Overnight Summary: The S&P 500 closed Tuesday higher by 1.91% at 4495.70 from Monday lower by -0.08% at 4411.55. The overnight high was hit at 4530.50 at 6:50 a.m. EST while the low was hit at 4510 at 4:05 p.m. EST. The range overnight was 21 points as of 7:05 a.m. EST. The 10-day average of the overnight range is at 15.90 from 16.80 on 8/15.  The average for May-October average was 22.06 from 20.96. Currently, the S&P 500 is higher by +19.25 points which is  0.43% at 7:05 a.m. EST.

Earnings Out After The Close: 

• IPOs Priced or News: None of note.
• New SPACs launched/News:
  • Plutonian Acquisition Corp. (PLTN) Announces Additional Contribution to Trust Account to Extend Period to Consummate Business Combination.
• Secondaries Priced:
  • MOVE: Prices $3.6 Million Public Offering.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • FBIO: Announces Closing of $10.0 Million Public Offering.
  • MOVE: Proposed Public Offering. (Benchmark bookmanager)
• Direct Offering: None of note.
• Selling Shareholders of note:
  • DT: Announces the commencement of an underwritten public offering of 10,000,000 shares of common stock by certain selling stockholders of Dynatrace
  • INTA: Files for 5,000,000 shares of common stock by selling shareholders. (Citi underwriter)
• Private Placement of Public Entity (PIPE):
  • OTRK: Announces Closing of $6.3 Million Public Offering, $11 Million Concurrent Private Placement and $16.3 Million Conversion of Secured Notes.
• Mixed Shelf Offerings:
  • RVNC: Filed Form S-3ASR.. Mixed Shelf Offering.
• Debt/Credit Filing and Notes:
  • BURU: Announces $5.5 Million Bridge Financing.
  • NBR: Announces Offering of $550 Million Senior Priority Guaranteed Notes.
• 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: 
  • Trading Up: ARCT +14% of note.
  • Trading Down:  VREX -10%, GETY -6%, ALC -4%, INTA -4% of note.
• News Items After the Close:
  • House Passes Continuing Resolution to Avert Shutdown. (WSJ)
  • Solid breadth/volume. Believe S&P Goldilocks/Year End rally can extend further on +seasonality, FOMO & light positioning by funds. Like lagging high beta sectors of barbell investments more through Year End (eg R2K +5% today, +2% YTD) vs Mag7 (+2%, +105% YTD) w/ $AMZN $META our favs of Mag7.  (Dan Niles post)
  • Charter Comm (CHTR) charged $25 million by the SEC for unauthorized stock buybacks.
  • Ken Griffin of Citadel Sees Miami Possibly Replacing NYC as Finance Capital. (Bloomberg)
  • RTX: U.S. State Department approves $650 million sale of Standard Missile 6 Block I to South Korea.
  • Granite Constr (GVA) joint venture was awarded another contract by the California Department of Transportation for $131 million.

• Exchange/Listing/Company Reorg and Personnel News:
  • Advance Auto Parts (AAP) Appoints Ryan Grimsland as Executive Vice President and Chief Financial Officer.
  • Centene (CNC) names Susan Smith as COO.
  • GoodYear (GT) announces leadership succession plan. CEO to retire.
  • JD.com (JD) Announces Change of Chief Executive Officer of JD Retail.
  • Live Oak Bancshares (LOB) appoints Walter Phifer as CFO and President.
  • Manchester United (MANU) CEO Arnold to leave club. (Sky News)
  • NIKE (NKE) Announces Leadership Changes to Accelerate the Future of Sport.
  • Phunware (PHUN) Announces Inducement Grant under Nasdaq Listing Rule 5635(c)(4).
  • Truist (TFC) appoints Vice Chair Beau Cummins to newly created role of COO.
• Buyback Announcements or News: 
  • Chegg (CHGG) Announces New $150 Million Accelerated Share Repurchase.
  • StoneCo (STNE) announces new share repurchase program of up to r$ 1 billion.
• Stock Splits or News:
  • CELH trading Split price.
• Dividends Announcements or News: 
  • Amkor Technology (AMKR) Announces 5% Increase in Quarterly Dividend.
  • Insteel Industries (IIIN) declares a special cash dividend of $2.50 per share payable on December 22, 2023.
  • Nike (NKE) raises dividend by 8.8% to $0.37 a share.
  • Royal Gold (RGLD) increases quarterly cash dividend 7% to $0.40 per share from $0.375 per share.
• Insider Sales Of Note: None of note.

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: Real Estate, Utilities, Basic Materials, Consumer Cyclical, Industrials, Financial, Technology of note.
• Daily Negative Sectors: None of note.
• One Month Winners: Technology, Consumer Defensive, Consumer Cyclical and Financials of note.
• Three Month Winners: Technology and Communication Services of note.
• Six Month Winners: Technology, Communication Services, Energy, Consumer Cyclical of note.
• Twelve Month Winners: Communication Services, Technology, Consumer Cyclical and Industrials of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical and Industrials of note.

An autumn stock market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.  Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.  Hopes that rates have peaked had already sent major indexes sharply higher since the central bank’s last meeting, and some investors have marveled at the speed of the ascent in recent weeks.

It was interesting that Core CPI was up 4.0% year over year but markets ignored that number. The inflation data kicked the rally into high gear Tuesday and set off a wave of buying in the government bond market, which notched its biggest one-day rally since Silicon Valley Bank collapsed.   The S&P 500 jumped 1.9%, bringing its November gains to 7.2%. The tech-heavy Nasdaq Composite added 2.4%, pushing its advance this month to almost 10%. The Russell 2000 gained 5.44%. A jump in shares of Home Depot (HD) and Goldman Sachs (GS) helped send the Dow Jones Industrial Average up 490 points, or 1.4%, Tuesday, and 5.4% for the month. The S&P 500 and Nasdaq recorded their biggest one-day jumps since April. (WSJ – edited by QPI)

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

• Gap Up: ARCT +15%, ACLX +9%, DADA +5%, CLLS +4%, JD +4%, SIRI +4% of note.
• Gap Down: VREX -8%, ALC -4% of note.

Insider Action: No stock 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.

• Five Things You Need To Know Before You Start Your Day. (Bloomberg)
• 5 Things To Know Before The Stock Market Opens. (CNBC)
• Bloomberg Lead Story:  Biden, Xi Eye Economic and Military Thaw in High Stakes Meeting. (Bloomberg)
• Bloomberg Most Shared Story: Rolex, Patek price hit fresh two-year lows: Subdial Index. (Bloomberg)
• Morning Bid: Inflation on the ropes, shutdown averted. (Reuters)
• Stocks extend rally as Target soars on profit beat: Market Wrap. (CNBC)
• Mortgage demand climbs to a five-week high as interest rates drop. (CNBC)
• Thanksgiving dinner is cheaper than last year but near historic highs. (Fox Business)
• Target (TGT) shares jump as earnings beat but sales fall. (CNBC)
• Advanced Auto Parts (AAP) shares drop 6.5% as earnings miss but sales beat. (MarketWatch)
• NPR Morning Report Marketplace:  Autonomous Vehicles hits another roadblock. (Podcast)
• NY Times The Daily:  A strategy to treat Big Tech like Big Tobacco. (Podcast)
• BBC Global News:  Hamas is using hospitals as command centers in Gaza. (Podcast) 
• Bloomberg: The Big Take: The EV Era is here and China is in the lead.  (Podcast) `
• Wealthion:  Why are stocks up with a slowing economy? (Podcast)

Moving Average Update:

• Score jumps to 94% from 82%.

Geopolitical: 

M&A Activity and News: 

• Core & Main (CNM) to acquire Lee Supply Company.
• Novanta (NOVT) announces agreement to acquire Motion Solutions for $189 million in cash.
• Stantec (STN) to acquire ZETCON Engineering.

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: