The S&P 500 futures are down 2 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 1 points and are trading roughly in line with fair value. The Dow Jones Industrial Average futures are down 31 points and are trading 0.1% below fair value.
There is not a lot of conviction in the equity futures market. Participants are hesitant following big gains coming into this holiday-shortened week. Markets will be closed on Thursday and close at 1:00 p.m. ET on Friday for Thanksgiving.
The 2-yr note yield is unchanged from Friday at 4.90% and the 10-yr note yield is up four basis points to 4.48%. On a related note, there will be a $16 billion 20-yr bond auction today; results will be released at 1:00 p.m. ET.
The People's Bank of China left its one-year and five-year loan prime rates unchanged at 3.45% and 4.20%, respectively.
In corporate news:
Microsoft (MSFT 374.87, +5.02, +1.3%): announces that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team
Walgreens (WBA 21.21, -0.01, -0.1%): aims to offload Boots pension scheme, according to the Sunday Times UK
Bristol-Myers (BMY 48.70, -2.14, -4.2%): and 2seventy bio (TSVT) announce the U.S. FDA's Oncologic Drugs Advisory Committee will meet to review data supporting the supplemental Biologics License Application for Abecma for earlier lines of triple-class exposed relapsed or refractory multiple myeloma based on results from the pivotal Phase 3 KarMMa-3 study
Boeing (BA 210.80, +2.76, +1.3%): upgraded to Buy from Hold at Deutsche Bank
Dutch Bros (BROS 28.50, +0.65, +2.3%): upgraded to Overweight from Neutral at JP Morgan
Vale S.A. (VALE 15.32, +0.18, +1.2%): upgraded to Buy from Neutral at BofA Securities
Chegg (CHGG 9.93, -0.53, -5.1%): downgraded to Underweight from Equal-Weight at Morgan Stanley
Krispy Kreme, Inc. (DNUT 12.74, -0.30, -2.3%): downgraded to Neutral from Overweight at JP Morgan
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: +1.9%, China's Shanghai Composite: +0.5%, India's Sensex: -0.2%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: +0.1%.
There was no noteworthy data
In news:
The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.45% and 4.20%.
Alibaba refuted speculation that it is looking to cut 25,000 jobs.
Japan's Finance Minister Suzuki said that bright signs are emerging in the Japanese economy.
New Zealand is reportedly closer to having a new government after National Party, ACT New Zealand, and New Zealand First agreed on some policy programs as they pursue a coalition agreement.
Major European indices trade near their flat lines while Spain's IBEX (+0.6%) outperforms. STOXX Europe 600: -0.1%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: +0.6%.
In economic data:
Eurozone's September Construction Output 0.45% m/m (last -1.06%)
Germany's October PPI -0.1% m/m, as expected (last -0.2%); -11.0% yr/yr, as expected (last -14.7%)
In news:
Bayer is down nearly 20.0% in Frankfurt after an early stop to one of the company's studies and news that it is on the hook to pay over $1.5 bln in a case related to Roundup.
The U.K. may lower income taxes and national insurance fees in the Autumn budget statement.
European Central Bank policymaker Wunsch said that rates should stay unchanged in December and January, but future hikes should not be ruled out.
Moody's affirmed Italy's Baa3 rating and raised the outlook to Stable from Negative.
Moody's raised Portugal's rating to A3 from Baa2 with a Stable outlook.
U.S. equity futures:
S&P 500 Futures -3 @ 4,511
DJIA Futures: -40 @ 34,907
Nasdaq 100 Futures: -1 @ 15,837
Overseas:
Europe: DAX -0.3%, FTSE -0.3%, CAC +0.2%
Asia: Nikkei -0.6%, Hang Seng +1.9%, Shanghai Composite +0.5%
Commodities:
Crude Oil +1.47 @ 77.51
Nat Gas -0.048 @ 2.912
Gold -10.15 @ 1974.55
Silver -0.375 @ 23.477
Copper +0.0213 @ 3.7598
Earnings/Guidance:
Ashtead ( ASHTF ) lowers FY23 rental revenue guidance
Franco-Nevada ( FNV 0.00% ) provides additional operations update and revised Franco-Nevada guidance
Legend Biotech ( LEGN ▴ 0.06% ) beats by $0.14, misses on revs
ReNew ( RNW ▴ 0.34% ) reports Q2 results (no comparable ests)
Simulations Plus ( SLP 0.00% ) issues slides ahead of Monday investor presentation; reaffirms FY24 EPS and revenue guidance
VEON ( VEON ▾ 0.63% ) raises full-year revenue and EBITDA guidance, return to USD revenue growth, exit from Russia completed (no ests)
News:
Israel and Hamas close to deal to release hostages in exchange for five day pause in fighting, according to the Washington Post
UK Treasury chief Jeremy Hunt is considering tax cuts and more restrictions on welfare benefits, according to ABC News
ESG funds are closing following disappointing returns, according to the Wall Street Journal
Far-right candidate Javier Milei wins election in Argentina. He plans to eliminate Argentina's central bank and switch its currency to US dollar, according to the New York Times
Several advertisers have paused spending on X following controversial comments from Elon Musk, according to the New York Times
I-80 Gold Corp ( IAUX 0.00% ) announces high-grade results from underground drilling at Cove
10x Genomics ( TXG 0.00% ) Wins Another Patent Infringement Case Against NanoString Technologies
American Water Works ( AWK ▾ 0.02% ) reaches partial settlement agreement in its general rate case on revenues
AstraZeneca ( AZN ▾ 0.02% ) launches Evinova, a health-tech business to accelerate innovation across the life sciences sector, the delivery of clinical trials and bet
Bayer AG ( BAYRY ) OCEANIC-AF study stopped early due to lack of efficacy
Bayer ( BAYRY ): Monsanto ordered to pay $1.5 bln by Missouri jury in Roundup weedkiller case, according to Bloomberg
Blackstone ( BX ▾ 0.02% ) could secure portfolio of $17 bln in commercial real estate loans from Signature Bank (SBNY), according to Bloomberg
Bowman Consulting Group ( BWMN 0.00% ) announces a new $10 million share repurchase program
Bristol-Myers ( BMY 0.00% ) and 2seventy bio (TSVT) announce the U.S. FDA's Oncologic Drugs Advisory Committee will meet to review data supporting the supplemental Biologics License Application for Abecma for earlier lines of triple-class exposed relapsed or refractory multiple myeloma based on results from the pivotal Phase 3 KarMMa-3 study
Canada Goose ( GOOS ▾ 0.05% ) Announces Renewal of Normal Course Issuer Bid
Centrus Energy ( LEU ▾ 0.35% ) announces that Amir Vexler will succeed Daniel Poneman as Chief Executive Officer on January 1, 2024
Churchill Capital Corp VI ( CCVI 0.00% ) to redeem all shares; co will not consummate an initial business combination; stock will cease trading
enCore Energy Corp. ( EU ▾ 0.13% ) provides update from South Texas Alta Mesa In-Situ Recovery Uranium Central Processing Plant and Wellfield
Expro Group ( XPRO ▴ 0.13% ) discloses update regarding main crane incident; continues to expect that recovery and repair costs, net of insurance, will not be material to the Company's financial results
General Motors ( GM 0.00% ): Kyle Vogt resigns as CEO of GM's Cruise unit
General Motors ( GM 0.00% ) Cruise unit will allow employee share sales, according to Reuters
Masimo ( MASI ▴ 0.01% ) receives FDA clearance or over-the-counter and prescription use
Medtronic ( MDT 0.00% ) announces FDA approval of minimally invasive device to treat hypertension
Merck ( MRK 0.00% ): FDA panel votes against data submitted by MRK related to chronic cough drug gefapixant, according to Reuters
Microsoft ( MSFT 0.00% ) announces that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team
N-able ( NABL ▾ 0.08% ) announces that Cove Data Protection for Microsoft 365 now offers additional layer of protection from data loss for Microsoft Teams
Nevro ( NVRO ▴ 0.12% ) delivers long-term relief with high-frequency spinal cord stimulation: 24-month data demonstrates profound improvements for non-surgical refractory back pain
Nikola Corp ( NKLA 0.00% ) CFO Anastasiya Pasterick to resign
Novartis AG ( NVS ▾ 0.02% ) showcases significant data updates from Kisqali, iptacopan and Scemblix at SABCS and ASH
NRG Energy ( NRG ▾ 0.12% ) announces leadership changes
Oscar Health ( OSCR 0.00% ) announces that Mark Bertolini's Foundation and Deerfield Management have entered into an agreement with a selling shareholder to purchase shares of Oscar Health
Palo Alto Networks ( PANW ▴ 0.00% ) increases share repurchase authorization by $316.7 mln, bringing total auth to $1 bln
Perdoceo Education ( PRDO 0.00% ) appoints Todd Nelson as President and CEO; Andrew Hurst resigned on Nov 15
Qorvo ( QRVO ▾ 0.02% ) names Dr. Walden C. Rhines as Chair of the Board, replacing Ralph Quinsey who is retiring
Signature Bank's ( SBNY ▾ 41.18% ) apartment loans are selling at a large discount, according to the Wall Street Journal
Starbucks ( SBUX ▾ 0.03% ): Luckin Coffee surpassed Starbucks in China sales, according to the Wall Street Journal
Teck Resources ( TECK ▴ 0.08% ) receives regulatory approval for share buy-back program
Tempur Sealy Int'l ( TPX 0.00% ) certifies substantial compliance with the FTC"s second request
Walgreens ( WBA ▴ 0.05% ) aims to offload Boots pension scheme, according to Sunday Times UK
M&A:
American Shared ( AMS ▴ 1.23% ) to acquire 60% majority interest in three radiation therapy cancer centers
Coeur Mining's ( CDE 0.00% ) subsidiary, Coeur Mexicana, has signed a purchase agreement with a subsidiary of Fresnillo to acquire mining concessions adjacent to the Palmarejo gold-silver complex located in the state of Chihuahua, Mexico
Zevra Therapeutics ( ZVRA ▴ 0.46% ) completes acquisition of Acer Therapeutics, which included 2.96 mln shares of stock and contingent value rights
Syndicate:
American Airlines ( AAL ▾ 0.04% ) announces pricing of $1 billion aggregate principal amount of its 8.50% senior secured notes due 2029
BioLife Solutions ( BLFS ▴ 0.16% ) files for 927,165 share common stock offering by selling shareholder; also files for $75 mln mixed securities shelf offering
LuxUrban Hotels ( LUXH ▾ 0.59% ) files for 2 mln share common stock offering by selling shareholder
SIMPPLE LTD. ( SPPL ▾ 2.52% ) files for 2.5 mln ordinary share offering by selling shareholders
Structure Therapeutics ( GPCR ▾ 0.02% ) files for 8,006,405 ADS offering by selling shareholders
Uber ( UBER 0.00% ) announces that it proposes to offer $1.2 bln aggregate principal amount of Convertible Senior Notes due 2028
IPOs:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
LUXH +5.0%, VEON +2.3%, BROS +2.1%, BA +1.6%, MSFT +1.7%, VALE +1.7%, FCX +1.3%
Gapping down:
PRDO -3.4%, DNUT - 1.8%, GPCR -1.4%, NKLA -1.0%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Arvinas (ARVN) upgraded to Buy from Neutral at Guggenheim
Boeing (BA) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $270
Dutch Bros (BROS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $35
Compass Minerals (CMP) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $24
Downgrades:
Biotricity (BTCY) downgraded to Neutral from Buy at H.C. Wainwright
Chegg (CHGG) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9
ChargePoint (CHPT) downgraded to Neutral from Buy at BofA Securities
ChargePoint (CHPT) downgraded to Hold from Buy at Stifel
Energizer (ENR) downgraded to Neutral from Buy at UBS; tgt lowered to $34
Gerdau S.A. (GGB) downgraded to Neutral from Buy at BofA Securities
HIVE Digital Technologies (HIVE) downgraded to Neutral from Buy at H.C. Wainwright
Krispy Kreme, Inc. (DNUT) downgraded to Neutral from Overweight at JP Morgan; tgt $13
Others:
Alkermes Plc (ALKS) resumed with a Neutral at JP Morgan; tgt $33
Amarin (AMRN) resumed with an Underweight at JP Morgan
Arm Holdings plc (ARM) initiated with an Overweight at Wells Fargo; tgt $70
BioCryst Pharma (BCRX) resumed with an Overweight at JP Morgan; tgt $10
Caterpillar (CAT) initiated with a Hold at HSBC Securities; tgt $250
Cerevel Therapeutics (CERE) resumed with a Neutral at JP Morgan; tgt $25
Crinetics Pharmaceuticals (CRNX) resumed with an Overweight at JP Morgan; tgt $35
Deciphera Pharmaceuticals (DCPH) resumed with a Neutral at JP Morgan; tgt $14
Dell (DELL) initiated with a Buy at Melius Research
Denali Therapeutics (DNLI) resumed with an Overweight at JP Morgan; tgt $28
Emergent BioSolutions (EBS) resumed with an Underweight at JP Morgan
Equifax (EFX) initiated with a Buy at Citigroup; tgt $243
Esperion Therapeutics (ESPR) resumed with a Neutral at JP Morgan
Global Payments (GPN) initiated with a Buy at BTIG Research; tgt $135
Harpoon Therapeutics (HARP) initiated with an Outperform at TD Cowen
Immunocore (IMCR) resumed with an Overweight at JP Morgan; tgt $60
ImmunoGen (IMGN) initiated with a Neutral at Goldman; tgt $17
Econ Data:
10:00 ET: Leading Indicators for Oct (Briefing.com Consensus -0.7%; Prior -0.7%)
Earnings:
Monday (Nov 20)
Morning: LEGN
Afternoon: A BRBR KEYS ZM
Tuesday (Nov 21)
Morning: ANF ADI BIDU BBY BURL CAL DKS DY EMBC GDS HIBB J KC KSS LOW MDT NJR
Afternoon: AEO ADSK DLO GES HPQ JACK JWN NVDA URBN
Wednesday (Nov 22)
Morning: DE
Afternoon: BZUN
Asia & Europe detail:
Asia: Nikkei -0.6%, Hang Seng +1.9%, Shanghai Composite +0.5%
Equity indices in the Asia-Pacific region began the week on a mostly higher note. The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.45% and 4.20%. Alibaba refuted speculation that it is looking to cut 25,000 jobs. Japan's Finance Minister Suzuki said that bright signs are emerging in the Japanese economy. New Zealand is reportedly closer to having a new government after National Party, ACT New Zealand, and New Zealand First agreed on some policy programs as they pursue a coalition agreement.
There was no noteworthy data
---Equity Markets---
Japan's Nikkei: -0.6%
Hong Kong's Hang Seng: +1.9%
China's Shanghai Composite: +0.5%
India's Sensex: -0.2%
South Korea's Kospi: +0.9%
Australia's ASX All Ordinaries: +0.1%
---FX---
USD/JPY: -0.9% to 148.16
USD/CNH: -0.6% to 7.1739
USD/INR: +0.1% to 83.34
Europe: DAX -0.3%, FTSE -0.3%, CAC +0.2%
Major European indices trade near their flat lines while Spain's IBEX (+0.6%) outperforms. Bayer is down nearly 20.0% in Frankfurt after an early stop to one of the company's studies and news that it is on the hook to pay over $1.5 bln in a case related to Roundup. The U.K. may lower income taxes and national insurance fees in the Autumn budget statement. European Central Bank policymaker Wunsch said that rates should stay unchanged in December and January, but future hikes should not be ruled out. Moody's affirmed Italy's Baa3 rating and raised the outlook to Stable from Negative. Separately, Moody's raised Portugal's rating to A3 from Baa2 with a Stable outlook.
In economic data:
Eurozone's September Construction Output 0.45% m/m (last -1.06%)
Germany's October PPI -0.1% m/m, as expected (last -0.2%); -11.0% yr/yr, as expected (last -14.7%)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: -0.3%
U.K.'s FTSE 100: -0.3%
France's CAC 40: +0.2%
Italy's FTSE MIB: -0.2%
Spain's IBEX 35: +0.6%
---FX---
EUR/USD: +0.1% to 1.0922
GBP/USD: +0.1% to 1.2467
USD/CHF: -0.1% to 0.8840
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