CAPIS Morning Note – 1/08/25: Futures Modestly Lower. ADP Payroll Comes In At 122,000 Lower Than Expected.

• IPOs For The Week: ALEH, CRGT, DGNX, DXST, FBGL, SKBL,
  SLGB, ZYBT
• New IPOs/SPACs launched/News: None of note.
• IPOs Filed/Priced: None of note. 
• Secondaries Filed or Priced:
  • KRP announces public offering of 9 mln common units.
  • QURE commences offering for ordinary shares and pre-funded warrants to purchase its ordinary shares
• Notes Priced:
  • APA – Prices $850 Million Private Notes Offering
• Direct Offering: None of note.
• Exchangeable Subordinate Voting Shares: None of note.
• Selling Shareholders of note:
  • GHLD files for 48,499,632 share common stock offering by selling shareholders.
• Mixed Shelf Offerings:
  • QURE files mixed securities shelf offering.
• PIPE: QUBT – Private Placement of Common Stock for Proceeds of $100 Million
• Convertible Offerings & Notes Filed:

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

Biggest Movers Up & Down After The Close:

• Movers Up: SANA +280%, SLDB +16.7% AIR +6.5%, KBR +5.2%, CALM +5.1%,CART +4.9%, KRUS +3.5%,  of note. 
• Movers Down: RCEL -13.7%, RELL -10%, SLP -9.5%, KRP -4.4%, QURE -4.2% of note.

News After The Close:

• PSNL issues upside guidance for Q4 (Dec), sees Q4 (Dec) revs of $16.8 mln vs. $15.54 mln FactSet Consensus.
• KRP announces $231 million midland basin acquisition in cash and unit transaction.
• FLUT which owns Fan Duel lowers 2024 revenue and adjusted EBITDA guidance; cites very unfavorable US sports results.
• PECO announces transaction activity for Q4, bought $300 million of property in 2024.
• RKLB  Selected by Kratos (KTOS) to deliver hypersonic test launches for DoD with HASTE Rocket; total potential value of the MACH-TB 2.0 Contract Award over a five-year period is $1.45 billion.
• FDX announces commencement of offers to exchange certain outstanding senior notes for new notes to be issued by the company; The exchange and consent solicitations being made in connection with company’s contemplated separation.
• XOM provides summary of items it believes will impact Q4 results; Sees changes in liquids pricing impacting upstream business by $(0.9) – $(0.5) bln.
• ERJ  Delivers 75 aircraft in 4Q24 – or 27% higher than in the previous quarter (3Q24), when 59 aircraft were delivered, and equal to the volume of the same period of 2023.
•  10-K Delays: None of note.
• Index Changes:
  • Maplebear (CART) will replace Enovis (ENOV) in the S&P 400 Mid Cap Index. ENOV will replace Arch Resources (ARCH) in the S&P 600 prior to 1/14 open.

Exchange/Listing/Company Reorg and Personnel News:

• KBR names Stuart Bradie, President and CEO appointed Chair Elect, Byron Bright named COO effective May 2025.

Buybacks:

• Stocks Ex Div Today: CMCSA GAP GNTX MAIN IDCC BDN
• Stocks Ex Div Thursday: None out as markets closed.

What’s Happening This Morning: (as of 8:05 a.m. EDT) Futures S&P 500 -7, NASDAQ -46, Dow Jones -34 and Russell 2000 -22. Europe is lower with Asia lower ex Australia. Bonds are at 4.70% from 4.62% on the 10-Year. Crude Oil and Brent are higher with Natural Gas higher as well.  Gold lower, Silver and Copper higher. The U.S. Dollar is higher versus the Euro, higher against the Pound and higher against the Yen. Bitcoin is at $95,095 from $100,839  lower by $1307 up -1.36%.

• Daily Positive Sectors: Energy and Healthcare were higher yesterday.
• Daily Negative Sectors: Technology, Consumer Cyclical, Communication Services, Real Estate and Financials were lower.
• One Month Winners: Communication Services, Consumer Cyclical and Technology of note.
• Three Month Winners: Consumer Cyclical, Technology, Communication Services and Financials of note.
• Six Month Winners: Financials, Utilities, Consumer Cyclical,Technology and Utiltities of note.
• Twelve Month Winners: Financials, Technology, Consumer Cyclical, Utilities and Communication Services note.
• Year to Date Winners:  Energy, Utilities, Technology, Communication Services and Healthcare of note.

Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Wednesday After the Close: 

• Friday Before The Open: 

Notable Earnings of Note This Morning:

• Gap Up:   SANA +246.1%, SLDB +20.2%, EVTL +14%, SGHT +8.8%, CART +4.8%, CALM +3.2%, MUR +3%, GTY +3%, AIR +2.7%, KRUS +2% of note.
• Gap Down: RCEL -23.4%, QUBT -17.2%, SLP -8.4%, RDUS -5.9%, KRP -4.4%, TRNO -4.2%, QURE -3.9%, SEG -3%, HUT -2.1% of note.

Insider Action: None see Insider buying with dumb short selling. None see 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.

• Lead Story on Bloomberg: Last Time Bond Yields Surged Like This, Stock Market Sank. (Bloomberg)
• Market Wrap: Bonds, Stocks extend selloff on tariff anxiety. (Bloomberg)
• 5 Things To Know Before The Market Opens. (CNBC)
• Stocks Making The Biggest Moves: . (CNBC)
• Weekly MBA Mortgage Applications fell -3.7% week over week.
• Nvidia’s (NVDA) Huang crushes quantum computing stocks saying 15 to 30 years away. Huh?? (CNBC)
• Bloomberg Big Take: What’s next for Canada after Trudeau resigns? (Podcast)
• NYSE to close Thursday, January 9th for Former President James Earl Carter’s state funeral in Washington D.C. (CNBC)

M&A Activity and News:

Moving Average Table: Moves from 73% positive to 33%.

Meeting & Conferences of Note:

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.

• • • Upgrades:  MKC KO HASI GEHC FERG CVNA CAH 
    • Downgrades:  KLG IHG FIHL DANOY AMD ADBE