DAILY MORNIMG CHAI REPORT

The S&P 500 futures are back on the advance and trade 30 points, or 0.9%, above fair value in a quiet news session. Many of the technology stocks that closed lower the past two sessions are contributing to the advance this morning, evidenced by the Nasdaq 100 futures trading 1.2% above fair value. The market still has its optimistic hat on, preferring to look past the new wave of coronavirus infections, renewed lockdown measures, and stimulus uncertainty and instead focus on a vaccinated economy in 2021. Health experts are suggesting that the latter might not happen until the second half of 2021, though. Elsewhere, the U.S. Treasury market is closed for Veterans Day, putting a pause on the recent retreat in longer-dated bonds. The U.S. Dollar Index is up 0.4% to 93.14. WTI crude futures are up another 2.6% to $42.46/bbl and are now up 14.4% this week on the prospects for improved economic growth and oil demand. Separately, investors will not receive any notable economic data today. Earlier this morning, the weekly MBA Mortgage Applications Index decreased 0.5% following a 3.8% increase in the prior week. In U.S. Corporate news: Lyft (LYFT 38.12, +2.07): +5.7% after beating top and bottom-line estimates. Teladoc (TDOC 180.00, +7.56): +4.4% after raising its Q4 revenue guidance. Datadog (DDOG 85.01, -7.59): -8.2% despite beating top and bottom-line estimates and guiding Q4 revenue above consensus. Reviewing overnight developments: Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: +1.8%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: -0.5%, India's Sensex: +0.7%, South Korea's Kospi: +1.4%, Australia's ASX All Ordinaries: +1.6%. in economic data: China's October New Loans CNY689.80 bln (expected CNY800.00 bln; last CNY1.900 trln), Outstanding Loan Growth 12.9% yr/yr (expected 13.0%; last 13.0%), and total social financing CNY1.42 trln (expected CNY1.40 trln; last CNY3.48 trln) Japan's October Machine Tool Orders -5.9% yr/yr (last -15.0%) South Korea's October Unemployment Rate 4.2% (last 3.9%) Australia's November Westpac Consumer Sentiment 2.5% (expected 3.8%; last 11.9%) In news: Hong Kong's government removed four pro-democracy lawmakers at China's request. Japan will reportedly continue limiting attendance at large events until at least through February. South Korea's unemployment rate reached a six-month high in October. The Reserve Bank of New Zealand left its official cash rate at 0.25% and announced that funding for its lending program will be implemented in December. Governor Adrian Orr said that it is too early to discuss negative rates. Major European indices trade higher across the board, but overall trading volume has been reduced due to Armistice Day. STOXX Europe 600: +0.8%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.4%. In economic data: There was no economic data of note In news: British officials are expected to announce new takeover laws aimed at limiting foreign companies from entering sensitive industries in the U.K. Trade negotiators from the EU and the U.K. are expected to continue discussions past the mid-November deadline. U.S equity futures: S&P 500 Futures +29 @ 3570 DJIA Futures +218 @ 29538 Nasdaq Futures +130 @ 11749 Overseas: Europe: DAX +0.3%, FTSE +0.7%, CAC +0.3% Asia: Nikkei +1.8%, Hang Seng -0.3%, Shanghai -0.5% Commodities: Crude Oil +1.19 @ 42.55 Nat Gas +0.011 @ 2.960 Gold -5.30 @ 1871.10 Silver -0.209 @ 24.253 Copper -0.0122 @ 3.1433 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): 10x Genomics (TXG) misses by $0.34, beats on revs 1Life Healthcare (ONEM) beats by $0.04, beats on revs; guides FY20 revs above consensus Adaptive Biotechnologies (ADPT) beats by $0.01, beats on revs Air Products (APD) misses by $0.02, beats on revs Alcon (ALC) beats by $0.16, beats on revs Amdocs (DOX) beats by $0.04, beats on revs; guides Q1 EPS in-line, revs above two analyst estimate APi Group (APG) beats by $0.09, reports revs in-line; guides FY20 EPS above consensus, revs in-line Ashland (ASH) beats by $0.50, beats on revs Braskem SA (BAK) reports Q3 results Brooks Automation (BRKS) beats by $0.11, beats on revs; guides Q1 EPS above consensus, revs above consensus CGI Group (GIB) beats by CAD0.05, misses on revs Coherent (COHR) beats by $0.21, beats on revs Covetrus (CVET) misses by $0.51, beats on revs Datadog (DDOG) beats by $0.04, beats on revs; guides Q4 EPS in-line, revs above consensus DouYu (DOYU) beats by RMB0.14, misses on revs eGain Comm. (EGAN) beats on EPS, revenue inline, issues downside Q2 EPS and revenue guidance FICO (FICO) beats by $0.93, beats on revs Fox Factory Holding (FOXF) beats by $0.20, beats on revs; guides Q4 EPS above consensus, revs above consensus fuboTV (FUBO) misses on EPS, but reports revenue upside, guides 2020 revs above consensus, 2021 revs in-line Grocery Outlet (GO) beats by $0.27, reports revs in-line, comps +9.1% Health Catalyst (HCAT) beats by $0.06, beats on revs; guides Q4 revs above consensus HUYA (HUYA) beats by RMB0.09, misses on revs IHS Markit (INFO) reaffirms FY20 and FY21 guidance Kornit Digital (KRNT) beats by $0.09, beats on revs; raises its revenue outlook for 2H20 Lemonade (LMND) beats by $0.01, beats on revs; guides Q4 revs above consensus Lyft (LYFT) beats by $0.01, beats on revs, active riders up 44% from last quarter, remains focused on achieving adjusted EBITDA profitability by 4Q21 Merit Medical (MMSI) provides long term financial guidance Model N (MODN) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY21 EPS below consensus, revs below consensus Open Lending (LPRO) reports 3Q20 results; adjusted EBITDA up 29% yr/yr, revenue up 35% yr/yr, issues inline FY20 revenue guidance Palomar Holdings (PLMR) misses by $0.06, misses on revs Perspecta (PRSP) beats by $0.03, beats on revs; raises FY21 guidance Purple Innovation (PRPL) beats by $0.01, beats on revs; guides Q4 revs above consensus Rackspace Technology (RXT) beats by $0.01, misses on revs; raises FY20 guidance Rocket Companies (RKT) beats by $0.12, beats on revs Royalty Pharma (RPRX) reported Q3 and increased 2020 guidance Sanmina (SANM) beats by $0.32, beats on revs; guides Q1 EPS above consensus, revs in-line Silk Road Medical (SILK) misses by $0.01, beats on revs Teladoc (TDOC) raises Q4 guidance Tencent Music (TME) beats by $0.10, beats on revs General News: Secretary of State Mike Pompeo says the Trump administration is "not finished" with moves against China, according to Bloomberg US COVID-19 cases and hospitalizations hit record high Election officials nationwide found no evidence of voter fraud, according to the New York Times Adaptive Biotechnologies (ADPT) to collaborate with GSK (GSK) for use of clonoSEQ Assay Advanced Micro (AMD) and IBM (IBM) sign multi-year agreement to jointly develop AI for both companies Airbnb aims to delay IPO filing until next week, according to Bloomberg Amazon (AMZN) might move to longer term remote work, according to Business Insider Applied Genetic Technologies (AGTC) reports additional positive data from its phase 1/2 clinical trial in patients with x-linked retinitis pigmentosa Babcock & Wilcox Enterprises (BW) extends contract of CEO Kenny Young through end of 2023 Becton Dickinson (BDX) announces Health Canada authorization of rapid, point-of-care, SARS-CoV-2 antigen test for use on BD Veritor Plus System; Canadian government orders 7.6 mln tests BioNTech (BNTX) and Pfizer (PFE) agree to supply the EU with 200 mln doses of BNT162b2 mRNA-based vaccine candidate BioXcel Therapeutics (BTAI) announces completion of pre-NDA meeting with FDA for BXCL501 for the acute treatment of agitation in patients with schizophrenia and bipolar disorders Boeing (BA) awarded $9.8 bln Air Force contract Bristol-Myers (BMY) presents research advancing outcomes addressing hard-to-treat blood cancers and diseases across small molecule, biologic and cell therapies at ASH 2020 Datadog (DDOG) extends strategic partnership with Google Cloud (GOOG) into new regions Deciphera Pharmaceuticals (DCPH) reports updated preliminary data from DCC-3014, its CSF1R inhibitor program; showed 41% ORR Deciphera Pharmaceuticals (DCPH) presents new data from QINLOCK (Ripretinib) Program; demonstrates the broad clinical activity DISH Network (DISH) and Qualcomm (QCOM) to collaborate on the development of the nation's first O-RAN compliant 5G network Five Prime Therapeutics (FPRX) announces top-line results from Phase 2 FIGHT trial GameStop (GME) will redeem $125 mln of its 6.75% Senior Notes due 2021 on December 11, 2020 Health Catalyst (HCAT) appoints CFO Patrick Nelli to the role of President, effective January 1 Inventiva (IVA) receives positive FDA feedback to advance its lead drug candidate lanifibranor into pivotal Phase III in NASH Invesco (IVZ) reports preliminary month-end assets under management of $1,206.5 bln for October, a decrease of 1.0% vs previous month-end Lazard (LAZ) reported today that its preliminary assets under management as of October 31, 2020 totaled approximately $224.2 bln LPL Financial (LPLA) releases monthly activity report for October 2020 Mesoblast (MESO) reports second interim analysis of clinical outcomes after 135 patients results in recommendation to continue remestemcel-L Phase 3 trial in COVID-19 ARDS Moderna (MRNA) announces clinical updates on personalized cancer vaccine program Myriad Genetics (MYGN): New data show importance of Vectra testing and biomarkers in predicting risk for cardiovascular events in patients with rheumatoid arthritis Oracle (ORCL): ByteDance asks US court for more time to work out divestiture of TikTok app, according to the Wall Street Journal Pfizer (PFE): Dr. Anthony Fauci says he will take Pfizer's (PFE) coronavirus vaccine if FDA approves it, according to The Hill Pfizer (PFE) announces "positive" results from fifth phase 3 Trial of abrocitinib, evaluating safety and efficacy across different dosing regimens Radware (RDWR) announces expanded elastic scalability and resiliency for its virtual DDoS protection in AWS Surface Oncology (SURF) announces FDA fast track designation granted by FDA for SRF388 to treat liver cancer Tesla (TSLA) will begin producing Model Y in China starting next year, according to Digitimes Tiziana Life Sciences (TLSA) to collaborate with Parexel Biotech to conduct phase 1b/2 clinical trial TRI Pointe Homes (TPH) approved a new stock repurchase program authorizing the repurchase of up to $250 million of common stock through December 31, 2021 Waddell & Reed (WDR) reports October AUM of $66.2 bln, compared to $67.9 bln on September 30, 2020 XOMA (XOMA) earned $1 million milestone payment from Agenus (AGEN) related to Merck's (MRK) advancement of MK-4830 into a Ph 2 study M&A: Apollo Global Management (APO) acquires Great Canadian Gaming Corporation for CAD39.00 Myers Industries (MYE) acquires Elkhart Plastics; terms not disclosed Palo Alto Networks (PANW) to acquire Expanse Inc., a leader in attack surface management Raytheon Technologies (RTX) agrees to acquire Blue Canyon Technologies; terms not disclosed Syndicate: ACCO Brands (ACCO) to acquire PowerA, a provider of third-party video gaming accessories Arbor Realty Trust (ABR) prices offering of 7 mln shares of common stock for gross proceeds of $94.5 mln Aurora Cannabis (ACB) announces proposed public offering of units priced at US$7.50/unit for total gross proceeds of approx. US$125 mln Bentley Systems (BSY) files for 8,103,965 Class B share common stock offering; also files for 1,896,035 Class B share common stock offering by selling shareholders BigCommerce (BIGC) launches follow-on public offering of Series 1 common stock Cabaletta Bio (CABA) files for $250 mln mixed securities shelf offering Cambium Networks (CMBM) files for $25 mln share common stock offering; also files for 5.0 mln share common stock offering by selling shareholders CSW Industrials (CSWI) files mixed securities shelf offering Exagen (XGN) files for $150 mln mixed securities shelf offering Keros Therapeutics (KROS) announces proposed public offering of 2.25 mln common shares Organogenesis (ORGO) files for 17.5 mln share common stock offering ORIC Pharmaceuticals (ORIC) commences public offering of 4.0 mln common shares Pacific Biosciences (PACB) prices offering of 7,400,460 shares of common stock at $14.25 per share Phathom Pharmaceuticals (PHAT) files for $500 mln mixed securities shelf offering Safehold (SAFE) upsizes offering by 200k shares and prices 800K shares of common stock at $61.00 per share Viela Bio (VIE) files mixed securities shelf offering Vir Biotechnology (VIR) files mixed securities shelf offering; also files for $300 mln share common stock offering IPOs: Expected to Price: Compass Therapeutics (CMPX: Nasdaq): The clinical-stage biopharmaceutical company developing antibody therapeutics intended to engage the immune system to treat both solid tumors and hematological malignancies is expected to price its 9.0 M share IPO between $5-$6. IN8bio (Nasdaq: INAB): The clinical-stage biotechnology company developing therapies for the treatment of cancers is expected to price its 4.7 M share IPO between $15-$17. Gapping Up/Down Gapping up: FPRX +284.1%, FUBO +29.1%, LPRO +10%, IVA +9.7%, ONEM +9.4%, MESO +6.2%, FICO +6.1%, KRNT +5.6%, LYFT +5.4%, TDOC +5%, TLSA +4.7%, DOYU +4.3%, SANM +4.2%, ADPT +4.1%, ASH +4%, TME +3.7%, ALC +3.5%, GME +3.3%, HUYA +3%, EPD +2.4%, DOX +2.3%, PRPL +2.2%, IVZ +2.1%, MMSI +1.8%, PRSP +1.7%, BA +1.3%, APD +1.3%, XRX +1.2%, PFE +1.2% Gapping down: EGAN -20.9%, MODN -15.7%, ACB -14%, VIE -13.9%, ORIC -9.3%, ORGO -8.8%, DDOG -8.8%, ESPR -8.3%, SILK -7.1%, ABR -4.4%, BIGC -2.9%, RXT -2.8%, RKT -2.3%, FLR -2%, KROS -1.9%, CMBM -1.8%, COHR -1.5%, RPRX -1.5%, PHAT -1.4%, TXG -1.2%, BSY -1.1%, BNTX -1.1%, GO -1% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Abeona Therapeutics (ABEO) upgraded to Overweight from Neutral at Cantor Fitzgerald; tgt $4 Allegion (ALLE) upgraded to Buy from Neutral at BofA Securities; tgt $128 Amdocs (DOX) upgraded to Overweight from Neutral at JP Morgan; tgt $75 AstraZeneca (AZN) upgraded to Hold from Reduce at HSBC Securities CareTrust REIT (CTRE) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $22 CNH Industrial (CNHI) upgraded to Buy from Underperform at BofA Securities; tgt $13 CrowdStrike (CRWD) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $155 D.R. Horton (DHI) upgraded to Positive from Neutral at Susquehanna Eaton (ETN) upgraded to Buy from Neutral at BofA Securities; tgt $135 Five Prime Therapeutics (FPRX) upgraded to Neutral from Underweight at JP Morgan; tgt $14 Five Prime Therapeutics (FPRX) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $34 Howmet Aerospace (HWM) upgraded to Outperform from Market Perform at Cowen; tgt raised to $30 Myomo (MYO) upgraded to Buy from Neutral at ROTH Capital; tgt raised to $7 Royal Dutch Shell (RDS.A) upgraded to Buy from Hold at Berenberg Tapestry (TPR) upgraded to Outperform from Market Perform at Cowen; tgt raised to $30 Trip.com Group (TCOM) upgraded to Outperform from Neutral at Credit Suisse; tgt $42 Yelp (YELP) upgraded to Outperform from In-line at Evercore ISI; tgt $37 Downgrades: American Intl (AIG) downgraded to Neutral from Buy at Goldman; tgt raised to $39 CAE (CAE) downgraded to Sector Perform from Outperform at National Bank Financial CIT Group (CIT) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $34.50 Datadog (DDOG) downgraded to Neutral from Overweight at JP Morgan; tgt $90 Dave & Buster's (PLAY) downgraded to Neutral from Buy at Longbow Easterly Government Properties (DEA) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $24 Intercontinental Hotels Group (IHG) downgraded to Sell from Neutral at UBS Occidental Petro (OXY) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $13 Pentair (PNR) downgraded to Underperform from Buy at BofA Securities; tgt $58 Physicians Realty Trust (DOC) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $20 Reinsurance Group of America (RGA) downgraded to Neutral from Overweight at JP Morgan; tgt $120 Trane (TT) downgraded to Underperform from Buy at BofA Securities; tgt $155 Voyager Therapeutics (VYGR) downgraded to Perform from Outperform at Oppenheimer Others: Kadmon Holdings (KDMN) initiated with a Buy at Mizuho; tgt $13 Phreesia (PHR) initiated with an Overweight at Stephens; tgt $50 Vocera (VCRA) initiated with an Overweight at Stephens; tgt $40 Upcoming Events: Econ Data: 07:00 ET: MBA Mortgage Applications Index for November 7 (Briefing.com Consensus NA; Prior 3.8%) 10:30 ET: EIA Crude Oil Inventories for November 7 (Briefing.com Consensus NA; Prior -8.0M) Earnings: Monday (Oct 9) Morning: ALE BHVN BKI BCOR BIP CNNE CGC CARS EBIX GOGO HL HWM ICPT MCD BTU PLUG RDNT RETA TGNA Afternoon: AL AMBC ARNA BYND ELY SCOR DHT DIOD STAY GSKY HAIN IHRT INO IPAR IFF RAMP MBI MWA MYGN NHI NBIX NGL NKLA NCLH NVAX OSH OXY OR CNXN RPAY RNG SCSC SWAV SPG SPT TLND TCO REAL TLRY WES WPM ZIXI ZGNX ZI Tuesday (Oct 10) Morning: AAP AER BNTX CAE IMOS CRSR CYBR DHI ERJ NOVT ROK TCP Afternoon: TXG ONEM ADPT AKCA ALC DOX ASH BRKS COHR CVET DDOG FICO FOXF GO HCAT IQ KRNT LYFT MODN PLMR PRSP PRPL RXT RKT SANM SILK TME Wednesday (Oct 11) Morning: ADNT APD APG GIB DOYU HUYA LMND Afternoon: ATO CCMP ENS GTBIF HI MFC RVLV REYN SPTN TTEK VRM Thursday (Oct 12) Morning: BAM EPC DAVA ENR GDRX HIMX INMD MTOR NICE NVMI PDD SBH SDGR SSRM SSYS TGP TNK TDG TUFN WIX Afternoon: AQN AMWL AMAT CSCO DLB FTCH GLOB NARI JAMF PLTR U DIS Friday (Oct 13) Morning: DKNG MANU SPB VIPS Asia & Europe detail: Asia: Nikkei +1.8%, Hang Seng -0.3%, Shanghai -0.5% Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Hong Kong's government removed four pro-democracy lawmakers at China's request. Japan will reportedly continue limiting attendance at large events until at least through February. South Korea's unemployment rate reached a six-month high in October. The Reserve Bank of New Zealand left its official cash rate at 0.25% and announced that funding for its lending program will be implemented in December. Governor Adrian Orr said that it is too early to discuss negative rates. In economic data: China's October New Loans CNY689.80 bln (expected CNY800.00 bln; last CNY1.900 trln), Outstanding Loan Growth 12.9% yr/yr (expected 13.0%; last 13.0%), and total social financing CNY1.42 trln (expected CNY1.40 trln; last CNY3.48 trln) Japan's October Machine Tool Orders -5.9% yr/yr (last -15.0%) South Korea's October Unemployment Rate 4.2% (last 3.9%) Australia's November Westpac Consumer Sentiment 2.5% (expected 3.8%; last 11.9%) ---Equity Markets--- Japan's Nikkei: +1.8% Hong Kong's Hang Seng: -0.3% China's Shanghai Composite: -0.5% India's Sensex: +0.7% South Korea's Kospi: +1.4% Australia's ASX All Ordinaries: +1.6% ---FX--- USD/JPY: +0.2% to 105.44 USD/CNH: +0.4% to 6.6238 USD/INR: +0.1% to 74.37 Europe: DAX +0.3%, FTSE +0.7%, CAC +0.3% Major European indices trade higher across the board, but overall trading volume has been reduced due to Armistice Day. British officials are expected to announce new takeover laws aimed at limiting foreign companies from entering sensitive industries in the U.K. Trade negotiators from the EU and the U.K. are expected to continue discussions past the mid-November deadline. There was no economic data of note ---Equity Markets--- STOXX Europe 600: +0.8% Germany's DAX: +0.3% U.K.'s FTSE 100: +0.7% France's CAC 40: +0.3% Italy's FTSE MIB: +0.3% Spain's IBEX 35: +0.4% ---FX--- EUR/USD: -0.4% to 1.1763 GBP/USD: -0.1% to 1.3255 USD/CHF: +0.3% to 0.9181