Overnight Summary: The S&P 500 closed Thursday lower by -0.07% at 4780.24 from Wednesday higher by 0.57% at 4783.45. The overnight high was hit at 4821.75 at 4:20 a.m. EST while the overnight low was hit at 4791.50 at 6:50 a.m. EST. The range overnight was 29 points as of 7:30 a.m. EST. The 10-day average of the overnight range is at 21.80 from 19.90. The average for May-December average was 20.87 from 21.43 during May-November. Currently, the S&P 500 is lower by -17.50 points at 7:30 a.m. EST.
Executive Summary: Stocks are lower on weaker bank earnings due to a one time regulatory charge on regional banks. This is really a nonevent. Watch to see how these stocks reaction to their conference calls. We note that the second inflation number is out shortly, PPI. As long as the S&P 500 closes above 4697.24 it will be an up week for stocks.
- December PPI is due out at 8:30 a.m. EST and is expected to come in at 0.10% from 0.0%.
- Reminder US Stock Markets are closed Monday Jan 15th MLK Holiday.
Earnings Out After The Close:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News:
- Silynxcom Ltd. (SYNX) Announces Pricing of Initial Public Offering.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- GNS: Announces Pricing of $8.25 Million Public Offering.
- Notes Priced of note:
- AM: Pricing of Upsized $600 Million Offering of Senior Notes.
- Common Stock filings/Notes:
- DYN: Closing of Public Offering of Common Stock and Full Exercise by Underwriters of Option to Purchase Additional Shares.
- ENVB: Form S-3.. 2,244,000 Shares of Common Stock.
- IDYA: Sold an aggregate of 4,553,781 shares for estimated net proceeds of $158.9 million Jan 4-11 under the at-the-market offering pursuant to June 2023 Sales Agreement.
- SVFD: Form S-1 Filed .. 6,666,667 Shares of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings: None of note.
- Debt/Credit Filing and Notes: None of note.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- FRT: Announces Closing of Offering of 3.25% Exchangeable Senior Notes due 2029.
- LAES: Closing of the Second $10.0 Million Tranche of Convertible Notes and Warrants Private Placement.
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:
- MMAC: +5.5% Proposed SEC Settlement
- LAES: -23% Closing of the Second $10.0 Million Tranche of Convertible Notes and Warrants Private Placement
- News Items After the Close:
- UBS Will Let Some Customers Trade Bitcoin ETFs, Contrary to Rumors: Source. (CoinDesk)
- Morgan Stanley (MS) nears deal to pay less than $500 million to resolve trading probe (Reuters)
- Wyndham Hotels & Resorts (WH) confirms receipt of a second request from the FTC regarding Choice Hotels International’s (CHH) unsolicited proposed acquisition of Wyndham.
- The U.S. military has unleashed a large-scale retaliatory strike against multiple Houthi targets in Yemen following months of attacks by the Iranian-backed militants on commercial shipping in the Red Sea, a U.S. official says.
- Exchange/Listing/Company Reorg and Personnel News:
- Apple (AAPL) nominates Dr. Wanda Austin for election to its Board; announces Al Gore and James Bell will retire from Board.
- BioMarin Pharmaceutical (BMRN) announced that Mr. Jeffrey Ajer would step down as the Company’s Executive Vice President and Chief Commercial Officer.
- biote Corp. (BTMD) named Robert Peterson CFO.
- Carter’s (CRI) President & Chief Operating Officer Brian J. Lynch to retire.
- Group 1 Auto (GPI) appointed Shelley Washburn as Vice President, Marketing and Chief Marketing Officer.
- Intl Flavors (IFF) appoints J. Erik Fyrwald as CEO, succeeding Frank Clyburn, effective February 6.
- Polestar Automotive Holding UK PLC (PSNY) appoints Per Ansgar as CFO; appoints previous CEO of Volkswagen Group China to Board as a new director.
- Qilian International Holding Group (QLI) Receives 180-day Extension from Nasdaq to Meet Minimum Bid Price Rule.
- Tuniu (TOUR) Announces Receipt of Minimum Bid Price Notice from Nasdaq.
- XOMA‘s Interim CEO Owen Hughes named permanent CEO.
- Buyback Announcements or News:
- BlackRock Closed-End Funds have Repurchased approximately $1.3 Billion of Shares since the Share Repurchase Program’s Inception: BGR BDJ BOE BGY BIGZ BCAT ECAT BCX BMEZ BSTZ BST HYT BTZ DSU FRA BGT BKT BLW BIT BFZ MUJ MIY MPA BHV BNY MHN MYN MVF MUC MVT MUI MQY MQT BLE BYM BKN MYD BFK MYI MUE MHD MUA BTT
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- BlackRock (BLK) 2% increase in quarterly cash dividend to $5.10 per share approved by Board of Directors.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -12, Dow Jones -169, NASDAQ -57, and Russell 2000 -3. (as of 7:57 a.m. EST). Asia is lower ex Japan while Europe is higher this morning. VIX Futures are at 14.43 from 14.22 this morning. Gold, Silver and Copper higher this morning for the third day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher. US 10-year Treasury sees its yield at 3.999% from 3.988% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $45,925 from $47,282 lower by -1.29% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology of note.
- Daily Negative Sectors: Utilities, Real Estate, Financial, Basic Materials of note.
- One Month Winners: Healthcare, Financial, and Basic Materials of note.
- Three Month Winners: Real Estate, Utilities, and Financial of note.
- Six Month Winners: Financial, Communication Services, and Energy of note.
- Twelve Month Winners: Technology, Communication Services, Consumer Cyclicals and Industrials of note.
- Year to Date Winners: Healthcare, Utilities, and Energy of note.
Stocks staged an afternoon rally to erase most of their earlier declines Thursday after new data suggested inflation might not be cooling quite as quickly as some investors hoped. The S&P 500 fell roughly 0.1%, after ending Wednesday just 0.3% below its record closing high set just over two years ago. The Dow Jones Industrial Average ticked up around 15 points, or less than 0.1%, while the Nasdaq Composite was essentially flat. All three indexes were still on track to post weekly gains after dropping in the first week of the year. The choppy trading Thursday came after the consumer-price index showed inflation rose more than expected in December. The Labor Department said core prices—a closely watched metric that excludes volatile food and energy prices—rose 3.9% from a year ago. That was just above economists’ forecasts for a 3.8% increase. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
Earnings of Note This Morning:
- Beats: BLK +0.79, BK +0.43, JPM +0.24, DAL +0.12, BAC +0.01 of note.
- Flat: WFC of note.
- Misses: UNH (0.15), C (0.02) of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: BBCP of note.
- Negative Guidance: None of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: None of note.
- Gap Down: XOMA -8% of note.
Insider Action: DYN 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: TSLA, DAL, QCOM, BAC, UNH, WFC, JPM (CNBC)
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things To Know Before the Stock Market Opens on Friday. (CNBC)
- Bloomberg Lead Story: Blackrock (BLK) buys Infrastructure Firm GIP for $12.5 billion in major alternative push. (Bloomberg)
- Bloomberg Most Shared Story: US and UK forces strike Houthis. (Bloomberg)
- Bank of America (BAC) and JP Morgan (JPM) were hit by regulatory charges on regional banks that impact earnings. (CNBC)
- Wells Fargo (WFC) posts higher fourth-quarter profit helped by higher interest rates and cost cutting. (CNBC)
- Delta (DAL) more than doubles earnings but trims 2024 forecast. (CNBC)
- Stock futures widen decline after bank losses disappoint: MarketsWrap. (Bloomberg)
- Bloomberg Odd Lots: Why big moves in the bond market are done. (Podcast)
- NPR Marketplace: How far does an additional $40 a month go? (Podcast)
- NY Times Daily: In Iowa, two friends debate DeSantis vs Trump. (Podcast)
- BBC Global News Daily Podcast: US and UK launch strikes against Houthi rebels in Yemen. (Podcast)
- Wealthion: Trading like a wizard with Jason Shapiro. (Podcast)
Moving Average Update: Score back down to 82% from 88%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 a.m. EST
- The President departs the White House en route to Joint Base Andrews, 12:10 p.m. EST
- The President departs Joint Base Andrews en route to the Allentown area, Pennsylvania, 12:30 p.m. EST
- Principal Deputy Press Secretary Olivia Dalton and NSC Coordinator for Strategic Communications John Kirby will take questions aboard Air Force One en route to the Allentown area, Pennsylvania, 12:45 p.m. EST
- The President arrives in the Allentown area, Pennsylvania, 1:15 p.m. EST
- The President visits several small businesses in the Allentown area, Pennsylvania, 1:50 p.m. EST
- The President departs the Allentown area, Pennsylvania en route to the White House, 4:25 p.m. EST
- The President departs Joint Base Andrews en route to the White House, 5:25 p.m. EST
- The President arrives at the White House, 5:35 p.m. EST
Economic:
- December PPI is due out at 8:30 a.m. EST and is expected to come in at 0.10% from 0.0%.
- Baker Hughes Rig Count 1:00 p.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve Minneapolis President Neel Kashkari 10:00 a.m. EST
M&A Activity and News:
- Allient (ALNT) acquires SNC Manufacturing.
- Biote (BTMD) Names Robert Peterson as Chief Financial Officer.
- Hillman Solutions Corp. (HLMN) acquires Koch Industries, Inc., a merchandiser of rope and twine, chain, and wire rope; Koch’s revenue totaled approximately $45 million in FY23.
- SeaStar Medical (ICU) appoints David Green CFO.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
-
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: FEAM, INO, NNVC, VLCN
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: None of note.
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings: None of note.
- Gdansk Gastroenterology Symposium
- Previously posted and ongoing conferences:
- Consumer Electronics Show
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:
