08, beats on revs; guides Q4 revs above consensus

  • Payoneer (PAYO) beats by $0.04, beats on revs; guides FY21 revs above consensus

  • PGT Inc. (PGTI) beats by $0.03, reports revs in-line; guides FY21 revs in-line

  • Red Robin Gourmet (RRGB) misses by $0.34, reports revs in-line

  • Remitly Global (RELY) reports Q3 (Sep) results, beats on revs; guides FY21 revs above consensus

  • Root, Inc. (ROOT) misses by CAD0.73, beats on revs

  • Rush Street Interactive (RSI) betas by $0.07, beats on revs, raises FY21 revenue guidance

  • Sally Beauty (SBH) beats by $0.13, beats on revs; guides FY22 revs in-line

  • Schrodinger (SDGR) misses by $0.10, misses on revs; guides FY21 revs below consensus

  • Scorpio Tankers (STNG) misses by $0.11, misses on revs

  • Siemens AG (SIEGY) reports Q4 results; revs rise 18%; provides outlook

  • SoFi Technologies (SOFI) beats by $0.09; guides Q4 revs below consensus

  • SolarWinds (SWI) guides 2022 revs in-line

  • SpartanNash (SPTN) beats by $0.03, beats on revs; guides FY21 EPS in-line, revs in-line

  • Tapestry (TPR) beats by $0.12, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • TaskUs (TASK) misses by $0.02, beats on revs; guides Q4 revs above consensus

  • Thryv (THRY) beats by $0.18, beats on revs

  • Utz Brands (UTZ) beats by $0.24, beats on revs; reaffirms FY21 EPS guidance

  • WalkMe Ltd. (WKME) misses by $0.02, beats on revs; guides Q4 revs in-line

  • Walt Disney (DIS) misses by $0.14, misses on revs

  • Weibo (WB) beats by $0.05, beats on revs; guides Q4 revs in-line

  • Wish (WISH) reports Q3 (Sep) results, misses on revs; sees sequential revenue decline

  • Wix.com (WIX) beats by $0.20, beats on revs; raises FY21 revs in-line

  • YETI Holdings (YETI) beats by $0.04, beats on revs; raises FY21 guidance

  • ZipRecruiter (ZIP) beats by $0.21, beats on revs; guides Q4 revs above consensus

  • General News:

  • Senator Joe Manchin (D-WV) could delay decision on whether to vote for or against $1.75 trillion budget reconciliation bill until next year amid high inflation figures, according to Axios

  • A White House official says President Biden is still deciding between Jerome Powell and Lael Brainard for Fed Chair amid pressure from moderates and progressives in Congress, according to Reuters

  • President Biden and Chinese President Xi will have virtual summit Monday night, according to Politico

  • Chinese President Xi will deliver a party doctrine, according to Bloomberg

  • Judge allows Texas schools to setup mask mandates if they want to, according to the New York Times

  • Algoma Steel Group (ASTL) announces final investment decision for electric arc steelmaking; plans to invest ~CDN$700 mln in the EAF transformation

  • AMC Entertainment (AMC): CEO A. Aron discloses sale of 625K shares worth approx. $25.33 mln (transaction date 11/09)

  • Bayer AG (BAYRY): New Phase III study to investigate expanded use of vericiguat in patients with chronic heart failure with reduced ejection fraction

  • Berkshire Grey (BGRY) secures $36 million in new orders

  • Bitfarms (BITF) acquired a 24 Megawatt (MW) hydro power farm in Washington state, USA

  • Boeing (BA) will compensate victims of 737 crash, according to Reuters

  • Charles River (CRL) announces that Birgit Girshick has been promoted to the position of Chief Operating Officer, effective immediately

  • Didi (DIDI) aiming to reintroduce China applications, according to Reuters

  • DoorDash (DASH) and Payfare launch instant pay access for delivery drivers

  • Enersys (ENS) announces planned retirement of CFO Michael J. Schmidtlein, effective March 31, 2022; establishes new $100 mln stock repurchase authorization

  • GeoPark (GPRK) renews share repurchase program

  • Gilead Sciences (GILD): Everest Medicines and Gilead Sciences jointly announce Phase 2b Study of Sacituzumab Govitecan conducted in China of Patients with metastatic triple-negative breast cancer meets primary overall response rate endpoint

  • Hims & Hers Health (HIMS) unveils mobile platform for subscription members

  • HollyFrontier (HFC) promotes Tim Go to President and COO, effective immediately

  • Humanigen (HGEN) announces clinical trial collaboration to evaluate lenzilumab in acute graft versus host disease

  • Johnson & Johnson (JNJ) enters into agreement with the US Government and Gavi to enable humanitarian access to COVID-19 vaccine

  • Leidos (LDOS) awarded three-year contract to support UK MOD PICASSO program

  • Lordstown Motors (RIDE) and Hon Hai Technology Group have entered into a definitive Asset Purchase Agreement regarding LMC's facility in Lordstown, Ohio

  • Oncorus (ONCR) signed an exclusive licensing agreement with Gaeta Therapeutics Ltd for use of Interleukin-12 (IL-12)

  • Proterra (PTRA) announces agreement to supply battery technology for up to 10,000 Lightning eMotors (ZEV) vehicles

  • RLI Corp (RLI) appoints Craig W. Kliethermes as CEO and Jennifer L. Klobnak as COO, effective January 1; declares special cash dividend of $2.00/share

  • Sight Sciences (SGHT) announces that the Food and Drug Administration has granted an Investigational Device Exemption authorizing the Company to conduct a clinical study to assess the safety and effectiveness of a new, higher volume, investigational OMNI device

  • Sony (SONY) will lower production of PlayStation 5 due to chip shortages, according to Bloomberg

  • Starbucks (SBUX) workers are aiming to expand stores represented in Buffalo, NY union vote, according to the Wall Street Journal

  • WalkMe (WKME) expands partnership with SAP (SAP) and announces strategic alliance with Deloitte

  • Wish (WISH) announces that Piotr Szulczewski will be stepping down as Chief Executive Officer

  • Zillow (ZG) aiming to sell 2000 homes from flipping business, according to the Wall Street Journal

  • M&A:

  • Cooper (COO) agrees to acquire Generate Life Sciences for $1.6 bln

  • Organon (OGN) will acquire Forendo, a clinical-stage drug development company focused on novel treatments in women's health

  • PowerSchool (PWSC) agrees to acquire Kickboard; terms not disclosed


  • Syndicate:

  • 3D Systems (DDD) announces offering of $350 mln aggregate principal amount of convertible senior notes due 2026

  • 908 Devices (Nasdaq) prices 3.15 mln share IPO at $32.00 per share

  • Alpine Immune Sciences (ALPN) files for 9,680,844 share common stock offering by selling shareholders

  • Apria (APR) prices secondary offering of 4.5 mln shares of common stock by a selling stockholder affiliated with Blackstone (BX) at $31.50 per share

  • C4 Therapeutics (CCCC) files for mixed securities shelf offering; also files for $200 mln common stock offering related to Sales Agreement

  • Diversey Holdings (DSEY) prices follow-on offering of 15 mln ordinary shares at $15.00

  • Farmer Brothers (FARM) files for $175 mln mixed securities shelf offering

  • First Advantage Corp. (FA) prices secondary offering of 15 mln shares of common stock at $20.00 per share

  • Hain Celestial (HAIN) announces secondary offering of 12,379,504 common shares by selling stockholders

  • KnowBe4 (KNBE) prices offering of 8 mln shares of common stock by certain selling stockholders at $25.75 per share

  • Mirati Therapeutics (MRTX) prices 3,448,275 shares of common stock at $145.00 per share

  • ObsEva (OBSV) files for 11,477,396 share common stock offering by selling shareholders

  • Unity Software (U) files mixed securities shelf offering

  • WeWork (WE) files for 61,323,777 share common stock offering related to warrants; also files for 628,323,420 share common stock offering by selling shareholders

  • IPOs:

  • Expected to Trade:

  • Backblaze (Nasdaq: BLZE): The storage cloud platform, providing businesses and consumers cloud services to store, use, and protect their data, priced its 6.3 M share IPO at $16, the midpoint of the $15-$17 expected range.

  • Lulu's Fashion Lounge (Nasdaq: LVLU): The digitally native fashion brand primarily serving Millennial and Gen Z women women priced its 5.8 M share IPO at $16, the midpoint of the $15-$17 expected range.

  • Weave Communications (NYSE: WEAV): The cloud-based software platform that streamlines the day-to-day operations of running a small business priced its 5.0 M share IPO at $24, below the $25-$28 expected range.



Gapping Up/Down

  • Gapping up:

  • FOSL +32.6%, AFRM +27.7%, OPEN +17.2%, MQ +16.6%, SOFI +15.5%, ZIP +13.8%, DUOL +12%, RIDE +11.7%, ROOT +10.3%, SGHT +10.2%, BZH +9.4%, HNST +8.9%, DGII +8.7%, HIMS +8.5%, DIBS +8.4%, KRMD +8.2%, ME +7.6%, BROS +7.5%, GFI +7.3%, WB +7.3%, PTRA +6.8%, PAYO +6.8%, WIX +5.9%, NICE +5.7%, APP +5%, MSP +4.8%, MT +4.6%, PHX +4.4%, INSP +4%, FARM +3.9%, AEM +3.7%, DOMA +3.2%, KGC +3.1%, OWLT +2.8%, HFC +2.7%, TSLA +2.5%, RELY +2.2%, WE +2.1%, ABUS +2%, RSI +1.8%, KL +1.6%, INDI +1.6%, NUVB +1.5%, U +1.4%, ULCC +1.4%, KEYS +1%, ATO +1%, TRMR +1%


  • Gapping down:

  • BYND -19.9%, CRCT -17.9%, SDGR -16.9%, LZ -11.7%, BLND -9.4%, FIGS -8.4%, ALPN -7.8%, BMBL -7.2%, DIS -4.9%, GDRX -4.7%, BRKS -4.4%, COO -4.2%, RRGB -4%, VLTA -3.7%, MKTW -3.6%, HAIN -3.5%, FICO -3%, DDD -2.6%, ENS -2.5%, ESMT -2.5%, WISH -2.4%, YETI -2.1%, HLTH -2%, BLU -1.8%, APR -1.7%, LDOS -1.1%, MRTX -1.1%, WKME -1.1%


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

  • Upgrades

  • ADMA Biologics (ADMA) upgraded to Strong Buy from Outperform at Raymond James; tgt $5

  • Fresenius Medical (FMS) upgraded to Hold from Underperform at Jefferies

  • GoPro (GPRO) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $11

  • Guild Holdings (GHLD) upgraded to Overweight from Neutral at JP Morgan; tgt $16.50

  • Kosmos Energy (KOS) upgraded to Overweight from Equal Weight at Barclays; tgt $3.95

  • Xometry (XMTR) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt lowered to $53


  • Downgrades:

  • Allot Comms (ALLT) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $14

  • Beyond Meat (BYND) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $100

  • Hyliion (HYLN) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $7

  • IPG Photonics (IPGP) downgraded to Mkt Perform from Outperform at Bernstein; tgt $160

  • Primoris Services (PRIM) downgraded to Sell from Neutral at Goldman; tgt lowered to $24

  • Restaurant Brands Int'l (QSR) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • Schrodinger (SDGR) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $52

  • TPI Composites (TPIC) downgraded to Hold from Buy at Stifel; tgt lowered to $27


  • Others:

  • AEye (LIDR) initiated with a Buy at DA Davidson; tgt $15

  • atai Life Sciences N.V. (ATAI) initiated with a Buy at ROTH Capital; tgt $32

  • Carvana (CVNA) assumed with a Peer Perform at Wolfe Research

  • NextNav (NN) initiated with an Outperform at Oppenheimer; tgt $15

  • Silvergate Capital (SI) initiated with an Overweight at JP Morgan; tgt $300


Upcoming Events:

  • Econ Data:

  • 10:00 ET: JOLTS - Job Openings for Sep (Briefing.com Consensus NA; Prior 10.439 M)

  • 10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for Nov (Briefing.com Consensus 71.7; Prior 71.7)

  • Earnings:

  • Monday (Nov 8)

  • Morning: BKI IMOS COTY EDIT EHTH XPRO GTES HLIO VAC RDNT RETA TTD TSEM THS TSE USFD VTRS WOW

  • Afternoon: DDD ACAD AEIS AMC AEL AMRS ATCO BLDP BAND CBT CSII CXW ENV FIVN FRPT IPAR IFF NVTA JKHY BEKE LFST DOOR MRTX MRC MWA NCMI NHI NVRO NEWR NEX OSH PYPL PRAA PRI PRIM PRA RBLX SANM SWAV SDC SQSP TME REAL TPIC TREX TRIP TWO SPCE VUZI WPRT ZIXI ZNGA


  • Tuesday (Nov 9)

  • Morning: ADT ATC BSY BHVN BNTX CAH CEVA ECOM DHI EBIX ECVT EPZM FSS HAE HAIN HGV HUYA IIVI IGT ITCI MLCO MIDD MNTV MSGE NOVT PLTR PRPL SEAS STWD SYY TGI TUFN VCEL VSAT WNC WRK WKHS

  • Afternoon: TWOU AKA AMPL ARLO ASH AMK EPAY ELY CARG CERT CCXI COIN DAR DASH DV DOCS EVBG FGEN FLYW FUBO FLGT G GLBE GOCO GO HCAT TWNK NARI INO JAZZ DNUT LGND MCFE MODN MSGS NSTG NIO NUVA OLO ONTF LPRO PAAS PYCR POSH PUBM RPAY RNG SAIL SCSC SGMS SEER SILK STEP TOST TTEC TPTX U UPST VZIO VRM WES WYNN


  • Wednesday (Nov 10)

  • Morning: ME ADNT AER APG GIB DFH ENR FVRR IS KELYA KRNT MNDY EYE PFGC PRGO SHCR FOUR SHC FLOW VERX WEN WWW

  • Afternoon: DIBS AFRM AMWL APP ATO BZH BYND BRKS BMBL CCMP COMP CRCT MSP DUOL BROS ENS FICO FIGS ULCC GDRX HIMS HNST KGC LZ MRVI MQ MAX OPEN RRGB ROOT SDGR SOFI SPTN TASK DIS WISH ZIP


  • Thursday (Nov 11)

  • Morning: MT AZUL CAE CELH EPC GRWG NICE OGN PGTI SBH STNG TPR THRY UTZ WB WIX YETI

  • Afternoon: AQN ARRY BLNK CPNG FLO GAN JAMF RIDE PAGS PVG


  • Friday (Nov 12)

  • Morning: AZN CGEN ROLL SPB WRBY

Asia & Europe detail:

Asia: Nikkei -0.6%, Hang Seng +1.0%, Shanghai Composite +1.2%

Equity indices in the Asia-Pacific ended Thursday on a mostly higher note. The night went by without additional news about Evergrande after yesterday's conflicting headlines regarding the company's delayed debt payments. The Chinese government is reportedly looking at relaxing property rules to make it easier for troubled developers to sell assets. South Korea's exports through the first ten days of November were up 29.3% yr/yr with chip exports growing 45.3%.

  • In economic data:

  • Japan's October PPI 1.2% m/m (expected 0.4%; last 0.3%); 8.0% yr/yr (expected 7.0%; last 6.3%)

  • Australia's October Employment Change -46,300 (expected 50,000; last -138,000) and Full Employment Change -40,400 (last 26,700). October Unemployment Rate 5.2% (expected 4.8%; last 4.6%) and October Participation Rate 64.7% (expected 64.9%; last 64.5%)

  • New Zealand's October FPI -0.9% m/m (last 0.5%)


---Equity Markets---

  • Japan's Nikkei: -0.6%

  • Hong Kong's Hang Seng: +1.0%

  • China's Shanghai Composite: +1.2%

  • India's Sensex: -0.7%

  • South Korea's Kospi: -0.2%

  • Australia's ASX All Ordinaries: -0.5%

---FX---

  • USD/JPY: +0.1% to 113.95

  • USD/CNH: +0.1% to 6.3933

  • USD/INR: UNCH at 74.41

Europe: DAX +0.1%, FTSE +0.4%, CAC +0.1%

Major European indices trade in mixed fashion. European Central Bank policymaker Holzmann said that a deterioration in the economic situation means that the pre-pandemic growth path may not be reached for two years, adding that inflation should be below 2% in 2023 or 2024. The European Commission raised its forecast for eurozone inflation in 2021 to 2.4% from 1.9% while the outlook for 2022 was increased to 2.2% from 1.4%. The forecast expects inflation at 1.4% in 2023. European Economic Commissioner Gentiloni said that the Italian economy is moving from recovery to expansion.

  • In economic data:

  • U.K.'s September GDP 0.6% m/m (last 0.4%). Flash Q3 GDP 1.3% qtr/qtr (expected 1.5%; last 5.5%); 6.6% yr/yr (expected 6.8%; last 23.6%). September Construction Output 1.3% m/m (expected 0.2%; last -0.7%); 7.2% yr/yr (expected 6.9%; last 10.1%). September Industrial Production -0.4% m/m (expected 0.2%; last 1.0%); 2.9% yr/yr (expected 3.1%; last 3.7%). September Manufacturing Production 0.1% m/m (expected 0.2%; last 0.3%); 2.8% yr/yr (expected 3.1%; last 4.1%). September trade deficit GBP14.74 bln (expected deficit of GBP14.30 bln; last deficit of GBP14.93 bln)

---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: +0.1%

  • U.K.'s FTSE 100: +0.4%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: -0.1%

  • Spain's IBEX 35: -0.6%

---FX---

  • EUR/USD: -0.1% to 1.1472

  • GBP/USD: UNCH at 1.3404

  • USD/CHF: +0.3% to 0.9205








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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