CAPIS Morning Note – 1/3/21: Stocks Start The Year On A Positive Note. S&P 500 +26

Overnight Summary:  2021 closed out at 4766.18 and last night futures on the S&P 500 opened at 4772 and now are at 4789.75 at 7:10 a.m. EST. Asia and Europe are mixed this morning. Omicron studies out since Friday continue to show the virus is milder than other Covid viruses with lower hospitalization rates but…

Overnight Summary:  2021 closed out at 4766.18 and last night futures on the S&P 500 opened at 4772 and now are at 4789.75 at 7:10 a.m. EST. Asia and Europe are mixed this morning. Omicron studies out since Friday continue to show the virus is milder than other Covid viruses with lower hospitalization rates but more cases.

Earnings Out After The Close:

  • Beats: None.
  • Flat: None.
  • Misses: None

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • None of note.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • None of note.
  • Note Offerings Filed: None of note.
  • Convertible Offering & Notes Filed

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

News After The Close:

  • Last Week’s Biggest Winners & Losers Hours: 
    • Trading Up: ATHN +58.4%, HIMX +29.15%, MBI+24.6%, CALX +21.71%.
    • Trading Down: NVAX -19.91%,INO -17.76%, EPZM -17.66% and NKTR -13.37%.
  • News Items After The Close:
    • Primoris Services (PRIM) picks up award worth $379 million.
    • ODP Corp (Corp) sells CompuCom Systems for $305 million.
    • FDIC Chairman Jelena McWilliams resigns which was unexpected. (Politico)
    • Barron’s is + on  GHC CCL MAR DAL AMZN MU AMKR QRVO SWKS INTC QCOM AMAT LRCX NVDA MCHP IIVI NXPI KLAC ON AVGO.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • None of note.
  • Buyback Announcements:
    • ODP to buyback up to $200 million.
  • Stock Splits: 
    • None of note.
  • Dividends Announcements: 
    • None of note.

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 +26, Dow Jones +143, NASDAQ +113 and Russell 2000 +15. Asia and Europe mixed. VIX Futures are at 19.15 from 19.90 Friday morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $130.15 from $130.47 Friday with yields at 1.5315% from 1.505% Friday morning. Bitcoin at $47,244 from $48,024 from Friday morning and +0.55%. As of 8:15 a.m. EST.

Friday’s Action – 12/31 Close:  

  • Daily Positive Sectors: Consumer Defensive, Materials, Industrials and Utilities of note.
  • Daily Negative Sectors: Communication Services, Technology and Healthcare of note.
  • One Month Winners: Real Estate, Consumer Defensive and Utilities of note.
  • Three Month Winners: Real Estate, Technology and Utilities of note.
  • Six Month Winners: Technology, Real Estate, Utilities of note.
  • Twelve Month Winners: Energy, Real Estate, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Selling into the close brought the major indexes down for the day.  USO pulled back -1.31% while UNG rose 4.76%. Updated 12/31 close.

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

  • Monday After the Close: None of note.
  • Tuesday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: None.
  • Flat: None.
  • Misses: None.
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 12/31 close. A serious divergence exists between the S&P 500 and the Daily Market A/D Line.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: TSLA +7%, ESCA +3%, LI +3%, XPEV +3%, HGEN +2%, NIO +2%, MLCO +2%
  • Gap Down: None of note.

Insider Action: No insider action of note this morning.

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Stocks Making the Biggest Moves: XOM, PFE, PTON, CFX, AMD, XLNX   (CNBC)
  • Covid cases up to 486,428 from 243,817 cases, Hospitalizations at 67,324 from 60,871.
  • NIH Director Dr. Fauci says may consider negative testing to end isolation period. (ABC News)
  • Build Back Better bill is being discussed over the weekend but Senate Majority Leader Schumer notes does not have the votes. (WSJ)
  • Tesla (TSLA) reports that Q4 deliveries are at 308,000 vehicles up +71% since 2020.
  • Airlines continue to cancel thousands of flights. (NY Times)
  • AT&T (T) and Verizon (VZ) refuse to delay 5G rollout. (Bloomberg)
  • Cloth masks may not be enough to stop spread of Omicron which is a plus for 3M (MMM) and Alpha Pro Tech (APT). (WSJ)

Moving Average Update:

  • Score dipped down to 77% from 83%. Updated 12/31 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President returns to the White House at 10:05 a.m. EST. 
    • The President and Vice President receive the Daily Briefing at 11:10 a.m. EST.
    • The President meets virtually with farmers and ranchers to reduce prices at 1:30 p.m. EST.

Economic: 

  • November Construction Spending is due out at 10:00 a.m. EST and is expected to rise to 0.6% from 0.2%.

Federal Reserve Speakers:

  • None of note.

M&A Activity: 

  • No major deals of note.

Meeting & Conferences of Note:

  • Sellside Conferences:  Sankey Refining Conference (1/3-5) 
    • Previously Posted and Ongoing Conferences:
      • None
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: 
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: Consumer Electronic Show (CES) begins today in Las Vegas.
    • Previously Posted and Ongoing Conferences:
      • None.

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 it 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:

Friday’s Upgrades and Downgrades: