Overnight Summary: The S&P 500 closed Monday higher by 0.07% at 4048.42 from Friday higher by 1.61% at 4045.64. The overnight high of 4064.50 was hit at 4:10 a.m. EST. The low was hit at 4051.25 at 6:05 p.m. EST, a range of ~13 points high to low. At 7:25 a.m. EST, the S&P 500 (mini) was higher by 4.75 points which is 0.12%.
Earnings Out After The Close:
- Beats: TCOM +0.92, DOMO +0.07 of note.
- Flat: None of note.
- Misses: WW -0.47, CVGW -0.26, GWRE -0.19, AVAV -0.10 of note.
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity. It looks for volume outliers relative to the Open interest in Calls or puts. Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.
Capital Raises:
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Jupiter Wellness Acquisition Corp. (JWAC ) to Extend Period to Consummate Initial Business Combination.
- Secondaries Priced:
- GSBD: Prices offering of 6.5 million shares of common stock for gross proceeds of $99.1 million.
- HLNE: Prices offering of 671,737 shares of Class A common stock for gross proceeds of $51.7 million.
- JXN: Announces Pricing of Depositary Shares Offering.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ALIT: Announces Closing of Upsized Secondary Offering of Common Stock and Full Exercise of Over-Allotment Option.
- BBIO: Proposed Public Offering of Common Stock — $150 Million. (GS, Evercore and MS Bookmanagers)
- CDTX: Form 8K.. underwriting agreement 9.64 Million.
- GSBD: Offering of Shares of Common Stock 6.5 Million shares. (BAC, MS and GS Bookmanager)
- HLNE: Announces Public Offering of Class A Common Stock.
- SLVM: Filed Form S-3ASR.. 6,312,454 Shares of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note:
- BKSY: Entered into definitive agreements with a syndicate of new and existing institutional investors for the issuance and sale of 16,403,677 shares of the Company’s Class A common stock and warrants to purchase up to an additional 16,403,677 shares of common stock in a private placement offerinG.
- STKL: Filed Form S-3ASR.. 6,089,331 Common Shares Offered By Selling Stockholders.
- VUZI: files for 2,843,754 share common stock offering by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings: None of note.
- Debt Filing/Notes: None of note.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- LSXMA: Intends to offer $500 mln aggregate principal amount of convertible senior notes.
- RIVN: Plans to Offer $1.3 Billion in Green Convertible Senior Notes Due 2029 in a Private Offering.
Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
News After The Close:
- After Hours:
- Trading Up: WW +6% of note.
- Trading Down: CARA -28%, CVGW -15%, ZYXI -12%, GSBD -5%, DOMO -4%, CHRS -4% of note.
- News After The Close:
- Stocks making the biggest moves after hours: KEY, NSC, WW (CNBC)
- WeightWatchers (WW) Moves Into the Ozempic Market With Telehealth Deal. (WSJ)
- Domo (DOMO) posts narrower quarterly loss, CEO Mellor to step down. (MarketWatch)
- Nutanix (NTNX) stock falls as early results top expectations. (MarketWatch)
- Exchange/Listing/Company Reorg and Personnel News:
- Akso Health Group (AHG) Received Nasdaq Notification Letter Regarding Stockholders’ Equity Deficiency.
- Amarin (AMRN) Announces Board Departures.
- Carriage Services (CSV) Appoints Kian Granmayeh as Chief Financial Officer.
- Mr. Cooper Group (COOP) Announces Executive Leadership Appointments.
- Domo (DOMO) Announces CEO Transition: John Mellor Steps Down as CEO, Succeeded by Domo Founder Josh James.
- FAT Brands Inc. (FAT) Founder Andy Wiederhorn to Step Aside as CEO and Transition to Strategic Advisory Role in May 2023.
- Heliogen (HLGN) Announces Updates to Strengthen Its Board and Drive Implementation of Strategic Plan and Growth Initiatives.
- Lulu’s Fashion Lounge (LVLU) announces that Vice President of Finance, Tiffany Smith, has been appointed CFO.
- Nutanix (NTNX) to delay 10-Q.
- Semrush (SEMR) Continues Growth Trajectory with Two Board of Director Appointments and new Chief Financial Officer.
- Theratechnologies (THTX) Receives Nasdaq Notification Letter Regarding Share Price.
- Zynex, Inc. (ZYXI) to Postpone Fourth Quarter and Full Year 2022 Financial Results Release and Conference Call.
- Buyback Announcements or News:
- B. Riley Financial (RILY) Authorized an updated share repurchase program for share repurchases of up to $50 million through October 2023.
- Con Edison (ED) Announces $1 Billion Accelerated Share Repurchase.
- Stock Splits or News:
- FRGT announced 10:1 reverse stock split.
- Kaleyra (KLR) to Effect 1-for-3.5 Reverse Stock Split.
- Dividends Announcements or News:
- DKS declared a quarterly dividend in the amount of $1.00 per share, 105% increase.
- HD Goes ex div tomorrow for $2.09.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +4, Dow Jones +10, NASDAQ +33, and Russell 2000 +5. (as of 7:53 a.m. EST). Asia and Europe higher. VIX Futures are at 19.15 from 19.55 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent lower with Natural Gas higher. US 10-year Treasury sees yields at 3.944% from 3.921% since Monday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $22,364 from $22,395 yesterday, lower by -0.09%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Communication Services, Utilities of note.
- Daily Negative Sectors: Basic Materials, Consumer Cyclical, Real Estate, Industrials of note.
- One Month Winners: Industrials, Energy of note.
- Three Month Winners: Basic Materials,Technology, Industrials of note.
- Six Month Winners: Basic Materials, Industrial, Financial of note.
- Twelve Month Winners: Energy, Industrial of note.
- Year to Date Winners: Technology, Consumer Cyclical, Communication Services of note.
U.S. stocks treaded water Monday, with investors awaiting Fed Chair Jerome Powell’s congressional testimony on Tuesday and important labor market data at the end of the week. The S&P 500 inched up 2.78 points, or less than 0.1%, to 4048.42, and the Dow Jones Industrial Average added 40.47 points, or 0.1%, to 33431.44. The Nasdaq Composite slipped 13.27 points, or 0.1%, to 11675.74. Stocks opened the session modestly higher before paring their advance in afternoon trading. (WSJ – edited by QPI)
Click here for a video explanation of Erlanger Value Lines.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: SE +1.27, SRRK +0.11, DKS +0.04, DOLE +0.04 of note.
- Flat: None of note.
- Misses: SQSP (1.97), THO (0.64), SWIM (0.09), MCRB (0.08), MASS (0.07) of note.
- Still to Report: PACK, SEAT of note.
Guidance:
- Positive Guidance: CIEN, NTNX, GWRE, SQSP of note.
- Negative Guidance: WW, AVAV, BB, THO, SWIM of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: WW +12%, SQSP +4%, AMRN +4% of note.
- Gap Down: CARA -30%, CVGW -12%, NTNX -8%, ZYXI -6%, GSBD -5%, RIVN -5%, DOMO -4% of note.
Insider Action: AUPH sees Insider buying with dumb short selling. RIG sees Insider buying with smart short sellers.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.
- 5 Things to Know Before Stock Market Opens Tuesday. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Biden Proposes Tax Hike on Income Over $400,000 to Fund Medicare. (Bloomberg)
- Bloomberg Most Read Story: Meta Plans Thousands More Layoffs As Soon As This Week. (Bloomberg)
- U.S. Futures Edge Higher As Treasuries Hold Below 4% on the 10 Year. (Bloomberg)
- Preview of Powell’s testimony on Capitol Hill this week. (CNBC)
- Dicks (DKS) blows out sales and earnings on holiday sales. (CNBC)
- Thor Industries (THO) sees RV sales slow and cuts 2023 profit outlook and misses Q2 forecast. (Market Watch)
- The Justice Department will block JetBlue (JBLU) proposed merger with Spirit Airlines (SAVE). (NYT)
- Moody’ Chief Economist Mark Zandi to warn Congress on debt ceiling saying one million jobs at risk. (NYT)
Moving Average Update:
- Score slides a touch to 74%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing; The Vice President attends, 10:15 a.m. EST
- Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EST
Economic:
- Redbook Sales 8:55 a.m. EST
- Wholesale Inventories 10:00 a.m. EST
- Consumer Credit 3:00 p.m. EST
- API Crude Oil Data 4:30 p.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve Chair Jerome Powell 10:00 a.m. EST
M&A Activity:
- Criteo (CRTO) acquires Brandcrush to accelerate offline retail media solutions.
- WeightWatchers (WW) to buy digital health company SEQUENCE (WSJ)
Meeting & Conferences of Note:
- Company Meetings: MBOT, KRBP, NVS
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ADIL, CHX, DBGI, INFN, KEYS, NABL, NVT, VC, WBX
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Industry Meetings:
Top Tier Sell-side Upgrades & Downgrades:
The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.
Today’s Upgrades and Downgrades:
Previous Day’s Upgrades and Downgrades:
