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[color=purple][i][b]Where have we been and where are we …. wishing all a good & safe week ahead
While both the Afghan & Delta variants are creating concerns + inflation & over-priced stocks
Still the “great correction” is not likely soon — with TRILLIONS of $$$ artificially infused in economy
While the “deer & the antelope play” in SW Virginia — we should be positive & make of each new day 8)[/b][/i][/color][article]2608[/article]
Another week begins…
Market Updates
S&P Futures vs Fair Value: +13.0
10 yr Note: 1.276%USD/JPY: 110.03 +0.26
EUR/USD: 1.1730 +0.0029Europe: FTSE: +0.3% DAX: +0.1% CAC: +0.7%
Asia: Hang Seng: +1.1% Shanghai: +1.5% Nikkei: +1.8%Gold (1790.40 +6.40) Silver (23.39 +0.28) Crude (64.22 +2.08)
Overnight Summary — World markets off to a strong start[/size]
The global equity markets are pushing to higher ground to begin the week. S&P Futures are up about 13 points to around the 4451 area. The strength has been steady throughout the session. The market saw its low put in at 4433.50, occurring within the first few minutes of trading. The high was established around the midpoint of the Asian session at 4455.00.
In Asia, both China and Japan closed strong with gains of 1.5% and 1.8%, respectively. China benefited from a turn in sentiment after a state official commented how effective China’s cross-cyclical macroeconomic policy has been on stabilizing the economy. In Japan, the Nikkei saw a hefty bounce after closing at a seven month low last week. Shipping companies led the way higher with names such as Mitsui O.S.K Lines and Kawasaki Kisen Kaisha rising over 5%.
In Europe, the major bourses are in the green. Commodity related stocks are among the best performing groups. Crude oil’s rebound of over 3% has helped energy producers BP, Royal Dutch Shell and TotalEnergies rise 1-2%. Likewise, with metals such as silver, copper and platinum up 1-2%, miners like Antofagasta and Glencore are keeping pace with gains of as much as 2%.
Gapping down
UBER -5.1% (files prospectus supplement related to ~25.28 mln share offering by selling stockholders to prospectus dated July 21, 2020)
VXX -2.4% (volatility easing back with US futures strong in pre-mkt)
FFIE -1.3% (files for 236,226,156 share common stock offering by selling shareholders)Gapping up
In reaction to earnings/guidance:
BTBT +6%, MSGE +1.2%, JD +0.9%
Select commodity ETFs trading higher:USO +3.5%, OIH +2.4%, XLE +2.1%, SLV +2.1%, GDX +1.7%
Other news:
TRIL +191.5% (Pfizer (PFE) to acquire Trillium Therapeutics for an implied equity value of $2.26 bln, or $18.50 per share, in cash) CIO +24.7% (to sell all of its holdings in the Sorrento Mesa submarket of San Diego for $576 mln)
AXSM +19.5% (provides update on the new drug application for AXS-05 for the treatment of major depressive disorder)
BNTX +7.4% (FDA pushing to approve Covid-19 vaccine on Monday, according to NY Times)
BGRY +6.5% (files for 14.75 mln share common stock offering upon warrant exercise; also files for 205,457,460 share common stock offering by selling shareholders)
EDIT +5.7% (presents preclinical data on its gene editing technology SLEEK)
PFE +3.5% (FDA pushing to approve Covid-19 vaccine on Monday, according to NY Times; to acquire Trillium Therapeutics (TRIL) for an implied equity value of $2.26 bln)
MVST +2.7% (files for 27.6 mln share common stock offering; also files for 293,860,106 share common stock offering by selling shareholders)
PSFE +2.7% (to acquire viafintech in all-cash transaction)
BGNE +2.5% (receives CDE acceptance of sBLA for anti-PD-1 antibody tislelizumab in combination with chemotherapy)
TDUP +2.3% (announces final IPO lock-up release)
NGCA +2.2% (Space solutions firm Vieco USA (Virgin Orbit) and
NGCA enter into SPAC merger agreement; to begin trading under ticker “VORB”, deal includes $100 mln PIPE investment)
AMRN +2% (presents data from demonstrating VASCEPA/VAZKEPA (Icosapent Ethyl) significantly reduces ischemic events in patients with prior heart attacks)
MAXR +1.5% (awarded big data analytics contract from NGA)
CRON +1.5% (Cronos Group and Ginkgo Bioworks announce achievement of equity milestone in partnership to produce cultured cannabinoids)
BA +1.3% (will invest in Virgin Orbit as part of a $3.2 bln SPAC listing, according to WSJ)
LUNG +1.2% (announces positive coverage policy for endobronchial valves from Blue Cross Blue Shield)Analyst comments:
CLR +4.5% (upgraded to Overweight from Equal Weight at Wells Fargo)
DY +3.4% (upgraded to Overweight from Equal Weight at Wells Fargo)
EOG +3.1% (upgraded to Overweight from Equal Weight at Wells Fargo)
ACVA +3% (upgraded to Buy from Neutral at Citigroup)
SNAP +1.5% (upgraded to Buy from Neutral at Arete)Stifel initiated coverage of Traeger (COOK) with a Buy rating and $31 price target.
Traeger is a disruptive innovator in the $15B global outdoor grill market, and the firm sees Traeger as uniquely positioned to benefit from heightened consumer interest in outdoor living and cooking great meals at home, believes the business can support 20% revenue growth and 30% EBITDA growth through 2025, and sees potential for shares to double in three years.
Baird initiated coverage of PowerSchool (PWSC) with an Outperform rating and $30 price target.
The firm said from a dominant standing in student information systems, the company has built out a Unified Platform that addresses the full scope of school operations, instruction, and talent management. With strong K-12 funding in place and customers prioritizing digital investments, the firm believes PowerSchool is well positioned to deliver solid double-digit organic growth and improving financial returns.
Piper Sandler initiated coverage of Robinhood (HOOD) with a Neutral rating and $47 price target.
The firm believes Robinhood is an industry leader revolutionizing the e-brokerage space, democratizing finance, and making investing available to the masses. The firm notes there are risks – both regulatory and related to growth.
Downgrades
Arete downgraded Facebook (FB) to Neutral from Buy with an unchanged price target of $381. The firm notes Facebook’s growth is reliant on advertising pricing, which is likely to see pressure. The firm sees Facebook shares moving “sideways” before initiatives such as the monetization of Reels and on-platform commerce gain traction into fiscal 2022.
Upgrades
Citi upgraded ACV Auctions (ACVA) to Buy from Neutral with a price target of $23, down from $29. The firm notes the stock has been under pressure this year despite two robust quarterly earnings. The firm suspects the market viewed ACV’s valuation as rich. However, at current levels, the share gains seem reasonable to the firm.
Arete analyst Rocco Strauss upgraded Snap (SNAP) to Buy from Neutral with a price target of $83, up from $72. The firm believes advertising pricing pressure on Facebook (FB) and Instagram will create a spillover effect, with Pinterest and Snap to benefit from advertising budgets shifting to second-tier platforms.
Wells Fargo upgraded Dycom (DY) to Overweight from Equal Weight with a price target of $90, up from $77. The firm has increasing confidence that Dycom will be a meaningful participant in the fiber-to-the-premise investment cycle over the next five years. The firm projects fiber passings will grow 15% per year through 2025 and that the telcos will spend greater than $70B in capex in building new fiber premises. The firm notes the FTTH acceleration will be additive to other positive catalysts for Dycom, including cable fiber-deep initiatives, rural fiber deployments and potential stimulus funding from the infrastructure bill. The firm thinks the stock at current levels offers an attractive entry point with an “asymmetric risk/reward.”
[color=green][size=5][b]Dow 35,335.71 215.63 0.61%
S&P 500 4,479.53 37.86 0.85%
Nasdaq 14,942.65 227.99 1.55%
GlobalDow 4,006.89 45.92 1.16%
Gold 1,805.90 21.90 1.23%
Oil 65.42 3.28 5.28% [/b][/size][/color]CELTIC GREEN – NASDAQ sets new record close
US President Biden will speak at noon (Washington time) Tuesday on Afghanistan withdrawal deadline
Biden will attend a virtual G7 meeting is at 9.30 am US ET Tuesday (1330 GMT).
The discussion will center on extending the Afghanistan deadline.
Meeting between US President Biden and China President Xi Jinping may be delayed
The two were expected to meet in person at the G20 leaders summit in Rome on October 30-31.
The latest out of China is that plans are being made for Xi to attend the summit via video link, not in person. No final decision on this has been made.
Media reports cite unnamed sources familiar with arrangements. And also speculate Xi’s non-attendance would be indicative of:
partly because of safety concerns over the coronavirus pandemic also the lack of progress made to restart the stalled China-US relationshipMarket Updates
S&P Futures vs Fair Value: +7.0
10 yr Note: 1.265%
USD/JPY: 109.79 +0.09
EUR/USD: 1.1729 -0.0014
Europe: FTSE: -0.2% DAX: +0.3% CAC: -0.2%
Asia: Hang Seng: +2.5% Shanghai: +1.1% Nikkei: +0.9%
Gold (1805.10 -1.20) Silver (23.69 +0.03) Crude (66.29 +0.65)[/left]Overnight Summary — World markets maintain bullish edge
The global equity markets are mostly higher. S&P Futures are up about seven points to around the 4482 area. The market was generally quiet save for a quick burst in between the Asian and European sessions. The range has been contained to 12 points with a low of 4480.00 and a high of 4492.00.
In Asia, both China and Japan closed with gains of around 1%. The Shanghai advanced in the wake of the SEC issuing disclosure requirements for Chinese firms opting to list IPOs in the US. Hong Kong saw a relief rally extended with a 2.5% advance. In Japan, the Nikkei echoed the tone seen in the US on Monday. Heavyweights led the way higher with names such as SoftBank, Fast Retailing and Tokyo Electron gaining 1-2%.
In Europe, the major bourses are mixed. The DAX is outperforming its peers with strength stemming from better than expected German GDP for Q2. Travel stocks are on the rebound with airliners such as Lufthansa. IAG, EasyJet and Air France KLM up 2-3%. Mining stocks remain strong with the likes of Glencore and Anglo American rising more than 1%.
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