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27/10/22 Briefing

The S&P 500 futures are down 1 point and are trading roughly in line with fair value. The Nasdaq 100 futures are down 62 points and are trading 0.6% below fair value. The Dow Jones Industrial Average futures are up 205 points and are trading 0.6% above fair value.

Equity futures are mixed this morning. There has been a positive response to reassuring earnings reports from several blue chip companies, including Dow components Honeywell (HON), McDonald's (MCD), Caterpillar (CAT), and Merck (MRK). Meanwhile, heavy selling of Meta Platforms (META) following its disappointing quarterly results is weighing on the Nasdaq 100 futures along with modest weakness in Apple (AAPL) and Amazon.com(AMZN) ahead of their reports after today's close. 

Treasury yields are modestly higher. The 10-yr note yield is up four basis points to 4.07% and the 2-yr note yield is up two basis points to 4.45%. Also, the U.S. Dollar Index is inching higher this morning after a big downside move yesterday, up 0.4% to 110.09.

The European Central Bank is expected to announce a 75 basis point increase in its key policy rates at 8:15 a.m. ET.  

Economic data today includes:

  • 8:30 ET: Advance Q3 GDP (Briefing.comconsensus 2.3%; prior -0.6%), advance Q3 Chain Deflator (Briefing.comconsensus 5.3%; prior 9.0%), weekly Initial Claims (Briefing.comconsensus 220,000; prior 214,000), Continuing Claims (prior 1.385 mln), September Durable Orders (Briefing.comconsensus 0.6%; prior -0.2%), and Durable Orders ex-transportation (Briefing.comconsensus 0.2%; prior 0.2%)

  • 10:30 ET: Weekly natural gas inventories (prior +111 bcf)

In corporate news:

  • Meta Platforms (META 100.94, -28.88, -22.3%): misses by $0.21, beats on revs; guides Q4 revs in-line; lowers high end of FY22expense guidance range, guides for FY23expenses of $96-$101 bln; with over 140 bln Reels plays daily, company believes it is gaining time spend share from TikTok; ad revs from large advertisers remains challenged

  • Ford Motor (F 12.57, -0.25, -1.95%): reports EPS in-line, revs in-line; guides to low end FY22adjusted EBIT prior guidance; increases FY22adjusted FCF guidance; resumes modest share repurchase program; to wind down its Argo AI joint venture

  • Caterpillar (CAT 206.61, +9.65, +4.90%): beats by $0.79, beats on revs

  • Merck (MRK 100.38, +1.97, +2.00%): beats by $0.14, beats on revs; guides FY22EPS in-line, revs above consensus

  • McDonald's (MCD 263.60, +6.99, +2.72%): beats by $0.10, beats on revs, global comps +9.5%, US comps +6.1%

  • Honeywell (HON 199.00, +8.73, +4.59%): beats by $0.10, reports revs in-line; guides FY22EPS in-line, revs in-line

  • Southwest Air (LUV 36.00, +1.63, +4.74%): beats by $0.08, reports revs in-line; guides Q4 revs above consensus

  • Align Tech (ALGN 176.20, -45.44, -20.50%): misses by $0.81, misses on revs

  • Sleep Number (SNBR 26.14, -10.48, -28.62%):  beats by $0.16, beats on revs; guides FY22EPS below consensus

  • ServiceNow (NOW 417.49, +51.08, +13.94%): beats by $0.11, reports revs in-line

  • Credit Suisse (CS 4.2400, -0.55, -11.48%): reports Q3 results; beats on revs; provides outlook; unveils new strategy; it is nearing sale of its securitized-products group to Apollo Global Management (APO) and PIMCO, according to WSJ

  • Wolfspeed (WOLF 79.15, -27.29, -25.64%): beats by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: +0.7%, China's Shanghai Composite: -0.6%, India's Sensex: +0.4%, South Korea's Kospi: +1.7%, Australia's ASX All Ordinaries: +0.5%.

  • In economic data:

  • China's September Industrial Profit -2.3% YTD (last -2.1%). September FDI 15.6% (last 16.4%)

  • South Korea's Q3 GDP 0.3% qtr/qtr (expected 0.1%; last 0.7%); 3.1% yr/yr (expected 2.8%; last 2.9%)

  • Australia's Q3 Import Price Index 3.0% qtr/qtr (last 4.3%) and Export Price Index -3.6% qtr/qtr (last 10.1%)

  • In news:

  • Press reports suggested that Japan is planning JPY29 trln in stimulus spending, up from the previous forecast for spending of JPY25.10 trln. The stimulus package is expected to be approved by Japan's cabinet tomorrow.

  • The Bank of Korea will temporarily broaden eligible loan collateral to improve liquidity among banks.

  • Smartphone shipments in China were reportedly down 11% yr/yr in Q3.

  • Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.2%) outperforms. STOXX Europe 600: -0.7%, Germany's DAX: -0.9%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -1.0%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -0.4%.

  • In economic data:

  • Germany's November GfK Consumer Climate -41.9, as expected (last -42.8)

  • U.K.'s October CBI Distributive Trades Survey 18 (last -20)

  • Italy's August Industrial Sales 3.6% m/m (last -0.2%); 23.1% yr/yr (last 16.2%). October Business Confidence 100.4 (expected 100.0; last 101.2) and Consumer Confidence 90.1 (expected 93.8; last 94.8)

  • Spain's Q3 Unemployment Rate 12.67% (expected 13.00%; last 12.48%)

  • In news:

  • British Prime Minister Sunak is reportedly reconsidering plans for tax hikes and spending cuts.

  • The European Central Bank is expected to announce a 75-bps rate hike at 8:15 ET.

  • Shell reported strong earnings, raised its dividend, and announced a buyback.

  • Credit Suisse reported a CHF4 bln loss and announced that its workforce will be reduced by 9,000 by the end of 2025.

 

U.S. equity futures:

  • S&P 500 Futures: -4 @ 3,827

  • DJIA Futures: +192 @ 32,030

  • Nasdaq 100 Futures: -72 @ 11,334

Overseas:

  • Europe: DAX -0.9%, FTSE +0.2%, CAC -1.0%

  • Asia: Nikkei -0.3%, Hang Seng +0.7%, Shanghai Composite -0.6%

Commodities:

  • Crude Oil +0.31 @ 88.22

  • Nat Gas  -0.092 @ 6.027

  • Gold -3.45 @ 1665.75

  • Silver -0.146  @ 19.34

  • Copper -0.0360 @ 3.509

U.S. Summary:

  • Earnings/Guidance:

  • Agnico-Eagle Mines (AEM) beats by $0.09, beats on revs; declares dividend

  • Alamos (AGI) reports EPS in-line, beats on revs; Produced 123,400 ounces of gold, a 19% increase from Q2

  • Align Tech (ALGN) misses by $0.81, misses on revs

  • Allegion (ALLE) beats by $0.16, beats on revs; raises FY22 EPS above consensus, reaffirms FY22 revs guidance

  • Allison Transmission (ALSN) beats by $0.01, beats on revs; narrows FY22 guidance towards high end

  • AmBev (ABEV) reports Q3 EPS of R 0.23 may not compare to R 0.04 Capital IQ consensus; revs +11% yr/yr to R 18.492 bin vs. R 24.374 bln Capital IQ consensus

  • Amedisys (AMED) misses by $0.07, misses on revs; lowers FY22 EPS guidance below consensus, revs below consensus

  • Anglo American (NGLOY) reports Q3 production results

  • Anheuser-Busch InBev (BUD) beats by $0.07, reports revs in-line

  • Antero Midstream (AM) reports Q3 (Sep) results, misses on revs

  • Applied Industrial (AIT) beats by $0.34, beats on revs; raises FY23 EPS in-line, revs above consensus

  • Arch Capital (ACGL)beats by $0.10, beats on top line

  • Asbury Automotive (ABG) beats by $0.01, misses on revs

  • ASGN Incorporated (ASGN) beats by $0.01, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • Aspen Aerogels (ASPN) misses on top and bottom lines; sees FY22 outlook below consensus

  • Aspen Tech (AZPN) beats by $0.95, beats on revs; guides FY23 EPS above consensus, revs in-line

  • Avnet (AVT) beats by $0.09, beats on revs; guides Q2 EPS mostly above consensus, revs above consensus

  • AXIS Capital (AXS) misses by $0.04, misses on revs

  • Baxter (BAX) reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs in-line

  • Benchmark Electronics (BHE) beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • BioMarin Pharmaceutical (BMRN) reports Q3 (Sep) results, misses on revs; reaffirms FY22 revs guidance

  • Boot Barn Holdings (BOOT) beats by $0.16, beats on revs, comps of +2.3%; guides Q3 EPS below consensus, revs below consensus, comps of (5%)-(3%); guides FY23 EPS below consensus, revs below consensus, comps of (1%) to +0.5%

  • BorgWarner (BWA) beats by $0.21, beats on revs

  • Brunswick (BC) beats by $0.03, misses on revs; lowers FY22 EPS below consensus, revs below consensus

  • CACI Intl (CACI) beats by $0.11, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Canadian Pacific (CP) misses by $0.03, beats on revs

  • Carrier Global (CARR) beats by $0.05, reports revs in-line; guides FY22 EPS in-line, revs below consensus

  • Caterpillar (CAT) beats by $0.79, beats on revs

  • CBIZ (CBZ) beats by $0.05, beats on revs; raises FY22 guidance

  • Century Communities (CCS) beats by $0.24, beats on revs; lowers FY22 revs, home delivery guidance

  • Check Point Software (CHKP) beats by $0.10, beats on revs

  • Churchill Downs (CHDN) beats by $0.04, misses on revs

  • CNX Resources (CNX) reports Q3 (Sep) results, misses on revs

  • Columbus McKinnon (CMCO) reports EPS in-line, misses on revs; guides Q3 revs in-line

  • Comcast (CMCSA) beats by $0.06, reports revs in-line

  • Comfort Systems (FIX) beats by $0.18, beats on revs

  • Community Health (CYH) misses by $0.50, reports revs in-line

  • CONMED (CNMD) beats by $0.02, misses on revs; guides FY22 EPS in-line, revs in-line

  • Core Labs (CLB) beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Coursera (COUR) beats by $0.04, beats on revs; guides Q4 revs in-line

  • Credit Suisse (CS) reports Q3 results; beats on revs; provides outlook; unveils new strategy

  • Digital Realty Trust (DLR) misses by $0.01, reports revs in-line; reaffirms FY22 FFO guidance, revs guidance

  • Element Solutions (ESI) beats by $0.01, misses on revs; guides FY22 EPS below consensus

  • EMCOR Group (EME) beats by $0.06, beats on revs; guides FY22 EPS in-line, revs above consensus

  • Encompass Health (EHC) beats by $0.03, beats on revs; guides FY22 EPS below consensus, revs below consensus

  • Ensign Group (ENSG) reports EPS in-line, beats on revs; guides FY22EPS in-line, revs above consensus

  • Essex Property (ESS) beats by $0.03; guides FY22FFO in-line

  • Ethan Allen (ETD) beats by $0.32, beats on revs

  • Everest Re (RE) beats by $0.47, beats on revs

  • FirstCash (FCFS) beats by $0.17, reports revs in-line

  • Fiserv (FISV) misses by $0.06, beats on revs; guides FY22EPS mostly above consensus

  • Flex (FLEX) beats by $0.12, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY23EPS above consensus, revs above consensus

  • Ford Motor (F) reports EPS in-line, revs in-line; guides to low end FY22adjusted EBIT prior guidance; increases FY22adjusted FCF guidance; resumes modest share repurchase program

  • FormFactor (FORM) beats by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Fortune Brands Home & Security (FBHS) beats by $0.08, misses on revs; guides FY22EPS below consensus, revs below consensus reflecting a softening market environment

  • Forward Air (FWRD) beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs in-line

  • Frontier Group Holdings (ULCC) beats by $0.03, reports revs in-line increase in RASM compared to 2019

  • FTI Consulting (FCN) beats by $0.11, reports revs in-line; guides FY22EPS in-line, revs in-line

  • Geo Group (GEO) reports FFO in-line, beats on revs; guides Q4 revs in-line; guides FY22FFO below estimate

  • Globe Life (GL)beats by $0.05, misses on revs

  • Goosehead Insurance (GSHD) beats by $0.05, beats on revs; reaffirms FY22revs guidance

  • Graco (GGG) beats by $0.02, beats on revs

  • Greenbrier (GBX) beats by $0.17, beats on revs; guides FY23revs above consensus

  • H&E Equipment (HEES) beats by $0.23, beats on revs

  • Hertz Global (HTZ) reports EPS in-line, misses slightly on revs

  • Honeywell (HON) beats by $0.10, reports revs in-line; guides FY22EPS in-line, revs in-line

  • Impinj (PI) beats by $0.17, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Informatica (INFA) beats by $0.01, misses on revs; guides Q4 revs below consensus

  • Invitation Homes (INVH) misses by $0.01, reports revs in-line; lowers FY22FFO below consensus

  • Janus Henderson Group (JHG) beats by $0.13, beats on revs

  • JBT Corp (JBT) beats by $0.08, reports revs in-line; guides Q4 EPS below consensus; guides FY22EPS below consensus

  • Kimco Realty (KIM) beats by $0.02, beats on revs; guides FY22FFO above consensus

  • KLA Corporation (KLAC) beats by $0.83, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • Lending Club (LC) beats by $0.04, beats on revs; guides Q4 revs below consensus

  • Lennox Int'l (LII) reports EPS in-line, beats on revs; lowers FY22EPS below consensus, raises FY22revs above consensus

  • LKQ (LKQ) beats by $0.01, misses on revs; lowers upper end of FY22EPS guidance range

  • Lloyds Banking (LYG) reports in-line results; beats on revs

  • McDonald's (MCD) beats by $0.10, beats on revs, global comps +9.5%, US comps +6.1%

  • Merck (MRK) beats by $0.14, beats on revs; guides FY22EPS in-line, revs above consensus

  • Meritage (MTH) beats by $0.65, misses on revs

  • Merit Medical (MMSI) beats by $0.11, beats on revs; raises FY22EPS above consensus, revs above consensus

  • Meta Platforms (META) misses by $0.21, beats on revs; guides Q4 revs in-line; lowers high end of FY22expense guidance range, guides for FY23expenses of $96-$101 bln

  • Methanex (MEOH) beats by $0.10, beats on revs; increased dividend 20%

  • Mid-America Aptmt (MAA) beats by $0.08, beats on revs; guides FY22core FFO above consensus

  • Molina Healthcare (MOH) beats by $0.13, beats on revs; guides FY22EPS above consensus

  • MSA Safety (MSA) beats by $0.21, beats on revs

  • Murphy USA (MUSA) beats by $2.27, beats on revs

  • NETGEAR (NTGR) beats by $0.02, beats on revs; guides Q4 revs below consensus

  • NetScout Systems (NTCT) beats by $0.08, beats on revs; reaffirms FY23EPS guidance, revs guidance

  • Oceaneering Intl (OII) beats by $0.09, beats on revs

  • Olin (OLN) beats by $0.36, reports revs in-line; expects Q4 adjusted EBITDA to decline 15-20% sequentially

  • OneMain Holdings (OMF) beats by $0.19

  • Option Care Health (OPCH) beats by $0.01, beats on revs; guides FY22revs in-line

  • O'Reilly Auto (ORLY) beats by $0.67, beats on revs, same store comps +7.6%; guides FY22EPS above consensus, revs in-line, raises FY22comps guidance

  • Overstock.com(OSTK) beats by $0.08, misses on revs

  • Paramount Group (PGRE) reports FFO in-line, beats on revs; guides FY22FFO in-line

  • Patterson-UTI (PTEN) beats by $0.11, beats on revs; doubles quarterly dividend to $0.08/sh, increases share repurchase authorization to $300 mln

  • Pegasystems (PEGA) misses by $0.05, misses on revs

  • Pilgrim's Pride (PPC) beats by $0.31, reports revs in-line

  • Plexus (PLXS) reports Q4 (Sep) results, beats on revs; guides Q1 revs above consensus

  • Precision Drilling (PDS) reports Q3 (Sep) results, beats on revs

  • Raymond James (RJF) beats by $0.08, beats on revs

  • Reliance Steel (RS) beats by $0.29, beats on revs; guides Q4 EPS above consensus

  • Sallie Mae (SLM) misses by $0.19; guides FY22EPS in-line

  • Samsung (SSNLF) reports Q3 sales of KRW 76.78 trillion versus KRW 73.98 trillion last year; net profit of 9.39 trillion versus 12.29 trillion last year

  • SEI Investments (SEIC) beats by $0.09, beats on revs

  • ServiceNow (NOW) beats by $0.11, reports revs in-line

  • Shell plc (SHEL) beats by $0.05; beats on revs; commences buyback

  • Shopify (SHOP) beats by $0.05, beats on revs; sees Q4 adj. operating loss fairly comparable to Q3

  • Simulations Plus (SLP) misses by $0.04, beats on revs; guides FY23EPS below two analyst estimate, revs below consensus

  • Sleep Number (SNBR) beats by $0.16, beats on revs; guides FY22EPS below consensus

  • Sonic Automotive (SAH) misses by $0.24, misses on revs; approved a 12% increase to the Company's quarterly cash dividend, to $0.28 per share

  • Spirit Airlines (SAVE) beats by $0.11, reports revs in-line; expects Q4 unit revs up +15.0-16.5% on 24.5% more capacity compared to 4Q19

  • Stanley Black & Decker (SWK) beats by $0.06, beats on revs; lowers FY22EPS guidance below consensus

  • Stewart Info (STC) misses by $0.41, beats on revs

  • STMicroelectronics (STM) beats by $0.13, beats on revs; guides Q4 revs in-line

  • Takeda Pharma (TAK) beats on top and bottom lines; raises outlook

  • TechnipFMC (FTI) misses by $0.06, reports revs in-line

  • Teck Resources (TECK) beats by CAD0.10, beats on revs

  • Teladoc (TDOC) beats by $0.04, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Teleflex (TFX) beats by $0.16, reports revs in-line; guides FY22EPS in-line, revs in-line

  • Textron (TXT) beats by $0.13, misses on revs; guides FY22EPS in-line

  • The Shyft Group (SHYF) beats by $0.09, misses on revs; guides FY22EPS in-line, revs in-line

  • TRI Pointe Homes (TPH) beats by $0.22, beats on revs; guides for Q4 home deliveries of 1,700-1,900

  • Tronox (TROX) misses by $0.06, reports revs in-line

  • Tyler Tech (TYL) beats by $0.20, reports revs in-line; guides FY22EPS above consensus, revs below consensus

  • UDR (UDR) beats by $0.01, beats on revs; guides Q4 FFO below consensus; guides FY22FFO in-line

  • Ultra Clean Holdings (ULCC) reports EPS in-line, beats on revs; guides Q4 EPS in-line, revs in-line; initiates $150 mln share repurchase program over a three year period

  • Unilever PLC (UL) reports Q3 trading statement; revs above consensus; raises sales outlook

  • United Rentals (URI) beats by $0.21, reports revs in-line; guides FY22revs in-line, raises FY22adjusted EBITDA guidance; announces new $1.25 bln share repurchase program

  • Upwork (UPWK) beats by $0.05, reports revs in-line; guides Q4 EPS below consensus, revs in-line

  • Valmont (VMI) beats by $0.08, beats on revs; raises FY22EPS and revenue guidance

  • V.F. Corp (VFC) reports EPS in-line, revs in-line; guides FY23EPS below consensus

  • West Fraser (WFG) beats by $0.77

  • West Pharm (WST) misses by $0.09, misses on revs; lowers FY22EPS guidance below consensus, revs below consensus

  • WEX (WEX) beats by $0.09, beats on revs; guides Q4 EPS in-line, revs above consensus

  • Willis Towers Watson (WTW) beats by $0.07, misses on revs; maintains 2022 targets and recasts 2024 financial targets

  • Wolfspeed (WOLF) beats by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

  • Xcel Energy (XEL) misses by $0.04, beats on revs; guides FY22EPS in-line; initiates FY23EPS in-line

  • News:

  • Analysts are still bullish on the dollar, according to Bloomberg

  • TikTok pushing into gaming, according to Financial Times

  • The Biden Administration plans to rework plan for Russian oil price cap, according to Bloomberg

  • Amerisafe (AMSF) declares special cash dividend of $4.00/share

  • AppHarvest (APPH) opens its Berea, Ky., 15-acre high-tech indoor salad greens farm featuring a touchless growing system with autonomous harvesting

  • AstraZeneca (AZN) reports Ultomiris showed zero relapses in adults with neuromyelitis optica spectrum disorder (NMOSD) with median treatment duration of 73 weeks

  • Boeing (BA) forecasts China's commercial fleet will more than double in next 20 years

  • Celanese (CE) confirms that is it lifting the force majeure declared on May 11, 2022, for the following Acetyl Chain products in the Western Hemisphere

  • Dorian LPG (LPG) declares irregular cash dividend of $1.00 per share; provides Q2 update

  • Evolution Petroleum (EPM) announced that the Board of Directors has selected Kelly Loyd as President and Chief Executive Officer

  • FREYR Battery (FREY) has announced a new service agreement with ITOCHU Corporation (ITOCY)

  • Genius Sports (GENI) has clinched an expansion of its Official Tracking Data partnership with Football DataCo to capture sub-second and skeletal tracking data across the Premier League

  • GlaxoSmithKline (GSK) provides update on ContRAst phase III programme for otilimab in the treatment of moderate to severe rheumatoid arthritis

  • GlaxoSmithKline (GSK) reports outcome from FDA Advisory Committee meeting on daprodustat for anaemia of CKD

  • Globe Life (GL) Co-CEOs both stepping down; Co appoints 2 new co-CEOs

  • LKQ (LKQ) raises dividend; $1 bln increase to stock repurchase program

  • Merck (MRK) elects Robert M. Davis to serve as chairman of the board, effective Dec. 1

  • Mirum Pharmaceuticals (MIRM) reports positive topline data from its Phase 3 MARCHstudy

  • Parsons (PSN) recently awarded several multi-million-dollar projects to provide fleet electrification and zero emission vehicle design and transit planning services for DoTs in three states

  • Puma Biotechnology (PBYI) Presents Updated Findings from the Phase II SUMMIT Basket Trial of Neratinib in EGFR Exon 18-Mutant NSCLC at the 2022 EORTC/NCI/AACR Symposium

  • Skechers (SKX) Issues Statement on Kanye West Unauthorized Visit

  • Toyota Motor (TM) has told suppliers it will lower production targets to 9.5 mln unites for 2022, according to Reuters

  • Twitter (TWTR): Elon Musk tells Twitter employees that he doesn't plan to eliminate 75% of the jobs, according to Bloomberg

  • ViewRay (VRAY): MIRAGE Phase III Randomized Controlled Trial Demonstrates Superiority of MRIdian MRI-Guidance in Stereotactic Body Radiotherapy (SBRT) for Localized Prostate Cancer

  • WEX's (WEX) Board of Directors authorizes increased share repurchase program

  • M&A:

  • Credit Suisse (CS) is nearing sale of its securitized-products group to Apollo Global Management (APO) and PIMCO, according to the Wall Street Journal

  • Ingersoll-Rand (IR) has entered into agreements to acquire Everest Blowers Private Limited and Everest Blower Systems Private Limited (collectively, 'Everest Group') and Airmax Groupe for a combined all-cash upfront purchase price of ~$86 mln with additional potential consideration based on achievement of Everest financial targets

  • SLB (SLB) has entered into an agreement to acquire Gyrodata Incorporated; financial terms were not disclosed

  • Regal Rexnord (RRX) to acquire Altra Industrial Motion (AIMC) for $62/share; announces upside prelim Q3 results

  • Teck Resources (TECK) divests interest in Fort Hills

  • Twitter (TWTR): Banks have begun sending money for Elon Musk's takeover of Twitter, according to the Wall Street Journal

  • Syndicate

  • Aadi Bioscience (AADI) files ~5.8 mln common stock offering

  • IPOs:

  • Priced to Trade: No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • PI +18.1%, NOW +12.4%, GSHD +9.5%, TDOC +8.8%, COUR +7.5%, ETD +7.4%, BUD +7%, OII +6.9%, PPC+6.2%, UCTT +6%, ALSN +5.7%, MOH +5.3%, ACMR+5.1%, GENI +5%, AMSF +5%, PGRE +5%, FLEX +5%, VMI +5%, MMSI +5%, OMF +4.7%, PLXS +4.7%, AZPN+4.2%, CCS +4.1%, ARES +3.9%, SHEL +3.7%, MEOH+3.3%, BHE +3.2%, PTEN +3.2%, MUSA +3.1%, TPH+2.8%, CLB +2.5%, CYH +2.2%, JXN +2.1%, KLAC+2%, ORLY +1.9%, MIRM +1.8%, WFG +1.7%, AWK+1.6%, NLY +1.6%, ENSG +1.2%, AEM +1.1%, AM+1%

  • Gapping down:

  • SNBR -26.3%, WOLF -23.9%, META -19.7%, ALGN-18.8%, FORM -17.6%, AMED -14.6%, SLP -10.4%, CS -9.8%, TROX -9.4%, STM -6.8%, ACGL -6.2%, LC-5.8%, UPWK -5.1%, BOOT -4.5%, VFC -4.4%, CNMD-4.1%, DLR -3.3%, INVH -3%, GL -2.9%, BMRN-2.9%, APO -2.8%, OSTK -2.7%, AR -2.6%, JBT-2.4%, CHDN -2.2%, F -2.2%, TECK -2.1%, FTI -2%, NTGR -1.7%, GEO -1.7%, ASX -1.5%, INFA -1.2%, LPG -1.2%, SAVE -1%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • AGNC Investment (AGNC) upgraded to Overweight from Equal Weight at Barclays; tgt lowered to $9

  • Annaly Capital Mgmt (NLY) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $19

  • Pinduoduo (PDD) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $70

  • Portland Gen Elec (POR) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $46

  • Downgrades:

  • Ageas SA/NV (AGESY) downgraded to Hold from Buy at Berenberg

  • Amedisys (AMED) downgraded to Mkt Perform from Outperform at Raymond James

  • Arco Platform (ARCE) downgraded to Neutral from Buy at Goldman; tgt lowered to $12

  • Century Communities (CCS) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $44

  • Evercore (EVR) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $109

  • JBT Corp (JBT) downgraded to Mkt Perform from Outperform at William Blair

  • Masco (MAS) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $47

  • Others:

  • Arcellx (ACLX) initiated with a Buy at Needham; tgt $31

  • IDEAYA Biosciences (IDYA) initiated with a Buy at Citigroup; tgt $26

  • JD.com(JD) initiated with a Buy at CMB International; tgt $78.5

  • Mercury (MRCY) initiated with an Outperform at Raymond James; tgt $55

  • Mobileye Global (MBLY) initiated with a Hold at Spin-Off Research; tgt $25

Upcoming Events:

  • Econ Data:

  • 08:30 ET: GDP-Adv.for Q3 (Briefing.comConsensus 2.3%; Prior -0.6%)

  • 08:30 ET: Chain Deflator-Adv. for Q3 (Briefing.comConsensus 5.3%; Prior 9.0%)

  • 08:30 ET: Initial Claims for Oct. 22 (Briefing.comConsensus 220K; Prior 214K)

  • 08:30 ET: Continuing Claims for Oct. 15 (Briefing.comConsensus NA; Prior 1385K)

  • 08:30 ET: Durable Orders for Sep (Briefing.comConsensus 0.6%: Prior -0.2%)

  • 08:30 ET: Durable Orders Ex-Transportation for Sep (Briefing.comConsensus 0.2%; Prior 0.2%)

  • 10:30 ET: EIA Natural Gas Inventories for Oct. 22 (Briefing.comConsensus NA; Prior +111 bcf)

  • 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 -0.3%, Hang Seng +0.7%, Shanghai Composite -0.6%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Press reports suggested that Japan is planning JPY29 trln in stimulus spending, up from the previous forecast for spending of JPY25.10 trln. The stimulus package is expected to be approved by Japan's cabinet tomorrow. The Bank of Korea will temporarily broaden eligible loan collateral to improve liquidity among banks. Smartphone shipments in China were reportedly down 11% yr/yr in Q3.

  • In economic data:

  • China's September Industrial Profit -2.3% YTD (last -2.1%). September FDI 15.6% (last 16.4%)

  • South Korea's Q3 GDP 0.3% qtr/qtr (expected 0.1%; last 0.7%); 3.1% yr/yr (expected 2.8%; last 2.9%)

  • Australia's Q3 Import Price Index 3.0% qtr/qtr (last 4.3%) and Export Price Index -3.6% qtr/qtr (last 10.1%)

---Equity Markets---

  • Japan's Nikkei: -0.3%

  • Hong Kong's Hang Seng: +0.7%

  • China's Shanghai Composite: -0.6%

  • India's Sensex: +0.4%

  • South Korea's Kospi: +1.7%

  • Australia's ASX All Ordinaries: +0.5%

---FX---

  • USD/JPY: UNCH at 146.38

  • USD/CNH: +0.8% to 7.2509

  • USD/INR: +0.7% to 82.45

Europe: DAX -0.9%, FTSE +0.2%, CAC -1.0%

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.2%) outperforms. British Prime Minister Sunak is reportedly reconsidering plans for tax hikes and spending cuts. The European Central Bank is expected to announce a 75-bps rate hike at 8:15 ET.  Shell reported strong earnings, raised its dividend, and announced a buyback. Credit Suisse reported a CHF4 bln loss and announced that its workforce will be reduced by 9,000 by the end of 2025.

  • In economic data:

  • Germany's November GfK Consumer Climate -41.9, as expected (last -42.8)

  • U.K.'s October CBI Distributive Trades Survey 18 (last -20)

  • Italy's August Industrial Sales 3.6% m/m (last -0.2%); 23.1% yr/yr (last 16.2%). October Business Confidence 100.4 (expected 100.0; last 101.2) and Consumer Confidence 90.1 (expected 93.8; last 94.8)

  • Spain's Q3 Unemployment Rate 12.67% (expected 13.00%; last 12.48%)

---Equity Markets---

  • STOXX Europe 600: -0.7%

  • Germany's DAX: -0.9%

  • U.K.'s FTSE 100: +0.2%

  • France's CAC 40: -1.0%

  • Italy's FTSE MIB: -0.6%

  • Spain's IBEX 35: -0.4%

---FX---

  • EUR/USD: -0.3% to 1.0047

  • GBP/USD: -0.3% to 1.1584

  • USD/CHF: +0.4% to 0.9897



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