QPI Note - 01/03/24: Stocks Lower For Second Morning In A Row.
Overnight Summary: The S&P 500 closed Friday lower by -0.57% at 4742.83 from Friday lower by -0.28% at 4769.83. The overnight high was hit at 4790.75 at 6:05 p.m. EST while the low was hit at 4769.50 at 7:15 a.m. EST. The range overnight was 21 points as of 6:20 a.m. EST. The 10-day average of the overnight range is at 16.90 from16.10. The average for May-December average was 20.87 from 21.43. Currently, the S&P 500 is lower by -17.50 at 7:20 a.m. EST.
Executive Summary: Santa Claus Rally which extends into January in trouble for a second day of weakness in a row. Key economic and Fed data could turn the early action around. Yields are on the rise as 4% is close at hand of becoming support instead of resistance.
December ISM Manufacturing Index is due out at 10:00 a.m. EST and is expected to rise to 47.10% from 46.7%.
The latest FOMC Minutes from the December Meeting are due out at 2:00 p.m. EST.
Earnings Out After The Close: None of note.
Capital Raises:
IPOs Priced or News:
KKR-Backed BrightSpring Is First to File in 2024 for Big IPO. (Bloomberg)
Smith Douglas Homes Corp (SDHC) announced the launch of the IPO of 7,692,308 shares of its Class A common stock; offering price is currently expected to be between $18.00 and $21.00 per share.
New SPACs launched/News:
Noventiq and Corner Growth Acquisition Corp. (COOL) File Form F-4 Ahead of Proposed Nasdaq Listing.
Secondaries Priced:
ARWR: Prices offering of 15.79 mln shares of common stock at $28.50 per share.
Notes Priced of note:
WMB: Prices $2.1 Billion of Senior Notes.
Common Stock filings/Notes:
BJDX: Announces Closing of $3.5 Million Public Offering.
GOVX: Filed Form S-1..21,134,968 Shares of Common Stock.
LBPH: Announces commencement of $150 million public offering of common stock. (Cantor and Citi bookmanagers)
MHUA: Announces Closing of Initial $6 Million Tranche of Potential $50.5 Million Maximum Offering.
Selling Shareholders of note:
CIVI: Filed Form S-3ASR.. 7,181,527 Shares of Common Stock by selling shareholder.
Mixed Shelf Offerings:
SLNO: Files mixed shelf securities offering.
Debt/Credit Filing and Notes:
ENS: Announces Proposed Offering of Senior Notes.
FUBO: Closes Exchange of $205.8 Million Existing 3.25% Convertible Senior Notes Due 2026 for Convertible Senior Secured Notes Due 2029.
Convertible Offering & Notes Filed:
AMC: Discloses that it entered into a series of privately negotiated exchange agreements.
NIO: Announces repurchase right notification for 0.00% convertible Senior Notes due 2026.
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 Movers:
SASI: +58% Patent talk on name earlier
FWBI: +47% Price target Raised at Roth
LBPH: +5% Commencement of Offering
ASTS: +5% Provides Interim Update on Fundraising
DYN: +3.5% to Host Virtual Event Tomorrow, January 3 at 8:00 AM ET, to Present Initial Clinical Data from ACHIEVE and DELIVER Trials
SOFI: -2.7% Downgraded to Underperform @ Keefe
News Items After the Close:
US government debt reaches $34 trillion.
Fisher Investments in Sale Talks: Advent International in talks to acquire money manager founded by Ken Fisher. (WSJ)
Exchange/Listing/Company Reorg and Personnel News:
Index Changes:
Patterson Companies (PDCO) to replace Chico's (CHS) in S&P 600 at open on 1/5
Pure Storage (PSTG) to replace Patterson Companies (PDCO) in S&P 400 at open on 1/5.
AutoZone (AZO) Announces Completion of Leadership Transition Plan.
Dutch Bros (BROS) appointed Christine Barone as CEO on January 1; served as President since February 2023.
Eldorado Gold (EGO) appoints Paul Ferneyhough as EVP and CFO.
Entrada Therapeutics (TRDA) announced that Nathan Dowden, current Chief Operating Officer of Entrada Therapeutics, has been promoted to President and Chief Operating Officer.
Hepsiburada (HEPS) announces that M. Seçkin Köseoğlu has officially taken on the role of its CFO.
Herbalife Nutrition (HLF) appointed Chief Strategy Officer, Stephan Gratziani, to President.
PARTS iD (ID) Announces Delisting from NYSE American.
Buyback Announcements or News: None of note.
Stock Splits or News:
SAB Biotherapeutics (SABS) Announces 1-for-10 Reverse Stock Split.
TENX 1/80 reverse split.
PRSO 1/40 reverse split.
Dividends Announcements or News:
Alamo Group (ALG) increases quarterly cash dividend to $0.26 per share from $0.22 per share.
Bank OZK (OZK) increases its quarterly dividend by 2.7% to $0.38/share; 3.1% annual yield.
Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -21, Dow Jones -136, NASDAQ -121, and Russell 2000 -22. (as of 7:59 a.m. EST). Asia and Europe are lower this morning. VIX Futures are at 14.45 from 14.23 this morning. Gold, Silver and Copper lower this morning. WTI Crude Oil is lower while Brent Crude Oil is higher with Natural Gas higher as well. US 10-year Treasury sees yields at 3.972% from 3.946% yesterday. The U.S. Dollar is higher versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $42,268 from $45,473 lower by -5.65% this morning.
Sector Action –
Daily Positive Sectors: Healthcare, Utilities, Consumer Defensive, Real Estate, Energy of note.
Daily Negative Sectors: Technology, Consumer Cyclical, Industrial, Communication Services, Basic Materials of note.
Tumbling technology stocks cast a pall over a trading day in which the Dow Jones Industrial Average ended at a new all-time high, showing how much sway a few giant technology firms have over the broader market. The tech-heavy Nasdaq Composite Index declined 1.6%, dragged down by the same big names, including Apple and Nvidia, that propelled it 43% higher last year. A good day for energy, healthcare, utilities and consumer-staples stocks couldn’t offset the pull from technology and telecom shares in the S&P 500, which shed 0.6%. The Dow Jones Industrial Average, which has risen for nine consecutive weeks, eked out a 0.07% gain, or 25.5 points, to close at a record 37715.04. Rising bond yields contributed to the selloff in tech stocks. The yield on the benchmark 10-year U.S. Treasury note ended Tuesday at 3.944%, up from 3.860% on Friday. Yields rise as prices fall. (WSJ - edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software - sorted by market cap, highest to lowest with most visible names)
Wednesday After the Close: CALM. RGP, SLP.
Thursday Before the Open: CAG, LW, LNN, RDUS, RPM, SMPL, WBA
Earnings of Note This Morning:
Still to Report: UNF of note.
Company Earnings Guidance: None of note.
Erlanger Research Advance/Decline Chart: No chart today. Will return tomorrow!
Gap Ups & Down In Early Pre-Market:
Gap Up: DYN +101%, AGIO +57%, TDCX +30%, FEAM +12%, ASTS +8%, ALVO +5%, GLYC +5%, PGTI +4%, BLMN +4%, PSTG +4% of note.
Gap Down: CMPS -6%, ODP -5% of note.
Insider Action: No stock sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers.
FPAY, ZIVO, ASA, TTSH, GSAT
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: COIN, SOFI, SCHW, BLMN, MARA, PGTI, DIS, AAPL (CNBC)
What You Need To Know To Start Your Day. (Bloomberg)
5 Things To Know Before the Stock Market Opens on Wednesday. (CNBC)
Bloomberg Lead Story: 10 Year Yield Eyes 4% Ahead of U.S. Economic Data. (Bloomberg)
Bloomberg Second Most Shared Story: Harvard’s Gay quits as president of the university over plagiarism and antisemitism issues. (Bloomberg)
Bonds, Stocks extend drop in front of U.S. economic data: Market Wrap (Bloomberg)
Bloomberg Odd Lots: The Top Ten Things learned in Odd Lots in 2023. (Podcast)
Mortgage Demand drops 0.4% the last week of 2023 despite rates lower. (CNBC)
NPR Marketplace: China set to dominate the EV market globally. (Podcast)
NY Times Daily: Biden's 2024 Playbook - stay in the basement. (Podcast)
BBC Global News Daily Podcast: Hamas deputy leader killed in Beirut blast. (Podcast)
Wealthion: Ringing in 2024, prediction for the year. (Podcast)
Moving Average Update: No update today. Will return tomorrow!
Geopolitical:
President’s Public Schedule:
The President receives the Presidential Daily Briefing, 2:00 p.m. EST
Press Briefing by Press Secretary Karine Jean-Pierre and NSC Coordinator for Strategic Communications John Kirby, 2:00 p.m. EST
Economic:
MBA Mortgage Applications 7:00 a.m. EST
U.S MBA 30-Year Mortgage Rate Actual: 6.76% VS 6.83% Previous
MBA Mortgage Data: Composite: -10.7%, Purchase: -7.6%, ReFi: -18.1%.
Redbook Sales 8:55 a.m. EST
JOLTS 10:00 a.m. EST
December ISM Manufacturing Index is due out at 10:00 a.m. EST and is expected to rise to 47.10% from 46.7%.
The latest FOMC Minutes from the December Meeting are due out at 2:00 p.m. EST.
API Crude Oil Data 4:30 p.m. EST
Federal Reserve / Treasury Speakers:
Federal Reserve Richmond President Thomas Barkin 8:30 a.m. EST
M&A Activity and News:
Bruker (BRKR) has acquired Nion.
Franklin Electric's (FELE) Headwater Companies acquires U.S. Groundwater Distribution Company.
KKR closes on previously-announced transaction in which KKR is acquiring remaining 37% of Global Atlantic, increasing KKR’s ownership to 100%.
Meeting & Conferences of Note:
Sellside Conferences:
Goldman Sachs Global Energy Conference
Sankey Research Energy Conference
Top Shareholder Meetings: BPAX
Investor/Analyst Day/Calls: DYN, MNKD, SLS
Top Tier Sell-side Upgrades & Downgrades: