Daily Game Plan

TODAY’S GAME PLAN:  from the trading
desk, this is not research

TODAY’S ECONOMIC DATA:  8:30ET Wholesale Inventories, Advance Goods Trade Balance, Retail Inventories; 9:00ET FHFA
House Price Index; 10:00ET JOLTS Job Openings, Consumer Confidence; 10:30ET Dallas Fed Services Activity; 1:00ET 7-Year Auction; 2:30ET SEC’s Gensler speaks

HIGHLIGHTS and News:  

• A new US intelligence memo warns that insider threats will “likely be an issue” in the November 5 election centers
• China is looking to adopt another fiscal package to help its economy after the US Presidential elections
• Taiwan will buy as many as 1,000 attack drones from the US to discourage a potential Chinese assault
• Apple product announcement expected at 11:00ET
  
• SOFTBANK’S MASAYOSHI SON SAID NVIDIA IS `UNDERVALUED’
  

World stocks nudged higher as investors grapple with uncertainties around the US presidential election and Federal Reserve interest-rate policy. Traders are also
awaiting a BOJ policy decision due Thursday. Data showed that Japan’s labor market tightened in September, indicating sustained pressure on companies to raise wages ahead of the BOJ meeting. UK shop prices fell 0.8% this month, a deeper-than-expected contraction,
BRC data showed. Sweden’s economy unexpectedly shrank 0.1% in the third quarter. Meanwhile, the Biden administration finalized curbs on US investment in Chinese chip and AI tech, which will take effect January 2.

EQUITIES:   Alphabet earnings after the bell
today. Meta Platforms, Microsoft earnings Wednesday. Amazon, Apple earnings Thursday.

US equity futures slip as the busiest week for US corporate earnings moves into high gear, with Alphabet, the first of the “Magnificent Seven” big-tech giants, due to report after the
close. Investors are awaiting results from nearly 42% of the S&P 500 names this week, including five of the seven tech megacaps. Boeing raised around $21 billion in an upsized share sale — one of the largest ever by a public company. Goldman Sachs Group’s
chief executive talked up the underlying resilience of the US economy and an improving outlook for dealmaking, in a Bloomberg interview. The CEOs of GS, Morgan Stanley, StanChart, Carlyle, Apollo and State Street all said they don’t see two more Fed rate cuts
this year. 

Futures ahead of the bell: E-Mini S&P -0.2%, Nasdaq -0.05%, Russell 2000 -0.5%, DJI -0.4%.

In pre-market trading, Ford Motor Co. (F) slumped 5% after cautioning that full-year earnings will be at the low end of its forecast. Amkor (AMKR) falls 11% after the
semiconductor manufacturer gave a weaker-than-expected outlook. Boot Barn (BOOT) drops 5% after the bootmaker announced CEO Jim Conroy would depart from the company on Nov. 22 to become CEO of Ross Stores. Cadence Design (CDNS) rises 5% after the application
software company reported third-quarter results that beat expectations. CVR Energy (CVI) tumbles 24% after the independent refiner and marketer of transportation fuels said it won’t pay a cash dividend for the third quarter. F5 Inc. (FFIV) climbs 11% after
the network security company’s fiscal fourth-quarter earnings and first-quarter forecast came in ahead of analyst estimates. Inari Medical (NARI) gains 8% after the medical device firm lifted the lower end of its annual revenue forecast and its 3Q revenue
beat. McDonald’s Corp. slips 3% as sales fell short of Wall Street’s expectations in the third quarter. SoFi Technologies (SOFI) gains 5% after the company raised its profit guidance for a third time this year. TransMedics (TMDX) slides 24% after the medical-technology
company posted third-quarter profit and revenue that missed estimates. VF Corp. (VFC) surges 19% after the apparel company that owns the Vans and North Face brands reported quarterly revenue that beat Wall Street expectations.

European gauges pare early gains made after positive company updates from the likes of HSBC Holdings Plc and Adidas AG. In the UK, eyes will be on Wednesday’s budget
and the expected package of tax rises and spending cuts, while traders will also be watching Eurozone inflation data due later in the week. The Stoxx Europe 600 index is near flat on the day as travel and retail sectors weigh while miners outperform. Among
individual names, HSBC Holdings led banking stocks higher after announcing a multibillion-dollar stock buyback as it reported better-than-estimated earnings.  Novartis AG dropped more than 4% as investors weighed the outlook for the pharmaceutical company
in 2025, when generic versions of multiple drugs are expected to enter the market. Its best-selling drug and a key new cancer medicine posted disappointing sales. Wartsila Oyj Abp plunged 13% after the Finnish marine and energy-industry equipment manufacturer’s
third-quarter orders fell short of expectations. Stoxx 600 is flat, DAX +0.15%, CAC +0.2%, FTSE 100 ~flat. Basic Resources +1.2%, Personal Goods +0.2%. Travel & Leisure -0.9%, Retail -0.5%. 

Shares in Asia were mixed ahead of key central bank and political events due this week and next. The MSCI Asia Pacific Index pared earlier gains t end higher by 0.1%
as losses in TSMC and SK Hynix weighed. Gauges in Tokyo, Vietnam, Hong Kong and Australia climbed, while stocks in China retreated. Chinese electric vehicle stocks gained after state media reported that central government agencies will increase purchases of
new-energy vehicles in an effort to support the industry’s development. China is looking to adopt another fiscal package to help its economy after the US Presidential elections.  Topix +0.9%, Vietnam +0.6%, Hang Seng Index +0.5%, Sensex +0.5%, ASX 200 +0.3%,
Kospi +0.2%, Singapore +0.2%. Indonesia -0.4%, CSI 300 -1%, Taiwan -1.2%, Philippines -1.4%.

FIXED INCOME: 
 

Treasury yields edged higher across a steeper curve, with yields underpinned by bigger moves in bunds. US 10-year yield remains more than 1.5bp cheaper on the day
at about 4.30%.  US session includes $44b 7-year note auction after Monday’s 2- and 5-year sales tailed.

METALS: 

Gold climbed toward another record as traders await the latest US economic data and the presidential election.  Bullion rose as much as 0.6%, just shy of the all-time
high set last week. Traders will scrutinize the latest US inflation and payroll figures due later this week, which should offer clues on the Federal Reserve’s rate-cutting path. Spot gold +0.4%, Silver +1.5%, Copper +0.9%.

ENERGY:   

Oil bounced modestly, finding support after the Energy Department said it was seeking to buy 3 million barrels of crude to help replenish the Strategic Petroleum
Reserve. The department said it had bought more than 55 million barrels to date to replenish the reserve at an average price of around $76 a barrel, compared with the $95 a barrel it received for emergency sales from the reserve in 2022.  WTI is up more than
1% after tumbling over 6% on Monday, the most in more than two years, as tensions in the Middle East eased. China’s refiners and fuel suppliers plan to cut exports of oil products by about 12% in November from a month earlier, according to Mysteel OilChem.
Aramco’s CEO said the oil market supply-demand is currently balanced.   WTI +1.2%, Brent +1%, US Nat Gas -1.4%, RBOB +1.2%.

CURRENCIES:   

In currency markets, the yen eased further after Monday’s slump, while Japanese Prime Minister Ishiba promised to restore political stability in a bid to maintain
power. Japanese Finance Minister Katsunobu Kato said the government will watch developments in the currency market with a heightened sense of urgency. The BOJ widely expected to keep rates unchanged on Thursday; still, most economists see an additional hike
only in December or January. The dollar reversed early losses as treasuries reverse gains. The Pound edges higher; the new UK Labour government will reveal its first budget Wednesday. US$ Index +0.1%, GBPUSD +0.1%, EURUSD -0.1%, USDJPY +0.3%, AUDUSD -0.3%,
NZDUSD -0.25%, USDCHF +0.35%.

Spot Bitcoin +2.5%, Spot Ethereum +4.5%. Crypto companies surged, and Bitcoin rose past $71,000 for the first time since June, as the former president is seen as
supportive of the digital tokens.

Colors within the report:
Green is always the 200 period (day, week).
Red is always 21,
Blue = 50,
Brown =
100 *Stars have added importance 

• Upgrades
• Coca-Cola Femsa (KOFUBL MM) ADRs Raised to Buy at Citi; PT $102
• Summit Materials (SUM) Raised to Overweight at Barclays; PT $52
• Downgrades
• Cemex (CEMEXCPO MM) ADRs Cut to Neutral at JPMorgan; PT $6
• Insulet (PODD) Cut to Hold at CFRA
• Linamar (LNR CN) Cut to Sector Perform at Scotiabank; PT C$77
• Redwire (RDW) Cut to Neutral at B Riley; PT $9.50
• Tapestry (TPR) Cut to Hold at TD Cowen; PT $52
• Trane Technologies (TT) Cut to Sell at CFRA
• Initiations
• AppLovin (APP) Rated New Overweight at Wells Fargo; PT $200
• Chain Bridge Rated New Strong Buy at Raymond James; PT $29
• Chain Bridge Rated New Overweight at Piper Sandler; PT $27
• Criteo (CRTO) ADRs Rated New Overweight at Wells Fargo; PT $70
• Curtiss-Wright (CW) Rated New Overweight at Alembic Global; PT $412
• DoubleVerify (DV) Rated New Underweight at Wells Fargo; PT $14
• Evergy (EVRG) Rated New Outperform at Mizuho Securities; PT $67
• Genelux (GNLX) Rated New Buy at Guggenheim; PT $8
• Hive Digital Technologie (HIVE CN) Rated New Overweight at Cantor
• kneat.com (KSI CN) Rated New Outperform at CIBC; PT C$6
• LiveRamp (RAMP) Reinstated Equal-Weight at Wells Fargo; PT $25
• Magnite Inc (MGNI) Rated New Equal-Weight at Wells Fargo; PT $13
• RxSight (RXST) Rated New Buy at Jefferies; PT $72
• Six Flags (FUN) Rated New Buy at Guggenheim; PT $52
• Standard Aero (SARO) Rated New Outperform at CIBC; PT $38
• Stardust Power (SDST) Rated New Buy at B Riley; PT $12
• TG Therapeutics (TGTX) Rated New Buy at TD Cowen; PT $50
• Topaz Energy (TPZ CN) Rated New Outperform at Raymond James; PT C$34
• Trade Desk (TTD) Rated New Overweight at Wells Fargo; PT $150
• Unity Software (U) Reinstated Equal-Weight at Wells Fargo; PT $20
• Zedcor Inc (ZDC CN) Rated New Outperform at Raymond James; PT C$3.25

Data sources: Bloomberg, Reuters, CQG

David Wienke