Daily Morning chai report.

 The S&P 500 futures trade 13 points, or 0.4%, below fair value amid lingering coronavirus concerns that have reined in many of the cyclical stocks. The tech-heavy Nasdaq 100 futures trade 0.2% above fair value.

Last night, the U.S. reported record figures for coronavirus cases and current hospitalizations, which have prompted many cities/states to enforce renewed business restrictions over the past few weeks. This isn't surprising information for the market considering it had been rallying in the face of increasing cases/hospitalizations/restrictions on hope that a widespread vaccine will reopen the economy in 2021.

Perhaps the market had gotten ahead of itself, though, with the S&P 500 nearly closing at a record high yesterday on the back of a 9.3% monthly gain. Investors are taking the side of caution this morning: the 10-yr yield is down four basis points to 0.94% amid increased buying interest after the bond market was closed for Veterans Day yesterday.

The 2-yr yield is down one basis point to 0.18%. The U.S. Dollar Index is down 0.1% to 92.97. WTI crude futures are down 0.8% to $41.15/bbl.

On the data front, investors will receive the Consumer Price Index for October (Briefing.com consensus 0.2%) and the weekly Initial Claims (Briefing.com consensus 740,000) and Continuing Claims report at 8;30 a.m. ET, followed by the October Treasury Budget at 2:00 p.m. ET.

Separately, Fed Chair Powell will speak with ECB President Lagarde and Bank of England Governor Bailey at the ECB's annual symposium at 11:45 a.m. ET.

In U.S. Corporate news:

  • Home Depot (HD 279.99, +2.24): +0.8% after the stock was upgraded to Buy from Accumulate at Gordon Haskett.
  • Brookfield Asset Mgmt (BAM 38.00, +0.30): +0.8% after beating top and bottom-line estimates.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.1%, India's Sensex: -0.5%, South Korea's Kospi: -0.4%, Australia's ASX All Ordinaries: -0.5%.
    • In economic data:
      • South Korea's October Import Price Index -11.6% yr/yr (last -11.3%) and Export Price Index -6.4% yr/yr (last -5.9%)
      • New Zealand's September Visitor Arrivals 9.0% m/m (last 104.7%)
    • In news:
      • Japan's Economy Minister said that his country may impose more stringent measures to contain the spread of the coronavirus.
      • South Korea's President may reshuffle his cabinet in December while the country's short selling ban could be lifted at the end of Q1.
      • China is reportedly taking steps to delay log imports from Australia.
  • Major European indices trade in negative territory. STOXX Europe 600: -0.7%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.6%, France's CAC 40: -1.1%, Italy's FTSE MIB: -0.8%, Spain's IBEX 35: -0.8%.
    • In economic data:
      • Eurozone's September Industrial Production -0.4% m/m (expected 0.7%; last 0.6%); -6.8% yr/yr (expected -5.8%; last -6.7%)
      • Germany's October CPI 0.1% m/m, as expected (last 0.1%); -0.2% yr/yr, as expected (last -0.2%)
      • U.K.'s Q3 GDP 15.5% qtr/qtr (expected 15.8%; last -19.8%); -9.6% yr/yr (expected -9.4%; last -21.5%). Q3 Business Investment 8.8% qtr/qtr (last -26.5%); -20.7% yr/yr (last -26.1%). September Construction Output 2.9% m/m (expected 2.1%; last 3.8%); -10.0% yr/yr (expected -11.7%; last -12.2%). September Industrial Production 0.5% m/m (expected 0.8%; last 0.3%); -6.3% yr/yr (expected -6.1%; last -6.4%). September Manufacturing Production 0.2% m/m (expected 1.0%; last 0.9%); -7.9% yr/yr (expected -7.4%; last -8.3%). September trade deficit GBP9.35 bln (expected deficit of GBP9.50 bln; last deficit of GBP9.01 bln)
    • In news:
      • Germany's Finance Minister claimed that the economic outlook has improved over the past few weeks.
      • Bank of England Governor, Andrew Bailey, said that he does not see a current need for yield control measures, adding that he does not have a specific target date for implementing negative rates.
      • Italy sold 3-, 7-, and 15-yr debt to solid demand.

U.S equity futures:

  • S&P 500 Futures -18 @ 3550
  • DJIA Futures -242 @ 26069
  • Nasdaq Futures +13 @ 11899

Overseas:

  • Europe: DAX -0.9%, FTSE -0.6%, CAC -1.1%
  • Asia: Nikkei +0.7%, Hang Seng -0.2%, Shanghai -0.1%

Commodities:

  • Crude Oil -0.34 @ 41.11
  • Nat Gas -0.017 @ 3.014
  • Gold +8.25 @ 1869.85
  • Silver +0.013 @ 24.280
  • Copper +0.0057 @ 3.1397


U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):
    • Atmos Energy (ATO) beats by $0.02, misses on revs; guides FY21 EPS in-line, increases divided by 8.7%
    • Brookfield Asset Mgmt (BAM) beats by $0.18, beats on revs
    • CMC Materials (CCMP) beats by $0.21, misses on revs; guides Q1 revs in-line
    • COMPASS Pathways (CMPS) misses bottom line dual estimate
    • Deutsche Telekom (DTEGY) reports Q3 results; revs rise 32%; raises guidance
    • Edgewell Personal Care (EPC) beats by $0.03, beats on revs; guides FY21 EPS in-line
    • Endava (DAVA) beats by $0.04, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY21 EPS above consensus, revs above consensus
    • Energizer (ENR) misses by $0.22, beats on revs; guides FY21 EPS in-line, revs above consensus; Board has approved a new share repurchase program for up to 7.5 mln shares
    • Enersys (ENS) beats by $0.01, misses on revs; guides Q3 EPS above consensus
    • Fluor (FLR) misses by $0.01; misses on revs
    • Forma Therapeutics (FMTX) beats by $0.01
    • Fossil (FOSL) reports non-GAAP EPS of $0.40; revs fell 19.3% yr/yr to $435.5 mln
    • GoHealth (GOCO) reports 3Q20 net loss per share of ($0.65), no estimates, revenue increased 52% yr/yr
    • Gold Fields (GFI) provides Q3 operation update
    • GoodRx (GDRX) beats by $0.09, beats on revs; guides Q4 revs above consensus
    • Green Thumb (GTBIF) beats by $0.04, beats on revs
    • GrowGeneration (GRWG) reports 3Q20 GAAP EPS of $0.07, no estimates, vs. $0.03 in yr ago period; revenue up 153% yr/yr to $55 mln, increases revenue and adj. EBITDA guidance for 2020 and 2021
    • Hillenbrand (HI) beats by $0.20, beats on revs; guides DecQ EPS above consensus
    • Himax Tech (HIMX) reports EPS in-line, revs in-line
    • InMode (INMD) beats by $0.15, beats on revs; guides FY20 revs above consensus
    • Intl Game Tech (IGT) beats by $0.49, beats on revs
    • Manulife Financial (MFC) beats by $0.03
    • Meritor (MTOR) beats by $0.12, beats on revs; guides FY21 EPS below consensus, revs in-line
    • MultiPlan (MPLN) reports Q3 results; provides Q4 outlook
    • NICE (NICE) beats by $0.02, reports revs in-line; guides FY20 EPS above consensus, revs above consensus
    • NV5 Global (NVEE) beats handily on EPS and revs
    • Pinduoduo (PDD) beats by RMB1.36, beats on revs
    • ReneSola (SOL) expects Q3 revenue to be at the high end of the prior range of $8 -10 mln (vs $9.9 mln two analyst estimate)
    • Revolve Group (RVLV) beats by $0.13, misses on revs
    • Reynolds Consumer Products (REYN) beats by $0.05, beats on revs, expects Q4 net revenue growth to be mid-single digit range
    • Sally Beauty (SBH) beats by $0.07, misses on revs
    • Schrodinger (SDGR) beats by $0.07, beats on revs
    • Ship Finance Intl (SFL) reports Q3 (Sep) results, revs in-line
    • Siemens AG (SIEGY) reports FY20 results; revs flat yr/yr; expects moderate rise in net income for FY21
    • Southwest Air (LUV) provides updated guidance regarding its financial and operational trends
    • SpartanNash (SPTN) beats by $0.33, misses on revs; guides FY20 EPS below consensus
    • SpringWorks Therapeutics (SWTX) misses by $0.08
    • SSR Mining (SSRM) beats by CAD 0.08, misses on revs
    • Stratasys (SSYS) beats by $0.02, beats on revs
    • Teekay LNG Partners (TGP) beats by $0.01, beats on revs
    • Teekay Tankers (TNK) misses by $0.10, beats on revs
    • Tetra Tech (TTEK) beats by $0.10, reports revs in-line; guides DecQ EPS in-line, revs in-line; guides FY21 EPS in-line, revs in-line
    • Transdigm Group (TDG) beats by $0.94, beats on revs
    • Tufin Software (TUFN) beats by $0.13, beats on revs; guides Q4 revs in-line
    • Vroom (VRM) beats by $0.08, beats on revs, eCommerce units sold up 59%
    • Xpeng Inc. (XPEV) reports reports mixed results; beats on revs
    • Wix.com (WIX) beats by $0.01, beats on revs; guides Q4 revs above consensus
  • General News:
    • President-elect Joe Biden's coronavirus advisor Dr. Michael Osterholm says US lockdown of 4-6 weeks could help control pandemic, according to CNBC
    • President-elect Joe Biden is preparing plans for healthcare, taxes, infrastructure, climate, and a $2.2 trillion stimulus proposal, but he acknowledges that these proposals will be pared back if Republicans take the Senate in early January, according to New York Times
    • President Trump is attempting to delay vote certification in swing states which could position Republican-controlled state legislatures to appoint electors favorable to Mr. Trump to the electoral college, according to the Wall Street Journal
    • US COVID-19 cases and hospitalizations hit another record
    • Tech companies want more time to propose a protective order related to Google (GOOG) antitrust lawsuit, according to Reuters
    • European regulators are concerned about bad loans at banks, according to the Wall Street Journal
    • Demand for Manhattan apartments is beginning to bounce back amid 19% drop in rents, according to CNBC
    • Alibaba (BABA) announces that 2020 11.11 Global Shopping Festival generated US$74.1 bln in GMV
    • Allegiant Travel (ALGT) reports preliminary passenger traffic results for October; total system passengers declined 30.8% yr/yr
    • AstraZeneca (AZN) reports CALAVI Phase II trials for Calquence in patients hospitalised with respiratory symptoms of COVID-19 did not meet primary endpoint
    • AstraZeneca (AZV) partners with CCT to conduct COVID-19 vaccine clinical trials in Arizona
    • AZZ (AZZ) announces strategic and financial initiatives to enhance shareholder value
    • Baozun (BZUN) sets New Total Order Value Record for 11.11 festival of RMB16.50 bln
    • Canadian Solar (CSIQ) announced that two of its projects in Japan have been awarded feed-in-tariffs under the 6th FIT Auction
    • Castle Biosciences (CSTL) presents data on DecisionDx-Melanoma and DecisionDx DiffDx-Melanoma tests at american society of Dermatopathology 57th Virtual Annual Meeting
    • CureVac's (CVAC) COVID-19 vaccine candidate, CVnCoV, suitable for standard fridge temperature logistics
    • Energizer (ENR) announces CEO succession; Alan R. Hoskins to retire as CEO in January 2021 and the Board elected Mark S. LaVigne as successor
    • Five Prime (FPRX) presents first preclinical data on Anti-CCR8 antibody FPA157
    • Getty Realty Corp. (GTY) appoints Brian Dickman as CFO, effective December 14
    • Harley Davidson (HOG) aiming to leave India, according to the New York Times
    • Incyte (INCY), Xencor (XNCR), and MorphoSys (MOR) announce global collaboration for tafasitamab in combination with plamotamab
    • Inhibrx (INBX) announces "positive" interim results from Phase 1 trial of INBRX-109 in patients with chondrosarcoma
    • Ionis Pharma (IONS) reports medicine targeting PCSK9 demonstrates best-in-class potential for the treatment of patients with high cholesterol at risk for cardiovascular disease
    • Johnson & Johnson (JNJ) unit Janssen submits applications in U.S. and EU seeking approval of DARZALEX FASPRO/DARZALEX subcutaneous formulation in combination with Pomalidomide and Dexamethasone
    • Kodiak Sciences (KOD) presents Phase 1b Clinical Study Data for KSI-301 at AAO
    • Marathon Petroleum (MPC) announces that CFO, Donald Templin, to retire early next year
    • Moderna (MRNA) completes case accrual for first interim analysis of the Phase 3 COVE study of mRNA-1273
    • Ovintiv (OVV) named Brendan McCracken as president, effective December 1, 2020
    • PDL BioPharma (PDLI) announces intention to file a certificate of dissolution in January
    • Qiagen (QGEN) starts commercialization of portable digital SARS-CoV-2 antigen test in the US
    • Revlon (REV) announces final results and expiration of amended and restated exchange offer and concurrent consent solicitation
    • RLI Corp (RLI) declares special cash dividend of $1.00/share
    • Seabridge Gold (SA) drilling finds additional evidence of large gold-copper porphyry system at Seabridge Gold's Iskut Project
    • Steelcase (SCS) has substantially completed its forensic investigation of previously announced cyberattack; has resumed normal operations
    • Stifel Financial (SF) announces three-for-two stock split and intention to increase quarterly dividend in 2021
    • XPO Logistics (XPO) has made extensive preparations for what could be a record holiday shopping season in many of the 30 countries where it operates
    • Yelp (YELP) is encouraged by Google (GOOG) antitrust case, according to Bloomberg
  • M&A:
    • Becton Dickinson (BDX) has acquired the Medical Business assets of CUBEX, which is a privately-held company that develops cloud-based software offerings for advanced medication management
    • Bioceres (BIOX) acquires full ownership of HB4 Soy and strategic intellectual property rights for wheat from Arcadia Biosciences (RKDA)
    • Synopsys (SNPS) acquires Moortec; terms not disclosed
    • U.S. Concrete (USCR) acquires assets of Sugar City Building Materials; terms not disclosed
    • Utz Brands (UTZ) announced that its subsidiaries Utz Quality Foods, LLC and Heron Holding Corporation have entered into a definitive agreement to acquire Truco Enterprises for a total purchase price of $480 million
  • Syndicate:
    • First Republic Bank (FRC) announces public offering of 1.5 mln common shares
    • Five Prime Therapeutics (FPRX) announces public offering of 5.0 mln common shares
  • 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:
    • FOSL +30.7%, PDD +18.9%, FPRX +14%, HIMX +12.2%, XPEV +10.3%, INBX +9.4%, GRWG +9.3%, NVEE +6.7%, IGT +5.9%, MFC +5.5%, HI +5.4%, MRNA +4.9%, SOL +4.8%, PDLI +4%, SSYS +3.5%, SFL +3.3%, BZUN +3.1%, ICL +3.1%, TTEK +2.6%, JWS +2.5%, GTBIF +2%, QGEN +1.9%, EPC +1.9%, BABA +1.8%, TNK +1.4%, AB +1.3%, ESPR +1.2%, SF +1.1%, REYN +1%, NICE +0.7%
  • Gapping down:
    • VRM -9.9%, RVLV -9.5%, USCR -6.6%, SPTN -6.5%, GOCO -4.5%, OM -3.6%, ALGT -3.1%, MOR -3.1%, PRVL -1.6%, ENS -1.3%


Analyst Research (see Upgrades/Downgrades calendarfor full list):

  • Upgrades:
    • ACCO Brands (ACCO) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $12
    • Burlington Stores (BURL) upgraded to Buy from Accumulate at Gordon Haskett; tgt $262
    • EPAM Systems (EPAM) upgraded to Buy from Neutral at BofA Securities; tgt $364
    • First Merchants (FRME) upgraded to Overweight from Equal-Weight at Stephens; tgt $35
    • First Mid-Illinois Bancshares (FMBH) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $34
    • Home Depot (HD) upgraded to Buy from Accumulate at Gordon Haskett; tgt $315
    • Intl Flavors (IFF) upgraded to Hold from Sell at Societe Generale; tgt $122
    • PG&E (PCG) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $15
    • Ross Stores (ROST) upgraded to Buy from Accumulate at Gordon Haskett; tgt $126
    • ServiceNow (NOW) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $652
    • Steven Madden (SHOO) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $36
  • Downgrades:
    • Air Products (APD) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $280
    • Alcon (ALC) downgraded to Neutral from Buy at Guggenheim
    • Anheuser-Busch InBev (BUD) downgraded to Neutral from Buy at Redburn
    • Coherent (COHR) downgraded to Neutral from Buy at Longbow
    • Cullen/Frost (CFR) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $80
    • FS KKR Capital (FSK) downgraded to Underweight from Equal Weight at Wells Fargo; tgt $15.50
    • Intercorp Financial (IFS) downgraded to Neutral from Overweight at JP Morgan; tgt $23
    • Lowe's (LOW) downgraded to Accumulate from Buy at Gordon Haskett; tgt $181
    • Old National Bancorp (ONB) downgraded to Equal-Weight from Overweight at Stephens; tgt raised to $17
    • Palomar Holdings (PLMR) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $95
    • Regional Mgmt (RM) downgraded to Neutral from Buy at Janney
    • Salesforce (CRM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $275
    • Stock Yards Bancorp (SYBT) downgraded to Equal-Weight from Overweight at Stephens; tgt raised to $44
    • Triumph Bancorp (TBK) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $45
    • Williams-Sonoma (WSM) downgraded to Accumulate from Buy at Gordon Haskett; tgt $106
  • Others:
    • Freeport-McMoRan (FCX) initiated with a Buy at Goldman and added to Conviction Buy List; tgt $25
    • Gaming and Leisure Properties (GPLI) initiated with a Strong Buy at Raymond James; tgt $52
    • MGM Growth Properties (MGP) initiated with an Outperform at Raymond James; tgt $35
    • NIKE (NKE) initiated with an Outperform at RBC Capital Mkts; tgt $145
    • Teck Resources (TECK) initiated with a Neutral at Goldman; tgt $14
    • Under Armour (UAA) initiated with a Sector Perform at RBC Capital Mkts; tgt $16
    • Vertiv (VRT) initiated with a Buy at Guggenheim; tgt $21
    • VICI Properties (VICI) initiated with a Strong Buy at Raymond James; tgt $32
    • Warrior Met Coal (HCC) initiated with a Buy at ROTH Capital; tgt $20

Upcoming Events:

  • Econ Data:
    • 08:30 ET: CPI for October (Briefing.com Consensus 0.2%; Prior 0.2%)
    • 08:30 ET: Core CPI for October (Briefing.com Consensus 0.2%; Prior 0.2%)
    • 08:30 ET: Initial Claims for November 7 (Briefing.com Consensus 740K; Prior 751K)
    • 08:30 ET: Continuing Claims for October 31 (Briefing.com Consensus NA; Prior 7.285M)
    • 10:30 ET: EIA Natural Gas Inventories for November 7 (Briefing.com Consensus NA; Prior -36 bcf)
    • 11:00 ET: EIA Crude Oil Inventories for November 7 (Briefing.com Consensus NA; Prior -8.0 M)
    • 14:00 ET: Treasury Budget for October (Briefing.com Consensus NA; Prior -$134.5B)
  • Earnings:
    • Monday (Nov 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 (Nov 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 (Nov 11)
      • Morning: ADNT APD APG GIB DOYU HUYA LMND
      • Afternoon: ATO CCMP ENS GTBIF HI MFC RVLV REYN SPTN TTEK VRM
    • Thursday (Nov 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 (Nov 13)
      • Morning: DKNG MANU SPB VIPS


    Asia & Europe detail:

    Asia: Nikkei +0.7%, Hang Seng -0.2%, Shanghai -0.1%

    Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Economy Minister said that his country may impose more stringent measures to contain the spread of the coronavirus. South Korea's President may reshuffle his cabinet in December while the country's short selling ban could be lifted at the end of Q1. China is reportedly taking steps to delay log imports from Australia.

    • In economic data:
      • Japan's September Core Machinery Orders -4.4% m/m (expected -0.7%; last 0.2%); -11.5% yr/yr (expected -11.6%; last -15.2%). October PPI -0.2% m/mm, as expected (last -0.2%); -2.1% yr/yr, as expected (last -0.8%)
      • South Korea's October Import Price Index -11.6% yr/yr (last -11.3%) and Export Price Index -6.4% yr/yr (last -5.9%)
      • New Zealand's September Visitor Arrivals 9.0% m/m (last 104.7%)

    ---Equity Markets---

    • Japan's Nikkei: +0.7%
    • Hong Kong's Hang Seng: -0.2%
    • China's Shanghai Composite: -0.1%
    • India's Sensex: -0.5%
    • South Korea's Kospi: -0.4%
    • Australia's ASX All Ordinaries: -0.5%

    ---FX---

    • USD/JPY: -0.1% to 105.31
    • USD/CNH: +0.1% to 6.6168
    • USD/INR: +0.1% to 74.58

    Europe: DAX -0.9%, FTSE -0.6%, CAC -1.1%

    Major European indices trade in negative territory. Germany's Finance Minister claimed that the economic outlook has improved over the past few weeks. Bank of England Governor, Andrew Bailey, said that he does not see a current need for yield control measures, adding that he does not have a specific target date for implementing negative rates. Italy sold 3-, 7-, and 15-yr debt to solid demand.

    • In economic data:
      • Eurozone's September Industrial Production -0.4% m/m (expected 0.7%; last 0.6%); -6.8% yr/yr (expected -5.8%; last -6.7%)
      • Germany's October CPI 0.1% m/m, as expected (last 0.1%); -0.2% yr/yr, as expected (last -0.2%)
      • U.K.'s Q3 GDP 15.5% qtr/qtr (expected 15.8%; last -19.8%); -9.6% yr/yr (expected -9.4%; last -21.5%). Q3 Business Investment 8.8% qtr/qtr (last -26.5%); -20.7% yr/yr (last -26.1%). September Construction Output 2.9% m/m (expected 2.1%; last 3.8%); -10.0% yr/yr (expected -11.7%; last -12.2%). September Industrial Production 0.5% m/m (expected 0.8%; last 0.3%); -6.3% yr/yr (expected -6.1%; last -6.4%). September Manufacturing Production 0.2% m/m (expected 1.0%; last 0.9%); -7.9% yr/yr (expected -7.4%; last -8.3%). September trade deficit GBP9.35 bln (expected deficit of GBP9.50 bln; last deficit of GBP9.01 bln)

    ---Equity Markets---

    • STOXX Europe 600: -0.7%
    • Germany's DAX: -0.9%
    • U.K.'s FTSE 100: -0.6%
    • France's CAC 40: -1.1%
    • Italy's FTSE MIB: -0.8%
    • Spain's IBEX 35: -0.8%

    ---FX---

    • EUR/USD: +0.3% to 1.1808
    • GBP/USD: -0.5% to 1.3149
    • USD/CHF: -0.3% to 0.9144

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    DAILY MORNING CHAI REPORT

     The S&P 500 futures trade seven points, or 0.2%, above fair value on this Christmas Eve session, which will end early at 1:00 p.m. ET. The benchmark index is down 0.5% for the week, versus a 1.9% gain in the Russell 2000. Today also marks the start of a calendar effect in the market known as the Santa Claus rally in which stocks tend to rise from the last five trading days of December through the first two trading days of January. As the saying goes, though, past performance is not indicative of future results. Trading volume could be lighter than usual with many market participants checked out for the holiday, and other markets closed entirely, which could lead to some noticeable intraday price action. With that said, intraday dips tend to be bought, as investors don't want to feel excluded from this raging bull market, especially at a seasonally bullish time of the year. In other developments, the UK and EU are reportedly expected to confirm a Brexit deal today, while there ...
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