QPI Note - 02/27/24: Stocks Rebound From Overnight Lows To Modest Gains.
Overnight Summary: The S&P 500 closed Monday lower by -0.38% at 5069.53 from Friday higher by 0.03% at 5088.80. The overnight high was hit at 5087 at 4:30 a.m. EST while the overnight low was hit at 5073 at 12:45 a.m. EST. The range overnight was 14 points as of 7:15 a.m. EST. The 10-day average of the overnight range is at 20.54 from 20.89. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +5.00 points at 7:15 a.m EST.
Executive Summary: Several key economic data points are due out today along with President Biden meeting with Congressional leaders.
January Durable Orders are due out at 8:30 a.m. EST and is expected to fall to -4.40% from 0.0%.
Federal Reserve Vice Chair for Supervision Michael S. Barr 9:05 a.m. EST
February Consumer Confidence is due out at 10:00 a.m. EST and is expected to fall to 114.60 from 114.80.
President Biden meets with top Congressional leaders on a potential government shutdown at 11:30 a.m. EST.
The latest short interest from the NYSE and NASDAQ for the period of 1/29 through 2/13 saw the S&P 500 rise by 0.51% and the Russell 2000 fall by -2.35%.
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500. It looks for volume outliers relative to the Open interest in Calls or puts. Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.
Earnings Out After The Close:
Beats: DDS +3.09, CPE +0.86, AIN +0.40, IRBT +0.29, ZM +0.27, TMDX +0.19, DORM +0.16, ADUS +0.15, RCKT +0.14, PUBM +0.14, PRIM +0.12, HLIO +0.11, WDAY +0.10, HEI +0.08, AES +0.06, SBAC +0.04, HIMS +0.03, RLJ +0.02, IIPR +0.02, TREX +0.01, CARG +0.01 of note.
Flat: FSK of note.
Misses: U (0.89), AAN (0.29), RVMD (0.29), ASUR (0.19), DRQ (0.14), PWSC (0.04), AEP (0.03), EVBG (0.02), OKE (0.02), STAA (0.01) of note.
Capital Raises:
IPOs Priced or News:
Vocodia Holdings Corp (VHAI) Announces Closing of $5.95 Million Initial Public Offering and the First IPO to be Listed on The BZX Exchange of CBOE Global Markets.
Notes Priced of note:
BLDR: Prices Offering of $1 Billion of Senior Notes due 2034.
BN: Announces Pricing of $750 Million Notes Offering.
LYB: Prices Public Offering of Guaranteed Notes.
WAB: Has priced a public offering of $500 million of 5.611% senior notes due 2034.
Common Stock filings/Notes:
AWR: Files common shares offering.
NRXP: Proposed Underwritten Public Offering of Common Stock. (EF Hutton bookmanager)
RIOT: Form 8K.. entered into a Controlled Equity Offering.. up to $750,000,000.
Private Placement of Public Entity (PIPE):
CDE: Flow-Through Shares Private Placement to Advance Silvertip Exploration.
CMCXF: Announces Private Placement to Raise Up to $1,200,000.
Mixed Shelf Offerings:
HES: Files mixed shelf securities offering.
NTB: Files mixed shelf securities offering.
SITM: Files mixed shelf securities offering.
UVSP: Files $175 million mixed shelf securities offering.
Debt/Credit Filing and Notes:
WCC: Announces Pricing of Private Offering of Senior Notes Due 2029 and Senior Notes Due 2032.
Convertible Offering & Notes Filed:
FIVN: Announces proposed $600 million convertible notes offering due 2029.
PRGS: Announces offering of $350 million convertible senior notes due 2030.
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:
JANX: +110% Data Presentation on PSMAxCD3-TRACTr JANX007
PUBM: +32% Earnings
GRTX: +25% Insider Purchase
HIMS: +20% Earnings
EVER: +17% Earnings
TMDX: +16% Earnings
SEZL: +13% Earnings
ZM: +10.5% Earnings
TREX: +8% Earnings
U: -18% Earnings
CARG: -14% Earnings
SIBN: -12% Earnings
WDAY: -8% Earnings
FATE: -6.5% Earnings
FIVN: -5.5% Proposed $600 Million Convertible Notes Offering
STAA: -5% Earnings
ITRI: -4.7% Earnings
RIOT: -3.75% Controlled Equity Offering
HES: -3.2% FORM S-3ASR - Mixed Shelf Offering
News Items After the Close:
Stocks making the biggest moves after hours: WDAY, ZM, CARG, U, STAA, HIMS (CNBC)
Chevron’s (CVX) $53 Billion Deal for Hess (HES) in Jeopardy on Possible Exxon (XOM) Challenge. (WSJ)
Zoom (ZM) shares jump as quarterly results beat on top and bottom lines. (CNBC)
Workday (WDAY) logs profit beat and inks AI deal, but stock drops after earnings. (MarketWatch)
Unity (U) shares shed nearly a fifth of its value as earnings, forecast underwhelm. (MarketWatch)
Broadcom (AVGO) Said to Pause $1 Billion Sale of Carbon Black Unit.
Bitcoin resumes its rally, ripping through $54,000 for the first time since December 2021. (CNBC)
Expedia Group (EXPE) reducing its workforce by approximately 1,500 employees. (MarketWatch)
Citi says S&P 500 not in a bubble, tells investors to 'buy pullbacks'. Overall, the year-to-date surge of nearly 7% in the S&P 500 increases the necessity for fundamental growth factors to materialize and sustain the market's movement, Citi added. Essentially, investors are advancing funds based on anticipated future earnings growth.
Exchange/Listing/Company Reorg and Personnel News:
Index Changes: American Homes 4 Rent (AMH) to join S&P MidCap 400.
American Electric (AEP) appoints Benjamin Fowke III, a member of the company's Board of Directors and the former chairman and CEO of Xcel Energy, as interim CEO and President.
Brinker (EAT) CFO Joe Taylor to retire.
Lithium Argentina (LAAC) announces the Board’s unanimous decision to appoint Sam Pigott as President and Chief Executive Officer.
Mercer Intl (MERC) announces that Jimmy Lee is stepping down as Executive Chairman and director of the Company for personal health reasons.
Shake Shack (SHAK) preparing restatements of its prior financial statements to be included in its FY23 10-K.
Silicon Labs (SLAB) names Dean Butler as CFO.
Sunnova Energy (NOVA) appoints Paul Mathews as COO.
Synaptics (SYNA) Announces Chief Financial Officer Transition.
The Wendy's Company (WEN) Names Matt Spessard Chief Information Officer.
Buyback Announcements or News:
National Vision (EYE) authorizes repurchase of up to $50 million of common stock.
PubMatic (PUBM) announces up to an additional $100 million for share repurchase program.
South Plains Financial, Inc. (SPFI) Announces Stock Repurchase Program.
Zoom Video (ZM) authorizes up to $1.5 bln for repurchases.
Stock Splits or News: None of note.
Dividends Announcements or News:
Atlas Energy Solutions (AESI) misses by $0.14, misses on revs; increases quarterly dividend 5%
Bentley Systems (BSY) increased its quarterly dividend by 20% to $0.06 per share.
Carter's (CRI) increases quarterly cash dividend by 7%.
Ellington Financial (EFC) to cut monthly dividend to $0.13 per share from $0.15.
Perrigo (PRGO) increases quarterly cash dividend 1% to $0.276 per share from $0.273 per share.
Sempra Energy (SRE) Dividend increased to $0.62 per share from $0.595 per share.
TriCo Bancshares (TCBK) increases quarterly cash dividend 10% to $0.33 per share from $0.30 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +7, Dow Jones +27, NASDAQ +57, and Russell 2000 +17. (as of 8:00 a.m. EST). Asia is higher ex South Korea and Europe is lower ex Germany this morning. VIX Futures are at 14.80 from 14.78 yesterday morning. Gold, Silver and Copper are higher this morning. WTI Crude Oil and Brent Crude Oil are lower while Natural Gas is lower as well. US 10-year Treasury sees its yield at 4.272% from 4.242% yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $56,947 from $51,048 higher by 4.45% this morning.
Sector Action –
Daily Positive Sectors: Technology, Consumer Cyclical of note.
Daily Negative Sectors: Communication Services, Utilities, Real Estate, Basic Materials, Financial of note.
U.S. stocks drifted lower ahead of fresh readings on the economy this week, in a subdued trading session after last week’s Nvidia-fueled rally. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average shed roughly 62 points, or 0.2%. Both were coming off records Friday. The tech-heavy Nasdaq Composite slipped 0.1%. All three indexes are on track to finish February in the green, which would mark their fourth straight month of gains. Last week, they each climbed more than 1% after chip maker Nvidia’s blockbuster earnings reignited enthusiasm about the potential of artificial intelligence technology. (WSJ - edited by QPI)
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:
Earnings of Note This Morning:
Beats: BEAM +2.42, JLL +0.52, M +0.47, LGND +0.39, BMO +0.32, SEE +0.25, SJM +0.21, TILE +0.19, CRI +0.18, VERV +0.14, ZNTL +0.13, PRVA +0.11, LOW +0.09, EYE +0.07, AMT +0.04, SLCA +0.03, PRGO +0.03, CAVA +0.03, XHR +0.03, BSY +0.02, CLVT +0.02, SRE +0.02 of note.
Flat: SHC +0.00, DEA +0.00 of note.
Misses: AZO (6.73), AHCO (2.10), CEG (1.75), ARVN (1.38), SWTX (0.20), DK (0.18), STGW (0.15), AESI (0.14), RCM (0.08), NCLH (0.06), FOUR (0.05), PAR (0.03), HSIC (0.03), NUVL (0.02), PRFT (0.02), TWKS (0.01) of note.
Still to Report: CBRL, FSS, IMXI, PNW, PTLO of note.
Company Earnings Guidance:
Positive Guidance: ITRI, HIMS, TREX, TMDX, PUBM, DORM, STRL, TILE, EYE, HSIC, DEA, XHR, NCLH of note.
Negative Guidance: SBAC, CARG, STAA, ZM, ASUR, AIN, IRBT, DRQ, AAN, ATSG, LOW, CLVT, PRGO, SJM, RCM, PRFT, SHC, TWKS of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
Gap Up: PUBM +31%, TMDX +29%, HIMS +20%, EVER +12%, ZM +12%, HLIO +11%, TREX +7%, DORM +4% of note.
Gap Down: AAN -27%, ASUR -21%, U -15%, CARG -13%, SIBN -12%, IRBT -7%, ATSG -6%, WDAY -6%, FATE -6%, ACHR -4% of note.
Insider Action: HTLD, CAT sees Insider buying with dumb short selling. No stock 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.
What You Need To Know To Start Your Day. (Bloomberg)
The Open: Newsletter for Bloomberg Subscribers *NEW* (Bloomberg)
5 Things To Know Before the Stock Market Opens Today. (CNBC)
Bloomberg Lead Story: Fed Rate Cuts Are Likely to Be Slow But Not Necessarily Steady. (Bloomberg)
Bitcoin passes $57,000 overnight. (CNBC)
Viking Therapeutics (VKTX) up 107% in pre-market on positive trial results on weight loss drug. (MarketWatch)
Lowes (LOW) beats earnings estimates but sales fall and expects weak revenues next year. (CNBC)
Macy's (M) posts another quarter of falling sales, unveils strategy to get back to growth. (CNBC)
Bloomberg: The Big Take: U.S. led sanctions have not stopped Putin. (Podcast)
NY Times Daily: (Podcast)
Marketplace: Merchants paid $126 billion in credit card fees in 2022. Pushback in lobbying campaigns and Congress. (Podcast)
Wealthion: How to outsmart common wealth traps in uncertain times (Podcast)
Moving Average Update: Day 2 of 100%.
Geopolitical:
President’s Public Schedule:
The President will meet with the four Congressional leaders at the White House; The Vice President attends, 11:30 a.m. EST
The President and The Vice President have lunch, 12:45 p.m. EST
The President receives the Presidential Daily Briefing; The Vice President attends, 1:15 p.m. EST
Press Briefing by Press Secretary Karine Jean-Pierre, 2:00 p.m. EST
Economic:
January Durable Orders are due out at 8:30 a.m. EST and is expected to fall to -4.40% from 0.0%.
Redbook Sales 8:55 a.m. EST
Case-Shiller HPI 9:00 a.m. EST
FHFA HPI 9:00 a.m. EST
February Consumer Confidence is due out at 10:00 a.m. EST and is expected to fall to 114.60 from 114.80.
Richmond Fed Mfg Index 10:00 a.m. EST
API Crude Oil Data 4:30 p.m. EST
The latest short interest from the NYSE and NASDAQ for the period of 1/29 through 2/13 saw the S&P 500 rise by 0.51% and the Russell 2000 fall by -2.35%,
Federal Reserve / Treasury Speakers:
Federal Reserve Vice Chair for Supervision Michael S. Barr 9:05 a.m. EST
M&A Activity and News:
111, Inc. (YI) announces receipt of withdrawal of going private proposal.
Workday (WDAY) Announces Intent to Acquire HiredScore.
Veradigm (MDRX) to acquire ScienceIO for 140 million in cash.
Meeting & Conferences of Note:
Sellside Conferences:
Citi FinTech Conference
KBW Fintech Payments Conference
Wolfe Research 'March Madness' Software Conference
Previously posted and ongoing conferences:
BMO Global Metals & Mining Conference
J.P. Morgan Global High Yield & Leveraged Finance Conference
UBS Financial Services Conference
Top Shareholder Meetings: CASH, FAZE, GAME, GDC, HP, ISUN, NX
Investor/Analyst Day/Calls: CSCO, HTLF, INNV, LAZR, PGR, RCEL, WHR
Industry Meetings:
APEC conference
Previously posted and ongoing conferences:
BIO CEO & Investor Conference
Mobile World Congress
ViVE Digital Health Tech Conference
Top Tier Sell-side Upgrades & Downgrades: