After Hours Report

The S&P 500 advanced as much as 3.9% on Monday after Pfizer (PFE 39.20, +2.80, +7.7%) and BioNTech (BNTX 104.80, +12.80, +13.9%) announced that their collaborative COVID-19 vaccine was more than 90% effective in patients without evidence of prior infection. Investors took profits, though, leaving the benchmark index up 1.2% for the session.  

Investors also rotated out of growth stocks and into value/cyclical/small-cap stocks, which benefited the Dow Jones Industrial Average (+3.0%) and Russell 2000 (+3.7%) at the expense of the Nasdaq Composite (-1.5%). Each index set new intraday highs shortly after the open, but gradually retraced gains throughout the day and into the close. 

Pfizer and BioNTech plan to request FDA emergency use authorization for their two-dose vaccine later this month, providing hope that the economy can return to pre-pandemic levels in 2021 and re-instill a sense of normalcy. Distressed cyclical sectors were the biggest beneficiaries of this hopeful thinking. 

The energy (+14.2%) and financials (+8.2%) sectors finished comfortably atop the leaderboard, aided by noticeably higher oil prices ($40.31, +3.17, +8.5%) and curve-steepening activity caused by selling in longer-dated Treasuries. The consumer discretionary (-1.6%), information technology (-0.7%), consumer staples (-0.5%), and communication services (-0.3%) sectors closed lower. 

The 2-yr yield increased two basis points to 0.18%, while the 10-yr yield increased 11 basis points to 0.96%. The U.S. Dollar Index advanced 0.6% to 92.82. 

In other important news, Joe Biden was projected the winner of the U.S. presidential election, although President Trump did not concede and said he would file legal challenges. Note, media reports indicated that Mr. Trump would unlikely succeed in overturning the election results. 

It's worth mentioning that at one point today, the S&P 500 was up as much as 11.5% in less than six sessions. Presumably, that left it primed for profit taking amid an understanding that the market still has to get through the new wave of coronavirus and uncertainty surrounding another stimulus package. 

Separately, McDonald's (MCD 213.22, -3.34, -1.5%) beat EPS estimates and said it will test a plant-based burger in several markets. Biogen (BIIB 236.26, -92.64, -28.2%) shares plunged 28% after the FDA's Advisory Committee rebuked the company's Alzheimer's drug. V.F. Corp (VFC 77.81, +7.80, +11.1%) agreed to acquire Supreme for $2.1 billion. 

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the JOLTS - Job Openings report on Tuesday.

• Nasdaq Composite +30.6% YTD
• S&P 500 +9.9% YTD
• Dow Jones Industrial Average +2.2% YTD
• Russell 2000 +2.2% YTD

Overseas: 

• Europe: DAX +4.9%, FTSE +4.7%, CAC +7.6%
• Asia: Nikkei +2.1%, Hang Seng +1.2%, Shanghai +1.9%

Commodities: 

• Crude Oil +3.21 @ 40.31
• Nat Gas -0.04 @ 2.99
• Gold -96.40 @ 1855.60
• Silver -1.91 @ 23.72
• Copper -0.01 @ 3.15

After-Hours Spotlight:

• Arena Pharm (ARNA) beats by $0.17, misses on revs; announces top-line results from Phase 2b ADVISE trial evaluating etrasimod for the treatment of moderate-to-severe atopic dermatitis; primary endpoint not met... ARNA down 19.7% after hours
• Beyond Meat (BYND) misses by $0.33, misses on revs; co saw deterioration of its foodservice business as COVID-19 stay-at-home measures set in... BYND down 27.2% after hours
• Callaway Golf (ELY) beats by $0.21, beats on revs... no after hours indication for ELY
• Inter Parfums (IPAR) beats by $0.06, beats on revs; reaffirms FY20 EPS guidance, revs guidance... no after hours indication for IPAR
• Neurocrine Biosci (NBIX) misses by $0.28, misses on revs... NBIX down 12.9% after hours
• Nikola Corporation (NKLA) beats by $0.02... NKLA up 1.5% after hours
• Norwegian Cruise Line (NCLH) misses by $0.13, misses on revs, cumulative bookings for 1H21 remain below historical ranges, bookings for 2H21 inline with historical ranges... NCLH down 2.7% after hours
• Occidental Petro (OXY) misses by $0.12, misses on revs... OXY down 3.4% after hours
• RingCentral (RNG) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line... RNG up 3.4% after hours
• ScanSource (SCSC) beats by $0.08, misses on revs... no after hours indication for SCSC
• ShockWave Medical (SWAV) beats by $0.17, beats on revs... no after hours indication for SWAV
• Talend (TLND) beats by $0.21, beats on revs; guides FY20 EPS above consensus, revs above consensus... TLND up 3.9% after hours
• The RealReal (REAL) misses by $0.03, reports revs in-line... REAL down 5.9% after hours
• Tilray (TLRY) reports Q3 (Sep) results, misses on revs, expects positive or break even Adjusted EBITDA in Q4... TLRY up 2.0% after hours
• ZoomInfo (ZI) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs above consensus; guides FY20 EPS above consensus, revs above consensus... ZI up 3.5% after hours

Fair Value for Tuesday, November 10:

• S&P 500: 3544
• Nasdaq 100: 11822
• DJIA: 29064

Today's News Summary:

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • Allete (ALE) beats by $0.14, reports revs in-line; reaffirms FY20 EPS guidance
  • Aurora Cannabis (ACB) reports Q3 results; beats on revs
  • Berkshire Hathaway (BRK.B) reports Q3 results
  • Black Knight (BKI) beats by $0.32, beats on revs; guides FY20 EPS above consensus, revs above consensus
  • Blucora (BCOR) beats by $0.12, beats on revs; raises FY20 guidance
  • Brookfield Infrastructure (BIP) beats by $0.05, beats on revs
  • Cannae Holdings (CNNE) reports Q3 (Sep) results, revs in-line
  • Canopy Growth (CGC) beats by CAD 0.28, beats on revs
  • Cars.com (CARS) beats by $0.11, beats on revs
  • Ebix (EBIX) misses by $0.06, beats on revs
  • Gogo (GOGO) misses by $0.36, misses on revs
  • Hecla Mining (HL) reports EPS in-line, beats on revs
  • Howmet Aerospace (HWM) misses by $0.02, reports revs in-line; guides Q4 EPS above consensus, revs above consensus
  • Intercept Pharma (ICPT) misses by $0.07, beats on revs
  • Kodiak Sciences (KOD) misses by $0.10
  • MacQuarie Infrastructure (MIC) reports Q3 results; misses on revs
  • McDonald's (MCD) beats by $0.32, reports revs in-line; raises dividend
  • Plug Power (PLUG) beats by $0.03, beats on revs
  • RadNet (RDNT) beats by $0.27, beats on revs
  • Reata Pharmaceuticals (RETA) misses by $0.09, beats on revs
  • Softbank (SFTBY) reports H1 results
  • TEGNA (TGNA) reports EPS in-line, revs in-line
  • United Micro (UMC) reports October sales increased 4.8% yr/yr to NT$15.28 bln
  • Zentalis Pharma (ZNTL) misses by $0.15
• General News:
  • Joe Biden elected the 46th President of the United States; Senate control could hinge on January 5 Georgia runoff races; Democrats maintain control of House albeit with a smaller majority
  • Top Republicans are not acknowledging President-elect Joe Biden's victory as President Trump says he will not concede, according to the New York Times
  • Senate Majority Leader Mitch McConnell (R-KY) says President Trump within his rights to make legal challenges and ask for recounts, according to Washington Post
  • Senate Democrats feel Senate Majority Leader Mitch McConnell (R-KY) will have little incentive to cooperate with their agenda and fear a blockade against President-elect Joe Biden's cabinet, according to NBC News
  • President-elect Joe Biden is planning executive orders to rejoin the Paris Climate accord and the World Health Organization, according to the Washington Post
  • President Trump fires Secretary of Defense Mark Esper
  • US COVID-19 cases hit another record high over the weekend as other data moves in an unfavorable direction
  • California Governor Gavin Newsom says certain parts of the state will see more restrictions and business closures
  • Amazon (AMZN) to spend $2.8 bln on data centers in India, according to Bloomberg
  • AstraZeneca (AZN) receives EU approval for Calquence
  • AstraZeneca (AZN) will supply 22 mln dosses of coronavirus vaccine to Argentina, according to Reuters
  • BeiGene (BGNE) and EUSA Pharma (UK) announced that the Biologics License Application for QARZIBA (dinutuximab beta) was accepted by the China National Medical Products Administration (NMPA) and granted priority review
  • Biogen (BIIB) provides update on FDA Advisory Committee’s meeting on Aducanumab
  • Bristol-Myers (BMY) presents late-breaking phase 2 data demonstrating the safety and efficacy of deucravacitinib (BMS-986165) in patients with psoriatic arthritis; was well-tolerated with a safety profile consistent with prior studies
  • Bristol-Myers (BMY): Kitov (KTOV) expands planned Phase 1/2 clinical trial of CM24 in non-small cell lung cancer with new cohort to evaluate CM24 in Patients with pancreatic cancer conducted with Bristol Myers Squibb
  • Broadridge Financial (BR) announced that Edmund Reese has been appointed CFO, effective November 30, 2020
  • Calliditas Therapeutics AB (CALT) reports topline results from pivotal Phase 3 NefIgArd trial met primary endpoint
  • Callon Petroleum (CPE) announces upsized debt exchange; expects the borrowing base under its credit facility to remain unchanged
  • Centogene (CNTG) and Fujirebio Europe enter partnership to provide rapid and high-quality preventive SARS-CoV-2 Antigen Testing
  • Equinox Gold (EQX) commences full construction of Santa Luz Project
  • F5 Networks (FFIV): Elliott Management aims to take stake in F5 Networks, according to the Wall Street Journal
  • F5 Networks (FFIV) announces $1 bln in total share repurchases across fiscal years 2021 and 2022 and intention to return 50% of free cash flow thereafter; details long term targets
  • First Solar (FSLR) has filed notice of proposed derivative settlement
  • General Motors (GM) will hire 3,000 new employees across engineering, design and IT to help transform the future of product development and software as a service
  • GlaxoSmithKline (GSK) and Pfizer (PFE) report their ViiV Healthcare investigational injectable cabotegravir is superior to oral standard of care for HIV prevention in women
  • Goodrich Petroleum (GDP) says Q2 results included an understatement of future development costs, plans to amend 10-Q
  • Google (GOOG) will not dismiss US lawsuit, according to Reuters
  • GoPro (GPRO): D.E. Shaw increased passive stake to 5.0% (prior ~4.5%)
  • JinkoSolar Holding (JKS): D.E. Shaw increased passive stake to 5.0% (prior ~1.5%)
  • Liminal BioSciences (LMNL) reports PDUFA date extended by FDA from March 5, 2021 to June 5
  • Microsoft (MSFT) to release new Xbox devices tomorrow, according to CNET
  • Orphazyme (ORPH) submits European Marketing Authorisation application for arimoclomol for treatment of Niemann-Pick disease Type C
  • Passage BIO (PASG) and Invitae (NVTA) announce collaboration to facilitate genetic testing to support early diagnosis and greater awareness of clinical trials for patients with GM1
  • Pfizer (PFE) and BioNTech (BNTX) announce vaccine candidate against COVID-19 achieved success in first interim analysis from Phase 3 study
  • PotlatchDeltic (PCH) appoints COO/Pres Eric J. Cremers as Pres/CEO effective January 1, 2021
  • Reata Pharmaceuticals (RETA) announces positive results from year 2 of the pivotal phase 3 CARDINAL study of bardoxolone methyl in patients with alport syndrome
  • Roche Hldg's (RHHBY) Foundation Medicine expands indication for FoundationOne Liquid CDx to be used as a companion diagnostic for LYNPARZA
  • ShockWave Medical (SWAV) reports IVL Is superior to angioplasty in severely calcified peripheral artery disease
  • Tesla (TSLA) could be seeing quicker production ramp than previously expected at Gigafactory Shanghai, according to electrek
  • Tootsie Roll (TR) files to delay 10-Q citing pre-Halloween sales adjustments - plans to file within extension period; reports prelim Q3 results
  • Tutor Perini (TPC) awarded $54 million to complete a mixed-use project in Los Angeles
  • Tyson Foods (TSN) announced the European launch of its plant-based protein brand, Raised & Rooted

Notable Ratings

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Appian (APPN) upgraded to Neutral from Sell at Goldman; tgt raised to $84
  • Arcutis Biotherapeutics (ARQT) upgraded to Buy from Neutral at Goldman; tgt raised to $36
  • Cheesecake Factory (CAKE) upgraded to Buy from Hold at Deutsche Bank; tgt $40
  • C.H. Robinson (CHRW) upgraded to Buy from Neutral at Citigroup; tgt raised to $118
  • Colfax (CFX) upgraded to Buy from Neutral at UBS; tgt raised to $40
  • Container Store (TCS) upgraded to Neutral from Sell at Goldman; tgt raised to $10
  • CubeSmart (CUBE) upgraded to Buy from Hold at Stifel; tgt $39
  • HMS Holdings (HMSY) upgraded to Buy from Neutral at Citigroup; tgt raised to $35
  • Lear (LEA) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $175
  • Livent (LTHM) upgraded to Buy from Neutral at Citigroup; tgt raised to $16.50
  • Nordstrom (JWN) upgraded to Outperform from Market Perform at Telsey Advisory Group; tgt $17
  • Royal Dutch Shell (RDS.A) upgraded to Buy from Hold at HSBC Securities
  • Royalty Pharma (RPRX) upgraded to Buy from Neutral at UBS; tgt lowered to $51
  • Schneider National (SNDR) upgraded to Buy from Hold at Stifel; tgt $26
  • TechnipFMC (FTI) upgraded to Buy from Hold at HSBC Securities
  • Tecnoglass (TGLS) upgraded to Buy from Neutral at B. Riley Securities; tgt $8
  • TrueCar (TRUE) upgraded to Mkt Outperform from Mkt Perform at JMP Securities; tgt $6
  • Virtu Financial (VIRT) upgraded to Buy from Neutral at Rosenblatt; tgt $28
  • Vista Outdoor (VSTO) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $30
  • Yelp (YELP) upgraded to Neutral from Sell at UBS; tgt raised to $26
• Downgrades:
  • Biogen (BIIB) downgraded to Underweight from Neutral at Atlantic Equities; tgt $175
  • Biogen (BIIB) downgraded to Underperform from Neutral at BofA Securities; tgt $240
  • Biogen (BIIB) downgraded to Market Perform from Outperform at Cowen; tgt $215
  • BorgWarner (BWA) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $27
  • Dominion Energy (D) downgraded to Neutral from Buy at UBS; tgt raised to $86
  • Elanco Animal Health (ELAN) downgraded to Underweight from Overweight at Barclays; tgt lowered to $25
  • Mattel (MAT) downgraded to Hold from Buy at Jefferies; tgt $15
  • Rigel Pharma (RIGL) downgraded to Neutral from Overweight at JP Morgan
• Others:
  • Array Tech (ARRY) initiated with a Neutral at Credit Suisse; tgt $37
  • Array Tech (ARRY) initiated with a Market Perform at Cowen; tgt $45.50
  • Array Tech (ARRY) initiated with an Equal Weight at Barclays; tgt $46
  • Array Tech (ARRY) initiated with a Neutral at JP Morgan; tgt $38
  • Array Tech (ARRY) initiated with a Buy at Goldman; tgt $50
  • Array Tech (ARRY) initiated with a Buy at Guggenheim; tgt $54
  • Array Tech (ARRY) initiated with a Neutral at UBS; tgt $43
  • Array Tech (ARRY) initiated with an Underweight at Morgan Stanley; tgt $37
  • AVEO Oncology (AVEO) initiated with a Buy at Stifel; tgt $9
  • Cerevel Therapeutics (CERE) initiated with a Buy at Stifel; tgt $17
  • Codiak BioSciences (CDAK) initiated with a Buy at Goldman; tgt $29
  • Designer Brands (DBI) initiated with a Neutral at UBS; tgt $6
  • Eastern Bankshares (EBC) initiated with an Outperform at Keefe Bruyette; tgt $15
  • First Solar (FSLR) removed from Goldman's Conviction Buy List; remains Buy rated
  • Fisker (FSR) initiated with an Outperform at Cowen; tgt $22
  • Miniso Group (MNSO) initiated with a Buy at Goldman; tgt $25.20
  • Sunnova Energy (NOVA) added to Goldman's Conviction Buy List

Upcoming Events:

• Econ data (Tuesday):
  • 06:00 ET: October NFIB Small Business Optimism Index (prior 104.0)
  • 10:00 ET: September JOLTS - Job Openings (prior 6.493M)
• Earnings:
  • Monday (Nov. 9)
    • Pre-Market: ALE BHVN BKI BCOR BIP CNNE CGC CARS EBIX GOGO HL HWM ICPT MCD BTU PLUG RDNT RETA TGNA
    • After-Hours: AL AMBC ARNA BYND ELY SCOR DHT DIOD STAY GSKY HAIN IHRT INO IPAR IFF RAMP MBI MWA MYGN NHI NBIX NGL NKLA NCLH NVAX OSH OXY OR CNXN RPAY RNG SCSC SWAV SPG SPT TLND TCO REAL TLRY WES WPM ZIXI ZGNX ZI
  • Tuesday (Nov. 10)
    • Pre-Market:  AAP AER BNTX CAE IMOS CRSR CYBR DHI ERJ NOVT ROK TCP
    • After-Hours: TXG ONEM ADPT AKCA ALC DOX ASH BRKS COHR CVET DDOG FICO FOXF GO HCAT IQ KRNT LYFT MODN PLMR PRSP PRPL RXT RKT SANM SILK TME
  • Wednesday (Nov. 11)
    • Pre-Market:  ADNT APD APG GIB DOYU HUYA LMND
    • After-Hours:  ATO CCMP ENS GTBIF HI MFC RVLV REYN SPTN TTEK VRM
  • Thursday (Nov. 12)
    • Pre-Market:  BAM EPC DAVA ENR GDRX HIMX INMD MTOR NICE NVMI PDD SBH SDGR SSRM SSYS TGP TNK TDG TUFN WIX
    • After-Hours: AQN AMWL AMAT CSCO DLB FTCH GLOB NARI JAMF PLTR U DIS
  • Friday (Nov. 13)
    • Pre-Market: DKNG MANU SPB VIPS
    • After-Hours: None of note
    • Full Earnings Calendar