CAPIS Morning Note – 12/6/24: Jobs, Jobs, Jobs and Hartnett Eyes Excess in US Markets

• Beats: AGX+0.74, ULTA +0.61, RBRK +0.19, VEEV +0.17, LULU +0.16, DOMO +0.15, GWRE +0.13, SMAR +0.13, VSCO +0.12, GTLB +0.08, HCP +0.08, ASAN+0.05, COO +0.04, PATH +0.04, ZUMZ +0.04, DOCU +0.03, IOT +0.03, HPE +0.02, WOOF +0.02  of note.
• Flat: NAPA of note.
• Misses: SWBI -0.06 of note.

• IPOs For The Week: ALEH, CJMB, DGX, FCHL, FTRK, HIT, JUNS, LSE, NAMI, NTCL, YSXT, ZSPC 
• New IPOs/SPACs launched/News: None of note.
• IPOs Filed/Priced: None of note.
• Secondaries Filed or Priced:
  • AMC Files to sell up to 50 million Class A Shares via ATM Offer.
  • LSEA  announces proposed secondary offering of 5,043,480 shares of common stock.
  • PROF intends to offer and sell common shares in an underwritten public offering.
• Notes Priced: None of note.
• Direct Offering: None of note.
• Exchangeable Subordinate Voting Shares: None of note.
• Selling Shareholders of note:
  • CYBR announces secondary offering of 1,142,538 ordinary shares by Triton Seller.
• Mixed Shelf Offerings:
  • BK files $40 billion mixed shelf securities offering.
• PIPE: None of note.
• Convertible Offerings & Notes Filed: None of note.

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

Biggest Movers Up & Down After The Close:

• Movers Up: ASAN +19.8%, DOCU +15.3%, ULTA +12.2%, LULU +9%,  ZUMZ +7.1%,VEEV +7.1%, GTLB +6.8%, DOMO +2.2% of note. 
• Movers Down: SWBI -13.8%, PROF -10.3%, PATH -4.8%, COO -4.6%, GWRE -4.1%, LSEA -3.1%, MAXN -3.1%  of note.

News After The Close:

• VLRS reports November 2024 traffic results: load factor of 87%.
• CVX announces FY25 capex guidance range of $14.5 to $15.5 bln; Also expects to recognize restructuring charge of $700-$900 mln after-tax in Q4.
•  ASR announces that passenger traffic for November 2024 reached a total of 5.8 million passengers, representing a decrease of 1.2% compared to November 2023.
• Equifax (EFX) and Mastercard (MA) announce partnership to combat payment fraud in Latin America.
• Port Authority of New York and New Jersey selects Tutor/O&G joint venture team, with Parsons (PSN) as the lead designer for $1.18 billion Newark AirTrain Replacement Program.
• BTBT announces monthly production update for November 2024; mines 44.9 Bitcoin.
• KOP will discontinue phthalic anhydride production at its facility in Stickney, Illinois, in 2025, which will result in pre-tax charges of $51-$55 mln through end of 2026.
• PTEN reports November 2024 drilling activity; had average of 105 drilling rigs operating in the United States.
• FAA notes that Boeing’s (BA) plan is to slowly restart production later in December. (Reuters)
• Palantir Technologies (PLTR) and Shield AI team up on AI-powered autonomous aircraft. (Bloomberg)
• Pfizer (PFE) Showcases Scientific Leadership in Breast Cancer and Blood Disorders Across More than 100 Presentations at ASH and SABCS. (Releases)
• Meta-analysis published in Annals of Surgery shows benefits of da Vinci surgery from Intuitive Surgical (ISRG) across seven oncologic procedures compared to laparoscopic and open. (Releases)
• 10-K Delays – None of note.

Buybacks or Repurchases: 

• BYD announces additional $500 million share repurchase authorization.
• LULU authorizes $1.0 billion increase in stock repurchase program.
• WING approves additional $500 million for repurchases; anticipates executing $250 mln accelerate share repurchase program commencing in 4q24.
• BY approves a new stock repurchase program that authorizes the Company to repurchase up to 1.25 million shares of the Company’s outstanding common stock.

Exchange/Listing/Company Reorg and Personnel News:

• UIS elects Mike Thomson, current President and Chief Operating Officer, to succeed Peter Altabef as company’s CEO.
• OSIS appoints Ajay Mehra, current President of company’s Security division and Executive Vice President, as new President and CEO.
• MG appoints Natalia Shuman as its new President and Chief Executive Officer, effective January 1, 2025.
• MRVL appoints Andrew Eckert as Chairman of the Board of Directors, effective Dec 5, 2024.
• IRWD  COO and CFO Sravan K. Emany to retire, effective December 18; CEO Thomas McCourt to servce as principal financial officer on an interim basis until a new principal financial officer is designated.

• Stocks Ex Div Today: BAC PEP BKNG TT WM AJG GM NDAQ KMB AME NTRS GPC TPR GLPI CHRW TAP CHDN ORI KNX MLI BPOP
• Stocks Ex Div Monday: GOOG, GOOGL, UNH, FDX, SPG, UNP, ADI, BDX, FIS, CME, GOGL, G, GBDC, AIZ, ESEA, KTB, FAF, DLNG, SPTN, DCI, CVTR, CCBG.
• CRM quarterly cash dividend of $0.40 per share payable January 9, 2025.
• WEC announces that it is planning to raise the quarterly dividend on the company’s common stock to $0.8925/share in the first quarter of 2025.
• TRIN increases quarterly cash dividend to $0.30/share from $0.28/share.
• ECL increases its quarterly dividend by 14% to $0.65/share; 1.1% annual yield.
• OC increases quarterly cash dividend 15% to $0.69/share from $0.60/share.
• ABM approves 18% increase to its quarterly dividend to $0.265/share; 1.9% annual yield.
• EMN increases quarterly cash dividend to $0.83/share from $0.81/share.
• UTZ approves annual dividend increase to $0.244/share from $0.236/share.
• LIEN $0.34 cash dividend for 4q 2024

What’s Happening This Morning: (as of 8:00 a.m. EDT) Futures S&P 500 -2, NASDAQ +7, Dow Jones -19 and Russell 2000 +4. Europe is mixed with the CAC 40 +1.5%. Asia is mixed with HSI +1.5% and Shanghai +1%. Bonds are at 4.18% on the 10-Year. Crude Oil and Brent are lower with Natural Gas down 2%. Gold and Silver are higher. The U.S. Dollar is down slightly versus the Euro, up a tad versus the Pound and higher against the Yen. Bitcoin is at $97,777.

• Daily Positive Sectors: Consumer Cyclical, Consumer Defensive, Energy, Financials and Utilities of note.
• Daily Negative Sectors: Healthcare, Materials, Industrials, Communication Services and Technology 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)

• Friday After the Close: None of note.
• Monday Before The Open: MOMO of note.

Notable Earnings of Note This Morning:

• Gap Up: UPC, ADD, ZBAO, GXAI, LEV, PGHL, RBRK, ASAN, FET, USEA, SAG, SOUN, HLVX, XHG, ITP, AQMS, BBAI, ALBT, KIRK
• Gap Down: ORIS, ZSPC, CAMP, FOXX, PRFX, VRPX, TARA, MTEM, SWBI, PBM, BRTX, BTCT, MIGI, ANTE, BJDX, RKDA, BSLK, IOT, JYD, STSS

Insider Action: No stock sees Insider buying with dumb short selling. No stock 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: US Jobs Report to Show Hiring Rebounded After Storms and Strike. (Bloomberg)
• 5 Things To Know Before The Market Opens. (CNBC)
• Stocks Making The Biggest Moves: LULU, DOCU, ULTA, WOOF. (CNBC)
• Market Wrap: Traders Adopt Caution in Countdown to Jobs Report (Bloomberg)
• Bank of America strategist Michael Hartnett notes the S&P 500’s SPY price-to-book ratio has surged to 5.3x this year, approaching the 5.5x peak reached in March 2000 during the height of the dot-com bubble.
• This market maven raised his S&P 500 target three times this year. Now he says there’s too many bulls (MarkeWatch)
• Bloomberg: The Big Take – Macron’s Grand Project in Ruins After French Government Falls. (Podcast)

M&A Activity and News:

• AVVIY nears prelim agreement to acquire Direct Line Insurance Group after $4.4 bln bid. (Bloomberg)

Moving Averages On Major Equity Indexes: Moves down from 93% to 85%.

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:  RSG, PCH, MO, KC, HOOD, FTI, EPAM, DG, BRX, BMO, ACN
  • Downgrades:  PLD, LBTYA, ACDC