CAPIS Morning Note -1/5/22: Stocks Modestly Lower As We Hit Hump Day, ADP Jobs Index Rips

Overnight Summary: Futures are mixed as the hype over Omicron reaches a fever pitch.  Europe was higher  as U.K. Prime Minister Johnson noted the country will ride out the Omicron wave without shutting down. Asia was mixed with no notable news. S&P 500 Futures hit a low at 4766.50 and are now at 4782 at…

Overnight Summary: Futures are mixed as the hype over Omicron reaches a fever pitch.  Europe was higher  as U.K. Prime Minister Johnson noted the country will ride out the Omicron wave without shutting down. Asia was mixed with no notable news. S&P 500 Futures hit a low at 4766.50 and are now at 4782 at 7:35  a.m. EST.

Breaking News: CDC refuses to add a testing recommendation for Covid-19 isolation guidelines. ADP Payroll Index comes in at 807,000 double estimates!!

Earnings Out After The Close:

  • Beats:  SGH +0.16.
  • Flat: None.
  • Misses: MLKN -0.05

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • None of note.
  • Secondaries Priced: 
    • ICTI: Priced at $42 a share.
  • Notes Priced of note: RCL of note.
  • Common Stock filings/Notes:
    • ARE: Public Offering of 6.5 million shares.
    • SWIM: Public Offering of 12 million shares.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • DCBO: Public Offering of $200 million common stock by selling shareholder.
    • XFOR: Public Offering of 2,008,032 by selling shareholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • .
  • Note Offerings Filed: None of note.
  • Convertible Offering & Notes Filed: EGHT

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

News After The Close:

  • After The Close Biggest Winners & Losers:
      • Trading Up: SENS +27% WEJO +27% ONCT +10% BYND +7% INSP +5%
      • Trading Down: ANNX -25% SWIM -8% SGH-5% MLKN-4%
  • News After The Close:
      • Inspire Medical Systems (INSP) gives upside Q4 guidance.
      • ACM Research (ACMR) raises revenues for 2021 and 2022.
      • KFC to launch Beyond Meat (BYND) meatless chicken starting on 1/10.
      • Boeing (BA) gets order for 50 737 MAX jets totaling $5 billion. (Reuters)
  • Exchange/Listing/ Company Reorg and Personnel News
      • FNKO names Charles Denson Chairman of the Board immediately.
  • Buyback Announcements
  • Stock Splits:
      • A miracle a stock split! SGH splits 2:1 on 2/1.

What’s Happening This Morning:

S&P 500 -5, Dow Jones -25, NASDAQ -76 and Russell 2000 -4. Asia and Europe mixed. VIX Futures are at 19.10 from 18.80 yesterday morning. Gold higher with Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $129.36 from $129.19 yesterday with yields at 1.651% from 1.661% yesterday morning. Bitcoin at $46,160 from  $46,457 yesterday morning and -0.30%. As of 8:10 a.m. EST.

Tuesday’s Action – 1/4 Close:  

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

Selling into the close brought the major indexes down for the day with the exception of the Dow. Bonds continued to sell off. Commodities rallied ex natural gas.  Updated 1/4 close.

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

  • Wednesday After the Close: RGP of note.
  • Thursday Before the Open: ANGO BBBY CAG STZ HELE LW LNN SAFM SCHN WBA of note.

Earnings of Note This Morning:

  • Beats: SMPL +09.
  • Flat: None.
  • Misses: RPM -0.04.
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 1/4 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: MYNZ +66%, WEJO +22%, SENS +159%, BYND +10%, WATT +9%, HGEN +6%, SONY +4%, NRXP +4%, ONCT +3%
  • Gap Down: ANNX -23%, SWIM -9%, ARE -5%, SGH -4., MLKN -3%

Insider Action: No insider action of note this morning with heavy short selling.

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: FL UA WMG  (CNBC)
  • Covid cases rose to 828,417 cases from 441,278 a week ago. Hospitalizations rise to 85,423 from 63,106. (CDC)
  • Washington is talking about another Covid-19 relief bill. (The Washington Post)
  • Omicron seeing less hospitalizations that require ICU or ventilation. (NYT)
  • Canada shuts down schools. indoor dining and theaters. (Politico)
  • Indiana limiting Covid-19 tests based on symptoms and age risk factors. (NBC News)
  • Walmart (WMT) and Kroger (KR) raise price for Covid-19 tests. (Bloomberg)
  • Nikola (NKLA) drops a $2 billion lawsuit against Tesla (TSLA). (Bloomberg)
  • Shopify (SHOP) may open physical stores. (Business Insider)
  • Walmart (WMT) expands InHome delivery to 30 million U.S. homes this year.
  • Pfizer (PFE) and BioNTech (BNTX) to collaborate on a mRNA based shingles test.
  • AT&T (T) provides Q4 and FY 2021 metrics ahead of Citi conference.
  • Orasure (OSUR) lowers Q4 revenue guidance below consensus.

Moving Average Update:

  • Score dipped rose to 90% from 77%. Updated 1/4 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and Vice President receive the Daily Briefing at 10:10 a.m. EST.
    • Press Briefing with Covid-19 Response Team at 11:00 a.m. EST.
    • Press Briefing on Supply Chain Disruptions Task Force at 12:15 p.m. EST.

Economic: 

  • December ADP Employment Report is due out at 8:15 a.m. EST and is expected to fall to 425,000 from 534,000.

  • The latest Federal Reserve Open Market Committee (FOMC) Minutes are due to be released at 2:00 p.m. EST.

  • Weekly Crude Oil Inventories is due out at 10:30 a.m. EST.

Federal Reserve Speakers:

  • None of note.

M&A Activity: 

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences: JP Morgan Tech Auto Forum, Morgan Stanley Auto Conference, RBC Capital Market New Years Previews  
    • Previously Posted and Ongoing Conferences:
      • Sankey Refining Conference (1/3-5)
      • Citigroup 2022 AppsEconomy Conference
      • Raymond James Deer Valley Summit
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: EWTX FDS IMVT SSD TORO
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: OPEC Meeting (1/4)
    • Previously Posted and Ongoing Conferences:
      • Consumer Electronic Show (CES) (1/3-1/7).

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:

Tuesday’s Upgrades and Downgrades: