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27/12/23 Briefing

Writer's picture: Simon Charles HooperSimon Charles Hooper

The S&P 500 futures are up one point and are trading roughly in line with fair value, the Nasdaq 100 futures are up seven points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 25 points and are trading 0.1% below fair value.

Stock futures indicate a flattish open without clear directional drivers this morning. Participation should be light again today, and throughout the rest of the week/year. 

The market continues to weigh geopolitical worries after Israel reportedly pledged to continue fighting until Hamas is defeated. Also, Houthi rebels attacked a MSC United VIII container ship on Tuesday, according to Bloomberg, but shipping giant Maersk said it was resuming operations in the Red Sea after its recent pause.

The 2-yr note yield is down five basis points from yesterday at 4.30%. The 10-yr note yield is down two basis points to 3.87%.

In corporate news:

  • Iovance Biotherapeutics (IOVA 5.97, -2.92, -32.9%): announces clinical program update for LN-145 in non-small cell lung cancer; The FDA placed a clinical hold on the IOV-LUN-202 trial on December 22, 2023

  • Amazon (AMZN 153.50, +0.09, +0.1%): receives FDA letter regarding potentially harmful active pharmaceutical ingredients

  • Apple (AAPL 192.95, -0.10, -0.1%): Jony Ive & Sam Altman to work on AI devices for Apple (AAPL), according to Bloomberg

  • Coherus (CHRS 2.91, +0.73, +33.5%): announces FDA approval of UDENYCA ONBODY, a novel and proprietary state-of-the-art delivery system for pegfilgrastim-cbqv

  • Life Time (LTH 15.10, -0.26, -1.7%): CFO Robert Houghton to resign, effective Dec 31

  • Tesla (TSLA 257.55, +0.94, +0.4%): aiming to introduce revamped Model Y from its plant in Shanghai, according to Bloomberg

  • T-Mobile US (TMUS 156.84, +0.01, +0.01%): Softbank (SFTBY) announces acquisition of 48.8 million shares of TMUS stock (Equivalent to $7.6 Billion) for no additional consideration upon satisfaction of contingent consideration condition

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Wednesday on a higher note. Japan's Nikkei: +1.1%, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: +0.5%, India's Sensex: +1.0%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +0.9%.

  • In economic data:

  • China's November Industrial Profit -4.4% YTD (last -7.8%)

  • Japan's November Housing Starts -8.5% yr/yr (expected -4.3%; last -6.3%) and Construction Orders 33.6% yr/yr (last 4.2%)

  • South Korea's December Consumer Confidence 99.5 (last 97.2)

  • In news:

  • The Bank of Japan's December Summary of Opinions again pushed back against speculation about an imminent exit from negative interest rate policy.

  • Japan's Prime Minister Kishida said that he will push hard for higher yr/yr pay rises in 2024.

  • Japanese regulators are expected to take aim at app store monopolies held by Alphabet and Apple.

  • Mining names outperformed in Australia as the price of iron ore reached a level last seen in mid-2022.

  • Major European indices hold modest gains. STOXX Europe 600: +0.3%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.

  • In economic data:

  • Switzerland's December ZEW Expectations -23.7 (last -29.6)

  • In news:

  • Shipping giant Maersk resumed operations in the Red Sea after a recent pause while Hapag-Lloyd will continue using a longer shipping route for at least a few more days.

  • Offshore driller Seadrill has been boosted by news of a new $1.1 bln contract with Petrobras.

  • Miner Anglo American is reportedly looking to sell a stake in a $9 bln British fertilizer mine.

 

U.S. equity futures:

  • S&P 500 Futures +1 @ 4,826

  • DJIA Futures: -25 @ 37,869

  • Nasdaq 100 Futures: +7 @ 17,090

Overseas:

  • Europe: DAX +0.2%, FTSE +0.5%, CAC +0.1%

  • Asia: Nikkei +1.1%, Hang Seng +1.7%, Shanghai Composite +0.5%

Commodities:

  • Crude Oil -0.43 @ 75.14

  • Nat Gas +0.097 @ 2.647

  • Gold +11.60 @ 2081.40

  • Silver -0.011 @ 24.385

  • Copper +0.019 @ 3.9210

Earnings/Guidance:

  • There is no earnings news of note

News:

  • Israel says war in Gaza will not end soon and pledged to complete its mission of destroying Hamas, according to New York Times

  • US purchased 3 million barrels of oil for Strategic Petroleum Reserve, according to Reuters

  • Houthi rebels attacked MSC United VIII container ship, according to Bloomberg

  • Amazon

  • Apple (

  • Bit Digital (

  • Brookdale Senior Living

  • Cytokinetics (

  • Iovance Biotherapeutics (

  • Life Time (

  • NIO (

  • Plug Power (

  • Tesla (

  • T-Mobile US (

  • Toyota Motor (

  • YPF Soc. Anonima (

  • Zevra Therapeutics (ZVRA) announces resubmission of arimoclomol new drug application to the FDA

M&A:

  • HollySys (

  • LianBio (

  • Liberty Latin America (

  • Silvercorp Metals (

Syndicate:

  • Azul S.A. (

  • Global Mofy Metaverse Limited (

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up: CYTK +42.2%, CHRS +35.3%, BTBT +7.1%, FUSN +5.3%, ZVRA +1.6%, YPF +1.1%

  • Gapping down: IOVA -27.0%, LTH -2.3%, LILA -1.8%, LIAN -1.3%, HOLI -1.3%, AZUL -1.2%, SVM -1.1%, PLUG -1.1%

Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

  • Fusion Pharmaceuticals (FUSN) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $15

  • Downgrades:

  • There are no downgrades of note

  • Others:

  • Coherus BioSciences (CHRS) reiterated with a Buy at H.C. Wainwright

  • PMV Pharmaceuticals (PMVP) initiated with a Buy at Ladenburg Thalmann; tgt $7

Econ Data:

  • There is no economic data of note today

Earnings:

  • Monday (Dec 25)

  • Markets closed for Christmas Day

  • Tuesday (Dec 26)

  • Morning: None

  • Afternoon:  None

  • Wednesday (Dec 27)

  • Morning:  None

  • Afternoon: None

  • Thursday (Dec 28)

  • Morning: None

  • Afternoon: None

  • Friday (Dec 29)

  • Morning: None

  • Afternoon: None

 

Asia & Europe detail:

Asia: Nikkei +1.1%, Hang Seng +1.7%, Shanghai Composite +0.5%

Equity indices in the Asia-Pacific region ended Wednesday on a higher note. The Bank of Japan's December Summary of Opinions again pushed back against speculation about an imminent exit from negative interest rate policy. Meanwhile, Japan's Prime Minister Kishida said that he will push hard for higher yr/yr pay rises in 2024. Separately, Japanese regulators are expected to take aim at app store monopolies held by Alphabet and Apple. Mining names outperformed in Australia as the price of iron ore reached a level last seen in mid-2022.

  • In economic data:

  • China's November Industrial Profit -4.4% YTD (last -7.8%)

  • Japan's November Housing Starts -8.5% yr/yr (expected -4.3%; last -6.3%) and Construction Orders 33.6% yr/yr (last 4.2%)

  • South Korea's December Consumer Confidence 99.5 (last 97.2)

---Equity Markets---

  • Japan's Nikkei: +1.1%

  • Hong Kong's Hang Seng: +1.7%

  • China's Shanghai Composite: +0.5%

  • India's Sensex: +1.0%

  • South Korea's Kospi: +0.4%

  • Australia's ASX All Ordinaries: +0.9%

---FX---

  • USD/JPY: +0.2% to 142.59

  • USD/CNH: +0.2% to 7.1512

  • USD/INR: +0.2% to 83.35

 

Europe: DAX +0.2%, FTSE +0.5%, CAC +0.1%

Major European indices hold modest gains. Shipping giant Maersk resumed operations in the Red Sea after a recent pause while Hapag-Lloyd will continue using a longer shipping route for at least a few more days. Offshore driller Seadrill has been boosted by news of a new $1.1 bln contract with Petrobras. Miner Anglo American is reportedly looking to sell a stake in a $9 bln British fertilizer mine.

  • In economic data:

  • Switzerland's December ZEW Expectations -23.7 (last -29.6)

---Equity Markets---

  • STOXX Europe 600: +0.3%

  • Germany's DAX: +0.2%

  • U.K.'s FTSE 100: +0.5%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: +0.3%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: +0.2% to 1.1059

  • GBP/USD: +0.2% to 1.2742

  • USD/CHF: -0.1% to 0.8530

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