The S&P 500 futures trade 32 points, or 0.7%, above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The People's Bank of China lowered its one-year loan prime rate by ten basis points to 3.7% and lowered the five-year rate by five basis points to 4.60%, in line with speculation from this week. Japan's Prime Minister Kishida confirmed that a quasi-emergency will be declared in Tokyo between January 21 and February 13. Australia's unemployment rate fell to its lowest level since August 2008 in the December reading.

• In economic data:
  • Japan's December trade deficit JPY582.40 bln (expected deficit of JPY784.10 bln; last deficit of JPY955.60 bln). December Imports 41.1% yr/yr (expected 42.8%; last 43.8%) and Exports 17.5% yr/yr (expected 16.0%; last 20.5%)
  • South Korea's December PPI 0.0% m/m (last 0.7%); 9.0% yr/yr (last 9.8%)
  • Australia's December Employment Change 64,800 (expected 43,300; last 366,100) and full Employment Change 41,500 (last 128,300). December Unemployment Rate 4.2% (expected 4.5%; last 4.6%) and Participation Rate 66.1% (expected 66.2%; last 66.1%). MI Inflation Expectations 4.4% (last 4.8%)
  • New Zealand's December FPI 0.6% m/m (last -0.6%)
  • Hong Kong's December CPI 2.4% yr/yr (expected 2.1%; last 1.8%)

---Equity Markets---

• Japan's Nikkei: +1.1%
• Hong Kong's Hang Seng: +3.4%
• China's Shanghai Composite: -0.1%
• India's Sensex: -1.1%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade in mixed fashion. British Prime Minister Johnson announced the lifting of the U.K.'s mask mandate and the removal of compulsory vaccine passports. A parliamentary committee in the U.K. is looking to cut the minimum time requirement between no-confidence votes to six months from one year. European Central Bank President Lagarde repeated that prices are expected to stabilize this year and "gradually decline" during the course of the year. ECB policymaker De Cos said that a rate hike in 2022 is unlikely. Norges Bank repeated its guidance for a rate hike in March.

• In economic data:
  • Eurozone's December CPI 0.4% m/m, as expected (last 0.4%); 5.0% yr/yr, as expected (last 4.9%). December Core CPI 0.4% m/m, as expected (last 0.0%); 2.6% yr/yr, as expected (last 2.6%)
  • Germany's December PPI 5.0% m/m (expected 0.8%; last 0.8%); 24.2% yr/yr (expected 19.4%; last 19.2%)
  • France's January Business Survey 112 (expected 111; last 110)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.2%
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.2%

• Reports Q4 (Dec) earnings of $1.91 per share, $0.09 better than the S&P Capital IQ Consensus of $1.82; revenues rose 9.4% year/year to $1.68 bln vs the $1.65 bln S&P Capital IQ Consensus.
• "Northern Trust's performance in the fourth quarter of 2021 generated a 9% increase in revenue versus last year and a return on average common equity of 14.5%. Revenue growth reflected strong organic growth across each of our businesses, which also contributed to full year earnings growth and a return on average common equity of 13.9%. During the year we executed on our key growth initiatives and enhanced our foundational strength through advancements in our data and digital efforts, while also improving our productivity. The year also benefited from an improved outlook in projected economic conditions driving a release of reserves for credit losses. I want to commend the efforts of our employees around the world, whose commitment, expertise and professionalism in serving our clients and communities continue to be extraordinary. As we enter 2022, we remain focused on our long-term priorities."

Co issues upside guidance for FY21 (Dec), sees FY21 (Dec) revs of $1.9-2.1 bln vs. $1.88 bln S&P Capital IQ Consensus.

• Redwire (RDW) announced that it has successfully delivered its L-Band Link-16 Helical Antenna system for the Space Development Agency's (SDA) first generation of the National Defense Space Architecture's Transport Layer, Tranche 0. The system was shipped ahead of schedule and provides unprecedented performance given its stowed volume. The delivery follows acceptance testing comprised of environmental validation and RF performance.
• Ouster (OUST) announced today that it has signed a strategic customer agreement with autonomous sidewalk delivery company, Serve Robotics. The agreement includes a binding commitment for OS digital lidar sensors through 2023, along with a non-binding forecast for additional sensors through 2025 as Serve Robotics scales its delivery fleets across U.S. cities and beyond.

• The Company's management intends to launch the repurchases in the next trading window which is expected to take place in February 2022, and the proposed purchases will be made from time to time in an opportunistic manner and depending on market conditions. The Company plans to fund repurchases from its existing cash balance.
• Under the Program, the Company may repurchase its ADSs from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means. The Company may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

The S&P 500 futures trade 31 points, or 0.7%, above fair value.

Just in, the latest weekly initial jobless claims count totaled 286,000 (Briefing.com consensus 211,000). This was above the prior week's revised count of 231,000 (from 230,000). As for continuing claims, they increased to 1.653 mln from a revised count of 1.551 mln (from 1.559 mln).

Separately, the Philadelphia Fed Index for January increased to 23.2 (Briefing.com consensus 20.0) from 15.4 in December.

• Reports Q4 (Dec) earnings of $0.45 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.42; revenues fell 6.0% year/year to $171 mln vs the $167.85 mln S&P Capital IQ Consensus.
• "Our net interest margin was 3.42% for the three-month period ended December 31, 2021 compared to 3.60% for the three-month period ended September 30, 2021. The yield on loans was 5.48% and 5.64% for the three months ended December 31, 2021 and September 30, 2021, respectively, as average loans decreased from $10.04 billion to $9.91 billion. Additionally, the rate on interest bearing deposits decreased to 0.20% as of December 31, 2021 from 0.23% as of September 30, 2021, with average balances of $10.00 billion and $9.86 billion, respectively."

• VIZIO (VZIO) announced that SLING TV (DISH) is now available on VIZIO SmartCast TVs.
• VTEX (VTEX) announced strong momentum with the success of its VTEX Live Shopping app, in use by more than 100 brands - including Victoria's Secret, Caterpillar, Oster, and Xiaomi - across 10 countries. The company has also expanded global deals with Whirlpool in six European countries and Unilever in Spain, along with signing new enterprise customers in the U.S., such as Briggs & Stratton, the world's largest producer of engines for outdoor power equipment. In an ongoing commitment to support continued product innovation and North American customer demand, VTEX also appointed Fernanda Weiden as its new Chief Technology Officer (CTO).

• InvestCloud, a global leader in digital transformation, today announced it is partnering with Ameriprise Financial (AMP) to offer personalized financial advice to users of its corporate financial wellness and life-planning solution, Pink.
• T-Mobile (TMUS) Arena, home to the NHL's Vegas Golden Knights and the premier destination for top sports and entertainment events on the Las Vegas Strip, has partnered with Shift4 (FOUR) to deliver the latest commerce technologies to the venue. Shift4 will power payments at T-Mobile Arena for all food & beverage purchases, using the company's VenueNext point-of-sale solution to streamline the entire fan event experience.
• Walgreens Boots Alliance (WBA) and VillageMD announced plans to open eight new Village Medical at Walgreens coordinated primary care and pharmacy practices in the Tucson area in 2022, with the first opening on Feb. 8 at 7885 E. Speedway Blvd. These openings represent expansion into the second major market in Arizona, following Phoenix, and add to the growing number of locations in the state.
  

• RumbleOn (RMBL) has established a mutually beneficial business relationship with NADA/J.D. Power enabling customers to receive instant cash offers on powersports online at NADAGuides.com.
• The East-West Shrine Bowl will introduce on-field player tracking data driven by Zebra Technologies Corporation (ZBRA). Zebra will provide its RFID tracking technology to deliver important player performance insights for the practices leading up to the 2022 East-West Shrine Bowl and the game itself.
• Bionano Genomics (BNGO) announces the publication of a study that described the use of OGM to identify rare human genomic structural variants as predisposition factors associated with severe COVID-19, highlighting the potential role of SVs in the pathogenesis of COVID-19 severity.
• Mastercard (MA) announces the launch of Mastercard TrackTM Instant Pay, a next-generation virtual card solution that uses machine learning and straight-through processing to enable instant payment of supplier invoices. Integrated with Mastercard Track Business Payment Service, Mastercard's open-loop B2B network, the new, first-of-its-kind virtual card solution delivers greater choice, efficiency and automation for buyers and suppliers to help streamline and speed business payments.
• Allego Holding, a leading pan-European electric vehicle charging network that recently announced a business combination with Spartan Acquisition Corp. III (SPAQ), has secured 14 new ultra fast charging locations along major highways in Flanders, Belgium in a project co-financed by the European Union and the Flemish Agency for Roads and Traffic. These locations build upon two highway locations previously granted to Allego by the AWV in 2020.

• During the 2022 Investor Day the Company will outline the Company's enhanced strategic growth plan and introduce financial goals aimed at creating long-term shareholder value. Three year financial and operating goals include:
  • Growing total revenues to approximately $2.0 billion to $2.2 billion, representing an estimated 9% to 12% CAGR;
  • Increasing eCommerce revenues from approximately 6% of total retail revenues in Q3 of fiscal year 2022 to approximately 20% of total retail revenues;
  • Continuing Conn's geographic expansion;
  • Maintaining a stable credit business, producing at least 1,000 basis points of credit spread; and
  • Producing a high single digit EBIT margin.
    

• The 11-year task order, which has an initial term through September 30, 2022, with 10 one-year options, was awarded to Lumen under the General Services Administration's 15-year, $50 billion Enterprise Infrastructure Solutions (EIS) program.

• Optum and MarinHealth will work together to increase operational efficiency for MarinHealth using innovative technology solutions to help streamline nonclinical administrative processes and simplify experiences for patients and providers. Optum also will provide comprehensive revenue cycle management services and supporting technologies to MarinHealth.
• This relationship equips MarinHealth with tools and resources to improve business processes, enhance infrastructure and navigate change in achieving its goal of remaining an independent health system, providing the best quality of care to the community it serves for years to come.
• As part of this comprehensive relationship, certain MarinHealth employees will become employees of Optum. These employees will continue to directly support MarinHealth's work and mission. With access to new skill development opportunities, technologies and processes at Optum, these team members will continue to build on their successful work at MarinHealth. Both MarinHealth and Optum are committed to ensuring a smooth transition and exceptional experience for patients, employees and providers.
• Optum is part of UnitedHealth Group (UNH).

• H&R Block (HRB) announced the launch of the Spruce mobile banking platform to help everyone be good with money. The Spruce solution includes a spending account with a debit card, along with a connected savings account that allows for budgeting for specific goals. Spruce demonstrates how H&R Block continues to expand into key adjacencies, such as fintech, and is one more way in which the company is helping customers achieve year-round financial confidence.
• Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings (AAWW) announced the extension of a long-term aircraft transportation services agreement to operate a Boeing 747-400 Freighter for SF Group, China's leading express service provider, between China and the United States.
• Aruba, a Hewlett Packard Enterprise company (HPE), announced that its Aruba Central cloud-native network operations and analytics platform has achieved a formal "Authorized" designation with the Federal Risk and Authorization Management Program (FedRAMP). With today's announcement, Aruba Central becomes a cloud-based networking solution for unified WLAN, switching, and VPN edge-to-cloud infrastructure that is compliant with the Office of Management and Budget's FedRAMP Policy and can be leveraged for use across the federal government.
• Enphase Energy (ENPH) announced today that Enphase installers in Washington state have seen a growing number of deployments of the Enphase Energy Systems, powered by IQ Microinverters and IQ Batteries, following winter storms and record-breaking heat waves that left tens of thousands of residents without power.

Pressured Again

• U.S. Treasuries are on track for a lower start with shorter tenors expected to pace the early selling. Treasury futures began retreating shortly after yesterday's cash close, finding support in evening trade. The market bounced before the start of action in Asia, but that rebound was reversed in short order. Treasury futures bounced again at the start of the European session, and they remain near those rebound highs at this time. Overseas, the People's Bank of China lowered its one-year loan prime rate by ten basis points to 3.7% and lowered the five-year rate by five basis points to 4.60% while China Securities Journal speculated that the reserve requirement ratio will also be lowered this quarter. In Europe, Norges Bank repeated its guidance for a rate hike in March. The U.S. Dollar Index is up 0.1% at 95.61.
• Yield Check:
  • 2-yr: +2 bps to 1.03%
  • 3-yr: +2 bps to 1.33%
  • 5-yr: UNCH at 1.61%
  • 10-yr: UNCH at 1.83%
  • 30-yr: +1 bp to 2.15%

• News:
  • Japan's Prime Minister Kishida confirmed that a quasi-emergency will be declared in Tokyo between January 21 and February 13.
  • A parliamentary committee in the U.K. is looking to cut the minimum time requirement between no-confidence votes to six months from one year.
  • Japan's December trade deficit reached JPY582.40 bln (expected deficit of JPY784.10 bln; last deficit of JPY955.60 bln) as imports grew 41.1% yr/yr (expected 42.8%; last 43.8%) and exports increased 17.5% yr/yr (expected 16.0%; last 20.5%).
  • South Korea's December PPI was unchanged m/m (last 0.7%) but up 9.0% yr/yr (last 9.8%).
  • Australia's December employment increased by 64,800 (expected 43,300; last 366,100) and full employment increased by 41,500 (last 128,300). December Unemployment Rate fell to 4.2% from 4.6% (expected 4.5%) while Participation Rate remained at 66.1% (expected 66.2%). MI Inflation Expectations fell to 4.4% from 4.8%. 
  • New Zealand's December FPI was up 0.6% m/m (last -0.6%).
  • Hong Kong's December CPI was up 2.4% yr/yr (expected 2.1%; last 1.8%).
  • Eurozone's December CPI was up 0.4% m/m, as expected (last 0.4%) and up 5.0% yr/yr, as expected (last 4.9%). December Core CPI was up 0.4% m/m, as expected (last 0.0%) and up 2.6% yr/yr, as expected (last 2.6%).
  • Germany's December PPI was up 5.0% m/m (expected 0.8%; last 0.8%) and up 24.2% yr/yr (expected 19.4%; last 19.2%).
  • France's January Business Survey rose to 112 from 110 (expected 111).
• Commodities:
  • WTI Crude: -0.7% to $86.36/bbl
  • Gold: -0.1% to $1840.60/ozt
  • Copper: +0.9% to $4.511/lb
• Currencies:
  • EUR/USD: UNCH at 1.1338
  • GBP/USD: UNCH at 1.3614
  • USD/CNH: UNCH at 6.3482
  • USD/JPY: -0.1% to 114.22
• Data out Today:
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 211,000; prior 230,000), Continuing Claims (prior 1.559 mln), and January Philadelphia Fed Survey (Briefing.com consensus 20.0; prior 15.4)
  • 10:00 ET: December Existing Home Sales (Briefing.com consensus 6.42 mln; prior 6.46 mln)
  • 10:30 ET: Weekly natural gas inventories (prior -179 bcf)
  • 11:00 ET: Weekly crude oil inventories (prior -4.55 mln)

• Integrated Media Technology (IMTE) announces the signing of a subscription agreement for 60% equity interests in World Integrated Supply Ecosystem Sdn Bhd., a Malaysia company engaged in the business of the provision of halal certification to qualified businesses/operations, the establishment halal products supply chain, and sale of halal products.
• Viasat (VSAT) announced the availability of its most advanced class of large-aperture antennas, which will be capable of providing the United States and other spacefaring nations with enhanced space-to-ground communications for upcoming Earth observation missions, manned and unmanned missions to the Moon, Mars and other deep space and Department of Defense (DoD) initiatives.
• Axcelis Technologies (ACLS) announced multiple shipments of Purion M medium current implanters to mature process technology device makers. Additionally a new Purion M evaluation tool shipped to a memory device maker. The systems shipped on various dates in the fourth quarter of 2021 and the first quarter of 2022.
• Braskem (BAK) and Repauno Port & Rail Terminal announces that the parties successfully completed the first propylene import in more than a decade to the United States East Coast.

• Co announces that the next generation long-acting growth hormone injection, NGENLA Inj. 24 mg Pens and 60 mg Pens, has been approved by the Ministry of Health, Labour and Welfare (MHLW) in Japan. NGENLA is a once-weekly long-acting recombinant human growth hormone, for the indication of short statue due to growth hormone deficiency without closed epiphyses.
• NGENLA provides patients with pediatric growth hormone deficieIn 2014, Pfizer and OPKO Health entered into a worldwide agreement for the development and commercialization of somatrogon for the treatment of GHD.
• Under the agreement, OPKO is responsible for conducting the clinical program and Pfizer is responsible for registering and commercializing somatrogon for GHD.ncy (GHD) with a new option that reduces treatment frequency from daily injections to once-weekly injections.

• In consideration for the acquisition of Physimax's assets, the Company agreed to issue up to 256,660 shares of its common stock, subject to a lock up period, plus a cash payment of $500,000, as well as agreed to assume certain liabilities in an approximate amount of $1,020,000.

• The Company will present topline data for cohort A of the DEDUCTIVE study, which is assessing the safety and efficacy of tivozanib in combination with IMFINZI (durvalumab), AstraZeneca's human monoclonal antibody directed against programmed death-ligand 1 (PD-L1), in patients with unresectable locally advanced or metastatic, previously untreated HCC. A total of 20 patients with advanced or metastatic HCC were enrolled in cohort A of the Phase 2 portion of the study safety and efficacy of tivozanib plus durvalumab.
• Patients received 0.89 mg of tivozanib orally once daily for 21 days followed by seven days off therapy in combination with 1500 mg of durvalumab intravenously (IV) on day one given every four weeks, on a 28 day cycle. The combination was well tolerated, with three patients showing Grade 3 TRAEs, and no Grade 4 TRAEs or treatment-related deaths. The combination demonstrated a 27.8% partial response (PR) rate and disease control rate (PR + stable disease) 67.8%, with a median PFS of 7.3 months and a 1-year OS of 76%, which positions the tivozanib combination well relative to other VEGF ICI combinations in the setting.

• Reports Q4 (Dec) earnings of $2.66 per share, $0.04 better than the S&P Capital IQ Consensus of $2.62; revenues rose 11.5% year/year to $5.73 bln vs the $5.61 bln S&P Capital IQ Consensus.

The S&P 500 futures trade 24 points, or 0.5%, above fair value in a mechanical bounce from recent losses. The Nasdaq 100 futures trade 0.6% above fair value after the Nasdaq 100 entered "correction territory" yesterday.

The macro landscape hasn't meaningfully changed since yesterday, with investors still contemplating the implications of tighter monetary policy, rising interest rates, inflation pressures, and a potential Russian incursion of Ukraine. 

Regarding the Omicron variant, United Airlines (UAL 43.80, -0.60, -1.4%) said the virus is still impacting near-term demand -- evident by downside Q1 revenue guidance from American Airlines (AAL 17.58, +0.27, +1.6%) -- but it remains optimistic about the spring, summer, and beyond.

Both United and American beat EPS estimates, as did Dow component Travelers (TRV 165.99, +5.92, +3.6%).

On the data front, investors will receive the weekly Initial Claims (Briefing.com consensus 211,000) and Continuing Claims report and the Philadelphia Fed Index for January (Briefing.com consensus 20.0) at 8:30 a.m. ET, followed by Existing Home Sales for December (Briefing.com consensus 6.42 mln) at 10:00 a.m. ET.

The Treasury market is seeing selling pressure in shorter-dated maturities. The 2-yr yield is up three basis points to 1.04% while the 10-yr yield is unchanged at 1.83%. The U.S. Dollar Index is up 0.1% to 95.62. WTI crude futures are down 0.4% to $85.46/bbl. 

In U.S. Corporate news:

• United Airlines (UAL 43.80, -0.60): -1.4% despite beating top and bottom-line estimates. The company noted that the Omicron variant is still impacting near-term demand but is optimistic about the spring, summer, and beyond. 
• American Airlines (AAL 17.58, +0.27): +1.6% after beating EPS estimates, although it did guide Q1 revenue below consensus. 
• Travelers (TRV 165.99, +5.92): +3.6% after beating EPS estimates on in-line revenue. 
• Kinder Morgan (KMI 17.58, +0.15): +0.9% after beating top and bottom-line estimates and announcing intentions to raise its dividend by 3% to $1.11/share in 2022. 
• Advanced Micro Devices (AMD 125.63, -2.64): -2.0% after the stock was downgraded to Neutral from Overweight at Piper Sandler.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +1.1% Hong Kong's Hang Seng: +3.4% China's Shanghai Composite: -0.1% India's Sensex: -1.1% South Korea's Kospi: +0.7% Australia's ASX All Ordinaries: +0.2%.
  • In economic data:
    • Japan's December trade deficit JPY582.40 bln (expected deficit of JPY784.10 bln; last deficit of JPY955.60 bln). December Imports 41.1% yr/yr (expected 42.8%; last 43.8%) and Exports 17.5% yr/yr (expected 16.0%; last 20.5%)
    • South Korea's December PPI 0.0% m/m (last 0.7%); 9.0% yr/yr (last 9.8%)
    • Australia's December Employment Change 64,800 (expected 43,300; last 366,100) and full Employment Change 41,500 (last 128,300). December Unemployment Rate 4.2% (expected 4.5%; last 4.6%) and Participation Rate 66.1% (expected 66.2%; last 66.1%). MI Inflation Expectations 4.4% (last 4.8%)
    • New Zealand's December FPI 0.6% m/m (last -0.6%)
    • Hong Kong's December CPI 2.4% yr/yr (expected 2.1%; last 1.8%)
  • In news:
    • The People's Bank of China lowered its one-year loan prime rate by ten basis points to 3.7% and lowered the five-year rate by five basis points to 4.60%, in line with speculation from this week.
    • Japan's Prime Minister Kishida confirmed that a quasi-emergency will be declared in Tokyo between January 21 and February 13.
    • Australia's unemployment rate fell to its lowest level since August 2008 in the December reading.

• Major European indices trade in mixed fashion. STOXX Europe 600: +0.1% Germany's DAX: +0.1% U.K.'s FTSE 100: -0.1% France's CAC 40: -0.2% Italy's FTSE MIB: +0.5% Spain's IBEX 35: +0.3%.
  • In economic data:
    • Eurozone's December CPI 0.4% m/m, as expected (last 0.4%); 5.0% yr/yr, as expected (last 4.9%). December Core CPI 0.4% m/m, as expected (last 0.0%); 2.6% yr/yr, as expected (last 2.6%)
    • Germany's December PPI 5.0% m/m (expected 0.8%; last 0.8%); 24.2% yr/yr (expected 19.4%; last 19.2%)
    • France's January Business Survey 112 (expected 111; last 110)
  • In news:
    • British Prime Minister Johnson announced the lifting of the U.K.'s mask mandate and the removal of compulsory vaccine passports.
    • A parliamentary committee in the U.K. is looking to cut the minimum time requirement between no-confidence votes to six months from one year.
    • European Central Bank President Lagarde repeated that prices are expected to stabilize this year and "gradually decline" during the course of the year.
    • ECB policymaker De Cos said that a rate hike in 2022 is unlikely.
    • Norges Bank repeated its guidance for a rate hike in March.

• The company also announced its decision to separate the Chairman and Chief Executive Officer roles. Dale Morrison, long-standing IFF Director, will assume the role of non-executive Chairman of the Board of Directors, effective on February 14, 2022. Ed will remain on the Board as an Independent Director and the company will no longer have the Lead Independent Director role.
• Mr. Clyburn joins IFF from Merck & Co. (MRK), where he currently serves as Executive Vice President and President of Human Health and today has full P&L responsibility for nearly 90% of Merck's $48 billion business.

Gapping up
In reaction to earnings/guidance:

• SIG +7.4%, AA +2.2%, AAL +1.4%, KMI +0.9%, BKR +0.8%, FITB +0.7%, SNV +0.7%, WNS +0.5%, KEY +0.5%

Other news:

• MCRB +9% (announced publication of data from Phase 3 ECOSPOR III study in the NEJM)
• PAYA +5.9% (announced acquisition of acquisition of VelocIT Business Solutions)
• ASTS +3.1% (discloses that launch provider now has confirmed a launch window in Summer 2022)
• CDXC +2.5% (announced a supply agreement with Designs for Health a U.S.-based manufacturer of premium dietary supplements for healthcare practitioners )
• ARGX +2.3% (receives approval of VYVGART in Japan)
• ENTG +2.1% (increases quarterly cash dividend to $0.10/share from $0.08/share)
• HUT +2% (acquires the cloud and data center business from TeraGo)
• AADI +1.8% (entered into certain negotiated purchase order terms and conditions for clinical and commercial product with Fresenius Kabi)
• NVAX +1.7% (receives provisional registration for COVID-19 Vaccine from Australia's TGA)
• KNTE +1.2% (to present preclinical data on KIN-3248 at ASCO GI Cancers Symposium)

Analyst comments:

• EBS +5.7% (upgraded to Buy from Hold at The Benchmark Company)
• NVCR +3.7% (upgraded to Buy from Hold at Truist)
• ETSY +3.3% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
• AMRC +3.1% (upgraded to Outperform from Mkt Perform at Raymond James)

Gapping down
In reaction to earnings/guidance:

• EVA -6.5% (also prices offering of 4.3 mln shares of common stock at $70.00 per share) WTFC -6.1%, RF -4.4%, DFS -3%, FUL -2.2%, UMPQ -2%, STL -1.3%, UAL -1.2%, FNB -0.7%, SASR -0.7%

Other news:

• AMH -4.4% (prices offering of 20 mln shares of common stock at for gross proceeds of $783.0 mln)
• EHC -2.8% (plans to spin off home health and hospice business)
• HT -2% (provided operating results for December)
• NNN -1.2% (retirement of Julian E. Whitehurst as CEO effective April 28)

Analyst comments:

• IP -3% (downgraded to Neutral from Buy at BofA Securities)
• F -2.3% (downgraded to Hold from Buy at Jefferies)
• BURL -2% (downgraded to Sell from Hold at Loop Capital)
• AMD -1.9% (downgraded to Neutral from Overweight at Piper Sandler)
• BLL -1.3% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
• CVNA -1.2% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)

Gapping down
In reaction to earnings/guidance:

• EVA -6.5% (also prices offering of 4.3 mln shares of common stock at $70.00 per share) WTFC -6.1%, RF -4.4%, DFS -3%, FUL -2.2%, UMPQ -2%, STL -1.3%, UAL -1.2%, FNB -0.7%, SASR -0.7%

Other news:

• AMH -4.4% (prices offering of 20 mln shares of common stock at for gross proceeds of $783.0 mln)
• EHC -2.8% (plans to spin off home health and hospice business)
• HT -2% (provided operating results for December)
• NNN -1.2% (retirement of Julian E. Whitehurst as CEO effective April 28)

Analyst comments:

• IP -3% (downgraded to Neutral from Buy at BofA Securities)
• F -2.3% (downgraded to Hold from Buy at Jefferies)
• BURL -2% (downgraded to Sell from Hold at Loop Capital)
• AMD -1.9% (downgraded to Neutral from Overweight at Piper Sandler)
• BLL -1.3% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
• CVNA -1.2% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)

Gapping up
In reaction to earnings/guidance:

• SIG +7.4%, AA +2.2%, AAL +1.4%, KMI +0.9%, BKR +0.8%, FITB +0.7%, SNV +0.7%, WNS +0.5%, KEY +0.5%

Other news:

• MCRB +9% (announced publication of data from Phase 3 ECOSPOR III study in the NEJM)
• PAYA +5.9% (announced acquisition of acquisition of VelocIT Business Solutions)
• ASTS +3.1% (discloses that launch provider now has confirmed a launch window in Summer 2022)
• CDXC +2.5% (announced a supply agreement with Designs for Health a U.S.-based manufacturer of premium dietary supplements for healthcare practitioners )
• ARGX +2.3% (receives approval of VYVGART in Japan)
• ENTG +2.1% (increases quarterly cash dividend to $0.10/share from $0.08/share)
• HUT +2% (acquires the cloud and data center business from TeraGo)
• AADI +1.8% (entered into certain negotiated purchase order terms and conditions for clinical and commercial product with Fresenius Kabi)
• NVAX +1.7% (receives provisional registration for COVID-19 Vaccine from Australia's TGA)
• KNTE +1.2% (to present preclinical data on KIN-3248 at ASCO GI Cancers Symposium)

Analyst comments:

• EBS +5.7% (upgraded to Buy from Hold at The Benchmark Company)
• NVCR +3.7% (upgraded to Buy from Hold at Truist)
• ETSY +3.3% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
• AMRC +3.1% (upgraded to Outperform from Mkt Perform at Raymond James)

• Reports Q4 (Dec) earnings of $1.20 per share, $0.12 better than the S&P Capital IQ Consensus of $1.08; revenues rose 7.9% year/year to $316.9 mln vs the $306.87 mln S&P Capital IQ Consensus.
  • Net interest margin of 2.73%
• Total nonperforming loans were $109.8 million, or 0.49 percent of total loans, compared to $101.8 million, or 0.47 percent of total loans, at September 30, 2021 and $168.0 million, or 0.78 percent of total loans, at December 31, 2020. As of December 31, 2021, $60.3 million of nonperforming loans were contractually current.
• Past due loans were $21.9 million, compared to $17.1 million at September 30, 2021 and $32.9 million at December 31, 2020.
  

• Cummins (CMI) and Isuzu Motors Limited announce an agreement to create a prototype medium-duty, battery electric truck to demonstrate in North America. This truck represents the first zero-emissions solution facilitated by the Isuzu Cummins Powertrain Partnership formed in May 2019. Through this arrangement, Cummins will integrate the Cummins PowerDrive6000 into Isuzu's F-Series truck and will pilot the truck with prominent North American fleets beginning in 2022. Following a successful demonstration and pilot phase, Isuzu will explore opportunities to commercialize medium-duty, battery-electric trucks with Cummins-powered systems across North America.
• Walmart (WMT) announces plans to build a fulfillment center in Olive Branch to support the retailer's rapidly increasing supply chain network and eCommerce business - the facility will be a 1,000,000+ square-foot fulfillment center, which is located at 10480 Marina Drive and is set to open in Spring 2022. The new Olive Branch-based facility will create approximately 250 full-time, permanent jobs across the region.
• DraftKings (DKNG) announces a multi-year financial commitment to assist the state councils across the country providing critical funding which will support the work of local nonprofit organizations. As part of the new initiative, entitled The State Council Funding Program, DraftKings has offered each state council $15,000 per year for three years, a total overall commitment of $1,575,000 over the span of the three-year program.
• Xilio Therapeutics (XLO) announces that the first patient has been dosed in the company's Phase 1/2 clinical trial evaluating XTX202 for the treatment of solid tumors. XTX202 is a modified form of IL-2 that is designed to localize activity in the tumor microenvironment, with the goal of overcoming the known tolerability challenges of existing IL-2 therapies while achieving enhanced anti-tumor activity.

Major European indices trade in mixed fashion. British Prime Minister Johnson announced the lifting of the U.K.'s mask mandate and the removal of compulsory vaccine passports. A parliamentary committee in the U.K. is looking to cut the minimum time requirement between no-confidence votes to six months from one year. European Central Bank President Lagarde repeated that prices are expected to stabilize this year and "gradually decline" during the course of the year. ECB policymaker De Cos said that a rate hike in 2022 is unlikely. Norges Bank repeated its guidance for a rate hike in March.

• In economic data:
  • Eurozone's December CPI 0.4% m/m, as expected (last 0.4%); 5.0% yr/yr, as expected (last 4.9%). December Core CPI 0.4% m/m, as expected (last 0.0%); 2.6% yr/yr, as expected (last 2.6%)
  • Germany's December PPI 5.0% m/m (expected 0.8%; last 0.8%); 24.2% yr/yr (expected 19.4%; last 19.2%)
  • France's January Business Survey 112 (expected 111; last 110)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.2%
• Italy's FTSE MIB: +0.5%
• Spain's IBEX 35: +0.3%

---FX---

• EUR/USD: -0.1% to 1.1336
• GBP/USD: -0.1% to 1.3603
• USD/CHF: UNCH at 0.9154

• CGI (GIB) was awarded a new task order to expand the Marine Corps Platform Integration Center (MCPIC) program across eight U.S. Marine Corps' (USMC) bases. Already operating at three USMC outposts, MCPIC supports inventory tracking through digital tagging of mission-critical equipment, allowing system users to access real-time data by leveraging automated identification technology and Internet of Things (IoT) sensors. Building on CGI's long-standing partnership and commitment with USMC that spans over 30 years, this new task order includes a four-year period of performance with initial funding of $8.5 million and a total value of $34.4 million inclusive of all options.
• Dragonfly Energy entered into an exclusive agreement with Keystone RV Company, North America's leading RV manufacturer and a subsidiary of Thor Industries (THO). Dragonfly Energy Lithium-ion batteries now come as standard or optional OEM equipment on all Keystone RV travel trailers and fifth wheels. Keystone RV dealers will also be exclusive aftermarket dealers for Dragonfly Energy batteries through Keystone's SolarFlex packages and as stand-alone products.

• At the end of 2021, Marriott's worldwide system consisted of nearly 8,000 properties and roughly 1.48 million rooms in 139 countries and territories. At year-end, the company had the largest global development pipeline, with roughly 485,000 rooms. The company signed 599 agreements during 2021 representing approximately 92,000 rooms of which slightly more than half are located outside of U.S. and Canada. Rooms falling out of the pipeline remain at historically low levels, despite challenges brought on by the pandemic. During 2021, Marriott added more than 86,000 rooms on a gross basis, growing the system 3.9 percent, including deletions of 2.1 percent. The deletion rate was 1.2 percent excluding the exit of 88 Service Properties Trust select service hotels.
• All-Inclusive is All-Growth: Consumer interest in the very high growth all-inclusive resort segment continues to increase. Marriott intends to capitalize on its strong recent momentum in this area, leveraging its proven brands to drive additional growth in this important segment. Currently, Marriott International's all-inclusive portfolio spans 28 properties, representing over 8,000 rooms in locations across the Caribbean, Mexico and Central America. In 2021, Marriott International signed 22 agreements for all-inclusive resorts, marking a company record, including 20 all-inclusive resorts under its Autograph Collection Hotels brand and the first Marriott branded all-inclusive resort agreement in North Africa.
• Extended Stay's Popularity Extends Further: The extended stay segment has always been attractive to leisure travelers and has become even more popular with the increase in remote work and the blending of business and leisure travel. Marriott International is the leader in the extended stay segment, setting the bar with the introduction of its Residence Inn brand almost 40 years ago. In 2021, extended stay accounted for 37 percent of the company's rooms signings in U.S. and Canada.

• The transaction implies a combined company enterprise value of ~$446 mln. All Eleusis equity held by existing Eleusis shareholders and other investors, including Eleusis's management, will roll in the transaction into equity of the combined company and will be subject to a one-year lockup, subject to certain exceptions and early release in certain circumstances. Existing Eleusis shareholders and other investors will additionally receive earnout consideration at the closing of the transaction representing ~14% of an adjusted measure of the enterprise value of the combined company, which will vest only if and when the combined company's stock price exceeds certain targets during the three-year period after the closing of the transaction. Upon completion of the transaction, the current owners of Eleusis will retain ~49% ownership of the combined company, assuming no redemptions by SPKB's public shareholders and excluding the earnout consideration. Upon the close of the transaction, the combined company will be operated through Eleusis Inc., a new holding company, and will apply to have its common stock listed on Nasdaq under the symbol "ELEU."
• The combined company expects to receive up to $287.5 mln of gross proceeds from SPKB's trust account, assuming no public shareholders of SPKB exercise their redemption rights and before transaction expenses. The boards of directors of both SPKB and Eleusis have unanimously approved the transaction.
• The transaction is expected to close in the second or third quarter of 2022, subject to customary closing conditions, including the receipt of regulatory approvals and approval by SPKB's shareholders.

• NextEra Energy Resources announced JPMorgan Chase (JPM) has started to use its Optos software platform to help the global financial services firm optimize its energy use and reduce its carbon footprint.
• Wallbox (WBX) announced that it would begin selling its global best-selling charger, Pulsar Plus, in Canada.
• CareDx (CDNA) announced its partnership with MOTTEP (Minority Organ Tissue Transplant and Education Program) to help advance its mission of increasing the number of minority-donated organs and greater adoption of disease prevention behaviors which reduce the incidence of end-stage disease and the need for organ transplantation in high-risk, underserved communities.

• Reports Q4 (Dec) loss of $1.42 per share, $0.06 better than the S&P Capital IQ Consensus of ($1.48); revenues rose 134.1% year/year to $9.43 bln vs the $9.38 bln S&P Capital IQ Consensus.
• Co issues downside guidance for Q1, sees Q1 revs of down 20-22% vs 2019 to ~$8.26-8.47 bln vs. $9.06 bln S&P Capital IQ Consensus.
  • American will continue to match its forward capacity with observed bookings trends. Based on current trends, the company expects its first-quarter capacity to be down approximately 8% to 10% compared to the first quarter of 2019. American expects its first-quarter total revenue to be down approximately 20% to 22% versus the first quarter of 2019.
  • Revs for 1Q19 were 10.584 bln

• The acquisition consists of five data centers across Canada with a comprehensive information technology offering that includes a complete selection of scalable cloud services. The Data Center Business spans from Toronto to Vancouver with over 36,000 square feet of geo-diverse data center space. Existing saleable power capacity totals 4.1 MW, with a further 1.5 MW of expansion capacity available within existing shelf space in the Kelowna location. Hut 8 is acquiring customers, employees and a diverse product offering as part of the acquisition.
• Under the terms of the agreement, consideration payable to TeraGo Inc. will consist of C$30 million, to be funded from existing cash on the Company's balance sheet. Hut 8 will retain substantially all current Data Center Business employees. The transaction has been approved by the board of directors of Hut 8 and TeraGo and is expected to close in the first quarter of 2022.

• Healthcare Capital Corp. (HCCC) merger partner Alpha Tau Medical announced that it has signed a sponsored research agreement with investigators at The University of Texas MD Anderson Cancer Center to evaluate potential immune stimulation by combining Alpha DaRT with DNA-repair inhibitors and immune checkpoint inhibitors for the treatment of breast tumors.
• Zynex (ZYXI) announced it is adding post-operative and OA (Osteoarthritis) knee braces to its line of pain and rehabilitation products.

• Reports Q4 (Dec) earnings of $1.05 per share, $0.01 worse than the S&P Capital IQ Consensus of $1.06.
• The provision for credit losses for the current quarter was $1.6 million as compared to a credit of $4.5 million for the fourth quarter of 2020 and credit of $8.2 million for the third quarter of 2021. While the continued improvement in forecasted macroeconomic indicators, most notably the forecasted unemployment rate, resulted in credits for the provision for credit losses during most of 2021, the current quarter's provision was primarily the result of the growth in the loan portfolio that occurred during the quarter.

• Reports Q4 (Dec) earnings of $0.25 per share, $0.04 worse than the S&P Capital IQ Consensus of $0.29; revenues rose 0.4% year/year to $5.52 bln vs the $5.5 bln S&P Capital IQ Consensus.
• Orders of $6.7 billion for the quarter, up 24% sequentially and up 28% year-over-year

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The People's Bank of China lowered its one-year loan prime rate by ten basis points to 3.7% and lowered the five-year rate by five basis points to 4.60%, in line with speculation from this week. Japan's Prime Minister Kishida confirmed that a quasi-emergency will be declared in Tokyo between January 21 and February 13. Australia's unemployment rate fell to its lowest level since August 2008 in the December reading.

• In economic data:
  • Japan's December trade deficit JPY582.40 bln (expected deficit of JPY784.10 bln; last deficit of JPY955.60 bln). December Imports 41.1% yr/yr (expected 42.8%; last 43.8%) and Exports 17.5% yr/yr (expected 16.0%; last 20.5%)
  • South Korea's December PPI 0.0% m/m (last 0.7%); 9.0% yr/yr (last 9.8%)
  • Australia's December Employment Change 64,800 (expected 43,300; last 366,100) and full Employment Change 41,500 (last 128,300). December Unemployment Rate 4.2% (expected 4.5%; last 4.6%) and Participation Rate 66.1% (expected 66.2%; last 66.1%). MI Inflation Expectations 4.4% (last 4.8%)
  • New Zealand's December FPI 0.6% m/m (last -0.6%)
  • Hong Kong's December CPI 2.4% yr/yr (expected 2.1%; last 1.8%)

---Equity Markets---

• Japan's Nikkei: +1.1%
• Hong Kong's Hang Seng: +3.4%
• China's Shanghai Composite: -0.1%
• India's Sensex: -1.1%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: +0.2%

---FX---

• USD/JPY: UNCH at 114.28
• USD/CNH: UNCH at 6.3483
• USD/INR: +0.1% to 74.50

• Co announced the publication of results from the Phase 3 KEYNOTE-775/Study 309 trial in the January 19, 2022 edition of the New England Journal of Medicine. The pivotal study evaluated the combination of KEYTRUDA, Merck's anti-PD-1 therapy, plus LENVIMA, the orally available multiple receptor tyrosine kinase inhibitor discovered by Eisai, versus chemotherapy (treatment of physician's choice of doxorubicin or paclitaxel) for patients with advanced endometrial carcinoma following at least one prior platinum-based regimen in any setting.
• "While rates of endometrial carcinoma continue to rise globally, patients with advanced or recurrent disease have limited options available to them once the disease progresses following platinum-based chemotherapy," said Dr. Gregory Lubiniecki, Vice President, Oncology Clinical Research, Merck Research Laboratories. "KEYNOTE-775/Study 309 is an important Phase 3 study that supported recent approvals of KEYTRUDA plus LENVIMA for certain types of advanced endometrial carcinoma in the U.S. and other countries around the world, where it became the first immunotherapy and tyrosine kinase inhibitor combination approved for these patients."
• "The Phase 3 KEYNOTE-775/Study 309 trial demonstrates the ongoing commitment that Eisai and Merck share in addressing the unmet needs of people living with difficult-to-treat cancers, including advanced endometrial carcinoma," said Corina Dutcus, M.D., Senior Vice President, Clinical Research, Oncology Business Group at Eisai Inc. "The publication of this study in the New England Journal of Medicine reflects the importance of our joint research in exploring the potential of the KEYTRUDA plus LENVIMA combination."

• Co issues raised guidance for Q4 (Jan), sees Q4 (Jan) revs of $2.77 bln from $2.40-2.48 bln vs. $2.46 bln S&P Capital IQ Consensus; sees Q4 comps +22% versus prior guidance of 6-9%.
• Co preliminary total sales for the Holiday Season were $2.4 billion, up 30.4% to last year
• Preliminary same store sales grew 25.2% year over year and 35.1% on a 2-year basis. eCommerce sales were up $52.1 million year over year and brick and mortar sales were up $499.9 million. The Company's strong Holiday Season sales were broad-based with all banners and merchandise categories up double digits.
• Increased marketing and labor spend supported consumer shopping behavior, driving traffic earlier in the Holiday Season and ensuring staffing levels met consumers' needs.

• Reports Q4 (Dec) earnings of $1.41 per share, $0.54 better than the S&P Capital IQ Consensus of $0.87.
• The Company's net interest margin, calculated on a tax-equivalent basis, increased by 0.11% to 2.44% for the quarter ended December 31, 2021, from 2.33% for the immediately preceding quarter ended September 30, 2021.

• Stellantis (STLA) completed an investment round in Factorial Energy (Factorial) as part of Factorial's Series D round of funding, together with other investors. Funding will be used to accelerate commercial production and deployment of Factorial's solid-state battery technology that is robust and offers up to 50 percent greater driving range than current lithium-ion technology.
• SmallCapVoice.com announces the availability of new media items and updated analyst coverage for its client, KULR Technology Group (KULR).
• Merck (MRK) announced that Frank Clyburn, executive vice president and president, Human Health, will leave Merck on Feb. 1, 2022, to assume a leadership opportunity with another company. Leadership of Human Health following Frank's departure will be announced in the coming weeks.

• Lorenzo Pellicioli will retire as chairperson of the IGT Board of Directors and will remain a non-executive director. Marco Sala, currently CEO of IGT, will become executive chair of the board. Vincent Sadusky will become CEO and executive director of the board. These changes will be effective January 24, 2022.
• The board of directors also appointed Maria Pinelli and Ashley Hunter as non-executive directors of the board. Ms. Hunter was also appointed to the Company's Nominating and Corporate Governance Committee and Ms. Pinelli was appointed chair of the Company's Audit Committee, replacing Vincent Sadusky. These changes were effective January 14, 2022.
• In a separate release today, B&D Holding S.p.A., the controlling shareholder of De Agostini S.p.A., announced that Marco Sala will be proposed at the June 2022 meeting of the corporate bodies of De Agostini as the next CEO of De Agostini, succeeding Lorenzo Pellicioli, who is retiring from the position.

Reports Q4 (Dec) earnings of $0.48 per share, excluding non-recurring items, $0.11 better than the S&P Capital IQ Consensus of $0.37.

• Reports Q4 (Dec) earnings of $1.35 per share, $0.27 better than the S&P Capital IQ Consensus of $1.08.
• Q4 Net interest margin of 2.96% vs 3.01 in Q3
• Key metrics include a quarter-end non-performing loan ratio of 0.33%, non-performing asset ratio of 0.40% and a quarterly net charge-off ratio of 0.11%.
  

• Reports Q4 (Dec) earnings of $0.90 per share, in-line with the S&P Capital IQ Consensus of $0.90.
• Q4 Net interest margin of 2.55% vs 2.59% in Q3

• Reports Q4 (Dec) earnings of $0.64 per share, $0.08 better than the S&P Capital IQ Consensus of $0.56; revenues rose 5.5% year/year to $1.95 bln vs the $1.8 bln S&P Capital IQ Consensus.
• Key's provision for credit losses was $4 million, compared to $20 million in the fourth quarter of 2020 and a net benefit of $107 million in the third quarter of 2021.

• Black Sesame Technologies selected BlackBerry (BB) QNX technology to power its latest chipset developed for autonomous driving. The combination of the BlackBerry and Black Sesame technologies is slated to be ready for mass production by a leading Chinese automaker in 2022.
• Centogene N.V. (CNTG) and Insilico Medicine announced a research and development collaboration to accelerate the discovery of novel therapeutic targets for Niemann-Pick disease type C. The duration of the research collaboration will initially last 20 weeks.

• Gapping up:
  • MCRB +9%, SEMR +4.3%, NVAX +3%, ARGX +2.8%, ENTG +2.1%, AA +2%, AADI +1.8%, KNTE +1.2%, ASTS +1.2%, KMI +1%, PAYA +0.7%, OMER +0.6%, WNS +0.5%
• Gapping down:
  • WTFC -6.1%, AMH -4.4%, RF -4.2%, ZYME -4%, EHC -2.8%, DFS -2.4%, FUL -2.2%, EVA -2.1%, NNN -2%, HT -2%, UMPQ -2%, STL -1.3%, FITB -0.8%, FNB -0.7%, UAL -0.5%

• Reports Q3 (Dec) earnings of $0.88 per share, $0.05 better than the S&P Capital IQ Consensus of $0.83; revenues rose 16.3% year/year to $261.2 mln vs the $255.75 mln S&P Capital IQ Consensus.
• Co issues upside guidance for FY22, sees FY22 revs of $1.01-1.02 bln vs. $1.01 bln S&P Capital IQ Consensus.

• Reports Q4 (Dec) earnings of $0.89 per share, $0.05 better than the S&P Capital IQ Consensus of $0.84; revenues rose 3.4% year/year to $198 mln vs the $195.31 mln S&P Capital IQ Consensus.
• Net interest margin of 3.53%, and core net interest margin of 3.36%

• Amcor (AMCR) announced today its strategic investment in PragmatIC Semiconductor, a world leader in ultra, low-cost electronics. Based in the United Kingdom, PragmatIC Semiconductor develops flexible, integrated circuits beyond the scope of conventional electronics. Amcor's $5 million investment was part of the Series C funding round of more than $90 million for PragmatIC Semiconductor.
• Stellantis (STLA) announced it took a majority of Stimcar's capital, via Stellantis &You, Sales and Services. Stimcar, an innovative specialist in the reconditioning of Used vehicles, announces a new stage in its development with the rise to the capital of Stellantis through its distribution subsidiary Stellantis &You, Sales and Services. The agreement provides for the continuation of the two founding directors of Stimcar, Jean-Franois and Yann Brazeau, as well as all the staff currently employed in the company. In the light of future developments, the number of employees of Stimcar is set to increase, to meet an ambitious load plan.
  

• HUTCHMED (HCM) announces that it has initiated a Phase I trial in China of HMPL-653, an investigational novel, highly selective, and potent colony-stimulating factor 1 receptor inhibitor. The first patient received their first dose on January 18, 2022. The Phase I trial is a multicenter, open-label, single-arm study to evaluate the safety, tolerability, pharmacokinetics and preliminary efficacy of HMPL-653 in the treatment of patients with advanced or metastatic solid tumors and tenosynovial giant cell tumors.
• WiSA, LLC, a wholly-owned subsidiary of Summit Wireless Technologies, Inc. (WISA), a leading provider of immersive, wireless sound technology for smart devices, will integrate WiSA's multichannel spatial audio capabilities into Realtek's 5GHz IoT chip feature set. The partnership will culminate in a cost-effective IoT module capable of delivering uncompressed, high-definition spatial audio streams for an unparalled immersive audio experience.
• Olin Corporation (OLN) announced that it will discontinue bleach manufacturing at its Tracy, CA facility by June 30, 2022.
• Hyatt Hotels Corporation (H) announced that a Hyatt affiliate has entered into management agreements with Stratford City Hotels Limited, a wholly owned subsidiary of M&L Hospitality, for Hyatt Regency London Stratford and Hyatt House London Stratford. The 225-room Hyatt Regency London Stratford and the 127-room Hyatt House London Stratford are expected to open in Q2 2022 following an extensive refurbishment. Both hotels will be conveniently located within one of Europe's largest urban shopping and entertainment complexes, Westfield Stratford City, and a short walk to Stratford Station.
• Aurora Mobile (JG) announced that JMessage SDK, its instant messaging product, has passed the security test and evaluation in the third round of the SDK Security campaign facilitated by the China Academy of Information and Communications Technology. This is the Company's second product to pass the security test and evaluation under the SDK Security campaign.

• Co announced that Australia's Therapeutic Goods Administration (TGA) has granted approval for provisional registration of NVX-CoV2373, Novavax' COVID-19 vaccine (adjuvanted), for active immunization to prevent coronavirus disease 2019 (COVID-19) caused by SARS-CoV-2 in individuals 18 years of age and older. The vaccine will be supplied to Australia under the brand name Nuvaxovid.
• The approval for provisional registration by the TGA is based on the totality of preclinical, manufacturing and clinical trial data submitted for review. This includes two pivotal Phase 3 clinical trials: PREVENT-19 enrolled approximately 30,000 participants in the U.S. and Mexico, the results of which were published in The New England Journal of Medicine (NEJM); and a trial with almost 15,000 participants in the U.K., the results of which were also published in NEJM. In both trials, NVX-CoV2373 demonstrated high efficacy and a reassuring safety and tolerability profile. Serious and severe adverse events were low in number and balanced between vaccine and placebo groups. The most common adverse reactions observed during clinical studies (frequency category of very common =1/10) were headache, nausea or vomiting, myalgia, arthralgia, injection site tenderness/pain, fatigue, and malaise. Novavax will continue to collect and analyze real-world data, including the monitoring of safety and the evaluation of variants, as the vaccine is distributed.
  

• Reports Q4 (Dec) earnings of $0.55 per share, $0.04 worse than the S&P Capital IQ Consensus of $0.59.
• Columbia's net interest margin (tax equivalent) for the fourth quarter of 2021 was 3.05%, a decrease of 12 basis points from the linked quarter and a decrease of 47 basis points from the prior-year period. The decrease in the net interest margin (tax equivalent) compared to the linked quarter was primarily due to a decrease in loan yields partially offset by higher yields on securities due to prepayment interest.

• 2022 Corporate Goals
  • Energize 100 MW - Develop and energize over 100 MW of net new data centers in the US. Upgrade existing facilities to maximize Exahash and production output
  • Scale 3 EH - Procure, upgrade and deploy mining equipment to increase the company's combined Hashrate
  • Originate 600 MW - Expand development pipeline to add over 600 MW of additional BTM projects in the US and beyond with at least 100 MW outside the US
  • Seed 1 MW GPUs - Develop and energize a 1 MW Cryptocurrency facility with 100% GPUs and sign one contracted pilot customer to serve HPC computing loads
    

• argenx SE announced that Japan's Ministry of Health, Labour and Welfare (MHLW) has approved VYVGART (efgartigimod alfa) intravenous infusion for the treatment of adult patients with generalized myasthenia gravis (gMG) who do not have sufficient response to steroids or non-steroidal immunosuppressive therapies (ISTs). VYVGART is the first-and-only neonatal Fc receptor (FcRn) blocker approved in Japan.
• The approval of VYVGART is based on results from the global Phase 3 ADAPT trial, which were published in the July 2021 issue of The Lancet Neurology. The ADAPT trial met its primary endpoint, demonstrating that significantly more anti-acetylcholine receptor (AChR) antibody positive gMG patients were responders on the myasthenia gravis activities of daily living (MG-ADL) scale following treatment with VYVGART compared with placebo (68% vs. 30%; p<0.0001). Responders were defined as having at least a two-point reduction on the MG-ADL scale sustained for four or more consecutive weeks during the first treatment cycle.
  

• Amgen announced that LUMAKRAS (sotorasib) has been approved in Japan for the treatment of KRAS G12C-mutated positive, unresectable, advanced and/or recurrent non-small cell lung cancer (NSCLC) that has progressed after systemic anticancer therapy.
• The approval by the Japan Ministry of Health, Labour and Welfare (MHLW) is based on positive results from the Phase 2 CodeBreaK 100 clinical trial in NSCLC, the largest trial conducted to date for patients with the KRAS G12C mutation. Based on the approved label in Japan, LUMAKRAS 960 mg, orally administered once-daily, demonstrated an objective response rate (ORR) of 37% (95% CI: 28.8-46.6) in 123 evaluable patients (including 10 Japanese patients* with a data cutoff date: Sept. 1, 2020). Adverse reactions were observed in 128 (67%) of 190 patients (including 13 Japanese patients). The most common adverse reactions (incidence = 5%) were diarrhea (28%), nausea, increased alanine aminotransferase (ALT) and increased aspartate aminotransferase (AST) (16% each), fatigue (11%), increased blood alkaline phosphatase (8%), vomiting (7%) and abdominal pain (5%).
• Results from the Phase 2 CodeBreaK clinical trial in NSCLC were published in The New England Journal of Medicine.
  

• Co announced that the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA) has accepted a supplemental new drug application (sNDA) for BeiGene's BTK inhibitor BRUKINSA (zanubrutinib) as a treatment for adult patients with Waldenstrm's macroglobulinemia (WM).
• The sNDA is supported by clinical results from the randomized, open-label, multicenter Phase 3 ASPEN trial (NCT03053400) comparing BRUKINSA to ibrutinib in patients with relapsed or refractory (R/R) or treatment-nave (TN) WM.
  

• The SA gold operations (excluding DRDGOLD) performed within guidance. Production for 2021 of 27,747kg (892,084 oz), was above the lower level of guidance of 27,500 kg (884,000 oz), with production of 14,348kg (461,297 oz) for H2 2021, 7% higher than for H1 2021. In early December 2021, production was suspended at Kloof 1 shaft and at the Beatrix 1 and 3 shafts.
• Following the implementation of extensive safety audits and corrective measures, operations at Kloof 1 shaft recommenced in 2022, with a gradual start-up of production activities. Operations at the Beatrix 1 and 3 shafts have not yet recommenced as audits and engagements with the Department of Mineral Resources and Energy continue. It is anticipated that production from the Beatrix operation will resume towards the end of January 2022.
• The operational restart in January 2022 at the remainder of the SA gold operations, post the seasonal break, has been consistent with plan.
  

• The global equity markets are mixed with US futures off to strong starts. S&P Futures are up about 20 points to around the 4544 area. The market tested the key support area of 4520 early in the session. While the low print was established at 4514.50, buyers successfully defended the zone. Spoos put in the high of 4553.50 at the tail end of the Asian trade. The S&P has settled back into the current level since.
• In Asia, China slipped 0.1% while Japan gained over 1%. The Shanghai was unable to hold gains despite getting off to a hot start after China cut both its one-year loan prime rate (LPR) and its five-year LPR, with the latter being the first reduction since April 2020. The five-year LPR acts as China's reference rate for mortgages and helped property stocks. This had a greater impact on Hong Kong where the Hang Seng advanced over 3%. In Japan, stocks were in rebound mode. This is particularly true for some of the worst performing sectors from the prior session. Gaming stocks such as Konami and Sony took back 6%. Meanwhile, Toyota managed a 2% rise following its weakness on Wednesday.
• In Europe, the major bourses are in an early slump. The release of Germany's PPI dampened spirits right out of the gate. The December print rose 5.0%, far exceeding the forecast of 0.8%. Puma is up 2% and among the standouts after the sportswear maker posted better than expected earnings on record sales.

Market Updates

• S&P Futures vs Fair Value: +20.0
• 10 yr Note: 1.834%
• USD/JPY: 114.29   +0.01
• EUR/USD: 1.1343  -0.0001
• Europe: FTSE: -0.2%  DAX: -0.2% CAC: -0.5%
• Asia: Hang Seng: +3.4% Shanghai: -0.1%  Nikkei: +1.1%
• Gold (1839.80 -3.50) Silver (24.27 +0.04) Crude (86.79 -0.17)

• Co announces it was awarded an $11 million sole-source contract to plan, standup, and demonstrate a prototype ground operations center in support of Defense Advanced Research Project Agency's (DARPA) Blackjack flight demonstration activities.
• The new contract represents Parsons continued commitment to delivering innovative solutions for customers across the space domain and is a follow-on to a phase II small business innovation research contract won by Braxton Technologies, LLC prior to Parsons' 2020 acquisition of the software company.

• Reports Q4 (Dec) earnings of $1.58 per share, $0.04 better than the S&P Capital IQ Consensus of $1.54; revenues rose 2.9% year/year to $429.74 mln vs the $417.42 mln S&P Capital IQ Consensus.
  • Net interest income totaled $296.0 million, an increase of $8.5 million sequentially, due to earning asset growth and a decline in deposit costs.

• Co announces the signing of an MOU with a U.S.-based cleantech company to co-develop a supply chain strategy for advanced, low-carbon transportation fuels, including sustainable aviation fuel, with a focus on the customer's operations in the U.S. Southeast and potentially California.
  • Under the MOU, the customer's refining process will convert Enviva's woody biomass into a drop-in replacement for crude oil used for producing aviation fuel.
  • Enviva's current operations and numerous potential development sites in the U.S. Southeast position it to co-develop alongside the SAF refining capacity the customer intends to construct in the region.
• Enviva is accelerating its plans to double its production capacity over the next 5 years, from 6.2 million metric tons per year to approximately 13 million MTPY.
  • To capitalize on this momentum, Enviva is broadening and deepening its development capabilities and leveraging relationships with key equipment suppliers and construction partners to enable it to build and commission two plants per year, up from its historical rate of one plant per year.
  • Enviva plans to continue utilizing its "build and copy" approach to plant design while increasing the nameplate production capacity of its new plants to approximately 1.1 million MTPY, up roughly 45% from the previous standard of 750,000 MTPY.
• Co also provides preliminary FY21 results on a recast and non-recast basis. On a non-recast basis, it expects a net loss of $(24.0)-$(19.0) mln, adjusted EBITDA of $225-$230 mln, and DCF of $167-$172 mln.

• Fifth Third Bancorp announced a definitive agreement to acquire Dividend Finance, a leading fintech point-of-sale lender, providing financing solutions for residential renewable energy and sustainability-focused home improvement.
• Founded in 2013, Dividend Finance partners with solar and home improvement contractors across the US to offer a range of financing products through its proprietary point-of-sale platforms.
• Fifth Third currently expects the transaction to close in the second quarter of 2022.

• Reports Q4 (Dec) loss of $(1.60) per share, excluding non-recurring items, $0.49 better than the S&P Capital IQ Consensus of $(2.09); revenues rose 140.1% year/year to $8.19 bln vs the $7.96 bln S&P Capital IQ Consensus.
  • Q4 capacity down 23% compared to 4Q19.
    
  • Co noted that while Omicron is impacting near-term demand, it remains optimistic about the spring, summer, and beyond.
  • Looking ahead, bookings for spring travel and beyond remain strong.
• Q1 Outlook:
  • Co expects Q1 capacity to be down around 16-18% compared to 1Q19.
  • Expects Q1 operating revenue to be down 20-25% compared to 1Q19.
  • Expects Q1 CASM-ex to be up 14-15% compared to 1Q19.
• FY22 Outlook:
  • Now expects full year 2022 capacity to be down versus 2019.
  • Now expects full year 2022 CASM-ex to be higher than 2019.
  • Remains on track to achieve long-term financial targets from United Next plan.

• Reports Q4 (Dec) earnings of $1.14 per share, $0.13 better than the S&P Capital IQ Consensus of $1.01.
• Loan growth of $2.4 bln, or 11.8%.
• Net Interest Income of $304.5 mln compared to $279.8 mln in 3Q21.
• Provision for credit losses benefit was $6.0 million for the fourth quarter of 2021 compared to a benefit of $20.0 million for the third quarter of 2021.

• Phillips 66 and NOVONIX have signed a technology development agreement to advance the production and commercialization of next-generation anode materials for lithium-ion batteries.
• Phillips 66 became a major investor in NOVONIX in September of 2021, when it acquired a 16% stake in the company. The investment is supporting NOVONIX's growth as it scales up production and develops new technologies for higher-performance energy storage applications.
• Under the agreement, Phillips 66 and NOVONIX will leverage leading positions in their respective industries to drive commercial development of optimized feedstocks and lithium-ion anode materials with reduced carbon-intensive processing.

• KKR has acquired Merchants Mortgage Trust & Corporation, a real estate lending platform specializing in short-term mortgage products for experienced individual residential real estate investors.
  • Headquartered in Denver, Colorado, MMTC primarily originates residential bridge loans for private investors that are predominantly used for property rehabilitation, with a focus on one-to-four unit residential properties.
  • The company's financing solutions enable community-based entrepreneurs to improve the quality of US residential housing stock by investing in renovations and new construction.
• KKR is making its investment in MMTC through its private credit funds and accounts as part of the firm's Asset-Based Finance investment strategy.
• Financial terms of the transaction were not disclosed.

• Reports Q4 (Dec) earnings of $3.64 per share, $0.04 worse than the S&P Capital IQ Consensus of $3.68; revenues rose 4.0% year/year to $2.94 bln vs the $3.02 bln S&P Capital IQ Consensus.
• "Our record results in 2021 reflect the benefits of our integrated digital banking and payments model, the strength of our value proposition, and a supportive macroeconomic backdrop," said Roger Hochschild, CEO and President of Discover "It's great to see that our investments in acquisition, brand, and technology contributed to our return to loan growth this past year, and should drive accelerated growth in 2022."

The S&P 500 fell 1.0% on Wednesday, fading an early 0.8% gain despite encouraging earnings news and a decline in interest rates. The Nasdaq Composite (-1.2%) and Dow Jones Industrial Average (-1.0%) performed comparably to the benchmark index, while the Russell 2000 lagged with a 1.6% decline.

Nine of the 11 S&P 500 sectors closed lower, as selling interest accelerated into the close on no specific news. The consumer discretionary (-1.8%), financials (-1.7%), and information technology (-1.4%) sectors led the retreat, while the consumer staples (+0.7%) and utilities (+0.5%) sectors closed higher.

Early on, there was optimism surrounding the EPS beats from Procter & Gamble (PG 162.00, +5.27, +3.4%), UnitedHealth (UNH 462.52, +1.53, +0.3%), Bank of America (BAC 46.44, +0.18, +0.4%), and Morgan Stanley (MS 95.74, +1.73, +1.8%) insofar that they signaled more companies would successfully navigate the higher-cost business environment. 

At the same time, interest rates had backed off from overnight highs and continued to push lower throughout the session. It looked like a good set-up for an equity rebound, but unfortunately, that didn't happen. The inability to rebound from sizable losses deterred risk sentiment, fueling a belief that more downside was ahead.

Presumably, investors bought the dip in Treasuries to hide out from the equity volatility, geopolitical uncertainty, and any impact from the Fed's tightening plans. As a reminder, the Fed meets next week to discuss monetary policy. 

The 2-yr yield declined two basis points to 1.01% after flirting with 1.08% overnight, and the 10-yr yield declined four basis points to 1.83% after flirting with 1.90% overnight. The U.S. Dollar Index declined 0.2% to 95.56. WTI crude futures approached $87.00 per barrel ($86.86/bbl, +1.38, +1.6%). 

Interestingly, homebuilding stocks were noticeably weak despite housing starts and building permits for December beating expectations. There might have been some disappointment that the increases were driven by multi-unit dwellings instead of single-unit dwellings. 

The iShares US Home Construction ETF (ITB 71.73, -1.88) fell 2.6%, additionally pressured by KeyBanc Capital Markets downgrading several stocks in the space.

Reviewing Wednesday's economic data:

• Housing starts increased 1.4% month-over-month in December to a seasonally adjusted annual rate of 1.702 million (Briefing.com consensus 1.650 million) while permits increased 9.1% month-over-month to 1.873 million (Briefing.com consensus 1.702 million).
  • The key takeaway from the report is that the increases were driven by multi-unit dwellings. Single-unit starts were down 2.3% and single-unit permits were up just 2.0% with little to no growth in the two largest homebuilding regions (the South and the West).
• The weekly MBA Mortgage Applications Index increased 2.3% following a 1.4% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for December, and the Philadelphia Fed Index for January on Thursday.

• Dow Jones Industrial Average -3.6% YTD
• S&P 500 -4.9% YTD
• Russell 2000 -8.1% YTD
• Nasdaq Composite -8.3% YTD

• Semrush announces the acquisition of Marketing and Search Engine Optimization (SEO) training platform Backlinko.
• Backlinko was established in 2012 and is dedicated to actionable content and video marketing, link building, social media, and SEO training. With more than 500,000 visits a month, Backlinko.com is a respected resource for training, strategies, and advice for today's digital marketers.

• Co announces its intention to spin off its home health and hospice business to form an independent, publicly traded company and to rebrand the HH&H Business as Enhabit Home Health & Hospice.
• The Encompass Health Board of Directors believes that the separation of its inpatient rehabilitation business and the HH&H Business into two independent, publicly traded companies will provide significant benefits to both businesses and their stakeholders, including improving the strategic and operational flexibility of each business, increasing the focus of each management team on its business strategy and operations, allowing each business to adopt a capital structure and investment policy best suited to its financial profile and business needs, and providing each company with its own equity currency to facilitate acquisitions and to better incentivize management.
• The spin-off, which is expected to be tax-free to Encompass Health's shareholders, will result in Encompass Health's shareholders owning stock in both companies. The company intends to consummate the spin-off in the first half of 2022, subject to various conditions, including the effectiveness of a Form 10 registration statement, regulatory approvals and receipt of a favorable IRS private letter ruling.

• December operating results, comparable to December 2019, include:
  • 7.2% ADR growth to $250 for the comparable portfolio Property-level cash flow of $9.7 mln.
  • 430 basis points of GOP margin expansion to 44.6%.
  • 180 basis points of EBITDA margin expansion to 30.6%.
  • Urban EBITDA performance improved in quarter, nearly matching continued robust resort portfolio EBITDA performance.
  • Resorts generated $4.9 mln of property level EBITDA.
  • Urban Portfolio generated $4.8 mln of property level EBITDA.

• Reports Q4 (Dec) earnings of $2.50 per share, $0.51 better than the S&P Capital IQ Consensus of $1.99; revenues rose 38.0% year/year to $3.3 bln vs the $3.35 bln S&P Capital IQ Consensus.
• Higher alumina and aluminum prices drove a 7% sequential increase in revenue to $3.3 billion. On a sequential basis, the average realized third-party price of alumina increased 30% and the average realized third-party price of aluminum increased 8%.
• In Aluminum, total third-party shipments decreased 5% sequentially due primarily to a strike action at the San Ciprin smelter, which blocked shipments in the fourth quarter. The reduced shipments were partially offset by increased shipments in the fourth quarter from other European and Canadian smelters.
• Generated $565 million in cash from operations; finished the quarter with a cash balance of $1.9 billion, including restricted cash of $110 million.
• 2022 Outlook: In 2022, the company projects total bauxite shipments to range between 48.0 and 49.0 million dry metric tons, consistent with 2021. Total alumina shipments are expected to be between 14.2 and 14.4 million metric tons, an increase from 2021 with the resolution of the San Ciprin strike and recovery from the outage of a bauxite unloader at Alumar.
  • Anticipates Adjusted EBITDA and Adjusted net income levels for the first quarter of 2022 to be similar to the fourth quarter of 2021 (current S&P Capital IQ Consensus for Q1 EPS is $1.71) based on current pricing.
  • Alcoa expects that current metal index price benefits will roughly offset the raw materials and energy challenges, and that improvements from portfolio actions and sales contract pricing will mitigate other seasonal changes and headwinds.

• American Homes 4 Rent has commenced an underwritten public offering of 20,000,000 of its Class A common shares of beneficial interest, of which 10,000,000 shares will be offered directly by the company and 10,000,000 shares will be offered, at the request of the company, by the forward purchasers in connection with forward sale agreements.
• The company intends to use proceeds (i) to repay indebtedness it has incurred or expects to incur under its revolving credit facility, (ii) to develop new single-family properties and communities, (iii) to acquire and renovate single-family properties and for related activities, and (iv) for general corporate purposes.

• Co announces that the Board of Directors and Scott Buckhout, President and Chief Executive Officer, have mutually agreed that Mr. Buckhout will step down as President and Chief Executive Officer, effective immediately.
• The Board also announced that Aerospace & Defense Group President Tony Najjar has been promoted to Chief Operating Officer and named interim President and Chief Executive Officer.
• The company has selected a leading executive search firm to identify a permanent President and Chief Executive Officer.
• Guidance: Co also reaffirms guidance for Q4, continues to expect organic revenue to increase by 1 to 3%, adjusted EPS of $0.60 to $0.65 vs. the $0.62 S&P Capital IQ consensus estimate, and free cash flow conversion of 85 to 105% ($10 to $15 million).

• Reports Q4 (Nov) earnings of $1.09 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $1.08; revenues rose 15.4% year/year to $897.4 mln vs the $896.95 mln S&P Capital IQ Consensus.
  • Volume growth and more than $100 million of pricing realized in the quarter drove 340 basis points of sequential gross margin improvement versus the third quarter of 2021.
• Co issues in-line guidance for FY22, sees EPS of $4.00-4.25, excluding non-recurring items, vs. $4.18 S&P Capital IQ Consensus.
  • Full year organic sales are expected to increase between 10% and 15% year over year. Foreign currency exchange rates are anticipated to have an unfavorable impact of 2% to 3% on full year net revenue growth versus fiscal 2021.
  • The company notes that fiscal 2022 has an extra week in the fourth quarter for 53 weeks of activity versus the normal 52 week fiscal year, which is included in its financial guidance.

• Through the acquisition of VelocIT, Paya looks to accelerate its product roadmap, scaling the company's solution capabilities and extending its leadership in accounting and ERP integrations.
• Co expects to discuss the transaction further on its Q4 and FY21 results conference call.