Traders Market Weekly: Expect the Unexpected

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    Monday – October 10

    All week – Watch for monthly deliveries reports from Boeing (BA) and Airbus (OTCPK:EADSF).
    All day – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange will be closed for the Thanksgiving holiday.
    All day – Shareholders with Meridian Bioscience (VIVO) vote on the $1.53B all-cash buyout from South Korea’s SD Biosensor and SJL Partners
    All day – A vote is scheduled on extending the deadline on the Digital World Acquisition Corp. (DWAC) SPAC deal with Truth Social.
    All day – Yum China (YUMC) will hold a special shareholder meeting to vote on items regarding a primary Hong Kong listing.
    All day – One of the biggest events of the year in the casino sector starts with the Global Gaming Expo presented by the American Gaming Association. Top execs from Wynn Resorts (WYNN), FanDuel (OTCPK:PDYPY), Bally’s Corporation (BALY), and Penn National Gaming (PENN) will give talks. Also watch for news on the sports betting front with DraftKings (DKNG) and Disney (DIS) reported to be close to a partnership announcement.
    All day – AbbVie (ABBV) will present Phase 3 data at the United European Gastroenterology meeting. Analysts have circled the healthcare stock for a potential bounce.


    Tuesday – October 11

    All day – The two-day Robin Hood conference begins in New York. The event will feature stock picks and investing discussions. Participants include J.P. Morgan, Citadel, BlackRock, Coatue, Bridgewater Associates, Greenlight Capital, and Glenview Capital Management.
    All day – Insight Enterprises (NSIT) will host its 2022 Investor Day
    All day – Asana (ASAN) will host an investor event at Oracle Park, which is the home of the San Francisco Giants. Top execs will talk about MLB’s new initiatives and how MLB is using Asana’s platform to achieve them. Asana CEO Dustin Moskovitz will also host a question and answer session for investors.


    Wednesday – October 12

    All day – OPEC is due to issue its monthly oil report.
    All day – AppFolio Inc. (APPF) will host an investor meeting.
    All day – Planet Labs PBC (PL) will hold an Investor Day event.

    Premarket – Watch PepsiCo (PEP) earnings with Bank of America calling out for upside to organic sales growth given recent Nielsen data. Options trading implies a 3% move for PepsiCo shares after the report drops.

    8:30 a.m. The September producer price index will be released to expectations for a 0.1% month-to-month drop. After stripping out food and energy costs, PPI is forecast to rise 0.3% from August and 7.3% compared to a year ago. Bank of America forecasts a below-consensus flat PPI reading following two consecutive monthly declines, which could tamp down some inflation fears.

    2:00 p.m. FOMC Minutes will be released covering the September 20-21 meeting. At that meeting, Fed officials lifted the Fed Funds rate target by 75 basis points for the third time and detailed their rate forecasts in the Summary of Economic Projections. The minutes are expected to reinforce that the Fed remains committed to seeing inflation back to 2% over time, although the nuances over how members view the path for economic growth and employment rates will be closely watched.

    Postmarket – Jefferies Financial Group (JEF) will host its annual Investor Day with presentations from top management.


    Thursday – October 13

    All day – Braze (BRZE) will hold an investor event to discuss its business and product development efforts.
    All day – Nexa Resources S.A. (NEXA) will hold an investor day event.

    Premarket – Analysts have the earnings reports from Domino’s Pizza (DPZ) and Delta Air Lines (DAL) highlighted as potential share price movers across the restaurant and airline sectors, respectively.

    7:00 a.m. Walgreens (WBA) will hold a conference call with more time allocated than normal with management expected to outline the growth trajectory for the core business and Walgreens Health. Options trading implies a move of 7% for Walgreens following the earnings release.

    8:30 a.m. The Bureau of Labor Statistics will release the consumer price index report for September. Headline CPI is expected to be up 0.2% month-over-month and the year-over-year inflation rate is forecast to drop slightly to 8.1% from 8.3% in August.

    9:00 a.m. Wayfair (W) will hold a special meeting with a sole purpose of voting on an amendment to the online retailer’s 2014 Incentive Award Plan to increase the aggregate number of shares of Class A common stock authorized for issuance by 5M to 32,187,784 shares.


    Friday – October 14

    All day – Edgewise Therapeutics (ETX) will present at the 27th International Hybrid Annual Congress of the World Muscle Society on EDG-5506, an investigational therapy designed to protect injury-susceptible fast skeletal muscle fibers in dystrophinopathies. Shares of EWTX have soared in the past after EDG-5506 developments.
    All day – Shareholders with Avalara (AVLR) will vote on the 48.4B buyout by Vista Equity. The deal has attracted mixed reactions from investors and proxy firms.
    All day – The go-shop period on the buyout of Store Capital (STOR) by real estate giants GIC and Blue Owl’s Oak Street expires.

    Premarket – Earnings reports from major banks pour in. Options trading implies moves of 5% or more for Citigroup (C), Wells Fargo (WFC), Morgan Stanley (MS), and JPMorgan Chase (JPM). Citigroup posted a double-digit rally the last time it reported earnings.


    IPO preview: IPOs that could start trading next week include

    biopharma Genelux Corporation (GNLX) and tech firm Beamr Imaging Ltd (BMR).

    The quiet periods on Corebridge Financial (CRBG), Third Harmonic Bio (THRD), and Linkbancorp (LNKB) to free up analysts to post ratings.

    The IPO lockup periods expire on blocks of shares of Excelerate Energy (EE), Applied Blockchain (NASDAQ:APLD), Genius Group (NYSE:GNS), and Netcapital (NCPL).

    US Weekly IPO and SPAC Monitor: Biotech Alopexx, Software Companies Beamr and Castellum


    Barron’s mentions:

    Professional sports teams are worth more than ever, but one of the few public plays on the sector is languishing at a big discount to the value of its teams.

    It’s time to buy Madison Square Garden Sports stock. Madison Square Garden Sports (NYSE:MSGS) is highlighted as an attractive pick. The math could be pretty simple with the value of the New York Knicks ($5.8B) and New York Rangers $2.0B) sitting at well over the $3.6B market cap of the stock and enterprise value of $3.8B, less than half the estimated value of those teams.

    The bullish take on the stock is that it is a cheap play on pro sports teams, whose value keeps rising. There is also a debate on if the stock is being held down by a “Dolan discount” or the perception that the family will destroy value and will not monetize the teams. However, the Dolans have not ruled out selling a minority stake in the company, which could boost shares.


    Equity indices in the Asia-Pacific region began the week on a lower note while markets in Japan and South Korea were closed for holidays.

    Japan’s Nikkei: CLOSED,
    Hong Kong’s Hang Seng: -3.0%,
    China’s Shanghai Composite: -1.7%,
    India’s Sensex: -0.3%,
    South Korea’s Kospi: CLOSED, Australia’s ASX All Ordinaries: -1.5%.


    China’s September Caixin Services PMI 49.3 (expected 54.5; last 55.0)
    Australia’s September AIG Services Index 48.0 (last 53.5)
    China’s Shanghai Composite (-1.7%) retreated after returning from a weeklong break.
    Bank of Korea warned that about 380,000 South Korean households are at a high risk of default due to excessive debt.
    China’s Caixin Services PMI returned into contractionary territory in the September reading.
    Japan’s Prime Minister Kishida is expected to meet with his Australian counterpart in Perth later this month.


    Major European indices trade on a mostly lower note while Germany’s DAX (+0.6%) outperforms.

    STOXX Europe 600: -0.1%,
    Germany’s DAX: +0.6%,
    U.K.’s FTSE 100: -0.2%,
    France’s CAC 40: -0.2%,
    Italy’s FTSE MIB: -0.1%,
    Spain’s IBEX 35: -0.2%.


    Eurozone’s October Sentix Investor Confidence -38.3 (expected -34.7; last -31.8)
    BMW reported a 0.9% yr/yr decrease in unit sales in Q3 and reaffirmed its sales guidance for the year.
    The Bank of England announced that the limit for Gilt purchases was doubled to GBP10 bln but the program is still due to expire on Friday.
    The British government is expected to announce a medium-term fiscal plan on October 31.
    Renault is reportedly being pressured by Nissan to reduce its stake in Nissan to 15%.


    Kraft Heinz (KHC 33.70 +0.67 +2.03%): upgraded to buy from neutral at Goldman
    Procter & Gamble (PG 122.72 -1.55 -1.25%): downgraded to neutral from buy at Goldman
    Ford (F 11.73 -0.47 -3.85%): downgraded to Sell from Neutral at UBS
    General Motors (GM 32.43 -1.19 -3.54%): downgraded to Neutral from Buy at UBS
    Tesla (TSLA 222.21 -0.86 -0.39%): delivered 83,135 China produced EVs last month, according to Reuters.
    Merck & Co. (MRK 89.75 +2.15 +2.45%): announces positive top-line results from pivotal phase 3 stellar trial evaluating Sotatercept for the treatment of adults with pulmonary arterial hypertension; upgraded to Buy from Neutral at Guggenheim
    Rivian (RIVN 31.17 -2.78 -8.19%): aiming to recall nearly all of its vehicles due to a steering issue, according to The Wall Street Journal.
    Las Vegas Sands (LVS 41.26 -1.24 -2.92%): lower amid reports that COVID cases are rebounding in China, according to Bloomberg.


    The S&P 500 futures are down 4 points and are trading 0.1% below fair value.
    The Nasdaq 100 futures are down 23 points and are trading 0.2% below fair value.
    The Dow Jones Industrial Average futures are down 14 points and are trading roughly in-line with fair value.

    Equity futures indicate a lower thanks to negative carryover momentum from Friday’s retreat; however, they are off their overnight lows.
    There is some hesitation ahead of the FOMC minutes from the September meeting on Wednesday, new inflation data with PPI out on Wednesday and CPI out on Thursday, and earnings reports from major financial institutions on Friday.

    The Bank of England announced additional measures to support market functioning ahead of, and following, the expiration of its Gilt purchases on October 14.

    Reports indicate that COVID cases are rebounding in China, pressuring stocks with high exposure to that market, and that Russia is stepping up its missile attacks on Ukraine following the Crimea bridge blast over the weekend.

    Energy complex futures are mixed.

    WTI crude oil futures are down 0.8% to $91.91/bbl
    Natural gas futures are up 0.5% to $6.78/mmbtu.

    The U.S Treasury market is closed today for a holiday.

    There is no U.S. economic data of note today.


    and Indigenous Peoples Day for 19 WOK states 😉

    The COWSILLS in 1960s were talented as in “Hair” & “Flower Girl”
    Some of family are still rockin in 2022 with a great new album
    This entire album is some best new material – I’ve heard in years – esp 1st 2 songs below 🙂


    Dow 29,202.88 -93.91 -0.32%
    S&P 500 3,612.39 -27.27 -0.75%
    Nasdaq 10,542.10 -110.30 -1.04%
    GlobalDow 3,214.15 -21.61 -0.67%
    Gold 1,674.60 -34.70 -2.03%
    Oil 90.66 -1.98

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