Briefing.Com

PORTFOLIO STRATEGY | PUBLISHED BY RAYMOND JAMES & ASSOCIATES

Morning Brew - December 9, 2020 U.S. FUTURES (BRIEFING.COM) The S&P 500 futures trade five points, or 0.1%, above fair value following yesterday's record closes in the benchmark index, Nasdaq Composite, and Russell 2000. Stimulus developments have been of interest this morning. Briefly, Treasury Secretary Mnuchin offered a new $916 billion stimulus bill that includes $600 direct payments to Americans but no enhanced unemployment benefits. The bill is slightly larger than the $908 billion bipartisan bill that excludes direct payments but includes unemployment relief. Democratic Congressional leadership called it progress, according to Bloomberg , but reiterated the need for unemployment relief and said talking points should still be focused on the bipartisan plan. They also shot down Senate Majority Leader McConnell's suggestion of leaving out funding for state and local governments. When the market opens for trading, attention will divert back to equities for the DoorDash (DASH) IPO, which priced shares at $102.00 for a $38.7 billion valuation on a fully-diluted basis. On the data front, investors will receive the JOLTS - Job Openings report for October and Wholesale Inventories for October (Briefing.com consensus 0.9%) at 10:00 a.m. ET. The weekly MBA Mortgage Applications Index decreased 1.2% following a 0.6% decline in the prior week. Longer-dated Treasuries are backpedaling from recent gains, pushing yields higher. The 2-yr yield is up one basis point to 0.15%, and the 10-yr yield is up three basis points to 0.94%. The U.S. Dollar Index is down 0.1% to 90.88. WTI crude is up 0.1% to $46.65/bbl.

U.S equity futures:

● S&P 500 Futures +4 @ 3706 . ● DJIA Futures +67 @ 30238 Sources: Briefing.com, FactSet, Raymond James Research, ● Nasdaq Futures -15 @ 12623 Raymond James Equity Portfolio & Technical Strategy Overseas:

● Europe: DAX +0.9%, FTSE +0.3%, CAC +0.2%

INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER | 880 CARILLON PARKWAY | ST. PETERSBURG FLORIDA 33716 PORTFOLIO STRATEGY

● Asia: Nikkei +1.3%, Hang Seng +0.8%, Shanghai -1.1%

PAGE 2 OF 9 PORTFOLIO STRATEGY

. Source: FactSet and RJ Equity Portfolio & Technical Strategy

In U.S. Corporate news:

● Campbell Soup (CPB 48.90, +0.70): +1.5% after beating EPS estimates and raising its dividend by 6%.

● FireEye (FEYE 14.20, -1.32): -8.5% after its software tools were compromised by a foreign-government attack, according to TheWallStreet Journal.

● DoorDash (DASH, private): the company priced its IPO at $102.00 per share, which is above the revised expected range of $90-95, for a valuation of $38.7 billion on a fully-diluted basis.

Today’s U.S. Economic Data (Briefing.com))

● 07:00 ET: MBA Mortgage Applications Index for December 5 (Briefing.com Consensus NA; Prior -0.6%)

● 10:00 ET: JOLTS - Job Openings for October (Briefing.com Consensus NA; Prior 6.436 M)

● 10:00 ET: Wholesale Inventories for October (Briefing.com Consensus 0.9%; Prior 0.4%)

● 10:30 ET: EIA Crude Oil Inventories for December 5 (Briefing.com Consensus NA; Prior -0.679 M)

OVERSEAS OVERNIGHT SUMMARY (BRIEFING.COM)

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Nikkei reported that Japan's tax revenue for FY20/21 will likely be about JPY4 trln below original expectations while bond issuance is expected to reach a record of JPY100 trln. Australia's consumer confidence reached a ten year high in the December reading. KIA's unionized employees are on a partial strike until Friday. Chinese companies will reportedly be allowed to issue bonds to international investors that will offer settlement in multiple currencies.

● In economic data:

PAGE 3 OF 9 PORTFOLIO STRATEGY

○ China's November CPI -0.6% m/m (expected -0.2%; last -0.3%); -0.5% yr/yr (expected 0.8%; last 0.5%). November PPI -1.5% yr/yr (expected -1.8%; last -2.1%) and November total social financing CNY2.13 trln (expected CNY2.075 trln; last CNY1.42 trln)

○ Japan's October Core Machinery Orders 17.1% m/m (expected 2.8%; last -4.4%); 2.8% yr/yr (expected -11.3%; last -11.5%). November Machine Tool Orders 8.0% yr/yr (last -6.0%)

○ Australia's October Building Permits 3.8% m/m (last 16.2%) and December Westpac Consumer Sentiment 4.1% m/m (last 2.5%)

○ New Zealand's Q3 Manufacturing Sales Volume 17.3% qtr/qtr (last -12.2%)

Major European indices trade in the green. German Chancellor Merkel said that there is "great uncertainty" surrounding the EU budget and that the region is prepared for a no-deal Brexit. The British Prime Minister is expected to speak with the European Commission President this evening. Italy's Prime Minister expressed hope for the EU rescue fund to become permanent.

● In economic data:

○ Germany's October trade surplus EUR18.20 bln (expected EUR18.00 bln; last EUR17.60 bln). October Imports 0.3% m/m (expected 1.0%; last 0.2%) and exports 0.8% m/m (expected 1.2%; last 2.3%)

○ Spain's October Industrial Production -1.6% yr/yr (expected -2.6%; last -3.1%) and November Consumer Confidence 55.7 (last 48.5)

STOCK HEADLINES (BRIEFING.COM)

Earnings/Guidance:

● AeroVironment (AVAV) beats by $0.17, beats on revs; reaffirms FY21 EPS guidance, revs guidance; to acquire Telerob, a German leader in ground robotics

● ASE Technology (ASX) reports November sales increased 31.7% yr/yr to NT$50.67 bln

● British American Tobacco (BTI) reaffirms FY20 guidance

● Campbell Soup (CPB) beats by $0.11, reports revs in-line; guides Q2 EPS in-line, revs in-line; raises dividend

● Canadian Natrl Res (CNQ) provides FY21 targets; sees 2021 production rising 5% yr/yr

● Chewy (CHWY) beats by $0.05, beats on revs; guides Q4 revs above consensus

● Designer Brands (DBI) beats by $0.15, reports revs in-line

● Deutsche Bank (DB) confirms its primary strategic and financial targets for 2020 and 2022

● Element Solutions (ESI) provides FY20 guidance metrics

● GameStop (GME) beats by $0.32, misses on revs, comparable store sales down 24.6%, expects to realize positive comparable store sales results and profitability in Q4

● GATO Silver (GATO) reports Q3 results

● Guidewire Software (GWRE) beats by $0.22, beats on revs; guides Q2 revs in-line; guides FY21 revs in-line

● JPMorgan Chase (JPM) CEO Jamie Dimon sees 2021 expenses topping $67 bln; sees Q4 markets revenue increase of 20%, according to Reuters

● Lovesac (LOVE) beats by $1.01, beats on revs

● MongoDB (MDB) beats by $0.13, beats on revs; guides Q4 EPS above consensus, revs above consensus

● Nielsen (NLSN) reaffirms FY20 guidance at Investor Day

● Pacira Pharma (PCRX) reports preliminary net product sales of $38.9 million for November 2020

● Photronics (PLAB) misses by $0.05, misses on revs; guides Q1 EPS below consensus, revs in-line

● Phreesia (PHR) misses by $0.01, beats on revs; guides FY21 revs above consensus, announces planned CFO transition

● Powell Inds (POWL) reports SepQ results below two-analyst estimate

PAGE 4 OF 9 PORTFOLIO STRATEGY

● Takeda Pharma (TAK) provides long-term growth outlook

● Tempur Sealy Int'l (TPX) provides market update; expects adjusted EBITDA growth of approximately 30% on low double-digit net sales growth

● United Natural Foods (UNFI) misses by $0.23, misses on revs; reaffirms FY21 EPS guidance, revs guidance

● W&T Offshore (WTI) raises Q4 production guidance

General News:

● Treasury Secretary Steven Mnuchin offered a new $916 bln stimulus bill with checks, but no unemployment. Senate Majority Leader Mitch McConnell (R-KY) offered a limited stimulus bill without state and local government funding or liability protection but with funding for small businesses. Both bills were rejected by Democrats, according to the NewYorkTimes

● Supreme Court rejected challenge to election results in Pennsylvania. Texas AG Ken Paxton filed another request to ask the high court to extend the December 14 electoral college deadline, according to the NewYorkTimes

● House passes defense authorization act with enough votes to override President Trump's expected veto, according to TheHill

● JP Morgan (JPM) CEO Jamie Dimon says he wouldn't touch 10 Year Treasuries "with a ten foot pole" at current rates, according to CNBC

● Joe Biden selects Tom Vilsack as his agricultural secretary and Rep. Marcia Fudge (D-OH) as his Housing and Urban Development secretary, according to xios

● UK suspended retaliatory tariffs on US goods related to Airbus (EADSY) dispute, according to Reuters

● Akoustis Technologies (AKTS) awarded a design win from a second WiFi 6 customer for its 5.2/5.6 GHz XBAW RF coexistence filter solutions

● Albireo Pharma (ALBO) submits New Drug Application to the U.S. FDA and a Marketing Authorization Application to the European Medicines Agency seeking approval of odevixibat

● Assembly Biosciences (ASMB) announces wind-down of microbiome program

● AT&T (T) provided update to shareholders at UBS Global TMT Conference

● Brookdale Senior Living (BKD) reports consolidated occupancy for November; 89% of the company's communities were open for move-ins on November 30, 2020

● Cabaletta Bio (CABA) announces that first patient has been dosed in the DesCAARTes Phase 1 trial of DSG3-CAART

● Cambium Networks (CMBM) settles lawsuit with Ubiquiti

● Chemours (CC) extends existing share repurchase program through December 31, 2022

● Cohen & Steers (CNS) reports Nov AUM of $76.7 bln

● CureVac (CVAC) and Fareva sign agreement for fill & finish manufacturing of Curevac’s COVID-19 vaccine candidate, CVnCoV

● Cytokinetics (CYTK) announced the progression of REDWOOD-HCM following the conduct of an interim analysis of data from Cohort 1

● CytoSorbents (CTSO) highlights the publication of a 'genetic' matched analysis evaluating the early initiation of CytoSorb in critically ill patients with septic shock

● Eli Lilly's (LLY) tirzepatide significantly reduced A1C and body weight in people with type 2 diabetes

● Erie Indemnity (ERIE) increases Class A quarterly cash dividend to $1.035/share from $0.965/share; declares special one-time cash dividend of $2.00 per Class A share

● Evelo Biosciences (EVLO) announced positive topline clinical data from its Phase 1b clinical trial of EDP1815 in 23 evaluable subjects with mild to moderate atopic dermatitis

● Facebook (FB): State and federal officials are expected to file antitrust case against Facebook today, according to the WashingtonPost

● FireEye (FEYE) was breached by a foreign-government attack, compromising software tools, according to the WallStreetJournal

PAGE 5 OF 9 PORTFOLIO STRATEGY

● Forma Therapeutics (FMTX) launches public offering of 4.6 mln shares of common stock

● GTT Communications (GTT) announces that CFO Steven Berns has stepped down; company appoints Donna Granato as interim Chief Financial Officer

● HC2 Director (HCHC) (Avram Glazer of Lancet Capital) bought 341K shares worth ~$1.2 mln (transaction dates 12/4-12/8)

● Illumina (ILMN) announces risk-sharing agreement with Harvard Pilgrim Health Care

● Kazia Therapeutics (KZIA) reports top-line final data from its phase I study of Cantrixil (TRX-E-002-1) in patients with persistent or recurrent ovarian cancer; Trial achieved its primary objective

● Lipocine (LPCN) receives tentative approval of TLANDO

● Magal Security (MAGS) declared a cash distribution to shareholders in the amount of $1.079 per share (approximately $25 million in the aggregate), following the receipt of court approval in Israel

● MasterCard (MA) increases quarterly cash dividend to $0.44/share from $0.40/share; approves new $6 bln repurchase program

● Novartis AG's (NVS) Sandoz announces immediate availability of generic acetaminophen injection

● Orion Energy Systems (OESX) secured a new contract extension totaling ~$40 mln for the turnkey LED lighting and controls retrofit of 290 additional locations for an existing large national retail customer

● Parsons (PSN) awarded $21 mln contract to safeguard Southern Nevada's Water Supply

● Pentair (PNR) increases quarterly cash dividend to $0.20/share from $0.19/share; authorizes new $750 mln share repurchase program

● Pfizer (PFE) announces FDA acceptance of BLA for 20-valent pneumococcal conjugate vaccine candidate for priority review

● Piedmont Lithium (PLL) to re-domicile from Australia to the United States via a proposed Scheme of Arrangement

● Pluristem Therapeutics (PSTI) reports CLI study is unlikely to meet its primary endpoint by the time of the final analysis

● ProPhase (PRPH) expands COVID-19 testing capacity with new facility lease in New York

● REGENXBIO (RGNX) announces positive interim data and update for Phase I/II Trial of RGX-121 for the treatment of MPS II

● Regions Fincl (RF) COO John Owen to retire effective March 15

● Rio Tinto (RIO): Inquiry says Rio Tinto should pay restitution for Aboriginal caves blast, according to Reuters

● Rocket Pharmaceuticals (RCKT) announces "positive" gene expression, clinical biomarker, and preliminary functional data from Phase 1 trial of RP-A501

● Rush Enterprises (RUSHA) approves new $100 mln stock repurchase program

● Sanofi (SNY) signs sustainability-linked revolving credit facilities

● Scorpio Bulkers (SALT) enters into agreement to sell an Ultramax bulk carrier built in 2016 for approximately $18.25 mln

● Shutterstock (SSTK) announces integration with WordPress, offering real-time smart image recommendations to help creatives publish at lightning speed

● SmileDirectClub (SDC) granted patent for SmileShop retail concept and digital methodology

● Softbank (SFTBY) considering going private, according to Bloomberg

● Sorrento Therapeutics (SRNE) receives Clinical Laboratory Improvement Amendments license from the State of California for clinical sample testing

● Tattooed Chef (TTCF) expands product range with plant-based meat alternatives

● TJX (TJX) announces 13% increase in quarterly dividend to $0.26/sh, new yield is 1.6%

● Tricida (TCDA) provides update on veverimer's development program, regulatory status, and patent protection

PAGE 6 OF 9 PORTFOLIO STRATEGY

● Twitter (TWTR), Vimeo (PYPL), and others are pushing back against EU rules regarding online content, according to Reuters

● UBS (UBS) CEO Ralph Hamers is being probed by Dutch regulators related to ING money laundering case, according to Reuters

● United Therapeutics (UTHR) receives FDA Orphan Drug Designation for treprostinil for the treatment of idiopathic pulmonary fibrosis; Phase 3 TETON study planned in 2021 for Tyvaso

● Univar Solutions (UNVR) expands distribution agreement with Solvay Group's Novecare Coatings and Industrial Process Solutions business units

● Univ Elec (UEIC) selected to provide voice-enabled remote controls to Virgin Media for its new Virgin TV 360 platform

● Veru (VERU) expands oncology drug pipeline; exclusively licenses phase 3 clinical stage targeted therapy for endocrine resistant metastatic breast cancer

● Viavi (VIAV) enters into licensing agreement with Viko Optics for 3D sensing filters

Today's Research -VIEW FULL REPORT

Sources: Briefing.com, FactSet, Raymond James Research, Raymond James Equity Portfolio & Technical Strategy (M20-3362786)

PAGE 7 OF 9 PORTFOLIO STRATEGY

IMPORTANT INVESTOR DISCLOSURES This material is being provided for informational purposes only. Expressions of opinion are provided as of the date above and subject to change. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Commodities and currencies investing are generally considered speculative because of the significant potential for investment loss. Their markets are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Links to third-party websites are being provided for informational purposes only. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any third-party website or the collection or use of information regarding any websites users and/or members. This report is provided to clients of Raymond James only for your personal, noncommercial use. Except as expressly authorized by Raymond James, you may not copy, reproduce, transmit, sell, display, distribute, publish, broadcast, circulate, modify, disseminate, or commercially exploit the information contained in this report, in printed, electronic, or any other form, in any manner, without the prior express written consent of Raymond James. You also agree not to use the information provided in this report for any unlawful purpose. This report and its contents are the property of Raymond James and are protected by applicable copyright, trade secret, or other intellectual property laws (of the United States and other countries). United States law, 17 U.S.C. Sec. 501 et seq, provides for civil and criminal penalties for copyright infringement. No copyright claimed in incorporated U.S. government works. Index Definitions The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The NASDAQ Composite is a stock market index of the common stocks and similar securities listed on the NASDAQ stock market. The MSCI World All Cap Index captures large, mid, small and micro-cap representation across 23 Developed Markets (DM) countries. With 11,732 constituents, the index is comprehensive, covering approximately 99% of the free float-adjusted market capitalization in each country. The MSCI EAFE (Europe, Australasia, and Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States & Canada. The EAFE consists of the country indices of 21 developed nations. The MSCI Emerging Markets Index is designed to measure equity market performance in 23 emerging market countries. The index's three largest industries are materials, energy, and banks. The Russell 2000 index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. The NYSE Alerian MLP is the leading gauge of energy infrastructure Master Limited Partnerships (MLPs). The capped, float-adjusted, capitalization-weighted index, whose constituents earn the majority of their cash flow from midstream activities involving energy commodities, is disseminated real-time on a price-return basis (AMZ) and on a total-return basis (AMZX). The Barclays Intermediate Government/Credit Bond index measures the performance of U.S. Dollar denominated U.S. Treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years. The Euro Stoxx 50 Index is a market capitalization weighted stock index of 50 large, blue-chip European companies operating within Eurozone nations. Components are selected from the Euro STOXX Index which includes large-, mid- and small-cap stocks in the Eurozone. The China CSI 300 is a capitalization-weighted stock market index designed to replicate the performance of top 300 stocks traded

PAGE 8 OF 9 PORTFOLIO STRATEGY in the Shanghai and Shenzhen stock exchanges. It had a sub-indexes CSI 100 Index and CSI 200 Index. The S&P 500 Futures is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The DJIA Futures is a stock market index futures contract traded on the Chicago Mercantile Exchange`s Globex electronic trading platform. Dow Futures is based off the Dow 30 stock index. The Nasdaq 100 Futures is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international companies listed on the NASDAQ. Europe: DAX (Deutscher Aktienindex (German stock index)) is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. Asia: Nikkei is short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price- weighted index composed of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. International Disclosures ForclientsintheUnitedKingdom: For clients of Raymond James Financial International Limited (RJFI): This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed, being persons who are Eligible Counterparties or Professional Clients as described in the FCA rules or persons described in Articles 19(5) (Investment professionals) or 49(2) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)or any other person to whom this promotion may lawfully be directed. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons and may not be relied upon by such persons and is, therefore, not intended for private individuals or those who would be classified as Retail Clients. For clients of Raymond James Investment Services, Ltd.: This document is for the use of professional investment advisers and managers and is not intended for use by clients. ForclientsinFrance: This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed, being persons who are Eligible Counterparties or Professional Clients as described in "Code Monetaire et Financier" and Reglement General de l'Autorite des marches Financiers. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons and may not be relied upon by such persons and is, therefore, not intended for private individuals or those who would be classified as Retail Clients. For clients of Raymond James Euro Equities: Raymond James Euro Equities is authorised and regulated by the Autorite de Controle Prudentiel et de Resolution and the Autorite des Marches Financiers. ForinstitutionalclientsintheEuropeanEconomicrea(EE)outsideoftheUnitedKingdom: This document (and any attachments or exhibits hereto) is intended only for EEA institutional clients or others to whom it may lawfully be submitted. ForCanadianclients: This document is not prepared subject to Canadian disclosure requirements, unless a Canadian has contributed to the content of the document. In the case where there is Canadian contribution, the document meets all applicable IIROC disclosure requirements. Broker Dealer Disclosures Securities are: NOT Deposits • NOT Insured by FDIC or any other government agency • NOT GUARANTEED by the bank • Subject to risk and may lose value Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James® is a registered trademark of Raymond James Financial, Inc.

PAGE 9 OF 9