>>> TradeGate Pré Market indications

DAX:

none
MDAX:

Aurubis (NDA TH) +1.8%
Aurubis FY Op. Ebitda Beats Estimates; Div. Misses BDVD Forecast
Osram (OSR TH) -0.6%
Osram Cut to Sell at Nord/LB; PT 41 euros
Telefonica Deutschland (O2D TH) -1.4%
Telefonica Deutschland FY Div. Falls to EU0.17 Vs EU0.27/Share
SDAX:

Borussia Dortmund (BVB TH) +5.1%
Ajax Shares Could Fall After Surprise Champions League Exit
Nordex (NDX1 TH) +2.6%
Corestate (CCAP TH) +2.6%
HelloFresh (HFG TH) -3.1%
HelloFresh Cut to Neutral at JPMorgan; PT 20 euro

>>> What to look at today - 11th of Decdember 2019

Asian stocks were mixed amid concern that an American tariff hike on Chinese imports scheduled for Sunday could still go ahead despite reports on progress in trade talks.
Benchmarks saw modest declines after White House adviser Peter Navarro cited no indication that President Donald Trump has made a decision either on a deal or on proceeding with the tariff hike. Japan maintained slight losses, while stocks elsewhere in the region recovered as the session wore on. The yuan edged lower offshore, though moves remain muted as traders await decisions on the U.S.-China front. Treasuries were flat, with investors also awaiting the Federal Reserve’s final policy meeting of the year. Crude oil fell.
US After Hours GME -15.5%, OLLI +11%, PLAY +2% following earnings/guidance, CHH / PLT +4% on index addition news

Nikkei -0.14% Hang Seng +0.54% CSI +.15% Shanghai +0.29% Shenzen -0.27%

Eur$ 1.1088 JPY 108.76 CNY 7.0374 CNH 7.0365 GBP 1.313

S&P -0.04% EuroStoxx +0.03% Dax+0.11% SMI +0.15%

Macro :
- Kudlow Says No Decision on Brazil, Argentina Steel Tariffs
- Democrats Map Trump Impeachment Path on Power Abuse, Obstruction
- China Sees U.S. Delaying Dec. 15 Tariffs as Talks Continue
- Trump Hosts Russia’s Lavrov at White House as Impeachment Looms

Keep an eye on :
- ADJ GY : ADO Properties Says Beaudemoulin Replaces Ran Laufer as CEO
- AD NA : Ahold Delhaize to Invest $480m in U.S. Supply Chain
- AJAX NA : Ajax Shares Could Fall After Surprise Champions League Exit
- AJB LN : AJ Bell Holders to Offer Shares
- APR FP : April to Record Additional EU21.1m Malta Charge After Tax Deal
- NDA GY : Aurubis Full Year Oper Ebitda Beats Estimates
- BAMI IM : Banco BPM SREP Decision: ‘Widely Exceeds’ ECB Cap. Requirements
- BFIT NA : Basic-Fit Share Offering Price Guidance Said Set at EU31-31.50 (Basic-Fit Holder 3i to Offer 3.4m Shrs)
- EN FP : ADP, Bouygues, Air Liquide Invest in Flying Whales Blimp: Echos
- GBB FP : Bourbon Says Court to Rule on Dec. 23 On Takeover Offers
- CO FP : Casino Could Pay EU2.4b Dividend in 2023, LatAm May Go: Kepler
- ACA FP : Credit Agricole CIB Targets Rev Growth +3% Per Year by 2022
- CSGN SW : Credit Suisse Cuts Profitability Goal for 2020
- DBK GY : Deutsche Bank’s Revenue To Be ‘Modestly Up’ in 2020: CFO
- ENGI FP : Engie, Meridiam Win 50-Year Deal to Run Iowa University Utility
- EQNR NO : Equinor Gets 20% Stake in 4 Mollerussa Blocks in GoM: Upstream
- EUCA GY : Euromicron to Apply for Protective Shield Proceedings
- HBH GY : Hornbach Holding Prelim 9M Adjusted Ebit About EU200 Mln
- HBSA LN : HSBC Agrees to Pay $192 Million to Resolve U.S. Tax Probe
- ICA SS : ICA Gruppen Sees Higher Capex Next Year
- ILCF IM : Illycaffe Is Said to Kick Off Stake Sale to Fuel U.S. Expansion
- JD/ LN : JD Sports Holder Pentland Group to Offer 24m Shrs
- KOOV LN : Koovs Sold to Entity Owned by Chairman Waheed Alli
- KN FP : Ostrum AM Sees Slowing Growth in 2020 But Recession Unlikely
- NOKIA FH : Vodafone CEO Says Europe Needs More 5G Vendors, Not Fewer
- OTE1V FH : Outotec Plans to Sell Some Businesses, Updates Guidance
- PRX NA : Amsterdam’s AEX Index to Include Prosus, Exclude Takeaway
- SAN FP : Regeneron Could Buy Back Sanofi’s Shares, Credit Suisse Says
- SFL IM : Safilo Cuts 2020 Targets, Sees Net Rev EU960m-EU1b
- SFSN SW : SFS Group Says CFO Rolf Frei to Step Down at AGM in 2021
- TKWY NA : Amsterdam’s AEX Index to Include Prosus, Exclude Takeaway
- TLGO SM : Talgo Names Alvaro Segura as New CFO: Filing
- UBSG SW : UBS Loan Trader Zamore Was Dismissed After Deal on Cell Phone
- UN01 GY : Uniper Close to Agreement With Qatar on LNG Supply to Germany

>>> Europe :Brokers Upgrades & Downgrades - 11th of December 201

>>> Up
* Euromoney Raised to Buy at Peel Hunt
* IAG Raised to Buy at SocGen; PT 660 pence
* IMI Raised to Buy at Citi
* Naturgy Raised to Market Perform at Bernstein; PT 23 euros
* SSP Raised to Overweight at Morgan Stanley; PT 760 pence
* Subsea 7 Raised to Overweight at JPMorgan; PT 128 kroner

>>> Down
* Airbus Cut to Hold at Jefferies; PT 120 euros
* Antofagasta Cut to Hold at Jefferies; PT 950 pence
* Banco Santander Cut to Hold at Deutsche Bank
* Bechtle Cut to Hold at HSBC; PT 120 euros
* Electrolux Cut to Sell at Citi
* Genmab Cut to Hold at DNB Markets; PT 1,685 kroner
* HelloFresh Cut to Neutral at JPMorgan; PT 20 euros
* Norsk Hydro Cut to Sell at Goldman; PT 27 kroner
* Osram Cut to Sell at Nord/LB; PT 41 euros
* Saipem Cut to Neutral at JPMorgan; PT 5.60 euros
* Sanoma Oyj Cut to Hold at SEB Equities; PT 10.60 euros
* Zurich Ins. Cut to Sector Perform at RBC; PT 395 Swiss francs

>>> Initiation
* ByggPartner I Dalarna Rated New Buy at Pareto Securities
* Chi-Med Rated New Equal-Weight at Morgan Stanley; PT 360 pence
* Chi-Med ADRs Rated New Equal-Weight at Morgan Stanley
* DiscoverIE Rated New Buy at Panmure Gordon; PT 615 pence
* Eckoh Cut to Hold at Panmure Gordon; PT 60 pence
* Generix Group SADIR Rated New Buy at Oddo BHF; PT 8 euros
* Kerry Group Reinstated Equal-Weight at Morgan Stanley
* Maersk Drilling Rated New Overweight at JPMorgan; PT 522 kroner
* Nordic Mining Rated New Buy at SpareBank; PT 5 kroner
* Societa Cattolica Rated New Hold at SocGen; PT 7.60 euros
* UnipolSai Rated New Buy at SocGen; PT 3 euros
* Unipol Rated New Buy at SocGen; PT 6.40 euros

>>> Call
* European Insurance Stocks to Outperform Again in 2020, RBC Says
* Electrolux Cut to Sell at Citi as Tailwinds Seen Diminishing
* K+S Mine Assets Likely to Be Less Attractive Than Salt: Citi

>>> US After Hours Summary: GME -15.5%, OLLI +11%, PLAY +2% following

After Hours Summary: GME -15.5%, OLLI +11%, PLAY +2% following earnings/guidance, CHH / PLT +4% on index addition news

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: OLLI +11.2%, PLAY +1.9%

Companies trading higher in after hours in reaction to news: WRTC +11.7% (President Tom Smith is scheduled to be interviewed live tomorrow morning at 8:50 a.m. ET in-studio on Morning's With Maria on the Fox Business Network program), XERS +11.1% ( reports "positive" topline results from the in-clinic stage of the Phase 2 study of its developmental ready-to-use glucagon in patients at risk of postprandial hypoglycemia following bariatric surgery), PACK +6.5% (commences underwritten registered public offering of its Class A common stock), CHH +4% (to join S&P MidCap 400), PLT +4% (to join S&P SmallCap 600), LDOS +1.6% (awarded $6.5 bln Defense Information Systems Agency contract), REAL +1.5% (initiated with a Buy at DA Davidson), PCG +1.5% (continued strength)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: GME -15.5%

Companies trading lower in after hours in reaction to news: AQST -14.5% (to offer $35 mln of shares of common stock), KIDS -7.9% (commences offering of common stock by selling stockholders), MDGL -6.3% (announces secondary offering of 1.2 mln shares of common stock; company will not receive any proceeds from offering), RCKT -5.1% (commences offering of $75 mln of shares of common stock), PI -4% (announces private offering of $75 mln aggregate principal amount of Convertible Senior Notes due 2026), MNTA -3.4% (announces public offering of $200 mln of shares of common stock), DBX -2.4% (Chief Customer Officer Yamini Rangan to step down), PMT -2.2% (announces public offering of 8.0 mln common shares of beneficial interest), DOOO -2.2% (ticking lower; co and its principal shareholders announce C$305.85 mln bought deal secondary offering), UPS -0.7% (downgraded to Market Perform from Outperform at BMO Capital Markets), GLNG -0.7% (light volume; initiated with a Sell at Goldman; tgt $12)

>>> US Close Dow -0.10% S&P -0.11% Nasdaq -0.07% Russell +0.13%

Closing Stock Market Summary

The S&P 500 declined 0.1% on Tuesday in a tight-ranged session, as investors digested several developments on trade, including a report that the U.S. and China could delay the Dec. 15 tariffs. The Dow Jones Industrial Average (-0.1%) and Nasdaq Composite (-0.1%) also lost 0.1%, while Russell 2000 (+0.1%) added 0.1%. 

According to The Wall Street Journal, a tariff delay would come as negotiators work to ensure China commits to purchasing more U.S. farm goods. A follow-up report from the South China Morning Post indicated that the delay is likely, but NEC Director Kudlow responded that the tariffs are still on the table. Mr. Kudlow could not confirm if the tariffs will be delayed.

This unresolved trade front was contrasted with House Speaker Pelosi announcing that a USMCA deal has been reached. Of course, the market has always been more concerned about a U.S.-China trade deal than a USMCA deal, so the latter didn't provide much enthusiasm in the market. Impeachment talk remained a non-factor.

Most S&P 500 sectors wavered near their unchanged marks throughout the session. The real estate (-0.7%) and materials (-0.6%) sectors diverted with relatively larger declines, while the energy (+0.2%) and health care (+0.2%) sectors finished higher. 

A wait-and-see mindset continued to influence trading, leading to the absence of buying conviction, with a Fed policy decision and the Consumer Price Index for November also due out tomorrow. More trade headlines should be anticipated this week, with expectations for those tariffs on Chinese imports to be delayed. 

AutoZone (AZO 1250.00, +81.00, +6.9%) and Stitch Fix (SFIX 26.23, +1.21, +4.8%) outperformed in earnings-driven advances, while Netflix (NFLX 293.12, -9.38, -3.1%) underperformed after it was downgraded to Underperform from Neutral at Needham. 

U.S. Treasuries finished the session mixed. The 2-yr yield increased three basis points to 1.65%, and the 10-yr yield was unchanged at 1.83%. The U.S. Dollar Index declined 0.2% to 97.45. WTI crude increased 0.4%, or $0.24, to $59.21/bbl. 

Reviewing Tuesday's economic data, which included the NFIB Small Business Optimism Index for November and and the revised Q3 readings for Productivity and Unit Labor Costs: 

  • Nonfarm business sector labor productivity decreased 0.2% in the third quarter (consensus -0.1%), according to the revised estimate, versus a previously reported 0.3% decrease. Unit labor costs increased 2.5% (Briefing.com consensus 3.4%) versus a previously reported 3.6% increase.
    • The key takeaway from the report remains the same as the preliminary estimate: the decline in productivity and the jump in unit labor costs points to profit margin pressures for businesses.
  • The NFIB Small Business Optimism Index for November increased to 104.7 from 102.4 in October.

Looking ahead, investors will receive the Consumer Price Index for November, the FOMC Rate Decision, the Treasury Budget for November, and the weekly MBA Mortgage Applications Index on Wednesday:

  • Nasdaq Composite +29.9% YTD
  • S&P 500 +25.0% YTD
  • Russell 2000 +21.0% YTD
  • Dow Jones Industrial Average +19.5% YTD