Stocks in Asia pushed higher with U.S. futures, spurred by signs the U.S. and China are inching toward a trade deal. Treasuries extended declines.
Japanese shares led Asian gains as Tokyo traders caught up after a Monday holiday, with more modest advances in Shanghai, Hong Kong and Seoul. The Dow Jones Industrial Average claimed its first all-time high since July on Monday, joining other U.S. benchmarks. The yen slipped amid the risk-on mood. European equity futures climbed.
US After Hours EVER +26%, CHGG +12%, EVBG +11%, ADBE +4% are higher, while MYGN -36%, SNCR / SHAK -16%, UBER / MOS / ENDP -5% are lower following earnings/guidance
Nikkei +1,76% Hang Sang +0.23% CSI +0.51%
S&P +0.18% EuroStoxx +0.30%
Macro :
- China Reviews Xi’s Options to Visit U.S. to Sign Trade Deal
- Atlanta Fed GDP Model May Offer a Reason to Worry: Markets Live
Keep an eye on :
- AC FP Watch Hotel Stocks After Marriott Miss on Slowing Travel Demand
- ADEN SW : Adecco Sells U.S. Healthcare Staffing Unit for $612 Million
- AOX GY : Alstria Office Nine Month FFO I EU84.2 Mln, -5% Y/y
- BAKKA NO : Bakkafrost Third Quarter Operating Ebit 3.1% Above Estimates
- BARC LN : Barclays Faces SEC Probe Into Sales of Property-Backed Bonds
- BSL GY : Basler Nine Month Ebitda EU23.1M, Narrows 2019 Forecast
- BCHN SW : Burckhardt Full Year Revenue Forecast 4.2% Below Estimates
- DBK GY : Deutsche Bank Bond-Rig Settlement Gets Thumbs Up From Judge
- DIE BB : Belgian Oct. Car Registrations Jump 16%; D’Ieteren Has 22.15%
- DSM NA : DSM 3Q Ebitda Meets Est., FY Guidance Confirmed
- DUFN SW : Dufry Confirms Growth Target as Margin Improves (1)
- EUCAR FP : Avis Price Target Cut as Morgan Stanley Sees 2020 Headwinds
- EQT SS : EQT Says Fundraising of Fund IX Will Start Next Year
- EVK GY : Evonik Cuts 2019 Sales Outlook
- GSC1 GY : Gesco Cuts Abbreviated Year Sales Forecast on Industry Downturn
- HOFI SS : Hoist Has Commitment From Carval for Italian Securitisation, Hoist Finance 3Q Operating Income Misses Lowest Est.
- BOSS GY : Hugo Boss sees ‘significant’ increase in 4Q earnings, op. profit
- IMCD NA : IMCD to Buy 57% Stake in Whawon Pharm; No Terms
- LEHN SW : Lem Sees Full Year Sales About CHF310 Mln
- LHA GY : Austrian Airlines Plans to Cut 500 Jobs to Cut Costs: Reuters
- PIHLIS FH : Mehilainen Offers EU16/Shr in Cash for Pihlajalinna Shares
- NAS NO : Norwegian Air Sells Six Boeing 737-800 Aircraft to Pembroke
- NOVN SW : Novartis: Sandoz Gets U.S. FDA Approval for Biosimilar Ziextenzo
- NYR BB : Nyrstar: Trafigura’s Nyrstar Grp Stake Offer to Expire
- INTRUM SS : Intrum Simplifies Structure to Further Improve Efficiency
- OERL SW : Oerlikon 3Q Sales Miss; Confirms FY Views; Launches Buyback
- PNDORA DC : Pandora Cuts Full Year Organic Revenue, Ebit Forecast
- PNDXB SS : Pandox Says It’s Currently Evaluating Potential Acquisitions
- UG FP : PSA to Sell China Plant to Baoneng: Les Echos
- PFV GY : Pfeiffer Vacuum FY Sales View Midpoint Meets Est.
- PRS NO : Prosafe Third Quarter Adjusted Ebitda Beats Highest Estimate
- CFR SW : De Beers Cuts Diamond Prices by About 5% as Crisis Deepens
- RUI FP : Rubis Agrees to Buy Kenya Fuel Marketer Gulf Energy Holdings
- SAF FP : Safran Board Names Olivier Andries as Future CEO
- SGO FP : Saint-Gobain Sells Glassolutions in The Netherlands to Aequita
- SANN SW : Santhera Pharmaceuticals Names Dario Eklund as New CEO
- SAP GY : SAP’s EU1.5b Capital Return Plan Approved by Supervisory Board
- TTR1 GY : Technotrans Remains Confident About 2020, Sees GWK Improvement
- SGRE SM : Siemens Gamesa FY Under. Ebit Meets Est.; Gives New Guidance (1)
- TEF SM : Telefonica Third Quarter Revenue Meets Estimates
- TEP FP : Teleperformance Raises FY Growth Outlook As 3Q Rev. Rises 25.6%, Teleperformance 3Q Strong, Guidance Conservative: Morgan Stanley
- VCT FP : Vicat 9M Sales Up 5.7% To EU2.06B; Sees FY Improvement in Ebitda
- RIN FP : Vilmorin First Quarter Sales Rise 12% to EU231.9 Mln, Sees Lower EU Rapeseed Area, Brazil Safrinha Corn Area
- DG FP : Novabase Agrees to Sell GTE Business to Vinci Energies for EU33m
- VNA GY : Vonovia Average Rent Growth Slower as Guidance More Optimistic
- VOW3 GY : VW’s Winterkorn Implicated by Former Engine-Development Head
- POE GY : vPE WertpapierhandelsBank Recalls Kreuser From Management Board
- YPSN SW : Ypsomed Reduces Sales Forecast for Year 2019/20 to CHF400m (1)
After Hours Summary: EVER +26%, CHGG +12%, EVBG +11%, ADBE +4% are higher, while MYGN -36%, SNCR / SHAK -16%, UBER / MOS / ENDP -5% are lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: EVER +25.6%, CHGG +12%, EVBG +11.4%, RNG +10.2%, FICO +5%, JKHY +4.8%, ADBE +4.4%, CDE +2.1%, THC +2%, CC +1.6%, REAL +1.2%
Companies trading higher in after hours in reaction to news: SHEN +8.3% (to join S&P SmallCap 600 effective prior to the open on November 8), PAGP +7.2% (ahead of earnings tomorrow), WWE +5.8% (World Wrestling and Saudi General Entertainment Authority expand live event partnership), MFGP +1.6% (upgraded to Neutral from Sell at Goldman)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: MYGN -35.9%, SNCR -15.9%, SHAK -15.6%, TNDM -12.4%, MDR -9.8%, VECO -9%, DIOD -8.7%, AAN -7.9%, GRPN -7.3%, TSE -6.5% (light volume), AOSL -5.7% (light volume), UBER -5.1%, MAXR -5.1%, MOS -4.9%, ENDP -4.9% (also announces transition of CEO Paul Campanelli to Chairman), BKD -4.5% (light volume), NCMI -4.5%, NTR -3.9%, TCMD -2.7%, MAR -2.2%, PRU -1.8%
Companies trading lower in after hours in reaction to news: YETI -4.9% (files for share 10 mln share common stock offering by selling shareholders), MRUS -3.6% (announces public offering of $60.0 mln of its common shares), RCII -2.7% (following AAN results), HCP -1.8% (commences public offering of 15.0 mln shares of common stock in connection with a forward sale agreement), HAS -1.8% (commences offering of $875.0 mln shares of its common stock), LYFT -1.2% (following UBER results)
>>> Up
* Carlsberg Raised to Add at AlphaValue
* Huber + Suhner Raised to Buy at Bank Vontobel
* Metrovacesa Raised to Neutral at Goldman; PT 8.48 euros
* Micro Focus Raised to Neutral at Goldman; PT 1,000 pence
* Ryanair Raised to Hold at HSBC; PT 12.25 euros
* Safran Raised to Buy at Nord/LB; PT 160 euros
* Wood Raised to Neutral at Goldman; PT 445 pence
>>> Down
* Aareal Bank Cut to Hold at HSBC; PT 32 euros
* B&S Group Cut to Equal-Weight at Morgan Stanley; PT 12.90 euros
* Daimler Cut to Sell at SocGen
* Dixons Carphone Cut to Sector Perform at RBC; PT 135 pence
* ElringKlinger Cut to Hold at Quirin Privatbank AG
* Humana Cut to Hold at ABG; PT 62 kronor
* Hunting Cut to Sell at Goldman; PT 385 pence
* HSBC Cut to Sell at Berenberg; PT 490 pence
* Kion Cut to Hold at Berenberg
* Kloeckner Cut to Hold at Bankhaus Lampe
* Lehto Group Cut to Sell at SEB Equities; PT 1.40 euros
* Next Cut to Sector Perform at RBC; PT 6,800 pence
* Ryanair Cut to Hold at Deutsche Bank; PT 13.50 euros
* Smurfit Kappa Cut to Hold at Vertical Research; PT 32 euros
>>> Initiation
* Adevinta Reinstated Buy at Goldman; PT 117.55 kroner
* Argenx ADRs Rated New Neutral at Credit Suisse; PT $137
* Babcock Rated New Underweight at Barclays; PT 470 pence
* Belships Rated New Buy at SpareBank; PT 8.30 kroner
* Sumo Rated New Buy at Investec; PT 200 pence
>>> Call
* B&S Group Visibility Is Limited, Downgraded at Morgan Stanley
* H&M Among RBC’s Top Retail Picks, Next, Dixons Carphone Cut
* HSBC’s Strategy Right But ‘Poorly Timed,’ Berenberg Cuts to Sell
After Hours Summary: EVER +26%, CHGG +12%, EVBG +11%, ADBE +4% are higher, while MYGN -36%, SNCR / SHAK -16%, UBER / MOS / ENDP -5% are lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: EVER +25.6%, CHGG +12%, EVBG +11.4%, RNG +10.2%, FICO +5%, JKHY +4.8%, ADBE +4.4%, CDE +2.1%, THC +2%, CC +1.6%, REAL +1.2%
Companies trading higher in after hours in reaction to news: SHEN +8.3% (to join S&P SmallCap 600 effective prior to the open on November 8), PAGP +7.2% (ahead of earnings tomorrow), WWE +5.8% (World Wrestling and Saudi General Entertainment Authority expand live event partnership), MFGP +1.6% (upgraded to Neutral from Sell at Goldman)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: MYGN -35.9%, SNCR -15.9%, SHAK -15.6%, TNDM -12.4%, MDR -9.8%, VECO -9%, DIOD -8.7%, AAN -7.9%, GRPN -7.3%, TSE -6.5% (light volume), AOSL -5.7% (light volume), UBER -5.1%, MAXR -5.1%, MOS -4.9%, ENDP -4.9% (also announces transition of CEO Paul Campanelli to Chairman), BKD -4.5% (light volume), NCMI -4.5%, NTR -3.9%, TCMD -2.7%, MAR -2.2%, PRU -1.8%
Companies trading lower in after hours in reaction to news: YETI -4.9% (files for share 10 mln share common stock offering by selling shareholders), MRUS -3.6% (announces public offering of $60.0 mln of its common shares), RCII -2.7% (following AAN results), HCP -1.8% (commences public offering of 15.0 mln shares of common stock in connection with a forward sale agreement), HAS -1.8% (commences offering of $875.0 mln shares of its common stock), LYFT -1.2% (following UBER results)
Closing Stock Market SummaryThe S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) continued to set new highs on Monday, with the Dow Jones Industrial Average (+0.4%) finally breaking above its prior high from July following some positive-sounding trade comments. The Russell 2000 (+0.5%) kept pace with the large-cap indices.
Commerce Secretary Wilbur Ross said that good progress has been made in "Phase One" negotiations, companies may soon be granted licenses to work with Huawei, and auto tariffs on imported products may not be imposed. With the market already in record territory amid trade optimism and favorable monetary policy, there was presumably some chasing activity among buyers fearful of missing out on further gains.
The market took Mr. Ross' comments at face value, and shares of economically-sensitive companies continued to benefit from a positive growth outlook. The S&P 500 energy sector (+3.2%) surged past the other sectors, rising more than 3% as the value-oriented space also benefited from higher oil prices ($56.69/bbl, +0.48, +0.9%). The sector saw volume that was below average.
The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).
On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.
Notable story stocks from Monday included McDonald's (MCD 188.66, -5.28, -2.7%) and Under Armour (UAA 17.13, -4.01, -19.0%). McDonald's fired CEO Steve Easterbrook after he used "poor judgement" in having a consensual relationship with an employee. Under Armour reported lackluster sales activity and confirmed its accounting practices are being probed by the SEC and Department of Justice.
U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the save-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.3% to 97.55.
Monday's economic data was limited to the Factory Orders report for September, which declined 0.6% (consensus -0.5%) following an unrevised 0.1% decline in August.
Looking ahead, investors will receive the ISM Non-Manufacturing Index for October, the Trade Balance report for September, and the JOLTS - Job Openings survey for September on Tuesday.
- Nasdaq Composite +27.1% YTD
- S&P 500 +22.8% YTD
- Russell 2000 +18.5% YTD
- Dow Jones Industrial Average +17.7% YTD
Hertz Global beats by $0.10, reports revs in-line (14.13 +0.39)
- Reports Q3 (Sep) earnings of $1.60 per share, excluding non-recurring items, $0.10 better than the S&P Capital IQ Consensus of $1.50; revenues rose 2.8% year/year to $2.84 bln vs the $2.84 bln S&P Capital IQ Consensus. Record third quarter U.S. RAC revenues of $2.0 billion, up 6%.