Executive Summary: The first week of the year is history and it was a losing week across the board. Markets will focus on inflation data due out on CPI and PPI at the end of the week.

• Federal Reserve Atlanta President Raphael Bostic 12:00 p.m. EST
• Consumer Credit 3:00 p.m. EST

• IPOs Priced or News: None of note.
• New SPACs launched/News:
  • 10X Capital Venture Acquisition Corp. III (VCXB) expects David Weisburd, the current COO and Head of Origination, to succeed Hans Thomas as CEO of 10X III, and expects Osman Ahmed to succeed Oliver Wriedt as President. Mr. Thomas will remain as Chairman.
• Secondaries Priced: None of note.
• Notes Priced of note:
  • NMRK: Announces Pricing Of $600 Million of 7.500% Senior Notes.
• Common Stock filings/Notes:
  • CNM: Announces secondary offering and share repurchase.
  • MDAI: Form S-1 Filed.. 3,249,360 Shares of Common Stock.
  • OLMA: Enters into a $150 million ATM agreement.
  • RBT: Filed Form S-3.. 7,420,366 Shares of Class A Common Stock.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • ASLE: Files for 9,545,554 shares of common stock by selling shareholders.
• Private Placement of Public Entity (PIPE):
  • ARBK: Announces £7.8 million ($9.9 million) Placing.
  • RLAY: Announces $30 Million Private Placement Financing.
  • SLDB: $109M Private Placement. SRPT 16.98M shares at $5.53/share. Perceptive Advisors, Adage Capital, Deerfield, Invus, Janus Henderson Investors, Bain Capital, RA Capital.
• Mixed Shelf Offerings:
  • CLSK: Files mixed shelf securities offering.
  • GTY: Files mixed shelf securities offering.
• Debt/Credit Filing and Notes:
  • BFH: Announces Private Offering of Additional 9.750% Senior Notes Due 2029.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • AULT: Announces Postponement of Commencement of Exchange Offer of Common Stock for Series D Preferred Shares.
  • GES: Announces issuance of Approximately $64.8 million of ~3.75% convertible notes due 2028 and retirement of ~$67.1 million of existing 2.00% convertible notes due 2024.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Weekend:

• Weekly Wrap Up: Best and Worst performing large cap stocks:
  • Trading Up: EBIX 181.7%, ENTA 28.0%, GLYC 27.1%, AKBA 22.6%, SBNY 21.8%, ABEO 15.0%, ARWR 12.8%, BPT 12.6%, SEM 11.3%, PRTA 11.1%, SQQQ 10.3%, MRNA 9.3%, KNSA 9.0%, KURA 8.7%, IRWD 8.5%, LAZ 7.9%.
  • Trading Down: ESPR -22.9%, CORT -22.0%, AVNS -19.9%, SATS -18.5%, SPWR -16.2%, SUPV -15.5%, INSP -14.9%, TPIC -13.8%, DERM -13.7%, PRO -13.6%, RUN -13.1%, CPS -13.0%, HLF -12.8%.
• News Items After the Close:
  • Bitcoin ETF Issuers Clear Major Hurdle on Path to SEC Approval. (Bloomberg)
  • Microsoft (MSFT) Picks Dee Templeton as OpenAI Board Observer. (Bloomberg)
  • Coinbase (COIN) is planning a pivotal acquisition that will allow it to launch crypto derivatives in the EU. (CNBC)
  • AbbVie (ABBV) discloses in filing that Q4 earnings expected to include acquired IPR&D and milestones expense of $282 million on a pre-tax basis, negatively impacting GAAP and non-GAAP EPS by $0.15.
  • Parsons (PSN) awarded a $21 million task order by the National Nuclear Security Administration (NNSA) Office of Infrastructure.
• News Items Over the Weekend:
  • Notable comments from Federal Reserve Dallas President Lorie Logan this a.m. on QT: She says they should slow Treasury runoff as overnight reverse repo balances approach “a low level.” (That’s something analysts say could occur by midyear) Slowing QT reduces “the likelihood that we’d have to stop prematurely.” (TIMIRAOS WSJ)
  • The Crypto Industry Holds Its Breath in Anticipation of the First Spot Bitcoin ETFs. (WSJ)
  • The Stock Rally Has Stalled. Now Comes Earnings Season. (WSJ)
  • BlackRock (BLK) plans to lay off 600 employees. (Fox Business)
  • Alaska Airlines (ALK) plane makes emergency landing in Portland, Oregon after window blows out in mid-air. Several items, including phones, were sucked out of the plane when it suddenly depressurized. Everyone is safe. (BNO)
    • I’ve been briefed on last night’s incident and remain in close contact with FAA on the response. Grateful to the flight crew that kept passengers safe during this terrifying incident. FAA is supporting the NTSB’s investigation and will take all appropriate steps going forward. (BUTTIGIEG Tweet on last night airline incident)
    • FAA ordered the temporary grounding of certain Boeing (BA) 737 MAX 9 aircraft operated by U.S. airlines or in U.S. territory.
    • Spirit Aero (SPR) made the blowout part but Boeing (BA) has key role. (Reuters)
  •  Barron’s:
    • Positive View: AEP, ETN, EIX, HUBB, HEE, PWR, STRL, MDT, CMCSA, IAC, IBKR, ANF, DIS, BYON, GS, WBS, KEY, VZ, TFC of note.
    • Cautious View: None of note.
    • Mixed View: None of note.

• Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

• Exchange/Listing/Company Reorg and Personnel News:
  • CN Energy Group. Inc. (CNEY) Announces Nasdaq Delisting Notification and Intends to Appeal.
  • Compugen (CGEN) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
  • ECARX (ECX) Announces Board Changes.
  • Exact Sciences (EXAS) announces CFO succession plan.
  • Lumen (LUMN) Names Ashley Haynes-Gaspar Chief Revenue Officer.
  • LumiraDx (LMDX) Announces its Securities will be Suspended from Trading on Nasdaq at the Open of Business on January 9th.
  • Mid Penn Bancorp (MPB) CFO Allison S. Johnson left the company.
  • PMV Pharmaceuticals (PMVP) promotes Michael Carulli to CFO.
  • ReTo (RETO) Receives Nasdaq Notification Regarding Minimum Stockholders’ Equity Deficiency.
  • Solo Brands (DTC) appoints Christopher Metz as President and CEO.
  • Trinity Capital (TRIN) names Michael Testa as CFO, effective immediately; succeeds David Lund, who will remain on the team as a consultant.
  • VinFast Auto (VFS) announces leadership transitions; Madame Le Thi Thu Thuy will transition from her current role as CEO to assume the position of Chairwoman.
  • Wrap Technologies (WRAP) terminates CFO Chris DeAlmeida.
  • XOMA named Owen Hughes as Chief Executive Officer and Jack L. Wyszomierski as Chairman of the Board
• Buyback Announcements or News: 
  • Comstock (LODE) Acquires and Retires Over 2.6 Million Common Shares.
  • Core & Main (CNM) see Secondary Offering of Common stock.
  • Millicom (TIGO) share repurchase activity.
  • Qiagen (QGEN) announces plans to return ~$300 million to shareholders.  Mix of buyback and reverse stock split.
  • So-Young (SY) Announces Update on Repurchase and Cancellation of Shares.
• Stock Splits or News:
  • ONCT 1/20, EIGR 1/30: reverse split stocks for today.
  • EFSH trading reverse split price.
• Dividends Announcements or News: 
  • Enterprise Products (EPD) increases quarterly cash distribution to $0.515 per share from $0.50 per share.
  • Jiayin Group Inc. (JFIN) Announces Cash Dividend.
• 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: Financial, Utilities, Energy, Consumer Cyclical of note.
• Daily Negative Sectors: Consumer Defensive, Real Estate of note.
• One Month Winners: Healthcare, Financial, Real Estate, Industrials, and Basic Materials of note.
• Three Month Winners: Technology, Real Estate, Utilities, and Financial Industrials of note.
• Six Month Winners: Financial, Communication Services, and Energy Technology, Consumer Cyclical of note.
• Twelve Month Winners: Technology, Communication Services, Consumer Cyclicals and Industrials of note.
• Year to Date Winners:  Healthcare, Utilities, and Energy of note.

The S&P 500 ended Friday modestly higher, but all three of the major averages snapped a nine-week winning streak following a stronger-than-expected jobs report on Friday.  The broader index rose 0.18% to end at 4,697.24, while the Nasdaq Composite added 0.09% to finish at 14,524.07. The Dow Jones Industrial Average ticked higher by 25.77 points, or 0.07%, settling at 37,466.11.  The three major averages notched their first negative week in 10, with the Nasdaq suffering the biggest decline at 3.25% — its worst weekly performance since September. The S&P 500 and Dow dropped 1.52% and 0.59%, respectively.  (CNBC – edited by QPI)

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

• Gap Up: ANNX +9%, AKYA +8%, MOLN +6%, LGND +6%, LYRA +4%, BOOT +4% of note.
• Gap Down: BA -8%, PRME -5% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  KALV 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 on Monday. (CNBC)
• Bloomberg Lead Story: Key Piece of Boeing 737 Max Found in Hunt For Clues on Plane Blowout. (Bloomberg)
• Bloomberg  Most Shared Story:  U.S. Animal Shelters in “crisis” from surge of unwanted dogs. (Bloomberg)
• Stocks resume drop after choppy week: Market Wrap. (Bloomberg)
• Moderna (MRNA) sees Covid Vaccine sales drop by 67% in 2023 but meet target of $6 billion. (CNBC)
• Merck (MRK) in advanced talks to buy Harpoon Therapeutics (HARP) for $23 a share. (Bloomberg)
• AI gadgets to take over CES. (Bloomberg)
• Lululemon Athletica (LULU) raises outlook on strong year-end sales. (Bloomberg)
• Bloomberg Odd Lots: The impact of billions flowing into private credit. (Podcast)
• NPR Marketplace:  Women hold just 1/3 of clean energy jobs. (Podcast)
• NY Times Daily: The Wild World of Money in College Football. (Podcast)
• BBC Global News Daily Podcast: U.S. grounds Boeing 737 planes after mid-air emergency. (Podcast)
• Wealthion: Worst Crash of our lifetime ahead? (Podcast)

Moving Average Update:  Score remains at 42%.

Geopolitical: 

M&A Activity and News: 

• Under the terms of the transaction, which was approved by the Johnson & Johnson (JNJ) Board of Directors, Johnson & Johnson (the Company) will acquire all of the outstanding shares of Ambrx’s (AMAM) common stock for $28.00 per share in cash through a merger of Ambrx with a subsidiary of the Company
• Merck (MRK) and Harpoon Therapeutics (HARP) have entered into a definitive agreement under which Merck, through a subsidiary, will acquire Harpoon for $23.00 per share in cash for an approximate total equity value of $680 million.
• Sony Is Planning To Call Off $10 Billion Merger With India’s Zee. (Bloomberg)
• Boston Scientific (BSX) to buy Axonics (AXNX) for $3.7 billion. (Bloomberg)

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: