The S&P 500 futures are down 10 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 54 points and are trading 0.5% below fair value. The Dow Jones Industrial Average futures are down 48 points and are trading 0.2% below fair value.
There is a negative disposition in the equity futures market this morning that reflects a normal consolidation period coming off a big week.
Treasury yields are rising again. The 2-yr note yield is up six basis points to 4.38% and the 10-yr note yield is up seven basis points to 3.88%.
Fed Governor Christopher Waller said "we've still got a ways to go" before stopping interest rate hikes, according to Bloomberg.
Democrats will keep control of the Senate following wins in Arizona and Nevada. Republicans are likely to have small majority in House once all votes are counted.
China is introducing a 16-point plan to support its property market. On a related note, President Xi and President Biden met ahead of the G-20 summit.
The U.S. Dollar Index is up 0.6% to 106.91.
In corporate news:
Bank of America (BAC 38.05, -0.36, -0.94%) : Citigroup downgraded from Neutral to Buy
Walt Disney (DIS 95.02, +0.01, +0.01%): plans a targeted hiring freeze and job cuts, according to CNBC
Tesla (TSLA 194.30, -1.67, -0.85%) : Elon Musk said "I have too much work on my plate," according to Reuters
Advanced Micro Devices (AMD 74.68, +2.31, +3.19%): Baird upgraded to Outperform and UBS upgraded to Buy
Teva Pharma (TEVA 9.29, -0.19, -2.00%): JPMorgan downgraded to Underweight from Neutral
Hasbro (HAS 59.50, -3.91, -6.17%) : Bank of America downgraded to Underperform from Buy
Dentsply Sirona (XRAY 29.24, -2.81, -8.77%): misses by $0.17, misses on revs; guides FY22 EPS in-line, revs below consensus
Tyson Foods (TSN 68.02, +0.61, +0.90%): misses by $0.09, beats on revs; guides FY23 revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: -1.1%, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: -0.1%, India's Sensex: -0.3%, South Korea's Kospi: -0.3%, Australia's ASX All Ordinaries: UNCH.
In economic data:
China's October FDI 15.6% yr/yr (last 15.6%)
India's October WPI Inflation 8.39% yr/yr (expected 8.70%; last 10.70%). WPI Food 8.33% yr/yr (last 11.03%)
In news:
Property names outperformed in Hong Kong after China announced a 16-point plan to rescue developers.
China Securities Journal reported that authorities are expected to inject up to CNY1 trln in liquidity through a medium-term lending facility.
South Korea may increase electricity prices for 2023.
There is growing speculation that the Reserve Bank of New Zealand will only raise its official cash rate by 50 bps next week.
Major European indices trade in positive territory. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.4%.
In economic data:
Eurozone's September Industrial Production 0.9% m/m (expected 0.3%; last 2.0%); 4.9% yr/yr (expected 2.8%; last 2.8%)
Swiss October PPI 0.0% m/m (expected 0.2%; last 0.2%); 4.9% yr/yr (last 5.4%)
In news:
British Chancellor Hunt will present the Autumn Budget Statement on Thursday.
European Commission President von der Leyen repeated that the price cap on Russian oil will be ready by the end of the year.
Germany's Chemical Industry Association reiterated its forecast for a 5.5% yr/yr decrease in 2022 production.
U.S. equity futures:
S&P 500 Futures: -11 @ 3,982
DJIA Futures: -51 @ 33,697
Nasdaq 100 Futures: -59 @ 11,758
Overseas:
Europe: DAX +0.3%, FTSE +0.4%, CAC +0.2%
Asia: Nikkei -1.1%, Hang Seng +1.7%, Shanghai Composite -0.1%
Commodities:
Crude Oil -1.16 @ 87.80
Nat Gas +0.403 @ 6.282
Gold +6.20 @ 1763.20
Silver -0.052 @ 21.615
Copper -0.0785 @ 3.835
Earnings/Guidance:
908 Devices (MASS) beats by $0.01, reports revs in-line; lowers FY22 revs below consensus
Aecom Tech (ACM) misses by $0.01, misses on revs; guides FY23 EPS in-line
Akoustis Technologies (AKTS) misses by $0.10; beats on revs
American Electric (AEP) reaffirms operating EPS guidance for FY22 and FY23; will continue to invest in its regulated operations
Baozun (BZUN) reports total record high total order value for the 2022 11.11 Shopping Festival
Clear Secure (YOU) beats by $0.05, beats on revs; guides Q4 revs above consensus
Cogent Biosciences (COGT) beats by $0.02
Dentsply Sirona (XRAY) misses by $0.17, misses on revs; guides FY22 EPS in-line, revs below consensus
Embraer SA reports Q3 EPS per ADS of ($0.16) vs. ($0.07) Capital IQ two estimate average; revs -4% yr/yr to $929 mln; reaffirms FY22 net income guidance of $4.5.5.0 bln; reaffirms commercial aviation deliveries for FY22 of 60-70
Monday.com(MNDY) beats by $0.59, beats on revs; guides Q4 revs above consensus
NuScale Power (SMR) reports Q3 results
Oatly Group AB (OTLY) misses by $0.07, misses on revs; lowers FY22 revs below consensus
PNM Resources (PNM) reaffirms FY22/ sees FY23 revs in line
Roivant Sciences (ROIV) reports Q2 results
Stoke Therapeutics (STOK) beats by 0.02; beats on revs
Thoughtworks (TWKS) misses by $0.03, beats on revs; guides Q4 EPS below consensus, revs below consensus
Tower Semi (TSEM) beats by $0.01, reports revs in-line
Tyson Foods (TSN) misses by $0.09, beats on revs; guides FY23 revs above consensus
News:
Democrats keep control of Senate following wins in Arizona and Nevada. Republicans are likely to have small majority in House once all votes are counted, according to the New York Times
Former President Trump is expected to announce his presidential run tomorrow despite pressure from his allies to wait, according to CBS News
House Speaker Nancy Pelosi wants to raise debt ceiling in lame duck session, according to Bloomberg
Fed Governor Christopher Waller says Fed "still got a ways to go" before stopping interest rate hikes, according to Bloomberg
Beijing coronavirus cases hit record, according toReuters
At least $1 bln in client funds are missing at FTX, according to Reuters
Medical device companies experienced supply chain issues, according to the Wall Street Journal
4D Molecular Therapeutics (FDMT) announces interim clinical data from cohort 1 of the Phase 1/2 clinical trial of intravitreal 4D-150 for wet AMD
Alphabet's (GOOG) Google Cloud announced three new Healthcare Data Engine (HDE) accelerators-developed in collaboration with Hackensack Meridian Health, Lifepoint Health, and others
Apple (AAPL) aiming to introduce 3D world and video service, according to Bloomberg
Ascendis Pharma (ASND) reports Once-Weekly TransCon CNP Achieved Primary Efficacy Objective, with Superiority at 100 g/kg/week, in Ascendis Pharma's Phase 2 ACcomplisH Trial of Children with Achondroplasia Aged 2 to 10 Years
AstraZeneca (AZN) reports Imfinzi plus chemotherapy recommended for approval in the EU by CHMP as first immunotherapy regimen for advanced biliary tract cancer
AstraZeneca (AZN) and Merck (MRK) reports Lynparza in combination with abiraterone recommended for approval in the EU by CHMP
AstraZeneca' (AZN) ENHERTU recommended for approval in the EU by CHMP for patients with previously treated HER2 positive advanced gastric cancer
Azul S.A. (AZUL) reports October traffic increased 11% yr/yr
Babcock & Wilcox Enterprises (BW) unit awarded more than $42 mln in significant upgrade and maintenance projects within the electrical utility, pulp & paper, and oil & gas segments in North America
Blackrock (BLK) suspends plans for China bond ETF., according to Financial Times
Clear Secure (YOU) declares $0.25 special cash dividend
Cronos Group (CRON) names James Holm as CFO
CureVac (CVAC) presented preliminary data from Phase 1 study expansion of oncology candidate CV8102
Daseke (DSKE) entered into an agreement with its founder, Mr. Don R. Daseke, and affiliates, to repurchase their total holdings (17,932,725 shares) at $6.00 per share
Emergent BioSolutions (EBS) announced a research US DoD award to evaluate efficacy of the company's single-dose chikungunya virus virus-like particle (CHIKV VLP) vaccine candidate
Eve Holding (EVEX) files to delay its 10-Q; is currently performing a further assessment of the condensed consolidated financial statements to determine the full extent of any adjustments in the amounts previously reported
HF Sinclair (DINO) entered into a Stock Purchase Agreement pursuant to which the Company agreed to repurchase from the Selling Stockholder 1,650,165 shares of the common stock
HUTCHMED (HCM) Announces Positive Topline Result in Fruquintinib Phase III FRUTIGA Study in Second-Line Gastric Cancer in China
Infinity Pharmaceuticals (INFI) Provides MARIO-3 Update in Patients with Front Line Metastatic Triple Negative Breast Cancer Suggesting Potential Long-Term Patient Benefit of Eganelisib
Intellia Therapeutics (NTLA) Presents New Interim Data from First-in-Human Study of NTLA-2002 for the Treatment of Hereditary Angioedema (HAE) at the American College of Allergy, Asthma & Immunology 2022 Annual Scientific Meeting
Ionis (IONS) presents positive Phase 2 data from open label extension study of donidalorsen at 2022 ACAAI Annual Meeting
iQIYI (IQ) elected Mr. Junjie He as Chairman of the Board of Directors
JP Morgan (JPM) avoided buyout lending deals that cost competitors, according to the Wall Street Journal
KalVista Pharmaceuticals (KALV) presents patient-focused data at American College of Allergy, Asthma & Immunology 2022 Meeting
Kezar Life Sciences (KZR) Presents Positive Complete Results from the MISSION Phase 2 Trial Evaluating Zetomipzomib in Lupus Nephritis at the American College of Rheumatology Convergence 2022
Lantheus Holdings (LNTH) and POINT Biopharma (PNT) announce strategic collaboration and exclusive license agreements for the commercialization of PNT2002 & PNT2003
Merck (MRK): LYNPARZA in combination with abiraterone and prednisone or prednisolone receives positive opinion from EU CHMP as treatment for certain patients with metastatic castration-resistant prostate cancer
Mizuho Financial (MFG) revised its estimates of the year-end and annual dividends per share for the fiscal year ending March 31, 2023
MSG Network (MSGE, MSGS) aiming to introduce paid application, according to the New York Post
Roche Hldg (RHHBY) provides update on Phase III GRADUATE programme evaluating gantenerumab in early Alzheimer's disease; studies did not meet their primary endpoints of slowing clinical decline in people with early Alzheimer's
Scotts Miracle-Gro (SMG) names Matthew Garth executive vice president and chief financial officer, effective December 1, 2022
Silvergate Capital (SI) issues statement regarding its exposure to FTX
Stantec (STN) announces renewal of Normal Course Issuer Bid and Automatic Share Purchase Plan
Tesla (TSLA) will assist police in China crash investigation., according to Reuters
Viridian Therapeutics (VRDN) announces positive data from ongoing phase 1/2 trial evaluating vrdn-001 in patients with thyroid eye disease
Visa (V) terminated debit card agreements with FTX, according to Reuters
Walt Disney (DIS) plans a targeted hiring freeze and job cuts, according to CNBC
M&A:
BioNTech (BNTX) acquires GMP Manufacturing Site in Singapore
Bruker (BRKR) announces agreement to acquire Neurescence Inc., bolstering neuroscience research portfolio
Energy Fuels (UUUU) to sell three wholly-owned subsidiaries that together hold Energy Fuels' Alta Mesa ISR Project for total consideration of $120 mln; Transaction is expected to close by the end of 2022 or early 2023
KKR (KKR) aiming to invest $500 mln in Freyr Battery, according to Bloomberg
MedTech Acquisition Corp (MTAC): TriSalus Life Sciences to become publicly traded through merger with MTAC
United Rentals (URI) to acquire Ahern Rentals for $2 billion
Wash. Federal (WAFD) and Luther Burbank Corporation (LBC) merge to form $29 bln asset Western US bank
Syndicate:
Alight (ALIT) announced the commencement of an underwritten secondary public offering of up to 20 mln shares of Alight's Class A common stock
Envestnet (ENV) to offer $350 million of convertible notes
ESAB Corp. (ESAB) commencement of an underwritten offering of 6,003,431 shares of its common stock currently owned by Enovis Corporation (ENOV), ESAB's former parent company
IPOs:
Expect to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
SI +16.5%, HCM +14.7%, BZUN +2.8%, YOU +2.2%, MSGS +2.1%, DSKE +2%, NTLA +1.9%, AZN +1.4%, AEP +1.4%, ERJ +1.2%, DINO +0.8%, PFSW +0.6%
Gapping down:
XRAY -9.5%, HOOD -3.9%, URI -3.1%, AZUL -2.2%, COIN -1.8%, BNTX -1.4%, MSTR -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Allete (ALE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $66
Americold Realty Trust (COLD) upgraded to Buy from Neutral at BofA Securities; tgt raised to $33.50
ASML (ASML) upgraded to Positive from Neutral at Susquehanna; tgt raised to $850
Atlas Copco AB (ATLKY) upgraded to Buy from Neutral at Citigroup
Beam Global (BEEM) upgraded to Buy from Neutral at H.C. Wainwright; tgt $30
Blend Labs (BLND) upgraded to Mkt Perform from Underperform at Keefe Bruyette; tgt $2.25
Oak Street Health (OSH) upgraded to Overweight from Equal-Weight at Morgan Stanley
Ritchie Bros. (RBA) upgraded to Buy from Neutral at Northcoast; tgt $65
Downgrades:
Alexander & Baldwin (ALEX) downgraded to Neutral from Overweight at Piper Sandler; tgt $20
Ares Management (ARES) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $93
Bank of America (BAC) downgraded to Neutral from Buy at Citigroup; tgt $40
Barings BDC (BBDC) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $10
Omega Health (OHI) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $33
Oscar Health (OSCR) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $5
Sierra Bancorp (BSRR) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $24
Others:
Sachem Capital (SACH) initiated with a Mkt Perform at JMP Securities
Upcoming Events:
Econ Data:
No economic data of note.
Earnings:
Monday (Nov 14)
Morning: MASS ACM YOU CGEN XRAY MNDY OTLY TWKS TSEM TSN
Afternoon: AZTA DLO HLLY JJSF SHLS VVV
Tuesday (Nov 15)
Morning: ARMK BERY DAVA ENR AQUA HD HUYA DNUT SE TME WKME WMT
Afternoon: AAP VREX
Wednesday (Nov 16)
Morning: LOW ONON SR TGT TJX
Afternoon: BBWI CSCO CPA CPRT GLBE HP HI KLIC NVDA SONO
Thursday (Nov 17)
Morning: BABA BJ BRC BV CAMT CLBT DOLE KSS M NTES NJR WB
Afternoon: AMAT BRBR DLB ESE FTCH GPS GLOB KEYS PANW POST ROST STNE UGI WSM WWD
Friday (Nov 18)
Morning: ATKR BKE FL JD SPB TWST
Asia & Europe detail:
Asia: Nikkei -1.1%, Hang Seng +1.7%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Property names outperformed in Hong Kong after China announced a 16-point plan to rescue developers. China Securities Journal reported that authorities are expected to inject up to CNY1 trln in liquidity through a medium-term lending facility. South Korea may increase electricity prices for 2023. There is growing speculation that the Reserve Bank of New Zealand will only raise its official cash rate by 50 bps next week.
In economic data:
China's October FDI 15.6% yr/yr (last 15.6%)
India's October WPI Inflation 8.39% yr/yr (expected 8.70%; last 10.70%). WPI Food 8.33% yr/yr (last 11.03%)
---Equity Markets---
Japan's Nikkei: -1.1%
Hong Kong's Hang Seng: +1.7%
China's Shanghai Composite: -0.1%
India's Sensex: -0.3%
South Korea's Kospi: -0.3%
Australia's ASX All Ordinaries: UNCH
---FX---
USD/JPY: +1.3% to 140.61
USD/CNH: -0.2% to 7.0760
USD/INR: +1.0% to 81.26
Europe: DAX +0.3%, FTSE +0.4%, CAC +0.2%
Major European indices trade in positive territory. British Chancellor Hunt will present the Autumn Budget Statement on Thursday. European Commission President von der Leyen repeated that the price cap on Russian oil will be ready by the end of the year. Germany's Chemical Industry Association reiterated its forecast for a 5.5% yr/yr decrease in 2022 production.
In economic data:
Eurozone's September Industrial Production 0.9% m/m (expected 0.3%; last 2.0%); 4.9% yr/yr (expected 2.8%; last 2.8%)
Swiss October PPI 0.0% m/m (expected 0.2%; last 0.2%); 4.9% yr/yr (last 5.4%)
---Equity Markets---
STOXX Europe 600: +0.2%
Germany's DAX: +0.3%
U.K.'s FTSE 100: +0.4%
France's CAC 40: +0.2%
Italy's FTSE MIB: +0.5%
Spain's IBEX 35: +0.4%
---FX---
EUR/USD: -0.7% to 1.0279
GBP/USD: -0.6% to 1.1761
USD/CHF: +0.6% to 0.9469