Overnight Summary: The S&P 500 closed Wednesday higher by 0.51% at 5104.76 from Tuesday lower by -1.14% at 5078.65. The overnight high was hit at 5124 at 6:10 a.m. EST while the overnight low was hit at 5086.50 at 3:15 a.m. EST. The range overnight is 38 points as of 7:15 a.m. EST. The 10-day average of the overnight range is at 23.75 from 22.95. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +11.50 points at 7:20 a.m EST.
Executive Summary: Busy day ahead with ECB Announcement soon, Powell day two of testimony and State of the Union today. Futures sold off to 5086 and have recovered 40 points. Will this bounce hold today?
- January Trade Balance is due out at 8:30 a.m. EST and is expected to come in at $-63.30 billion from $-62.2 billion.
- January Consumer Credit is due out at 3:00 p.m. EST and is expected to rise to $10 billion from $1.6 billion.
- Federal Reserve Chairman Powell concludes two days of Humphrey Hawkins Testimony before the Senate at 10:00 a.m. EST.
- Federal Reserve Cleveland President Loretta Mester 11:30 a.m. EST
Earnings Out After The Close:
- Beats: VSCO +0.12, HPK +0.05, RSI +0.03, YEXT +0.03 of note.
- Flat: DSGX of note.
- Misses: KGS (0.38) of note.
- IPOs Priced or News:
- Panera Bread (PNRA) loosening ingredient standards ahead of planned IPO. (Reuters)
- New SPACs launched/News: None of note.
- Secondaries Priced:
- ADT: ADT prices secondary offering of 65.0 mln shares of common stock at $6.50 and concurrent share repurchase
- CRGY: Prices secondary offering of 12.5 mln shares of common stock at $10.50 per share.
- MNMD: Announces the pricing of an underwritten offering of 16,666,667 common shares, no par value per share, at an offering price of $6.00 per share.
- PYCR: prices offering of 8 million shares of common stock at $20.15 per share by selling stockholders.
- RGNX: Prices offering of common stock and pre-funded warrants.
- Notes Priced of note:
- CDMO: Prices offering of $160 million of 7.00% Convertible Senior Notes due 2029.
- GSBD: Prices Public Offering of $400 Million of 6.375% Unsecured Notes Due 2027.
- XRX: Prices offering of $350 million of 3.75% Convertible Senior Notes due 2030.
- Common Stock filings/Notes:
- CWAN: Announces launch of secondary offering of 16.25 million class A common stocks.
- NYAX: Announces proposed public offering of 3,130,435 of its ordinary shares.
- RGNX: Announces proposed public offering of $125 million of common stocks.
- Direct Offering: None of note.
- Selling Shareholders of note:
- ADT: Files for 55,000,000 shares of common stock by selling shareholders.
- PHVS: Files for 5,545,155 ordinary shares by selling shareholder.
- PYCR: Files for 8,000,000 shares of common stock by selling shareholders.
- ZYME: Files for 5,086,521 shares of common stock by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- CRGY: Files mixed shelf securities offering.
- LIND: Files $300 million mixed shelf securities offering.
- ORI: Files mixed shelf securities offering.
- TCRX: Files $300 million mixed shelf securities offering.
- TWOU: Filed Form S-3.. $100,000,000 Mixed Shelf.
- Debt/Credit Filing and Notes:
- URI: Announces that its subsidiary, United Rentals (North America) Inc., is offering $1.1 billion principal amount of Senior Notes due 2034 in a private offering.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- BILL: Announces Repurchase of 0.0% Convertible Senior Notes Due 2025.
- CDMO: Announces proposed private placement of $160 million of convertible notes due 2029.
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:
- LYT: +184% Enters $326 Billion Data Center Market
- BENF: +58% Enters into New Liquidity Transaction with ff Venture Capital
- OSPN: +30% Earnings
- HNST: +24% Earnings
- YEXT: +19% Earnings
- RSI: +18% Earnings
- CMPO: +17% Earnings
- AEYE: +15% Earnings
- CDMO: -32% Earnings and Proposed Private Placement of Convertible Notes
- VSCO: -26% Earnings
- CYN: -15% Earnings
- ADT: -10% Launch of Secondary Public Offering of Common Stock and Concurrent Share Repurchase
- News Items After the Close:
- US House approves spending deal to avert shutdown. (Reuters)
- NYCB to Get Investment of More Than $1 Billion. (WSJ)
- Victoria’s Secret (VSCO) shares plummet on weaker sales forecast, amid subdued apparel demand. (MarketWatch)
- Fed’s Kashkari says it’s possible he pencils in only one interest-rate cut this year. (MarketWatch)
- US Stock Buybacks To Hit $1 Trillion In 2025, Goldman Says. (Bloomberg)
- Exchange/Listing/Company Reorg and Personnel News:
- Alamo Group (ALG) announces that Richard Wehrle, Chief Financial Officer and Treasurer, will retire from the Company.
- Chord Energy (CHRD) promotes Richard Robuck to CFO.
- CIBC (CM) announces senior executive appointments.
- Express, Inc. (EXPR) Receives Delisting Notice From the New York Stock Exchange.
- KalVista Pharmaceuticals (KALV) announces appointment of Benjamin Palleiko as CEO.
- Buyback Announcements or News:
- FinWise Bancorp (FINW) Announces Share Repurchase Program.
- GoodRx (GDRX) entered into two Stock Purchase Agreements.
- Laureate Education (LAUR) entered into a Stock Purchase Agreement.
- Victoria’s Secret (VSCO) Board of Directors approved a new share repurchase program authorizing the repurchase of up to $250 million of the Company’s common stock.
- Stock Splits or News:
- PIK to trade reverse split 1/5 today.
- SOXX ETF trading 3/1 split today.
- Dividends Announcements or News:
- American Express (AXP) approves a 17% increase in its quarterly dividend to $0.70 per share, equating to an annualized yield of 1.3%.
- Kadant (KAI) increases quarterly cash dividend to $0.32 per share from $0.29 per share.
- Miller Industries (MLR) increases quarterly cash dividend 5.6% to $0.19 per share from $0.18 per share.
- NYCB: Under Deal, Dividends Reduced To $0.01 Per Share Per Quarter.
- SpartanNash (SPTN) increases quarterly cash dividend 1.2% to $0.2175 per share from $0.2150 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +13, Dow Jones +49, NASDAQ +84, and Russell 2000 +0.51. (as of 8:01 a.m. EST). Asia is mixed while Europe is higher this morning ex the FTSE. VIX Futures are at 14.45 from 14.12 yesterday morning. Gold higher, Silver lower and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are lower while Natural Gas is higher. US 10-year Treasury sees its yield at 4.108% from 4.149% yesterday morning. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $66,882 from $66,433 lower by -0.47% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Basic Materials, Utilities, Energy, Healthcare, Industrials, Financial, Consumer Defensive, Real Estate of note.
- Daily Negative Sectors: Communication Services of note.
- One Month Winners: Consumer Cyclical, Technology, Industrial of note.
- Three Month Winners: Technology, Industrial, Healthcare 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.
Stocks bounced back Wednesday after Federal Reserve Chairman Jerome Powell told lawmakers that the central bank is still on track to cut interest rates this year. Major indexes started the day higher after Powell’s prepared remarks were released before the opening bell. They gained steam as he testified before the House Financial Services Committee but drifted down into the close. The tech-heavy Nasdaq Composite ended 0.6% higher. The S&P 500 was not far behind, climbing 0.5%. The Dow Jones Industrial Average added 0.2%, or 76 points. Every industry group in the S&P 500 ended higher, except communication services and companies that depend on discretionary spending. Utility stocks led the way higher, followed by tech stocks, which rose in aggregate despite declines in five of the so-called Magnificent Seven stocks that powered last year’s rally. (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: BURL +0.37, KR +0.21, CIEN +0.18, ABM +0.15, BILI +0.15, WLY +0.14, NMRA +0.05, BJ +0.05, PSFE +0.03, FCEL +0.03 of note.
- Flat: SSYS of note.
- Misses: BIG (0.05), STVN (0.01) of note.
- Still to Report: AEO, TTC of note.
Company Earnings Guidance:
- Positive Guidance: OSPN, RSI, CI, BURL, WLY, KR of note.
- Negative Guidance: INFN, VSCO, CDMO, STVN, SSYS of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: IMRN +180%, OSPN +33%, HNST +29%, RSI +24%, YEXT +18%, MNMD +15%, HG +9%, CC +5%, NVO +4%, MLR +4%, NYCB +4% of note.
- Gap Down: VSCO -29%, CDMO -25%, ADT -11%, KGS -8%, BILI -7%, HDSN -6%, SLNO -5%, DSGX -5%, CBZ -4%, INFN -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)
- Morning Briefing for Bloomberg subscribers. (Bloomberg)
- Bloomberg Lead Story: How Former Treasury Secretary Mnuchin Landed NYCB Bank Loan. (Bloomberg)
- Stocks climb, traders seek more clues from Powell: Markets Wrap. (Bloomberg)
- Billionaire, Corporate Tax to be focus of Biden’s State of the Union Speech. (Bloomberg)
- Powell hints yesterday at potential changes to Basel III endgame. (Bloomberg)
- Novo Nordisk (NVO) jumps 5% on weight loss trial results. (CNBC)
- Hugo Boss, German based, drops -18% on pessimistic sales outlook, biggest drop since 2016. (CNBC)
- Bloomberg Daybreak: Yen climbs on BOJ rate hike speculation. (Podcast)
- NYT The Daily: Google’s ChatBot Gemini. (Podcast)
- Marketplace: Federal Reserve San Francisco President Mary Daly says Silicon Valley in “transitional waters”. (Podcast)
- Wealthion: Neil Howe’s 4th Turning sees economic stagnation and end of prosperity. (Podcast)
- Adam Taggart Thoughtful Money: Fiscal stimulus slowdown to disrupt everything? (Podcast)
Moving Average Update: Score improves to 74% from 65%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 a.m. EST
- The President, The First Lady and The Second Gentleman depart the White House en route to the United States Capitol, 8:25 p.m. EST
- The President addresses the people’s representatives in Congress at the State of the Union; The Vice President, The First Lady, and The Second Gentleman attend, 9:00 p.m. EST
- The President arrives at the White House, 11:00 p.m. EST
Economic:
- Challenger Job Cut 7:30 a.m. EST
- U.S Challenger Job Cuts (FEB) Actual: 84.638K VS 82.307K Previous
- Jobless Claims 8:30 a.m. EST
- Productivity and Costs 8:30 a.m. EST
- January Trade Balance is due out at 8:30 a.m. EST and is expected to come in at $-63.30 billion from $-62.2 billion.
- ECB Announcement at 8:45 a.m. EST.
- EIA Natural Gas Report 10:30am ET
- January Consumer Credit is due out at 3:00 p.m. EST and is expected to rise to $10 billion from $1.6 billion.
Federal Reserve / Treasury Speakers:
- Federal Reserve Chairman Powell concludes two days of Humphrey Hawkins Testimony before the Senate at 10:00 a.m. EST.
- Federal Reserve Cleveland President Loretta Mester 11:30 a.m. EST
M&A Activity and News:
- Beyond, Inc. (BYON) acquires ecommerce pioneer Zulily, supercharging its off-priced business.
- CBIZ (CBZ) acquires technology solutions provider, CompuData, of Philadelphia, PA.
Meeting & Conferences of Note:
- Sellside Conferences:
- Citi’s Emerging Markets FinTech Forum
- DNB Energy & Shipping Conference
- Morgan Stanley Energy & Power Conference
- Rothschild Roadshow
- Scotiabank TMT Conference
- Wainwright AI Based Drug Discovery & Development Conference
- Previously posted and ongoing conferences:
- DNB Energy & Shipping Conference
- Top Shareholder Meetings: AMAT, ESSA, HOLX, ICLK, OTLK, TDG, UTI
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ALGS, CI, GE, MAT, MNMD, SPRY
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Connecticut Rare Disease Forum
- Previously posted and ongoing conferences:
- AI conference, C3 Transform
- Alzheimer’s and Parkinson’s Diseases
- ATTD 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:
