Overnight Summary: The S&P 500 closed Wednesday higher by 0.13% at 4981.80 from Tuesday lower by 29.58 points which is -0.60% at 4975.99. The overnight high was hit at 5067.75 at 6:25 p.m. EST while the overnight low was hit at 4973.25 at 4:25 p.m. EST. The range overnight was 94 points as of 7:20 a.m. EST. The 10-day average of the overnight range is at 23.25 from 21.45. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +63.25 points at 7:20 a.m.
Executive Summary: Not much to say about this morning other than “el feugo” as Nvidia’s earnings and revenue beat drive the markets today.
- February S&P Global US Manufacturing PMI is due out at 9:45 a.m. EST and came in last month at 50.70.
- February S&P Global Services PMI is due out at 9:45 a.m. EST and came in last month at 52.50.
- January Existing Home Sales is due out at 10:00 a.m. EST and is expected to drop to 3.97 million from 3.99 million.
- Federal Reserve Board of Governors Philip N. Jefferson 10:00 a.m. EST
- Federal Reserve Philadelphia President Patrick Harker 3:15 p.m. EST
- Federal Reserve Board of Governors Lisa D. Cook 5:00 p.m. EST
- Federal Reserve Minneapolis President Neel Kashkari 5:00 p.m. EST
- Federal Reserve Board of Governors Christopher Waller 7:35 p.m. EST
Earnings Out After The Close:
- Beats: KALU +1.04, TCOM +0.89, NVDA +0.57, NGVT +0.31, CHRD +0.26, NVRO +0.24, NDSN +0.24, ANSS +0.23, CHDN +0.18, SM +0.17, RRC +0.16, EXAS +0.15, VMI +0.13, FIVN +0.13, VAC +0.13, SNPS +0.13, ORA +0.10, CPK +0.09, CAKE +0.07, TBI +0.07, UCTT +0.07, PRDO +0.07, DOCN +0.07, PEB +0.07, CWH +0.06, VMEO +0.06, MRO +0.06, ZD +0.06LUNG +0.05, VTLE +0.04, AGR +0.04, AMK +0.02, CDE +0.02, BROS +0.02, CCRN +0.02, LCID +0.01, AGI +0.01, JOBY +0.01 of note.
- Flat: OLO +0.00, MCW +0.00, DOC +0.00, HST +0.00, OUT +0.00, OGS +0.00, ICLR +0.00 of note.
- Misses: ECPG (12.63), BALY (4.56), KW (1.47), RUN (1.39), NOVA (1.27), JXN (0.94), QTWO (0.55), NTR (0.28), FNF (0.23), RELY (0.20), TNDM (0.19), APA (0.18), MOS (0.16), ETSY (0.15), AWR (0.12), AMED (0.10), RGR (0.09), ACVA (0.09), GKOS (0.08), RCUS (0.06), MGRC (0.06), WES (0.05), GSHD (0.05), TS (0.04), HUN (0.04), ERII (0.04), RIVN (0.01), GNK (0.01), JACK (0.01), BTG (0.01) of note.
Capital Raises:
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- AltEnergy Acquisition Corp. (AEAE) and Car Tech announce business combination agreement; Car Tech plans to list on NasdaqCM.
- NYSE American to Suspend Trading in Viveon Health Acquisition Corp. (VHAQ).
- Secondaries Priced:
- SYM: Pricing of Primary and Secondary Offering of Class A Common Stock 10M @$40.50
- Notes Priced of note:
- ETRN: Pricing of Private Offering of Senior Notes.
- PSN: Announces pricing of its private offering of $700.0 million aggregate principal amount of its 2.625% convertible senior notes due 2029.
- Common Stock filings/Notes:
- DPRO: Proposed Public Offering of Common Shares & Warrants. (Maxim Bookmanager)
- KTOS: Announces proposed public offering of $300 million of common stock. (See Mixed Shelf)
- NI: Has established an “at-the-market” equity offering program under which it may sell shares of its common stock having an aggregate gross sales price of up to $900 million through December 31, 2025.
- Direct Offering: None of note.
- Selling Shareholders of note:
- NXGL: $975,000 Registered Direct Offering Led by Insiders.
- RCUS: FORM S-3ASR – 16,248,095 Shares Common Stock Offered by the Selling Stockholder.
- SYM: Primary and Secondary Offering of Class A Common Stock.. 5,000,000 shares of its Class A common stock and the Selling Securityholders are offering 5,000,000 shares of Class A common stock.
- Private Placement of Public Entity (PIPE):
- OCUL: Announces $325.0 Million Private Placement.
- Mixed Shelf Offerings:
- CNC: Files mixed shelf securities offering.
- ENOV: Filed Form S-3ASR – Mixed Shelf.
- GRP.U: Files $1.5 billion mixed shelf securities offering.
- KTOS: Filed Form S-3ASR – Mixed Shelf Offering.
- RARE: Filed Form S-3ASR – Mixed Shelf.
- WMB: Filed Form S-3ASR – Mixed Shelf.
- Debt/Credit Filing and Notes:
- ABBV: To sell at least $13.0 billion of bonds to support M&A funding. (Bloomberg)
- LYFT: Announces private offering of $400 million of convertible senior notes due 2029.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- PSN: Offering Of $700.0 Million Of Convertible Senior Notes Due 2029.
- RUN: Announces proposed private offering of $475 million of convertible senior notes.
- SMCI: Announces proposed offering of $1.5 billion of convertible senior notes due 2029.
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 Movers:
- BZFD: 105% Sale of Complex to NTWRK in All-Cash Deal
- CYN: +17% Granted Extension for Continued Listing on Nasdaq
- ROOT: +15% Earnings
- ACVA: +15% Earnings
- RELY: +15% Earnings
- CNNE: +12% Earnings
- OUT: +11% Earnings
- BROS: +8% Earnings
- NVDA: +7% Earnings
- RCL: +6% INCREASES 2024 GUIDANCE ON ACCELERATING DEMAND
- CHDN: +5.5% Earnings
- RIVN: -16% Earnings
- RUN: -10% Proposed Private Offering of $475 Million of Convertible Senior Notes
- FIVN: -7% Earnings
- LCID: -7% Earnings
- KTOS: -6% Proposed Public Offering of Common Stock
- ETSY: -5.5% Earnings
- LYFT: -2% Private Offering of $400 million of Convertible Senior Notes
- News Items After the Close:
- Stocks making the biggest moves after hours: NVDA, ETSY, RIVN, LCID, SNPS (CNBC)
- Nvidia (NVDA) Surges After AI Boom Shows No Signs of Letting Up. (Bloomberg)
- Nvidia’s (NVDA) Data Center business is booming, up more than 400% since last year. (CNBC)
- NVDA Gene Munster suggests that Nvidia shares could soar in an AI growth surge if the next five years continue as projected, potentially reaching $180 billion in revenue by 2028.
- Etsy (ETSY) stock is dropping on earnings miss, slow start to fiscal year. (MarketWatch)
- Royal Caribbean (RCL) raises guidance on heated demand for cruises. (MarketWatch)
- COF/DFS: Senate Republican demands Biden block credit card company merger. (AXIOS)
- Rivian Automotive (RIVN) announces it is reducing salaried workforce by approximately 10%. (Bloomberg)
- Accenture (ACN) awarded $790 million U.S. Navy contract.
- Cummins (CMI) awarded $459 million U.S. Army contract.
- Exchange/Listing/Company Reorg and Personnel News:
- Agilent (A) announces that Padraig McDonnell, president of the Agilent CrossLab Group, has been named CEO-elect and chief operating officer of the company.
- American Software (AMSWA) announces resignation of Executive Chair Jim Edenfieldl; Board member James Miller Jr. agrees to serve as the Chair of The Board.
- Amwell (AMWL) named Cynthia Horner, M.D., FAAFP, as its chief medical officer.
- Energy Recovery (ERII) announces Joshua Ballard has made the decision to step down from his position as Chief Financial Officer.
- Flywire (FLYW) announces that Cosmin Pitigoi will join as CFO.
- Goosehead Insurance (GSHD) announces that that Chairman and Chief Executive Officer Mark Jones will transition to Executive Chairman of the company.
- Grainger (GWW): Twelve Directors slated for Grainger’s Board to be voted on at the Company’s Annual Meeting on April 24, 2024.
- Hamilton Beach Brands (HBB) announces that R. Scott Tidey, Senior Vice President-Global Sales of the Company’s wholly owned subsidiary, Hamilton Beach Brands, has been appointed President of the Company.
- Jackson Financial (JXN) announces that CFO Marcia Wadsten intends to retire from Jackson.
- Planet Fitness (PLNT) Announced that Tom Fitzgerald, Chief Financial Officer, has informed the Company of his intention to retire.
- Pulmonx (LUNG) announces that Glen French will retire as the Company’s President and Chief Executive Officer.
- Buyback Announcements or News:
- Builders FirstSource (BLDR) increases stock repurchase plan to $1 billion.
- D.R. Horton Mortgage Company (DHI) amended master repurchase agreement.
- DigitalOcean (DOCN) authorizes up to $140 million for repurchases.
- GRAB authorizes up to $500 million share repurchase plan.
- ICON plc (ICLR) authorizes share repurchase program up to $500 million.
- Installed Building Products (IBP) announces new $300 million share buyback program. (see Dividends)
- Laureate Education (LAUR) approves up to $100 million for repurchases.
- Nutrien (NTR) announces intent to launch a new share repurchase program.
- Old National Bancorp (ONB) announces that its Board of Directors approved a stock repurchase program which authorizes the repurchase of up to $200 mln of the Company’s common stock.
- Option Care Health (OPCH) authorizes $250 million for repurchases.
- Pan Am Silver (PAAS) announced intention to make a normal course issuer bid to repurchase common shares.
- Perdoceo Education (PRDO) Board authorizes the company to repurchase up to $50.0 mln of common stock.
- Valley National (VLY) announces that its Board of Directors approved a stock repurchase program authorizing the purchase of up to 25 million shares of Valley common stock.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Allison Transmission (ALSN) increases quarterly cash dividend 9% to $0.25 per share from $0.23 per share.
- American Homes 4 Rent (AMH) increases quarterly dividend 18% to $0.26 per share from $0.22 per share.
- Amerisafe (AMSF) increases quarterly dividend 8.8% to $0.37 per share from $0.34 per share.
- Blue Owl Capital Corporation (OWL) Increases Quarterly Dividend.
- Chubb Board (CB) to recommend increase in quarterly dividend amount to $0.91 per share from $0.86 per share.
- Danaher (DHR) increases quarterly cash dividend to $0.27 per share from $0.24 per share.
- Huntsman (HUN) increases quarterly dividend 5% to $0.25 per share from $0.2375 per share.
- Installed Building Products (IBP) increases dividend 6%.
- Jackson Financial (JXN) increases quarterly dividend 13% to $0.70 per share from $0.62 per share.
- McGrath RentCorp (MGRC) increases dividend.
- Nutrien (NTR) increases quarterly cash dividend to $0.54 per share from $0.53 per share.
- SAP SE (SAP) proposes €2.20 per share dividend; last year dividend was €2.05 per share.
- Suncor Energy (SU) Quarterly dividend per share increased by approximately 5% to CAD0.545 per share.
- Thermo Fisher (TMO) increases quarterly dividend 11% to $0.39 per share from $0.35 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +62 , Dow Jones +144 , NASDAQ +359, and Russell 2000 +9. (as of 8:00 a.m. EST). Asia and Europe are higher this morning. VIX Futures are a 14.78 from 15.45 yesterday morning. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are lower along with Natural Gas. US 10-year Treasury sees its yield at 4.311% from 4.264% yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $51,639 from $51,225 higher by +1.22% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Energy, Utilities, Consumer Cyclical, Real Estate of note.
- Daily Negative Sectors: Technology of note.
- One Month Winners: Technology, Financial, and Industrials of note.
- Three Month Winners: Technology, Healthcare, Financial of note.
- Six Month Winners: Technology, Communication Services, and Financial of note.
- Twelve Month Winners: Technology, Communication Services, and Consumer Cyclical of note.
- Year to Date Winners: Technology, Healthcare, Communication Services of note.
The Nasdaq Composite pulled back Wednesday, dropping for a third consecutive trading session, ahead of a highly anticipated earnings report from chip giant Nvidia (NVDA). The tech-heavy index fell 0.3%. The S&P 500 rallied late in the session to close up 0.1%. The Dow Jones Industrial Average also managed a gain of about 48 points, or 0.1%. All three indexes are up for the month and year, with the S&P 500 up 4.4% in 2024. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close:
- Friday Before the Open:
Earnings of Note This Morning:
- Beats: LNG +3.07, MRNA +1.48, FCN +0.61, CQP +0.54, TECK +0.41, BLDR +0.38, LNTH +0.31, MGPI +0.28, CWEN +0.26, HEES +0.25, TRN +0.18, HNI +0.16, ITCI +0.15, KYMR +0.15, BHC +0.13, TFX +0.12, NICE +0.10, FVRR +0.10, STWD +0.09, LKQ +0.08, NVCR +0.07, ENOV +0.06, IRM +0.06, NEM +0.06, PWR +0.05, BIGC +0.05, UPBD +0.04, OPCH +0.03, POOL +0.03, W +0.03, GRAB +0.03, NABL +0.03, FTI +0.02, IMOS +0.02, PLNT +0.02, HLMN +0.02, RYTM +0.01, KDP +0.01, SHYF +0.01, PCG +0.01 of note.
- Flat: DRVN +0.00, ETR +0.00, BRC +0.00 of note.
- Misses: TNK (0.51), KRTX (0.36), CARS (0.29), HRMY (0.22), D (0.09), BBIO (0.09), THRY (0.08), PRMW (0.05), XPEL (0.05), AMBP (0.03), NTLA (0.01), AHH (0.01) of note.
- Still to Report: MFA, NMRK, PXD, SMP, TNC of note.
Company Earnings Guidance:
- Positive Guidance: SNPS, DOCN, ACVA, RELY, OLO, HQY, NVDA, LUNG, HST, RCL, NICE, NABL, LNTH, BHC, HLMN, THRY, XPEL of note.
- Negative Guidance: GSHD, VMEO, BROS, TBI, MCW, VMI, CCRN, ORA, QTWO, NDSN, FVRR, ENOV, GRAB, PRMW, PLNT, DRVN, NABL, POOL, BIGC, THRY of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: RELY 21%, ACVA 17%, NVDA 14%, SMCI 14%, DOCN 14%, OLO 13%, CNNE 12%, ERF 11%, OUT 11%, TS 11%, TCOM 7%, WES 7%, NVRO 7%, BROS 7%, BALY 7%, NGVT 7%, NICE 7%, GLSI 6%, VAC 6%, OGS 6%, NVAX 5%, SNPS 5%, RCL 5%, PEB 5%, KALU 5%, ENOV 5%, CENX 4%, VMEO 4%, MOS 4% of note.
- Gap Down: RIVN -15%, GSHD -11%, ETSY -10%, LCID -8%, FIVN -7%, RUN -6%, GRAB -6%, TBI -5%, NOMD -5%, ORA -5%, KTOS -5%, MCW -5%, CCRN -5%, JXN -5%, ATHE -4%, NOVA -4%, GSM -4% of note.
Insider Action: sees Insider buying with dumb short selling. No stock 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.
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things To Know Before the Stock Market Opens Today. (CNBC)
- Bloomberg Lead Story: Japan’s Nikkei Retakes It’s 1999 Peak. (Bloomberg)
- Bloomberg Third Most Shared Story: Rivian plans to cut 10% of salaried staff as EV momentum stalls. (Bloomberg)
- NASDAQ Futures up 2% as Nvidia power global rally: Markets Wrap. (Bloomberg)
- What will Warren Buffet do with $150 billion of cash? (WSJ)
- Moderna (MRNA) posts a quarterly profit despite Covid sales plummeting. (CNBC)
- Bloomberg: Odd Lots: A long time Aerospace analyst questions Boeing’s future? (Podcast)
- NY Times Daily: Putin’s Opposition faces a future without Navalny. (Podcast)
- Marketplace: When cell phones fail, land lines are still a life line. (Podcast)
- Wealthion: Why the Fed’s plan may not land softly. (Podcast)
Moving Average Update: Score is at 62%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 12:00 p.m. EST
- The President departs San Francisco, California en route to Los Altos Hills, California, 3:30 p.m. EST
- The President arrives in Mountain View, California, 3:45 p.m. EST
- The President participates in a campaign reception, 5:45 p.m. EST
- The President departs San Francisco, California en route Joint Base Andrews, 7:10 p.m. EST
- The President departs Joint Base Andrews en route to the White House, 11:50 p.m. EST
Economic:
- Jobless Claims 8:30 a.m. EST
- Chicago Fed Activity Index 8:30 a.m. EST
- February S&P Global US Manufacturing PMI is due out at 9:45 a.m. EST and came in last month at 50.70.
- February S&P Global Services PMI is due out at 9:45 a.m. EST and came in last month at 52.50.
- January Existing Home Sales is due out at 10:00 a.m. EST and is expected to drop to 3.97 million from 3.99 million.
- EIA Natural Gas Report 10:30 a.m. EST
- EIA Petroleum Report 11:00 a.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve Board of Governors Philip N. Jefferson 10:00 a.m. EST
- Federal Reserve Philadelphia President Patrick Harker 3:15 p.m. EST
- Federal Reserve Board of Governors Lisa D. Cook 5:00 p.m. EST
- Federal Reserve Minneapolis President Neel Kashkari 5:00 p.m. EST
- Federal Reserve Board of Governors Christopher Waller 7:35 p.m. EST
M&A Activity and News:
- Chord Energy (CHRD) and Enerplus (ERF) to combine in $11.0 billion transaction.
Meeting & Conferences of Note:
- Sellside Conferences:
- Gabelli Funds Pump Valve & Water Symposium
- Goldman Sachs European Technology Conference
- Singular Research’s Emerging Growth & Value Alpha Leaders
- Previously posted and ongoing conferences:
- Barclays Industrials Select Conference
- BAC Financial Services Conference
- Citi Oncology Leadership Summit
- Citi Global Industrial Tech and Mobility Conference
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: ARRW BURU BVN CELU HZO IIIV PUYI TGH
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AMGN GANX HQY INTA NEM SON
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Industry Meetings:
- Congress of the European Crohn’s and Colitis Organisation (ECCO)
- National Neonatology Meetings
-
- Previously posted and ongoing conferences:
- Aesthetic & Anti-Aging Medicine World Congress (AMWC) Americas
- Consumer Analyst Group of New York (CAGNY) conference
- Previously posted and ongoing conferences:
-
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 is 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:
