DAILY MORNING CHAI

 The S&P 500 futures trade 26 points, or 0.7%, above fair value following four straight modest declines in the benchmark index. The gains appear evenly distributed across the futures tied to the major indices, which remain near record territory.

Investors, meanwhile, continue to assess the slow grind of stimulus talks in Washington and the latest corporate news. Apple (AAPL 123.78, +2.02, +1.7%) is providing influential support for the futures market after it told suppliers that it's aiming to increase iPhone production by 30% in the first half of 2021, according to the Nikkei.

Separately, the FDA confirmed that Moderna's (MRNA 154.82, -0.25, -0.2%) vaccine is highly effective in preventing COVID-19 at least 14 days after the second dose. The administration will likely authorize the vaccine for emergency use later this week.

On the data front, investors will receive the Empire State Manufacturing Survey for December (Briefing.com consensus 6.0) and Export and Import Prices for November at 8:30 a.m. ET; Industrial Production (Briefing.com consensus 0.3%) and Capacity Utilization (Briefing.com consensus 73.0%) for November at 9:15 a.m. ET; and Net Long-Term TIC Flows for October at 4:00 p.m. ET.

U.S. Treasuries trade near their flat lines. The 2-yr yield is flat at 0.11%, and the 10-yr yield is up one basis point to 0.90%. The U.S. Dollar Index is down 0.1% to 90.58. WTI crude futures are up 0.6% to $47.25/bbl.

In U.S. Corporate news:

Apple (AAPL 123.78, +2.02): +1.7% after it told suppliers that it aims to increase iPhone production by 30% in the first half of 2021, according to the Nikkei.

Eli Lilly (LLY 161.55, +3.64): +2.3% after issuing upside guidance for FY20 and upside revenue guidance for FY21. On a related note, the company agreed to acquire Prevail Therapeutics (PRVL 23.10, +10.60, +84.8%) for $22.50 per share, or about 1.04 billion, in cash.

Apartment Investment & Mgmt (AIV 7.24, -33.10): -82.1% after completing the separation of Apartment Income REIT Corp. (AIRC). As a reminder, the company is leaving the S&P 500 prior to the open on Dec. 21.

Moderna (MRNA 154.82, -0.25): -0.2% after the FDA confirmed that its vaccine is highly effective in preventing COVID-19 at least 14 days after the second dose.

Reviewing overnight developments:

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

In economic data:

China's November Retail Sales 5.0% yr/yr (expected 5.2%; last 4.3%), November Industrial Production 7.0% yr/yr, as expected (last 6.9%), and November Fixed Asset Investment 2.6% yr/yr, as expected (last 1.8%). November Unemployment Rate 5.2%, as expected (last 5.3%). November FDI 6.3% yr/yr (last 6.4%)

South Korea's November trade surplus $5.90 bln (last surplus of $5.93 bln). Imports -1.9% yr/yr (last -2.1%) and Exports 4.1% yr/yr (last 4.0%)

New Zealand's Q4 Westpac Consumer Sentiment 106.0 (last 95.1)

In news:

The People's Bank of China conducted a CNY950 bln liquidity operation.

China's National Bureau of Statistics expects that growth in Q4 will expand at a quicker pace than in Q3.

South Korea's exports to New Zealand will be free of tariffs beginning in 2021.

Apple told its suppliers that it plans to assemble up to 230 mln iPhones in 2021, according to Nikkei.

Major European indices trade in mixed fashion with Germany's DAX (+0.8%) showing relative strength. STOXX Europe 600: +0.1%, Germany's DAX: +0.8%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.1%.

In economic data:

U.K.'s October Average Earnings Index + Bonus 2.7% yr/yr (expected 2.2%; last 1.3%). October Unemployment Rate 4.9% (expected 5.1%; last 4.8%). November Claimant Count 64,300 (expected 50,000; last -29,800)

France's November CPI 0.2% m/m, as expected (last 0.0%); 0.2% yr/yr, as expected (last 0.0%)

Italy's October trade surplus EUR7.565 bln (last surplus EUR5.847 bln). November CPI -0.1% m/m, as expected (last 0.2%); -0.2% yr/yr, as expected (last -0.3%)

Swiss November PPI -0.1% m/m (last 0.0%); -2.7% yr/yr (last -2.9%)

In news:

A post-Brexit trade deal has not been reached yet.

British Prime Minister Johnson will reportedly visit India in January to improve the trading relationship between the two countries.

Switzerland's stats agency expects that 2020 GDP will contract 3.3%, up from the previous forecast that called for a 3.8% contraction. The growth forecast for 2021 was lowered to 3.2% from 3.8%.

U.S equity futures:

S&P 500 Futures +25 @ 3665

DJIA Futures +174 @ 29955

Nasdaq Futures +79 @ 12542

Overseas:

Europe: DAX +0.8%, FTSE -0.3%, CAC +0.3%

Asia: Nikkei -0.2%, Hang Seng -0.7%, Shanghai -0.1%

Commodities:

Crude Oil +0.24 @ 47.23

Nat Gas -0.047 @ 2.635

Gold +16.30 @ 1848.40

Silver +0.375 @ 24.422

Copper +0.0128 @ 3.5393

U.S. Summary:

Earnings/Guidance (Full Earnings Calendar):

Belden (BDC) reaffirms Q4 guidance

Credit Suisse (CS) outlines medium-term financial targets during its 2020 Investor Update presentation; intends to restart buybacks in January 2021

Eli Lilly (LLY) sees FY20 EPS and revs above expectations; sees FY21 revs above estimates

EZCORP (EZPW) beats by $0.02, misses on revs

InfuSystem (INFU) issues FY21 guidance; revs ahead of consensus

WPP plc (WPP) to restate FY17-19 and first half of FY20

General News:

Electoral College tally exceeds 270 vote threshold for Joe Biden

A bipartisan group of lawmakers introduced two stimulus bills: A $748 bln stimulus with aid to small businesses and unemployment and a separate $160 bln bill for state and local government funding and liability protection, according to the New York Times

House Speaker Nancy Pelosi (D-CA) believes disagreements in omnibus government spending bill will be resolved "easily", according to Reuters

Several other US agencies and other US companies were compromised as part of Russian hacking incident, according to the New York Times

A new survey shows that a quarter of Americans do not want to take the coronavirus vaccine, according to the New York Times

Attorney General Barr resigning position, effective December 23

IEA forecasts that oil demand will fall by 8.8 mb/d yr/yr in 2020

Aclaris Therapeutics (ACRS) forms new Scientific Advisory Board of immuno-inflammatory experts; preliminary topline data for the ATI-450-RA-201 trial expected in January 2021

Advanced Energy (AEIS) initiates quarterly cash dividend of $0.10/share

Allogene (ALLO) and Overland Pharmaceuticals form joint venture in Greater China to develop and commercialize AlloCAR T cell therapies

Alnylam Pharma (ALNY) announces 2021 product and pipeline goals

Anavex (AVXL) announces its Phase 2 trial of ANAVEX2-73 in adult female patients with Rett syndrome met primary and secondary endpoints

Apartment Investment & Mgmt (AIV) completes separation of Apartment Income REIT Corp. (AIRC)

Apple (AAPL) aims to increase iPhone production by 30% in H1 of 2021, according to Nikkei

Ascendis Pharma (ASND) announces planned Board transition; intends to appoint Dr. Albert Cha to serve as Chair at 2021 Annual General Meeting

AstraZeneca (AZNO) receives approval recommendation CHMP for new dosing of Imfinzi

Athenex (ATNX): Almirall announces FDA approval of Klisyri, a new innovative topical treatment for actinic keratosis

AxoGen (AXGN): Oberland Capital exercises its option to purchase $3.5 mln of company stock

Baidu (BIDU) is mulling making its own electric cars according to Reuters

Boston Scientific (BSX) in filing discloses approval of new $1.0 bln common stock repurchase program

Capital One (COF) reports November card metrics

Cardinal Health (CAH) selected by Ohio Department of Health to help distribute COVID-19 vaccines

Castle Biosciences (CSTL) announces public offering of $125.0 mln of its common shares

City Office REIT (CIO) completes 10-year lease at Lake Vista property in Dallas, TX

Clean Energy Fuels (CLNE) extended contracts for more than 58 million gallons of Redeem renewable natural gas to accommodate the continued demand

Daimler Truck AG (VLVLY), IVECO, OMV, Shell (RDS.A) and the Volvo Group committed to work together to help create the conditions for the mass-market roll-out of hydrogen trucks in Europe

Eli Lilly (LLY) increases quarterly dividend by 15% to $0.85/share

Esperion Therapeutics (ESPR) appoint Sheldon Koenig as COO

Evolent Health (EVH) amended bylaws to implement proxy access

FedEx (FDX) and UPS (UPS) are putting limits on shippers to manage surge in packages, according to the Wall Street Journal

Fluor (FLR) announced today that Stork, part of Fluor's Diversified Services segment, was awarded a 26-month maintenance contract extension by Sitech Manufacturing Services in the Netherlands;

Gaming and Leisure Properties (GLPI) announces sale and lease transactions

Greenwich LifeSciences (GLSI) announces option agreement for pre-clinical coronavirus vaccine candid

Immuron (IMRN) SARS-CoV-2 research agreement with Monash University

Innovative Industrial Properties (IIPR) increases quarterly cash dividend to $1.24/share from $1.17/share

Intevac (IVAC) receives $5 million development contract award from Collins Aerospace

Iovance Biotherapeutics (IOVA) appoints Jean-Marc Bellemin as Chief Financial Officer

iRhythm (IRTC) announces that Kevin King will retire as President and CEO effective January 12, 2021

JBT Corp (JBT) appoints Brian Deck as CEO

JinkoSolar Holding (JKS) makes series of senior management changes

JPMorgan Chase (JPM) reports November card metrics

Kadant (KAI) receives two orders for fiber processing systems with a value of approximately $10 mln

Medtronic (MDT) OsteoCool procedure shows significant, swift pain relief and sustained improvement for cancer patients

Mesoblast (MESO) provides top-line results from DREAM-HF Phase 3 trial; no reduction in recurrent non-fatal decompensated heart failure events, the trial's primary endpoint

Moderna (MRNA) will likely get FDA emergency approval for its coronavirus vaccine this week (FDA documents set to be released today), according to the Wall Street Journal

Nevro (NVRO) announces that, in its patent litigation against Boston Scientific, the parties agreed to the dismissal of the patent case filed by Nevro

Norbord (OSB) to restart production at OSB mill in Quebec in spring 2021

Norwegian Cruise Line (NCLH) details recent developments; continues to be demand for future cruise vacations

Novartis AG (NVS) reports topline results from second Phase III trial of Beovu

OncoCyte (OCX) enters licensing agreement with Burning Rock (BNR) to test for early stage lung-cancer patients in China

Provention Bio (PRVB) initiates first-in-human study of Coxsackievirus B vaccine candidate PRV-101

Public Storage (PSA) issues statement in response to letter from Elliott

Ready Capital (RC) declares Q4 dividend of $0.35/share, up from $0.30/share in Q3

SEI Investments (SEIC) announced that Pacific Premier Trust, a division of Pacific Premier Bank (PPBI) will convert their wealth business to the SEI Wealth Platform during the first half of 2021

Uber (UBER) and DoorDash (DASH) increasing California prices, according to Bloomberg

Veeva Systems (VEEV) announces that Samsung Biologics adopts Veeva Vault QMS

Verastem (VSTM) announced the initiation of a Phase 2 registration-directed clinical trial of VS-6766; to seek FDA accelerated approval, pending trial outcome

vTv Therapeutics (VTVT) entered into a licensing agreement with Anteris Bio for worldwide rights to vTv's novel clinical-stage Nrf2 activator compound, HPP971

Waste Mgmt (WM) increases quarterly dividend to $0.575/share from $0.545/share; authorizes repurchase of up to $1.35 bln of common stock

Welltower (WELL) announced a $550 mln joint venture partnership between Welltower and certain vehicles managed by Wafra

ZIOPHARM (ZIOP) announces departure of CFO Sath Shukla, effective December 31

M&A:

Alarm.com (ALRM) acquires Shooter Detection Systems; terms not disclosed

Alaska Comms (ALSK) received an acquisition proposal from a third party at $3.25 per share that constitutes a "Superior Proposal"

America Movil SA (AMX) discloses that the binding offer submitted by its Brazilian subsidiary, Claro jointly with Telefoinica Brasil (TEF) and TIM SA was declared winner for the acquisition of the mobile business owned by Oi Group

Brown & Brown (BRO) announced that its unit Hull & Company has acquired substantially all of the assets of South & Western and all issued and outstanding shares of its affiliate, S&W Premium Finance

Cardtronics (CATM) to be acquired for $35.00 per share by funds affiliated with Apollo Global Management (APO) and Hudson Executive Capital

Centene (CNC) announced it has signed a definitive agreement to acquire PANTHERx

Chart Industries (GTLS) acquires 15% ownership of HTEC Hydrogen Technology & Energy Corporation and signs strategic commercial hydrogen MOU

Eaton (ETN) to acquire 50% stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and markets low-voltage circuit breakers; expected to close in Q2 2021

Grid Dynamics (GDYN) announces acquisition of Netherlands-based Daxx; terms not disclosed

PQ Group (PQG) completes sale of Performance Materials business for purchase price of $650 mln; declares special cash dividend of $1.80/share

Prevail Therapeutics (PRVL): Lilly (LLY) to acquire Prevail Therapeutics for $22.50 per share in cash

Primoris Services (PRIM) agrees to acquire Future Infrastructure Holdings for $620 mln in cash

TC Pipelines (TCP): TC Energy (TRP) announces definitive agreement to acquire all outstanding common units of TC PipeLines

Wells Fargo (WFC): Private equity firms are mulling bids for Wells Fargo asset management unit, according to Bloomberg

WEX (WEX) completes acquisition of eNett and Optal; parties also agree to settle outstanding litigation in English Courts

Syndicate:

Arvinas (ARVN) commences public offering of $250.0 mln of its common stock

Cellectis (CLLS) commences public offering of $100 mln of its American Depositary Shares, each representing one ordinary share of Cellectis

GrafTech International (EAF) announces that affiliates of Brookfield Asset Management Inc. and Brookfield Business Partners LP intend to offer 7.0 mln shares of GrafTech common stock

GrafTech International (EAF) upsizes offering by 1.5 mln shares and prices offering 8.5 mln shares of common stock

Mirum Pharmaceuticals (MIRM) prices 3.75 mln shares of common stock at $20.00 per share

Ocular Therapeutix (OCUL) commences public offering of $75.0 mln of its common stock

TG Therapeutics (TGTX) prices 6.23 mln shares of common stock at $43.50 per share

Vail Resorts (MTN) commences private offering of $500.0 mln aggregate principal amount of convertible senior notes due 2026

IPOs:

Expected to Price:

BioAtla (Nasdaq: BCAB): The clinical-stage biopharmaceutical company developing highly specific and selective antibody-based therapeutics for the treatment of solid tumor cancer is expected to price its 9.4 M share IPO between $15-$17.

ContextLogic (Nasdaq: WISH): The global eCommerce platform is expected to price its 46.0 M share IPO between $22-$24.

Upstart (Nasdaq: UPST): The cloud-based artificial intelligence lending platform is expected to price its 12.0 M share IPO between $20-$22.

Gapping Up/Down

Gapping up:

OCX +99.1%, PRVL +86.4%, IMRN +15%, PQG +9.4%, RIDE +5.8%, ALLO +4.6%, CWH +3.6%, IVAC +3.1%, TGTX +2.8%, CLNE +2.6%, ZNGA +2.5%, LLY +2.3%, ARVN +2.2%, RC +2.2%, CS +2.1%, IIPR +2%, JKS +1.3%, BSX +1.1%, AZN +0.9%, JPM +0.8%, WPP +0.7%, GLSI +0.5%

Gapping down:

MIRM -14%, MESO -5.3%, EAF -5.2%, OCUL -3%, ZIOP -1.3%, MTN -1.1%

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

Upgrades:

AGCO Corp (AGCO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $122

AGCO Corp (AGCO) upgraded to Buy from Hold at Deutsche Bank

American Campus Communities (ACC) upgraded to Buy from Hold at Deutsche Bank; tgt $49

ArcelorMittal (MT) upgraded to Buy from Hold at Societe Generale

Atlantica Yield (AY) upgraded to Buy from Neutral at Seaport Global Securities

Atmos Energy (ATO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $113

Becton Dickinson (BDX) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $297

CNH Industrial (CNHI) upgraded to Buy from Hold at Deutsche Bank

Comp Siderurgica (SID) upgraded to Buy from Neutral at Goldman

Emerson (EMR) upgraded to Buy from Hold at Deutsche Bank

Equifax (EFX) upgraded to Overweight from Neutral at Atlantic Equities; tgt $228

Exxon Mobil (XOM) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $53

Flowserve (FLS) upgraded to Buy from Hold at Stifel; tgt $45

Gerdau S.A. (GGB) upgraded to Overweight from Equal-Weight at Morgan Stanley

Inari (NARI) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $79

Independence Realty Trust (IRT) upgraded to Buy from Hold at Deutsche Bank; tgt $15

Ionis Pharma (IONS) upgraded to Outperform from Market Perform at Cowen

ITT (ITT) upgraded to Buy from Hold at Stifel; tgt $100

Kimco Realty (KIM) upgraded to Buy from Neutral at Citigroup; tgt raised to $16.50

Lumentum (LITE) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $105

Medical Properties Trust (MPW) upgraded to Buy from Hold at Deutsche Bank; tgt $24

Medtronic (MDT) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $140

Mohawk (MHK) upgraded to Hold from Sell at Deutsche Bank; tgt $135

Occidental Petro (OXY) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $20

REV Group (REVG) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $10

RPT Realty (RPT) upgraded to Buy from Hold at Deutsche Bank; tgt $10

Terex (TEX) upgraded to Buy from Hold at Stifel; tgt raised to $41

Wells Fargo (WFC) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $36

Zynga (ZNGA) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $12.50

Downgrades:

Avaya Holdings (AVYA) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $22

Becton Dickinson (BDX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $265

Boston Properties (BXP) downgraded to Hold from Buy at Deutsche Bank; tgt $103

Buenaventura SA (BVN) downgraded to Neutral from Buy at Goldman

Calumet Specialty Products (CLMT) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $4

Chevron (CVX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $105

Clearway Energy (CWEN) downgraded to Neutral from Buy at Seaport Global Securities

Grupo Televisa (TV) downgraded to Equal-Weight from Overweight at Morgan Stanley

Hexcel (HXL) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

II-VI (IIVI) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $76

Innate Pharma (IPHA) downgraded to Mkt Perform from Outperform at SVB Leerink; tgt lowered to $5

Intuitive Surgical (ISRG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $780

Iovance Biotherapeutics (IOVA) downgraded to Neutral from Buy at H.C. Wainwright

Johnson Controls (JCI) downgraded to Hold from Buy at Deutsche Bank

L3Harris (LHX) downgraded to Neutral from Overweight at JP Morgan; tgt $215

Macerich (MAC) downgraded to Sell from Neutral at Citigroup; tgt raised to $9.50

Murphy Oil (MUR) downgraded to Underweight from Equal Weight at Wells Fargo; tgt $11

NuVasive (NUVA) downgraded to Underweight from Equal Weight at Wells Fargo; tgt $48

NXP Semi (NXPI) downgraded to Neutral from Buy at Goldman; tgt raised to $160

Pactiv Evergreen (PTVE) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $18

Rayonier (RYN) downgraded to Mkt Perform from Outperform at Raymond James

Tandem Diabetes Care (TNDM) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $105

United Rentals (URI) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $180

Watts Water Tech. (WTS) downgraded to Hold from Buy at Stifel; tgt raised to $124

Xylem (XYL) downgraded to Hold from Buy at Stifel; tgt $100

Others:

AGCO Corp (AGCO) initiated with an Outperform at Oppenheimer; tgt $114

American Equity Investment Life (AEL) initiated with an Outperform at Credit Suisse; tgt $35

Biohaven Pharmaceutical (BHVN) initiated with a Buy at H.C. Wainwright; tgt $121

Bristol-Myers (BMY) added to Conviction Buy List at Goldman

Carvana (CVNA) initiated with a Buy at Truist; tgt $314

CNH Industrial (CNHI) initiated with a Perform at Oppenheimer

CNX Resources (CNX) initiated with a Neutral at BofA Securities; tgt $12

Deere (DE) initiated with an Outperform at Oppenheimer; tgt $296

Dick's Sporting Goods (DKS) initiated with an Underweight at Stephens; tgt $45

EQT Corp. (EQT) initiated with a Buy at BofA Securities; tgt $19

Global Blood Therapeutics (GBT) resumed with a Buy at H.C. Wainwright; tgt $75

Intra-Cellular Therapies (ITCI) initiated with a Buy at BofA Securities; tgt $40

Kornit Digital (KRNT) initiated with a Neutral at Goldman; tgt $83

Maravai Life Sciences (MRVI) initiated with an Outperform at Robert W. Baird; tgt $31

Maravai Life Sciences (MRVI) initiated with a Buy at Jefferies

Maravai Life Sciences (MRVI) initiated with a Buy at BofA Securities; tgt $31

Maravai Life Sciences (MRVI) initiated with a Buy at Goldman; tgt $38

NeoGames (NGMS) initiated with an Outperform at Macquarie; tgt $28

The RealReal (REAL) initiated with an Overweight at Piper Sandler; tgt $19

Revolve Group (RVLV) initiated with an Overweight at Piper Sandler; tgt $30

Sotera Health (SHC) initiated with an Outperform at Credit Suisse; tgt $31

Sotera Health (SHC) initiated with a Buy at Goldman; tgt $34

Sotera Health (SHC) initiated with a Buy at Citigroup; tgt $32

Sotera Health (SHC) initiated with an Outperform at RBC Capital Mkts; tgt $31

Stoke Therapeutics (STOK) resumed with a Buy at H.C. Wainwright; tgt $70

United Natural Foods (UNFI) initiated with an Outperform at Wolfe Research; tgt $19

Velodyne Lidar (VLDR) initiated with a Buy at Needham; tgt $30

Vroom (VRM) initiated with a Buy at Truist; tgt $58

WAVE Life Sciences (WVE) resumed with a Buy at H.C. Wainwright; tgt $20

WW (WW) initiated with an Outperform at Wolfe Research; tgt $36

Upcoming Events:

Econ Data:

08:30 ET: Export Prices for November (Briefing.com Consensus NA; Prior 0.2%)

08:30 ET: Export Prices ex-ag. for November (Briefing.com Consensus NA; Prior 0.0%)

08:30 ET: Import Prices for November (Briefing.com Consensus NA; Prior -0.1%)

08:30 ET: Import Prices ex-oil for November (Briefing.com Consensus NA; Prior 0.1%)

08:30 ET: Empire State Manufacturing for December (Briefing.com Consensus 6.0; Prior 6.3)

09:15 ET: Industrial Production for November (Briefing.com Consensus 0.3%; Prior 1.1%)

09:15 ET: Capacity Utilization for November (Briefing.com Consensus 73.0%; Prior 72.8%)

16:00 ET: Net Long-Term TIC Flows for October (Briefing.com Consensus NA; Prior $108.9B)

Earnings:

Monday (Dec 14)

Morning: None of note

Afternoon: None of note

Tuesday (Dec 15)

Morning: None of note

Afternoon: AOUT, NDSN

Wednesday (Dec 16)

Morning: TTC

Afternoon: ABM, MLHR, LEN

Thursday (Dec 17)

Morning: ACN, CAMP, GIS, JBL, RAD, SASFM, WOR

Afternoon: AIR BB FDX SCS

Friday (Dec 18)

Morning: APOG DRI WGO

Afternoon: NKE

Asia & Europe detail:

Asia: Nikkei -0.2%, Hang Seng -0.7%, Shanghai -0.1%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly flat note. The People's Bank of China conducted a CNY950 bln liquidity operation. China's National Bureau of Statistics expects that growth in Q4 will expand at a quicker pace than in Q3. South Korea's exports to New Zealand will be free of tariffs beginning in 2021. Apple told its suppliers that it plans to assemble up to 230 mln iPhones in 2021, according to Nikkei.

In economic data:

China's November Retail Sales 5.0% yr/yr (expected 5.2%; last 4.3%), November Industrial Production 7.0% yr/yr, as expected (last 6.9%), and November Fixed Asset Investment 2.6% yr/yr, as expected (last 1.8%). November Unemployment Rate 5.2%, as expected (last 5.3%). November FDI 6.3% yr/yr (last 6.4%)

South Korea's November trade surplus $5.90 bln (last surplus of $5.93 bln). Imports -1.9% yr/yr (last -2.1%) and Exports 4.1% yr/yr (last 4.0%)

New Zealand's Q4 Westpac Consumer Sentiment 106.0 (last 95.1)

---Equity Markets---

Japan's Nikkei: -0.2%

Hong Kong's Hang Seng: -0.7%

China's Shanghai Composite: -0.1%

India's Sensex: UNCH

South Korea's Kospi: -0.2%

Australia's ASX All Ordinaries: -0.5%

---FX---

USD/JPY: -0.1% to 103.91

USD/CNH: +0.1% to 6.5309

USD/INR: -0.1% to 73.56

Europe: DAX +0.8%, FTSE -0.3%, CAC +0.3%

Major European indices trade in mixed fashion with Germany's DAX (+0.8%) showing relative strength. A post-Brexit trade deal has not been reached yet. British Prime Minister Johnson will reportedly visit India in January to improve the trading relationship between the two countries. Switzerland's stats agency expects that 2020 GDP will contract 3.3%, up from the previous forecast that called for a 3.8% contraction. The growth forecast for 2021 was lowered to 3.2% from 3.8%.

In economic data:

U.K.'s October Average Earnings Index + Bonus 2.7% yr/yr (expected 2.2%; last 1.3%). October Unemployment Rate 4.9% (expected 5.1%; last 4.8%). November Claimant Count 64,300 (expected 50,000; last -29,800)

France's November CPI 0.2% m/m, as expected (last 0.0%); 0.2% yr/yr, as expected (last 0.0%)

Italy's October trade surplus EUR7.565 bln (last surplus EUR5.847 bln). November CPI -0.1% m/m, as expected (last 0.2%); -0.2% yr/yr, as expected (last -0.3%)

Swiss November PPI -0.1% m/m (last 0.0%); -2.7% yr/yr (last -2.9%)

---Equity Markets---

STOXX Europe 600: +0.1%

Germany's DAX: +0.8%

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

France's CAC 40: +0.3%

Italy's FTSE MIB: +0.1%

Spain's IBEX 35: -0.1%

---FX---

EUR/USD: +0.1% to 1.2156

GBP/USD: +0.4% to 1.3371

USD/CHF: -0.1% to 0.8856