The S&P 500 futures are down 29 points and are trading 0.9% below fair value. The Nasdaq 100 futures are down 86 points and are trading 1.1% below fair value. The Dow Jones Industrial Average futures are down 188 points and are trading 0.7% below fair value.
There's a negative tone in the equity futures market that is being fed reportedly by concerns over protests in China due to the zero-COVID policy. Also, it appears as if a consolidation mindset is kicking in after some strong gain of late and as the S&P 500 approaches its 200-day moving average (4054).
OPEC+ will decide on production amounts ahead of the planned December 5 EU ban on most Russian crude imports, according to The Wall Street Journal.
On a related note, energy complex futures are trading down this morning on growth concerns connected to China. WTI crude oil futures are down 3.0% to $74.03/bbl and natural gas futures are down 3.7% to $7.05/mmbtu.
There is no U.S. economic data of note today, but market participants have a big slate of data coming up this week that includes: November Consumer Confidence at 10:00 a.m. ET Tuesday, Q3 GDP Second Estimate at 8:30 a.m. ET Wednesday, October PCE Price Index at 8:30 a.m. ET and November ISM Manufacturing Index at 10:00 a.m. ET on Thursday, and the November Employment Report at 8:30 a.m. ET on Friday.
In corporate news:
Williams-Sonoma (WSM 117.01, -5.41,, -4.4%): downgraded to Underweight from Equal Weight at Morgan Stanley
Anheuser-Busch InBev (BUD 58.97, +2.38, +4.2%): upgraded to Overweight from Underweight at JPMorgan
Las Vegas Sands (LVS 44.51, +1.34, +3.1%), Wynn Resort (WYNN 79.41, +4.48, +6.0%), and MGM Resorts (MGM 36.53, +0.80, +2.2%): Chinese government renewed casino licenses for Macau
Chevron (CVX 180.31, -3.39, -1.9%): U.S. government granted license to resume oil production in Venezuela, according to Bloomberg
Axsome Therapeutics (AXSM 64.30, +7.48, +13.2%): announces AXS-05 achieves primary endpoint in the ACCORD phase 3 Trial in Alzheimer's Disease Agitation
Biogen (BIIB 293.99, -11.16, -3.7%): Another death was linked to Lecanemab, according to Science.Org
Apple (AAPL 145.50, -2.61, -1.8%): could lose 6 million iPhone Pro models from events at the Foxconn plant, according to Bloomberg.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.8%, India's Sensex: +0.3%, South Korea's Kospi: -1.2%, Australia's ASX All Ordinaries: -0.4%.
In economic data:
China's October Industrial Profit -3.0% YTD (last -2.3%)
Hong Kong's October trade deficit HKD20.90 bln (last deficit of HKD44.90 bln). October Imports -11.9% m/m (last -7.8%) and Exports -10.4% m/m (last -9.1%)
Australia's October Retail Sales -0.2% m/m (expected 0.5%; last 0.6%)
In news:
Investor sentiment was pressured by reports of tighter lockdown measures in China, which prompted protests in several cities.
Goldman Sachs speculated that China could lift its zero-covid policy before April, though Q2 is still projected as the most likely time for an exit.
Japan is expected to fine three power companies on anti-trust grounds.
Major European indices trade in the red. STOXX Europe 600: -0.9%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.9%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -0.9%.
In economic data:
Eurozone's October Private Sector Loans 4.2% yr/yr (expected 4.5%; last 4.4%) and Loans to nonfinancials 8.9% yr/yr (last 8.9%)
U.K.'s November CBI Distributive Trades Survey -19 (expected 2; last 18)
In news:
EU officials will reportedly continue discussing a potential price cap for Russian oil.
There is ongoing speculation that the Bank of England and the European Central Bank will shift down to 50-bp rate hikes.
European Central Bank policymaker Knot said that underlying inflation trends are concerning but a recession in Q4 is not a foregone conclusion. However, ECB policymaker Kazimir said that the risk of a recession is on the rise.
U.S. equity futures:
S&P 500 Futures: -29 @ 4,003
DJIA Futures: -188 @ 34,168
Nasdaq 100 Futures: -86 @ 11,696
Overseas:
Europe: DAX -0.9%, FTSE -0.3%, CAC -0.9%
Asia: Nikkei -0.4%, Hang Seng -1.6%, Shanghai Composite -0.8%
Commodities:
Crude Oil -2.34 @ 73.94
Nat Gas -0.265 @ 7.065
Gold +3.00 @ 1757.00
Silver +0.005 @ 21.435
Copper -0.0200 @ 3.6075
Earnings/Guidance:
There are no earnings reports of note
News:
OPEC will decide on production amounts ahead of planned December 5th EU ban on most Russian crude imports, according to The Wall Street Journal
Protests are continuing in several Chinese cities over zero coronavirus policy and associated restrictions, according to The Wall street Journal
Black Friday online sales reach a new record while in person shopping increased 2.9%, according to New York Post
EU aiming to increase cigarette taxes, according to FT
FCC bans authorizations for devices that pose national security threat
White House COVID-19 Response Coordinator Dr. Ashish Jha says updated vaccines are effective against Omicron sub variants. Only 11% of Americans have received updated coronavirus vaccine booster, according to ABC News
European Central Bank policymaker Knot said that underlying inflation trends are concerning but a recession in Q4 is not a foregone conclusion. However, ECB policymaker Kazimir said that the risk of a recession is on the rise.
ABB ( ABB â–¾ 0.16% ) close to $325 mln settlement over bribery allegations, according to The Wall Street Journal
Amazon ( AMZN â–¾ 1.71% ) aiming to close some India businesses, according to Bloomberg
ANI Pharma ( ANIP â–´ 1.62% ) receives FDA approval for Fluoxetine Oral Solution USP
Apple ( AAPL â–¾ 2.11% ) could lose 6 million iPhone Pro models from events at Foxconn (HNHPF) plant, according to Bloomberg
Apple ( AAPL â–¾ 2.11% ), Google (GOOG), Amazon (AMZN), and ESPN (DIS) are interested in NFL Sunday Ticket streaming rights, according to New York Times
Axsome Therapeutics ( AXSM â–¾ 5.22% ) announces AXS-05 achieves primary endpoint in the ACCORD phase 3 Trial in Alzheimer's Disease Agitation
Barclays PLC ( BCS â–´ 2.75% ) and Barclays Bank PLC announces that its CEO, C.S. Venkatakrishnan, has informed the Barclays Board and his colleagues that he will be undergoing treatment for Non-Hodgkin Lymphoma
BioCryst Pharma ( BCRX â–´ 3.10% ) receives approval for ORLADEYO in Israel
Biogen ( BIIB â–¾ 0.17% ): Another death was linked to Lecanemab, according to Science.Org
Builders FirstSource ( BLDR â–´ 2.13% ) announced that its Board of Directors approved an increase to the company's existing stock repurchase plan in the amount of $1 bln, for a total of approximately $1.5 bln
Chevron ( CVX â–´ 1.50% ) granted license to resume oil production in Venezuela, according to Bloomberg
KKR ( KKR 0.00% ): APRIL signs strategic partnership with KKR for its next phase of growth
Melco Resorts & Entertainment Limited ( MLCO â–´ 9.81% ) announced that the Macau government has provisionally awarded a ten-year concession to operate games of fortune and chance in casinos in Macau to Melco Resorts Limited, a subsidiary of the Company
OneSpaWorld ( OSW â–¾ 0.72% ) announces new contract with Norwegian Cruise Line Holdings (NCLH)
Philip Morris International's ( PM â–´ 0.16% ) Philip Morris Holland Holdings becomes the owner of 93.11% of the shares in Swedish Match, and intends to initiate compulsory redemption and request delisting
Sarepta Therapeutics ( SRPT â–¾ 0.87% ) announces that the U.S. Food and Drug Administration has accepted the Company's Biologics License Application seeking accelerated approval of SRP-9001 for the treatment of ambulant individuals with Duchenne muscular dystrophy
Shopify ( SHOP â–¾ 2.31% ) Black Friday sales were up 17% yr/yr, according to Charged Retail
Taboola ( TBLA â–¾ 6.44% ) and Yahoo enter 30-year commercial agreement; partnership to generate ~$1 bln in annual revenue
The Sands China group, part of Las Vegas Sands Corp. ( LVS â–´ 2.31% ), has been awarded a new 10-year gaming concession in Macao, as announced by the Macao government Saturday
US Foods ( USFD â–´ 1.01% ) announced that Dave Flitman will become CEO effective Jan. 5, 2023
Walt Disney's ( DIS â–¾ 1.05% ) Strange World had a disappointing box office result, according to The Wall Street Journal
Wynn Resorts ( WYNN â–´ 2.67% ) announced that Wynn Resorts Macau received a provisional award of a gaming concession from the Macau government
M&A:
First Majestic Silver ( AG â–´ 3.43% ) sells strategic silver focused royalty portfolio to Metalla, which will acquire eight royalties for $20 million of common shares of Metalla
Univar Solutions ( UNVR â–´ 1.33% ) confirms preliminary indication of interest from Brenntag SE
Syndicate:
There is no syndicate activity of note
IPOs:
Expect to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
UNVR +11.3%, MLCO +6.5%, WYNN +6%, LVS +3.5%, MGM +2.9%, BCS +0.9%, TLT +0.5%
Gapping down:
USO -3.2%, ADCT -3.1%, JBLU -3.1%, AAPL -1.8%, BSX -1.3%, AAL -1%, QQQ -0.9%, SPY -0.7%, IWM -0.7%, SAVE -0.7%, DIA -0.5%, DIS -0.5%, DAL -0.5%, UAL -0.5%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Anheuser-Busch InBev (BUD) upgraded to Overweight from Underweight at JP Morgan; tgt raised to $70
BorgWarner (BWA) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $45
Downgrades:
Aptiv (APTV) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $105
Beyond Meat (BYND) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $10
Diamondback Energy (FANG) downgraded to Underperform from Neutral at BofA Securities; tgt $143
Tyson Foods (TSN) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $58
Others:
Ambac (AMBC) initiated with a Neutral at Compass Point; tgt $18
Assured Guaranty (AGO) initiated with a Buy at Compass Point; tgt $84
MBIA (MBI) initiated with a Neutral at Compass Point; tgt $14
Upcoming Events:
Econ Data:
There is no U.S. economic data of note
Earnings:
Monday (Nov 28)
Morning: None of note
Afternoon: ARWR, AZEK
Tuesday (Nov 29)
Morning: BNS, BZUN, BILI, CRNC, HIBB, SJR
Afternoon: CMP, CRWD, HPE, INTU, NTAP, WDAY
Wednesday (Nov 30)
Morning: DCI, FRO, HRL, BEKE, LESL, WOOF, RY, SFL, TITN
Afternoon: BOX, CRDO, ESTC, FIVE, LZB, NCNO, NTNX, OKTA, PSTG, PVH, CRM, SMTC, SNOW, SPLK, SNPS, VSCO, YEXT
Thursday (Dec 01)
Morning: BMO, BIG, CM, DBI, DG, KR, PDCO, SCWX, TD
Afternoon: AMBA, AOUT, ASAN, CHPT, MRVL, PD, SMAR, PATH, ULTA, VEEV, ZS, ZUMZ
Friday (Dec 02)
Morning: CBRL, GCO
Afternoon: None of note
Asia & Europe detail:
Asia: Nikkei -0.4%, Hang Seng -1.6%, Shanghai Composite -0.8%
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Investor sentiment was pressured by reports of tighter lockdown measures in China, which prompted protests in several cities. Goldman Sachs speculated that China could lift its zero-covid policy before April, though Q2 is still projected as the most likely time for an exit. Japan is expected to fine three power companies on anti-trust grounds.
In economic data:
China's October Industrial Profit -3.0% YTD (last -2.3%)
Hong Kong's October trade deficit HKD20.90 bln (last deficit of HKD44.90 bln). October Imports -11.9% m/m (last -7.8%) and Exports -10.4% m/m (last -9.1%)
Australia's October Retail Sales -0.2% m/m (expected 0.5%; last 0.6%)
---Equity Markets---
Japan's Nikkei: -0.4%
Hong Kong's Hang Seng: -1.6%
China's Shanghai Composite: -0.8%
India's Sensex: +0.3%
South Korea's Kospi: -1.2%
Australia's ASX All Ordinaries: -0.4%
---FX---
USD/JPY: -0.7% to 138.11
USD/CNH: +0.4% to 7.2152
USD/INR: -0.1% to 81.64
Europe: DAX -0.9%, FTSE -0.3%, CAC -0.9%
Major European indices trade in the red. EU officials will reportedly continue discussing a potential price cap for Russian oil. There is ongoing speculation that the Bank of England and the European Central Bank will shift down to 50-bp rate hikes. European Central Bank policymaker Knot said that underlying inflation trends are concerning but a recession in Q4 is not a foregone conclusion. However, ECB policymaker Kazimir said that the risk of a recession is on the rise.
In economic data:
Eurozone's October Private Sector Loans 4.2% yr/yr (expected 4.5%; last 4.4%) and Loans to nonfinancials 8.9% yr/yr (last 8.9%)
U.K.'s November CBI Distributive Trades Survey -19 (expected 2; last 18)
---Equity Markets---
STOXX Europe 600: -0.9%
Germany's DAX: -0.9%
U.K.'s FTSE 100: -0.3%
France's CAC 40: -0.9%
Italy's FTSE MIB: -0.9%
Spain's IBEX 35: -0.9%
---FX---
EUR/USD: +0.7% to 1.0468
GBP/USD: -0.1% to 1.2085
USD/CHF: -0.3% to 0.9429
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