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Writer's pictureSimon Charles Hooper

26/10/22 Briefing

Updated: Oct 27, 2022


The S&P 500 futures are down 28 points and are trading 0.7% below fair value. The Nasdaq 100 futures are down 198 points and are trading 1.7% below fair value. The Dow Jones Industrial Average futures are down 30 points and are trading 0.1% below fair value.

The Nasdaq 100 futures suffer heavy losses, weighed down by Alphabet (GOOG) and Microsoft (MSFT). Things are holding up relatively better for the Dow and S&P 500 futures, which are drawing a measure of support from the notion that the Fed will take a less aggressive rate hike approach after the November meeting due to the emerging signs of an economic slowdown.

Treasury yields are moving lower. The 2-yr note yield is down two basis points to 4.45% and the 10-yr note yield is down five basis points to 4.05%.

New lockdown measures have reportedly been implemented in Wuhan amid rising Covid cases.

In other developments, UK Prime Minister Sunak has delayed the release of the governments fiscal plan to Nov. 17. 

The weekly MBA Mortgage Applications Index was down 1.7% with purchase applications down 2.0% and refinancing applications down 0.1%.

Other data releases today include:

  • 8:30 ET: September advance goods trade deficit (prior -$87.30 bln), September advance Retail Inventories (prior 1.4%), and September advance Wholesale Inventories (prior 1.3%)

  • 10:00 ET: September New Home Sales (Briefing.comconsensus 575,000; prior 685,000)

  • 10:30 ET: Weekly crude oil inventories (prior -1.73 mln)

In corporate news:

  • Alphabet (GOOG 98.46 -6.47 (-6.17%): misses by $0.19, misses on revs; Google Advertising revenue up 2.5%, YouTube ad revenue down 1.8%; Q4 will see similar challenges faced in Q3

  • Microsoft (MSFT 234.50 -16.16 (-6.45%)): beats by $0.04, reports revs in-line; Azure +42% CC, slightly below prior guidance of +43%; guides for total revenues of $52.35-53.35 bln vs. $54.8 bln Capital IQ consensus

  • Chipotle Mexican Grill (CMG 1,569.45 -14.57 (-0.92%): beats by $0.32, reports revs in-line; Expects Q4 comps to be in mid-to-high single digit range

  • Visa (V 198.45 +4.07 (+2.09%): beats by $0.07, beats on revs; announces new buyback, dividend hike

  • Texas Instruments (TXN 153.08 -9.08 (-5.60%): beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs below consensus

  • Mattel (MAT 18.75 -1.02 (-5.16%): beats by $0.08, misses on revs; guides FY22 EPS below consensus

  • Enphase Energy (ENPH 281.03 +15.44 (+5.81%): beats by $0.16, beats on revs; guides Q4 revs above consensus

  • Skechers USA (SKX 30.87 -5.06 (-14.08%): misses by $0.17, beats on revs; guides Q4 revs below consensus

  • Spotify (SPOT 90.80 -6.25 (-6.44%): misses by $0.15, reports revs in-line; guides Q4 revs in-line

  • Boeing (BA 146.31 -0.34 (-0.23%): reports Q3 (Sep) results, misses on revs; revenue and earnings impacted by losses on fixed-price defense development programs; on path to achieving positive free cash flow for 2022

  • Kraft Heinz (KHC 38.37 +1.31 (+3.53%): beats by $0.07, beats on revs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a higher note while markets in India were closed for Diwali. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +0.8%, India's Sensex: CLOSED, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.2%.

    • In economic data:

      • South Korea's November Manufacturing BSI Index 75 (last 73)

      • Japan's September Corporate Services Price Index 2.1% yr/yr, as expected (last 2.0%). September Leading Index 101.3 (last 98.9) and Coincident Indicator 1.7% m/m (last 1.6%)

      • Singapore's September Industrial Production 0.0% m/m (expected 1.1%; last 1.6%); 0.9% yr/yr (expected 1.3%; last 0.4%)

      • Australia's Q3 CPI 1.8% qtr/qtr (expected 1.6%; last 1.8%); 7.3% yr/yr (expected 7.0%; last 6.1%)

      • New Zealand's October ANZ Business Confidence -42.7 (last -36.7)

    • In news:

      • Japan is reportedly launching a JPY100 bln startup fund. Separately, the country is planning to end its gasoline subsidy program that began in June.

      • Australia's inflation was up 7.3% in Q3, increasing at its fastest pace in 32 years.

      • ANZ Bank expects that the Reserve Bank of Australia's terminal cash rate will be at 3.85%, up 125 bps from the current level.

  • Major European indices trade near their flat lines while Germany's DAX (+0.5%) outperforms. STOXX Europe 600: -0.2%, Germany's DAX: +0.5%, U.K.'s FTSE 100: -0.4%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: +0.2%.

    • In economic data:

      • Eurozone's September M3 Money Supply 6.3% yr/yr (expected 6.1%; last 6.1%) and loans to nonfinancials 8.9% yr/yr (last 8.7%)

      • France's October Consumer Confidence 82 (expected 77; last 79)

      • Italy's non-EU trade deficit EUR5.44 bln (last deficit of EUR5.79 bln)

      • Swiss October ZEW Expectations -53.1 (last -69.2)

    • In news:

      • British Prime Minister Sunak postponed the Autumn fiscal statement from October 31 to November 17.

      • Deutsche Bank reported better than expected results while Mercedes beat estimates and raised its profit forecast for the full year.

      • Spain's economy minister Calvino said that his country is not expected to fall into recession.

      • The European Central Bank is expected to announce a 75-bps rate hike tomorrow.

 

U.S. equity futures:

  • S&P 500 Futures: -30 @ 3,829

  • DJIA Futures: -38 @ 31,799

  • Nasdaq 100 Futures: -202 @ 11,468

Overseas:

  • Europe: DAX +0.5%, FTSE -0.4%, CAC UNCH

  • Asia: Nikkei +0.7%, Hang Seng +1.0%, Shanghai Composite +0.8%

Commodities:

  • Crude Oil +0.82 @ 86.14

  • Nat Gas  -0.116 @ 6.05

  • Gold +14.35 @ 1672.35

  • Silver +0.206  @ 19.555

  • Copper +0.0883 @ 3.485

U.S. Summary:

  • Earnings/Guidance:

    • Agilysys (AGYS) beats by $0.06, beats on revs; reaffirms FY23 revs guidance

    • Alphabet (GOOG) misses by $0.19, misses on revs; Google Advertising revenue up 2.5%, YouTube ad revenue down 1.8%

    • Ameriprise Financial (AMP) beats by $0.58, beats on revs

    • Automatic Data (ADP) beats by $0.07, beats on revs; raises FY23 EPS above consensus, revs in-line

    • AVANGRID (AGR) misses by $0.04; reaffirms FY22 EPS guidance

    • Avery Dennison (AVY) misses by $0.01, reports revs in-line; lowers FY22 EPS below consensus

    • Axalta Coating Systems (AXTA) reports EPS in-line, beats on revs; guides Q4 EPS below consensus, expects net sales ~6-8% including ~(7%) foreign currency impact and mid single-digit volume growth

    • Barclays PLC (BCS) beats by one pence; beats on revs; provides outlook

    • Boeing (BA) reports Q3 (Sep) results, misses on revs; revenue and earnings impacted by losses on fixed-price defense development programs; on path to achieving positive free cash flow for 2022

    • Boston Properties (BXP) beats by $0.04, beats on revs; guides FY22 FFO in-line; guides FY23 FFO below consensus

    • Boston Scientific (BSX) misses by $0.01, beats on revs; guides Q4 EPS below consensus

    • Boyd Gaming (BYD) beats by $0.15, beats on revs

    • Braemar Hotels & Resorts (BHR) provides preliminary Q3 results

    • Brinks (BCO) beats by $0.03, misses on revs; guides FY22 EPS in-line, revs below two analyst estimate

    • Bristol-Myers (BMY) beats by $0.16, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

    • Bunge (BG) beats by $0.90, beats on revs; raises FY22 EPS above consensus

    • Canadian Nat'l Rail (CNI) beats by $0.12, beats on revs

    • ChampionX (CHX) beats by $0.01, beats on revs; Board of Directors approved an increase to its share repurchase program

    • Chefs' Warehouse (CHEF) beats by $0.13, beats on revs; guides FY22 revs mostly above consensus

    • Chemours (CC) beats by $0.17, beats on revs; reaffirms FY22 adjusted EBITDA and free cash flow guidance

    • Chipotle Mexican Grill (CMG) beats by $0.32, reports revs in-line

    • Chubb (CB) beats by $0.56, reports revs in-line

    • CME Group (CME) beats by $0.04, misses on revs

    • Constellium (CSTM) beats by $0.46, beats on revs

    • CoStar Group (CSGP) beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line

    • Deutsche Bank (DB) beats by EUR0.03; beats on revs

    • Driven Brands (DRVN) beats by $0.05, beats on revs; guides FY22 EPS above consensus, revs in-line

    • Eagle Materials (EXP) beats by $0.14, beats on revs

    • EastGroup (EGP) beats by $0.02, beats on revs; narrows FY22 FFO in-line

    • Encore Wire (WIRE) beats by $3.15, beats on revs

    • Enphase Energy (ENPH) beats by $0.16, beats on revs; guides Q4 revs above consensus

    • Equity Commonwealth (EQC) beats by $0.09, misses on revs

    • Equity Residential (EQR) reports FFO in-line, revs in-line; guides Q4 FFO in-line

    • Evercore (EVR) beats by $0.83, beats on revs

    • F5 Networks (FFIV) beats by $0.10, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY23 revs above consensus, expects FY23 non-GAAP earnings growth in the low-to-mid teens

    • First Commonwealth (FCF) misses by $0.02, net interest income increased 16.5%, increases quarterly dividend by 4.3%

    • FirstEnergy (FE) reports EPS in-line, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs in-line

    • Flagstar Bancorp (FBC) beats by $0.17

    • Fortive (FTV) beats by $0.03, reports revs in-line; guides Q4 EPS below consensus, revs below consensus

    • Garmin (GRMN) beats by $0.12, misses on revs; guides FY22 revs below consensus

    • General Dynamics (GD) beats by $0.10, reports revs in-line

    • Group 1 Auto (GPI) beats by $1.37, beats on revs

    • Harley-Davidson (HOG) beats by $0.38, beats on revs

    • Hawaiian Holdings (HA) beats by $0.03, reports revs in-line; sees Q4 revs up 1.5-5.5% versus Q4 2019

    • Hess (HES) reports EPS in-line, beats on revs

    • Highwoods Prop (HIW) beats by $0.08, reports revs in-line; raises FY22 FFO above consensus

    • Hilton (HLT) beats by $0.07, misses on revs; guides Q4 EPS in-line

    • IDEX Corp (IEX) beats by $0.14, beats on revs; guides Q4 EPS in-line, expects organic sales growth of 9% yr/yr

    • Integra (IART) beats by $0.14, beats on revs; guides Q4 EPS in-line, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance

    • IQVIA (IQV) beats by $0.10, reports revs in-line; guides Q4 EPS in-line, revs below consensus; guides FY22 EPS in-line, revs below consensus

    • Juniper Networks (JNPR) beats by $0.08, beats on revs; guides Q4 EPS in-line, revs in-line

    • KBR (KBR) beats by $0.02, misses on revs; guides FY22 EPS in-line, revs in-line

    • Kilroy Realty (KRC) beats by $0.04, beats on revs; guides FY22 FFO above consensus

    • Kraft Heinz (KHC) beats by $0.07, beats on revs

    • Luxfer (LXFR) beats by $0.02, misses on revs; guides FY22 EPS in-line, lowers high end of prior guidance range

    • Manhattan Assoc (MANH) beats by $0.09, beats on revs; guides FY22 EPS above consensus, revs above consensus

    • Masco (MAS) misses by $0.08, misses on revs; lowers FY22 EPS below consensus

    • Matador Resources (MTDR) beats by $0.15, beats on revs

    • Mattel (MAT) beats by $0.08, misses on revs; guides FY22 EPS below consensus

    • MaxLinear (MXL) beats by $0.01, reports revs in-line; guides Q4 revs in-line

    • Mercedes-Benz Group AG (MBGYY) reports Q3 results; revs rise 19% yr/yr

    • Microsoft (MSFT) beats by $0.04, reports revs in-line; Azure +42% CC, slightly below prior guidance of +43%; guides on conference call for total revenues of $52.35-53.35 bln vs. $54.8 bln Capital IQ consensus

    • Monro Muffler (MNRO) misses by $0.02, misses on revs, comparable stores sales increased 1.3%

    • NCR Corp (NCR) beats by $0.02, misses on revs

    • New Oriental Education & Technology (EDU) beats by $0.15, beats on revs; guides Q2 revs above two analyst estimate

    • NextGen Healthcare (NXGN) beats by $0.02, beats on revs; guides FY23 EPS in-line, revs above consensus

    • NexTier Oilfield (NEX) beats by $0.06, misses on revs; guides Q4 revs below consensus; authorizes up to $250 mln for share repurchases

    • Old Dominion (ODFL) beats by $0.28, reports revs in-line

    • Otis Worldwide (OTIS) beats by $0.02, misses on revs; lowers FY22 EPS below consensus, revs below consensus

    • Owens Corning (OC) beats by $0.38, reports revs in-line

    • Penske Auto (PAG) beats by $0.26, beats on revs

    • PROG Holdings (PRG) beats by $0.04, reports revs in-line; guides FY22 EPS below consensus, revs below consensus

    • Prosperity Bancshares (PB) reports EPS in-line; raises dividend

    • Retail Opportunity Investments (ROIC) misses by $0.01, reports revs in-line; guides FY22 FFO in-line

    • Roper (ROP) beats by $0.22, beats on revs; guides Q4 EPS above consensus; raises FY22 EPS above consensus

    • Silicon Labs (SLAB) beats by $0.12, reports revs in-line; guides Q4 EPS in-line, revs below consensus

    • Skechers USA (SKX) misses by $0.17, beats on revs; guides Q4 revs below consensus

    • Spotify (SPOT) misses by $0.15, reports revs in-line; guides Q4 revs in-line

    • Stifel Financial (SF) misses by $0.16, misses on revs

    • Stride (LRN) reports Q1 (Sep) results, beats on revs; guides Q2 revs above consensus; guides FY23 revs in-line

    • Taylor Morrison Home (TMHC) beats by $0.21, misses on revs

    • Tenable (TENB) beats by $0.12, beats on revs; guides Q4 EPS above consensus, revs slightly below consensus

    • Teradyne (TER) beats by $0.11, beats on revs; guides Q4 EPS in-line, revs in-line

    • Texas Instruments (TXN) beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs below consensus

    • Thermo Fisher (TMO) beats by $0.26, beats on revs

    • Timken (TKR) beats by $0.18, beats on revs; guides FY22 EPS above consensus

    • TriNet Group (TNET) beats by $0.62; guides Q4 EPS below consensus

    • Turning Point Brands (TPB) misses by $0.01, beats on revs

    • UMB Financial Corporation (UMBF) misses by $0.33, net interest income increased 3.9%

    • United Micro (UMC) beats by $0.23, beats on revs, sees Q4 wafer shipments decreasing by 10% qtr/qtr

    • Universal Health (UHS) beats by $0.12, beats on revs

    • Veritex Holdings (VBTX) beats by $0.03, beats on revs; declares dividend

    • Vertiv (VRT) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line

    • Visa (V) beats by $0.07, beats on revs; announces new buyback, dividend hike

    • Wabash Natl (WNC) beats by $0.16, beats on revs; guides FY22 EPS above consensus, reaffirms FY22 revs guidance

    • Waste Mgmt (WM) beats by $0.04, reports revs in-line

    • WPP plc (WPP) provides Q3 trading update; Q3 revs above single estimate; updates outlook

    • Wyndham Hotels & Resorts (WH) beats by $0.17, beats on revs; guides FY22 EPS above consensus; increases share repurchase authorization by $400 mln

    • Zurn Elkay Water Solutions (ZWS) beats by $0.02, reports revs in-line; guides Q3 revs below consensus

  • News:

    • Goldman Sachs does not believe conditions exist for bottom in equities, according to Bloomberg

    • UK delays fiscal statement to November 17, according to Reuters

    • Democrat John Fetterman's "uneven" debate performance could give Republican Mehmet Oz momentum in race that could decide control of Senate, according to Bloomberg

    • NYC restaurants cutting back on hours amid surge in crime and worker shortages, according to the New York Post

    • Automakers to double spending on EV and battery development by 2030, according to Reuters

    • New COVID-19 cases were discovered in Macau, according to Bloomberg

    • Allison Transmission (ALSN) has secured 80% market share of agriculture sprayer transmissions in Argentina since entering the market in 2015

    • Alphabet (GOOG) enters into stipulated agreement to improve legal process compliance program

    • Apple (AAPL) executive says company will comply with EU law on USB-C chargers, according to Bloomberg

    • AstraZeneca (AZN) reports Capivasertib plus Faslodex significantly improved progression-free survival vs. Faslodex in CAPItello-291 Phase III trial in advanced HR-positive breast cancer

    • Atara Biotherapeutics (ATRA) Presents New MRI and Updated Open-Label Extension Data from Phase 1 Study of ATA188 in Progressive Multiple Sclerosis at ECTRIMS 2022

    • Automatic Data (ADP) appointed Maria Black to succeed Carlos Rodriguez as CEO effective January 1, 2023; Rodriguez to continue as Exec Chair

    • Bed Bath & Beyond (BBBY) appoints Sue Gove as President and CEO

    • BeiGene (BGNE) receives recent regulatory approvals in six Latin America countries for BRUKINSA, including Argentina, Chile, Ecuador, El Salvador, Mexico, and Paraguay

    • Biogen (BIIB): New Data at ECTRIMS 2022 Highlight Biogen's Commitment to Advancing Individualized Disease Management for People Living with MS

    • Biohaven (BHVN) announces advancements in the development of its MoDE extracellular target degrader platform technology licensed from Yale University for various disease indications, including, but not limited to, neurological disorders, cancer, infectious and autoimmune diseases

    • Bristol-Myers (BMY): New Zeposia (ozanimod) Data Highlight COVID-19 Outcomes and Preservation of Long-Term Cognitive Function from Separate Analyses in Patients with Relapsing Forms of Multiple Sclerosis

    • Crescent Point Energy (CPG) declares CDN$0.35/share special dividend and leaves quarterly dividend unchanged at CDN$0.08/share

    • Essential Utilities (WTRG) receives approval by the PA Infrastructure Authority for a PENNVEST grant to construct a treatment vacility for two of its Hatboro well stations in Montgomery County

    • Evercore (EVR) announces that Evercore Chief Financial Officer Celeste Mellet will depart for a new position

    • Exelixis (EXEL) Announces Promising Initial Dose-Escalation Results from the First-in-Human Phase 1 JEWEL-101 Trial Evaluating XB002 in Patients with Advanced Solid Tumors at ENA 2022

    • ExxonMobil (XOM) Announces Two New Guyana Discoveries

    • Gap (GPS) and Foot Locker (FL) remove Kayne West merchandise, according to Axios

    • Granite Constr (GVA) has been selected by the City of Long Beach for an ~$33 mln project on Artesia Great Boulevard R-7191in Long Beach, California

    • HCA (HCA) promotes Jon Foster to COO

    • Kura Oncology (KURA) Reports Preliminary Proof of Mechanism in Phase 1/2 Clinical Trial of Tipifarnib Plus Alpelisib in Head and Neck Squamous Cell Carcinoma

    • Life Storage (LSI) CFO Andrew Gregoire to retire; succeeded by Alexander Gress, VP of Finance, effective January 2, 2023

    • MAG Silver (MAG) reports third quarter metal production from the Juanicipio Project

    • Merus (MRUS) Presents First in Human Data on MCLA-129 at the 34th EORTC/NCI/AACR (ENA) Symposium on Molecular Targets and Cancer Therapeutics

    • Meta (META) critical of Apple (AAPL) over privacy rules, according to Bloomberg

    • Modine Manufacturing (MOD) to supply a custom EVantage Thermal Management System for Blue Arc EV Solutions Class 3 all-electric delivery vehicle to The Shyft Group (SHYF)

    • Mondelez Int'l (MDLZ) announces the next phase of its Cocoa Life program, backed by an additional $600 mln through 2030, for a total $1 bln investment since the start of the program, with the goal to increase cocoa volume at scale and work with about 300,000 farmers in the program by 2030

    • Nurix Therapeutics (NRIX) announced the presentation of new preliminary clinical data comprised of a case study of a patient with aggressive non-germinal center B-cell diffuse large B cell lymphoma

    • Nuvalent (NUVL) Announces New Preclinical Data for Selective Kinase Inhibitors NVL-330 and NVL-655

    • Olema Oncology (OLMA) Announces Complete ER Antagonist OP-1250 Continues to Demonstrate Robust Activity in Phase 1/2 Clinical Trial

    • Rollins (ROL) raises quarterly dividend by 30% to $0.13 per share

    • Seres Therapeutics (MCRB) announces the U.S. Food and Drug Administration has accepted for review a Biologics License Application for investigational oral microbiome therapeutic SER-109 for the prevention of recurrent C. difficile infection

    • SK Hynix warns U.S. restrictions could force closure or sale of major plant in China, according to Bloomberg

    • TELA Bio (TELA) Announces Publication of 24-Month BRAVO Study Results Demonstrating Benefits of OviTex Reinforced Tissue Matrix in Hernia Repair

    • Theratechnologies (THTX) Reports Data Showing High Expression of Sortilin (SORT1) in Multiple Solid Tumors from Tissue Microarrays

    • Theseus Pharmaceuticals (THRX) Presents Preclinical Data Characterizing THE-349, its Fourth-Generation EGFR Inhibitor in Development for NSCLC, at the 34th EORTC-NCI-AACR Symposium

    • Toyota Motor (TM) mulling increase in production for first EV, according to Reuters

  • M&A:

    • Teledyne Tech (TDY) announces that a wholly-owned subsidiary has entered into an agreement to acquire ETM-Electromatic; financial terms were not disclosed

  • Syndicate

    • Portland Gen Elec (POR) commences $375 mln common stock offering

  • IPOs:

    • Priced to Trade:

      • Mobileye Global (NYSE: MBLY): The developer of advanced driver assistance systems and autonomous driving technologies priced its 41.0 M share IPO at $21, above the $18-$20 expected range.

Gapping Up/Down

  • Gapping up:

    • AGYS +7.5%, CHX +7%, UHS +6.5%, FCF +6.2%, ENPH +6.2%, WIRE +5.7%, WFRD +5.7%, JNPR+4.8%, OLMA +4.5%, EQC +4.2%, ATRA +4.1%, TNET+3.2%, AZN +3%, FE +3%, NCR +3%, CC +2.8%, TENB +2.4%, HIW +2.2%, CSGP +2.1%, TMO +2%, EXEL +1.7%, WTRG +1.5%, MXL +1.4%, TER +1.3%, V+1.3%, UMC +1.3%, EQR +1.2%, MDLZ +1%, ET +1%, CNI +0.9%, PCVX +0.8%, BYD +0.8%, TRMK +0.8%, MTDR +0.7%, BG +0.6%

  • Gapping down:

    • TSHA -14.8%, SKX -13.7%, NEX -10.6%, LRN -8.1%, GOOG -6.2%, MSFT -6%, MAT -5.9%, AIZ -5.7%, SPOT -5.3%, TXN -4.9%, NAVI -4.2%, VICR -4.1%, HA-3%, CANO -2.4%, POR -2.4%, GTY -2.1%, VBTX-1.7%, DB -1.6%, KRC -1.5%, FFIV -0.9%, VRT -0.9%, HLT -0.8%, AGR -0.7%, BCS -0.7%, OTIS -0.7%, BMY-0.5%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Agilysys (AGYS) upgraded to Buy from Hold at Craig Hallum; tgt raised to $65

    • Canopy Growth (CGC) upgraded to Hold from Sell at Canaccord Genuity

    • Discover Financial Services (DFS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $116

    • Halliburton (HAL) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $52

    • Helix Energy (HLX) upgraded to Buy from Neutral at BTIG Research; tgt $10

    • HSBC Holdings (HSBC) upgraded to Neutral from Underperform at Exane BNP Paribas

    • Humana (HUM) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $576

    • Liberty Energy (LBRT) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $24

    • Pentair (PNR) upgraded to Neutral from Underweight at JP Morgan; tgt $42

    • Range Resources (RRC) upgraded to Positive from Neutral at Susquehanna; tgt $38

    • Shaw Comms (SJR) upgraded to Sector Outperform from Sector Perform at Scotiabank

    • Turkiye Garanti Bankasi (TKGBY) upgraded to Buy from Hold at Societe Generale

  • Downgrades:

    • Adidas AG (ADDYY) downgraded to Sector Perform from Outperform at RBC Capital Mkts

    • Adidas AG (ADDYY) downgraded to Sell from Hold at Societe Generale

    • Ally Financial (ALLY) downgraded to Neutral from Buy at Compass Point

    • Baker Hughes (BKR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $29

    • Crown (CCK) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $71

    • Edgewell Personal Care (EPC) downgraded to Neutral from Conviction Buy at Goldman; tgt lowered to $42

    • First Foundation (FFWM) downgraded to Neutral from Buy at DA Davidson; tgt $18

    • Fresenius Medical (FMS) downgraded to Sell from Hold at Deutsche Bank

    • Invesco (IVZ) downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $11.50

    • Myovant Sciences (MYOV) downgraded to In-line from Outperform at Evercore ISI

    • Regeneron Pharma (REGN) downgraded to Underperform from Mkt Perform at Raymond James

    • Silvergate Capital (SI) downgraded to Neutral from Buy at Goldman; tgt lowered to $64

    • Washington Trust (WASH) downgraded to Neutral from Buy at Compass Point; tgt lowered to $49

    • Whirlpool (WHR) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $119

  • Others:

    • Abbott Labs (ABT) initiated with a Neutral at Mizuho; tgt $105

    • Bumble Inc. (BMBL) assumed with a Hold at Jefferies; tgt lowered to $23

    • Capricor Therapeutics (CAPR) initiated with a Buy at Ladenburg Thalmann; tgt $15

    • Edwards Lifesciences (EW) initiated with a Buy at Mizuho; tgt $100

    • Match Group (MTCH) assumed with a Buy at Jefferies; tgt lowered to $60

    • Permian Resources (PR) resumed with a Buy at Citigroup; tgt $12

    • Roblox (RBLX) initiated with a Buy at DA Davidson; tgt $55

    • Roblox (RBLX) initiated with an Overweight at Piper Sandler; tgt $54

    • Teleflex (TFX) initiated with a Neutral at Mizuho; tgt $220

Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for Oct. 22 (Briefing.comConsensus NA; Prior -4.5%)

    • 08:30 ET: Adv. Intl. Trade in Goods for Sep (Briefing.comConsensus NA; Prior -$87.3B)

    • 08:30 ET: Adv. Retail Inventories for Sep (Briefing.comConsensus NA; Prior 1.4%)

    • 08:30 ET: Adv. Wholesale Inventories for Sep (Briefing.comConsensus NA; Prior 1.3%)

    • 10:00 ET: New Home Sales for Sep (Briefing.comConsensus 575K; Prior 685K)

    • 10:30 ET: EIA Crude Oil Inventories for Oct. 22 (Briefing.comConsensus NA; Prior -1.73M)

  • Earnings

    • Monday (Oct 24)

      • Morning:  BOH CBU DORM HNI KEX PHG SCHN

      • Afternoon: AGNC ARE BRO CADE CDNS CALX CATY CLS CR CCK DFS HSTM HXL HOPE IBTX LOGI MEDP NWE PKG PCH XM RRC SSD SSB AAN TBI WRB WSFS ZION

    • Tuesday (Oct 25)

      • Morning: MMM ADM ARCC AWI BIIB CNC CLF KO GLW FBP FELE GATX GE GM GPK HAL HUBB ITW IVZ JBLU KMB LKFN MCO MSCI NVS NVR ONB PCAR PNR PII POR PHM RTX SAP ST SHW SSTK SFNC SITC SBSI SYF TRU TRN UBS UPS VLO XRX

      • Afternoon:  AGYS GOOG AMP AGR AXTA BXP BYD CNI CHX CC CMG CB CSGP EGP WIRE ENPH EQC EQR FFIV FCF FIBK FE HA HIW IEX JNPR KRC LXFR MANH MTDR MAT MXL MSFT NAVI NCR NXGN NEX RNST ROIC SKX SPOT LRN TENB TER TXN TNET TRMK UMBF UHS VBTX VICR V WSBC WH


Asia & Europe detail:

Asia: Nikkei +0.7%, Hang Seng +1.0%, Shanghai Composite +0.8%

Equity indices in the Asia-Pacific region ended the midweek session on a higher note while markets in India were closed for Diwali. Japan is reportedly launching a JPY100 bln startup fund. Separately, the country is planning to end its gasoline subsidy program that began in June. Australia's inflation was up 7.3% in Q3, increasing at its fastest pace in 32 years. ANZ Bank expects that the Reserve Bank of Australia's terminal cash rate will be at 3.85%, up 125 bps from the current level.

  • In economic data:

    • South Korea's November Manufacturing BSI Index 75 (last 73)

    • Japan's September Corporate Services Price Index 2.1% yr/yr, as expected (last 2.0%). September Leading Index 101.3 (last 98.9) and Coincident Indicator 1.7% m/m (last 1.6%)

    • Singapore's September Industrial Production 0.0% m/m (expected 1.1%; last 1.6%); 0.9% yr/yr (expected 1.3%; last 0.4%)

    • Australia's Q3 CPI 1.8% qtr/qtr (expected 1.6%; last 1.8%); 7.3% yr/yr (expected 7.0%; last 6.1%)

    • New Zealand's October ANZ Business Confidence -42.7 (last -36.7)

---Equity Markets---

  • Japan's Nikkei: +0.7%

  • Hong Kong's Hang Seng: +1.0%

  • China's Shanghai Composite: +0.8%

  • India's Sensex: CLOSED

  • South Korea's Kospi: +0.7%

  • Australia's ASX All Ordinaries: +0.2%

---FX---

  • USD/JPY: -0.6% to 147.14

  • USD/CNH: -1.4% to 7.2051

  • USD/INR: -0.6% to 82.04

Europe: DAX +0.5%, FTSE -0.4%, CAC UNCH

Major European indices trade near their flat lines while Germany's DAX (+0.5%) outperforms. British Prime Minister Sunak postponed the Autumn fiscal statement from October 31 to November 17.Deutsche Bank reported better than expected results while Mercedes beat estimates and raised its profit forecast for the full year. Spain's economy minister Calvino said that his country is not expected to fall into recession. The European Central Bank is expected to announce a 75-bps rate hike tomorrow.

  • In economic data:

    • Eurozone's September M3 Money Supply 6.3% yr/yr (expected 6.1%; last 6.1%) and loans to nonfinancials 8.9% yr/yr (last 8.7%)

    • France's October Consumer Confidence 82 (expected 77; last 79)

    • Italy's non-EU trade deficit EUR5.44 bln (last deficit of EUR5.79 bln)

    • Swiss October ZEW Expectations -53.1 (last -69.2)

---Equity Markets---

  • STOXX Europe 600: -0.2%

  • Germany's DAX: +0.5%

  • U.K.'s FTSE 100: -0.4%

  • France's CAC 40: UNCH

  • Italy's FTSE MIB: -0.1%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: +0.6% to 1.0025

  • GBP/USD: +1.0% to 1.1580

  • USD/CHF: -0.5% to 0.9891



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