The S&P 500 futures are up 1 point and are trading in line with fair value. The Nasdaq 100 futures are flat and are trading slightly above fair value. The Dow Jones Industrial Average futures are up 1 point and are trading in line with fair value.
Equity futures are mixed this morning and little changed from the flat line. Target (TGT), down double-digits in premarket action, disappointed with its earnings and outlook, which is likely weighing on sentiment.
Poland believes that the missile that landed yesterday was fired from a Ukrainian air defense system and was unintentional, according to The Wall Street Journal.
Treasury yields are moving lower this morning. The 2-yr note yield is down one basis point to 4.34% and the 10-yr note yield is down four basis points to 3.76%.
The UK reported worse-than-expected inflation data. The Consumer Price Index for October was up 11% yr/yr.
In other news, former President Trump announced he will run for president in 2024.
Market participants will receive the following U.S. economic data today:
7:00 ET: Weekly MBA Mortgage Index (prior -0.1%)
8:30 ET: October Import/Export Prices, October Retail Sales (Briefing.com consensus 0.9%; prior 0.0%), and Retail Sales ex-auto (Briefing.com consensus 0.6%; prior 0.1%)
9:15 ET: October Industrial Production (Briefing.com consensus 0.0%; prior 0.4%) and Capacity Utilization (Briefing.com consensus 80.3%; prior 80.3%)
10:00 ET: September Business Inventories (Briefing.com consensus 0.5%; prior 0.8%) and November NAHB Housing Market Index (Briefing.com consensus 36; prior 38)
10:30 ET: Weekly crude oil inventories (prior +3.92 mln)
In corporate news:
Target (TGT 154.52, -24.46, -13.67%): misses by $0.64, misses on revs; announced an enterprise initiative
Lowe's (LOW 213.84, +5.00, +2.39%): beats by $0.18, beats on revs; raises FY23 EPS above consensus, revs above consensus
TJX ▴ 3.30% (TJX 74.50, -0.62, -0.83%): beats by $0.06, misses on revs; guides FY23 EPS midpoint below consensus; Q3 comps -2%
Intel (INTC 30.75, +0.04, +0.13%): will have to pay $949 mln following verdict in patent dispute, according to Reuters.
NIKE (NKE 105.00, -1.71, -1.60%): increases its quarterly dividend 11% to $0.34/share
Qualcomm (QCOM 126.26, +0.24, +0.19%): Credit Suisse initiated coverage with an Outperform
Restaurant Brands Int'l (QSR 61.50, +1.76, +2.95%): appoints Patrick Doyle as Executive Chairman
Advance Auto (AAP 156.01, -27.93, -15.18%): misses by $0.50, reports revs in-line, comps -0.7%; guides FY22 EPS below consensus, reaffirms FY22 revs guidance
Carnival (CCL 9.78, -1.38, -12.37%): commences a private offering of $1 bln of convertible notes to be used as part of the co's 2024 refinancing plan; prices offering of $1 bln of its 5.75% convertible senior notes due 2027
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: -0.5%, India's Sensex: +0.2%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: -0.3%.
In economic data:
China's October House Prices -1.6% yr/yr (last -1.5%)
Japan's September Core Machinery Orders -4.6% m/m (expected 0.7%; last -5.8%); 2.9% yr/yr (expected 7.4%; last 9.7%). September Tertiary Industry Activity Index -0.4% m/m (expected 0.6%; last 0.7%)
Australia's October MI Leading Index -0.1% m/m (last -0.1%). Q3 Wage Price Index 1.0% qtr/qtr (expected 0.9%; last 0.8%); 3.1% yr/yr (expected 3.0%; last 2.6%)
In news:
Property names in China gave back some of their recent gains after some announced equity raises and restructuring plans. In addition, house prices decreased for the sixth consecutive month in October.
There was speculation that the People's Bank of China will lower the loan prime rate
The U.S.-China Economic and Security Review Commission called on Congress to provide a report on China's compliance with terms of an agreement from 1999 on market access.
Major European indices trade in the red. STOXX Europe 600: -0.8%, Germany's DAX: -1.0%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -1.1%.
In economic data:
U.K.'s October CPI 2.0% m/m (expected 1.7%; last 0.5%); 11.1% yr/yr (expected 10.7%; last 10.1%). October Core CPI 0.7% m/m (expected 0.6%; last 0.6%); 6.5% yr/yr (expected 6.4%; last 6.5%). October Input PPI 0.6% m/m (expected 0.3%; last 0.9%) and Output PPI 0.3% m/m (expected 0.5%; last 0.3%)
Italy's October CPI 3.4% m/m (expected 3.5%; last 0.3%); 11.8% yr/yr (expected 11.9%; last 8.9%)
In news:
Polish officials said that preliminary findings do not suggest that yesterday's missile accident was intentional, and it likely involved a Ukrainian air defense missile.
The U.K.'s CPI accelerated to its highest level in 41 years in the October reading.
The Autumn Budget Statement will be delivered tomorrow, and it is expected to call for tax hikes and spending cuts.
U.S. equity futures:
S&P 500 Futures: -3 @ 3,988
DJIA Futures: -37 @ 33,556
Nasdaq 100 Futures: -16 @ 11,855
Overseas:
Europe: DAX -1.0%, FTSE -0.1%, CAC -0.5%
Asia: Nikkei +0.1%, Hang Seng -0.5%, Shanghai Composite -0.5%
Commodities:
Crude Oil -0.11 @ 86.81
Nat Gas -0.105 @ 5.929
Gold +6.15 @ 1782.95
Silver +0.407 @ 21.925
Copper -0.0273 @ 3.7927
Earnings/Guidance:
Advance Auto ( AAP ▾ 17.26% ) misses by $0.50, reports revs in-line, comps -0.7%; guides FY22 EPS below consensus, reaffirms FY22 revs guidance
Alcon ( ALC ▴ 6.63% ) beats by $0.01, misses on revs; guides FY22 EPS below consensus, revs below consensus
Ferroglobe PLC ( GSM ▾ 15.19% ) reports Q3 (Sep) results, misses on revs (two analyst estimate)
Grab ( GRAB ▴ 3.83% ) beats by $0.02; beats on revs; raises FY22 guidance
Lowe's ( LOW ▴ 5.77% ) beats by $0.18, beats on revs; raises FY23 EPS above consensus, revs above consensus
Navigator Holdings ( NVGS ▾ 9.70% ) reports Q3 (Sep) results, beats on revs
On ( ONON ▾ 11.66% ) misses by CHF0.04, beats on revs; guides FY22 revs above consensus
Similarweb ( SMWB ▾ 21.61% ) beats by $0.09, slightly beats on revs; issues downside Q4 revenue guidance
Target ( TGT ▾ 12.29% ) misses by $0.64, misses on revs; announced an enterprise initiative
TJX ( TJX ▴ 3.30% ) beats by $0.06, misses on revs; guides FY23 EPS below consensus
Varex Imaging ( VREX ▴ 1.43% ) beats by $0.06, beats on revs; guides Q1 EPS in-line, revs in-line
Vimeo ( VMEO ▾ 1.73% ) reports October 2022 total sales +2% yr/yr, subscribers -3% yr/yr, ARPU +5% yr/yr
Winnebago ( WGO ▴ 0.21% ) outlines its 2025 strategic plan during Investor Day; targets $5.5 bln in revs; 19% gross margins; 13% adjusted EBITDA, and $400 mln in free cash flow
ZIM Integrated Shipping ( ZIM ▴ 2.12% ) beats on top and bottom lines; raises guidance
News:
President Biden says it is "unlikely" missiles that landed in Poland yesterday were fired from Russia; says NATO will have a meeting
NATO ambassadors to meet at the request of Poland for consultations, according to Reuters
Poland believes that missile that landed yesterday was fired from a Ukrainian air defense system and was unintentional, according to the Wall Street Journal
China continues to ease coronavirus restrictions, according to the Wall Street Journal
Former President Trump announces he will run for president in 2024
Senate passes bill 62-36 to end coronavirus emergency, but President Biden says he will veto it, according to the Wall Street Journal
FTX could have 1 million creditors, according to Reuters
White House issues readout of President Joe Biden's Meeting with Prime Minister Rishi Sunak of the United Kingdom
55 million Americans are expected to travel for Thanksgiving, according to the Wall Street Journal
EU and Egypt step up cooperation on the clean energy transition
2U ( TWOU ▾ 6.27% ): edX, an online learning platform from 2U, announces a new collaboration with Emeritus, a provider of online courses
AMERCO ( UHAL ▴ 1.94% ) to transfer of listing of common stock to the NYSE and change name on December 19
Amkor ( AMKR ▾ 1.70% ) increases quarterly dividend by 50% to $0.075/sh, new yield is 1.1%; also to return 40-50% of cumulative free cash flow generated over time
ANI Pharma ( ANIP ▴ 2.20% ) announces the FDA approval and launch of trimethoprim tablets USP
Apple ( AAPL ▾ 1.03% ) prepares to source chips for its devices from a plant under construction in Arizona, according to Bloomberg
Ardelyx ( ARDX ▴ 0.82% ): FDA Cardiovascular and Renal Drugs Advisory Committee planning to hold a virtual meeting tomorrow to discuss new drug application (NDA) 213931, for tenapanor hydrochloride tablets
Athira Pharma ( ATHA ▾ 3.17% ) presents preclinical data supporting therapeutic potential of HGF/MET Platform at Neuroscience 2022 Conference
Axalta Coating Systems ( AXTA ▾ 1.30% ) appoints Chris Villavarayan as Chief Executive Officer and President
BlackBerry ( BB ▾ 0.62% ) expands BlackBerry SecuSUITE partners in Asia Pacific, with three new companies certified to deliver software for governments and enterprises
Broadmark Realty ( BRMK ▾ 9.69% ) lowers monthly cash dividend to $0.035 per share from $0.07 per share
CEMEX S.A. ( CX ▾ 0.11% ) expects a promising medium-term outlook for its markets, bolstered by fiscal stimulus packages in the US and Europe related to infrastructure and green spending
Cyxtera Technologies ( CYTX ) announces update on REIT Conversion
Dada ( DADA ▴ 0.80% ) sets new records for sales and delivery volume during 2022 Singles' Day Grand Promotion
Discover Financial Services ( DFS ▴ 3.63% ) to resume repurchases under its existing share repurchase program authorizing up to $4.2 bln of share repurchases through June 30, 2023
Ford ( F ▾ 2.10% ) believes electric vehicle production will need 40% fewer workers, according to Financial Times
Granite Constr ( GVA ▾ 1.27% ) and California Engineering Contractors awarded another contract by the California Department of Transportation; newest contract is a $50 million child project
Group 1 Auto ( GPI ▴ 0.09% ) increased its common stock repurchase authorization by $161 million to $200 million, and also declared an increase to the quarterly cash dividend to $0.39/share from $0.38/share
ICF International ( ICFI ▾ 0.19% ) awarded two contracts totaling $34 mln from the U.S. DOL ILAB; both were awarded in Q3
Insteel Industries ( IIIN ▴ 2.53% ) declares a special cash dividend of $2.00 per share
Intel ( INTC ▾ 2.44% ) will have to pay $949 mln following verdict in patent dispute, according to Reuters
LL Flooring Holdings ( LL ▾ 5.29% ) announced that its Executive Vice President and CFO Nancy Walsh has decided to pursue another opportunity and will be leaving the company effective December 9, 2022
Lulu's Fashion Lounge ( LVLU ▾ 17.49% ) promotes CFO Crystal Landsem to become new CEO, effective March 6
New Found Gold Corp. ( NFGC ▴ 2.77% ) Intercepts 85.7 G/T AU Over 5.65M & 13.4 G/T AU Over 9.05M at Keats Main Zone, Initiates Use of Chrysos PhotonAssay Method
NIKE ( NKE ▾ 0.27% ) increases its quarterly dividend 11% to $0.34/share
O'Reilly Auto ( ORLY ▴ 1.82% ) approves to increase its share repurchase program by an additional $1.5 bln, raising the aggregate authorization under the program to $21.75 bln
Peloton ( PTON ▾ 4.65% ) announces expansion of collaboration with Amazon (AMZN) in UK, Germany
Pennant Group ( PNTG ▾ 10.37% ) initiates a search for a new CFO; current CFO Jennifer Freeman moves to interim CFO with the intention to remain with the company; CIO Derek Bunker to resign, effective December 31
Restaurant Brands Int'l ( QSR ▴ 6.36% ) appoints Patrick Doyle as Executive Chairman
Sempra Energy ( SRE ▴ 2.24% ) enters into a heads of agreement (HOA) with Williams (WMB) for the offtake of liquefied natural gas (LNG) and development of associated natural gas pipeline projects
Sundial Growers' ( SNDL ▴ 1.12% ) Board approves share repurchase program of up to C$100 mln in common stock
Teradyne ( TER ▾ 2.71% ) announces that Gregory Smith, President of the company, will succeed Mark E. Jagiela as CEO
Terran Orbital ( LLAP ▾ 0.94% ) announced the successful launch of LunIR
Tesla ( TSLA ▾ 2.74% ) had two fatal crashes related to driver assistance systems, according to Reuters
Walt Disney ( DIS ▾ 1.15% ) will hike ticket prices to its four parks next month, according to NY Post
Zegna Group ( ZGN ▾ 0.65% ) to enter a long-term license for TOM FORD fashion with Este Lauder (EL), contingent on the closing of the acquisition by EL
M&A:
Arconic ( ARNC ▾ 2.78% ) completes sale of 100% of its Russian operations to Promishlennie Investitsii LLC, the majority owner of VSMPO-AVISMA, for $230 mln
Estee Lauder ( EL ▾ 0.42% ) confirms plans to acquire Tom Ford for $2.8 bln in cash, debt and $300 mln in deferred payments; expects to be dilutive to adjusted EPS in FY23; neutral to adjusted EPS in FY24
OceanTech Acquisitions I Corp ( OTEC ▾ 0.48% ): Majic Wheels Corp enters definitive merger agreement with OceanTech Acquisitions I Corp
Oshkosh ( OSK ▾ 2.14% ) to acquire Hinowa S.p.A, a manufacturer of track-based aerial work platforms, lift trucks, and undercarriages; financial details not disclosed
Syndicate:
AerSale ( ASLE ▾ 12.68% ) selling stockholders intends to offer for sale in an underwritten secondary offering 4.0 mln shares of common stock
Carnival ( CCL ▾ 13.66% ) commences a private offering of $1 bln of convertible notes to be used as part of the co's 2024 refinancing plan
ESAB Corp. ( ESAB ▴ 8.02% ) prices secondary offering of 6,003,431 shares of its common stock currently owned by Enovis Corporation (ENOV) at $40.00 per share
Ginkgo Bioworks ( DNA ▾ 9.55% ) intends to offer and sell $100 mln of its common stock in an underwritten public offering
Hologic ( HOLX ▾ 0.87% ) files mixed securities shelf offering
indie Semiconductor ( INDI ▾ 14.59% ) announces convertible senior notes offering and $50 mln share repurchase program
Laureate Education ( LAUR ▾ 9.71% ) commences underwritten secondary offering of 32,842,183 shares by certain existing stockholders affiliated with Kohlberg Kravis Roberts & Co. L.P.
Natera ( NTRA ▴ 11.62% ) prices offering of 11.43 mln shares of common stock at $35.00 per share
Privia Health ( PRVA ▾ 5.69% ) files mixed securities shelf offering
Sarcos Technology ( STRC 0.00% ) files $150 mln mixed securities shelf offering
UroGen Pharma ( URGN ▾ 2.42% ) files $250 mln mixed securities shelf offering
Wolfspeed ( WOLF ▾ 2.28% ) to offer $1.3 bln million aggregate principal amount of its Convertible Senior Notes due 2029
IPOs:
Expect to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
ARDX +5.7%, ALC +3.5%, ZGN +3.1%, OSK +3%, LOW +3%, EL +1.8%, NTRA +1.4%, IIIN +1.3%, WMB +0.9%, QSR +0.9%, TER +0.8%, WGO +0.7%, VREX +0.5%
Gapping down:
AAP -14.1%, LVLU -12.6%, CCL -12.4%, SMWB -9.6%, GSM -9.2%, NVGS -7.8%, DNA -6.7%, ASLE -5%, PRVA -3%, HOLX -2.8%, TWOU -2.6%, ORLY -2.1%, SRE -2.1%, AZO -1.8%, TWST -1.5%, ESAB -1%, ONON -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
BRF SA (BRFS) upgraded to Neutral from Sell at Goldman
Cabot (CBT) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $90
Consolidated Water (CWCO) upgraded to Buy from Neutral at Janney; tgt $20
Lincoln National (LNC) upgraded to Buy from Neutral at Goldman; tgt lowered to $46
Oscar Health (OSCR) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $4
Tencent Music (TME) upgraded to Buy from Hold at The Benchmark Company; tgt $7
Downgrades:
Corteva (CTVA) downgraded to Neutral from Buy at UBS; tgt raised to $73
DT Midstream (DTM) downgraded to Peer Perform from Outperform at Wolfe Research
Evoqua Water (AQUA) downgraded to Perform from Outperform at Oppenheimer
Evotec SE (EVO) downgraded to Hold from Buy at Deutsche Bank
Magellan Midstream (MMP) downgraded to Underperform from Peer Perform at Wolfe Research; tgt $49
Rapid7 (RPD) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Others:
AbCellera Biologics (ABCL) initiated with a Buy at Truist; tgt $29
MindMed (MNMD) initiated with an Outperform at RBC Capital Mkts; tgt $5
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Nov. 12 (Briefing.com Consensus NA; Prior -0.1%)
08:30 ET: Retail Sales for Oct (Briefing.com Consensus 0.9%; Prior 0.0%)
08:30 ET: Retail Sales ex-auto for Oct (Briefing.com Consensus 0.6%; Prior 0.1%)
08:30 ET: Export Prices ex-Ag for Oct (Briefing.com Consensus NA; Prior -0.9%)
08:30 ET: Import Prices ex-Oil for Oct (Briefing.com Consensus NA; Prior -0.4%)
09:15 ET: Industrial Production for Oct (Briefing.com Consensus 0.0%; Prior 0.4%)
09:15 ET: Capacity Utilization for Oct (Briefing.com Consensus 80.3%; Prior 80.3%)
10:00 ET: Business Inventories for Sep (Briefing.com Consensus 0.5%; Prior 0.8%)
10:00 ET: NAHB Housing Market Index for Nov (Briefing.com Consensus 36; Prior 38)
10:30 ET: EIA Crude Oil Inventories for Nov 12 (Briefing.com Consensus NA; Prior +3.92M)
16:00 ET: Net Long-Term TIC Flows for Sep (Briefing.com Consensus NA; Prior $197.9B)
Earnings:
Monday (Nov 14)
Morning: MASS ACM YOU CGEN XRAY MNDY OTLY TWKS TSEM TSN
Afternoon: AZTA DLO HLLY JJSF SHLS VVV
Tuesday (Nov 15)
Morning: ARMK BERY DAVA ENR AQUA HD HUYA DNUT SE TME WKME WMT
Afternoon: AAP VREX
Wednesday (Nov 16)
Morning: LOW ONON SR TGT TJX
Afternoon: BBWI CSCO CPA CPRT GLBE HP HI KLIC NVDA SONO
Thursday (Nov 17)
Morning: BABA BJ BRC BV CAMT CLBT DOLE KSS M NTES NJR WB
Afternoon: AMAT BRBR DLB ESE FTCH GPS GLOB KEYS PANW POST ROST STNE UGI WSM WWD
Friday (Nov 18)
Morning: ATKR BKE FL JD SPB TWST
Asia & Europe detail:
Asia: Nikkei +0.1%, Hang Seng -0.5%, Shanghai Composite -0.5%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Property names in China gave back some of their recent gains after some announced equity raises and restructuring plans. In addition, house prices decreased for the sixth consecutive month in October. There was speculation that the People's Bank of China will lower the loan prime rate. The U.S.-China Economic and Security Review Commission called on Congress to provide a report on China's compliance with terms of an agreement from 1999 on market access.
In economic data:
China's October House Prices -1.6% yr/yr (last -1.5%)
Japan's September Core Machinery Orders -4.6% m/m (expected 0.7%; last -5.8%); 2.9% yr/yr (expected 7.4%; last 9.7%). September Tertiary Industry Activity Index -0.4% m/m (expected 0.6%; last 0.7%)
Australia's October MI Leading Index -0.1% m/m (last -0.1%). Q3 Wage Price Index 1.0% qtr/qtr (expected 0.9%; last 0.8%); 3.1% yr/yr (expected 3.0%; last 2.6%)
---Equity Markets---
Japan's Nikkei: +0.1%
Hong Kong's Hang Seng: -0.5%
China's Shanghai Composite: -0.5%
India's Sensex: +0.2%
South Korea's Kospi: -0.1%
Australia's ASX All Ordinaries: -0.3%
---FX---
USD/JPY: +0.1% to 139.43
USD/CNH: +0.6% to 7.0870
USD/INR: +0.3% to 81.27
Europe: DAX -1.0%, FTSE -0.1%, CAC -0.5%
Major European indices trade in the red. Polish officials said that preliminary findings do not suggest that yesterday's missile accident was intentional, and it likely involved a Ukrainian air defense missile. The U.K.'s CPI accelerated to its highest level in 41 years in the October reading. The Autumn Budget Statement will be delivered tomorrow, and it is expected to call for tax hikes and spending cuts.
In economic data:
U.K.'s October CPI 2.0% m/m (expected 1.7%; last 0.5%); 11.1% yr/yr (expected 10.7%; last 10.1%). October Core CPI 0.7% m/m (expected 0.6%; last 0.6%); 6.5% yr/yr (expected 6.4%; last 6.5%). October Input PPI 0.6% m/m (expected 0.3%; last 0.9%) and Output PPI 0.3% m/m (expected 0.5%; last 0.3%)
Italy's October CPI 3.4% m/m (expected 3.5%; last 0.3%); 11.8% yr/yr (expected 11.9%; last 8.9%)
---Equity Markets---
STOXX Europe 600: -0.8%
Germany's DAX: -1.0%
U.K.'s FTSE 100: -0.1%
France's CAC 40: -0.5%
Italy's FTSE MIB: -0.6%
Spain's IBEX 35: -1.1%
---FX---
EUR/USD: +0.7% to 1.0419
GBP/USD: +0.3% to 1.1898
USD/CHF: -0.5% to 0.9392
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