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31/10/23 Briefing


The S&P 500 futures are up 10 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 17 points and are trading 0.1% above fair value. The Dow Jones Industrial Average futures are up 59 points and are trading 0.2% above fair value.

Equity futures indicate a higher open, building on yesterday's gains following another heavy batch of earnings that was met with mixed reactions. A drop in Treasury yields has contributed to the positive bias. The 2-yr note yield is down three basis points to 5.02% and the 10-yr note yield is down six basis points to 4.82%.

The Bank of Japan announced it will now use the 1.00% level in the 10-yr JGB as a refence point rather than a limit, while making no headline changes to its policy stance. This approach has been viewed as less hawkish than feared, which has tempered some concerns about an unwinding of carry trades.

China's PMIs were relatively disappointing while the eurozone's flash GDP for Q3 showed a slight contraction against expectations.

Notable data for the U.S. today includes the Employment Cost Index for Q3 at 8:30 a.m. ET and Consumer Confidence Index at 10:00 a.m. ET.

In corporate news:

  • Caterpillar (CAT 229.99, -12.17, -5.0%): beats by $0.72, beats on revs; sees Q4 sales slightly higher than yr-ago period

  • V.F. Corp (VFC 16.00, -1.12, -6.5%): misses by $0.02, reports revs in-line, withdraws FY24 earnings and revenue guidance, lowers free cash flow guidance

  • Pinterest (PINS 29.27, +4.17, +16.6%): beats by $0.07, beats on revs; guides Q4 revs in-line

  • JetBlue Airways (JBLU 3.93, -0.27, -6.4%): misses by $0.14, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Sarepta Therapeutics (SPRT 58.38, -49.27, -45.8%): falling sharply on report that ELEVIDYS-treated patients improved 2.6 points on their North Star Ambulatory Assessment (NSAA) total score 52 weeks after treatment compared to 1.9 points in placebo-treated patients. The difference of 0.65-points between treated and placebo groups did not reach statistical significance (n=125; p=0.24)

  • BP (BP 37.00, -1.35, -3.5%): misses by $0.25, misses on revs

  • Arista Networks (ANET 193.25, +17.53, +10.0%): beats by $0.25, beats on revs; guides Q4 revs above consensus; upgraded to Overweight from Equal-Weight at Morgan Stanley

  • Lattice Semi (LSCC 57.04, -10.25, -15.2%): beats by $0.01, reports revs in-line; guides Q4 revs below consensus

  • Forward Air (FWRD 62.90, -8.08, -11.4%): misses by $0.13, misses on revs; guides Q4 EPS below consensus, revs in-line; cites continued weak demand for intermodal and truckload brokerage services

  • Eaton (ETN 205.54, +7.76, +3.9%): beats by $0.13, reports revs in-line; guides Q4 EPS above consensus

  • Pfizer (PFE 30.50, -0.05, -0.2%): misses by $0.09, reports revs in-line; guides FY23 EPS below consensus, revs in-line

  • Apple (AAPL 169.56, -0.73, -0.4%): unveils the new MacBook Pro; unveils M3, M3 Pro, and M3 Max, the most advanced chips for a personal compute

  • Zebra Tech (ZBRA 220.00, +10.23, +4.9%): beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line; increases cost saving forecast

  • Amgen (AMGN 261.87, -1.32, -0.5%): beats by $0.28, reports revs in-line; guides FY23 EPS in-line, revs above consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -1.7%, China's Shanghai Composite: -0.1%, India's Sensex: -0.4%, South Korea's Kospi: -1.4%, Australia's ASX All Ordinaries: +0.1%.

    • In economic data:

      • China's October Manufacturing PMI 49.5 (expected 50.2; last 50.2) and October Non-Manufacturing PMI 50.6 (expected 51.8; last 51.7)

      • Japan's September Industrial Production 0.2% m/m (expected 2.5%; last -0.7%). September Retail Sales 5.8% yr/yr (expected 5.9%; last 7.0%). September jobs/applications ratio 1.29 (expected 1.30; last 1.29), and September Unemployment Rate 2.6%, as expected (last 2.7%). September Housing Starts -6.8% yr/yr (expected -4.7%; last -9.4%) and September Construction Orders -3.0% yr/yr (last -4.3%). October Household Confidence 35.7 (expected 35.1; last 35.2)

      • South Korea's September Industrial Production 1.8% m/m (expected -0.9%; last 5.2%); 3.0% yr/yr (expected 0.0%; last -0.7%. September Retail Sales 0.2% m/m (last -0.3%)

      • Hong Kong's Q3 GDP 0.1% qtr/qtr (expected 1.4%; last -1.3%); 4.1% yr/yr (expected 5.2%; last 1.5%)

      • Singapore's Q3 Business Expectations 7.00 (last 6.00)

      • Australia's September Housing Credit 0.4% m/m (last 0.3%) and Private Sector Credit 0.5% m/m (expected 0.3%; last 0.4%)

      • New Zealand's September Building Consents -4.7% m/m (last -7.0%). October ANZ Business Confidence 23.4 (last 1.5)


  • In news:

    • China's official Manufacturing PMI returned into contraction in the October reading while non-Manufacturing PMI showed the slowest pace of expansion in ten months.

    • The Bank of Japan made no headline changes to its policy stance, but the flexibility of its yield curve control policy will be increased. The central bank will now use the 1.00% level in the 10-yr JGB as a refence point rather than a limit. The central bank is not changing its November bond purchase plans. Samsung reported strong results for the quarter.

    • Chinese officials wrapped up a two-day National Financial Work Conference.



  • Major European indices trade in positive territory. STOXX Europe 600: +0.7%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +1.1%, Italy's FTSE MIB: +1.6%, Spain's IBEX 35: +0.8%.

    • In economic data:

      • Eurozone's October CPI 0.1% m/m (expected 0.3%; last 0.3%); 2.9% yr/yr (expected 3.1%; last 4.3%). Core CPI 0.2% m/m (last 0.2%); 4.2% yr/yr, as expected (last 4.5%). Flash Q3 GDP -0.1% qtr/qtr (expected 0.0%; last 0.1%); 0.1% yr/yr (expected 0.2%; last 0.5%)

      • Germany's September Retail Sales -0.8% m/m (expected 0.5%; last -1.2%); -4.3% yr/yr (expected -4.0%; last -2.3%). September Import Price Index 1.6% m/m (expected 0.7%; last 0.4%); -14.3% yr/yr (expected -15.3%; last -16.4%)

      • France's October CPI 0.1% m/m (expected 0.2%; last -0.5%); 4.0% yr/yr, as expected (last 4.9%). September PPI 0.7% m/m (last 0.7%); -1.7% yr/yr (last -1.4%). Flash Q3 GDP 0.1% qtr/qtr, as expected (last 0.6%); 0.7% yr/yr (last 1.1%). September Consumer Spending 0.2% m/m (expected 0.4%; last -0.6%)

      • Italy's flash Q3 GDP 0.0% qtr/qtr (expected 0.1%; last -0.4%); 0.0% yr/yr (expected 0.1%; last 0.3%). October CPI -0.1% m/m (expected 0.2%; last 0.2%); 1.8% yr/yr (expected 0.3%; last 5.3%)

      • Spain's August Current Account surplus EUR4.19 bln (last surplus of EUR4.27 bln)

      • Swiss September Retail Sales -0.6% yr/yr (expected -1.9%; last -2.2%)


  • In news:

    • Eurozone's flash GDP for Q3 showed a slight contraction against expectations for no change while flash October CPI showed a deceleration in the yr/yr rate to 2.9% from 4.3%.

    • BP missed earnings and revenue expectations for Q3 while Stellantis beat revenue expectations and accelerated its buyback forecast timeline.

    • Chemical company BASF announced additional cost saving plans.



U.S. equity futures:

  • S&P 500 Futures +10 @ 4,196

  • DJIA Futures: +73 @ 33,090

  • Nasdaq 100 Futures: +14 @ 14,430

Overseas:

  • Europe: DAX +0.7%, FTSE +0.6%, CAC +1.1%

  • Asia: Nikkei +0.5%, Hang Seng -1.7%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil +0.66 @ 82.97

  • Nat Gas +0.047 @ 3.399

  • Gold +3.20 @ 2008.80

  • Silver -0.009 @ 23.387

  • Copper +0.0098 @ 3.6683

Earnings/Guidance:

  • Addus HomeCare ( ADUS ) beats by $0.07, beats on revs

  • AGCO Corp ( AGCO ) beats by $0.66, reports revs in-line; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Allegion ( ALLE ) beats by $0.21, reports revs in-line; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • AmBev ( ABEV ) beats by BRL0.03; misses on revs

  • Ametek ( AME ) beats by $0.06, misses on revs; guides Q4 EPS in-line, revs in-line

  • Amgen ( AMGN ) beats by $0.28, reports revs in-line; guides FY23 EPS in-line, revs above consensus

  • Amkor ( AMKR ) beats by $0.01, beats on revs; guides Q4 EPS, revs below estimate

  • Anheuser-Busch InBev ( BUD ) beats by $0.02, reports revs in-line

  • Arch Capital ( ACGL ) beats by $0.70, gross premiums written increased 9.7%

  • Ardelyx ( ARDX ) reports Q3 (Sep) results, beats on revs

  • Ares Management ( ARES ) misses by $0.04, misses on revs

  • argenx ( ARGX ) beats by $0.20; beats on revs

  • Arista Networks ( ANET ) beats by $0.25, beats on revs; guides Q4 revs above consensus

  • Axonics Modulation ( ANXN ) beats by $0.13, beats on revs; raises FY23 revs outlook

  • Bio-Techne ( TECH ) misses by $0.02, misses on revs

  • Boise Cascade ( BCC ) beats by $0.16, reports revs in-line

  • BP ( BP ) misses by $0.25, misses on revs

  • Brixmor Property ( BRX ) reports FFO in-line, revs in-line; guides FY23 FFO in-line

  • Buenaventura SA ( BVN ) reports Q3 results; beats on revs

  • Cameco ( CCJ ) beats by $0.23, beats on revs

  • Capital Southwest Corp. ( CSWC ) beats by $0.04, beats on revs

  • Caterpillar ( CAT ) beats by $0.72, beats on revs

  • Chegg ( CHGG ) beats by $0.01, beats on revs; guides Q4 revs in-line

  • Cognex ( CGNX ) beats by $0.02, beats on revs; guides Q4 revs below consensus

  • Comstock ( CRK ) misses by $0.01, beats on revs

  • Credit Acceptance Corp. ( CACC ) misses by $0.28, misses on revs

  • Cushman & Wakefield ( CWK ) reports EPS in-line, beats on revs

  • CVR Energy ( CVI ) misses by $0.04, beats on revs; declares special dividend of $1.50/share

  • Denny's ( DENN ) beats by $0.02, misses on revs, comps of +1.8%; lowers FY23 comp guidance

  • Dorman Products ( DORM ) misses by $0.19, reports revs in-line; lowers FY23 guidance

  • Douglas Dynamics ( PLOW ) misses by $0.22, misses on revs; lowers FY23 EPS and revs guidance

  • Easterly Government Properties ( DEA ) reports FFO in-line, beats on revs; guides FY23 FFO in-line

  • Eaton ( ETN ) beats by $0.13, reports revs in-line; guides Q4 EPS above consensus

  • Enpro Industries ( NPO ) reports EPS in-line, misses on revs; guides FY23 EPS in-line

  • Enterprise Products ( EPD ) misses by $0.04, beats on revs

  • Equitrans Midstream ( ETRN ) beats by $0.20, beats on revs

  • FMC Corp ( FMC ) misses by $0.10, misses on revs; lowers FY23 EPS, revs outlook

  • Forward Air ( FWRD ) misses by $0.13, misses on revs; guides Q4 EPS below consensus, revs in-line; cites continued weak demand for intermodal and truckload brokerage services

  • GE HealthCare ( GEHC ) beats by $0.09, reports revs in-line; guides FY23 EPS in-line

  • Global Payments ( GPN ) beats by $0.04, beats on revs; raises FY23 EPS in-line, revs in-line

  • Granite Constr ( GVA ) beats by $0.17, revenue inline, guides FY23 revenue inline

  • Graphic Packaging ( GPK ) beats by $0.03, misses on revs; guides FY23 EPS above consensus, revs below consensus

  • Green Plains ( GPRE ) reports Q3 (Sep) results, beats on revs

  • Harmonic ( HLIT ) misses by $0.01, misses on revs; cuts FY23 EPS, revs guidance

  • Harmony Biosciences ( HRMY ) reports Q3 (Sep) results, beats on revs; announces new $200 mln share repurchase program

  • Hayward Holdings ( HAYW ) beats by $0.01, beats on revs; guides FY23 revs below consensus

  • Heartland Financial ( HTLF ) beats by $0.03

  • HNI ( HNI ) beats by $0.30, reports revs in-line

  • Hubbell ( HUBB ) misses by $0.11, misses on revs; raises FY23 EPS in-line, revs below consensus

  • Incyte ( INCY ) misses by $0.10, misses on revs

  • Independence Realty Trust ( IRT ) beats by $0.01, reports revs in-line; guides Q4 below consensus

  • Instructure ( INST ) beats by $0.05, beats on revs; guides Q4 revs in-line, announces CFO departure

  • Intl Game Tech. PLC ( IGT ) beats by $0.08, beats on revs; guides Q4 revs above consensus

  • JetBlue Airways ( JBLU ) misses by $0.14, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Kemper ( KMPR ) misses by $0.07, beats on revs

  • Kforce ( KFRC ) beats by $0.13, beats on revs; guides Q4 EPS in-line, revs above consensus

  • Kite Realty ( KRG ) beats by $0.03, beats on revs; guides FY23 FFO above consensus

  • Lattice Semi ( LSCC ) beats by $0.01, reports revs in-line; guides Q4 revs below consensus

  • Leggett & Platt ( LEG ) misses by $0.04, misses on revs; lowers FY23 EPS and revenue guidance below consensus

  • Leidos ( LDOS ) beats by $0.36, beats on revs; raises FY23 EPS above consensus, revs in-line

  • LGI Homes ( LGIH ) beats by $0.66, misses on revs

  • LXP Industrial Trust ( LXP ) reports FFO in-line, revs in-line; guides FY23 FFO in-line

  • Macerich ( MAC ) reports FFO in-line, beats on revs; reaffirms FY23 FFO guidance

  • Malibu Boats ( MBUU ) beats by $0.25, beats on revs

  • Marathon Petroleum ( MPC ) beats by $0.39, beats on revs

  • Matson ( MATX ) beats by $0.32, beats on revs (two ests); expects Q4 consolidated operating income to be higher than 1Q23

  • Monolithic Power ( MPWR ) beats by $0.02, reports revs in-line; guides Q4 revs in-line; announces $640 mln for share repurchases

  • MPLX LP ( MPLX ) misses by $0.08, beats on revs

  • Neurocrine Biosciences ( NBIX ) reports Q3 results, beats on revs

  • ONE Gas ( OGS ) beats by $0.03, misses on revs; sees Q1 EPS in-line

  • Otter Tail Power ( OTTR ) beats by $0.57, beats on revs; raises FY23 EPS above consensus

  • Pacific Biosciences ( PACB ) beats by $0.02, beats on revs

  • Perficient ( PRFT ) reports EPS in-line, revs in-line; guides Q4 EPS in-line, revs in-line

  • PetMed Express ( PETS ) misses by $0.09, misses on revs; suspends quarterly dividend

  • Pfizer (PFE) misses by $0.09, reports revs in-line; guides FY23 EPS below consensus, revs in-line

  • Piedmont Office Realty Trust ( PDM ) reports FFO in-line

  • Pinterest ( PINS ) beats by $0.07, beats on revs; guides Q4 revs in-line

  • PJT Partners ( PJT ) beats by $0.32, beats on revs

  • PotlatchDeltic ( PCH ) misses by $0.18, reports revs in-line

  • PriceSmart ( PSMT ) misses by $0.20 (two ests), beats on revs (single est), comps of +8.8%

  • Public Service ( PEG ) beats by $0.10, beats on revs; reaffirms FY23 EPS guidance

  • Public Storage ( PSA ) beats by $0.39, reports revs in-line; guides FY23 FFO in-line

  • Pulmonx ( LUNG ) beats by $0.04, beats on revs; raises FY23 revs outlook

  • Qiagen ( QGEN ) beats by $0.02, beats on revs; reaffirms FY23 EPS, revs guidance

  • Rambus ( RMBS ) reports Q3 (Sep) results, misses on revs

  • Ranpak ( PACK ) beats by $0.03, misses on revs

  • Redwood Trust ( RWT ) reports Q3 results

  • Repligen ( RGEN ) beats by $0.07, reports revs in-line; lowers FY23 guidance

  • Ryerson ( RYI ) beats dual estimate handily, reports revs in-line; guides for Q4; raises dividend by 1.4%

  • Samsung ( SSNLF ) reports Q3 results; revs in-line with pre-announcement

  • Sensata Tech ( ST ) beats by $0.01, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

  • Shutterstock ( SSTK ) beats by $0.45, beats on revs; raises FY23 EPS above consensus, revs above consensus

  • Simon Properties ( SPG ) beats by $0.23, beats on revs; guides Q4 FFO above consensus, increases quarterly dividend

  • Sirius XM (SIRI) beats by $0.01, reports revs in-line; reaffirms FY23 revs guidance

  • SITE Centers ( SITC ) beats by $0.05, beats on revs; guides FY23 OFFO above consensus

  • Stellantis ( STLA 3.25% ) reports Q3 trading statement; beats on revs

  • Stevanato Group S.p.A. ( STVN ) beats by 0.01, misses on revs, reaffirms FY23 guidance

  • Tenet Healthcare ( THC ) beats by $0.24, reports revs in-line; guides Q4 EPS below consensus, revs in-line

  • The Vita Coco Company ( COCO ) beats by $0.02, reports revs in-line; raises FY23 revenue and adjusted EBITDA guidance; approved new $40 mln repurchase program

  • TopBuild ( BLD ) beats by $0.86, beats on revs; raises FY23 revs in-line

  • Transocean ( RIG ) misses by $0.12, reports revs in-line

  • Trex ( TREX ) beats by $0.07, beats on revs; guides Q4 revs in-line

  • Varonis Systems ( VRNS ) beats by $0.06, misses on revs; guides Q4 EPS above consensus, revs in-line

  • V.F. Corp ( VFC ) misses by $0.02, reports revs in-line, withdraws FY24 earnings and revenue guidance, lowers free cash flow guidance

  • Vornado Rlty Trust ( VNO ) reports FFO in-line, revs in-line

  • WEC Energy Group ( WEC ) beats by $0.09, misses on revs; reaffirms FY23 EPS guidance

  • Welltower ( WELL ) beats by $0.03, beats on revs; increases FY23 FFO guidance

  • Wolfspeed ( WOLF ) beats by $0.14, reports revs in-line; guides Q2 EPS in-line, revs in-line

  • Workiva ( WK ) reports Q3 (Sep) results, beats on revs; guides Q4 EPS above consensus, revs in-line

  • Xylem ( XYL ) beats by $0.10, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Zebra Tech ( ZBRA ) beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line; increases cost saving forecast

  • ZoomInfo ( ZI ) beats by $0.01, beats on revs; guides Q4 EPS in-line, revs in-line

News:

  • The Biden administration has become more critical of Israel's response to the attacks from Hamas, according to the New York Times

  • House Rules Committee will vote on $14.3 bln Israel aid package Wednesday. It will be paid for with $14.3 bln in IRS cuts. Senate Democrats want to pass boarder package that includes Ukraine funding, according to The Hill

  • Bank of Japan will maintain the target level of 10-year Japanese government bond yields at around 0%, it will conduct yield curve control with the upper bound of 1.0% for these yields

  • White House announces new actions to protect retirement security by cracking down on "junk fees" in retirement investment advice

  • Amazon ( AMZN ) announces new 198 megawatt (MW) wind farm in Osmanabad, Maharashtra, India

  • Apple ( AAPL 0.23% ) unveils the new MacBook Pro; unveils M3, M3 Pro, and M3 Max, the most advanced chips for a personal compute

  • Beam Therapeutics ( BEAM ): Eli Lilly (LLY) to acquire certain rights under BEAM's collaboration agreement with Verve Therapeutics (VERV)

  • BHP Group ( BHP ) approves CAD6.4 billion for stage two of the Jansen potash project

  • BlackBerry ( BB ) announces John Chen to retire as Executive Chair and CEO effective Nov 4; Richard Lynch appointed Board Chair and interim CEO

  • CRISPR Therapeutics ( CRSP ) halted today; FDA advisory committee to review Biologics License Application (BLA) for Exagamglogene Autotemcel (exa-cel) in Sickle Cell Disease

  • Ellomay Capital ( ELLO ) provided a status update concerning its operations in light of the war declared by the Israeli government against Hamas and the missile attacks and other hostilities in parts of Israel

  • Galapagos NV ( GLPG ) concludes strategic evaluation and signs letter of intent to transfer Jyseleca business to Alfasigma

  • General Motors ( GM 2.12% ) confirms it has reached tentative labor deal with UAW

  • Google ( GOOG ) defended Apple (AAPL) search partnership at antitrust trial, according to the Wall Street Journal

  • Leonardo DRS ( DRS ) awarded a contract to produce a prototype of the next-generation Joint Effects Targeting System II (JETS II) multi-sensor targeting technology for Forward Observers

  • LianBio ( LIAN ) announced topline results from the Phase 3 LIBRA clinical trial evaluating TP-03 in Chinese patients with Demodex blepharitis

  • Lockheed Martin ( LMT ) awarded $996 mln U.S. Air Force contract

  • Logitech Int'l SA ( LOGI ) appoints Hanneke Faber as CEO

  • Nvidia ( NVDA ) has $5 bln of China orders in limbo following US restrictions, according to the Wall Street Journal

  • Sarepta Therapeutics ( SRPT ) announced topline results from EMBARK (Study SRP-9001-301) in patients with Duchenne muscular dystrophy

  • Sensata Tech ( ST ) announces that Brian K. Roberts has been named as Sensata's new CFO, beginning immediately following the filing of the 10-Q for the third quarter 2023 in early November

  • SITE Centers ( SITC ) spinning off its Convenience portfolio; expects to pay special dividend of at least $0.10/share prior to January 31, 2024

  • SolarWinds ( SWI ): SEC charges SolarWinds and Chief Information Security Officer with fraud, internal control failures

  • Star Bulk Carriers ( SBLK ) announces the repurchase of an additional 10 million of its common shares from Oaktree

  • State Street ( STT ) COO and head of Investment Services Louis D. Maiuri to retire by early 2024; succeeded by Mostapha Tahiri; Chairman and CEO Ron O'Hanley assuming office of the president

  • Theravance Biopharma ( TBPH ) enter into settlement agreement with Teva Pharmaceuticals (TEVA) relating to Theravance and Mylan's YUPELRI (revefenacin) inhalation solution

  • Ultra Clean Holdings ( ULCC ) COO Vijay Chinnasami will be leaving as of December 31, 2023

  • WeWork ( WE ) details Forbearance Agreement

  • XOMA ( XOMA 0.17% ) has earned a $5 ml milestone related to the U.S. FDA acceptance of Day One Biopharmaceuticals' New Drug Application for tovorafenib as a monotherapy for relapsed or progressive pediatric low-grade glioma

  • Zynex ( ZYXI ) to evaluate potential strategic alternatives

M&A:

  • IDEX Corp ( IEX ) to acquire STC Material Solutions for $206 mln in cash

  • Hubbell ( HUBB ) to Acquire Systems Control for $1.1 bln in cash

  • Instructure ( INST ) signs definitive agreement to acquire Parchment for ~$835 million

  • MRC Global ( MRC ) is exploring a sale, according to Bloomberg

  • Ryan Specialty Group ( RYAN ) to acquire AccuRisk Holdings, LLC; generated approximately $25 mln in sales for the year ending July 31, 2023; expected to close in December; financial details not disclosed

  • Vodafone PLC ( VOD 1.55% ) announces sale of Vodafone Spain

Syndicate:

  • Geo Group ( GEO ) files mixed shelf securities offering

  • Imperial Oil ( IMO ) announces terms of its substantial issuer bid for up to CAD1,500,000,000 and receipt of exemptive relief

  • New Found Gold Corp. ( NFGC ) Announces C$56 Million Bought Deal Financing

  • Provident Finl ( PFS ) files mixed shelf securites offering

  • Sarepta Therapeutics ( SRPT ) shares halted, news pending

  • Stanley Black & Decker ( SWK ) files mixed shelf securities offering

  • Western Digital ( WDC ) commences $1.3 bln offering of convertible senior notes due 2028

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

    • BEAM +33.4%, PINS +17.5%, WOLF +14%, LUNG +13.9%, RYI +11.9%, VERV +11.6%, ANET +9.9%, TREX +8.9%, MPWR +5.9%, KMPR +5.4%, OTTR +5%, QGEN +3.9%, BUD +3.8%, ACGL +3.5%, AGNC +3.3%, THC +3%, ARGX +3%, STLA +2.8%, PACB +2.7%, KFRC +2.7%, CWK +2.1%, OGS +2%, SITC +2%, LLY +1.8%, PSA +1.8%, CSWC +1.7%, INST +1.6%, CVI +1.5%, ALLE +1.5%, LOGI +1.2%, IMO +1.2%, EQC +1.2%, SPG +1.1%, TWO +1%


  • Gapping down:

    • PETS -25.3%, LSCC -17.2%, FWRD -11.2%, AMKR -9.9%, HLIT -9%, VFC -7.7%, PLOW -7.4%, KRG -6.7%, CGNX -6.2%, DENN -5.8%, MDXG -5.1%, AESI -5%, WDC -4.7%, CHGG -4.2%, VRNS -4.2%, FMC -4.2%, BP -3.6%, LEG -3.2%, LXP -3.2%, LIAN -2.8%, RWT -2.5%, PSMT -2%, AXNX -2%, HTLF -2%, WK -1.6%, ST -1.6%, ZI -1.5%, ARES -1.4%, STT -1.2%, SWK -1%, BHP -1%, CRK -1%, BCC -1%


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

  • Upgrades

    • Arista Networks (ANET) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $220

    • Asbury Automotive (ABG) upgraded to Overweight from Neutral at JP Morgan; tgt $245

    • AutoNation (AN) upgraded to Neutral from Underweight at JP Morgan; tgt $145

    • Deciphera Pharmaceuticals (DCPH) upgraded to Buy from Hold at JonesTrading; tgt $168

    • Grupo Aeroportuario del Pacifico (PAC) upgraded to Outperform from Underperform at Bradesco BBI; tgt $135

    • Grupo Aeroportuario Del Sureste (ASR) upgraded to Outperform from Neutral at Bradesco BBI; tgt $250

    • L3Harris (LHX) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $216

    • Lincoln Electric (LECO) upgraded to Buy from Neutral at Seaport Research Partners; tgt $210

    • McDonald's (MCD) upgraded to Buy from Hold at DZ Bank; tgt $300

    • Phillips 66 (PSX) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $146

    • SoFi Technologies (SOFI) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $7


  • Downgrades:

    • Clearwater Paper (CLW) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $396

    • Diodes (DIOD) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $70

    • Euronav (EURN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $18.43

    • Lithia Motors (LAD) downgraded to Neutral from Overweight at JP Morgan; tgt $295

    • Sonic Automotive (SAH) downgraded to Underweight from Neutral at JP Morgan; tgt $50

    • Spirit Realty Capital (SRC) downgraded to Mkt Perform from Mkt Outperform at JMP Securities


  • Others:

    • Arlo Technologies (ARLO) initiated with a Buy at ROTH MKM; tgt $13

    • Celsius (CELH) initiated with an Equal-Weight at Morgan Stanley; tgt $190

    • Immunocore (IMCR) initiated with an Outperform at Robert W. Baird; tgt $84


Econ Data:

  • 08:30 ET: Chicago PMI for Oct (Briefing.com Consensus 45.0; Prior 44.1)

  • 08:30 ET: Employment Cost Index for Q3 (Briefing.com Consensus 1.0%; Prior 1.0%)

  • 09:00 ET: FHFA Housing Price Index for Aug (Briefing.com Consensus NA; Prior 0.8%)

  • 09:00 ET: S&P Case-Shiller Home Price Index for Aug (Briefing.com Consensus 0.3%; Prior 0.1%)

  • 10:00 ET: Consumer Confidence for Oct (Briefing.com Consensus 100.0; Prior 103.0)

Earnings:

  • Monday (Oct 30)

    • Morning: CHKP CNA JKS MCD ON RVTY SJW SOFI WDC XPO

    • Afternoon: ADUS AGNC AMKR ACGL ANET AXNX BCC BRX CSWC CHGG CRK CACC CWK DENN PLOW EQC FMC FWRD HLIT PEAK HTLF IRT INST KMPR KFRC LSCC LEG MATX MPWR OGS OTTR PDM PINS PCH PSMT PSA LUNG QGEN RMBS SPG THC RIG TREX VFC VRNS VNO WELL WOLF WK ZI


  • Tuesday (Oct 31)

    • Morning: AGCO ALLE AME AMGN BUD ARES TECH BP CCJ CAT CVLT DORM DEA ETN ECL NPO EPD ETRN BEN GEHC GPN GPK GPRE HRMY HAYW HNI HUBB INCY NSP IGT IPGP JBLU LDOS LGIH LXP MAC MBUU MPC MPLX MSCI NBIX PRFT PFE PJT PEG PACK RGEN ST SSTK SIRI SFM STVN SYY TNC COCO BLD UFPI WEC XYL ZBRA

    • Afternoon: AEIS AMD APAM AIZ BLKB CZR CHK CGNX DEI EQH EQR FSLR FRSH HUN LFUS LTHM LUMN MTCH MTH MTG NE OI OKE PAYC PECO PRO SAFE SKY SON TX UNM VOYA XHR YUMC


  • Wednesday (Nov 1)

    • Morning: ALIT APLS APO ASTE AVNS AVA AXTA BLCO BRY EAT BLDR GOOS CDW CERE CHEF CLH CMCO CNDT CVS DRH DBRG DIN DFIN DRVN DTM DTE DNB DD ETR ESAB EL EXTR FWRG FDP FTDR FYBR GRMN GNRC GSK HUM IDXX IQV JHG KMT KHC LIVN MLM MTRN NMRK NI NCLH PSN PERI PUMP RDWR SMG SITE SHC SPR SXC SUN SPWR TEL TKR TT TRMB TTMI UTHR VRSK W WING YUM

    • Afternoon: EGHT AFL ABNB ALB ALKT ALL ATUS AFG AIG AWK AMWL ANSS ACA ATRC CAR AVT ACLS AXS BALY BMRN BKH BXP BFAM BWXT CHRW CRC CPE CWH CWST CDAY CF CAKE CHRD CWAN CTSH CFLT CORT CLB CCRN CSGS CW DASH DXC ELF EIX EA ECPG ERII ET ETSY EXAS EXEL FARO FSLY FORM FCPT GKOS THG HLF HST HPP NARI INFA IR NGVT IIPR FROG JOBY KW LMAT LMND LNC MGY MTW MRO VAC MCK MLNK MET MSTR MIR MKSI MOD MDLZ MUSA NFG NSA NVRO NMIH NOG NUS NTR KAR PLMR PGRE PK PYPL PRCT PCOR PRU PTC QTWO QRVO QCOM QDEL QNST RDN RPD RYN RRX RELY RNR REZI RVLV RLJ ROKU RSI SRPT SDGR SIGI SCI SIMO SITM SEDG STAA SRI RGR SUM SMCI TNDM TENB TS TYL VSTO HCC WTS WERN WES WMB WSC ZETA ZG


  • Thursday (Nov 2)

    • Morning: FLWS ACIW GOLF ADT WMS AGIO ATI ALGT ALGM ALE ALNY AMR AEP APG APTV AHH ARW AUPH ATHM AVNT BALL BHC BAX BCE BDC BCRX BWA BR CARS COR LNG CWEN COP CROX CMI CYBR DLX XRAY LPG DUK DT LLY ENTG NVRI EPAM ESNT EXC FSS RACE FOXA GEL ROCK GIL HAE DINO HEP HWM HII H IDA INMD NSIT ICE IDCC ITCI IONS IRM ITRI ITT JLL KRTX K KTB KYMR LAMR LANC LNTH DRS MAR MDU MGPI MRNA TAP MUR NTCT DNOW NRG OGE OMCL OGN PCRX PZZA PARA PH PBF MD PTON PENN PGTI PNW PBI PTLO PPL PBH PRMW PWR RCM REGN ROK SPGI SABR SNDR SEE SHAK SHOP SITC SWI SO SRC SBUX SRCL STRA TFX TPX CI THRY TRN UNIT UPBD VIRT WEN WCC WLK ZTS


  • Thursday (Nov 2)

    • Afternoon: TXG ABCL ACAD ACCO LNT ALTR AMH COLD AMN APPN AAPL TEAM BAND BILL BL SQ BKNG BOOT CABO IMOS CHUY CRUS NET COHU CODI ED BAP CUBE CYTK DH DOCN BOOM DKNG DBX LOCO EOG EVH EXPI EXPE FRT FIGS FIVN FND FTNT FOXF FNKO GDDY LOPE GDYN HLIO HTGC HMN HURN ICFI PODD IAS IRTC KN KTOS LYV MTZ MERC MCW MODV MC MNST MSI MP LASR OHI OPEN OEC OUT PLTR PCTY PEN PRDO PXD PLYA KWR QLYS RMAX RDFN REG RGA RPT RYAN SBAC SEM TSLX SWKS SM SWN SPT SPXC STEM SYK SG SNDX TMST TRUP UDMY OLED VTR VIAV VIR VTLE WW YELP


  • Friday (Nov 3)

    • Morning: AMCX AXL ATMU BLMN CAH CBOE CHD CNK CRBG D FLR FLGT IT GTES EAF HR TILE KOP MOG.A NWN OMI DOC PAA PRVA PRLB SSP SRE TDS SLCA USM WPC

    • Afternoon: MCHP


Asia & Europe detail:

Asia: Nikkei +0.5%, Hang Seng -1.7%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. China's official Manufacturing PMI returned into contraction in the October reading while non-Manufacturing PMI showed the slowest pace of expansion in ten months. The Bank of Japan made no headline changes to its policy stance, but the flexibility of its yield curve control policy will be increased. The central bank will now use the 1.00% level in the 10-yr JGB as a refence point rather than a limit. The central bank is not changing its November bond purchase plans. Samsung reported strong results for the quarter. Chinese officials wrapped up a two-day National Financial Work Conference.

  • In economic data:

    • China's October Manufacturing PMI 49.5 (expected 50.2; last 50.2) and October Non-Manufacturing PMI 50.6 (expected 51.8; last 51.7)

    • Japan's September Industrial Production 0.2% m/m (expected 2.5%; last -0.7%). September Retail Sales 5.8% yr/yr (expected 5.9%; last 7.0%). September jobs/applications ratio 1.29 (expected 1.30; last 1.29), and September Unemployment Rate 2.6%, as expected (last 2.7%). September Housing Starts -6.8% yr/yr (expected -4.7%; last -9.4%) and September Construction Orders -3.0% yr/yr (last -4.3%). October Household Confidence 35.7 (expected 35.1; last 35.2)

    • South Korea's September Industrial Production 1.8% m/m (expected -0.9%; last 5.2%); 3.0% yr/yr (expected 0.0%; last -0.7%. September Retail Sales 0.2% m/m (last -0.3%)

    • Hong Kong's Q3 GDP 0.1% qtr/qtr (expected 1.4%; last -1.3%); 4.1% yr/yr (expected 5.2%; last 1.5%)

    • Singapore's Q3 Business Expectations 7.00 (last 6.00)

    • Australia's September Housing Credit 0.4% m/m (last 0.3%) and Private Sector Credit 0.5% m/m (expected 0.3%; last 0.4%)

    • New Zealand's September Building Consents -4.7% m/m (last -7.0%). October ANZ Business Confidence 23.4 (last 1.5)


---Equity Markets---

  • Japan's Nikkei: +0.5%

  • Hong Kong's Hang Seng: -1.7%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: -0.4%

  • South Korea's Kospi: -1.4%

  • Australia's ASX All Ordinaries: +0.1%

---FX---

  • USD/JPY: +1.1% to 150.69

  • USD/CNH: +0.1% to 7.3307

  • USD/INR: UNCH at 83.20

Europe: DAX +0.7%, FTSE +0.6%, CAC +1.1%

Major European indices trade in positive territory. Eurozone's flash GDP for Q3 showed a slight contraction against expectations for no change while flash October CPI showed a deceleration in the yr/yr rate to 2.9% from 4.3%. BP missed earnings and revenue expectations for Q3 while Stellantis beat revenue expectations and accelerated its buyback forecast timeline. Chemical company BASF announced additional cost saving plans.

  • In economic data:

    • Eurozone's October CPI 0.1% m/m (expected 0.3%; last 0.3%); 2.9% yr/yr (expected 3.1%; last 4.3%). Core CPI 0.2% m/m (last 0.2%); 4.2% yr/yr, as expected (last 4.5%). Flash Q3 GDP -0.1% qtr/qtr (expected 0.0%; last 0.1%); 0.1% yr/yr (expected 0.2%; last 0.5%)

    • Germany's September Retail Sales -0.8% m/m (expected 0.5%; last -1.2%); -4.3% yr/yr (expected -4.0%; last -2.3%). September Import Price Index 1.6% m/m (expected 0.7%; last 0.4%); -14.3% yr/yr (expected -15.3%; last -16.4%)

    • France's October CPI 0.1% m/m (expected 0.2%; last -0.5%); 4.0% yr/yr, as expected (last 4.9%). September PPI 0.7% m/m (last 0.7%); -1.7% yr/yr (last -1.4%). Flash Q3 GDP 0.1% qtr/qtr, as expected (last 0.6%); 0.7% yr/yr (last 1.1%). September Consumer Spending 0.2% m/m (expected 0.4%; last -0.6%)

    • Italy's flash Q3 GDP 0.0% qtr/qtr (expected 0.1%; last -0.4%); 0.0% yr/yr (expected 0.1%; last 0.3%). October CPI -0.1% m/m (expected 0.2%; last 0.2%); 1.8% yr/yr (expected 0.3%; last 5.3%)

    • Spain's August Current Account surplus EUR4.19 bln (last surplus of EUR4.27 bln)

    • Swiss September Retail Sales -0.6% yr/yr (expected -1.9%; last -2.2%)


---Equity Markets---

  • STOXX Europe 600: +0.7%

  • Germany's DAX: +0.7%

  • U.K.'s FTSE 100: +0.6%

  • France's CAC 40: +1.1%

  • Italy's FTSE MIB: +1.6%

  • Spain's IBEX 35: +0.8%

---FX---

  • EUR/USD: +0.4% to 1.0658

  • GBP/USD: +0.2% to 1.2186

  • USD/CHF: +0.1% to 0.9025

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