Overnight Summary: The S&P 500 closed Thursday lower by -0.88% at 4081.50 from Wednesday lower by -1.11% at 4117.86. The overnight high of 4098 was hit at 3:20 a.m. EST. The low was hit at 4062.50 at 7:20 0.m. EST, a range of ~32 points high to low. At 7:15 a.m. EST, the S&P 500 (mini) was lower by -29.25 points which is -0.71%.
New Stats of Short Interest: NYSE saw its latest short interest data drop -1.70% and NASDAQ fell -2.29%. During the reporting period of January 13th through January 27th the S&P 500 rose 1.79%. We will show a chart on Monday of the absolute positions.
Earnings Out After The Close:
- Beats: BHF +1.20, MTD +0.42, AYX +0.33, LGF.A +0.27, ONTO +0.23, TEX +0.22, MSI +0.17, BE +0.16, PRO +0.15, QLYS +0.11, SPSC +0.09, VRSN +0.09, COUR +0.08, DXCM +0.06, DOCS +0.05, PYPL +0.04, CRSR +0.04, MHK +0.03, PECO +0.02, G +0.02, OFC +0.01, CUZ +0.01, ROAD +0.01, NET +0.01 of note.
- Flat: FLO, KN, REG, STEP, VTR of note.
- Misses: LYFT (0.89), EXPE (0.44), YELL (0.20), MODG (0.11), CC (0.10), NWSA (0.04), RBC (0.02), CBT (0.01), EQR (0.01), YELP (0.01) of note.
- IPOs Priced or News:
- Enlight Renewable Energy Ltd. (ENLT) prices 14.0 million share IPO at $18 per share, expected $21.
- Mineralys Therapeutics (MYLS) 12 Million share IPO priced at $16.00.
- New SPACs launched/News:
- Goal Acquisitions Corp. (PUCK) and Digital Virgo announce confidential submission of Registration Statement in connection with the proposed business combination.
- Secondaries Priced:
- APPH: pricing of $40 million underwritten public offering of common stock – Priced @$1.
- TRNO: Prices offering of 5.0 mln shares of common stock at $62.50 per share.
- Notes Priced of note:
- NBR: Announces Pricing of its Offering of $225,000,000 Exchangeable Senior Unsecured Notes.
- WYNN: Pricing of Private Offering of $600 Million Aggregate Principal Amount of Wynn Resorts Finance 7.125% Senior Notes due 2031.
- Common Stock filings/Notes:
- ASPS: Proposed Public Offering of Common Stock. (Guggenheim bookmanager)
- BLNK: Announces Closing of Public Offering of Common Stock for Gross Proceeds of $100 Million.
- TRNO: Offering of 5,000,000 Shares of Common Stock. (GS and Keybanc bookmanager)
- Direct Offering: None of note.
- Selling Shareholders of note:
- CFRX: Filed Form S-3.. 162,790,695 Shares Common Stock Offered by the Selling Securityholder.
- Private Placement of Public Entity (PIPE):
- UTRS: Closes $30 Million Private Placement of Common Stock.
- Mixed Shelf Offerings:
- AMGN: Filed Form S-3ASR. Mixed Shelf.
- ANY: Filed Form S-3.. $100 Million Mixed Shelf.
- Debt Filing/Notes:
- NBR: Offering of its $200,000,000 Exchangeable Senior Unsecured Notes.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- WT: Private Offering of $130.0 Million of Convertible Senior Notes.
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: NET +11%, BHF +10%, YELP +10%, AYX +9%, BE +8%, CRSR +7%, INDI +6%, LGF.A +5%, REG +4%, DXCM +4% of note.
- Trading Down: LYFT -30%, PHAT -22%, BARK -17%, ASPS -11, DOCS -7%, KN -7%, YELL -6%, FLO -4% of note.
- News After The Close:
- Stocks making the biggest moves after hours: LYFT, EXPE, YELP, PYPL, MSI, NET. MODG (CNBC)
- LYFT shares tank 30% after company issues weak guidance. (CNBC)
- Microsoft (MSFT) Kills Its Industrial Metaverse Team After 4 Months. (The Information)
- PYPL Will Not Provide Full-Year Revenue Guidance: Acting CFO and CEO Retiring. (WSJ)
- Micron (MU) discloses executive pay cuts.
- Coinbase (COIN) shares fall as SEC takes crypto staking action against Kraken. (CNBC)
- Silicon Valley, NYC Real Estate Sag as 13-Year Global Rally Ends. (Bloomberg)
- Federal Reserve Board releases hypothetical scenarios for its 2023 bank stress tests. (Link)
- Assets Under Management – Monthly Reporting:
- VCTR $161.4B, AB $680 billion a 5% increase
- APAM $138.1b
- IVZ $1,482.7b a 5.2% increase
- VRTS $157.8b
- BEN $1,451.9b vs $1,387.7b
- LAZ $230.6b vs $216.1b
- Exchange/Listing/Company Reorg and Personnel News:
- Adecoagro S.A. (AGRO) announces Emilio Federico Gnecco as CFO.
- Canon (CAJ) passed a resolution to apply for the delisting of its ADRs from the NYSE.
- Eliem Therapeutics (ELYM) Provides Strategic Update and Announces Leadership Transition.
- Hyzon Motors (HYZN) Announces Receipt of Nasdaq Listing Determination; Company to Request Hearing and Further Stay.
- Mitek Systems (MITK) files to delay its 10-Q.
- Newell Brands (NWL) announces the appointment of Chris Peterson, currently President, to serve as President and Chief Executive Officer.
- OSS Chief Executive Officer David Raun to Step Down Following Appointment of Successor.
- PYPL: President and CEO Dan Schulman Announces Intention to Retire from PayPal at Year-End.
- Radiant Logistics (RLGT) filed to delay its 10-Q.
- Swvl (SWVL) Regains Compliance with Nasdaq Minimum Bid Price Rule.
- Tractor Supply (TSCO) announces three-year contract extension for President and CEO Hal Lawton and Board succession plans.
- Buyback Announcements or News:
- Amedisys (AMED) Board of Directors Authorizes $100 Million Stock Repurchase Program.
- CTS Corporation (CTS) Board of Directors Authorizes New Share Repurchase Plan, $50 million of its common stock.
- Genpact (G) Announces increase of $500 mln to existing share repurchase authorization. (See Dividend)
- QLYS: Announces $100 Million Increase to Share Repurchase Program.
- Robert Half (RHI) Announces Common Stock Repurchase Authorization. (See Dividend)
- Tucows (TCX) Announces $40 Million Stock Buyback Program.
- Stock Splits or News:
- GFAI trading reverse split price.
- Dividends Announcements or News:
- Allegion’s (ALLE) Board Increases Quarterly Dividend by 10%.
- Community Healthcare Trust (CHCT) raises annual dividend to $1.79 per share, a $0.01 raise.
- Enbridge (ENB) increased its 2023 quarterly dividend by 3.2% to CAD0.8875.
- First Bancorp (FBP) increases quarterly cash dividend to $0.14 per share, up $0.02.
- Genpact (G) increases quarterly dividend to $0.1375 from $0.125/share.
- LMP Automotive Holdings, Inc. (LMPX) Declared a Special Cash Dividend of $4.68 Per Share .
- Magna (MGA) Board of Directors declared a fourth quarter dividend of $0.46 per Common Share, up $0.01.
- Murphy USA Inc. (MUSA) Announces Dividend Increase of $0.02 to $0.37 per share.
- Park Aerospace (PKE) raises quarterly dividend by $0.10; declares special dividend for $1.00 per share.
- Robert Half (RHI) Announce Quarterly Dividend.
- RPT Realty (RPT) increases quarterly cash dividend $0.01 to $0.14 per share.
- Terex (TEX) Announces 15% increase in dividend.
- Victory Capital (VCTR) increases quarterly dividend 28% to $0.32 per share.
- Warrior Met Coal (HCC) Announces 17% Increase in Regular Quarterly Cash Dividend.
- Weyerhaeuser (WY) raises quarterly dividend by 5.6% to $0.19 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -29, Dow Jones -174, NASDAQ -140, and Russell 2000 -12. (as of 7:58 a.m. EST). Asia is lower ex the Nikkei. Europe is lower. VIX Futures are at 22.42 from 20.80 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent are higher with Natural Gas lower. US 10-year Treasury sees yields at 3.70% from 3.59% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $21,755 from $22,680 yesterday, lower by -1.07%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: None of note.
- Daily Negative Sectors: Communication Services, Utilities, Basic Materials, Real Estate, Financial of note.
- One Month Winners: Technology, Communication Services, Consumer Cyclical of note.
- Three Month Winners: Basic Materials, Communication Services, Technology of note.
- Six Month Winners: Basic Materials, Energy, and Financial of note.
- Twelve Month Winners: Energy, Basic Materials of note.
- Year to Date Winners: Communication Services, Consumer Cyclical, and Technology of note.
U.S. stocks on Thursday extended recent losses, pausing their year-to-date rebound as investors debated the outlook for interest rates and reviewed another batch of corporate earnings. The three major indexes opened higher, but turned lower intraday. The S&P 500 fell 36.36 points, or 0.9%, to 4081.50. The Dow Jones Industrial Average eased lower 249.13 points, or 0.7%, to 33699.88. The technology-heavy Nasdaq Composite Index lost 120.94 points, or 1%, at 11789.58 after being up as much as 1.3% at its intraday high. (WSJ)
Click here for a video explanation of Erlanger Value Lines.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
Earnings of Note This Morning:
- Beats: FTS +0.20, SPB +0.07, PRLB +0.05, NWL +0.05, WPC +0.03, IQV +0.02 of note.
- Flat: GPN of note.
- Misses: COOP (0.69), MGA (0.17), SLVM (0.13), ESNT (0.12), ENB (0.10), SXT (0.06) of note.
- Still to Report: None of note.
- Positive Guidance: NSP, SPSC, YELP, AYX, MSI, TEX, PYPL, MGI, MTD,FLS, WPC of note.
- Negative Guidance: ABBV, DOCS, G, KN, ONTO, LYFT, VTR, COUR, EQR, OFC, BARK, SPB, IQV, NWL of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: AYX +10%, YELP +9%, LGF.A +9%, NET +7%, BE +6%, INDI +5%, CRSR +5%, SVM +5%, REG +5%, CUZ +4%, DXCM +4%, MODG +4% of note.
- Gap Down: LYFT -33%, YELL -23%, APPH -18%, PHAT -18%, ASPS -13%, BARK -12%, KN -7%, DOCS -6%, ONTO -5%, COUR -4%, VRSN -34% of note.
Insider Action: No stock sees Insider buying with dumb short selling. COIN 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 premarket moves: LYFT EXPE YELP NET FREY AFRM DB DXCM NWL (CNBC)
- 5 things to know before the stock market opens. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Stock Futures Fall With Bonds on Hawkish Bets (Bloomberg)
- Bloomberg Most Read Story: US Takes Custody of Venezuela Embassy in Wake of Guaido Vote. (Bloomberg)
- China insists that balloon had civilian use as U.S. makes spy case. (Bloomberg)
- Russia to slash oil output in response to sanctions. (Bloomberg)
- Federal Reserve to employ an “exploratory market shock” into stress tests. (Bloomberg)
- Adidas sees shares drop over unsold Yeezy stock as could lose $1.2 billion. (CNBC)
- Yahoo to layoff 20% of staff by year end. (CNBC)
Moving Average Update:
- Score pulls back to 42% from 74% and 94% on Tuesday.
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 a.m. EST
- The President and The Vice President welcome the nation’s Governors to the White House during the National Governors Association Winter Meeting, 11:15 a.m. EST
- Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EST
- The President and The First Lady welcome President Luiz Inácio Lula da Silva and Ms. Janja Lula da Silva of Brazil to the White House to further strengthen the close relationship between the United States and Brazil, 3:30 p.m. EST
- The President holds a bilateral meeting with President Luiz Inácio Lula da Silva of Brazil, 3:50 p.m. EST
- The February University of Michigan Consumer Sentiment is due out at 10:00 a.m. EST and is expected to rise to 65 from 64.90.
- Baker Hughes Rig Count 1:00 p.m. EST
- January Treasury Budget is due out at 2:00 p.m. EST and last month came in at $-85.05 billion.
Federal Reserve / Treasury Speakers:
- Federal Research Board of Governors Christopher Waller 12:30 p.m. EST
- Federal Reserve Philadelphia President Patrick Harker 4:00 p.m. EST
- Equifax (EFX) Signs Definitive Agreement to Acquire Boa Vista Servicos for $596 million.
- Flowserve (FLS) to Acquire Velan in an All-cash Transaction Valued at Approximately $245 million.
- indie Semiconductor (INDI) to Acquire GEO Semiconductor.
Meeting & Conferences of Note:
- Sellside Conferences:
- BMO Virtual Biopharma Spotlight Series 2023
- Previously posted and ongoing conferences:
- Piper Sandler Biopharma Mogul Ski Summit
- Baird Private Company Technology & Services Conference
- Company Meetings: None of note.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: KBCSY
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
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:
Previous Day’s Upgrades and Downgrades: