Overnight Summary: Stocks are trading in a more normal range today but more mixed. In Asia, Shanghai composite was up 1.18%. The Hang Seng was flat with a bad market debut for Weibo. Shares of the secondary opened 6% lower. Japan’s Nikkei 225 was up 1.42%, even though economic reports shows their economy contracted 3.6%. European markets continue a positive note as the global markets continue to digest the Omicron severity. In the U.S., stocks were lower on the S&P 500 at 6:00 a.m. EST by -6 before rallying to +15 at 7:20 a.m. EST on positive news that the Pfizer (PFE) Biontech (BNTX) vaccine works on Omicron when two doses and a booster are applied.
Breaking News: Pfizer (PFE) Biontech (BNTX) vaccine works on Omicron when two doses and a booster are applied. Pfizer (PFE) CEO interviewed on CNBC at 7:45 a.m. EST.
Earnings Out After The Close:
- Beats: TOL +0.52, AVAV +0.14, SFIX +0.12, PLAY +0.08, BASE +0.06, S +0.03, PD +0.02
- Flat: none
- Misses: CASY -0.34, CHPT -0.08
- IPOs Priced or News:
- Chicago Atlantic Real Estate Finance (REFI) 6.25 million share IPO priced at $16.00
- Cingulate (CING) 4.166 million share IPO priced at $6.00
- New SPACs launched:
- Contango Oil & Gas (MCF) merger with Independence Energy and begins trading today as CRGY.
- Secondaries Priced:
- ACR: Pricing of a $700 Million CLO Backed by Commercial Mortgage Loans
- STWD: Pricing of 16 Million shares for $397.1 Million
- VRRM: Pricing of 8.2 Million shares by selling shareholder
- ACET: Pricing of 6.25 Million shares at $14 a share
- ET: Pricing of 86.96 Million units for $665 million
- Notes Priced of note:
- MRK: Pricing of $8 billion senior unsecured notes
- Common Stock filings/Notes:
- ACET: Proposed Follow-On Offering of Common Stock.. Jefferies and Guggenheim bookmanagers
- BSVN: Secondary Offering of Common Stock by Selling Shareholder 1Million .. Keefe bookmanager
- ET: Secondary Public Offering of Common Units.. 86,956,522 common units.. Citi, JPM and MS Bookmanagers
- NEP: Filed Form 424B3.. 7,253,580 Common Units
- STWD: Public Offering of Common Stock.. 16,000,000 shares.. Citi, BAC, MS and WFC Bookmanagers
- VRRM: Secondary Offering Of Approximately 8.2 Million Shares Of Common Stock.. BAC Underwriter
- Pricing of Over-Allotment: None of note.
- Direct Offering:
- CRXT: Closing of Approximately $15 Million Private Placement
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- ATXI: Filed Form S-3.. $30Million Mixed Shelf
- OHI: Filed Form S-3ASR .. Mixed Shelf
- TLMD: Filed Form S-3.. $100Million Mixed Shelf
- Convertible Offering & Notes Filed:
- GLPI: Pricing of $800,000,000 of 3.250% Senior Notes Due 2032
- Merck (MRK) $8 billion five series senior unsecured notes public offering.
- Patrick Industries (PATK) – $225 million convertible senior notes due 2028
- RBA: Pricing of Senior Notes Offerings to Partially Fund Euro Auctions Acquisition
- TTGT: Proposed Offering of Convertible Senior Notes
- UHAL: Announces $600 Million Private Placement of Senior Unsecured Notes
- Note Offerings 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: DARE +39%, PD +11%, EPAM +8%, PLAY +6%, NBIX +3%
- Trading Down: SFIX -18%, S -10%, VRRM -6%, TTGT -5%, CASY -5%, ET -3%, ACET -3%
- News Items:
- Stocks making the biggest moves after hours: SFIX, PLAY, PD, CHPT (CNBC)
- COVID-19: First lab tests on Omicron in South Africa suggest Pfizer (PFE) vaccine may be up to 40 times LESS effective against new variant BUT that is now mute this morning with Pfizer (PFE) vaccine is when three doses works against Omicron and will have a Omicron vaccine as well.
- Stitch Fix (SFIX) shares crater as retailer cuts forecast, despite topping earnings estimates (CNBC)
- Apple (AAPL) rumored that iPad and iPhone assembly halted for several days due to supply chain shortages. (NikkeiAsia)
- Number of Americans hospitalized with COVID-19 tops 60,000, highest in nearly 2 months
- President Biden Comptroller of the Currency nominee Saule Omarova withdraws after Senate fight over her background would doom her nomination (CNBC)
- Kellogg (K) to permanently replace striking employees as workers reject new contract (CNBC)
- House takes key step toward raising the debt ceiling as deadline draws closer (CNBC)
- Robinhood (HOOD) Announces Termination of Resale Registration Statement
- Exchange/Listing/Company Reorg and Personnel News:
- American Water Works (AWK) CEO Walter Lynch has interim replacement as Lynch recoveries in hospital from an injury.
- SmileDirectClub (SDC) Announces Departure of CFO Kyle Wailes who will pursue a CEO opportunity at a Healthcare company
- EPAM Systems (EPAM) will replace Kansas City Southern (KSU) in the SP 500 on December 14th.
- Graphite Bio (GRPH) COO Katherine V. Stultz will leave at year end.
- Hope Bancorp (HOPE) President and COO David P. Malone will retire at year end.
- Old Dominion Freight Line (ODFL) will replace Kansas City Southern (KSU) in the Dow Jones Transportation Average Index on December 14th.
- Summit Hotel (INN) Executive Chairman Dan Hansen will retire at year end.
- Wynn Resorts (WYNN) appoints Julie Cameron-Doe as CFO
- Buyback Announcements:
- Acacia Research (ACTG) stock repurchase program of $15 million of common stock.
- Blackstone (BX) to repurchase up to $2 billion common stock.
- CLNE: Form 8K.. On December 7, 2021, the Company’s Board of Directors determined to resume repurchases of shares of the Company’s Common Stock pursuant to the Repurchase Program and approved an increase in the aggregate purchase amount under the Repurchase Program from $30 million to $50 million
- Dave and Buster’s (PLAY) authorized $100 million share buyback program
- Resolute (RFP) Announces Share Repurchase Program
- Raytheon Technologies (RTX) Board of Directors Authorizes $6 Billion Share Repurchase Program replacing prior program
- Zoetis (ZTS) Announces Authorization of $3.5 Billion Share Repurchase Program with prior $2.0 billion repurchase to be complete
- Stock Splits: None of note.
- Dividends Announcements:
- CION Investments (COIN) special distribution of $0.20/share
- Franchise Group, Inc. (FRG) Increases Quarterly Common Stock Dividend by 40% to $0.625 from $0.375.
- Hooker Furniture (HOFT) ups dividend to $0.20 an increase of 11%.
- Mid-America Aptmt (MAA) increases dividend $1.0875 from $1.025.
- PDC Energy (PDCE) special dividend of $0.50/share on top of normal quarterly $0.12.
- Redwood Trust (RWT) increases dividend to $0.23 from $0.21.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +10 Dow Jones Industrial Average +68 NASDAQ +41 Russell 2000 +9.21. Asia higher and Europe mixed. VIX is at 22.3 from 24.10 yesterday. Gold higher, Silver lower and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.38 from $130.84 with yields at 1.48% from 1.448% yesterday morning. Bitcoin at $49312 from $51,049 yesterday morning and this morning down -2.28%. As of 8:15 a.m. EST.
Tuesday’s Action – 12/07 Close:
- Daily Positive Sectors: Technology, Consumer Cyclical, Basic Materials, Healthcare, Communication Services, Energy, Financial, Real Estate, Industrials, Utilities, Consumer Defensive of note.
- Daily Negative Sectors: None of note.
- One Month Winners: None of note.
- Three Month Winners: Energy of note.
- Six Month Winners: Technology, Real Estate, Consumer Cyclical of note.
- Twelve Month Winners: Energy, Financials, and Technology of note.
- Year to Date Winners: Energy, Technology, and Real Estate of note.
“Buddy the elf, what’s your favorite color?” GREEN! Markets rocket up powered by Intel….I mean technology. COMPQ up +3.03%. Updated 12/07 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Wednesday After the Close: GME, RH, GEF, PHR, CURV, OXM, SPWH of note.
- Thursday Before the Open: HRL, CIEN of note.
Earnings of Note This Morning:
- Beats: THO +1.15, LOVE +0.57, UNFI +0.37, KFY +0.16, VRA +0.15, PLAB +0.08, CPB +0.08, WEBR +0.05
- Flat: none
- Misses: DTC (0.14), BF.B (0.04)
- Still to Report: none
Erlanger Research Advance/Decline Chart: Updated through 12/07 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: DARE +24%, PD +10%, RELL +10%, THO +9%, EPAM +8%, FRG +6%, NUVB +4%, PLAY +4%, QRHC +4%, PSFE +4%, RFP +3%, HOOD +3%, NBIX +3%
- Gap Down: SFIX -22%, S -10%, ET -5%, VRRM -4%, TTGT -3%, CASY -3%, CHPT -3%, STWD -3%
Insider Action: CKR, DOCU sees Insider buying with dumb short selling and BV has smart short sellers with insider buys. 12/07 close
Rags & Mags: Highlighted Stories may be clicked through to the original story. Repeated stories from prior days never listed, i.e. “rehashed news”.
- Five Things To Know To Start Your Day. (Bloomberg)
- Stocks Making The Biggest Moves: PFE, BNTX, WEBR, CPB, THO, SFIX (CNBC)
- Covid cases at 190,461 from 162,204 a week ago. (CDC)
- Russia’s Kremlin: Russian And U.S. Officials will very quickly start to discuss the ‘Complex Confrontational Situation‘ and security issues following Putin-Biden Call yesterday. They did not discuss Nord Stream 2 Pipeline usage if Russia invaded Ukraine.
- The House and Senate cut a deal to raise debt ceiling with only 51 votes in the Senate but will roll into next week before complete. (NYT)
- House passes National Defense Bill now goes to Senate. (NYT)
- Two Democratic Senators will join Republicans in the Senate to eliminate the White House Vaccination Mandate. (Montana Public Radio)
- Senator Joe Manchin (D-WV) remains on fence about voting for the Budget Reconciliation Act aka Build Back Better. (WSJ)
- Southwest (LUV) raises Q4 guidance on strong travel demand over Thansgiving. (PR Newswire)
- JO – Coffee Hits 10-Year High As Shipping Bottlenecks Squeeze Supply – FT
- Robinhood looks at Digital World Acquisition (DWAC) as SEC and FINRA circle Trump’s SPAC. Utilities to build EV charging station network off America’s highways.
Moving Average Update:
- Year end rally full steam ahead. Score jumps to 86% from 46% as we start trading above the shorter and longer term averages. Updated 12/07 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 9:30 a.m. EST
- The President departs the White House en route Joint Base Andrews, 10:50 a.m. EST
- The President arrives in Kansas City, Missouri, 1:45 p.m. EST
- The President visits Kansas City Area Transportation Authority, 3:00 p.m. EST
- The President delivers remarks on how the Bipartisan Infrastructure Law delivers for Missourians by rebuilding roads and bridges, upgrading public transit, replacing water infrastructure, and creating good-paying, union jobs, 3:30 p.m. EST
- The President departs Kansas City, Missouri en route Joint Base Andrews, 4:45 p.m. EST
- The President arrives at the White House, 7:15 p.m. EST
- The Bank of Canada will be out with its latest interest rate decision on Wednesday morning.
- MBA Mortgage Applications 7:00 a.m. EST
- JOLTS 10:00 a.m. EST
- EIA Petroleum Report 10:30 a.m. EST
Federal Reserve Speakers:
- Stanley Black and Decker (SWK) selling security business for $3.2 billion.
- THOR Industries (THO) Acquires Elkhart Composites, Inc., Maker Of Elkboard Polypropylene-Based Composite Materials For The RV Industry
Meeting & Conferences of Note:
- Sellside Conferences:
- B. Riley and Company Crypto Conference 2021
- Benzinga Global Small Cap Conference December 2021 (12/08-12/09)
- Cantor Fitzgerald Webinar 2021 (XELA, IMNM)
- ROTH Capital Deer Valley Consumer Conference 2021 (12/08-12/11)
- Sidoti Virtual Microcap Conference 2021 (12/08-12/09)
- Previously Posted and Ongoing Conferences:
- BMO Capital Markets Growth & ESG Conference 2021 (12/07-12/08)
- Citi Global Consumer Conference 2021 (12/07-12/09)
- Goldman Sachs U.S. Financial Services Conference 2021 (12/07-12/09)
- Wells Fargo Midstream, Utility & Renewables Symposium 2021 (12/07-12/09)
- Capital One 16th Annual Energy Conference (12/06-12/08)
- HSBC Real Estate Conference (12/06-12/10)
- Raymond James Technology Conference (12/06-12/08)
- UBS Global Telecoms, Media, Technology Virtual Conference (12/06-12/08)
- Company Meetings: EVFM, NTES, VIPS
- Investor/Analyst Day: CNV, CVE, EW, KPTI, LUV, MCK
- Update: None of note.
- R&D Day: None of note.
- Conference/Earnings Call:
- Before the market opens: CPB, CTK, CASY, LOVE, PLAB, TOL, UNFI, ALOT, VRA
- During Market Hours: CSPI, NETI, GASS, POWL, KFY
- After the Bell: OXM, GME, NAPA, PATH, RENT, RH
- Company Event: ALKT
- Industry Meetings:
- The CEO Summit 2021 (ACLS, ICHR, ONTO, KLIC, APTX, SAP, COHU, INTT, FORM, AEHR, AOSL, ACLS, ACMR)
- BioFlorida Conference 2021 (12/08-12/10)
- Previously Posted and Ongoing Conferences:
- American Association for Cancer Research AACR San Antonio Breast Cancer Symposium SABCS 2021 (12/07-12/10)
- Advanced Automotive Battery Conference 2021 (12/07-12/09)
- Future Of Cloud and Digital Infrastructure Summit 2021 (12/07-12/08)
- SEMICON West 2021 (12/07-12/09)
- 32nd International Symposium on ALS/MND 2021 (12/07-12/10)
- 15th Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum 2021 (12/07-12/09)
- Annual Meeting of the American College of Neuropsychopharmacology 2021 (12/05-12/08)
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: