Please Note: Next delivery of Morning Note will be on Tuesday, January 3rd.  Happy New Year!

Overnight Summary: The S&P 500 closed Wednesday lower by -1.20% at 3783.22 from Tuesday down -0.40% at 3829.25.  The overnight high of 3827.50 was hit at 6:15 a.m. EST. The low was hit at 3804.75 at 4:05 p.m. EST, a range of ~23 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was +15.75.

Earnings Out After The Close: 

• IPOs Priced or News: None of note.
• New SPACs launched/News: None of note.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • ACRX: Form 8K.. securities purchase agreement 748,744 shares.
  • BSGM: Form 8K.. Securities Purchase Agreement 2,161,598 shares.
  • MCLD: Announces Initial $10.5 Million Closing of Public Offering of 9.0% Series A Cumulative Perpetual Preferred Shares and Warrants.
  • WTER: Filed Form S-3.. 7,480,000 Shares.
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • KRUS: Files for $125 million mixed securities shelf offering.
• Debt Filing/Notes:
  • NVAX: Announces Closing of $175.25 Million Offering of Convertible Senior Notes Due 2027 and $74.75 Million Public Offering of Common Stock.
• Tender Offer: None of note.
• Convertible Offering & Notes 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: HYZN +13%, RXO +4%.
  • Trading Down: CALM -5%, JYNT -6%.

• News Since The Close:
  • All eyes on TSLA:
    • Morgan Stanley’s Jonas cuts pt to $250. “We believe Tesla may be in position to extend its lead vs. the EV competition in FY23 (both legacy and start-up) even before consideration of IRA (Inflation Reduction Act) benefits where Tesla also stands outas the biggest potential winner”
    • Musk To Tesla (TSLA) Employees: Don’t Be ‘bothered By Stock Market Craziness’. (Reuters)
    • ARK Innovation ETF purchased 17K shares of TSLA

• • Lockheed Martin (LMT) is being awarded an undefined contract action worth up to $528 mln from Missile Defense Agency.

• Exchange/Listing/Company Reorg and Personnel News:
  • Index Changes:
    • GE HealthCare (GEHC) will be added to the S&P 500 effective prior to the open of trading on Wednesday, January 4, replacing Vornado Realty Trust (VNO), which will move to the S&P MidCap 400.
    • Vornado Realty Trust will replace RXO Inc. (RXO) in the S&P MidCap 400, and RXO will replace The Joint Corp. (JYNT) in the S&P SmallCap 600.
  • Delisting of Securities from The Nasdaq Stock Market:  Tuscan Holdings Corp. II; Clovis Oncology, Inc.; ZyVersa Therapeutics, Inc.; Otonomy, Inc., and Forward Pharma A/S
  • AirNet (ANTE) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
  • Bitfarms (BITF) Promotes Geoffrey Morphy to Chief Executive Officer.
  • GLBL: Cartesian Growth Corporation, Tiedemann Group, Alvarium Investments Combined company will operate as Alvarium Tiedemann Holdings, listed on NASDAQ under the ticker symbol ALTI.
  • Cenntro Electric Group Limited (CENN) Receives Nasdaq Notice Regarding Minimum Bid Price Requirements.
  • Color Star (ADD) Received Nasdaq Notification Letter Regarding Bid Price Deficiency.
  • Alvarium Tiedemann (GLBL) Announces NASDAQ Ticker Symbol Update.
  • ImmunoGen (IMGN) Announces Susan Altschuller on FMLA Leave; Interim CFO Appointed.
  • IronNet (IRNT) Announces Receipt of Notification Letter from NYSE.
  • Kingsoft Cloud (KC) Announces Results of Extraordinary General Meeting Following Proposed Dual Primary Listing on Hong Kong Stock Exchange and New Board Appointment.
  • Titan Medical (TMDI) Announces Receipt of Nasdaq Listing Determination; Company to Request Hearing.
  • Minerva Surgical (UTRS) Announces Retirement of CEO David Clapper and Appointment of Todd Usen as Company President and CEO.
• Buyback Announcements or News:
  • New Mountain Finance Corporation (NMFC) Extends Stock Repurchase Program.
• Stock Splits or News: None of note.
• Dividends Announcements or News:
  • ESS Goes ex div tomorrow for $2.20..

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

Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):  

• Daily Positive Sectors: None of note.
• Daily Negative Sectors: Energy, Real Estate, Basic Materials, Technology, Communication Services of note.
• One Month Winners:  Healthcare, Utilities of note.
• Three Month Winners: Basic Materials, Industrials, and Energy of note.
• Six Month Winners: Industrials, Energy, and Basic Materials of note.
• Twelve Month Winners: Energy and Utilities  of note.
• Year to Date Winners: Energy of note.

U.S. stocks ended sharply lower Wednesday, with all 11 of the S&P 500’s sectors falling, as higher interest rates and recession fears continued to weigh on the market as investors near the end of a bruising 2022. The Dow Jones Industrial Average -1.10% closed more than 350 points lower, falling 1.1%, while the S&P 500 -1.20% slid 1.2% and the technology-laden Nasdaq Composite -1.35% dropped around 1.4%. Energy was the hardest hit sector of the S&P 500 on Wednesday, down more than 2%. The S&P 500 has tumbled around 20.6% this year.  (MarketWatch)

Click here for a video explanation of Erlanger Value Lines.

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

• Gap Up: HYZN +13%, GLBL +7%, RXO +4% of note.
• Gap Down: JYNT -6%, CALM -5% of note.

Insider Action: BCTX sees Insider buying with dumb short selling.  MCG sees 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.

• Stocks making the biggest moves premarket: TSLA CALM LUV LMT IMGN GE AAPL  (CNBC)
• 5 things to know before the stock market opens Thursday. (CNBC)
• Bloomberg Lead Story: Wall Street’s Top Stars Got Blindsided by 2022 Market Collapse. (Bloomberg)
• Bloomberg Most Read Story: Milan reports 50% of passengers on China flights have Covid. (Bloomberg)
• UK and France say not going to test flights coming from China. Why not? (CNBC)
• Kazakhstan seeks capacity to pipe crude oil to Germany. (Bloomberg)
• China’s economy shows signs of returning to normal despite the high number of Covid cases. (FT)
• China will increase oversight of education technology. (Bloomberg)
• Southwest (LUV) cancels more flights as chaos shows no signs of abating. (Bloomberg)
• Russia overnight fires over 100 missiles ending thoughts of peace talks. (Bloomberg)

Moving Average Update:

• Score down to 3%.

Geopolitical: 

M&A Activity:

• Gold Resource Corporation (GORO) Announces Ownership Interest in Green Light Metals Inc. Upon Promissory Note Conversion Into Common Shares.

• Company Meetings: CCM, PBIO, TLSA, TME, VIAO.
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: None of note.
• Update:
  • TG Therapeutics, Inc. (TGTX) BRIUMVI (ublituximab-xiiy) FDA Approval Call 2022.
  • CytoDyn Inc. (CYDY) Webcast to Discuss the Performance of Leronlimab in Clinical Trials 2022.
• R&D Day: None of note.
• Company Event: None of note.
• Industry Meetings:
  • The San Diego International Auto Show 2023 (12/30/22-01/03/23)
    • Previously posted and ongoing conferences:
      • BioCentury-BayHelix East-West Summit

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:

None of note.

Previous Day’s Upgrades and Downgrades:

None of note.