CAPIS Morning Note – 12/15/21: Let’s Get Ready To Rumble, FOMC Decision at 2:00 p.m. EST and Presser at 2:30 p.m. EST

Overnight Summary:  Stocks are mixed into the FOMC announcement at 2:00 p.m. EST. The overnight S&P 50o range was 18 and we are currently at in the middle at 4630 at 7:35 a.m. EST. China put up slower than expected Retail Sales and slower price increases in Housing. However, Industrial Production was better. In Europe,…

Overnight Summary:  Stocks are mixed into the FOMC announcement at 2:00 p.m. EST. The overnight S&P 50o range was 18 and we are currently at in the middle at 4630 at 7:35 a.m. EST. China put up slower than expected Retail Sales and slower price increases in Housing. However, Industrial Production was better. In Europe, U.K. November CPI rose 5.1% beating expectations of 4.7%, inflation is global.

Earnings Out After The Close:

  • Beats: None
  • Flat: None
  • Misses: None

Capital Raises:

  • IPOs Priced or News:
    • Genenta Science (GNTA) Pricing of Upsized Initial Public Offering.. 2.4 millionADS @$11.50.
  • New SPACs launched: Yucaipa Acquisition Corp (YAC) sees SIGNA Sports United to begin trading today as SSU.
  • Secondaries Priced:
    • BLU: Pricing of US$200 million Public Offering in Canada and the United States.. 25 million @$8.
    • CCB: Prices Public Offering of Common Stock.. 740,742 shares @$40.50.
  • Notes Priced of note:
    • Luminar Technologies (LAZR) priced upsized offering of $550.0 million (increase of $50 million) of its 1.25% convertible senior notes due 2026.
    • Global Blood Therapeutics (GBT) prices $300 million 1.875% Convertible Senior Notes for 2028.
  • Common Stock filings/Notes:
    • ACER: Form 8K.. Amending sales agreement.
    • AVCT: Securities Purchase Agreement.. initial gross proceeds from the current sale will total $25 million.
    • ISPC: Filed Form S-1..3,062,499 Shares of Common Stock.
    • LEGN: Proposed Public Offering.. $300.0 million of American Depositary Shares.. MS, JPM, Jefferies, Piper and BCS Bookmanager.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • Unity Software (U) files for 3.4 million share common stock offering by selling shareholder.
    • LESL: files for offering by selling shareholders and concurrent share repurchase guidance.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • EYEN: Filed Form S-3.. $100 million Mixed Shelf.
    • LYB: Filed Form S-33ASR.. Mixed Shelf Offering.
    • SYBT: Filed Form S-3ASR.. Mixed Shelf Offering.
    • SYTA: Filed Form F-1… $47,265,000 Mixed Shelf.
  • Convertible Offering & Notes Filed: 
    • FICO: Pricing of $550 Million in Senior 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: SWAC +5%, SKIL +4%, COHU +4%, VIR +4%
    • Trading Down: LEGN -5%, LESL -4%
  • News Items After The Close:
    • Senate passes debt ceiling increase, sending it to House hours before deadline. (CNBC)
    • JPMorgan (JPM) Tells Unvaccinated Workers To Stay Home. (Wall Street Journal)
    • Trump Media & Technology, Digital World Acquisition Corp (DWAC) Group Announces Partnership with Rumble Inc.
    • Pfizer (PFE) get FDA approval for XELJANZ.
    • Google (GOOGL) Workers Must Follow Vaccine Rules Or Lose Pay, Job. (CNBC)
    • Raytheon Technologies (RTX) awarded $270 million Navy contract.
    • Canadian Government considering stricter travel measures.  (CBC)
    • JNJ FDA announcing revisions to Janssen Vaccine.
    • Assets Under Management for November: None of note.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Randall B. Gonzales named CFO at Eos Energy (EOSE) effective January 11, 2022.
    • GrowGeneration (GRWG) announces retirement of Tony Sullivan, COO, effective immediately.
    • Myriad Genetics (MYGN) promotes Nicole Lambert to COO.
    • Pangaea Logistics Solutions Ltd. (PANL) Announces the Passing of Founder and CEO Ed Coll.  The company has made its temporary succession plan now a permanent one.
    • Pyxis Tankers (PXS) Receives 180-day Extension from Nasdaq to Meet Minimum Bid Price Rule.
    • Intelligent Systems (INS) to change name to CoreCard Corporation (CCRD) on 12/29.
  • Buyback Announcements:
    • Conn’s (CONN) Announces Authorization of $150 million Share Repurchase Program.
    • Cummins Inc. (CMI) Approves Share Repurchase Program of $2 billion.
    • Equity Commonwealth (EQC) Announces $150 million Share Repurchase Authorization.
    • HBT Financial, Inc. (HBT) Announces Authorization of New $15 million Stock Repurchase Program.
    • Laureate Education (LAUR) announces increase to share repurchase program by $100 million.
    • Leslie (LESL) Stock Repurchase 7.5 million shares of stock.
    • Lowe’s (LOW) Board of Directors authorizes a new $13 billion repurchase program.
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • Franklin Resources (BEN) increases quarterly cash dividend by $0.01 to $0.29 per share.
    • Fortune Brands Home & Security (FBHS) increases quarterly dividend 7.7% to $0.28 per share.
    • MFA Financial  (MFA) increases quarterly cash dividend by $0.01 to $0.11 per share.
    • Oppenheimer Holdings (OPY) announces special cash dividend of $1.00 per share.
    • Saga Communications, Inc. (SGA) Declares a Quarterly Cash Dividend of $0.16 per Share and a Special Cash Dividend of $0.50 per share.
    • Toro (TTC) boosts quarterly dividend to $0.30 per share.  An increase of 14%.

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 +3 Dow Jones Industrial Average -11 NASDAQ -3 Russell 2000 +5. Asia and Europe mixed. VIX is at 21.56 from 20.90 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.58 from $130.73 with yields at 1.448% from 1.438% yesterday morning. Bitcoin at $48, from $47,586yesterday morning and this morning 2.11%. As of 8:12 a.m. EST.

Tuesday’s Action – 12/14 Close:  

  • Daily Positive Sectors: Financials of note.
  • Daily Negative Sectors: Technology, Real Estate, Industrials, Healthcare, Communication Services, Utilities, Energy of note.
  • One Month Winners: Utilities, Consumer Defensive of note.
  • Three Month Winners: Energy, Technology, Real Estate of note.
  • Six Month Winners: Technology, Real Estate, Utilities of note.
  • Twelve Month Winners: Energy, Real Estate, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Indexes continued signing that negative note and not Christmas Carols. Small Cap and Tech lead the indexes down…again.   The closing bell saw some shenanigans similar to Monday.  Friendly reminder it is options expiration week!especially at the closing bell. Updated 12/14 close.

Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)

  • Wednesday After the Close: LEN, TCOM, HEI, NDSN of note.
  • Thursday Before the Open: ADBE, ACN, CCL, JBL, WOR of note.

Earnings of Note This Morning:

  • Beats: ABM +0.04
  • Flat: None.
  • Misses: REVG (0.02)
  • Still to Report: TTC

Erlanger Research Advance/Decline Chart: Updated through 12/14 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: VIR +6%, XXII +6%, NILE +6%, CONN +5%, SKIL +4%, DWAC +4%
    • Gap Down: LEGN -7%, BGNE -6%, LESL -5%, BOXD -4%

Insider Action: CTO, SUN sees Insider buying with dumb short selling and SSSS 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: TM, VIR, LLY, RRD, REGN, DPZ  (CNBC)
  • Covid-19 cases rise to 201,786 from 190,461 a week ago. Hospitalizations at 57,191 from 51,742.
  • House passes debt ceiling increase by $2.5 trillion which will take into 2023. Off to President Biden’s desk. (NYT)
  • U.S. Housing purchases to remain strong as millennials are 50% of all purchasers. (WSJ)
  • BeiGene (BGNE) closes $3.5 billion on the Shanghai Stock Exchange.
  • EU regulator recommends Johnson & Johnson (JNJ) as booster after at least 2 months.
  • U.S. to blacklist 8 more Chinese companies including DJI.  (Financial Times)
  • President Biden looks at more sanctions on China related to Semis. (Bloomberg)
  • JPMorgan Revises Up China Q4 GDP To 4.9% From 4.0%, Raises 2022 GDP Forecast To 4.9%.
  • Ocugen (OCGN) reports robust immune memory for Covid-19 and variants up to six months for COVAXIN vaccine candidate .
  • Nucor (NUE) lowers Q4 guidance.
  • Robinhood looks at Apple (AAPL) as it approaches a $3 trillion valuation as it moves into Virtual Reality and iCars. Kellogg’s (K) replaces striking workers at cereal plants.

Moving Average Update:

  • Score goes lower to 43% from  53%. Updated 12/14 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 8:00 a.m. EST
    • The President departs the White House en route Joint Base Andrews and Fort Campbell, Kentucky, 9:00 a.m. EST
    • Press Briefing by White House COVID-19 Response Team and public health officials, 11:00 a.m. EST
    • The President arrives in Fort Campbell, Kentucky, 11:10 a.m. EST
    • The President surveys storm damage from the devastating tornadoes and extreme weather by taking an aerial tour of the hard-hit community of Mayfield, 11:35 a.m. EST
    • The President arrives in Mayfield, Kentucky, 12:05 p.m. EST
    • The President receives a briefing from local leaders on the impacts of the tornadoes and extreme weather, 12:25 p.m. EST
    • The President tours a neighborhood in Mayfield, Kentucky, 1:45 p.m. EST
    • The President departs Mayfield, Kentucky en route Princeton, Kentucky, 2:35 p.m. EST
    • The President arrives in Princeton, Kentucky, 2:55 p.m. EST
    • The President tours a neighborhood in Dawson Springs, Kentucky and delivers remarks on his Administration’s response to the tornadoes and extreme weather, 3:30 p.m. EST
    • The President delivers remarks on his Administration’s response to the tornadoes and extreme weather, 4:00 p.m. EST
    • The President departs Princeton, Kentucky en route Fort Campbell, Kentucky and Joint Base Andrews, 5:10 p.m. EST
    • The President arrives at the White House, 7:30 p.m. EST

Economic: 

  • MBA Mortgage Applications 7:00 a.m. EST.
  • December Empire State Manufacturing Index is due out at 8:30 a.m. EST and is expected to fall to 25 from 30.9.
  • November Retail Sales is due out at 8:30 a.m. EST and is expected to fall to 0.8% from 1.7% in October.
  • Import and Export Prices 8:30 a.m. EST.
  • December NAHB Housing Market Index is due out at 10:00 a.m. EST and is expected to rise to 84 from 83.
  • Business Inventories 10:00 a.m. EST. 
  • EIA Petroleum Report 10:30 a.m. EST. 
  • The Federal Reserve Open Market Committee (FOMC) concludes its two day meeting with their announcement at 2:00 p.m. EST and press conference at 2:30 p.m. EST.

Federal Reserve Speakers:

  • The Federal Reserve Open Market Committee (FOMC) Announcement 2:00 p.m. EST.
  • Federal Research Chair Jerome Powell Press Conference 2:30 p.m. EST.

M&A Activity: 

  • Rainmaker acquired by Brown & Brown (BRO).
  • RR Donnelley & Sons (RRD) to be Acquired by Chatham Asset Management for $10.85 Per Share in Cash.
  • Entegris (ENTG) and CMC Materials (CCMP) to merge as Entegris buys CMC Materials in a cash and stock deal, value $6.5 billion.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • D.A. Davidson Semicap, Laser & Optical Conference 2021
    • Jefferies Denver Healthcare Summit 2021 (12/15-12/16) 
    • Jefferies Real Estate Conference 2021 (12/15-12/16)
      • Previously Posted and Ongoing Conferences:
        • Imperial Capital Security Investors Conference 2021 (12/14-12/15)
        • Wolfe Global Consumer Growth Conference 2021 (12/14-12/15)
        • Lytham Partners Winter 2021 Investor Conference (12/13-12/16)
        • Stifel Medtech Madness Annual West Coast Bus Tour 2021 (12/13-12/15)
  • Company Meetings: AZO, BBIO
    • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ABM, AKYA, BCO, CERT, LII, LLY, MGTX, TCRX, TENB, XP 
  • Update:  HNNMY, PGR, LOW, RHHBY
  • R&D Day: MOLN, YMAB
  • Company Event: None of note.
  • Industry Meetings: None of note.
      • Previously Posted and Ongoing Conferences:
        • None.

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: