Overnight Summary: The S&P 500 closed Monday lower by -0.38% at 5069.53 from Friday higher by 0.03% at 5088.80. The overnight high was hit at 5087 at 4:30 a.m. EST while the overnight low was hit at 5073 at 12:45 a.m. EST. The range overnight was 14 points as of 7:15 a.m. EST. The 10-day average of the overnight range is at 20.54 from 20.89. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +5.00 points at 7:15 a.m EST.
Executive Summary: Several key economic data points are due out today along with President Biden meeting with Congressional leaders.
- January Durable Orders are due out at 8:30 a.m. EST and is expected to fall to -4.40% from 0.0%.
- Federal Reserve Vice Chair for Supervision Michael S. Barr 9:05 a.m. EST
- February Consumer Confidence is due out at 10:00 a.m. EST and is expected to fall to 114.60 from 114.80.
- President Biden meets with top Congressional leaders on a potential government shutdown at 11:30 a.m. EST.
- The latest short interest from the NYSE and NASDAQ for the period of 1/29 through 2/13 saw the S&P 500 rise by 0.51% and the Russell 2000 fall by -2.35%.
Earnings Out After The Close:
- Beats: DDS +3.09, CPE +0.86, AIN +0.40, IRBT +0.29, ZM +0.27, TMDX +0.19, DORM +0.16, ADUS +0.15, RCKT +0.14, PUBM +0.14, PRIM +0.12, HLIO +0.11, WDAY +0.10, HEI +0.08, AES +0.06, SBAC +0.04, HIMS +0.03, RLJ +0.02, IIPR +0.02, TREX +0.01, CARG +0.01 of note.
- Flat: FSK of note.
- Misses: U (0.89), AAN (0.29), RVMD (0.29), ASUR (0.19), DRQ (0.14), PWSC (0.04), AEP (0.03), EVBG (0.02), OKE (0.02), STAA (0.01) of note.
Capital Raises:
- IPOs Priced or News:
- Vocodia Holdings Corp (VHAI) Announces Closing of $5.95 Million Initial Public Offering and the First IPO to be Listed on The BZX Exchange of CBOE Global Markets.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note:
- BLDR: Prices Offering of $1 Billion of Senior Notes due 2034.
- BN: Announces Pricing of $750 Million Notes Offering.
- LYB: Prices Public Offering of Guaranteed Notes.
- WAB: Has priced a public offering of $500 million of 5.611% senior notes due 2034.
- Common Stock filings/Notes:
- AWR: Files common shares offering.
- NRXP: Proposed Underwritten Public Offering of Common Stock. (EF Hutton bookmanager)
- RIOT: Form 8K.. entered into a Controlled Equity Offering.. up to $750,000,000.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- CDE: Flow-Through Shares Private Placement to Advance Silvertip Exploration.
- CMCXF: Announces Private Placement to Raise Up to $1,200,000.
- Mixed Shelf Offerings:
- HES: Files mixed shelf securities offering.
- NTB: Files mixed shelf securities offering.
- SITM: Files mixed shelf securities offering.
- UVSP: Files $175 million mixed shelf securities offering.
- Debt/Credit Filing and Notes:
- WCC: Announces Pricing of Private Offering of Senior Notes Due 2029 and Senior Notes Due 2032.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- FIVN: Announces proposed $600 million convertible notes offering due 2029.
- PRGS: Announces offering of $350 million convertible senior notes 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:
- JANX: +110% Data Presentation on PSMAxCD3-TRACTr JANX007
- PUBM: +32% Earnings
- GRTX: +25% Insider Purchase
- HIMS: +20% Earnings
- EVER: +17% Earnings
- TMDX: +16% Earnings
- SEZL: +13% Earnings
- ZM: +10.5% Earnings
- TREX: +8% Earnings
- U: -18% Earnings
- CARG: -14% Earnings
- SIBN: -12% Earnings
- WDAY: -8% Earnings
- FATE: -6.5% Earnings
- FIVN: -5.5% Proposed $600 Million Convertible Notes Offering
- STAA: -5% Earnings
- ITRI: -4.7% Earnings
- RIOT: -3.75% Controlled Equity Offering
- HES: -3.2% FORM S-3ASR – Mixed Shelf Offering
- News Items After the Close:
- Stocks making the biggest moves after hours: WDAY, ZM, CARG, U, STAA, HIMS (CNBC)
- Chevron’s (CVX) $53 Billion Deal for Hess (HES) in Jeopardy on Possible Exxon (XOM) Challenge. (WSJ)
- Zoom (ZM) shares jump as quarterly results beat on top and bottom lines. (CNBC)
- Workday (WDAY) logs profit beat and inks AI deal, but stock drops after earnings. (MarketWatch)
- Unity (U) shares shed nearly a fifth of its value as earnings, forecast underwhelm. (MarketWatch)
- Broadcom (AVGO) Said to Pause $1 Billion Sale of Carbon Black Unit.
- Bitcoin resumes its rally, ripping through $54,000 for the first time since December 2021. (CNBC)
- Expedia Group (EXPE) reducing its workforce by approximately 1,500 employees. (MarketWatch)
- Citi says S&P 500 not in a bubble, tells investors to ‘buy pullbacks’. Overall, the year-to-date surge of nearly 7% in the S&P 500 increases the necessity for fundamental growth factors to materialize and sustain the market’s movement, Citi added. Essentially, investors are advancing funds based on anticipated future earnings growth.
- Exchange/Listing/Company Reorg and Personnel News:
- Index Changes: American Homes 4 Rent (AMH) to join S&P MidCap 400.
- American Electric (AEP) appoints Benjamin Fowke III, a member of the company’s Board of Directors and the former chairman and CEO of Xcel Energy, as interim CEO and President.
- Brinker (EAT) CFO Joe Taylor to retire.
- Lithium Argentina (LAAC) announces the Board’s unanimous decision to appoint Sam Pigott as President and Chief Executive Officer.
- Mercer Intl (MERC) announces that Jimmy Lee is stepping down as Executive Chairman and director of the Company for personal health reasons.
- Shake Shack (SHAK) preparing restatements of its prior financial statements to be included in its FY23 10-K.
- Silicon Labs (SLAB) names Dean Butler as CFO.
- Sunnova Energy (NOVA) appoints Paul Mathews as COO.
- Synaptics (SYNA) Announces Chief Financial Officer Transition.
- The Wendy’s Company (WEN) Names Matt Spessard Chief Information Officer.
- Buyback Announcements or News:
- National Vision (EYE) authorizes repurchase of up to $50 million of common stock.
- PubMatic (PUBM) announces up to an additional $100 million for share repurchase program.
- South Plains Financial, Inc. (SPFI) Announces Stock Repurchase Program.
- Zoom Video (ZM) authorizes up to $1.5 bln for repurchases.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Atlas Energy Solutions (AESI) misses by $0.14, misses on revs; increases quarterly dividend 5%
- Bentley Systems (BSY) increased its quarterly dividend by 20% to $0.06 per share.
- Carter’s (CRI) increases quarterly cash dividend by 7%.
- Ellington Financial (EFC) to cut monthly dividend to $0.13 per share from $0.15.
- Perrigo (PRGO) increases quarterly cash dividend 1% to $0.276 per share from $0.273 per share.
- Sempra Energy (SRE) Dividend increased to $0.62 per share from $0.595 per share.
- TriCo Bancshares (TCBK) increases quarterly cash dividend 10% to $0.33 per share from $0.30 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +7, Dow Jones +27, NASDAQ +57, and Russell 2000 +17. (as of 8:00 a.m. EST). Asia is higher ex South Korea and Europe is lower ex Germany this morning. VIX Futures are at 14.80 from 14.78 yesterday morning. Gold, Silver and Copper are higher this morning. WTI Crude Oil and Brent Crude Oil are lower while Natural Gas is lower as well. US 10-year Treasury sees its yield at 4.272% from 4.242% yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $56,947 from $51,048 higher by 4.45% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Consumer Cyclical of note.
- Daily Negative Sectors: Communication Services, Utilities, Real Estate, Basic Materials, Financial of note.
- One Month Winners: Technology, Healthcare, Financial of note.
- Three Month Winners: Technology, Healthcare, Financial of note.
- Six Month Winners: Technology, Financial, and Communication Services of note.
- Twelve Month Winners: Technology, Communication Services, and Consumer Cyclical of note.
- Year to Date Winners: Technology, Healthcare, Communication Services of note.
U.S. stocks drifted lower ahead of fresh readings on the economy this week, in a subdued trading session after last week’s Nvidia-fueled rally. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average shed roughly 62 points, or 0.2%. Both were coming off records Friday. The tech-heavy Nasdaq Composite slipped 0.1%. All three indexes are on track to finish February in the green, which would mark their fourth straight month of gains. Last week, they each climbed more than 1% after chip maker Nvidia’s blockbuster earnings reignited enthusiasm about the potential of artificial intelligence technology. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Tuesday After the Close:
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: BEAM +2.42, JLL +0.52, M +0.47, LGND +0.39, BMO +0.32, SEE +0.25, SJM +0.21, TILE +0.19, CRI +0.18, VERV +0.14, ZNTL +0.13, PRVA +0.11, LOW +0.09, EYE +0.07, AMT +0.04, SLCA +0.03, PRGO +0.03, CAVA +0.03, XHR +0.03, BSY +0.02, CLVT +0.02, SRE +0.02 of note.
- Flat: SHC +0.00, DEA +0.00 of note.
- Misses: AZO (6.73), AHCO (2.10), CEG (1.75), ARVN (1.38), SWTX (0.20), DK (0.18), STGW (0.15), AESI (0.14), RCM (0.08), NCLH (0.06), FOUR (0.05), PAR (0.03), HSIC (0.03), NUVL (0.02), PRFT (0.02), TWKS (0.01) of note.
- Still to Report: CBRL, FSS, IMXI, PNW, PTLO of note.
Company Earnings Guidance:
- Positive Guidance: ITRI, HIMS, TREX, TMDX, PUBM, DORM, STRL, TILE, EYE, HSIC, DEA, XHR, NCLH of note.
- Negative Guidance: SBAC, CARG, STAA, ZM, ASUR, AIN, IRBT, DRQ, AAN, ATSG, LOW, CLVT, PRGO, SJM, RCM, PRFT, SHC, TWKS of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: PUBM +31%, TMDX +29%, HIMS +20%, EVER +12%, ZM +12%, HLIO +11%, TREX +7%, DORM +4% of note.
- Gap Down: AAN -27%, ASUR -21%, U -15%, CARG -13%, SIBN -12%, IRBT -7%, ATSG -6%, WDAY -6%, FATE -6%, ACHR -4% of note.
Insider Action: HTLD, CAT 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)
- The Open: Newsletter for Bloomberg Subscribers *NEW* (Bloomberg)
- 5 Things To Know Before the Stock Market Opens Today. (CNBC)
- Bloomberg Lead Story: Fed Rate Cuts Are Likely to Be Slow But Not Necessarily Steady. (Bloomberg)
- Bitcoin passes $57,000 overnight. (CNBC)
- Viking Therapeutics (VKTX) up 107% in pre-market on positive trial results on weight loss drug. (MarketWatch)
- Lowes (LOW) beats earnings estimates but sales fall and expects weak revenues next year. (CNBC)
- Macy’s (M) posts another quarter of falling sales, unveils strategy to get back to growth. (CNBC)
- Bloomberg: The Big Take: U.S. led sanctions have not stopped Putin. (Podcast)
- NY Times Daily: (Podcast)
- Marketplace: Merchants paid $126 billion in credit card fees in 2022. Pushback in lobbying campaigns and Congress. (Podcast)
- Wealthion: How to outsmart common wealth traps in uncertain times (Podcast)
Moving Average Update: Day 2 of 100%.
Geopolitical:
- President’s Public Schedule:
- The President will meet with the four Congressional leaders at the White House; The Vice President attends, 11:30 a.m. EST
- The President and The Vice President have lunch, 12:45 p.m. EST
- The President receives the Presidential Daily Briefing; The Vice President attends, 1:15 p.m. EST
- Press Briefing by Press Secretary Karine Jean-Pierre, 2:00 p.m. EST
Economic:
- January Durable Orders are due out at 8:30 a.m. EST and is expected to fall to -4.40% from 0.0%.
- Redbook Sales 8:55 a.m. EST
- Case-Shiller HPI 9:00 a.m. EST
- FHFA HPI 9:00 a.m. EST
- February Consumer Confidence is due out at 10:00 a.m. EST and is expected to fall to 114.60 from 114.80.
- Richmond Fed Mfg Index 10:00 a.m. EST
- API Crude Oil Data 4:30 p.m. EST
- The latest short interest from the NYSE and NASDAQ for the period of 1/29 through 2/13 saw the S&P 500 rise by 0.51% and the Russell 2000 fall by -2.35%,
Federal Reserve / Treasury Speakers:
- Federal Reserve Vice Chair for Supervision Michael S. Barr 9:05 a.m. EST
M&A Activity and News:
- 111, Inc. (YI) announces receipt of withdrawal of going private proposal.
- Workday (WDAY) Announces Intent to Acquire HiredScore.
- Veradigm (MDRX) to acquire ScienceIO for 140 million in cash.
Meeting & Conferences of Note:
- Sellside Conferences:
- Citi FinTech Conference
- KBW Fintech Payments Conference
- Wolfe Research ‘March Madness’ Software Conference
- Previously posted and ongoing conferences:
- BMO Global Metals & Mining Conference
- J.P. Morgan Global High Yield & Leveraged Finance Conference
- UBS Financial Services Conference
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: CASH, FAZE, GAME, GDC, HP, ISUN, NX
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: CSCO, HTLF, INNV, LAZR, PGR, RCEL, WHR
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- APEC conference
- Previously posted and ongoing conferences:
- BIO CEO & Investor Conference
- Mobile World Congress
- ViVE Digital Health Tech Conference
- Previously posted and ongoing conferences:
- APEC 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:
