• Healthcare: JSPR (16.42 +106.28%), FLXN (9.44 +63.32%), ALLO (16.48 +25.51%), SUPN (31.66 +20.06%), AXDX (6.63 +17.76%), OMER (7.73 +15.37%)
• Materials: AA (56 +21.66%), CENX (17.25 +20.21%), LTHM (26.5 +14.77%)
• Consumer Discretionary: TTM (34.19 +29.75%)
• Information Technology: SGH (53.53 +21.47%), HUBS (790.89 +16.33%), AZPN (163.51 +15.51%), DQ (63.97 +14.23%)
• Energy: NXE (5.99 +24.53%), KOS (3.81 +19.44%), CCJ (24.99 +17.27%), NGL (2.76 +14.52%)
• Consumer Staples: CBD (5.71 +27.17%)
• Utilities: CEPU (3.73 +15.84%)

• Healthcare: STIM (4.86 -24.18%), AMN (94.54 -21.1%), RVNC (22.71 -15.36%), SRPT (84.19 -15.32%), EVH (29.93 -12.25%), CDXS (28.33 -12.13%), ATRA (15.12 -11.32%), ESPR (9.14 -10.74%), DNLI (45.56 -10.51%)
• Materials: TRQ (13.13 -9.76%)
• Industrials: TREX (93.38 -10.5%)
• Consumer Discretionary: THO (108.05 -13.01%)
• Information Technology: AMKR (22.19 -11.8%)
• Financials: COLB (34.8 -13.8%), BSAC (17.21 -10.92%)
• Energy: LPI (74.51 -17.6%), CRK (9.19 -12.64%), PVAC (30.66 -8.45%)

• Hertz Global Holdings announced today that it has filed a registration statement on Form S-1 with the U.S. SEC relating to a proposed public offering of its common stock.
• Hertz's common stock currently trades on the over-the-counter market under the symbol "HTZZ". Hertz intends to apply to list its common stock on the Nasdaq Global Select Market under the symbol "HTZ" in connection with the offering.

• Revance Therapeutics announced that the FDA has issued a Complete Response Letter, or CRL, regarding the Biologics License Application (BLA) for DaxibotulinumtoxinA for Injection for the treatment of moderate to severe glabellar (frown) lines.
• In a communication received on October 15, the FDA determined that it is unable to approve the BLA in its present form and indicated that there are deficiencies related to the FDA's onsite inspection at Revance's manufacturing facility. Revance plans to request a Type A meeting with the FDA as soon as possible to address the deficiencies raised. No other deficiencies were identified in the CRL.

• Fomento Econmico Mexicano announced today that in accordance with its senior leadership succession planning process, and consistent with previously established timeframes, Eduardo Padilla will retire from his position as FEMSA's CEO on January 1, 2022.
• Accordingly, FEMSA's Board has appointed Daniel Rodrguez Cofr, currently CEO of FEMSA Comercio, to become FEMSA's CEO as of January 1, 2022.

• Avadel Pharmaceuticals announced today that the FDA notified the company that the review of the New Drug Application (NDA) for FT218 is still ongoing, and action will likely not be taken in October. The FDA informed the company that there are no information requests at this time and a new target action date will be provided as soon as possible.
• In February 2021, the FDA accepted Avadel's NDA for FT218 and assigned a target action date of October 15, 2021. The NDA submission is supported by positive data from the pivotal Phase 3 REST-ON study, which was completed under a Special Protocol Assessment agreement with the FDA.

The S&P 500 gained 0.8% on Friday, supported by an upside surprise in the retail sales report for September, better-than-expected earnings news, and improving technical factors. The Dow Jones Industrial Average rose 1.1%, while the Nasdaq Composite increased just 0.5% and the Russell 2000 fell 0.4%. 

Briefly, total retail sales in September were up 0.7% m/m (Briefing.com consensus -0.3%), reflecting resilient consumer demand amid higher prices. Amazon.com (AMZN 3409.02, +109.16, +3.3%) took the news in stride, carrying the S&P 500 consumer discretionary sector (+1.8%) to a first-place finish. 

The financials sector (+1.5%) was next in line amid higher Treasury yields and earnings-driven gains in Goldman Sachs (GS 406.07, +14.87, +3.8%) and Charles Schwab (SCHW 80.90, +2.79, +3.6%). The industrials sector (+1.0%) benefited from J.B. Hunt Transport's (JBHT 190.55, +15.31, +8.7%) better-than-expected earnings report. 

Conversely, the counter-cyclical consumer staples (-0.2%), utilities (-0.2%), and communication services (-0.1%) sectors finished in negative territory. The latter was pressured by Facebook (FB 324.76, -3.77, -1.2%), which was added to the Tactical Underperform List at Evercore ISI.

Notably, the 10-yr yield rose six basis points to 1.58%, but that didn't upset the growth stocks too much presumably because it remained below recent highs. The Russell 1000 Growth Index (+0.8%) outpaced the Russell 1000 Value Index (+0.6%) in percentage terms. 

On the technical side, the S&P 500 increased its distance above its 50-day moving average (4437) after closing above the key technical level yesterday. This positive price action was likely viewed as a good indicator among traders.   

In vaccine news, an FDA advisory committee unanimously recommended Johnson & Johnson's (JNJ 161.30, +1.19, +0.7%) booster COVID-19 shot for people 18 and older. The FDA, however, is reportedly delaying a decision on Moderna's (MRNA 324.21, -7.67, -2.3%) vaccine for the 12-17 age group to review the risks of a rare heart condition.

The 2-yr yield rose five basis points to 0.40%. The U.S. Dollar Index finished little changed at 93.94. WTI crude futures rose 1.2%, or $0.98, to $82.26/bbl.

Reviewing Friday's economic data, which featured the Retail Sales report for September:

• Total retail sales in September were up 0.7% month-over-month (Briefing.com consensus -0.3%) following an upwardly revised 0.9% increase (from 0.7%) in August. Excluding autos, retail sales jumped 0.8% month-over-month (Briefing.com consensus +0.4%) following an upwardly revised 2.0% increase (from 1.8%) in August.
  • The key takeaway from the report is the recognition that the broad-based sales increases reflect a rebound from some of the Delta-related restraint shown in August and presumably price increases that are a byproduct of supply chain constraints and higher transportation costs.
• The preliminary October University of Michigan Index of Consumer Sentiment dropped to 71.4 (Briefing.com consensus 73.5) from the final reading of 72.8 for September, leaving it pinned near the lows that were registered last year following the shutdown of the economy to combat the spread of COVID.
  • The key takeaway from the report is the finding that confidence in economic policies is fading regardless of political affiliation, as well as across all age, income, and education subgroups.
• Business inventories increased 0.6% m/m in August (Briefing.com consensus 0.7%) following an upwardly revised 0.6% increase (from +0.5%) in July.
• Import prices increased 0.4% in September after decreasing 0.3% in August. Excluding oil, import prices were flat after decreasing 0.1% in August. Export prices increased 0.1% after increasing 0.4% in August. Excluding agriculture, export prices increased 0.3% after increasing a revised 0.3% (from 0.2%) in August.

Looking ahead, investors will receive Industrial Production and Capacity Utilization for September, the NAHB Housing Market Index for October, and Net Long-Term TIC Flows for August on Monday. 

• S&P 500 +19.0% YTD
• Nasdaq Composite +15.6% YTD
• Dow Jones Industrial Average +15.3% YTD
• Russell 2000 +14.7% YTD

• Johnson & Johnson announced the FDA Vaccines and Related Biological Products Advisory Committee unanimously voted 19-0 to recommend Emergency Use Authorization (EUA) for a booster dose of the Johnson & Johnson COVID-19 vaccine for adults aged 18 and older at least two months following initial vaccination with the single-shot vaccine.
• The vote was based on findings from two company clinical trials, including the Phase 3 ENSEMBLE 2 study.
• The company anticipates a decision from the FDA on the EUA amendment for a booster dose of the Johnson & Johnson COVID-19 vaccine in the coming days.