Overnight Summary: The overnight session was wild. The S&P 500 Futures rose to 4367 at 7:00 p.m. EST before falling to 4267 at 2:00 a.m. EST and now are at 4351 at 7:25 a.m. EST up +11. Asia sold off as it digested the Fed’s action and Europe is off its lows but with only the FTSE positive.
Earnings Out After The Close:
- Beats: CASH +1.32, URI +0.70, PKG +0.69, AXS +0.62, AMP +0.45, RJF +0.36, RLI +0.33, XLNX +0.27, CNS +0.26, MTH +0.25, AVT +0.24, WHR +0.21, TSLA +0.18, INTC +0.18, MKSI +0.17, SIMO +0.14, LSTR +0.12, TER +0.08, VRTX +0.08, FLEX +0.08, ISBC +0.08, SEIC +0.06, CLS +0.06, STX +0.05, LC +0.05, CALX +0.05, CNMD +0.04, CCI +0.04, SLM +0.04, NOW +0.03, HXL +0.03, WOLF +0.02, LRCX +0.02, CVBF +0.01, LEVI +0.01.
- Flat: LVS +0.00.
- Misses: AZPN (0.13), PTC (0.07), PLXS (0.07), CACI (0.06), XM (0.05), MEOH (0.05), SLG (0.03), EW (0.02), DRE (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- EPZM: Pricing of Public Offering of Common Stock 56,666,667 shares @$1.50.. Jefferies bookmanager.
- Sierra Oncology (SRRA) prices offering offer 4 million shares of common stock at $27.00 per share.
- ZYME: Pricing of $100.0 Million Public Offering 9,160,000 common shares @$8 .. Jefferies, Evercore, Stifel and WFC Bookmanagers.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- NILE: Filed Form S-3.. Up to 17,519,462 Shares of Common Stock Issuable upon Exercise of Warrants.
- Pricing of Over-Allotment: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- HTGM: Filed Form S-3.. $200 Million Mixed Shelf.
- RMO: Filed Form S-3.. $350 Million Mixed Shelf.
- RVPH: Filed Form S-3.. $150 Million Mixed Security Shelf
- Convertible Offering & Notes Filed: None of note.
- 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: ARAY +10%, NOW +10%, TWNK + 9%, XM +9%, LEVI +8%, ATRA +8%, GLPG +7%, EEFT +7%, FLEX +6%, MEOH +6%, STX +6%, AVT+5%, CALX +5%, NFLX +5%, WOLF +4%, CNC +4%, CMP+4%JACK +3%.
- Trading Down: EPZM -24%, TER -17%, LC -12%, ZYME -9%, SIMO -8%, LRCX -6%, MKSI -5%, EW -5%, PTC -3%, GPS -3%.
- News After The Close:
- Stocks making the biggest moves after the bell: TSLA, NFLX, LC, INTC, LEVI, NOW, LRCX (CNBC)
- Fed Grabs the Market’s Punch Bowl (Wall Street Journal)
- Bill Ackman says his hedge fund just bought 3.1 million shares of Netflix (NFLX) (Market Watch)
- General Motors (GM) to hire 8,000 EV workers. (Reuters)
- L3Harris (LHX) wins $750 million Navy contract.
- Stanley Black & Decker (SWK) to restate EPS for last three years.
- TSLA will not be introducing new vehicle models in 2022. Will Achieve Full Self-Driving This Year.
- Spotify (SPOT) to Take Down Neil Young’s Music After His Joe Rogan Ultimatum as cancel culture continues. (Wall Street Journal)
- Exchange/Listing/Company Reorg and Personnel News:
- Aeterna Zentaris (AEZS) Granted 180-Day Extension by Nasdaq to Regain Compliance with Minimum Bid Price Rule.
- AutoNation (AN) COO James R. Bender to retire March 4.
- Ball Corporation (BLL) Board Elects Fisher as CEO; Hayes to remain Chairman.
- Casa Systems (CASA) Scott Bruckner, CFO, to resign to due family issues. This is effective April 3.
- Galapagos NV (GLPG) names Dr. Paul Stoffels as CEO 4/1.
- Plexus (PLXS) announces the appointment of Steve Frisch to President and Chief Strategy Officer. Oliver Mihm will be Executive Vice President and Chief Operating Officer.
- SP 500 Changes: Gap (GPS) to be removed from S&P 500. Constellation Energy (CEG) to be added. Prior to February 3rd.
- SP 400 Changes: Gap (GPS) added and replaces Jack in the Box (JACK). Prior to February 3rd. Watts Water Technologies (WTS) will replace Sterling Bancorp (STL). Eurnet (EEFT) will replace Compass Minerals (CMP). Prior to February 1st.
- SP 600 Changes: Jack in the Box (JACK) added and replaces Spectrum Pharmaceuticals (SPPI). Prior to February 3rd. TWNK added to Small Cap 600 replacing Watts Water Technologies (WTS). Compass Minerals (CMP) will replace Great Western Bancorp (GWB). Prior to February 1st.
- Buyback Announcements:
- Ameriprise Financial (AMP) Announces Additional $3 Billion Share Repurchase Authorization.
- Nasdaq, Inc. (NDAQ) Announces $325 Million Accelerated Stock Repurchase Program.
- Northrop Grumman (NOC) authorizes additional $2 billion in share repurchases.
- OFG Bancorp (OFG) Announces New Share Repurchase Program of $100 Million.
- Teradyne (TER) expects to buyback $750 million of stock in 2022 Dividends.
- United Rentals (URI) Announces New $1 billion Share Repurchase Program.
- Stock Splits: None of note.
- Dividends Announcements:
- Ameriprise Financial (AMP) Declares Regular Quarterly Dividend.
- Ball (BLL) Board Declares Quarterly Dividend; Approves Governance Changes.
- California Water (CWT) increases quarterly dividend +$0.02 to $0.25 per share.
- Charles Schwab (SCHW) increases quarterly cash dividend +$0.02 to $0.20 per share.
- Chevron (CVX) increases quarterly dividend +$0.08 to $1.42 per share.
- FS Bancorp, Inc. (FSBW) 33.3% Dividend Increase to $0.20 Per Share for the Thirty-Sixth Consecutive Quarterly Dividend.
- Intel (INTC) raises dividend by 5%.
- Jacobs Engineering (J) increases quarterly cash dividend +$0.02 to $0.23 per share.
- Marathon Oil (MRO) increases quarterly cash dividend +$0.01 to $0.07 per share.
- Murphy Oil Corporation (MUR) Increases Dividend 20 Percent.
- NiSource (NI) announces 7% increase to quarterly dividend at $0.235 per share.
- OFG Bancorp (OFG) Increases Regular Quarterly Common Stock Cash Dividend by 25%.
- Teradyne (TER) increases dividend 10% to $0.11 per share.
- Tractor Supply (TSCO) increases dividend 77% to $0.92 per share.
- Arthur J. Gallagher (AJG) ups quarterly dividend to $0.51 from $0.48.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +11 , Dow Jones +14 , NASDAQ +71 and Russell 2000 -0.66. Asia lower and Europe higher ex Germany. VIX Futures are at 27.90 from 29.82 yesterday morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $127.39 from $128.08 yesterday with yields at 1.841% from 1.79% yesterday morning. Bitcoin at $36,795 from $37,839 yesterday morning and -0.69%. As of 8:10 a.m. EST.
Wednesday’s Action – 01/26/22 Close:
- Daily Positive Sectors: Energy, Technology, Financial of note.
- Daily Negative Sectors: Real Estate, Industrial, Consumer Defensive, Consumer Cyclical of note.
- One Month Winners: Energy and Consumer Defensive of note.
- Three Month Winners: Materials, Consumer Defensive and Energy of note.
- Six Month Winners: Energy, Consumer Defensive and Utilities of note.
- Twelve Month Winners: Energy, Real Estate, and Financials of note.
- Year to Date Winners: Energy of note.
Stocks faded after Fed Chair Powell started speaking. The market took the press conference to have a hawkish bent. NASDAQ did end slightly positive. TLT ended down 1.19% at 142.57. Updated 01/26/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: AAPL, V, SYK, MDLZ, CP, KLAC, RMD, AJG, SWKS, WDC, CE, EMN, WRB, HOOD, WAL, RHI, FICO, TFII, JNPR, DLB, OLN, HLI, FFIN, X, GBCI, NATI, ABCB, AX, CATY, HTH, FIBK, FFBC, MITK, BZH of note.
- Friday Before the Open: CVX, CAT, CHTR, CL, LHX, PSX, LYB, WY, VFC, SYF, CHD, BAH, PSXP, ALV, GNTX, ROLL, BMI, PFS, SBSI, WETF of note.
Earnings of Note This Morning:
- Beats: CNX +2.37, HCA +1.23, VLO +0.65, HZO +0.44, AIT +0.38, TDY +0.36, BPOP +0.33, BX +0.31, NTCT +0.27, SAP +0.25, ROK +0.23, DHR +0.15, MA +0.14, DOW +0.12, DOV +0.11, STM +0.11, NUE +0.11, AOS +0.10, BC +0.09, TSCO +0.08, LUV +0.07, BLL +0.07, CMCO +0.06, EXP +0.06, TROW +0.04, NOC +0.04, EXTR +0.04, MKC +0.04, JBLU +0.03, CMCSA +0.03, MTSI +0.02, ALK +0.02, MSCI +0.02, SFNC +0.02, XEL +0.01, RCI +0.01, MO +0.01, MMC +0.01.
- Flat: None of note.
- Misses: ADS (0.98), FLWS (0.45), IP (0.11), MCD (0.11), KEX (0.08), EWBC (0.05), MUR (0.04), TXT (0.02), SHW (0.01), VLY (0.01).
- Still to Report: CFR, OSIS.
- Positive Guidance: APH, KNX, VRTX, XM, WHR, LC, LEVI, AVT, WOLF, AZPN, PLXS, LSTR, MTH, CALX, PKG, CLS, STM, TSCO, BC, DOV, MKC, AIT, TDY, HZO, MTSI
- Negative Guidance: GD, LRCX, AZPN, HXL, CCI, MKSI, TER, TXT, NOC, FLWS, SHW, ROCK
Erlanger Research Advance/Decline Chart: Updated through 01/26/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: GLPG +13%, XM +11%, NOW +10%, RJF +9%, ATRA +8%, LEVI +8%, TWNK +8%, STX +8%, AVT +7%, EEFT +7%, CALX +7%, MEOH +7%, FLEX +6%, STM +5%, RDFN +5%, XLNX +4%, LSTR +4%, CMP +4%, CNC +4%, NFLX +4%, DB +4%.
- Gap Down: EPZM -26%, TER -16%, LC -14%, ZYME -13%, SAP -7%, LRCX -5%, EW -5%.
Insider Action: SAFE sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 01/26/22 close.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.
- Stocks Making The Biggest Moves: MCD, BX, NFLX, TSLA, CMCSA, TSCO . (CNBC)
- 5 Things To Know To Start Your Day. (Bloomberg)
- Five Things to Know this Morning (CNBC)
- Covid-19 Cases fall to 483,261 cases from 930,765 cases a week ago while hospitalizations flat line at 142,595 from 142,595. (CDC)
- Russia is not optimistic about a solution in Ukraine that works. (NYT)
- China says U.S. failing to uphold agreements from recent leader summit. (Bloomberg)
- WTO tells China they can impose $645 million in retaliatory tariffs. (WSJ)
- Apple (AAPL) aims to let small businesses to accept direct payments on devices. (Bloomberg)
- Facebook (FB) gives up on crypto ventures that failed and will sell assets. (WSJ)
- DraftKings (DKNG) to launch mobile sportsbook in Louisiana on Friday.
- Robinhood Snacks looks at Tesla (TSLA) latest earnings and truck troubles. Mattel (MAT) wins back right to make Disney (DIS) princess dolls.
Moving Average Update:
- Score remains at 0%. Updated 01/26/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 9:30 a.m. EST
- Press Briefing by Press Secretary Jen Psaki, 12:30 p.m. EST
- The President receives the Weekly Economic Briefing, 3:30 p.m. EST
- Q4 GDP (Advanced) is due out at 8:30 a.m. EST and is expected to rise to 5.6% from 2.3%.
- December Durable Orders are due out at 8:30 a.m. EST and are expected to fall to -0.5% from 2.5%.
- Initial Jobless Claims 8:30 a.m. EST.
- December Pending Home Sales are due out at 10:00 a.m. EST and are expected to come in at -0.5% from -2.2%.
- EIA Natural Gas Report 10:30 a.m. EST.
Federal Reserve Speakers:
- CACI International (CACI) announces acquisition of ID Technologies for total purchase consideration of $225 million.
- Sallie Mae (SLM) has entered into an agreement with Epic Research to acquire Delaware-based Nitro College.
Meeting & Conferences of Note:
- Sellside Conferences:
- B. Riley Securities Oncology Conference (01/27/22-01/28/22)
- Sequire Metals & Mining Conference
- Stifel Seniors Housing & Healthcare Real Estate Conference
- Previously Announced Conferences:
- TD Securities Global Mining Conference 2022 (01/26/22-01/29/22)
- Degroof Healthcare Conference (01/24/22-01/28/22)
- Lake Street’s Shooting Sports & Public Safety Investor Conference 2022 (01/26/22-01/27/22)
- Company Meetings: GEVO, LCAP, WBA, SGLB, BSTG
- Fireside Chat: HPE.
- Investor/Analyst Day/Calls: GENI, RDNT
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- The Cannabis Science and Industry Congress 2022 (01/27/22-01/29/22)
- 46th Annual Winter Meeting of the Vascular and Endovascular Surgery Society 2022 (01/27/22-01/30/22)
- Previously Posted and Ongoing Conferences:
- Blockchain Conference 2022 (01/26/22-01/27/22)
- Maui Derm for Dermatologists (01/24/22-01/28/22)
- Washington Auto Show
MTop 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:
Wednesday’s Upgrades and Downgrades: