Overnight Summary & Early Morning Trading: The S&P 500 closed Monday up 0.24% at 6047.15 from Friday higher by 0.56% at 6032.38. The overnight high was hit at 6067.75 at 4:10 p.m. EDT and the low was hit at 6057.50 at 6:10 a.m. EDT. The overnight range is 10 points. The current price is 6061.75 at 6:55 a.m. The S&P 500 is at 6061.75 this morning.
Executive Summary: This morning we bid farewell to Art Cashen who ran floor operations for UBS and has been on CNBC as long as I can remember, He passed away at 83 over the weekend. Whenever fear hit markets CNBC would have Arthur appear. He was a class act and we need more people acting like him. Below is a piece by CNBC on Arthur worth your time.
Article of Note: “Art Cashin, NYSE fixture for decades, dies at 83.” written by Bob Pisani of CNBC. (CNBC)
Key Events of Note Today:
- Economic releases of note are JOLTS due out this morning and API Inventory after the close.
Daily Chart Request: Want to see an Erlanger Chart? Simply email us at [email protected].
Next up is Stellantis (STLA). The stock is weak technically with a rank of 10%. Short Intensity is low at 15% with the Short Ratio at 2.89. This morning the stock is at $12.26 and is lower on its CEO resigning over the weekend. The work nailed it. What to Do: We would sell as a Long Squeeze. To Short or Not To Short: We are not okay with being short or shorting this name that has worked as a short dropping from $29.24 making it a nice gainer on the short side.
Notable Earnings Out After The Close
- Beats: ZS +0.14 and CRDO +0.02 of note.
- Flat: CLSK of note.
- Misses: None of note.
- IPOs For The Week: ALEH, CJMB, DGX, FCHL, FTRK, HIT, JUNS,
LSE, NAMI, NTCL, YSXT, ZSPC - New IPOs/SPACs launched/News:
- IPOs Filed/Priced:
- Secondaries Filed or Priced:
- CNTX files for $75 mln common stock offering.
- RVMD announces commencement of a $600 mln public offering of common stock
- AS files for 34,000,000 shares of ordinary shares offering.
- NGNE files for 4,000,042 shares of common stock offering by selling shareholders.
- Notes Priced:
- Direct Offering:
- Exchangeable Subordinate Voting Shares: None of note.
- Selling Shareholders of note:
- Mixed Shelf Offerings:
- KRRO files $400 mln mixed shelf securities offering.
- PESI files $100 mln mixed shelf securities offering.
- PSA files mixed shelf securities offering.
- PIPE:
- INDI files for $175 mln convertible notes offering through a private offering.
- Convertible Offerings & Notes Filed:
- BILL to offer $1.0 bln aggregate principal amount of convertible senior notes due 2030.
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: JANX +53.2%, CRDO +29.8%, RYN +3.9%, PTLO +2.3%, IONQ +2.2% of note.
- Movers Down: INDI -14.4%, TMDX -8.9%, ZS -8%, KRRO -6.5%, MCHP -3.3%, CLSK -4.6%, RVMD -2.7%, HON -2.3%, JSPR -2.3 and JOBY -2% of note.
News After The Close:
- Lam Research (LRCX) does not change guidance with U.S. government stance on Chip production around the world.
- GM inching higher as it looks to sell stake in battery cell plant to JV partner for around $1.0 bln. (CNBC)
- INGM announces that its undertaking restructuring initiatives that will reduce its headcount by approximately 850 associates by the end of 1Q25,
- HON issues downside guidance for Q4 (Dec), sees EPS of $2.26-2.36, excluding non-recurring items, vs. $2.78 FactSet Consensus and vs $2.73-2.83 prior guidance; sees Q4 (Dec) revs of $9.80-10.00 bln vs. $10.27 bln FactSet Consensus and vs $10.20-10.40 bln prior guidance.
- WNC announces renewal of agreement with Goodyear Tire as the preferred tire supplier for Wabash’s van, tank and platform trailers.
- MCHP issues downside guidance for Q3 (Dec), sees Q3 (Dec) revs of close to $1.025 billion vs. $1.060 bln FactSet Consensus.
- NASDAQ notes that US Equity derivative volumes in November increased 20% yr/yr to 304 mln.
- BWXT announces award from the U.S. Department of Energy for cleanup operations at West Valley Demonstration Project; Contract has maximum value of up to $3.0 bln for up to 15 years.
- Crane (CR) to sell its Engineered Materials business to KPS Capital Partners for $227 mln; revises guidance to reflect pending transaction.
- J.M. Smucker (SJM) announces closing of transaction to divest Voortman business to Second Nature Brands in $305 mln all-cash transaction; Also updates FY25 revenue guidance to reflect divestiture, reaffirms EPS and free cash flow guidance.
- TSLA ticking -1% lower after CEO Elon Musk’s pay package was again rejected by a Delaware judge.
- RTX awarded $1.31 bln U.S. Navy contract modification.
- OPEC + likely prolonging oil cuts for Q1. (Reuters)
- 10-K “Delays -CLSK of note.
Buybacks or Repurchases:
- RM announces a $30 million stock repurchase program and growth expectations for 2025.
- PVBC adopts new repurchase program for up to 883,366 shares of its common stock, or approximately 5% of the current outstanding shares.
Exchange/Listing/Company Reorg and Personnel News:
- FLR Chief Financial Officer Joe Brennan to retire; company names John Regan as new CFO.
- PTLO appoints Tony Darded as COO, effective on December 9.
- TMDX appoints Gerardo Hernandez as CFO, effective December 2; succeeds Stephen Gordon.
- D COO Diane Leopold to retire, effective June 1, 2025.
- OSK appoints Matthew Field as CFO, effective December 16.
- JBY CFO Matthew Field to resign, effective December 13 to take job at OSK.
- RCAT announces that George Matus, Red Cat’s Chief Technology Officer, is departing the company and is taking the role of CTO at Vector.
Dividends Announcements or News:
- Stocks Ex Div Today: LIN VRT KEY BSY SWKS UHS CBSH ALV DLB EBC TFSL JWN VSH CABO EPC
- Stocks Ex Div Tomorrow: CI SLB ODFL HAL AVY PJT AMKR FSK ICL AVT NPO PWP BBDC
- RYN announces a special dividend of $1.80/share, payable 25% in cash and 75% in common shares to shareholders of record on December 12.
- AFL announces a 16% qtr/qtr increase in 1Q25 dividend to $0.58/share.
- THG increases quarterly cash dividend to $0.90/share from $0.85/share
What’s Happening This Morning: Futures S&P 500 -1.75, NASDAQ +17.50, Dow Jones -37 and Russell 2000 +9.77. Europe is higher. Asia is higher. Bonds are at 4.205% from 4.262% for the 10-Year. Crude Oil and Brent are higher with Natural Gas lower. Gold, Silver and Copper are lower. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $95,669 from $93,558 Wednesday morning lower by -$1,449 with futures -1.49% this morning.
- Daily Positive Sectors: Communication Services, Technology and Consumer Cyclical of note.
- Daily Negative Sectors: Utilities, Real Estate, Energy and Financials of note.
- 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 WinnerMOmONTs: 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)
Tuesday After the Close:
Wednesday Before The Open:
Notable Earnings of Note This Morning:
- Beats: CNM +0.04, DCI +0.01 of note.
- Misses: BNS -0.03 of note.
- Still to Report:
Company Earnings Guidance:
- Positive Guidance: CNM CRDO of note.
- Negative or Mixed Guidance: ZS of note.
Advance/Decline Daily Update: The A/D Line has been improving for the last two weeks.
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
- Gap Up: JANX +78.3%, CRDO +34.9%, RNAC +5%, RYN +4.1%, JSPR +3.8%, IMCR +3%, IONQ +2.5%, PVBC +2.4%, COMP +2.2%, BWXT +2.2%.
- Gap Down: INDI -13.4%, X -8.2%, ZS -8%, TMDX -7.2%, CLSK -7%, AS -5.6%, RM -2.8%, RVMD -2.3%, MARA -2.3%, BILL -2.1%, RCAT -2.1%.
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: French Lawmakers to Vote on How to Fix Government In Trouble. (Bloomberg)
- 5 Things To Know Before The Market Opens. (CNBC)
- Stocks Making The Biggest Moves: . (CNBC)
- Market Wrap: US Stocks steady as focus moves to data. (Bloomberg)
- Blackrock (BLK) buys HPS for $12 billion. (CNBC)
- SpaceX weighs a $350 billion tender offer. (Bloomberg).
- Trump vows to disrupt Nippon Steel deal for U.S. Steel (X). (CNBC)
- AT&T (T) sees free cash flow at $18 billion. (CNBC)
Economic:
- October JOLTS is due out at 10:00 a.m. EDT and came in last month at 7.443 million.
- Weekly API Petroleum Inventory update is out at 4:30 p.m. EDT.
Geopolitical:
- Federal Reserve Governor Adriana Kugler speaks at 12:35 p.m. EDT.
- Federal Reserve Chicago President Austan Goolsbee speaks at 1:30 p.m. and 3:45 p.m. EDT.
- President Biden meets with the President of Angola at 5:15 a.m. EDT and then delivers remarks at 10:45 a.m. EDT
- Watch our Twitter feed, Bullet86, for an impromptu appearances.
M&A Activity and News:
- None of note.
Moving Averages On Major Equity Indexes: Moves from 100% to 93%.
Meeting & Conferences of Note:
-
- Sellside Conferences:
- Bank of America Leveraged Finance Conference
- Barclays Eat Sleep Play Shop Conference
- Citi Basic Materials Conference
- Citi Global Healthcare Conference
- Evercore HealthCONx Conference
- Goldman Sachs Aircraft Leasing Conference
- Goldman Sachs Energy Clean Tech & Utilities Conference
- Morgan Stanley Global Consumer & Retail Conference
- Needham Growth Conference
- Noble Markets Emerging Growth Equity Conference
- Piper Sandler Healthcare Conference
- RBC Capital Markets Forest Products Conference
- Scotiabank Mining Conference
- UBS Global Industrials Conference
- UBS Global Technology & AI Conference
- Wells Fargo MT Summit
- Sellside Conferences:
-
- Fireside Chat: None of note.
- Top Analyst, Investor Meetings: AFL, COR, HSII, PATK, HSII, IONQ, FBRX, PATK, RNAC, SNTI, T, THRY, WTW
- Shareholder Meetings: HOLX, OPRA, AFL, HYPR, PHG
- Update: None of note.
- R&D Day: None of note.
- FDA Presentation:
- FBRX: Data Presentation for FB102
- RNAC: Data Presentation for Descartes-08
- Company Event: None of note.
- Industry Meetings or Events:
- AMZN re:Invent Conference
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: FER UPST SABK KR DTE CVS CRDO CNP BOSSY BMWYY
Downgrades: JBGS
