Daily morning chai report

 The S&P 500 futures trade 25 points, or 0.7%, above fair value, setting up the benchmark index to finish the week in positive territory. Vaccine optimism has outweighed recovery concerns attributed to the record number of coronavirus cases in the U.S. and regional business restrictions.

The pre-market gains are mostly broad-based, with Dow components Walt Disney (DIS 140.75, +5.23, +3.9%) and Cisco (CSCO 41.35, +2.68, +6.9%) setting the upbeat tone following their encouraging earnings reports. Disney reported 73.7 million paid Disney+ subscribers, and Cisco issued upside quarterly guidance.

In economic data, investors will receive the Producer Price Index for October (Briefing.com consensus 0.2%) at 8:30 a.m. ET, and the preliminary University of Michigan Index of Consumer Sentiment for November (Briefing.com consensus 79.0) at 10:00 a.m. ET.

U.S. Treasuries trade relatively unchanged after a sizable advance in longer-dated tenors yesterday. The 2-yr yield is flat at 0.17%, and the 10-yr yield is down one basis point to 0.88%. The U.S. Dollar Index is down 0.1% to 92.88. WTI crude futures are down 1.5%, or $0.60, to $40.52/bbl.

In U.S. Corporate news:

Walt Disney (DIS 140.75, +5.23): +3.9% after beating top and bottom-line estimates and reporting 73.7 million Disney+ subscribers.

Cisco (CSCO 41.35, +2.68): +6.9% after beating EPS estimates and issuing upside quarterly guidance.

DraftKings (DKNG 44.25, +3.00): +7.3% after beating earnings estimates and guiding FY20 revenue above consensus.

Applied Materials (AMAT 71.50, +1.70): +2.4% after beating top and bottom-line estimates and issuing upside quarterly guidance.

Palantir Technologies (PLTR 14.20, -0.38): -2.6% despite beating top and bottom-line estimates, guiding Q4 revenue above consensus, and guiding FY20 revenue above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: -0.9%, India's Sensex: +0.2%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: -0.2%.

In economic data:

Hong Kong's Q3 GDP 2.8% qtr/qtr (expected 3.0%; last 3.0%); -3.5% yr/yr (expected -3.4%; last -3.4%)

New Zealand's October Business NZ PMI 51.7 (last 54.0). October FPI -0.7% m/m (last -1.0%)

In news:

China's former Foreign Minister, Lou Jiwei, said trade tensions with the U.S. may remain elevated even under a Biden presidency.

Japan's Prime Minister, Yoshihide Suga, said that there is no need to declare a state of emergency at this time. The country's government is reportedly considering cutting the tax on gains from fund managers to 20% from 55%.

Reserve Bank of New Zealand Governor, Adrian Orr, said that it is questionable whether the country's economy will keep growing.

Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.6%) underperforms. STOXX Europe 600: -0.1% (+5.1% week-to-date) Germany's DAX: +0.1%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.7%.

In economic data:

Eurozone's Q3 GDP 12.6% qtr/qtr (expected 12.7%; last -11.8%); -4.4% yr/yr (expected -4.3%; last -14.8%). Q3 Employment Change 0.9% qtr/qtr (last -2.9%). September trade surplus EUR24.80 bln (expected surplus of EUR22.00 bln; last surplus of EUR13.90 bln)

Germany's October WPI -0.2% m/m (last 0.0%); -1.9% yr/yr (last -1.8%)

France's October CPI 0.0% m/m (expected -0.1%; last -0.5%); 0.0% yr/yr, as expected (last 0.0%)

Spain's CPI 0.5% m/m (expected 0.5%; last 0.2%); -0.8% yr/yr (expected -0.9%; last -0.4%)

Swiss October PPI 0.0% m/m (last 0.1%); -2.9% yr/yr (last -3.1%)

In news:

The Italian government will reportedly extend the country's regional lockdown measures past December 3.

Germany's health minister said that it is too early to tell if ongoing lockdown measures have been effective.

British Prime Minister's chief adviser will leave his post by the end of the year.

U.S equity futures:

S&P 500 Futures +25 @ 3558

DJIA Futures +216 @ 29208

Nasdaq Futures +79 @ 11899

Overseas:

Europe: DAX +0.1%, FTSE -0.6%, CAC +0.3%

Asia: Nikkei -0.5%, Hang Seng -0.1%, Shanghai -0.9%

Commodities:

Crude Oil -0.62 @ 40.50

Nat Gas +0.040 @ 3.016

Gold +10.25 @ 1883.55

Silver +0.127 @ 24.433

Copper +0.0088 @ 3.1538

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

3M (MMM) reports October sales +3% yr/yr to $2.9 bln

Algonquin Power & Utilities (AQN) beats by $0.01, misses on revs

Amwell (AMWL) reports Q3 results, beats on revs and EBITDA; guides FY20 revs above consensus

Autodesk sees Q3 results above guidance, announces departure of CFO Scott Herren

Beazer Homes (BZH) reports SepQ result, beats single est on revs

Blink Charging (BLNK) reports Q3 loss per share of ($0.12) vs. ($0.10) two analyst estimate, revenue up 84% to $3.8 mln vs. $1.6 mln estimate

Cisco (CSCO) beats by $0.06, reports revs in-line; guides JanQ EPS above consensus, revs above consensus; Non-GAAP op mgn was 32.7% vs guidance of 30-31%; names R. Scott Herren as CFO

Digi Intl (DGII) beats by $0.07, beats on revs

Dillard's (DDS) reports Q3 results, comparable store sales -24%

Dolby Labs (DLB) beats by $0.11, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides Q2 (Mar) revs below consensus

DraftKings (DKNG) beats by $0.06, reports revs in-line; guides FY20 revs above consensus; guides FY21 revs in-line

Farfetch (FTCH) beats by $0.08, beats on revs, sees Q4 digital platform GMV increasing 40-45%

Fortuna Silver Mines (FSM) misses by $0.07; revs in-line

Globant (GLOB) beats by $0.02, beats on revs; guides Q4 EPS above consensus, revs above consensus

Jamf Holding (JAMF) beats by $0.04, beats on revs; guides Q4 revs above consensus; guides FY20 revs above consensus

Palantir Technologies (PLTR) beats by $0.05, beats on revs; guides Q4 revs above consensus; guides FY20 revs above consensus

Revlon (REV) reports Q3 results; EPS above single est; revs below single est

Shattuck Labs (STTK) misses bottom line dual estimate

Spectrum Brands (SPB) beats by $0.44, beats on revs; guides FY21 revs above consensus

Unity Software (U) beats by $0.06, beats on revs; guides Q4 revs above consensus

Vipshop (VIPS) beats by RMB0.31, beats on revs; guides Q4 revs above consensus

Walt Disney (DIS) beats by $0.45, beats on revs; Disney+ paid subs totaled 73.7 mln

General News:

US COVID-19 cases and hospitalizations hit another record; deaths fall slightly week/week

Judy Shelton likely has the votes for Senate confirmation to Fed Board next week, according to the Wall Street Journal

New Jersey Governor Phil Murphy is mulling indoor capacity limits, according to Bloomberg

US partners with pharmacy chains to increase COVID vaccine access, according to HHS website

Ivy League cancels Winter sports, according to ESPN

Aecom Tech (ACM) could face repeat board fight with activist Starboard, according to Bloomberg

Aecom Tech (ACM) has been selected by Trinity Metro to conduct the environmental assessment and preliminary engineering for the TEXRail extension project

Aerie Pharma (AERI) receives positive CHMP opinion for Roclanda in the European Union

Agios Pharma (AGIO) receives FDA orphan drug designation for mitapivat for the treatment of sickle cell disease

Albertsons (ACI) to receive a direct allocation of COVID-19 vaccine from HHS

Annexon (ANNX) initiates Phase 2 study of ANX005 in Huntington's Disease

Ardelyx (ARDX) updated its progress with respect to its small molecule potassium secretagogue program, RDX013, for the potential treatment of hyperkalemia

Axcella Health (AXLA) to highlight AXA1125's multifactorial activity; potentially differentiating and enhanced effects in subjects with type 2 diabetes

Becton Dickinson (BDX): Tesla (TSLA) CEO Elon Musk tweets "Something extremely bogus is going on. Was tested for covid four times today. Two tests came back negative, two came back positive. Same machine, same test, same nurse. Rapid antigen test from BD"

BellRing Brands (BRBR) approves $60 mln share repurchase authorization

BeyondSpring's (BYSI) Seed Therapeutics entered into a research collaboration and license agreement with Eli Lilly (LLY) to discover and develop new chemical entities (NCEs) that could produce therapeutic benefit through targeted protein degradation

BioCryst Pharma (BCRX) presents data showing sustained attack rate reductions, improved patient satisfaction and quality of life for HAE patients taking Berotralstat in APeX-2 Trial

Bloomin' Brands (BLMN): JANA Partners discloses lower active stake of 5.3% (prior ~6.5%)

BridgeBio Pharma (BBIO) and affiliate navire pharma announce dosing of first patient in phase 1 clinical trial of SHP2 inhibitor BBP-398 for tumors driven by RAS and receptor tyrosine kinase mutations

Camtek (CAMT) receives over $20 million in orders for inspection & metrology systems from several manufacturers; orders are expected to be delivered during the first half of 2021

DXC Technology (DXC) appoints Ken Sharp as CFO, effective November 30

Ethan Allen (ETH) increases quarterly cash dividend to $0.25/share from $0.21/share

First Majestic Silver (AG) to appeal Circuit Court decision to nullify Advance Pricing Agreement

Frontdoor (FTDR) expands on-demand home services to 35 markets with American Home Shield ProConnect

Goldman Sachs (GS): Instacart taps Goldman Sachs to lead IPO, according to Reuters

Harpoon Therapeutics (HARP) Presents Encouraging Preclinical Data for HPN601 EpCAM ProTriTAC Program at 35th SITC Annual Meeting

Innate Pharma (IPHA) receives Prime Designation from the EMA for Lacutamab

Ionis Pharma (IONS) presents promising new data for Ionis' antisense medicine targeting PCSK9; Single doses resulted in potent, dose-dependent PCSK9 reductions of up to >90%

Karyopharm (KPTI) Announces Publication of XPOVIO (Selinexor) Phase 3 BOSTON Study Results in The Lancet

KKR (KKR): ValueAct (Jeffrey W. Ubben and Bradley E. Singer) lowered active stake to 6.7% (prior ~7.9%)

Laird Superfood (LSF) appoints Scott McGuire as COO, effective November 16

MediciNova (MNOV) presents positive findings on MN-001

Moderna (MRNA) confirms Swissmedic begins rolling review of Moderna's mRNA vaccine against COVID-19

Natura & Co (NTCO) says "significantly" outperformed global CFT market in Q3 with strong sales growth and margin improvement

Oracle (ORCL): US will no longer enforce order to ban TikTok, according to the Wall Street Journal

Orchard Therapeutics (ORTX) discloses new research program in ALS

Oyster Point Pharma (OYST) announces clinical data presentations on OC-01 nasal spray for dry eye disease at the american academy of Ophthalmology 2020 Virtual Annual Meeting

PayPal (PYPL) will allow all US users to buy and sell cryptocurrency, according to Verge

Rocket Pharmaceuticals (RCKT) receives funding from the California Institute for Regenerative Medicine for phase 1 clinical trial of RP-L401 for infantile malignant osteopetrosis

Roper (ROP) increases quarterly cash dividend to $0.5625/share from $0.5125/share

Ruth's Hospitality Group (RUTH) appoints Kristy Chipman as CFO, effective November 30

STAG Industrial (STAG) breaks ground on onsite solar installations in Illinois and Massachussetts

Surface Oncology (SURF) announces SRF617 and SRF388 will advance to combination and expansion stages of ongoing Phase 1 clinical trials; Both programs have successfully escalated to dose levels demonstrating pharmacodynamic activity without dose-limiting toxicities

Sysco (SYY) eliminates minimum delivery size requirements, effective November 16

Takeda Pharma (TAK) reports final results of Phase 3 HELP Study Open-Label Extension for TAKHZYRO

Trinity Industries (TRN) announces planned entrance into "RailPulse" joint venture to accelerate rail modal transformation

Uber (UBER) Delivery business recorded ~32 mln Uber Eats delivery trips in the UK in the three months ended September 30, 2020, compared to ~12.5 mln trips the same period a year ago

Valvoline (VVV) raises quarterly dividend by 11% to $0.125; authorizes the company to repurchase up to $100 million of its common stock

Walt Disney (DIS) to forgo next semi-annual cash dividend

M&A:

Urovant Sciences (UROV) and Sumitovant Biopharma announce Sumitovant's agreement to acquire remaining stake in Urovant at price of $16.25/share in cash

Syndicate:

Aprea Therapeutics (APRE) files for $350 mln mixed securities shelf offering

Bentley Systems (BSY) prices offering of 10 mln shares of its Class B common stock at $32.00 per share

BigCommerce (BIGC) prices follow-on offering of a total of 5 mln shares of Series 1 common stock at $68.00 per share

Cassava Sciences (SAVA) files for share common stock offering, no amount given

Five Prime Therapeutics (FPRX) prices offering of 7.2 mln shares of common stock at $21.00 per share

Keros Therapeutics (KROS) prices 2.6 mln shares of common stock at $50.00 per share

Lordstown Motors (RIDE) files for 14.4 mln share common stock offering; also files for 143,666,024 share common stock offering by selling shareholders

Organogenesis (ORGO) prices offering of 17.5 mln shares of common stock at $3.25 per share

ORIC Pharmaceuticals (ORIC) prices upsized offering of 5.04 mln shares of common stock at $23.00/share (previously 4 mln shares)

Ovid Therapeutics (OVID) files for $250 mln mixed securities shelf offering

The Trade Desk (TTD) files mixed securities shelf offering

Vertiv (VRT) prices secondary offering of 18 mln shares of common stock; additional terms undisclosed

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.

Gapping Up/Down

Gapping up:

UROV +90.3%, LI +20.5%, FTCH +15.2%, IPHA +14.1%, VIPS +7.2%, CSCO +7.1%, JAMF +5.7%, KPTI +5.1%, ADSK +5%, DDS +4.5%, RIDE +4.4%, PLTR +4.3%, DIS +4.3%, NKTX +3.1%, DLB +3.1%, AMAT +3%, TAL +2.9%, SPB +2.8%, FPRX +2.4%, AGIO +2.2%, BSY +2%, TTD +1.5%, ORTX +1.5%, ETH +1.3%, U +1.1%, ENB +0.9%, MMM +0.9%

Gapping down:

SAVA -21%, GFF -10.4%, REV -8.5%, AMWL -5.3%, BLNK -5%, BIGC -4.5%, KROS -3.9%, OVID -3.7%, LSF -3.5%, TWNK -1.4%, VRT -1.1%, ROP -0.9%, NARI -0.9%, ACI -0.5%, ORGO -0.5%

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

Upgrades:

Black Hills Corp (BKH) upgraded to Buy from Neutral at BofA Securities; tgt $69

Descartes (DSGX) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $70

Digital Realty Trust (DLR) upgraded to Buy from Neutral at Citigroup; tgt lowered to $160

Extra Space Storage (EXR) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $124

Magellan Health (MGLN) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $98

Tactile Systems (TCMD) upgraded to Outperform from Perform at Oppenheimer; tgt $55

Teladoc (TDOC) upgraded to Outperform from Neutral at Robert W. Baird; tgt $220

Utz Brands (UTZ) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $22

Walt Disney (DIS) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $170

Downgrades:

Carlisle Cos (CSL) downgraded to Hold from Buy at Loop Capital; tgt $140

CMC Materials (CCMP) downgraded to Sell from Neutral at Citigroup; tgt lowered to $140

Dow (DOW) downgraded to Mkt Perform from Outperform at Bernstein; tgt $57

Dow (DOW) downgraded to Hold from Buy at Deutsche Bank; tgt $56

Kodiak Sciences (KOD) downgraded to Neutral from Buy at Goldman; tgt raised to $105

LyondellBasell (LYB) downgraded to Mkt Perform from Outperform at Bernstein; tgt $83

LyondellBasell (LYB) downgraded to Hold from Buy at Deutsche Bank; tgt $80

Palantir Technologies (PLTR) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $15

Welltower (WELL) downgraded to In-line from Outperform at Evercore ISI; tgt $64

Others:

BigCommerce (BIGC) initiated with a Sell at Citigroup; tgt $65

Chewy (CHWY) initiated with a Overweight at Piper Sandler; tgt $90

Open Lending (LPRO) initiated with a Neutral at B. Riley Securities; tgt $30

Spirit Aerosystems (SPR) resumed with a Neutral at Credit Suisse; tgt $29

Triterras Fintech (TRIT) initiated with a Buy at B. Riley Securities; tgt $16

Upcoming Events:

Econ Data:

08:30 ET: PPI for October (Briefing.com Consensus 0.2%; Prior 0.4%)

08:30 ET: Core PPI for October (Briefing.com Consensus 0.2%; Prior 0.4%)

10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for November (Briefing.com Consensus 79.0; Prior 81.8)

10:30 ET: EIA Natural Gas Inventories for November 7 (Briefing.com Consensus NA; Prior -36 bcf)

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 -0.5%, Hang Seng -0.1%, Shanghai -0.9%

Equity indices in the Asia-Pacific region ended the week on a mostly lower note. China's former Foreign Minister, Lou Jiwei, said trade tensions with the U.S. may remain elevated even under a Biden presidency. Japan's Prime Minister, Yoshihide Suga, said that there is no need to declare a state of emergency at this time. The country's government is reportedly considering cutting the tax on gains from fund managers to 20% from 55%. Reserve Bank of New Zealand Governor, Adrian Orr, said that it is questionable whether the country's economy will keep growing.

In economic data:

Hong Kong's Q3 GDP 2.8% qtr/qtr (expected 3.0%; last 3.0%); -3.5% yr/yr (expected -3.4%; last -3.4%)

New Zealand's October Business NZ PMI 51.7 (last 54.0). October FPI -0.7% m/m (last -1.0%)

---Equity Markets---

Japan's Nikkei: -0.5% (+4.4% for the week)

Hong Kong's Hang Seng: -0.1% (+1.7% for the week)

China's Shanghai Composite: -0.9% (-0.1% for the week)

India's Sensex: +0.2% (+9.7% for the week)

South Korea's Kospi: +0.7% (+3.2% for the week)

Australia's ASX All Ordinaries: -0.2% (+3.4% for the week)

---FX---

USD/JPY: -0.2% to 104.95

USD/CNH: UNCH at 6.6137

USD/INR: UNCH at 74.60

Europe: DAX +0.1%, FTSE -0.6%, CAC +0.3%

Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.6%) underperforms. The Italian government will reportedly extend the country's regional lockdown measures past December 3. Meanwhile, Germany's health minister said that it is too early to tell if ongoing lockdown measures have been effective. British Prime Minister's chief adviser will leave his post by the end of the year.

In economic data:

Eurozone's Q3 GDP 12.6% qtr/qtr (expected 12.7%; last -11.8%); -4.4% yr/yr (expected -4.3%; last -14.8%). Q3 Employment Change 0.9% qtr/qtr (last -2.9%). September trade surplus EUR24.80 bln (expected surplus of EUR22.00 bln; last surplus of EUR13.90 bln)

Germany's October WPI -0.2% m/m (last 0.0%); -1.9% yr/yr (last -1.8%)

France's October CPI 0.0% m/m (expected -0.1%; last -0.5%); 0.0% yr/yr, as expected (last 0.0%)

Spain's CPI 0.5% m/m (expected 0.5%; last 0.2%); -0.8% yr/yr (expected -0.9%; last -0.4%)

Swiss October PPI 0.0% m/m (last 0.1%); -2.9% yr/yr (last -3.1%)

---Equity Markets---

STOXX Europe 600: -0.1% (+5.1% week-to-date)

Germany's DAX: +0.1% (+4.7% week-to-date)

U.K.'s FTSE 100: -0.6% (+6.7% week-to-date)

France's CAC 40: +0.3% (+8.4% week-to-date)

Italy's FTSE MIB: +0.4% (+6.2% week-to-date)

Spain's IBEX 35: +0.7% (+13.2% week-to-date)

---FX---

EUR/USD: +0.1% to 1.1815

GBP/USD: +0.4% to 1.3162

USD/CHF: +0.1% to 0.9151