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Writer's pictureSimon Charles Hooper

02/11/21 Briefing

The S&P 500 futures trade nine points, or 0.2%, above fair value after the large-cap indices closed at record highs yesterday. The market is holding steady as the Fed gets set to begin its two-day policy meeting today while investors digest the latest earnings news.

Pfizer (PFE 45.03, +1.39, +3.2%) is up 3% after beating top and bottom-line estimates and raising its FY21 EPS above consensus. Arista Networks (ANET 494.00, +85.43, +20.9%) is another earnings standout with a 21% gain. ANET approved a 4-for-1 stock split and authorized a $1 billion share buyback plan.

DuPont (DD 70.79, -0.44, -0.6%) also provided better-than-expected results, but DD shares are trading modestly lower after the company agreed to acquire Rogers Corp. (ROG 265.05, +56.82, +27.3%) for $5.2 billion, or $277 per share, in cash.

Shares of Tesla (TSLA 1164.00, -44.59, -3.7%), which gained more than 55% over the past month, are cooling down after CEO Elon Musk said no contract with Hertz Global (HTZZ) has been signed yet. Mr. Musk emphasized that Tesla is limited by production, not demand, so the Hertz deal has zero effect on its economics.

U.S. Treasury yields are moving lower, more so on the short-end of the curve. The 2-yr yield is down four basis points to 1.47%, and the 10-yr yield is down three basis points to 1.55%. The U.S. Dollar Index is up 0.1% to 93.94. WTI crude is down 1.0%, or $0.83, to $83.22/bbl.

In U.S. Corporate news:

  • Tesla (TSLA 1164.00, -44.59): -3.7% to cool down from its parabolic rise after CEO Elon Musk said no contract with Hertz Global (HTZZ) has been signed yet.

  • Pfizer (PFE 45.03, +1.39): +3.2% after beating top and bottom-line estimates and raising its FY21 EPS above consensus.

  • Arista Networks (ANET 494.00, +85.43): +20.9% after beating top and bottom-line estimates, guiding Q4 revenue above consensus, and approving a 4-for-1 stock split.

  • Chegg (CHGG 43.00, -19.76): -31.5% after missing top and bottom-line estimates and guiding Q4 revenue below consensus.

  • Rogers Corp. (ROG 265.05, +56.82): +27.3% after agreeing to be acquired by DuPont (DD 70.79, -0.44, -0.6%) for $5.2 billion, or $277 per share, in cash. On a related note, DuPont beat top and bottom-line estimates.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: -0.4% Hong Kong's Hang Seng: -0.2% China's Shanghai Composite: -1.1% India's Sensex: -0.2% South Korea's Kospi: +1.2% Australia's ASX All Ordinaries: -0.6%.

    • In economic data:

      • South Korea's October CPI 0.1% m/m, as expected (last 0.5%); 3.2% yr/yr, as expected (last 2.5%)

      • Hong Kong's September Retail Sales 7.3% m/m (last 11.9%)

      • New Zealand's September Building Consents -1.9% m/m (last 3.8%)


  • In news:

    • Japan is expected to loosen its international travel restrictions this week.

    • South Korea's CPI increased at its fastest pace since early 2012 in the October reading.

    • The Reserve Bank of Australia left its cash rate at 0.10% and scrapped its 3-yr yield target, as expected.

    • Governor Lowe said that a rate hike in 2022 is not warranted by data and the cash rate could remain at current levels into 2024.



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

    • In economic data:

      • Eurozone's October Manufacturing PMI 58.3 (expected 58.5; last 58.3)

      • Germany's October Manufacturing PMI 57.8 (expected 58.2; last 58.4)

      • France's October Manufacturing PMI 53.6 (expected 53.5; last 55.0)

      • Italy's October Manufacturing PMI 61.1 (expected 59.7; last 59.7)

      • Spain's October Manufacturing PMI 57.4 (expected 58.1; last 58.1)

      • Swiss October CPI 0.3% m/m (expected 0.1%; last 0.2%); 1.2% yr/yr (expected 1.1%; last 0.9%). September Retail Sales 2.5% yr/yr (last 0.8%)


  • In news:

    • Officials from France and the U.K. will meet on Thursday in an attempt to solve the ongoing fishing dispute.

    • Final Manufacturing PMI readings for October were mixed but they all remained in expansionary territory.

    • BP reported a larger than expected profit for Q3.



U.S. equity futures:

  • S&P 500 Futures: +1 @ 4,615

  • DJIA Futures: +36 @ 35,950

  • Nasdaq 100 Futures: -26 @ 15,879

Overseas:

  • Europe: DAX +0.5%, FTSE -0.6%, CAC +0.3%

  • Asia: Nikkei -0.4%, Hang Seng -0.2%, Shanghai Composite -1.1%

Commodities:

  • Crude Oil -0.77 @ 83.28

  • Nat Gas +0.174 @ 5.360

  • Gold -3.20 @ 1792.60

  • Silver -0.153 @ 23.920

  • Copper -0.01 @ 4.36

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

    • Addus HomeCare (ADUS) reports EPS in-line, misses on revs

    • ADTRAN (ADTN) misses by $0.09, misses on revs

    • Ameresco (AMRC) beats by $0.08, misses on revs; provides mixed Q4 guidance

    • Arista Networks (ANET) beats by $0.25, beats on revs; guides Q4 revs above consensus; also approves a 4-for-1 stock split

    • Avis Budget (CAR) beats by $4.04, beats on revs

    • Bausch Health (BHC) reports Q3 (Sep) results, misses on revs; reaffirms FY21 revs guidance

    • BP (BP) reports Q3 (Sep) results, beats on revs; provides FY21 outlook

    • Black Stone Minerals (BSM) reports Q3 (Sep), total oil sales were $61.92 mln; total natural gas sales were $73.12 mln

    • Bloomin' Brands (BLMN) beats by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensus

    • Boise Cascade (BCC) beats by $0.15, beats on revs

    • Brixmor Property (BRX) beats by $0.05, beats on revs; guides Q4 FFO in-line

    • Bruker (BRKR) beats by $0.19, beats on revs; raises FY21 guidance

    • BWX Technologies (BWXT) misses by $0.03, misses on revs; guides Q4 EPS below consensus

    • Catalent (CTLT) beats by $0.05, reports revs in-line; raises FY22 revs guidance above consensus

    • Chegg (CHGG) misses by $0.14, misses on revs; guides Q4 revs below consensus

    • Cirrus Logic (CRUS) beats by $0.19, beats on revs; guides DecQ revs in-line

    • Clorox (CLX) beats by $0.20, beats on revs; reaffirms FY22 EPS guidance

    • Credit Acceptance Corp. (CACC) beats by $1.68, beats on revs

    • Cummins (CMI) misses by $0.24, beats on revs; lowers FY21 revs below consensus, cuts EBITDA growth guidance

    • CVR Energy (CVI) reports Q3 (Sep) results, beats on revs

    • Diamondback Energy (FANG) beats by $0.13, beats on revs

    • Douglas Dynamics (PLOW) misses by $0.09, misses on revs; guides FY21 EPS below consensus, revs in-line

    • DuPont (DD) beats by $0.03, beats on revs; guides FY21 EPS in-line, revs in-line

    • Easterly Government Properties (DEA) reports FFO in-line, revs in-line; guides FY21 FFO in-line; guides FY22 FFO in-line

    • Eaton (ETN) beats by $0.02, misses on revs; guides Q4 EPS in-line

    • Estee Lauder (EL) beats by $0.16, beats on revs; guides Q2 EPS below consensus, revs below consensus; guides FY22 EPS below consensus, revs below consensus

    • EverQuote (EVER) reports EPS in-line, revs in-line; guides Q4 revs below two analyst estimate

    • ExlService (EXLS) beats by $0.24, beats on revs; raises FY21 guidance; authorizes $300 mln repurchase program

    • Fabrinet (FN) beats by $0.12, beats on revs; guides Q2 EPS above consensus, revs above consensus

    • Gartner (IT) beats by $0.47, beats on revs

    • Generac (GNRC) misses by $0.05, misses on revs; reaffirms FY21 revs guidance

    • GXO Logistics (GXO) beats by $0.04, beats on revs; guides FY21 revs in-line

    • Harmonic (HLIT) beats by $0.02, beats on revs; raises FY21 EPS, revs guidance

    • Henry Schein (HSIC) beats by $0.07, beats on revs; raises FY21 EPS guidance, still in-line, guides for mid-to-high single digit EPS growth for 2022

    • Hologic (HOLX) beats by $0.61, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY22 EPS in-line, revs in-line

    • Hostess Brands (TWNK) reaffirms FY21 adjusted EPS of $0.83-0.87

    • IAA (IAA) misses by $0.03, beats on revs; guides FY21 revs above consensus

    • Incyte (INCY) beats by $0.43, beats on revs

    • Ingredion (INGR) beats by $0.32, beats on revs; raises FY21 EPS guidance

    • Insperity (INSP) beats by $0.03, beats on revs; guides Q4 EPS in-line

    • Integra (IART) beats by $0.14, reports revs in-line; guides Q4 EPS above consensus, revs below consensus

    • Kennametal (KMT) beats by $0.07, reports revs in-line; guides Q2 revs below consensus

    • Kforce (KFRC) beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs above consensus

    • KKR (KKR) beats by $0.10, beats on revs

    • Lear (LEA) misses by $0.08, beats on revs; guides FY21 revs below consensus

    • Leggett & Platt (LEG) misses by $0.06, reports revs in-line; guides FY21 EPS below consensus, revs in-line

    • Leidos (LDOS) beats by $0.18, misses on revs; raises FY21 EPS above consensus, revs below consensus

    • Louisiana-Pacific (LPX) beats by $0.45, beats on revs

    • LSB Industries (LXU) beats by $0.35, reports revs in-line

    • Marathon Petroleum (MPC) beats by $0.03, beats on revs

    • Martin Marietta (MLM) misses by $0.02, beats on revs

    • Materion (MTRN) beats by $0.26, beats on revs; guides Q4 EPS above consensus

    • McKesson (MCK) beats by $1.49, beats on revs; raises FY22 EPS above consensus

    • Mimecast (MIME) beats by $0.06, beats on revs; guides Q3 revs and EBITDA above consensus; guides FY22 revs above consensus

    • Mosaic (MOS) misses by $0.13, misses on revs

    • MPLX LP (MPLX) beats by $0.04, beats on revs; announces cash distribution

    • Neurocrine Biosci (NBIX) misses by $0.16, reports revs in-line

    • Nutrien (NTR) beats by $0.14, beats on revs; guides FY21 EPS above consensus

    • NXP Semi (NXPI) reports Q3 (Sep) results, revs in-line; guides Q4 revs above consensus

    • Omnicell (OMCL) beats by $0.17, beats on revs; guides Q4 EPS below consensus, revs above consensus

    • ONE Gas (OGS) reports EPS in-line, beats on revs; guides FY21 EPS in-line

    • Otter Tail Power (OTTR) beats by $0.16, reports slight miss on revs; guides FY21 EPS above consensus

    • Pennant Group (PNTG) issues downside Q3 adjusted EPS guidance of $0.11 due to COVID and labor challenges; expects problems to persist in Q4

    • Pfizer (PFE) beats by $0.25, beats on revs; raises FY21 EPS above consensus, revs in-line

    • Premier (PINC) beats by $0.04, beats on revs; raises FY22 EPS above consensus, reaffirms FY22 revs guidance

    • Public Storage (PSA) beats by $0.39, misses on revs

    • Rambus (RMBS) reports Q3 (Sep) results, misses on revs; guides Q4 revs in-line

    • Realty Income (O) reports FFO in-line, beats on revs; guides FY21 FFO above consensus; guides FY22 FFO in-line

    • Rockwell Automation (ROK) beats by $0.14, misses on revs; guides FY22 EPS above consensus, revs above consensus

    • Rogers Corp (ROG) misses by $0.14, reports revs in-line

    • SAGE Therapeutics (SAGE) misses by $0.35, misses on revs

    • SBA Comm (SBAC) beats by $0.29, beats on revs; raises FY21 FFO above consensus, revs above consensus

    • Simon Properties (SPG) beats by $0.60, beats on revs; guides FY21 FFO above consensus

    • Sun Country Airlines (SNCY) beats by $0.10, reports revs in-line; guides Q4 revs below two analyst estimate

    • Target Hospitality (TH) raises FY21 revenue guidance above consensus

    • Thomson Reuters (TRI) beats by $0.08, beats on revs; slightly raises FY21 revenue growth guidance range

    • TopBuild (BLD) misses by $0.09, misses on revs; guides FY21 revs in-line

    • Transocean (RIG) misses by $0.04, misses on revs

    • Under Armour (UAA) beats by $0.16, beats on revs; raises FY21 EPS above consensus, revs above consensus

    • Univar Solutions (UNVR) beats by $0.20, beats on revs

    • Varonis Systems (VRNS) beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs above consensus

    • Viper Energy Partners (VNOM) beats by $0.12, beats on revs

    • Vornado Rlty Trust (VNO) beats by $0.08, beats on revs

    • Welbilt (WBT) beats by $0.03, beats on revs; reaffirms FY21 revs guidance

    • Westlake Chemical (WLK) beats by $0.75, beats on revs

    • Williams Cos (WMB) beats by $0.07, beats on revs; raises FY21 guidance

    • Xenia Hotels (XHR) beats by $0.03, beats on revs

    • Xylem (XYL) beats by $0.03, misses on revs; guides FY21 EPS below consensus, revs below consensus

    • Zebra Tech (ZBRA) beats by $0.50, beats on revs; guides Q4 EPS above consensus

    • ZoomInfo (ZI) beats by $0.01, beats on revs; raises FY21 guidance


  • General News:

    • House Speaker Nancy Pelosi (D-CA) says she is "looking forward to passing" both economic bills, but did not give a timeframe for potential vote following comments from Senator Joe Manchin (D-WV). Progressives are ready to vote "pending some final negotiations" to the reconciliation bill on various issues, according to CNBC

    • Between four and eight moderate Democrats in House are not ready to support $1.75 trillion budget reconciliation bill, according to Politico

    • Republican Glenn Youngkin leads Democrat Terry McAuliffe by 1.7 points based on average of polling ahead of tonight's Virginia Governor election, according to RCP

    • White House is proposing new regulations that will significantly broaden and strengthen methane emissions reduction for new oil and gas facilities

    • California lawsuit clears opioid manufacturers of liability, according to the Wall Street Journal

    • ACADIA Pharmaceuticals (ACAD) appoints Brendan Teehan as COO, effective immediately

    • Alexander & Baldwin (ALEX) appoints Lance K. Parker as COO, effective today

    • Alphabet (GOOG): Google starts negotiations with news publishers to license content in Europe

    • Amazon (AMZN) announces that TikTok TV app on Fire TV is now available in the US and Canada

    • Apple (AAPL) lowers production if iPads to divert chips to iPhone 13, according to Nikkei

    • AstraZeneca (AZN) eosinophilic gastritis treatment gets FDA orphan designation, according to FDA website

    • Babcock & Wilcox Enterprises (BW) signs exclusive global licensing agreement with Ohio State Innovation Foundation for innovative chemical looping technology for decarbonization and hydrogen production, further enhancing B&W's BrightLoop offering

    • Blackrock (BLK) aiming to raise $673 mln for climate infrastructure fund, according to Reuters

    • CareDx (CDNA) completes management transition; Dr. Peter Maag to step down as Executive Chairman

    • Centrexion Therapeutics (CNTX) appoints Jennifer Minai-Azary as CFO

    • Cirrus Logic (CRUS) announces that Thurman Case is planning to retire from his position as chief financial officer

    • Credit Suisse (CS) aiming to expand faster in China, according to Reuters

    • Eli Lilly (LLY) to supply 614,000 additional doses of bamlanivimab and etesevimab to the U.S. Government for the treatment or post-exposure prevention of COVID-19

    • Evolv Technologies Holdings (EVLV) announces the appointment of Mario Ramos to the position of Chief Financial Officer effective November 1, 2021

    • ExlService (EXLS) has authorized a $300 mln common stock repurchase program, effective as of January 1, 2022

    • FirstEnergy (FE) announces settlement to resolve multiple proceedings at the Public Utilities Commission of Ohio

    • Freeport-McMoRan (FCX) approves new $3 bln share repurchase program; also approves the addition of a variable cash dividend

    • fuboTV (FUBO) and dentsu capture live sports fans on CTV by leveraging M1 data platform

    • GrafTech International (EAF) announces retirement of Quinn J. Coburn as CFO, effective November 29

    • IBM (IBM) to remain in Dow Jones Industrial Average after Kyndryl (KD) spin-off

    • Intl Game Tech. (IGT) signs multi-year licensing agreement with Authentic Brands Group, owner of the Marilyn Monroe Estate

    • Johnson & Johnson's (JNJ) Janssen Pharmaceutical announces extension of PDUFA date for citla-cel BLA

    • Kaman (KAMN) subsidiary receives award to provide components to leading eVTOL company

    • Legend Biotech (LEGN) announces that the U.S. Food and Drug Administration has extended the Prescription Drug User Fee Act target date for ciltacabtagene autoleucel to February 28, 2022

    • Leidos (LDOS) receives $531 mln contract by Air Combat Command Acquisition Management and Integration Center

    • Northrop Grumman (NOC) has entered into an accelerated share repurchase agreement with Goldman Sachs to repurchase $500 mln of Northrop Grumman's common stock

    • Orion Engineered Carbons (OEC) to increase specialty carbon black prices globally

    • Public Storage (PSA) hires David Lee as COO

    • QIWI (QIWI) announces the appointment of Alexey Mashchenkov as Chief Financial Officer effective November 8, 2021

    • R1 RCM (RCM) has authorized the repurchase of up to $200 mln of the company's common stock

    • Rhythm Pharmaceuticals (RYTM) presents first-ever data showing improvements in health-related quality of life for patients living with Bardet-Biedl Syndrome at ObesityWeek 2021

    • Stratasys (SSYS) announces a partnership with Ricoh USA, Inc. to provide point-of-care anatomic modeling services to healthcare facilities

    • TCR2 Therapeutics (TCRR) announces expansion of US manufacturing capacity

    • Tenneco (TEN) electronic suspension technology (CVSAe) will debut in China on the ZEEKR 001 premium electric shooting brake

    • Tesla (TSLA) to recall 11,700 vehicles over communication problem - CNBC

    • Teva Pharma (TEVA): California Judge rules that Teva did not cause a public nuisance or make false or misleading statements about opioids


  • M&A:

    • American Eagle (AEO) agrees to acquire Quiet Logistics for $350 mln in cash

    • CrowdStrike (CRWD) agrees to acquire SecureCircle in all-cash transaction

    • Dell (DELL) completes planned spin-off of 81% equity ownership of VMware (VMW)

    • Fiverr (FIVR) announced the acquisition of Stoke Talent, an intuitive all-in-one solution to help companies manage their work with freelance talent, for $95 million

    • Generac (GNRC) to acquire ecobee, which makes smart thermostats for up to $770 mln in cash and stock

    • Lazard (LAZ) in advanced talks to acquire hedge fund Brigade Capital, according to Bloomberg

    • Liquidity Services (LQDT) announces acquisition of Bid4Assets; terms not disclosed

    • Moody's (MCO) has acquired Bogard AB; financial terms not disclosed

    • Public Storage (PSA) announces the acquisition of the high-quality All Storage portfolio for $1.5 bln

    • Rogers Corp (ROG) to be acquired by DuPont (DD) for $277 per share in cash

    • Synopsys (SNPS) announces acquisition of Concertio; terms not disclosed

    • Utz Brands (UTZ) to acquire the equity and certain real estate assets related to the operation of RW Garcia for $56 mln

    • Zenvia (ZENV) announces acquisition of SenseData Tecnologia


  • Syndicate:

    • Arbor Realty Trust (ABR) prices offering of 7.5 mln shares of common stock for gross proceeds of $147.8 mln

    • Asbury Automotive (ABG) has commenced an underwritten public offering of 3,300,000 shares of its common stock pursuant to an automatic shelf registration statement effective November 1, 2021

    • Impinj (PI) announces proposed private offering of $225 mln of Convertible Senior Notes Due 2027

    • Installed Building Products (IBP) acquires Denison Glass and Mirror; terms not indicated

    • NextEra Energy Partners (NEP) files for 9,453,240 common unit offering by selling shareholders

    • Shell Midstream Partners (SHLX) files for common unit offering representing limited partner interests

    • Tarsus Pharmaceuticals (TARS) files for $300 mln mixed securities shelf offering

    • Vertiv (VRT) announces secondary offering of 20.0 mln shares of Class A common stock by selling stockholder

    • ZoomInfo (ZI) files for 10,287,643 share common stock offering by selling shareholders


  • IPOs:

    • Expected to Price:

      • Backblaze (Nasdaq: BLZE): launches 6.25 mln share IPO, expected to price between $15-$17.

      • Rivian Automotive (Nasdaq: RIVN): launches 135 mln share IPO, expected to price between $57-$62

      • Weave Communications (NYSE: WEAV) launches 5.0 mln share IPO, expected to price between $25-$28.



Gapping Up/Down

  • Gapping up:

    • ROG +29.5%, ANET +14.8%, UNVR +10%, FN +9.4%, ZI +8.2%, BCOV +6.7%, CAR +6.7%, TEVA +6.1%, CNTX +5.4%, KFRC +5.1%, HLIT +5%, ZENV +4.3%, SPG +4.2%, IT +4.1%, BRKR +3.4%, MCK +2.8%, VNOM +2.6%, GXO +2.4%, EXLS +2.4%, TCRR +2.2%, LPX +2.2%, INVZ +2.1%, ADUS +2.1%, FE +1.9%, ALEX +1.7%, CLX +1.6%, DELL +1.5%, CRUS +1.4%, MVST +1.3%, BSM +1.3%, KAMN +1.2%, NVTS +1.2%, EVLV +1.2%, WFRD +1.1%, OLN +1%, HOLX +1%, SKT +0.8%, VMW +0.7%, AZN +0.7%


  • Gapping down:

    • CHGG -31.9%, SMLR -17.3%, EVER -9.1%, LEGN -8.9%, IVC -7.9%, BWXT -7.3%, NBIX -5.9%, PNTG -5%, GNRC -4.9%, VRNS -4.8%, RIG -4.8%, ADTN -4.8%, TSLA -4.6%, ABR -4%, DD -3.7%, CACC -3.7%, VRT -3.6%, RMBS -3.4%, BP -3.1%, PLOW -2.3%, ACAD -2.2%, MOS -1.6%, NEP -1.2%, O -1.2%, FANG -1.1%, PI -1%, FUBO -1%, NXPI -0.9%, ELY -0.8%


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

  • Upgrades

    • Alcoa (AA) upgraded to Buy from Hold at Jefferies; tgt raised to $60

    • BrightSpire Capital (BRSP) upgraded to Outperform from Mkt Perform at Raymond James; tgt $12.50

    • Enerpac Tool Group (EPAC) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $22

    • FirstEnergy (FE) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $42

    • Franklin Resources (BEN) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $45

    • Inogen (INGN) upgraded to Neutral from Underweight at JP Morgan; tgt $45

    • Lufax (LU) upgraded to Mkt Perform from Underperform at Bernstein; tgt $6

    • ONE Gas (OGS) upgraded to Buy from Neutral at UBS

    • Patterson-UTI (PTEN) upgraded to Buy from Underperform at BofA Securities; tgt raised to $10.50

    • ZoomInfo (ZI) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $90


  • Downgrades:

    • Banco Santander Mexico (BSMX) downgraded to Hold from Buy at HSBC Securities; tgt $7.50

    • Chegg (CHGG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $53

    • Chegg (CHGG) downgraded to Mkt Perform from Outperform at Raymond James

    • Chegg (CHGG) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $54

    • Clorox (CLX) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $147

    • EverQuote (EVER) downgraded to Neutral from Overweight at JP Morgan; tgt $17

    • Expedia Group (EXPE) downgraded to Neutral from Overweight at Atlantic Equities; tgt $180

    • Exxon Mobil (XOM) downgraded to Sell from Hold at Truist; tgt lowered to $50

    • iQIYI (IQ) downgraded to Neutral from Buy at UBS; tgt lowered to $9.50

    • JOYY (YY) downgraded to Sell from Neutral at Goldman; tgt lowered to $57

    • Triterras Fintech (TRIT) downgraded to Neutral from Buy at B. Riley Securities; tgt $5


  • Others:

    • Adobe (ADBE) initiated with a Buy at Deutsche Bank; tgt $770

    • ANI Pharma (ANIP) initiated with a Buy at Truist; tgt $70

    • Arcosa (ACA) initiated with a Buy at Loop Capital; tgt $63

    • Ceridian HCM (CDAY) initiated with a Buy at Deutsche Bank; tgt $150

    • Dell (DELL) resumed with an Equal Weight at Barclays; tgt $59

    • DraftKings (DKNG) resumed with an Equal-Weight at Morgan Stanley; tgt $53

    • Geron (GERN) initiated with an Outperform at Robert W. Baird; tgt $4

    • Intuit (INTU) initiated with a Buy at Deutsche Bank; tgt $700

    • IsoPlexis (ISO) initiated with an Overweight at Morgan Stanley; tgt $16

    • LPL Financial (LPLA) initiated with a Buy at Truist; tgt $200

    • Microsoft (MSFT) initiated with a Buy at Deutsche Bank; tgt $390

    • Oracle (ORCL) initiated with a Hold at Deutsche Bank; tgt $110

    • Palantir Technologies (PLTR) initiated with a Hold at Deutsche Bank; tgt $25

    • Paycom Software (PAYC) initiated with a Buy at Deutsche Bank; tgt $655

    • Pyxis Oncology (PYXS) initiated with a Buy at Jefferies; tgt $25

    • Pyxis Oncology (PYXS) initiated with a Neutral at BofA Securities; tgt $16

    • Pyxis Oncology (PYXS) initiated with an Outperform at Credit Suisse; tgt $19

    • Qualtrics (XM) assumed with a Buy at Deutsche Bank; tgt $48

    • SAB Biotherapeutics (SABS) initiated with an Outperform at Robert W. Baird; tgt $23

    • Salesforce (CRM) initiated with a Buy at Deutsche Bank; tgt $360

    • SEI Investments (SEIC) initiated with a Hold at Truist; tgt $67

    • ServiceNow (NOW) initiated with a Buy at Deutsche Bank; tgt $820

    • Shopify (SHOP) initiated with a Hold at Deutsche Bank; tgt $1650

    • Splunk (SPLK) initiated with a Hold at Deutsche Bank; tgt $180

    • VMware (VMW) initiated with a Hold at Deutsche Bank; tgt $170

    • Workday (WDAY) initiated with a Buy at Deutsche Bank; tgt $360


Upcoming Events:

  • Econ Data:

    • No economic data releases of note.


  • Earnings:

    • Monday (Nov. 1)

      • Morning: AMG AKTS CNA BEN JELD OIS ON PCG TKR

      • Afternoon: ADUS ADTN ANET CAR BCC BRX BRKR BWXT CHGG CRUS CLX CACC FANG PLOW EVER FN HLIT HOLX NSP KMT KFRC LEG MCK MOS NBIX NTR NXPI OGS OTTR PSA RMBS O RRX RHP SBAC SPG SNCY SKT RIG UNVR VRNS VNOM VNO WMB ZI


  • Tuesday (Nov. 2)

    • Morning: AME APO ARCB ARNC AVNS TECH BLMN BP CTLT CIGI COP CRSR CMI DD DEA ETN EPD ETRN ESPR EL EXLS EXTR RACE IT GNRC GPN HEES HLNE HSC HSIC IAA IEP IDXX INCY INGR IART IPGP KKR LCII LEA LDOS LGIH LPX MMP MPC MLM MTRN MIME MPLX MYGN NNN NRZ NXST OMCL PFE PINC PEG RCM RL ROK SABR SAGE SEE SRCL TNC TMX TRI BLD UAA WAT WEC WLK XHR XYL ZBRA

    • Afternoon: EGHT ATVI AKAM AYX AMCR DOX AMED AFG AWK AMGN AIZ BTG BKH BFAM CZR CDLX CDK COUR DCP DCPH DENN DVN DHT APPS DEI EIX ES EXAS EXEL FNF FMC FRG FRSH HALO PEAK HURN ICFI ICHR IOSP INSP JRVR KAI KAR LSCC LSI LPSN RAMP LYFT MGNX MANT MTCH MRCY MDLZ NSA NMIH OKE OSPN PACB PAYC PKI PAA PUMP PRO PRU RDN RRR RGNX TSLX SKY SEDG SRC SPT STE SMCI TMUS TX RARE UIS UNM VECO VRSK VRTX VOYA WTI HCC WU XPO ZG


  • Wednesday (Nov. 3)

    • Morning: AGIO AMRN AMRX ASTE ATH AAWW AVA BDC BWA EAT BR BIP CWH CPRI CDW FUN CVE CRL CIM CLH CTRA CRTO CVS DISCA EMR ETR EVRG EVOP EXC EXPI FDP GCP HFC HZNP HUM ICPT IONS JLL LAMR LANC LIVN LL MAC MAR NFE NYT NI NCLH DNOW ODP OMI PCRX PSN PBI PLTK PRG RDWR RRD SPNS SMG SBGI SITE SPR SHOO SUN SYNH TT TUP UTHR VIRT VSH WING

    • Afternoon: TXG ONEM ADPT ATGE ALB ALL AEE ANSS APA ACA ATRC ACLS BNFT BLKB BKNG WHD CDAY CF CHNG CAKE CLR CORT CTVA CCRN CW DIOD DXC ELF EA ECPG ET NVST EPR EQIX EQH ETSY FSLY FSR FLT FOXA FNV GFL GDDY HR HMN HST TWNK HUBS HBM H IAG ICLR ICUI INFN IR INSG ITT KW KL KTOS LCI LHCG LNC LUMN MGNI MTW MFC MRO MATX MAXR MDU MLNK MET MTG MGM NUS OPRT OSUR ORA OCDX ORCC PLMR PK PDCE PEN PETQ PING PXD PLYA PTC QTWO QGEN QRVO QCOM QLYS QNST RPD RYN RCII RVLV ROKU RGLD RPT SRPT SITM SKLZ SJI SWN SFM SPXC STAA RGR SUM SLF SPWR SUPN TTWO TNDM TTGT TRMB TRUE TRUP UPLD VVV VAPO VMEO WTS WK YELL ZD


  • Thursday (Nov. 4)

    • Morning: ACIW GOLF AHCO WMS AES APD ALE ABC APTV ARW BLL BALY GOLD BCE BDX BLI BCOR BBIO BLDR CARS CNP LNG CQP CHH CI CTXS CWEN CNHI CCOI CFX COMM CYBR DLX XRAY DOCN DIN DUK DNB EPAM FIS FOCS GEL GEO GIL GOGO GTN GPRE HBI HL HSKA HIMX HWM HII NSIT IBP NTLA IDCC IRM IRWD ITRI K KOP LNTH LXP LITE MTSI MBUU MRNA MUR NEO NTCT NKLA NOMD NVMI NRG NS OGE OPCH PH PENN PLNT PPL PBH PWR QRTEA REGN REYN SO STOR SSYS STRA TGP TNK TGNA SHYF USPH UNIT VIAC VSTO VG VNT VMC WD W WCC ZBH ZTS

    • Afternoon: AAON ACMR AL ATSG ABNB ALRM ALKT Y LNT MDRX ALTR ATUS AMH AIG COLD AMN ANGI AINV APPN ARNA AVLR AXNX BGS BIGC BILL BL BE BHF CABO CMBM CVNA CC CHUY CLNE NET CDXS CGNX COLL ED CNDT CVET CYRX CUBE CWK DDOG DK DRH DBX LOCO EBS ENDP EOG EXPE FATE FRT FSLR FND FTNT FOXF FNKO GKOS GBT GMED GPRO GDOT GDYN GH HTA ILMN INGN PODD IAC IOVA IRTC FROG LLNW LGF.A LYV LTHM MNDT MTZ MED MELI MTD MCHP MTX MITK MNST MSI MP NTRA NFG NKTR NPTN NWSA LASR NLOK NVAX OXY OHI ONTO OTEX OEC OUT PCTY PTON PBA PFSI PRDO PINS PCOR PGNY PBYI KWR QDEL RDFN REG RGA REZI RBA RLJ RKT ROG SEM SLQT SHAK SWKS SQ RUN SHO SWCH SYNA TRHC TDC UBER OLED USM VLDR VIAV VRAY VIR WELL WPM WSC WWE WW YMAB YELP ZGNX


  • Friday (Nov. 5)

    • Morning: AMCX AXL BEP CGC CNK DSEY D ELAN ERJ ENB ESNT FLR GT GRPN HMC TILE JCI KIM MGA MMI MFA MODV MOG.A NWN DOC PNW SSP SRE TRP TEN ECOL VTR

    • Afternoon: TSE



Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng -0.2%, Shanghai Composite -1.1%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan is expected to loosen its international travel restrictions this week. South Korea's CPI increased at its fastest pace since early 2012 in the October reading. The Reserve Bank of Australia left its cash rate at 0.10% and scrapped its 3-yr yield target, as expected. Governor Lowe said that a rate hike in 2022 is not warranted by data and the cash rate could remain at current levels into 2024.

  • In economic data:

    • South Korea's October CPI 0.1% m/m, as expected (last 0.5%); 3.2% yr/yr, as expected (last 2.5%)

    • Hong Kong's September Retail Sales 7.3% m/m (last 11.9%)

    • New Zealand's September Building Consents -1.9% m/m (last 3.8%)


---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: -0.2%

  • China's Shanghai Composite: -1.1%

  • India's Sensex: -0.2%

  • South Korea's Kospi: +1.2%

  • Australia's ASX All Ordinaries: -0.6%

---FX---

  • USD/JPY: -0.4% to 113.53

  • USD/CNH: +0.1% to 6.3974

  • USD/INR: -0.2% to 74.70

Europe: DAX +0.5%, FTSE -0.6%, CAC +0.3%

Major European indices trade in mixed fashion. Officials from France and the U.K. will meet on Thursday in an attempt to solve the ongoing fishing dispute. Final Manufacturing PMI readings for October were mixed but they all remained in expansionary territory. BP reported a larger than expected profit for Q3.

  • In economic data:

    • Eurozone's October Manufacturing PMI 58.3 (expected 58.5; last 58.3)

    • Germany's October Manufacturing PMI 57.8 (expected 58.2; last 58.4)

    • France's October Manufacturing PMI 53.6 (expected 53.5; last 55.0)

    • Italy's October Manufacturing PMI 61.1 (expected 59.7; last 59.7)

    • Spain's October Manufacturing PMI 57.4 (expected 58.1; last 58.1)

    • Swiss October CPI 0.3% m/m (expected 0.1%; last 0.2%); 1.2% yr/yr (expected 1.1%; last 0.9%). September Retail Sales 2.5% yr/yr (last 0.8%)


---Equity Markets---

  • STOXX Europe 600: -0.1%

  • Germany's DAX: +0.5%

  • U.K.'s FTSE 100: -0.6%

  • France's CAC 40: +0.3%

  • Italy's FTSE MIB: -0.2%

  • Spain's IBEX 35: -0.5%

---FX---

  • EUR/USD: -0.1% to 1.1592

  • GBP/USD: -0.3% to 1.3627

  • USD/CHF: +0.5% to 0.9129


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