The S&P 500 futures are down 8 points and are trading 0.1% below fair value. The Nasdaq 100 futures are up 5 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 99 points and are trading 0.3% below fair value.
Equity futures are a little lackluster this morning amid a barrage of earnings results. After a big run, market participants are perhaps aiming to take some money off the table ahead of earnings reports from Microsoft (MSFT) and Alphabet (GOOG) after today's close followed by Apple (AAPL), Meta Platforms (META), and Amazon (AMZN) later this week.
Treasury yields are down this morning. The 10-yr note yield is down six basis points to 4.16% and the 2-yr note yield is down three basis points to 4.45%.
Energy complex futures are mixed. WTI crude oil futures are down 1.0% to $83.73/bbl while natural gas futures are up 0.4% to $5.22/mmbtu.
Market participants will receive the following economic data today:
9:00 ET: August FHFA Housing Price Index (Briefing.comconsensus -0.7%; prior -0.6%), August S&P Case-Shiller Home Price Index (Briefing.comconsensus 14.0%; prior 16.1%)
10:00 ET: October Consumer Confidence (Briefing.comconsensus 105.5; prior 108.0)
In corporate news:
3M (MMM 115.28 -3.10 -2.62%): beats by $0.10, misses on revs; lowers FY22 EPS in-line, revs below consensus
General Motors (GM 37.61 +1.89 +5.29%): beats by $0.37, reports revs in-line; guides FY22 EPS in-line
UPS (UPS 173.99 +6.44 +3.84%): beats by $0.14, reports revs in-line; reaffirms FY22 revs guidance
PulteGroup (PHM 37.50 -0.46 -1.21%): misses by $0.12, misses on revs
General Electric (GE 76.49 +3.13 +4.27%): reports Q3 (Sep) results, beats on revs; guides FY22 EPS in-line
Coca-Cola (KO 59.20 +1.63 +2.83%): beats by $0.05, beats on revs; issues guidance for FY22, sees organic revenue growth of 14-15%
Amazon (AMZN 119.70 -0.12 -0.10%): reportedly freezes hiring in parts of web services division, according to NYPost
Sherwin-Williams (SHW 224.00 +11.47 +5.40%): beats by $0.26, beats on revs; guides Q4 revs in-line, guides FY22 EPS in-line
Adidas AG (ADDYY 51.35-0.40 -0.76%): ends partnership with Kanye West, according to Bloomberg
Biogen (BIIB 279.36 +4.74 +1.73%): beats by $0.66, beats on revs; raises FY22 EPS mostly above consensus, revs in-line
Corning (GLW 30.50 -1.83 -5.66%): reports EPS in-line, revs in-line; guides Q4 core EPS and core revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: UNCH, India's Sensex: -0.5%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: +0.2%.
In economic data:
Japan's September BoJ Core CPI 2.0% yr/yr (expected 1.9%; last 1.9%)
South Korea's October Consumer Confidence 88.8 (last 91.4)
Singapore's September CPI 7.5% yr/yr, as expected (last 7.5%) and Core CPI 5.3% yr/yr (expected 5.2%; last 5.1%)
Hong Kong's September trade deficit $44.90 bln (last deficit of HKD13.30 bln). September Imports -7.8% m/m (last -16.3%) and Exports -9.1% m/m (last -14.3%)
In news:
Japan's cabinet office released its October economic report, noting that growth is picking up. The report upgraded the assessment of capital spending and lowered the view on imports.
Hyundai is starting construction on a $5.5 bln electric vehicle plant in Georgia.
Australia's budget projects 3.25% growth in FY22/23, followed by a slowdown to 1.5% in FY23/24.
Major European indices are mixed. STOXX Europe 600: +0.1%, Germany's DAX: -0.7%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.4%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +0.4%.
In economic data:
Germany's October ifo Business Climate Index 84.3 (expected 83.3; last 84.4). October Current Assessment 94.1 (expected 92.4; last 94.5) and Business Expectations 75.6 (expected 75.0; last 75.3)
U.K.'s October CBI Industrial Trends Orders -4 (expected -12; last -2)
Spain's September PPI 35.6% yr/yr (last 42.9%)
In news:
Rishi Sunak officially became U.K.'s prime minister today.
Germany's ifo Institute warned about a high risk of a winter recession in Germany in its October report.
UBS and SAP reported better than expected results for Q3.
The eurozone bank lending survey for Q3 noted a tightening of credit standards with additional tightening and falling demand expected in Q4.
U.S. equity futures:
S&P 500 Futures: -9 @ 3,788
DJIA Futures: -111 @ 31,389
Nasdaq 100 Futures: -4 @ 11,426
Overseas:
Europe: DAX -0.7%, FTSE -0.6%, CAC +0.4%
Asia: Nikkei +1.0%, Hang Seng -0.1%, Shanghai Composite UNCH
Commodities:
Crude Oil -0.89 @ 83.69
Nat Gas +0.066 @ 5.819
Gold -5.80 @ 1648.30
Silver -0.311 @ 18.878
Copper -0.0568 @ 3.3757
U.S. Summary:
Earnings/Guidance:
3M (MMM) beats by $0.10, misses on revs; lowers FY22 EPS in-line, revs below consensus
ADTRAN (ADTN) guides Q3 revs above consensus
AGNC Investment (AGNC) beats by $0.15, misses on revs
Albany Intl (AIN) beats by $0.29, beats on revs; guides FY22 EPS in-line, revs above consensus
Alexandria RE (ARE) beats by $0.02, reports revs in-line
Archer-Daniels (ADM) beats by $0.45, beats on revs
Armstrong World Industries (AWI) misses by $0.11, misses on revs; guides FY22 EPS below consensus, revs below consensus
Biogen (BIIB) beats by $0.66, beats on revs; raises FY22 EPS mostly above consensus, revs in-line
Brown & Brown (BRO) misses by $0.10, misses on revs
Burning Rock Biotech (BNR) sees strong double-digit growth in revs for Q3
Cadence Design (CDNS) beats by $0.10, beats on revs; guides Q4 EPS mostly above consensus, revs above consensus; guides FY22 EPS above consensus, revs in-line
Calix Networks (CALX) beats by $0.11, beats on revs; guides Q4 EPS mostly above consensus, revs above consensus
Cathay Bancorp (CATY) beats by $0.06, reports revs in-line
Celestica (CLS) beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus
Centene (CNC) beats by $0.07, beats on revs; raises FY22 guidance
Cleveland-Cliffs (CLF) misses by $0.22, misses on revs
Coca-Cola (KO) beats by $0.05, beats on revs; issues guidance for FY22, sees organic revenue growth of 14-15%
Corning (GLW) reports EPS in-line, revs in-line; guides Q4 core EPS and core revs below consensus
Crane (CR) beats by $0.01, reports revs in-line; guides FY22 EPS in-line
Crown (CCK) misses by $0.31, reports revs in-line; guides Q4 EPS below consensus
Discover Financial Services (DFS) misses by $0.18, beats on revs
First Bancorp (FBP) reports EPS in-line, revs in-line
General Electric (GE) reports Q3 (Sep) results, beats on revs; guides FY22 EPS in-line
General Motors (GM) beats by $0.37, reports revs in-line; guides FY22 EPS in-line
Graphic Packaging (GPK) beats by $0.10, beats on revs; raises dividend
Halliburton (HAL) beats by $0.04, beats on revs
HealthStream (HSTM) reports Q3 (Sep) results, misses on revs; guides FY22 revs below consensus
Heidrick & Struggles (HSII) beats by $0.14 (3 estimates), misses on revenue; issues downside Q4 revenue guidance
Helix Energy (HLX) reports Q3 results; beats on revs
Hexcel (HXL) reports EPS in-line, misses on revs; raises low end of FY22 EPS guidance range, narrows revenue guidance range
Hope Bancorp (HOPE) reports EPS in-line, beats on revs
HSBC Holdings (HSBC) beats by $0.07; misses on revs
Hubbell (HUBB)beats by $0.37, beats on revs; raises FY22 EPS and revenue guidance
ICL Group (ICL) announces updated five-year targets at investor day
Independent Bank Group (IBTX) misses by $0.01
Inter Parfums (IPAR) guides Q3 revs above consensus; reaffirms FY22 EPS and revs
Invesco (IVZ) misses by $0.07, beats on revs
JetBlue Airways (JBLU) misses by $0.03, reports revs in-line
Kimberly-Clark (KMB) misses by $0.05, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance
Logitech Int'l SA (LOGI) beats by $0.21, misses on revs; reaffirms FY23 revs guidance; CFO to depart
Medpace (MEDP) reports Q3 (Sep) results, beats on revs; guides FY22 revs above consensus; guides FY23 revs above consensus
Moody's (MCO) misses by $0.19, misses on revs; lowers FY22 EPS and revenue guidance
MSCI (MSCI) beats by $0.13, reports revs in-line
NorthWestern (NWE) misses by $0.17, beats on revs; guides FY22 EPS in-line
Novartis AG (NVS) beats by $0.02, misses on revs; reaffirms FY22 revs guidance
Orange (ORAN) reports Q3 revenues of EUR 10.823 billion vs. EUR 10.802 billion Capital IQ consensus
Packaging Corp (PKG) beats by $0.02, misses on revs; guides Q4 EPS below consensus
Pentair (PNR) beats by $0.06, beats on revs; guides Q4 EPS below consensus; guides FY22 EPS below consensus, revs below consensus
Polaris Industries (PII) beats by $0.47, beats on revs; guides FY22 EPS above consensus, revs above consensus
Portland Gen Elec (POR) beats by $0.04, beats on revs; reaffirms FY22 EPS guidance
PotlatchDeltic (PCH) beats by $0.10, beats on revs
PulteGroup (PHM) misses by $0.12, misses on revs
Qualtrics (XM) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs above consensus
Range Resources (RRC) misses by $0.04, beats on revs
Raytheon Technologies (RTX) beats by $0.07, misses on revs; guides FY22 EPS above consensus, revs below consensus
SAP SE (SAP) misses by 0.13, beats on revs
Sensata Tech (ST) reports EPS in-line, beats on revs; guides Q4 EPS in-line, revs in-line
Sherwin-Williams (SHW) beats by $0.26, beats on revs; guides Q4 revs in-line, guides FY22 EPS in-line
Shutterstock (SSTK) beats by $0.11, misses on revs; guides FY22 EPS above consensus, revs below consensus
Simpson Manufacturing (SSD) beats by $0.49, beats on revs
SITE Centers (SITC) beats by $0.01, beats on revs; raises FY22 FFO in-line
Southside Banc (SBSI) misses by $0.03
South State (SSB) beats by $0.02; loans increased 13% annualized
Synchrony Financial (SYF) reports Q3 (Sep) results
The Aaron's Company (AAN) beats by $0.20, beats on revs; narrows FY22 EPS above consensus, revs above consensus
TransUnion (TRU) beats by $0.02, reports revs in-line; guides Q4 EPS below consensus, revs below consensus
Trinity Industries (TRIN) beats by $0.02, misses on revs; guides FY22 EPS in-line
TrueBlue (TBI) reports EPS in-line, misses on revs
UBS AG (UBS) beats by $0.12, beats on revs
UPS (UPS) beats by $0.14, reports revs in-line; reaffirms FY22revs guidance
Valero Energy (VLO) beats by $0.19, beats on revs
Warner Bros. Discovery (WBD) discloses it estimates it will incur $1.3 - $1.6 billion of pre-tax restructuring charges in Q3 2022
W.R. Berkley (WRB) reports Q3 (Sep) results, revs in-line
WSFS Financial (WSFS) misses by $0.02, net interest income increased 69.2%
Xerox (XRX) misses by $0.21, reports revs in-line; guides FY22revs in-line
Zions Bancorp (ZION) reports Q3 (Sep) results, beats on revs
News:
EU ministers will debate cap on natural gas prices, according to the Wall Street Journal
Fed and other central banks are losing money. Governments might have to make up the difference, according to Bloomberg
UK Prime Minister Rishi Sunak pledges to fix mistakes and says his country is "facing a profound economic crisis", according to CNBC
US could send Hawk air defense weapons to Ukraine, according to Reuters
Adidas (ADDYY) ends partnership with Kanye West, according to Bloomberg
Amazon (AMZN) reportedly freezes hiring in parts of web services division, according to the New York Post
AMERCO (UHAL) to change corporate name to U-Haul Holding Company at end of CY22[ announces creation of the non-voting common stock
AstraZeneca (AZN) provides update on the MESSINA Phase III trial for Fasenra; did not meet one of the two dual-primary endpoints
BayCom (BCML) authorizes repurchase of up to 645,000 shares, or approximately 5% of its outstanding shares
Bill.com(BILL): Google (GOOG) Cloud CMO Alison Wagonfeld joins its Board of Directors
Castle Biosciences (CSTL) announces new data showing that the use of TissueCypher Barrett's Esophagus Test results can significantly improve management decisions for Barrett's esophagus patients with low-grade dysplasia to improve health outcomes
Cellebrite DI (CLBT) announces agreement with Sandline Global to enhance its in-house investigative and evidence management operations with Cellebrite Guardian
Constellation Brands (STZ) subsidiaries enter into consent agreement to consolidate US cannabis assets of Canopy Growth (CGC)
Cronos Group (CRON): SEC charged CRON for improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods
Euronet (EEFT) amends and extends its unsecured revolving credit facility
Fluor (FLR) awarded reimbursable front-end engineering and design, engineering, and procurement services contract for Imperial diesel project in Canada
Graham (GHM) announces that it achieved a record of $92 mln in orders for 2Q23
Gritstone bio (GRTS) announces "positive" Phase 1 results from its ongoing CORAL-BOOST and CORAL-CEPI trials evaluating its self-amplifying mRNA vaccine candidates against SARS-CoV-2
Guidewire Software (GWRE) announces One Inc as its strategic partner for payments to provide digital experiences throughout the insurance lifecycle
Laureate Education (LAUR) approves special cash dividend equal to $0.68/share of common stock
Microsoft (MSFT) trying to compete with Sony (SONY) in Chinese gaming industry, according toReuters
Milestone Pharmaceuticals (MIST) Announces Late-Breaking Presentation of Data from Phase 3 RAPID Clinical Trial of Etripamil Nasal Spray in Patients with Paroxysmal Supraventricular Tachycardia at the American Heart Association Scientific Sessions 2022
Primoris Services (PRIM) was awarded seven projects secured by the Energy/Renewables segment with a combined estimated value of ~$400 mln
PulteGroup (PHM) announces COO John Chadwick plans to retire next year; Brandon Jones will succeed as COO effective Jan. 1, 2023
Royal Bank of Canada (RBC) looking to expand into UK consumer banking, according to Financial Times
The Children's Place (PLCE) appoints Sheamus Toal CFO, effective November 7
Toyota Motor (TM) unchanged on report it is considering a reboot of its EV strategy to better compete with Tesla (TSLA), according to Reuters
Uber (UBER) and Walgreens Boots Alliance (WBA) announce new partnership for free prescription delivery of Paxlovid
M&A:
Canopy Growth (CGC) to acquire Acreage Holdings assets, including Acreage, Wana, and Jetty
Cullinan Management (CGEM) increases ownership in its Cullinan MICA subsidiary from 54% to 92%
Peoples Bancorp and Limestone Bancorp (LMST) announce the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire, in an all-stock merger, Limestone and the parent company of Limestone Bank
Sizzle Acquisition Corp. (SZZL) and European Lithium AT announced SPAC merger agreement overnight; deal will result in formation of Critical Metals Corp., expects to trade under Nasdaq symbol "CRML" in 1H23
Snap One (SNPO) acquires Parasol, a remote support service; financial details not disclosed
UGI Corp (UGI) announces divestiture of energy marketing business in the United Kingdom to British Gas for undisclosed amount
Weber (WEBR): BDT Capital offers to acquire WEBR shares not already owned for $6.25/share in cash per 13D filing
Syndicate:
Gritstone bio (GRTS) announces private placement of $45.0 mln
Uranium Energy (UEC) files for 17,805,815 share common stock offering by selling shareholders
Vaxcyte (PCVX) commences public offering of its common stock and pre-funded warrants; size not disclosed
IPOs:
Expected to Price:
Mobileye Global (NYSE: MBLY): The developer of advanced driver assistance systems and autonomous driving technologies is expected to price its 41.0 M share IPO between $16-$18.
Gapping Up/Down
Gapping up:
MEDP +24.8%, WEBR +23.5%, AAN +17.9%, XM+11.6%, CLS +7.4%, CALX +7.3%, ARI +6%, LOGI+5.7%, COOK +5.5%, EEFT +5%, UBS +4%, PRIM+3.9%, ADTN +3.5%, VLRS +3.2%, SAP +3.1%, BNR+2.9%, HLX +2.5%, SSB +2.4%, GHM +2.2%, LAUR+1.9%, TM +1.7%, AGNC +1.7%, HXL +1.4%, AVDL+1.1%, TRQ +0.8%
Gapping down:
CCK -9.4%, HSII -7.7%, HSBC -6.9%, CR -5.2%, ZION-4.9%, ORAN -3.6%, PII -3.2%, TBI -2.9%, CRON-2.7%, PKG -2.7%, TBPH -2.5%, BRO -2.5%, AWI-2.4%, CADE -2%, UEC -1.7%, ARE -1.7%, WRB-1.5%, RRC -1.4%, DFS -1.3%, PCVX -1.1%, NWE-1%, AMZN -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Assoc Banc-Corp (ASB) upgraded to Neutral from Underperform at BofA Securities; tgt $24
Hibbett (HIBB) upgraded to Buy from Neutral at BofA Securities; tgt $75
Netflix (NFLX) upgraded to Outperform from Neutral at Daiwa Securities; tgt raised to $330
TechnipFMC (FTI) upgraded to Buy from Hold at HSBC Securities; tgt $13.50
Downgrades:
Arista Networks (ANET) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $110
Brigham Minerals (MNRL) downgraded to Hold from Buy at Stifel; tgt lowered to $27
Equinox Gold (EQX) downgraded to Underperform from Sector Perform at RBC Capital Mkts
First Advantage Corp. (FA) downgraded to Hold from Buy at Jefferies; tgt lowered to $13
Health Catalyst (HCAT) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $9
Others:
Caleres (CAL) initiated with a Neutral at Piper Sandler; tgt $28
Casella Waste (CWST) assumed with a Buy at Jefferies; tgt lowered to $95
Coterra Energy (CTRA) resumed with a Buy at Stifel; tgt $40
Deckers Outdoor (DECK) initiated with an Overweight at Piper Sandler; tgt $440
EOG Resources (EOG) resumed with a Buy at Stifel; tgt $151
FedEx (FDX) initiated with a Hold at Jefferies; tgt $170
Forward Air (FWRD) initiated with a Buy at Jefferies; tgt $120
GFL Environmental (GFL) assumed with a Buy at Jefferies; tgt lowered to $41
GXO Logistics (GXO) initiated with a Buy at Jefferies; tgt $70
Innoviz Technologies (INVZ) initiated with a Neutral at Rosenblatt; tgt $5
Landstar System (LSTR) initiated with a Hold at Jefferies; tgt $145
LAVA Therapeutics (LVTX) initiated with a Buy at H.C. Wainwright; tgt $9
LSB Industries (LXU) initiated with a Neutral at Goldman; tgt $20
Luminar Technologies (LAZR) initiated with a Neutral at Rosenblatt; tgt $8
Upcoming Events:
Econ Data:
09:00 ET: FHFA Housing Price Index for Aug (Briefing.comConsensus -0.7%; Prior -0.6%)
09:00 ET: S&P Case-Shiller Home Price Index for Aug (Briefing.comConsensus 14.0%; Prior 16.1%)
10:00 ET: Consumer Confidence for Oct (Briefing.comConsensus 105.5; Prior 108.0)
Earnings
Monday (Oct 24)
Morning: BOH CBU DORM HNI KEX PHG SCHN
Afternoon: AGNC ARE BRO CADE CDNS CALX CATY CLS CR CCK DFS HSTM HXL HOPE IBTX LOGI MEDP NWE PKG PCH XM RRC SSD SSB AAN TBI WRB WSFS ZION
Tuesday (Oct 25)
Morning: MMM ADM ARCC AWI BIIB CNC CLF KO GLW FBP FELE GATX GE GM GPK HAL HUBB ITW IVZ JBLU KMB LKFN MCO MSCI NVS NVR ONB PCAR PNR PII POR PHM RTX SAP ST SHW SSTK SFNC SITC SBSI SYF TRU TRN UBS UPS VLO XRX
Afternoon: AGYS GOOG AMP AGR AXTA BXP BYD CNI CHX CC CMG CB CSGP EGP WIRE ENPH EQC EQR FFIV FCF FIBK FE HA HIW IEX JNPR KRC LXFR MANH MTDR MAT MXL MSFT NAVI NCR NXGN NEX RNST ROIC SKX SPOT LRN TENB TER TXN TNET TRMK UMBF UHS VBTX VICR V WSBC WH
Asia & Europe detail:
Asia: Nikkei +1.0%, Hang Seng -0.1%, Shanghai Composite UNCH
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. The Bank of Japan's cabinet office released its October economic report, noting that growth is picking up. The report upgraded the assessment of capital spending and lowered the view on imports. Hyundai is starting construction on a $5.5 bln electric vehicle plant in Georgia. Australia's budget projects 3.25% growth in FY22/23, followed by a slowdown to 1.5% in FY23/24.
In economic data:
Japan's September BoJ Core CPI 2.0% yr/yr (expected 1.9%; last 1.9%)
South Korea's October Consumer Confidence 88.8 (last 91.4)
Singapore's September CPI 7.5% yr/yr, as expected (last 7.5%) and Core CPI 5.3% yr/yr (expected 5.2%; last 5.1%)
Hong Kong's September trade deficit $44.90 bln (last deficit of HKD13.30 bln). September Imports -7.8% m/m (last -16.3%) and Exports -9.1% m/m (last -14.3%)
---Equity Markets---
Japan's Nikkei: +1.0%
Hong Kong's Hang Seng: -0.1%
China's Shanghai Composite: UNCH
India's Sensex: -0.5%
South Korea's Kospi: -0.1%
Australia's ASX All Ordinaries: +0.2%
---FX---
USD/JPY: UNCH at 148.94
USD/CNH: +0.6% to 7.3639
USD/INR: +0.1% to 82.82
Europe: DAX -0.7%, FTSE -0.6%, CAC +0.4%
Major European indices are mixed. Rishi Sunak officially became U.K.'s prime minister today. Germany's ifo Institute warned about a high risk of a winter recession in Germany in its October report. UBS and SAP reported better than expected results for Q3. The eurozone bank lending survey for Q3 noted a tightening of credit standards with additional tightening and falling demand expected in Q4.
In economic data:
Germany's October ifo Business Climate Index 84.3 (expected 83.3; last 84.4). October Current Assessment 94.1 (expected 92.4; last 94.5) and Business Expectations 75.6 (expected 75.0; last 75.3)
U.K.'s October CBI Industrial Trends Orders -4 (expected -12; last -2)
Spain's September PPI 35.6% yr/yr (last 42.9%)
---Equity Markets---
STOXX Europe 600: +0.1%
Germany's DAX: -0.7%
U.K.'s FTSE 100: -0.6%
France's CAC 40: +0.4%
Italy's FTSE MIB: -0.3%
Spain's IBEX 35: +0.4%
---FX---
EUR/USD: -0.2% to 0.9857
GBP/USD: +0.4% to 1.1327
USD/CHF: +0.2% to 1.0025
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