The S&P 500 futures are down 8 points and are trading 0.2% below fair value. The Nasdaq 100 futures are down 37 points and are trading 0.2% below fair value. The Dow Jones Industrial Average futures are down 38 points and are trading 0.1% below fair value.
Stock futures indicate a lower open after the cash market's higher finish last week. Notable strength in Boeing (BA) following a slew of new orders at the Dubai Airshow and a Bloomberg report that China may soon announce the purchase of the 737 Max has offered some offsetting support this morning.
Market participants are looking ahead to some market-moving events this week, including earnings from Walmart (WMT), Target (TGT), and other retailers. The economic calendar features the October Consumer Price Index report on Tuesday and the October retail sales report on Thursday.
The 2-yr note yield is unchanged from Fridayat 5.05% and the 10-yr note yield is up one basis point at 4.64%. Notably, after Friday'sclose Moody's changed its outlook on US ratings to negative from stable, but affirmed Aaa ratings.
In corporate news:
Boeing (BA 203.21, +6.56, +3.3%): Emirates orders nearly 100 more Boeing Widebody Airplanes; announces flydubai Ordered 30 Boeing 787 Dreamliners; announces agreement with SunExpress to buy up 90 Boeing 737 MAX Jets; China considers ending freeze on Boeing (BA) with new 737 Max deal, according to Bloomberg
HP Inc. (HPQ 28.15, +0.53, +1.9%): upgraded to Buy from Neutral at Citi
Tower Semi (TSEM 23.23, -1.30, -5.3%): reports Q3 (Sep) results, revs in-line; guides Q4 revs below consensus
Novo Nordisk (NVO 100.18, -1.01, -1.0%): reports Semaglutide 2.4 mg (Wegovy) cardiovascular outcomes data presented at American Heart Association Scientific Sessions and simultaneously published in New England Journal of Medicine
Tyson Foods (TSN 45.35, -1.60, -3.4%): beats by $0.08, misses on revs; guides FY23 revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region had a mixed showing to begin the week. Japan's Nikkei: flat, Hong Kong's Hang Seng: +1.6%, China's Shanghai Composite: +0.3%, India's Sensex: -0.5%, South Korea's Kospi: -0.2%, Australia's All Ordinaries: -0.4%.
In economic data:
Japan's October PPI -0.4% month-over-month (expected 0.0%; last -0.2%) and 0.8% yr/yr (expected 0.9%; last 2.2%); October Machine Tool Orders -20.6% yr/yr (last -11.2%)
China's October New Loans CNY738.4B (expected CNY665.0B; last CNY2310.0B)
In news:
Hong Kong's Hang Seng (+1.6%) outperformed on the back of strength in its tech components.
Saturday was Singles Day (11/11) in China.
Reports suggest sales gains were seen across major e-commerce platforms with deep discounts helping to spur spending.
China's President Xi will be at the APEC Summit in San Francisco this week. He is confirmed to meet with President Biden on Wednesday with a reported aim for the two leaders to ease diplomatic tension between the two governments.
On a related note, Bloomberg reports that China may soon make a purchase announcement for Boeing's 737 Max, which would be the first purchase since 2018.
USD/JPY reached its highest level since October 2022 as Japan reported a month-over-month decline in October PPI. USD/JPY +0.2% to 151.72.
Major European indices are trading with a modestly positive bias to begin the week. STOXX Europe 600: +0.5%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +0.6%.
In economic data:
Germany's September Current Account Balance EUR28.1B (last EUR22.8B)
UK's November Rightmove House Price Index -1.3% yr/yr (last -0.8%)
In news:
UK Prime Minister Sunak fired home secretary Braverman and, in a major surprise, announced former prime minister David Cameron will be foreign secretary.
Staying in the UK, the Rightmove House Price Index saw its biggest decline (-1.3% yr/yr) in five years.
ECB member de Guindos says inflation may pick up again temporarily, but that he won't pre-judge any future movement in interest rates before adding that talk about rate cuts is premature, according to Bloomberg.
U.S. equity futures:
S&P 500 Futures -8 @ 4,407
DJIA Futures: -30 @ 34,253
Nasdaq 100 Futures: -36 @ 15,493
Overseas:
Europe: DAX +0.1%, FTSE +0.6%, CAC +0.2%
Asia: Nikkei Flat, Hang Seng +1.6%, Shanghai Composite +0.3%
Commodities:
Crude Oil +0.14 @ 77.31
Nat Gas +0.161 @ 3.194
Gold +3.25 @ 1940.95
Silver -0.133 @ 22.148
Copper +0.0377 @ 3.6247
Earnings/Guidance:
American Electric (AEP) reiterates FY23 earnings guidance; projects FY24 EPS in-line with consensus; reaffirms long-term growth of +6-7%
Fortrea (FTRE) beats by $0.08, beats on revs; guides FY23 revs above consensus
Henry Schein (HSIC) reports EPS in-line, misses on revs; guides FY23 EPS below consensus, revs below consensus
HIVE Digital Technologies (HIVE) reports Q3 revs of $22.8 mln vs $23.8 mln FactSet consensus
Tower Semi (TSEM) reports Q3 (Sep) results, revs in-line; guides Q4 revs below consensus
Tyson Foods (TSN) beats by $0.08, misses on revs; guides FY23 revs below consensus
StoneCo (STNE) beats by BRL 0.20, beats on revs
News:
House Republicans unveiled plan to fund government in two steps through January 19& February 2.The bill will keep government funding at current levels. A Senate Democratic leadership aide signaled their openness to the plan, according to CNN
Government funding bill does not include additional aid for Israel or Ukraine, according to CNN
Israel Prime Minister Benjamin Netanyahu says the Israeli Army is the only entity that could take military responsibility for Gaza after the war, according to the New York Times
US conducted airstrikes against Iran supported targets in Syria, according to the New York Times
Moody's changes outlook on US ratings to negative from stable, affirms Aaa ratings
Senator Tim Scott (R-SC) ends his campaign for president, according to the New York Times
David Cameron was appointed UK foreign secretary
China purchased 3 million tons of soybeans, according to Bloomberg
The transition to green energy looks more expensive and complicated than previously thought, according to the Wall Street Journal
89bio (ETNB) Announces Additional Data from the ENLIVEN Phase 2b Trial of Pegozafermin in Patients with Compensated Cirrhotic (F4) Nonalcoholic Steatohepatitis (NASH) at AASLD The Liver Meeting 2023
Aclaris Therapeutics (ACRS) Announces Top-line Results from 12-Week Phase 2b Trial of Oral Zunsemetinib (ATI-450) for Moderate to Severe Rheumatoid Arthritis and Provides Corporate Update
Air Lease (AL) announces delivery of first of nine new Airbus A321-200neo Aircraft to ITA Airways
Air Lease (AL) announces lease placement of 18 New Boeing (BA) 737-8 aircraft with EGYPTAIR
Alnylam (ALNY) Presents Positive Results from the KARDIA-1 Phase 2 Dose-Ranging Study of Zilebesiran, an Investigational RNAi Therapeutic in Development for the Treatment of Hypertension in Patients at High Cardiovascular Risk
Avient (AVT) Board of Directors has unanimously voted to elect Dr. Ashish K. Khandpur as President and Chief Executive Officer, effective December 1, 2023
Boeing (BA): China considers ending freeze on Boeing with new 737 Max deal, according to Bloomberg
Boeing (BA) announces flydubai Ordered 30 Boeing 787 Dreamliners
Boeing (BA): Emirates orders nearly 100 more Boeing Widebody Airplanes
Boeing (BA) announces agreement with SunExpress to buy up 90 Boeing 737 MAX Jets
Bragg Gaming Group (BRAG) COO Lara Falzon to resign
BRF SA (BRFS) management has decided to maintain its pet food business, having therefore ended the competitive sale process announced on February 28, 2023
BridgeBio Pharma (BBIO) presents additional clinical outcomes data from the Phase 3 ATTRibute-CM Study of Acoramidis in Patients with Transthyretin Amyloidosis Cardiomyopathy
Dana Inc (DAN) appoints Steven Miller to Board of Directors
Digital World Acquisition Corp (DWAC) discloses that factors raise substantial doubt about the Company's ability to continue as a going concern
Exxon (XOM) planning to begin lithium production by 2026, according to Reuters
Ford (F) Kentucky workers vote against labor deal, according to Reuters
GlaxoSmithKline (GSK) receives positive CHMP opinion recommending momelotinib for myelofibrosis patients with anaemia
Google (GOOG) aiming to invest in startup Character.AI, according to Reuters
Guidewire Software (GWRE) announces that E.design has selected Guidewire Cloud
Havertys (HVT) authorizes special cash dividend of $1.00/share on common stock and $0.95/share on Class A common stock
Hawaiian Electric (HE) amends late 10-Q filing
Illumina (ILMN) provides update related to reduction in its real estate footprint; continues to evaluate its options with respect to its campus in Foster City, California
Intl Game Tech. PLC (IGT) PlayDigital unit will expand its content in Italy by partnering with Microgame, the number one online gaming service provider in the Italian iGaming market
Ionis (IONS) shares positive clinical update from ongoing trial of ION582 for Angelman syndrome
James River Group (JRVR) files to delay its 10-Q; requires additional time to complete its procedures relating to its quarter-end financial reporting processes
KalVista Pharmaceuticals (KALV) announces phase 3 konfident trial milestone achieved
Lexicon Pharma (LXRX) reports INPEFA Use Associated With Early Clinical Benefit in Heart Failure and Atherosclerotic Events in Analysis of Clinical Data
MediWound (MDWD) receives Positive CHMP Opinion recommending approval for NexoBrid
Milestone Pharmaceuticals (MIST) Presents Results from ReVeRA Phase 2 Study of Etripamil in AFib-RVR at the American Heart Association Scientific Sessions 2023
Neurocrine Biosciences (NBIX) announces settlement of INGREZZA ANDA litigation
Novo Nordisk (NVO) reports Semaglutide 2.4 mg (Wegovy) cardiovascular outcomes data presented at American Heart Association Scientific Sessions and simultaneously published in New England Journal of Medicine
Nurix Therapeutics (NRIX) provides additional detail about the Company's Phase 1 clinical trial evaluating NX-2127 for the treatment of various B-cell malignancies in presentation
NVIDIA (NVDA) ticks higher on report it's working on a new lineup of AI chips customized for China, according to the Wall Street Journal
Petrobras (PBR) gets favorable ruling in labor case before STF
R1 RCM (RCM) to restate certain previously issued financial statements due to errors in accounting for expenses associated with historical acquisitions
Sasol (SSL) Chairman steps down
SNDL Inc. (SNDL) has approved the renewal of its share repurchase program upon the expiry of its current share repurchase program on November 20, 2023
Southwest Air (LUV) exec says Boeing 737 MAX 7 plane to get FAA certification by April, according to Reuters
Spire Global (SPIR) successfully launched 11 satellites on SpaceX's Transporter-9 Mission
Tandem Diabetes Care (TNDM) COO will be stepping down from his current position effective December 31, 2023
Tesla (TSLA): India is mulling cutting EV tariffs to get Tesla to setup plant in the country, according to Financial Times
The Metals Company (TMC) and PAMCO sign binding MOU to complete feasibility study to process polymetallic nodules into battery metal feedstocks
Valneva (VALN) reports positive pivotal Phase 3 Immunogenicity Data in adolescents for its single-shot Chikungunya Vaccine Candidate
Verve Therapeutics (VERV) Announces Interim Data for VERVE-101 Demonstrating First Human Proof-of-Concept for In Vivo Base Editing with Dose-Dependent Reductions in LDL-C and Blood PCSK9 Protein in Patients with Heterozygous Familial Hypercholesterolemia
M&A:
AGCO Corp (AGCO) acquires FarmFacts GmbH's Digital assets
Arch Capital (ACGL) to acquire RMIC Companies, Inc.
Bowman Consulting Group (BWMN) announces the acquisition of Davis, California based Blankinship & Associates
Old Republic (ORI) to sell its mortgage insurance business to Arch Capital Group Ltd. (ACGL)
PVH (PVH) and Basic Resources announce that Basic Resources will acquire PVH's Warners, Olga and True & Co. businesses
TotalEnergies (TTE) acquires 1.5 GW Flexible Power Generation Capacity in Texas
Syndicate:
Acumen Pharmaceuticals (ABOS) has entered into a senior secured loan and security agreement with K2 HealthVentures, a healthcare-focused specialty finance company
IPOs:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
FREY +21.3%, STNE +4.8%, LXRX +4%, BA+3.5%, EP +3.3%, MIST +3.1%, HE +2.1%, IONS +2%, SSL +1.6%, ALNY +1.6%, GNL+1.5%, HVT +1.1%, NVO +0.9%, GSK +0.9%, BBIO +0.6%
Gapping down:
VERV -27.2%, CREV -11.8%, VALN -4.1%, HSIC -3.9%, JRVR -3.4%, HIVE -2.2%, MLYS-2%, AL -1.8%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Enact Holdings (ACT) upgraded to Buy from Neutral at BofA Securities; tgt $30
Guardant Health (GH) upgraded to Outperform from Mkt Perform at Raymond James; tgt $27
Natera (NTRA) upgraded to Strong Buy from Outperform at Raymond James; tgt $68
Downgrades:
Barings BDC (BBDC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $8.50
Crescent Capital BDC (CCAP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $16
Highwoods Prop (HIW) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $20
Hudson Pacific Properties (HPP) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $4
Paramount Group (PGRE) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $4
Others:
Brookfield Business Partners (BBU) resumed with an Outperform at RBC Capital Mkts; tgt $28
Brookfield Renewable Partners (BEP) resumed with an Outperform at RBC Capital Mkts; tgt $29
Cameco (CCJ) resumed with an Outperform at RBC Capital Mkts
GitLab (GTLB) initiated with a Buy at BTIG Research; tgt $56
V2X (VVX) initiated with a Mkt Outperform at JMP Securities; tgt $65
Econ Data:
14:00 ET: Treasury Budget for October (Briefing.comConsensus NA; Prior $171.0B)
Earnings:
Monday (Nov 13)
Morning: FTRE GENI HSIC MNDY NABL ROIV SKIN TSEM TSN
Afternoon: ACM AZTA FSR HROW SLF
Tuesday (Nov 14)
Morning: ARMK CAE CAMT CSIQ CLBT ENR HD HUYA IHS OCSL ONON PSFE SBH SE TME VIPS WKME
Afternoon: HRTX VERX
Wednesday (Nov 15)
Morning: AAP CTLT DAVA GLBE GFF JD NTES RSKD TGT
During Market Hours: TJX
Afternoon: CSCO CPA HI JJSF KLIC MAXN MMS PANW SQM SONO TTEK
Thursday (Nov 16)
Morning: BABA BBWI BERY BRC BV DOLE M NICE SCVL SR SSYS WMT WMG WSM
Afternoon: AMAT BZH DLB ESE GPS GLOB POST ROST UGI WWD ZTO
Friday (Nov 17)
Morning: BJ BKE SPB TWST
Afternoon: ATKR
Asia & Europe detail:
Asia: Nikkei Flat, Hang Seng +1.6%, Shanghai Composite +0.3%
Equity indices in the Asia-Pacific region had a mixed showing to begin the week. Hong Kong's Hang Seng (+1.6%) outperformed on the back of strength in its tech components. Saturday was Singles Day (11/11) in China. Reports suggest sales gains were seen across major e-commerce platforms with deep discounts helping to spur spending. China's President Xi will be at the APEC Summit in San Francisco this week. He is confirmed to meet with President Biden on Wednesday with a reported aim for the two leaders to ease diplomatic tension between the two governments. On a related note, Bloombergreports that China may soon make a purchase announcement for Boeing's 737 Max, which would be the first purchase since 2018. USD/JPY reached its highest level since October 2022 as Japan reported a month-over-month decline in October PPI. USD/JPY +0.2% to 151.72.
In economic data:
Japan's October PPI -0.4% month-over-month (expected 0.0%; last -0.2%) and 0.8% yr/yr (expected 0.9%; last 2.2%); October Machine Tool Orders -20.6% yr/yr (last -11.2%)
China's October New Loans CNY738.4B (expected CNY665.0B; last CNY2310.0B)
---Equity Markets---
Japan's Nikkei: flat
Hong Kong's Hang Seng: +1.6%
China's Shanghai Composite: +0.3%
India's Sensex: -0.5%
South Korea's Kospi: -0.2%
Australia's All Ordinaries: -0.4%
---FX---
USD/JPY: +0.2% to 151.72
USD/CNH: -0.1% to 7.2984
USD/INR: unch at 83.312
Europe: DAX +0.1%, FTSE +0.6%, CAC +0.2%
Major European indices are trading with a modestly positive bias to begin the week. UK Prime Minister Sunak fired home secretary Braverman and, in a major surprise, announced former prime minister David Cameron will be foreign secretary. Staying in the UK, the Rightmove House Price Index saw its biggest decline (-1.3% yr/yr) in five years. ECB member de Guindos says inflation may pick up again temporarily, but that he won't pre-judge any future movement in interest rates before adding that talk about rate cuts is premature, according to Bloomberg.
In economic data:
Germany's September Current Account Balance EUR28.1B (last EUR22.8B)
UK's November Rightmove House Price Index -1.3% yr/yr (last -0.8%)
---Equity Markets---
STOXX Europe 600: +0.5%
Germany's DAX: +0.1%
U.K.'s FTSE 100: +0.6%
France's CAC 40: +0.2%
Italy's FTSE MIB: +0.9%
Spain's IBEX 35: +0.6%
---FX---
EUR/USD: flat at 1.0679
GBP/USD: +0.2% to 1.2241
USD/CHF: +0.1% to 0.9037
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