>>> What to look at today - 4th of October 2017

Dow +0.37% S&P +0.22% Nasdaq +0.23% Russell +0.17%
US Market closed higher for the sixth session in a row. Chipmakers as a whole performed roughly in line with the broader market, AMD 13.42, +5.6% following vague M&A speculation. Lennar +4.8% after numbers. VIX +1.3%. US After Hours,  CTMX +35% on Amgen collaboration news, F slightly higher on strategic update news/guidance... ODP -10% on $1 bln acquisition and guidance, GBT+2.7% on Point72 5% stake, ROKU -1.2% options will start trading on CBOEon Friday. Asian Market have traded mixed with markets in China and South Korea remaining closed for holidays. Markets in Taiwan are also closed on today’s session in observance of a national holiday. Japan’s Topix has underperformed amid weakness in the banking sector. Equity markets in the Philippines and Indonesia trade at record highs. In corporate news, Amazon Japan is said to be planning to invest in the area of fashion. On the inflation front, beer maker Asahi Group is reported to be planning to raise prices by ~10% in March, which would be the first increase in 10-years. Bank of Japan (BoJ) Deputy Gov Nakaso did not rule out a deficit related to the central bank’s exit strategy from easing measures, but suggested that officials are prepared for this. World Bank raised China’s 2017 and 2018 GDP growth forecasts, putting them in line with those of the IMF.

Nikkei +0.01% Hang Seng +0.65% CSI Shanghai Shenzen Closed

Eur$ 1.1771 CNH 6.6427 CNY 6.6528 JPY 112.56 GBP 1.3271 CHF 57.8298 RUB$ 0.9722 WTI$ 50.11 -0.61%

S&P -0.03% EuroStoxx +0.14% FTSE -0.12% Dax +0.49% SMI -0.02%

Macro :
- U.K. Is Said to Fear No-Deal Brexit as Davis Makes Backup Plans
- ECB Overbuying Leaves French Bonds Vulnerable to Tapering
- Brexit May Empower U.K. Telecom Regulator, AlixPartners Says

Keep an eye on :
- 888 LN : 888 Holdings Holder Sinitus to Sell Entire Stake Via Bookbuild
- ABI BB : AB InBev Considers Expanding Vietnam Production: Vietnam News
- ABI BB : Asahi (2502 JP)+2.8% on news of price raise of 10%
- AF FP : Air France-KLM: China Eastern, Delta Now Each Hold 10% of Co.
- BABA US : Credit Suisse Sees 23% Upside for Alibaba, 20% for Tencent
- MT NA : Affirms FY17 Capex $2.9B v $2.4B y/y, net interest expense $0.8B v $1.1B - Sept investor slides (update) - Guides FY 17 pension & others $0.9B
- ALO FP : France’s Le Maire Says Will Be No Alstom Job Cuts, Site Closures
- BBVA SM : BBVA, Abanca Bid for Deutsche Bank Spanish Assets: Voz Populi
- BO DC : B&O First Quarter Revenue Beats Estimates
- DBK GY : Deutsche Bank May Suffer Most in MiFID Trading Hit, UBS Says
- EDP PL : EDP Says China Three Gorges Raises Stake to ~23.25%
- ERICB SS : Ericsson, Global Dominion in Talks to Form Spain JV: Expansion
- GLJ GY : Grenke Nine Month New Business Volume EU1.73 Bln
- GBT US : Global Blood Therapeutics Holder Point72 Reports 5.2% Stake
- I US : Intelsat’s C-Band Spectrum Plan for 5G May Be ’Gold Mine’: RBC
- JAPAN Display (6740 JP) : +25% Japan Display Jumps on OLED Report, Unwinding of Short Positions
- KARO SS : Karo Pharma Takeover Offer for Weifa Successful
- KER FP : French PM Says Open to Raising Luxury Good Taxes: Liberation
- MC FP : French PM Says Open to Raising Luxury Good Taxes: Liberation
- ODP US : Office Depot to Buy Compucom for Total Consideration About $1B --> -10% in after Hours
- PC IM : Pirelli: Equity Value Target for Relative Incentive Not Reached
- RUI FP : Rubis to Buy EG Group’s Gas-Station Network in Corsica
- SGSN VX : SGS Buys Two Australian Companies w/ Annual Revenues of >AUD4.6m
- TSCO LN : *TESCO 1H ADJUSTED OPERATING PROFIT GBP759M, EST. GBP703M
- TSLA US : Tesla Climbs as Nomura Sees an ‘Unprecedented Run-Up’ in Revenue
- TKA GY : Thyssenkrupp to Maintain Labor Representation on Spvy Brd: Bild
- UBER IPO : Uber Approves SoftBank Investment, Governance Reforms

>>> Europe : Brokers Upgrades & Downgrades - 4th of October 2017

>>> Up
* Bureau Veritas Raised to Buy at Bryan Garnier, PT EU23.65
* Gerresheimer Raised to Buy at Bankhaus Lampe
* HAL Raised to Reduce at AlphaValue
* J D Wetherspoon Raised to Hold at Berenberg
* Subsea 7 Raised to Outperform at Credit Suisse, PT NOK145
* William Hill Raised to Hold at Berenberg

>>> Down
* Betsson Cut to Sell at Berenberg
* Deutsche Post Cut to Neutral at MainFirst, PT EU37.50
* Dormakaba Cut to Neutral at MainFirst, PT CHF985
* Falck Renewables Cut to Hold at Kepler Cheuvreux, PT EU1.60
* Greene King Cut to Sell at Berenberg
* Kosmos Energy Cut to Hold at Jefferies
* Marston's Cut to Hold at Berenberg
* Moncler Cut to Neutral at MedioBanca, PT EU26.20
* PGS Cut to Neutral at Credit Suisse, PT NOK20
* PGS Cut to Sell at Fearnley, PT NOK13.50
* Telefonica Deutschland Cut to Underperform at RBC, PT EU4.60
* Tullow Cut to Underperform at Jefferies, PT 155p

>>> Initiation
* Cancom New Buy at Berenberg, PT EU80
* Coloplast New Outperform at Bernstein, PT DKK600

>>> Call

>>> US After Hours Summary: CTMX +35% on Amgen collaboration news, F s


After Hours Summary: CTMX +35% on Amgen collaboration news, F slightly higher on strategic update news/guidance... ODP -10% on $1 bln acquisition and guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: 

Companies trading higher in after hours in reaction to news: CTMX +35% (CytomX Therapeutics and Amgen announce strategic collaboration in immuno-oncology; Amgen to make upfront payment of $40 mln and purchase $20 mln of common stock), MTBC +13.9% and CLSN +9% (continued strength), FCEL +5.8% (after being initiated with Outperform and $4 tgt at Oppenheimer), I +3.4% (after seeing late move higher after analyst said jointly filed a submission with the FCC proposing the sharing of C-band spectrum for use in 5G), GBT +2.7% (Point72 Asset Management increases passive stake ), MGI +1.8% (following afternoon weakness on reports that Alibaba's (BABA) Ant Financial deal to acquire MGI might get criticism from Senator Schumer), BSFT +1.2% (ticking higher on PE speculation), TWTR +1% (higher following Disney's Iger comments -- said previously considered Twitter acquisition), F +0.4% (details strategic update to refocus company; reaffirms 2017 full-year financial guidance and 2018 outlook will be provided in January)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: IDT -4.2% (says continues to work toward the spin-off our non-core assets)

Companies trading lower in after hours in reaction to news: ODP -10.2% (to acquire CompuCom Systems for approx $1 bln; reports prelim Q3 results and lowers full-year outlook ), NLNK -7.1% (to offer up to $50,000,000 of shares of its common stock in an underwritten public offering) RIGL -7.1% (proposes public offering of $40 mln of common stock), WGO -1.3% (attributed to downgrade at Stifel), ROKU -1.2% (continued weakness; also CBOE Holdings plans to list options on Roku on Friday October 6), VZ -0.3% (Verizon's Yahoo provides notice to additional users affected by previously disclosed 2013 data theft)

>>> Aidan Update

Asia Mid-Session Update: Asian trading subdued as Chinese holiday continues; US dollar weaker ahead of ADP data and amid speculation related to Fed Chair position

***Asia Summary***
-Asian equity markets have traded mixed with markets in China and South Korea remaining closed for holidays. Markets in Taiwan are also closed on today’s session in observance of a national holiday. Japan’s Topix has underperformed amid weakness in the banking sector. Equity markets in the Philippines and Indonesia trade at record highs.
-In corporate news, Amazon Japan is said to be planning to invest in the area of fashion. On the inflation front, beer maker Asahi Group is reported to be planning to raise prices by ~10% in March, which would be the first increase in 10-years. Shares of Japan Display have gained over 25%.
-Following the US equity close, Fitch downgraded the credit ratings of banks including Fifth Third and Wells Fargo.
-The US dollar has traded with a generally weaker tone ahead of the later today release of the ADP monthly payrolls report. The declines also have come amid lower Treasury yields and speculation related to the Fed chair position.
-Bank of Japan (BoJ) Deputy Gov Nakaso did not rule out a deficit related to the central bank’s exit strategy from easing measures, but suggested that officials are prepared for this.
-The World Bank raised China’s 2017 and 2018 GDP growth forecasts, putting them in line with those of the IMF.

***Key economic data***
-(AU) Australia Sept AiG Perf of Services Index: 52.1 v 53.0 prior
-(JP) Japan Sept Nikkei PMI Services: 51.0 v 51.6 prior
-(NZ) New Zealand Sept ANZ Commodity Price: +0.8% v -0.8% prior
-(UK) UK Sept BRC Shop Price Index Y/Y: -0.1% v -0.3% prior (smallest decline since May 2013)

***Speakers and Press***
China
-(CN) World Bank raises forecast for 2017 China GDP growth to 6.7% (6.5% prior); raises 2018 GDP growth forecast to 6.4% (6.3% prior)

Other
-(JP) BoJ Dep Gov Nakaso: Does not rule out BoJ deficit in exit strategy - Japan Press; Revenue fluctuations in the short-term from exit strategy will not hurt policy execution as BoJ had been saving some of its revenues for future losses.
-(US) President Trump aides said to deliver shortlist for Fed Chair; According to a separate report, Treasury Sec Mnuchin is said to have given support to Jerome Powell for the position.
-(US) DoubleLine's Gundlach: 2018 will be ' much tougher' market environment; expects liquidity to marginally reverse in 2018 and hurt assets; Says 'no chance' President Trump wants Yellen to continue at Fed; "No way' Gary Cohn will be Fed Chairman.
-(US) White House said to be readying request for $29B in disaster aid, flood insurance claims – AP
-(US) Rep Jim Jordan (R-Ohio): Confirms expects House to pass budget on Thursday
-(US) US President Trump: Puerto Rico's debt will have to be 'wiped out' - US media interview
-(KR) North Korea negotiator said to meet former US officials later in Oct - US financial press
-(MY) Malaysia expected to amend its tax act to include digital economy - Local Press
-Uber: Board said to approve $1.0-1.25B investment from Softbank (implied valuation $69B) and corporate governance reforms; said to set 2019 deadline for IPO - US financial press

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei +0.2%, Hang Seng +0.8%, Shanghai Composite closed, ASX200 -0.7%, Kospi closed
- Equity Futures: S&P500 flat; Nasdaq flat, Dax +0.2% , FTSE100 -0.1%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1736-1.1780; JPY 112.51-112.91; AUD 0.7830-0.7875; NZD 0.7185-0.7206
- Aug Gold +0.3% at 1,278/oz; Aug Crude Oil -0.8% at $50.01/brl; Sept Copper +0.1% at $2.963/lb
- GLD SPDR Gold Trust ETF daily holdings -0.6% to 854.3 metric tons
- (AU) Australia sells A$700M in April 21, 2027 bonds, avg yield 2.7655%, bid to cover 4.46x

***Equities notable movers***
Japan
-Japan Display,6740.JP Japan government backed OLED firm said to consider mass production; +25%
-Asahi Group, 2502.JP Expected price increase; +3.3%

***US markets on close: Dow +0.4%, S&P500 +0.2%, Nasdaq +0.2%, Russell +0.2% ***
- Best Sector in S&P500: Industrials +0.4%
- Worst Sector in S&P500: Utilities -0.3%
- At the close: VIX 9.51 (+0.06pts); Treasuries: 2-yr 1.475% (-1bp), 10-yr 2.318% (-1bp), 30-yr 2.868% (flat)

***US Market Summary***
- The benchmark US stock indices all set fresh records today, with the S&P 500 notching its sixth consecutive session of gains in a row. The VIX stayed pinned around 9.5 after Warren Buffett acknowledged Berkshire has avoided making some equity sales in anticipation of potential changes to the tax code next year. Airlines climbed after Delta adjusted its Q3 outlook and reported Sept metrics. Sept auto sales topped expectations, helped by the effect of the hurricanes. Crude prices drifted lower, adding onto yesterday's losses. All sectors were in the green for the day except for real estate and utilities.

***US Afterhours Movers***
- CTMX Announces strategic collaboration with Amgen in Immuno-Oncology; Amgen to make $40M upfront payment and acquire $20M in CytomX stock; +37% afterhours -
ODP Announced acquisition and cut FY17 forecast; -8.5%
- NLNK Files to sell $50M public offering of common stock (15.6% of market cap); -5.7% afterhours
- RIGL Files to sell $40M of common stock via Jefferies and BMO (10% of market cap); -8.7% afterhours

>>> US Close Dow +0.37% S&P +0.22% Nasdaq +0.23% Russell +0.17%

Wall Street Settles in Record Territory Once Again

Stocks moved higher for the sixth session in a row on Tuesday, but trading was rather dull as the major indices largely trended sideways from start to finish. The Dow (+0.4), the S&P 500 (+0.2%), the Nasdaq (+0.2%), and the Russell 2000 (+0.2%) all finished at fresh record highs.

Automakers released their U.S. sales for the month of September on Tuesday. The numbers showed solid year-over-year gains, thanks in part to hurricane-related vehicle replacement:

  • General Motors (GM 43.45, +1.30) sold 279,397 units (+12.0% YoY)
  • Ford Motor (F 12.34, +0.25) sold 222,248 units (+8.7% YoY)
  • Fiat Chrysler (FCAU 17.96, +0.01) sold 174,266 units (+10.0% YoY)
  • Toyota Motor (TM 120.34, +1.03) sold 226,632 units (+14.9% YoY)
  • Honda Motor (HMC 30.20, +0.42) sold 142,772 units (+6.8% YoY)

Outside of September, auto sales have been disappointing this year as demand cools following a seven-year run of increasing sales, which culminated in a record 17.6 million units solid in 2016.

On a related note, electric automaker Tesla (TSLA 348.14, +6.61) reported third-quarter figures, showing a year-over-year increase of 4.5% in the number of delivered vehicles (26,150). However, production of the company's new, lower-priced Model 3 sedan was just a fraction of what CEO Elon Musk projected. 

TSLA shares initially sold off following the news--holding a loss of 3.0% at their worst mark of the day--but eventually settled with a gain of 1.9%.

Airlines rallied on Tuesday, sending the U.S. Global Jets ETF (JETS 30.94, +1.22) higher by 4.1%, after Delta Air Lines (DAL 51.25, +3.18) reaffirmed its third-quarter unit revenue and margin guidance, excluding the costs associated with Hurricane Irma, which struck its Atlanta Hub last month. DAL shares added 6.6%.

In Washington, Wells Fargo (WFC 55.58, +0.11) CEO Timothy Sloan and former Equifax (EFX 110.45, +2.64) CEO Richard Smith testified before Congress on Tuesday in regards to their respective controversies; Mr. Smith answered questions regarding Equifax's recent data breach while Mr. Sloan was grilled on Wells Fargo's fake-account scandal.

Chipmakers as a whole performed roughly in line with the broader market, evidenced by the PHLX Semiconductor Index (+0.3%), but Advanced Micro (AMD 13.42, +0.71) surged 5.6% following vague M&A speculation. Dow component Intel (INTC 39.38, +0.34) also outperformed, notching its fourth-consecutive victory with a gain of 0.9%.

On the earnings front, homebuilder Lennar (LEN 55.35, +2.53) jumped 4.8% after beating bottom-line estimates. 

Elsewhere, U.S. Treasuries moved modestly higher on Tuesday, leaving yields in the red; the benchmark 10-yr yield dropped one basis point to 2.33%. Meanwhile, the CBOE Volatility Index (VIX 9.57, +0.12) climbed 1.3%, but still managed to settle below the historically-low 10.00 mark.

Investors did not receive any economic data on Tuesday.

On Wednesday, market participants will receive the weekly MBA Mortgage Applications Index at 7:00 ET, the September ADP Employment Change Report (consensus 160K) at 8:15 ET, and the September ISM Services Index (consensus 55.3) at 10:00 ET.

TheVerge.com : Google Pixel 2 event: what to expect (tomorrow Event)

Google Pixel 2 event: what to expect

Last year, Google released the Pixel, the first smartphone designed and sold by the company, and billed it as the best smartphone for Android around. One year later, the company is gearing up to release the next generation of its smartphone, the Pixel 2. Google is setting high expectations. Its teaser video makes claims that its phones can solve problems like bad photos, storage, battery life, software updates, and more.
Adding to the mix are a series of leaks from sites like Droid Life and Android Authority, rumoring that Google will be expanding its hardware presence in a big way with new Google Home devices, a new high-end Chromebook, and new Daydream VR headsets.
Taken together, it’s starting to look like Google’s event will be one of the biggest hardware releases from the company in years. Here’s a rundown of what to expect:
NEW PIXELS
While it seems that Google will have a few hardware products to announce at the event, the biggest thing will almost certainly be new Google Pixels. We’re expected to see two new phones to directly succeed Google’s existing lineup: a Pixel 2, and a larger Pixel 2 XL.
Of the two devices, the Pixel 2 XL is rumored to be the bigger upgrade. The larger phone is said to be getting a new screen design with reduced bezels reminiscent of the Samsung Galaxy S8, while the Pixel 2 is will supposedly offer a similar design to the original.
Android Authority claims to have gotten a hold of the specs for the new devices, which look like some big improvements across the board. In terms of new features, both phones are said to be getting a similar “squeeze” interaction to the HTC U11, along with optical image stabilization for the cameras. The new phones are also expected to rated for IP67 water resistance, which would put them on par with Apple’s recent iPhones (if not quite the IP68 rating that Samsung offers).
There have also been conflicting reports that Google will be removing the headphone jack in favor of only using USB-C, as well as the possible addition of stereo speakers, but it’s unclear whether or not either of those will actually be happening or if both devices will even see the changes.
Google also seems to be updating the home screen on the new Pixels, according to what appear to be finalized renders that have leaked, which also seem to show off the final version of the Pixel 2 XL. If accurate, the new devices will move the search bar from the top of the device to below the main dock, and add a new, minimalistic widget that offers information like calendar and weather.
It also seems that Google may be staggering the release of the new devices, with the Pixel 2 said to launch on October 19th, while the Pixel 2 XL would be pushed off until November 15th — which if true would mean that Google would have to contend with direct competition from Apple’s iPhone X, which comes out November 3rd.
GOOGLE HOME GETS SMALL (AND BIG?)
Just like Amazon — which recently overhauled its Echo line to include a variety of new form factors — it looks like Google is planning to release at least one new Home model at the event. A miniature version of the Google Home, dubbed the Google Home Mini, leaked out earlier in September at Droid Life. It is said to offer the same suite of Google Assistant-powered features as its larger counterpart, but at a reduced size and a $50 price point that should make it a welcome competitor to the Amazon Echo Dot.
There are also mutterings of a larger Google Home “Max” speaker, which, according to 9to5Google, should have a more “premium” design and stereo sound, but information on it has been far less forthcoming.
HIGH-END CHROMEBOOKS ARE BACK
Another product that’s expected to make an appearance is a new high-end Chromebook called the Google Pixelbook, which looks to be a successor to Google’s original Chromebook Pixel.
Like the Chromebook Pixel, the Pixelbook is expected to sell at the ultra-premium end of the Chromebook market, starting at $1,199, with a separate stylus accessory similar to the Apple Pencil that will cost an extra $99.
DAYDREAM VR UPDATES
Another leaked product (also from Droid Life) is a new Daydream VR headset, which is expected to come in three colors — charcoal, fog, and coral — and a more expensive $99 price point (versus the current headset’s $79).
Beyond the fact that the headsets seem to exist, though, there’s still not a lot of information as to what the benefits will be with the new model over the original one.
SURPRISES?
While there have been plenty of leaks already, it’s always possible that there will be some surprises that haven’t made their way onto the internet just yet. And remember: Google is a software company first, which means that even though we may think we know what the Pixel 2 or Pixelbook look like, there’s always room for far more interesting pieces of the puzzle to exist on the software side.
As always, The Verge will be on the ground bringing you all of the latest news on Wednesday, October 4th.