>>> ERICB - 5G subscriptions to reach 1B in 2023 - 5G will cover more than 20 pe

ERICB - 5G subscriptions to reach 1B in 2023 
- 5G will cover more than 20 percent of the global population six years from now, according to the latest Ericsson Mobility Report
- Global mobile data traffic to surpass 100 Exabytes per month in 2023
- By the end of this year, LTE will be the dominant mobile access technology. It is estimated to reach 5.5 billion subscriptions and cover more than 85 percent of the world's population by the end of 2023.

>>> US After Hours Summary: THO +10% higher and UNH -1.2% lower followi


After Hours Summary: THO +10% higher and UNH -1.2% lower following earnings/guidance, APEN +29% on Overstitch 510k clearance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: THO +10.1%, TECD +4.6%, AQ +1.8% (light volume), MTSC +1.6%

Companies trading higher in after hours in reaction to news: APEN +29% (received FDA 510k clearance for Overstitch), UTSI +10% (after 30% move higher on Monday), BY +9.8% (ticking higher; to acquire First Evanston Bancorp in cash/stock transaction valued at ~$169 mln), SRRA +9.4% (Perceptive Advisors affirms 7% passive stake), AEZS +4.4% (Marketing Authorization Application for Macrilen in the evaluation of adult growth hormone deficiency was accepted by the European Medicines Agency for regulatory review), WGO +4.1% (THO sympathy)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: UNH -1.2%

Companies trading lower in after hours in reaction to news: DPW -22.5% (after 160%+ move higher), ASC -9.7% (Ardmore Shipping announces GA Holdings intends to offer for sale in public offering 5,579,978 shares of common stock), CPRX -6.9% (commences public offering of 11 mln shares of its common stock), DCIX -5.6% (pulling back after closing near highs - up 33% on the day), ISIG -3.4% (thinly traded - files for ~2.3 mln share common stock offering by holders), VNTR -1.3% (Venator Materials files for 18 mln ordinary share offering by selling shareholder Huntsman Corporation), IQV -1.2% (launches 10 mln share secondary offering by certain stockholders, including affiliates of TPG Global, CPP Investment Board Private Holdings, funds associated with Bain Capital and Leonard Green), SGH -1.2% (filed for 3,261,


>>> Asian Update

Asia Market Update: Markets trade generally lower after mixed US session; Politicians in the US continue to evaluate tax reform bill; Data falsification issue spreads to Japan’s Toray


General Trend/Theme: Continued weakness in chip-related and China/Hong Kong equities amid dearth of economic data

China/Hong Kong
-Markets opened lower following declines on Monday: Shanghai Composite opened -0.3%, Hang Seng opened -0.3%
-Hang Seng Materials Index -1.1%, Financials Index -0.8%, Property Index -0.7%, Information Technology Index -0.7% (Tencent -1%)
- (CN) China said to ban certain funds from selling stocks on a large scale – Chinese Press
- (CN) China govt reportedly to make punishment harsher for banks' law violations - China press
- (CN) China should be ‘vigilant’ of risk from loan company closures – Chinese Press
- (CN) China said to target adoption of e-commerce law in 2018 – Chinese Press
-(HK)) China PBoC renews CNY400B currency swaps agreement for another 3 years with Hong Kong Monetary Authority (HKMA)
- (CN) PBoC sets yuan reference rate at 6.5944 v 6.5874 prior
-(HK) Hong Kong Oct Trade Balance (HKD): -44.B v -41.9Be; Exports Y/Y: 6.7% v 10.1%e
- (CN) PBoC OMO: Injects CNY250B in 7, 14-day, 63-day reverse repos v CNY140B injected in 7,14 and 63-day reverse repos prior; Net: nil v nil prior
- (CN) China Development Bank (CDB) sells 1, 3, 5 and 7-year bonds (**Note: On Nov 24th, there was speculation that China Development Bank might not sell the usual 10-year bonds in its weekly bond sale)

Australia:
-ASX200 opened -0.1%; closed flat
ASX 200 Financials Index -0.3%; REIT Index +0.9%, Utilities Index +0.8%
-Telstra -2% (block trade)
- (AU) Australia sells A$150M in Nov 2027 Indexed Bonds, avg yield 0.6407%, bid to cover 4.83x

Japan
-Nikkei 225 opened -0.1%; Closed flat
-TOPIX Textiles & Apparels Index -1.4%
-Chip-related stocks remain weaker following Monday’s declines: Tokyo Electron -2.5% Toshiba -2%, SUMCO -1.5%
-Index component Toray (chemicals/Plastics & Rubber) -3.4%: Data falsification issue spreads to the company
-Toyota +0.3%: Names new CFO
- Softbank said to offer to buy Uber shares at a $48B valuation, 30% below Uber’s current valuation – US financial press (in line with valuation reported in early Aug)
- BoJ Gov Kuroda: Reiterates global economy continues to recover; Asia's economy will be at core of global growth; Asia is more resilient against economic shocks.
- JP) BOJ’s Suzuki: Reiterates view that must maintain powerful monetary easing; yield Control changes is possible when CPI is near 2% level - financial press
- (JP) BOJ's Kataoka: should strive to reach the 2% inflation target by FY18
- Japan PM Abe: Reiterates don’t think necessary to make changes on accord with BoJ
- Japan govt reportedly considering tax cuts for companies that have cybersecurity plans - Japanese press
- Japan MoF sells ¥500B v ¥500B in 0.90% 40-yr bonds; bid to cover 3.00x v 3.24x prior

South Korea
-Kospi opened +0.2% (declined 1.4% prior session)
-Samsung Elections +0.3% (declined over 5% prior session)
- South Korea sells 30-year bonds at 2.52%
- South Korea Dec Business Manufacturing Survey: 82 v 84 prior; Non-Manufacturing Survey: 80 v 79 prior
- Channel News Asia reporter: Japanese govt is detecting signals that North Korea may be prepping ballistic missile launch (report is from US morning on Monday)

Other Asia
Malaysia
-Ringgit (MYR) -0.2%
- Malaysia Central Bank (Bank Negara) Deputy Gov Singh said to resign, effective immediately – Malaysian Press; The official is said to have chosen to retire early, says the report

Europe:
- (IE) Ireland opposition Justice spokesperson: unless deputy PM resigns, will force Ireland into new election
- (IE) Ireland Foreign Minister: Relationship with UK is ‘tense’, last thing we need right now is an election in the middle of Brexit talks
- (DE) Germany Econ Min Zypries: we're prepared to take countermeasures if US imposes new tariffs on steel
-Unilever: Board to delay decision related to choice of headquarters – financial press
-M&A: IAG.UK: Confirms acquisition of Monarch Airlines' Gatwick landing slots
-Constantin Medien [EV4.DE]: Highlight Communications makes takeover offer to the shareholders of Constantin Medien AG to acquire no-par value ordinary bearer shares

North America
-US equity markets end mixed: Dow Jones +0.1%, S&P500 flat, Nasdaq -0.2%, Russell 2000 -0.4%; Energy Sector -1%, Materials -0.6%
-The US National Retail Federation (NRF) expected to release its Black Friday and Cyber Monday sales data on Tuesday, Nov 28th.
- (US) Adobe: Confirms data shows Cyber Monday is largest online sales day in history with $6.59B in sales, +16.8% y/y as of 10:00 pm ET
Fed Speak: (US) Fed's Dudley (FOMC voter): Not particularly concerned that inflation is 'a little bit' below a Fed target; Reiterates we are gradually raising US interest rates; FOMC is 'very united' on appropriate policy path; Surprised 'how relaxed' markets are about government borrowing outlook
-(US) Fed Chair-designate Powell: Expects interest rates will rise somewhat further from here; pledges to respond decisively to any new economic threats - prepared congressional testimony
-(US) Fed’s Kashkari (dove, voter): Reiterates sees no reason to 'tap the breaks' on the economy, no reason to raise rates when inflation continues to run low
-(US) Fed's Kaplan (moderate, voter): backs rate hike in near future; remains mindful of Fed getting behind the curve
Tax Reform: (US) Senator Corker (R-TN): Could vote no on tax bill in committee if ‘trigger’ not done; Wants the tax bill to have 'trigger' to raise revenues if economic growth expectations are not met; Says 'no vote' is not a threat, Republicans are working to resolve the issue. (** INSIGHT: The Senate Budget Committee has 12 Republicans and 11 Democrats. One vote switching could halt the bill's progress to the floor. Sen. Corker (R-TN) is also on the Budget Committee)
- (US) Sen Johnson (R-WI): will vote against tax bill in Budget Committee on Tues unless my issues are resolved
-(US) Sen Rand Paul (R-KY): will vote in favor of Senate tax bill
-(US) Aides to Sen Daines (R-MT): Senator is currently a no on tax bill; however is optimistic about changes
- (US) Sen Cornyn (R-TX): Senate will vote Weds on motion to proceed to tax bill; confirms that senators are considering a deficit trigger and changes to pass-throughs
- US) Sen Lankford (R-OK): working on different options for deficit 'backstop' if growth projections in tax bill do not pan out as expected
-(US) White House: President Trump to meet with Congressional leadership on Tuesday
-Fed’s Dudley: Favors tax simplification and base-broadening; Opposes US tax stimulus at current time because the economy does not really need it; Tax stimulus may be worth the price to get reform.
-Fed’s Kashkari: If Congress passes a tax bill, Fed will update economic models, which may change path of interest rates
-Goldman: Sees outcome of OPEC meeting more uncertain than usual, sees risks to oil as skewed to the downside this week
- Saudi Arabia Energy Minster Falih: When asked how long oil output cuts will be extended, he replied that we will see when we get to Vienna
-M&A: Roark said to agree to raise bid for Buffalo Wild Wings to ~$157/share or $2.4B in cash – US financial press

***Levels as of 01:00ET***
-Hang Seng -0.8%; Shanghai Composite -0.3%; Kospi +0.3%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 flat
- EUR 1.1892-1.1909 ; JPY 110.93-111.32 ; AUD 0.7601-0.7614 ;NZD 0.6910-0.6938
- Dec Gold flat at $1,293/oz; Jan Crude Oil -0.6% at $57.77/brl; Dec Copper -0.3% at $3.124/lb

>>> US CLose Dow +0.10% S&P -0.04% NAsdaq -0.15% Russell -0.39%

Closing Market Summary: Unenthusiastic Start Following Thanksgiving Weekend

Equities opened the week with a flat, unenthusiastic performance on Monday following the long Thanksgiving weekend.

The S&P 500 Index (unch) and the Nasdaq Composite (-0.2%) finished with modest losses, while the Dow Jones Industrial Average (+0.1%) eked out a slim victory. All three major stock indices kept within a pretty narrow range throughout the session amid lighter-than-usual trading volume.

More than half of the S&P 500's 11 sectors settled Monday's session in positive territory, but gains were limited. The lightly-weighted telecom services and utilities groups were the top performers, adding 0.4% and 0.5%, respectively, followed by the more influential industrial group, which finished higher by just 0.2%.

Conversely, the energy sector was the weakest group, moving lower by 1.0%, as the price of crude oil retreated from its best level in over two years; West Texas Intermediate crude futures finished the session lower by 1.4% at a price of $58.13 per barrel. Monday's loss extends the energy sector's year-to-date decline to 10.8%.

On a related note, OPEC and non-OPEC nations, including Russia, will meet in Vienna on Thursday to discuss extending their supply cut agreement beyond the current end date of March 2018. Most analysts believe that the oil producers will reach an extension agreement, but the length of said extension remains unclear.

Other notable events on this week's calendar include the Fed Chair confirmation hearing for Jerome Powell (Tuesday), current Fed Chair Janet Yellen's semiannual testimony before the Joint Economic Committee (Wednesday), and a vote on the Senate's tax reform bill (expected Thursday).

Corporate news was pretty light on Monday, but it's worth noting that shares of Time (TIME 18.50, +1.60) jumped 9.5% after the magazine company--which, in addition to Time, owns brands like Sports Illustrated, Fortune, and People--agreed to be acquired by Meredith (MDP 67.55, +6.55) for $18.50 per share.

In addition, retailers advanced on 'Cyber Monday' amid continued signs of an upbeat start to the holiday shopping season. L Brands (LB 50.34, +1.98) showed particular strength, adding 4.1%, as did online giant Amazon (AMZN 1195.83, +9.83), which climbed 0.8%--settling at a new record high. 

U.S. Treasuries moved mostly higher in yet another curve-flattening trade that cut the 2yr-10yr spread to 58 basis points from 60 bps on Friday. The yield on the benchmark 10-yr Treasury note slipped two basis points to 2.32%, while the 2-yr yield finished unchanged at 1.74%. Yields move inversely to prices.

Elsewhere, the Euro Stoxx 50 dropped 0.5% despite news over the weekend that German Chancellor Angela Merkel's Christian Democratic Union party has agreed to pursue a grand coalition with the Social Democrats in an attempt to break a political deadlock and avoid new elections.

Stocks in the Asia-Pacific region also finished Monday broadly lower, with China's Shanghai Composite (-0.9%) pacing the retreat.

Reviewing Monday's economic data, which was limited to October New Home Sales:

  • New Home Sales hit an annualized rate of 685,000 in October, while the consensus expected a reading of 629,000. The September figure was revised to 645,000 from 667,000.
    • The key takeaway from the report is that there was sales growth in all regions, led by a huge pickup in sales in the Northeast and the Midwest, underscoring the solid demand for new homes.

On Tuesday, investors will receive October Advance International Trade In Goods (consensus -$65.4 billion) at 8:30 ET, October Advance Wholesale Inventories also at 8:30 ET, the September FHFA Housing Price Index (consensus +0.6%) at 9:00 ET, the September S&P Case-Shiller Home Price Index (consensus +6.0%) also at 9:00 ET, and November Consumer Confidence (consensus 124.0) at 10:00 ET.

  • Nasdaq Composite +27.8% YTD
  • Dow Jones Industrial Average +19.3% YTD
  • S&P 500 +16.2% YTD
  • Russell 2000 +11.5% YTD