Closing Stock Market SummaryThe S&P 500 gained 1.2% on Thursday to snap a three-day losing streak in which it fell 5.6%. The Nasdaq Composite increased 1.6%, the Dow Jones Industrial Average increased 0.5%, and the Russell 2000 increased 1.2%.
The primary drivers in today's trade were Apple (AAPL 115.32, +4.12, +3.7%), Amazon (AMZN 3211.01, +48.23, +1.5%), Alphabet (GOOG 1567.24, +50.62, +3.3%), and Facebook (FB 280.83, +13.16, +4.9%) ahead of their earnings reports after the close. Note, these stocks had poor performance yesterday as part of the general weakness in the market, suggesting that today's gains were in part technically-oriented.
To be fair, Pinterest's (PINS 62.51, +13.26, +26.9%) strong earnings report was a supporting factor, as investors hoped that Facebook and Alphabet also benefited from increased advertising spending. The latter two contributed to the outperformance of the S&P 500 communication services sector (+2.9%).
The energy sector (+3.2%) advanced the most, though. The health care sector (-0.7%) was the lone holdout with Abiomed (ABMD 254.61, -28.39, -10.0%) being the weakest component after guiding fiscal Q3 revenue below consensus.
Today's economic data was good for sentiment, even though the initial reaction was muted and the GDP data was considered backward-looking. Q3 GDP increased at a record annualized rate of 33.1% (Briefing.com consensus 30.2%) following a record 31.4% annualized decline in Q2. Weekly initial jobless claims decreased by 40,000 to 751,000 (Briefing.com consensus 763,000).
In other corporate news, Netflix (NFLX 501.21, +17.97, +3.7%) increased its prices for U.S. subscribers, which revived a slumbering stock; Visa (V 184.87, +4.00, +2.2%) beat top and bottom-line estimates; and Marvell (MRVL 38.21, -1.32, -3.3%) agreed to acquire Inphi (IPHI 140.60, +29.63, +26.7%) in a $10 billion deal.
The positive showing in equities decreased interest in U.S. Treasuries and hedging activity. The CBOE Volatility Index fell 6.7% to 37.57. The 2-yr yield finished flat at 0.15%, while the 10-yr yield rose five basis points to 0.84%. The U.S. Dollar Index increased 0.6% to 93.92, which was one headwind for oil prices ($36.13, -1.32, -3.5%).
Reviewing Thursday's economic data:
- Q3 GDP increased at a record annualized rate of 33.1% (consensus 30.2%) following a record 31.4% annualized decline in Q2. The Q3 GDP Chair Deflator increased 3.6% (consensus 3.0%) after declining 1.8% in Q2.
- The key takeaway from this report is that it was driven by a huge rebound in personal spending, which contributed 25.27 percentage points to the change in GDP. The other key takeaway for a market that is staring at elevated levels of uncertainty looking ahead is that this GDP report, which the market already knew was going to be historically good, is backward looking.
- Initial claims for the week ending October 24 decreased by 40,000 to 751,000 (consensus 763,000). Continuing claims for the week ending October 17 decreased by 709,000 to 7.756 million.
- The key takeaway from this report is that initial claims are still terribly high. The other key takeaway is that this report is a leading indicator, meaning that the terribly high level of initial claims portends a challenging pace of recovery for the job market.
- Pending home sales decreased 2.2% in September (consensus 3.5%) following an unrevised 8.8% increase in October.
Looking ahead to Friday, investors will receive the Personal Income and Spending report for September, the Q3 Employment Cost Index, the Chicago PMI for October, and the final Univ. of Michigan Index of Consumer Sentiment for October.
- Nasdaq Composite +24.7% YTD
- S&P 500 +2.5% YTD
- Dow Jones Industrial Average -6.6% YTD
- Russell 2000 -6.4% YTD
Gapping down
In reaction to earnings/guidance:
- NOK -15.1%, INOV -11.7%, APRN -10.2%, BLKB -6.5%, INSM -6.2%, CS -5.9%, ABMD -5.3%, EBAY -5%, EQNR -4.2%, PEGA -4%, WCN -3.9%, SPOT -3.9%, PI -3.8%, LVGO -3.5%, WEX -3.4%, TDOC -3.3%, CREE -3.2%, ACA -3.1%, MSA -2.9%, ETSY -2.6%, CHD -2.5%, OESX -2.5%, WERN -2.2%, RYN -2.1%, NTB -2%, MUSA -1.9%, FIS -1.9%, SNY -1.8%, FBHS -1.7%, PBFX -1.7%, SFM -1.6%, AXS -1.4%, PLX -1.4%, APO -1.3%, CERN -1.1%
M&A news:
- MRVL -7.7% (Inphi confirms agreement to be acquire by Marvell; MRVL also provides Q3 guidance)
Other news:
- TCDA -30.5% (provides update on FDA interactions pertaining to veverimer)
- CCXI -12.9% (announces positive topline data from AURORA trial of avacopan)
- ARCH -5.2% (convertible offering)
- WCN -3.9% (increases dividend)
- MUSA -1.9% (announces update to its capital allocation strategy; initiates $0.25/sh dividend)
- RARE -1.6% (prices offering of 4,444,444 shares of its common stock at $90.00 per share)
Analyst comments:
- FSLR -1.4% (downgraded to Neutral from Overweight at JP Morgan)
Gapping up
In reaction to earnings/guidance:
- PINS +30.8%, IPHI +26.3%, BCO +18%, TPR +12.6%, USCR +11.3%, SLCA +11.3%, CGNX +9.9% (also increases dividend), EGHT +9%, MDCA +8.5%, HOME +7.9%, ALSN +7.7%, ECHO +7.4%, AGI +7.1%, NDLS +6.6%, PEN +6.6%, ORAN +6.6%, LYG +5.8%, KTB +5.8%, ALGT +5.7%, MDC +5.6%, TAP +5.6%, PPC +5.4%, CTB +5.2%, UMC +5.1% (also settles with DOJ), CPG +5.1%, MLM +5.1%, PWR +5%, CNMD +4.9%, GEO +4.8%, EGOV +4.5%, CARR +4.4%, F +4.3%, SRI +4.2%, CTSH +4.2%, IFRX +4.2%, TPX +4.1%, UCTT +4%, NVCR +4%, GMED +3.8%, MTLS +3.8%, RLGY +3.7%, COOP +3.5%, RGR +3.4%, ALKS +3.4%, BXMT +3.4%, YUMC +3.2%, SCI +3.1%, RDS.A +3.1%, SYNH +3.1%, SHOP +3%, ADS +3%, AMP +2.9%, ALXN +2.9%, FMX +2.8%, TAK +2.8%, TXT +2.8%, ATI +2.8%, BC +2.7%, GPI +2.7%, KHC +2.7%, MRNA +2.7%, SAH +2.6%, TROX +2.5%, AVT +2.4%, URI +2.4%, IDXX +2.4%, NOW +2.3%, UTL +2.3%, SAVE +2.2%, AMT +2.2%, GNCA +2.2%, VC +2.2%, AGEN +2.2%, BOOT +2.1%, LKQ +2.1%, CMCSA +2.1%, CACI +2%, NLY +2%, WDC +2%, XYL +1.9%, CDE +1.8%, VVV +1.8%, BPMC +1.6%, PENN +1.6%, LAWS +1.6%, ISBC +1.5%, CHDN +1.5%, MMSI +1.5%, YUM +1.5%, DRE +1.4%, CFX +1.4%, TXRH +1.3%, GPN +1.3%, IP +1.2%, FORM +1.1%, SNN +1.1%, BAX +1.1%, CNX +1.1%, LORL +1%
M&A news:
- IPHI +27.7% (confirms agreement to be acquire by Marvell (MRVL))
- APEI +1.5% (acquires Rasmussen University)
Other news:
- VSTM +10.4% (reports the Lancet published data demonstrating the potential of VS-6766 as treatment for RAS mutant tumors)
- OSTK +4.6% (tZERO signs agreement with Tynton Capital for digitization services)
- HGEN +4.3% (announces dosing of first patient in NIH ACTIV-5 "Big Effect Trial" evaluating lenzilumab for COVID-19)
- MESO +4.1% (provided an update on the potential pathway to marketing approval for its lead product candidate remestemcel-L)
- SYNH +3.1% (to acquire Synteract; acquires Amulet Capital Partners' Synteract)
- MRNA +2.8% (partners with Takeda (TAK) to supply 50 million doses of mRNA vaccine against COVID-19 (mRNA-1273) to Japan)
- REGN +2.3% (announces trial data for COVID-19 cocktail, REGN-COV2, met the primary and key secondary endpoints)
- OR +2.1% (provides corporate update)
- SUN +1.7% (new CFO)
- SRRK +1.5% (prices offering of 2,948,718 shares of its common stock)
- HTGC +1.3% (approved for third SBIC license)
- AMSF +1% (declares special cash dividend of $3.50/share)
- LLY +1% (announces publication of BLAZE-1 data)
Analyst comments:
- EGHT +9% (upgraded to Buy from Hold at Summit Insights)
- CRTO +4.9% (upgraded to Outperform from Market Perform at BMO Capital Markets)
- CTSH +4.2% (upgraded to Outperform from Market Perform at Cowen)
- BBBY +3.8% (upgraded to Outperform from Market Perform at Telsey Advisory Group)
- FVRR +2.7% (upgraded to Mkt Outperform from Mkt Perform at JMP Securities)
- VNDA +2.1% (upgraded to Buy from Neutral at Citigroup)
- CB +2% (upgraded to Neutral from Underperform at BofA Securities)
Outdoor Dining Fashion: How to Look Cool and Stay Warm
Covid has pushed our social lives outside, and we’re clinging to any chance to chat in person even as temperatures dip. Here, hot tips for dressing warmly yet stylishly.
IN A MEMORABLE scene from the seasonal classic “A Christmas Story,” Mother Parker readies her groaning son Randy for the wintry walk to school by stuffing his little limbs into a snowsuit and encasing him like a mummy in layers of woolly accessories. As Randy complains that he can’t move his arms, his older brother (and the film’s narrator) Ralphie intones: “Preparing to go to school was like getting ready for extended deep-sea diving.” While the movie is set in the 1940s, the tendency to overdress one’s children for cold weather is a timeless tradition. And as Covid continues to force us outside to socialize, many of us are tempted to adopt Randy’s over-bundled look.
But you needn’t channel a fashion-paralyzed grade schooler to dine en plein air this season. Instead, consider this far more sophisticated strategy. Step one: Prioritize statement outerwear. Maddie Bailis, 29, a buyer for Brooklyn boutique Bird, sees current circumstances as the ideal opportunity to embrace maximalism. “I think people will start shifting their budgets toward more novel outerwear and thinking of coats not just as a cocoon that you peel off to reveal an impressive outfit underneath,” she said. The ideal coat for socializing is roomy, but not overwhelming, said Ms. Ballis. She advocates for Lemaire’s tent-like boiled wool coats and Dries van Noten’s cozy faux fur styles. Marjon Carlos, 37, a Brooklyn journalist, said “striking and eye-catching” are her outerwear prerequisites. Her pick: a crackled-patent-and-shearling showstopper.
Considered accessories are critical, contributing warmth and vital pizazz.
What peeks out beyond your coat’s perimeter should also insulate and look good doing it. New York stylist Doria Santlofer, 36, has found an appealing, cozy silhouette in substantial wool, high-waisted trousers by Marc Jacobs. “I like wide-leg ones so you can easily slip long underwear underneath,” she said. Leather pants by Veda are Ms. Carlos’s go-to—she contends they provide “the perfect insulation.”
Turtlenecks will keep your torso toasty and, as Ms. Bailis pointed out, “can provide a sliver of color or print above a collar.” Dickies—a sort of turtleneck-scarf hybrid—perform the same trick. Casey Larkin Blond, 41, the founder of fashion brand Mr. Larkin, whose flagship store is in Copenhagen, enthusiastically depends on dickeys. “I have several in multiple colors to go with different coats,” she said.
JUST CHILLIN’ No, you needn’t wear a snowsuit to hang with friends outside this season. Try these chic, insulating, essentials for chilly rendezvous. Clockwise from top left: Boots, $1,945, tods.com; Scarf, $290, acnestudios.com; Gloves, $120, hestragloves.com; Socks, $24, bombas.com; Hat, $565, moncler.com; Dress, $510, laurenmanoogian.com; Cape, $600, pologeorgis.com
While not a sartorial statement, base layers remain nonnegotiable. Bodysuits and Uniqlo’s layerable Heattech tops guard against the cold without adding bulk, and wool socks or heavyweight tights (or both!) will prevent toe chills.
Also critical: Reassess your accessories. Not only do they play a starring role in heat retention, they contribute vital pizazz. Ms. Blond slips on vivid gloves to stave off frostbite and add visual interest—her favorites are Clyde’s opera-length style in bright blue. If dining is on the docket, consider fingerless gloves to avoid greasy french-fry stains; for frigid walks in the park, Ms. Bailis recommends plush sheepskin mittens (hers are by Hestra) and stashing hand warmers in your pockets.
Head coverings are crucial and, after coats, make the strongest impression, so trade that cutesy pompom hat for something bolder. Ms. Blond suggests the pastel headpieces by Rus, a less bank-robberish take on the balaclava. “The trick is to show a little hair around your face so you don’t look like a toddler,” she said.
The anchor of it all, your shoes, should skew practical—not only are we spending more time in the cold, we’re walking and biking more. Ms. Blond, who pedals everywhere in Copenhagen, favors a reliable sneaker or a flat, knee-high leather boot. Ms. Santlofer swears by her black shearling-lined Feit clogs, and Ms. Carlos just ordered a pair of towering, Telfar boots with embossed-logo handles. “They’re fun and wild and ready for anything that life throws at me,” she said. And life has been throwing some curious things.
An infusion of that ready-for-anything spirit is exactly what our winter wardrobes need in 2020. We can’t predict much, including the weather, and being prepared—or at least having a stylish outfit that projects preparedness—can leave us reassured. Knowing this can be achieved without emulating poor little immobilized Randy is a relief in itself.
Early premarket gappers
- Gapping up:
- PINS +31.8%, VSTM +22.6%, TCDA +10%, AGI +9%, ALSN +7.7%, CGNX +7.5%, ECHO +7.4%, PPC +7%, EGHT +6.8%, ORAN +6.8%, NDLS +6.6%, PEN +6.6%, ALGT +5.7%, F +5.3%, OSTK +4.9%, CNMD +4.9%, EGOV +4.7%, RDS.A +4.7%, LYG +4.3%, SRI +4.2%, UMC +4.2%, CTSH +4.1%, UCTT +4%, CDE +4%, YUMC +3.7%, MRNA +3.5%, RGR +3.4%, SYNH +3.1%, WDC +3.1%, SCI +3.1%, BUD +3.1%, AM +3%, AMP +2.9%, REGN +2.8%, FMX +2.8%, GMED +2.8%, FSLY +2.8%, SAVE +2.8%, WELL +2.7%, URI +2.6%, TROX +2.5%, NOW +2.5%, BOOT +2.1%, LKQ +2.1%, NVCR +2.1%, CACI +2%, MESO +1.9%, NLY +1.9%, VVV +1.8%, SUN +1.7%, AUY +1.7%, WKHS +1.5%, APEI +1.5%, ISBC +1.5%, CHDN +1.5%, MMSI +1.5%, SNN +1.5%, DRE +1.4%, CFX +1.4%, HTGC +1.3%, TXRH +1.3%, AMZN +1.2%, GOOG +1.2%, AVT +1.2%, TAK +1.2%, LLY +1.1%, ALLK +1.1%, FORM +1.1%, AEM +1.1%, AMSF +1%, NEM +1%, KLAC +1%, AZN +0.9%
- Gapping down:
- CCXI -16%, NOK -15.8%, INOV -11.7%, BLKB -6.5%, CS -5.5%, ARCH -5.2%, EBAY -4.2%, TDOC -4.2%, SPOT -4%, WCN -3.9%, WCN -3.9%, LVGO -3.4%, CREE -3.2%, PI -3.1%, ACA -3.1%, EQNR -3.1%, MSA -2.9%, SFM -2.6%, PTC -2.4%, AR -2.3%, WERN -2.2%, RYN -2.1%, NTB -2%, MUSA -1.9%, PEGA -1.9%, MUSA -1.9%, VICI -1.9%, ETSY -1.8%, FBHS -1.7%, SPWR -1.6%, PRLB -1.2%, GERN -1.1%, CERN -1.1%, USCR -1.1%, ORLY -1%