Overnight Summary: The S&P 500 closed Friday higher by 1.23% at 4829.11 from Thursday higher by 0.88% at 4780.94. The overnight high was hit at 4887.50 at 8:00 p.m. EST while the overnight low was hit at 4869.75 at 5:00 p.m. EST. The range overnight was 18 points as of 7:15 a.m. EST. The 10-day average of the overnight range is at 24.80 from 25.50. The average for May-December average was 20.87 from 21.43 during May-November. Currently, the S&P 500 is higher by +17.25 points at 7:15 a.m. EST.
Executive Summary: And then there were two. The race for the White House on the GOP side is down to two, Haley and Trump. DeSantis dropped out over the weekend. So far futures are not taking this negatively, Federal Reserve Speakers are in blackout until next Wednesday, January 31st when Federal Reserve Chairman Powell speaks after the FOMC meeting that begins on January 30th.
- Leading Economic Indicators are due out at 10:00 a.m. EST.
Earnings Out After The Close:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News:
- Amer Sports, Inc. (AS) Announces Launch of its Initial Public Offering.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ALCE: Filed Form S-1.. Up to 68,872,901 shares of common stock.
- CYCC: Filed Form S-1.. 411,969 shares of common stock.
- DATS: Announces Closing of $1.8 Million Underwritten Public Offering of Common Stock.
- FUSN: Increases its previously disclosed Open Market Sale Agreement to $200 million.
- GOEV: Filed Form 424B5.. $15,957,447 Common Stock.
- IDYA: Filed Form 8-K entered into an Open Market Sales Agreement.
- NXU:-Filed Form S-3.. Up to 1,000,000 Shares of Class A Common Stock.
- PROK: Files for $100 million Open Market Sale Agreement relating to its Class A ordinary shares.
- WISA: Filed Form S-1.. files to sell units.
- Direct Offering:
- MYO: Announces Closing of $6 Million Registered Direct Offering of Common Stock Priced At-the-Market.
- Selling Shareholders of note:
- LAB: Files for 38,428,964 share common stock offering by selling shareholders.
- 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:
- BJK: FDJ launches a recommended all-cash tender offer for Kindred to create a European gaming champion.
- 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 and Over the Weekend:
- Weekly Wrap Up: Best and Worst performing large cap stocks:
- Trading Up: KAMN 95.1%, HMST 39.2%, ACRS 24.5%, PI 20.5%, AMD 18.1%, MDC 16.2%, ACLS 15.1%, SUPV 13.8%, VECO 13.7%, UCTT 13.0%, TSM 13.0%, EBIX 12.0%, TAST 11.7%, PAR 11.5%, EOLS 11.5%, PSTG 11.3%, MGNX 11.2%, AMAT 11.1%, SMTC 11.0%, COHR 10.6%.
- Trading Down: AXDX -70.0%, ALLK -61.5%, SAVE -54.2%, IRBT -40.2%, POL -38.0%, ESPR -34.3%, SBNY -32.4%, FSM -20.1%, GDS -20.1%, EHTH -18.0%, AMRC -17.0%, LPSN -16.9%, TPIC -16.5%, CDNA -16.2%.
- News Items After the Close:
- SP 500 (SPX) closes at record high for first time in two years
- JetBlue Airways (JBLU) and Spirit Airlines (SAVE) announce they have jointly filed a notice of appeal to the US Court of Appeals for the First Circuit, consistent with the requirements of the merger agreement.
- Spirit Airlines jumps +10.4% after hours after filing appeal; JBLU -1.8% a bit lower after hours.
- KB Home (KBH) discloses it received a DOJ subpoena related to its ENERGY STAR homes.
- Apollo Global Management (APO) among other private equity groups mulling an offer for Redstone family company controlling Paramount Global (PARA). (Bloomberg)
- Microsoft (MSFT) Executive Emails Hacked By Russian Intelligence Group, Company Says. (CNBC)
- News Items Over the Weekend:
- The Score: Stocks That Defined the Week – SAVE, JBLU, MS, DIS, TSM (WSJ)
- Meet the Investors Trying Quantitative Trading at Home. (WSJ)
- ADM To Delay Earnings, Filing Of Annual Report Amid Investigation Into Accounting Practices – Withdraws All Forward-Looking Outlook For Nutrition Reporting Segment – Now Sees +$6.90 Adj EPS In FY 23. Appoints interim CFO.
- Arkhouse makes proposal to acquire Macy’s (M) for $21 per share.
- Macy’s rejects a $5.8B takeover bid from Arkhouse Management and Brigade Capital, offered at $21 per share. The firms threaten to take the offer directly to shareholders, emphasizing their readiness to ‘pursue all necessary steps’ for acquisition. The Board cites the bid as ‘not actionable,’ lacking ‘compelling value,’ and questions the feasibility of the financing plan.
- SolarEdge (SEDG) to cut 16% of workforce as revenues slide.
- Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump. (Bloomberg)
- Barron’s:
- Positive View: META, ON, FTV, WCN, RTX, CNQ, BIIB, EG, FANG, OSK, GPN, ATGE, SRCL, NVST, LESL, SPHR, BP, VZ, UBER, INTC, EOG, CCL, INCY, TRIP, KMI, TDG, TCOM 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:
- Apollomics (APLM) Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- Archer Daniels (ADM) appoints Ismael Roig as interim Chief Financial Officer. (see News over the weekend)
- Arrowhead (ARWR) Chief Medical Officer to depart.
- Alliance Entertainment (AENT) Regains Compliance with Nasdaq Minimum Bid Price Rule.
- Baijiayun Group Ltd (RTC) CEO and chairman Gangjiang Li has resigned for personal reasons, effective from January 22; Mr. Yi Ma named new CEO and Chairman.
- Ceridian (CDAY) to change ticker symbol to ‘DAY’ on NYSE and TSX effective February 1.
- Casper Sleep Inc. (CSPR) Appoints Joe Megibow as CEO.
- Century Therapeutics (IPSC) CFO to resign.
- Energy Recovery (ERII) announces David Moon has been named President and Chief Executive Officer of the Company.
- Manchester United (MANU) names Omar Berrada as new CEO.
- MarketAxess (MKTX) CEO Christopher Concannon takes on additional role of interim CFO until replacement found.
- SIGA Technologies (SIGA) announces that Diem Nguyen will join the Company as chief executive officer, effective January 27, 2024, and will also be appointed to the Company’s Board of Directors.
- Tillys (TLYS) Announces Leadership Transition. Ed Thomas has retired from his position as President and Chief Executive Officer and as a Director.
- TRX Gold Corporation (TRX) Announces Ticker Symbol Change on the Toronto Stock Exchange to “TRX.
- Buyback Announcements or News:
- Stock Splits or News:
- Reverse Split stocks today EVAX 1/10, REBN 1/8, NVVE 1/40, PCSA 1/20
- Dividends Announcements or News: None of note.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +19, Dow Jones +98, NASDAQ +132, and Russell 2000 +11. (as of 8:00 a.m. EST). Asia is higher es South Korea while Europe is higher this morning. VIX Futures are at 14.38 from 14.65 this morning. Gold, Silver and Copper are lower this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas lower as well. US 10-year Treasury sees its yield at 4.094% from 4.134% Friday morning. The U.S. Dollar is higher versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $40,739 from $41,295 lower by -2.23% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Communication Services, Financial, Real Estate, Consumer Cyclical, Industrials of note.
- Daily Negative Sectors: Consumer Defensive of note.
- One Month Winners: Communication Services, Technology, and Healthcare
Real Estate of note.
- Three Month Winners: Technology, Financial, and Real Estate of note.
- Six Month Winners: Communication Services, Technology, and Financial of note.
- Twelve Month Winners: Technology, Communication Services, Consumer Cyclicals and Industrials of note.
- Year to Date Winners: Technology, Communication Services, and Healthcare
Consumer Defensive of note.
A rally in technology stocks propelled the S&P 500 to an all-time high Friday. The S&P 500 rose 1.2% to 4839.81, breaking a streak of more than 500 trading sessions without a new record. The Dow Jones Industrial Average gained 395 points, or 1.1%, to close at 37863.80, also a record. The tech-heavy Nasdaq Composite climbed 1.7%. Shares of tech companies led the charge higher. An upbeat earnings report this week from chip maker Taiwan Semiconductor Manufacturing Company (TSM) spurred a resurgence in semiconductor stocks like Nvidia (NVDA), Advanced Micro Devices (AMD) and Broadcom (AVGO). The PHLX Semiconductor Index gained 4%. Shares of Apple (AAPL), which uses TSMC chips, rose 1.6%. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
Earnings of Note This Morning:
- Beats: BOH +0.01 of note.
- Flat: None of note.
- Misses: of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: PK of note.
- Negative Guidance: ADM of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: CHRS +24%, SEDG +6%, SAVE +5%, PROK +4% of note.
- Gap Down: RILY -17%, ADM -14%, FUSN -6%, HTHT -5% of note.
Insider Action: AXR, PBF 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 Today. (CNBC)
- Stocks Making The Biggest Move in Pre-Market: M BA ADM SEDG RILY SAVE STNE. (CNBC)
- Bloomberg Lead Story: Hong Kong Stocks at 36% Discount, Show True Depth of China Gloom. (Bloomberg)
- Bloomberg Most Shared Story: Florida Governor DeSantis drops out of presidential race, endorses Trump. (Bloomberg)
- Stocks rally as Wall Street set to build on record: Markets Wrap. (Bloomberg)
- Boeing (BA) faces checks on another 737 model. (Yahoo Finance)
- Bloomberg Odd Lots: Three Macro Turning Points Under Way. (Podcast)
- NPR Marketplace: Bitcoin has gone mainstream. For Crypto, that is controversial. (Podcast)
- NY Times Daily: The Rules of War. (Podcast)
- Wealthion: Inflation’s false death: Peter Boockvar’s blunt warning. (Podcast)
Moving Average Update: Score increases to 91% from 74%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 a.m. EST
- The President departs Rehoboth Beach, Delaware, 10:15 a.m. EST
- The President arrives at the White House, 11:10 a.m. EST
Economic:
- Leading Indicators 10:00 a.m. EST
- 3, 6-Month Bill Auction 1130 a.m. EST
Federal Reserve / Treasury Speakers:
- Treasury Secretary Janet Yellen to discuss the U.S. Economy in Chicago on Thursday, covering economic indicators and recovery initiatives.
M&A Activity and News:
- Arkhouse makes proposal to acquire Macy’s (M) for $21 per share. Macy’s rejects the deal.
- Sunoco (SUN) and NuStar (NS) to merge in all stock deal with NuStar up 22%.(MarketWatch)
Meeting & Conferences of Note:
- Sellside Conferences:
- Cambridge House Vancouver Resource Investment
- Jefferies Winter Restaurant Foodservice Gaming Lodging & Leisure Summit
- Jefferies Consumer Summit
- Previously posted and ongoing conferences: None of note.
- Top Shareholder Meetings: AGFY, SMCI, SMG
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls:
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Maui Dermatology
- Safeguarding the Development of Artificial Intelligence
- Symposium OGM Presentations
- Previously posted and ongoing conferences: None of note.
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:
