DAILY MORNING CHAI REPORT

 U.S. equity index futures trade near record territory in this abbreviated trading session, which ends at 1:00 p.m. ET. Currently, the S&P 500 futures trade nine points, or 0.3%, above fair value.

Market participants will not receive any U.S. data today and trading volume is expected to be on the light side. Retail stocks might be in focus with Black Friday looking like more of an online shopping event this year for obvious reasons. The SPDR S&P Retail ETF (XRT 61.00, +0.31, +0.5%) is up 5.4% this week and 21.8% this month.

The coronavirus situation remains dire with cases still relatively high and many businesses facing restrictions, but investors continue to look ahead to better times in 2021 with low rates, a vaccine, and divided government. In turn, there is apt to be emotional factors in the mix like performance-chasing activity.

U.S. Treasuries have edged higher, pushing yields slightly lower. The 2-y yield is down one basis point to 0.15%, and the 10-yr yield is down two basis points to 0.86%. The U.S. Dollar Index is little changed at 91.99. WTI crude futures are down 0.7% to $45.40/bbl.

In U.S. Corporate news:

Moderna (MRNA 116.00, +6.82): +6.3%, extending its recent gains following Wednesday's news that the European Commission approved an advance purchase agreement for an initial 80 mln doses of the company's vaccine.

AstraZeneca (AZN 51.70, -0.90): -1.7% after acknowledging a mistake in its vaccine dosages for its COVID-19 trial.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +1.1%, India's Sensex: -0.3%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -0.5%.

In economic data:

China's October Industrial Profit 28.2% yr/yr (last 10.1%); 0.7% ytd (last -2.4%)

Japan's November Tokyo CPI -0.7% yr/yr (last -0.3%) and Tokyo Core CPI -0.7% yr/yr (expected -0.7%; last -0.5%). BoJ Core CPI -0.7% yr/yr (last -0.5%)

In news:

Japan's CPI contracted at its fastest pace in eight years in the November reading.

Japan's ruling party intends to extend the country's zero-interest loan scheme through March and support the development of electric vehicles.

China will impose anti-dumping duties on Australian wine.

Major European indices trade in mixed fashion. STOXX Europe 600: UNCH, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.5%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.5%.

In economic data:

Eurozone's November Business and Consumer Survey 87.6 (expected 86.5; last 91.1)

Germany's October Import Price Index 0.3% m/m (last 0.3%); -3.9% yr/yr (expected -4.1%; last -4.3%)

France's October Consumer Spending 3.7% m/m (expected 2.9%; last -4.4%). Q3 GDP 18.7% qtr/qtr (expected 18.2%; last 13.7%). October PPI 0.1% m/m (last 0.3%) and October CPI 0.2% m/m (expected 0.0%; last 0.0%); 0.2% yr/yr (expected 0.1%; last 0.0%)

Italy's October PPI 0.6% m/m (last 0.1%); -2.5% yr/yr (last -3.1%). November Business Confidence 90.2 (expected 93.5; last 94.7) and November Consumer Confidence 98.1 (expected 99.0; last 101.7)

Spain's October Retail Sales -2.7% yr/yr (last -3.3%) and November Business Confidence -7.7 (last -9.2)

In news:

Trade negotiators from the European Union and the United Kingdom are still trying to finalize the post-Brexit trade deal. The two sides will continue discussing fishing rights over the weekend.

Scotland's First Minister Sturgeon is reportedly seeking a new independence referendum in the early part of the next parliamentary session.

Germany's finance minister said that borrowing in 2020 and 2021 will total just over EUR300 bln.

Leaders from Hungary and Poland indicated that they intend to uphold their veto of the EU budget.

U.S equity futures:

S&P 500 Futures +10 @ 3637

DJIA Futures +71 @ 29899

Nasdaq Futures +47 @ 12200

Overseas:

Europe: DAX +0.2%, FTSE -0.5%, CAC +0.5%

Asia: Nikkei +0.4%, Hang Seng +0.3%, Shanghai +1.1%

Commodities:

Crude Oil -0.41 @ 45.30

Nat Gas -0.003 @ 2.958

Gold -2.10 @ 1803.40

Silver -0.232 @ 23.130

Copper +0.0815 @ 3.3910

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

No earnings reports.

General News:

US COVID-19 hospitalizations hit record high; cases fall due to slow Thanksgiving holiday reporting

Israel preparing for potential US military strike on Iran, according to Axios

Supreme Court blocks New York's coronavirus restrictions on religious services, according to the New York Times

Joe Biden could select Roger Ferguson to be his National Economic Council director, according to CNBC

Thanksgiving online sales were just under $6 bln, up 33% yr/yr, according to TechCrunch

Home borrowers in COVID-19 bailouts rise 27% to 2.78 mln, according to CNBC

DOJ is looking at Senator David Perdue's recent stock trades. Mr. Perdue is running for Senate in one of the Georgia run offs, according to the New York Times

President Trump says he will leave White House if electoral college votes for Joe Biden, according to The Hill

Airline passengers on Wednesday reach highest level since March

Germany extends partial shutdown to curb COVID cases, according to multiple news reports

Amazon (AMZN) workers in Germany to strike on Friday, according to the New York Post

Aphria (APHA) announced the expansion of its 510 Vape offering across its award-winning adult-use brand portfolio

AstraZeneca (AZN): Lynparza receives Health Canada Approval for the treatment of BRCA or ATM gene-mutated metastatic castration-resistant prostate cancer

AstraZeneca (AZN) acknowledges mistake in vaccine dosages, according to the New York Times

AstraZeneca (AZN) aiming to run another global vaccine test, according to Bloomberg

Biogen (BIIB) and Sage Therapeutics (SAGE) announce global collaboration to develop and commercialize potential breakthrough therapies in depression and movement disorders

Blackstone (BX) and Carlyle (CG) mulling bids for Fancl's Asia business outside Japan, according to Reuters

Canon (CAJ) announced that it identified and addressed a data security incident

Edison International (EIX) began cutting power to homes and businesses in Southern California amid wildfire risk, according to Bloomberg

Facebook (FB): UK wants more competition rules for Facebook and Google (GOOG), according to Reuters

FibroGen (FGEN) and Astellas (ALPMY) receive approval of EVRENZO (roxadustat) in Japan for the treatment of anemia of chronic kidney disease in adult patients not on dialysis

Northrop Grumman (NOC) has been awarded a $4.8 bln contract for Global Hawk development, modernization, retrofit and sustainment activities for all Air Force Global Hawk variants

Protalix BioTherapeutics (PLX) and Chiesi Global Rare Diseases announce extension of PDUFA date for pegunigalsidase alfa for the proposed treatment of Fabry disease

Rhythm Pharmaceuticals (RYTM) announces FDA Approval of IMCIVREE (setmelanotide) as first-ever therapy for chronic weight management in patients with obesity due to POMC, PCSK1 or LEPR deficiency

STMicroelectronics (STM) announced their agreement to establish a joint laboratory in YTO's Research Institute of Intelligence and Information in Luoyang, Henan province

trivago (TRVG): Altimeter Capital discloses 4.2% stake

Vertex Pharma (VRTX) announces European Commission approval for SYMKEVI with KALYDECO for eligible children with cystic fibrosis ages 6-11 years

Walt Disney (DIS) discloses in 10K filing it will eliminate 32,000 jobs in H1 of 2021

Y-mAbs Therapeutics (YMAB) announces that the FDA has approved DANYELZA for neuroblastoma in the bone or bone marrow

M&A:

Alibaba (BABA) and Tencent (TCEHY) put discussions to acquire iQIYI (IQ) on hold, according to Reuters

Landcadia Holdings II (LCA) receives New Jersey regulatory approval to acquire Golden Nugget Online Gaming

Syndicate:

Cerevel Therapeutics (CERE) files for 42,437,330 share common stock offering by selling shareholders

ESSA Pharma (EPIX) files for 7.37 mln share common stock offering by selling shareholders

Green Brick Partners (GRBK) files for $500 mln mixed securities shelf offering; also files for 24,118,668 share common stock offering by selling shareholders

iBio (IBIO) files for $200 mln mixed securities shelf offering

Quantum (QMCO) files for $200 mln mixed securities shelf offering

IPOs:

Expected to Price:

No IPOs expected to price.

Gapping Up/Down

Gapping up: APXT +33.3%, SFT +23.6%, TOUR +13.3%, YMAB +10.5%, LCA +8%, CERE +7.2%, SPCE +7%, AMCX +5.6%, QS +3.7%, GPS +2.5%, ORAN +2.2%, FCX +2.2%, BBY +1.8%, DKNG +1.6%, NOC +1%

Gapping down: RIOT -17.9%, YJ -15.4%, CAN -9.1%, MSTR -8.1%, LI -5.1%, KNDI -4.8%, XPEV -4.5%, WORK -4.2%, NKLA -4.1%, FCEL -2.4%, GRBK -1.8%, BHP -1.8%

Upcoming Events:

Econ Data:

No economic data.

Earnings:

Monday (Nov 23)

Morning: BZUN KFY TWST WMG

Afternoon: A AMBA CBT ENTA NTNX URBN

Tuesday (Nov 24)

Morning: ANF AMWD ADI PLAN BBY BURL CHS SJM DKS DLTR DY EV HRL MDT TIF TITN

Afternoon: AEO ADSK DELL GPS HPQ JWN PSTG VMW

Wednesday (Nov 25)

Morning: DE FRO

Thursday (Nov 26)

Holiday

Friday (Nov 27)

None

Asia & Europe detail:

Asia: Nikkei +0.4%, Hang Seng +0.3%, Shanghai +1.1%

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's CPI contracted at its fastest pace in eight years in the November reading. Japan's ruling party intends to extend the country's zero-interest loan scheme through March and support the development of electric vehicles. China will impose anti-dumping duties on Australian wine.

In economic data:

China's October Industrial Profit 28.2% yr/yr (last 10.1%); 0.7% ytd (last -2.4%)

Japan's November Tokyo CPI -0.7% yr/yr (last -0.3%) and Tokyo Core CPI -0.7% yr/yr (expected -0.7%; last -0.5%). BoJ Core CPI -0.7% yr/yr (last -0.5%)

---Equity Markets---

Japan's Nikkei: +0.4% (+4.4% for the week)

Hong Kong's Hang Seng: +0.3% (+1.7% for the week)

China's Shanghai Composite: +1.1% (+0.9% for the week)

India's Sensex: -0.3% (+0.6% for the week)

South Korea's Kospi: +0.3% (+3.1% for the week)

Australia's ASX All Ordinaries: -0.5% (+1.1% for the week)

---FX---

USD/JPY: -0.1% to 104.13

USD/CNH: +0.1% to 6.5713

USD/INR: +0.3% to 74.01

Europe: DAX +0.2%, FTSE -0.5%, CAC +0.5%

Major European indices trade in mixed fashion. Trade negotiators from the European Union and the United Kingdom are still trying to finalize the post-Brexit trade deal. The two sides will continue discussing fishing rights over the weekend. Scotland's First Minister Sturgeon is reportedly seeking a new independence referendum in the early part of the next parliamentary session. Germany's finance minister said that borrowing in 2020 and 2021 will total just over EUR300 bln. Leaders from Hungary and Poland indicated that they intend to uphold their veto of the EU budget.

In economic data:

Eurozone's November Business and Consumer Survey 87.6 (expected 86.5; last 91.1)

Germany's October Import Price Index 0.3% m/m (last 0.3%); -3.9% yr/yr (expected -4.1%; last -4.3%)

France's October Consumer Spending 3.7% m/m (expected 2.9%; last -4.4%). Q3 GDP 18.7% qtr/qtr (expected 18.2%; last 13.7%). October PPI 0.1% m/m (last 0.3%) and October CPI 0.2% m/m (expected 0.0%; last 0.0%); 0.2% yr/yr (expected 0.1%; last 0.0%)

Italy's October PPI 0.6% m/m (last 0.1%); -2.5% yr/yr (last -3.1%). November Business Confidence 90.2 (expected 93.5; last 94.7) and November Consumer Confidence 98.1 (expected 99.0; last 101.7)

Spain's October Retail Sales -2.7% yr/yr (last -3.3%) and November Business Confidence -7.7 (last -9.2)

---Equity Markets---

STOXX Europe 600: UNCH (+0.6% week-to-date)

Germany's DAX: +0.2% (+1.4% week-to-date)

U.K.'s FTSE 100: -0.5% (-0.3% week-to-date)

France's CAC 40: +0.5% (+1.8% week-to-date)

Italy's FTSE MIB: +0.4% (+2.7% week-to-date)

Spain's IBEX 35: +0.5% (+2.1% week-to-date)

---FX---

EUR/USD: +0.1% to 1.1917

GBP/USD: -0.2% to 1.3326

USD/CHF: +0.2% to 0.9080