top of page
Search

12/12/23 Briefing



The S&P 500 futures are up five points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 43 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 71 points and are trading 0.2% above fair value.

Stock futures are trading higher following yesterday's positive finish for the market. The bias could shift, though, with the release of the November Consumer Price Index at 8:30 a.m. ET. 

Treasury yields are moving lower in front of that report. The 10-yr note yield is down five basis points to 4.19% and the 2-yr note yield is down five basis points to 4.68%.

Earlier, the NFIB Small Business Optimism survey declined slightly to 90.6 in November from 90.7 in October. 

Notable data from overseas included Japan's November Producer Price Index, which was up 0.3% year-over-year, and the UK's employment data, which showed weaker-than-expected wage growth and a higher-than-expected claimant count.

In corporate news:

  • Oracle (ORCL 104.80, -10.33, -9.0%): beats by $0.01, reports slight miss on revs; guides FebQ EPS and revenue in-line

  • Alphabet (GOOG 133.78, -0.92, -0.7%): Epic Games wins antitrust lawsuit against Google (GOOG), according to the Washington Post

  • Hasbro (HAS 46.05, -2.84, -5.8%): confirms plans to reduce its workforce by approximately 900 positions over the next 18-24 months; expects gross annual run-rate cost savings of $350-400 mln by end of 2025

  • Ford (F 11.11, +0.04, +0.4%): will lower F-150 Lightning production by 50% next year, according to Automotive News

  • AstraZeneca (AZN 64.51, +1.01, +1.6%): Icosavax (ICVX) to be acquires by AstraZeneca for $15.00 pre share plus a non-tradable contingent value right to receive up to $5.00 in cash

  • KKR

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region followed Wall Street's lead and ended Tuesday mostly higher with modest gains. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: +1.3%, China's Shanghai Composite: +0.4%, India's Sensex: -0.5%, South Korea's Kospi: +0.4%, Australia's All Ordinaries: +0.5%.

  • In economic data:

  • Japan's November PPI 0.2% m/m (expected 0.2%; last -0.3%) and 0.3% yr/yr (expected 0.1%; last 0.9%)

  • Australia's November NAB Business Confidence -9 (last -3); December Westpac Consumer Sentiment 82.1 (last 79.9)

  • In news:

  • Things were more subdued on the mainland as investors awaited insight from the conclusion of China's Central Economic Work Conference.

  • Japan's Nikkei had been higher, but pulled back as the yen gained strength against the dollar.

  • Japan's Nikkei reported that the government is pushing tax breaks for large companies that offer 7% year-over-year wage increases for employees.

  • Japan's Producer Price Index was up 0.3% year-over-year in November, down from 0.9% in October and marking the eleventh straight slowdown in the annual rate.

  • Australia's Business Confidence Index hit its lowest level since 2012, excluding COVID period.

  • Reserve Bank of Governor Bullock, meanwhile, said he doesn't think Australia is falling behind other countries in its fight to ease consumer inflation.

  • Major European indices are mixed in front of this morning's release of the November Consumer Price Index in the U.S. and Thursday's ECB meeting. STOXX Europe 600: -0.1%, Germany's DAX: -0.2%, UK's FTSE 100: +0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: flat, Spain's IBEX 35: -0.7%.

  • In economic data:

  • Eurozone's December ZEW Economic Sentiment 23.0 (expected 11.2; last 13.8)

  • U.K.'s October Unemployment Rate 4.2% (expected 4.2%; last 4.2%); Average Earnings Index + Bonus 7.2% (expected 7.7%; last 8.0%); November Claimant Count Change 16.0K (expected 15.0K; last 8.9K)

  • Germany's December ZEW Economic Sentiment 12.8 (expected 8.8; last 9.8); November WPI -0.2% m/m (expected -0.1%; last -0.7%) and -3.6% yr/yr (last -4.2%)

  • In news:

  • The UK's FTSE (+0.3%) has advanced following employment data that showed weaker-than-expected wage growth and a higher-than-expected claimant count.

  • That combination has pulled forward expectations for a BOE rate cut to June from August.

  • Other economic news today included the fifth consecutive monthly increase in Germany's ZEW Economic Sentiment.

  • AstraZeneca announced the acquisition of Icosavax for $15.00 per share in cash, plus a non-tradable contingent value right to receive up to $5.00 in cash, payable upon achievement of specified regulatory and net sales milestones. EUR/USD +0.4% to 1.0801.

 

U.S. equity futures:

  • S&P 500 Futures +7 @ 4,629

  • DJIA Futures: +77 @ 36,482

  • Nasdaq 100 Futures: +46 @ 16,268

Overseas:

  • Europe: DAX -0.2%, FTSE +0.3%, CAC +0.1%

  • Asia: Nikkei +0.1%, Hang Seng +1.3%, Shanghai Composite +0.4%

Commodities:

  • Crude Oil -0.47 @ 70.85

  • Nat Gas +0.013 @ 2.444

  • Gold +10.05 @ 2003.75

  • Silver +0.224 @ 23.282

  • Copper +0.0193 @ 3.7998

Earnings/Guidance:

  • Blue Bird (

  • Casey's General (

  • Centene (

  • Haemonetics (

  • Hancock Whitney (

  • Johnson Controls (

  • Oracle (

News:

  • US and Ukrainian military leaders are considering new strategy, according to the New York Times

  • Country Garden expected to avoid yuan default, according to CNBC

  • Cop28 climate summit draft agreement has phased out references to the phaseout of fossil fuels, according to Financial Times

  • UK FCA writes to firms about the treatment of retained interest on customers' cash balances

  • AAR Corp (

  • Abacus Life (

  • ADC Therapeutics (

  • ADMA Biologics (

  • AllianceBernstein (

  • Amazon (

  • Ameresco (

  • Aramark's (

  • Artisan Partners Asset Mgmt (

  • AssetMark (

  • Athira Pharma (

  • Blackstone Mortgage Trust (

  • Boeing (

  • Bristol-Myers Squibb (

  • Bristol-Myers (

  • Bristol-Myers (

  • Centrais Electricas Brasileiras (

  • Cibus Global (

  • Disc (

  • Discover Financial Services (

  • Eli Lilly (

  • Farmland Partners (

  • Ford Motor (

  • Fortuna (

  • Franklin Resources (

  • Geron (

  • Gilead Sciences (

  • GlaxoSmithKline (

  • Google (

  • Grocery Outlet (

  • Harpoon Therapeutics (

  • Hasbro (

  • Hut 8 Mining (

  • ICF International (

  • Icosavax (

  • Invesco (

  • JP Morgan (

  • Lazard (

  • Legend Biotech (

  • Liquidia Technologies (

  • Lucid Group (

  • Materialise (

  • MaxCyte (

  • Meta Platforms (

  • Nokia (

  • nVent Electric (

  • Olaplex (

  • Ormat Tech (

  • Orthofix (

  • PAR Technology (

  • Pfizer (

  • Prudential (

  • ResMed (

  • Rogers Comms (

  • Sanofi (

  • Science Applications (

  • Sirius XM (

  • SunPower (

  • Sutro Biopharma (

  • Vertex Pharma (

  • Victory Capital (

  • Virtus Investment Partners (

  • Wabash Natl (

  • Waste Mgmt (

M&A:

  • Icosavax (

  • Innospec (

  • Installed Building Products (

  • KKR (

  • Seagen (

  • Star Bulk Carriers (

  • Taro Pharm (

  • TotalEnergies (

  • United Therapeutics (

  • Vista Outdoor (

  • Watts Water Tech. (

  • Wyndham Hotels & Resorts (

Syndicate:

  • Cibus Global (

  • Gulfport Energy (

  • Kinetik (

  • Liquidia Technologies (

  • NextNav (

  • Rigetti Computing (

  • SilverBow Resources (

  • Sun Country Airlines (

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

  • ICVX +46.1%, ADCT +12%, TARO +8.4%, BLBD +6.9%, HUT +4.2%, GERN +3.6%, IRON +3.6%, NOK +2.6%, OLPX +2.4%, WH +2.1%, PRU +2%, SBLK +1.9%, AZN +1.7%, GRCL +1.6%, SNY +1.1%, RGTI +1%, CNC +1%, KKR +0.9%, SPWR +0.9%, PNR +0.8%, IVZ +0.7%, GSK +0.7%, NXE +0.7%

  • Gapping down:

  • ORCL -8.6%, KNTK -6.7%, SBOW -6.5%, HAS -5.1%, SNCY -3.7%, LCID -2.2%, AIR -2%, IOSP -2%, HAE -2%, GPOR -1.8%, MAT -1.7%, LPTX -1.5%, IBP -0.6%, STRO -0.6%

 

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

  • Upgrades

  • Amalgamated Bank (AMAL) upgraded to Overweight from Neutral at JP Morgan; tgt $29

  • Amgen (AMGN) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $300

  • BlackRock (BLK) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $885

  • Eagle Materials (EXP) upgraded to Neutral from Underweight at JP Morgan; tgt $200

  • EverQuote (EVER) upgraded to Outperform from Mkt Perform at Raymond James; tgt $13

  • Extra Space Storage (EXR) upgraded to Overweight from Underweight at Wells Fargo; tgt raised to $155

  • HP Inc. (HPQ) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $35

  • HubSpot (HUBS) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $610

  • Quest Diagnostics (DGX) upgraded to Buy from Neutral at BofA Securities; tgt raised to $160

  • Downgrades:

  • Agilent (A) downgraded to Neutral from Buy at BofA Securities; tgt raised to $133

  • Airbnb (ABNB) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $100

  • AMC Networks (AMCX) downgraded to Neutral from Buy at Seaport Research Partners

  • Arthur J. Gallagher (AJG) downgraded to Mkt Perform from Strong Buy at Raymond James

  • CDW (CDW) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $216

  • Comerica (CMA) downgraded to Neutral from Overweight at JP Morgan; tgt $57

  • Expedia Group (EXPE) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $150

  • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Sell from Hold at Deutsche Bank

  • GoPro (GPRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $3

  • Grocery Outlet (GO) downgraded to Sell from Buy at Goldman; tgt lowered to $24

  • Others:

  • ACADIA Pharmaceuticals (ACAD) initiated with a Buy at Deutsche Bank; tgt $25

  • Acumen Pharmaceuticals (ABOS) initiated with a Buy at Deutsche Bank; tgt $8

  • Addus HomeCare (ADUS) initiated with an Outperform at TD Cowen; tgt $105

  • Alcon (ALC) initiated with a Buy at Stifel; tgt $85

  • Alector (ALEC) initiated with a Buy at Deutsche Bank; tgt $12

  • Amylyx Pharmaceuticals (AMLX) initiated with a Buy at Deutsche Bank; tgt $36

  • AZEK (AZEK) initiated with an Outperform at Wolfe Research; tgt $43

  • Bausch + Lomb (BLCO) initiated with a Hold at Stifel; tgt $16

  • Boeing (BA) initiated with an Outperform at William Blair

  • Brown & Brown (BRO) initiated with a Neutral at BofA Securities; tgt $77

  • Camden Property (CPT) initiated with an Equal-Weight at Morgan Stanley; tgt $95

  • Campbell Soup (CPB) initiated with an Equal Weight at Wells Fargo; tgt $47

  • COMPASS Pathways (CMPS) initiated with a Buy at Deutsche Bank; tgt $16

  • Crocs (CROX) initiated with a Buy at BofA Securities; tgt $128

  • Electronic Arts (EA) initiated with a Peer Perform at Wolfe Research

  • Enhabit Inc. (EHAB) initiated with a Market Perform at TD Cowen; tgt $12

  • Freshpet (FRPT) initiated with an Overweight at Wells Fargo; tgt $90

  • fuboTV (FUBO) initiated with an Overweight at Cantor Fitzgerald; tgt $5

  • Gannett (GCI) initiated with a Buy at Compass Point; tgt $5

  • HEICO (HEI) initiated with an Outperform at William Blair

  • Solo Brands (DTC) initiated with a Neutral at B. Riley Securities; tgt $5.50

Econ Data:

  • 06:00 ET: NFIB Small Business Optimism for Nov (Briefing.com Consensus NA; Prior 90.7)

  • 08:30 ET: CPI for Nov (Briefing.com Consensus 0.0%; Prior 0.0%)

  • 08:30 ET: Core CPI for Nov (Briefing.com Consensus 0.3%; Prior 0.2%)

  • 14:00 ET: Treasury Budget for Nov (Briefing.com Consensus NA; Prior -$66.6B)

Earnings:

  • Monday (Dec 11)

  • Afternoon: CASY ORCL

  • Wednesday (Dec 13)

  • Morning: ABM CGNT PLAB REVG

  • Afternoon:  ADBE NDSN

  • Thursday (Dec 14)

  • Morning: JBL

  • Afternoon: COST LEN

  • Friday (Dec 15)

  • Morning: DRI

 

Asia & Europe detail:

Asia: Nikkei +0.1%, Hang Seng +1.3%, Shanghai Composite +0.4%

Equity indices in the Asia-Pacific region followed Wall Street's lead and ended Tuesday mostly higher with modest gains. Hong Kong's Hang Seng (+1.3%) was the winning standout. Things were more subdued on the mainland as investors awaited insight from the conclusion of China's Central Economic Work Conference. Japan's Nikkei had been higher, but pulled back as the yen gained strength against the dollar. Japan's Nikkei reported that the government is pushing tax breaks for large companies that offer 7% year-over-year wage increases for employees. Separately, Japan's Producer Price Index was up 0.3% year-over-year in November, down from 0.9% in October and marking the eleventh straight slowdown in the annual rate. Australia's Business Confidence Index hit its lowest level since 2012, excluding COVID period. Reserve Bank of Governor Bullock, meanwhile, said he doesn't think Australia is falling behind other countries in its fight to ease consumer inflation.

  • In economic data:

  • Japan's November PPI 0.2% m/m (expected 0.2%; last -0.3%) and 0.3% yr/yr (expected 0.1%; last 0.9%)

  • Australia's November NAB Business Confidence -9 (last -3); December Westpac Consumer Sentiment 82.1 (last 79.9)

---Equity Markets---

  • Japan's Nikkei: +0.1%

  • Hong Kong's Hang Seng: +1.3%

  • China's Shanghai Composite: +0.4%

  • India's Sensex: -0.5%

  • South Korea's Kospi: +0.4%

  • Australia's All Ordinaries: +0.5%

---FX---

  • USD/JPY: -0.6% to 144.22

  • USD/CNH: -0.2% to 7.1806

  • USD/INR: UNCH at 83.374

 

Europe: DAX -0.2%, FTSE +0.3%, CAC +0.1%

Major European indices are mixed in front of this morning's release of November Consumer Price Index in the U.S. and Thursday's ECB meeting. The moves up, or down, from yesterday, are modest in scope. The UK's FTSE (+0.3%) has advanced following employment data that showed weaker-than-expected wage growth and a higher-than-expected claimant count. That combination has pulled forward expectations for a BOE rate cut to June from August. Other economic news today included the fifth consecutive monthly increase in Germany's ZEW Economic Sentiment. Separately, AstraZeneca announced the acquisition of Icosavax for $15.00 per share in cash, plus a non-tradable contingent value right to receive up to $5.00 in cash, payable upon achievement of specified regulatory and net sales milestones. EUR/USD +0.4% to 1.0801.

  • In economic data:

  • Eurozone's December ZEW Economic Sentiment 23.0 (expected 11.2; last 13.8)

  • U.K.'s October Unemployment Rate 4.2% (expected 4.2%; last 4.2%); Average Earnings Index + Bonus 7.2% (expected 7.7%; last 8.0%); November Claimant Count Change 16.0K (expected 15.0K; last 8.9K)

  • Germany's December ZEW Economic Sentiment 12.8 (expected 8.8; last 9.8); November WPI -0.2% m/m (expected -0.1%; last -0.7%) and -3.6% yr/yr (last -4.2%)

---Equity Markets---

  • STOXX Europe 600: -0.1%

  • Germany's DAX: -0.2%

  • UK's FTSE 100: +0.3%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: flat

  • Spain's IBEX 35: -0.7%

---FX---

  • EUR/USD: +0.4% to 1.0801

  • GBP/USD: +0.1% to 1.2566

  • USD/CHF: -0.4% to 0.8745

5 views0 comments

Recent Posts

See All

Comments


bottom of page