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"CAPIS Morning Note – 12/29/21: Stocks Mixed As We Hit Hump Day, Hong Kong Media Offices Raided Overnight"

posted by CAPIS on 12/29/2021 at 8:20 am

by CAPIS

12/29/2021 at 8:20 am

Overnight Summary:  Stocks are trading mixed today. Only the FTSE is up strong as it came back from two days of holiday gaining +1%. Asia was lower overnight. The S&P 500 is in a narrow overnight range with a low of 4776 and a high of 4790 and at 7:20 a.m. EST is up +2 and 4780.

Chart of the Week: McCormick & Co (MKC) just moved to a Short Squeeze in Erlanger Chart Room as its Tech Rank improved overnight. The stock is back to where it was a year ago.

Earnings Out After The Close:

  • Beats: None.
  • Flat: None.
  • Misses: CALM (0.28)

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • Athena Technology Acquisition Corp. (ATHN) announces Stockholder Approval of Business Combination with Heliogen, Inc.  It will trade under the ticker HLGN and begin trading on the NYSE December 31st.
  • Secondaries Priced:
    • Applied UV (AUVI) Announces Pricing of $8.0 Million Underwritten Public Offering.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • VCSA: Filed Form S-1.. 305,127,529 shares of Class A Common Stock.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • PL: Filed Form S-1.. Up to 185,281,772 Shares of Class A Common Stock.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Convertible Offering & Notes Filed: None of note. 
  • Note Offerings Filed: None of note.

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: 
    • Trading Up: CLAX +7%
    • Trading Down: MTRX -9%, CALM -7%
  • News Items After The Close:
    • Delta (DAL), Alaska (ALK) cancel hundreds of flights owing to bad weather, Omicron cases.(Reuters)
    • Quidel’s (QDEL) Antigen Tests Detect the Omicron Variant.
    • Radian Group Home Index sees U.S. home prices rise 13.4%.
    • Marathon Digital (MARA) signs deal with Bitmain to buy 78,000 miners for $879 million.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Calix (CALX) Set to Join S&P MidCap 400, replacing CIT Group (CIT); Douglas Elliman (DOUG) to Join S&P SmallCap 600 replacing Matrix Service (MTRX). (PR Newswire)
    • SEI (SEIC)Announces Leadership Change.
    • Verra Mobility (VRRM) Announces Patrick Byrne Appointed Chairman of Board of Directors.
  • Buyback Announcements:
    • JD.com (JD) upsizes from $2.0 billion to $3.0 billion and extends share repurchase program to March 17, 2024.
    • Nutriband Inc. (NTRB) Announces $1 Million Share Repurchase Authorization.
    • Victoria’s Secret & Co. (VSCO) Announces $250 Million Accelerated Share Repurchase Program.
  • Stock Splits: None of note.
  • Dividends Announcements: None of note.

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 +3 Dow Jones Industrial Average +3 NASDAQ +29 Russell 2000 -0.90. Asia lower and Europe mixed. VIX Futures are at 20.46 from 20.80  yesterday morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.58 from $130.56  yesterday with yields at 1.498% from 1.486% yesterday morning. Bitcoin at $46,896 from $49,222  yesterday morning and -1.96%. As of 8:00 a.m. EST.

Tuesday’s Action – 12/28 Close:  

  • Daily Positive Sectors: Utilities, Consumer Defensive, Real Estate of note.
  • Daily Negative Sectors: Technology, Communication Services, Healthcare of note.
  • One Month Winners: Basic Materials, Utilities, Real Estate of note.
  • Three Month Winners: Real Estate, Basic Materials, Technology of note.
  • Six Month Winners: Technology, Real Estate, Utilities of note.
  • Twelve Month Winners: Energy, Real Estate, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Intraday highs and positive Santa momentum faded from the opening.  Indexes mostly closed lower.  The Russell 2000 closed down 0.66%.  Commodities were mixed with Oil up 0.28% via the USO and Natural Gas (UNG) down 0.77%.  Updated 12/28 close.

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

  • Wednesday After the Close: None of note.
  • Thursday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: None.
  • Flat: None.
  • Misses: FCEL (0.03)
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 12/28 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: CALX +8%, ENS +3%
    • Gap Down: MTRX -8%, CALM -7%

Insider Action: NOVA sees Insider buying with dumb short selling and KFS has smart short sellers with insider buys. 12/28 close

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Stocks Making the Biggest Moves: CALM, TSLA, BABA, DIDI, AKAM, VSCO (CNBC)
  • Covid cases rocket to 441,278 cases from 288,579. Hospitalizations are at 63,106 from 60,907.
  • Brazil court tells Petrobras (PBR) cannot increase natural gas prices further. (Reuters)
  • National Security Police, i.e. Chinese Police, in Hong Kong raided another pro-democracy news outlet, Stand News. (CNN)
  • China locks down Samsung (SSNLF) plants in Xian due to spread of COvid-19. (South China Morning Press)
  • Omicron causing milder illness in children, similar to adults. (NYT)
  • Carnival (CCL) keeps to schedule despite Omicron. (Reuters)
  • Media companies to spend $115 billion on new streaming content. (FT)
  • Walt Disney (DIS) reopens Typhoon Lagoon after almost two years. (AP)
  • Oramed (ORMP) Subsidiary Oravax Medical Signs Cooperation and Purchase Agreement for an Initial Pre-Purchase of 10 Million Doses of Oral COVID-19 Vaccines with Tan Thanh Holdings to Commercialize in Southeast Asia.
  • China’s Didi (DIDI) plans Hong Kong ‘listing by introduction’, picks banks. – sources
  • Alibaba (BABA) is weighing options for its stake in social media Weibo and is in talks with a state-owned firm for a potential deal. The discussions between Alibaba and Shanghai Media Group could lead to the latter purchasing all of Alibaba’s roughly 30% stake in Weibo.
  • Apple, Inc. (AAPL) Resumption Of Ops At Foxconn’s Southern India Plant Could Be Delayed To Jan 3. – Govt Source
  • Hertz (HTZ) Suggests ‘First Wave Of National Rollout’ Of Tesla (TSLA) EVs On Track, Prepares To Expand To ‘New Markets’.

Moving Average Update:

  • Score ticks down to 93% from 96%. The Russell 2000 needs to clear its 50 and 200 Day Moving Average for all to be well. Updated 12/28 close.

Geopolitical: 

  • President’s Public Schedule:
    • Press Briefing by White House COVID-19 Response Team and public health officials, 11:00 a.m. EST
    • The President and The First Lady depart Rehoboth Beach, Delaware en route Wilmington, Delaware, 5:00 p.m. EST
    • The President and The First Lady arrive in Wilmington, Delaware, 6:50 p.m. EST

Economic

  • Wholesale Inventories 8:30 a.m. EST
  • Retail Inventories 8:30 a.m. EST
  • International Trade in Goods 8:30 a.m. EST
  • Pending Home Sales for November is due out at 10:00 a.m. EST and is expected to fall to 0.6% from 7.5%.
  • EIA Petroleum Report 10:30 a.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Indiana American Water (AWK) Acquires Lowell Water System in Northwest Indiana.
  • American Tower (AMT) Completes Acquisition of CoreSite Realty Corporation (COR).
  • Darling Ingredients (DAR) will acquire Valley Proteins for $1.1 billion cash deal.
  • Hain Celestial (HAIN) Completes Acquisition of ParmCrisps® and Thinsters®.
  • RBB Bancorp (RBB) Announces Entry into the San Francisco Bay Area with Agreement to Acquire Gateway Bank, F.S.B.
  • Sterling Construction (STRL) acquires Kimes & Stone, provider of soil stabilization services for site development.  Deal is worth $7.6 million.

Meeting & Conferences of Note:

  • Sellside Conferences:  None of note. 
    • Previously Posted and Ongoing Conferences:
      • None
  • Company Meetings: AUID, FFHL, VIAO
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: None of note.
      • Previously Posted and Ongoing Conferences:
        • None.

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 it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Tuesday’s Upgrades and Downgrades:

DISCLAIMER

This communication is for informational purposes only and is solely intended for use by institutional investors. Use of this communication by others, including retail investors, is prohibited. No statement herein is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Certain products, including options and futures, may involve substantial risk and are not suitable for all investors. The information on this webpage is provided by an independent third party. While the information and opinions presented in this material have been obtained or derived from sources believed by Capital Institutional Services, Inc. (CAPIS) to be reliable, CAPIS makes no representations concerning its accuracy or completeness, and accepts no liability for loss arising from the use of this material.