Overnight Summary: The S&P 500 closed Wednesday higher by 0.96% at 5000.62 from Tuesday lower by -1.37% at 4953.17. The overnight high was hit at 5029.50 at 3:35 a.m. EST while the overnight low was hit at 5011 at 8:20 p.m. EST. The range overnight was 18 points as of 6:35 a.m. EST. The 10-day average of the overnight range is at 20.24 from 19.75. The average for May-January average was 20.88 from 20.87 during May-November. Currently, the S&P 500 is higher by +6.75 points at 6:35 a.m.
Executive Summary: Yesterday’s rebound was typical after a big loss. Today is more important to show us that the rally is still in play. Expect some volatility today.
- January Retail Sales are due out at 8:30 a.m. EST and is expected to fall to -0.2% from 0.6%.
- February NY Fed Manufacturing is due out at 8:30 a.m. EST and is expected to improve to -9.00 from -43.70.
- January Industrial Production is due out at 9:15 a.m. EST and is expected to rise to 0.40% from 0.10%.
- February NAHB Housing Market Index is due out at 10:00 a.m. EST and is expected to improve to 46 from 44.
- Federal Reserve Board of Governors Christopher Waller 1:15 p.m. EST
Earnings Out After The Close:
- Beats: ALB +0.87, PEGA +0.78, ACGL +0.46, TWLO +0.29, MFC +0.29, CW +0.24, AEL +0.24, KAI +0.23, HUBS +0.22, RGLD +0.19, MSA +0.19, NUS +0.18, PLMR +0.17, TRIP +0.16, APP +0.14, VECO +0.09, AR +0.08, FROG +0.07, OXY +0.07, AWK +0.06, CXT +0.06, NMIH +0.05, SUM +0.05, EQIX +0.04, UDMY +0.04, AM +0.04, CSCO +0.03, AMWL +0.03, UPWK +0.03, ET +0.03, TYL +0.03, INFA +0.02, FCPT +0.02, KGC +0.02, FSLY +0.02, ROL +0.01, ROIC +0.01, VTR +0.01, WH +0.01, PGRE +0.01 of note.
- Flat: IRT +0.00, MGY +0.00 of note.
- Misses: WFG (1.59), ATUS (0.32), HCC (0.23), OEC (0.17), ADPT (0.15), MTW (0.14), NRDS (0.13), CF (0.12), HLF (0.12), QS (0.04), SON (0.02), HL (0.02) of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Atlantic Coastal Acquisition Corp. (ACAH) Receives Expected Nasdaq Delisting Determination.
- Digital World Acquisition Corp (DWAC) announced effectiveness of Form S-4 Registration Statement for the proposed business combination with Trump Media & Technology Group.
- Secondaries Priced:
- AGYS: Prices secondary offering of 867,729 shares of its common stock by certain investment funds resulting in gross proceeds to the selling stockholders of $72.7 million.
- KALV: 7,016,312 shares of its common stock at a price to the public of $15.25 per share.
- PRME: Prices upsized offering of common stock and warrants.
- REVG: Prices secondary offering of 16.0 million shares of common stock at $16.50 per share.
- Notes Priced of note:
- AIR: Prices Upsized Offering of Senior Notes to Finance Triumph Product Support Acquisition.
- BMY: Prices $13 Billion of Senior Unsecured Notes.
- Common Stock filings/Notes:
- ASTI: Filed Form S-1.. Selling Units.
- KALV: Proposed Public Offering of Common Stock and Pre-Funded Warrants. (Jefferies, Leerink Stifel and Cantor bookmanager)
- ONCO: Filed Form S-1.. 5,121,601 Shares of Common Stock.
- PRME: Announces $125 million proposed public offering of common stocks.
- SNMP: FORM RW.
- WINT: Filed Form S-3.. Up to 608,272 Shares of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note:
- AGYS: Secondary Offering of Common Stock by Selling Stockholders.. 867,729 shares. (BTIG Underwriter)
- BCDA: FORM S-3 – 3,019,466 Shares of Common Stock Offered by the Selling Securityholders.
- FLME: Files for 65,268,780 shares of common stock by selling shareholders; relates to warrants.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- AIG: Files mixed shelf securities offering.
- BTCS: FORM S-3 – $250,000,000 Mixed Shelf Offering.
- DM: Filed Form S-3.. $250,000,000 Mixed Shelf.
- GRYP: FORM S-3 – $100,000,000 Mixed Shelf Offering.
- NDRA: Filed Form S-3.. $50,000,000 Mixed Shelf.
- TCBI: Files mixed shelf securities offering.
- Debt/Credit Filing and Notes: None of note.
- Tender Offer:
- BMY: Recommends stockholders reject “mini-tender” offer by Tutanota LLC.
- 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:
- NNOX: 71% NVDA Shows position in name
- UCAR: +47% SC 13G Filed by Johnny Jia
- SOUN: +39% NVDA and Softbank Shows position in name
- INFA: +18% Earnings
- FROG: +16% Earnings
- APP: +15% Earnings
- RXRX: +14% NVDA Shows position in name
- KALV: +9% Public Offering of Common Stock and Pre-Funded Warrants
- TRIP: +6% Earnings
- UPWK: +5% Earnings
- TGL: -29% Earnings
- FSLY: -22% Earnings
- NUS: -22% Earnings
- TWLO: -11% Earnings
- HLF: -11% Earnings
- ROL: -7% Earnings
- PARA: -6.5% Berkshire Reduced Its Position
- CSCO: -5.5% Earnings
- ALB: -5% Earnings
- GOOGL: -2% Article from Information regarding ChatGPT and search feature
- News Items After the Close:
- Stocks making the biggest moves after hours: (CNBC)
- The Intersection of Monetary Policy, Market Functioning, and Liquidity Risk Management — (Fed Barr Speech Link)
- OpenAI to develop web search product to challenge GOOG. (TheInformation)
- SoundHound AI (SOUN) shares moving higher after hours following 13F filing from NVIDIA (NVDA) which showed NVDA owned 1,730,883 shares of the company.
- Cisco (CSCO) announces a restructuring plan; will impact approximately 5% of Cisco’s global workforce.
- Exchange/Listing/Company Reorg and Personnel News:
- Ispire Technology (ISPR) to delay 10-Q filing.
- enCore Energy Corp. (EU) appoints Shona Wilson as CFO.
- Lightspeed (LSPD) announces the return of Dax Dasilva as CEO.
- Meta Platforms (META) names Broadcom’s (AVGO) CEO Hock Tan & John Arnold to Board.
- Nxu (NXU) Fully Regains Compliance with Nasdaq’s Continued Listing RequirementsNasdaq withdraws delisting determination letter.
- QuantumScape Corporation (QS) appoints current President Siva Sivaram as CEO.
- Buyback Announcements or News:
- Antero Midstream (AM) authorizes $500 million repurchase program.
- AppLovin (APP) increases repurchase program by $1.25 billion.
- Aurinia Pharma (AUPH) misses by $0.03, reports revs in-line; concludes strategic review process; announces up to $150 mln share repurchase program.
- Alkermes Plc (ALKS) approves new share repurchase program for up to $400 million of common stock.
- The Cigna Group (CI) Announces $3.2 Billion Accelerated Stock Repurchase.
- Garrett Motion (GTX) authorizes $350 million for repurchases.
- PBF Energy (PBF) increased share repurchase authorization.
- Stellantis (STLA.N) Approves Share Buyback Program.
- SUNW delisted from the NASDAQ to OTC 2/15/2024.
- Udemy (UDMY) approves share repurchase program of up to $100 million.
- YETI Board approved $300 million buyback.
- Stock Splits or News:
- MYMD to trade 1/30 reverse split today.
- Dividends Announcements or News:
- Airbus (EADSY) dividend of € 1.80 per share; special dividend of € 1.00 per share.
- Cisco (CSCO) raises quarterly dividend by 3% to $0.40 from $0.39 per share.
- Clearway Energy (CWEN) increases quarterly dividend $0.4033 per share from $0.3964 per share.
- Crane NXT (CXT) Increases quarterly dividend to $0.16 from $0.14 per share.
- CSX Corporation (CSX) Announces Increase to Quarterly Dividend.
- Fidus Investment (FDUS) declares base dividend of $0.43 per share and a supplemental dividend of $0.22 per share for the first quarter of 2024.
- HF Sinclair (DINO) increases quarterly dividend 11% to $0.50 per share from $0.45 per share.
- JBG SMITH Properties (JBGS) reduces quarterly dividend to $0.175 per share from $0.225 per share.
- Manulife Financial (MFC) increases dividend by 9.6%.
- Nu Skin (NUS) cuts quarterly dividend to $0.06 per share from $0.39.
- Occidental Petro (OXY) increased quarterly dividend by 22% to $0.22 per share.
- PC Connection (CNXN) increased the quarterly dividend by 25% to $0.10 per share on its common stock.
- Radian Group (RDN) increases quarterly cash dividend 9% to $0.245 per share from $0.225 per share.
- Wyndam Hotels and Resorts (WH) Increases quarterly dividend to $0.38 from $0.35 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +8, Dow Jones +67, NASDAQ +35, and Russell 2000 +15. (as of 7:56 a.m. EST). Asia is higher ex South Korea while Europe is higher again this morning. VIX Futures are at 14.90 from 15.50 this morning. Gold, Silver and Copper are higher this morning. WTI Crude Oil and Brent Crude Oil are lower with Natural Gas higher. US 10-year Treasury sees its yield at 4.23% from 4.304% yesterday morning. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $52,375 from $51,758 higher by 1.15% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Industrials, Communication Services, Financial, Consumer Cyclical, Helathcare, Basic Materials of note.
- Daily Negative Sectors: Consumer Defensive of note.
- One Month Winners: Technology, Communication Services, and Industrials of note.
- Three Month Winners: Technology, Industrials, Communication Services of note.
- Six Month Winners: Technology, Communication Services, and Financial of note.
- Twelve Month Winners: Technology, Communication Services, and Consumer Cyclical of note.
- Year to Date Winners: Technology, Communication Services, and Healthcare of note.
Stocks regained their footing on Wednesday after a selloff sparked by inflation fears a day earlier. The broad-based S&P 500 gained 1%, while the Dow Jones Industrial Average added 0.4%, or about 152 points. Nine of the S&P 500’s 11 sectors finished in the green. Sectors that are especially sensitive to higher interest rates led the charge. The tech-heavy Nasdaq Composite gained 1.3%. The small-cap Russell 2000 index advanced 2.4%, after sliding -3.96% the previous day in its worst performance since June 2022. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close:
Earnings of Note This Morning:
- Beats: DE +0.97, RS +0.81, WD +0.65, KELYA +0.37, SLVM +0.32, APPN +0.30, LECO +0.25, EPAM +0.24, CROX +0.21, CBRE +0.20, KNF +0.19, CVE +0.14, NVMI +0.12, CRBG +0.08, CLBT +0.08, SN +0.07, OGN +0.06, NS +0.06, GPC +0.06, WST +0.05, DNOW +0.05, SO +0.04, ZBRA +0.04, CGNX +0.04, CBZ +0.03, LH +0.03, SABR +0.02, VNT +0.02, LXP +0.01, DNB +0.01, IDA +0.01, SHAK +0.01 of note.
- Flat: MTRN +0.00 of note.
- Misses: PENN (1.80), ARCH (1.48), PBF (0.50), GEL (0.31), ALKS (0.26), SPWR (0.25), IRWD (0.20), AGIO (0.06), HBI (0.06), YETI (0.06), AUPH (0.03), WEN (0.02), SPTN (0.02), USFD (0.02) of note.
- Still to Report: ALNY, FUN, COHU, NSIT, ITGR, IDCC, RPRX of note.
Company Earnings Guidance:
- Positive Guidance: UPWK, EQIX, FROG, APP, PEGA, MTW, INFA, HUBS, NRDS, TYL, PGRE, AWK, VNT, CZ, ZBRA, SN, CROX, NVMI of note.
- Negative Guidance: FSLY, UDMY, CSCO, ALB, AMWL, VTR, NUS, WH, OEC, LXP, WST, YETI, CGNX, IDA, SPTN, HBI, BPMC, IRWD, GTX, DNB, SO, SABR of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: SOUN +73%, APP +22%, INFA +19%, FROG +18%, PEGA +13%, KALV +12%, SUM +6%, ATUS +6%, DWAC +6%, TRIP +6%, PGRE +5%, MFC +5%, PTEN +4%, GEO +4%, STLA +4%, SIRI +4% of note.
- Gap Down: NUS -24%, FSLY -21%, ADPT -15%, AUPH -14%, TWLO -12%, HLF -11%, UDMY -11%, ZCAR -9%, MTW -9%, NRDS -9%, YETI -8%, ROL -8%, PRME -7%, HCC -6%, AGYS -5%, CSCO -4%, ALB -4%, TYL -4% of note.
Insider Action: NGL 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: Dozens of Banks Rapidly Piles On Commercial Property Loans . (Bloomberg)
- Putin s prefers “Old Style” Biden over Trump. (Bloomberg)
- Bloomberg Most Shared Story: . (Bloomberg)
- US Stocks up after reclaims 5,000: Markets Wrap. (Bloomberg)
Moving Average Update: Score improves back to 91% from 45%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 11:15 a.m. EST
- Press Briefing by Press Secretary Karine Jean-Pierre, 1:00 p.m. EST
Economic:
- Jobless Claims 8:30 a.m. EST
- Philly Fed Mfg Index 8:30 a.m. EST
- Import and Export Prices 8:30 a.m. EST
- January Retail Sales are due out at 8:30 a.m. EST and is expected to fall to -0.2% from 0.6%.
- February NY Fed Manufacturing is due out at 8:30 a.m. EST and is expected to improve to -9.00 from -43.70.
- January Industrial Production is due out at 9:15 a.m. EST and is expected to rise to 0.40% from 0.10%.
- February NAHB Housing Market Index is due out at 10:00 a.m. EST and is expected to improve to 46 from 44.
- EIA Natural Gas Report 10:30 a.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve Board of Governors Christopher Waller 1:15 p.m. EST
M&A Activity and News: None of note.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
-
- Previously posted and ongoing conferences:
- KBW Winter Financial Services Conference
- Wolfe Research Inaugural Semiconductor Conference
- Top Shareholder Meetings: CRNC HSCS FRTX MATW MODN TNXP
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ASC BEEM DDOG OTIS QSR RFKL RVPH
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Arkansas Lithium Innovation Summit
- North America Envista Summit
- Solid-State Batteries: Innovations Promising Start-Ups and Future Roadmap
-
- Previously posted and ongoing conferences:
- Respiratory Syncytial Virus Foundation’s RSVVW conference
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:
