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"CAPIS Morning Note – 10/21/21: S&P 500 and Dow Jones Industrial Average Closed Just Below Record Highs"

posted by CAPIS on 10/21/2021 at 8:39 am

by CAPIS

10/21/2021 at 8:39 am

Overnight Summary: Stocks are seeing some selling as there are no new catalysts driving stocks higher. Asia saw Japan drop 2% while China sees both good and bad stories on Evergrande circulating. Europe sees mixed results with SAP beating estimates and ABB missing.

Breaking News:

Earnings Out After The Close:

  • Beats: THC +0.90, UFPI +0.40, TSLA +0.25, SLG +0.20, DFS +0.16, LRCX +0.16, EFX +0.12, PPG +0.10, VMI +0.10, FHN +0.09, SLM +0.09, CNS +0.08, LSTR +0.05, CCI +0.05, CSX +0.05, UMPQ +0.05, RLI +0.04, REXR +0.04, XM +0.03, SEIC +0.02, IBM +0.01
  • Flat: CVBF +0.00
  • Misses: KALU (0.75), TCBI (0.33), LVS (0.19), FR (0.16), GL (0.11), OMF (0.11), FTI (0.07), GGG (0.06), KMI (0.02), STL (0.01)

Capital Raises:

  • IPOs Priced or News:
    • GOGN: GoGreen Investments Corporation Announces Upsizing and Pricing of $240,000,000 Initial Public Offering
    • PTLO: Pricing of Initial Public Offering.. 20,270,270 shares @$20
    • ENFN Enfusion (NYSE) prices 18.75 mln share IPO at $17.00 per share, at the high end of the $15-17 expected range
    • COCO The Vita Coco Company (Nasdaq) prices 11.5 mln share IPO at $15.00 per share, below the $18-21 expected range
    • PX P10, Inc (NYSE) prices 20 mln share IPO at $12.00 per share, below the $14-16 expected range
    • VTYX Ventyx Biosciences (Nasdaq) prices 9,472,656 share IPO at $16.00 per share, at the midpoint of the $15-17 expected range
    • RWAY Runway Growth Finance (Nasdaq) prices 6.85 mln share IPO at $14.60, at the low end of the $14.60-15.60 expected range
  • New SPACs launched:
    • TMTG Trump Media and Technology Group going public via SPAC, valued at $1.7 billion
  • Secondaries Priced:
    • RWLK: Filed Form S-3.. 8,967,570 Ordinary Shares
    • KERN: Filed Form S-3.. 37,037,037 SHARES OF COMMON STOCK
    • TASK TaskUs prices secondary offering of 10 mln shares of common stock at $63.50 per share
    • DLO dLocal Limited prices secondary offering of 17.0 mln shares of common stock at $52.25 per share
    • HPK HighPeak Energy prices offering of 2.2 mln shares of common stock at $10.00 per share
  • Notes Priced of note: None of note
  • Common Stock filings:
    • SHPW Shapeways files for 35,504,051 share common stock offering
  • Pricing of Over-Allotment: None of note
  • Direct Offering:
    • NFGC New Found Gold Corp. reports private placement with Eric Sprott of $5 mln common shares at a price of CAD9.60 per Common Share
  • Selling Shareholders of note:
    • VLN Valens Semiconductor files for 21.58 mln ordinary share offering by selling shareholders
  • 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:

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

S&P 500 -3 Dow Jones Industrial Average -25 NASDAQ -4 Russell 2000 -7 . Fair values are mixed. Asia mixed and Europe lower. VIX is at 19.59 from 19.64 in futures from yesterday. Gold,silver and copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $130.38 from $130.63 yesterday with yields at 1.67% from 1.62% yesterday morning. Bitcoin at $64,601 from $64,048 yesterday morning down $1777 or +2.67% in morning trading.

Wednesday’s Action – 10/20 Close:  

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

Stocks were higher across the board, especially commodities including Silver, Oil, and Natural Gas.  Updated 10/20 Close.

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

  • Thursday After the Close: INTC, SNAP, CMG, SIVB, CE, WRB, WHR, RHI, WAL, CSL, OLN, PBCT, AXTA, FFIN, MAT, SAM, VICR, GBCI, OZK, ASB, WSFS, PSMT, FFBC, SXI, EIG, BJRI, BOOM of note.
  • Friday Before the Open: HON, AXP, HCA, ROP, SLB, VFC, RF, STX, CLF, GNTX, ALV, UBSI, FHB, TRTN, AIMC, GBX of note.

Earnings of Note This Morning:

  • Beats: FAF +2.13, AN +0.92, DGX +0.90, POOL +0.67, CROX +0.61, BX +0.36, ALLE +0.29, TSCO +0.29, TPH +0.28, VLO +0.27, DHR +0.24, ALLY +0.22, DOW +0.19, SNA +0.18, IPG +0.15, ALK +0.15, BANC +0.14, PPBI +0.13, TRN +0.11, FCX +0.09, KEY +0.08, MMC +0.08, BKU +0.08, EWBC +0.07, T +0.07, UNP +0.07, IQV +0.05, AAL +0.04, LUV +0.04, SASR +0.03, SON +0.02, HRI +0.02, HOMB +0.02
  • Flat: RCI +0.00
  • Misses: PDS (0.96), LNN (0.27), NUE (0.14), ABB (0.09), WBS (0.04), GTLS (0.03)
  • Still to Report: GATX, GPC, NVR

Erlanger Research Advance/Decline Chart: Updated through 10/20 close.

Gap Ups & Down In Early Pre-Market:

  • Gap up:

    • TSC +27%, SIOX +13%, XM +7%, MYRG +4.2%, HPQ +4.2%, THC +3.6%, UNIT +3.2%, CRNX +3%, ONEW +3%, UL +3%, CSX +2.8%, MRNA +1.8%, SAP +1.8%, EFX +1.2%, CNI +0.9%, FR +0.8%, DLO +0.6%, LSTR +0.6%, BANC +0.6%
  • Gap Down:
    • FTI -7.3%, ADMA -7.2%, CVLG -6.9%, KALU -6.6%, ABB -5.8%, IBM -4.8%, GGG -4.1%, UMPQ -3.1%, LRCX -3.1%, KNBE -2.7%, GL -2.5%, TCBI -2.4%, PPG -2.4%, DFS -2.3%, RJF -1.9%, KMI -1.9%, LVS -1.9%, DHR -1.6%, SLM -1.5%, ZLAB -1.3%, SLG -1.3%, BCS -1.3%, TSLA -1%, HLX -0.9%, GOCO -0.7%, DOW -0.7%

Insider Action: None of note today. No stocks sees Insider buying with dumb short selling and no smart short sellers with insider buys this morning. 10/20

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 Moving – T, IBM, CROX, BX, DOW, CSX, UL. (CNBC)
  • Five Things To Know To Start Your Day. (CNBC)
  • Biden Administration to give up individual and corporate tax increases and seek smaller revenue alternatives and taxes. (NYT)
  • Budget Reconcilition Bill sees Medicare and Medicaid Changes remain with another year of the child tax credit. Out community college and climate initiatives. (PBS)
  • China’s Evergrande sees sale of property services collapse. (FT)
  • President Biden wants $800 credit card to seniors for dental care. (The Washington Post)
  • Robinhood looks at Ulta Beauty (ULTA) move to improve digital experience. Electronic Arts (EA) may split with FIFA.

Moving Average Update:

  • Score at 100% unchanged. Updated 10/20 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
  • Fed Speakers: none of note

Economic:

  • October Philadelphia Fed Index is due out at 8:30 a.m. EDT and is expected to drop to 24.5 from 30.7.
  • September Existing Home Sales are due out at 10:00 a.m. EDT and are expected to come in at 6.05 million up from 5.88 million.
  • September Leading Indicators are due out at 10:00 a.m. and estimates are for a drop to 0.5% from 0.9%.

M&A Activity:

  • TSC TriState Capital Holdings to be acquired by Raymond James in cash and stock deal worth $1.1 bln
  • STN Stantec has entered into share purchase agreements to acquire the North America and Asia Pacific engineering and consulting groups of Cardno Limited
  • ONEW OneWater Marine to acquire T-H Marine for approx. $185 mln
  • KNBE KnowBe4 has entered into a material definitive agreement to acquire SecurityAdvisor for an estimated total purchase consideration of ~$80 mln
  • AKAM Akamai Technologies Completes Acquisition of Guardicore to Extend Its Zero Trust Solutions to Help Stop Ransomware
  • KBR KBR Completes Frazer-Nash Consultancy Acquisition, Expands International Advisory Footprint

Meeting & Conferences of Note:

  • Sellside Conferences: Credit Suisse Real Estate Conference
  • Company Meetings:   (Investor/Analyst Day)  (R&D Day) (Corporate Event)  (Fireside Chat)
    • UL – Unilever Q3 trading statement 2021
    • SCHW – Charles Schwab Corp. Fall Business Update 2021
  • Conferences of Note:
      • World Vaccine Congress (10/19-21)
      • Gartner IT Symposium/Xpo 2021

Upgrades & Downgrades:

Today’s Recommendations:

Wednesday Recommendations:

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