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Writer's pictureSimon Charles Hooper

27/10/21 Briefing

The S&P 500 futures trade seven points, or 0.1%, above fair value as the market takes a breather, essentially at record highs while investors parse a ton of earnings news.

Dow components Microsoft (MSFT 315.27, +5.16, +1.7%), Coca-Cola (KO 55.90, +1.43, +2.6%), McDonald's (MCD 244.30, +7.88, +3.3%), and Boeing (BA 212.06, +2.25, +1.1%) are each trading higher following their reports, while Visa (V 226.35, -5.47, -2.4%) trades lower despite beating EPS estimates and boosting its dividend.

Shares of Alphabet (GOOG 2783.00, -10.44, -0.4%) are down modestly despite the company beating top and bottom-line estimates on 41% year-over-year revenue growth. While earnings may not be driving the market higher right now, they are likely acting as support for a market that is deemed overextended on a short-term basis.

Separately, Democrats are hoping for a deal on the reconciliation bill today, even though Progressive members are saying that the slimmed-down framework isn't enough to secure their votes. Senate Democrats also released the details of their proposed wealth tax on billionaires, but it's uncertain if it'll be included in the bill for legal reasons.

On the data front, investors will receive Durable Goods Orders for September (Briefing.com consensus -0.8%) and the Advance Int. Trade in Goods, Retail Inventories, and Wholesale Inventories reports for September at 8:30 a.m. ET.

The Treasury yield curve is flattening with shorter-dated yields rising and longer-dated yields declining. Currently, the 2-yr yield is up three basis points to 0.48%, and the 10-yr yield is down three basis points to 1.59%. The U.S. Dollar Index is down 0.1% to 93.90. WTI crude futures are down 1.3%, or $1.06, to $83.59/bbl.

In U.S. Corporate news:

  • Microsoft (MSFT 315.27, +5.16): +1.7% after beating top and bottom-line estimates and guiding fiscal Q2 revenue above consensus.

  • Alphabet (GOOG 2783.00, -10.44): -0.4% despite beating top and bottom-line estimates.

  • Visa (V 226.35, -5.47): -2.4% despite beating EPS estimates and increasing its quarterly dividend by 17% to $0.375/share.

  • Coca-Cola (KO 55.90, +1.43): +2.6% after beating top and bottom-line estimates.

  • Boeing (BA 212.06, +2.25): +1.1% despite missing top and bottom-line estimates. The company noted that commercial market demand continues to gain traction.

  • McDonald's (MCD 244.30, +7.88): +3.3% after beating top and bottom-line estimates.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: UNCH Hong Kong's Hang Seng: -1.6% China's Shanghai Composite: -1.0% India's Sensex: -0.3% South Korea's Kospi: -0.8% Australia's ASX All Ordinaries: UNCH.

    • In economic data:

      • China's September Industrial Profit 44.7% YTD (last 49.5%)

      • South Korea's October Consumer Confidence 106.8 (last 103.8)

      • Australia's Q3 CPI 0.8% qtr/qtr, as expected (last 0.8%); 3.0% yr/yr (expected 3.1%; last 3.8%)

      • New Zealand's October ANZ Business Confidence -13.4 (last -7.2). September trade deficit NZD2.171 bln (last deficit of NZD2.139 bln)


  • In news:

    • China's National Development and Reform Commission called on companies to meet their offshore obligations.

    • A Japanese pre-election poll from Kyodo showed that LDP is expected to win a stable majority.

    • Global Times claimed that the U.S. is "opening a new offensive" on Taiwan and China's Taiwan affairs office said that the U.S. should stop sending "wrong signals" regarding Taiwan.



  • Major European trade in the red. STOXX Europe 600: -0.3% Germany's DAX: -0.3% U.K.'s FTSE 100: -0.1% France's CAC 40: -0.3% Italy's FTSE MIB: -0.5% Spain's IBEX 35: -0.3%.

    • In economic data:

      • Eurozone's September loans to nonfinancial corporations 2.1% yr/yr (last 1.5%) and private sector loans 4.1% yr/yr (last 4.2%). September M3 Money Supply 7.4% yr/yr (expected 7.5%; last 7.9%)

      • Germany's November GfK Consumer Climate 0.9 (expected -0.5; last 0.4). September Import Price Index 1.3% m/m (expected 1.5%; last 1.4%); 17.7% yr/yr (expected 18.0%; last 16.5%)

      • France's October Consumer Confidence 99 (expected 101; last 101). September PPI 1.7% m/m (last 1.0%)

      • Italy's September non-EU trade surplus EUR1.67 bln (last surplus of EUR1.58 bln)

      • Swiss October ZEW Expectations 15.6 (last 25.7)


  • In news:

    • Import prices in Germany increased at their fastest rate in 30 years in September.

    • British Chancellor of the Exchequer Sunak will present the annual budget today.

    • Germany's Economy Ministry officially lowered its domestic 2021 growth forecast to 2.6% from 3.5% and raised the outlook for 2022 to 4.1% from 3.6%.

    • Economy minister Altmeier said that he expects growth to return to pre-pandemic levels by the first quarter.

    • Coal prices in Europe have returned to levels from late August.





U.S. equity futures:

  • S&P 500 Futures: +18 @ 4,584

  • DJIA Futures: +99 @ 35,840

  • Nasdaq 100 Futures: +87 @ 15,601

Overseas:

  • Europe: DAX -0.3%, FTSE -0.1%, CAC -0.3%

  • Asia: Nikkei UNCH, Hang Seng -1.6%, Shanghai Composite -1.0%

Commodities:

  • Crude Oil -1.07 @ 83.58

  • Nat Gas -0.096 @ 5.907

  • Gold -1.85 @ 1791.55

  • Silver -0.021 @ 24.067

  • Copper -0.0625 @ 4.4235

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

    • ACCO Brands (ACCO) misses by $0.01, reports revs in-line; guides FY21 EPS in-line, revs in-line; increases dividend

    • Advanced Micro (AMD) beats by $0.07, beats on revs; guides Q4 revs above consensus

    • Aerojet Rocketdyne (AJRD) beats by $0.11, reports revs in-line

    • Agilysys (AGYS) misses by $0.16, misses on revs; reiterates FY22 revs in-line

    • Alkermes (ALKS) beats by $0.04, misses on revs; reaffirms FY21 EPS guidance, revs guidance

    • Alphabet (GOOG) beats by $4.62, beats on revs, Google advertising revenue up 43% yr/yr, Google Cloud revenue up 45%

    • Ameriprise Financial (AMP) beats by $0.42, reports revs in-line

    • Applied Industrial (AIT) beats by $0.17, beats on revs; reaffirms FY22 EPS guidance, revs guidance

    • Automatic Data (ADP) beats by $0.16, beats on revs; guides FY22 EPS above consensus, revs above consensus

    • AVANGRID (AGR) beats by $0.05, beats on revs; reaffirms FY21 EPS guidance

    • Avery Dennison (AVY) beats by $0.13, beats on revs; raises FY21 EPS guidance in-line

    • Bandwidth (BAND) sees Q3 revs above consensus; provides update on impact of DDoS attack from Q4

    • Boeing (BA) misses by $0.46, misses on revs, commercial market demand continues to gain traction

    • Boston Properties (BXP) beats by $0.03, beats on revs

    • Boston Scientific (BSX) beats by $0.01, misses on revs; guides FY21 EPS in-line, revs below consensus

    • Boyd Gaming (BYD) beats by $0.04, reports revs in-line; authorizes $300 mln share repurchase program

    • Brinks (BCO) beats by $0.31, beats on revs; guides FY21 EPS above consensus, revs in-line

    • Bristol-Myers (BMY) beats by $0.08, reports revs in-line; guides FY21 EPS in-line

    • Bunge (BG) beats by $2.30, beats on revs; raises FY21 EPS above consensus; new $500 mln buyback program

    • Camtek (CAMT) beats by $0.04, reports revs in-line; guides Q4 revs above consensus

    • Capital One (COF) beats by $1.70, beats on revs

    • Chefs' Warehouse (CHEF) beats by $0.04, beats on revs

    • C.H. Robinson (CHRW) beats by $0.43, beats on revs

    • Chubb (CB) beats by $0.34, beats on revs

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

    • Coca-Cola (KO) beats by $0.07, beats on revs; guides FY21 EPS in-line, revs in-line

    • Constellium (CSTM) beats by EUR 0.44, beats on revs

    • CoStar Group (CSGP) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus

    • Deutsche Bank (DB) reports Q3 results; beats on revs

    • Driven Brands (DRVN) beats by $0.04, beats on revs; guides FY21 EPS above consensus, revs in-line

    • DTE Energy (DTE) misses by $0.09; raises FY21 EPS in-line; guides FY22 EPS in-line

    • Dynatrace (DT) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line

    • EastGroup (EGP) beats by $0.07, beats on revs; guides FY21 FFO above consensus

    • Enphase Energy (ENPH) beats by $0.11, beats on revs; guides Q4 revs above consensus

    • Equinor (EQNR) reports Q3 results; beats on revs

    • Equity Residential (EQR) beats by $0.02, beats on revs; guides Q4 FFO in-line

    • F5 Networks (FFIV) beats by $0.26, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY22 revs above consensus

    • First Commonwealth (FCF) beats by $0.04

    • Fiserv (FISV) beats by $0.02, beats on revs; guides FY21 EPS in-line

    • Fortune Brands Home & Security (FBHS) beats by $0.11, beats on revs; guides FY21 EPS below consensus

    • Garmin (GRMN) beats by $0.14, beats on revs; raises FY21 guidance

    • General Dynamics (GD) beats by $0.08, misses on revs

    • General Motors (GM) beats by $0.54 which includes benefit from battery recall agreement, slightly misses on revs; guides FY21 EPS in-line; sees FY21 EBIT at high end of prior guidance range

    • Gibraltar Industries (ROCK) misses by $0.26, misses on revs; guides Q4 EPS below consensus; lowers FY21 EPS below consensus, revs in-line

    • GlaxoSmithKline (GSK) beats by GBP0.08, beats on revs; raises FY21 outlook

    • Harley-Davidson (HOG) beats by $0.42, beats on revs; reiterates FY21 motorcycles segment guidance

    • Hawaiian Holdings (HA) beats by $0.38, misses on revs; guides Q4 revs below consensus

    • Hess (HES) beats by $0.02, beats on revs

    • Highwoods Prop (HIW) beats by $0.03, reports revs in-line; raises FY21 FFO above consensus

    • Hilton (HLT) misses by $0.06, beats on revs

    • Hudson Pacific Properties (HPP) beats by $0.02, beats on revs; guides Q4 FFO in-line

    • IDEX Corp (IEX) beats by $0.04, beats on revs; guides Q4 EPS below consensus

    • Int'l Paper (IP) misses by $0.09, misses on revs

    • Juniper Networks (JNPR) reports EPS in-line, misses on revs; guides Q4 EPS in-line, revs in-line

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

    • Littelfuse (LFUS) beats by $0.80, beats on revs; guides Q4 EPS above consensus, revs above consensus

    • Manhattan Assoc (MANH) beats by $0.17, beats on revs; guides Q4 EPS below consensus, revs in-line

    • Masimo (MASI) beats by $0.03, beats on revs; guides FY21 EPS above consensus, revs above consensus

    • McDonald's (MCD) beats by $0.29, beats on revs; global comps grew +12.7% yr/yr

    • Microsoft (MSFT) beats by $0.19, beats on revs; Azure revenue growth of 50% yr/yr; LinkedIn revenue +42%; Surface revenue decreased -17%; guides revs above consensus

    • Monro Muffler (MNRO) beats by $0.07, beats on revs, comparable store sales increased 14.8%, to acquire 11 stores in Iowa and six stores in Southern California

    • Nabors Industries (NBR) misses by $1.73, beats on revs

    • Navient (NAVI) beats by $0.10, beats on revs

    • NCR Corp (NCR) beats by $0.05, misses on revs; guides second half 2021 outlook to low end of prior ranges

    • NOV Inc. (NOV) reports Q3 (Sep) results, misses on revs

    • Old Dominion (ODFL) beats by $0.09, beats on revs

    • Owens Corning (OC) beats by $0.07, beats on revs

    • Penske Auto (PAG) beats by $0.81, beats on revs

    • Prosperity Bancshares (PB) beats by $0.02, beats on revs

    • Range Resources (RRC) misses by $0.02, misses on revs

    • Retail Opportunity Investments (ROIC) misses by $0.08, beats on revs; reaffirms FY21 FFO guidance

    • Robinhood Markets (HOOD) reports Q3 (Sep) results, misses on revs; guides Q4 revs below consensus

    • Rollins (ROL) misses by $0.01, beats on revs

    • Santander Consumer USA (SC) beats by $0.57, misses on revs

    • Silgan Holdings (SLGN) misses by $0.02, beats on revs; guides Q4 EPS in-line

    • Silicon Labs (SLAB) reports Q3 (Sep) results, beats on revs; guides Q4 revs above consensus

    • Six Flags (SIX) beats by $0.36, beats on revs

    • Spotify (SPOT) misses by $0.27, beats on revs; guides Q4 revs in-line

    • Stifel Financial (SF) beats by $0.17, beats on revs

    • Taylor Morrison Home (TMHC) beats by $0.13, beats on revs

    • Teck Resources (TECK) beats by CAD0.44, beats on revs

    • TE Connectivity (TEL) beats by $0.06, beats on revs; guides Q1 EPS below consensus, revs in-line

    • Teledyne Tech (TDY) beats by $0.65, beats on revs; guides Q4 EPS above consensus

    • Tenable (TENB) beats by $0.05, beats on revs; guides Q4 EPS below consensus, revs above consensus

    • Teradyne (TER) beats by $0.16, beats on revs; guides Q4 EPS, revs in-line

    • Teva Pharma (TEVA) misses by $0.06, misses on revs; reaffirms FY21 EPS guidance, revs guidance

    • Texas Instruments (TXN) beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line

    • Thermo Fisher (TMO) beats by $1.06, beats on revs; raises FY21 EPS above consensus, revs above consensus

    • Travel + Leisure Co (TNL) beats by $0.12, beats on revs; raises FY21 EPS above consensus; mgmt to recommend Q4 dividend

    • Trustmark (TRMK) beats by $0.02, reports revs in-line; declares dividend

    • Twitter (TWTR) reports Q3 (Sep) results, revs in-line; guides Q4 revs in-line

    • UMB Financial Corporation (UMBF) beats by $0.15, misses on revs

    • United Micro (UMC) beats by $0.33, beats on revs

    • Vertiv (VRT) beats by $0.01, reports revs in-line; guides Q4 EPS in-line, revs above consensus

    • Visa (V) beats by $0.08, reports revs in-line

    • Wabtec (WAB) beats by $0.02, misses on revs; guides FY21 EPS in-line, revs below consensus

    • WesBanco Inc (WSBC) misses by $0.07, beats on revs

    • Yandex N.V. (YNDX) reports Q3 results; guides FY21 revs in-line


  • General News:

    • House Speaker Nancy Pelosi (D-CA) thinks budget reconciliation framework should be enough to vote on the bipartisan infrastructure bill, but progressives say framework will not be enough to secure their votes. Democrats are hoping for deal on reconciliation bill today, but key disagreements remain including on Medicare expansion, according to CNN

    • Senator Kyrsten Sinema (D-AZ) says she will support 15% corporate minimum tax plan, according to CNBC

    • Senate Democrats release details of plan to tax unrealized capital gains of people with $1 bln in assets for three years; Democrats hope to include in reconciliation bill, but it could face legal challenges

    • House Democrats release corporate minimum tax plan that they hope to include in budget reconciliation bill; plan will create a 15% minimum tax on the profits that these companies report to shareholders

    • House progressive caucus leader Rep. Pramila Jayapal (D-WA) says there are "dozens" of progressives that will vote NO for bipartisan infrastructure bill with just simple framework on reconciliation bill, according to CNN

    • Climate portion of budget reconciliation bill is "mostly settled" and will likely be $500-555 bln, according to Axios

    • Regulators mulling how banks can hold cryptocurrency assets, according to Reuters

    • Senator Joe Manchin (D-WV) says he is against spending money on EV charging stations, according to Greenwire

    • US coal piles are at 24-year lows, according to Bloomberg

    • Amazon's (AMZN) AWS announces general availability of Amazon EC2 DL1 instances

    • Angion Biomedica (ANGN) and Vifor Pharma report topline results from Phase 3 trial of ANG-3777 in kidney transplant patients at risk for delayed graft function

    • Associated Banc-Corp (ASB) announces $100 mln common stock repurchase authorization

    • Carvana (CVNA) and Hertz (HTZZ) announce partnership to boost online sales

    • Cortexyme (CRTX) reports data from Phase 2/3 GAIN trial evaluating atuzaginstat in patients with Alzheimer's disease; co-primary endpoints were not met in overall population

    • DBV Technologies (DBVT) provides regulatory updates from the FDA and EMA for Viaskin Peanut; FDA requests stepwise approach to DBV's mVP development program; also reports Q3 earning

    • Evercore (EVR) announces that Ralph Schlosstein will step down as Co-Chairman and Co-Chief Executive Officer, effective February 25, 2022, a role that he has shared with John Weinberg since July 2020

    • EVgo Inc. (EVGO) announces the opening of a new EV charging station comprised of six new EVgo public direct current fast chargers at Lloyd King Center, located at 6350 Sheridan Boulevard in Arvada, Colorado

    • Facebook (FB): FTC aiming to investigate disclosures at Facebook, according to the Wall Street Journal

    • First Horizon (FHN) authorizes $500 mln increase to share repurchase program

    • Gibraltar Industries (ROCK) appoints CEO William Bosway as Chairman, effective January 1, 2022

    • InflaRx (IFRX) announces data from third cohort of Phase IIa study of vilobelimab in Pyoderma Gangraenosum

    • Ingersoll-Rand (IR) initiates quarterly dividend of $0.02 per share

    • Kymera Therapeutics (KYMR) presents new safety, pharmacokinetic and pharmacodynamic data, including cytokines, from the Single Ascending Dose portion of the KT-474 Phase 1 randomized, placebo-controlled healthy volunteer trial

    • Lennar (LEN) partnered with startup to create 3D printed homes in Austin, TX, according to the Wall Street Journal

    • Merck (MRK) and The Medicines Patent Pool enter into license agreement for molnupiravir, an investigational oral antiviral COVID-19 medicine, to increase broad access in low- and middle-income countries

    • Merck (MRK) announces Week 144 data from the Phase 2b dose-ranging study evaluating the antiretroviral activity, tolerability, and safety of islatravir in combination with doravirine compared to doravirine/lamivudine/tenofovir disoproxil fumarate in antiretroviral treatment-nave adults with HIV-1

    • Nurix Therapeutics (NRIX) announces initial data from Phase 1a dose escalation trial of NX-2127 in patients with relapsed or refractory B cell malignancies

    • Ocugen (OCGN) has submitted an Investigational New Drug application with the U.S. Food and Drug Administration to evaluate the COVID-19 vaccine candidate, BBV152, known as COVAXIN outside the United States

    • Pfizer (PFE): FDA Vaccines and Related Biological Products Advisory Committee votes 17-0 to recommend PFE COVID-19 vaccine for kids 5-11; full FDA decision is the next step, then CDC committee next week

    • Raytheon Technologies (RTX) awarded $340 mln Air Force contract

    • Rockwell Automation (ROK) and The Pyure Company announce a five-year strategic agreement that will allow the companies to work together to provide solutions to improve indoor air quality and fight the spread of COVID-19

    • SpringWorks Therapeutics (SWTX) announces an update from its ongoing clinical collaboration with GlaxoSmithKline (GSK) evaluating nirogacestat in combination with BLENREP in patients with relapsed or refractory multiple myeloma

    • Valaris (VAL) awarded two-year floater contract with Esso Exploration Angola

    • Vine Energy (VEI) announces the conclusion of the drilling phase of the longest onshore horizontal well in the State of Louisiana


  • M&A:

    • Ambarella (AMBA) agrees to acquire Oculii; terms not disclosed

    • American Electric (AEP) agrees to sell Kentucky operations to Liberty for $2.846 bln enterprise value

    • Colliers (CIGI) has entered into an agreement to acquire a controlling interest in Colliers International Italia S.p.A., Colliers Real Estate Services Italia S.R.L. and Colliers Real Estate Management Services Italia S.R.L., which was previously an affiliate operation; financial terms not disclosed

    • Southwest Gas (SWX) to review unsolicited tender offer from Carl Icahn (IEP) to acquire any and all outstanding shares of Southwest Gas Holdings for $75.00 per share in cash

    • Steelcase (SCS) acquires Spanish furniture designer Viccarbe Habitat, S.L.

    • Viacom (VIAC) close to selling Los Angeles studio lot, according to the New York Post


  • Syndicate:

    • 4D Molecular Therapeutics (FDMT) files for 4.5 mln share common stock

    • Clarus Corporation (CLAR) prices offering of 2.75 mln shares of common stock for gross proceeds of $74.25 mln

    • Phathom Pharmaceuticals (PHAT) announces an underwritten public offering of 5,000,000 shares of its common stock

    • Valneva SE (VALN) files for 5.5 mln ordinary share offering


  • IPOs:

    • Expected to Price:

      • Candela Medical (Nasdaq: CDLA): The provider of advanced medical device solutions for a broad range of aesthetic applications is expected to price its 14.7 M share IPO between $16-$18.

      • Ensemble Health Partners (NYSE: ENSB): The provider of technology-enabled revenue cycle management solutions for health systems is expected to price its 29.5 M share IPO between $19-$22.

      • Fluence Energy (Nasdaq: FLNC): The provder of energy storage products and services and digital applications for renewables and storage is expected to price its 31.0 M share IPO between $21-$24.

      • Global Foundries (Nasdaq: GFS): The leading semiconductor foundry is expected to price its 55.0 M share IPO between $42-$47.

      • HireRight (NYSE: HRT): The global provider of technology-driven workforce risk management and compliance solutions is expected to price its 22.2 M share IPO between $21-$24.

      • Informatica (NYSE: INFA): The pioneer of a new category of software, the Intelligent Data Management Cloud, an AI-powered platform that connects, manages and unifies data across any multi-cloud, hybrid system, is expected to price its 29.0 M share IPO between $29-$32.

      • LianBio (Nasdaq: LIAN): The biopharmaceutical company developing medicines for patients with unmet medical needs, with an initial focus on in-licensing assets for Greater China, is expected to price its 20.3 M share IPO between $15-$17.

      • Solo Brands (NYSE: DTC): The Direct-to-Consumer platform that operates four premium outdoor lifestyle brands-Solo Stove, Oru Kayak, ISLE Paddle Boards, and Chubbies apparel -- is expected to price its 12.9 M share IPO between $14-$17.

      • Sonendo (NYSE: SONX): The commercial-stage medical technology company focused on saving teeth from tooth decay is expected to price its 7.8 M share IPO between $15-$17.

      • Udemy (Nasdaq: UDMY): The operator of a two-sided marketplace where instructors develop content to meet learner demand is expected to price its 14.5 M share IPO between $27-$29.


  • Priced to Trade:

    • Rent the Runway (Nasdaq: RENT): The developer of the world's first and largest shared designer closet with over 18,000 styles by over 750 designer brands priced its 17.0 M share IPO at $21, the high end of the $18-$21 expected range.



Gapping Up/Down

  • Gapping up:

    • ENPH +14.2%, WIRE +14%, NOVA +6.2%, TENB +4.3%, FBHS +4.1%, FFIV +4%, UMC +3.1%, TER +3%, PSNL +2.9%, CSTM +2.8%, TEVA +2.7%, BAND +2.6%, EVGO +2.5%, ZWS +2.4%, MSFT +2.3%, AJRD +2.1%, PFG +2%, TMO +1.9%, VRT +1.9%, TWTR +1.7%, MTDR +1.5%, FHN +1.4%, JNPR +1.4%, TECK +1.3%, MANH +1.2%, EQR +1.2%, AMD +1%, CHRW +1%, AMP +0.9%, CB +0.9%, AEP +0.8%, GTY +0.7%, IEX +0.7%


  • Gapping down:

    • CRTX -68.1%, ANGN -55.2%, DBVT -18.6%, HOOD -10.9%, VALN -9.2%, RRC -7.6%, PHAT -6.6%, FDMT -6.1%, DB -5.4%, AGYS -4.4%, NCR -4.2%, NOV -4.2%, TXN -4.1%, NBR -3.5%, EQNR -3.5%, QS -3.4%, UMBF -3.4%, VBTX -2.9%, CSGP -2.9%, V -2.5%, HA -2.4%, NAVI -2.1%, ROL -1.1%, BYD -1.1%, WSBC -0.8%


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

  • Upgrades

    • Abbott Labs (ABT) upgraded to Overweight from Neutral at Atlantic Equities; tgt $144

    • BancorpSouth (BXS) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $37


  • Downgrades:

    • Cloudflare (NET) downgraded to Hold from Buy at Jefferies; tgt raised to $195

    • Ecolab (ECL) downgraded to Underweight from Neutral at JP Morgan; tgt $230


  • Others:

    • AppLovin (APP) initiated with a Buy at BTIG Research; tgt $114

    • Bally's Corporation (BALY) initiated with a Neutral at Goldman; tgt $52

    • DraftKings (DKNG) initiated with a Neutral at BTIG Research

    • fuboTV (FUBO) initiated with a Neutral at BTIG Research

    • ironSource (IS) initiated with a Buy at BTIG Research; tgt $15

    • Playtika (PLTK) initiated with a Buy at BTIG Research; tgt $35

    • Redbox Entertainment (RDBX) initiated with a Buy at B. Riley Securities; tgt $35

    • Roblox (RBLX) initiated with a Buy at BTIG Research; tgt $98

    • Skillz (SKLZ) initiated with a Neutral at BTIG Research

    • SmartRent (SMRT) initiated with a Buy at Goldman; tgt $18

    • Unity Software (U) initiated with a Neutral at BTIG Research

    • Zynga (ZNGA) initiated with a Buy at BTIG Research; tgt $10


Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for Oct. 23 (Briefing.com Consensus NA; Prior -6.3%)

    • 08:30 ET: Adv. Intl. Trade in Goods for Sep (Briefing.com Consensus NA; Prior -$87.6B)

    • 08:30 ET: Adv. Retial Inventories for Sep (Briefing.com Consensus NA; Prior 0.1%)

    • 08:30 ET: Adv. Wholesale Inventories for Sep (Briefing.com Consensus NA; Prior 1.2%)

    • 08:30 ET: Durable Orders for Sep (Briefing.com Consensus -0.8%; Prior 1.8%)

    • 08:30 ET: Durable Goods ex-transportation for Sep (Briefing.com Consensus 0.5%; Prior 0.2%)

    • 10:30 ET: EIA Crude Oil Inventories for Oct 23 (Briefing.com Consensus NA; Prior -0.431M)Earnings



    • Monday (Oct 25)

      • Morning: AUB BOH CBU DORM FBP HNI KMB LKFN LII OTIS QSR SITC

      • Afternoon: AGNC ARE ACC AMKR AXTA BXS BDN BRO CADE CDNS CALX CATY CR CCK FB HSTM HTLF HOPE IBTX LOGI LXFR MEDP NWE OI PKG PCH RNR SSD TNET TBI UHS


  • Tuesday (Oct 26)

    • Morning: MMM ARCH ADM ARCC AWI ABG CNC CIT CVLT GLW DAN ECL LLY ENTG FELE GE GPK GBX HAS HUBB INMD IVZ JBLU LMT HZO MSCI NVS PCAR PNR PII PHM RTX SPGI ST SHW SSTK SFNC SBSI AAN TRU TRTN TPB UBS UPS WM XRX

    • Afternoon: ACCO AMD AGYS GOOG AMP APAM AGR BXP BYD CHRW COF CB CSGP DLR EGP WIRE ENPH EQR ESS FFIV FCF FIBK FBHS FCPT HA HIW HPP IEX JNPR LBRT LFUS MANH MASI MTDR MSFT NAVI NCR NOV PFG QS RRC ROIC HOOD TENB TER TXN TRMK TWTR UDR UMBF VBTX V WSBC


  • Wednesday (Oct 27)

    • Morning: AMG ALKS APH AIT ARES ADP AVY BXMT BA BSX BCO BMY BG CAMT CHEF CME KO CSTM CTS DRVN DTE DT EVR FISV GRMN GD GM ROCK HOG HES HLT IP KHC MAS MCD MNRO NYCB NSC ODFL OC PAG PB ROL RES R SLGN SLAB SIX SPOT SF TMHC TEL TECK TDY TEVA TMO TNL UMC VRT WAB

    • Afternoon: AFL AEM AGI ALGN ALGT ALSN NLY AM AR ACGL ASGN AZPN AVB AXS NTB BHE BMRN BOOT BCOV CACI CG CCS CHX CHDN CINF CNO CDE CTSH FIX CYH CNMD CLB CONE DRE EBAY EW ESI EHC EQT EQC ETD RE EVTC EXR FLEX FLS F FORM FWRD GSHD THG PI NGVT ISBC INVH IRBT JBT KRC KLAC KN LC MXL MTH MEOH MAA MKSI MC MOH MUSA MYRG NTGR NDLS ORLY OII PGRE PEGA PDM PPC PLXS PPD RJF SIGI SCI NOW SIMO SNBR SSB SRI TDOC TROX TTMI TWLO TYL UCTT URI UPWK VICI WCN WOLF WH XLNX YUMC


  • Thursday (Oct 28)

    • Morning: FLWS AOS ABMD AGCO ATI ALGM ADS AB ALNY MO AEP AMT BUD AVNT BAX BPMC BC CRS CARR CAT CBZ CBRE CHKP CLVT CMS CNX COLB CMCO CMCSA COR CFR DBD EXP EME FCN THRM GPI HSY HBAN IDA ITW IMAX INSM ITGR ICE JHG KBR KDP KEX LH TREE LECO LIN LKQ MA MDC MPW MD MRK MDP TAP MCO COOP NEM NLSN NOC NVCR NVT OSK OSIS OSTK PATK PTEN PBF BTU PRFT PRLB PACK RLGY RS RGEN RDS.A SAIA SNY SNDR SHOP SIRI SWI SAH SMP SWK STM TROW TFX TPX TXT TW TRS VLY VC WST WEX WLTW WNS XEL YUM

    • Afternoon: ACHC AMZN ABCB AAPL AJG TEAM AVTR AVT AX BIO CPT CDNA CWST CHE COHU COLM OFC CUZ DVA DECK DXCM DRQ EMN EIG ENVA EXPO FHI FE FTV FTAI FTDR GLPI GILD LOPE HIG HTGC HTH HUBG KMPR KNSL LMAT LPLA LTC MGRC MERC MMSI MSTR MHK MPWR NATI NXGN PEB POLY POWI PTCT RNST RSG RMD SGEN SPNE SKX SKYW SM SPSC SSNC STAG SBUX SYK TEX TXRH X VRSN VCRA WRE WERN WDC AUY ZEN


  • Friday (Oct 29)

    • Morning: ABBV AON ATR B BAH CCJ CBOE CERN CHTR CVX CHD CL XOM FTS GWW HUN IMGN IMO LAZ LYB NWL PSX PSXP PNM POR PFS SJR SHLX SLCA WPC WY WETF



Asia & Europe detail:

Asia: Nikkei UNCH, Hang Seng -1.6%, Shanghai Composite -1.0%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. China's National Development and Reform Commission called on companies to meet their offshore obligations. A Japanese pre-election poll from Kyodo showed that LDP is expected to win a stable majority. Global Times claimed that the U.S. is "opening a new offensive" on Taiwan and China's Taiwan affairs office said that the U.S. should stop sending "wrong signals" regarding Taiwan.

  • In economic data:

    • China's September Industrial Profit 44.7% YTD (last 49.5%)

    • South Korea's October Consumer Confidence 106.8 (last 103.8)

    • Australia's Q3 CPI 0.8% qtr/qtr, as expected (last 0.8%); 3.0% yr/yr (expected 3.1%; last 3.8%)

    • New Zealand's October ANZ Business Confidence -13.4 (last -7.2). September trade deficit NZD2.171 bln (last deficit of NZD2.139 bln)


---Equity Markets---

  • Japan's Nikkei: UNCH

  • Hong Kong's Hang Seng: -1.6%

  • China's Shanghai Composite: -1.0%

  • India's Sensex: -0.3%

  • South Korea's Kospi: -0.8%

  • Australia's ASX All Ordinaries: UNCH

---FX---

  • USD/JPY: -0.4% to 113.70

  • USD/CNH: +0.3% to 6.3925

  • USD/INR: +0.2% to 75.02

Europe: DAX -0.3%, FTSE -0.1%, CAC -0.3%

Major European trade in the red. Import prices in Germany increased at their fastest rate in 30 years in September. British Chancellor of the Exchequer Sunak will present the annual budget today. Germany's Economy Ministry officially lowered its domestic 2021 growth forecast to 2.6% from 3.5% and raised the outlook for 2022 to 4.1% from 3.6%. Economy minister Altmeier said that he expects growth to return to pre-pandemic levels by the first quarter. Coal prices in Europe have returned to levels from late August.

  • In economic data:

    • Eurozone's September loans to nonfinancial corporations 2.1% yr/yr (last 1.5%) and private sector loans 4.1% yr/yr (last 4.2%). September M3 Money Supply 7.4% yr/yr (expected 7.5%; last 7.9%)

    • Germany's November GfK Consumer Climate 0.9 (expected -0.5; last 0.4). September Import Price Index 1.3% m/m (expected 1.5%; last 1.4%); 17.7% yr/yr (expected 18.0%; last 16.5%)

    • France's October Consumer Confidence 99 (expected 101; last 101). September PPI 1.7% m/m (last 1.0%)

    • Italy's September non-EU trade surplus EUR1.67 bln (last surplus of EUR1.58 bln)

    • Swiss October ZEW Expectations 15.6 (last 25.7)


---Equity Markets---

  • STOXX Europe 600: -0.3%

  • Germany's DAX: -0.3%

  • U.K.'s FTSE 100: -0.1%

  • France's CAC 40: -0.3%

  • Italy's FTSE MIB: -0.5%

  • Spain's IBEX 35: -0.3%

---FX---

  • EUR/USD: +0.1% to 1.1603

  • GBP/USD: -0.3% to 1.3720

  • USD/CHF: UNCH at 0.9193


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