Executive Summary: Santa Claus Rally which extends into January in trouble for a second day of weakness in a row. Key economic and Fed data could turn the early action around. Yields are on the rise as 4% is close at hand of becoming support instead of resistance.

• December ISM Manufacturing Index is due out at 10:00 a.m. EST and is expected to rise to 47.10% from 46.7%.
• The latest FOMC Minutes from the December Meeting are due out at 2:00 p.m. EST.

• IPOs Priced or News:
  • KKR-Backed BrightSpring Is First to File in 2024 for Big IPO. (Bloomberg)
  • Smith Douglas Homes Corp (SDHC) announced the launch of the IPO of 7,692,308 shares of its Class A common stock; offering price is currently expected to be between $18.00 and $21.00 per share.
• New SPACs launched/News:
  • Noventiq and Corner Growth Acquisition Corp. (COOL) File Form F-4 Ahead of Proposed Nasdaq Listing.
• Secondaries Priced:
  • ARWR: Prices offering of 15.79 mln shares of common stock at $28.50 per share.
• Notes Priced of note:
  • WMB: Prices $2.1 Billion of Senior Notes.
• Common Stock filings/Notes:
  • BJDX: Announces Closing of $3.5 Million Public Offering.
  • GOVX: Filed Form S-1..21,134,968 Shares of Common Stock.
  • LBPH: Announces commencement of $150 million public offering of common stock. (Cantor and Citi bookmanagers)
  • MHUA: Announces Closing of Initial $6 Million Tranche of Potential $50.5 Million Maximum Offering.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • CIVI: Filed Form S-3ASR.. 7,181,527 Shares of Common Stock by selling shareholder.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • SLNO: Files mixed shelf securities offering.
• Debt/Credit Filing and Notes:
  • ENS: Announces Proposed Offering of Senior Notes.
  • FUBO: Closes Exchange of $205.8 Million Existing 3.25% Convertible Senior Notes Due 2026 for Convertible Senior Secured Notes Due 2029.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • AMC: Discloses that it entered into a series of privately negotiated exchange agreements.
  • NIO: Announces repurchase right notification for 0.00% convertible Senior Notes due 2026.

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: 
  • SASI: +58% Patent talk on name earlier
  • FWBI: +47% Price target Raised at Roth
  • LBPH: +5% Commencement of Offering
  • ASTS: +5% Provides Interim Update on Fundraising
  • DYN: +3.5% to Host Virtual Event Tomorrow, January 3 at 8:00 AM ET, to Present Initial Clinical Data from ACHIEVE and DELIVER Trials
  • SOFI: -2.7% Downgraded to Underperform @ Keefe
• News Items After the Close:
  • US government debt reaches $34 trillion.
  • Fisher Investments in Sale Talks: Advent International in talks to acquire money manager founded by Ken Fisher. (WSJ)

• Exchange/Listing/Company Reorg and Personnel News:
  • Index Changes:
    • Patterson Companies (PDCO) to replace Chico’s (CHS) in S&P 600 at open on 1/5
    • Pure Storage (PSTG) to replace Patterson Companies (PDCO) in S&P 400 at open on 1/5.
  • AutoZone (AZO) Announces Completion of Leadership Transition Plan.
  • Dutch Bros (BROS) appointed Christine Barone as CEO on January 1; served as President since February 2023.
  • Eldorado Gold (EGO) appoints Paul Ferneyhough as EVP and CFO.
  • Entrada Therapeutics (TRDA) announced that Nathan Dowden, current Chief Operating Officer of Entrada Therapeutics, has been promoted to President and Chief Operating Officer.
  • Hepsiburada (HEPS) announces that M. Seçkin Köseoğlu has officially taken on the role of its CFO.
  • Herbalife Nutrition (HLF) appointed Chief Strategy Officer, Stephan Gratziani, to President.
  • PARTS iD (ID) Announces Delisting from NYSE American.
• Buyback Announcements or News: None of note.
• Stock Splits or News:
  • SAB Biotherapeutics (SABS) Announces 1-for-10 Reverse Stock Split.
  • TENX 1/80 reverse split.
  • PRSO 1/40 reverse split.
• Dividends Announcements or News:
  • Alamo Group (ALG) increases quarterly cash dividend to $0.26 per share from $0.22 per share.
  • Bank OZK (OZK) increases its quarterly dividend by 2.7% to $0.38/share; 3.1% annual yield.
• Insider Sales Of Note: None of note.

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: Healthcare, Utilities, Consumer Defensive, Real Estate, Energy of note.
• Daily Negative Sectors: Technology, Consumer Cyclical, Industrial, Communication Services, Basic Materials of note.
• One Month Winners: Real Estate, Industrials, and Basic Materials of note.
• Three Month Winners: Technology, Real Estate, and Industrials of note.
• Six Month Winners: Communication Services, Financial, Technology, and Consumer Cyclical of note.
• Twelve Month Winners: Technology, Communication Services, Consumer Cyclicals and Industrials of note.
• Year to Date Winners:  Technology, Communication Services, and Consumer Cyclical of note.

Tumbling technology stocks cast a pall over a trading day in which the Dow Jones Industrial Average ended at a new all-time high, showing how much sway a few giant technology firms have over the broader market. The tech-heavy Nasdaq Composite Index declined 1.6%, dragged down by the same big names, including Apple and Nvidia, that propelled it 43% higher last year.  A good day for energy, healthcare, utilities and consumer-staples stocks couldn’t offset the pull from technology and telecom shares in the S&P 500, which shed 0.6%. The Dow Jones Industrial Average, which has risen for nine consecutive weeks, eked out a 0.07% gain, or 25.5 points, to close at a record 37715.04.  Rising bond yields contributed to the selloff in tech stocks. The yield on the benchmark 10-year U.S. Treasury note ended Tuesday at 3.944%, up from 3.860% on Friday. Yields rise as prices fall.   (WSJ – edited by QPI)

Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Gap Up: DYN +101%, AGIO +57%, TDCX +30%, FEAM +12%, ASTS +8%, ALVO +5%, GLYC +5%, PGTI +4%, BLMN +4%, PSTG +4% of note.
• Gap Down: CMPS -6%, ODP -5% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers.

FPAY, ZIVO, ASA, TTSH, GSAT

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

• Stocks making the biggest moves premarket: COIN, SOFI, SCHW, BLMN, MARA, PGTI, DIS, AAPL (CNBC)
• What You Need To Know To Start Your Day. (Bloomberg)
• 5 Things To Know Before the Stock Market Opens on Wednesday. (CNBC)
• Bloomberg Lead Story: 10 Year Yield Eyes 4% Ahead of U.S. Economic Data. (Bloomberg)
• Bloomberg Second Most Shared Story: Harvard’s Gay quits as president of the university over plagiarism and antisemitism issues.  (Bloomberg)
• Bonds, Stocks extend drop in front of U.S. economic data: Market Wrap (Bloomberg)
• Bloomberg Odd Lots: The Top Ten Things learned in Odd Lots in 2023. (Podcast)
• Mortgage Demand drops 0.4% the last week of 2023 despite rates lower. (CNBC)
• NPR Marketplace:  China set to dominate the EV market globally. (Podcast)
• NY Times Daily: Biden’s 2024 Playbook – stay in the basement. (Podcast)
• BBC Global News Daily Podcast: Hamas deputy leader killed in Beirut blast. (Podcast)
• Wealthion:  Ringing in 2024, prediction for the year. (Podcast)

Moving Average Update:  No update today.  Will return tomorrow!

Geopolitical: 

M&A Activity and News: 

• Bruker (BRKR) has acquired Nion.
• Franklin Electric’s (FELE) Headwater Companies acquires U.S. Groundwater Distribution Company.
• KKR closes on previously-announced transaction in which KKR is acquiring remaining 37% of Global Atlantic, increasing KKR’s ownership to 100%.

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: