CAPIS Morning Note – 01/14/22: S&P 500 Futures Weaken At 7:00 a.m. EST Heading Into The Open

There is no production Monday as markets are closed for Martin Luther King Day Observances. Overnight Summary: S&P 500 Futures have dropped 30 S&P points since 7:00 a.m. EST to be down -17. Overseas is weak as it appears we have a tough Friday ahead heading into a long weekend. Never a good recipe. Earnings…

There is no production Monday as markets are closed for Martin Luther King Day Observances.

Overnight Summary: S&P 500 Futures have dropped 30 S&P points since 7:00 a.m. EST to be down -17. Overseas is weak as it appears we have a tough Friday ahead heading into a long weekend. Never a good recipe.

Earnings Out After The Close:

  • Beats: WAFD +0.01
  • Flat: None.
  • Misses: None

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched: None of note.
  • Secondaries Priced:
    • Cerberus Cyber Sentinel Corp. (CISO) Announces Pricing of Public Offering.
    • SRC: Pricing of an Upsized Public Offering of 8,200,000 Shares of Common Stock @$47.60.. MS and BAC Bookmanagers.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • NTST: Closing of Forward Common Stock Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
    • PWP: Commences Public Offering of Class A Common Stock 3,502,033 shares.. JPM Underwriter.
    • SSKN: Filed Form S-3.. 358,367 Shares of Common Stock.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering:
    • CLSN: Pricing of $30 Million Registered Direct Offerings of Convertible Redeemable Preferred Stock.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • MNRL: Filed Form S-3ASR.. Mixed Shelf.
    • RWAY: Filed Form N-2.. $250,000,000​ Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • CMC: Prices Offering of $600 Million Senior Notes in Two Tranches.
    • RRC: Pricing of $500 Million Offering of Senior Notes.
    • SPCE Virgin Galactic Holdings, Inc. Prices $425 Million Convertible Senior Notes Offering.
  • Note Offerings 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:

  • After Hours: 
    • Trading Up: SAP +3%
    • Trading Down: SAM -8%, PWP -6%, CSTL -5%, SRC -4%
  • News Items After The Close:
    • Federal Reserve’s Patrick Harker calls for ‘action on inflation,’ sees 3 or 4 rate hikes likely this year (CNBC)
    • Mastercard (MA) CEO says spending trends look ‘relatively positive’ so far in 2022 after strong holiday. (CNBC)
    • OraSure (OSUR) says IntelliSwab Covid-19 rapid test detects Omicron as well as other variants.
    • January 6 Committee subpoenas Google, Facebook, Twitter and Reddit in probe of Capitol attack. (CNBC)
    • Upward Guidance MA
    • Downside Guidance SHW
  • Exchange/Listing/Company Reorg and Personnel News: 
    • The Market is Closed on Monday Jan 17 for MLK.
    • Aspen (ASPN) Announces CFO Retirement Plan and Strategic Leadership Appointments.
    • Continental Resources (CLR) promotes John Hart to CFO.
    • Emergent BioSolutions (EBS) announced that founder and executive chairman, Fuad El-Hibri, will retire effective April 1, 2022.
    • NAKD – Cenntro Electric Group Announces the Change of its Trading Symbol from “NAKD” to “CENN”.
    • Natuzzi S.p.A. (NTZ) Announces Departure of Its Chief Financial Officer.
    • Chubb (CB) names D. Spitzer as Treasurer and K. Harkin as CFO of North America Insurance.
    • ODFL replacing PTON in Nasdaq-100.
  • Buyback Announcements:
    • SAP (SAP) announces share repurchase program to service future share-based compensation awards.
  • Stock Splits:
    • KOLD
  • Dividends Announcements: None of note.

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 -31 , Dow Jones -194 , NASDAQ -157 and Russell 2000 -21. Asia and Europe lower. VIX Futures are at 22.50 from 21 yesterday morning. Gold higher with Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $128.52 from $128.20 yesterday with yields at 1.736% from  1.745%yesterday morning. Bitcoin at $42,222 from $43,754  yesterday morning and -0.89%. As of 8:10 a.m. EST.

Thursday’s Action – 01/13 Close:  

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

Indexes pullback through out the day with COMPQ down -2.51%.  UNG pulled back -11.08% from yesterday’s blastoff.  Updated 01/13/22 close.

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

  • Friday After the Close: None of note.
  • Tuesday Before the Open: SCHW, GS, PNC, PACW, ONB.

Earnings of Note This Morning:

  • Beats: WFC +0.38, JPM +0.32, BLK +0.28, FRC +0.09
  • Flat: None.
  • Misses: C (0.20)
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 01/13/22 close. The market A/D Line looks awful.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: MNRL +4%, PL +3%
  • Gap Down: SAM -7%, PWP -5%, CSTL -5%, SRC -4%

Insider Action: SAFE sees Insider buying with dumb short selling and MACK has smart short sellers with insider buys. SNSE sees moderate short selling with no history. 01/13/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Stocks Making The Biggest Moves: BLK WFC SHW. (CNBC)
  • Covid-19 Cases at 855,805 from 705,264 a week ago. Hospitalizations at 128,222 from 95,250.
  • Omicron appears to be less severe to even unvaccinated people. (Bloomberg)
  • China Trade Surplus hits $676 billion in 2021, a new record. (Bloomberg)
  • President Biden to nominate Sarah Bloom Raskin to be Federal Reserve Vice Chairman of Supervision. (CNBC)
  • President Biden Death Toll from Covid-19 to pass Trump’s Death Toll count. (Newsweek)
  • Justice Department makes first sedition charges in the January 6th Riots. (CNN)
  • Senate will vote on the Voting Rights Bill and will fail due to the filibuster addition. (CNN)
  • Federal Reserve San Francisco President Mary Daly supports a March rate increase. (Reuters)
  • J.P. Morgan (JPM) off -3% on earnings this morning while Wells Fargo (WFC) up 2% on better than expected results. (CNBC)
  • Robinhood Snacks looks at the first traded IPO of the year, TPG. Beyond Meat (BYND) becomes the “big short”.

Moving Average Update:

  • Score pulls back to 20% from 53%. Updated 01/13/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki and FEMA Administrator Deanne Criswell, 11:45 a.m. EST
    • The President announces how the Bipartisan Infrastructure Law will rebuild America’s bridges, which are critical for getting to school and work, moving commerce, and connecting communities; The President will also provide an update on the progress made by his Administration in the 60 days since he signed the Bipartisan Infrastructure Law, 12:30 p.m. EST
    • The President departs the White House en route Wilmington, Delaware, 6:00 p.m. EST
    • The President arrives in Wilmington, Delaware, 6:55 p.m. EST

Economic: 

  • December Retail Sales are due out at 8:30 a.m. EST and are expected to fall to 0.0% from 0.3.
  • Import and Export Prices 8:30 a.m. EST 
  • December Industrial Production is due out at 9:15 a.m. EST and is expected to fall to 0.3% from 0.5%.
  • University of Michigan Consumer Sentiment – (Preliminary) is due out at 10:00 a.m. EST and is expected to fall to 68.5 from 70.6. 
  • Business Inventories 10:00 a.m. EST
  • Baker Hughes Rig Count 1:00 p.m. EST 

Federal Reserve Speakers:

  • Federal Reserve Philadelphia President Patrick Harker 10:00 a.m. EST
  • Federal Reserve New York President John Williams 11:00 a.m. EST

M&A Activity: 

  • NCR (NCR) Completes Acquisition of Cryptocurrency Leader LibertyX.

Meeting & Conferences of Note:

  • Sellside Conferences:  None of note. 
    • Previously Posted and Ongoing Conferences:
      • ATB Capital Markets Institutional Investor Conference
      • Citigroup California Utility & Energy Field Trip
      • JP Morgan Healthcare Conference (01/10/22 – 01/14/22)
      • Morgan Stanley Latin America Executive Conference (01/12/22 – 01/14/22)
      • Needham Growth Conference (01/10/22 – 01/15/22)
      • Raymond James Lumber & Home Building Forum
      • UBS Greater China Conference (01/10/22 – 01/19/22)
  • Company Meetings: SLNL
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: KYNC
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • Winter Clinical Dermatology Conference 2022 (01/14/22-01/19/22)
    • Metals Investor Forum 2022 (01/14/22-01/15/22)
    • Veterinary Meeting & Expo Conference 2022 (01/15/22-01/19/22)
      • Previously Posted and Ongoing Conferences:
        • None.

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:

Thursday’s Upgrades and Downgrades: