Overnight Summary: The S&P 500 closed Thursday higher by 0.12% at 4508.24 from Wednesday higher by 0.18% at 4502.88. The overnight high was hit at 4536.25 at 5:55 a.m. EST while the low was hit at 4523.50 at 9:10 p.m. EST. The range overnight was 13 points as of 7:25 a.m. EST. The 10-day average of the overnight range is at 14.70 from 15.20. The average for May-October average was 22.06 from 20.96. Currently, the S&P 500 is higher by +9.75 points which is +0.22% at 7:25 a.m. EST.
Earnings Out After The Close:
- Beats: UGI +0.68, BZH +0.41, GPS +0.39, POST +0.29, AMAT +0.13, ROST +0.11, ZTO +0.09, ESE +0.03, WWD +0.02, CPRT +0.01, GLOB +0.01 of note.
- Flat: none of note.
- Misses: DLB (0.13), CMP (0.08) of note.
Capital Raises:
- IPOs Priced or News:
- DayDayCook (DDC) Announces Pricing of Initial Public Offering.
- New SPACs launched/News:
- CorpAcq and Churchill Capital Corp VII (CVII) Announce Filing of Registration Statement on Form F-4 in Connection with Proposed Business Combination and CorpAcq’s First Half 2023 Results.
- OSR Holdings Co., Ltd. Enters Into Business Combination Agreement with Bellevue Life Sciences Acquisition Corp (BLAC).
- Secondaries Priced:
- DRS: Announces Pricing of an Upsized Secondary Offering of of 18,000,000 shares of its common stock at an offering price of $17.75 per share by a Leonardo S.p.A. Subsidiary.
- Notes Priced of note:
- HLX: Announces Pricing of Senior Notes Offering.
- Common Stock filings/Notes:
- AER: Announces Completion of Secondary Share Offering, Including the Full Exercise of Underwriters’ Option to Purchase Additional Shares.
- AIRE: Filed Form S-11.. Up to 1,666,666 Common Units, Each Common Unit Consisting of One Share of Common Stock and One and a Half Common Warrants to Purchase One and a Half Shares of Common Stock.
- Direct Offering:
- BBLG: Announces Registered Direct Offering Priced At-the-Market Under Nasdaq Rules.
- Selling Shareholders of note:
- IMNM: Files for 21,690,871 shares of common stock by selling shareholders.
- WRAP: Files for 910,610 shares of common stock by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- BIAF: Filed Form S-3.. $25,000,000 Mixed Shelf.
- BTOG: Filed Form F-3.. $50,000,000 Mixed Shelf.
- PAVS: Filed Form F-3.. $100Million Mixed Shelf.
- Debt/Credit Filing and Notes:
- ACCD: Announces repurchase of $76.5 million of 0.50% Convertible Senior Notes due 2026.
- Tender Offer:
- Freeport-McMoRan (FCX) Recommends Rejection of Below-Market Price Mini-Tender Offer.
- Lilly (LLY) Extends Tender Offer to Acquire POINT Biopharma to Dec. 1, 2023.
- Paramount Global (PARA) Announces Early Tender Results of its Maximum Tender Offers for Certain Outstanding Debt Securities.
- 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: GPS +15%, WRAP +7%, ROST +5%, DDS +4% of note.
- Trading Down: CHPT -27%, VIGL -11%, AMSWA -9%, AMAT -7%, IMNM -5%, DLB -4%, CMP -4% of note.
- News Items After the Close:
- Stocks making the biggest moves after the bell: ROST, GPS, CHPT, AMAT, CMP (CNBC)
- Applied Materials (AMAT) dips slightly after reports the company is being probed for shipments sent to China’s SMIC (SMICY). (Reuters)
- ChargePoint (CHPT) stock slumps 30% after revenue warning, CEO change. (MarketWatch)
- Google (GOOGL) Delays Release of Gemini AI That Aims to Compete With OpenAI. (TheInformation)
- Apple’s (AAPL) Push to Replace Qualcomm (QCOM) Chip in iPhone Loses More Ground. (Bloomberg)
- Amazon (AMZN) will allow auto dealers to sell cars on its site, starting with Hyundai. (CNBC)
- California Cuts Rooftop Solar Credits For Rentals, Schools impacting TAN ETF and those stocks in that ETF.
- ICF International (ICFI) awarded a new $32 million task order by U.S. Department of Homeland Security to modernize ICE’s homeland security investigations systems.
- Exchange/Listing/Company Reorg and Personnel News:
- Delayed 10-Q Filings: MVLA
- BancFirst (BANF) CFO Kevin Lawrence to resign.
- Brighthouse Financial (BHF) announces $750 million stock repurchase program.
- Caledonia Mining (CMCL) announces that Dana Roets will step down from his role as COO.
- ChargePoint (CHPT) names new CEO, CFO steps down.
- Clorox (CLX) elects CEO Linda Rendle to the role of Chair, effective January 1; current Board Chair Matthew Shattock to become lead independent director.
- Color Star Technology (ADD) Received Nasdaq Notification Letter Regarding Bid Price Deficiency.
- Cutera, Inc. (CUTR) Receives Notification of Deficiency from Nasdaq Related to Delayed Annual Report on Form 10-Q.
- Fluence (FLNC) names Ahmed Pasha as CFO.
- Green Dot (GDOT) announced the appointment of Dave Harden as Chief Technology Officer.
- Henry Schein (HSIC) Announces Receipt of Deficiency Notice From Nasdaq Regarding Requirement to Timely File Quarterly Report on Form 10-Q.
- KB Financial (KB) appointed Mr. Jong Hee Yang as the new chief executive officer of KB Financial Group.
- MarketWise (MKTW) announces it appointed Charles N. Curlett, Jr. as COO.
- Movella (MVLA) receives Nasdaq notice regarding late form 10-Q filing.
- Missfresh (MF) Receives Delisting Notice from Nasdaq.
- Novavax (NVAX) names John Trizzino to the newly created role of President and Chief Operating Officer.
- ONE Gas (OGS) CFO Caron A. Lawhorn to retire.
- Perimeter Solutions (PRM) discloses Charles Kropp will no longer serve as Chief Financial Officer.
- Sasol (SSL) names new Chief Executive Officer.
- Virpax Pharmaceuticals (VRPX) Announces Leadership Transition.
- Buyback Announcements or News:
- Brighthouse Financial (BHF) Announces $750 Million Stock Repurchase Program.
- Calix Networks (CALX) increases stock repurchase authorization by an additional $100 million under existing stock repurchase program.
- Motorola Solutions (MSI) approves a $2.0 billion increase to share repurchase program. (see Dividend)
- O’Reilly Auto (ORLY) approves an increase to its share repurchase program by an additional $2.0 billion, raising the aggregate authorization to $25.75 billion.
- Primerica (PRI) announces $425 million share repurchase program for 2024.
- Xenia Hotels & Resorts (XHR) Announces Board Approval For A $100 Million Increase In Share Repurchase Program. (see Dividend)
- Yatra Online, Inc. (YTRA) Announces $5 Million Share Repurchase Authorization.
- Stock Splits or News:
- ADDvantage Technologies Group, Inc. (AEY) Completes 1-for-10 Reverse Stock Split as Part of Nasdaq Compliance Plan.
- Regis Corporation (RGS) Announces Reverse Stock Split to Regain Compliance with Minimum Bid Price Requirements.
- Tharimmune (THAR) Announces 1-for-25 Reverse Stock Split.
- Other Reverse split stocks today SNES TRVG
- Dividends Announcements or News:
- Brown-Forman (BF.A) increases quarterly cash dividend 6% to $0.2178 per share from $0.2055.
- Dillard’s (DDS) announces special dividend of $20 per share on Class A and Class B Common Stock.
- Motorola Solutions (MSI) increases quarterly dividend by 11% to $0.98 per share.
- Natural Grocers by Vitamin Cottage, Inc. (NGVC) Declares Special Dividend and Quarterly Dividend.
- Teck Resources (TECK) declared an eligible dividend of $0.125 per share.
- Xenia Hotels & Resorts (XHR) Declares Dividend For Fourth Quarter 2023.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +11, Dow Jones +104, NASDAQ +7, and Russell 2000 +19. (as of 7:58 a.m. EST). Asia is lower ex Japan while Europe is higher this morning. VIX Futures are at 15.09 from 15.35 yesterday. Gold, Silver and Copper higher this morning for a third day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher. US 10-year Treasury sees yields at 4.41% from 4.498% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $36,419 from $37,261 yesterday, higher by 1.25% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Communication Services of note.
- Daily Negative Sectors: Energy, Consumer Defensive, Consumer Cyclical 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.
Earnings selloffs in Cisco Systems (CSCO) -9.83% and Walmart (WMT) -8.09% pulled down the Dow. But the broader market narrowly overcame those drags as well as tumbling energy shares to keep the November rally going. The S&P 500 added 0.1%. The tech-oriented Nasdaq Composite eked out a smaller gain than that and is now up 9.8% this month. The Dow Jones Industrial Average shed about 0.1%, or 46 points. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
- Monday Before the Open:
Earnings of Note This Morning:
- Beats: SPB +0.33, TWST +0.11, BKE +0.09, BJ +0.03 of note.
- Flat: None of note.
- Misses: of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: None of note.
- Negative Guidance: WSM, DLB, CHPT, UGI, ATKR of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: GPS +18%, ROST +7% of note.
- Gap Down: CHPT -26%, AMSWA -13%, VIGL -11%, AMAT -7%, DLB -6%, CMP -5%, ATKR -4% of note.
Insider Action: MTDR sees Insider buying with dumb short selling. DAR 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: Xi’s Big Week Ends With Rare Wins on U.S. Ties, Taiwan, Economy. (Bloomberg)
- Bloomberg Most Shared Story: Apple plans to make it easier to text between iPhones and Android phones. (Bloomberg)
- Stocks, Bonds rise as rate cut conviction builds: Market Wrap. (Bloomberg)
- Oil collapses into bear market as robust supply pressures OPEC+. (Bloomberg)
- Amazon (AMZN) says employees may not get promoted if they do not “return to office”. (CNBC)
- NPR Morning Report Marketplace: Google (GOOGL) and Apple’s (AAPL) complicated relationship and Meta’s (META) chance to return to China. (Podcast)
- NY Times The Daily: Two Superpowers walk into a garden. (Podcast)
- BBC Global News: Israel troops find body of a hostage. (Podcast)
- Bloomberg: The Big Take: Wrap: Shutdown averted. Trump legal battles. Campaign 2024. (Podcast) `
- Wealthion: The great energy transition. (Podcast)
Moving Average Update:
- Score goes to 94% from 97%.
Geopolitical:
- President’s Public Schedule:
- The President hosts a bilateral meeting with President Andrés Manuel López Obrador of Mexico, 1:00 p.m. EST
- The President hosts the APEC Leaders Retreat, where he will officially transfer the APEC chair to President Boluarte of Peru, 2:00 p.m. EST
- The President departs San Francisco, California en route to Philadelphia, Pennsylvania, 4:20 p.m. EST
Economic:
- October Housing Starts are due out at 10:00 a.m. EST and is expected to rise to 1,365,000 from 1,358,00.
- Quarterly Services Survey 10:00 a.m. EST
- Baker Hughes Rig Count 1:00 P.m. EST
Federal Reserve / Treasury Speakers:
- Federal Reserve Boston President Susan M. Collins 8:45 a.m. EST
- Federal Reserve Chicago President Austan Goolsbee 9:45 a.m. EST
- Federal Reserve San Francisco President Mary Daly 10:00 a.m. EST
- Federal Reserve Boston President Susan M. Collins 10:15 a.m. EST
M&A Activity and News:
- The Duckhorn Portfolio (NAPA) to acquire Sonoma-Cutrer Vineyards from Brown-Forman Corporation (BF.B) for approximately $400 mln in cash and stock. (MarketWatch)
- Tenet Healthcare (THC) to sell three Tenet hospitals and related operations in South Carolina for approximately $2.4 billion in cash to Novant Health.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
- Previously posted and ongoing conferences:
- Stephens Investment Conference
- UBS Aerospace and Defense Conference
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: EL, FOX, PETV, SYY
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: OZ, VHC
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Microsoft (MSFT) Ignite
- Industry Meetings:
- Milipol Homeland Security and Safety event
- Society for Immunotherapy of Cancer
- Previously posted and ongoing conferences:
- Society for Neuro Oncology Meeting 2023 (11/15/23-11/18/23)
- Blockchain & Digital Assets Summit
- Previously posted and ongoing conferences:
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:
