TODAY’S GAME PLAN:
from the trading desk, this is not research
TODAY’S ECONOMIC DATA: 9:45 a.m.: US November S&P Global Manufacturing
PMI ,10:00 a.m.: US November ISM Manufacturing
Highlights and News:
·
Nvidia invested $2 billion in chip-design software maker Synopsys’ stock.
·
Donald Trump said he decided on his pick for the next Fed chair and will announce it soon. Kevin Hassett, seen as the likely choice, told CBS that markets
have reacted well “to the rumor about me.”
·
Eli Lilly is cutting cash-pay prices for introductory doses of Zepbound again as competition with Novo Nordisk heats up.
Global stocks and bonds started December weaker as a sharp Bitcoin selloff and hawkish comments from the Bank of Japan hit risk sentiment, with S&P 500 futures down
0.6%, the yen rallying as the dollar hit its lowest since October, Japan’s two-year yield rising to its highest since 2008 and lifting the 10-year US Treasury yield to about 4.05%, while Bitcoin fell below $86,000, crypto-linked stocks slid, oil rose on a
Kazakh-Russia pipeline disruption, and traders focused on upcoming US data and the Fed’s next policy meeting alongside speculation over a new Fed chair.
EQUITIES:
US equity futures are weaker premarket, with S&P 500, Nasdaq 100 and Dow futures down 0.6%, 0.9% and 0.4% respectively as crypto weakness and hawkish BOJ commentary
weigh on sentiment, while notable movers include Synopsys jumping after a $2 billion Nvidia investment, Belite Bio and Leggett & Platt surging on positive drug data and M&A, Canadian Solar rallying on a China asset transfer plan, Barrick Mining gaining on
a potential North American gold IPO, crypto-exposed names like Coinbase and MicroStrategy sliding alongside Bitcoin, Coupang falling on a large data-breach probe, vaccine makers dropping after an FDA-linked myocarditis memo report, and silver and gold miners
rising as precious metals extend gains.
European stocks started December lower, pressured by a sharp selloff in defense stocks and a nearly 9% drop in Airbus after reports of software and quality
issues with its A320 jets; the Stoxx Europe 600 was down 0.4% mid-session, while the broader index remains up 13% for the year and trades near record highs amid solid earnings and growth, even as sector declines follow company news and anticipation of US data
and potential Fed rate cuts later this month.
Asian equities traded narrowly lower on December’s first session, with the MSCI Asia Pacific Index off about 0.2%-0.3% as tech weakness in Japan, Taiwan and
Australia outweighed gains in Hong Kong and mainland China, where stocks rose despite soft factory and manufacturing data, while investors stayed cautious ahead of key US inflation and spending releases, regional central bank decisions, and GDP prints, even
as sector moves included pressure on Indian tobacco names, strength in Japanese financials and Asian metals miners, and mixed performance across regional benchmarks and currencies alongside higher oil and slightly weaker dollar.
FIXED INCOME:
Treasuries are trading lower alongside European bonds, led by weakness in the long end of the curve, after a sharp JGB selloff on hawkish BOJ comments and news
that President Donald Trump has chosen a Fed chair candidate expected to cut rates, with the 10-year around 4.04% and the curve slightly steeper as risk assets soften. December IG dollar issuance is expected near $40 billion front-loaded in the first half
of the month, Treasury supply resumes next week with 3s, 10s and 30s, today’s data include final S&P Global and ISM manufacturing, and Fed officials are in blackout ahead of the December 10 policy decision.
METALS:
Precious metals are firm this morning, with gold and silver holding their bids even as other risk assets struggle. The combination of rate-cut expectations,
a softer dollar, and a mild risk-off tone is keeping buyers engaged, and the metals complex is showing notable resilience relative to equities and cyclicals. Gold continues to act as a defensive hedge, and silver is participating as well, underscoring that
precious metals are holding up while broader risk assets are not.
ENERGY:
In energy markets, crude oil is higher after a Ukrainian drone attack has forced the Caspian Pipeline Consortium to halt operations at its Russian terminal on
the black Sea. Rising tension between the U.S. and Venezuela is also contributing to uncertainty for future oil supply. At their latest meeting, OPEC+ agreed to keep output unchanged for the first quarter of 2026, and have adopted a new mechanism to assess
members’ maximum capacity beginning in 2027. Saudi Energy Minister Prince Abdulaziz bin Salman says the new process will help stabilize markets and reward those who invest in production
CURRENCIES:
In currency markets, the US dollar index continues last week’s 0.7% decline as US rate cut expectations rise. The Japanese yen has outperformed its peers as
traders price in a BOJ interest rate hike as early as this month. The euro resumes gains against the US dollar, hitting a three-week high and will look to Eurozone data and developments in any peace talks between Ukraine and Russia. US$ Index -0.4%, GBPUSD
+0.2%, EURUSD +0.4%, USDJPY +0.9%, AUDUSD +0.2%, NZDUSD +0.2%, USDCHF +0.4%, USDCAD +0.1%, USDSEK +0.3%, USDNOK +0.2%.
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
§
BankUnited (BKU) Raised to Buy at Jefferies; PT
$55
§
Canadian National (CNR CN) Raised to Outperform
at CIBC; PT C$151
§
Chevron (CVX) Raised to Buy at HSBC; PT $169
§
Chime Financial (CHYM) Raised to Buy at Goldman;
PT $27
§
Kratos (KTOS) Raised to Buy at B Riley; PT $105
§
Liberty Broadband (LBRDA) Raised to Buy at Citi;
PT $73
§
Neumora Therapeutics (NMRA) Raised to Outperform
at RBC; PT $7
§
Old Dominion (ODFL) Raised to Outperform at BMO;
PT $170
§
Shattuck Labs (STTK) Raised to Buy at HC Wainwright;
PT $6
§
Spyre Therapeutics Inc (SYRE) Raised to Buy at
Jones; PT $64
§
Take-Two (TTWO) Raised to Buy at Arete; PT $284
§
Thermo Fisher (TMO) Raised to Buy at HSBC; PT
$670
§
Toast (TOST) Raised to Outperform at BNPP Exane;
PT $40
§
Unity Software (U) Raised to Buy at Arete; PT
$48
-
Downgrades
§
Adecoagro (AGRO) Cut to Underweight at JPMorgan;
PT $7
§
American Tower (AMT) Cut to Equal-Weight at Barclays;
PT $200
§
CNH Industrial (CNH) Cut to Underweight at JPMorgan;
PT $10
§
Crown Castle (CCI) Cut to Equal-Weight at Barclays;
PT $101
§
Enterprise Products (EPD) Cut to Neutral at JPMorgan;
PT $35
§
EQB Inc. (EQB CN) Cut to Reduce at Veritas Investment
Research Co
§
Exact Sciences (EXAS) Cut to Hold at Stifel; PT
$105
§
Li Auto (LI) ADRs Cut to Hold at China Renaissance;
PT $18.50
§
ADRs Cut to Neutral at China Merchants; PT $19
§
ADRs Cut to Hold at CMB International; PT $18
§
MPLX (MPLX) Cut to Neutral at JPMorgan; PT $57
§
Orca Energy Group Inc (ORC/B CN) Cut to Hold at
Research Capital; PT C$3.35
§
PTC Therapeutics (PTCT) Cut to Sector Perform
at RBC; PT $91
§
REV Group (REVG) Cut to Neutral at Baird; PT $55
§
Sionna Therapeutics (SION) Cut to Underperform
at RBC; PT $24
§
Strategy (MSTR) Cut to Neutral at President Capital
Management; PT $192
§
Titan Machinery (TITN) Cut to Neutral at Baird;
PT $21
§
VICI Properties (VICI) Cut to Inline at Evercore
ISI; PT $32
§
Zscaler (ZS) Cut to Market Perform at Bernstein;
PT $264
-
Initiations
§
Aeromexico (AEROMEX* MM) ADRs Rated New Outperform
at Itau BBA; PT $26.70
§
Alamos Gold (AGI CN) Rated New Buy at Desjardins;
PT C$64
§
Amer Sports (AS) Reinstated Buy at William O’Neil
§
Anaergia (ANRG CN) Rated New Buy at Paradigm Capital;
PT C$4.75
§
Archer Aviation (ACHR) Rated New Neutral at Goldman;
PT $11
§
Axogen (AXGN) Rated New Outperform at Mizuho Securities;
PT $40
§
Badger Infrastructure Solutions Ltd (BDGI CN)
Rated New Outperform at National Bank; PT C$84
§
Beta Technologies (BETA) Rated New Overweight
at Cantor; PT $42
§
Rated New Buy at BTIG; PT $40
§
Rated New Buy at Needham; PT $34
§
Rated New Overweight at Morgan Stanley; PT $34
§
Rated New Buy at Citi; PT $41
§
Rated New Buy at Goldman; PT $47
§
Rated New Hold at Jefferies; PT $30
§
Billiontoone (BLLN) Rated New Buy at BTIG; PT
$160
§
Rated New Outperform at William Blair
§
Rated New Equal-Weight at Wells Fargo; PT $110
§
Rated New Overweight at JPMorgan; PT $150
§
Rated New Overweight at Piper Sandler; PT $150
§
Rated New Buy at Stifel; PT $145
§
Rated New Hold at Jefferies; PT $117
§
Boot Barn (BOOT) Reinstated Buy at William O’Neil
§
Cal-Maine (CALM) Rated New Buy at Benchmark; PT
$100
§
Carvana (CVNA) Rated New Buy at UBS; PT $450
§
Ceva (CEVA) Rated New Buy at Loop Capital; PT
$28
§
Copa Holdings (CPA) Reinstated Market Perform
at Itau BBA; PT $126
§
Eve Holding (EVEX) Rated New Neutral at Goldman;
PT $4.84
§
Evommune (EVMN) Rated New Outperform at Leerink;
PT $42
§
Rated New Overweight at Cantor
§
Rated New Outperform at Evercore ISI; PT $40
§
Rated New Outperform at William Blair
§
Rated New Overweight at Morgan Stanley; PT $36
§
Fireweed Metals (FWZ CN) Rated New Outperform
at BMO; PT C$4
§
Full Truck Alliance (YMM) ADRs Rated New Buy at
Caitong Securities
§
Galecto (GLTO) Rated New Buy at Guggenheim; PT
$32
§
Goldman Sachs (GS) Rated New Buy at William O’Neil
§
Goosehead Insurance (GSHD) Rated New Buy at Jefferies;
PT $93
§
Highlander Silver (HSLV CN) Rated New Speculative
Buy at Canaccord
§
Immunome (IMNM) Rated New Buy at Truist Secs;
PT $36
§
Inhibikase Therapeutics (IKT) Rated New Outperform
at LifeSci Capital
§
Joby Aviation (JOBY) Rated New Sell at Goldman;
PT $10
§
Kinross Gold (K CN) Rated New Buy at Desjardins;
PT C$44
§
OceanaGold (OGC CN) Rated New Buy at Desjardins;
PT C$50
§
Power Solutions (PSIX) Rated New Buy at Jefferies;
PT $110.51
§
Ryan Specialty (RYAN) Rated New Hold at Jefferies;
PT $64
§
TSS (TSSI) Rated New Buy at Lucid Capital Markets;
PT $15
§
TypTap Insurance Group (XZO) Rated New Outperform
at William Blair
§
Rated New Buy at Truist Secs; PT $25
§
Rated New Market Outperform at Citizens
§
Viking Holdings (VIK) Rated New Buy at William
O’Neil
§
Volatus Aerospace Inc (FLT CN) Reinstated Buy
at Stifel Canada
Data sources: Bloomberg, Reuters, CQG
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