Mid-Morning Look: December 29, 2021

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Mid-Morning Look

Wednesday, December 29, 2021






DJ Industrials




S&P 500








Russell 2000






U.S. stocks are mixed/down slightly on light volume (technology heavy Nasdaq leading the pull), as tax loss selling appears to be hitting some of the biggest yearly losers after major stock averages hit record highs (or close too) the last few trading sessions of 2021. Caution could be kicking in following the historic run for the S&P the last few sessions, as well as daily U.S. COVID-19 infections hit a record high. The U.S. 10-year treasury yields rises to 1.53%, highest since Dec. 9th, while the Dow is steady, trying to make it a 6th straight day of gains (which would be the first six-day win streak since March). Not much in way of news with three trading days left in 2021, with economic data mixed today and volumes light amid the heavy vacation week into the New Year that has seen big gains thus far including: +27% gain for the S&P 500, +31% for Dow Transports, +22% YTD for the Nasdaq, around +19% for the Dow, 42% for the semiconductor index and 13.75% for the Russell 2000. Consumer Staples, Materials, Utilities, and Real Estate all S&P sectors among record highs coming into today.


Economic Data

·     U.S. Advance Goods Trade Balance for November was -$97.78B, greater than the prior month -$83.2B and estimates around -$88.1B; Nov wholesale inventories +1.2%; Nov retail inventories excluding autos +1.3%. November exports were $154.7B, or $3.3B less than October exports, while Nov imports were $252.4B, or $11.3B more than October imports.

·     Pending Home sales index for November falls -2.2% vs. est. +0.5% and was down -2.7% YoY







WTI Crude















10-Year Note






·     CALX +12%; will replace CIT in the S&P MidCap 400 effective prior to the opening of trading on Tuesday, January 4. First Citizens BancShares Inc. (FCNCA) is acquiring CIT Group in a deal expected to be completed soon pending final closing conditions

·     NKE +1%; seeing bounce in a handful of retailers early – TGT, AZO, GPS

·     NRXP +6%; filed breakthrough therapy designation request for Zyesami® (aviptadil) in patients at immediate risk of death from COVID-19 despite treatment of approved therapies

·     VSCO +11%; announced a $250 million accelerated share repurchase program and reaffirmed its Q4 sales, operating income, and earnings guidance

·     WDC +5%; after Samsung said will “temporarily adjust operations” at the NAND facility – Wells Fargo said” “while scale / duration of any production loss is unknown, given disciplined NAND Flash vendor-held inventory levels, we would view NAND production impacts as a positive for Western Digital and Micron”



·     BABA -3%; continued selling pressure in a handful of names that are down big in 2021 on possible additional tax loss selling – BIDU, DKNG, PENN, PTON, TDOC, ZM, NKLA among them

·     CALM -6%; slides on earnings miss as Q2 EPS $0.02 below est. $0.30 on revenue $390.9M vs est. $387.8M as its 12.5% YoY sales increase was driven by improved shell egg pricing, though their operating results reflect the current inflationary environment

·     CEMI -19%; after saying the FDA declined to review the company’s application for an emergency use authorization for its DPP Respiratory Antigen Panel

·     COIN -2%; amid volatility in Bitcoin and other crypto assets this morning; weighing on stocks that tend to benefit from rising Bitcoin prices (SI, RIOT, MARA)

·     DIDI -6%; following a Reuters report that the company will use the “listing by introduction” method to list in Hong Kong, which would issue no new shares and raise no capital.

·     FCEL -12%; after Q4 revs of $13.9M missed the $21.9M estimate (down -19% YoY) and posted an unexpected EPS loss of (-$0.07) saying the rev decline was driven by a $5.6M decrease in service agreements and license revenues

·     MFIN -37%; as the SEC charged the company with illegally engaging in two schemes to reverse the company’s plummeting stock price.

·     RIVN -3%; recall yesterday the company CEO said it will delay deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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