Overnight Summary: Asian markets are trading mixed with the Nikkei 225 declining -0.47% and the Shanghai composite rising +0.98%. Hong Kong’s Hang Seng index was up 1.08% led by tech shares with the Hang Seng Tech index up 2.23% (Hong Kong listed tech shares we up including: Alibaba +2.3% and Baidu up 1.5%). Traders are still trying to determine the impact of Omicron as the WHO’s technical lead on Covid-19 says it is “too early to conclude”. European markets are trading flat, also trying to digest the information coming out on Omicron from the WHO along with Pfizer’s (PFE) CEO saying a forth Covid-19 shot might be needed sooner than expected. S&P 500 which peaked around 4700 has failed to advance higher all night and bottomed at 4670 just after 6:00 a.m. EST and is now at 4678.
Breaking News: American Airlines to Reduce International Flights Due to Boeing (BA) Dreamliner Delays (Wall Street Journal)
Earnings Out After The Close:
- Beats: OXM +0.90, GEF +0.44, RH +0.44, PATH +0.03, CURV +0.03
- Flat: UDMY
- Misses: GME (0.87), PHR (0.22), SPWH (0.03)
- IPOs Priced or News:
- Integrated Wellness (WEL) Pricing of $100 million Initial Public Offering.. 10 million units @$10.
- NU Holdings (NU) priced IPO at $9/share for Class A.
- New SPACs launched:
- Solid Power combines with Decarbonization Plus Acquisition Corporation (DCRC) and trade under symbol “SLDP” starting December 9.
- Boxed closes with Seven Oaks Acquisition Corp (SVOK) and will trade as “BOXD” on December 9th.
- Secondaries Priced:
- RLMD: Pricing of Upsized Public Offering of Common Stock 8,823,530 shares @$17 ..GS, Jefferies and Guggenheim bookmanagers.
- ADC: Pricing of Public Offering of 5 Million shares of Common Stock at $68.15.
- Notes Priced of note:
- CFLT: Pricing of $1 billion of Convertible Senior Notes.
- Common Stock filings/Notes:
- ADC: Common Stock Offering.. $5 million shares.. WFC, BAC and MS Bookmanagers.
- CFRX: Filed Form S-3.. 8,819,904 Shares of Common Stock.
- FUBO: Filed Form S-3.. 5,690,669 Shares of Common Stock Offered by the Selling Securityholders.
- PERI: Proposed Follow-on Offering $100 million of its ordinary shares.. Opp. Stifel and RJ Bookmanagers.
- RLMD: Pricing of Upsized Public Offering of $100 Million of Common Stock.
- Pricing of Over-Allotment: None of note.
- Direct Offering:
- AZYO: Closing of $14 million Private Placement.
- AEye (LIDR) Announces with Tumim Stone Capital a Common Stock Purchase Agreement up to $125 Million.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- MVBF: Filed Form S-3.. $75Million Mixed Shelf.
- Convertible Offering & Notes Filed:
- LCID: Proposed Convertible Senior Notes Offering of $1.75 Billion due 2026.
- Confluent (CFLT) $1.0 billion convertible senior note offering.
- 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: RH +11%, NVEI +5%
- Trading Down: CURV -23%, TRIT -15%, RENT -9%, LCID -7%, GME -4%, PATH -3%, PERI -3%
- News Items:
- Stocks making the biggest moves after hours: GME, LCID, RH, RENT (CNBC)
- USO Citi Lowers 2022 Brent Forecast By $2 To $69/bbl On Omicron Fear.
- Justice Department Told Deutsche Bank (DB) Lender May Have Violated Criminal Settlement (Wall Street Journal).
- FDA authorizes AstraZeneca’s (AZN) monoclonal antibodies for some who can’t get vaccinated or are immunocompromised (Market Watch).
- Boeing (BA) is awarded $370 million Navy contract.
- Antitrust – Amazon (AMZN) fined over € 1,128 billion for abusing its dominant position (Press Release).
- U.S. Threat to Squeeze Russia’s Economy Is a Tactic With a Mixed Record (New York Times).
- Assets Under Management for November begin to be reported with CNS at $100.2 billion down $1.4 billion.
- Regeneron (REGN) and Sanofi (SNY) publish Phase III results of Dupixent results in The New England Journal of Medicine.
- Exchange/Listing/Company Reorg and Personnel News:
- Johnson & Johnson (JNJ) Mr. Michael Sneed, EVP Global Corporate Affairs and Chief Communication Officer, will be retire April 1, 2022.
- Torrid (CURV) Announces Planned Retirement of George Wehlitz, Chief Financial Officer, Following First Quarter of Fiscal 2022.
- Judy Marks is elected as Chair starting February 3 for Otis Worldwide (OTIS).
- RingCentral (RNG) Announces Executive Leadership Changes – COO stepping down and appoints new temporary CFO.
- SLDP trading on Nasdaq on December 9.
- Buyback Announcements:
- Cadence Bank (CADE) Announces 2022 Share Repurchase Program with up to 10 Million shares of Common Stock.
- CVS Health (CVS) $10 Billion Share Repurchase Program.
- IBEX Ltd. (IBEX) authorizes repurchase of up to $20 million common stock.
- Labcorp (LH) Authorizes $2.5 Billion Share Repurchase Program Capital Allocation Plan.
- Landstar (LSTR) Announces Increase to Stock Purchase Program.
- Oxford Industires (OXM) increase repurchase authorization to $150 million.
- Stock Splits: None of note.
- Dividends Announcements:
- ARC Document Solutions (ARC) increases quarterly dividend to $0.05.
- Bank7 (BSVN) increases quarterly cash dividend to $0.12 up $0.01.
- Carrier (CARR) Board of Directors increases Quarterly Dividend by 25% to %0.15 from $0.12.
- CVS Health (CVS) 10% Dividend Raise.
- Labcorp (LH) Board of Directors approves plans to initiate quarterly cash dividend of 15-20% of adjusted earnings.
- Landstar (LSTR) Announces Special Dividend of $2.00.
- Johnson Controls (JCI) increases quarterly dividend 26% to $0.34 cents in line with capital deployment strategy.
- Ramaco Resources, Inc. (METC) announces successful completion of $30 million acquisition of significant assets from Coronado and initiation of $2.5 million quarterly dividend.
- W. P. Carey Inc. (WPC) increases Quarterly Dividend to $1.055 from $1.052.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -14.50 Dow Jones Industrial Average -121 NASDAQ -55 Russell 2000 -16.21. Asia mixed and Europe lower. VIX is at 21.03 from 22.3 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $130.41 from $130.38 with yields at 1.484% from 1.48% yesterday morning. Bitcoin at $49,193 from $49312 yesterday morning and this morning down -2.98%. As of 8:15 a.m. EST.
Wednesday’s Action – 12/08 Close:
- Daily Positive Sectors: Communication Services, Healthcare, Real Estate, Technology, Consumer Cyclical, Basic Materials of note.
- Daily Negative Sectors: Consumer Defensive of note.
- One Month Winners: Utilities, Real Estate of note.
- Three Month Winners: Energy, Technology, Consumer Cyclical 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.
Indexes followed through, but not like Tuesday’s rocket fuel. $COMPQ lead indexes higher with a 0.64% positive day. UNG and USO were up 2.29% and 1.61%. Updated 12/08 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: ORCL, COST, AVGO, LULU, CHWY, MTN, LESL, EDU of note.
- Friday Before the Open: none of note.
Earnings of Note This Morning:
- Beats: HRL +0.01
- Flat: CIEN
- Misses: FLNC (0.47)
- Still to Report: none
Erlanger Research Advance/Decline Chart: Updated through 12/08 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: RH +10%, DCRC +7%, AUPH +7%, NVEI +7%, ARC +4%, NVTS +4%, OXM +3%, GEF +3%, FLL +3%, FUBO +3%
- Gap Down: RETA -41%, CURV -28%, TRIT -17%, RENT -11%, LIDR -10%, PHR -7%, LCID -6%, KGC -5%, GME -4%, ADC -4%, PERI -3%
Insider Action: KRON, ZLAB, DOCU, AMRS sees Insider buying with dumb short selling and APO, PVH 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: CVS HRL GME RH. (CNBC)
- Covid-19 cases at 119,895 from 119,004 a week ago. Hospitalizations at 52,605 from 47,004. 200 million Americans now vaccinated.
- Two major Chinese property firms have defaulted on $1.6 billion worth of bonds to overseas creditors, Fitch Ratings agency said Thursday, as contagion spreads within the country’s debt-ridden real estate sector. — AFP
- White House looks to tighten enforcement sanctions on Iran. (WSJ)
- Senate votes 52-48 to block vaccine mandate. (NYT)
- Federal Reserve’s fourth major shift under Federal Reserve Chairman Powell calls into question their credibility. (CNBC)
- Omicron four times more transmissible than Delta in Japanese study. (Bloomberg)
- FDA to look at boosters for 16 and 17 year olds without advisory committee. (Bloomberg)
- Ark Management (ARKK) Cathie Wood interviewed on CNBC.
- Lyft (LYFT) won’t require staff return to office until 2023 at earliest. (Blooomberg)
- Amazon (AMZN) to retire Alexa.com on May 1,2022.
- Instagram, Other Social-Media Apps Need Stricter Regulation, Senators Say. (Wall Street Journal)
- DISH Boost Mobile’s newest Carrier Crusher plans take on the Big Three directly, offering unlimited everything at just $25/month.
- Robinhood looks at Apple’s (AAPL) $275 billion deal with China helped it thrive in the country. Wonder seeks to improve on meal delivery with chef-centric food delivery trucks.
Moving Average Update:
- Score inches up 4% to 90%. Updated 12/08 close.
- President’s Public Schedule:
- The President delivers opening remarks at the virtual Summit for Democracy, 8:00 a.m. EST
- The President hosts the Leaders’ Plenary Session at the virtual Summit for Democracy, 8:15 a.m. EST
- The President, The First Lady, The Vice President, and The Second Gentleman attend a Congressional tribute ceremony for Senator Robert J. Dole; The President delivers remarks, United States Capitol, 10:00 a.m. EST
- The President holds a call with President Volodymyr Zelenskyy of Ukraine to discuss Russia’s military build-up on Ukraine’s borders, 12:30 p.m. EST
- Initial Jobless Claims 8:30 a.m. EST
- Wholesale Inventories 10:00 a.m. EST
- EIA Natural Gas Report 10:30 a.m. EST
- The latest NYSE and NASDAQ Short Interest is due out after the close of trading. During the latest period, the S&P 500 fell -1.18% from November 11th through November 26th.
Federal Reserve Speakers:
- Lloyd Bridges Traveland RV dealership acquired by Camping World (CWH).
- Metro Phoenix Bank to be acquired by Alerus Financial (ALRS).
- GAN Announces Acquisition of Silverback Gaming and Exclusive Rights to Distribute Silverback’s Portfolio of Casino Games.
- Kinross Gold (KGC) to buy Great Bear Resources for $1.4 billion.
Meeting & Conferences of Note:
- Sellside Conferences:
- 2021 Truist Securities Gaming, Lodging, Leisure & Restaurants Summit
- Deutsche Bank Securities 6th Annual Lithium and Battery Supply Chain Conference 2021
- Jefferies Crossover Consumer Finance Summit 2021
- Deutsche Bank AutoTech Conference 2021 (12/09-12/10)
- Goldman Sachs Byte-ology 2021
- Previously Posted and Ongoing Conferences:
- Benzinga Global Small Cap Conference December 2021 (12/08-12/09)
- ROTH Capital Deer Valley Consumer Conference 2021 (12/08-12/11)
- Sidoti Virtual Microcap Conference 2021 (12/08-12/09)
- 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)
- HSBC Real Estate Conference (12/06-12/10)
- Company Meetings: MDT
- Investor/Analyst Day/Calls: ACLS, AFMD, ARMK, AVNT, CODI, CVS, FOCS, GHC, GM, INTC, IONS, IRBT, LUV, MSP, NCR, RGA, RNA, TSN, WOW
- Update: ALRS, KGC, GBOX
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Previously Posted and Ongoing Conferences:
- BioFlorida Conference 2021 (12/08-12/10)
- 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)
- 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)
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:
Wednesday’s Upgrades and Downgrades: