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10.21.2021 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note -9/24/21: Stocks Look To End The Week Lower As Evergrande Fears Refuse To Leave"

posted by CAPIS on 09/24/2021 at 8:52 am

by CAPIS

09/24/2021 at 8:52 am

Overnight Summary-  China closed near its day low while Japan was up 2.1%. In Europe, retail names are weak on Nike’s (NKE) results which are taking down the overall major bourses as well.

Breaking News – China PBOC bans any crypto transaction including Bitcoin. (WSJ)

Breaking News II – Debt limit to be breached between October 15 and November 4th per the Bipartisan Policy Center. In 2011, this led to a downgrade of U.S. debt. U.S. Senator & Majority Leader Schumer says has framework to avoid debt default. Love that word “framework”.

Earnings Out After The Close

Beats: TCOM +0.70, PRGS +0.36, COST +0.36, NKE +0.04, AIR +0.03, CAMP +0.02, MTN +0.01

Flat: None

Misses: None

Capital Raises: 

IPOs Priced or News: Cue Health (HLTH) prices IPO at $16 mid point of range $15 to $17. Clearwater Analytics (CWAN) prices at $18 above range of $14 to $16.

New SPACs launched: Fusion Acquisition Corp (FUSE) to merge with MoneyLion (ML) starting today.

Secondaries Priced: INVH TIXT of note.

Notes Priced of note:  AMT KRC of note.

Common Stock filings: INVH EFTR ONTX PALI of note.

Selling Shareholders of note:  SMRT MGY of note.

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:

Costco (COST) reports strong earnings but will limit toilet paper sales. Can retailers stock their shelves? Also, they will raise prices 3.5% to 4%.

CDC endorses Pfizer (PFE) booster for those over +65 and those at risk.

Pebblebrook Hotel Trust (PEB) buys Margaritaville Hollywood Beach Resort for $258 million.

Celanese (CE) confirms that China has declared a force majeure of some Acetyl Chain products.

Shooting at a Kroger (KR) store in Tennessee sees one dead and twelve injured.

After Hours:  Higher: AEHR +22% VTVT +19%  PRGS +7% GLYC +4% and Lower: CAMP -9% NKE -4%

Dividend Increases: LMT MCD

Stock Split: 

Buyback Announcements: TMO LMT

Higher Guidance:  (After the Close)  AEHR AVB TREB  of note (This Morning)  of note

Mixed Guidance:(After The Close)  of note  (This Morning)  of note

Lower Guidance:(After The Close) PRGS of note (This Morning)  of note

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

S&P 500 -21 Dow Jones Industrial Average -136 NASDAQ -102  Russell 2000 -10.04. Fair values are mixed. Asia mixed and Europe lower. VIX is at 21.24 from 21.30 in futures  from yesterday. Gold higher with 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 $132.30 from $132.86 with yields at 1.423% from 1.346% yesterday morning. Bitcoin at $41,389 from $44,017 yesterday morning, trading at $-3360.14 or -7.55%.

Thursday’s Action – 9/23 Close.  

Positive Sectors Wednesday: Energy, Financials and Industrials of note.

Negative Sectors Wednesday: Utilities and Real Estate of note.

One Month Winners: Technology, Communication Services, Real Estate and Energy of note.

Three Month Winners: Technology, Communication Services and Healthcare of note.

Six Month Winners: Technology, Communication Services and Real Estate of note.

Twelve Month Winners: Communication Services, Energy, Technology, Financials and Industrials of note.

Year to Date: Energy, Communication Services, Energy, Financials, Real Estate and Technology of note.

Stocks were higher, Bonds were lower, U.S. Dollar flat and Commodities mixed. Updated 9/23 Close.

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

Today After the Close: None of note.

Monday Before the Open: None of note.

Earnings of Note This Morning:

Beats: None

Flat: None

Misses: None

Still to Report: CCL

Erlanger Research Advance/Decline Chart –Updated through 9/22 close.  A bounce off the August lows.

Gap Ups & Down In Early Pre-Market:

Gap up: VTVT +28%, AEHR +24%, PRGS +15%, TMCI +10%, FLGT +4%

Gap down: MGY -12%, CAMP -9%, NKE -5%

Insider Action: Of note, UIHC sees Insider buying with dumb short selling and smart short sellers in AVGO. 9/24/21

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 COIN HOOD NKE ROKU   (CNBC)

5 Things to Know About Today’s Open. (Bloomberg)

Overnight Repo comes in at $1.35 trillion in yesterday’s late afternoon report.

Covid Stats: Cases 120,770 from 155,882 a week ago. Deaths 1,961 from 1,942 a week ago. Hospitalizations 81,373 from 89,132.

Credit Suisse (CS) who was the largest issuer of Evergrande bonds, which is $300 billion, has sold down their exposure weeks ago. (FT)

Senate will vote on Monday night on funding the government to avoid debt ceiling break, expected to fail. (The Hill)

House Speaker Pelosi says House will pass a clean continuing resolution to avoid a September 30 shutdown and kick the can down the road on debt ceiling, see above. (WSJ)

Senator Joe Manchin (D- WV) says Medicare needs to be stabilized before Dental & Vision to be added.

Evergrande investors never heard about a payment on Thursday as the company has to decided to leave town for the weekend. (WSJ)

Regulators want more cold weather standards for power plants, XLU. (WSJ)

China to kill merger of Joyy (YY) into Baidu (BIDU). (Reuters)

Robinhood Snaps looks at 

Moving Average Update

Score at 80% from 23% unchanged. Updated 9/23 Close.

Geopolitical:

The President receives the President’s Daily Brief, 9:00 a.m. EST

The President participates in a bilateral meeting with His Excellency Narendra Modi, Prime Minister of the Republic of India, 11:00 AM

Press Briefing by White House COVID-19 Response Team and public health officials, 12:30 p.m. EST

The President hosts the first-ever in-person Quad Leaders Summit with The Honorable Scott Morrison MP, Prime Minister of Australia, His Excellency Narendra Modi, Prime Minister of the Republic of India, and His Excellency Suga Yoshihide, Prime Minister of Japan, East Room, 2:00 p.m. EST

Press Briefing by Press Secretary Jen Psaki and Secretary of Homeland Security Alejandro Mayorkas, 2:30 p.m. EST

The President meets with His Excellency Suga Yoshihide, Prime Minister of Japan, Red Room, 4:10 p.m. EST

The President departs the White House en route Camp David, 5:35 p.m. EST

 Fed Speakers:

Federal Reserve Cleveland President Loretta Mester speaks at 8:45 a.m. EDT.

Federal Reserve Governor Michelle Bowman speaks at 10:00 a.m. EDT.

Federal Reserve President Jerome Powell and Vice Chairman Richard Clarida speak at 10:00 a.m. EDT.

Economic:

August New Home Sales is due out at 10:00 a.m. EDT and expected to rise to 720,000 from 708,000.

Baker Hughes Weekly Rig Count out at 1:00 p.m. EDT.

The latest NYSE and NASDAQ Short Interest through September 13th on a trade date basis from August 29th.

M&A Activity:

Progress Software (PRGS) to buy Kemp for $250 million.

Meeting & Conferences of Note:

Sellside Conferences:  Citi China New Mobility Conference (9/23-24) William Blair What’s Next For Industrials Conference (9/23-24) BMO Annual Canadian High Yield Conference (9/23-24) UBS Consumer Disruption Day (9/24)

Company Meetings: NEX (Investor & Analyst Meetings)  

Conferences of Note:

Upgrades & Downgrades: Today recs see 13 notable upgrades and 2 downgrades. 

Thursday Recommendations of Note:

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