Since the beginning of the year, stock market indexes have been supporting historical monthly statistics. After the blow of September - a traditionally complicated month for investors - October helped redress the balance and the first half of November served as a springboard for financial markets, which are constantly exploring new levels.

Despite risk factors brandished daily here and there, Western stock markets have only one direction: up. Nothing from the current earnings season could go against this trend. Not even inflationary pressures. The growth estimates of the world’s major economies are still well above the usual ones. And if China is an exception, investors, incorrigibly optimistic, are clinging to the hope that Beijing will get its machine going again after cleaning up overheated sectors.

China looks like it is trying to get back on the international stage after having spent a lot of energy on its domestic politics. Xi Jinping and Joe Biden are scheduled to discuss pressing issues this week, days after Beijing and Washington announced a curious convergence of views on climate last week. This bilateral agreement has, according to several press reports, contributed to save a COP26 that was in a bad way. On another note, China's ambassador to the EU has accused Brussels of jeopardizing world trade by deploying new protectionist measures. In an interview with the Financial Times, he said EU policy risks creating new tensions in supply chains.

There will not be many major macro indicators this week, apart from US retail sales for October, which will be released tomorrow. The quarterly earnings season is coming to an end with Walmart, The Home Depot and Netease tomorrow, followed by Nvidia, Cisco, Baidu, Alibaba, Intuit and Applied Materials on Thursday and Friday. On the pandemic front, the resurgence in several countries has reactivated investors' vigilance mode, but without psychosis.

 

Today's economic highlights:

The US Empire Manufacturing index for November is the main indicator today Earlier today, China announced better-than-expected October statistics for industrial production and retail sales.

The dollar is up slightly to EUR 0.8745. The gold ounce is stabilizing below USD 1860. Oil is losing ground at USD 79.60 per barrel WTI and USD 80.96 per barrel Brent. In the sovereign debt market, the U.S. 10-year yield is up slightly to 1.55% while the Bund is down to -0.26%. Bitcoin is trading at USD 64605.

 

On markets:

* Tesla is down 2.2% in premarket trading Monday after the automaker's CEO Elon Musk sold nearly $7 billion of the company's stock.

* Pfizer, BioNtech, Moderna - Israel's Ministry of Health announced Sunday that children ages 5 to 11 would now be eligible for vaccination against COVID-19. The British Advisory Committee on Vaccination (JCVI) on Monday recommended extending the COVID-19 booster campaign to people aged 40-49 in Britain.

* The British government is expected to order a full investigation into the proposed £30 billion takeover of semiconductor designer ARM by U.S.-based Nvidia because of its implications for both competition and national security, the Sunday Times reported Sunday.

* The Boeing Company is "getting closer" to resuming deliveries of its 787 Dreamliner model, which has been suspended due to production defects, but the precise date of this resumption depends on ongoing discussions with regulatory authorities, one of the group's top executives said Saturday. The U.S. aircraft manufacturer also said that the aviation authority in China was satisfied with the changes made to the 737 MAX, an aircraft still banned in China after two fatal accidents in 2018 and 2019. Boeing finally announced an order for two 777 freighters by Emirates for delivery in April and June 2022. The stock is up 2% in pre-market trading.

* Indigo Partners, the parent company of Frontier Airlines, has signed an order with Airbus for 255 A321 aircraft, worth several billion dollars.

* Airbus is in discussions with aircraft leasing specialist Air Lease about a possible order for dozens of A350 cargo and smaller passenger aircraft, industry sources said Sunday.

* Warner Music Group is down 5% in pre-market trading after reporting earnings per share below Refinitiv's IBES consensus for its fourth-quarter off-year.

* American Tower announced on Monday that it has acquired U.S. data center operator Coresite Realty for $7.51 billion (€6.56 billion). CoreSite Realty shares are up 2.2% to $170.31 in pre-market trading.

* IBM, Amazon - The two groups announced Monday they are working together to develop tools to help oil companies manage disparate data more efficiently. IBM, meanwhile, announced it has designed a new quantum computing chip that executives say will allow quantum systems to start outperforming conventional computers for certain tasks within the next two years. IBM stock is up 0.6% in pre-market trading.

* Tyson Foods said Monday it expects sales for its 2022 fiscal year to exceed market forecasts on the back of higher meat prices and improved restaurant demand following the lifting of health restrictions.

* Berkshire Hathaway - The reinsurance division of the conglomerate founded by businessman Warren Buffet said on Monday it had opened an office in Dubai for the Middle East and North Africa.

* Restaurant Brands International, owner of Burger King, announced Monday that it has bought the Firehouse Subs restaurant chain for $1 billion.

 

Analyst recommendations:

  • Admiral: Berenberg upgraded from hold to buy targeting GBp 3245.
  • Amicus: Stifel raised the recommendation to buy from hold. PT up 41% to $16.
  • Bytes Technology: Berenberg starts to follow the company with a buy rating, targeting GBP 650.
  • Centrus Energy: Roth Capital Partners downgrades Centrus Energy Corp. Class A to neutral from buy. PT down 33% to $57.
  • Computacenter: Berenberg remains Buy with a target price raised from GBp 3,300 to 3,600. 
  • Dollar Tree: Deutsche Bank upgrades to buy from hold. PT up 31% to $148
  • EasyJet: Kepler Cheuvreux upgraded from Hold to Hold with a target of GBP 460.
  • KLA Corp: Atlantic Equities initiated coverage with a recommendation of overweight. PT up 19% to $490
  • Netflix: KeyBanc adjusts price target to $725 from $690, reiterates overweight rating
  • PagSeguro Digital: KeyBanc adjusts price target to $45 from $65, reiterates overweight rating
  • Planet Fitness: BMO Capital Markets raised the target on Planet Fitness Inc. Class A to $96 from $80. Maintains outperform rating. PT up 4% to $96.44.
  • Softcat: Berenberg remains Hold with a price target raised from GBp 1750 to GBp 1900.
  • Vector Group: Barclays raised the recommendation to equal-weight from underweight. PT up 12% to $17