CAPIS Morning Note – 2/6/25: Futures Up Modestly, Jobs Friday Tomorrow

• IPOs For The Week: FBGL, TTAM
• New IPOs/SPACs launched/News:
• IPOs Filed/Priced: None of note. 
• Secondaries Filed or Priced:
  • TBBB: Pricing of Secondary Offering.. 21,000,000 Class A common shares @$28.25
  • CDT: Form S-3.. 5,800,000 Shares of Common Stock Underlying the Convertible Note
  • GAIA – Gaia Announces Proposed Underwritten Offering of Common Stock.
  • INDP: Form S-3.. 4,366,422 Shares of Common Stock.
  • SDA Pricing of $50 Million Follow-On Public Offering of Class A Ordinary Shares
• Notes Priced:
  • ABBV: Form 8K.. Unsecured revolving credit facility
• Direct Offering: None of note.
• Exchangeable Subordinate Voting Shares: None of note.
• Selling Shareholders of note:
  • MESO files for 34,675,000 ordinary shares represented by 3,467,500 ADSs offering by selling shareholders. 
• Mixed Shelf Offerings:
  • BEN files mixed shelf securities offering.
  • CURLF files $1.0 bln mixed shelf securities offering. 
  • KZR: Form S-3.. $400,000,000 Mixed Shelf.
• PIPE:
• Convertible Offerings & Notes Filed:

Biggest Movers Up & Down Yesterday:

• Movers Up: APPS +25.2%, AMSC +14.8%, TTMI +13%, COHR +12.5%, UTI +7.3% of note. 
• Movers Down:  FORM -24.8%, PI -24.6%, SWKS -22.6%, ARM -7.1%, F -5.3%, QCOM -4.5%  of note.

News After The Close:

• Microstrategy (MSTR) to change its name to Strategy.
• Qualcomm (QCOM) cautioned on patent licensing business.
• Costco (COST) reports January adjusted comparable sales of +9.8%.
• CBOE reports trading volume for January 2025.
• Becton Dickinson (BDX) announces intent to separate Biosciences and Diagnostic solutions business to enhance focus, drive growth and unlock value.
• The Federal Reserve Board released the hypothetical scenarios for its annual stress test on large banks.
• SONO announced a reorganization and reduction in force involving approximately 12% of its employees.
• Index Changes:
  • Millrose Properties (MRP) will replace Ironwood Pharmaceuticals (IRWD) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, February 10. Lennar spun off MRP.
• 10K or Qs Delays – none of note.

Exchange/Listing/Company Reorg and Personnel News:

• DIN announces that Tony Moralejo will step down as Applebee’s President, effective March 4; Dine Brands CEO John Peyton to serve as Interim Applebee’s President.
• SWKS appoints Philip Brace as President and CEO, effective Feb 17; Christine King appointed Chairman of the board.
• INSG announces that Phil Brace is stepping down from his role as Executive Chairman of the Company’s Board of Directors, effective immediately, in order to serve as CEO and board member of Skyworks Solutions (SWKS).
• GDRX announces that Christopher A. McGinnis has been appointed as Chief Financial Officer, effective February 4, 2025.
• CRM appoints Robin Washington as President and COO, effective March 21; Brian Millham, President and COO, to retire after 25 years at Salesforce.

Buybacks:

• EA entered into an accelerated share repurchase agreement to buy $1 billion of stock.
• RNR approves renewal of share repurchase program, bringing the total current authorization up to $750 mln.
• SIMO announces new $50 mln repurchase plan.

• Stocks Ex Div Today: HESM WTFC KBH MATX FELE FUL HOPE CCEC HFWA HTBK
• Stocks Ex Div Tomorrow: 
• CSGS increases quarterly cash dividend to $0.32/share from $0.30/share.
• RNR increases quarterly dividend to $0.40/share from $0.39/share.
• Connection (CNXN) up its quarterly dividend to $0.15 from $0.10.
• CTSH raises its quarterly dividend by 3% to $0.31.

What’s Happening This Morning: (as of 8:15 a.m. EDT) Futures S&P 500 +10, NASDAQ +2.50, Dow Jones +45 and Russell 2000 + . Europe is higher with Asia higher except for China. Bonds are at 4.44% from 4.458% on the 10-Year. Crude Oil and Brent Crude are higher with Natural Gas higher as well. Gold is lower with Silver lower as well and Copper higher. The U.S. Dollar is higher versus the Euro, higher against the Pound and lower against the Yen. Bitcoin is at $98,433 to $99,461 higher by $1009 up by +1.04%.  Additional Comments: The S&P 500 has now broken back above 6000 and now it has become support in a back and forth with the 6000 level.

• Daily Positive Sectors: Technology, Healthcare, Real Estate and Utilities were higher.
• Daily Negative Sectors: Consumer Cyclical and Communication Services were lower.
• One Month Winners: All except for Technology of note.
• Three Month Winners: Communication Services, Consumer Cyclical, Financials and Technology of note.
• Six Month Winners: Consumer Cyclical, Financials, Communication Services, Utilities and Industrials of note.
• Twelve Month Winners: Technology, Communication Services, Financials, Consumer Cyclical and Utilities note.
• Year to Date Winners:  Energy, Healthcare, Communication Services, Materials, Utilities, Industrials and Technology of note.

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

• Thursday After the Close: (Above $5 Billion Market Cap)

• Friday Before The Open:  (Above $7 Billion Market Cap)

Notable Earnings of Note This Morning:

• Gap Up: APPS +25.2%, TTMI +17.8%, COHR +15.7%, AMSC +15.6%, CCK +11.6%, UTI +9.9%, RXRX +8.5%, PAHC +6.3%, MC +5.4%, MT +5.3%, CSGS +5.2%, BYON +4.6%, ENSG +4.5%, NWSA +4.3%, HLX +4.1%, PBH +3.8%, RDN +3.5%, ALL +3.3%, LGIH +3.2%, YUMC +3.2%, AZN +2.5%,of note.
• Gap Down: FORM -29.5%, SWKS -29.4%, MTRX -26.6%, PI -23.5%, SRTS -17.7%, LFVN -17.3%, SYM -16.4%, WEX -13.2%, AOSL -10.1%, KIRK -10%, CNMD -9.5%, KURA -9.2%, MOH -8.1%, VKTX -7.9%, UDR -7.6%, MNR -6.7%, F -6.5%, BIOX -6.3%, SIMO -6.2%, PLUS -6.2%, HOLX -5.5%, REXR -5.2%, DLX -5.2%, BV -4.7%, QCOM -4.4%, LIN -4.4%, QGEN -4.2%, ENTG -3.8%, IPX -3.7%, HI -3.6%, ARM -3.6%, ING -3.5%, ENS -3.4%, HON -3.3%, MYGN -3.2%, PTC -3%, ALGN -2.9%, HMN -2.9%, PTEN -2.9%, EGO -2.8%, CPAY -2.7%, SKWD -2.7%, INSG -2.6%, HP -2.6%, SONO -2.5%, MRUS -2.5%, CTSH -2.5%, CTVA -2.4%, BARK -2%, BDX -2% of note.

Insider Action: Non of note see Insider Buying with dumb short selling. None of note 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: Trump Flashes New Found Imperalist Streak In Return To White House. (Bloomberg)
• Market Wrap: US Futures falter as Qualcomm and Ford slide. (Bloomberg)
• Stocks Making The Biggest Moves: . (CNBC)
• The Bank of England lowered rates by 25 basis points. (CNBC)
• Treasury Secretary Bessent says Trump wants 10 Year Yield to drop not Fed to cut rates. (Bloomberg)
• Eli Lilly (LLY) beats but results considered mixed. (CNBC)
• Bristol Myers Squibb (BMY) plans $2 billion in cost cuts by 2027, issues weak guidance. (CNBC)
• Bloomberg Odd Lots: Palantir’s vision for U.S. Defense spending. (Podcast)
• Bloomberg Big Take: How Economists think about the future of AI. (Podcast)

M&A Activity and News:

Moving Average Table:  Rises to 97% from 70%.

Meeting & Conferences of Note:

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:  
    • Downgrades: