Daily Game Plan

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

DATA/HEADLINES   9:00ET Fed’s Bostic speaks; 10:00ET U. of Mich. Sentiment

TODAY’S HIGHLIGHTS:  

• Surgeons in New York have performed the first-ever whole-eye transplant in a human
• North Korea will close as many as 12 embassies as the state struggles to come up with $
  

World stocks slipped as hawkish comments from US Federal Reserve Chair Jerome Powell dashed expectations of a peak in interest rates. MSCI’s broadest index of world
shares fell 0.4% to a one-week low, on track for a fourth session of losses. On Thursday, Federal Reserve officials, including Powell, conveyed a sense of uncertainty in their efforts to combat inflation. They also emphasized their readiness to implement additional
policy tightening measures if deemed necessary. The next big possible catalyst is an expected meeting between President Biden and Chinese leader Xi Jinping at the Asia-Pacific Economic Cooperation summit in San Francisco on Nov. 15.                                     

EQUITIES: 
   

US equity futures are recovering from overnight losses heading into the US open as investors await comments from fed reserve speakers Lorie Logan, Raphael Bostic
and Mary Daly.  The three major stock indices closed lower on Thursday, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years as market optimism over looser monetary policy faded.                

Futures ahead of the bell: E-Mini S&P +0.3%, Nasdaq +0.2%, Russell 2000 +0.4%, Dow +0.3%.

In premarket trading, digital advertising firm Trade Desk (TTD) slumped 27% after issuing a weak sales guidance, which it blamed on broader economic pressures. Groupon tumbled 37% after
announcing a poor third-quarter result and an equity offering. 2U (TWOU) falls 30% after the online education company lowered its full-year revenue forecast. Blink (BLNK) rises 15% after the company revised its year sales forecast higher. Illumina (ILMN) falls
11% after the DNA-sequencing company cut its full-year revenue guidance. Plug Power (PLUG) tumbles 34% saying a dearth of cash on hand raises “substantial doubt about the company’s ability to continue as a going concern.” Unity Software (U) falls 15% after
the video-game tool maker reported third-quarter revenue that missed expectations. Wynn Resorts (WYNN) slips 5% after the casino operator posted disappointing results from its operations in Macau.

European stocks declined as weak earnings and comments from Federal Reserve Chair Jerome Powell curbed risk appetite. The Stoxx 600 slipped with consumer products and miners leading declines. 
Diageo Plc plunged 16% after the UK distiller cut its profit outlook and Richemont lost 6.8% as revenue from luxury watches unexpectedly fell. Stoxx 600 -1%, DAX -0.7%, CAC -1%, FTSE 100 -1.3%. Food & Bev -3.4%, Basic Resources -1.9%, REITs -1.7%. Energy is
in the green, up 0.7%.                              

Asian equities declined, as disappointing earnings hit Chinese stocks. The MSCI Asia Pacific Index fell 0.9%, with Chinese internet giants Alibaba and Tencent among the biggest drags.
Japan’s SoftBank and Sony also weighed on the gauge after their results missed expectations. Gauges in Hong Kong fell the most in the region following weak earnings from chipmaker SMIC and casino operator Wynn Macau. A cyberattack on China’s largest lender
ICBC also weighed on sentiment. Hang Seng Index -1.75%, Vietnam -1.1%, Thailand -1.1%, Singapore -0.9%, CSI 300 -0.7%, Kospi -0.7%. Sensex +0.1%, Topix +0.1%.

FIXED INCOME: 
 

Treasuries are making gains ahead of the US session after broad losses on Thursday spurred by a poor 30 year bond auction and hawkish Powell comments.  US 10 year
yield is dipping to around 4.58% after rising 12 basis points on Thursday, their largest one-day gain in three weeks.  The two-year Treasury yield held above 5% and the curve flattened slightly. In Europe, Italy sold 3yr, 7yr, 15yr and 30yr bonds adding to
selling pressure on core and semi-core 10yrs yields which rose 9bps.      

METALS: 
   

Gold dipped and is on track for its worst week in more than a month, as elevated yield and a stronger dollar weighed.  Bullion prices initially bounced on Thursday
after a weak Treasury auction boosted bond market volatility and stirred some safety buying. Gold remains locked in a tug-of-war from declining haven demand as geopolitical risks ease, against some buyers looking to hedge inflation and market volatility risks.
Spot gold -0.6%, silver -0.4%.   

ENERGY:  

Oil prices rose but are set to fall for a third straight week amid signs of slowing demand and as market attention turns to a key OPEC + meeting this month which
will determine the group’s next move on production.  Brent has plunged around 13% over the past three weeks on bearish demand signals from China, the US and Europe. Meanwhile, flows from the Middle East remained unaffected by the Israel-Hamas war. WTI +1.1%,
Brent +1.2%, US Nat Gas -0.6%, RBOB +1.3%.     

CURRENCIES:   

In currency markets, the dollar fluctuated in muted trading, touching one-week highs against the Australian and New Zealand dollars. Norway’s krone surged amid expectations
of a rate hike, leading G-10 gains. Notably, underlying inflation in Norway accelerated for the first time in four month. US$ Index -0.1%, GBPUSD -0.05%, EURUSD +0.1%, USDJPY +0.05%, AUDUSD -0.1%, USDNOK -0.8%.    

Bitcoin %, Ethereum %. Bitcoin and ether held near multi-month highs, with renewed speculation over the imminent approval of an exchange-traded bitcoin fund breathing
new life into the digital assets.

TECHNICAL LEVELS: 

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
• Bragg Gaming Group Inc (BRAG CN) Raised to Market Outperform at JMP
• Celldex (CLDX) Raised to Equal-Weight at Wells Fargo
• Dentsply (XRAY) Raised to Outperform at William Blair
• Diebold (DBDQQ) Raised to Buy at DA Davidson; PT $29
• Great-West Lifeco (GWO CN) Raised to Buy at Veritas Investment Research Co; PT C$46
• Henry Schein (HSIC) Raised to Buy at Stifel; PT $70
• Rogers Communications (RCI/A CN) Raised to Buy at Desjardins; PT C$69
• Southwestern Energy (SWN) Raised to Outperform at Wolfe; PT $8
• Teck Resources (TECK/B CN) Raised to Outperform at Wolfe; PT C$56
• Telos (TLS) Raised to Buy at B Riley; PT $4.50
• Toast (TOST) Raised to Outperform at Baird; PT $18
• Vera Therapeutics (VERA) Raised to Buy at Jefferies; PT $26
• Downgrades
• 2U (TWOU) Cut to Neutral at Cantor; PT $1.50
• AirBoss of America (BOS CN) Cut to Underperform at CIBC; PT C$3.75
• Altus Group (AIF CN) Cut to Sector Perform at Scotiabank; PT C$48
• Cut to Market Perform at BMO; PT C$53
• Cut to Sector Perform at National Bank; PT C$50
• American Air (AAL) Cut to Neutral at BNPP Exane
• Babcock & Wilcox (BW) Cut to Hold at Craig-Hallum; PT $2
• CareMax Inc (CMAX) Cut to Neutral at Piper Sandler
• Enviva (EVA) Cut to Underweight at JPMorgan
• Freyr Battery (FREY) Cut to Neutral at BTIG
• Green Dot (GDOT) Cut to Hold at Craig-Hallum; PT $14
• Hawaiian Electric (HE) Cut to Underweight at Wells Fargo; PT $8.50
• IBEX (IBEX) Cut to Neutral at Piper Sandler; PT $17
• Illumina (ILMN) Cut to Hold at Canaccord; PT $120
• JetBlue (JBLU) Cut to Underperform at BNPP Exane
• Medical Properties (MPW) Cut to Hold at Stifel; PT $4.50
• Occidental (OXY) Cut to Peerperform at Wolfe
• ODP Corp. (ODP) Cut to Hold at CFRA; PT $48
• Plug Power (PLUG) Cut to Neutral at JPMorgan; PT $6
• Cut to Sector Perform at RBC; PT $5
• Southwest Air (LUV) Cut to Underperform at BNPP Exane
• Upland Software (UPLD) Cut to Sell at Roth MKM; PT $3.50
• Ventyx Bio (VTYX) Cut to Market Perform at Oppenheimer
• Wolverine World Wide (WWW) Cut to Sell at Williams Trading; PT $7
• Initiations
• Korro Bio, Inc. (KRRO) Rated New Overweight at Piper Sandler; PT $180
• Lindblad Expeditions (LIND) Rated New Buy at B Riley; PT $12
• NeuroPace (NPCE) Rated New Overweight at Cantor; PT $11
• Portillo’s (PTLO) Rated New Overweight at Stephens; PT $20
• Sylogist (SYZ CN) Reinstated Buy at Echelon Wealth; PT C$11

Data sources: Bloomberg, Reuters, CQG