CAPIS Morning Note – 12/23/24: Stocks Flat Post No Shutdown

• IPOs For The Week: ALEH, FTRK, HIT, MIMI, MTRS, NTCL, PHH, YSXT
• New IPOs/SPACs launched/News: None of note.
• IPOs Filed/Priced: None of note.
• Secondaries Filed or Priced:
  • UEC files for $300 mln ATM offering
• Notes Priced:
• Direct Offering: None of note.
• Exchangeable Subordinate Voting Shares: None of note.
• Selling Shareholders of note:
  • GNSS for 1,495,472 share common stock offering by selling shareholders.
  • OPRT  files for 4,853,006 share common stock offering by selling shareholders.
• Mixed Shelf Offerings:
  • TD files for US$75 bln mixed securities shelf offering.
  • REI files for $150 mln mixed securities shelf offering.
  • WEN files mixed securities shelf offering.
  • PBR files mixed securities shelf offering. 
  • COLB files mixed securities shelf offering.
  • EOG files mixed securities shelf offering.
  • AENT  files for $100 mln mixed securities shelf offering.
• PIPE:.
• Convertible Offerings & Notes Filed:

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

Biggest Movers Up & Down Last Week:

• Movers Up: OMER (10.91 +42.99%), TEVA (21.91 +32.79%), BLUE (8.05 +26.97%),  MESO (14.45 +22.85%), PRTA (15.61 +22.05%), DRI (187.38 +12.41%), MITK (11.42 +30.01%), SEDG (15.01 +12.43%), NTGR (28.43 +11.89%), EHTH (8.37 +45.82%), SUPV (15.42 +16.64%) of note. 
• Movers Down: NVO (85.14 -20.39%), CMP (10.75 -17.68%), JELD (8.49 -17.57%), CAMP (5.09 -33.29%),  NYCB (9.15 -16.33%), NBR (53.95 -17.49%),  LW (61.94 -21.87%), HAIN (6.5 -17.41%) of note.

News After The Close:

• • 10-K Delays – of note.
  • Estee Lauder (EL) updates its restructuring plans.
  • GWRE entered into transactions with certain holders of its convertible notes to retire approximately $100 mln of the notes.
  • Boston Beer (SAM) announces an amendment and restatement in its entirety of an existing production agreement with Rauch North America Inc.; Lowers GAAP EPS guidance as a result, but reaffirms Non-GAAP EPS and Depletions and Shipments guidance.
  •  Qualcomm (QCOM) moving higher in after-hours after jurors found that the company didn’t violate terms of agreement covering Arm Holding’s (ARM) designs. (Bloomberg)
  • FDA approves Eli Lilly (LLY) Zepbound (tirzepatide) as the first and only prescription medicine for moderate-to-severe obstructive sleep apnea in adults with obesity.
  • Rumble (RUM) Announces $775 Million Strategic Investment from Tether.
  • Congress passes a Bill overnight to not shut down the government as the Senate approves as well and President Biden to sign. 
  • LMT awarded a not-to-exceed $11.76 bln modification to a previously awarded US Navy contract and awarded a $198 mln US Navy contract.  
  • GD  awarded a $235.5 mln US Navy contract modification.
  • RYCEY awarded a $1.43 bln contract modification to a previously awarded US Air Force contract.
  • RTX  awarded a $191 mln max value Missile Defense Agency contract.

Buybacks

• ACGL renews its $1 bln share repurchase authorization.

Exchange/Listing/Company Reorg and Personnel News:

• ALG announces intention of CEO and President to retire preferably by mid-year 2025 and upon the appointment of his successor.
• BANF approves request by Executive Chairman David Rainbolt for a change in status to Chairman of the Board, a non-executive position, effective January 1, 2025.
• SNDX eliminates Chief Medical Officer position; current CMO Catherine Madigan, M.D. will cease to serve as CMO and as an employee of the company effective Dec 20.

• Stocks Ex Div Today: AVGO JCI ABEV TTC WU SGHC LTC WKC ARCO IDT BFC RWT.
• Stocks Ex Div Tomorrow: EFIN GBLI POR
• MOS increases quarterly dividend to $0.22/sh from $0.21/sh  

What’s Happening This Morning: (as of 8:00 a.m. EDT) Futures S&P 500 +6.75 , NASDAQ +100, Dow Jones -96   and Russell 2000 -2.87 . Europe is high ex Germany with Asia higher. Bonds are at 4.55% from 4.53% on the 10-Year. Crude Oil and Brent are lower with Natural Gas higher. Gold lower with Silver and Copper higher. The U.S. Dollar is higher versus the Euro, higher against the Pound and higher against the Yen. Bitcoin is at $95,857 from $102,299 higher by $761 +0.80%.

• Daily Positive Sectors: Real Estate, Utilities, Technology and Financials were higher yesterday.
• Daily Negative Sectors: Consumer Defensive was the only one lower.
• One Month Winners: Consumer Cyclicals, Financials, Industrials, Energy and Utilities of note.
• Three Month Winners: Consumer Cyclicals, Financials, Communication Services, Industrials, Utilities, Consumer Defensive and Technology of note.
• Six Month Winners: Financials, Real Estate, Utilities, Consumer Cyclical and Technology of note.
• Twelve Month Winners: Financials, Technology, Industrials, Utilities and Communication Services note.
• Year to Date Winners:  Technology, Financials, Utilities, Communication Services and Industrials of note.

Upcoming Earnings Of Note: (From Chartroom Software – 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.

Notable Earnings of Note This Morning:

• Gap Up: RUM +43.4%, DESP +32.8%, HMC, +11.3%, PLYA +10.9%, NVO +4.9%, AZTA +4.7%, VSAT +4.6%, GNK +4.0%, NWSA +3.3%, GSAT +2.6%, QCOM +2.9%, CAC +2.2% of note.
• Gap Down: ARM -3.8%, SNDX -3.7% of note.

Insider Action: None see Insider buying with dumb short selling. None see 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.

• Lead Story on Bloomberg: Biden Team to probe Chinese Chips, setting up Trump for tariffs. (Bloomberg)
• Market Wrap: Stocks steady as Dollar rebounds as shutdown averted. (Bloomberg)
• 5 Things To Know Before The Market Opens. (CNBC)
• Stocks Making The Biggest Moves Pre-Market: HMC NVO TSLA XRX . (CNBC)
• Honda (HMC) and Nissan formalize merger talks. (Bloomberg)

M&A Activity and News: None of note.

Moving Averages On Major Equity Indexes: Moves to 30% from 27%.

Meeting & Conferences of Note:

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.

• • • Upgrades:  ACRS 
  • Downgrades: