Overnight Summary: The S&P 500 closed Monday higher by 0.76% at 4927.93 from Friday lower by -0.07% at 4890.97. The overnight high was hit at 4957.25 at 8:15 p.m. EST while the overnight low was hit at 4946 at 2:20 a.m. EST. The range overnight was 11 points as of 6:20 a.m. EST. The 10-day average of the overnight range is at 19.80 from 21.50. The average for May-December average was 20.87 from 21.43 during May-November. Currently, the S&P 500 is lower by -6.50 points at 6:20 a.m. EST.
Executive Summary: Yesterday in the late afternoon stocks rallied as the Treasury said it would not need as much money as previously requested, for now. Let’s see how that theme runs the rest of the week with the FOMC announcement and presser tomorrow.
- January Consumer Confidence is due out at 10:00 a.m. EST and expected to climb to 113 from 110.70.
- November S&P Case Schiller is due out at 9:00 a.m. EST and is expected to rise by 5.6% from 4.9%.
- The Federal Reserve Open Market Committee (FOMC) holds its latest two day meeting with this being the first day.
Earnings Out After The Close:
- Beats: SMCI +0.54, HTLF +0.40, FFIV +0.39, WWD +0.33, WHR +0.32, NUE +0.24, HP +0.24, SANM +0.15, CLS +0.08, CR +0.07, CALX +0.07, ELS +0.05, CSWC +0.04, HLIT +0.03, GGG +0.01 of note.
- Flat: CLF of note.
- Misses: CADE (2.80), PCH (0.39), ARE (0.01) of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Blue World Acquisition Corporation (BWAQ) Announces Liquidation of Investments Held in the Trust Account into Cash.
- Secondaries Priced:
- CNSP: Announces Pricing of $4.0 Million Public Offering.
- SIDU: Pricing of Public Offering 1,251,700 shares @$4.50. (ThinkEquity Bookmanager)
- VERA: Prices offering of 8,064,517 shares of its Class A common stock at $31.00 per share.
- Notes Priced of note:
- GBDC: Prices Public Offering of $600 Million 6.000% Notes Due 2029.
- Common Stock filings/Notes:
- ALRN: Form S-3 – 7,060,500 Shares of common stock.
- COSM: Filed Form S-3.. 4,874,126 Shares of Common Stock.
- HPCO: Form S-1 – 6,600,295 Shares of common stock.
- LGVN: FORM S-1 – 1,450,172 Shares of Class A Common Stock.
- REE: Filed Form F-3.. Up to 3,552,766 Class A Ordinary Shares
- SIDU: Proposed Public Offering. (ThinkEquity Bookmanager)
- Direct Offering:
- EFTR: Announces Closing of $15 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules.
- Selling Shareholders of note:
- FEAM: Files for 85,310,403 shares of common stock by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- PIXY: FORM S-1 – Mixed Shelf Offering.
- TPET: FORM S-1 – Mixed Shelf Offering.
- Debt/Credit Filing and Notes:
- SATS: Announces Termination of Exchange Offers and Consent Solicitations by DISH DBS Issuer LLC for Certain Existing Senior Notes Issued by DISH DBS Corporation.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- IMCR: Announces proposed convertible senior notes offering of $300 million due 2030.
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:
- CISS: +32% SC 13G Filed by SHN Financial
- AGFY: +24% SC 13D Filed by Jenny Chan
- SANM: +17% Earnings
- RCUS: +16% Gilead and Arcus Announce Amended Collaboration and Equity Investment
- CDTX: +13% Approval of REZZAYO by the MHRA
- SMCI: +10% Earnings
- FFIV: +9% Earnings
- CLS: +8% Earnings
- WWD: +5% Earnings
- SIDU: -34% Proposed Public Offering
- CALX: -22% Earnings
- IMCR: -6% Proposed Convertible Senior Notes Offering
- HLIT: -5.5% Earnings
- SLAB: -5% Delays Q4 2023 Earnings Conference Call
- WHR: -4% Earnings
- CLF: -3% Earnings
- News Items After the Close:
- Stocks making the biggest moves after hours: WHR, FFIV, CLF, WWD, SANM, HLIT, SMCI, GGG (CNBC)
- American Airlines (AAL) to Lay Off 656 Workers as It Consolidates Customer Support. (Bloomberg)
- Super Micro’s (SMCI) monster earnings forecast sends stock soaring yet again. (MarketWatch)
- Shares of tech-systems developer Sanmina (SANM) rally 20% after upbeat outlook. (MarketWatch)
- IBM to Managers: Move Near an Office or Leave Company. (Bloomberg)
- Busy Fed week, tech earnings could dictate the course of this rally, Fundstrat’s Tom Lee says. (CNBC)
- Seadrill Ltd (SDRL) announces multiple contract awards totalling approximately $97.5 million in value.
- Exchange/Listing/Company Reorg and Personnel News:
- Beam Global (BEEM) names Mark Myers as COO.
- Danimer Scientific (DNMR) Receives Continued Listing Standard Notice from NYSE.
- JetBlue Airways (JBLU) promotes Warren Christie to COO, President & COO Joanna Geraghty transitions to CEO effective February 12.
- Levi Strauss (LEVI) announces that Michelle Gass has assumed role of president and CEO.
- ODP Corp (ODP): Gerry Smith will resume his position as CEO, following temporary medical leave.
- Silicon Labs (SLAB) delaying its scheduled Q4 earnings call; determines a material weakness in internal control.
- Trimble (TRMB) Announces Board Additions and Capital Allocation Update.
- Webuy (WBUY) Receives Nasdaq Notification Regarding Minimum Bid Requirements.
- Buyback Announcements or News:
- HCA: Board of Directors has authorized an additional share repurchase program for up to $6 billion of the Company’s outstanding common stock.
- Northrop Grumman (NOC) Announces $1 Billion Accelerated Share Repurchase Agreement.
- PulteGroup (PHM) Directors has approved a $1.5 billion increase to the Company’s share repurchase authorization.
- Trimble (TRMB) authorizes $800 million share repurchase.
- Stock Splits or News:
- CareMax (CMAX) Announces 1-for-30 Reverse Stock Split.
- Reverse split stock for today GRI 1/7.
- Dividends Announcements or News:
- Capital Southwest Corp (CSWC) In consideration of the strong performance of our portfolio, the Board of Directors has again declared a regular quarterly dividend of $0.57 per share for the March 31, 2024 quarter.
- Crane (CR) increases dividend by 14%.
- General Motors (GM) increases quarterly cash dividend 33% to $0.12 per share from $0.09 per share.
- Nomad Foods (NOMD) has declared an initial quarterly cash dividend of $0.15 per share.
- Oshkosh (OSK) raises quarterly dividend by 12%.
- Shutterstock (SSTK) increases quarterly cash dividend to $0.30 per share from $0.27 per share.
- Southern Copper (SCCO) dividend declines by 20% to $0.80
- UPS will pay a first-quarter 2024 dividend of $1.63 per share on all outstanding Class A and Class B shares.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -6, Dow Jones -53, NASDAQ 15, and Russell 2000 +1. (as of 7:55 a.m. EST). Asia is higher ex South Korea while Europe is higher this morning. VIX Futures are at 14.15 from 14.13 this morning. Gold is higher with Silver lower and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher as well. US 10-year Treasury sees its yield at 4.064% from 4.108% yesterday morning. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $43,470 from $42,233 higher by 0.85% this morning..
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Consumer Cyclical, Healthcare, Communication Services, Real Estate, utilities, Industrials of note.
- Daily Negative Sectors: None of note.
- One Month Winners: Communication Services, Technology, and Healthcare of note.
- Three Month Winners: Technology, Communication Services, 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: Communication Services, Technology, and Healthcare of note.
Stocks rose to start the week, with investors bracing for busy days ahead. Both the S&P 500 and the Dow Jones Industrial Average notched records. The benchmark index gained 0.8% Monday, while the Dow added 0.6%, or 224 points. The tech-heavy Nasdaq Composite increased 1.1%. Investors are bracing for a week marked by earnings from large technology companies, a Federal Reserve meeting and economic data. Around 100 S&P 500 companies are due to report this week, including five of the so-called Magnificent Seven tech stocks that have helped propel markets higher. Nearly half of the S&P 500 will have reported by the end of the week. Alphabet (GOOGL), and Microsoft (MSFT)’s results are due Tuesday, while Meta Platforms (META), Amazon.com (AMZN) and Apple (AAPL) are expected Thursday. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: HCA +0.85, MSCI +0.39, PFE +0.28, MAN +0.26, DHR +0.18, MPLX +0.15, HUBB +0.11, MBUU +0.10, GM +0.08, JBLU +0.08, PHM +0.07, MDC +0.06, CVLT +0.05, UPS +0.01, PNR +0.01, AOS +0.01 of note.
- Flat: GLW of note.
- Misses: PII (0.59), JCI (0.27), HOPE (0.03) of note.
- Still to Report: FCF, SYY of note.
Company Earnings Guidance:
- Positive Guidance: CDLX, IRBT, COHU, AGS, SANM, SMCI, FFIV, CR, CLS, JBLU, GM, HUBB, HCA of note.
- Negative Guidance: WHR, HLIT, CALX, PII, UPS, PFE, JCI, PNR, GLW, MBUU, LCII of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: RCUS +15%, SANM +15%, SMCI +10%, FFIV +10%, CLS +8%, NBTX +6%, WWD +6%, BCAL +5%, HP +4%, BIGC +4% of note.
- Gap Down: CALX -21%, IMCR -6%, HLIT -5%, FEAM -5%, PCH -5%, UPS -4%, WHR -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.
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things To Know Before the Stock Market Opens Today. (CNBC)
- Bloomberg Lead Story: Israeli Military Predicts It Will Take All of 2024 to Eliminate Hamas. (Bloomberg)
- Bloomberg Most Shared Story: Elon Musk says first Neuralink patient received implant in brain. (Bloomberg)
- China markets show pressure is growing for Beijing to do more. (Bloomberg)
- JP Morgan Quants warn of a Dot.com style concentration of US stocks. (Bloomberg)
- Morgan Stanley turns bullish on banks over capital rules. (Bloomberg)
- Futures muted before earnings test for Wall Street: Markets Wrap. (Bloomberg)
- Senator Elizabeth Warren (D- MA) calls on Fed Chairman Powell to cut rates. (FOX)
- General Motors (GM) beats Wall Street estimates, forecasts strong profit in 2024. (Bloomberg)
- JetBlue (JBLU) swings to a narrower than expected loss but stock still falls. (MarketWatch)
- Bloomberg: Merryn Talks Money: Ed Yardeni saw Roaring 20s may be back. (Podcast)
- NPR Marketplace: More people are buying EVs but not enough mechanics to fix. (Podcast)
- NY Times Daily: Trump’s Voters versus Haley’s Donors. (Podcast)
- Wealthion: Bull Market’s Next Move: Growth, Inflation & Tech Stocks. (Podcast)
Moving Average Update: Score hits 100%.
Geopolitical:
- President’s Public Schedule:
- The President departs the White House en route to Joint Base Andrews, 9:45 a.m. EST
- The President departs Joint Base Andrews en route to Palm Beach, Florida, 10:05 a.m. EST
- The President arrives in Palm Beach, Florida, 12:15 p.m. EST
- The President participates in a campaign reception, 2:00 p.m. EST
- The President departs Palm Beach, Florida en route to Miami, Florida, 3:25 p.m. EST
- The President arrives in Miami, Florida, 4:00 p.m. EST
- The President participates in a campaign reception, 6:45 p.m. EST
- The President departs Miami, Florida en route to Joint Base Andrews, 8:05 p.m. EST
- The President departs Joint Base Andrews en route to the White House, 10:30 p.m. EST
- The President arrives at the White House, 10:40 p.m. EST
Economic:
- Redbook Sales 8:55 a.m. EST
- FHFA HPI 9:00 a.m. EST
- November S&P Case Schiller is due out at 9:00 a.m. EST and is expected to rise by 5.6% from 4.9%.
- January Consumer Confidence is due out at 10:00 a.m. EST and expected to climb to 113 from 110.70.
- JOLTS 10:00am ETAPI Crude Oil Data 4:30 p.m. EST
- The Federal Reserve Open Market Committee (FOMC) holds its latest two day meeting with this being the first day.
Federal Reserve / Treasury Speakers:
- The Federal Reserve Open Market Committee (FOMC) holds its latest two day meeting with this being the first day.
M&A Activity and News:
- ePlus (PLUS) acquires PEAK Resources.
Meeting & Conferences of Note:
- Sellside Conferences:
- Microcap Conference
- Previously posted and ongoing conferences:
- Piper Sandler Biopharma Mogul Summit
- UBS Latin America Investment Conference
- Top Shareholder Meetings: ABIO BCTX HRL POL RDUS TNON
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: COYA KURA RHP
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Microbiome Movement Drug Development Summit
- Nuclear Energy Institute’s Nuclear Financing Summit
- 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:
