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29/10/21 Briefing

The S&P 500 futures trade 13 points, or 0.3%, below fair value amid weakness in Apple (AAPL 147.18, -5.39, -3.5%) and Amazon.com (AMZN 3292.00, -154.57, -4.5%) following their earnings reports. The Nasdaq 100 futures underperform and trade 0.8% below fair value.

Briefly, Apple missed revenue estimates, citing a $6 billion revenue impact caused by supply chain and chip supply issues. The company expects these issues to persist in the fourth quarter. Amazon missed top and bottom-line estimates and guided Q4 revenue and operating income below consensus, citing higher input costs for the lower guidance.

In other words, Apple was unable to meet strong demand because of lingering supply chain issues while Amazon is being pinched by wage, freight, and shipping inflation. AAPL shares are currently down 3.5%. AMZN shares are currently down 4.5%.

On the data front, investors will receive Personal Income (Briefing.com consensus -0.2%) and Personal Spending (Briefing.com consensus +0.4%) for September, PCE Prices for September (Briefing.com consensus +0.3%), and the Employment Cost Index for the third quarter (Briefing.com consensus +0.8%) at 8:30 a.m. ET.

Afterwards, the Chicago PMI for October (Briefing.com consensus 63.1) will be available at 9:45 a.m. ET, followed by the final University of Michigan Index of Consumer Sentiment for October (Briefing.com consensus 71.4) at 10:00 a.m. ET.

The Treasury yield curve is re-steepening for the second straight day. The 2-yr yield is up two basis points to 0.52%, and the 10-yr yield is up four basis points to 1.60%. The U.S. Dollar Index is up 0.2% to 93.53. WTI crude futures are up 0.3% to $83.05/bbl.

In U.S. Corporate news:

  • Apple (AAPL 147.18, -5.39): -3.5% after missing revenue estimates due to supply chain and chip supply issues, which the company expects to persist in the fourth quarter.

  • Amazon.com (AMZN 3292.00, -154.57): -4.5% after missing top and bottom-line estimates and guiding Q4 revenue and operating income below consensus, citing higher costs.

  • Starbucks (SBUX 107.44, -5.76): -5.1% after missing revenue estimates. The company committed to $20 billion of share repurchases and dividends over the next three years.

  • Chevron (CVX 115.50, +2.38): +2.1% after beating top and bottom-line estimates.

  • Exxon Mobil (XOM 64.95, +0.64): +1.0% after beating top and bottom-line estimates, increasing its dividend by one cent, and announcing a share repurchase program of up to $10 billion over 12 - 24 months.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: +0.3% (+0.3% for the week) Hong Kong's Hang Seng: -0.7% (-2.9% for the week) China's Shanghai Composite: +0.8% (-1.0% for the week) India's Sensex: -1.1% (-2.5% for the week) South Korea's Kospi: -1.3% (-1.2% for the week) Australia's ASX All Ordinaries: -1.3% (-1.1% for the week).

  • In economic data:

  • Japan's September Industrial Production -5.4% m/m (expected -3.2%; last -3.6%) and September Housing Starts 4.3% yr/yr (expected 7.5%; last 7.5%). September Unemployment Rate 2.8%, as expected (last 2.8%). October Tokyo CPI 0.1% yr/yr (last 0.3%) and Tokyo Core CPI 0.1% yr/yr (expected 0.3%; last 0.1%). October Household Confidence 39.2 (last 37.8) o South Korea's September Industrial Production -0.8% m/m (expected -0.3%; last -0.7%); -1.8% yr/yr (expected 1.4%; last 9.7%). September Retail Sales 2.5% m/m (last -0.8%) and November Manufacturing BSI Index 87 (last 92)

  • Singapore's Q3 Unemployment Rate 2.6% (last 2.7%). Q4 Business Expectations 16.00 (last 20.00)

  • Australia's September Retail Sales 1.3% m/m (expected 0.2%; last -1.7%). September Private Sector Credit 0.6% m/m, as expected (last 0.6%). Q3 PPI 1.1% qtr/qtr (last 0.7%); 2.9% yr/yr (last 2.2%)


  • In news:

  • Developer Evergrande made another interest payment just ahead of today's expiration of a grace period that would have triggered cross defaults on all of the company's international obligations. The grace period on another missed payment will expire on November 11.

  • There were reports of diesel shortages at gas stations in China.

  • There was more speculation about the Reserve Bank of Australia ending its yield curve control policy at next week's meeting as the country's 3-yr yield remains above target.



  • Major European indices trade in the red. STOXX Europe 600: -0.5% (+0.2% week-to-date) Germany's DAX: -0.8% (+0.2% week-to-date) U.K.'s FTSE 100: -0.3% (+0.3% week-to-date) France's CAC 40: -0.4% (+0.7% week-to-date) Italy's FTSE MIB: -0.5% (+0.7% week-to-date) Spain's IBEX 35: -0.1% (+1.3% week-to-date)

  • In economic data:

  • Eurozone's October CPI 0.8% m/m (last 0.5%); 4.1% yr/yr (expected 3.7%; last 3.4%). Flash Q3 GDP 2.2% qtr/qtr (last 2.1%); 3.7% yr/yr (last 14.2%)

  • Germany's flash Q3 GDP 1.8% qtr/qtr (expected 2.2%; last 1.9%); 2.5% yr/yr (expected 2.4%; last 10.3%)

  • U.K.'s September Mortgage Lending GBP9.52 bln (expected GBP6.00 bln; last GBP4.44 bln)

  • France's September Consumer Spending -0.2% m/m (expected 0.3%; last 0.7%). Q3 GDP 3.0% qtr/qtr (expected 2.1%; last 1.3%). October CPI 0.4% m/m (last -0.2%); 2.6% yr/yr (last 2.2%)

  • Italy's flash Q3 GDP 2.6% (expected 2.0%; last 2.7%); 3.8% yr/yr (expected 3.0%; last 17.0%). October CPI 0.6% m/m (expected 0.4%; last -0.2%); 2.9% yr/yr (expected 2.6%; last 2.5%)

  • Spain's flash Q3 GDP 2.0% qtr/qtr (expected 2.7%; last 1.1%); 2.7% yr/yr (expected 3.5%; last 17.5%). September Retail Sales -0.1% yr/yr (last -0.7%)

  • Swiss October KOF Leading Indicators 110.7 (expected 108.2; last 111.0)


  • In news:

  • Eurozone's CPI increased at its fastest yr/yr (4.1%) pace since mid-2008 in the October reading.

  • Policymakers at the European Central Bank are reportedly divided over their view of knock-on effects from inflation.

  • British Prime Minister Johnson summoned the French ambassador over the ongoing fishing dispute.

  • The G-20 summit is taking place in Rome this weekend.





U.S. equity futures:

  • S&P 500 Futures: -19 @ 4,577

  • DJIA Futures: -14 @ 35,717

  • Nasdaq 100 Futures: -122 @ 15,656

Overseas:

  • Europe: DAX -0.8%, FTSE -0.3%, CAC -0.4%

  • Asia: Nikkei +0.3%, Hang Seng -0.7%, Shanghai Composite +0.8%

Commodities:

  • Crude Oil +0.22 @ 83.03

  • Nat Gas -0.078 @ 5.704

  • Gold -7.45 @ 1795.15

  • Silver -0.128 @ 23.992

  • Copper +0.0060 @ 4.4445

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • AbbVie (ABBV) beats by $0.11, reports revs in-line; increases FY21 EPS guidance; ups dividend

  • Acadia Healthcare (ACHC) reports EPS in-line, revs in-line; narrows FY21 guidance

  • Amazon (AMZN) misses by $2.84, reports slight miss on revs; guides Q4 revs below consensus, guides Q4 operating income below consensus, citing higher costs

  • Aon (AON) beats by $0.04, beats on revs

  • Apple (AAPL) reports EPS in-line, misses on revs; co does not provide guidance in press release; iPhone revenue lower than expected; iPads bright spot in quarter

  • AptarGroup (ATR) reports EPS in-line, beats on revs; guides Q4 EPS below consensus

  • Arthur J. Gallagher (AJG) misses by $0.01, beats on revs

  • Atlassian (TEAM) beats by $0.06, misses on revs; guides Q2 EPS below consensus, revs above consensus

  • Avantor (AVTR) beats by $0.03, reports revs in-line

  • Avnet (AVT) beats by $0.13, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • Barnes Group (B) beats by $0.05, reports revs in-line; guides FY21 EPS in-line

  • Bio-Rad Labs (BIO) beats by $1.23, beats on revs; provides FY21 guidance

  • Booz Allen Hamilton (BAH) beats by $0.18, misses on revs; reaffirms FY22 EPS guidance, revs guidance

  • Camden Property (CPT) misses by $0.19, beats on revs

  • Cameco (CCJ) misses by CAD 0.10, misses on revs

  • CareDx (CDNA) beats by $0.05, beats on revs; raises FY21 revs in-line

  • Carter's (CRI) beats by $0.20, misses on revs; guides Q4 EPS below consensus, revs above consensus

  • Casella Waste (CWST) beats by $0.07, beats on revs; raises FY21 revs guidance

  • Cboe Global Markets (CBOE) beats by $0.02, reports revs in-line

  • CEMEX S.A. (CX) reports YTD results (no comparable ests). provides FY21 guidance

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

  • Charter Comm (CHTR) beats by $0.70, beats on revs

  • Chemed (CHE) beats by $0.57, beats on revs; ups FY21 EPS outlook

  • Chevron (CVX) beats by $0.77; beats on revs

  • Church & Dwight (CHD) beats by $0.09, beats on revs; guides FY21 EPS in-line, revs in-line

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

  • Colgate-Palmolive (CL) beats by $0.01, reports revs in-line; reaffirms FY21 revs guidance

  • Columbia Sportswear (COLM) beats by $0.23, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Cousins Prop (CUZ) beats by $0.01, beats on revs

  • Daimler AG (DDAIF) reports Q3 results; revs down slightly yr/yr; provides FY21 outlook

  • DaVita (DVA) beats by $0.10, reports revs in-line; lowers high end of FY21 EPS guidance range, which is below consensus

  • Deckers Outdoor (DECK) misses by $0.24, misses on revs; lowers FY22 EPS below consensus, revs in-line

  • Dexcom (DXCM) beats by $0.24, beats on revs; raises FY21 revs above consensus

  • Dril-Quip (DRQ) misses by $0.15, misses on revs

  • Eastman Chemical (EMN) reports EPS in-line, beats on revs; guides FY21 EPS below consensus

  • Eventbrite (EB) reports Q3 (Sep) results; sales +144%, paid ticket volumes +19%

  • Exponent (EXPO) beats by $0.05, beats on revs

  • Exxon Mobil (XOM) beats by $0.06, beats on revs; increases dividend and share repurchase program

  • Federated Hermes (FHI) beats by $0.01, reports revs in-line

  • FirstEnergy (FE) beats by $0.03, reports revs in-line

  • Fortive (FTV) beats by $0.01, misses on revs; guides Q4 EPS in-line

  • Frontdoor (FTDR) beats by $0.23, misses on revs; guides Q4 revs below consensus

  • Gaming and Leisure Properties (GLPI) beats by $0.04, beats on revs

  • Gilead Sciences (GILD) beats by $0.88, beats on revs; guides FY21 EPS above consensus

  • Grand Canyon Education (LOPE) misses by $0.03, misses on revs; guides Q4 EPS below consensus, revs in-line

  • Hartford Financial (HIG) beats by $0.41, beats on revs

  • Haverty Furniture (HVT) beats by $0.08, reports revs in-line

  • Hercules Capital (HTGC) beats by $0.01, misses on revs

  • Houlihan Lokey (HLI) beats by $0.54, beats on revs

  • Hub Group (HUBG) beats by $0.18, misses on revs; raises FY21 EPS guidance

  • Huntsman (HUN) beats by $0.16, beats on revs

  • Immunogen (IMGN) beats by $0.06, misses on revs; reaffirms FY21 revs guidance

  • L3Harris (LHX) beats by $0.03, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • Lazard (LAZ) beats by $0.03, misses on revs

  • Lemaitre Vascular (LMAT) misses by $0.03, misses on revs; guides Q4 EPS in-line, revs in-line

  • Life Time (LTH) reports Q3 (Sep) results; Q3 sales +66%, center memberships +16.7%

  • LyondellBasell (LYB) misses by $0.48, beats on revs

  • Mercer Intl (MERC) beats by $0.22, misses on revs

  • Merit Medical (MMSI) beats by $0.08, beats on revs; reaffirms FY21 EPS guidance, revs guidance

  • MicroStrategy (MSTR) reports Q3 (Sep) results, revs in-line

  • Mohawk (MHK) beats by $0.15, misses on revs

  • Momentive Global (MNTV) guides Q3 revs slightly above consensus; Entered into definitive agreement to be acquired by Zendesk (ZEN)

  • MoneyGram (MGI) beats by $0.05; misses on revs; sees Q4 revs below consensus

  • Monolithic Power (MPWR) beats by $0.06, beats on revs; guides Q4 revs above consensus

  • Natl Instruments (NATI) beats by $0.03, misses on revs; guides Q4 EPS in-line, revs in-line

  • NatWest Group plc (NWG) reports Q3 results

  • Newell Brands (NWL) beats by $0.04, reports revs in-line; guides FY21 EPS in-line, revs above consensus

  • Opko Health (OPK) beats by $0.05, beats on revs

  • Pebblebrook Hotel Trust (PEB) misses by $0.01, beats on revs

  • PetroChina (PTR) beats by RMB0.01; beats on revs

  • Phillips 66 (PSX) beats by $1.26

  • Phillips 66 Partners (PSXP) beats by $0.02, beats on revs

  • Poly (POLY) beats by $0.16, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • Power Integrations (POWI) beats by $0.06, reports revs in-line; guides Q4 revs in-line

  • Portland Gen Elec (POR) reports Q3 results; beats on revs; reaffirms FY21 EPS guidance

  • PNM Resources (PNM) beats by $0.15, misses on revs

  • PTC Therapeutics (PTCT) reports EPS in-line, beats on revs, raises FY21 net product revenue guidance for DMD franchise

  • Republic Services (RSG) beats by $0.06, beats on revs; guides FY21 EPS above consensus

  • ResMed (RMD) beats by $0.16, beats on revs

  • Roper (ROP) files mixed securities shelf offering

  • Seagen (SGEN) misses by $1.04, beats on revs

  • Skechers USA (SKX) misses by $0.05, misses on revs; Q4 EPS misses at midpoint, revs above consensus

  • SkyWest (SKYW) beats by $0.22, beats on revs

  • SM Energy (SM) beats by $0.60, beats on revs, increases and narrows FY21 production guidance range

  • SPS Commerce (SPSC) beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs in-line, authorizes new $50 mln share repurchase program

  • SS&C Techs (SSNC) beats by $0.12, beats on revs; guides Q4 EPS in-line, revs in-line

  • Starbucks (SBUX) reports EPS in-line, misses on revs, comparable store sales up 17%, commits to $20 bln of share repurchases and dividends over next three years

  • Stryker (SYK) misses by $0.08, misses on revs; lowers FY21 EPS outlook

  • Terex (TEX) misses by $0.06, misses on revs; guides FY21 EPS below consensus

  • Texas Roadhouse (TXRH) misses by $0.06, reports revs in-line

  • TFI International (TFII) beats by $0.07, beats on revs

  • Toyota Motor (TM) reports Jan-Sep worldwide sales -20.3%; production -15.3%

  • Travere Therapeutics (TVTX) misses by $0.11, beats on revs

  • U.S. Silica (SLCA) misses by $0.02, misses on revs

  • U.S. Steel (X) beats by $0.43, beats on revs

  • Vale S.A. (VALE) reports Q3 results; misses on revs; approves share buyback

  • Vocera (VCRA) beats by $0.13, beats on revs; guides FY21 EPS above consensus, revs in-line

  • Washington REIT (WRE) reports FFO in-line, misses on revs; guides FY21 FFO below consensus; announced dividend

  • Werner Enterprises (WERN) misses by $0.16, reports revs in-line

  • Western Digital (WDC) beats by $0.05, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

  • Weyerhaeuser (WY) beats by $0.81, beats on revs

  • WisdomTree (WETF) beats by $0.01, reports revs in-line

  • World Fuel Services (INT) beats by $0.02, beats on revs

  • W.P. Carey (WPC) beats by $0.08, reports revs in-line; guides FY21 FFO above consensus

  • Yamana Gold (AUY) reports Q3 (Sep) results, misses on revs

  • Zendesk (ZEN) reports EPS in-line, beats on revs; guides Q4 revs above consensus


  • General News:

  • House Speaker Nancy Pelosi (D-CA) cancelled yesterday's planned vote on bipartisan infrastructure bill due to progressive opposition. House voted to extend highway trust fund until December 3 to give more time to negotiate bipartisan infrastructure bill and larger reconciliation bill. Neither Senator Joe Manchin (D-WV) or Kristen Sinema (D-AZ) have committed to backing the reconciliation bill, according to CNN

  • NYC fears it could be short thousands of firefighters and police officers following deadline for vaccination mandate, according to the New York Times

  • Florida filed a lawsuit against US government over vaccine mandate for federal contractors, according to the New York Times

  • Treasury Secretary Janet Yellen says she expects consumer and investment spending to remain "quite healthy" next year; expects spending bills to pass next week - CNBC

  • Evergrande had made its second late payment, according to the Wall Street Journal

  • Leaders in G20 are divided over phasing out coal for climate purposes, according to the Wall Street Journal

  • ADC Therapeutics (ADCT) announces its Marketing Authorization Application for ZYNLONTA has been validated by the European Medicines Agency

  • Aecom Tech (ACM) signed a strategic partnership agreement with the Royal Commission for AlUla (RCU) that will further accelerate the regeneration of AlUla

  • Agilent (A) announces that its PD-L1 IHC 22C3 pharmDx assay is now labelled for use in TNBC in the European Union

  • Amazon's (AMZN) AWS announces general availability of Babelfish for Amazon Aurora PostgreSQL

  • Bank OZK (OZK) increases size of stock repurchase program to $650 mln

  • BridgeBio Pharma (BBIO) announced two new academic collaborations with Columbia University and Mount Sinai to develop potential therapies for genetic diseases and cancers

  • Chemours (CC) appoints Dawn L. Farrell as Chairperson, effective January 1

  • Cinemark (CNK) to heighten focus on gaming initiatives

  • Eli Lilly (LLY) announces publication of Phase 3 monarchE study data

  • Facebook (FB) aiming to develop smartwatches, according to Bloomberg

  • Ford (F) suspended production at Mexico plant amid chip shortages, according to Reuters

  • Fluor (FLR) signs memorandum of understanding with Bulgarian Energy Holding for new nuclear power units

  • Gilead Sciences (GILD) and Merck (MRK) announce clinical trial combination to evaluate Trodelvy in combination with KEYTRUDA in patients with first-line metastatic triple-negative breast cancer

  • Gilead Sciences (GILD) announces interim results from the ongoing, multinational, observational single-arm, non-comparative real-world cohort BICSTaR study

  • Gorman-Rupp (GRC) increases quarterly cash dividend of $0.17 per share from $0.155/share; authorizes $50 mln share repurchase program

  • HomeStreet (HMST) announces a $20 million expansion of share repurchase program

  • Hormel Foods (HRL) announces that Jim Sheehan plans to retire as executive vice president and chief financial officer after 43 years with the company

  • HP (HPQ) forms task force to look at ways to improve supply chain, according to Digitimes

  • Illumina (ILMN): EU Commission adopts interim measures to prevent harm to competition following Illumina's early acquisition of GRAIL

  • Immutep (IMMP) receives positive EMA scientific advice for further clinical development of efti in MBC including Phase III

  • Kazia Therapeutics (KZIA) provides an update on the ongoing development of its product candidates

  • NewMarket (NEU) approves new $500 mln share repurchase program

  • NextGen Healthcare (NXGN) authorizes $60 mln share repurchase program

  • Novavax (NVAX) files for provisional approval of its COVID-19 vaccine in australia

  • Pfizer (PFE): PRAC finds insufficient evidence on a possible link with multisystem inflammatory syndrome

  • Reata Pharmaceuticals (RETA) submits Marketing Authorization Application for bardoxolone methyl to the EMA

  • Rio Tinto (RIO) and BlueScope to work together to explore low-carbon steelmaking pathways

  • U.S. Steel (X) announces $300 mln stock repurchase program; increases quarterly dividend to $0.05/share from $0.01/share

  • Wintrust Fin's (WTFC) Board of Directors authorized the repurchase of up to $200 mln of the Company's common stock


  • M&A:

  • Activision Blizzard's (ATVI) division Activision announces the acquisition of Barcelona-based mobile game developer Digital Legends; financial terms not disclosed

  • BEST Inc. (BEST) agrees to sell its express business in China at ~RMB6.8 billion (US$1.1 billion) enterprise value

  • Coca-Cola (KO) near deal to purchase controlling stake in BodyArmor for $8 bln, according to Bloomberg

  • Ecolab (ECL) announces agreement to acquire Purolite for approx. $3.7 bln in cash

  • Lear (LEA) acquires Kongsberg Automotive's Interior Comfort Systems Business unit

  • Tailwind Two Acquisition Corp. (TWNT) agrees to combine with Terran Orbital

  • World Fuel Services (INT) announces that a wholly-owned subsidiary of the company has signed a definitive agreement to acquire Flyers Energy Group from the Dwelle family

  • Zendesk (ZEN) and Momentive (MNTV) have entered into a definitive agreement under which Zendesk will acquire Momentive, including its SurveyMonkey platform


  • Syndicate:

  • 4D Molecular Therapeutics (FDMT) prices offering of 4.75 mln shares of common stock at $25.00 per share

  • Enjoy Technology (ENJY) files for 15,660,417 share common stock offering; also files for 89,627,117 share common stock offering by selling shareholders

  • Full House Resorts (FLL) files for $500 mln mixed securities shelf offering


  • 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.


  • Priced to Trade:

  • Udemy (Nasdaq: UDMY): The operator of a two-sided marketplace where instructors develop content to meet learner demand priced its 14.5 M share IPO at $29, the high end of the $27-$29 expected range.



Gapping Up/Down

  • Gapping up:

  • ATEN +9.7%, VCRA +8.7%, XELA +8.3%, TWNT +8.1%, X +7.8%, TEAM +7.8%, RILY +6.2%, FTDR +5.1%, NATI +4.7%, ACHC +3.6%, HLI +3.6%, AVT +3.2%, CWST +3.1%, MERC +2.6%, NXGN +2.5%, RMD +2.4%, PTCT +2.4%, OPK +2.2%, OYST +1.9%, IMMP +1.9%, HIG +1.7%, AX +1.7%, TFII +1.6%, NEU +1.5%, MSTR +1.5%, BIO +1.4%, HUN +1.4%, ECL +1.3%, SGEN +1.2%, CRI +1.1%, BCC +1%, ASPN +0.9%, FE +0.8%


  • Gapping down:

  • ZEN -20.2%, MNTV -14.7%, WDC -11.2%, POLY -10.9%, FDMT -10.5%, WERN -7.5%, DVA -6.3%, COHU -5.5%, AMZN -4.9%, SBUX -4.8%, FLR -4.7%, NWG -4.5%, MPWR -4.3%, POWI -4.2%, AAPL -3.9%, MGI -3.6%, TEX -3.1%, SYK -3%, ETSY -2.8%, EIG -2.4%, AON -2.4%, HVT -2.3%, LMAT -2.2%, STX -2.1%, ATR -2%, CRUS -1.9%, MU -1.7%, EB -1.7%, MESO -1.7%, GILD -1.6%, MHK -1.4%, AVGO -1.3%, CVA -1.2%, COLM -1.2%, KNSL -1.2%, FTS -1.2%, SWKS -1.1%, FTAI -1.1%, AUY -0.9%, VALE -0.9%, LITE -0.8%


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

  • Upgrades

  • Alteryx (AYX) upgraded to Neutral from Underweight at JP Morgan; tgt $75

  • argenx (ARGX) upgraded to Buy from Neutral at Guggenheim; tgt $330

  • Brunswick (BC) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt $115

  • Caterpillar (CAT) upgraded to Buy from Neutral at UBS; tgt raised to $235

  • Check Point Software (CHKP) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $136

  • Driven Brands (DRVN) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $39

  • Houlihan Lokey (HLI) upgraded to Mkt Perform from Underperform at Keefe Bruyette; tgt raised to $110

  • Live Oak Bancshares (LOB) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $95

  • Royalty Pharma (RPRX) upgraded to Buy from Neutral at Citigroup; tgt $50


  • Downgrades:

  • Altria (MO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $47

  • Annaly Capital Mgmt (NLY) downgraded to Equal Weight from Overweight at Barclays; tgt $9

  • BrightSphere Investment Group (BSIG) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $32

  • EQT Corp. (EQT) upgraded to Overweight from Neutral at JP Morgan; tgt $31

  • Frontdoor (FTDR) downgraded to Neutral from Overweight at JP Morgan; tgt $45

  • Hershey Foods (HSY) downgraded to Neutral from Buy at Citigroup; tgt lowered to $190

  • Northrop Grumman (NOC) downgraded to Hold from Buy at Vertical Research

  • Plains All American (PAA) downgraded to Neutral from Buy at Seaport Research Partners

  • Plains GP (PAGP) downgraded to Neutral from Buy at Seaport Research Partners

  • Starbucks (SBUX) downgraded to Hold from Buy at Stifel; tgt lowered to $112


  • Others:

  • ACV Auctions (ACVA) initiated with a Buy at Truist; tgt $30

  • Apple (AAPL) assumed with a Neutral at Credit Suisse; tgt $150

  • Bill.com (BILL) initiated with an In-line at Evercore ISI; tgt $300

  • COMPASS Pathways (CMPS) initiated with an Outperform at Oppenheimer; tgt $50

  • CS Disco (LAW) initiated with an Overweight at Piper Sandler; tgt $61

  • Gladstone Land (LAND) initiated with a Perform at Oppenheimer; tgt $24

  • Humacyte (HUMA) initiated with an Outperform at Cowen; tgt $17

  • IBM (IBM) assumed with an Outperform at Credit Suisse; tgt $172

  • Sigilon Therapeutics (SGTX) initiated with a Buy at BTIG Research; tgt $14


Upcoming Events:

  • Econ Data:

  • 08:30 ET: Personal Income for Sep (Briefing.com Consensus -0.2%; Prior 0.2%)

  • 08:30 ET: Personal Spending for Sep (Briefing.com Consensus 0.4%; Prior 0.8%)

  • 08:30 ET: PCE Prices for Sep (Briefing.com Consensus 0.3%; Prior 0.4%)

  • 08:30 ET: PCE Prices - Core for Sep (Briefing.com Consensus 0.2%; Prior 0.3%)

  • 08:30 ET: Employment Cost Index for Q3 (Briefing.com Consensus 0.8%; Prior 0.7%)

  • 09:45 ET: Chicago PMI for Oct (Briefing.com Consensus 63.1; Prior 64.7)

  • 10:00 ET: Univ. of Michigan Consumer Sentiment - Final for Oct (Briefing.com Consensus 71.4; Prior 71.4)


  • 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 +0.3%, Hang Seng -0.7%, Shanghai Composite +0.8%

Equity indices in the Asia-Pacific region ended the week on a mixed note. Developer Evergrande made another interest payment just ahead of today's expiration of a grace period that would have triggered cross defaults on all of the company's international obligations. The grace period on another missed payment will expire on November 11. There were reports of diesel shortages at gas stations in China. There was more speculation about the Reserve Bank of Australia ending its yield curve control policy at next week's meeting as the country's 3-yr yield remains above target.

  • In economic data:

  • Japan's September Industrial Production -5.4% m/m (expected -3.2%; last -3.6%) and September Housing Starts 4.3% yr/yr (expected 7.5%; last 7.5%). September Unemployment Rate 2.8%, as expected (last 2.8%). October Tokyo CPI 0.1% yr/yr (last 0.3%) and Tokyo Core CPI 0.1% yr/yr (expected 0.3%; last 0.1%). October Household Confidence 39.2 (last 37.8) o South Korea's September Industrial Production -0.8% m/m (expected -0.3%; last -0.7%); -1.8% yr/yr (expected 1.4%; last 9.7%). September Retail Sales 2.5% m/m (last -0.8%) and November Manufacturing BSI Index 87 (last 92)

  • Singapore's Q3 Unemployment Rate 2.6% (last 2.7%). Q4 Business Expectations 16.00 (last 20.00)

  • Australia's September Retail Sales 1.3% m/m (expected 0.2%; last -1.7%). September Private Sector Credit 0.6% m/m, as expected (last 0.6%). Q3 PPI 1.1% qtr/qtr (last 0.7%); 2.9% yr/yr (last 2.2%)


---Equity Markets---

  • Japan's Nikkei: +0.3% (+0.3% for the week)

  • Hong Kong's Hang Seng: -0.7% (-2.9% for the week)

  • China's Shanghai Composite: +0.8% (-1.0% for the week)

  • India's Sensex: -1.1% (-2.5% for the week)

  • South Korea's Kospi: -1.3% (-1.2% for the week)

  • Australia's ASX All Ordinaries: -1.3% (-1.1% for the week)

---FX---

  • USD/JPY: +0.2% to 113.74

  • USD/CNH: +0.1% to 6.3928

  • USD/INR: +0.1% to 74.87

Europe: DAX -0.8%, FTSE -0.3%, CAC -0.4%

Major European indices trade in the red. Eurozone's CPI increased at its fastest yr/yr (4.1%) pace since mid-2008 in the October reading. Policymakers at the European Central Bank are reportedly divided over their view of knock-on effects from inflation. British Prime Minister Johnson summoned the French ambassador over the ongoing fishing dispute. The G-20 summit is taking place in Rome this weekend.

  • In economic data:

  • Eurozone's October CPI 0.8% m/m (last 0.5%); 4.1% yr/yr (expected 3.7%; last 3.4%). Flash Q3 GDP 2.2% qtr/qtr (last 2.1%); 3.7% yr/yr (last 14.2%)

  • Germany's flash Q3 GDP 1.8% qtr/qtr (expected 2.2%; last 1.9%); 2.5% yr/yr (expected 2.4%; last 10.3%)

  • U.K.'s September Mortgage Lending GBP9.52 bln (expected GBP6.00 bln; last GBP4.44 bln)

  • France's September Consumer Spending -0.2% m/m (expected 0.3%; last 0.7%). Q3 GDP 3.0% qtr/qtr (expected 2.1%; last 1.3%). October CPI 0.4% m/m (last -0.2%); 2.6% yr/yr (last 2.2%)

  • Italy's flash Q3 GDP 2.6% (expected 2.0%; last 2.7%); 3.8% yr/yr (expected 3.0%; last 17.0%). October CPI 0.6% m/m (expected 0.4%; last -0.2%); 2.9% yr/yr (expected 2.6%; last 2.5%)

  • Spain's flash Q3 GDP 2.0% qtr/qtr (expected 2.7%; last 1.1%); 2.7% yr/yr (expected 3.5%; last 17.5%). September Retail Sales -0.1% yr/yr (last -0.7%)

  • Swiss October KOF Leading Indicators 110.7 (expected 108.2; last 111.0)

---Equity Markets---

  • STOXX Europe 600: -0.5% (+0.2% week-to-date)

  • Germany's DAX: -0.8% (+0.2% week-to-date)

  • U.K.'s FTSE 100: -0.3% (+0.3% week-to-date)

  • France's CAC 40: -0.4% (+0.7% week-to-date)

  • Italy's FTSE MIB: -0.5% (+0.7% week-to-date)

  • Spain's IBEX 35: -0.1% (+1.3% week-to-date)

---FX---

  • EUR/USD: -0.3% to 1.1652

  • GBP/USD: UNCH at 1.3794

  • USD/CHF: UNCH at 0.9116


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