Overnight Summary: The SP 500 closed Monday lower by -0.60% at 5243.77 from Thursday higher by 0.11% at 5254.35. Markets were closed on Friday. The overnight high was hit at 5,295.50 at the open while the overnight low was hit at 5276.75 at 7:23 a.m. EDT. The range overnight is 18 points as of 7:45 a.m. EDT. Currently, the S&P 500 is lower by 16 points 7:36 a.m. EDT.
- February Factory Orders are due out at 10:00 a.m. EDT and are expected to improve to 1.0% from -3.60%.
- Federal Reserve Board of Governors Michelle Bowman 10:10 a.m. EDT
- Federal Reserve New York President John Williams 12:00 p.m. EDT
- Federal Reserve Cleveland President Loretta Mester 12:05 p.m. EDT
- Federal Reserve San Francisco President Mary Daly 1:30 p.m. EDT
- Beats: PVH +0.19 of note.
- Flat: None of note.
- Misses: None of note.
Capital Raises:
- IPOs Priced or News:
- Rubrik (RBRK) Files Registration Statement for Proposed Initial Public Offering.
- U-BX Technology Ltd. (UBXG) Announces Closing of $10 Million Initial Public Offering.
- UL Solutions Inc. (ULS) announces launch of 28.0 mln share IPO with an expected price range of $26-$29 per share; shares to trade under ticker “ULS” on the NYSE.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- GRTS: Prices $32.5 million offering.
- STRO: Prices an underwritten offering of 14,478,764 shares of its common stock at a price of $5.18 per share.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- GRTS: Announces proposed public offering of common stock.
- QBTS: Filed Form S-3.. 60,159,214 Common Shares – Up to 35,000,000 Common Shares
- Direct Offering:
- RDHL: Announces $1.25 Million Registered Direct Offering at a Premium to Market Price.
- SNDA: Entered into $75 million At-The-Market Issuance Sales Agreement.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- APAC: Filed Form F-1.. Up to 22,825,115 Ordinary Shares Up to 7,700,000 Private Warrants.
- Mixed Shelf Offerings:
- ACR: Files $700 million mixed shelf securities offering; also files for 671,110 shares of common stock by selling shareholder.
- APLM: Filed Form F-3.. $200,000,000 Mixed Shelf.
- DHR: Files mixed shelf securities offering.
- ICCC: Filed Form S-3.. $20,000,000 Mixed Shelf.
- VNO: Files mixed shelf securities offering.
- Debt/Credit Filing and Notes: None of note.
- Tender Offer:
- AMD Recommends Rejection of “Mini-Tender” Offer from Tutanota LLC.
- MTDR: Announces Expiration and Results of Cash Tender Offer for Any and All of Its Outstanding 5.875% Senior Notes Due 2026.
- Convertible Offering & Notes Filed:
- CPMD: Pays Off Convertible Notes.
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:
- LIFW: +71% SC 13G Filed by Palantir
- PIK: +70% Kidpik and Nina Footwear Announce Entry Into Definitive Merger Agreement
- OPGN: +18% Filed Form SC 13D by DAVID E. LAZAR
- VTSI: +16% Earnings
- ANGO: +7% Settlement of All Patent Litigation with C.R. Bard, Inc.
- GOEV: -31% Earnings
- MVST: -29% Earnings
- PVH: -21% Earnings
- ASTS: -15% Provides Business Update and Fourth Quarter and Full Year 2023 Results
- HUM: -10% CMS finalizes payment update for 2025
- CVS: -6% CMS finalizes payment update for 2025
- UNH: -5% CMS finalizes payment update for 2025
- News Items After the Close:
- Shares of Tommy Hilfiger maker PVH drop as execs warn of ‘tougher macroeconomic backdrop’. (MarketWatch)
- PVH: Revenue: Projected to decrease 6% to 7% (decrease 6% to 7% on a constant currency basis) as compared to 2023, inclusive of a 2% reduction resulting from the sale of the Heritage Brands women’s intimates business in November 2023 and a 1% reduction from the 53rd week in 2023.
- Chipotle (CMG) CFO explains why the chain split its stock for the first time. (CNBC)
- Railroad CSX adding new freight route on Tuesday to avoid Port of Baltimore after bridge collapse. (CNBC)
- Leidos (LDOS) awarded $631 million U.S. Army contract.
- Boeing (BA) secures $116.7M Army contract.
- The U.S. Centers for Medicare & Medicaid Services (CMS) expects payments from the government to the Medicare Advantage program to “INCREASE by an average of 3.7%” (unchanged from the January proposal), amounting to over $16 billion from 2024 to 2025. In 2025, the federal government is projected to pay between $500 billion and $600 billion in program payments to private health plans, according to CMS. However, the final rate notice is somewhat “WEAKER than expected” as it does not appear materially different from the initial rate proposed on January 31.
- Exchange/Listing/Company Reorg and Personnel News:
- Canoo (GOEV) identifies substantial doubt about its ability to continue as a going concern per 10-K filing. (Filing)
- Community West Bancshares (CWBC) files to delay 10-K.
- GE: Vernova(GEV) Completes Spin-Off and Begins Trading on the New York Stock Exchange.
- Genius Sports (GENI) Announces Resignation of a Member of the Board of Directors.
- MSG Sports (MSGS) COO David Hopkinson departed the company, effective today.
- Terran Orbital (LLAP) regains compliance with NYSE continued listing standards.
- Timken (TKR) CEO Richard G. Kyle to retire; Tarak Mehta named successor.
- TRVG: Robin Harries assumes CFO role at trivago.
- Veeva Systems (VEEV) CFO Brent Bowman departing, effective today; Board member Tim Cabral to serve as interim CFO.
- Buyback Announcements or News:
- PVH approves $2 billion increase to its stock repurchase authorization.
- UBS AG (UBS) announces launch of new share repurchase program of up to USD billion.
- Stock Splits or News:
- Gladstone Capital (GLAD) Announces 1-for-2 Reverse Stock Split.
- Reverse Split stocks today AWIN 1/100 XXII 1/16 DCFC 1/200 EMKR 1/10 NRXP 1/10.
- Dividends Announcements or News:
- Bank OZK (OZK) announces $0.01 per share increase to quarterly cash dividend to $0.39 per share.
- UMH Properties (UMH) increases quarterly cash dividend 4.9% to $0.215 per share from $0.205 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Communication Services, Energy of note.
- Daily Negative Sectors: Real Estate, Healthcare, Financial, Industrials, Consumer Defensive, Utilities of note.
- One Month Winners: Energy, Basic Materials
,Utilities of note. - Three Month Winners: Technology, Communication Services, Financials of note.
- Six Month Winners: Technology, Financials, Industrials of note.
- Twelve Month Winners: Technology, Communication Services, and Financial of note.
- Year to Date Winners: Technology, Communication Services, Financials of note.
Stocks fell broadly Monday after new economic data prompted investors to dial back bets on interest-rate cuts this year. Coming off its best first quarter since 2019, the S&P 500 started the trading day modestly in the green. But it reversed course after the latest Institute for Supply Management report suggested manufacturing activity expanded in March for the first time since September 2022. The broad market index finished down 0.2% and the Dow Jones Industrial Average dropped 0.6% after both closed out last week at records. Strength in large technology stocks helped the Nasdaq Composite eke out a 0.1% gain. Investors have been counting on the Federal Reserve to cut interest rates this year to reduce the risk of an economic slowdown. Some have worried at times that strong data could keep the central bank from reducing rates as much as they would like. (WSJ – edited by QPI)
Upcoming Earnings Of Note:
- Tuesday After the Close:
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- Still to Report: PAYX of note.
Company Earnings Guidance:
- Positive Guidance: MEG of note.
- Negative Guidance: PVH of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
- Gap Up: PIK +69%, ANGO +7%, CGC +7%, ACB +4%, RCKT +4% of note.
- Gap Down: ACOR -60%, GRTS -33%, GOEV -24%, PVH -22%, CVS -6%, OCGN -6%, CIFR -5%, ASTS -5%, ELV -4%, UNH -4% of note.
Insider Action: No stock see Insider buying with dumb short selling. No stock see 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 the Stock Market Opens Today. (CNBC)
- What You Need To Know To Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Iran Vows to Punish Israel Over Deadly Syria Embassy Strike (Bloomberg)
- Israeli airstrike in Syria killed several senior Iranian commanders. (NYT)
- Disney (DIS) Winning Proxy Fight Against Trian With More Than Half of Votes Cast. (WSJ)
- The Disarray Inside Boeing’s (BA) 737 Factory Before the Door Plug Blowout. (WSJ)
- Regulator Probes BlackRock (BLK) and Vanguard Over Huge Stakes in U.S. Banks. (WSJ)
- Bloomberg: The Big Take: A Million Simulations, One Verdict for US Economy: Debt Danger Ahead (Podcast)
- NYT The Daily: Kids are Missing School at an Alarming Rate (Podcast)
- Marketplace: Ultimately, the joke’s on Gmail rivals (Podcast)
Moving Average Update: Score back up to 100% from 94%.
Geopolitical:
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 10:00 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EDT
Economic:
- Redbook Sales 8:55 a.m. EDT
- February Factory Orders are due out at 10:00 a.m. EDT and are expected to improve to 1.0% from -3.60%.
- JOLTS 10:00 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve Board of Governors Michelle Bowman 10:10 a.m. EDT
- Federal Reserve New York President John Williams 12:00 p.m. EDT
- Federal Reserve Cleveland President Loretta Mester 12:05 p.m. EDT
- Federal Reserve San Francisco President Mary Daly 1:30 p.m. EDT
M&A Activity and News:
- Lincoln Electric (LECO) has acquired RedViking, a privately held automation system integrator with annual revenue of approximately $70 million.
- Kidpik (PIK) and Nina Footwear Announce Entry Into Definitive Merger Agreement.
Meeting & Conferences of Note:
- Sellside Conferences:
- BBI Brazil Investment Forum
- Cantor Virtual Muscular Dystrophy Symposium
- Deutsche Bank Inaugural Healthcare REIT Summit
- J. P. Morgan Retail Round Up
- Raymond James Dividend Growth Conference
- RBC Capital Markets’ Global Engineering Deep Dive Series
- Previously posted and ongoing conferences: None of note.
- Top Shareholder Meetings: CIGI
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ADPT, INTC, VNDA, VSH
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Army Materiel Command Modernization Symposium
- Women in Data Science Conference
- World Vaccine Congress.
- Previously posted and ongoing conferences:
- International Conference on Display Technology (ICDT) 2024
- Spinal Cord Injury Investor Symposium
- 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:
