DAILY MORNING CHAI REPORT

 The S&P 500 futures trade 26 points, or 0.7% above fair value as the market continues to follow the leadership of the value, cyclical, and small-cap The S&P 500 futures trade 26 points, or 0.7% above fair value as the market continues to follow the leadership of the value, cyclical, and small-cap stocks. Presumably, the market is feeling more certain about the next presidential administration and improved economic growth in 2021.

Last night, the General Services Administration formally began the presidential transition process to Joe Biden, although it's worth mentioning that President Trump has yet to concede the race. The market is not worried about the latter and is instead looking forward to a predictable government next year in which former Fed Chair Yellen is the Treasury Secretary.

The latter isn't confirmed yet, but the market reacted positively to reports of her potential nomination yesterday since she is perceived to be more dovish and an advocate for more fiscal stimulus. Interestingly, though, despite all the good news over the past couple of weeks, the S&P 500 remains below its Nov. 9 all-time high.

On the data front, investors will receive the FHFA Housing Price Index for November and the S&P Case-Shiller Home Price Index for September (Brieifng.com consensus 5.5%) at 9:00 a.m. ET, followed by the Conference Board's Consumer Confidence Index for November (Briefing.com consensus 96.5) at 10:00 a.m. ET.

U.S. Treasuries trade little changed. The 2-yr yield is down one basis point to 0.16%, and the 10-yr yield is flat at 0.86%. The U.S. Dollar Index is down 0.1% to 92.39. WTI crude futures are up 1.0%, or $0.43, to $43.49/bbl.

In U.S. Corporate news:

Best Buy (BBY 118.50, -3.54): -2.9% despite beating top and bottom-line estimates.

Hormel Foods (HRL 48.00, -2.03): -4.1% after missing top and bottom-line estimates.

Nutanix (NTNX 31.60, +3.13): +11.0% after beating top and bottom-line estimates.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +2.5%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -0.3%, India's Sensex: +1.0%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: +1.2%.

In economic data:

South Korea's November Consumer Confidence 97.9 (last 91.6)

Hong Kong's October trade deficit HKD36.80 bln (last deficit of HKD12.70 bln). Imports 0.6% m/m (last 3.4%) and exports -1.1% m/m (last 9.1%)

In news:

Press reports suggest that Japan's third extra budget will exceed JPY20 trln.

Japan's Prime Minister Suga called on Japan Airlines and All Nippon Airways to merge.

Korean Airlines CEO said that a merger of Korean Airlines and Asiana may generate profit of KRW300 bln.

Hong Kong's Chief Executive Lam postponed her annual policy address in favor of a visit to the mainland.

Major European indices trade in positive territory. STOXX Europe 600: +0.6%, Germany's DAX: +0.9%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.5%, Spain's IBEX 35: +1.0%.

In economic data:

Germany's Q3 GDP 8.5% qtr/qtr (expected 8.2%; last -9.7%); -3.9% yr/yr (expected -4.1%; last -11.3%). November ifo Business Climate Index 90.7 (expected 90.1; last 92.5). November Current Assessment 90.0 (expected 87.0; last 90.4) and Business Expectations 91.5 (expected 93.5; last 94.7)

U.K.'s November CBI Distributive Trades Survey -25 (expected -35; last -23)

France's November Business Survey 92 (expected 91; last 94)

In news:

British Prime Minister Johnson said that the country's national lockdown will end on December 2.

Economists from Germany's ifo Institute said that industries fared relatively well at the start of recent lockdown measures.

Germany's DAX index will be expanded to 40 components from 30 in September.

U.S equity futures:

S&P 500 Futures +27 @ 3603

DJIA Futures +308 @ 29854

Nasdaq Futures +31 @ 11937

Overseas:

Europe: DAX +0.9%, FTSE +1.0%, CAC +1.2%

Asia: Nikkei +2.5%, Hang Seng +0.4%, Shanghai -0.3%

Commodities:

Crude Oil +0.58 @ 43.64

Nat Gas +0.042 @ 2.865

Gold -30.15 @ 1807.65

Silver -0.481 @ 23.152

Copper +0.0543 @ 3.3123

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

Abercrombie & Fitch (ANF) beats by $0.80, beats on revs

Agilent (A) beats by $0.04, beats on revs; guides JanQ EPS below consensus, revs above consensus; guides FY21 EPS below consensus, revs in-line

Ambarella (AMBA) beats by $0.04, beats on revs; guides Q4 revs above consensus

American Woodmark (AMWD) beats by $0.12, reports revs in-line

Anaplan (PLAN) beats by $0.05, beats on revs; guides Q4 revs above consensus

Best Buy (BBY) beats by $0.34, beats on revs; Q3 comps +22.6%

Burlington Stores (BURL) beats by $0.13, beats on revs

Cabot (CBT) beats by $0.11, misses on revs; guides Q1 EPS above two analyst estimate

Cango (CANG) reports Q3 results, revs above prior guidance

Chico's FAS (CHS) reports Q3 (Oct) results, misses on revs

Datto Holding (MSP) misses by $0.01, revenue inline, issues upside Q4 revenue guidance

Dick's Sporting Goods (DKS) beats by $0.79, beats on revs

Dollar Tree (DLTR) beats by $0.23, reports revs in-line; Q3 comps +5.1%; not providing guidance

Dycom (DY) beats by $0.01, reports revs in-line

Enanta Pharmaceuticals (ENTA) reports Q4 results, misses on revs, provides clinical update

Hormel Foods (HRL) misses by $0.02, misses on revs

Jacobs Engineering (J) beats by $0.31, beats on revs; reaffirms FY21 EPS guidance

J.M. Smucker (SJM) beats by $0.16, reports revs in-line; guides FY21 EPS in-line, revs above consensus

LexinFintech (LX) beats by $0.36, beats on revs

Medtronic (MDT) beats by $0.22, beats on revs; not providing guidance

Nutanix (NTNX) beats by $0.13, beats on revs

Tiffany & Co (TIF) beats by $0.45, beats on revs

Titan Machinery (TITN) beats by $0.23, beats on revs; guides FY21 EPS above consensus

Urban Outfitters (URBN) beats by $0.34, beats on revs

General News:

US COVID-19 cases rise slightly week/week as positivity rate falls; hospitalizations hit record; deaths rise

General Services Administration formally begins presidential transition process to Joe Biden

Europe is getting ready to ease lockdowns ahead of Christmas holiday, according to the Wall Street Journal

Biden's top tech adviser could mean more regulation for tech companies, according to Reuters

Michigan certifies state election results with Joe Biden as winner

UK mulling Huawei installation ban next year, according to Bloomberg

Alnylam Pharma (ALNY) announced a new framework for value-based agreements (VBAs) designed to help people with primary hyperoxaluria type 1 (PH1) gain access to OXLUMO

Bristol-Myers (BMY) receives european commission approval for Opdivo (nivolumab) as second-line treatment for unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma

CoreLogic (CLGX): Cannae Holdings (CNNE) and Senator Investment Group initiate written consent process to be able to remove and replace CoreLogic directors

Corp. Office Props (OFC) appoints Todd Hartman as COO, effective November 30

CytoDyn (CYDY) to partner with amfAR for HIV cure research

Dick's Sporting Goods (DKS) announces Edward W. Stack will transition to Executive Chairman, Lauren R. Hobart to become President and Chief Executive Officer

DISH Network (DISH): FCC finds that Northstar and SNR are still controlled by DISH Network and therefore remain ineligible for the $3.3 billion in bidding credits that they sought for the licenses they won in Auction 97

Eaton Vance (EV) declares special dividend of $4.25/share, payable December 18, 2020, to shareholders of record on December 4, 2020

Google (GOOG): States preparing second Google antitrust lawsuit next month, according to Reuters

Huntington Ingalls (HII) receives contract for construction of first two Columbia-Class submarine modules worth $2.2 bln

iBio (IBIO) announces issuance of U.S. patent covering endostatin peptides for treating fibrosis

Ionis Pharma (IONS): AstraZeneca (AZN) licenses ION455 for development as potential NASH treatment

MediciNova (MNOV) announces initiation of Master Virus Seed Stock production for its intranasal COVID-19 vaccine using BC-PIV Vector technology

Neuronetics (STIM) receives FDA clearance for TouchStar treatment

Novartis AG (NVS) highlights pipeline; initiates $2.5 bln share buyback

Onto Innovation (ONTO) approves $100 mln share repurchase authorization

Sealed Air (SEE) names Christopher J. Stephens Chief Financial Officer designate succeeding James M. Sullivan

Shell (RDS.A) considering shutdown of Convent, Louisiana refinery early next week, according to Reuters

Spirit of Texas Bancshares (STXB) names Allison Johnson as CFO

Strongbridge Biopharma (SBBP) announced that secondary endpoint results from the Phase 3 SONICS study of RECORLEV for the potential treatment of endogenous Cushing's syndrome were published

Tandem Diabetes Care (TNDM) announces new development and commercialization agreements with DexCom

M&A:

BlackRock (BLK) agrees to acquire Aperio for $1.05 bln in cash

Fulton Fincl (FULT) subsidiary Fulton Bank, N.A. acquires the outstanding stock of BenefitWorks; terms not disclosed

Galapagos NV (GLGP) agrees to divest Fidelta to Selvita

Goldfield Corporation (GV) to be acquired by First Reserve for $7.00 per Share

Jacobs Engineering (J) has acquired The Buffalo Group; terms of the acquisition were not disclosed

Loral (LORL) enters into agreement with PSP Investments and Telesat to combine Loral and Telesat into a new public company

McCormick (MKC) announced that it has signed a definitive agreement to acquire the parent company of Cholula Hot Sauce from L Catterton, for $800 mln in cash

Syndicate:

Bill.com (BILL) announces offering of $750.0 mln aggregate principal amount of convertible senior notes due 2025 through private placement

CBAK Energy Technology (CBAT) files for $200 mln mixed securities shelf offering

VEREIT (VER) files for $8 bln mixed securities shelf offering

IPOs:

Expected to Price:

Ozon Holdings (Nasdaq: OZON): The leading eCommerce brand in Russia is expected to price its 30.0 M ADS IPO between $22.50-$27.50.

Gapping Up/Down

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

Upgrades:

AerCap (AER) upgraded to Buy from Neutral at BofA Securities; tgt raised to $47

ArcBest (ARCB) upgraded to Buy from Neutral at Citigroup; tgt raised to $47

Chubb (CB) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $180

Domtar (UFS) upgraded to Neutral from Underperform at BofA Securities

General Electric (GE) upgraded to Outperform from Perform at Oppenheimer; tgt $12

Nutanix (NTNX) upgraded to Neutral from Sell at Goldman; tgt raised to $32

O-I Glass (OI) upgraded to Buy from Neutral at BofA Securities

Wells Fargo (WFC) upgraded to Outperform from Underperform at Raymond James; tgt $32

Yandex N.V. (YNDX) upgraded to Buy from Neutral at BofA Securities; tgt $80

Downgrades:

Amcor (AMCR) downgraded to Underperform from Neutral at BofA Securities

Fulgent Genetics (FLGT) downgraded to Neutral from Buy at BTIG Research

Knight-Swift (KNX) downgraded to Neutral from Buy at Citigroup; tgt lowered to $46

PACCAR (PCAR) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $96

Schneider National (SNDR) downgraded to Neutral from Buy at Citigroup; tgt lowered to $22

Silgan Holdings (SLGN) downgraded to Underperform from Neutral at BofA Securities

Solar Capital (SLRC) downgraded to Neutral from Buy at Compass Point; tgt $17.75

Two Harbors Investment (TWO) downgraded to Mkt Perform from Outperform at Raymond James

Ulta Beauty (ULTA) downgraded to Hold from Buy at Jefferies; tgt $300

ViacomCBS (VIAC) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $32

Werner Enterprises (WERN) downgraded to Neutral from Buy at Citigroup; tgt lowered to $45

Others:

Arcus Biosciences (RCUS) initiated with a Buy at Berenberg; tgt $50

Atea Pharmaceuticals (AVIR) initiated with an Outperform at William Blair; tgt $60

Black Diamond Therapeutics (BDTX) initiated with a Buy at Berenberg; tgt $58

Cue Biopharma (CUE) initiated with a Buy at Berenberg; tgt $30

Duke Energy (DUK) initiated with an Outperform at BMO Capital Markets; tgt $99

Lufax (LU) initiated with a Buy at BofA Securities; tgt $18

Lufax (LU) initiated with a Buy at Goldman; tgt $20

Lufax (LU) initiated with a Hold at Stifel; tgt $16

Lufax (LU) initiated with a Sector Weight at KeyBanc Capital Markets; tgt $15

Southern (SO) initiated with a Market Perform at BMO Capital Markets; tgt $67

SQZ Biotechnologies (SQZ) initiated with a Buy at BofA Securities; tgt $37

SQZ Biotechnologies (SQZ) initiated with a Buy at BTIG Research; tgt $40

SQZ Biotechnologies (SQZ) initiated with a Buy at Stifel; tgt $38

uniQure (QURE) initiated with a Buy at H.C. Wainwright; tgt $80

Upcoming Events:

Econ Data:

09:00 ET: FHFA Housing Price Index for November (Briefing.com Consensus NA; Prior 1.5%)

09:00 ET: S&P Case-Shiller Home Price Index for September (Briefing.com Consensus 5.5%; Prior 5.2%)

10:00 ET: Consumer Confidence for November (Briefing.com Consensus 96.5; Prior 100.9)

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 +2.5%, Hang Seng +0.4%, Shanghai -0.3%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Press reports suggest that Japan's third extra budget will exceed JPY20 trln. Japan's Prime Minister Suga called on Japan Airlines and All Nippon Airways to merge. Korean Airlines CEO said that a merger of Korean Airlines and Asiana may generate profit of KRW300 bln. Hong Kong's Chief Executive Lam postponed her annual policy address in favor of a visit to the mainland.

In economic data:

South Korea's November Consumer Confidence 97.9 (last 91.6)

Hong Kong's October trade deficit HKD36.80 bln (last deficit of HKD12.70 bln). Imports 0.6% m/m (last 3.4%) and exports -1.1% m/m (last 9.1%)

---Equity Markets---

Japan's Nikkei: +2.5%

Hong Kong's Hang Seng: +0.4%

China's Shanghai Composite: -0.3%

India's Sensex: +1.0%

South Korea's Kospi: +0.6%

Australia's ASX All Ordinaries: +1.2%

---FX---

USD/JPY: -0.1% to 104.35

USD/CNH: +0.1% to 6.5805

USD/INR: -0.3% to 74.02

Europe: DAX +0.9%, FTSE +1.0%, CAC +1.2%

Major European indices trade in positive territory. British Prime Minister Johnson said that the country's national lockdown will end on December 2. Economists from Germany's ifo Institute said that industries fared relatively well at the start of recent lockdown measures. Germany's DAX index will be expanded to 40 components from 30 in September.

In economic data:

Germany's Q3 GDP 8.5% qtr/qtr (expected 8.2%; last -9.7%); -3.9% yr/yr (expected -4.1%; last -11.3%). November ifo Business Climate Index 90.7 (expected 90.1; last 92.5). November Current Assessment 90.0 (expected 87.0; last 90.4) and Business Expectations 91.5 (expected 93.5; last 94.7)

U.K.'s November CBI Distributive Trades Survey -25 (expected -35; last -23)

France's November Business Survey 92 (expected 91; last 94)

---Equity Markets---

STOXX Europe 600: +0.6%

Germany's DAX: +0.9%

U.K.'s FTSE 100: +1.0%

France's CAC 40: +1.2%

Italy's FTSE MIB: +1.5%

Spain's IBEX 35: +1.0%

---FX---

EUR/USD: +0.3% to 1.1871

GBP/USD: +0.2% to 1.3345

USD/CHF: +0.1% to 0.9129. Presumably, the market is feeling more certain about the next presidential administration and improved economic growth in 2021.

Last night, the General Services Administration formally began the presidential transition process to Joe Biden, although it's worth mentioning that President Trump has yet to concede the race. The market is not worried about the latter and is instead looking forward to a predictable government next year in which former Fed Chair Yellen is the Treasury Secretary.

The latter isn't confirmed yet, but the market reacted positively to reports of her potential nomination yesterday since she is perceived to be more dovish and an advocate for more fiscal stimulus. Interestingly, though, despite all the good news over the past couple of weeks, the S&P 500 remains below its Nov. 9 all-time high.

On the data front, investors will receive the FHFA Housing Price Index for November and the S&P Case-Shiller Home Price Index for September (Brieifng.com consensus 5.5%) at 9:00 a.m. ET, followed by the Conference Board's Consumer Confidence Index for November (Briefing.com consensus 96.5) at 10:00 a.m. ET.

U.S. Treasuries trade little changed. The 2-yr yield is down one basis point to 0.16%, and the 10-yr yield is flat at 0.86%. The U.S. Dollar Index is down 0.1% to 92.39. WTI crude futures are up 1.0%, or $0.43, to $43.49/bbl.

In U.S. Corporate news:

• Best Buy (BBY 118.50, -3.54): -2.9% despite beating top and bottom-line estimates.
• Hormel Foods (HRL 48.00, -2.03): -4.1% after missing top and bottom-line estimates.
• Nutanix (NTNX 31.60, +3.13): +11.0% after beating top and bottom-line estimates.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +2.5%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -0.3%, India's Sensex: +1.0%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: +1.2%.
  • In economic data:
    • South Korea's November Consumer Confidence 97.9 (last 91.6)
    • Hong Kong's October trade deficit HKD36.80 bln (last deficit of HKD12.70 bln). Imports 0.6% m/m (last 3.4%) and exports -1.1% m/m (last 9.1%)
  • In news:
    • Press reports suggest that Japan's third extra budget will exceed JPY20 trln.
    • Japan's Prime Minister Suga called on Japan Airlines and All Nippon Airways to merge.
    • Korean Airlines CEO said that a merger of Korean Airlines and Asiana may generate profit of KRW300 bln.
    • Hong Kong's Chief Executive Lam postponed her annual policy address in favor of a visit to the mainland.

• Major European indices trade in positive territory. STOXX Europe 600: +0.6%, Germany's DAX: +0.9%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.5%, Spain's IBEX 35: +1.0%.
  • In economic data:
    • Germany's Q3 GDP 8.5% qtr/qtr (expected 8.2%; last -9.7%); -3.9% yr/yr (expected -4.1%; last -11.3%). November ifo Business Climate Index 90.7 (expected 90.1; last 92.5). November Current Assessment 90.0 (expected 87.0; last 90.4) and Business Expectations 91.5 (expected 93.5; last 94.7)
    • U.K.'s November CBI Distributive Trades Survey -25 (expected -35; last -23)
    • France's November Business Survey 92 (expected 91; last 94)
  • In news:
    • British Prime Minister Johnson said that the country's national lockdown will end on December 2.
    • Economists from Germany's ifo Institute said that industries fared relatively well at the start of recent lockdown measures.
    • Germany's DAX index will be expanded to 40 components from 30 in September.

U.S equity futures:

• S&P 500 Futures +27 @ 3603
• DJIA Futures +308 @ 29854
• Nasdaq Futures +31 @ 11937

Overseas:

• Europe: DAX +0.9%, FTSE +1.0%, CAC +1.2%
• Asia: Nikkei +2.5%, Hang Seng +0.4%, Shanghai -0.3%

Commodities:

• Crude Oil +0.58 @ 43.64
• Nat Gas +0.042 @ 2.865
• Gold -30.15 @ 1807.65
• Silver -0.481 @ 23.152
• Copper +0.0543 @ 3.3123

U.S. Summary:

• Earnings/Guidance (Full Earnings Calendar):
  • Abercrombie & Fitch (ANF) beats by $0.80, beats on revs
  • Agilent (A) beats by $0.04, beats on revs; guides JanQ EPS below consensus, revs above consensus; guides FY21 EPS below consensus, revs in-line
  • Ambarella (AMBA) beats by $0.04, beats on revs; guides Q4 revs above consensus
  • American Woodmark (AMWD) beats by $0.12, reports revs in-line
  • Anaplan (PLAN) beats by $0.05, beats on revs; guides Q4 revs above consensus
  • Best Buy (BBY) beats by $0.34, beats on revs; Q3 comps +22.6%
  • Burlington Stores (BURL) beats by $0.13, beats on revs
  • Cabot (CBT) beats by $0.11, misses on revs; guides Q1 EPS above two analyst estimate
  • Cango (CANG) reports Q3 results, revs above prior guidance
  • Chico's FAS (CHS) reports Q3 (Oct) results, misses on revs
  • Datto Holding (MSP) misses by $0.01, revenue inline, issues upside Q4 revenue guidance
  • Dick's Sporting Goods (DKS) beats by $0.79, beats on revs
  • Dollar Tree (DLTR) beats by $0.23, reports revs in-line; Q3 comps +5.1%; not providing guidance
  • Dycom (DY) beats by $0.01, reports revs in-line
  • Enanta Pharmaceuticals (ENTA) reports Q4 results, misses on revs, provides clinical update
  • Hormel Foods (HRL) misses by $0.02, misses on revs
  • Jacobs Engineering (J) beats by $0.31, beats on revs; reaffirms FY21 EPS guidance
  • J.M. Smucker (SJM) beats by $0.16, reports revs in-line; guides FY21 EPS in-line, revs above consensus
  • LexinFintech (LX) beats by $0.36, beats on revs
  • Medtronic (MDT) beats by $0.22, beats on revs; not providing guidance
  • Nutanix (NTNX) beats by $0.13, beats on revs
  • Tiffany & Co (TIF) beats by $0.45, beats on revs
  • Titan Machinery (TITN) beats by $0.23, beats on revs; guides FY21 EPS above consensus
  • Urban Outfitters (URBN) beats by $0.34, beats on revs
• General News:
  • US COVID-19 cases rise slightly week/week as positivity rate falls; hospitalizations hit record; deaths rise
  • General Services Administration formally begins presidential transition process to Joe Biden
  • Europe is getting ready to ease lockdowns ahead of Christmas holiday, according to the Wall Street Journal
  • Biden's top tech adviser could mean more regulation for tech companies, according to Reuters
  • Michigan certifies state election results with Joe Biden as winner
  • UK mulling Huawei installation ban next year, according to Bloomberg
  • Alnylam Pharma (ALNY) announced a new framework for value-based agreements (VBAs) designed to help people with primary hyperoxaluria type 1 (PH1) gain access to OXLUMO
  • Bristol-Myers (BMY) receives european commission approval for Opdivo (nivolumab) as second-line treatment for unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma
  • CoreLogic (CLGX): Cannae Holdings (CNNE) and Senator Investment Group initiate written consent process to be able to remove and replace CoreLogic directors
  • Corp. Office Props (OFC) appoints Todd Hartman as COO, effective November 30
  • CytoDyn (CYDY) to partner with amfAR for HIV cure research
  • Dick's Sporting Goods (DKS) announces Edward W. Stack will transition to Executive Chairman, Lauren R. Hobart to become President and Chief Executive Officer
  • DISH Network (DISH): FCC finds that Northstar and SNR are still controlled by DISH Network and therefore remain ineligible for the $3.3 billion in bidding credits that they sought for the licenses they won in Auction 97
  • Eaton Vance (EV) declares special dividend of $4.25/share, payable December 18, 2020, to shareholders of record on December 4, 2020
  • Google (GOOG): States preparing second Google antitrust lawsuit next month, according to Reuters
  • Huntington Ingalls (HII) receives contract for construction of first two Columbia-Class submarine modules worth $2.2 bln
  • iBio (IBIO) announces issuance of U.S. patent covering endostatin peptides for treating fibrosis
  • Ionis Pharma (IONS): AstraZeneca (AZN) licenses ION455 for development as potential NASH treatment
  • MediciNova (MNOV) announces initiation of Master Virus Seed Stock production for its intranasal COVID-19 vaccine using BC-PIV Vector technology
  • Neuronetics (STIM) receives FDA clearance for TouchStar treatment
  • Novartis AG (NVS) highlights pipeline; initiates $2.5 bln share buyback
  • Onto Innovation (ONTO) approves $100 mln share repurchase authorization
  • Sealed Air (SEE) names Christopher J. Stephens Chief Financial Officer designate succeeding James M. Sullivan
  • Shell (RDS.A) considering shutdown of Convent, Louisiana refinery early next week, according to Reuters
  • Spirit of Texas Bancshares (STXB) names Allison Johnson as CFO
  • Strongbridge Biopharma (SBBP) announced that secondary endpoint results from the Phase 3 SONICS study of RECORLEV for the potential treatment of endogenous Cushing's syndrome were published
  • Tandem Diabetes Care (TNDM) announces new development and commercialization agreements with DexCom
• M&A:
  • BlackRock (BLK) agrees to acquire Aperio for $1.05 bln in cash
  • Fulton Fincl (FULT) subsidiary Fulton Bank, N.A. acquires the outstanding stock of BenefitWorks; terms not disclosed
  • Galapagos NV (GLGP) agrees to divest Fidelta to Selvita
  • Goldfield Corporation (GV) to be acquired by First Reserve for $7.00 per Share
  • Jacobs Engineering (J) has acquired The Buffalo Group; terms of the acquisition were not disclosed
  • Loral (LORL) enters into agreement with PSP Investments and Telesat to combine Loral and Telesat into a new public company
  • McCormick (MKC) announced that it has signed a definitive agreement to acquire the parent company of Cholula Hot Sauce from L Catterton, for $800 mln in cash
• Syndicate:
  • Bill.com (BILL) announces offering of $750.0 mln aggregate principal amount of convertible senior notes due 2025 through private placement
  • CBAK Energy Technology (CBAT) files for $200 mln mixed securities shelf offering
  • VEREIT (VER) files for $8 bln mixed securities shelf offering
• IPOs:
  • Expected to Price:
    • Ozon Holdings (Nasdaq: OZON): The leading eCommerce brand in Russia is expected to price its 30.0 M ADS IPO between $22.50-$27.50.

Gapping Up/Down

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

• Upgrades:
  • AerCap (AER) upgraded to Buy from Neutral at BofA Securities; tgt raised to $47
  • ArcBest (ARCB) upgraded to Buy from Neutral at Citigroup; tgt raised to $47
  • Chubb (CB) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $180
  • Domtar (UFS) upgraded to Neutral from Underperform at BofA Securities
  • General Electric (GE) upgraded to Outperform from Perform at Oppenheimer; tgt $12
  • Nutanix (NTNX) upgraded to Neutral from Sell at Goldman; tgt raised to $32
  • O-I Glass (OI) upgraded to Buy from Neutral at BofA Securities
  • Wells Fargo (WFC) upgraded to Outperform from Underperform at Raymond James; tgt $32
  • Yandex N.V. (YNDX) upgraded to Buy from Neutral at BofA Securities; tgt $80
• Downgrades:
  • Amcor (AMCR) downgraded to Underperform from Neutral at BofA Securities
  • Fulgent Genetics (FLGT) downgraded to Neutral from Buy at BTIG Research
  • Knight-Swift (KNX) downgraded to Neutral from Buy at Citigroup; tgt lowered to $46
  • PACCAR (PCAR) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $96
  • Schneider National (SNDR) downgraded to Neutral from Buy at Citigroup; tgt lowered to $22
  • Silgan Holdings (SLGN) downgraded to Underperform from Neutral at BofA Securities
  • Solar Capital (SLRC) downgraded to Neutral from Buy at Compass Point; tgt $17.75
  • Two Harbors Investment (TWO) downgraded to Mkt Perform from Outperform at Raymond James
  • Ulta Beauty (ULTA) downgraded to Hold from Buy at Jefferies; tgt $300
  • ViacomCBS (VIAC) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $32
  • Werner Enterprises (WERN) downgraded to Neutral from Buy at Citigroup; tgt lowered to $45
• Others:
  • Arcus Biosciences (RCUS) initiated with a Buy at Berenberg; tgt $50
  • Atea Pharmaceuticals (AVIR) initiated with an Outperform at William Blair; tgt $60
  • Black Diamond Therapeutics (BDTX) initiated with a Buy at Berenberg; tgt $58
  • Cue Biopharma (CUE) initiated with a Buy at Berenberg; tgt $30
  • Duke Energy (DUK) initiated with an Outperform at BMO Capital Markets; tgt $99
  • Lufax (LU) initiated with a Buy at BofA Securities; tgt $18
  • Lufax (LU) initiated with a Buy at Goldman; tgt $20
  • Lufax (LU) initiated with a Hold at Stifel; tgt $16
  • Lufax (LU) initiated with a Sector Weight at KeyBanc Capital Markets; tgt $15
  • Southern (SO) initiated with a Market Perform at BMO Capital Markets; tgt $67
  • SQZ Biotechnologies (SQZ) initiated with a Buy at BofA Securities; tgt $37
  • SQZ Biotechnologies (SQZ) initiated with a Buy at BTIG Research; tgt $40
  • SQZ Biotechnologies (SQZ) initiated with a Buy at Stifel; tgt $38
  • uniQure (QURE) initiated with a Buy at H.C. Wainwright; tgt $80

Upcoming Events:

• Econ Data:
  • 09:00 ET: FHFA Housing Price Index for November (Briefing.com Consensus NA; Prior 1.5%)
  • 09:00 ET: S&P Case-Shiller Home Price Index for September (Briefing.com Consensus 5.5%; Prior 5.2%)
  • 10:00 ET: Consumer Confidence for November (Briefing.com Consensus 96.5; Prior 100.9)
• 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 +2.5%, Hang Seng +0.4%, Shanghai -0.3%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Press reports suggest that Japan's third extra budget will exceed JPY20 trln. Japan's Prime Minister Suga called on Japan Airlines and All Nippon Airways to merge. Korean Airlines CEO said that a merger of Korean Airlines and Asiana may generate profit of KRW300 bln. Hong Kong's Chief Executive Lam postponed her annual policy address in favor of a visit to the mainland.

• In economic data:
  • South Korea's November Consumer Confidence 97.9 (last 91.6)
  • Hong Kong's October trade deficit HKD36.80 bln (last deficit of HKD12.70 bln). Imports 0.6% m/m (last 3.4%) and exports -1.1% m/m (last 9.1%)

---Equity Markets---

• Japan's Nikkei: +2.5%
• Hong Kong's Hang Seng: +0.4%
• China's Shanghai Composite: -0.3%
• India's Sensex: +1.0%
• South Korea's Kospi: +0.6%
• Australia's ASX All Ordinaries: +1.2%

---FX---

• USD/JPY: -0.1% to 104.35
• USD/CNH: +0.1% to 6.5805
• USD/INR: -0.3% to 74.02

Europe: DAX +0.9%, FTSE +1.0%, CAC +1.2%

Major European indices trade in positive territory. British Prime Minister Johnson said that the country's national lockdown will end on December 2. Economists from Germany's ifo Institute said that industries fared relatively well at the start of recent lockdown measures. Germany's DAX index will be expanded to 40 components from 30 in September.

• In economic data:
  • Germany's Q3 GDP 8.5% qtr/qtr (expected 8.2%; last -9.7%); -3.9% yr/yr (expected -4.1%; last -11.3%). November ifo Business Climate Index 90.7 (expected 90.1; last 92.5). November Current Assessment 90.0 (expected 87.0; last 90.4) and Business Expectations 91.5 (expected 93.5; last 94.7)
  • U.K.'s November CBI Distributive Trades Survey -25 (expected -35; last -23)
  • France's November Business Survey 92 (expected 91; last 94)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +0.9%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +1.2%
• Italy's FTSE MIB: +1.5%
• Spain's IBEX 35: +1.0%

---FX---

• EUR/USD: +0.3% to 1.1871
• GBP/USD: +0.2% to 1.3345
• USD/CHF: +0.1% to 0.9129