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Writer's pictureSimon Charles Hooper

24/10/23 Briefing


The S&P 500 futures are up 20 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 74 points and are trading 0.5% above fair value. The Dow Jones Industrial Average futures are up 132 points and are trading 0.5% above fair value.

Stock futures are up nicely this morning following five straight losing sessions for the S&P 500, which have left it below its 200-day moving average (4,236). That price action has fostered expectations for a rebound effort.

The positive bias is also stemming from relative strength in the mega cap stocks and positive reactions to a batch of mostly better-than-expected earnings results from blue chip companies. Microsoft (MSFT) and Alphabet (GOOG) report earnings after today's close.

The 10-yr note yield is up two basis points to 4.86% and the 2-yr note yield is up two basis points to 5.08%. There will be a $51 billion 2-yr note auction today. Results will be released at 1:00 p.m. ET.

Flash October Manufacturing and Services PMI readings from France, Germany, and the U.K. remained in contractionary territory, reflecting a continuation of weak activity in the region.

U.S. economic data today is limited to the preliminary October S&P Global US Manufacturing PMI and Services PMI at 9:45 a.m. ET.

In corporate news:

  • General Motors (GM 29.68, +0.46, +1.6%): beats by $0.41, beats on revs; CFO Paul Jacobson CNBC interview: There is "no doubt" the rate of EV adoption has slowed; withdrew its FY23 guidance for the rest of the year because of the impact of the UAW strike

  • Verizon (VZ 32.52, +1.13, +3.6%): beats by $0.04, reports revs in-line; reaffirms FY23 EPS guidance

  • RTX (RTX 79.24, +6.11, +8.4%): beats by $0.03, beats on revs; narrows FY23 EPS guidance; raises FY23 revenue guidance; approved a $10 billion accelerated share repurchase program commencing almost immediately

  • Dow (DOW 49.45, +1.21, +2.5%): beats by $0.04, beats on revs; names Jeffrey Tate as CFO effective Nov. 1, 2023

  • 3M (MMM 88.88, +3.28, +3.8%): beats by $0.26, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Coca-Cola (KO 55.29, +1.21, +2.2%): beats by $0.05, beats on revs; guides FY23 EPS above consensus

  • Cadence Design (CNDS 235.40, -4.52, -1.9%): beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line

  • Nucor (NUE 142.00, +1.51, +1.1%): beats by $0.28, beats on revs

  • Cleveland-Cliffs (CLF 14.80, +0.43, +3.0%): beats by $0.11, reports revs in-line, lowers FY23 capex guidance

  • Spotify (SPOT 151.00, -3.61, -2.3%): reports Q3 (Sep) results, revs in-line; guides Q4 revs in-line

  • Sherwin-Williams (SHW 246.00, +7.36, +3.1%): beats by $0.42, beats on revs; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Microsoft (MSFT 332.13, +2.81, +0.9%): announces AUD$5 bln investment in expanding its AI infrastructure in Australia over the next two years

  • General Electric (GE 112.52, +5.83, +5.5%): beats by $0.26, beats on revs; guides FY23 EPS above consensus; announces plans to spin off GE Vernova and GE Aerospace in 2Q24

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note while markets in India were closed for a holiday. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: +0.8%, India's Sensex: CLOSED, South Korea's Kospi: +1.1%, Australia's ASX All Ordinaries: +0.2%.

  • In economic data:

  • Japan's flash October Manufacturing PMI 48.5 (expected 48.9; last 48.5) and flash Services PMI 51.1 (last 53.8). September BoJ Core CPI 3.4% yr/yr (expected 3.3%; last 3.3%)

  • South Korea's September PPI 0.4% m/m (last 0.9%); 1.3% yr/yr (last 1.0%)

  • Australia's flash October Manufacturing PMI 48.0 (last 48.7) and flash Services PMI 47.6 (last 51.8)

  • In news:

  • The Bank of Japan conducted an unscheduled buying operation, offering to purchase JGBs with maturities between 5- and 10-yrs and 10- to 25-yrs.

  • Japan is reportedly considering an income tax cut for individuals.

  • Australia's Manufacturing PMI contracted for the eighth month in a row, hitting its lowest level in six months, in the flash reading for October, while Services PMI dipped into contractionary territory.

  • Standard & Poor's warned that China's growth might slow to 2.9% if the property crisis worsens.

  • A CDS panel was asked to determine if Country Garden's failure to meet a debt payment constitutes a default.

  • Major European indices trade on a mostly higher note while the U.K.'s FTSE (unch) lags. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: UNCH, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.

  • In economic data:

  • Eurozone's flash October Manufacturing PMI 43.0 (expected 43.7; last 43.4) and flash Services PMI 47.8 (expected 48.7; last 48.7)

  • Germany's November GfK Consumer Climate -28.1 (expected -26.6; last -26.7). Flash October Manufacturing PMI 40.7 (expected 40.0; last 39.6) and flash Services PMI 48.0 (expected 50.0; last 50.3)

  • U.K.'s August three-month employment change -82,000 (expected -198,000; last -207,000) and August Unemployment Rate 4.2% (expected 4.3%; last 4.3%). Q2 Labor Productivity 0.3% (expected 0.7%; last -0.3%). October CBI Industrial Trends Orders -26 (expected -16; last -18). Flash October Manufacturing PMI 45.2 (expected 44.7; last 44.3) and flash Services PMI 49.2 (expected 49.3; last 49.3)

  • France's flash October Manufacturing PMI 42.6 (expected 44.4; last 44.2) and flash Services PMI 46.1 (expected 44.6; last 44.4)

  • In news:

  • Flash October Manufacturing and Services PMI readings from France, Germany, and the U.K. remained in contractionary territory, reflecting continuation of weak activity in the region.

  • Barclays lowered its net interest margin guidance for the year.

  • The latest quarterly bank lending survey for the eurozone observed a tightening of credit standards as the economy weakened.

 

U.S. equity futures:

  • S&P 500 Futures +26 @ 4,243

  • DJIA Futures: +163 @ 33,100

  • Nasdaq 100 Futures: +104 @ 14,709

Overseas:

  • Europe: DAX +0.3%, FTSE UNCH, CAC +0.7%

  • Asia: Nikkei +0.2%, Hang Seng -1.1%, Shanghai Composite +0.8%

Commodities:

  • Crude Oil +0.09 @ 85.58

  • Nat Gas -0.031 @ 3.227

  • Gold -14.80 @ 1973.00

  • Silver -0.240 @ 22.970

  • Copper -0.0018 @ 3.5847

Earnings/Guidance:

  • 3M (MMM) beats by $0.26, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Agilysys (AGYS) beats by $0.06, beats on revs; guides FY24 revs above consensus

  • AGNC Investment (AGNC) provides preliminary estimates for Q3; total comprehensive loss estimated to be $(1.02)/share

  • Alexandria RE (ARE) beats by $0.02, reports revs in-line; guides FY23 FFO above consensus

  • Amneal Pharmaceuticals (AMRX) reports prelim Q3 results; raises FY23 guidance

  • Anglo American (NGLOY) reports Q3 copper production increased 42% yr/yr

  • Archer-Daniels (ADM) beats by $0.10, misses on revs

  • Ares Capital (ARCC) beats by $0.01

  • Armstrong World Industries (AWI) beats by $0.29, beats on revs; raises FY23 guidance

  • Asbury Automotive (ABG) misses by $0.28, misses on revs

  • Aspen Aerogels (ASPN) raises FY23 EPS and revenue guidance; says its outlook has so far not been impacted by UAW strike

  • Banc of California (BANC) beats by $0.01; company signed definitive agreement to merge with PacWest (PACW) on July 25, 2023

  • Barclays PLC (BCS) reports Q3 results

  • Cadence Bank (CADE) reports Q3 results

  • Cadence Design (CDNS) beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line

  • Calix Networks (CALX) beats by $0.09, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Cathay Bancorp (CATY) beats by $0.04, misses on revs

  • Centene (CNC) beats by $0.45, beats on revs; guides FY23 EPS above consensus, revs above consensus; reaffirms FY24 EPS guidance

  • Cleveland-Cliffs (CLF) beats by $0.11, reports revs in-line, lowers FY23 capex guidance

  • Coca-Cola (KO) beats by $0.05, beats on revs; guides FY23 EPS above consensus

  • Community Bank (CBU) beats by $0.22, reports revs in-line, net interest income decreased 2.4%

  • Corning (GLW) misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Crane (CR) beats by $0.16, beats on revs; narrows and raises FY23 EPS mostly above consensus; raises FY23 sales growth outlook

  • Crown (CCK) reports EPS in-line, misses on revs; guides Q4 EPS below consensus

  • General Electric (GE) beats by $0.26, beats on revs; guides FY23 EPS above consensus

  • Grupo Aeroportuario del Pacifico (PAC) reports Q3 results; misses on revs

  • Danaher (DHR) beats by $0.22, beats on revs

  • Dover (DOV) beats by $0.02, misses on revs; lowers FY23 EPS and revenue guidance

  • Dow (DOW) beats by $0.04, beats on revs

  • Fiserv (FI) beats by $0.03, beats on revs; raises FY23 EPS above consensus

  • General Motors (GM) beats by $0.41, beats on revs

  • Halliburton (HAL) beats by $0.02, reports revs in-line

  • HCA (HCA) misses by $0.07, beats on revs; lowers FY23 EPS guidance, narrows FY23 revenue guidance

  • HealthStream (HSTM) beats by $0.04, reports revs in-line; reaffirms FY23 revs guidance

  • Helix Energy (HLX) misses by $0.09; beats on revs

  • Herc Holdings (HRI) misses by $0.15, beats on revs; exploring strategic alternatives for Cinelease

  • Hexcel (HXL) misses by $0.05, misses on revs; guides FY23 EPS in-line, revs in-line

  • Independent Bank Group (IBTX) beats by $0.06

  • Inter Parfums (IPAR) sees Q3 revs above consensus

  • Invesco (IVZ) reports EPS in-line, revs in-line

  • Kemper (KMPR) issues preliminary Q3 results; projects 2024 ROE of 10% or greater

  • Kimberly-Clark (KMB) beats by $0.14, misses on revs; raises FY23 EPS and organic sales guidance

  • KKR Real Estate Finance Trust (KREF) beats by $0.27

  • Logitech Int'l SA (LOGI) beats by $0.49; beats on revs; raises FY24 outlook

  • Matson (MATX) guides Q3 EPS above consensus

  • Medpace (MEDP) beats by $0.17, beats on revs; guides FY23 EPS above consensus, revs above consensus; guides FY24 revs above consensus

  • Mueller Industries (MLI) beats by $0.15, beats on revs

  • NextEra Energy (NEE) beats by $0.06, beats on revs; reaffirms FY23 EPS in-line; guides FY24 EPS in-line

  • NextEra Energy Partners (NEP) beats by $0.07, misses on revs; plans to repower approximately 740 megawatts of wind projects through 2026; increases dividend

  • Novartis AG (NVS) beats by $0.07, misses on revs; reaffirms FY23 revs guidance; raises core operation income guidance

  • Nucor (NUE) beats by $0.28, beats on revs

  • Orange (ORAN) reports Q3 results; reaffirms FY23 guidance

  • Pacific Premier (PPBI) misses by $0.07

  • Packaging Corp (PKG) beats by $0.12, misses on revs,  issued upside Q4 EPS guidance

  • PacWest Bancorp (PACW) misses by $0.35; Pending merger with Banc of California (BANC) is on track with all regulatory approvals received and is expected to close on or about November 30, 2023

  • Pentair (PNR) beats by $0.07, beats on revs; guides Q4 EPS below consensus, revs below consensus

  • Polaris Industries (PII) reports EPS in-line, revs in-line; guides FY23 EPS below consensus, revs in-line

  • PulteGroup (PHM) beats by $0.07, misses on revs

  • Quest Diagnostics (DGX) beats by $0.03, beats on revs; narrows FY23 EPS in-line, raises revs above consensus

  • RLI Corp (RLI) beats by $0.53, net premiums earned increased 9.2%

  • RTX (RTX) beats by $0.03, beats on revs; narrows FY23 EPS guidance; raises FY23 revenue guidance; approved a $10 billion accelerated share repurchase program commencing almost immediately

  • Sandoz (SDZNY) reports nine month results; reaffirms FY23 guidance

  • Sandy Spring Banc (SASR) beats by $0.06

  • Sherwin-Williams (SHW) beats by $0.42, beats on revs; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Simply Good Foods (SMPL) beats by $0.01, reports revs in-line; guides FY24 sales below consensus

  • Simpson Manufacturing (SSD) beats by $0.25, beats on revs; expects Q4 results to reflect some downward pressure in addition to typical seasonality compared to Q3; reaffirms FY23 EPS and revenue guidance

  • Spotify (SPOT) reports Q3 (Sep) results, revs in-line; guides Q4 revs in-line

  • Synchrony Financial (SYF) beats by $0.05

  • Teck Resources (TECK) misses by CAD0.30, misses on revs

  • The Aaron's Company (AAN) misses by $0.06, misses on revs; guides FY23 EPS below consensus, revs below consensus

  • TFI International (TFII) misses by $0.16, beats on revs; approves up to 10% of its stock for repurchases

  • TransUnion (TRU) misses by $0.04, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • TrueBlue (TBI) misses by $0.07, misses on revs; guides Q4 revs below consensus

  • Verizon (VZ) beats by $0.04, reports revs in-line; reaffirms FY23 EPS guidance

  • W.R. Berkley (WRB) beats by $0.17, reports revs in-line

  • WSFS Financial (WSFS) beats by $0.19, beats on revs

  • Xerox (XRX) beats by $0.11, misses on revs

News:

  • The Biden administration believes Israel does not have achievable military goals in Gaza, according to the New York Times

  • House Republicans will vote on Speaker nominee today and are optimistic, according to the Wall Street Journal

  • Bill Gross also ends bearish view on bonds following Bill Ackman's comments yesterday, according to Bloomberg

  • AstraZeneca (AZN) reports FDA accepts sBLA for self-administration of FluMist Quadrivalent

  • AstraZeneca (AZN): US Food and Drug Administration accepts for review AstraZeneca's Supplemental Biologics License Application for self-administration of FLUMIST QUADRIVALENT

  • Axsome Therapeutics (AXSM) announces a presentation of data from its ACCORD Phase 3 clinical trial of AXS-05, a novel, oral NMDA receptor antagonist and sigma-1 receptor agonist, in patients with Alzheimer's disease agitation, at the 16th Clinical Trials on Alzheimer's Disease Conference

  • Bristol-Myers (BMY) announces that the U.S. FDA has granted Breakthrough Therapy Designation for BMS-986278, a potential first-in-class, oral, lysophosphatidic acid receptor 1 antagonist, for the treatment of progressive pulmonary fibrosis, a devastating, life-threatening illness

  • Canadian Nat'l Rail (CNI) renews and expands its five-year transportation agreement with AltaGas

  • Century Aluminum (CENX) subsidiary finalizes and receives all approvals for a new three-year power contract with the South Carolina Public Service Authority for the Mt. Holly aluminum smelter; contract begins on January 1, 2024

  • CymaBay Therapeutics (CBAY) presents findings from its post-hoc analysis of the Phase 3 ENHANCE study of seladelpar for the treatment of primary biliary cholangitis

  • DocGo (DCGO) discloses HPD Agreement and OTDA Letter updates

  • Dow (DOW) names Jeffrey Tate as CFO effective Nov. 1, 2023

  • General Electric (GE) announces plans to spin off GE Vernova and GE Aerospace in 2Q24

  • Henry Schein (HSIC) is providing an update on the status of its order processing following the previously announced cybersecurity incident that affected a portion of its manufacturing and distribution businesses

  • Hertz Global (HTZ) announces that Justin Keppy will join the company as Executive Vice President and Chief Operating Officer, effective November 15, 2023

  • HYZON Motors (HYZN) names Stephen Weiland as CFO effective Nov. 1, 2023

  • Immatics N.V. (IMTX) receives FDA Regenerative Medicine Advanced Therapy (RMAT) designation for ACTengine IMA203 TCR-T monotherapy

  • IonQ (IONQ) co-founder and Chief Science Officer Dr. Chris Monroe to step down

  • Johnson & Johnson (JNJ) Worldwide Chairman of MedTech stepping down, effective 1Q24; Tim Schmid appointed successor

  • LianBio (LIAN) enters into agreement with Bristol Myers (BMY) Squibb for Mavacamten in China and other asian markets

  • Microsoft (MSFT) announces AUD$5 bln investment in expanding its AI infrastructure in Australia over the next two years

  • MindMed (MNMD) Completes Enrollment of Phase 2a Trial of MM-120 in Adults with Attention-Deficit/Hyperactivity Disorder

  • NeoGenomics (NEO) announces the commercial availability of two new tests, expanding its next-generation sequencing and lung cancer portfolios

  • Netflix (NFLX) planning basketball series with various stars, according to the Wall Street Journal

  • Novo Nordisk (NVO) and Eli Lilly (LLY) both broke records for weight loss drug deals this year, according to Financial Times

  • Piedmont Lithium (PLL) announces that Ghana's Ministry of Lands and Natural Resources has granted a mining lease for the Ewoyaa Lithium Project, which is being developed by Piedmont and its partner, Atlantic Lithium Limited

  • Prime Medicine (PRME) presents first in vivo proof-of-concept prime editing data demonstrating ability of prime editors to treat ophthalmological diseases

  • Quanterix (QTRX) announces new agreement to advance blood based Alzheimer's Disease detection

  • Redfin (RDFN) announced after the close that funds managed by Apollo Capital Management (APO) agreed to commit up to $250 million of financing for Redfin in the form of a first lien term loan facility

  • Sealed Air's (SEE) President and CEO steps down, effective immediately; COO and CFO are appointed interim Co-Presidents and Co-CEOs

  • Syndax Pharmaceuticals (SNDX) to initiate NDA submission of Revumenib in Relapsed/Refractory KMT2Ar Acute Leukemia Under FDA's Real-Time oncology review program

  • TotalEnergies SE (TTE) starts operations in Texas with a 380 MW utility-scale solar power plant with battery storage

M&A:

  • Campbell Soup (CPB) receives request for additional info from the FTC as part of its review of CPB's previously proposed acquisition of Sovos Brands (SOVO)

  • Ceragon (CRNT) to acquire Siklu for enterprise value of $13-$15 mln; expected to be accretive to gross margins, non-GAAP EPS by 2H24

  • Fortive (FTV) acquires EA Elektro-Automatik for EUR1.585 bln

  • Intl Flavors (IFF) mulling $3.5 bln sale of its Pharma Solutions business, according to Bloomberg

  • TenX Keane Acquisition (TENK) and Citius Pharmaceuticals (CTXR) announce merger agreement

  • Xtant Medical (XTNT) acquired the nanOss production operations from RTI Surgical

Syndicate:

  • Bridger Aerospace Group (BAER) announces that due to market volatility and conditions, it has terminated its proposed public offering of shares of its common stock previously announced on October 17, 2023

  • Rexford Industrial Realty (REXR) files mixed shelf securities offering

  • SunCar Technology Group (SDA) files for 3,000,000 shares of common stock; relates to warrants

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

  • ASTI +94.1%, AGYS +12.2%, LOGI +11.1%, RDFN +8.2%, MEDP +7.9%, AMRX +7.7%, ASPN +7.2%, GE +6.1%, HRI +5%, CR +4%, PKX +3.8%, KREF +3.6%, CENX +3.2%, MATX +2.9%, CRNT +2.6%, IPAR +2.1%, CNC+2.1%, QTRX +2%, IBTX +2%, DHR +1.9%, CLF +1.7%, ARE +1.6%, TECK +1.6%, BANC+1.6%, PAC +1.2%, BRO +1.1%, NUE +1.1%, MSFT +0.8%, TTE +0.8%, ORAN +0.8%

  • Gapping down:

  • TBI -19.1%, IONQ -15.3%, AGNC -9%, PII-6.5%, HXL -6%, AAN -5.6%, BCS -4.8%, SDA -3%, SPOT -3%, SEE -2.9%, CDNS-2.9%, CALX -2.6%, CCK -2%, PKG -1.8%, NVS -0.7%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • American Express (AXP) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $151

  • Ballard Power (BLDP) upgraded to Buy from Hold at HSBC Securities; tgt $4.50

  • Braze (BRZE) upgraded to Buy from Neutral at DA Davidson; tgt raised to $53

  • Editas Medicine (EDIT) upgraded to Buy from Neutral at Citigroup; tgt $11

  • Golden Ocean (GOGL) upgraded to Buy from Hold at Jefferies; tgt raised to $11

  • Grupo Aeroportuario del Pacifico (PAC) upgraded to Overweight from Equal Weight at Barclays

  • Ingersoll-Rand (IR) upgraded to Buy from Hold at Stifel; tgt $73

  • Medpace (MEDP) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $289

  • Rio Tinto (RIO) upgraded to Overweight from Equal Weight at Barclays

  • Silk Road Medical (SILK) upgraded to Peer Perform from Underperform at Wolfe Research

  • Downgrades:

  • CubeSmart (CUBE) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $37

  • Enphase Energy (ENPH) downgraded to Neutral from Outperform at Daiwa Securities; tgt lowered to $100

  • FMC Corp (FMC) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $70

  • FMC Corp (FMC) downgraded to Neutral from Buy at BofA Securities; tgt $63

  • FMC Corp (FMC) downgraded to Neutral from Buy at Goldman; tgt lowered to $59

  • Markforged Holding Corp. (MKFG) downgraded to Mkt Perform from Outperform at William Blair

  • Monster Beverage (MNST) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $50

  • Regions Fincl (RF) downgraded to Neutral from Buy at UBS; tgt lowered to $15

  • Sealed Air (SEE) downgraded to Mkt Perform from Outperform at William Blair

  • Others:

  • 4D Molecular Therapeutics (FDMT) initiated with an Overweight at Cantor Fitzgerald; tgt $32

  • Adlai Nortye Ltd. (ANL) initiated with an Overweight at Cantor Fitzgerald; tgt $30

  • Airbnb (ABNB) initiated with a Neutral at Seaport Research Partners

  • Alphabet A (GOOGL) initiated with a Neutral at Seaport Research Partners

  • Amazon (AMZN) initiated with a Buy at Seaport Research Partners; tgt $145

  • Apartment Income REIT Corp. (AIRC) initiated with an Outperform at Raymond James; tgt $37

  • Beam Therapeutics (BEAM) placed on 30-day Upside Catalyst Watch at Citigroup

  • BridgeBio Pharma (BBIO) initiated with an Overweight at Cantor Fitzgerald; tgt $50

  • Cabaletta Bio (CABA) initiated with an Overweight at Cantor Fitzgerald; tgt $40

  • ClearPoint Neuro (CLPT) initiated with a Buy at Stifel; tgt $8

  • Crinetics Pharmaceuticals (CRNX) assumed with an Overweight at Cantor Fitzgerald; tgt lowered to $50

  • CRISPR Therapeutics (CRSP) placed on 30-day Upside Catalyst Watch at Citigroup

  • Criteo (CRTO) initiated with an Overweight at KeyBanc Capital Markets; tgt $40

  • Denali Therapeutics (DNLI) assumed with an Overweight at Cantor Fitzgerald; tgt lowered to $35

  • DoorDash (DASH) initiated with a Neutral at Seaport Research Partners

  • Extra Space Storage (EXR) initiated with an Underweight at Wells Fargo; tgt $115

  • GoDaddy (GDDY) initiated with a Buy at Seaport Research Partners; tgt $85

  • Krystal Biotech (KRYS) initiated with an Overweight at Cantor Fitzgerald; tgt $100

  • Longboard Pharmaceuticals (LBPH) assumed with an Overweight at Cantor Fitzgerald; tgt raised to $35

  • Meta Platforms (META) initiated with a Buy at Seaport Research Partners; tgt $365

  • Mirum Pharmaceuticals (MIRM) initiated with an Overweight at Cantor Fitzgerald; tgt $50

  • Neurocrine Biosciences (NBIX) assumed with an Overweight at Cantor Fitzgerald; tgt raised to $140

  • On (ONON) initiated with a Buy at Redburn Atlantic; tgt $33

  • Pinterest (PINS) initiated with a Buy at Seaport Research Partners; tgt $33

  • Public Storage (PSA) initiated with an Overweight at Wells Fargo; tgt $270

  • Rocket Pharmaceuticals (RCKT) initiated with an Overweight at Cantor Fitzgerald; tgt $65

  • Squarespace (SQSP) initiated with a Buy at Seaport Research Partners; tgt $35

  • The Trade Desk (TTD) initiated with a Buy at Loop Capital; tgt $95

  • Uber (UBER) initiated with a Buy at Seaport Research Partners; tgt $51

  • Wix.com(WIX) initiated with a Buy at Seaport Research Partners; tgt $103

  • Xenon Pharmaceuticals (XENE) assumed with an Overweight at Cantor Fitzgerald

Econ Data:

  • 09:45 ET: S&P Global US Manufacturing - Prelim for Oct (Briefing.comConsensus NA; Prior 49.8)

  • 09:45 ET: S&P Global US Services PMI - Prelim for Oct (Briefing.comConsensus NA; Prior 50.1)

Earnings:

  • Monday (Oct 23)

  • Morning:  BOH HOPE PHG

  • Afternoon: AGYS ARE BRO CADE CDNS CALX CATY CLF CR CCK HSTM HXL IBTX MEDP PKG RLI SSD AAN TBI WRB WSFS

  • Tuesday (Oct 24)

  • Morning: MMM HOUS ADM ARCC AWI ABG BANC BCS CNC KO CBU GLW DHR DOV DOW FI FELE GATX GE GM HAL HCA HRI ITW IVZ KMB EDU NEE NEP NVS NUE ONB PCAR PPBI PACW PNR PII PHM DGX RTX SASR SHW SFNC SMPL SPOT SYF TECK TRU VZ XRX

  • Afternoon:  GOOG NTB BYD BDN CNI CHX CB CSGP EGP WIRE ENVA FFIV FCF FFBC HA HIW JBT MANH MTDR MSFT MSA NBHC RRC RNST ROIC RHI SNAP LRN TDOC TXN TRMK UMBF VBTX VICR V WM

  • Wednesday (Oct 25)

  • Morning:  ALKS APH ADP AVY BXMT BA BOKF CME CNX CSTM EVR FTV GD GBX GPI HCSG HES HESM HLT IART LKFN LTH LAD MKTX MNRO MCO COOP MSM NAVI NSC ODFL OMF OPCH OTIS OC PAG PRG PB RDUS ROP RES R SLGN SF TMUS TMHC TDY TMO TNL UMC VRT WNC WAB WFRD

  • Afternoon:  AEM ALGN ALSN AMP AM AR ATR ASGN AVB AGR BKR BHE CACI CCS CHE CHDN CYH CNMD CVBF EW ESI EIG EPR EQT EQIX ETD EG FIBK FLEX FLS FBIN FTAI GL GSHD GGG IBM ICLR IEX IMAX PI INVH KALU KRC KLAC LSTR LC LXFR MAT MXL META MAA MOH MYRG NTGR NXT ORLY OII CASH PEGA PPC PLXS QS RJF ROL SLM SEIC NOW STC SUI NOVA TER TNET TROX UCTT URI UHS VMI VLTO VICI VKTX WSBC WU WHR WH

  • Thursday (Oct 26)

  • Morning: AOS MO AMT AIT ARCH AMBP BPMC BSX BFH BMY BC BG CRS CARR CBZ CNP CMS CTS CFR EXP EME EXLS XPRO FAF FCFS ULCC FCN THRM GWW HEES HOG HAS HSY HTZ HON INSM IP ITGR KVUE KDP KIM KEX LH LAZ LEA LII LIN LKQ MAS MA MDC MPW MRK MBLY NYCB NEM NOC NVCR OSIS OSTK PATK BTU PCG BPOP RS RITM RCL STX SAH SBSI LUV STM FTI TXT SHYF TSCO TW TPH TRS UPS VLO VLY VC VMC WST WEX WTW

  • Afternoon:  ATGE AB AMZN ABCB APPF AJG AX BIO BJRI SAM CPT COF CSL CC CMG CINF COLM CDP COUR CUZ CUBI DECK DXCM DLR EMN ELME EHC ENPH ESS EVTC EXPO FHI FE F GLPI HIG HUBG INTC JNPR KNSL LHX LPLA LTC MGRC MMSI MTX MHK NRDS NOV OLN PEB PFSI PFG PFS PTCT RSG RMD SKX SKYW SSB SPSC SSNC STAG TEX TXRH X UDR VRSN WY

  • Friday (Oct 27) 

  • Morning:  ABBV AER AON ARCB AN AVTR BCPC B BAH CBRE GTLS CHTR CVX CL DAN XOM FHB GNTX IMO LECO LYB NWL NVT OIS PSX PIPR PNM POR SAIA SNY SWK STEL TROW WT XEL

  • Afternoon:  ACMR

 

Asia & Europe detail:

Asia: Nikkei +0.2%, Hang Seng -1.1%, Shanghai Composite +0.8%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note while markets in India were closed for a holiday. The Bank of Japan conducted an unscheduled buying operation, offering to purchase JGBs with maturities between 5- and 10-yrs and 10- to 25-yrs. Japan is reportedly considering an income tax cut for individuals. Australia's Manufacturing PMI contracted for the eighth month in a row, hitting its lowest level in six months, in the flash reading for October, while Services PMI dipped into contractionary territory. Standard & Poor's warned that China's growth might slow to 2.9% if the property crisis worsens. A CDS panel was asked to determine if Country Garden's failure to meet a debt payment constitutes a default.

  • In economic data:

  • Japan's flash October Manufacturing PMI 48.5 (expected 48.9; last 48.5) and flash Services PMI 51.1 (last 53.8). September BoJ Core CPI 3.4% yr/yr (expected 3.3%; last 3.3%)

  • South Korea's September PPI 0.4% m/m (last 0.9%); 1.3% yr/yr (last 1.0%)

  • Australia's flash October Manufacturing PMI 48.0 (last 48.7) and flash Services PMI 47.6 (last 51.8)

---Equity Markets---

  • Japan's Nikkei: +0.2%

  • Hong Kong's Hang Seng: -1.1%

  • China's Shanghai Composite: +0.8%

  • India's Sensex: CLOSED

  • South Korea's Kospi: +1.1%

  • Australia's ASX All Ordinaries: +0.2%

---FX---

  • USD/JPY: +0.1% to 149.80

  • USD/CNH: +0.2% to 7.3205

  • USD/INR: UNCH at 83.05

 

Europe: DAX +0.3%, FTSE UNCH, CAC +0.7%

Major European indices trade on a mostly higher note while the U.K.'s FTSE (unch) lags. Flash October Manufacturing and Services PMI readings from France, Germany, and the U.K. remained in contractionary territory, reflecting continuation of weak activity in the region. Barclays lowered its net interest margin guidance for the year. The latest quarterly bank lending survey for the eurozone observed a tightening of credit standards as the economy weakened.

  • In economic data:

  • Eurozone's flash October Manufacturing PMI 43.0 (expected 43.7; last 43.4) and flash Services PMI 47.8 (expected 48.7; last 48.7)

  • Germany's November GfK Consumer Climate -28.1 (expected -26.6; last -26.7). Flash October Manufacturing PMI 40.7 (expected 40.0; last 39.6) and flash Services PMI 48.0 (expected 50.0; last 50.3)

  • U.K.'s August three-month employment change -82,000 (expected -198,000; last -207,000) and August Unemployment Rate 4.2% (expected 4.3%; last 4.3%). Q2 Labor Productivity 0.3% (expected 0.7%; last -0.3%). October CBI Industrial Trends Orders -26 (expected -16; last -18). Flash October Manufacturing PMI 45.2 (expected 44.7; last 44.3) and flash Services PMI 49.2 (expected 49.3; last 49.3)

  • France's flash October Manufacturing PMI 42.6 (expected 44.4; last 44.2) and flash Services PMI 46.1 (expected 44.6; last 44.4)

---Equity Markets---

  • STOXX Europe 600: +0.3%

  • Germany's DAX: +0.3%

  • U.K.'s FTSE 100: UNCH

  • France's CAC 40: +0.7%

  • Italy's FTSE MIB: +0.3%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: -0.4% to 1.0624

  • GBP/USD: -0.2% to 1.2217

  • USD/CHF: +0.3% to 0.8937

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