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14/11/23 Briefing


The S&P 500 futures are up 4 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 36 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 8 points and are trading fractionally above fair value.

Equity futures indicate a flattish open now, but that will likely change after the release of the October Consumer Price Index at 8:30 a.m. ET. Treasuries are little changed from yesterday in front of the data. The 2-yr note yield is down one basis point to 5.03% and the 10-yr note yield is down two basis point to 4.62%.

Home Depot (HD) is trading up ahead of the open after reporting better than expected earnings.

The House is expected to vote today on Speaker Mike Johnson's two step continuing resolution to fund the government through January 19 and February 2, according to The New York Times.

In corporate news:

  • Home Depot (HD 290.12, +2.05, +0.7%): beats by $0.06, reports revs in-line; guides FY24 EPS in-line, revs below consensus

  • Fisker (FSR 3.31, -0.80, -19.5%): misses by $0.04, misses on revs; delivered more cars in October than the entire Q3; to delay 10-Q filing

  • On (ONON 24.14, -2.42, -9.1%): beats by $0.06, beats on revs; guides FY23 revs above consensus

  • Tencent Music (TME 7.34, -0.09, -1.2%): misses by RMB0.05, beats on revs

  • Kraft Heinz (KHC 33.80, +0.56, +1.7%): upgraded to Outperform from Mkt Perform at Bernstein

  • Vipshop (VIPS 13.74, -0.56, -3.9%): beats by RMB0.46, misses on revs; guides Q4 revs below consensus

  • Teck Resources (TECK 38.50, +2.05, +5.6%): divests Steelmaking Coal Business for $9.0 bln

  • Canadian Solar (CSIQ 18.06, -2.91, -13.9%): reports Q3 (Sep) results, misses on revs; guides Q4 revs below consensus

  • NVIDIA (NVDA 489.15, +2.95, +0.6%): BofA reiterates Buy and $650 price target

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region trended mostly higher in Tuesday's trade, drawing some support from the resilience seen on Wall Street and speculation about a possible stimulus push in China. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.3%, India's Sensex: closed for holiday, South Korea's Kospi: +1.2%, Australia's All Ordinaries: +0.9%.

  • In economic data:

  • South Korea's October Export Price Index -9.5% yr/yr (last -8.9%) and Import Price Index -10.2% yr/yr (last -9.6%)

  • Australia's November Westpac Consumer Confidence 79.9 (last 82.0); October NAB Business Confidence -2 (last 0)

  • India's October WPI Inflation -0.52% yr/yr (expected -0.20%; last -0.26%)


  • In news:

  • Press reports are highlighting the potential for a cut in the required reserve ratio by the end of the year.

  • Bloomberg reports that China is considering $137 billion in new funding for its housing market.

  • Reuters notes that China is telling local governments to stop public-private partnership projects that are seen as problematic.

  • The yen's ongoing weakness has been problematic, triggering expectations for an intervention effort.

  • A spike seen overnight was dismissed as a function of an options position expiration.

  • Finance Minister Suzuki repeated that excessive moves in the currency market are undesirable.

  • USD/JPY currently flat at 151.72 with 152.0 seen by some as the potential bogey now for an official intervention push.



  • Major European indices are trading mostly higher with modest gains in front of the U.S. CPI Report's release at 8:30 a.m. ET. STOXX Europe 600: +0.1%, Germany's DAX: +0.5%, UK's FTSE 100: -0.4%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.5%.

  • In economic data:

  • Eurozone's Q3 GDP -0.1% qtr/qtr (expected -0.1%; last 0.2%); employment change 0.3% qtr/qtr (expected 0.1%; last 0.1%); November ZEW Economic Sentiment 13.8 (expected 6.1; last 2.3)

  • Germany's November ZEW Economic Sentiment 9.8 (expected 5.0; last -1.1)

  • UK's September unemployment rate 4.2% (expected 4.3%; last 4.2%); September Avg. Earnings Index + Bonus +7.9% (expected 7.4%; last 8.2%)

  • Switzerland's PPI 0.2% m/m (expected 0.1%; last -0.1%) and -0.9% yr/yr (last -1.0%)

  • Spain's October HICP 0.3% m/m (expected 0.3%; last 0.6%) and 3.5% yr/yr (expected 3.5%; last 3.3%)


  • In news:

  • The UK's FTSE is lagging the action following the UK's September employment report that showed wage growth coming in higher than expected.

  • Elsewhere, trading sentiment found some support in better than expected November ZEW Economic Sentiment readings for the eurozone and Germany.

  • Switzerland National Bank President Jordan maintains that the central bank would not hesitate to tighten policy more if it was deemed necessary. EUR/USD +0.3% to 1.0724.



U.S. equity futures:

  • S&P 500 Futures +2 @ 4,413

  • DJIA Futures: -3 @ 34,335

  • Nasdaq 100 Futures: +31 @ 15,514

Overseas:

  • Europe: DAX +0.1%, FTSE +0.6%, CAC +0.2%

  • Asia: Nikkei +0.4%, Hang Seng -0.2%, Shanghai Composite +0.3%

Commodities:

  • Crude Oil -0.21 @ 78.05

  • Nat Gas -0.006 @ 3.191

  • Gold -1.40 @ 1948.80

  • Silver +0.080 @ 22.1438

  • Copper +0.0000 @ 3.6660

Earnings/Guidance:

  • Aecom Tech ( ACM 7.37% ) beats by $0.04, beats on revs; guides FY24 EPS above consensus; increases repurchase authorization to $1.0 bln; increases quarterly dividend

  • Aramark ( ARMK 8.17% ) reports EPS in-line, beats on revs; guides FY24 EPS below consensus

  • Arcellx ( ACLX 0.00% ) reports Q3 results, revs below consensus, to report data next month

  • Asure Software ( ASUR 0.00% ) reports Q3 (Sep) results, misses on revs; guides Q4 revs below consensus; guides FY24 revs below consensus

  • Azenta ( AZTA 0.00% ) beats by $0.11, beats on revs; increases buyback authorization by $500 mln; also announces B Medical deal with Congo

  • Belite Bio ( BLTE 0.00% ) misses by $0.08

  • Camtek ( CAMT 0.00% ) beats by $0.04, beats on revs

  • Canadian Solar ( CSIQ 0.00% ) reports Q3 (Sep) results, misses on revs; guides Q4 revs below consensus

  • Danaos ( DAC 6.47% ) misses by $0.10; betas on revs; raises dividend, increases buyback auth by $100 mln

  • Fisker ( FSR 18.73% ) misses by $0.04, misses on revs; delivered more cars in October than the entire Q3

  • Harrow ( HROW 0.00% ) misses by $0.13, misses on revs; guides FY23 revs below consensus; guides FY24 revs below consensus

  • Home Depot ( HD 5.40% ) beats by $0.06, reports revs in-line; guides FY24 EPS in-line, revs below consensus

  • HUYA ( HUYA 7.60% ) beats by RMB0.68, beats on revs

  • Navigator Holdings ( NVGS 0.77% ) reports in-line results; beats on revs

  • Nuvalent ( NUVL 0.00% ) misses by $0.01

  • On ( ONON 3.43% ) beats by $0.06, beats on revs; guides FY23 revs above consensus

  • Rumble ( RUM 0.00% ) beats dual EPS cosnensus est by $0.02; misses on revs

  • Sun Life ( SLF 4.64% ) beats by $0.43; increases common share dividend 4% to $0.78 per share

  • Tencent Music TME 3.10% ) misses by RMB0.05, beats on revs

  • The Beauty Health Company ( SKIN 0.00% ) reports Q3 (Sep) results, misses on revs; guides FY23 revs below consensus

  • Vipshop ( VIPS 3.50% ) beats by RMB0.46, misses on revs; guides Q4 revs below consensus

  • Vodafone PLC ( VOD 0.00% ) reports H1 revenue of EUR 21.9 bln, -4.3% yr/yr (no comparable ests); reaffirms FY24 guidance

  • XP ( XP 0.79% ) misses by $0.05, beats on revs

News:

  • Democrats appear supportive of House Speaker Mike Johnson's two step continuing resolution to fund government through January 19 and February 2. House expected to vote today, according to the New York Times

  • China considers $137 bln in new funding for housing market, according to Bloomberg

  • IEA says world oil output increased by 320 kb/d in October to 102 mb/d

  • Absci Corporation ( ABSI 0.00% ) and Almirall announce AI drug discovery partnership to rapidly develop novel treatments for dermatological diseases

  • Aecom Tech ( ACM 7.37% ) affirms its capital allocation policy, increases share repurchase authorization to $1 billion and increases its quarterly dividend 22% to $0.22/share from $0.18/share

  • Airbus ( EADSY ): A defective Airbus engine is preventing a large order from Emirate, according to Bloomberg

  • Air Transport Services Group ( ATSG 0.00% ) announces that its subsidiary Airborne Global Leasing has delivered a newly converted Boeing 767-300 freighter to new customer My Freighter Cargo Airlines of Tashkent, Uzbekistan under the terms of a multi-year lease

  • AssetMark ( AMK 2.03% ) issues its October AMK report; platform assets increased 18.1% yr/yr to $97.8 bln, net flows were $334 million in the month, up 18.0% yr/yr

  • AstraZeneca ( AZN 0.00% ) reports Imfinzi plus chemotherapy approved in China as first immunotherapy regimen for patients with locally advanced or metastatic biliary tract cancer

  • AstraZeneca ( AZN 0.00% ) provides update on PACIFIC-2 Phase III trial for Imfinzi concurrently administered with chemoradiotherapy; study did not achieve primary endpoint

  • Boeing ( BA 1.43% ): SCAT Airlines announces order for seven Boeing 737 MAX Jets

  • Boeing ( BA 1.43% ): DHL mulling large freighter order from Boeing and Airbus (EADSY), according to Bloomberg

  • Copa Holdings ( CPA 4.50% ) reports October traffic increased 10.2% yr/yr

  • COPT Defense Properties ( CDP 5.75% ) appoints Britt A. Snider as CCO

  • Coty ( COTY 9.52% ) increases share repurchase program by $600 million to accommodate planned hedged share buyback transaction of additional 25 million shares

  • Five9 ( FVN ) appointed Andy Dignan as COO

  • General Dynamics ( GD 0.49% ) awarded $2.5 bln contract by the Indian Health Service to modernize its electronic health record system; the 10-yr contract has a five-year base period with five option years

  • General Electric ( GE 1.50% ) announced the Boards of Directors for GE Vernova-the planned independent public company that will be created following its spin-off from GE-and GE Aerospace

  • GigaCloud Technology Inc. ( GCT 0.00% ) provides update regarding previously announced independent review; claims in Culper Research short seller report were not substantiated

  • HIVE Digital Technologies ( HIVE 0.00% ) announces purchase of 4,800 Bitmain S19k Pro ASIC Miners

  • ICF International ( ICFI 0.00% ) recently awarded a new $36 mln task order from The U.S. Department of Homeland Security Office of Human Capital

  • Ipsen S.A. ( IPSEY ) announces results from Ipsen's ELATIVE pivotal Phase III trial of elafibranor in PBC presented as late breaking data at AASLD congress and published in New England Journal of Medicine

  • Jazz Pharma ( JAZZ 0.00% ): Autifony announces exclusive global license and collaboration agreement with Jazz Pharmaceuticals on two ion channel targets for neurological disorders

  • J.B. Hunt Transport ( JBHT 0.00% ) in connection with BNSF Railway and GMXT to launch new intermodal service between Monterrey, Silao-Bajio and Pantaco-Mexico City regions through the Eagle Pass, Texas border gateway

  • Johnson & Johnson ( JNJ 0.02% ) obtains regulatory approval in China for its MONARCH platform

  • Johnson Controls ( JCI 3.25% ) discloses that it expects delay in reporting Q4 results due to cybersecurity incident

  • KalVista Pharmaceuticals ( KALV 0.00% ) presents real-world data at the 2023 Annual Scientific Meeting of the American College of Allergy, Asthma & Immunology

  • Li-Cycle ( LICY 55.12% ) engages Moelis to evaluate financing and strategic alternatives

  • Nuvation Bio ( NUVB 5.47% ) announces departure of CFO Jennifer Fox, effective November 27

  • ProKidney ( PROK 0.00% ) announces positive interim data from RMCL-002 Phase 2 clinical trial of renal autologous cell therapy (REACT) for Diabetic CKD and provides corporate updates

  • PureTech's ( PRTC 1.62% ) LYT-300 (Oral Allopregnanolone) Achieved Primary Endpoint in a Phase 2a Acute Anxiety Trial in Healthy Volunteers

  • Roche's ( RHHBY ) subcutaneous injection of Tecentriq recommended by the EU's CHMP for multiple cancer types

  • RPT Realty ( RPT 7.77% ) declares special dividend of $0.05444 per common share in connection with the previously announced merger agreement with Kimco Realty (KIM)

  • Snap ( SNAP 7.52% ): Amazon (AMZN) reaches agreement with Snap for shopping ads, according to The Information

  • Tesla ( TSLA 0.00% ) aiming to double component imports from India, according to Reuters

  • The Beauty Health Company ( SKIN 0.00% ) CEO Andrew Stanleick to depart, effective November 19; Marla Beck to serve as Interim CEO

  • Viking Therapeutics ( VKTX 12.69% ) Presents New Data from Phase 2b VOYAGE Study of VK2809 in Patients with Biopsy-Confirmed Non-Alcoholic Steatohepatitis (NASH) at The Liver Meeting 2023

  • Vital Energy ( VTLE 1.23% ) announces promotion of Katie Hill to Senior Vice President and Chief Operating Officer, effective November 13, 2023

  • Walt Disney ( DIS 1.82% ): ESPN Bet launches today

  • Welltower ( WELL 1.72% ) issues business update; occupancy momentum witnessed in Q3 was sustained through October 2023

  • XP ( XP 0.79% ) approves cash dividend of $0.73 per share; representing a 25% increase over previous dividend paid in September

M&A:

  • Acacia Research ( ACTG 0.00% ) acquires majority interest in Benchmark Energy, an independent oil and gas company with resource plays in Texas and Oklahoma

  • Boston Properties ( BXP 10.70% ) agrees to sell a 45% interest in Kendall Square Life Sciences Properties

  • Fidelity National ( FNF 0.16% ) to invest $250 mln in majority owned subsidiary, F&G Annuities & Life

  • First Financial ( THFF 0.00% ) announces agreement to acquire SimplyBank for $718.38/share in cash and an aggregate value of $73.4 mln

  • Teck Resources ( TECK 0.49% ) divests Steelmaking Coal Business for $9.0 bln

Syndicate:

  • AerCap ( AER 0.83% ) files for 26,721,633 shares of common stock by selling shareholder; to repurchase approximately $500 mln

  • Allakos ( ALLK 0.00% ) files $250 mln common stock offering

  • DoubleVerify ( DV 1.45% ) prices secondary offering of 12.5 mln shares of common stock at $30.45 per share

  • Emerson ( EMR 2.25% ) files mixed shelf securities offering

  • IGM Biosciences ( IGMS 0.00% ) files $400 mln mixed shelf securities offering

  • Public Service ( PEG 3.11% ) files mixed shelf securities offering

  • Reneo Pharmaceuticals ( RPHM 0.00% ) files $300 mln mixed shelf securities offering

  • Runway Growth Finance ( RWAY 0.00% ) announces secondary offering of 3.75 common stocks by OCM Growth Holdings LLC and Oaktree Opportunities Fund XB Holdings

  • Skyward Specialty Insurance Group ( SKWD 0.00% ) files for 4,500,000 shares of common stock

  • Sutro Biopharma ( STRO 0.00% ) files mixed shelf securities offering

  • TELA Bio ( TELA 0.00% ) files $150 mln mixed shelf securities offering

  • Viper Energy Partners ( VNOM 0.00% ) prices secondary offering of 9,018,760 shares of its Class A common stock by certain selling stockholder worth ~$264 million

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

  • ABSI +15.2%, PROK +7.5%, AZTA +6.7%, TECK +4.3%, HUYA +3.8%, DWAC +3.1%, RPT +2.6%, LICY +2%, FWRD +2%, CTLT +1.2%, DAC +1.2%, HD +1.1%, WELL +0.8%, MTDR +0.7%


  • Gapping down:

  • SKIN -54.6%, HROW -24.9%, FSR -13.9%, CSIQ -13.1%, RWAY -6.6%, VNOM -6.3%, ASUR -6.3%, CCBG -5.5%, ONON -5%, VIPS -4.7%, SKWD -3.4%, GCT -3.2%, NUVB -3.1%, VKTX -2.8%, AER -2.8%, ACLX -2.6%, VOD -2.4%, DV -1.8%, ATSG -1.2%, ALLK -1.2%, NVGS -1.1%, AZN -0.9%, CAMT -0.9%, SPWR -0.8%


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

  • Upgrades

  • E


  • Downgrades:

  • B


  • Others:

  • B


Econ Data:

  • 08:30 ET: CPI for Oct (Briefing.com Consensus 0.1%; Prior 0.4%)

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

Earnings:

  • Monday (Nov 13)

  • Morning: FTRE GENI HSIC MNDY NABL ROIV SKIN TSEM TSN

  • Afternoon: ACM AZTA FSR HROW SLF


  • Tuesday (Nov 14)

  • Morning: ARMK CAE CAMT CSIQ CLBT ENR HD HUYA IHS OCSL ONON PSFE SBH SE TME VIPS WKME

  • Afternoon: HRTX VERX


  • Wednesday (Nov 15)

  • Morning: AAP CTLT DAVA GLBE GFF JD NTES RSKD TGT

  • During Market Hours: TJX

  • Afternoon: CSCO CPA HI JJSF KLIC MAXN MMS PANW SQM SONO TTEK


  • Thursday (Nov 16)

  • Morning: BABA BBWI BERY BRC BV DOLE M NICE SCVL SR SSYS WMT WMG WSM

  • Afternoon: AMAT BZH DLB ESE GPS GLOB POST ROST UGI WWD ZTO


  • Friday (Nov 17)

  • Morning: BJ BKE SPB TWST

  • Afternoon: ATKR



Asia & Europe detail:

Asia: Nikkei +0.4%, Hang Seng -0.2%, Shanghai Composite +0.3%

Equity indices in the Asia-Pacific region trended mostly higher in Tuesday's trade, drawing some support from the resilience seen on Wall Street and speculation about a possible stimulus push in China. Press reports are highlighting the potential for a cut in the required reserve ratio by the end of the year. Separately, Bloomberg reports that China is considering $137 billion in new funding for its housing market. At the same time, Reuters notes that China is telling local governments to stop public-private partnership projects that are seen as problematic. The yen's ongoing weakness has been problematic, triggering expectations for an intervention effort. A spike seen overnight was dismissed as a function of an options position expiration. Finance Minister Suzuki repeated that excessive moves in the currency market are undesirable. USD/JPY currently flat at 151.72 with 152.0 seen by some as the potential bogey now for an official intervention push.

  • In economic data:

  • South Korea's October Export Price Index -9.5% yr/yr (last -8.9%) and Import Price Index -10.2% yr/yr (last -9.6%)

  • Australia's November Westpac Consumer Confidence 79.9 (last 82.0); October NAB Business Confidence -2 (last 0)

  • India's October WPI Inflation -0.52% yr/yr (expected -0.20%; last -0.26%)


---Equity Markets---

  • Japan's Nikkei: +0.4%

  • Hong Kong's Hang Seng: -0.2%

  • China's Shanghai Composite: +0.3%

  • India's Sensex: closed for holiday

  • South Korea's Kospi: +1.2%

  • Australia's All Ordinaries: +0.9%

---FX---

  • USD/JPY: flat at 151.72

  • USD/CNH: +0.1% to 7.2984

  • USD/INR: flat at 83.220

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