The S&P 500 futures are down 34 points and are trading 0.7% below fair value. The Nasdaq 100 futures are down 161 points and are trading 1.0% below fair value. The Dow Jones Industrial Average futures are down 169 points and are trading 0.5% below fair value.
Equity futures indicate losses at the open. There has been a flood of earnings news since yesterday's close from a multitude of sectors. Meta Platforms (META) is a losing standout, down almost 4% in pre-open action after reporting earnings.
Today's negative bias has been partially fueled by rising rates. The 10-yr note yield is approaching 5.00% again, up three basis points to 4.98%.
Geopolitical worries are also contributing to the negative bias after Israeli Prime Minister Benjamin Netanyahu said his country is "preparing for a ground invasion" following targeted raids in Gaza, according to The Washington Post.
The European Central Bank is expected to keep rates unchanged in its 8:15 ETpolicy announcement.
Market participants are also awaiting Q3 GDP at 8:30 a.m. ET. Other U.S. economic data includes:
8:30 ET: Weekly Initial Claims (Briefing.comconsensus 210,000; prior 198,000), Continuing Claims (prior 1.734 mln), September Durable Orders (Briefing.comconsensus 1.5%; prior 0.2%), Durable Orders ex-transportation (Briefing.comconsensus 0.3%; prior 0.4%), advance September goods trade balance (prior -$84.3 bln), advance September Retail Inventories (prior 1.1%), and advance September Wholesale Inventories (prior -0.1%)
10:00 ET: September Pending Home Sales (Brieefing.comconsensus 0.5%; prior -7.1%)
10:30 ET: Weekly natural gas inventories (prior +97 bcf)
In corporate news:
Meta Platforms (META 288.40, -11.07, -3.7%): beats by $0.75, beats on revs; guides Q4 revs in-line, lowers FY23 expense guidance, lowers high end of capex guidance range; AI will be biggest investment area in 2024
IBM (IBM 138.80, +1.72, +1.3%): beats by $0.08, reports revs in-line; reaffirms FY23 outlook for CC revs and FCF; Reiterates FY23 constant currency revenue growth target of +3-5% (not comparable to consensus); Q4 cc revenue growth similar to +3.5% in Q3
ServiceNow (NOW 546.75, +16.58, +3.1%): beats by $0.36, reports revs in-line; Subscription revenues of $2,216 million in Q3 2023, representing 27% year-over-year growth, 24.5% in constant currency. Co sees Q4 sub revenues of $2.32-2.325 bln
Align Tech (ALGN 193.00, -60.69, -23.9%): misses by $0.12, misses on revs; guides Q4 revs below consensus; guides FY23 revs below consensus
UPS (UPS 142.50, -4.43, -2.8%): beats by $0.05, misses on revs; guides FY23 revs below consensus
Northrop Grumman (NOC 487.50, +4.24, +0.9%): reports Q3 (Sep) results, beats on revs; guides FY23 EPS in-line, raises revs above consensus
Ford (F 11.83, +0.29, +2.5%): UAW reaches tentative agreement on record contract with Ford Motor
Southwest Air (LUV 22.55, -1.05, -4.5%): reports EPS in-line, revs in-line
Mattel (MAT 18.14, -1.97, -9.8%): beats by $0.22, beats on revs; raises FY23 EPS outlook, reaffirms FY23 revs guidance
Honeywell (HON 177.72, -0.37, -0.2%): beats by $0.04, reports revs in-line; narrows FY23 EPS in-line, revs in-line
Merck (MRK 104.20, +0.57, +0.6%): beats by $0.18, beats on revs; lowers FY23 EPS guidance, raises revenue guidance
Hershey Foods (HSY 200.94, +6.47, +3.3%): beats by $0.14, beats on revs; reaffirms FY23 guidance
Comcast (CMCSA 42.00, -0.75, -1.8%): beats by $0.13, beats on revs
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -2.1%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.5%, India's Sensex: -1.4%, South Korea's Kospi: -2.7%, Australia's ASX All Ordinaries: -0.6%.
In economic data:
Japan's August Corporate Services Price Index 2.1% yr/yr (expected 2.0%; last 2.1%)
South Korea's Q3 GDP 0.6% qtr/qtr (expected 0.5%; last 0.6%); 1.4% yr/yr (expected 1.1%; last 0.9%). November Manufacturing BSI Index 71 (last 68)
Hong Kong's September trade deficit $64.6 bln (last deficit of $25.6 bln). September Imports -0.4% m/m (last -0.3%) and Exports -5.3% m/m (last -3.7%)
Australia's Q3 Import Price Index 0.8% qtr/qtr (expected 0.2%; last -0.8%) and Export Price Index -3.1% qtr/qtr (last -8.5%)
Singapore's Q3 Unemployment Rate 2.0% (last 1.9%). September Industrial Production 10.7% m/m (expected 7.5%; last -10.8%); -2.1% yr/yr (expected -4.8%; last -11.6%)
In news:
China's smartphone shipments were down 5% yr/yr in Q3.
China reportedly restricted highly indebted local governments from taking on new debt in late September.
China's Foreign Minister Wang Yi will meet with U.S. officials, including President Biden, today.
Toyota lowered its production targets for November and December and set a January domestic production target of 13,800 units per day.
Reserve Bank of Australia Governor Bullock said that he has yet to decide if another rate hike is needed after yesterday's release of hotter than expected CPI for Q3.
Major European indices trade in the red. STOXX Europe 600: -0.9%, Germany's DAX: -1.5%, U.K.'s FTSE 100: -0.9%, France's CAC 40: -0.8%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -0.9%.
In economic data:
U.K.'s October CBI Distributive Trades Survey -36 (expected -16; last -14)
Spain's Q3 Unemployment Rate 11.84% (expected 11.50%; last 11.60%)
In news:
The European Central Bank is expected to conclude today's policy meeting with an 8:15 ETdecision to keep the interest rate corridor unchanged after ten consecutive rate hikes.
Chipmaker STMicroelectronics issued below-consensus guidance for Q4 while Mercedes reported weak profit margins due to price pressures in the EV segment.
Food company Danone raised its revenue guidance for the year.
A YouGov poll in the U.K. showed that one-year inflation expectations slowed to 4.2% from 4.4% in September while the 5-10 year outlook remained at 3.3%.
U.S. equity futures:
S&P 500 Futures -30 @ 4,157
DJIA Futures: -122 @ 33,914
Nasdaq 100 Futures: -140 @ 14,241
Overseas:
Europe: DAX -1.5%, FTSE -0.9%, CAC -0.8%
Asia: Nikkei -2.1%, Hang Seng -0.2%, Shanghai Composite +0.5%
Commodities:
Crude Oil -1.51 @ 83.88
Nat Gas +0.093 @ 3.385
Gold -0.15 @ 1994.75
Silver +0.055 @ 23.062
Copper +0.0133 @ 3.6043
Earnings/Guidance:
Agnico-Eagle Mines (AEM) beats by $0.02, reports revs in-line; on-track to be above the mid-point of its production guidance for 2023
Alamos (AGI) beats by $0.02, beats on revs; raises full-year production guidance
Align Tech (ALGN) misses by $0.12, misses on revs; guides Q4 revs below consensus; guides FY23 revs below consensus
Allison Transmission (ALSN) beats by $0.01, misses on revs; reaffirms FY23 revs guidance
Altria (MO) misses by $0.01, misses on revs; guides FY23 EPS in-line
American Tower (AMT) beats by $0.17, beats on revs; guides FY23 FFO in-line
Ameriprise Financial (AMP) beats by $0.08, beats on revs
Antero Midstream (AM) beats by $0.01, misses on revs
Antero Resources (AR) beats by $0.02, beats on revs
A.O. Smith (AOS) beats by $0.11, beats on revs; guides FY23 EPS above consensus, revs above consensus
Applied Industrial (AIT) beats by $0.30, reports revs in-line; guides FY24 EPS above consensus, revs in-line
AptarGroup (ATR) misses by $0.33, misses on revs; guides Q4 EPS in-line
Arch Coal (ARCH) beats by $0.66, beats on revs
ASGN Incorporated (ASGN) beats by $0.12, reports revs in-line; guides Q4 EPS below consensus, revs below consensus
AvalonBay (AVB) beats by $0.03
AVANGRID (AGR) misses by $0.13, reports revs in-line
Baker Hughes (BKR) beats by $0.02, beats on revs
Benchmark Electronics (BHE) beats by $0.05, beats on revs; guides Q4 EPS in-line, revs below consensus
Blueprint Medicines (BPMC) beats by $0.17, beats on revs
Boston Scientific (BSX) beats by $0.02, beats on revs; guides Q4 EPS in-line
Bristol-Myers (BMY) beats by $0.24, reports revs in-line; guides FY23 EPS above consensus
Brunswick (BC) misses by $0.74, misses on revs; lowers FY23 guidance
Bunge (BG) beats by $0.49, misses on revs; guides FY23 EPS above consensus
CACI Intl (CACI) misses by $0.19, beats on revs; raises FY24 EPS and revenue guidance
Canadian Pacific (CP) beats by $0.01, reports revs in-line; guides FY23 EPS in-line
Carrier Global (CARR) beats by $0.09, misses on revs; guides FY23 EPS above consensus, reaffirms FY23 revs guidance
CBIZ (CBZ) beats by $0.08, beats on revs; reaffirms FY23 EPS guidance, revs guidance
Celestica (CLS) beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY24 EPS above consensus
Cementos Pacasmayo (CPAC) reports Q3 results
CenterPoint (CNP) beats by $0.05, misses on revs; raises FY23 EPS in-line; initiates FY24 EPS in-line
Century Communities (CCS) beats by $0.94, beats on revs
Chemed (CHE) beats by $0.42, beats on revs
Churchill Downs (CHDN) beats by $0.03, reports revs in-line
CMS Energy (CMS) beats by $0.02, misses on revs; reaffirms FY23 EPS guidance; guides FY24 EPS below consensus
Comcast (CMCSA) beats by $0.13, beats on revs
Community Health (CYH) misses by $0.17, beats on revs
CONMED (CNMD) beats by $0.07, beats on revs; raises low end of FY23 prior guidance for EPS and revs
Danone (DANOY) reports Q3 trading statement; LFL sales up 6%; raises outlook
Eagle Materials (EXP) beats by $0.02, misses on revs
Edwards Lifesciences (EW) reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs below consensus; reaffirms FY23 EPS guidance
Element Solutions (ESI) beats by $0.03, misses on revs; guides FY23 EPS in-line
EMCOR Group (EME) beats by $0.90, beats on revs; raises FY23 EPS above two analyst estimate, revs above two analyst estimate
Employers Holdings (EIG) misses by $0.01, misses on revs
Ensign Group (ENSG) beats by $0.01, reports revs in-line; guides FY23 EPS in-line, revs above consensus
EPR Properties (EPR) beats by $0.09, beats on revs; guides Q4 FFO below consensus
Everest Group (EG) beats by $4.38, beats on revs
EQT Corp. (EQT) beats by $0.39, beats on revs; guides to Q4 sales volume of 525-575 Bcfe
Equinix (EQIX) beats by $0.38, reports revs in-line; guides Q4 revs in-line; increases dividend 25%
Ethan Allen (ETD) misses by $0.09, misses on revs
ExlService (EXLS) beats by $0.03, beats on revs; guides FY23 EPS in-line, raises revenue guidance
FirstCash (FCFS) beats by $0.18, misses on revs
First Interstate Bancsystem (FIBK) beats by $0.08
Flex (FLEX) beats by $0.10, reports revs in-line; guides FY24 EPS above consensus, revs below consensus; announces plan to spin-off Nextracker Inc.
Flowserve (FLS) beats by $0.07, beats on revs; guides FY23 EPS in-line, revs in-line
Fortune Brands Innovations (FBIN) beats by $0.10, reports revs in-line; guides Q4 EPS below consensus, revs in-line
Frontier Group Holdings (ULCC) beats by $0.03, misses on revs
FTAI Aviation Ltd. (FTAI) misses by $0.09, misses on revs
FTI Consulting (FCN) beats by $0.50, beats on revs; raises low end of FY23 guidance ranges
Gentherm (THRM) misses by $0.04, misses on revs; lowers FY23 revenue guidance
Globe Life (GL) beats by $0.06, reports revs in-line; raises FY23 EPS in-line; guides FY24 EPS in-line
Goosehead Insurance (GSHD) beats by $0.16, reports revs in-line; reaffirms FY23 revs guidance
Graco (GGG) beats by $0.03, misses on revs
H&E Equipment (HEES) reports EPS in-line, beats on revs
Harley-Davidson (HOG) beats by $0.02, beats on revs; reaffirms FY23 guidance
Hasbro (HAS) misses by $0.08, misses on revs; lowers FY23 revs guidance below consensus
Hershey Foods (HSY) beats by $0.14, beats on revs; reaffirms FY23 guidance
Hertz Global (HTZ) beats by $0.02, reports revs in-line
Honeywell (HON) beats by $0.04, reports revs in-line; narrows FY23 EPS in-line, revs in-line
IBM (IBM) beats by $0.08, reports revs in-line; reaffirms FY23 outlook for CC revs and FCF
ICON plc (ICLR) beats by $0.03, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance
IDEX Corp (IEX) beats by $0.23, reports revs in-line; guides Q4 EPS below consensus
Insmed (INSM) beats by $0.03, reports revs in-line; reiterates FY23 guidance for global ARIKAYCE revs
Invitation Homes (INVH) misses by $0.01, beats on revs; guides FY23 FFO in-line
Kaiser Alum (KALU) misses by $0.04, misses on revs
Kenvue (KVUE) reports EPS in-line, revs in-line, authorizes share repurchase program for up to 27 mln shares of common stock
Keurig Dr Pepper (KDP) beats by $0.01, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance
Kilroy Realty (KRC) beats by $0.05, beats on revs; guides FY23 FFO above consensus
Kimco Realty (KIM) beats by $0.01, beats on revs; guides FY23 FFO in-line
Kirby (KEX) beats by $0.02, misses on revs
KLA Corporation (KLAC) beats by $0.37, beats on revs; guides DecQ EPS in-line, revs in-line
Laboratory Corp (LH) beats by $0.05, beats on revs; guides FY23 EPS in-line, revs below consensus
Landstar System (LSTR) reports EPS in-line, misses on revs; guides Q4 EPS below consensus, revs below consensus
Lazard (LAZ) misses by $0.06, misses on revs
Lear (LEA) beats by $0.26, beats on revs; raises FY23 revs above consensus
Lending Club (LC) beats by $0.02, beats on revs, issues Q4 loan origination guidance
Lennox Int'l (LII) beats by $0.62, beats on revs; raises FY23 guidance
Linde plc (LIN) beats by $0.05, misses on revs; guides Q4 EPS in-line
LKQ (LKQ) misses by $0.10, beats on revs; guides FY23 EPS below consensus; raises dividend
Luxfer (LXFR) reports EPS in-line, revs in-line; guides Q4 EPS below estimate; initiates strategic review
Manchester United (MANU) reports Q4 results, beats on revs; guides FY24 revs below consensus
MarineMax (HZO) misses by $0.03, beats on revs; guides FY24 EPS in-line
Masco (MAS) beats by $0.09, reports revs in-line; guides FY23 EPS above consensus
Mattel (MAT) beats by $0.22, beats on revs; raises FY23 EPS outlook, reaffirms FY23 revs guidance
MaxLinear (MXL) misses by $0.02, misses on revs; guides Q4 revs below consensus
MDC Holdings (MDC) beats by $0.20, misses on revs
Mercedes-Benz Group AG (MBGYY) reports Q3 results; reaffirms FY23 outlook
Merck (MRK) beats by $0.18, beats on revs; lowers FY23 EPS guidance, raises revenue guidance
Meta Platforms (META) beats by $0.75, beats on revs; guides Q4 revs in-line, lowers FY23 expense guidance, lowers high end of capex guidance range
Methanex (MEOH) beats by $0.07, beats on revs
Mid-America Aptmt (MAA) beats by $0.01, reports revs in-line; narrows FY23 FFO guidance in-line
Mobileye Global (MBLY) beats by $0.05, reports revs in-line; lowers top end of FY23 guidance
Molina Healthcare (MOH) beats by $0.17, beats on revs; reaffirms FY23 EPS outlook
MYR Group (MYGR) misses by $0.02, beats on revs
Nabors Industries (NBR) reports Q3 (Sep) results, misses on revs
NETGEAR (NTGR) beats by $0.27, beats on revs; guides Q4 revs below two analyst estimate
Newmont Goldcorp (NEM) misses by $0.04, misses on revs
Nextracker (NXT) beats by $0.29, beats on revs; guides FY24 revs in-line
Northrop Grumman (NOC) reports Q3 (Sep) results, beats on revs; guides FY23 EPS in-line, raises revs above consensus
NovoCure (NVCR) beats by $0.07, misses on revs
Oceaneering Intl (OII) beats by $0.06, reports revs in-line; guides Q4 revs above consensus
Opera (OPRA) beats by $0.01, beats on revs; guides Q4 revs above two analyst estimate; guides FY23 revs above consensus
O'Reilly Auto (ORLY) beats by $0.31, beats on revs, comps of +8.7%; guides FY23 EPS in-line, revs above consensus, raises comp guidance
Oshkosh (OSK) reports Q3 EPS of $3.04 vs. $2.20 FactSet consensus; revs +21% yr/yr to $2.51 bln vs. $2.47 bln FactSet consensus
Pathward Financial (CASH) beats by $0.11, beats on revs; guides FY23 EPS above consensus
Pegasystems (PEGA) beats by $0.43, beats on revs
PG&E (PCG) misses by $0.01, beats on revs; reaffirms FY23 EPS guidance
Pilgrim's Pride (PPC) beats by $0.16, beats on revs
Plexus (PLXS) beats by $0.18, reports revs in-line; guides Q1 EPS in-line, revs in-line; reiterates goal of $5.0 bln in revenue by FY25 (Sep)
Precision Drilling (PDS) misses by $0.28, beats on revs
QuantumScape Corporation (QS) beats by $0.02
Raymond James (RJF) misses by $0.14, beats on revs
Reliance Steel (RS) reports EPS in-line, revs in-line; guides Q4 EPS below consensus
Rollins (ROL) beats by $0.03, beats on revs
Royal Caribbean (RCL) beats by $0.39, beats on revs; guides FY23 EPS above consensus, bookings remained strong throughout the quarter
Sallie Mae (SLM) misses by $0.28, beats on revs
SEI Investments (SEIC) reports EPS in-line, misses on revs
ServiceNow (NOW) beats by $0.36, reports revs in-line
Simulations Plus (SLP) reports EPS in-line, misses on revs; guides FY24 EPS below consensus, revs below consensus
Sonic Automotive (SAH) beats by $0.25, beats on revs, approves 3.4% increase to quartely cash dividend
Southside Banc (SBSI) misses by $0.16
Southwest Air (LUV) reports EPS in-line, revs in-line
Spirit Airlines (SAVE) beats by $0.11, reports revs in-line; sees Q4 margins lower than Q3
Stewart Info (STC) beats by $0.15, beats on revs; results reflect the continuing slowdown in real estate market activity
STMicroelectronics (STM) beats by $0.07, beats on revs; guides Q4 revs below consensus
Sun Communities (SUI) beats by $0.09, beats on revs; guides Q4 FFO below consensus; lowers FY23 FFO in-line
Sunnova Energy (NOVA) reports Q3 (Sep) results, misses on revs
Takeda Pharma (TAK) reports H1 results; revs rise 6%; raises outlook
TAL Education (TAL) beats by $0.07; beats on revs
TechnipFMC (FTI) beats by $0.02, beats on revs
Teradyne (TER) beats by $0.07, beats on revs; guides Q4 EPS in-line, revs in-line
Textron (TXT) beats by $0.20, misses on revs; guides FY23 EPS above consensus
The Shyft Group (SHYF) beats by $0.05, misses on revs; guides FY23 EPS in-line, revs in-line
TotalEnergies SE (TTE) beats on top and bottom lines
Tractor Supply (TSCO) reports Q3 results, misses on revs; guides FY23 EPS below consensus, revs below consensus
Tradeweb Markets (TW) reports EPS in-line, revs in-line
TriNet Group (TNET) beats by $0.52, beats on revs; guides Q4 EPS in-line, revs above consensus
TRI Pointe Homes (TPH) beats by $0.19, beats on revs
Tronox (TROX) misses by $0.13, misses on revs
Ultra Clean Holdings (UCTT) misses by $0.06, reports revs in-line; guides Q4 EPS in-line, revs in-line
Unilever (UL) reports Q3 trading statement; misses on revs; reaffirms outlook; CFO to retire; names new CFO
United Rentals (URI) beats by $0.50, beats on revs; raises bottom end of FY23 revs outlook
Universal Health (UHS) beats by $0.18, reports revs in-line
UPS (UPS) beats by $0.05, misses on revs; guides FY23 revs below consensus
Valero Energy (VLO) beats by $0.02, reports revs in-line
Valley National (VLY) reports EPS in-line
Valmont (VMI) beats by $0.37, misses on revs; guides FY23 EPS below consensus, lowers revs below consensus
Veralto (VLTO) beats by $0.04, beats on revs; guides Q4 EPS above consensus; intends to initiate quarterly dividend
VICI Properties (VICI) beats by $0.01, reports revs in-line; guides FY23 FFO in-line
Viking Therapeutics (VKTX) beats by $0.45
Visteon (VC) beats by $0.43, misses on revs; guides FY23 revs below consensus
Volkswagen AG (VWAGY) reports nine-month results; revs rise 16% yr/yr
Vulcan Materials (VMC) reports EPS in-line, revs in-line
Waste Connections (WCN) beats by $0.03, reports revs in-line
WesBanco Inc (WSBC) reports EPS in-line
Western Union (WU) beats by $0.04, beats on revs; guides Q4 EPS below consensus, revs above consensus
West Fraser (WFG) beats by $0.41, misses on revs, now expects 2023 SYP shipments to be at the bottom end of its guidance range
West Pharm (WST) beats by $0.30, reports revs in-line; guides FY23 EPS above consensus, revs below consensus; raises dividend
WEX (WEX) beats by $0.28, beats on revs; guides Q4 EPS in-line, revs above consensus
Whirlpool (WHR) beats by $1.18, beats on revs; guides FY23 EPS below consensus, revs above consensus
Willis Towers Watson (WTW) beats by $0.19, beats on revs
WPP plc (WPP) reports Q3 trading update; beats on revs; lowers outlook
Wyndham Hotels & Resorts (WH) beats by $0.07, beats on revs; guides FY23 EPS in-line
News:
Chinese President Xi puts more controls over financial sector, according to Financial Times
Israeli Prime Minister Benjamin Netanyahu says his country is "preparing for a ground invasion" of Gaza, according to the Washington Post
22 people were killed in two separate mass shootings in Maine. Authorities are searching for the suspect
White House issues readout of President Biden's call with Prime Minister Netanyahu of Israel
Accuray (ARAY) committed to a cost savings initiative to reduce op costs through the reduction of its global workforce
Albemarle (ALB) names Neal Sheorey as CFO effective Nov. 6, 2023
Alnylam (ALNY) announces publication of results from APOLLO-B Phase 3 study of patisiran in patients with the cardiomyopathy of ATTR amyloidosis in the New England Journal of Medicine
American Tower (AMT) announces that Tom Bartlett will retire from his positions as President, Chief Executive Officer and director of the Board of Directors, effective February 1, 2024
Amerisafe (AMSF) declares special dividend of $3.50/share and regular quarterly dividend
Ares Acquisition Corp. (AAC) U.S. Department of Energy signs cooperative agreement to further develop X-energy's Microreactor for commercial applications
Biogen (BIIB): Eisai presents new LEQEMBI (lecanemab-irmb) investigational subcutaneous formulation interim study results and clinical improvement data in earlier stages of early alzheimer's disease from additional analyses of clarity AD at The Clinical Trials On Alzheimer's Disease (CTAD) Conference
CenterPoint (CNP) appoints Jason Wells as CEO
Endeavor Group (EDR) announces the initiation of a formal review to evaluate strategic alternatives for the Company
Fluor (FLR) awarded FEED contract for world's first industrial-scale sodium-ion battery production Facility
Ford (F): UAW reaches tentative agreement on record contract with Ford Motor
Ford Motor (F) also confirmed it reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations
GlaxoSmithKline (GSK) and Pfizer's (PFE) ViiV Healthcare receives approval from China's National Medical Products Administration for Vocabria used in combination with Rekambys
IDEX Corp (IEX) appoints Abhi Khandelwal as CFO, effective Nov 20
IHS Holding Limited (IHS) announces a one-year partnership with the Limitless Space Institute
Keurig Dr Pepper (KDP) and Grupo PiSA announce partnership for Electrolit
Lennox Int'l (LII) announces that Executive Vice President and Chief Financial Officer Joe Reitmeier has elected to retire effective February 29, 2024
LianBio (LIAN) announces presentation of data from Phase 2a Study of Infigratinib in patients with gastric cancer at ESMO congress 2023
Marathon Petroleum (MPC) increases quarterly dividend to $0.825/share from $0.75/share
Materialise (MTLS) appoints Brigitte de Vet-Veithen as new CEO
Morgan Stanley (MS) announces that Co-President Edward Pick will become CEO on January 1; James Gorman to become Executive Chairman
Orchard Therapeutics (ORTX) Announces Presentation of Additional Positive Data from Proof-of-concept Study of OTL-203 in MPS-IH at ESGCT 2023
Park Hotels & Resorts (PK) announces that the trustee under the $725 mln non-recourse CMBS loan, by and through its special servicer, filed a lawsuit against the borrower entities related to the cessation of payments on the Loan
Pfizer (PFE) and BioNTech (BNTX) announced positive topline results from a Phase 1/2 study of mRNA-based combination vaccine candidates for influenza and COVID-19
Rocket Lab USA (RKLB) has received authorization from the Federal Aviation Administration to resume Electron launches from Launch Complex 1
ServiceNow (NOW) announces an expansion to their alliance to integrate Now Assist generative AI capabilities with next-generation managed services
Shell (RDS.A) eliminates low carbon jobs, acccording to Reuters
Solo Brands (DTC) CFO Somer Webb to pursue other opportunities; reaffirms guidance
Southwest Air (LUV) announces a Tentative Agreement with the Transport Workers Union Local 556 for the airline's nearly 19,000 Flight Attendants
Tronox (TROX) announces planned retirement of Co-CEO Jean-Franois Turgeon, John Romano to be appointed Sole CEO; effective April 1
UPS (UPS) has entered into an agreement to acquire Happy Returns from PayPal (PYPL); financial terms were not disclosed
M&A:
Choice Hotels (CHH) called upon the board of directors of Wyndham Hotels & Resorts (WH) to engage in good faith discussions so that shareholders of both companies can benefit from the compelling combination
Lennox Int'l (LII) acquires AES to expand commercial HVAC services; financial terms were not disclosed
Sociedad Quimica y Minera (SQM) offers to acquire Azure Minerals
Stellantis (STLA) to become a strategic shareholder of Leapmotor with 1.5 billion investment
Ultra Clean Holdings acquires HIS Innovations Group for $50 million in upfront cash subject to customary post-closing adjustments
Western Digital (WDC): Hynix is against merger between Kioxia and Western Digital, according to Financial Times
WEX (WEX) announces the signing of a definitive agreement to acquire Payzer
Syndicate:
Cibus Global (CBUS) files $200 mln mixed shelf securities offering
Owens Corning (OC) files mixed shelf securities offering
Selecta Biosciences (SELB) files $200 mln mixed shelf securities offering
IPOs:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
EDR +23.4%, PI +18.4%, FLEX +9.8%, NOVA+8.9%, EGBN +7.5%, CNMD +6.8%, FIBK+5.8%, CCS +5.2%, CMPR +5.2%, CBUS+4.9%, NOW +4.7%, AGI +4.4%, SELB +4.3%, WFG +4.3%, ORLY +4%, FLS +4%, SUI +3.6%, ROL +3.5%, NTGR +3.5%, STM +3.5%, RKLB+3.2%, TAL +3.1%, CASH +3%, LXFR +2.8%, TIGO +2.7%, PEGA +2.6%, F +2.3%, AM+2.2%, BG +2.1%, FLR +2%, CHDN +2%, BHE+2%, KRC +2%, ESI +2%, PLXS +2%, STC+2%, WU +1.9%, ASX +1.9%, AMSF +1.6%, IBM +1.6%, CHH +1.5%, VSTO +1.4%, NXT+1.3%, CVBF +1.3%, LKQ +1.3%, BKR +1.2%, BIIB +1.1%, EQT +1.1%, EPR +1.1%, MDC+1.1%
Gapping down:
ALGN -24%, MXL -20.2%, SLP -13.1%, MAT-10.2%, MEOH -7.7%, MYRG -6.6%, VKTX-6.4%, EW -6.3%, UCTT -5.1%, WHR -4.9%, OII -4.7%, CLS -4.3%, AGR -4.2%, FTAI -4%, TPH -3.9%, ALSN -3.8%, KALU -3.8%, CYH-3.7%, ENSG -3.3%, UL -3.2%, IEX -3%, META -2.8%, INVH -2.7%, URI -2.6%, EIG-2.6%, BC -2.6%, GSHD -2.3%, OSTK -2%, WCN -1.9%, UPS -1.9%, ITRI -1.8%, WPP-1.8%, LSTR -1.7%, EG -1.7%, SIRI -1.4%, QS -1.4%, ATR -1.4%, STLA -1.3%, TER -1%, FCFS -1%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Akamai Tech (AKAM) upgraded to Neutral from Sell at Guggenheim
Centessa Pharmaceuticals (CNTA) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $8
Installed Building Products (IBP) upgraded to Buy from Hold at The Benchmark Company; tgt $150
Microsoft (MSFT) upgraded to Buy from Hold at HSBC Securities; tgt raised to $413
Okta (OKTA) upgraded to Buy from Outperform at Daiwa Securities; tgt $87
UMB Financial Corporation (UMBF) upgraded to Buy from Neutral at Janney; tgt $73
Downgrades:
Arcutis Biotherapeutics (ARQT) downgraded to Neutral from Buy at Mizuho; tgt lowered to $4
Barclays PLC (BCS) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $7.31
Bath & Body Works (BBWI) downgraded to Hold from Buy at Jefferies; tgt lowered to $30
BOK Financial (BOKF) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $70
Fortive (FTV) downgraded to Neutral from Buy at BofA Securities; tgt $70
MaxLinear (MXL) downgraded to Neutral from Buy at ROTH MKM; tgt lowered to $18
Thermo Fisher (TMO) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Others:
4D Molecular Therapeutics (FDMT) initiated with an Outperform at RBC Capital Mkts; tgt $25
Procore Technologies (PCOR) initiated with an Outperform at BMO Capital Markets; tgt $80
Econ Data:
08:30 ET: Initial Claims for Oct. 21 (Briefing.comConsensus 210K; Prior 198K)
08:30 ET: Continuing Claims for Oct 14 (Briefing.comConsensus NA; Prior 1734K)
08:30 ET: Durable Orders for Sept (Briefing.comConsensus 1.5%; Prior 0.2%)
08:30 ET: Durable Orders ex-transportation for Sept (Briefing.comConsensus 0.3%; Prior 0.4%)
08:30 ET: GDP-Adv for Q3 (Briefing.comConsensus 4.0%; Prior 2.1%)
08:30 ET: Chain Deflator-Adv. for Q3 (Briefing.comConsensus 2.7%; Prior 1.7%)
08:30 ET: Adv. Intl. Trade in Goods for Q3 (Briefing.comConsensus NA; Prior -$84.3B)
08:30 ET: Adv. Retail Inventories for Sept (Briefing.comConsensus NA; Prior 1.1%)
08:30 ET: Adv. Wholesale Inventories for Sept (Briefing.comConsensus NA; Prior -0.1%)
10:00 ET: Pending Home Sales for Sept (Briefing.comConsensus 0.5%; Prior -7.1%)
10:30 ET: EIA Natural Gas Inventories for Oct. 21 (Briefing.comConsensus NA; Prior +97 bcf)
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 -2.1%, Hang Seng -0.2%, Shanghai Composite +0.5%
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. China's smartphone shipments were down 5% yr/yr in Q3. China reportedly restricted highly indebted local governments from taking on new debt in late September. China's Foreign Minister Wang Yi will meet with U.S. officials, including President Biden, today. Toyota lowered its production targets for November and December and set a January domestic production target of 13,800 units per day. Reserve Bank of Australia Governor Bullock said that he has yet to decide if another rate hike is needed after yesterday's release of hotter than expected CPI for Q3.
In economic data:
Japan's August Corporate Services Price Index 2.1% yr/yr (expected 2.0%; last 2.1%)
South Korea's Q3 GDP 0.6% qtr/qtr (expected 0.5%; last 0.6%); 1.4% yr/yr (expected 1.1%; last 0.9%). November Manufacturing BSI Index 71 (last 68)
Hong Kong's September trade deficit $64.6 bln (last deficit of $25.6 bln). September Imports -0.4% m/m (last -0.3%) and Exports -5.3% m/m (last -3.7%)
Australia's Q3 Import Price Index 0.8% qtr/qtr (expected 0.2%; last -0.8%) and Export Price Index -3.1% qtr/qtr (last -8.5%)
Singapore's Q3 Unemployment Rate 2.0% (last 1.9%). September Industrial Production 10.7% m/m (expected 7.5%; last -10.8%); -2.1% yr/yr (expected -4.8%; last -11.6%)
---Equity Markets---
Japan's Nikkei: -2.1%
Hong Kong's Hang Seng: -0.2%
China's Shanghai Composite: +0.5%
India's Sensex: -1.4%
South Korea's Kospi: -2.7%
Australia's ASX All Ordinaries: -0.6%
---FX---
USD/JPY: +0.1% to 150.26
USD/CNH: UNCH to 7.3293
USD/INR: +0.1% to 83.21
Europe: DAX -1.5%, FTSE -0.9%, CAC -0.8%
Major European indices trade in the red. The European Central Bank is expected to conclude today's policy meeting with an 8:15 ETdecision to keep the interest rate corridor unchanged after ten consecutive rate hikes. Chipmaker STMicroelectronics issued below-consensus guidance for Q4 while Mercedes reported weak profit margins due to price pressures in the EV segment. Food company Danone raised its revenue guidance for the year. A YouGov poll in the U.K. showed that one-year inflation expectations slowed to 4.2% from 4.4% in September while the 5-10 year outlook remained at 3.3%.
In economic data:
U.K.'s October CBI Distributive Trades Survey -36 (expected -16; last -14)
Spain's Q3 Unemployment Rate 11.84% (expected 11.50%; last 11.60%)
---Equity Markets---
STOXX Europe 600: -0.9%
Germany's DAX: -1.5%
U.K.'s FTSE 100: -0.9%
France's CAC 40: -0.8%
Italy's FTSE MIB: -0.7%
Spain's IBEX 35: -0.9%
---FX---
EUR/USD: -0.3% to 1.0536
GBP/USD: -0.2% to 1.2084
USD/CHF: +0.2% to 0.8984
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