Overnight Summary: Welcome to the end of Groundhog Week. Last night S&P 500 futures peaked up 30 Points (4356) at 11:00 p.m. and now they are lower by -34 S&P points (4300). At least, the S&P 500 did not fall 100 points, only off by 56 points. Asia was lower and Shanghai sold off in the last hour, now at a 16 month low. Europe is lower as Germany saw its GDP drop -0.70% against a consensus of -0.30%.
Earnings Out After The Close:
- Beats: BZH +0.47, FICO +0.34, WRB +0.34, AAPL +0.21, ETD +0.19, WDC +0.18, KLAC +0.14, FIBK +0.12, V +0.11, TEAM +0.11, RHI +0.08, HTH +0.07, AX +0.06, MITK +0.06, CATY +0.06, NATI +0.05, AJG +0.03, JNPR +0.03, BOOT +0.02, FFBC +0.02, FFIN +0.01.
- Flat: ABCB +0.00, FHI +0.00, WAL +0.00.
- Misses: X (0.61), OLN (0.56), HOOD (0.19), CE (0.15), GBCI (0.11), EMN (0.06), RMD (0.05), CP (0.02), MDLZ (0.02), SYK (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes: None of note.
- Pricing of Over-Allotment: None of note.
- Direct Offering:
- AMTI: Filed Form 8K.. Sales Agreement $150 Million with JMP.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- VCNX: Announces $6.6 Million Private Placement.
- Mixed Shelf Offerings: None of note.
- Convertible Offering & Notes Filed:
- BHC: Pricing Of Private Offering Of Senior Secured Notes.
- 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: PRVB +15%, MITK +10%, TEAM +10%, CLFD +9%, BZH +8%, NATI +7%, OSCR +6%, AAPL +5%, V +4%, JNPR +4%, MATX +3%.
- Trading Down: HOOD -12%, WDC -8%, RMD -6%, OLN -4%, NRIX -3%.
- News After The Close:
- Stocks making the biggest moves after the bell: HOOD, AAPL, V, WDC (CNBC)
- Apple (AAPL) reports a parade of sales records as earnings top $30 billion for the first time, stock gains. (Market Watch)
- Apple (AAPL) CFO: Easing Of Supply Chain Issues In Current Qtr Due To Ongoing Work With Suppliers – Supply Chain Issues Cost More Than $6 billion In quarter, In Line With Guidance.
- Elon Musk says it’s more important for Tesla (TSLA) to make a robot than new car models this year. (CNBC)
- Robinhood (HOOD) shares tank 15% after it loses active users, forecasts weak revenue. (CNBC)
- Exchange/Listing/Company Reorg and Personnel News:
- The Home Depot (HD) Names Ted Decker CEO, Effective March 1, 2022.
- Harvard Biosci (HBIO) Ken Olson, COO, will be resigning for personal reasons effective January 31, 2022.
- Western Digital (WDC) Announces CFO Transition.
- Okta (OKTA) Interim CFO Brett Tighe named fulltime CFO.
- Buyback Announcements:
- HomeStreet (HMST) expands share repurchase program by $75 million.
- Matson (MATX) announces the addition of 3 million shares to existing share repurchase program.
- Omega (OHI) Authorizes $500 Million Stock Repurchase Program.
- CLFD: increases repurchase program .
- X: the Board of Directors has authorized a new $500 million stock repurchase program to commence in the first quarter 2022 under which the Company’s outstanding common stock may be repurchased from time to time at the discretion of management.
- Stock Splits: None of note.
- Dividends Announcements:
- FIS Increases Quarterly Dividend 21% to $0.47 Per Share.
- HomeStreet (HMST) raises dividend by 40%.
- Juniper Networks (JNPR) increases dividend.
- Matson (MATX) announces quarterly dividend of $0.30 per share.
- Omega (OHI) Announces Quarterly Dividend.
- Pacific City Financial (PCB) increases quarterly cash dividend by $0.03 to $0.15 per share.
- Polaris (PII) Declares Increase in Cash Dividend.
- Simmons First National (SFNC) increases quarterly cash dividend $0.01 to $0.19 per share.
- Wintrust Financial (WTFC) increases quarterly cash dividend by $0.03 to $0.34 per share.
- Alliance Resources (ARLP) ups quarterly cash distribution to $0.25 from $0.20.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -41 , Dow Jones -337, NASDAQ -110 and Russell 2000 -28.79. Asia mostly lower ex Japan and Europe lower. VIX Futures are at 29.75 from 27.90 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% unchanged from yesterday morning. Bitcoin at $36,360.43 from $36,795 yesterday morning and +1.26%. As of 8:10 a.m. EST
Thursday’s Action – 01/27/22 Close:
- Daily Positive Sectors: Energy, Utilities, Consumer Defensive of note.
- Daily Negative Sectors: Consumer Cyclical, Real Estate, Technology, Industrials, Financial 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.
Early strength dissipated and the SP closed lower for the third straight day. All indexes gained as much as 1.5% to see those positive green returns vanish and end in negative territory. UNG starting to get jiggy again. Updated 01/27/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
- Monday Before the Open: OTIS, ATKR, AKTS of note.
Earnings of Note This Morning:
- Beats: CHTR +1.81, PSX +0.99, CAT +0.43, ALV +0.13, VFC +0.13, SBSI +0.12, SYF +0.07, CHD +0.04, BAH +0.03, PFS +0.02, GNTX +0.01, WETF +0.01, WY +0.01.
- Flat: CL +0.00.
- Misses: CVX (0.57), LYB (0.23), MOG.A (0.07).
- Still to Report: BMI.
- Positive Guidance: None of note.
- Negative Guidance: WDC, KLAC, SYK, BAH, CHD, GNTX
Erlanger Research Advance/Decline Chart: Updated through 01/27/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: ALXO +11%, CLFD +10%, NATI +9%, FFBC +9%, TEAM +8%, PRVB +8%, MITK +8%, WTFC +7%, BZH +5%, OSCR +4%, V +4%, FIXX +3%, AAPL +3%, ETD +3%.
- Gap Down: HOOD -15%, WDC -10%, WAL -5%, OLN -5%, SYK -4%, NRIX -3%.
Insider Action: SAFE sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 01/27/22 close.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.
- Stocks Making The Biggest Moves: CAT, CVX, AAPL, VFC, V, MDLZ . (CNBC)
- 5 Things To Know To Start Your Day. (Bloomberg)
- Five Things to Know this Morning (CNBC)
- Covid-19 Cases fall to 561,181 cases from 768,190 cases a week ago while hospitalizations actually fell to 139, from 143,874. (CDC)
- China to apply overseas IPO rules to Hong Kong. (Bloomberg)
- President Biden warns Ukrainian President there is a high degree of likelihood that Russia will invade when the ground freezes over. Says U.S. also will not send troops or weapons. (The Washington Post)
- The White House looks to issue an Executive Order on cryptocurrency. (Barron’s)
- Federal Judge blocks oil leases in the Gulf of Mexico. (WSJ)
- Congress has to past another continuing resolution to avoid a government shutdown on February 18th (three weeks out). (The Hill)
- Global EV sales rose to 4.5 million from 2.1 million in 2020. (CNN)
- The tech sell-off has some venture capitalists worried the good times, a 650 IPO year, may be coming to an end. (CNBC)
- Robinhood Snacks looks at Apple (AAPL) best sales quarter ever. Also, looks at McDonalds (MCD) earnings.
Moving Average Update:
- Score remains at 0%. Updated 01/27/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 10:15 a.m. EST
- The President departs the White House en route Joint Base Andrews and en route West Mifflin, Pennsylvania, 11:10 a.m. EST
- Principal Press Secretary Karine Jean-Pierre will speak aboard Air Force One en route West Mifflin, Pennsylvania, 11:45 a.m. EST
- The President visits Carnegie Mellon University at Mill 19, 1:25 p.m. EST
- The President delivers remarks on strengthening the nation’s supply chains, revitalizing American manufacturing, creating good-paying, union jobs, and building a better America, including through the Bipartisan Infrastructure Law, 2:00 p.m. EST
- The President departs West Mifflin, Pennsylvania en route Joint Base Andrews, 3:05 p.m. EST
- The President arrives at the White House, 4:20 p.m. EST
- December Personal Income is due out at 8:30 a.m. EST and is expected to rise to 0.5% from 0.4%.
- December PCE -Core is due out at 8:30 a.m. and is expected to fall to 0.4% from 0.5%. Important note – this is the Fed’s favorite inflation stat to follow and will impact market action.
- Employment Cost Index 8:30 a.m. EST
- January University of Michigan Consumer Sentiment (Final) is due out at 10:30 a.m. EST and is expected to remain at 68.80.
- Baker Hughes Rig Count 1:00 p.m. EST
Federal Reserve Speakers:
Meeting & Conferences of Note:
- Sellside Conferences:
- Deutsche Bank AG Q4 2021 Conference Call for Fixed Income investors
- Previously Announced Conferences:
- B. Riley Securities Oncology Conference (01/27/22-01/28/22)
- TD Securities Global Mining Conference 2022 (01/26/22-01/29/22)
- Degroof Healthcare Conference (01/24/22-01/28/22)
- Company Meetings: None of note.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ADV, ELYS, MRVI, SCHW
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- 57th Annual Cleveland Academy of Osteopathic Medicine Annual Winter Conference 2022 (01/29/22)
- Previously Posted and Ongoing Conferences:
- 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
- Maui Derm for Dermatologists (01/24/22-01/28/22)
- Washington Auto 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 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: