Overnight Summary: The S&P 500 closed Tuesday lower by -0.40% at 3824.14 from Friday lower by -0.25% at 3839.50. The overnight high of 3866.25 was hit at 3:30 a.m. EST. The low was hit at 3838 at 4:05 p.m. EST, a range of ~28 points high to low. At 7:10 a.m. EST, the S&P 500 (mini) was +13.75.
Earnings Out After The Close:
- Beats: SGH +0.22.
- Flat: None of note.
- Misses: None 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.
- IPOs Priced or News:
- Skyward Specialty (SKWD) Announces Launch of Initial Public Offering, 4.75 mln share IPO, expected to price between $14-$16 per share.
- New SPACs launched/News:
- Deep Lake Capital Acquisition (DLCA) will redeem all shares, co will not consummate an initial business combination within the time period required.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- DCGO: Filed Form 424B3.. Up to 17,778,588 Shares of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- HOTH: Announces Closing of $10 Million Private Placement Priced At-the-Market Under Nasdaq Rules.
- Mixed Shelf Offerings:
- CING: Filed Form S-3 $100 Million Mixed Shelf.
- IMMX: Filed Form S-3.. $250,000,000. Mixed Shelf.
- KIM: Files mixed securities shelf offering.
- Debt Filing/Notes:
- NVGS: Announces Repayment of NOK 600 Million Senior Secured Bond.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed: None of note.
Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
News After The Close:
- News Since The Close:
- Southwest Airlines (LUV) Offers 25,000 Points to Passengers Hit by Travel Meltdown. (WSJ)
- Rivian Automotive (RIVN) produced 10,020 vehicles and delivered 8,054 vehicles during Q4.
- Pegasystems (PEGA) announces 4% workforce reduction across various geographies.
- Exchange/Listing/Company Reorg and Personnel News:
- Allscripts Healthcare (MDRX) changed its name to Veradigm.
- American Axle (AXL) appointed Christopher J May to CFO role.
- Brookline Bancorp (BRKL) completes acquisition of PCSB Financial Corp (PCSB); Michael P. Goldrick takes role of President and CEO.
- BrainStorm Cell Therapeutics (BCLI) Announces Promotion of Dr. Stacy Lindborg to Co-Chief Executive Officer.
- Fulcrum Therapeutics (FULC) Announces CEO Transition.
- HE appoints Paul Ito as Chief Financial Officer.
- Kaltura (KLTR) approved a re-organization plan that includes downsizing ~11% of the current workforce.
- NGL Energy Partners LP (NGL) Announces Appointment of New Chief Financial Officer.
- Onion Global (OG) shares to be delisted from NYSE, to trade on OTC.
- Petrobras (PBR) discloses that Jean-Paul Terra Prates will be nominated for the position of CEO and member of the Board of Directors of Petrobras.
- Salesforce Inc. (CRM) – On January 4, 2023, Announced A Restructuring Plan salesforce Inc – Estimates That It Will Incur Approximately $1.4 billion To $2.1 billion In Charges In Connection With Plan. Plan includes a reduction of current workforce by about 10%.
- Tuya Inc. (TUYA) Regains Compliance with NYSE Continued Listing Standard for Average Closing Price.
- Wash. Federal (WAFD) CEO Brent Beardall to take temporary leave of absence while recovering from injuries sustained during a small plane crash.
- XOMA: Announces Jim Neal has retired as Chief Executive Officer; Owen Hughes appointed Executive Chairman of the Board of Directors and Brad Sitko joins as Chief Investment Officer.
- Buyback Announcements or News:
- Global Indemnity Group, LLC (GBLI) Announces Additional Share Buyback Authorization.
- Stock Splits or News:
- OBLG trading r/s price.
- TENX 1-for-20 reverse split.
- Dividends Announcements or News:
- Alamo Group (ALG) increases quarterly dividend $0.04 to $0.22 per share.
- Bank OZK (OZK) increases its quarterly dividend to $0.34, a 3% raise.
- BMY Goes ex div tomorrow for $0.57.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +9, Dow Jones +62, NASDAQ +51, and Russell 2000 +7. (as of 7:59 a.m. EST). Asian markets are higher ex the Nikkei. Europe markets are trading higher. VIX Futures are at 23 unchanged from yesterday. Gold and Silver higher and Copper lower. WTI Crude Oil and Brent are lower with Natural Gas higher as well. $ barely down. US 10-year Treasury sees yields at 3.679% from 3.776% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $16,827 from $16,707 yesterday higher by 1.04%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Communication Services, Industrials, Real Estate, Financial of note.
- Daily Negative Sectors: Energy, Technology, Utilities of note.
- One Month Winners: none of note.
- Three Month Winners: Basic Materials, Industrials, and Energy of note.
- Six Month Winners: Industrials, Energy, and Basic Materials of note.
- Twelve Month Winners: Energy of note.
- Year to Date Winners: Energy of note.
U.S. stocks finished lower Tuesday, booking losses on the first trading session of 2023 after wrapping up the worst year since 2008. The Dow Jones Industrial Average ended down less than 0.1%, while the S&P 500 fell 0.4% and the technology-heavy Nasdaq Composite slid 0.8%. (MarketWatch)
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Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Wednesday After the Close: SLP, RGP, RELL of note.
- Thursday Before the Open: STZ, WBA, CAG, LW, RPM, MSM, NEOG, HELE, LNN, SCHN, ANGO, BBBY of note.
Earnings of Note This Morning:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- Still to Report: UNF.
- Positive Guidance: ACMR, PERI of note.
- Negative Guidance: None of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: GERN +17%, SGH +8%, PERI +6%, NGL +5%, QIPT +5%, GEHC +4%, TERN +4% of note.
- Gap Down: VERA -63%, PHAT -21%, RGR -4% of note.
Insider Action: KMX 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.
- Stocks making the biggest moves premarket: GE CRM MSFT GLW TGT MRK PFE JBHT AZN HON TSLA (CNBC)
- 5 things to know before the stock market opens Wenesday. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Salesforce (CRM) to cut 10% of its workforce as customers pull back. (Bloomberg)
- Bloomberg Most Read Story: Rep Kevin McCarthy loses the third round of voting for Speaker of the House. (Bloomberg)
- Fed Minutes are due out at 2:00 p.m. EST and here is a preview. (Bloomberg)
- Speaker Vote shows fracture within the GOP. (WSJ)
- Mortgage Demand drops 13% as rates climb into year-end. (CNBC)
- Natural Gas plunges on warm winter weather. (WSJ)
- Santa Claus Rally remains elusive. (WSJ)
- General Electric (GE) divides today into two companies with the spinoff of GE Healthcare Technologies (GEHC).
Moving Average Update:
- Score declines to 20% from 37% in the initial trading day of 2023.
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 8:00 a.m. EST
- The President departs the White House en route Joint Base Andrews, 9:40 a.m. EST
- The President departs Joint Base Andrews en route Hebron, Kentucky, 10:00 a.m. EST
- The President arrives in Hebron, Kentucky, 11:25 a.m. EST
- The President delivers remarks on how his economic plan is rebuilding our infrastructure, creating good-paying jobs that don’t require a four-year degree, and revitalizing communities left behind, 12:45 p.m. EST
- The President departs Hebron, Kentucky en route Joint Base Andrews, 3:05 p.m. EST
- The President arrives at Joint Base Andrews, 4:20 p.m. EST
- The President arrives at the White House, 4:40 p.m. EST
- MBA Mortgage Applications 7:00 a.m. EST
- U.S MBA Mortgage Applications (Wow) Actual: -10.3% Vs 0.9% Previous
- MBA Mortgage Applications: Composite: -10.3%, Purchase: -12%, ReFi: -4.4%
- Redbook Sales 8:55 a.m. EST
- December ISM Manufacturing Index is due out at 10:00 a.m. EST and is expected to come in at 48.5% from 49%.
- JOLTS 10:00 a.m. EST
- FOMC Minutes 2:00 p.m. EST
- API Crude Oil Data 4:30 p.m. EST
Federal Reserve / Treasury Speakers: None of note.
- Accenture (ACN) has completed its acquisition of Inspirage
- Braskem SA (BAK) announces the acquisition of taulman3D.
- Certara (CERT) has acquired Vyasa Analytics.
- L3Harris (LHX) closes previously announced acquisition of Viasat’s Link 16 for approximately $1.96 billion.
- Progress (PRGS) Announces Plans to Acquire MarkLogic.
- Quipt Home Medical (QIPT) acquires Great Elm Healthcare.
- Sterling Check Corp. (STER) has acquired Socrates Ltd.
Meeting & Conferences of Note:
- Sellside Conferences:
- Morgan Stanley China Opportunity Conference (01/04/23-01/06/23)
- Credit Suisse 9th Greater China Technology and Internet Conference 2023 (01/04/23-01/06/23)
- Evercore ISI ‘Off To A Running Start’ (Virtual) Bus Tour
- JP Morgan ASEAN Financial 1×1 Forum 2023
- Previously posted and ongoing conferences:
- Citi Communications, Media and Entertainment Conference 2023 (01/03/23-01/05/23)
- Daiwa PURE Energy and Healthcare Conference
- Company Meetings: NUWE, PHIO.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: GERN, LAZR.
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- AMD Keynote Address at CES 2023
- Industry Meetings:
- Consumer Electronics Show (CES) 2023 (01/04/23-01/08/23)
- Previously posted and ongoing conferences:
- BIO Partnering Conference
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: