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28/10/21 Briefing

The S&P 500 futures trade 23 points, or 0.5%, above fair value following yesterday's decline, which was rooted in growth concerns, profit-taking interest, and fatigue.

The tone has shifted to a buy-the-dip mindset with some earnings-related help from the likes of Caterpillar (CAT 202.00, +5.87, +3.0%), Merck (MRK 83.00, +1.46, +1.8%), Comcast (CMCSA 54.00, +1.56, +3.0%), and Ford Motor (F 16.98, +1.47, +9.5%).

In addition, media reports indicate that President Biden is expected to announce a framework for the budget reconciliation bill today and meet with Progressives to persuade them to vote for the bipartisan infrastructure bill.

Things could change, though, with the release of the advance estimate for Q3 GDP (Briefing.com consensus 2.4%) at 8:30 a.m. ET. The weekly Initial Claims (Briefing.com consensus 291,000) and Continuing Claims report will accompany the GDP report, followed by Pending Home Sales for September (Briefing.com consensus 1.0%) at 10:00 a.m. ET.

Strikingly, the positive disposition is coinciding with continued upwards momentum in the 2-yr yield, which is up another seven basis points to 0.55% on increasing expectations for the Fed to hike rates sooner than expected. The 10-yr yield is up two basis points to 1.55%. The U.S. Dollar Index is flat at 93.82. WTI crude is down 1.7% to $81.22/bbl.

On a related note, the Bank of Canada said it's ending its quantitative easing program and moved up its forecast for possible rate hikes, according to The Wall Street Journal. The European Central Bank (ECB) and the Bank of Japan both left interest rates unchanged, as expected. The ECB also left its asset purchase program intact.

In U.S. Corporate news:

  • Caterpillar (CAT 202.00, +5.87): +3.0% after beating EPS estimates.

  • Merck (MRK 83.00, +1.46): +1.8% after beating top and bottom-line estimates and raising its FY21 guidance, which doesn't include the impact of the potential launch of its COVID-19 antiviral drug candidate, molnupiravir.

  • Comcast (CMCSA 54.00, +1.56): +3.0% after beating top and bottom-line estimates.

  • Ford Motor (F 16.98, +1.47): +9.5% after beating top and bottom-line estimates and increasing guidance for FY21 adjusted EBIT to $10.5-11.5 bln.

  • Twilio (TWLO 299.01, -46.65): -13.5% despite beating top and bottom-line estimates and guiding Q4 revenue above consensus. Q4 EPS guidance was below consensus.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a lower note. Japan's Nikkei: -1.0% Hong Kong's Hang Seng: -0.3% China's Shanghai Composite: -1.2% India's Sensex: -1.9% South Korea's Kospi: -0.5% Australia's ASX All Ordinaries: -0.2%.

  • In economic data:

  • Japan's September Retail Sales -0.6% yr/yr (expected -2.3%; last -3.2%)

  • Australia's Q3 Import Price Index 5.4% qtr/qtr (last 1.9%) and Export Price Index 6.2% qtr/qtr (last 13.2%)


  • In news:

  • The Bank of Japan left its interest on excess reserves at -0.10%, in-line with expectations. The central bank lowered its domestic growth forecast for 2021 to 3.4% from 3.8% and cut its inflation forecast to 0% from 0.6%.

  • Japan's Prime Minister Kishida is expected to act in response to rising oil prices.

  • Reserve Bank of Australia Deputy Governor Debelle said that higher inflation is the aim of monetary policy. There are growing expectations that the RBA will alter its yield curve control policy at next week's meeting.



  • Major European indices trade in mixed fashion. STOXX Europe 600: +0.1% Germany's DAX: -0.1% U.K.'s FTSE 100: -0.2% France's CAC 40: +0.6% Italy's FTSE MIB: +0.5% Spain's IBEX 35: +0.3%.

  • In economic data:

  • Eurozone's October Business and Consumer Survey 118.6 (expected 116.9; last 117.8)

  • Germany's October Unemployment Change -39,000 (expected -20,000; last -30,000) and Unemployment Rate 5.4%, as expected (last 5.5%)

  • Italy's October Business Confidence 114.9 (expected 112.2; last 113.2) and Consumer Confidence 118.4 (expected 118.5; last 119.6) September PPI 1.6% m/m (last 0.5%); 13.3% yr/yr (last 11.6%)

  • Spain's October CPI 2.0% m/m (last 0.8%); 5.5% yr/yr (last 4.0%)


  • In news:

  • The U.K. warned that it will retaliate if France follows through on its threat to slow border checks due to the ongoing fishing dispute.

  • Volkswagen reported above-consensus results and lowered its forecast for 2021 deliveries.

  • Germany's Association of Chambers of Trade and Industry lowered its domestic growth forecast for 2021 to 2.3% from 3.0% while the CPI forecast was increased to 3.0% from 2.2%.





U.S. equity futures:

  • S&P 500 Futures: +14 @ 4,566

  • DJIA Futures: +66 @ 35,557

  • Nasdaq 100 Futures: +91 @ 15,689

Overseas:

  • Europe: DAX -0.1%, FTSE -0.2%, CAC +0.6%

  • Asia: Nikkei -1.0%, Hang Seng -0.3%, Shanghai Composite -1.2%

Commodities:

  • Crude Oil -1.54 @ 81.12

  • Nat Gas -0.086 @ 6.112

  • Gold +5.15 @ 1803.95

  • Silver -0.003 @ 24.188

  • Copper +0.0515 @ 4.440

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • 1-800-FLOWERS (FLWS) beats by $0.06, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Airbus (EADSY) reports nine-month results; 2021 guidance unchanged for commercial aircraft deliveries

  • Aflac (AFL) beats by $0.21, misses on revs

  • AGCO Corp (AGCO) beats by $0.56, misses on revs; lowers FY21 EPS, revs guidance

  • Agnico-Eagle Mines (AEM) reports EPS in-line, revs in-line; Board declares dividend

  • Align Tech (ALGN) beats by $0.28, beats on revs; guides FY21 revs in-line

  • Allegheny Tech (ATI) misses by $0.10, beats on revs

  • Allegiant Travel (ALGT) misses by $0.09, beats on revs

  • Anheuser-Busch InBev (BUD) beats by $0.28, beats on revs; provides FY21 EBITDA guidance

  • Antero Midstream (AM) beats by $0.02, beats on revs

  • Antero Resources (AR) misses by $0.14, natural gas sales up 103% yr/yr, increases guidance for realized natural gas price to a premium to NYMEX

  • A.O. Smith (AOS) beats by $0.14, beats on revs; guides FY21 EPS above consensus, revs above consensus

  • ASGN Incorporated (ASGN) beats by $0.11, beats on revs; guides Q4 EPS in-line, revs in-line

  • Aspen Tech (AZPN) beats by $0.09, beats on revs; guides FY22 EPS in-line, revs in-line

  • AvalonBay (AVB) beats by $0.05; guides Q4 FFO above consensus

  • Baxter (BAX) beats by $0.08, reports revs in-line; guides Q4 EPS in-line; raises FY21 EPS above consensus, revs in-line

  • BioMarin Pharm (BMRN) beats by $0.09, misses on revs; guides Q4 revs in-line

  • Boot Barn Holdings (BOOT) beats by $0.31, beats on revs, same store sales up 53.6%, announces appointment of new CFO

  • Brunswick (BC) beats by $0.12, reports revs in-line; guides FY21 EPS, revs above consensus

  • CACI Intl (CACI) beats by $0.23, reports revs in-line; reiterates FY22 revs in-line

  • Carrier Global (CARR) beats by $0.05, misses on revs; raises FY21 EPS guidance, still inline, raises organic sales growth guidance

  • Caterpillar (CAT) beats by $0.45, reports revs in-line

  • CBIZ (CBZ) beats by $0.12, beats on revs; guides FY21 EPS above consensus, revs above consensus

  • CBRE Group (CBRE) beats by $0.20, beats on revs

  • Century Communities (CCS) beats by $0.57, beats on revs; guides Q4 revs below consensus

  • ChampionX (CHX) beats by $0.09, beats on revs

  • Churchill Downs (CHDN) beats by $0.12, misses on revs

  • Cincinnati Fincl (CINF) beats by $0.35, beats on revs

  • CNOOC Ltd (CEO) provides Q3 update; production rose 9.9% yr/yr

  • Coeur d'Alene Mines (CDE) misses by $0.08, misses on revs; also selling its La Preciosa project to Avino (ASM), expected to close in Q1 2022

  • Cognizant Tech (CTSH) beats by $0.01, reports revs in-line; guides Q4 revs in-line; guides FY21 EPS in-line, revs in-line

  • Columbus McKinnon (CMCO) beats by $0.02, misses on revs; guides Q3 revs below consensus

  • Comcast (CMCSA) beats by $0.12, beats on revs

  • Comfort Systems (FIX) beats by $0.26, beats on revs

  • Core Labs (CLB) misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • CyrusOne (CONE) beats by $0.03, beats on revs; guides FY21 FFO above consensus, revs above consensus

  • eBay (EBAY) beats by $0.02, beats on revs, GMV down 10%; guides Q4 EPS in-line, revs below consensus

  • Encompass Health (EHC) misses by $0.03, misses on revs; guides FY21 EPS below consensus, revs below consensus

  • Ensign Group (ENSG) beats by $0.01, reports revs in-line; guides FY21 EPS in-line, reaffirms FY21 revs guidance

  • Ethan Allen (ETD) beats by $0.15, reports revs in-line

  • EVERTEC (EVTC) reports EPS in-line, beats on revs; raises FY21 guidance

  • Extra Space Storage (EXR) beats by $0.15, beats on revs; guides FY21 FFO above consensus

  • FARO Techs (FARO) misses by $0.05, misses on revs

  • Flex (FLEX) beats by $0.08, misses on revs; guides Q3 EPS, revs below consensus; reaffirms FY22 EPS guidance, guides FY22 revs below consensus

  • Flowserve (FLS) misses by $0.11, misses on revs; guides FY21 EPS, revs below consensus

  • Ford Motor (F) beats by $0.24, beats on revs; increases guidance for FY21 adjusted EBIT to $10.5-11.5 bln; semiconductor availability remains a challenge, but markedly improved from Q2

  • FormFactor (FORM) beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Forward Air (FWRD) beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line

  • FTI Consulting (FCN) beats by $0.54, beats on revs; guides FY21 EPS in-line, revs above consensus

  • Gentherm (THRM) misses by $0.14, misses on revs; guides FY21 revs below consensus

  • Goosehead Insurance (GSHD) beats by $0.11, beats on revs; narrows FY21 revs in-line

  • Hershey Foods (HSY) beats by $0.10, beats on revs; guides FY21 EPS above consensus, revs in-line

  • IMAX (IMAX) beats by $0.05, reports revs in-line

  • Impinj (PI) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Ingevity (NGVT) beats by $0.08, beats on revs; guides FY21 revs in-line

  • IntercontinentalExchange (ICE) beats by $0.07, beats on revs

  • Invitation Homes (INVH) beats by $0.02, beats on revs; guides FY21 FFO above consensus

  • iRobot (IRBT) beats by $0.97, beats on revs; guides FY21 revs in-line

  • JBT Corp (JBT) misses by $0.16, misses on revs; lowers FY21 guidance

  • KBR (KBR) beats by $0.06, beats on revs; raises FY21 EPS above consensus, revs above consensus

  • Keurig Dr Pepper (KDP) reports EPS in-line, beats on revs; reaffirms FY21 EPS guidance

  • Kilroy Realty (KRC) beats by $0.05, beats on revs; guides FY21 FFO in-line

  • KLA Corporation (KLAC) beats by $0.14, beats on revs; guides Q2 EPS in-line, revs in-line

  • Knowles (KN) beats by $0.05, reports revs in-line; guides Q4 EPS above consensus, revs below consensus

  • Kraton (KRA) beats by $0.19, beats on revs, reaffirms FY21 adjusted EBITDA guidance of $280-$300 mln

  • Lending Club (LC) reports Q3 (Sep) results, beats on revs

  • Linde plc (LIN) beats by $0.07, beats on revs; guides FY21 EPS above consensus

  • LKQ (LKQ) beats by $0.16, reports revs in-line; guides FY21 EPS above consensus

  • Lloyds Banking (LYG) reports Q3 results; raises outlook

  • MaxLinear (MXL) beats by $0.08, beats on revs; guides Q4 revs above consensus

  • MDC Holdings (MDC) misses by $0.02, misses on revs

  • Meritage (MTH) beats by $0.80, beats on revs; guides FY21 EPS above consensus

  • Merck (MRK) beats by $0.20, beats on revs; raises FY21 guidance; guidance does not include the impact of the potential launch of Merck's COVID-19 antiviral drug candidate, molnupiravir

  • MKS Instruments (MKSI) beats by $0.02, beats on revs; guides Q4 EPS in-line, mid-point of revs guidance above consensus

  • Moelis (MC) beats by $0.42, beats on revs

  • Molina Healthcare (MOH) beats by $0.03, beats on revs; reaffirms FY21 EPS guidance, guides FY21 revs above consensus

  • Molson Coors Brewing (TAP) beats by $0.24, misses on revs; reaffirms FY21 guidance

  • MSA Safety (MSA) misses by $0.09, reports revs in-line

  • Murphy USA (MUSA) beats by $0.54, beats on revs

  • NETGEAR (NTGR) beats by $0.09, misses on revs; guides Q4 revs below consensus

  • Nielsen (NLSN) beats by $0.09, beats on revs; guides FY21 EPS above consensus, revs in-line

  • Noodles & Co (NDLS) beats by $0.03, reports revs in-line

  • Nokia (NOK) beats by 0.01, reports revs in-line; guides FY21 revs in-line

  • Northrop Grumman (NOC) beats by $0.65, misses on revs; raises FY21 EPS above consensus, revs in-line

  • nVent Electric (NVT) beats by $0.02, reports revs in-line; guides FY21 EPS in-line, revs in-line

  • Oceaneering Intl (OII) misses by $0.06, misses on revs; guides Q4 revs above consensus

  • O'Reilly Auto (ORLY) beats by $0.91, beats on revs, comps +6.7%; guides FY21 EPS above consensus, revs above consensus, raises FY21 comp guidance

  • Overstock.com (OSTK) beats by $0.32, reports revs in-line

  • Paramount Group (PGRE) beats by $0.02, misses on revs; raises FY21 guidance

  • Pegasystems (PEGA) misses by $0.14, misses on revs

  • Pilgrim's Pride (PPC) misses by $0.09, beats on revs

  • Plexus (PLXS) misses by $0.07, misses on revs; guides Q1 revs below consensus

  • PPD (PPD) beats by $0.05, beats on revs, not providing guidance due to proposed merger with Thermo Fisher Scientific

  • Raymond James (RJF) beats by $0.35, beats on revs

  • Reliance Steel (RS) beats by $0.22, beats on revs; guides Q4 EPS above consensus

  • Ribbon Communications (RBBN) misses by $0.01, misses on revs; guides Q4 EPS and revs below consensus

  • Royal Dutch Shell (RDS.A) misses by $0.19, misses on revs

  • Saia (SAIA) beats by $0.51, beats on revs

  • Samsung (SSNLF) reports Q3 results; provides outlook

  • Sanofi (SNY) beats by 0.19, beats on revs; raises EPS guidance

  • Service Corp (SCI) beats by $0.56, beats on revs; guides Q4 EPS above consensus; raises FY21 EPS above consensus

  • ServiceNow (NOW) beats by $0.16, beats on revs

  • Shopify (SHOP) reports Q3 (Sep) results, misses on revs

  • Silicon Motion (SIMO) beats by $0.11, beats on revs; guides Q4 revs in-line

  • Sleep Number (SNBR) beats by $0.78, beats on revs; guides FY21 EPS above consensus

  • Sonic Automotive (SAH) beats by $0.04, reports revs in-line

  • Sony (SONY) misses by JPY1.52, beats on revs; raises FY22 revs above consensus

  • Spirit Airlines (SAVE) beats by $0.23, reports revs in-line, ASMs up 54.4% yr/yr

  • Stanley Black & Decker (SWK) beats by $0.30, reports revs in-line; lowers FY21 EPS below consensus

  • Stellantis (STLA) provides Q3 trading update; revs slightly below consensus; confirms FY21 outlook

  • STMicroelectronics (STM) misses by $0.01, reports revs in-line; guides Q4 revs above consensus

  • Suncor Energy (SU) reports Q3 results; increases the dividend by 150%, approves an increase to its share repurchase program

  • Sunnova Energy (NOVA) reports Q3 (Sep) results; sales +37% yr/yr

  • Takeda Pharma (TAK) misses on top and bottom lines; sees FY EPS above consensus

  • Teladoc (TDOC) beats by $0.09, reports revs in-line; guides Q4 EPS in-line, revs in-line

  • Tempur Sealy Int'l (TPX) beats by $0.03, beats on revs; raises FY21 EPS guidance, increases share repurchase authorization

  • Tronox (TROX) beats by $0.09, misses on revs

  • TTM Tech (TTMI) reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs mostly below consensus

  • Twilio (TWLO) beats by $0.15, beats on revs; guides Q4 EPS below consensus, revs above consensus

  • Tyler Tech (TYL) beats by $0.24, beats on revs; raises FY21 EPS, revs above consensus

  • Ultra Clean Holdings (UCTT) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • United Rentals (URI) misses by $0.23, reports revs in-line; guides FY21 revs above consensus

  • Upwork (UPWK) beats by $0.02, beats on revs; guides Q4 EPS below consensus, revs above consensus

  • VICI Properties (VICI) reports FFO in-line, revs in-line; guides FY21 FFO below consensus

  • Visteon (VC) beats by $0.03, misses on revs; guides FY21 revs below consensus

  • Volkswagen AG (VWAGY) reports Q3 results; revs down 4%; confirms FY21 outlook

  • Waste Connections (WCN) beats by $0.05, beats on revs; guides FY21 revs above consensus

  • West Pharm (WST) beats by $0.26, beats on revs; guides FY21 EPS above consensus

  • WEX (WEX) beats by $0.17, reports revs in-line; guides Q4 EPS above consensus, revs in-line; guides FY21 EPS above consensus, revs in-line; announces management changes

  • Willis Towers Watson (WLTW) beats by $0.15, misses on revs

  • Wolfspeed (WOLF) beats by $0.03, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • Wyndham Hotels & Resorts (WH) beats by $0.25, reports revs in-line; raises FY21 EPS outlook

  • Xcel Energy (XEL) misses by $0.04, beats on revs; narrows FY21 EPS guidance; guides FY22 EPS in-line

  • Xilinx (XLNX) beats by $0.16, beats on revs

  • Yum! Brands (YUM) beats by $0.14, reports revs in-line

  • Yum China (YUMC) misses by $0.06, beats on revs


  • General News:

  • Democrats considering 3% surtax on incomes over $10 million instead of $5 million which was discussed previously. This will help pay for the $1.75 trillion bill. Paid family and medical leave is expected to be removed from the bill, according to the Wall Street Journal

  • President Biden is expected to announce framework agreement for budget reconciliation bill today. All 50 Senate Democrats are expected to support it, according to the Washington Post

  • President Biden will meet with House Democrats today to try to convince House progressives to vote for bipartisan infrastructure bill, according to NBC News

  • Democrats are discussing alternative Medicaid expansion plan in reconciliation bill where private insurance will be subsidized in states that did not expand Medicaid, according to CNN

  • China tested a hypersonic missile which is designed to avoid US nuclear defenses, according to New York Times

  • China warns that unlicensed online brokerages could be breaking the law, according to Reuters

  • ECB leaves rates unchanged

  • Wealth tax on unrealized capital gains of people with $1 bln in assets has been eliminated from budget reconciliation bill, according to Bloomberg

  • White House preparing more executive orders on climate change, according to CNN

  • NYC public employee vaccination mandate will take effect after judicial ruling, according to The Hill

  • Bitcoin: CFTC chief wants to police crypto market, according to BusinessInsider.com

  • Treasury Secretary Janet Yellen releases trip plan for G-20 and Cop26 climate change summit

  • 3D Systems (DDD) announces expansion of bioprinting program with United Therapeutics (UTHR)

  • Afya (AFYA) approves new share repurchase program

  • Alnylam Pharma (ALNY) reports top-line 18-month results from HELIOS-A Phase 3 study of vutrisiran

  • Babcock & Wilcox Enterprises (BW) announces that its B&W Environmental segment has been awarded a contract for ~$30 mln to design and supply a full suite of environmental technologies for a U.S. industrial facility

  • Becton Dickinson (BDX) collaborates with U.S. government on development of COVID-19 combination diagnostic tests

  • CenterPoint (CNP) receives approval for 400 megawatts of renewable energy serving southwestern Indiana

  • Corvus Pharmaceuticals (CRVS) announces partner Angel Pharmaceuticals received IND approval for Phase 1/1b clinical trial of ITK inhibitor CPI-818 in China

  • Edgewise Therapeutics (EWTX) announces "positive" topline results from the EDG-5506 Phase 1 multiple ascending dose study in healthy volunteers and doses first becker muscular dystrophy patients

  • EVERTEC (EVTC) announces that the Company was selected as the issuer processor of a new payment product for Caja Popular Mexicana's affiliate members

  • Fresh Del Monte (FDP) announces to customers it is raising prices on bananas, pineapples and fresh-cut fruit effective November 1, 2021

  • GlaxoSmithKline (GSK) and Pfizer's ViiV Healthcare presents interim data showing for Vocabria and Rekambys

  • Hertz (HTZZ) will partner with Uber (UBER) to offer Tesla (TSLA) car rentals, according to the Wall Street Journal

  • ICF International (ICFI): U.S. Department of Justice awards ICF $20 mln technical assistance contract

  • Inspired Entertainment (INSE) signs multi-year contract with the MLB Players Alumni Association

  • Lion Electric (LEV) receives purchase order for 39 electric vehicles from Groupe Autocar Jeannois

  • LKQ (LKQ) initiates quarterly dividend of $0.25 per share

  • Orion Engineered Carbons (OEC) announces departure of CFO Lorin Crenshaw

  • Pfizer (PFE) and BioNTech SE (BNTX) announce that the U.S. government has purchased 50 mln more doses of the companies' COVID-19 vaccine

  • QuantumScape (QS) announces release of third-party test results for solid-state lithium-metal battery cells

  • Starbucks (SBUX) Announces significant investment in wage to recognize and reward tenured partners while also increasing pay floor; U.S. hourly partners will average nearly $17/ hr. with new range of $15-$23 for baristas in Summer 2022

  • Sun Country Airlines (SNCY) announces new five-year charter contract with Major League Soccer


  • M&A:

  • 3D Systems (DDD) announces acquisition of Volumetric Biotechnologies for total purchase price of up to $400 mln

  • Eastman Chemical (EMN) divests its Adhesives Resins Business for $1 bln

  • FirstCash (FCFS) has entered into a definitive agreement to acquire American First Finance

  • Ingersoll-Rand (IR) has entered into an agreement to acquire Air Dimensions Inc. for an all-cash purchase of $70.5 mln

  • Mimecast (MIME) mulling options including potential sale, according to

  • Porch Group (PRCH) announces the acquisition of Floify

  • Scientific Games (SGMS) divests Lottery Business to Brookfield Business Partners (BBU) for $5.8 bln


  • Syndicate:

  • KKR Real Estate Finance Trust (KREF) prices offering of 5 mln shares of common stock for gross proceeds of $110.0 mln

  • Metropolitan Bank (MCB) files mixed securities shelf offering

  • Osmotica Pharmaceuticals (OSMT) files for 6,148,832 share common stock offering by selling shareholder

  • PHX Minerals (PHX) files for 2,349,207 share common stock offering by selling shareholder

  • Repare Therapeutics (RPTX) prices offering of 4 mln shares of common stock at $22.00 per share

  • Vintage Wine Estates (VWE) files for 10 mln share common stock offering by selling shareholders


  • IPOs:

  • Expected to Price:

  • Candela Medical (Nasdaq: CDLA): The provider of advanced medical device solutions for a broad range of aesthetic applications is expected to price its 14.7 M share IPO between $16-$18.

  • Ensemble Health Partners (NYSE: ENSB): The provider of technology-enabled revenue cycle management solutions for health systems is expected to price its 29.5 M share IPO between $19-$22.

  • HireRight (NYSE: HRT): The global provider of technology-driven workforce risk management and compliance solutions is expected to price its 22.2 M share IPO between $21-$24.

  • Informatica (NYSE: INFA): The pioneer of a new category of software, the Intelligent Data Management Cloud, an AI-powered platform that connects, manages and unifies data across any multi-cloud, hybrid system, is expected to price its 29.0 M share IPO between $29-$32.

  • LianBio (Nasdaq: LIAN): The biopharmaceutical company developing medicines for patients with unmet medical needs, with an initial focus on in-licensing assets for Greater China, is expected to price its 20.3 M share IPO between $15-$17.

  • Sonendo (NYSE: SONX): The commercial-stage medical technology company focused on saving teeth from tooth decay is expected to price its 7.8 M share IPO between $15-$17.

  • Udemy (Nasdaq: UDMY): The operator of a two-sided marketplace where instructors develop content to meet learner demand is expected to price its 14.5 M share IPO between $27-$29.


  • Priced to Trade:

  • Fluence Energy (Nasdaq: FLNC): The provder of energy storage products and services and digital applications for renewables and storage priced its 31.0 M share IPO at $28, above the $21-$24 expected range.

  • Global Foundries (Nasdaq: GFS): The leading semiconductor foundry priced its 55 M share IPO at $47, the high end of the $42-$47 expected range.

  • Solo Brands (NYSE: DTC): The Direct-to-Consumer platform that operates four premium outdoor lifestyle brands-Solo Stove, Oru Kayak, ISLE Paddle Boards, and Chubbies apparel -- priced its 12.9 M share IPO at $17, the high end of the $14-$17 expected range.



Gapping Up/Down

  • Gapping up:

  • LC +30%, WOLF +15.5%, F +10.5%, PHAT +9%, ALGN +8.7%, MIME +8.1%, SNBR +7.9%, CYH +7.3%, CCS +6.9%, MXL +6.7%, UCTT +5.9%, SU +5.1%, STM +4.9%, ETD +4.6%, TYL +4.6%, KLAC +3.8%, TDAC +3.6%, MTH +3.4%, MC +3.3%, NOK +3.3%, CG +3.2%, CG +3.2%, OSTK +3%, ALSN +2.9%, INSE +2.8%, PI +2.8%, DRE +2.8%, EXR +2.6%, ASX +2.6%, STC +2.5%, DDD +2.3%, GSK +2.3%, XLNX +2.3%, ALGT +1.9%, LYG +1.9%, CTSH +1.8%, CHX +1.6%, GSHD +1.5%, MKSI +1.4%, TAK +1.4%, INVH +1.3%, URI +1.3%, RJF +1.1%, MOH +1%, STLA +0.9%, SONY +0.9%, PPD +0.8%, BOOT +0.8%, SNY +0.8%, AFL +0.7%, PTEN +0.7%, WST +0.7%


  • Gapping down:

  • BCOV -16.3%, TWLO -12.6%, NTGR -10.8%, RBBN -8.5%, UPWK -6.2%, FLS -5.9%, EBAY -5.9%, VWE -5.6%, FLEX -5.4%, NOVA -5.3%, MD -4.9%, CLB -4.3%, TDOC -4.3%, RPTX -4.2%, KREF -4.2%, PLXS -4.1%, RDS.A -4.1%, NGVT -3.7%, TROX -3.7%, PEGA -3.6%, NOW -3.4%, EW -3.4%, AGI -3.3%, CRVS -3.1%, SWK -3%, OSMT -2.7%, CASH -2.7%, SESN -2.6%, MYRG -2.3%, PRLB -2.2%, FARO -2.1%, FORM -1.9%, PPC -1.9%, EQT -1.9%, AZPN -1.4%, AR -1.2%, CDE -1.1%, AXTI -0.9%, EVTC -0.9%, AEM -0.8%, ACGL -0.8%, WLTW -0.8%, JBT -0.7%, YUMC -0.7%, MSA -0.7%, LIN -0.7%


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

  • Upgrades

  • Community Financial (TCFC) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $45

  • Eversource Energy (ES) upgraded to Neutral from Underperform at Mizuho; tgt raised to $87

  • First Commonwealth (FCF) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $19

  • InflaRx (IFRX) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $14

  • Norfolk Southern (NSC) upgraded to Buy from Neutral at BofA Securities; tgt raised to $325

  • PACCAR (PCAR) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $106

  • Teradyne (TER) upgraded to Outperform from Market Perform at Cowen; tgt raised to $150


  • Downgrades:

  • AGNC Investment (AGNC) downgraded to Mkt Perform from Mkt Outperform at JMP Securities

  • Aurinia Pharma (AUPH) downgraded to Perform from Outperform at Oppenheimer; tgt $32

  • Avis Budget (CAR) downgraded to Neutral from Buy at BofA Securities; tgt raised to $200

  • BJ's Wholesale (BJ) downgraded to Neutral from Buy at BofA Securities; tgt raised to $66

  • CVR Energy (CVI) downgraded to Underperform from Neutral at Credit Suisse; tgt raised to $20

  • Elanco Animal Health (ELAN) downgraded to Hold from Buy at Stifel; tgt lowered to $34

  • Phillips 66 Partners (PSXP) downgraded to Neutral from Outperform at Credit Suisse; tgt $41

  • Sherwin-Williams (SHW) downgraded to Neutral from Buy at BofA Securities; tgt $335

  • Stock Yards Bancorp (SYBT) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $67

  • Terminix (TMX) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $44

  • Teva Pharma (TEVA) downgraded to Mkt Perform from Outperform at Raymond James


  • Others:

  • Enjoy Technology (ENJY) initiated with a Neutral at Robert W. Baird; tgt $11

  • Martin Marietta (MLM) initiated with a Peer Perform at Wolfe Research; tgt $432

  • Summit Materials (SUM) initiated with an Outperform at Wolfe Research; tgt $45

  • Vulcan Materials (VMC) initiated with an Outperform at Wolfe Research; tgt $243


Upcoming Events:

  • Econ Data:

  • 08:30 ET: GDP-Adv. for Q3 (Briefing.com Consensus 2.4%; Prior 6.7%)

  • 08:30 ET: Chain Deflator-Adv. for Q3 (Briefing.com Consensus 5.5%; Prior 6.1%)

  • 08:30 ET: Initial Claims for Oct. 23 (Briefing.com Consensus 291K; Prior 290K)

  • 08:30 ET: Continuing Claims for Oct. 16 (Briefing.com Consensus NA; Prior 2.481M)

  • 10:00 ET: Pending Homes for Sep (Briefing.com Consensus 1.0%; Prior 8.1%)

  • 10:30 ET: EIA Natural Gas Inventories for Oct. 23 (Briefing.com Consensus NA; Prior +92 bcf)


  • Earnings:

  • Monday (Oct 25)

  • Morning: AUB BOH CBU DORM FBP HNI KMB LKFN LII OTIS QSR SITC

  • Afternoon: AGNC ARE ACC AMKR AXTA BXS BDN BRO CADE CDNS CALX CATY CR CCK FB HSTM HTLF HOPE IBTX LOGI LXFR MEDP NWE OI PKG PCH RNR SSD TNET TBI UHS


  • Tuesday (Oct 26)

  • Morning: MMM ARCH ADM ARCC AWI ABG CNC CIT CVLT GLW DAN ECL LLY ENTG FELE GE GPK GBX HAS HUBB INMD IVZ JBLU LMT HZO MSCI NVS PCAR PNR PII PHM RTX SPGI ST SHW SSTK SFNC SBSI AAN TRU TRTN TPB UBS UPS WM XRX

  • Afternoon: ACCO AMD AGYS GOOG AMP APAM AGR BXP BYD CHRW COF CB CSGP DLR EGP WIRE ENPH EQR ESS FFIV FCF FIBK FBHS FCPT HA HIW HPP IEX JNPR LBRT LFUS MANH MASI MTDR MSFT NAVI NCR NOV PFG QS RRC ROIC HOOD TENB TER TXN TRMK TWTR UDR UMBF VBTX V WSBC


  • Wednesday (Oct 27)

  • Morning: AMG ALKS APH AIT ARES ADP AVY BXMT BA BSX BCO BMY BG CAMT CHEF CME KO CSTM CTS DRVN DTE DT EVR FISV GRMN GD GM ROCK HOG HES HLT IP KHC MAS MCD MNRO NYCB NSC ODFL OC PAG PB ROL RES R SLGN SLAB SIX SPOT SF TMHC TEL TECK TDY TEVA TMO TNL UMC VRT WAB

  • Afternoon: AFL AEM AGI ALGN ALGT ALSN NLY AM AR ACGL ASGN AZPN AVB AXS NTB BHE BMRN BOOT BCOV CACI CG CCS CHX CHDN CINF CNO CDE CTSH FIX CYH CNMD CLB CONE DRE EBAY EW ESI EHC EQT EQC ETD RE EVTC EXR FLEX FLS F FORM FWRD GSHD THG PI NGVT ISBC INVH IRBT JBT KRC KLAC KN LC MXL MTH MEOH MAA MKSI MC MOH MUSA MYRG NTGR NDLS ORLY OII PGRE PEGA PDM PPC PLXS PPD RJF SIGI SCI NOW SIMO SNBR SSB SRI TDOC TROX TTMI TWLO TYL UCTT URI UPWK VICI WCN WOLF WH XLNX YUMC


  • Thursday (Oct 28)

  • Morning: FLWS AOS ABMD AGCO ATI ALGM ADS AB ALNY MO AEP AMT BUD AVNT BAX BPMC BC CRS CARR CAT CBZ CBRE CHKP CLVT CMS CNX COLB CMCO CMCSA COR CFR DBD EXP EME FCN THRM GPI HSY HBAN IDA ITW IMAX INSM ITGR ICE JHG KBR KDP KEX LH TREE LECO LIN LKQ MA MDC MPW MD MRK MDP TAP MCO COOP NEM NLSN NOC NVCR NVT OSK OSIS OSTK PATK PTEN PBF BTU PRFT PRLB PACK RLGY RS RGEN RDS.A SAIA SNY SNDR SHOP SIRI SWI SAH SMP SWK STM TROW TFX TPX TXT TW TRS VLY VC WST WEX WLTW WNS XEL YUM

  • Afternoon: ACHC AMZN ABCB AAPL AJG TEAM AVTR AVT AX BIO CPT CDNA CWST CHE COHU COLM OFC CUZ DVA DECK DXCM DRQ EMN EIG ENVA EXPO FHI FE FTV FTAI FTDR GLPI GILD LOPE HIG HTGC HTH HUBG KMPR KNSL LMAT LPLA LTC MGRC MERC MMSI MSTR MHK MPWR NATI NXGN PEB POLY POWI PTCT RNST RSG RMD SGEN SPNE SKX SKYW SM SPSC SSNC STAG SBUX SYK TEX TXRH X VRSN VCRA WRE WERN WDC AUY ZEN


  • Friday (Oct 29)

  • Morning: ABBV AON ATR B BAH CCJ CBOE CERN CHTR CVX CHD CL XOM FTS GWW HUN IMGN IMO LAZ LYB NWL PSX PSXP PNM POR PFS SJR SHLX SLCA WPC WY WETF



Asia & Europe detail:

Asia: Nikkei -1.0%, Hang Seng -0.3%, Shanghai Composite -1.2%

Equity indices in the Asia-Pacific region ended Thursday on a lower note. The Bank of Japan left its interest on excess reserves at -0.10%, in-line with expectations. The central bank lowered its domestic growth forecast for 2021 to 3.4% from 3.8% and cut its inflation forecast to 0% from 0.6%. Japan's Prime Minister Kishida is expected to act in response to rising oil prices. Reserve Bank of Australia Deputy Governor Debelle said that higher inflation is the aim of monetary policy. There are growing expectations that the RBA will alter its yield curve control policy at next week's meeting.

  • In economic data:

  • Japan's September Retail Sales -0.6% yr/yr (expected -2.3%; last -3.2%)

  • Australia's Q3 Import Price Index 5.4% qtr/qtr (last 1.9%) and Export Price Index 6.2% qtr/qtr (last 13.2%)


---Equity Markets---

  • Japan's Nikkei: -1.0%

  • Hong Kong's Hang Seng: -0.3%

  • China's Shanghai Composite: -1.2%

  • India's Sensex: -1.9%

  • South Korea's Kospi: -0.5%

  • Australia's ASX All Ordinaries: -0.2%

---FX---

  • USD/JPY: -0.2% to 113.59

  • USD/CNH: UNCH at 6.3933

  • USD/INR: -0.1% to 74.93

Europe: DAX -0.1%, FTSE -0.2%, CAC +0.6%

Major European indices trade in mixed fashion. The U.K. warned that it will retaliate if France follows through on its threat to slow border checks due to the ongoing fishing dispute. Volkswagen reported above-consensus results and lowered its forecast for 2021 deliveries. Germany's Association of Chambers of Trade and Industry lowered its domestic growth forecast for 2021 to 2.3% from 3.0% while the CPI forecast was increased to 3.0% from 2.2%. The European Central Bank will release its latest policy statement this morning, but the interest rate corridor is expected to remain unchanged.

  • In economic data:

  • Eurozone's October Business and Consumer Survey 118.6 (expected 116.9; last 117.8)

  • Germany's October Unemployment Change -39,000 (expected -20,000; last -30,000) and Unemployment Rate 5.4%, as expected (last 5.5%)

  • Italy's October Business Confidence 114.9 (expected 112.2; last 113.2) and Consumer Confidence 118.4 (expected 118.5; last 119.6) September PPI 1.6% m/m (last 0.5%); 13.3% yr/yr (last 11.6%)

  • Spain's October CPI 2.0% m/m (last 0.8%); 5.5% yr/yr (last 4.0%)


---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: -0.1%

  • U.K.'s FTSE 100: -0.2%

  • France's CAC 40: +0.6%

  • Italy's FTSE MIB: +0.5%

  • Spain's IBEX 35: +0.3%

---FX---

  • EUR/USD: +0.1% to 1.1606

  • GBP/USD: +0.1% to 1.3749

  • USD/CHF: +0.1% to 0.9187


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