- Bayer (BAYN TH) +2.4%
- Bayer Wins First Roundup Trial as Jury Rejects Cancer Claim
- BAT (BMT TH) +1.3%
- Rio Tinto (RIO1 TH) +1.3%
- Rio Tinto Raised to Outperform at Exane; PT 5,630 pence
- Glaxo (GS7 TH) +1.2%
- Maersk (DP4B TH) +0.8%
- BP (BPE5 TH) +0.6%
- Commerzbank (CBK TH) -1.3%
- Watch European Banks, Rates-Sensitive Stocks as Yields Rise
- Rheinmetall (RHM TH) -1.4%
- Credit Agricole (XCA TH) -1.5%
- Equinor (DNQ TH) -1.7%
- Renault (RNL TH) -1.8%
- Times Live.za: Renault’s Alpine announces new endurance entry from 2024
- Banco Santander (BSD2 TH) -2.1%
- CD Projekt (7CD TH) -2.3%
- Nemetschek (NEM TH) -2.7%
- Nemetschek Cut to Hold at Stifel; PT 95 euros
- Deutsche Telekom (DTE TH) -2.9%
- Deutsche Telekom Shares Offered via GS in Softbank Deal: Terms
- T-Mobile Cuts Home Internet Price by 17% to Dislodge Cable (1)
- TUI (TUI1 TH) -3.6%
- Travel Operator TUI Plans $1.3 Billion Stock Sale to Cut Debt
DAX:
- Bayer (BAYN TH) +2.5%
- Bayer Wins First Roundup Trial as Jury Rejects Cancer Claim
- BASF (BAS TH) -1%
- VW (VOW3 TH) -1%
- Daimler (DAI TH) -1%
- Deutsche Bank (DBK TH) -1%
- Deutsche Bank Plans New Hires in Nordic Region Amid Deal Rush
- Deutsche Telekom (DTE TH) -2.7%
- Deutsche Telekom Shares Offered via GS in Softbank Deal: Terms
- T-Mobile Cuts Home Internet Price by 17% to Dislodge Cable (1)
MDAX:
- Evotec SE (EVT TH) +0.5%
- Lufthansa (LHA TH) -0.8%
- Freenet (FNTN TH) -0.9%
- Commerzbank (CBK TH) -1%
- K+S (SDF TH) -1.9%
- Nemetschek (NEM TH) -2.3%
- Nemetschek Cut to Hold at Stifel; PT 95 euros
SDAX:
- About You (YOU TH) +2.7%
- Synlab (SYAB TH) +2%
- Synlab Lifts Outlook Again as Delta Variant Drives Testing Surge
- Deutz (DEZ TH) +0.7%
- Nordex (NDX1 TH) +0.5%
- Deutsche PBB (PBB TH) -0.4%
- Kloeckner (KCO TH) -0.8%
- ADVA Optical (ADV TH) -0.8%
Asian stocks and U.S. futures dipped Wednesday as Treasury yields extended an advance amid a surge in energy costs that threatens to stoke inflationary pressures. The dollar ticked higher.
MSCI Inc.’s Asia-Pacific index slid for a fourth session, including retreats in Japan and Hong Kong, contrasting with an overnight Wall Street rebound spurred by bargain-hunting in beaten-down technology stocks. S&P 500, Nasdaq 100 and European equity futuresall declined.
The 10-year Treasury yield and the 30-year yield both reached the highest since June. Faster-than-expected U.S. service-sector activity and price pressures from spiraling costs for crude oil and natural gas are adding to the case for a reduction in Federal Reserve bond-buying.
Traders are awaiting jobs data this week for more clues about the Fed policy outlook. In New Zealand, the central bank raised interest rates for the first time in seven years and signaled more tightening, whipsawing the currency.
Volatility has picked up in global markets as investors brace for a slower but still robust economic recovery from the pandemic and gradual monetary-policy tightening to contain the cost of living. U.S. political gridlock over the nation’s debt ceiling and President Joe Biden’s wider economic agenda is contributing to the uncertainty.
US After Hours SWX -3.4% falls a bit on its purchase of Questar Pipelines from D; HOV -3.5% down on lowered guidance; PLTR +13.7% higher on US Army win
Nikkei -0.94% Hang Seng -0.31% CSI +0.67% Shanghai +0.90% Shenzen +2.04%
Eur$ 1.1585 CNH 6.4522 CNY 6.4448 JPY 111.76 GBP 1.3605 CHF 0.9297 RUB 72.46 TRY 8.8949 WTI$ 79.28 +0.43% GOLD 1,751.39 -0.50% BTC 51,580 +0.22% ETH 349 -0.97%
S&P -0.45% Nasdaq -0.59% EuroStoxx -0.85% FTSE -0.70% Dax -0.77% SMI -0.39%
Macro :
- A Surprise Default in China Worsens Evergrande Contagion Fears
- European Firms Mull Moving Staff From Hong Kong, Chamber Says
- Bitcoin Bulls Eye Fresh Peaks After Bucking Global Market Swoon
- Draghi Pushes Ahead With Italy Reform a Day After Local Vote
- Noma Is the Best Restaurant in the World Again, Says Top 50 List
- Main Capital Raises EU1.2b for Two Technology Investment Funds
Spac :
- Avalon Acquisition Prices Upsized $180m SPAC IPO
Keep an eye on :
- AMBU DC : Ambu to Miss Full-Year Organic Revenue Growth, Earnings Guidance
- ASLR LN : YOLO Crowd Is Paring Back Its Appetite for Buying Dip
- BO DC : B&O 1Q Revenue Beats Estimates
- BAYN GY : Bayer Says It Won Roundup-Cancer Jury Trial in Los Angeles
- BPOST BB : Bpost Group CFO Leen Geirnaerdt to Leave Company
- CERV IM : Cerved Calls Shareholder Meeting for Feb. 11 on Castor Merger
- DFDS DC : Volvo Lands Order for 100 Electric Trucks in ‘Breakthrough’ Deal
- DTE GY : Deutsche Telekom Shares Offered via GS in Softbank Deal: Terms
- DTE GY : T-Mobile Cuts Home Internet Price by 17% to Dislodge Cable
- FB US : Telegram Sees Record 70m New Users During Facebook Outage
- GN DC : GN to Buy Gaming Gear Maker SteelSeries for DKK8 Bln in EV Value
- ICAD FP : Icade Postpones Icade Sante’s IPO Pending Market Conditions
- BMPS IM : Monte Paschi Concludes Sale of Over 36 Million Own Shares
- NETC DC : Netcompany Shares Decline on Potential Acquisition of Intrasoft
- 7974 HK : Cathie Wood Dumps Most of Her Nintendo Stock Before OLED Launch
- RET BB : Retail Estates to Issue 560,689 New Shares at EU63.95/Share
- RXL FP : Rexel to Buy Mayer; Enterprise Value of $456m (1)
- Rivian IPO; Soros Fund Hopes Rivian IPO Prices at Value Below $80 Billion
- SYAB GY : Synlab Lifts Outlook Again as Delta Variant Drives Testing Surge
- TEF SM : Telefonica Spain Fiber Stake Sale Boon for Deleveraging: React
- TERB BB : Ter Beke in Talks to Buy Imperial Meat Products and Stegeman
- TSCO LN : Tesco 1H Revenue Meets Estimates
- HO FP : Thales, Google Cloud to Develop “Trusted Cloud” in France
- TUI1 GY : Travel Operator TUI Plans $1.3 Billion Stock Sale to Cut Debt
- UBI FP : A Free-to-Play Ghost Recon May Lift Ubisoft Sales Growth: React
- UNI SM : Unicaja Tells Unions of Plans for 1,513 Job Cuts: Confidencial
- VOW GY : VW Mexico Extends Partial Production Stop: Reuters
- WBD IM : Webuild Subsidiary Lane Wins $441m Contract for Highway in U.S.
>>> Up
* Aurubis Raised to Neutral at Exane; PT 71 euros
* Boliden Raised to Outperform at Exane; PT 331 kronor
* Epiroc Raised to Buy at Pareto Securities; PT 215 kronor
* Eramet Raised to Outperform at Exane; PT 82 euros
* *GRIFOLS B SHARES RAISED TO BUY AT CITI, PT EU18
* HSBC Raised to Buy at UBS
* Infineon Raised to Buy at LBBW; PT 39 euros
* MTU Aero Raised to Outperform at Bernstein; PT 250 euros
* Partners Group Raised to Add at Baader Helvea
* Rio Tinto Raised to Outperform at Exane; PT 5,630 pence
* Rolls-Royce Raised to Market Perform at Bernstein; PT 133 pence
* UniCredit Raised to Buy at Deutsche Bank; PT 15 euros
* Valeo Raised to Neutral at Oddo BHF; PT 26 euros
>>> Down
* Aryzta Cut to Add at Baader Helvea; PT 1.45 Swiss francs
* Close Brothers Cut to Sector Perform at RBC; PT 1,700 pence
* GN Store Nord Cut to Add at AlphaValue/Baader
* HOMESERVE DOWNGRADED TO UNDERPERFORM FROM OUTPERFORM AT EXANE
* Hunter Group Cut to Hold at Pareto Securities; PT 3.40 kroner
* Iliad Cut to Hold at SocGen; PT 182 euros
* Mediobanca Cut to Hold at Deutsche Bank; PT 10.90 euros
* Nemetschek Cut to Hold at Deutsche Bank; PT 90 euros
* Nemetschek Cut to Hold at Stifel; PT 95 euros
* Secure Income Cut to Neutral at Goldman; PT 450 pence
>>> Initiation
* Airthings Rated New Buy at SEB Equities; PT 15.75 kroner
>>> Call
* Allfunds Upgraded at Morgan Stanley on Platform Fee Upside
* Ambu Shares Face Turbulence Amid Freight Problems, Sydbank Says
* Close Brothers Lacks Catalysts, RBC Cuts to Sector Perform
* Eramet Raised to Outperform at Exane on Manganese Price Windfall
* Grifols Raised at Citi on Biotest Deal, U.S. Collection Outlook
* HomeServe Double Downgraded at Exane on U.K. Turmoil; PT Cut 34%
After Hours Summary: SWX -3.4% falls a bit on its purchase of Questar Pipelines from D; HOV -3.5% down on lowered guidance; PLTR +13.7% higher on US Army winAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: None
Companies trading higher in after hours in reaction to news: PLTR +13.7% (selected by US Army for intelligence systems and analytics), CLXT +10.4% (announces new initiative to provide plant-based synthetic biology solutions to expanded end markets), STIM +9.2% (announces commercial agreement with Success TMS), ALSN +3.2% (announces development of Next Generation Electrified Transmission), RIOT +2.4% (reports Sept production and operation updates), BSX +0.9% (clinical data for EkoSonic Endovascular system shows positive results), HON +0.8% (unveils cloud-connected cockpit system Anthem), D +0.7% (D to sell Questar Pipelines to SWX for $1.975 bln), REAL +0.5% (provides monthly update; Sep GMV increased 44% yr/yr), IRTC +0.3% (Zio demonstrates improved health outcomes in clinical trial), PKI +0.3% (EUROIMMUN receives EUA from the FDA for Anti-SARS-CoV-2 S1 Curve ELISA), ASR +0.2% (reports Sept passenger traffic), RGS +0.2% (being removed from S&P SmallCap 600), TSLA +0.1% (Model Y Performance nearing a complete sell-out for 2021, according to Teslarati.com)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: HOV -3.5% (lowers Q4 revenue guidance due to supply chain delays)
Companies trading lower in after hours in reaction to news: HESM -7.9% (stock offering), MANU -7% (announces 9.5 mln share offering by selling shareholders), SWX -3.4% (D to sell Questar Pipelines to SWX for $1.975 bln), TRIT -0.7% (provides update on financial audit), AZO -0.1% (authorizes stock repurchase of an additional $1.5 bln)
Closing Stock Market SummaryThe S&P 500 rose 1.1% on this Turnaround Tuesday session, as the mega-cap stocks mechanically bounced back from recent losses. The benchmark index finished right in between the Dow Jones Industrial Average (+0.9%) and Nasdaq Composite (+1.3%) in percentage terms, while the Russell 2000 increased just 0.5%.
There wasn't a specific catalyst today, but with the Nasdaq Composite entering the session down 7.5% from its all-time high on Sept. 7, there was a belief that the mega-caps/growth stocks had gotten oversold on a short-term basis. Encouragingly, investors followed through on early buying efforts, although there was some slippage into the close.
The Vanguard Mega Cap Growth ETF (MGK 235.22, +3.04) rose 1.3%, but it was still relatively broad-based effort. Nine of the 11 S&P 500 sectors closed higher, led by financials (+1.8%) with nearly a 2.0% gain, and the Invesco S&P 500 Equal Weight ETF (RSP 151.96, +1.08) rose 0.7%.
The real estate (-0.9%) and utilities (-0.2%) sectors were the only sectors that closed lower, largely due to the bump in long-term interest rates. The latter signaled growth/inflation expectations amid positive momentum in energy prices and a better-than-expected ISM Non-Manufacturing Index for September.
The 10-yr yield rose five basis points to 1.53% while the 2-yr yield increased one basis point to 0.29%. WTI crude futures settled close to $79 per barrel ($78.97, +1.28, +1.7%). Natural gas futures rose 8.6% to $6.26/MMBtu. The U.S. Dollar Index increased 0.2% to 93.98.
Specifying the ISM report, the Non-Manufacturing Index for September increased to 61.9% (Briefing.com consensus 60.0%) from 61.7% in August. This was the sixteenth straight month of growth for the services sector despite the challenging macro environment.
In other relevant news, Facebook (FB 332.96, +6.73, +2.1%) shares were minimally impacted by the whistleblower's congressional testimony. PepsiCo (PEP 151.09, +0.89, +0.6%) reported better-than-expected earnings results and raised its FY21 organic revenue growth guidance.
Reviewing Tuesday's economic data:
- The ISM Non-Manufacturing Index for September increased to 61.9% (consensus 60.0%) from 61.7% in August. The dividing line between expansion and contraction is 50.0%. The September reading marks the sixteenth straight month of growth for the services sector.
- The key takeaway from the report is the understanding that services sector activity is still running strong in spite of a broad-based industry acknowledgment that services activity is being constrained by labor shortages, logistics problems, and difficulty in obtaining supplies.
- The August Trade Balance report was worse than expected. It showed a widening in the trade deficit to $73.3 billion (consensus $71.0 billion) from a downwardly revised $70.3 billion (from $70.1 billion) in July. The widening in the deficit was the result of imports being $3.0 billion more than exports in August.
- The key takeaway from the report is that it captured the growth constraints of the semiconductor supply shortage and some of the dampening effects of the Delta variant as exports and imports of automotive vehicles and parts both decreased along with exports to China.
- The final IHS Markit Services PMI increased to 54.9 in September from 54.4 in the final reading for August.
Looking ahead, investors will receive the ADP Employment Change Report for September and the weekly MBA Mortgage Applications Index on Wednesday.
- S&P 500 +15.7% YTD
- Russell 2000 +12.9% YTD
- Dow Jones Industrial Average +12.1% YTD
- Nasdaq Composite +12.0% YTD