Overnight Summary: The S&P 500 closed Friday higher by 1.18% at 4308.50 from Thursday lower by -0.13% at 4258.19. The overnight high was hit at 4346.50 at 4:15 p.m. EDT while the low was hit at 4299.50 at 3:25 a.m. EDT. The range overnight was 47 points as of 7:25 a.m. EDT. The 10-day average of the overnight range is at 30.20 from 28.70 down from a peak of 31.50 on 8/15 but getting close to retaking that high. The average for May-September average was 20.96 from 21.10 in May through August and the September average was 19.87. Currently, the S&P 500 is lower by -27.75 points which is -0.64% at 7:25 a.m. EDT.
Earnings Out After The Close:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ACST: Filed Form S-3.. 6,594,615 Common Shares.
- LQR: Filed Form S-1.. 26,315,789 shares of Common Stock.
- SNES: Filed Form S-3.. 6,015,879 Shares of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- BDRX: Filed Form F-1 Mixed Shelf.
- BHAT: Filed Form F-3.. $150,000,000 Mixed Shelf.
- Debt/Credit Filing and Notes:
- AQN: Announces Redemption of its 6.875% Fixed-to-Floating Subordinated Notes – Series 2018-A due 2078.
- 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 and Over the Week:
- Weekly Wrap Up: Best and Worst performing large cap stocks:
- Trading Up: GRTS 67.4%, MRTX 38.5%, PBI 22.4%, NGD 16.5%, FL 14.0%, PETQ 12.7%, MKTX 12.1%, PCTY 12.0%, OSTK 11.8%, ROAD 11.0%, BAH 9.6%, ADT 8.3%, SIMO 8.1%, PDD 7.9%, CDXS 7.7%.
- Trading Down: BPT -31.5%, EBIX -29.0%, OMAB -25.3%, NEP -24.1%, TSE -23.2%, ATEN -23.1%, BGS -22.6%, SNBR -21.1%, COMM -20.1%, BB -19.9%, KLXE -19.5%, AES -18.6%, BIG -18.0%, NWL -17.9%.
- News Items After the Close:
- Microsoft (MSFT) to Debut AI Chip Next Month That Could Cut Nvidia (NVDA) GPU Costs. (TheInformation)
- Lockheed Martin (LMT) raises dividend, approves $6 billion additional share buyback. (MarketWatch)
- Ford (F) Lays Off Additional 495 Workers Citing UAW Strike.
- US Foods (USFD) awarded a DLA contract worth up to $145 million for full-line food distribution.
- News Items Over the Weekend:
- The Score – Stocks That Defined the Week: KLG, K, GM, F, UBER, CLM, CLX, PXD (WSJ)
- Hamas Invaded Israel from Gaza and then Israel defended itself against Hamas as They Struggle to Expel Hamas From Israel. (WSJ)
- Nelson Peltz Boosts Disney (DIS) Stake, Seeks Board Seats. (WSJ)
- The Oil Patch Is Primed for an Era of Megadeals. (WSJ)
- Barron’s:
- Positive View: MRK, HCA, HUM, REGN, VRTX, IMCR, PRTA, VRTX, AZN, APLS, BCX, SRPT, MCK, AAPL, MSFT, GOOG, META, NVDA, TSLA, AMZN, PEP of note.
- Cautious View: None of note.
- Mixed View: None of note.
- Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:
- Exchange/Listing/Company Reorg and Personnel News:
- Addex (ADXN) Announces Plan to Implement ADS Ratio Change.
- Anebulo Pharmaceuticals (ANEB) Announces New CEO.
- CNFR: Nick Petcoff to Become Chief Executive Officer of Conifer Holdings, Inc.
- Firsthand Technology Value Fund (SVVC) Announces Voluntary Delisting from Nasdaq Global Market.
- Regis Corporation (RGS) Receives Continued Listing Notice From NYSE.
- TRX Gold (TRX) Announces Passing of Founder and Chairman James E. Sinclair.
- USA Compression Partners (USAC) CFO Michael Pearl to step down to pursue other opportunities.
- Yunji (YJ) Announces Receipt of Nasdaq Notice.
- Zentalis Pharma (ZNTL) COO Iris Roth, Ph.D. to step down.
- Buyback Announcements or News:
- NSTS Bancorp (NSTS) Announces Extension of Stock Repurchase Program.
- Lockheed Martin (LMT) (see news after the close)
- Stock Splits or News:
- Borqs Technologies (BRQS) Announces Reverse Stock Split.
- Dividends Announcements or News:
- Lockheed Martin (LMT) (see news after the close)
- Talaris Therapeutics (TALS) Declares Special Dividend In Connection with Proposed Merger with Tourmaline Bio.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -27, Dow Jones -170, NASDAQ -120, and Russell 2000 -15. (as of 8:01 a.m. EDT). Asia is higher ex the Nikkei while Europe is lower this morning ex the FTSE. VIX Futures are at 18.92 from 19.60 yesterday. Gold, Silver and Copper higher this morning for a second day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher as well. US 10-year Treasury sees yields at 4.795% from 4.749% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $27,524 from $27,701 today, lower by -1.39%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Communication Services, Basic Materials, Industrials, Utilities, Consumer Cyclical, Healthcare of note.
- Daily Negative Sectors: Consumer Defensive of note.
- One Month Winners:
Energy, Communication Services of note.
- Three Month Winners: Communication Services and Energy of note.
- Six Month Winners: Communication Services, Technology, Consumer Cyclical,
Energy of note.
- Twelve Month Winners: Technology, Communication Services, and Industrials,
Energy of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.
Stocks rallied to end the week on a high note after investors warmed to an unexpectedly robust U.S. jobs report. On Friday, the Labor Department said U.S. employers added 336,000 jobs in September, the highest tally since January. The news initially rattled markets, briefly sending bond yields to their highest level in 16 years and pushing major U.S. stock indexes down in early trading. But Treasury yields came off their highs and stocks rallied after many analysts and portfolio managers concluded that the report continued a recent trend of softening wage growth. That is important because economic data has often come in stronger than Wall Street expected in recent months, leading investors to rethink whether the Federal Reserve is done lifting interest rates and how long it will keep them at a restrictive level. The S&P 500 rose 1.2%, the Dow Jones Industrial Average added 0.9%, and the Nasdaq Composite was 1.6% higher. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Monday After the Close: None of note.
- Tuesday Before the Open:
Earnings of Note This Morning:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: SIMO of note.
- Negative Guidance: None of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: TALS +8%, RNA +5% of note.
- Gap Down: None of note.
Insider Action: COTY sees Insider buying with dumb short selling. HHH 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.
- Stocks making the biggest moves premarket: XOM, LMT, DIS, ARM, SPOT, ORCL, ZS, OWL, MRTX, TSLA (CNBC)
- 5 Things Need To Know to Start Your Day. (Bloomberg)
- 5 Things to Know Before the Stock Market Opens. (CNBC)
- Bloomberg Lead Story: Israel Latest: Over 1,100 Dead As Conflict Hits Oil and Shekel. (Bloomberg)
- Bloomberg Most Shared Story: The Free-Money Experiment is Over. (Bloomberg)
- Oil jumps, US Futures Drop on Middle East Conflict: Market Wrap. (Bloomberg)
- China targets a 50% boast in AI computing power as AI race with U.S. ramps up. (CNBC)
- House Speakership to be decided by Mid Week. (Bloomberg)
- Oil surges as Israel conflict reignites Middle East volatility. (Bloomberg)
- UAW says 4,000 workers will strike at Mack Trucks today. (Bloomberg)
- NPR Morning Report Marketplace: As SBG sits in court, is cyptocurrency on trial too? (Podcast)
- NY Times The Daily: War in Israel. (Podcast)
- BBC Global News: Israel declares state of war with Hamas. (Podcast)
- Bloomberg: Can AI Beat the Market? Do we want it to? (Podcast)
- Wealthion: 2024 to be the year of economic reckoning? (Podcast)
Moving Average Update:
- Score improves to 45% from 20%. 5 day MA’s all broken out to the upside.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 10:00 a.m. EDT
Economic:
- Investor Movement Index 12:30 p.m. EDT
- More than likely a quiet day as the bond market is closed for Columbus Day Observances. However, market reaction to the invasion of Hamas into Israel could throw stock and energy markets into disarray.
Federal Reserve / Treasury Speakers:
- Federal Reserve Bank of Dallas President Lorie Logan 9:00 a.m. EDT
- Federal Reserve Vice Chair for Supervision Michael S. Barr 9:15 a.m. EDT
- Federal Reserve Board of Governors Philip N. Jefferson 1:30 p.m. EDT
M&A Activity and News:
- Bristol Myers Squibb (BMY) to buy Mirati Therapeutics (MRTX) in a $5.8 billion deal. (CNBC)
Meeting & Conferences of Note:
- Sellside Conferences:
- Jones Trading Healthcare Summit (10/09/23-10/11/23)
- Piper Sandler Technology Private Equity Summit
- Previously posted and ongoing conferences: None of note.
- Top Shareholder Meetings: None of note.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: RPHM
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
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:
