DAILY MORNING CHAI REPORT

 The S&P 500 futures trade 18 points, or 0.5%, below fair value following yesterday's record-setting performances in the S&P 500, Dow, and Russell 2000. The broad market is taking a well-deserved breather, although there are some high-profile movers in pre-market action.

Notably, shares of Tesla (TSLA 462.01, +53.92, +13.2%) are up 13% after the S&P Dow Jones Indices said Tesla will join the S&P 500 on Dec. 21. Walgreens Boots Alliance (WBA 38.89, -5.21, -11.8%) has dropped 12% after Amazon (AMZN 3209.00, +77.94, +2.5%) announced two new pharmacy offerings today.

Walmart (WMT 153.58, +1.14, +0.8%) is indicated to open at new highs after beating top and bottom-line estimates, while Home Depot (HD 274.00, -5.57, -2.0%) is trading lower despite exceeding quarterly expectations.

With Americans increasingly relying on getting their medicines via mail to avoid getting exposed to COVID-19, Amazon (NASDAQ:AMZN) is getting into the pharmacy business. How will it work? Doctors can send prescriptions directly to Amazon Pharmacy - which has tools to verify that a physician legitimately ordered each prescription - or patients can request a transfer from existing retailers. Amazon Prime customers will get free two-day delivery, while others can get free delivery within five days or pay $5.99 to upgrade to two-day delivery. The move had been anticipated for quite a while, given the many reported internal discussions and acquisition of PillPack in 2018, but the latest news is likely to shake CVS (NYSE:CVS), Walmart (NYSE:WMT), Rite Aid (NYSE:RAD) and Walgreens (NASDAQ:WBA).

Separately, investors will receive a large batch of economic data that will feature the Retail Sales Report for October (Briefing.com consensus 0.5%) at 8:30 a.m. ET. Import and Export Prices for October will be released alongside the retail sales data.

Later, Industrial Production (Briefing.com consensus 0.9%) and Capacity Utilization (Briefing.com consensus 72.3%) for October will be released at 9:15 a.m. ET, Business Inventories (Briefing.com consensus 0.5%) and the NAHB Housing Market Index for November (Briefing.com consensus 85) will be released at 10:00 a.m. ET, and Net Long-term TIC Flows for September will be released at 4:00 p.m. ET.

U.S. Treasuries have edged higher, pushing yields slightly lower. The 2-yr yield is down one basis point to 0.17%, and the 10-yr yield is down two basis points to 0.88%. The U.S. Dollar Index is down 0.3% to 92.40. WTI crude futures are down 0.3% to $41.21/bbl.

In U.S. Corporate news:

Tesla (TSLA 462.01, +53.92): +13.2% on news that it'll join the S&P 500 on Dec. 21.

Walgreens Boots Alliance (WBA 38.89, -5.21): -11.8% after Amazon (AMZN 3209.00, +77.94, +2.4%) said its pharmacy business will debut today. CVS Health (CVS 66.65, -6.82, -9.3%) is down 9%.

Home Depot (HD 274.00, -5.57): -2.0% despite beating top and bottom-line estimates.

Walmart (WMT 153.58, +1.14): +0.8% after beating top and bottom-line estimates.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.2%, India's Sensex: +0.7%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: +0.2%.

In economic data:

Hong Kong's October Unemployment Rate 6.4% (last 6.4%)

Singapore's October trade surplus SGD4.36 bln (last surplus of SGD3.10 bln). October non-oil exports -5.3% m/m (expected 4.6%; last -11.4%); -3.1% yr/yr (expected 5.7%; last 5.8%)

In news:

Samsung is reportedly making a push to catch up with Taiwan Semiconductor Manufacturing Company over the next two years.

The latest policy minutes from the Reserve Bank of Australia showed a discussion about readiness to increase easing efforts.

Reports from Japan indicate that the country's third extra budget will be between JPY10 trln and JPY15 trln.

Major European indices trade on a mostly lower note while Italy's MIB (+0.4%) outperforms. STOXX Europe 600: -0.4%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -1.1%, France's CAC 40: -0.3%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: -1.2%.

In economic data:

Italy's September trade surplus EUR5.849 bln (last surplus of EUR3.929 bln)

In news:

There has been growing speculation that the U.K. will extend its lockdown past December 2.

Separate reports suggest that Brexit negotiators have made some progress and a trade deal could be presented early next week.

Poland and Hungary vetoed the EU rescue fund yesterday due to concerns about impact on sovereignty.

U.S equity futures:

S&P 500 Futures -22 @ 3601

DJIA Futures -210 @ 29655

Nasdaq Futures +27 @ 12032

Overseas:

Europe: DAX -0.3%, FTSE -1.1%, CAC -0.3%

Asia: Nikkei +0.4%, Hang Seng +0.1%, Shanghai -0.2%

Commodities:

Crude Oil +1.74 @ 41.87

Nat Gas -0.139 @ 2.856

Gold -12.10 @ 1874.10

Silver -0.270 @ 24.505

Copper +0.0672 @ 3.2452

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

Agora (API) reports Q3 results, beats on revs; guides FY20 revs in-line

Aramark (ARMK) misses by $0.02, reports revs in-line

Baidu (BIDU) beats by $7.27, beats on revs; guides Q4 revs in-line

Evoqua Water (AQUA) beats by $0.04, beats on revs

GAN Limited (GAN) reports Q3 results, beats on revs; guides FY20 revs above consensus

GDS Holdings (GDS) reports Q3 (Sep) results, beats on revs; guides FY20 revs in-line

Home Depot (HD) beats by $0.16, beats on revs

iQIYI (IQ) beats by $1.00, reports revs in-line; guides Q4 revs in-line

JOYY (YY) beats by $0.32, beats on revs

KE Holdings (BEKE) beats by $0.28, beats on revs; guides Q4 revs in-line

Kohl's (KSS) beats by $0.45, beats on revs

MSG Entertainment (MSGE) reports Q1 (Sep) results, misses on revs

Sea Limited (SE) reports Q3 (Sep) results, misses on revs; raises outlook

Simulations Plus (SLP) beats by $0.01, beats on revs

SmileDirectClub (SDC) beats by $0.03, beats on revs

Summit Therapeutics (SMMT) reports Q3 net loss per share of ($0.26) vs. ($0.19) single analyst estimate; revenue of $181K

Walmart (WMT) beats by $0.15, beats on revs; Q3 comps +6.4%

General News:

US COVD-19 hospitalizations hit another record high

President Trump considered options last week for an attack against Iran's main nuclear site, but his advisers recommended against it, according to the New York Times

Airbnb (ABNB) files IPO prospectus on Form S-1; to list shares on Nasdaq under symbol "ABNB"

Alkermes (ALKS) receives FDA Complete Response Letter related to ALKS 3831 manufacturing records review

Amazon (AMZN) announced two new pharmacy offerings to help customers conveniently purchase their prescription medications

Apple (AAPL) suppliers increasing output, according to Digitimes

AVROBIO (AVRO) announces new positive clinical data and preclinical data, as well as expanded leading lysosomal disorder gene therapy pipeline

AXT (AXTI) details strategic plan to access China's markets

Bayer AG (BAYRY) reports Finerenone showed consistent benefits on cardiovascular outcomes in patients with chronic kidney disease and type 2 diabetes

Bayer AG (BAYRY) presents FIDELIO-DKD Phase III study cardiovascular subgroup analysis of patients with chronic kidney disease and type 2 diabetes

BeiGene (BGNE) announces that RATIONALE 303 trial of tislelizumab in non-small cell lung cancer met the primary endpoint of overall survival at interim analysis

Boston Scientific (BSX) has initiated a global, voluntary recall of all unused inventory of the LOTUS Edge Aortic Valve System due to complexities associated with the product delivery system

Brainstorm Cell Therapeutics (BCLI) announces topline results from NurOwn Phase 3 ALS study; Clinical trial did not meet statistical significance in primary efficacy endpoin

Bristol-Myers (BMY) provides regulatory update on BLA for liso-cel; FDA review will not be completed by PDUFA action date of November 16

CareDx (CDNA) receives Medicare reimbursement pricing for AlloSure Heart

Cinemark (CNK) and Comcast's (CMCSA) Universal Filmed Entertainment Group announce dynamic release window agreement

Co-Diagnostics (CODX) receives CE markings for "ABC" and SARS-CoV-2 2-gene multiplex tests

Commvault Systems (CVLT): Starboard (Jeffrey C. Smith) increases active stake to 9.5% (prior ~9.2%)

Costco (COST) declares special cash dividend of $10 per share

CureVac (CVAC) establishes European-based network to ramp up manufacturing of its COVID-19 vaccine candidate, CVnCoV

CymaBay Therapeutics (CBAY) announces presentation of results from ENHANCE Phase 3 study of seladelpar for PBC

Ecopetrol (EC) announces agreement between its subsidiaries Cenit and Bicentenario and Frontera

Eiger BioPharmaceuticals (EIGR) releases presentation of two case studies from the completed Phase 2 LIMT trial

Eli Lilly (LLY): Samsung Biologics announces strategic manufacturing partnership with Lilly to accelerate delivery of COVID-19 antibody treatments

Facebook (FB) and Twitter (TWTR) will testify to Senate today, according to Bloomberg

Fisker (FSR) and Magna (MGA) announce engineering and purchasing milestones

GameStop (GME) shareholder Ryan Cohen calls for company to undertake strategic review, according to the Wall Street Journal

General Dynamics (GD) awarded $9.5 bln Navy contract

Hologic (HOLX) receives CE Mark of the Genius Digital Diagnostics System

Intl Game Tech. PLC (IGT) subsidiary signs seven-year base contract with the Nebraska Lottery

Lexicon Pharma (LXRX) reports SOLOIST and SCORED Phase 3 studies achieved their primary endpoints

Neptune Wellness Solutions (NEPT) announces receipt of over US$100 mln in purchase orders

Pfizer (PFE) to start pilot delivery of coronavirus vaccine in 4 states, according to Reuters

Qiagen (QGEN) launches NeuMoDx multiplex test to complete range of SARS-CoV-2 testing solutions in Europe and other markets

RedHill Biopharma's (RDHL) second COVID-19 Candidate, RHB-107, cleared by FDA for Phase 2/3 study in symptomatic COVID-19 disease

Repro Med Systems (KRMD) authorizes $10 mln common stock repurchase program

Rigel Pharma (RIGL) finalizes the study design of its ongoing phase 3 clinical trial of fostamatinib in warm autoimmune hemolytic anemia; FDA agrees to the proposed primary efficacy endpoint and additional secondary endpoints

Sanofi Canada (SNY) announced that Health Canada approved a new indication for DUPIXENT (dupilumab injection) as an add-on maintenance treatment for severe asthma with a type 2 / eosinophilic phenotype or oral corticosteroid-dependent asthma

Science Applications (SAIC) was awarded a task order worth up to $973 mln by U.S. Customs and Border Protection

Scorpio Bulkers (SALT) enters into agreements to sell Kamsarmax vessels for approx. $101.5 mln

Tesla (TSLA) to join the S&P 500, effective prior to the open on December 21

Universal Insurance (UVE) declares special cash dividend of $0.13/share

Veeva Systems (VEEV) announced that Bristol Myers Squibb (BMY) is adopting Veeva Vault PromoMats to deliver content across all digital channels to meet their customers' needs

Vermilion Energy (VET) COO Michael Kaluza has stepped down effective immediately

Verrica Pharmaceuticals (VRCA) announces receipt of final FDA minutes following type A meeting regarding resubmission of the NDA for VP-102 in molluscum

Zymeworks (ZYME) announces clinical collaboration with ALX Oncology (ALXO)

M&A:

Autodesk (ADSK) to acquire Spacemaker for $240 million net of cash

Baidu (BIDU) agrees to acquire JOYY's (YY) live streaming business in China for approx. US$3.6 bln in cash

CAE (CAE) acquires flight simulation company for approximately C$108; expected to be accretive to earnings in first full year

GAN Limited (GAN) announces agreement to acquire Coolbet for a total consideration of approx. 149 mln

Installed Building Products (IBP) acquires WeatherSeal Insulation; terms not disclosed

Paramount Group (PGRE) rejects unsolicited acquisition proposal from Bow Street

Syndicate:

Berkeley Lights (BLI) announces launch of common stock offering of 3.0 mln shares to be sold by certain selling stockholders

CAE (CAE) announces $300 mln public offering of common shares and concurrent $150 mln private placement with CDPQ

Emerson (EMR) files mixed securities shelf offering

Hutchison China MediTech (HCM) entered into a definitive agreement for the sale of $100 mln of shares at a price equivalent to $30 per ADS via a private placement to Canada Pension Plan Investment Board

Jamf Holding (JAMF) commences public follow-on offering of 10.0 mln common shares by selling shareholders

KE Holdings (BEKE) files for offering of 35.4 ADS representing 106,200,000 Class A ordinary shares

Kodiak Sciences (KOD) announces public offering of $400.0 mln of its common shares

LendingTree (TREE) prices offering of 2,955,984 shares of common stock by Selling Stockholder at $295.00 per share

Orgenesis (ORGS) files for 4,825,962 share common stock offering by holders

Ormat Tech (ORA) announced the launch of an underwritten public offering of 4,150,000 shares of its common stock

Ormat Tech (ORA) also filed mixed securities shelf offering

Pinduoduo (PDD) proposes offering of convertible senior notes and offering of 22 mln american depositary shares

Playa Hotels & Resorts (PLYA) announces secondary offering of 12.5 mln ordinary shares by selling stockholders

Plug Power (PLUG) prices offering of 38 mln shares of common stock at $22.25 per share

Sequans Communications (SQNS) files for $100 mln mixed securities shelf offering and offering of 8 mln ADS by certain selling securityholders

STAG Industrial (STAG) prices offering of 8 mln shares of common stock for gross proceeds of $243.2 mln

Transcat (TRNS) files $75 mln mixed securities shelf offering

Veritiv (VRTV) prices offering of 1.4 mln shares of common stock by selling shareholders at $18.50 per share

IPOs:

Expected to Price:

Aspire Real Estate Investors (NYSE: ASPI): The REIT developing and managing a portfolio of affordable and workforce multifamily housing in Opportunity Zones is expected to price its 15.0 M share IPO at $20.

Maravai Life Sciences (Nasdaq: MRVI): The life sciences company providing critical products to enable the development of drug therapies, diagnostics and novel vaccines is expected to price its 50.0 M share IPO between $24-$27.

NeoGames (Nasdaq: NGMS): The global B2G and B2B technology and service provider to state lotteries and other lottery operators is expected to price its 4.8 M share IPO between $14-$16.

Sotera Health Company (Nasdaq: SHC): The global provider of mission-critical sterilization and lab testing and advisory services is expected to price its 46.6 M share IPO between $20-$23.

Yasten Holding (NYSE: YSG): The leader in the China beauty market with three color cosmetics and skincare brands is expected to price its 58.8 M ADS IPO between $8.5-$10.50.

Gapping Up/Down

Gapping up:

LXRX +56.6%, SQNS +15.8%, NEPT +13.6%, TSLA +12.4%, YY +8.8%, PGRE +8.6%, KRMD +6.2%, AXTI +4.5%, BMY +2.9%, COST +1.9%, FSR +0.7%, ADSK +0.5%

Gapping down:

SMMT -14.5%, PLUG -10.4%, IQ -9.9%, GDRX -9.7%, WBA -9.3%, API -8%, TREE -6.9%, CVS -6.5%, ORA -5.7%, PDD -5.2%, SDC -4.6%, KOD -4%, PLYA -3.8%, VRTV -3.5%, STAG -3.4%, CAE -3.4%, JAMF -3.2%, SE -3.2%, HD -3.1%, BSX -2.7%, BEKE -2.1%, BIDU -1.9%, SLP -1.4%

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

Upgrades:

Banco Bilbao Vizcaya Argentaria (BBVA) upgraded to Neutral from Underperform at Credit Suisse

Boot Barn Holdings (BOOT) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $49

Capri Holdings (CPRI) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $45

Chevron (CVX) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt $95

Devon Energy (DVN) upgraded to Overweight from Equal-Weight at Morgan Stanley

Glaukos (GKOS) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $68

KB Home (KBH) upgraded to Neutral from Underweight at JP Morgan; tgt $44

Downgrades:

Adient (ADNT) downgraded to Underperform from Buy at BofA Securities

Aptiv (APTV) downgraded to Underperform from Buy at BofA Securities

Casper Sleep (CSPR) downgraded to Underperform from Neutral at BofA Securities; tgt $5.50

Cerence (CRNC) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $72

Chico's FAS (CHS) downgraded to Neutral from Buy at B. Riley Securities; tgt $1.50

Concho Resources (CXO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $56

Diffusion Pharmaceuticals (DFFN) downgraded to Neutral from Buy at H.C. Wainwright

Foundation Building Materials (FBM) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $19

Foundation Building Materials (FBM) downgraded to Mkt Perform from Strong Buy at Raymond James

GMS (GMS) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $36

GMS (GMS) downgraded to Mkt Perform from Strong Buy at Raymond James

HD Supply Holdings (HDS) downgraded to Mkt Perform from Outperform at Raymond James

iRhythm (IRTC) downgraded to Perform from Outperform at Oppenheimer

KAR Auction Services (KAR) downgraded to Underperform from Neutral at BofA Securities

Las Vegas Sands (LVS) downgraded to Hold from Buy at HSBC Securities; tgt raised to $53

LGI Homes (LGIH) downgraded to Underweight from Neutral at JP Morgan; tgt $129

Others:

Allstate (ALL) initiated with an Overweight at Barclays; tgt $107

American Intl (AIG) initiated with an Equal Weight at Barclays; tgt $39

Brighthouse Financial (BHF) initiated with a Underweight at Barclays; tgt $37

Chubb (CB) initiated with an Overweight at Barclays; tgt $171

Delta Air Lines (DAL) initiated with a Hold at Jefferies; tgt $40

Farfetch (FTCH) initiated with an Overweight at Morgan Stanley; tgt $65

First Financial Northwest (FFNW) initiated with an Overweight at Piper Sandler; tgt $14

Foghorn Therapeutics (FHTX) initiated with a Buy at Goldman; tgt $27

Foghorn Therapeutics (FHTX) initiated with an Outperform at Cowen

Foghorn Therapeutics (FHTX) initiated with an Outperform at Wedbush; tgt $24

Goosehead Insurance (GSHD) resumed with a Neutral at BofA Securities; tgt $133

Hartford Financial (HIG) initiated with an Overweight at Barclays; tgt $51

Lincoln National (LNC) initiated with an Equal Weight at Barclays; tgt $44

Southwest Air (LUV) initiated with a Buy at Jefferies; tgt $55

Upcoming Events:

Econ Data:

08:30 ET: Retail Sales for October (Briefing.com Consensus 0.5%; Prior 1.9%)

08:30 ET: Retail Sales ex-auto for October (Briefing.com Consensus 0.6%; Prior 1.5%)

08:30 ET: Import Prices for October (Briefing.com Consensus NA; Prior 0.3%)

08:30 ET: Import Prices ex-oil for October (Briefing.com Consensus NA; Prior 0.6%)

08:30 ET: Export Prices for October (Briefing.com Consensus NA; Prior 0.6%)

08:30 ET: Export Prices ex-ag for October (Briefing.com Consensus NA; Prior 0.3%)

09:15 ET: Industrial Production for October (Briefing.com Consensus 0.9%; Prior -0.6%)

09:15 ET: Capacity Utilization for October (Briefing.com Consensus 72.3%; Prior 71.5%)

10:00 ET: Business Inventories for September (Briefing.com Consensus 0.5%; Prior 0.3%)

10:00 ET: NAHB Housing Market Index for November (Briefing.com Consensus 85; Prior 85)

16:00 ET: Net Long-Term TIC Flows for September (Briefing.com Consensus NA; Prior $27.8B)

Earnings:

Monday (Nov 16)

Morning: ACM AZUL CSPR JD PANW TSN

Afternoon: API BIDU GAN GDS IQ YY MSGE SDC

Tuesday (Nov 17)

Morning: ARMK AQUA HD KSS SE WMT

Afternoon: LZB NIO VREX

Wednesday (Nov 18)

Morning: AVYA BV KC LOW SR TGT TJX

Afternoon: BILI CPA CPRT CUB JACK KEYS KLIC LB NUAN NVDA PAGS SCVL SQM SONO UGI ZTO

Thursday (Nov 19)

Morning: ATKR BERY BJ BRC CSIQ M MMS NTES

Afternoon: BECN BEST CAL ESE HP INTU POST ROST WSM WWD WDAY

Friday (Nov 20)

Morning: BKE FL GSX HHR HIBB

Asia & Europe detail:

Asia: Nikkei +0.4%, Hang Seng +0.1%, Shanghai -0.2%

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Samsung is reportedly making a push to catch up with Taiwan Semiconductor Manufacturing Company over the next two years. The latest policy minutes from the Reserve Bank of Australia showed a discussion about readiness to increase easing efforts. Reports from Japan indicate that the country's third extra budget will be between JPY10 trln and JPY15 trln.

In economic data:

Hong Kong's October Unemployment Rate 6.4% (last 6.4%)

Singapore's October trade surplus SGD4.36 bln (last surplus of SGD3.10 bln). October non-oil exports -5.3% m/m (expected 4.6%; last -11.4%); -3.1% yr/yr (expected 5.7%; last 5.8%)

---Equity Markets---

Japan's Nikkei: +0.4%

Hong Kong's Hang Seng: +0.1%

China's Shanghai Composite: -0.2%

India's Sensex: +0.7%

South Korea's Kospi: -0.2%

Australia's ASX All Ordinaries: +0.2%

---FX---

USD/JPY: -0.3% to 104.25

USD/CNH: -0.3% to 6.5506

USD/INR: +0.2% to 74.48

Europe: DAX -0.3%, FTSE -1.1%, CAC -0.3%

Major European indices trade on a mostly lower note while Italy's MIB (+0.4%) outperforms. There has been growing speculation that the U.K. will extend its lockdown past December 2. Separate reports suggest that Brexit negotiators have made some progress and a trade deal could be presented early next week. Poland and Hungary vetoed the EU rescue fund yesterday due to concerns about impact on sovereignty.

Economic data was limited:

Italy's September trade surplus EUR5.849 bln (last surplus of EUR3.929 bln)

---Equity Markets---

STOXX Europe 600: -0.4%

Germany's DAX: -0.3%

U.K.'s FTSE 100: -1.1%

France's CAC 40: -0.3%

Italy's FTSE MIB: +0.4%

Spain's IBEX 35: -1.2%

---FX---

EUR/USD: +0.2% to 1.1873

GBP/USD: +0.5% to 1.3260

USD/CHF: -0.3% to 0.9104