Early Look

Tuesday, January 4, 2022

Futures	Up/Down	%	Last
Dow	118.00	0.32%	36,573
S&P 500	18.25	0.38%	4,804
Nasdaq	61.50	0.37%	16,546

 

 

U.S. stock futures are looking higher, with the S&P 500 and Dow again looking to test all-time highs, while the Nasdaq looking at outperformance after being among the top sector leaders Monday as investors look to put money to work to start the New Year. Stocks rose on Monday as investors began betting the economy could overcome the latest surge in Covid cases, despite a spike in Treasury yields as 1, 2, 3, and, 5-year Treasury yields close at their highest levels since the start of the pandemic and the benchmark 10-year rose 12 bps to 1.62% (higher again this morning). Overnight, the U.S. dollar/yen rises above 116 for the first time since January 2017 as the buck jumps with expectations the Fed will boost interest rates three times in 2022. In Asian markets, The Nikkei Index surged over 500 points or 1.77% to settle at 29,301, the Shanghai Index fell 7 points to 3,632, and the Hang Seng Index was up slightly at 23,289. In Europe, the German DAX is up just over 100 points to 16,120, while the FTSE 100 also gains roughly 100-points or 1.3% to 7,480.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 30.38 points, or 0.64%, to 4,796.56

·     The Dow Jones Industrial Average rose 246.76 points, or 0.68%, to 36,585.06

·     The Nasdaq Composite jumped 187.83 points, or 1.20%, to 15,832.80

·     The Russell 2000 Index advanced 27.24 points, or 1.21% to 2,272.56

 

Events Calendar for Today

·     7:45 AM ET                 ICSC Weekly Retail Sales

·     8:55 AM ET                 Johnson/Redbook Weekly Sales

·     10:00 AM ET               ISM Manufacturing PMI, for December

·     10:00 AM ET               JOLTs Job Openings for November

·     4:30 PM ET                 API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: None

·     Earnings After the Close: MLKN, SGH

 

Other Key Events:

·     Citigroup AppsEconomy Conference (virtual), 1/4-1/7

 

 

Macro	Up/Down	Last
Nymex	0.58	76.66
Brent	0.65	79.63
Gold	1.25	1,802.70
EUR/USD	-0.0013	1.1279
JPY/USD	0.79	116.11
10-Year Note	+0.003	1.633%

 

 

World News

·     Caixin China Dec. Manufacturing PMI 50.9 above est. 50 and previous 49.9

·     Japan Dec Jibun Manufacturing PMI higher: 54.3 vs 54.2 prelim

·     White House is looking at nominating economist Philip Jefferson for a seat on the Fed board of governors, he has twice previously worked at the Federal Reserve – Bloomberg

 

Sector News Breakdown

Consumer

·     Coca-Cola (KO) upgraded to Buy from Neutral at Guggenheim

·     Ford Motor Company (F) is planning to nearly double the annual production of its electric F-150 Lightning pickup truck at the Rouge Electric Vehicle Center in Dearborn to 150,000 trucks per year based on a high number of advance reservations

·     Sports e-commerce company Fanatics has acquired sports trading card company Topps, sources confirmed to CNBC on Monday night. Terms of the agreement were not available, but industry sources put the deal at north of $500 million https://cnb.cx/347w67F

 

Energy, Industrials and Materials

·     Ball Corp. (BLL) downgraded to Neutral from Buy at Citigroup

·     Greif, Inc. (GEF) announces definitive agreement to divest 50% stake in flexible packaging joint venture to gulf refined packaging for $123 mln

·     General Electric (GE) upgraded to Outperform from Neutral at Credit Suisse

·     Honeywell (HON) downgraded to Neutral from Outperform at Credit Suisse

·     U.S. spot HRC steel prices declined 8.9% to $1,500/st over the past two weeks, the lowest level seen since early May. In the latest Steel Monitor, according to BMO’s (watch NUE, X, CLF)

 

Financials

·     Annaly Capital Management (NLY) said on Dec 31 its board authorized a new share repurchase program up to $1.5 bln of outstanding shares of common stock through Dec 31, 2024

·     CBRE Investment Management (CBRE) said it has agreed to buy a global portfolio of logistics properties valued at $4.9 billion, representing one of the largest sales ever of industrial property.

·     Marathon Digital (MARA) said annual Bitcoin production increases 846% Yoy to 3,197 BTC in 2021

·     Heritage Insurance (HRTG) announces $25M share repurchase plan

 

Healthcare

·     Allena Pharmaceuticals (ALNA) said ALLN-346, an orally administered enzyme in development for the treatment of hyperuricemia and gout, demonstrates a statistically significant reduction in serum uric acid and a well-tolerated safety profile in first cohort of patients with hyperuricemia and chronic kidney disease in the Phase 2a Study 201

·     Investors are set to demand around 2.2 billion euros ($2.5 billion) from Bayer (BAYRY) as part of a possible class action lawsuit in Germany over the takeover of U.S. seed manufacturer Monsanto

·     Jazz Pharmaceuticals (JAZZ) said the FDA granted Orphan Drug Exclusivity for Xywav as a treatment for adults with idiopathic hypersomnia

·     Intra-Cellular (ITCI) files to sell $400M in common stock

·     Liquidia Corp. (LQDA) shares rise after the company said it named Roger Jeffs as chief executive, succeeds Damian deGoa, who will remain a director of the company and will provide transition support through Jan. 31.

·     Novartis AG (NVS) said a U.S. appeals court has upheld the exclusivity of its multiple-sclerosis blockbuster drug Gilenya.

·     Silverback Therapeutics (SBTX) files for mixed shelf of up to $250 mln

·     Stryker (SYK) and Globus Medical (GMED) both upgraded to overweight at Piper Sandler

·     Elizabeth Holmes, the former Theranos CEO who promised to revolutionize medicine but whose company collapsed under the weight of its many misrepresentations, was found guilty of fraud on yesterday

 

Technology, Media & Telecom

·     AT&T (T) and Verizon Communications (VZ) have done a 180 and have agreed to delay the rollout of new 5G service following pressure from Transportation Secretary Pete Buttigieg, The Wall Street Journal reported

·     Global semiconductor sales rose 23.5% Y/Y in November to $49.7B, a 1.5% M/M increase, according to new data from the Semiconductor Industry Association.

·     Warner Music (WMG) announces 8.56M share stock sale by Access Industries affiliates

·     ASGN Inc. (ASGN) board approved new stock repurchase program under which Co may repurchase up to $350 mln of common stock

·     Blackbaud (BLKB) acquires EVERFI, a SaaS Leader powering corporate ESG and CSR initiatives that reach millions of learners each year for $750M in cash and stock; BLKB reiterates full year 2021 outlook

·     Sirius XM (SIRI) downgraded to Equal Weight from Overweight at Wells Fargo