MORNING NEWS CALL

TOP NEWS • Anthem quarterly profit beats estimates, raises 2018 forecast Anthem Inc reported quarterly profit that topped analysts' estimates on lower medical costs and the No.2 U.S. health insurer raised its full-year adjusted earnings forecast. • Printing firm Quad/Graphics to buy peer LSC in $1.4 billion deal Printing services firm Quad/Graphics Inc said it would buy peer LSC Communications in an all-stock deal valued at about $1.4 billion, to expand its footprint in the industry. • Yum Brands quarterly revenue beats estimates Yum Brands Inc's third-quarter revenue beat Wall Street estimates , as more people visited its KFC and Taco Bell chains. • Carlyle reports 25 cents for Q3 earnings per unit, misses forecast Alternative asset manager Carlyle Group LP missed estimates for earnings per unit for the third quarter, as the value of its private equity investments rose less than that one of its key rivals. • Samsung slashes capex, calls end to chip boom after record Q3 Samsung Electronics Co Ltd slashed 2018 capex by more than a quarter and warned of lower profit until early next year, calling an end to a two-year boom in memory chips that fuelled record third-quarter profit.

BEFORE THE BELL U.S. stock futures rose, taking cues from global markets, after a brutal October that saw sharp downturns in equity markets. The dollar steadied against a basket of currencies ahead of ADP national employment report. Oil prices rose as markets braced for the imposition of U.S. sanctions on Iran next week and gold prices slipped. After-market earnings update from American International Group will also be in focus.

STOCKS TO WATCH Results • Amgen Inc (AMGN). The company on Tuesday said stock buybacks lifted its third-quarter earnings per share, but operating income fell as expenses rose and sales of some key products declined. Total revenue for the quarter rose 2 percent from a year earlier to $5.9 billion. Operating expenses, including research and product launch costs, increased 7 percent to $3.58 billion. Adjusted earn- ings per share at the world's largest biotechnology company rose 13 percent to $3.69 for the quarter, exceeding Wall Street analysts' average estimate by 24 cents, according to Refinitiv data. • Anthem Inc (ANTM). The company reported quarterly profit that topped analysts' estimates on lower medical costs and the No.2 U.S. health insurer raised its full-year adjusted earnings forecast. Excluding items, the company earned $3.81 per share, topping the average analyst estimate of $3.70 per share, according to Refinitiv data. Total revenue rose 3.7 percent to $23.25 billion, ahead of analysts' estimate of $22.94 billion. • Baidu Inc (BIDU). The Chinese search engine operator forecast fourth-quarter sales below analyst estimates, saying new regula- tions and uncertainty surrounding a Sino-U.S. trade spat has prompted clients to cut back on advertising. The firm expects October- December revenue of 25.48 billion to 26.72 billion yuan, versus 23.6 billion yuan in the same period a year prior. The forecast com- pared with the 27.6 billion yuan average of 17 analyst estimates compiled by Refinitiv. Net income rose 56 percent in July- September, also slightly above estimates, though operating margin fell to 16 percent from 21 percent. Excluding gains from divesting its financial services business, Baidu posted adjusted earnings per share of 19.01 yuan versus the 16.70 yuan analyst estimate. • Bunge Ltd (BG). The global grains trader, which has been receiving takeover bids, said it added three directors to its board, bowing to pressure from activist investors D.E. Shaw and Continental Grain Co. Bunge, which separately reported quarterly results, saw net income available to shareholders rise to $365 million, or $2.39 per share, in the third quarter ended, from $92 million, or 59 cents per share, a year earlier. • Carlyle Group LP (CG). The alternative asset manager missed estimates for earnings per unit for the third quarter, as the value of its private equity investments rose less than that one of its key rivals. The company's quarterly economic net income per unit came in at 25 cents. That missed analysts' expectations for 51 cents, according to Refinitiv data, and compared with 56 cents a year earlier. • EBay Inc (EBAY). The company beat analysts' estimates for third-quarter profit by managing costs at a time when bigger rival Ama- zon.com Inc missed revenue estimates and forecast sales below expectations for the holiday quarter. The company's profit rose to $721 million, or 73 cents per share, in the third quarter ended, from $520 million, or 48 cents per share, a year earlier. Excluding items, the company earned 56 cents per share, beating estimates of 54 cents. Net revenue rose 6 percent to $2.65 billion, in line with analyst expectations. • Electronic Arts Inc (EA). The company forecast third-quarter revenue below Wall Street estimates on Tuesday, as the video-game publisher's delayed launch of its popular "Battlefield V" game hurt the company in an already crowded holiday-season game slate. EA forecast third-quarter adjusted revenue of $1.73 billion, missing the average analysts' estimate of $2 billion, according to Refinitiv data.The revenue forecast was down 12 percent, compared to the same period last year. • Estee Lauder Cos Inc (EL). The company beat Wall Street estimates for first-quarter sales, buoyed by higher demand for luxury skincare products such as La Mer and M.A.C makeup. Net sales rose nearly 8 percent to $3.52 billion, beating the average analyst estimate of $3.47 billion, according to Refinitiv data. Net income attributable to the company rose to $500 million, or $1.34 per share, in the quarter ended Sept. 30, from $427 million, or $1.14 per share, a year earlier. • Facebook Inc (FB). The company on Tuesday relieved investors by forecasting that margins would stop shrinking after 2019 as costs from scandals ease up, sending shares up despite a second-straight quarter with record-low user growth. The company esti- mated 2018 expenses would rise 50 percent to 55 percent above last year, trimming an earlier range of up to 60 percent. It forecasts expenses will grow 40 percent to 50 percent in 2019. Overall third-quarter revenue was $13.7 billion, up 33 percent from the same period last year and in line with expectations when accounting for currency fluctuations. Quarterly profit of $5.1 billion, or $1.76 per share, was up 9 percent and above the average per-share estimate of $1.48. • FireEye Inc (FEYE). The company reported better-than-expected quarterly profit and revenue on Tuesday as the cybersecurity firm benefited from its shift to a subscription-based model and lower costs, sending its shares up in extended trading. Loss attributable to shareholders narrowed to $50 million, or 26 cents per share, in the third quarter ended Sept. 30, compared with $69.2 million, or 39 cents per share, a year earlier. Excluding one-time items, FireEye posted a profit of 6 cents per-share, above analysts' estimates of a profit of 2 cents. • Nomura Holdings Inc(NMR). Japan's biggest brokerage and investment bank posted its first quarterly loss in over two years as it booked a previously flagged 20 billion yen charge for a U.S. settlement and as profits from operations slumped. Nomura said in a statement it posted a net loss of 11.2 billion yen for its second quarter ended in September, versus a 51.9 billion yen profit a year ear- lier. Pre-tax profit at the wholesale division, which serves corporations and institutional investors, fell 71 percent from a year earlier to 4.9 billion yen, hurt by weak fixed-income revenues in the United States and Europe. • Sanofi SA (SNY). The company lifted its 2018 profit target for the second time this year after robust sales of its vaccines and rare diseases division, Genzyme, helped it beat third-quarter profit expectations. The French drugmaker said it now expected earnings per share to grow by between 4 and 5 percent this year, up from a previous 3-5 percent target range. Sanofi's third-quarter net income rose by 10.3 percent at constant exchange rates to 2.3 billion euros while revenues increased 6.3 percent to 9.4 billion euros. • SunPower Corp (SPWR). The U.S. solar company on Tuesday lowered its 2018 forecast after some customers delayed equipment purchases due to a freefall in the market price of panels that was instigated by solar policy changes in top market China. The compa- ny forecast 2018 revenue of $1.7 billion to $1.8 billion on a net basis, compared with a prior view of $1.6 billion to $2 billion. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be between $100 million and $120 million, compared with a prior view of $95 million to $125 million. • Tata Motors Ltd (TTM) India's Tata Motors Ltd reported a loss for the three months ended September, dented by weak Jaguar Land Rover sales and a one-off charge in respect to a subsidiary closure in Thailand. The automaker made a loss of 10.49 billion rupees ($141.9 million), compared with a profit of 24.83 billion rupees in the year-ago period, the company said. The automaker in- curred a one-off charge of 4.37 billion rupees due to the closure of operations at its Thailand-based subsidiary. • T-Mobile US Inc (TMUS). The company on Tuesday exceeded Wall Street's quarterly estimates for net new phone subscribers and profit, driven by its competitive wireless plans and trade-in offers for iPhones aimed at fending off its bigger rivals. T-Mobile's revenue

2 rose to $10.84 billion from $10.02 billion, beating analysts' estimates of $10.72 billion, according to Refinitiv data. Its net income rose to $795 million, or 93 cents a share, in the quarter ended Sept. 30, from $550 million, or 63 cents a share, a year earlier. • Whiting Petroleum Corp (WLL). The U.S. oil producer posted profit on Tuesday that easily topped analysts' third quarter forecasts, as higher domestic oil prices and production growth boosted results. Whiting reported adjusted net income of $84.7 million, or 92 cents per share, topping analysts' consensus for 58 cents per share, according to Refinitiv estimates. Last year, the company report- ed a $50 million loss for the third quarter. Revenues for the quarter were $566.7 million, beating analysts' forecasts of $521.3 million, and up from $324.2 million a year ago. • Yum Brands Inc (YUM). The company's third-quarter revenue beat Wall Street estimates, as more people visited its KFC and Taco Bell chains. Same-store sales rose 3 percent at KFC and 5 percent at Taco Bell. Analysts were expecting a rise of 2.13 percent and 3 percent, respectively, according to Refinitiv data. Yum's total revenue fell 3 percent to $1.39 billion, but beat analysts' average esti- mate of $1.38 billion.

Deals Of The Day • LSC Communications Inc (LKSD) & Quad/Graphics Inc (QUAD). Printing services firm Quad/Graphics Inc said it would buy peer LSC Communications in an all-stock deal valued at about $1.4 billion. LSC shareholders will receive 0.625 shares of Quad Class A common stock for each LSC share they own. The deal represents a premium of 34 percent to LSC Communications shareholders, based on share prices of both companies as of Tuesday's close. • Mitsubishi UFJ Financial Group (MUFG). Commonwealth Bank of Australia will sell its asset management arm to Mitsubishi UFJ Financial Group for $2.9 billion in a surprise sale, the latest business to be sold by an Australian financial giant amid unprecedented regulatory scrutiny. The deal takes MUFG, currently ranked 39th, a long way towards that goal, bringing its total AUM to $727 billion and making it the biggest asset manager in the Asia-Oceania region, it said.

In Other News • Alphabet Inc (GOOGL). Alphabet's Waymo unit on Tuesday became the first company to receive a permit from the state of Califor- nia to test driverless vehicles without a backup driver in the front seat, the state's Department of Motor Vehicles said. California said Waymo can use about three dozen test vehicles without drivers behind the wheel in Santa Clara County, part of the greater technolo- gy hub of Silicon Valley. • Bank of America Corp (BAC). The company said its head of digital banking Michelle Moore will leave the company at the end of the year to focus on her family, the bank said in an internal memo sent to employees and seen by Reuters on Tuesday. Moore will be succeeded by David Tyrie, who led the strategy and products organization, according to the memo viewed that was sent on Monday. April Schneider will move from the deposits and savings products division to lead consumer and small business products. • Barnes & Noble Inc (BKS). The company on Tuesday filed a countersuit seeking damages from the former chief executive officer it fired in part because of claims he sexually harassed a female employee. The largest U.S. bookstore chain said Demos Parneros breached his duties of loyalty and good faith by sexually harassing the female employee, bullying subordinates, and attempting to "sabotage" a potential sale of the New York-based company. • CMR Group Inc(CME). Britain's competition watchdog cleared CME Group's 3.9 billion pounds deal to buy Michael Spencer's NEX Group Plc, paving the way for a cross-border trading powerhouse. The Competition and Markets Authority said that it would not refer the deal for further investigation. • Ford Motor Co (F) and Baidu Inc (BIDU). Ford Motor and Baidu launched a two-year project to test self-driving vehicles on Chinese roads, amid a global race by carmakers and internet firms to develop autonomous vehicle technology. By the end of the test period, the project will reach so-called level 4 technology for autonomous vehicles, or autonomous driving but not in all conditions. It is the second-highest tier after level 5, which describes vehicles that should be capable of navigating roads without any driver input. • KKR & Co Inc (KKR). PropertyGuru Group, which operates real estate portals and apps in Southeast Asia, said on Wednesday it has secured a S$200 million investment from private equity firm KKR as it seeks to grow its services. KKR has recently backed other technology firms in Southeast Asia, including Indonesian ride-hailing firm Go-Jek and the Philippines' Voyager Innovations, a digital payments firm. • Newell Brands Inc (NWL). The company is nearing a deal to sell Jostens, a U.S. manufacturer of memorabilia such as class rings and yearbooks, to private equity firm Platinum Equity LLC for around $1.3 billion, two people familiar with the matter said on Tuesday. The deal would mark the latest divestiture for Newell. Newell plans to use proceeds from its divestitures to repay debt and buy back shares, which are down around 50 percent since the start of 2018. • Tellurian Inc (TELL). The U.S. liquefied natural gas company will not be buying Toshiba Corp's 20-year commitment at Freeport LNG export terminal in Texas, a senior company executive told Reuters on Wednesday. For now, Tellurian is focusing on its Drift- wood LNG project, Tellurian vice-chairman and co-founder Martin Houston said.

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INSIGHT Musk shakes up SpaceX in race to make satellite launch window SpaceX Chief Executive Officer Elon Musk flew to the Seattle area in June for meetings with engineers leading a satellite launch pro- ject crucial to his space company's growth. Within hours of landing, Musk had fired at least seven members of the program's senior management team at the Redmond, Washington, office, the culmination of disagreements over the pace at which the team was de- veloping and testing its Starlink satellites, according to the two SpaceX employees with direct knowledge of the situation.

ANALYSTS' RECOMMENDATION • Allergan Plc (AGN). Credit Suisse cuts target price to $202 from $213 citing the company’s outlook for a few important product and operating margins for 2019, which may highlight new challenges. • Baker Hughes a GE Co (BHGE). Jefferies cuts price target to $36 from $38 saying that the company’s margin recovery in oilfield services is likely to be slowed down by fixed cost absorption inefficiencies and costs related to mobilizing for larger jobs. • eBay Inc (EBAY). Mizuho cuts price target to $30 from $36 citing the company’s slower gross merchandise volume growth and in- creased marketing and product investments. • FireEye Inc (FEYE). Cowen and Company raises target price to $19 from $18 following the company’s good overall third-quarter results as revenue and earnings per share exceeded consensus. • Under Armour Inc (UAA). Canaccord Genuity raises target price to $13 from $12 after the sportswear maker posted better-than- expected Q3 results driven by stronger sales and raised its full-year profit guidance.

ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0815 ADP national employment for Oct: Expected 189,000; Prior 230,000 0830 Employment wages QQ for Q3: Prior 0.5 pct 0830 Employment benefits QQ for Q3: Prior 0.9 pct 0830 Employment costs for Q3: Expected 0.7 pct; Prior 0.6 pct 0945 Chicago PMI for Oct: Expected 60.0; Prior 60.4

COMPANIES REPORTING RESULTS Allstate Corp (ALL). Expected Q3 earnings of $2.21 per share Ameren Corp (AEE). Expected Q3 earnings of $1.31 per share American International Group Inc (AIG). Expected Q3 earnings of 12 cents per share American Water Works Company Inc (AWK). Expected Q3 earnings of $1.16 per share Apache Corp (APA). Expected Q3 earnings of 47 cents per share CF Industries Holdings Inc (CF). Expected Q3 earnings of 15 cents per share Express Scripts Holding Co (ESRX). Expected Q3 earnings of $2.43 per share

4 Federal Realty Investment Trust (FRT). Expected Q3 earnings of 79 cents per share Fiserv Inc (FISV). Expected Q3 earnings of 77 cents per share General Motors Co (GM). Expected Q3 earnings of $1.25 per share HanesBrands Inc (HBI). Expected Q3 earnings of 55 cents per share HCP Inc (HCP). Expected Q3 earnings of 11 cents per share Hess Corp (HES). Expected Q3 earnings of break even per share Intercontinental Exchange Inc (ICE). Expected Q3 earnings of 80 cents per share Kellogg Co (K). Expected Q3 earnings of $1.06 per share Macerich Co (MAC). Expected Q3 earnings of 20 cents per share Mid-America Apartment Communities Inc (MAA). Expected Q3 earnings of 47 cents per share PerkinElmer Inc (PKI). Expected Q3 earnings of 92 cents per share Qorvo Inc (QRVO). Expected Q2 earnings of $1.62 per share Realty Income Corp (O). Expected Q3 earnings of 33 cents per share Williams Companies Inc (WMB). Expected Q3 earnings of 21 cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Bunge Ltd (BG). Q3 earnings conference call 0815 Yum! Brands Inc (YUM). Q3 earnings conference call 0830 Anthem Inc (ANTM). Q3 earnings conference call 0830 Automatic Data Processing Inc (ADP). Q1 earnings conference call 0830 Baxter International Inc (BAX). Q3 earnings conference call 0830 C.H. Robinson Worldwide Inc (CHRW). Q3 earnings conference call 0830 Carlyle Group LP (CG). Q3 earnings conference call 0830 Catalent Inc (CTLT). Annual Shareholders Meeting 0830 CDW Corp (CDW). Q3 earnings conference call 0830 HollyFrontier Corp (HFC). Q3 earnings conference call 0830 Integra Lifesciences Holdings Corp (IART). Q3 earnings conference call 0830 Intercontinental Exchange Inc (ICE). Q3 earnings conference call 0830 PBF Energy Inc (PBF). Q3 earnings conference call 0830 Sprint Corp (S). Q2 earnings conference call 0830 Verisk Analytics Inc (VRSK). Q3 earnings conference call 0900 Anadarko Petroleum Corp (APC). Q3 earnings conference call 0900 Concho Resources Inc (CXO). Q3 earnings conference call 0900 Curtiss-Wright Corp (CW). Q3 earnings conference call 0900 General Motors Co (GM). Q3 earnings conference call 1100 Molson Coors Brewing Co (TAP). Q3 earnings conference call 1100 ONEOK Inc (OKE). Q3 earnings conference call 1100 Spirit AeroSystems Holdings Inc (SPR). Q3 earnings conference call 1130 American Financial Group Inc (AFG). Q3 earnings conference call 1130 Hyatt Hotels Corp (H). Q3 earnings conference call 1200 Ares Capital Corp (ARCC). Q3 earnings conference call 1200 HCP Inc (HCP). Q3 earnings conference call 1200 Western Gas Partners LP (WES). Q3 earnings conference call 1200 Western Gas Equity Partners LP (WGP). Q3 earnings conference call 1300 Public Storage (PSA). Q3 earnings conference call 1330 Clorox Co (CLX). Q1 earnings conference call 1400 WEC Energy Group Inc (WEC). Q3 earnings conference call 1630 Masimo Corp (MASI). Q3 earnings conference call 1630 Tallgrass Energy LP (TGE). Q3 earnings conference call 1700 Fiserv Inc (FISV). Q3 earnings conference call 1700 PerkinElmer Inc (PKI). Q3 earnings conference call

5 1700 Qorvo Inc (QRVO). Q2 earnings conference call 1700 SS&C Technologies Holdings Inc (SSNC). Q3 earnings conference call

EXDIVIDENDS AES Corp (AES). Amount $0.13 Ally Financial Inc (ALLY). Amount $0.15 Caseys General Stores Inc (CASY). Amount $0.29 East West Bancorp Inc (EWBC). Amount $0.23 Goodyear Tire & Rubber Co (GT). Amount $0.16 Hasbro Inc (HAS). Amount $0.63 NRG Energy Inc (NRG). Amount $0.03 Paychex Inc (PAYX). Amount $0.56 People's United Financial Inc (PBCT). Amount $0.18 Pinnacle West Capital Corp (PNW). Amount $0.74 Realty Income Corp (O). Amount $0.22 Signature Bank (SBNY). Amount $0.56 Stanley Black & Decker Inc (SWK). Amount $1.34 Xylem Inc (XYL). Amount $0.21

(All analysts' estimates are according to Thomson Reuters I/B/E/S)

6 PICTURE OF THE DAY

Virginia Democratic candidate for U.S. Representative Jennifer Wexton (2nd R) and Virginia Governor Ralph Northam (2nd L) speak at a campaign rally in Sterling, Virginia, U.S. October 30. REUTERS/Jonathan Ernst

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