Overnight Summary: The S&P 500 closed Tuesday higher by 0.29% from Monday lower by -0.32% at 4942.81. The overnight high was hit at 4983.50 at 8:05 p.m. EST while the overnight low was hit at 4970.75 at 5:55 a.m. EST. The range overnight was 13 points as of 7:30 a.m. EST. The 10-day average of the overnight range is at 20.60 from 20.90. The average for May-January average was 20.88 from 20.87 during May-November. Currently, the S&P 500 is lower by -3.50 points at 7:30 a.m. EST.
Executive Summary: Intraday action is getting more volatile with more moves intraday, Pay attention as we could be ready to enter a period of more volatility especially with lots of Fedspeak.
- December Trade Balance is due out at 8:30 a.m. EST and expected to come in at -$62 billion from $63.20 billion.
- December Consumer Credit is due out at 3:00 p.m. EST and expected to come in at $16.3 billion from $23.7 billion.
- Fed Speakers:
- Federal Reserve Board of Governors Adriana D. Kugler 11:00 a.m. EST (Appointed September 13, 2023)
- Federal Reserve Boston President Susan M. Collins 11:30 a.m. EST
- Federal Reserve Richmond President Thomas Barkin 12:00 p.m. EST
- Federal Reserve Board of Governors Michelle Bowman 2:00 p.m. EST
Earnings Out After The Close:
- Beats: MSTR +5.60, AIZ +1.18, CRUS +0.88, CMG +0.65, CSL +0.62, AYX +0.54, INSP +0.54, WFRD +0.54, CINF +0.33, HRB +0.29, SNAP +0.25, SONO +0.22, SIMO +0.20, EQH +0.18, ELF +0.17, F +0.17, AB +0.14, CTSH +0.14, AMGN +0.12, JKHY +0.12, TENB +0.11, EXEL +0.10, LUMN +0.10, CNO +0.10, AOSL +0.09, OI +0.09, YUMC +0.09, AEIS +0.08, FTNT +0.08, HIW +0.08, VLTO +0.06, IEX +0.05, INTA +0.05, AZEK +0.04, ATO +0.03, OMC +0.03, FRSH +0.03, ZWS +0.03, DIOD +0.02, DEI +0.02, ESS +0.02, DHT +0.01 of note.
- Flat: DOX +0.00, EW +0.00, QGEN +0.00, REXR +0.00, WU +0.00 of note.
- Misses: NBR (1.55), KREF (0.74), MRCY (0.49), ARWR (0.44), KD (0.24), VFC (0.20), VOYA (0.17), ICHR (0.13), AZPN (0.13), VSAT (0.11), AFG (0.06), WERN (0.05), GILD (0.04), VREX (0.04), PRU (0.03), UDR (0.02), ATEN (0.01), ENPH (0.01), MODN (0.01) of note.
- IPOs Priced or News:
- American Healthcare REIT (AHR-NYSE) prices 56.0 million share IPO at $12 per share, at the low end of the $12-$15 expected range.
- Fortegra (TIPT) Announces Withdrawal of Initial Public Offering.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- FDMT: Prices offering of common stock and warrants for gross proceeds of ~$300 million.
- MLNK: Prices secondary offering of 6,906,015 shares of its common stock by certain of its existing stockholders at $19.00 per share.
- PEPG: Announces Pricing of $80.1 Million Underwritten Offering of Common Stock.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- INPX: Filed Form S-3.. Warrants to Purchase up to 49,131,148 Shares of Common Stock 49,131,148 Shares of Common Stock Issuable Upon Exercise of Warrants.
- REKR: Proposed Follow-On Public Offering of Common Stock. (Blair Bookmanager)
- SDIG: Filed Form RW.
- TLPH: FORM S-3 – Up to 7,792,208 Shares of Common Stock Issuable Upon Exercise of Pre-Funded Warrants.
- Direct Offering:
- NEXI: Closing of $3.67 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules.
- Selling Shareholders of note:
- MLNK: Launch of Proposed Secondary Offering of 6,500,000 Shares by Certain Selling Stockholders and Related Common Stock Repurchase.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings: None of note.
- Debt/Credit Filing and Notes:
- CZR: Announces Full Redemption of 5.750% Senior Secured Notes Due 2025.
- 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:
- SNAP: -31% Earnings
- YUMC: +17% Earnings
- ENPH: +14% Earnings
- AZEK: +13% Earnings
- SONO: +13% Earnings
- FTNT: +12% Earnings
- CRUS: +8.5% Earnings
LUMN: +7.5% Earnings
- F: +6.5% Earnings
- FOXA: +3.5% Forming Joint Venture to Launch Streaming Sports Service in the U.S.
- WBD: +3% Forming Joint Venture to Launch Streaming Sports Service in the U.S.
- MRCY: -13% Earnings
- MLNK: -10% Earnings
- VFC: -7% Earnings
- ARWR: -5% Earnings
- News Items After the Close:
- Stocks making the biggest moves after hours: CMG, SNAP, F, WBD, MRCY, VSAT, VFC, GILD, DIS, FOXA (CNBC)
- Snap’s (SNAP) stock plummets 30% on revenue miss, weak guidance. (MarketWatch)
- Related tickers: PINS -4.2%, TTD -1.1%, ROKU -0.7%, GOOG -0.4%, META -0.2%, MGNI -0.1%
- Ford (F) is reassessing its EV plans, including vertical battery integration. (CNBC)
- Ford (F) tops fourth-quarter estimates, guides toward strong 2024. (CNBC)
- Walt Disney (DIS): ESPN, FOX (FOXA, FOX) and Warner Bros. Discovery (WBD) confirm they have reached an understanding on principal terms to form a new Joint Venture to build an innovative new platform to house a compelling streaming sports service. (WSJ)
- fuboTV (FUBO) slipping by -6.6% following FOXA/WBD/DIS news.
- Moody’s Downgrades New York Community Bancorp’s (NYCB) Long-Term Issuer Rating To Ba2; Most Ratings Remain On Review For Further Downgrade. (Bloomberg)
- After Chipotle’s (CMG)earnings beat, CEO says the chain can double its locations. (CNBC)
- Exchange/Listing/Company Reorg and Personnel News:
- atai Life Sciences N.V. (ATAI) appoints interim CFO Anne Johnson as CFO.
- Exelon (EXC) promotes president and CEO of subsidiary PECO, Mike Innocenzo to COO of Exelon.
- Freeport-McMoRan (FCX) names Kathleen L. Quirk as CEO.
- H & R Block (HRB) revs in-line; CFO to retire.
- Hut 8 Mining (HUT) appoints President Asher Genoot as CEO.
- New York Community (NYCB) appoints Alessandro DiNello as Executive Chairman.
- Prudential (PRU) announces that Yanela Frias, president of Group Insurance, has been appointed executive vice president and CFO.
- V.F. Corp (VFC) provides CFO departure additional details.
- Buyback Announcements or News:
- Alibaba (BABA) approves $25 billion increase to share repurchase program.
- CDW authorizes $750 million share repurchase program increase.
- MeridianLink (MLNK) authorizes a new $125 million repurchase program.
- Prudential (PRU) authorizes up to $1.0 billion for repurchases. (see Dividends)
- Rithm Capital (RITM) announces new $200 million common stock buyback program.
- Yum China (YUMC) plans to repurchase $1.25 billion of common stock in 2024. (see Dividends)
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Amdocs (DOX) Board approved the Company’s next quarterly cash dividend payment at the new increased rate of $0.479 per share.
- American Fincl (AFG) announces special dividend of $2.50 per share.
- Brookfield Asset Management (BAM) 19% Dividend Increase.
- Equinor (EQNR) raises dividend
- Ford Motor (F) announces supplemental dividend of $0.18 per share.
- Gilead Sciences (GILD) increases quarterly cash dividend 2.7% to $0.77 per share from $0.75 per share.
- Midland States Bancorp (MSBI) increases quarterly cash dividend to $0.31 per share from $0.30 per share.
- 3M (MMM) increases quarterly dividend $1.51 per share from $1.50 per share.
- New York Times (NYT) increases dividend by 18%.
- RenaissanceRe (RNR) increases quarterly cash dividend to $0.39 per share from $0.38 per share.
- Prudential (PRU) increases quarterly dividend by 4% to $1.30 per share.
- TotalEnergies SE (TTE) raises dividend.
- Yum China (YUMC) 23% increase in cash dividend.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +8, Dow Jones +14, NASDAQ +60, and Russell 2000 -1. (as of 8:02 a.m. EST). Asia is higher ex Japan and Europe is lower this morning. VIX Futures are at 13.50 from 14 from this morning. Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas flat. US 10-year Treasury sees its yield at 4.131% from 4.154% from yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $42,900 from $42,759 higher by +0.89% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Basic Materials, Real Estate, Healthcare, Consumer Cyclical, Industrials, Energy, Utilities of note.
- Daily Negative Sectors: None of note.
- One Month Winners: Technology, Communication Services, and Industrials of note.
- Three Month Winners: Technology, Communication Services, and Financial of note.
- Six Month Winners: Technology, Communication Services, and Financial of note.
- Twelve Month Winners: Technology, Communication Services, and Financial of note.
- Year to Date Winners: Technology, Communication Services, and Industrials of note.
Stocks edged higher Tuesday, holding firm after a modest retreat. The Dow Jones Industrial Average gained 0.4%, or 141 points. The tech-heavy Nasdaq Composite rose 0.1%. The S&P 500 advanced 0.2%. All three indexes bounced between small gains and losses throughout the day. Chip stocks, lately one of the hottest corners of the stock market, pulled back. The PHLX Semiconductor Index retreated 1.1% but is up nearly 2% so far in February. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Wednesday After the Close:
- Thursday Before the Open:
Earnings of Note This Morning:
- Beats: BG +0.89, EEFT +0.82, MSGE +0.66, UBER +0.50, GFF +0.32, SLAB +0.24, NBIX +0.23, FOXA +0.21, EPC +0.18, DAY +0.18, EMR +0.18, XPO +0.15, CVS +0.14, MCFT +0.14, PERI +0.11, HLT +0.11, NYT +0.09, CG +0.08, KMT +0.05, TTMI +0.05, ARCC +0.03, REYN +0.03, RBLX +0.03, SMG +0.02, RDWR +0.01, VSTS +0.01, VSH +0.01, OMF +0.01, CDW +0.01 of note.
- Flat: HAIN +0.00, MAC +0.00 of note.
- Misses: TGI (0.30), PAG (0.21), ADNT (0.18), BABA (0.15), YUM (0.14), BERY (0.09), GPRE (0.03), PFGC (0.02) of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: ELF, CSL, AZEK, FRSH, AVNW, JKHY, SIMO, PFGC, CRTO, SLAB, MSGE, GETY of note.
- Negative Guidance: SCSC, MRCY, DIOD, AEIS, ENPH, ESS, REXR, UDR, IEX, MODN, MLNK, TGI, HLT, BG, PERI, KMT, CVS, DAY, VSH, MCFT of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: AVNW +16%, YUMC +14%, ENPH +12%, AZEK +12%, CRUS +9%, SONO +9%, FTNT +7%, TENB +7%, IMAB +7%, LUMN +6%, F +6%, HCM +6%, KD +5%, NBR +4%, AMCR +4%, FOXA +4%, ELF +4% of note.
- Gap Down: SNAP -31%, MRCY -16%, PLUS -11%, KREF -11%, FUBO -10%, MLNK -9%, VFC -9%, NYCB -8%, FLNG -7%, CTSH -6%, INTA -6%, EQNR -6%, AEIS -5%, ICHR -5%, VOYA -5%, PINS -4%, ARWR -4% of note.
Insider Action: TCBI, MKL 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: China Replaces Market Regulator to Ease Concerns Over Stock Prices Dropping. (Bloomberg)
- Bloomberg Second Most Shared Story: ESPN, Fox and Warner Bros. Join for Sports Streaming Service (Bloomberg)
- Presidential Candidate Nikki Haley loses Nevada to “None of These Candidates”. (Bloomberg)
- Weekly mortgage demand flattens as interest rates rise. (CNBC)
- Uber (UBER) sees double-digit revenue and earnings growth. (CNBC)
- Yum Brands (YUM) sees weak same-store sales at KFC, Taco Bell and Pizza Hut. (CNBC)
- Bloomberg: Odd Lots: Lots more on why European farmers are furious. (Podcast)
- NPR Marketplace: Department of Energy will track energy used in Crypto Mining. (Podcast)
- Wealthion: Buying a car in 2024. (Podcast)
Podcasts are presented to provide interesting viewpoints on current issues. We do not necessarily support each viewpoint. They are more meant to get you thinking!
Moving Average Update:Back to 88% from 80%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 10:00 a.m. EST
- The President departs the White House en route to Joint Base Andrews, 11:25 a.m. EST
- The President departs Joint Base Andrews en route to New York, New York, 11:45 a.m. EST
- Press Secretary Karine Jean-Pierre and NSC Coordinator for Strategic Communications John Kirby will speak aboard Air Force One en route to New York, New York, 12:00 p.m. EST
- The President arrives in Queens, New York, 12:40 p.m. EST
- The President departs Queens, New York en route to New York, New York, 12:50 p.m. EST
- The President arrives in New York, New York, 1:10 p.m. EST
- The President participates in a campaign reception, 2:30 p.m. EST
- The President participates in a campaign reception, 4:30 p.m. EST
- The President participates in a campaign reception, 5:45 p.m. EST
- The President departs New York, New York en route to Queens, New York, 7:30 p.m. EST
- The President departs Queens, New York en route Joint Base Andrews, 8:00 p.m. EST
- The President departs Joint Base Andrews en route to the White House, 9:05 p.m. EST
- The President arrives at the White House, 9:15 p.m. EST
Economic:
- MBA Mortgage Applications 7:00 a.m. EST
- MBA Mortgage Applications: Composite: +3.7%, Purchase: -0.6%, ReFi: +12.3%
- December Trade Balance is due out at 8:30 a.m. EST and expected to come in at -$62 billion from $63.20 billion.
- EIA petroleum Report 10:30 a.m. EST
- 10-Yr Note Auction 1:00 p.m. EST
- December Consumer Credit is due out at 3:00 p.m. EST and expected to come in at $16.3 billion from $23.7 billion.
Federal Reserve / Treasury Speakers:
- Federal Reserve Board of Governors Adriana D. Kugler 11:00 a.m. EST
- Federal Reserve Boston President Susan M. Collins 11:30 a.m. EST
- Federal Reserve Richmond President Thomas Barkin 12:00 p.m. EST
- Federal Reserve Board of Governors Michelle Bowman 2:00 p.m. EST
M&A Activity and News:
- Bruker (BRKR) has acquired Spectral Instruments Imaging LLC.
Meeting & Conferences of Note:
- Sellside Conferences:
- Guggenheim Biotechnology Conference
- BTG – Brazil CEO Conference
- DA Davidson Midwest Bank Summit
- Stifel Biotech Executive Summit
- Previously posted and ongoing conferences:
- Alliance Global Partners Virtual Technology Conference
- Oppenheimer 2024 Winter CEO and Investor Summit
- Top Shareholder Meetings: CBRG CDXS ENSC HOLI KC
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AMIX
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Industry Meetings:
- WORLDSymposium
- DIAH-Discovery to Innovation in Animal Health
- F5 AppWorld
- Future of Electrification Conference
- Pharma Market Research Conference (PMRC)
- Small-Cap Growth Virtual Investor Conference
- The Annual Meat Evolution Leaders 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:
