Overnight Summary: The S&P 500 closed Wednesday higher by 0.08% at 4868.55 from Tuesday higher by 0.29% at 4864.60. The overnight high was hit at 4904.75 at 2:20 a.m. EST while the overnight low was hit at 4889 at 4:10 p.m. EST. The range overnight was 15 points as of 6:25 a.m. EST. The 10-day average of the overnight range is at 21.70 from 22. The average for May-December average was 20.87 from 21.43 during May-November. Currently, the S&P 500 is higher by +4 points at 6:30 a.m. EST.
Executive Summary: Lots of economic data today. This is key as the 10-Year rose to 4.103% but intraday hit 4.188% before backing off. Higher bond yields are a negative to stocks here.
- December Durable Orders are due out at 8:30 a.m. EST and is expected to fall to 0.1% from 5.4%.
- The first look at Q4 GDP is due out at 8:30 p.m. EST and is expected to come in at 2.0% from 4.9% on Q3.
- December New Home Sales are due out at 10:00 a.m. EST and are expected to rise to 640,000 from 590,000.
- Short interest – The latest NYSE and NASDAQ Short Interest Data is out and NYSE increased by +0.66% while NASDAQ increased by +1.25%
Earnings Out After The Close:
- Beats: URI +0.56, LRCX +0.40, NOW +0.33, PKG +0.30, CNXC +0.29, STX +0.18, RJF +0.16, RMD +0.11, IBM +0.08, WRB +0.07, CATY +0.06, AMP +0.06, RLI +0.05, CNS +0.03, CCI +0.03, CSX +0.01 of note.
- Flat: None of note.
- Misses: COLB (0.35), SLG (0.18), CASH (0.18), SLM (0.16), CACI (0.12), ETD (0.09), HXL (0.06), KNX (0.05), TOWN (0.05), LVS (0.04), CVBF (0.03), LBRT (0.03), TSLA (0.02), PLXS (0.01) of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note:
- CZR: Announces Pricing of Offering of Senior Secured Notes.
- Common Stock filings/Notes:
- AKTS: Proposed Public Offering of Common Stock. (Roth bookmanager)
- ATXI: FORM S-3 – 33,080,598 Shares of Common Stock.
- BODY: Filed Form S-1.. 543,590 shares of Class A Common Stock.
- EFSH: FORM S-1 – Up to 2,673,797 Common Shares and/or Pre-Funded Warrants to Purchase Common Shares.
- ICU: FORM S-3 – Up to 8,246,971 Shares of Common Stock.
- JZXN: FORM F-3 – 113,636,360 Ordinary Shares.
- TRML: Proposed Public Offering of Common Stock. (Jefferies, Piper, Guggenheim and Truist Bookmanagers)
- Direct Offering: None of note.
- Selling Shareholders of note:
- STTK: Files for 3,100,823 shares of common stock by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- HNVR: Filed Form S-3.. $50 Million Mixed Shelf.
- IVDA: Filed Form S-3.. $25,000,000 Mixed Shelf.
- MGOL: Filed Form S-3.. $100,000,000 Mixed Shelf.
- Debt/Credit Filing and Notes: None of note.
- 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 :
- After Hours Movers:
- AFIB: +61% EU Patent
- AMSC: +17% Earnings
- IBM: +8.5% Earnings
- RMD: +7% Earnings
- ADT: +5% Provides Solar Business Update and Advances Capital Allocation Strategy
- URI: +4.5% Earnings
- LVS: +3.5% Earnings
- HXL: -10% Earnings
- ICU: -7.5% FORM S-3 – Up to 8,246,971 Shares of Common Stock
- COLB: -6.5% Earnings
- TSLA: -5% Earnings
- BA: -4% FAA Halts Boeing 737 MAX expansion
- News Items After the Close:
- Stocks making the biggest moves after hours: TSLA, IBM, LVS, IBM, HXL, URI, RMD, LRCX, COLB, NOW (CNBC)
- Tesla (TSLA) Warns of ‘Notably’ Slower Growth in 2024. (WSJ)
- Boeing (BA) Halted From Further Max Production Increases by FAA. (Bloomberg)
- IBM shares rise after earnings top estimates in ‘uncertain, volatile’ economy. (CNBC)
- HPE hacked by same Russian intelligence group that hit Microsoft. (CNBC)
- PARA: David Ellison Makes Offer For Redstone Family’s Media Empire. (Bloomberg)
- @munster_gene: Musk says they are pursing $NVDA for autonomy chips and Dojo (Tesla’s in-house chips in development) is more of a long shot. Looks like yet another upcoming win for Nvidia.
- Cramer: “You should SELL your bitcoin. If it goes above $40,000 that’s a gift” (CNBC)
- Exchange/Listing/Company Reorg and Personnel News:
- Crown Castle (CCI) Announces Dan Schlanger will remain in his role as Executive Vice President and CFO.
- Inogen (INGN) names Michael Bourque as New Chief Financial Officer.
- KB Home (KBH) promotes Robert McGibney to President in addition to his current role of COO.
- Ostin Technology Group (OST) Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- Buyback Announcements or News:
- ADT authorizes $350 million repurchase plan. (see Dividends)
- Sallie Mae (SLM) announces new $650 million share buyback authorization.
- United Rentals (URI) intends to repurchase $1.5 billion in 2024. (see Dividends)
- Stock Splits or News:
- Dividends Announcements or News:
- ADT increases quarterly dividend by 57%.
- Arthur J. Gallagher (AJG) increases quarterly cash dividend to $0.60 per share from $0.55 per share.
- Cadence Bank (CADE) increases quarterly cash dividend 6.4% to $0.25 per share from $0.235 per share.
- Delek Logistics Partners (DKL) increases quarterly cash distribution to $1.055 per common limited partner unit from $1.045.
- Hexcel (HXL) Board of Directors declared a quarterly dividend of $0.15 per share.
- Republic Bancorp (RBCAA) increases quarterly cash dividend 9% to $0.407 per share from $0.374 per share.
- United Rentals (URI) intends to raise dividend by 10%.
- Yum! Brands (YUM) increases quarterly cash dividend 11% to $0.67 per share from $0.605 per share.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -1, Dow Jones -33, NASDAQ +20, and Russell 2000 +5. (as of 8:00 a.m. EST). Asia and Europe are higher this morning. VIX Futures are at 14.03 from 13.50 this morning. Gold, Silver and Copper are higher this morning for the third day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher as well. US 10-year Treasury sees its yield at 4.159% from 4.107% yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $40,214 from $40,249 higher by 1.30% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Energy, Communication Services, Technology, Financial of note.
- Daily Negative Sectors: Utilities, Real Estate, Consumer Defensive, Healthcare, Industrials, Basic Materials of note.
- One Month Winners: Communication Services, Technology, and Healthcare 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 of note.
The stock market is charging through earnings season, with the S&P 500 hitting a fourth consecutive record on Wednesday. Strong showings from most of the “Magnificent Seven” stocks helped drive major indexes into the green. Microsoft (MSFT) rose 0.9 % to a new all-time high after touching a market capitalization above $3 trillion during trading, joining Apple (AAPL) as the only U.S. companies to do so. Nvidia’s (NVDA) and Meta Platforms’ (META) respective 2.5% and 1.4% advances helped lift the tech-heavy Nasdaq Composite 0.4%. The benchmark S&P 500 gained less than 0.1%, while the blue-chip Dow Jones Industrial Average slipped 0.3%, or 99 points. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: V, INTC, TMUS, KLAC, AJG, COF, LHX, FICO, WY, WDC, WAL, OLN, SSB, GBCI, APPF, ABCB, ASB, WSFS, FFBC, HTH, CUBI, PFS
- Friday Before the Open: CAT, AXP, CL, NSC, IMO, FTS, BAH, ALV, GNTX, BMI, FHB, BKU, STEL, SBSI
Earnings of Note This Morning:
- Beats: CNX +2.59, BFH +1.57, VLO +0.61, NOC +0.47, NTCT +0.36, STM +0.26, LUV +0.25, AAL +0.18, EXP +0.17, BX +0.16, AIT +0.13, ALK +0.12, MKC +0.06, MMC +0.05, CMCSA +0.05, NEE +0.03, DOW +0.03, RES +0.01, MBLY +0.01, SHW +0.01 of note.
- Flat: None of note.
- Misses: BANC (4.27), HUM (0.87), BPOP (0.39), HZO (0.31), VIRT (0.13), MUR (0.10), XRX (0.09), VLY (0.03), BHLB (0.02), XEL (0.02) of note.
- Still to Report: CRS, CFR, LKFN, NEP, OSIS, UNP of note.
Company Earnings Guidance:
- Positive Guidance: SLG, NOC, AAL, NTCT of note.
- Negative Guidance: BKR, KNX, CNXC, HXL, PLXS, SLM, PKG, STM, SOL, MKC, MBLY, HZO of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: AMSC +17%, RMD +9%, NOK +8%, IBM +7%, TIGR +7%, TAL +6%, URI +4% of note.
- Gap Down: COLB -14%, LQDA -13%, HXL -8%, TSLA -8%, VIRT -7%, CNXC -5%, LBRT -5%, PLXS -5%, AMP -4%, ETD -4% of note.
Insider Action: No stock 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: IBM, TSLA, NOK, HUM, HTZ, PARA (CNBC)
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things To Know Before the Stock Market Opens Today. (CNBC)
- Bloomberg Lead Story: Musk Fails to Convince Shareholders to Overlook Slowdown. (Bloomberg)
- Bloomberg Most Shared Story: Jon Stewart returns to “The Daily Show” just in time for the election. (Bloomberg)
- China’s $6 trillion stock wipeout poses bigger problems for President Xi. (Bloomberg)
- Stocks pause as Tesla results temper buoyant mode: Markets Wrap. (Bloomberg)
- Trump warns will blacklist Haley donors. (CNBC)
- American Airlines (AAL) narrowly posts Q4 profit. (CNBC)
- Bloomberg: Biden, Trump and a Presidency in Play. (Podcast)
- NPR Marketplace: How satellites show destruction of Gaza. (Podcast)
- NY Times Daily: The hybrid worker malaise. (Podcast)
- Wealthion: Investing in real estate. (Podcast)
Moving Average Update: Score inches down to 88% from 97%.
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, 9:40 a.m. EST
- The President departs Joint Base Andrews en route to Duluth, Minnesota, 10:00 a.m. EST
- Principal Deputy Press Secretary Olivia Dalton and NSC Coordinator for Strategic Communications John Kirby will speak aboard Air Force One en route to Superior, Wisconsin, 11:00 a.m. EST
- The President arrives in Duluth, Minnesota (11:15 AM Local), 12:15 p.m. EST
- The President delivers remarks on Investing in America and the Bipartisan Infrastructure Law (1:00 PM Local), 2:00 p.m. EST
- The President departs Duluth, Minnesota en route to Joint Base Andrews (3:40 PM Local), 4:40 p.m. EST
- The President departs Joint Base Andrews en route to the South Lawn, 6:50 p.m. EST
- The President arrives at the White House, 7:00 p.m. EST
Economic:
- December Durable Orders are due out at 8:30 a.m. EST and is expected to fall to 0.1% from 5.4%.
- The first look at Q4 GDP is due out at 8:30 p.m. EST and is expected to come in at 2.0% from 4.9% on Q3.
- Jobless Claims 8:30 a.m. EST
- International Trade 8:30 a.m. EST
- Wholesale Inventories 8:30 a.m. EST
- December New Home Sales are due out at 10:00 a.m. EST and are expected to rise to 640,000 from 590,000.
- EIA Natural Gas Report 10:30 a.m. EST
Federal Reserve / Treasury Speakers: None of note.
M&A Activity and News:
- Kadant (KAI) acquires KWS Manufacturing Company, Ltd. for approximately $84 million in cash.
Meeting & Conferences of Note:
- Sellside Conferences:
- Renmark Virtual Non-Deal Roadshow
- Sequire Investor Summit
- Previously posted and ongoing conferences:
- Maxim Group Healthcare IT Virtual Conference
- TD Securities Global Mining Conference
- Top Shareholder Meetings: APD, AYI, CYTO, JBL, LIZI, POST, TNXP, WBA
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: NCL, PYPL, VERA, WLY
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Advances Against Aspergillosis and Mucormycosis (AAAM) Conference
- American Society of Clinical Oncology Genitourinary Cancers Symposium
- Previously posted and ongoing conferences:
- LCA Recycling Circular Design & Sustainable Sourcing for EV Batteries & Carbon Neutral Vehicles USA Congress
- Maui Dermatology
- mRNA-Based Therapeutics Summit
- Octane Aesthetic Technology Forum
- Symposium OGM Presentations
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:
