>>> TradeGate Pre-Market Indications

DAX:
  • BASF (BAS TH) -0.9%
MDAX:
  • Scout24 (G24 TH) +2.8%
    • Scout24 Raised to Buy at Goldman; PT 77.40 euros
  • Evonik (EVK TH) +1.2%
  • Varta (VAR1 TH) +1.1%
  • Aurubis (NDA TH) -1.7%
  • Aroundtown (AT1 TH) -2.1%
    • Aroundtown Cut to Hold at Jefferies; PT 6.30 euros
SDAX:
  • VERBIO Vereinigte (VBK TH) +2.2%
  • DIC Asset (DIC TH) +1.7%
  • Kloeckner (KCO TH) +1%
  • Traton (8TRA TH) -1.1%
  • Global Fashion Group (GFG TH) -1.4%
  • ADVA Optical (ADV TH) -1.6%
  • Grenke (GLJ TH) -1.8%

>>> What to look at today - 12th of February 2021

Stocks traded with little fanfare Friday as holidays across Asia curbed trading, and U.S. and European equity futures were little changed. Crude oil extended an overnight retreat.
Japanese shares ticked higher and Australian stocks slipped amid a snap lockdown for Victoria state. S&P 500 futures dipped after the benchmark on Thursday eked out a gain to close at an all-time high. Strength in tech shares ensured the Nasdaq 100 outperformed. Applications for U.S. state unemployment benefits fell slightly last week in a sign that the labor market is still gradually improving. The dollar firmed against most G-10 peers and Treasuries edged up.
Crude oil pared its weekly advance following the International Energy Agency’s bleaker outlook for global demand. Walt Disney Co. climbed post market after strong growth in its streaming services. Bitcoin climbed to a record.
US After Hours FOLD -20.7% heads lower on clinical data; LLNW -16.7%, SVMK -11.8%, VECO -11.8%, DDOG -3.2%, EXPE -1.9% down on earnings; TWOU +7.5%, CRY +6.1%, CGNX +5.7%, VRSN +5.1%, DIS +1.7% up on earnings

Nikkei -0.14% Hang Seng Closed CSI Closed Shanghai Closed Shenzen Closed

Gold $1,821 BTC $47,758

Eur$ 1.2125 CNH 6.4313 CNH 6.4582 JPY 104.83 GBP 1.3796 CHF 0.8904 RUB 73.8513 TRY 7.0395 WTI$ 57.78 -0.79%

S&P -0.21% Nasdaq -0.14% EuroStoxx -0.14% FTSE -0.26% Dax -0.26% SMI +0.18%


Macro :
- Draghi Wins Backing of Largest Party in Italian Parliament
- Chip Equipment Stocks Jump With Shortages Seen Driving Demand

SPACS :
- Clearing House Apex Is Said in Merger Talks With Ledecky SPAC
- Ex-SoFi CEO to Start Blank-Check Company to Raise $250 Million

Keep an eye on :
- AIR FP : Airbus Turboprop Model Gaining Favor as First Hydrogen Plane (1)
- AIR FP : Southwest Air Seeks to Buy 300 New 150-Seat Jets: Air Current
- ASCN SW : Veraison Cuts Ascom Stake to 4.85%; Sees ‘Restored Confidence’
- B2H NO : B2Holding 4Q Operating Profit NOK355M Vs. NOK291.1M Y/y
- BFF IM : Banca Farmafactoring Holder BFF Luxembourg Sarl Offers Shares
- BSLN SW : Basilea Data Show Derazantinib-Atezolizumab Was ‘Well Tolerated’
- BELL SW : Bell FY Ebitda Beats Estimates
- BB FP : BIC Registers EU169M Gross Capital Gain From Site Sales
- BKW SW : BKW AG to See One-Off Gain in FY 2020 From Grid Compensation
- BOL SS : Boliden 4Q Operating Profit Beats Estimates
- BRAV SS : Bravida 4Q Net Income Beats Estimates
- BT/ LN : Engineers Group at BT’s Openreach Set to Strike, Union Says
- BRNL NA : Brunel FY Ebit Beats Estimates
- BN FP : Another Danone Investor Joins Calls for Change, Accountability
- DHG ID : Company Drops Plan to Buy Dalata Shares at EU3.50-EU3.75/Share
- EMSN SW : EMS-Chemie FY Ebit Beats Estimates
- ENTRA NO : Entra 4Q Rental Income Meets Estimates
- ETL FP : Eutelsat Lifts Low End of Rev. Goal, Trims Cash Flow Target
- FARN LN : Faron Pharmaceuticals Share Sale Order Book Is Covered: Terms
- FDJ FP : FDJ FY Ebitda EU427M
- FLOW NA : Flow Traders 4Q Net Trading Income EU130.3M Vs. EU78.3M Q/q
- HSBA LN : HSBC to Target Wealth Management in Latest Strategic Shift (1)
- ING NA : ING 4Q Net Income Beats Estimates
- INGA NA : ING Signals Buybacks After Posting Better-Than-Expected Profit
- INTER NA : Intertrust Sees 2021 Underlying Revenue +2% to +4%
- INTO BB : Intervest Offices & Warehouses Names Vincent Macharis CFO
- IWG LN : Regus Owner IWG Buys Majority Stake in Office Startup The Wing
- JET2 LN : Jet2 to Place Up to 20% of its Share Capital
- KAMBI SS : Kambi Holder Veralda Investment Offers 675,000 Shares, Holder Prices at SEK462/Share
- KESKOB FH : Kesko Jan. Comparable Sales -3.3%
- KDS NA : Sanofi Launches Its EU5.45/Shr Cash Offer for Kiadis
- LHA GY : Lufthansa Cuts 103 Employees in India Citing Covid Impact: ET
- MS IM : Italy to Take Up to Two Months to Rule in Mediaset, Vivendi Case
- MCOVB SS : Medicover 4Q Operating Profit EU29.9M
- MVV1 GY : MVV Energie 1Q Adjusted Ebit EU98M Vs. EU81M Y/y
- NOL NO : Northern Ocean Reaches Settlement in Principle With Seadrill
- NHY NO : Norsk Hydro 4Q Underlying Ebit Beats Estimates
- OR FP : L’Oreal FY EPS Beat ‘Unexceptional’ Given Peer Performance: RBC
- PHNX LN : Phoenix Group Close to Buying Standard Life Name: Sky
- ROG SW : Roche: Faricimab Extends Time Between Treatments Up to 4 Months
- RUI FP : Rubis FY Revenue Misses Estimates
- SAN FP : Amgen Loses Appeal Over Antibody Patent in Sanofi Fight (1)
- SRT GY : Sartorius to Propose FY 2020 Div of EU0.70-Share, Double Prior
- SCHA NO : Schibsted 4Q Ebitda Beats Estimates
- TKO FP : Tikehau Capital AUM Reaches EU28.5B at End-2020
- TLG GY : TLG Immobilien in Advanced Disposal Negotiations About EU250M
- US IM : UnipolSai FY Pretax Profit Meets Estimates
- UNI IM : Unipol FY Pretax Profit Beats Estimates
- VEI NO : Veidekke 4Q Revenue Meets Estimates
- WHA NA : Wereldhave FY EPS Misses Estimates
- YIT FH : YIT to Sell Wind Power Project in Finland to OX2

>>> Europe : Brokers Upgrades & Downgrades - 12th of February 20

>>> Up
* Diploma Raised to Buy at HSBC; PT 2,705 pence
* Helical Raised to Buy at Peel Hunt; PT 425 pence
* Kongsberg Raised to Buy at Arctic Securities; PT 214 kroner
* Lok'nStore Group Cut to Add at Peel Hunt; PT 660 pence
* Neste Raised to Overweight at Barclays; PT 75 euros
* Pandox PT Raised, EPS Estimate Lowered at Morgan Stanley Post 4Q
* Royal Mail PT Raised to 680 pence at Deutsche Bank
* Scout24 Raised to Buy at Goldman; PT 77.40 euros
* Sweco Raised to Buy at SEB Equities; PT 148 kronor
* Total SE Raised to Buy at LBBW; PT 39 euros

>>> Down
* Aroundtown Cut to Hold at Jefferies; PT 6.30 euros
* Carnival Plc Cut to Sell at Berenberg; PT 1,000 pence
* Hensoldt Cut to Neutral at Citi; PT 15.90 euros
* Hyatt Cut to Sell at Berenberg; PT $55
* Royal Caribbean Cut to Sell at Berenberg; PT $55
* Norwegian Cruise Cut to Hold at Berenberg; PT $22
* Sbanken Cut to Hold at Pareto Securities; PT 85 kroner
* StrongPoint Cut to Hold at Norne Securities; PT 35 kroner
* Watches of Switzerland Cut to Neutral at Goldman; PT 690 pence

>>> Initiation
* Breedon Rated New Overweight at Morgan Stanley; PT 114 pence
* Ferguson Rated New Equal-Weight at Morgan Stanley
* FRP Advisory Group Reinstated Buy at Panmure Gordon
* Millicom Rated New Buy at SEB Equities; PT $405

>>> Call
* Hydrogen Stocks Offer Buying Opportunity After Pullback: Citi
* L’Oreal Results Strong on Sales, Margin, Stock May Rise: Goldman
* More Pain for U.K. Retail Property, Logistics Strong: Peel Hunt

>>> US After Hours Summary: FOLD -20.7% heads lower on clinical data; LLNW -16.7

After Hours Summary: FOLD -20.7% heads lower on clinical data; LLNW -16.7%, SVMK -11.8%, VECO -11.8%, DDOG -3.2%, EXPE -1.9% down on earnings; TWOU +7.5%, CRY +6.1%, CGNX +5.7%, VRSN +5.1%, DIS +1.7% up on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: HUBS +14.8%, GP +10.1% (also enters into purchase agreement for up to 150 GreenPower EV Star Cab and Chassis), TWOU +7.5%, CRY +6.1%, CGNX +5.7% (also Chairman to resign), VRSN +5.1%, CUZ +5%, JCOM +5%, VCRA +4%, RARE +3.8%, CC +3.6% (also to split Fluoroproducts segment into two new segments), BIO +2.4%, MHK +2.4%, ACB +2.4%, TEX +1.8%, DIS +1.7% (Disney+ subs at 94.9 mln), SAND +1.7%, REG +1.5%, AUY +0.8%, FLO +0.2%, MRC +0.2%, NSP +0.2%

Companies trading higher in after hours in reaction to news: RTP +15.7% (nearing merger deal with Joby Aviation, according to FT), TMQ +6.2% (provides approval for JV to enter into an Ambler Access Dev Agreement with AIDEA), INFI +4.5% (stock offering), CLPT +3.8% (announces a multi-product development deal with Blackrock Microsystems), AWK +3.1% (acquires Concordia Water Cooperative), DHX +2.9% (authorizes $8 mln stock repurchase program), MRNA +1.1% (President Biden confirms that PFE and MRNA will sell 200 mln COVID-19 doses to US; MRNA confirms US has purchased an additional 100 mln doses), TRQ +0.2% (provides update on arbitration with RIO), TEN +0.1% (Carl Icahn lowers active stake following recent sale of ~82K shares), PFE +0.1% (President Biden confirms that PFE and MRNA will sell 200 mln COVID-19 doses to US), AGFY +0.1% (stock offering)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: LLNW -16.7%, SVMK -11.8%, VECO -11.8%, AFRM -7.9%, NET -6.9%, CARG -6.6%, BL -6.2%, DXCM -4.3%, SGEN -3.8%, GDDY -3.5%, DDOG -3.2% (also to acquire Sqreen; also acquires Timber Technologies), DVA -1.9%, EXPE -1.9%, ILMN -1.6%, SPSC -1.2%, AEM -1%, FWRD -0.8%, DLR -0.5%, FRT -0.4% (also names new COO), WRE -0.4%, AMK -0.2%, BJRI -0.1%, BRX -0.1%

Companies trading lower in after hours in reaction to news: FOLD -20.7% (reports top-line results from Phase 3 PROPEL trial; plans to complete BLA submission in Q2), CFMS -12.7% (stock offering), PLX -9.2% (stock offering), CRVS -7.9% (stock offering), BBIO -4.5% (stock offering), SILV -3.7% (announces US$120 mln bought deal), BASI -2.2% (new COO), CREE -2% (stock offering), LOTZ -1.6% (stock offering), FLMN -0.8% (increases dividend), CDR -0.2% (files $750 mln mixed securities shelf offering), WEX -0.1% (to acquire certain HSA assets of HealthcareBank), KNSL -0.1% (increases dividend), CHCT -0.1% (increases dividend)

WSJ : GameStop Mania Is Focus of Federal Probes Into Possible Manipulation

GameStop Mania Is Focus of Federal Probes Into Possible Manipulation
Justice Department has subpoenaed information from Robinhood Markets, others

WASHINGTON—Federal prosecutors and regulators are investigating whether market manipulation or other types of misconduct fueled the rapid rise last month in prices of stocks such as GameStop Corp. GME -0.20% and AMC Entertainment Holdings Inc., AMC -3.28% according to people familiar with the matter.

The Justice Department’s fraud section and the San Francisco U.S. attorney’s office have sought information about the activity from brokers and social-media companies that were hubs for the trading frenzy, the people said. Prosecutors have subpoenaed information from brokers such as Robinhood Markets Inc., the popular online brokerage that many individual investors used to trade GameStop and other shares, the people said.

GameStop shares surged from about $20 to $483 over a period of two weeks in January. The stock has since fallen to around $50. It was fueled by an army of bullish individual traders exhorting one another on Reddit to buy the shares and squeeze hedge funds that bet the price would fall. Traders who bet stock prices will decline are known as short sellers.

In addition to the probe by the Justice Department, the Commodity Futures Trading Commission is examining similar trading, the people said. The CFTC has opened a preliminary investigation into whether misconduct occurred as some Reddit traders targeted silver futures and the largest exchange-traded fund tied to silver, the iShares Silver Trust, SLV 0.08% one of the people said.

The Wall Street Journal has reported that the Securities and Exchange Commission is reviewing the trading frenzy as well. The SEC and CFTC are civil regulators. The burden of proof in a regulatory enforcement action is lower than in a criminal case.

Separately, the House Financial Services Committee plans a hearing on Feb. 18 to examine what happened with GameStop’s shares. Reddit Chief Executive Steve Huffman was invited to testify and plans to appear before lawmakers, he told The Journal on Thursday.

Spokesmen for the Justice Department and CFTC declined to comment. A Reddit spokeswoman declined to comment. A spokesman for BlackRock Inc., which manages the iShares funds, couldn’t immediately be reached for comment.

Some commentators have said individuals coordinating on Reddit—largely in its WallStreetBets forum—openly engaged in a type of manipulation known as a pump and dump. In such a scheme, traders collude to inflate a stock’s price, usually by spreading false information, and then profit by selling their stakes to people duped by the fraud.

Proving market manipulation generally requires showing that traders schemed to create an artificial price and took action to accomplish it.

Regulators and prosecutors can find out who bought and sold shares, relying on data known as “blue sheets,” which brokers use to identify individuals behind trades. Tying the trades to public statements is more difficult; most people who talked about GameStop on websites such as Reddit did so anonymously.

If an investigation were to show that a few key individuals instigated the whole effort, that could buttress a manipulation case, according to securities lawyers. However, charging hundreds of defendants who traded in small increments and believed they were warring with hedge funds wouldn’t be viable, the lawyers said.

SEC Acting Chair Allison Lee told NPR last week that her agency’s enforcement division is working “around the clock right now” to determine whether any wrongdoing occurred. Ms. Lee said the SEC enforcement division is looking for signs of manipulation, but also checking whether brokerages such as Robinhood that had to curb trading at the peak of the frenzy and corporate insiders at companies such as GameStop complied with regulations.

WSJ ; Biden Says China Will ‘Eat Our Lunch’ on Infrastructure

Biden Says China Will ‘Eat Our Lunch’ on Infrastructure
President emphasizes need for new transportation spending the day after two-hour call with Xi Jinping

WASHINGTON—President Biden warned that China is making advancements in transportation that give it an advantage over the U.S., as he made a pitch for Congress to pass an economic recovery package that includes infrastructure improvements.

“If we don’t get moving, they’re going to eat our lunch. They have major, major new initiatives on rail,” Mr. Biden said, adding that China is also making rapid advances on electric-vehicle technology.

The president spoke with Chinese President Xi Jinping on Wednesday night in a call that Mr. Biden said lasted two hours. The two leaders, speaking for the first time since Mr. Biden took office, discussed a range of issues, including human rights, trade and security, according to the White House.

In May 2019 remarks, Mr. Biden appeared to dismiss the notion that China posed a major competitive threat to the U.S.

“China is going to eat our lunch? C’mon man,” he said in Iowa, asserting that the country was facing internal problems on a scale much larger than those in the U.S. Mr. Biden added, “They’re not bad folks, folks. But guess what? They’re not competition for us.”

Then-President Donald Trump criticized Mr. Biden for the comments at the time, calling them naive.

On Thursday, White House press secretary Jen Psaki said Mr. Biden recognizes the competitive threat China poses.

“I think the president’s view is that we’re in a competition with China and he’s clear-eyed about the depth of that challenge,” she said.

Mr. Biden and his senior aides are already looking ahead to a second legislative package focused on the economic recovery that they hope Congress will pass in the coming months. At the center of that package, according to White House officials, will be an infrastructure measure.

The president on Thursday gathered four senators to discuss infrastructure in the Oval Office: Environment and Public Works Committee Chairman Tom Carper (D., Del.); Small Business and Entrepreneurship Committee Chairman Ben Cardin (D., Md.); Sen. Shelley Moore Capito (W.Va.), the top Republican on the Environment and Public Works Committee; and Sen. Jim Inhofe (R., Okla.).

“There’s a lot we have to do and I could think of no better people to start off with to try to see if we can come up with some kind of generic consensus about how to begin,” Mr. Biden said.

Ms. Psaki declined to say how much Mr. Biden hopes to spend on an infrastructure package.

White House officials said Mr. Biden is planning to officially roll out his economic recovery plan in the coming weeks. The plan will focus on job creation, infrastructure, broadband and other issues.

Mr. Biden is planning to meet with U.S. governors and mayors at the White House on Friday to discuss infrastructure and the president’s economic recovery plan, according to people familiar with the matter. The White House didn’t respond to a request for comment.

It is the second component of a two-part response to the pandemic. House Speaker Nancy Pelosi (D., Calif.) told reporters Thursday that she expects the nine House committees currently shaping the first part to wrap up their work this week. The House Budget Committee will then sew together the components next week and the full House is expected to pass the package before the end of the month, she said.

Mrs. Pelosi said she expected Mr. Biden would be able to sign the bill into law before enhanced unemployment benefits expire in mid-March.

During his presidential campaign, Mr. Biden proposed spending $2 trillion over four years to improve infrastructure, create jobs in the renewable energy sector and tackle climate change.

Among his proposals: creating 1 million new jobs in the U.S. auto industry, in part through electric-vehicle development; providing federal incentives to develop zero-emissions public transit in cities; making buildings and homes more energy efficient; and using federal grants and loans to improve the U.S. rail system.

Mr. Carper said his committee is crafting a bill to reauthorize surface transportation programs that will include many of Mr. Biden’s priorities.

“Our current authorization extension expires in September: There is no time to waste,” he said after Thursday’s meeting. “Now, I’m looking forward to working with my colleagues in the House and in the Senate to get this done.”

The White House said Mr. Biden and other participants in the meeting “reiterated their commitment to making sure no workers are left behind, underscoring how the administration will bring construction, manufacturing, engineering, and skilled-trades jobs—with the choice to join a union—directly to the communities that are too often left behind.”

Presidents in their first year traditionally deliver an address to a joint session of Congress in lieu of a State of the Union address, often in late February, to lay out their agendas. Mrs. Pelosi said Democratic leaders wouldn’t discuss Mr. Biden’s joint address before Congress until after the coronavirus aid package passes the chamber.

>>> US Close Dow -0.02% S&P +0.17% Nasdaq +0.38% Russell +0.13%

Closing Stock Market Summary

The major indices closed mixed and little changed on Thursday in a range-bound session. The Nasdaq Composite (+0.4%) closed at a record high with a 0.4% gain, the S&P 500 (+0.2%) and Russell 2000 (+0.1%) eked out smaller gains, and the Dow Jones Industrial Average (-0.02%) closed fractionally lower after setting an all-time high early in the day. 

The session started modestly higher, as the market remained influenced by a fear of missing out on further gains, positive momentum, and lingering growth optimism. The market then slipped into negative territory amid some profit-taking pressure, but the large-cap indices never went below yesterday's lows. 

Red-hot stocks within the energy, small-cap, and micro-cap sectors were hit the hardest on the way down before investors classically bought the dip. For reference, the iShares Micro-Cap ETF (IWC 150.73, -0.63, -0.4%) declined 0.4% after being down 2.0% intraday, and the S&P 500 energy sector declined 1.5% after being down 3.6% intraday. The S&P 500 was down 0.5% at its low. 

The top-weighted S&P 500 information technology sector (+1.1%) was a steady support for the market amid strength in payment companies and semiconductor companies. The Philadelphia Semiconductor Index advanced 3.5%.

Tech heavyweight MasterCard (MA 342.87, +8.66, +2.6%) and Bank of New York Mellon (BK 42.13, +0.39, +0.9%) will reportedly incorporate cryptocurrencies into their businesses. Separately, bullish analyst commentary about NAND prices out of Morgan Stanley helped spur the semiconductor gains. 

Notably, Tilray (TLRY 32.16, -31.75, -49.7%) and other cannabis stocks did not benefit from a buy-the-dip mindset. The space was hit hard throughout the day in an unwind of the so-called Reddit trade.

In other corporate news, PepsiCo (PEP 134.97, -2.73, -2.0%), Uber (UBER 60.71, -2.47, -3.9%), and Zillow (ZG 200.60, +28.89, +16.8%) traded mixed following their earnings reports. Kraft Heinz (KHC 35.54, +1.65, +4.9%) agreed to sell its nuts business to Hormel Foods (HRL 48.18, -1.65, -3.3%) for $3.35 billion in cash. Bumble (BMBL 70.31, +27.31, +63.5%) had a hot public debut. 

U.S. Treasuries finished on a lower note, pushing most yields higher. The 2-yr yield increased one basis point to 0.11%, and the 10-yr yield increased three basis points to 1.16%. The U.S. Dollar Index was little changed at 90.40. WTI crude futures decreased 0.8%, or $0.48, to $58.23/bbl.

Reviewing Thursday's economic data:

  • Initial claims decreased by 19,000 to 793,000 ( consensus 750,000) in the week ending February 6 following an upward revision to 812,000 (from 779,000) for the prior week. Continuing claims for the week ending January 30 decreased by 145,000 to 4.545 million following an upward revision to 4.690 million (from 4.592 million) for the prior week.
    • The key takeaway from the report is unchanged: the labor market is not in a good place and that will necessitate additional stimulus measures.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for February on Friday.

  • Russell 2000 +15.7% YTD
  • Nasdaq Composite +8.8% YTD
  • S&P 500 +4.3% YTD
  • Dow Jones Industrial Average +2.7% YTD