Overnight Summary: Stocks continued to rise this morning after the best week for stocks since February. Asia was mixed overnight with the Hang Send lower and Europe mixed due to a lower FTSE. S&P 500 futures peaked at 6:15 a.m. EST at 4722 and are at 4713 at 7:40 a.m. EST up +10 points.
Breaking News: There is tons of data this morning with abstracts released as the American Society of Hematology (ASH) begins its 63rd annual meeting. There is too much data to comment individually. (ASH Information)
Earnings Out After The Close:
- Beats: None
- Flat: None
- Misses: None
- IPOs Priced or News: None of note.
- New SPACs launched:
- SVF Investment Corp (SVFC) (Softbank [SFTBY] affiliation) will take Symbotic public through partnership.
- Secondaries Priced:
- ATXI: Prices $2.0 million Underwritten Public Offering of Common Stock.. Priced @$1.07.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ACET: Closing of $100 Million Public Follow-On Offering and Exercise in Full of the Underwriters’ Option to Purchase Additional Shares.
- CNTX: Filed Form S-1.. 10 million shares.
- FREQ: Filed Form 424B5.. $125 million.
- Pricing of Over-Allotment: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- SWN: Southwestern Energy Announces Proposed Block Trade of 63,976,376 Shares of Common Stock by selling stockholders.
- APRN: Filed Form S-3.. 19 million shares of class A common stock by selling stockholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- OMEX: Filed Form S-3.. $100 million mixed shelf.
- Convertible Offering & Notes Filed:
- MSFT: Filed Form S-3ASR.. Debt Securities.
- WDC: Closing of Debt 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 and Over the Weeke:
- Weekly Wrap Up: Best and Worst performing large cap stocks:
- Trading Up: TACO 66%, JT 41%, LOVE 31%, GOL 29%, TBPH 28%, TRUP 27%, PLAB 25%, LPI 23%, EDU 22%, PI 20%, SIMO 20%, CIEN 20%, LHCG 20%, SWN 19%, MESO 19%, PTEN 19%, CPG 19%, ACAD 19%, EPAY 18%
- Trading Down: RETA -63%, RDUS -52%, EVBG -43%, HQY -24%, AVAV -19%, SFIX -17%, AXDX -17%, MRNA -16%, ENTA -16%, CONN -14%, GME -14%, HMY -13%, AGIO -13%, LE -12%, PATK -12%, FLWS -12%, JOBS -12%, GFI -11%, POWI -11%
- News Items Over the Weekend:
- Stocks That Defined the Week: RCL, SBUX, INTC, AAL, PFE, TSN, GM (Wall Street Journal)
- President Biden Aims to Win Pivotal Democrat’s Support for $2 Trillion Spending Plan (Wall Street Journal)
- A series of tornados tore across Tennessee, Kentucky and Illinois leaving a path over 200 miles long with estimates over 100 dead. (NYT)
- At least six people died in Illinois when an Amazon (AMZN) warehouse in Illinois took a direct hit. (New York Times)
- Pfizer (PFE) Booster Shots Are Effective Against Omicron Variant, Israeli Study Says. (Wall Street Journal)
- In response to Texas abortion ban, California Governor Newsom calls for similar restrictions on assault weapons. [DKS, ASO, RGR, SWBI, VSTO] (LA Times)
- Positive View: LVMUY, SRAD, DOCU, ZM , CRM, SNOW, AAPL
- Negative View: None of note.
- Mixed View: None of note.
- Assets Under Management for November: None of note.
- Exchange/Listing/Company Reorg and Personnel News:
- Effective at year end, Altimmune (ALT) appoints the replacement of Will Brown with Richard Eisenstadt as CFO.
- BitNile Holdings, Inc. (NYSE American: NILE) Completes Name and Stock Ticker Symbol Change from Ault Global Holdings, Inc. (NYSE American: DPW)
- Credit Suisse (CS) appoints Francesco De Ferrari as Chief Executive Officer of the Wealth Management Division.
- Eneti Inc. (NETI) Announces Purchase of Common Shares by the President of the Company.
- Fox News Media (FOXA) announces the departure of Chris Wallace.
- Inogen (INGN), effective immediately, appoints Mike Sergesketter as interim CFO.
- ObsEva (OBSV) names Will Brown as CFO (see above – Altimmune ([ALT]).
- NASDAQ 100 additions PANW ABNB FTNT LCID ZS DDOG and deletions CDW FOXA CERN CHKP TCOM INCY.
- Buyback Announcements:
- Protolabs (PRLB) announces $50 million increase to stock repurchase authorization.
- Waterstone Financial (WSBF) intends to repurchase up to 3.5 million of its issued and outstanding shares, representing approximately 14.1% of its issued and outstanding shares of common stock.
- RingCentral (RING) may repurchase up to $1000 million of its outstanding Class A common stock.
- Stock Splits: None of note.
- Dividends Announcements:
- AMCON Distributing Company (DIT) announces $5.00 special dividend.
- Trinity Industries (TRN) announces increase of 10% to quarterly dividend to $0.23 per share.
- Union Pacific Corporation (UNP) announces 10% dividend increase for fourth quarter 2021 to $1.18 per share from $1.07.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +8 Dow Jones Industrial Average +12 NASDAQ +61 Russell 2000 +3.49. Asia lower and Europe mixed. VIX is at 19.71 from 21.15 Friday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.48 from $130.14 with yields at 1.467% from 1.511% yesterday morning. Bitcoin at $48,520 from $49,166 on Friday morning and this morning -3.75%. As of 8:25 a.m. EST.
Friday’s Action – 12/10 Close:
- Daily Positive Sectors: Consumer Defensive, Technology, Energy, Utilities, Consumer Cyclical of note.
- Daily Negative Sectors: Healthcare of note.
- One Month Winners: Utilities, Technology, Basic Materials of note.
- Three Month Winners: Energy, Technology, Industrials of note.
- Six Month Winners: Technology, Industrials, 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 finished the week positive except for Russell 2000 (-0.38%). Large Cap (SP100) led the way with a 1.15% return on Friday. Oil and Natural Gas were both up, +1.98% and +2.67% respectively. Updated 12/10 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Monday After the Close: none of note.
- Tuesday Before the Open: none of note.
Earnings of Note This Morning:
- Beats: none
- Flat: none
- Misses: none
- Still to Report: none
Erlanger Research Advance/Decline Chart: Updated through 12/10 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: ARNA +93%, FHTX +38%, BLU +30%, BLUE +11%, HOG +10%, MREO +8%, EDIT +8%, SANA +7%, TGTX +6%, MNOV +6%, BKEP +5%, RAM +4%
- Gap Down: IGMS -23%, RENN -4%, SWN -3%
Insider Action: WMK sees Insider buying with dumb short selling and NAUT has smart short sellers with insider buys. 12/10 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: HOG ARNA PTON (CNBC)
- Covid cases are at 152,970 from 149,222 a week ago.
- Israeli study finds that Pfizer (PFE) vaccine booster is effective against Omicron. (WSJ)
- NIH Director Anthony Fauci notes that Omicron can evade immunity from initial vaccines but boosters provide efficacy and better protect against the variant. (ABC News)
- South African Doctors see that the Omicron variant is milder than Delta with only 30% of those hospitalized seriously ill, half previous waves.
- U.K. Prime Minister Boris Johnson notes that one patient has died of Omicron. (CNBC)
- China’s President Xi Jinping is set to meet Russia’s President Vladimir Putin virtually on Wednesday. (CNBC)
- Mohamed El-Erian, chief economic advisoer for Allianz, says Fed use of ‘transitory’ to describe inflation was its worst call ever .(Market Watch)
- Omicron can hit the double vaccinated, Oxford study says, as UK prepares for ‘tidal wave’ of cases. (CNBC)
- OPEC releases its December 2021 Report and no change to world oil demand since last month.
- Dozens of Jefferies (JEF) employees have tested positive for Covid-19, forcing the Wall Street firm to ask staff to work from home, stop virtually all travel and cancel social events. (CNN)
- More companies delay return to office plans. (WSJ)
- Exxon (XOM) and Halliburton (HAL) in talks to take stakes of oil fields in Iraq. (Bloomberg)
- McDonalds (MCD) to open 200 stores in Italy. (Reuters)
- RIVN named 2022 MotorTrend Truck of the Year.
- EU should approve the purchase of Nuance Communications (NUAN) by Microsoft (MSFT). (Reuters)
- Intel (INTC) To Invest $7B On Malaysia Chip Plant.
Moving Average Update:
- Score remains at 76%. Updated 12/10 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 10:00 a.m. EST
- The President receives a briefing from Secretary of Homeland Security Alejandro Mayorkas, FEMA Administrator Deanne Criswell, and Homeland Security Advisor Liz Sherwood-Randall on the Federal response to the tornadoes and extreme weather that impacted multiple states Friday night, 11:00 a.m. EST
- The President signs an executive order on delivering the Government services and experience the American people expect and deserve, 1:15 p.m. EST
- Press Briefing by Press Secretary Jen Psaki, 2:00 p.m. EST
Federal Reserve Speakers:
- Pfizer (PFE) to buy Arena Pharmaceuticals (ARNA) for $100 a share, $6.7 billion cash deal.
- SPX FLOW (FLOW) to be acquired by Lone Star for $86.50 per share in cash.
Meeting & Conferences of Note:
- Sellside Conferences:
- Lytham Partners Winter 2021 Investor Conference (12/13-12/16)
- Stifel Medtech Madness Annual West Coast Bus Tour 2021 (12/13-12/15)
- Truist Texas Bank Summit
- Previously Posted and Ongoing Conferences:
- Company Meetings: CSCO, DGLY
- Investor/Analyst Day/Calls: ALVR, APNX, AUTL, MF, MTW, STXS, TFFP, WKEY, XRX (Loop Capital non-deal road show)
- Update: APTO, HA, HARP, ORIC
- R&D Day: ALLO
- Company Event: NHYDY, STXS
- Industry Meetings:
- American Society of Hematology Annual Meeting (12/11-12/14)
- 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 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:
Friday’s Upgrades and Downgrades: