DAILY MORNING CHAI REPORT

 The S&P 500 futures trade five points, or 0.1%, above fair value following yesterday's record closes in the benchmark index, Nasdaq Composite, and Russell 2000. Stimulus developments have been of interest this morning.

Briefly, Treasury Secretary Mnuchin offered a new $916 billion stimulus bill that includes $600 direct payments to Americans but no enhanced unemployment benefits. The bill is slightly larger than the $908 billion bipartisan bill that excludes direct payments but includes unemployment relief.

Democratic Congressional leadership called it progress, according to Bloomberg, but reiterated the need for unemployment relief and said talking points should still be focused on the bipartisan plan. They also shot down Senate Majority Leader McConnell's suggestion of leaving out funding for state and local governments.

When the market opens for trading, attention will divert back to equities for the DoorDash (DASH) IPO, which priced shares at $102.00 for a $38.7 billion valuation on a fully-diluted basis.

On the data front, investors will receive the JOLTS - Job Openings report for October and Wholesale Inventories for October (Briefing.com consensus 0.9%) at 10:00 a.m. ET. The weekly MBA Mortgage Applications Index decreased 1.2% following a 0.6% decline in the prior week.

Longer-dated Treasuries are backpedaling from recent gains, pushing yields higher. The 2-yr yield is up one basis point to 0.15%, and the 10-yr yield is up three basis points to 0.94%. The U.S. Dollar Index is down 0.1% to 90.88. WTI crude is up 0.1% to $46.65/bbl.

In U.S. Corporate news:

Campbell Soup (CPB 48.90, +0.70): +1.5% after beating EPS estimates and raising its dividend by 6%.

FireEye (FEYE 14.20, -1.32): -8.5% after its software tools were compromised by a foreign-government attack, according to The Wall Street Journal.

DoorDash (DASH, private): the company priced its IPO at $102.00 per share, which is above the revised expected range of $90-95, for a valuation of $38.7 billion on a fully-diluted basis.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: -1.1%, India's Sensex: +1.1%, South Korea's Kospi: +2.0%, Australia's ASX All Ordinaries: +0.6%.

In economic data:

China's November CPI -0.6% m/m (expected -0.2%; last -0.3%); -0.5% yr/yr (expected 0.8%; last 0.5%). November PPI -1.5% yr/yr (expected -1.8%; last -2.1%)

Japan's October Core Machinery Orders 17.1% m/m (expected 2.8%; last -4.4%); 2.8% yr/yr (expected -11.3%; last -11.5%). November Machine Tool Orders 8.0% yr/yr (last -6.0%)

Australia's October Building Permits 3.8% m/m (last 16.2%) and December Westpac Consumer Sentiment 4.1% m/m (last 2.5%)

New Zealand's Q3 Manufacturing Sales Volume 17.3% qtr/qtr (last -12.2%)

In news:

Nikkei reported that Japan's tax revenue for FY20/21 will likely be about JPY4 trln below original expectations while bond issuance is expected to reach a record of JPY100 trln.

Australia's consumer confidence reached a ten year high in the December reading.

KIA's unionized employees are on a partial strike until Friday.

Chinese companies will reportedly be allowed to issue bonds to international investors that will offer settlement in multiple currencies.

Major European indices trade in the green. STOXX Europe 600: +0.5%, Germany's DAX: +0.9%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.4%.

In economic data:

Germany's October trade surplus EUR18.20 bln (expected EUR18.00 bln; last EUR17.60 bln). October Imports 0.3% m/m (expected 1.0%; last 0.2%) and exports 0.8% m/m (expected 1.2%; last 2.3%)

Spain's October Industrial Production -1.6% yr/yr (expected -2.6%; last -3.1%) and November Consumer Confidence 55.7 (last 48.5)

In news:

German Chancellor Merkel said that there is "great uncertainty" surrounding the EU budget and that the region is prepared for a no-deal Brexit.

The British Prime Minister is expected to speak with the European Commission President this evening.

Italy's Prime Minister expressed hope for the EU rescue fund to become permanent.

U.S equity futures:

S&P 500 Futures +4 @ 3706

DJIA Futures +67 @ 30238

Nasdaq Futures -15 @ 12623

Overseas:

Europe: DAX +0.9%, FTSE +0.3%, CAC +0.2%

Asia: Nikkei +1.3%, Hang Seng +0.8%, Shanghai -1.1%

Commodities:

Crude Oil +0.10 @ 45.70

Nat Gas +0.080 @ 2.479

Gold -14.80 @ 1860.10

Silver -0.439 @ 24.297

Copper +0.0143 @ 3.5133

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

AeroVironment (AVAV) beats by $0.17, beats on revs; reaffirms FY21 EPS guidance, revs guidance; to acquire Telerob, a German leader in ground robotics

ASE Technology (ASX) reports November sales increased 31.7% yr/yr to NT$50.67 bln

British American Tobacco (BTI) reaffirms FY20 guidance

Campbell Soup (CPB) beats by $0.11, reports revs in-line; guides Q2 EPS in-line, revs in-line; raises dividend

Canadian Natrl Res (CNQ) provides FY21 targets; sees 2021 production rising 5% yr/yr

Chewy (CHWY) beats by $0.05, beats on revs; guides Q4 revs above consensus

Designer Brands (DBI) beats by $0.15, reports revs in-line

Deutsche Bank (DB) confirms its primary strategic and financial targets for 2020 and 2022

Element Solutions (ESI) provides FY20 guidance metrics

GameStop (GME) beats by $0.32, misses on revs, comparable store sales down 24.6%, expects to realize positive comparable store sales results and profitability in Q4

GATO Silver (GATO) reports Q3 results

Guidewire Software (GWRE) beats by $0.22, beats on revs; guides Q2 revs in-line; guides FY21 revs in-line

JPMorgan Chase (JPM) CEO Jamie Dimon sees 2021 expenses topping $67 bln; sees Q4 markets revenue increase of 20%, according to Reuters

Lovesac (LOVE) beats by $1.01, beats on revs

MongoDB (MDB) beats by $0.13, beats on revs; guides Q4 EPS above consensus, revs above consensus

Nielsen (NLSN) reaffirms FY20 guidance at Investor Day

Pacira Pharma (PCRX) reports preliminary net product sales of $38.9 million for November 2020

Photronics (PLAB) misses by $0.05, misses on revs; guides Q1 EPS below consensus, revs in-line

Phreesia (PHR) misses by $0.01, beats on revs; guides FY21 revs above consensus, announces planned CFO transition

Powell Inds (POWL) reports SepQ results below two-analyst estimate

Takeda Pharma (TAK) provides long-term growth outlook

Tempur Sealy Int'l (TPX) provides market update; expects adjusted EBITDA growth of approximately 30% on low double-digit net sales growth

United Natural Foods (UNFI) misses by $0.23, misses on revs; reaffirms FY21 EPS guidance, revs guidance

W&T Offshore (WTI) raises Q4 production guidance

General News:

Treasury Secretary Steven Mnuchin offered a new $916 bln stimulus bill with checks, but no unemployment. Senate Majority Leader Mitch McConnell (R-KY) offered a limited stimulus bill without state and local government funding or liability protection but with funding for small businesses. Both bills were rejected by Democrats, according to the New York Times

Supreme Court rejected challenge to election results in Pennsylvania. Texas AG Ken Paxton filed another request to ask the high court to extend the December 14 electoral college deadline, according to the New York Times

House passes defense authorization act with enough votes to override President Trump's expected veto, according to The Hill

JP Morgan (JPM) CEO Jamie Dimon says he wouldn't touch 10 Year Treasuries "with a ten foot pole" at current rates, according to CNBC

Joe Biden selects Tom Vilsack as his agricultural secretary and Rep. Marcia Fudge (D-OH) as his Housing and Urban Development secretary, according to Axios

UK suspended retaliatory tariffs on US goods related to Airbus (EADSY) dispute, according to Reuters

Akoustis Technologies (AKTS) awarded a design win from a second WiFi 6 customer for its 5.2/5.6 GHz XBAW RF coexistence filter solutions

Albireo Pharma (ALBO) submits New Drug Application to the U.S. FDA and a Marketing Authorization Application to the European Medicines Agency seeking approval of odevixibat

Assembly Biosciences (ASMB) announces wind-down of microbiome program

AT&T (T) provided update to shareholders at UBS Global TMT Conference

Brookdale Senior Living (BKD) reports consolidated occupancy for November; 89% of the company's communities were open for move-ins on November 30, 2020

Cabaletta Bio (CABA) announces that first patient has been dosed in the DesCAARTes Phase 1 trial of DSG3-CAART

Cambium Networks (CMBM) settles lawsuit with Ubiquiti

Chemours (CC) extends existing share repurchase program through December 31, 2022

Cohen & Steers (CNS) reports Nov AUM of $76.7 bln

CureVac (CVAC) and Fareva sign agreement for fill & finish manufacturing of Curevac's COVID-19 vaccine candidate, CVnCoV

Cytokinetics (CYTK) announced the progression of REDWOOD-HCM following the conduct of an interim analysis of data from Cohort 1

CytoSorbents (CTSO) highlights the publication of a 'genetic' matched analysis evaluating the early initiation of CytoSorb in critically ill patients with septic shock

Eli Lilly's (LLY) tirzepatide significantly reduced A1C and body weight in people with type 2 diabetes

Erie Indemnity (ERIE) increases Class A quarterly cash dividend to $1.035/share from $0.965/share; declares special one-time cash dividend of $2.00 per Class A share

Evelo Biosciences (EVLO) announced positive topline clinical data from its Phase 1b clinical trial of EDP1815 in 23 evaluable subjects with mild to moderate atopic dermatitis

Facebook (FB): State and federal officials are expected to file antitrust case against Facebook today, according to the Washington Post

FireEye (FEYE) was breached by a foreign-government attack, compromising software tools, according to the Wall Street Journal

Forma Therapeutics (FMTX) launches public offering of 4.6 mln shares of common stock

GTT Communications (GTT) announces that CFO Steven Berns has stepped down; company appoints Donna Granato as interim Chief Financial Officer

HC2 Director (HCHC) (Avram Glazer of Lancet Capital) bought 341K shares worth ~$1.2 mln (transaction dates 12/4-12/8)

Illumina (ILMN) announces risk-sharing agreement with Harvard Pilgrim Health Care

Kazia Therapeutics (KZIA) reports top-line final data from its phase I study of Cantrixil (TRX-E-002-1) in patients with persistent or recurrent ovarian cancer; Trial achieved its primary objective

Lipocine (LPCN) receives tentative approval of TLANDO

Magal Security (MAGS) declared a cash distribution to shareholders in the amount of $1.079 per share (approximately $25 million in the aggregate), following the receipt of court approval in Israel

MasterCard (MA) increases quarterly cash dividend to $0.44/share from $0.40/share; approves new $6 bln repurchase program

Novartis AG's (NVS) Sandoz announces immediate availability of generic acetaminophen injection

Orion Energy Systems (OESX) secured a new contract extension totaling ~$40 mln for the turnkey LED lighting and controls retrofit of 290 additional locations for an existing large national retail customer

Parsons (PSN) awarded $21 mln contract to safeguard Southern Nevada's Water Supply

Pentair (PNR) increases quarterly cash dividend to $0.20/share from $0.19/share; authorizes new $750 mln share repurchase program

Pfizer (PFE) announces FDA acceptance of BLA for 20-valent pneumococcal conjugate vaccine candidate for priority review

Piedmont Lithium (PLL) to re-domicile from Australia to the United States via a proposed Scheme of Arrangement

Pluristem Therapeutics (PSTI) reports CLI study is unlikely to meet its primary endpoint by the time of the final analysis

ProPhase (PRPH) expands COVID-19 testing capacity with new facility lease in New York

REGENXBIO (RGNX) announces positive interim data and update for Phase I/II Trial of RGX-121 for the treatment of MPS II

Regions Fincl (RF) COO John Owen to retire effective March 15

Rio Tinto (RIO): Inquiry says Rio Tinto should pay restitution for Aboriginal caves blast, according to Reuters

Rocket Pharmaceuticals (RCKT) announces "positive" gene expression, clinical biomarker, and preliminary functional data from Phase 1 trial of RP-A501

Rush Enterprises (RUSHA) approves new $100 mln stock repurchase program

Sanofi (SNY) signs sustainability-linked revolving credit facilities

Scorpio Bulkers (SALT) enters into agreement to sell an Ultramax bulk carrier built in 2016 for approximately $18.25 mln

Shutterstock (SSTK) announces integration with WordPress, offering real-time smart image recommendations to help creatives publish at lightning speed

SmileDirectClub (SDC) granted patent for SmileShop retail concept and digital methodology

Softbank (SFTBY) considering going private, according to Bloomberg

Sorrento Therapeutics (SRNE) receives Clinical Laboratory Improvement Amendments license from the State of California for clinical sample testing

Tattooed Chef (TTCF) expands product range with plant-based meat alternatives

TJX (TJX) announces 13% increase in quarterly dividend to $0.26/sh, new yield is 1.6%

Tricida (TCDA) provides update on veverimer's development program, regulatory status, and patent protection

Twitter (TWTR), Vimeo (PYPL), and others are pushing back against EU rules regarding online content, according to Reuters

UBS (UBS) CEO Ralph Hamers is being probed by Dutch regulators related to ING money laundering case, according to Reuters

United Therapeutics (UTHR) receives FDA Orphan Drug Designation for treprostinil for the treatment of idiopathic pulmonary fibrosis; Phase 3 TETON study planned in 2021 for Tyvaso

Univar Solutions (UNVR) expands distribution agreement with Solvay Group's Novecare Coatings and Industrial Process Solutions business units

Univ Elec (UEIC) selected to provide voice-enabled remote controls to Virgin Media for its new Virgin TV 360 platform

Veru (VERU) expands oncology drug pipeline; exclusively licenses phase 3 clinical stage targeted therapy for endocrine resistant metastatic breast cancer

Viavi (VIAV) enters into licensing agreement with Viko Optics for 3D sensing filters

M&A:

Baxter International (BAX) made takeover $5 bln bid for Omnicell (OMCL), according to Reuters

Brown & Brown (BRO) announces the asset acquisition of Maj Companies Ltd. by Brown & Brown Dealer Services

BRP Group (BRP) agrees to acquire Burnham Benefits Insurance Services; terms not disclosed

Stratasys (SSYS) to acquire Origin total consideration of up to $100 mln in cash/stock

Uber (UBER) agrees to invest a further $75 mln in Joby Aviation; Joby Aviation to acquire Uber Elevate

Vale S.A. (VALE) discloses it signed a binding put option agreement to formalize sale of Vale New Caledonia

Syndicate:

Atara Biotherapeutics (ATRA) prices offering of 5,102,041 shares of its common stock at a price to the public of $24.50 per share and pre-funded warrants to purchase 2,040,816 shares of its common stock at a purchase price of $24.4999 per pre-funded warrant share

Atlantica Yield (AY) files for share common stock offering, no amount given

BRP Group (BRP) prices offering of 8,750,000 shares of its Class A common stock at $29.50 per share

CEL-SCI Corp (CVM) prices offering of a minimum of 1 mln shares of common stock at $14.65 per share

Curis (CRIS) announces public offering of common stock; size not disclosed

Fiserv (FISV) to offer 17.5 mln common shares held by New Omaha Holdings, which is owned by investment funds managed by Kohlberg Kravis Roberts (KKR)

GameStop (GME) files mixed securities shelf offering

GrowGeneration (GRWG) prices underwritten public offering of 5 mln shares of common stock at $30.00 per share

HOOKIPA Pharma (HOOK) prices offering of 3.4 mln shares of common stock at $11.75 per share

ICHOR Corporation (ICHR) commences public offering of 3.5 mln shares of common stock

IGM Biosciences (IGMS) prices upsized underwritten public offering of shares of its common stock at $90.00 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase shares of its common stock at $89.99 per each pre-funded warrant

JinkoSolar Holding (JKS) proposes at-the-market equity offering of up to $100 mln ADSs

Kura Oncology (KURA) prices offering of $300 mln shares of common stock at $37.00 per share

Sutro Biopharma (STRO) prices offering of 6 mln shares of common stock at $21.00 per share

Syndax Pharmaceuticals (SNDX) priced a public offering of 5,434,783 shares of its common stock at a price to the public of $23.00/share

Talos Energy (TALO) commences public offering of 8.25 mln common shares

Xpeng Inc. (XPEV) pricing of follow-on public offering of american depositary shares

IPOs:

Expected to Price:

4D Molecular Therapeutics (Nasdaq: FDMT): The development stage precision gene therapy company is expected to price its 4.8 M share IPO between $20-$22.

AbCellera Biologics (Nasdaq: ABCL): The developer of an AI-powered drug discovery platform is expected to price its 23.0 M share IPO between $14-$17.

Airbnb (Nasdaq: ABNB): The online platform for home rentals is expected to price its 51.9 M share IPO between $56-$60.

Certara (Nasdaq: CERT): The developer of biosimulation software and technology that transforms traditional drug discovery and development is expected to price its 24.4 M share IPO between $19-$22.

Hydrofarm Holdings (Nasdaq: HYFM): The independent distributor and manufacturer of controlled environment agriculture equipment and supplies is expected to price its 8.7 M share IPO between $14-$16.

Priced to Trade:

C3.AI (Nasdaq: AI): The enterprise AI software company that enables deployment of enterprise-scale AI applications priced its 15.5 M share IPO at $42, above the upwardly revised price range of $36-$8. The original price range was $31-$34.

DoorDash (NYSE: DASH): The largest third party delivery platform for restaurants priced its 33.0 M share IPO at $102, above the upwardly revised price range of $90-$95. The original price range was $75-$85.

Pubmatic (Nasdaq: PUBM): The provider of a cloud infrastructure platform that enables ad buyers to do real-time programmatic advertising transactions priced its 5.9 M share IPO at $20, above the $16-$18 expected price range.

Gapping Up/Down

Gapping up:

RCKT +33.2%, LPCN +22.6%, TTCF +10.6%, SRNE +9.5%, KZIA +7.5%, PRPH +4.1%, CMBM +3.1%, AVAV +1.8%, VIAV +1.7%, ALBO +1.5%, RUSHA +1.5%, UBER +1.4%, SNY +1.4%, SSYS +1.4%, PFE +1.2%, NVS +0.7%, DB +0.7%, JPM +0.6%, TJX +0.5%, CRIS +0.5%, SDC +0.5%, BTI +0.5%

Gapping down:

PSTI -45.9%, GME -16.5%, TALO -15.8%, TCDA -13.8%, FEYE -12.8%, IGMS -12.6%, PHR -9.4%, ICHR -9.2%, PLAB -9.2%, BRP -8.9%, HOOK -8.8%, POWL -8.5%, CVM -7.9%, AY -5.7%, ATRA -5.1%, JKS -3.6%, XPEV -3.5%, GWRE -2.5%, STRO -2%, MDB -1.8%, IONS -1.6%, KURA -1.3%, ASMB -1%, CHWY -0.7%

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

Upgrades:

Altair Engineering (ALTR) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $65

Array Tech (ARRY) upgraded to Overweight from Neutral at JP Morgan; tgt $41

Autodesk (ADSK) upgraded to Overweight from Underweight at JP Morgan; tgt raised to $345

Baidu (BIDU) upgraded to Buy from Neutral at UBS; tgt $190

Cadence Design (CDNS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $145

Community Trust Bancorp (CTBI) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $41

Delek US Holdings (DK) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $25

Equinor (EQNR) upgraded to Buy from Hold at Berenberg

Intuit (INTU) upgraded to Overweight from Underweight at JP Morgan; tgt raised to $450

Johnson Controls (JCI) upgraded to Overweight from Neutral at Atlantic Equities; tgt $56

National Grid (NGG) upgraded to Buy from Neutral at Citigroup

NICE (NICE) upgraded to Buy from Neutral at DA Davidson; tgt raised to $275

Olin (OLN) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $32

PTC (PTC) upgraded to Overweight from Underweight at JP Morgan; tgt raised to $130

Relx (RELX) upgraded to Buy from Hold at Kepler

Slack (WORK) upgraded to Equal-Weight from Underweight at Morgan Stanley

U.S. Steel (X) upgraded to Buy from Hold at Argus; tgt $22

VeriSign (VRSN) upgraded to Overweight from Neutral at JP Morgan; tgt $246

Walt Disney (DIS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $182

Downgrades:

American Express (AXP) downgraded to Hold from Buy at DZ Bank; tgt $128

Atara Biotherapeutics (ATRA) downgraded to Neutral from Buy at Citigroup; tgt raised to $27

Avalara (AVLR) downgraded to Neutral from Overweight at JP Morgan; tgt $195

Bloom Energy (BE) downgraded to Neutral from Overweight at JP Morgan; tgt $26

CarMax (KMX) downgraded to Neutral from Overweight at JP Morgan; tgt $115

Check Point Software (CHKP) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $134

Cloudflare (NET) downgraded to Neutral from Overweight at JP Morgan; tgt $83

Columbia Sportswear (COLM) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $90

CrowdStrike (CRWD) downgraded to Neutral from Overweight at JP Morgan; tgt $175

DocuSign (DOCU) downgraded to Neutral from Overweight at JP Morgan; tgt $271

Elanco Animal Health (ELAN) downgraded to Hold from Buy at Argus

Ferrari (RACE) downgraded to Hold from Buy at Kepler

Fortinet (FTNT) downgraded to Underweight from Neutral at JP Morgan; tgt $140

HollyFrontier (HFC) downgraded to Underweight from Equal Weight at Wells Fargo; tgt raised to $22

Hormel Foods (HRL) downgraded to Hold from Buy at Argus

JinkoSolar Holding (JKS) downgraded to Market Perform at CICC

Model N (MODN) downgraded to Underweight from Overweight at JP Morgan; tgt lowered to $33

Okta (OKTA) downgraded to Neutral from Overweight at JP Morgan; tgt $258

Palo Alto Networks (PANW) downgraded to Underweight from Neutral at JP Morgan; tgt $308

Pearson Plc (PSO) downgraded to Reduce from Hold at Kepler

Pluralsight (PS) downgraded to Underweight from Neutral at JP Morgan; tgt $20

SecureWorks (SCWX) downgraded to Underweight from Neutral at JP Morgan; tgt $15

SS&C Techs (SSNC) downgraded to Neutral from Overweight at JP Morgan; tgt $78

Talos Energy (TALO) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

Total SE (TOT) downgraded to Hold from Buy at Berenberg

Veeva Systems (VEEV) downgraded to Underweight from Neutral at JP Morgan; tgt $297

Zoom Video (ZM) downgraded to Neutral from Overweight at JP Morgan; tgt $450

Others:

Aerpio Pharmaceuticals (ARPO) initiated with a Buy at BTIG Research; tgt $4

Annaly Capital Mgmt (NLY) initiated with a Buy at Argus; tgt $9

Armstrong World Industries (AWI) initiated with a Sell at UBS; tgt $68

CAI Intl (CAI) initiated with a Buy at B. Riley Securities; tgt $44

D.R. Horton (DHI) initiated with a Buy at UBS; tgt $94

Discovery (DISCA) initiated with a Sector Weight at KeyBanc Capital Markets

Fortune Brands Home & Security (FBHS) initiated with a Buy at UBS; tgt $105

Fox Corporation (FOXA) initiated with a Sector Weight at KeyBanc Capital Markets

FuelCell Energy (FCEL) resumed with a Hold at Canaccord Genuity; tgt $8.50

Glaukos (GKOS) initiated with a Perform at Oppenheimer

Hasbro (HAS) initiated with a Buy at Citigroup; tgt $120

KB Home (KBH) initiated with a Neutral at UBS; tgt $37

Lennar (LEN) initiated with a Neutral at UBS; tgt $77

LGI Homes (LGIH) initiated with a Buy at UBS; tgt $140

Lithia Motors (LAD) initiated with a Neutral at Citigroup; tgt $320

Martin Marietta (MLM) initiated with a Neutral at UBS; tgt $262

Masco (MAS) initiated with a Buy at UBS; tgt $71

Mattel (MAT) initiated with a Neutral at Citigroup; tgt $17.50

Mohawk (MHK) initiated with a Neutral at UBS; tgt $134

Nucor (NUE) initiated with an Equal-Weight at Morgan Stanley; tgt $60

NVR (NVR) initiated with a Buy at UBS; tgt $5,558

Owens Corning (OC) initiated with a Sell at UBS; tgt $61

PulteGroup (PHM) initiated with a Buy at UBS; tgt $57

Qorvo (QRVO) initiated with a Neutral at Rosenblatt; tgt $175

Steel Dynamics (STLD) initiated with an Overweight at Morgan Stanley; tgt $45

Summit Materials (SUM) initiated with a Sell at UBS; tgt $16

Textainer Group (TGH) initiated with a Buy at B. Riley Securities; tgt $31

Toll Brothers (TOL) initiated with a Buy at UBS; tgt $62

Trex (TREX) initiated with a Buy at UBS; tgt $94

Triton International (TRTN) initiated with a Buy at B. Riley Securities; tgt $56

U.S. Steel (X) initiated with an Equal-Weight at Morgan Stanley; tgt $17

Venus Concept (VERO) initiated with a Hold at Stifel; tgt $2.50

ViacomCBS (VIAC) initiated with an Underweight at KeyBanc Capital Markets; tgt $30

Vulcan Materials (VMC) initiated with a Neutral at UBS; tgt $139

Walt Disney (DIS) initiated with an Overweight at KeyBanc Capital Markets; tgt $177

Upcoming Events:

Econ Data:

07:00 ET: MBA Mortgage Applications Index for December 5 (Briefing.com Consensus NA; Prior -0.6%)

10:00 ET: JOLTS - Job Openings for October (Briefing.com Consensus NA; Prior 6.436 M)

10:00 ET: Wholesale Inventories for October (Briefing.com Consensus 0.9%; Prior 0.4%)

10:30 ET: EIA Crude Oil Inventories for December 5 (Briefing.com Consensus NA; Prior -0.679 M)

Earnings:

Monday (Dec 7)

Morning: JKS

Afternoon: CASY COUP HQY SMAR SFIX TOL

Tuesday (Dec 8)

Morning: AZO BF.B CMD CONN GIII HRB JW.A THO

Afternoon: AVAV CHWY GME GWRE MDB PHR

Wednesday (Dec 9)

Morning: CPB DBI LOVE PLAB UNFI VRA

Afternoon: ADBE CMTL GEF MESA NCNO OXM RH VRNT

Thursday (Dec 10)

Morning: CIEN

Afternoon: AVGO COST PLAY LULU ORCL NX MTN

Friday (Dec 11)

Morning: ROAD

Asia & Europe detail:

Asia: Nikkei +1.3%, Hang Seng +0.8%, Shanghai -1.1%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Nikkei reported that Japan's tax revenue for FY20/21 will likely be about JPY4 trln below original expectations while bond issuance is expected to reach a record of JPY100 trln. Australia's consumer confidence reached a ten year high in the December reading. KIA's unionized employees are on a partial strike until Friday. Chinese companies will reportedly be allowed to issue bonds to international investors that will offer settlement in multiple currencies.

In economic data:

China's November CPI -0.6% m/m (expected -0.2%; last -0.3%); -0.5% yr/yr (expected 0.8%; last 0.5%). November PPI -1.5% yr/yr (expected -1.8%; last -2.1%) and November total social financing CNY2.13 trln (expected CNY2.075 trln; last CNY1.42 trln)

Japan's October Core Machinery Orders 17.1% m/m (expected 2.8%; last -4.4%); 2.8% yr/yr (expected -11.3%; last -11.5%). November Machine Tool Orders 8.0% yr/yr (last -6.0%)

Australia's October Building Permits 3.8% m/m (last 16.2%) and December Westpac Consumer Sentiment 4.1% m/m (last 2.5%)

New Zealand's Q3 Manufacturing Sales Volume 17.3% qtr/qtr (last -12.2%)

---Equity Markets---

Japan's Nikkei: +1.3%

Hong Kong's Hang Seng: +0.8%

China's Shanghai Composite: -1.1%

India's Sensex: +1.1%

South Korea's Kospi: +2.0%

Australia's ASX All Ordinaries: +0.6%

---FX---

USD/JPY: UNCH at 104.13

USD/CNH: UNCH at 6.5155

USD/INR: -0.1% to 73.64

Europe: DAX +0.9%, FTSE +0.3%, CAC +0.2%

Major European indices trade in the green. German Chancellor Merkel said that there is "great uncertainty" surrounding the EU budget and that the region is prepared for a no-deal Brexit. The British Prime Minister is expected to speak with the European Commission President this evening. Italy's Prime Minister expressed hope for the EU rescue fund to become permanent.

In economic data:

Germany's October trade surplus EUR18.20 bln (expected EUR18.00 bln; last EUR17.60 bln). October Imports 0.3% m/m (expected 1.0%; last 0.2%) and exports 0.8% m/m (expected 1.2%; last 2.3%)

Spain's October Industrial Production -1.6% yr/yr (expected -2.6%; last -3.1%) and November Consumer Confidence 55.7 (last 48.5)

---Equity Markets---

STOXX Europe 600: +0.5%

Germany's DAX: +0.9%

U.K.'s FTSE 100: +0.3%

France's CAC 40: +0.2%

Italy's FTSE MIB: +0.1%

Spain's IBEX 35: +0.4%

---FX---

EUR/USD: +0.1% to 1.2110

GBP/USD: +0.8% to 1.3456

USD/CHF: UNCH at 0.8889