The S&P 500 futures trade 15 points, or 0.3%, above fair value at the end of a negative week in which index losses range from 1.0% (S&P 500) to 1.7% (Nasdaq Composite).
The Treasury market has reopened for business, and it continues to soften with yields indicated higher. Versus Wednesday's settlements, the 2-yr yield is up three basis points to 0.53%, and the 10-yr yield is up one basis point to 1.57%. The U.S. Dollar Index is flat at 95.16. WTI crude is down 1.7%, or $1.36, to $80.20/bbl.
The equity futures market is absorbing the modest moves, helped in part by investors willing to buy the mini dip in the market. Johnson & Johnson (JNJ 167.74, +4.68, +2.9%) is an individual measure of support after announcing plans to separate its consumer health business into a publicly traded company within 18-24 months.
Overhanging the market is uncertainty on the Fed's policy course amid rising inflation pressures, as well as uncertainty on the social spending package ahead of the debt ceiling deadline in Washington. The CME Fed Watch Tool currently has a 70% probability of a rate hike in June 2022, versus 53.3% last week.
On the data front, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for November (Briefing.com consensus 71.7) and the JOLTS - Job Opening report for September at 10:00 a.m. ET.
In U.S. Corporate news:
Johnson & Johnson (JNJ 167.74, +4.68): +2.9% after announcing plans to separate its consumer health business, creating a new publicly traded company within 18-24 months.
Blink Charging (BLNK 37.50, +1.99): +5.6% after beating revenue estimates.
Lordstown Motors (6.21, -0.68): -9.9% despite beating EPS estimates. The stock rose 24% yesterday on news of a Foxconn stock deal.
Warby Parker (WRBY 53.50, -0.01): unch despite beating top and bottom-line estimates and guiding FY21 revenue above consensus.
Reviewing overnight developments:
Equity indices in the Asia-Pacific ended the week on a bullish note, bolstered by an easing of default concerns surrounding Evergrande, the overall strength of Singles Day sales in China, Toyota's news that all of its plants in Japan will be running normally in December for the first time since May, and efforts by Japan to craft another fiscal stimulus plan. Japan's Nikkei: +1.1% (unch for the week) Hong Kong's Hang Seng: +0.3% (+1.8% for the week) China's Shanghai Composite: +0.2% (+1.4% for the week) India's Sensex: +1.3% (+1.0% for the week) South Korea's Kospi: +1.5% (unch for the week) Australia's ASX All Ordinaries: +0.8% (-0.2% for the week).
In economic data:
South Korea's October Export Price Index +25.3% yr/yr (last +20.4%) and Import Price Index +35.8% yr/yr (last +26.6%)
New Zealand's October Business NZ PMI 54.3 (last 51.4)
In news:
Ample attention being paid to press reports that indicate President Xi and President Biden will engage in a virtual meeting on Monday. That meeting will follow some key economic data over the weekend that will include China's retail sales, fixed asset investment, and industrial production for October and Japan's preliminary Q3 GDP report.
It also comes in the wake of China approving Xi's historical resolution, which is seen as a harbinger of Xi serving an unprecedented third term as president.
Major European indices are mixed but little changed overall, perhaps waiting to take a stronger cue from the behavior of the U.S. market when it opens for trading. STOXX Europe 600: +0.1% (+0.5% for the week) Germany's DAX: +0.2% (+0.4% for the week) U.K.'s FTSE 100: -0.4% (+0.7% for the week) France's CAC 40: +0.3% (+0.6% for the week) Italy's FTSE MIB: -0.1% (-0.7% for the week) Spain's IBEX 35: -0.3% (-0.7% for the week).
In economic data:
Eurozone's September Industrial Production -0.2% m/m (expected -0.5%; last -1.7%) and +5.2% yr/yr (expected +4.1%; last +4.9%)
Germany's October WPI +1.6% m/m (last +0.8%) and +15.2% yr/yr (last +13.2%)
Spain's October CPI +1.8% m/m (expected +2.0%; last +0.8%) and +5.4% yr/yr (expected +5.5%; last +4.0%)
In news:
Lots of uncertain political dealings in the mix that could also be acting as a restraint on sentiment.
Brexit Minister Frost will reportedly make it known that the UK's aim is to work out an agreement on the Northern Ireland Protocol and not trigger Article 16; the U.S. is said to have warned the EU about a potential invasion of Ukraine by Russia; and Belarus is threatening to close its gas pipeline to the EU if it sanctions Belarus for the migrant crisis at the Poland border.
ECB members Rehn and Simkus were the latest members pushing the view that inflation pressures are likely to be transitory.
U.S. equity futures:
S&P 500 Futures: +9 @ 4,658
DJIA Futures: +88 @ 36,009
Nasdaq 100 Futures: +39 @ 16,071
Overseas:
Europe: DAX +0.2%, FTSE-0.4%, CAC +0.3%
Asia: Nikkei +1.1%, Hang Seng +0.3%, Shanghai Composite +0.2%
Commodities:
Crude Oil -1.45 @ 80.19
Nat Gas -0.175 @ 4.974
Gold -8.57 @ 1855.33
Silver -0.198 @ 25.103
Copper -0.0050 @ 4.3945
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
Array Tech (ARRY) misses by $0.02, misses on revs
AstraZeneca (AZN) misses by $0.17, beats on revs; reaffirms FY21 EPS guidance
Atea Pharmaceuticals (AVIR) reports Q3 (Sep) results
Baozun (BZUN) reports total order value of RMB 19.18 billion for the 2021 11.11 Festival, an increase of 16.3% compared to the 2020 11.11 Festival
Becton Dickinson (BDX) provides highlights for Investor Day; targets long-term compound annual revenue growth of 5.5% or more
BioLife Solutions (BLFS) beats by $0.09, beats on revs; guides FY21 revs above consensus
Blink Charging (BLNK) misses single est by $0.01, beats on revs
CalAmp (CAMP) sees Q3 revs below consensus; the supply chain shortages have become more pronounced
Compugen (CGEN) beats by $0.06; presents data on several studies
Coupang (CPNG) misses by $0.05, misses on revs
Dada (DADA) reports record sales for Singles Day Shopping Festival
Deutsche Telekom (DTEGY) reports Q3 results; organic revs rise 2% yr/yr; raises outlook and dividend
Flowers Foods (FLWS) beats by $0.05, beats on revs; guides Q4 EPS in-line, revs in-line
GAN Limited (GAN) misses by $0.06, beats on revs; guides Q4 revs in-line
Hydrofarm Holdings (HYFM) beats by $0.10, reports revs in-line; guides FY21 revs in-line
Jamf Holding (JAMF) reports EPS in-line, beats on revs; guides Q4 revs in-line
Lordstown Motors (RIDE) beats by $0.05
Lucira Health (LHDX) misses by $0.19, misses on revs; guides Q4 revs above consensus; guides FY22 revs above consensus
Mister Car Wash (MCW) beats by a penny, beats on revs; raises FY21 EPS and revenue guidance
PagSeguro Digital (PAGS) beats by BRL 0.03, beats on revs
Phunware (PHUN) beats by $0.05, revs inline
Pretium Resources (PVG) reports Q3 results
RenaissanceRe (RNR) approved a renewal of its authorized share repurchase program bringing the total current authorization up to $500.0 mln
Ryan Specialty Group (RYAN) beats by $0.06, beats on revs
Shift (SFT) beats by $0.03 and grows revs 200% yr/yr; guides Q4 revs above consensus
Spectrum Brands (SPB) reports Q4 (Sep) results, beats on revs
Warby Parker (WRBY) beats by $0.25, beats on revs; guides FY21 revs above consensus
General News:
CBO score for reconciliation bill will take longer than expected potentially causing disagreements between moderates and Democratic leadership on House vote timing next week, according to Politico
Senator Joe Manchin (D-WV) is against extra $4500 EV tax credit for union made cars, according to Bloomberg
US warned allies that Russia is considering an invasion of Ukraine, according to Bloomberg
US firms are increasing investment in China semiconductor companies, according to the Wall Street Journal
Colorado will make all adults in the state eligible for COVID-19 booster shots due to surge in cases in the state, according to the New York Times
Achilles Therapeutics (ACHL) Presents Data at the Society for Immunotherapy of Cancer (SITC) Annual Meeting Demonstrating the Ability to Detect, Quantify and Track Patient-specific cNeT and Significant Increase in cNeT Dose from VELOS Process 2 Manufacturing
Adaptimmune Therapeutics (ADAP) reports translational data at SITC 2021 from Adaptimmune's Phase 1 SURPASS Trial Indicate Adding AKTi to Manufacturing May Contribute to Sustained Antitumor Activity of Next-gen SPEAR T-cells
Adaptive Biotechnologies (ADPT) receives updated medicare coverage for its minimal residual disease assay
Aecom Tech (ACM) awarded a contract to provide program management services for the development of the seventh runway at Denver International Airport
Affimed (AFMD) shares preclinical data on mechanism of action of two innate cell engagers at the 36th SITC Meeting, demonstrating their potential to induce antibody dependent cellular phagocytosis and serial killing
Amazon (AMZN) moved staff working on drone research to new projects, according to Bloomberg
Amgen's (AMGN) LUMYKRAS (sotorasib) receives positive opinion from EMA CHMP for patients with KRAS G12C-mutated advanced non-small cell lung cancer
Arrowhead (ARWR) presents additional clinical data on investigational ARO-AAT treatment at AASLD Liver Meeting
Ascendis Pharma (ASND) announces that European Medicine Agency's Committee for Medicinal Products for Human Use adopts positive opinion recommending marketing authorization for Lonapegsomatropin Ascendis Pharma
Beam Therapeutics (BEAM) reports preclinical data highlighting multiplex base editing approach to create anti-CD5 CAR T-cell investigational therapies for T-Cell malignancies
Biogen (BIIB) phase 3 data show positive correlation between ADUHELM and reduction in clinical decline in Alzheimer's Disease
Bolt Biotherapeutics (BOLT) presents new preclinical data on three pipeline programs at Society for Immunotherapy of Cancer Annual Meeting
BlackSky Technology (BKSY) secured a five-year, sole-source blanket purchase agreement by the NASA to provide high revisit satellite imaging data in support of the agency's existing Earth observation research to advance predictive capabilities
Catalyst Biosciences (CBIO) announced a strategic decision to halt the clinical development of MarzAA, report data to date, and seek a buyer for its hemophilia assets
Celldex Therapeutics (CLDX) announces "positive" preclinical data from CDX-585
Codiak BioSciences (CDAK) reports new preclinical data at SITC 2021 show broad potential utility of Codiak's engineered exosomes
Corvus Pharmaceuticals (CRVS) presents updated data from Mupadolimab (Anti-CD73) phase 1/1b clinical trial at the 2021 Society for Immunotherapy of Cancer Annual Meeting
Emergent BioSolutions (EBS) authorized management to repurchase up to $250 mln of common stock
Farfetch (FTCH) confirms discussions with Richemont to expand partnership
GlaxoSmithKline (GSK): Primary endpoint met in COMET-TAIL Phase III trial evaluating intramuscular administration of sotrovimab for early treatment of COVID-19
Horizon Pharma (HZNP) receives CHMP positive opinion for UPLIZNA as a monotherapy for the treatment of adult patients with neuromyelitis optica spectrum disorder
Innate Pharma (IPHA) highlights new NK cell engager data with partner Sanofi (SNY) at SITC Annual Meeting
InnovAge (INNV) has received approval from the state of Indiana to develop a Program of All-inclusive Care for the Elderly to serve the greater Terre Haute, IN, area
Ionis' (IONS) antisense therapies to be featured at the American Heart Association (AHA) Scientific Sessions 2021
Johnson & Johnson (JNJ) confirms plans to separate consumer health business
Kellogg's (K) files lawsuit against union that is currently on strike, according to Bloomberg
KKR (KKR) further expands industrial real estate portfolio in Phoenix
Kymera Therapeutics (KYMR) presents new preclinical data on STAT3 degraders at the Society for Immunotherapy of Cancer's (SITC) 36th Annual Meeting
MiNK Therapeutics (INKT) announces 77% survival rate in intubated patients with COVID-19 respiratory failure treated with AgenT-797
Northern Oil & Gas (NOG) declares quarterly cash dividend of $0.08/share, up from previous $0.045/share
Novo Nordisk A/S (NVO) reports Ozempic 2.0 mg recommended for approval for the treatment of type 2 diabetes by the European Medicines Agency
Nurix Therapeutics (NRIX) announces IND clearance for DeTIL-0255, a drug-enhanced autologous T cell therapy for the potential treatment of a variety of solid tumors
Oncorus (ONCR) Reports Initial Safety, Tolerability, Immune Activation and Positive Clinical Response Data from its Ongoing Phase 1 Clinical Study of ONCR-177, its Lead Viral Immunotherapy Candidate, at SITC 2021
Phio Pharmaceuticals (PHIO) presents positive new data on systemic immune response after local PH-762 therapy at the SITC 36th Annual Meeting
ReneSola (SOL) and Emeren launch their first solar project in Italy
Replimune (REPL) provides updated data from RP2 at the 2021 Society for Immunotherapy of Cancer's 36th Annual Meeting
Rubius Therapeutics (RUBY) presents preclinical data for RTX-224, a broad immune costimulatory agonist, at the Society for Immunotherapy of Cancer's Annual Meeting
Scholar Rock (SRRK) presents data from Part A of the DRAGON Phase 1 trial evaluating SRK-181 as monotherapy and in combination with Anti-PD-(L)1 for the treatment of solid tumors -- announces advancement into Part B
Sensei Biotherapeutics (SNSE) Presents Preclinical Data for SNS-101, a pH-Selective Anti-VISTA Antibody, at the Society for Immunotherapy of Cancer (SITC) 36th Annual Meeting
SQZ Biotechnologies (SQZ) presents new AAC, eAPC Platform research and first enhanced tumor infiltrating lymphocyte preclinical data at society for Immunotherapy of Cancer Annual Meeting
Toyota Motor (TM) announces that global production plan in December is expected to reach the 800,000 units level including the recovery from the impact of the previous production cutbacks
Travel + Leisure Co (TNL) increases quarterly cash dividend to $0.35/share from $0.30/share
U.S. Steel (X) further strengthens balance sheet by permanently de-risking a portion of its pension plan
Vertex Pharma (VRTX) receives Positive Opinion from CHMP for KAFTRIO in combination with Ivacaftor in children with cystic fibrosis ages 6 through 11
Vir Biotechnology (VIR) reports primary endpoint met in COMET-TAIL Phase 3 trial evaluating intramuscular administration of sotrovimab for early treatment of COVID-19
Xencor (XNCR) presents updated data from Phase 1 study of Vudalimab, PD-1 x CTLA-4 Bispecific Antibody; also to present data from multiple preclinical XmAb bispecific antibody programs at SITC
Xilio Therapeutics (XLO) announces preclinical data demonstrating anti-tumor activity and tolerability of XTX301, a Tumor-Selective IL-12, at Society for Immunotherapy in Cancer Annual Meeting
M&A:
Array Tech (ARRY) to acquire Soluciones Tcnicas Integrales Norland; expected to be significantly accretive to margins and EPS before synergies
Ballard Power (BLDP) acquires Arcola Energy
Millicom International Cellular (TIGO) to acquire full control of Tigo Guatemala
Spotify (SPOT) to acquire Findaway, a global leader in digital audiobook distribution. Terms of the transaction were not disclosed
Syndicate:
Eneti (NETI) prices offering of 19.44 mln shares of common stock at $9.00 per share
Stellus Capital (SCM) plans to make a public offering of its common stock
IPOs:
Expected to Trade:
Mynaric (Nasdaq: MYNA): The developer and manufacturer of advanced laser communication technology is expected to price its 4.0 M share IPO at ~$17.50.
Gapping Up/Down
Gapping up:
CODX +10.4%, SFT +6.6%, AQN +6.2%, PAGS +5.8%, OPNT +5.6%, FTCH +5.3%, AVIR +4.8%, BLNK +4.6%, JNJ +4.4%, FLO +3.9%, TIGO +3.5%, PHUN +3.3%, EBS +3.2%, ADPT +3%, BKSY +3%, BIIB +2.8%, DDD +2.2%, BLDP +1.5%, RYAN +1.1%, NOG +0.8%, RNR +0.8%, DADA +0.7%
Gapping down:
AFIB -22.2%, RIDE -11.3%, NETI -9.5%, SCM -8.4%, LHDX -7.2%, BEEM -5.8%, ATHX -5.5%, CPNG -4.4%, JAMF -3.9%, AZN -3.4%, ARRY -3%, HYFM -3%, MCW -2%, BZUN -1.3%, X -1.2%, SPB -1.2%, GAN -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Cognex (CGNX) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $85
Downgrades:
Acutus Medical (AFIB) downgraded to Underweight from Neutral at JP Morgan
Bright Health Group (BHG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $5
Brookfield Asset Mgmt (BAM) downgraded to Buy from Conviction Buy at Goldman; tgt $65
Celsius (CELH) downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $103
Fortuna Silver Mines (FSM) downgraded to Sell from Hold at Canaccord Genuity
Greif (GEF) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $71
National Vision (EYE) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $50
Others:
AdvanSix (ASIX) initiated with an Overweight at Piper Sandler; tgt $58
Caesars Entertainment (CZR) initiated with a Buy at B. Riley Securities; tgt $191
Celanese (CE) initiated with an Overweight at Piper Sandler; tgt $200
ChargePoint (CHPT) initiated with a Neutral at Piper Sandler; tgt $24
DigitalOcean (DOCN) initiated with an Outperform at William Blair
dMY Technology Group, Inc. IV (DMYQ) initiated with a Buy at WestPark Capital
Domino's Pizza (DPZ) initiated with a Hold at The Benchmark Company
Eastman Chemical (EMN) initiated with a Neutral at Piper Sandler; tgt $126
Upcoming Events:
Econ Data:
10:00 ET: JOLTS - Job Openings for Sep (Briefing.com Consensus NA; Prior 10.439 M)
10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for Nov (Briefing.com Consensus 71.7; Prior 71.7)
Earnings:
Monday (Nov 8)
Morning: BKI IMOS COTY EDIT EHTH XPRO GTES HLIO VAC RDNT RETA TTD TSEM THS TSE USFD VTRS WOW
Afternoon: DDD ACAD AEIS AMC AEL AMRS ATCO BLDP BAND CBT CSII CXW ENV FIVN FRPT IPAR IFF NVTA JKHY BEKE LFST DOOR MRTX MRC MWA NCMI NHI NVRO NEWR NEX OSH PYPL PRAA PRI PRIM PRA RBLX SANM SWAV SDC SQSP TME REAL TPIC TREX TRIP TWO SPCE VUZI WPRT ZIXI ZNGA
Tuesday (Nov 9)
Morning: ADT ATC BSY BHVN BNTX CAH CEVA ECOM DHI EBIX ECVT EPZM FSS HAE HAIN HGV HUYA IIVI IGT ITCI MLCO MIDD MNTV MSGE NOVT PLTR PRPL SEAS STWD SYY TGI TUFN VCEL VSAT WNC WRK WKHS
Afternoon: TWOU AKA AMPL ARLO ASH AMK EPAY ELY CARG CERT CCXI COIN DAR DASH DV DOCS EVBG FGEN FLYW FUBO FLGT G GLBE GOCO GO HCAT TWNK NARI INO JAZZ DNUT LGND MCFE MODN MSGS NSTG NIO NUVA OLO ONTF LPRO PAAS PYCR POSH PUBM RPAY RNG SAIL SCSC SGMS SEER SILK STEP TOST TTEC TPTX U UPST VZIO VRM WES WYNN
Wednesday (Nov 10)
Morning: ME ADNT AER APG GIB DFH ENR FVRR IS KELYA KRNT MNDY EYE PFGC PRGO SHCR FOUR SHC FLOW VERX WEN WWW
Afternoon: DIBS AFRM AMWL APP ATO BZH BYND BRKS BMBL CCMP COMP CRCT MSP DUOL BROS ENS FICO FIGS ULCC GDRX HIMS HNST KGC LZ MRVI MQ MAX OPEN RRGB ROOT SDGR SOFI SPTN TASK DIS WISH ZIP
Thursday (Nov 11)
Morning: MT AZUL CAE CELH EPC GRWG NICE OGN PGTI SBH STNG TPR THRY UTZ WB WIX YETI
Afternoon: AQN ARRY BLNK CPNG FLO GAN JAMF RIDE PAGS PVG
Friday (Nov 12)
Morning: AZN CGEN ROLL SPB WRBY
Asia & Europe detail:
Asia: Nikkei +1.1%, Hang Seng +0.3%, Shanghai Composite +0.2%
Equity indices in the Asia-Pacific ended the week on a bullish note, bolstered by an easing of default concerns surrounding Evergrande, the overall strength of Singles Day sales in China, Toyota's news that all of its plants in Japan will be running normally in December for the first time since May, and efforts by Japan to craft another fiscal stimulus plan. Ample attention being paid to press reports that indicate President Xi and President Biden will engage in a virtual meeting on Monday. That meeting will follow some key economic data over the weekend that will include China's retail sales, fixed asset investment, and industrial production for October and Japan's preliminary Q3 GDP report. It also comes in the wake of China approving Xi's historical resolution, which is seen as a harbinger of Xi serving an unprecedented third term as president.
In economic data:
South Korea's October Export Price Index +25.3% yr/yr (last +20.4%) and Import Price Index +35.8% yr/yr (last +26.6%)
New Zealand's October Business NZ PMI 54.3 (last 51.4)
---Equity Markets---
Japan's Nikkei: +1.1% (unch for the week)
Hong Kong's Hang Seng: +0.3% (+1.8% for the week)
China's Shanghai Composite: +0.2% (+1.4% for the week)
India's Sensex: +1.3% (+1.0% for the week)
South Korea's Kospi: +1.5% (unch for the week)
Australia's ASX All Ordinaries: +0.8% (-0.2% for the week)
---FX---
USD/JPY: unch at 114.04
USD/CNH: -0.2% to 6.3731
USD/INR: +0.2% to 74.407
Europe: DAX +0.2%, FTSE-0.4%, CAC +0.3%
Major European indices are mixed but little changed overall, perhaps waiting to take a stronger cue from the behavior of the U.S. market when it opens for trading. Lots of uncertain political dealings in the mix that could also be acting as a restraint on sentiment. Brexit Minister Frost will reportedly make it known that the UK's aim is to work out an agreement on the Northern Ireland Protocol and not trigger Article 16; the U.S. is said to have warned the EU about a potential invasion of Ukraine by Russia; and Belarus is threatening to close its gas pipeline to the EU if it sanctions Belarus for the migrant crisis at the Poland border. Separately, ECB members Rehn and Simkus were the latest members pushing the view that inflation pressures are likely to be transitory.
In economic data:
Eurozone's September Industrial Production -0.2% m/m (expected -0.5%; last -1.7%) and +5.2% yr/yr (expected +4.1%; last +4.9%)
Germany's October WPI +1.6% m/m (last +0.8%) and +15.2% yr/yr (last +13.2%)
Spain's October CPI +1.8% m/m (expected +2.0%; last +0.8%) and +5.4% yr/yr (expected +5.5%; last +4.0%)
---Equity Markets---
STOXX Europe 600: +0.1% (+0.5% for the week)
Germany's DAX: +0.2% (+0.4% for the week)
U.K.'s FTSE 100: -0.4% (+0.7% for the week)
France's CAC 40: +0.3% (+0.6% for the week)
Italy's FTSE MIB: -0.1% (-0.7% for the week)
Spain's IBEX 35: -0.3% (-0.7% for the week)
---FX---
EUR/USD: flat at 1.1451
GBP/USD: +0.2% to 1.3394
USD/CHF: +0.2% to 0.9224
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