>>> TradeGate Pre-Market Indications

DAX:
  • Commerzbank (CBK TH) +2.7%
    • Commerzbank Boosts FY Net Income, NII Forecast
  • Heidelberg Materials (HEI TH) +1.3%
    • Heidelberg Materials at Attractive Price, Morgan Stanley Raises
  • Fresenius SE (FRE TH) +0.8%
    • Fresenius Sells Eugin Group to IVI RMA for Up to €500M
  • Munich Re (MUV2 TH) +0.7%
    • Munich Re 3Q Net Income EU1.17B
  • Bayer (BAYN TH) -1.3%
    • Bayer 3Q Adjusted Ebitda Misses Estimates
  • Continental (CON TH) -1.3%
    • Continental Sees FY Sales EU41B to EU43B, Saw EU41.5B to EU44.5B
  • Vonovia (VNA TH) -1.4%
    • Vonovia Rated New Underperform at Jefferies
  • E.On (EOAN TH) -2.2%
    • EON Sees Significant Negative Earnings Impact in Fourth Quarter
MDAX:
  • Nemetschek (NEM TH) +2%
    • Nemetschek Raised to Outperform at BNPP Exane
  • Sixt (SIX2 TH) +1.9%
    • Sixt Narrows FY Pretax Profit Forecast
  • Fresenius Medical (FME TH) +1.8%
  • TAG Immobilien (TEG TH) +0.8%
    • TAG Immobilien Rated New Buy at Jefferies
  • GEA Group (G1A TH) +0.5%
    • GEA Group 3Q Adjusted Ebitda Beats Estimates
  • Evotec SE (EVT TH) -0.3%
    • Evotec SE 9M Adjusted Ebitda EU50.2M
  • Telefonica Deutschland (O2D TH) -0.5%
    • Telefonica Deutschland Raised to Hold at HSBC; PT 2.35 euros
  • Thyssenkrupp (TKA TH) -0.9%
  • Duerr (DUE TH) -1.4%
    • Duerr Cuts FY Profit Forecast on HOMAG Efficiency Measures
SDAX:
  • AUTO1 (AG1 TH) +8.7%
    • CORRECT: AUTO1 Boosts FY Adjusted Ebitda Loss Forecast
  • Borussia Dortmund (BVB TH) +3.5%
  • Deutsche PBB (PBB TH) -12%
    • Deutsche PBB Sell Rating at Citi Reiterated After Profit Warning

>>> Europe : Brokers Upgrades & Downgrades - 8th of November 2023

>>> Up
* Fidelity National Raised to Outperform at Wolfe; PT $65
* Genmab Raised to Buy at DNB Markets; PT 2,450 kroner
* Heidelberg Materials Raised to Overweight at Morgan Stanley
* Maersk Raised to Overweight at JPMorgan; PT 13,800 kroner
* Orthex Raised to Buy at Inderes; PT 6 euros
* Rolls-Royce Raised to Overweight at Morgan Stanley; PT 275 pence
* Telefonica Deutschland Raised to Hold at HSBC; PT 2.35 euros

>>> Down


>>> Initiation
* Aroundtown Rated New Underperform at Jefferies
* Carmila Rated New Buy at Jefferies
* Covivio SA/France Rated New Hold at Jefferies
* Crossject Rated New Outperform at Oddo BHF; PT 7.10 euros
* CTP Rated New Buy at Jefferies
* Gecina Rated New Hold at Jefferies
* Eurocommercial Rated New Buy at Jefferies
* Grand City Properties Rated New Underperform at Jefferies
* ICADE Rated New Hold at Jefferies
* Inmobiliaria Colonial Rated New Underperform at Jefferies
* Klepierre Rated New Hold at Jefferies
* LEG Immobilien Rated New Buy at Jefferies
* LXI REIT Plc Rated New Overweight at Barclays; PT 110 pence
* Mercialys Rated New Hold at Jefferies; PT 8.50 euros
* TAG Immobilien Rated New Buy at Jefferies
* Thyssenkrupp Nucera Rated New Buy at Berenberg; PT 21 euros
* Unibail Rated New Buy at Jefferies
* Vonovia Rated New Underperform at Jefferies
* WDP Rated New Underperform at Jefferies

>>> Call
* Heidelberg Materials at Attractive Price, Morgan Stanley Raises
* Rolls-Royce Upgraded as Morgan Stanley Sees Cash Flow Upside
* Thyssenkrupp Nucera New Buy at Berenberg on Growth Outlook
* Vicat Estimates May Rise by Mid-Single Digits, Citi Says

>>> What to look at today - 8th of November 2023

Stocks in Asia ticked lower on Wednesday as investors waited to hear more from Federal Reserve officials who are due to speak this week, including Chair Jerome Powell.  A gauge of the region’s equities fell, as Japan’s Topix led declines. Japanese banks extended their drop on falling yields that tempered expectation of higher profitability. Chinese benchmarks fluctuated between gains and losses.  Treasuries steadied in Asian trading after bets on a Fed pivot next year sent bond rates sharply down Tuesday. The 10-year yield fell below 4.6% as traders dismissed hawkish comments from the Fed. US equity futures were also little changed.  Traders are awaiting comments from US policymakers this week, including Powell and New York Fed President John Williams, to see how hard the central bank will push back against the recent loosening of financial conditions. Oil extended losses after tumbling to a three-month low as a forecast drop in US gasoline consumption added to a growing array of indicators suggesting the demand outlook is worsening. China, the world’s biggest importer, is also seeing dimming oil demand as winter approaches.  Global equities are poised for a double-digit rally in 2024 if the Fed pivots its monetary policy and allows the economy to avoid a recession, according to HSBC Holdings Plc strategists.  Chinese equities whipsawed after falling yesterday on the nation’s trade data Tuesday. Beaten-down Chinese equities may have an opportunity for gains with the possible upcoming meeting between leaders of the US and China next week, according to the chief investment officer of Templeton Global Equity Investments. Dollar bonds for two Chinese investment-grade developers continued to rally Wednesday after the country’s central bank and regulators discussed with some builders their financing needs and liquidity. Elsewhere, the bond market is betting on a “dovish pivot” for the seventh time since the Federal Reserve and other central banks embarked on a tightening cycle, raising the prospect of another false dawn, according to Deutsche Bank macro strategist Henry Allen. Australia’s 10-year yield declined after the central bank signaled a higher hurdle to further policy tightening on Tuesday.  US After Hours UPWK +17.8%, PETQ +14.4%, KD +12%, LZ +10.2%, ODD +9.5% higher on earnings; SNBR -27.6%, UPST -21.9%, LPRO -20.6%, INSP -17.8%, TOST -17.7%, EBAY -6.4% lower on earnings.

Nikkei -0.33% Hang Seng -0.50% CSI -0.27% Shanghai -0.21% Shenzen +0.06%

Eur$ 1.0686 CNH 7.2817 CNY 7.2770 JPY 150.66 GBP 1.2277 CHF 0.9011 RUB 92.2097 TRY 28.5054 WTI$ 77.09 -0.36% Gold 1,966 -0.15% BTC 35,230 -0.76% ETH 1,877 -0.86%

S&P -0.12% Nasdaq -0.16% EuroStoxx -0.46% FTSE -0.29% Dax -0.43% SMI -0.26%

Macro :
- JPMorgan Plans Active ETF Range Expansion in Europe: FT
- Israel Latest: Saudi Arabia Says Normalization Talks to Continue
- European Bank Sub-€100 Billion Loan-Provision Estimates May Rise

Keep an eye on :
- ABN NA : ABN Amro 3Q Profit Beats Estimates
- AC FP : Covivio, AccorInvest to Consolidate Hotel Properties
- ADS GY : Adidas 3Q Operating Profit EU409M
- AH NA : Ahold Delhaize 3Q Adjusted Operating Margin Misses Estimates
- ABNB US : Airbnb Says Possible Loss on Italy Tax Matter Could be Material
- AMBUB DC : Ambu Sees 2024 Organic Revenue +7% to +10%
- ANTIN FP : Antin Cuts FY Underlying Ebitda Forecast
- AG1 GY : AUTO1 Boosts FY Adjusted Ebitda Loss Forecast
- BAMI IM : Banco BPM Sees FY Net Income Above EU1.20B, Saw at Least EU1.2B
- BAYN GY : Bayer 3Q Adjusted Ebitda Misses Estimates
- BAYN GY : Bayer Rules Out Three-Way Split in Structural Review
- BMRN US : BioMarin Pharma Gains on Elliott Investment Stake: Health Wrap
- BNP FP : Santander Asset Management to Buy BNP’s Argentina Asset Unit
- BURE SS : Mycronic Offering by Holder Bure Equity Prices at SEK235/Share
- CIRCLE IPO : Stablecoin Issuer Circle Internet Said to Consider 2024 IPO
- CBK GY : Commerzbank 3Q Net Income Beats Estimates, Commerzbank Boosts FY Net Income, NII Forecast, Announces €600 Million Buyback Plan
- CON GY : Continental Cuts Revenue Outlook on FX as Auto Unit Improves
- 2007 HK : China authorities ask Ping An to take controlling stake in Country Garden, sources say - Reuters
- COV FP : Covivio, AccorInvest to Consolidate Hotel Properties
- ACA FP : Credit Agricole 3Q Net Income Beats Estimates, Credit Agricole Beats Estimates With Fixed Income Trading Up 26%
- PBB GY : Deutsche PBB Cuts FY Forecast; Prelim 9M Pretax Profit EU91M
- DPW GY : Deutsche Post AG Narrows FY Ebit Forecast
- DUE GY : Duerr Cuts FY Profit Forecast on HOMAG Efficiency Measures
- EQR NO : Equinor Prepares Sale of 20% Stake in North Sea Project: Rtrs
- ENEL IM : Enel Boosts FY Adjusted Net Income Forecast, Beats Estimates
- ENT LN : Entain to Stack Up Winnings on BetMGM, But Venture Needs Clarity
- EOAN GY : E.On 9M Adjusted Ebitda EU7.8B, E.On Maintains FY Adjusted Ebitda Forecast
- RF FP : Eurazeo SE Assets Under Management EU33.47B
- EVT GY : Evotec SE Maintains FY Adjusted Ebitda Forecast
- FRE GY : Fresenius Sells Eugin Group to IVI RMA for Up to €500M
- G1A GY : GEA Group 3Q Adjusted Ebitda Beats Estimates
- GILD US : Gilead Boosts FY Adjusted EPS Forecast, Beats Estimates
- HHFA GY : MSC Is Said to Buy Hamburger Hafen Stock Outside Tender Offer
- SKB GY : Koenig & Bauer 9M Revenue EU891.1M Vs. EU805.7M Y/y
- LXS GY : Lanxess 3Q Sales Misses Estimates
- LR FP : Legrand 9M Adjusted Operating Profit Matches Estimates
- HLUNB DC : Lundbeck Boosts FY Adjusted Ebitda Forecast, Beats Estimates
- MAU FP : Maurel & Prom Inks Deal to Restart Venezuela Production
- MEKKO FH : Marimekko 3Q Adjusted EPS Beats Estimates
- META US : Mark Zuckerberg Taps the Strengths of WhatsApp
- MOWI NO : Mowi Sees 2024 Harvest 500,000 Metric Tons
- MUV2 GY : Munich Re 3Q Net Income EU1.17B
- NAS NO : Norwegian Air Says Trademark Dispute Over Bank Norwegian Settled
- NKT DC : NKT 3Q Oper Ebitda EU76.5M
- ORRON SS : Orron Energy 3Q Net Loss EU7.8M Vs. Profit EU1.8M Y/y
- PNDORA DC : Pandora Boosts FY Organic Revenue Forecast
- RNO FP : Renault Is Said to Finalize Transfer of 28% Stake in Nissan
- ROVI SM : Rovi 9M Net Income EU118.8M Vs. EU121.5M Y/y
- RUI FP : Rubis 3Q Revenue EU1.60B Vs. EU2.04B Y/y
- SAV LN : Savannah Confirms Portuguese Investigators Visited Locations
- SHL GY : Siemens Healthineers 4Q Adjusted Ebit Beats Estimates
- SIX2 GY : Sixt Narrows FY Pretax Profit Forecast
- SLHN SW : Swiss Life 9M Premium Revenue CHF15.47B Vs. CHF14.99B Y/y
- SYAB GY : Synlab 3Q Adjusted Ebitda Misses Estimates
- UBSG SW : Ex-Carlyle Partner Sues UBS Over $2 Million Account Liquidation
- VEI NO : Veidekke 3Q Pretax Profit Beats Estimates
- VWS DC : Vestas 3Q Ebit Before Significant Items Beats Estimates, Vestas Narrows FY Adjusted Ebit Margin Forecast
- VCT LN : Vicat Sees FY Ebitda at Least EU700M, Est. EU670.1M
- VIMIAN SS : Vimian 3Q Adjusted Ebita EU18.3M Vs. EU17.2M Y/y
- VOE GY : Voestalpine Sees FY Ebitda Low End of EU1.7b to EU1.9b

Reuters : China authorities ask Ping An to take controlling stake in Country Gar

China authorities ask Ping An to take controlling stake in Country Garden, sources say

Nov 8 (Reuters) - Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden (2007.HK), the nation's biggest private property developer, four people familiar with the plan said.

China's State Council, which is headed by Premier Li Qiang, has instructed the local government of Guangdong province, where both companies are based, to help arrange a rescue of Country Garden by Ping An, said two of the sources who have direct knowledge of the matter.

A spokesperson for Ping An (601318.SS) said the company had not been approached by the government and denied the information reported by Reuters.

Ping An has "not been asked by (the) Government to takeover Country Garden. We categorically deny this story. It is untrue," the company said in a statement.

The insurer, which vies with China Life (601628.SS) for the title of the country's biggest insurance group by market value, declined to make its founder and chairman, Ma Mingzhe, available for an interview. Ma, who also uses the English first name Peter, did not respond to an emailed Reuters request for comment.

China's State Council Information Office and the Guangdong local government did not respond to requests for comment. Country Garden declined to comment.

A state-engineered rescue of Country Garden by Ping An would be one of the most significant interventions to date by authorities to support the cash-squeezed and highly indebted property sector, which accounts for one-quarter of China's economic activity and has sparked fears of a broader financial crisis.

Authorities are keen that any risks posed by Country Garden's liquidity problems should not spill over to the wider economy, said three of the sources.

While in China companies can rarely ignore a request from the central government, the three sources said Ping An has been asked to come up with details of the plan and will have leeway to negotiate terms of any deal.

Talks between authorities and core Ping An leaders began in late August and are still at an early stage, said two of them.

Ping An has been asked to conduct due diligence on Country Garden, two sources also said, adding that authorities understood the insurer was a listed company answerable to shareholders.

A fifth person with knowledge of the matter said some talks between Ping An and the Guangdong local government about a rescue of Country Garden took place in September.

All sources declined to be identified due to the sensitivity of the matter.

Discussions between Ping An and authorities are being led by officials in the financial markets department of the People's Bank of China (PBOC), which is the central bank, and include Country Garden, said two sources.

The National Financial Regulatory Administration (NFRA) is also involved in the talks, they added.

Neither the PBOC nor the NFRA responded to Reuters requests for comment.

Authorities want Ping An to take a stake of more than 50%, according to one person with direct knowledge and one person briefed on the plan.

Country Garden's largest shareholder with a stake of about 52% is Yang Huiyan, chairperson and daughter of a co-founder. Reuters was not able to reach Yang for comment.

If Ping An were to become Country Garden's controlling shareholder, authorities would like it to inject capital in stages to ease the developer's liquidity problems, according to four sources.

The property developer last month missed a deadline to pay a $15 million coupon and the market has deemed it to be in default on its offshore bonds which total some $11 billion.

Country Garden has said it expects to be unable to meet all of its offshore debt obligations and hopes to seek a "holistic" solution to its difficulties.

Chinese authorities are eager to make the proposed takeover a possible template for other financially troubled developers, two of the sources also said.

GUANGDONG SOLUTION
Authorities are keen for the Country Garden's liquidity problems to be resolved within Guangdong, three sources said. Ping An was a natural choice because it is based in Guangdong and has been a major Country Garden shareholder, according to two of the sources.

The insurer had as of Aug. 11 a 4.99% stake in Country Garden, according to Hong Kong stock exchange data. Reuters could not determine if Ping An currently holds Country Garden shares.

A state-engineered takeover of one company by another is not without precedent in China. But there has not been one in the property sector since Beijing flagged measures in 2020 to tackle the industry's very high debt levels, triggering a liquidity crunch.

Although many other Chinese property developers, including giant China Evergrande (3333.HK), have defaulted on their debt, policy steps have mostly concentrated on lowering mortgage rates and relaxing rules so that it is easier for people to buy homes.

But in a sign that governmental authorities are willing to play a bigger role, China Vanke's (000002.SZ) top shareholder, state-owned Shenzhen Metro on Monday said it had prepared 10 billion yuan ($1.4 billion) worth of "market tools" to support the country's No. 2 developer.

Country Garden had total liabilities of 1.4 trillion yuan ($190 billion) at the end of June. It has more than 3,000 projects under development nationwide.

Ping An has been tapped by authorities as a rescuer for an ailing company before.

It participated in state-guided aid for Peking University Founder Group in 2021 and 2022. Its main unit, Ping An Life, was part of a consortium that was involved in restructuring the group's debt and then the unit took 67% ownership of the reorganised company.

WSJ : China Is Becoming a Problem for Investors

China Is Becoming a Problem for Investors
U.S.-listed companies that do a lot of business in the country have struggled

China has long been a source of stock-market optimism. Now it is turning into a reason for worry.

Investors started the year by pouring money into China-focused funds, a bet that the end of Covid-19 restrictions would unleash supercharged spending in the world’s second-largest economy. Instead, a stubborn lack of growth and escalating political tensions with the U.S. are fostering poor returns and uncertainty about the future.

For investors in some heavyweight U.S. stocks—including Apple and Nvidia—the country suddenly doesn’t look as promising.

“Reopening has been disappointing for everyone,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management. “There wasn’t much pent-up demand in anything besides domestic travel.”

Now investors are looking elsewhere and have pulled $1.6 billion from China-focused mutual and exchange-traded funds in 2023, according to data from Refinitiv Lipper. Total net assets in those funds are at $21.6 billion, down one-third from their peak in 2021, because of outflows and weak performance.

Underpinning China’s lackluster economy is a slumping housing market and the growing prospect of default by one of the country’s major developers. Recent data also showed activity in the country’s manufacturing sector contracted in October.

That backdrop has investors wondering whether consumers will give priority to paying down their debt over making new purchases, prolonging the economy’s weakness.

“If your business depends on selling to the Chinese consumer, we know there’s headwinds involved with that,” said Scott Ladner, chief investment officer at Horizon Investments.

U.S.-listed companies that do significant business in China have struggled. The Nasdaq Golden Dragon China Index, which tracks 79 consumer-oriented companies including Alibaba, rose sharply to start 2023 but is now down 4.5% for the year. The Nasdaq Composite, meanwhile, is up 30% in 2023.

Shares of Yum China, which operates KFC and Pizza Hut restaurants in the country, fell 15% in New York last Wednesday, after executives said consumer demand softened in September and October. Shares of Estée Lauder also tumbled after the cosmetics company warned that high-end beauty product sales in China were slow to recover.

Apple said revenue from China fell 2.5% to $15.1 billion in the three months that ended in September.

Companies are facing more government pressure as well. In China, government officials were recently banned from using iPhones at work. In the U.S., new export controls could force chip maker Nvidia to cancel orders from China worth billions of dollars, The Wall Street Journal reported last week.

Nvidia shares have tripled this year, while Apple has advanced 40%.

Some investors said it is possible that Chinese policy makers will pursue a fresh round of economic stimulus that could lead to a sharp rally in China-focused stocks. But they questioned whether such moves could spark lasting improvements.

“You’d just be pulling future economic growth forward in that scenario,” said Tony Roth, chief investment officer at Wilmington Trust.

FT : Ron DeSantis’s biggest donor is considering backing Donald Trump

Ron DeSantis’s biggest donor is considering backing Donald Trump
Space-exploring property baron Robert Bigelow says Florida governor is not the ‘commander’ US needs

Ron DeSantis’s biggest donor is considering switching his support to Donald Trump, in a sharp rebuke of the Florida governor’s White House aspirations.

Robert Bigelow, a Nevada real estate investor who has funded space exploration and research into paranormal activities, gave over $20mn to the DeSantis campaign earlier this year, the largest donation to any 2024 candidate, according to the latest federal filings.

But Bigelow criticised DeSantis for running a weak campaign — and said Hamas’s attack on Israel last month showed the US needed a “streetwise” leader such as Trump.

“I’ve got to look at who would probably be the strongest commander, with the most experience . . . And that’s only one guy,” Bigelow told the Financial Times.

“Who would you want as a commander? I’d want somebody that would be a hell of an ass kicker if he needed to be,” he said. “On the face of it, you lean toward Trump.”

Bigelow also said he thought Trump would now defeat DeSantis to win the Republican presidential primary — provided he stayed out of jail.

“I think Trump is too strong,” Bigelow said. “I think Trump has the momentum, the inertia, to beat him.” Trump was a “bull”, Bigelow added, but DeSantis was “dinner”.

The comments come just ahead of the Republican party’s third primary debate, in Miami, where the candidates will try to gain some momentum in their attempts to catch frontrunner Trump, who will not attend.

Recent polls of likely Republican voters put the former president about 30 points ahead of his rivals in the early 2024 primary contests. DeSantis and former UN ambassador Nikki Haley are fighting for second place.

While DeSantis received a boost to his White House bid this week after clinching the endorsement of Iowa governor Kim Reynolds, the Florida governor’s campaign has struggled to gain traction this year, while Trump’s popularity has risen among Republicans despite the array of felony charges against him.

Bigelow, the founder of Budget Suites of America and Bigelow Aerospace, had warmed to DeSantis because he tried to keep Florida’s economy open during the pandemic, saying the state “epitomised the land of the free”.

In March, he saw DeSantis speak at Stoney’s Rockin’ Country, a Las Vegas venue where Bigelow likes to dance the Texas two-step, and invited the governor for lunch.

Bigelow wrote DeSantis’s campaign a cheque for $20,000,500 after hearing that someone else might chip in $20mn. “I am not going to be number two,” he said. “You’ve got to have a sense of humour.”

But his relationship with DeSantis started to crack after the governor signed a Florida bill in April banning abortion past six weeks of pregnancy.

“Six weeks, she just found out she’s pregnant, the odds are,” Bigelow said. “It’s a sham. It’s make-believe. It’s condescending.”

After he publicly criticised DeSantis for the law in August and threatened not to give him more money, Bigelow said he expected the governor to contact him. But it was DeSantis’s wife Casey who called, two weeks later.

“Not having him bothering to call me for an explanation taught me that he’s more of a user of people, actually, and that I didn’t matter enough for him to pick up the phone,” Bigelow said.

DeSantis had also become “way too focused on conservatism”, while Trump was more socially moderate, Bigelow said. DeSantis was also less willing to engage in the rough and tumble of US election politics, he added.

“If he’s going to be in the gutter and you want to beat him, you better be willing and ready and able to go in the gutter too,” said Bigelow, referring to the former president. “You better be able to kill — and that’s not who Ron is.”

Asked for comment, a DeSantis spokesperson referred to the governor’s comment to NBC in August: “If I had a nickel for every naysayer I’ve had in my life, I’d be a very, very wealthy man.”

The 79-year-old property tycoon spoke to the FT over four hours in his compound in Las Vegas, describing his belief in the existence of extraterrestrial beings and that human consciousness survives death.

Bigelow once owned Skinwalker Ranch, a hotspot for believers in paranormal activity. He spent hundreds of millions of dollars on Bigelow Aerospace, launching two spacecraft with Russian partners, and investigated claims of UFOs for a once-secret Pentagon programme. In 2016, Elon Musk’s SpaceX attached his Bigelow Expandable Activity Module to the International Space Station, where it remains in orbit.

“Politics is just something you have to suffer,” Bigelow said. “Space is a lot of fun.”

>>> US After Hours Summary: Busy earnings session; UPWK +17.8%, PETQ +14.4%, KD

After Hours Summary: Busy earnings session; UPWK +17.8%, PETQ +14.4%, KD +12%, LZ +10.2%, ODD +9.5% higher on earnings; SNBR -27.6%, UPST -21.9%, LPRO -20.6%, INSP -17.8%, TOST -17.7%, EBAY -6.4% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: UPWK +17.8%, EOLS +14.5%, PETQ +14.4%, KD +12%, ENVX +11.1% (also its IoT & Wearable cells outperformed competitive cells), LZ +10.2%, ODD +9.5%, MQ +9%, PWSC +8.4%, MNKD +7.4%, PRIM +7.4%, METC +6.8%, GPRO +6.7%, AGTI +6.2%, MRC +5.6%, BBAI +5.5% (also to acquire Pangiam for $70 mln), DVA +5.3%, ANGI +4.8%, ZLAB +4.8%, ATEN +4.4% (also authorizes new $50 mln share repurchase program), VCYT +4.1% (also enters into a multi-year agreement with ILMN), GMED +4%, AKAM +3.8%, RIVN +3.7% (also increases FY23 production guidance), AXON +3.5%, FNA +3%, INGN +2.5%, VTEX +2.5%, BROS +2.1%, VTRS +1.9%, EXR +1.6%, CARG +1.3% (also authorizes new $250 mln share repurchase program; also to acquire remaining minority interest in CarOffer for $75 mln), OXY +1.1% (also BLK will invest $550 mln on behalf of clients in the development of STRATOS), TKO +1.1% (also The CW Network to become the exclusive broadcast home to WWE NXT), WTI +0.9%, PGNY +0.8%, PR +0.7%, JKHY +0.4%, INTA +0.3%, HRB +0.2%, USPH +0.2%, NHI +0.1%, TVTX +0.1%, AGO +0.1% (also names new CFO and COO), JHX +0.1%

Companies trading higher in after hours in reaction to news: KRMD +9.5% (receives FDA clearance for FREEDOM60), AMR +6.3% (to join S&P SmallCap 600), BALY +4.2% (several insider purchases disclosed), AMBC +3% (hires external advisors to discuss options for Ambac Assurance), AMEH +2.6% (to acquire assets relating to Community Family Care), WISH +1.7% (to explore strategic alternatives, also reports earnings), HPQ +0.6% (increases dividend), OGN +0.6% (FDA accepts sBLA for interchangeability designation for HADLIMA), AMGN +0.5% (presents new research in early psoriatic arthritis; also new data from its Phase 2 study evaluating dazodalibep), AMZN +0.2% (to develop ‘Olympus' AI, according to The Information), FG +0.1% (increases dividend), AJG +0.1% (to acquire The Evans Agency)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NRDY -35.4%, ESTA -28.4%, SNBR -27.6%, EXFY -23%, UPST -21.9%, LPRO -20.6%, INSP -17.8%, TOST -17.7%, ARRY -13.7%, POWI -13.6% (also increases dividend), FLYW -12.9%, CTKB -12.8%, ANDE -10.2%, HOOD -9.3%, MRVI -9.2%, BMBL -6.8% (also increases share repurchase program to $300 mln), AMRK -6.6%, EBAY -6.4%, KVYO -6.1%, OSUR -6.1%, CPNG -5.6%, MRCY -4.8%, KIND -4.7% (also announces 25% workforce reduction), DAR -4.6%, LCID -4.2% (also names COO; also stock offering by selling shareholders), SHLS -3.9%, PAAS -3.4%, MASI -3.2%, IAC -3%, IRBT -2.9%, APLE -2.8%, CBAY -2.4%, DNLI -2.3%, CTOS -2.1%, IOVA -2.1%, CRSR -1.9%, GO -1.7%, DOOR -1.5%, DVN -1.5%, GILD -1.4%, RXT -1.4%, CIVI -1.3%, FNF -1.3%, GXO -1.3%, CAVA -1.1%, CRCT -1%, MWA -0.9%, MOS -0.7%, RCUS -0.3%, COTY -0.2%, STE -0.1%, XPOF -0.1%

Companies trading lower in after hours in reaction to news: SPR -15.3% ($200 mln stock offering; also files mixed shelf securities offering), INZY -5% (files $300 mln mixed shelf securities offering), IDA -4.4% ($260 mln stock offering), OCUL -3.5% (files $300 mln mixed shelf securities offering), CLDX -3% (stock offering), RIOT -2.7% (reports Oct production), SRE -2% ($1 bln stock offering), BRP -2% (files mixed shelf securities offering), ARVN -2% (files mixed shelf securities offering), ILMN -1.4% (enters into a multi-year agreement with VCYT), BLK -0.5% (to invest $550 mln on behalf of clients in the development of STRATOS), ABNB -0.4% (discloses update on Italy tax order), NBHC -0.1% (increases dividend

>>> US Close Dow +0,17% S&P +0,28% Nasdaq +0,90% Russell -0,28%

Closing Stock Market Summary
Like yesterday, relative strength in the mega cap stocks propelled the major indices to close with gains. The Vanguard Mega Cap Growth ETF (MGK) climbed 1.0%, the Nasdaq Composite rose 0.9%, and the market-cap weighted S&P 500 rose 0.2%.

The broader market saw some selling activity, but remained resilient overall. The equal weighted S&P 500 declined only 0.2%.

A drop in market rates, short-covering activity, and/or a fear of missing out on further gains in this seasonally strong period for the market presumably acted as support for equities.

The 2-yr note yield fell two basis points to 4.92% and the 10-yr note yield fell nine basis points to 4.57%. These moves follow a decent 3-yr note auction, along with some weak economic data for September out of Europe that featured a 1.4% month-over-month decline in industrial production in Germany and a 12.4% year-over-year decline in PPI for the eurozone.

Notably, the rate-sensitive utilities (-0.7%) and real estate (-0.9%) sectors still declined today despite the drop in yields. The materials (-1.9%) and energy (-2.2%) sectors were also some of the worst performers. The latter was sliding alongside oil prices ($77.33/bbl, -3.77, -4.7%), which appeared to be reacting to growth concerns more so than geopolitical angst.

The consumer discretionary (+1.2%), information technology (+1.1%), and communication services (+0.6%) sectors closed at the top of the leaderboard, benefitting from gains in mega cap components.

Growth stocks were another source of support for the broader market, drafting off the big move in cloud applications provider Datadog (DDOG 102.20, +22.65, +28.5%) following its earnings report.

On a related note, Uber (UBER 49.92, +1.78, +3.7%) and NXP Semi (NXPI 185.80, +3.00,+ 1.6%) were standout winners after reporting earnings.

  • Nasdaq Composite: +30.3% YTD
  • S&P 500: +14.0% YTD
  • Dow Jones Industrial Average: +3.0% YTD
  • S&P Midcap 400: +0.7% YTD
  • Russell 2000: -1.6% YTD

Reviewing today's economic data:
  • September Trade Balance -$61.5 bln ( consensus -$60.1 bln); Prior was revised to -$58.7 bln from -$58.3 bln
    • The key takeaway from the report is that there was strength in% both imports and exports in September, demonstrating the continued strength of the U.S. economy and the appeal of U.S. goods abroad at a time of softening global demand.
  • Consumer credit increased by $9.0 bln in September (consensus $9.0 bln) after decreasing a downwardly revised $15.8 bln (from -$15.6 bln) in August.
    • The key takeaway from the report is that tighter lending standards and reduced borrowing needs in the face of higher interest rates have slowed the pace of credit expansion, particularly for nonrevolving deb.

Wednesday's economic calendar features:
  • 7:00 ET: Weekly MBA Mortgage Index (prior -2.1%)
  • 10:00 ET: September Wholesale Inventories ( consensus 0.0%; prior -0.1%)
  • 10:30 ET: Weekly crude oil inventories (prior +0.774 mln)