Overnight Summary: The S&P 500 closed Tuesday higher by 0.10% at 4554.89 from Monday lower by -0.20% at 4550.23. The overnight high was hit at 4582.25 at 7:00 a.m. EST while the low was hit at 4562.75 at 4:05 p.m. EST. The range overnight was 20 points as of 7:15 a.m. EST. The 10-day average of the overnight range is at 14,50 from 13.70. The average for May-October average was 22.06 from 20.96. Currently, the S&P 500 is higher by +16.75 points which is 0.37% at 7:15 a.m. EST.
Executive Summary: Stocks struggling Monday, recovered yesterday and moved higher in the after market as the 4:00 p.m. EST close was the low. Call it the “Bill Ackman Rally”, see Rags & Mags. Rates continue to fall as the 10 Year moves below 4.30%. Short Interest rose for NYSE by 1.00% and NASDAQ by 1.07%. This is pretty amazing as the S&P 500 rose by 7.17% in the latest collection period. Shorts pressed their bets. Given that 58% of stocks are lower for the year, maybe that is the correct thing to do. Time will tell.
- Q3 GDP (second update) is due out at 8:30 a.m. EST and is expected to remain at 4.9%.
- Federal Reserve Cleveland President Loretta Mester 1:45 p.m. EST
- The Latest Federal Reserve Beige Book is due out at 2:00 p.m. EST.
Earnings Out After The Close:
- Beats: INTU +0.49, SPLK +0.38, NTAP +0.17, WDAY +0.14, FLNC +0.09, CRWD +0.08, AZEK +0.07, HPE +0.02 of note.
- Flat: None of note.
- Misses: LESL (0.02) of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- 10X Capital Venture Acquisition Corp. III (VCXB) Receives NYSE Notice Regarding Late Form 10-Q Filing.
- Fenix 360 Pte Ltd. To Go Public Through Merger With DUET Acquisition Corp. (DUET) to Create a Global Social Media Platform.
- Everest Consolidator Acquisition Corporation (MNTN) Receives NYSE Notice Regarding Delayed Form 10-Q Filing.
- Secondaries Priced:
- LVS: Pricing of Common Stock Offering by its Principal Stockholder.. 46,264,168 shares @$44.
- SEEL: Pricing of $5.55 Million Public Offering.. 1,781,934 shares @$1.32.
- VERV: Pricing of Public Offering of Common Stock and Concurrent Private Placement 12,500,000 shares @$10.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- SEEL: Commences public offering of its common stock; subsequent 15% buyback.
- Direct Offering: None of note.
- Selling Shareholders of note:
- Las Vegas Sands (LVS) announces launch of $2 billion of common stock offering by its by Dr. Miriam Adelson and The Miriam Adelson Trust.
- Private Placement of Public Entity (PIPE):
- AIRT: Announces Completion of $4.0 million Private Placement of Trust Preferred Securities.
- BITF: Closes CAD60 mln private placement.
- VERV: Announces proposed public offering $35 mln of common stock and to Eli Lilly (LLY) concurrent private placement.
- Mixed Shelf Offerings:
- EA: Files mixed shelf securities offering.
- SWX: Files mixed shelf securities offering.
- Debt/Credit Filing and Notes:
- O: Prices £750 Million Dual-Tranche Offering of Sterling-Denominated Senior Unsecured Notes.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- SPI: Issues $2.2 Million Convertible Promissory Note with $1.10 Per Share Conversion Price.
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 Movers:
- Up: FLNC +14%, NTAP +11%, GME +8%, WDAY +6%, FTCH +5%, OTEX +5%
- Down: SEEL -19%, LESL -14%, JBL -9%, VERV -8%, AZEK -5%, FLEX -4%, LVS -4%
- News Items After the Close:
- Apple (AAPL) Pulls Plug on Goldman (GS) Credit-Card Partnership. (WSJ)
- Alphabet (GOOG):
- Google’s YouTube is getting into gaming by way of mini-games. (Verge)
- YouTube receiving new features for Premium subscribers, including AI experiments. (Release)
- Tesla (TSLA) will host an event on November 30th, 2023 at our headquarters in Austin, Texas at 2:00 p.m. Central Time, where customers will take delivery of Cybertrucks. During this event, Tesla will announce details about the Cybertruck. The event will be live-streamed.
- OpenAI Isn’t Expected to Offer Microsoft (MSFT), Other Investors a Board Seat. (TheInformation)
- CrowdStrike (CRWD) posts better-than-expected earnings, but its stock slips. (MarketWatch)
- Las Vegas Sands (LVS) announces launch of $2 billion of common stock offering by its by Dr. Miriam Adelson and The Miriam Adelson Trust.
- Miriam Adelson and her family are close to buying the NBA’s Dallas Mavericks from Mark Cuban, Sportico reports, citing a person familiar with the details.
- Boeing (BA) awarded $2.3 billion U.S. Air Force contract modification.
- Exchange/Listing/Company Reorg and Personnel News:
- 22nd Century (XXII) Appoints Larry Firestone as Chairman and CEOTurnaround Veteran to Focus on Unlocking Shareholder Value in Tobacco Assets.
- Arcimoto, Inc. (FUV) Announces Receipt of Notice from Nasdaq Regarding Late Filing of Quarterly Report on Form 10-Q.
- Crown Castle (CCI): Elliott Investment Management submitted a Section 220 demand and accompanying letter to the Crown Castle Board; letter contends that Board breached fiduciary duties and it should be reconstituted.
- Cyclacel (CYCC) Receives Notification of Deficiency From Nasdaq Regarding Timely Filing of Quarterly Report on Form 10-Q
- Exicure, Inc. (XCUR) Received Nasdaq Delinquency Notice on Late Filing of its Form 10-Q.
- Eagle Pharmaceuticals (EGRX)
- Announces that President and CEO Scott Tarriff has resigned from his positions.
- Announces Receipt of Notification of Deficiency from Nasdaq Regarding Requirement to Timely File Quarterly Report on Form 10-Q.
- The Hartford (HIG) Announces Leadership Changes.
- Johnson Controls (JCI) files to delay its 10-K citing cybersecurity incident.
- Simmons First National (SFNC) announces that Daniell Hobbs will join as CFO and President.
- SmartFinancial (SMBK) transferring listing of its common stock to NYSE from Nasdaq; to begin trading on NYSE.
- Trinity Biotech (TRIB) Receives Non-Compliance Notice Regarding Nasdaq Global Select Requirement for Minimum Market Value of Publicly Held Shares.
- The Alkaline Water Company (WTER) Receives Nasdaq Notice on Late Filing of Its Form 10-Q.
- Vince Holding Corp. (VNCE) Announces New Chief Financial Officer.
- Worthington Steel (WS) to join S&P SmallCap 600.
- Buyback Announcements or News:
- GM: Announces a $10 Billion Accelerated Share Repurchase Program. (see dividends)
- LQR House (LQR) Repurchases 3,050,722 Shares in Ongoing Share Buyback Program.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- BayCom Corp (BCML) Announces Cash Dividend
- Enbridge (ENB) increases its dividend by 3% to $3.66 per share from $3.55 per share.
- GM: Announces a 33% Dividend Increase Starting in 2024.
- H World Group Limited (HTHT) Announces Cash Dividend.
- Hewlett Packard Enterprise (HPE) raised its quarterly dividend 8.3% to $0.13 per share.
- McCormick (MKC) raises quarterly dividend to $0.42 per share from $0.39 per share prior.
- MSFT announces a quarterly dividend of $0.75 per share, aligning with its previous dividend.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +21, Dow Jones +122, NASDAQ +102, and Russell 2000 +20. (as of 8:01 a.m. EST). Asia is lower ex ASX 200 while Europe is higher ex the FTSE this morning. VIX Futures are at 13.70 from 14 this morning. Gold, Silver and Copper are higher this morning for a second day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas lower. US 10-year Treasury sees yields at 4.284% from 4.398% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $38,167 from $37,194 lower by -0.14% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Consumer Cyclical, Basic Materials, Real Estate, Consumer Defensive, Utilities of note.
- Daily Negative Sectors: Healthcare, Industrials of note.
- One Month Winners: Technology, Real Estate, Consumer Cyclical of note.
- Three Month Winners: Technology, Communication Services, and Financial of note.
- Six Month Winners: Consumer Cyclical, Technology, Communication Services of note.
- Twelve Month Winners: Communication Services, Technology and Consumer Cyclical of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical and Industrials of note.
The S&P 500 edged higher Tuesday, lifted by rising tech stocks and consumer-focused shares. The broad U.S. stock index is on pace to end November with its best monthly performance since July 2022, boosted by a decline in bond yields. The S&P 500 gained 0.1%, while the Nasdaq Composite advanced 0.3%. The Dow Jones Industrial Average added 0.2%, or about 84 points. Benchmark yields crept lower, with the yield on the 10-year U.S. Treasury note ending at 4.335%, down from 4.388% on Monday. Lower yields make the returns offered by the stock market more appealing to investors. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Wednesday After the Close:
- Thursday Before the Open:
Earnings of Note This Morning:
- Beats: FL +0.09, DCI +0.03 of note.
- Flat: None of note.
- Misses: BILI (0.22), DLTR (0.04), HRL (0.04) of note.
- Still to Report: ROAD, PDCO, WOOF, VSTS of note.
Company Earnings Guidance:
- Positive Guidance: MU, NTAP, CRWD, UNH, FL of note.
- Negative Guidance: INTU, LESL, AZEK, JBL, HRL of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: FLNC +19%, NTAP +12%, GME +12%, WDAY +8%, BITF +5%, OTEX +4% of note.
- Gap Down: SEEL -33%, LESL -15%, VERV -11%, FTCH -6%, JBL -6%, LVS -5%, BILI -4% of note.
Insider Action: KMPR, RWAY 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 Tuesday. (CNBC)
- Bloomberg Lead Story: Hedge Fund Manager Bill Ackman Bets The Fed Will Cut Interest Rates As Soon As The First Quarter. (Bloomberg)
- Bloomberg Third Most Shared Story: Charlie Munger Who Helped Warren Buffet Build Berkshire Hathaway, Dies at 99. (Bloomberg)
- Stocks advance with Treasuries as “Fed Pivot” bets grow: Market Wrap. (Bloomberg)
- OPEC+ talks continue. (Reuters)
- Foot Locker (FL) beats on earnings, upbeat outlook causes shares to rise. (CNBC)
- General Motors (GM) restarts buyback, reinstates dividend and reinstates 2023 guidance. What about 2024? (CNBC)
- Mortgage demand rises as rates continue to fall. (CNBC)
- U.S. Economy is back to normal for first time in two decadees says IBM Vice Chairman and former Goldman Sachs partner Gary Cohn. (CNBC)
- Bloomberg The Big Take: Prospects for an Israel-Hamas continuing cease-fire. (Podcast)
- NPR Marketplace: The Bust after the Boom hits video game business. (Podcast)
- NY Times Daily: Ending Roes was supposed to reduce abortions, it did not. (Podcast)
- BBC Global News Daily Podcast: Trapped Indian workers freed after 17 days. (Podcast)
- Wealthion: Interview with Anthony Scaramucci. (Podcast)
Moving Average Update:
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 12:00 p.m. EST
- The President departs Denver, Colorado en route to Pueblo, Colorado, 1:10 p.m. EST
- The President arrives in Pueblo, Colorado, 1:55 p.m. EST
- The President tours CS Wind—the largest wind tower manufacturer in the world, 2:35 p.m. EST
- The President delivers remarks on how Bidenomics is mobilizing investments in clean energy manufacturing and creating good-paying jobs in communities across the country, and how self-described MAGA Republicans like Representative Lauren Boebert are threatening those investments, jobs, and opportunities, 3:30 p.m. EST
- The President departs Pueblo, Colorado en route to Joint Base Andrews, 5:05 p.m. EST
- The President departs Joint Base Andrews en route to the White House, 8:10 p.m. EST
- The President arrives at the White House, 8:30 p.m. EST
Economic:
- MBA Mortgage Applications 7:00 a.m. EST
- MBA Mortgage Applications: Composite: +0.3%, Purchase: +4.7%, ReFi: -8.9%
- U.S MBA 30-year Mortage Rate Actual: 7.37% VS 7.41% Previous
- U.S MBA Mortgage Applications (WOW) Actual: 0.3% VS 3.0% Previous
- Q3 GDP (second update) is due out at 8:30 a.m. EST and is expected to remain at 4.9%.
- Int. Trade in Goods 8:30 a.m. EST
- Corporate Profits 8:30 a.m. EST
- Wholesale Inventories 8:30 a.m. EST
- EIA Petroleum Report 10:30 a.m. EST
- The Latest Federal Reserve Beige Book is due out at 2:00 p.m. EST.
Federal Reserve / Treasury Speakers:
- Federal Reserve Cleveland President Loretta Mester 1:45 p.m. EST
M&A Activity and News:
- Open Text (OTEX) to divest its AMC business to Rocket Software (RKT) for $2.275 billion in cash.
Meeting & Conferences of Note:
- Sellside Conferences:
- Barclays Global Automotive and Mobility Conf
- Macquarie Inaugural International Conference
- Previously posted and ongoing conferences:
- Barclays Eat Sleep Play Conference
- Credit Suisse TMT Conference 2023
- Citi Basic Materials Conference 2023
- Evercore ISI HealthCONx Conference 2023 (11/27/23-11/29/23)
- Piper Sandler Healthcare Conference 2023 (11/27/23-11/29/23)
- Scotiabank Mining Conference
- UBS Global Technology Conference (11/27/23-11/29/23)
- UBS Industrials Summit
- Wells Fargo TMT Summit
- Top Shareholder Meetings: HUIZ, CPB, KTTA, SNCE
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ARE, ATI, CLS, CMND, CRAI, GM, HFRO, IMMX, UNH, VRT
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
-
- 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:
