Overnight Summary: The S&P 500 closed Thursday higher by 1.03% at 5157.36 from Wednesday higher by 0.51% at 5104.76. The overnight high was hit at 5174.25 at 3:50 a.m. EST while the overnight low was hit at 5143.75 at 4:20 p.m. EST. The range overnight is 31 points as of 7:20 a.m. EST. The 10-day average of the overnight range is at 24.65 from 23.75. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is lower by -2.50 points at 7:20 a.m EST.
- February Nonfarm Payroll is due out at 8:30 a.m. EST and is expected to fall to 195,000 from 353,000.
- February Unemployment Rate is expected to remain at 3.7% and is also due at 8:30 a.m. EST.
Earnings Out After The Close:
- Beats: AVGO +0.62, MDB +0.40, GPS +0.26, GWRE +0.23, DOCU +0.11, COST +0.09, SWBI +0.08, FNKO +0.03, DOMO +0.02, IOT +0.01 of note.
- Flat: LOCO +0.00, MRVL +0.00 of note.
- Misses: ASLE (0.47), METC (0.43), BBAI (0.09), EOLS (0.09), COOK (0.04), CTOS (0.04), SVV (0.02) of note.
Capital Raises:
- IPOs Priced or News:
- Razor maker and grooming company Harry’s files confidentially for IPO, hiring Goldman Sachs, JPMorgan, Barclays, and Wells Fargo to underwrite its deal (Reuters)
- New SPACs launched/News: None of note.
- Secondaries Priced:
- APGE: Prices offering of 6,774,193 shares of common stock at $62.00 per share.
- DK: Prices offering of 3,116,884 common units at $38.50 per unit.
- RDNT: Prices offering of 4.55 million shares of common stock at $44.00 per share.
- Notes Priced of note:
- RRR: Announces Pricing of Senior Notes Offering.
- VICI: Pricing of Public Offering of $1.05 Billion of Senior Unsecured Notes.
- Common Stock filings/Notes:
- DK: Proposed Public Offering of Common Units.. $120M.
- FWRG: Announces secondary offering of 6 million common stocks. (BCS Underwriter)
- MAX: Announces launch of secondary offering of 3 million common shares.
- NVTS: Filed Form RW.
- RDNT: Proposed $200 Million Underwritten Public Offering of Common Stock. (Jefferies and RJ Bookmanager)
- SCPX: Announces Proposed Public Offering of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note:
- 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:
- AGCO: Files mixed shelf securities offering.
- ALDX: Files $200 million mixed shelf securities offering.
- HUM: Files mixed shelf securities offering.
- IPI: Files $100 million mixed shelf securities offering.
- LCTX: Files $200 million mixed shelf securities offering.
- MEC: Files mixed shelf securities offering.
- ML: Files $50 million mixed shelf securities offering.
- NSA: Files mixed shelf securities offering.
- Debt/Credit Filing and Notes:
- RCL: Announces completion of $1.25 billion offering of senior unsecured notes to refinance its senior notes due 2027.
- 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:
- Up: IOT +14.7%, FNKO +13.4%, DOCU +9.5%, GPS +4.4% higher on earnings;
- Down: BBAI -18.3%, MDB -7.4%, MRVL -5.4%, GWRE -4.3%, COST -3.5%, AVGO -1.6% lower on earnings
- News Items After the Close:
- Stocks making the biggest moves after hours: AVGO, COST, IOT, MRVL, GPS, MDB, DOCU (CNBC)
- Costco (COST) misses holiday-quarter revenue expectations despite online growth. (CNBC)
- Broadcom’s (AVGO) stock falls, with AI set for stronger showing as other areas sag (MarketWatch)
- MongoDB’s (MDB) stock is falling after weak revenue guidance (MarketWatch)
- DocuSign’s (DOCU) sterling quarter pushes its stock up 15% (MarketWatch)
- BigBear.ai’s (BBAI) stock sinks as AI company barely shows revenue growth (MarketWatch)
- Gap (GPS) shares pop as company’s holiday earnings blow past estimates, Old Navy returns to growth. (CNBC)
- Marvell’s (MRVL) stock drops as AI momentum is outweighed by pressure elsewhere. (MarketWatch)
- SEC Charges Skechers (SKX) with Making Undisclosed Payments to Executives’ Family Member. (SECRelease)
- TC Energy’s Keystone oil pipeline offline due to operational issues. (Reuters)
- Leidos (LDOS) awarded $158 million U.S. Air Force command and control emergency management contract.
- Exchange/Listing/Company Reorg and Personnel News:
- Civeo (CVEO) CFO Carolyn J. Stone has departed the Company.
- Clarus Corporation (CLAR) Board of Directors approves two of its top shareholders to increase their positions up to 15.0% and 26.7% of shares outstanding.
- Cyteir (CYT) Announces Timeline for Voluntarily Delisting from Nasdaq.
- Four Corners Property Trust (FCPT) announces CFO Transition; Gerry Morgan to retire as CFO and Patrick Wernig promoted as successor.
- Funko (FNKO) CFO and COO Steve Nave to resign on March 15; CFO position to be filled by Yves LePendeven; COO position to remain unfilled.
- MBIA (MBI) CFO Anthony McKiernan to step down, effective April 30; current Controller Joseph Schachinger appointed successor CFO.
- Merchants Bancorp (MBIN) CFO John F. Macke to retire.
- Mission Produce (AVO) appoints John Pawlowski as President and COO.
- Noodles & Co (NDLS) appoints Drew Madsen as CEO.
- Buyback Announcements or News:
- Marvell (MRVL) announces $3 billion stock repurchase authorization.
- Medtronic (MDT) authorizes an incremental $5 billion for share repurchases.
- Stock Splits or News:
- Reverse split stocks today GOEV 1/23 PGY 1/12 CISO 1/15 GXAI 1/12
- Texas Pacific Land Trust (TPL) announces three-for-one stock split.
- Dividends Announcements or News:
- Academy Sports + Outdoors (ASO) increases quarterly cash dividend 22% to $0.11 per share from $0.09 per share.
- World Kinect Corporation (WKC) increases quarterly cash dividend 21% to $0.17 per share from $0.14 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Communication Services, Basic Materials, Healthcare, Industrials, Utilities, Energy of note.
- Daily Negative Sectors: None 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.
Big technology stocks jumped Thursday and powered the S&P 500 to a fresh high, its 16th for the year. The benchmark index rose 1%. The tech-heavy Nasdaq Composite leapt past its peers and added 1.5%. The Dow Jones Industrial Average rose 130 points, or 0.3%. Traders have been focused on Federal Reserve Chair Jerome Powell’s testimony to lawmakers this week. On Thursday, he rekindled hopes that the Fed may shift its policy stance soon when he said that the central bank was “not far” from being able to cut interest rates. The yield on the 2-year Treasury note, which is especially sensitive to interest-rate expectations, fell to 4.512%, from 4.56% the prior session. The yield on the 10-year Treasury note fell for the third consecutive session to 4.09%, its lowest level since early February. (WSJ – edited by QPI)
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.
- Monday Before the Open:
Earnings of Note This Morning:
- Beats: AQN +0.02 of note.
- Flat: None of note.
- Misses: GCO (0.38) of note.
- Still to Report: CRMT of note.
Company Earnings Guidance:
- Positive Guidance: DOCU, IOT, BBAI, GPS, CTOS, PRCH of note.
- Negative Guidance: CIEN, COOK, DOMO, MDB, MRVL, SVV, FNKO, GWRE, NAPA, GCO of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: PRCH +19%, IOT +16%, FNKO +10%, GRND +10%, DOCU +9%, SWBI +8%, GPS +7%, TGB +5%, SNPO +5%, TSM +4%, KYTX +4% of note.
- Gap Down: ASLE -19%, BBAI -17%, COOK -12%, PBR -12%, SVV -9%, DOMO -8%, MGNX -8%, DKL -7%, MDB -7%, RDNT -7%, RWAY -6%, NDLS -6%, MRVL -5%, CTOS -5%, COST -4%, EOLS -4% of note.
Insider Action: WTRG, EVLV 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: Biden Jump Starts Election in State of the Union Aimed at Trump. (Bloomberg)
- Record stock rally builds with U.S. jobs in view: Markets Wrap. (Bloomberg)
- More Bank of Japan Officials want to raise rates in March. (Bloomberg)
- FDA delays Eli Lilly (LLY) Alzheimer’s drug Donanemab as wants to hold Advisory Panel Meeting over the drug. (Bloomberg)
- Costco (COST) misses holiday revenue expectations. (CNBC)
- Bloomberg Daybreak: Huawei breakthrough used U.S. technology. (Podcast)
- NYT The Daily: The State of the Union review. (Podcast)
- Marketplace: EU fines Apple, Change healthcare cyberattack drags on and Max will join crackdown on password sharing. (Podcast)
- Wealthion: A blockchain-powered world. (Podcast)
- Adam Taggart Thoughtful Money: A 7 year depression ahead? Market crash in 2024 with depression by 2025. (Podcast)
Moving Average Update: Score continues to improves to 91% from 74%.
Geopolitical:
- President’s Public Schedule:
- The President and The First Lady depart the White House en route to Joint Base Andrews, 1:40 p.m. EST
- The President and The First Lady depart Joint Base Andrews en route to Philadelphia, Pennsylvania, 2:00 p.m. EST
- The President and The First Lady arrive in Philadelphia, Pennsylvania, 2:45 p.m. EST
- The President and The First Lady deliver remarks at a campaign event, 5:00 p.m. EST
- The President and The First Lady depart Philadelphia, Pennsylvania en route to New Castle, Delaware, 7:45 p.m. EST
- The President and The First Lady arrive in New Castle, Delaware, 8:00 p.m. EST
Economic:
- February Nonfarm Payroll is due out at 8:30 a.m. EST and is expected to fall to 195,000 from 353,000.
- February Unemployment Rate is expected to remain at 3.7% and is also due at 8:30 a.m. EST.
- Baker Hughes Rig Count 1:00 p.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve New York President John Williams 7:00 a.m. EST
- Demand Has Cooled Amid Restrictive Monetary Policy.
- Inflation Expectations Have Come Down Quite A Bit.
- It Is Not Yet Clear Whether The Neutral Rate Has Risen.
- Ai May Fuel A New Productivity Wave, I Haven’t Seen That Yet.
- In 2023 The Us Economy Was Remarkable.
M&A Activity and News: None of note.
Meeting & Conferences of Note:
- Sellside Conferences:
- DA Davidson Best-of-Breed Bison Conference
- Previously posted and ongoing conferences:
- Citi’s Emerging Markets FinTech Forum
- Previously posted and ongoing conferences:
- DA Davidson Best-of-Breed Bison Conference
- Top Shareholder Meetings: NFG, SASI
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: VRTS
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- American Academy of Dermatology
- Previously posted and ongoing conferences:
- Alzheimer’s and Parkinson’s Diseases
- Previously posted and ongoing conferences:
- American Academy of Dermatology
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:
