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"CAPIS Morning Note – 10/28/21: President Biden to Present Spending Bill"

posted by CAPIS on 10/28/2021 at 8:32 am

by CAPIS

10/28/2021 at 8:32 am

Overnight Summary: Markets are quiet into the European Central Bank (ECB) announcement at 7:45 a.m. EDT. In Asia, most markets lost -1%. The Bank of Japan left policy alone but lowered growth outlook. Europe is quiet into the ECB. U.S. markets trading in a narrow range of 12 points and are up 7 point on the SP 500 at 7:45 a.m. EDT.

Breaking News: ECB leaves rates unchanged. Presser at 8:30 a.m. EDT.

Earnings Out After The Close:

  • Beats: IRBT +0.97, ORLY +0.91, MTH +0.80, SNBR +0.78, LC +0.62, AXS +0.61, CCS +0.57, CYH +0.56, SCI +0.56, MUSA +0.54, SSB +0.43, MC +0.42, ACGL +0.39, RJF +0.35, CINF +0.35, BOOT +0.31, ALGN +0.28, RE +0.28, FIX +0.26, WH +0.25, F +0.24, TYL +0.24, SAVE +0.23, THG +0.23, CACI +0.23, AFL +0.21, WFG +0.19, MYRG +0.16, NOW +0.16, XLNX +0.16, EQT +0.16, EXR +0.15, TWLO +0.15, ETD +0.15, SIGI +0.15, KLAC +0.14, CHDN +0.12, ASGN +0.11, GSHD +0.11, CNO +0.11, SIMO +0.11, CHX +0.09, NTGR +0.09, BMRN +0.09, TDOC +0.09, TROX +0.09, AZPN +0.09, NGVT +0.08, FLEX +0.08, MXL +0.08, UCTT +0.06, MAA +0.06, PI +0.06, FWRD +0.06, AVB +0.05, FORM +0.05, CNMD +0.05, WCN +0.05, ISBC +0.05, PPD +0.05, KN +0.05, KRC +0.05, MOH +0.03, CONE +0.03, BCOV +0.03, WOLF +0.03, NDLS +0.03, SRI +0.03, PGRE +0.02, INVH +0.02, EBAY +0.02, MKSI +0.02, UPWK +0.02, AM +0.02, NLY +0.01, BHE +0.01, PDM +0.01, EW +0.01, ALSN +0.01, ENSG +0.01, CTSH +0.01, ESI +0.01
  • Flat: TTMI +0.00, VICI +0.00, AEM +0.00, EVTC +0.00
  • Misses: CASH (0.31), URI (0.23), JBT (0.16), PEGA (0.14), AR (0.14), FLS (0.11), ALGT (0.09), MSA (0.09), PPC (0.09), CDE (0.08), PLXS (0.07), YUMC (0.06), OII (0.06), FARO (0.05), MEOH (0.04), DRE (0.04), EHC (0.03), CLB (0.01), NTB (0.01), EQC (0.01), AGI (0.01)

Capital Raises:

  • IPOs Priced or News:
    • DTC: Pricing of Initial Public Offering.. 12,903,225 shares @$17
    • GFS: Pricing of Initial Public Offering.. 55,000,000 ordinary shares @$47 at high end of range of $42 to $47.
    • FLNC Fluence (NasdaqGS) prices 31.0 mln share IPO at $28/share, above the $21-$24 expected range.
    • RGF The Real Good Food Company launches 5.33 million share IPO with range of $14 to $16, may price this a.m.
    • AIRS AirSculpt Technologies (NasdaqGM) cuts IPO size to 7.0 mln shares, lowers price range to $11-$12
  • New SPACs launched: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • RPTX: Proposed Public Offering of Common Shares $75.0 million.. MS, GS, Cowen and Piper
    • BBI
    • KREF: Public Offering of Common Stock.. 5,000,000 shares.
    • HLBZ Helbiz files for 4.3 mln share common stock offering by selling shareholder
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • VWE Vintage Wine Estates files for 10 mln share common stock offering by selling shareholders
    • PHX PHX Minerals files for 2,349,207 share common stock offering by selling shareholder
    • OSMT Osmotica Pharmaceuticals files for 6,148,832 share common stock offering by selling shareholder
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: MCB, OSMT, PHX,
  • Convertible Offering & Notes Filed: None of note.
  • Note Offerings Filed:  
    • WFRD: Announces Closing of Senior Notes Offering

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close:

  • After Hours:
    • Trading Up: LC +28.1%, F +9%, SNBR +7.8%, ALGN +7.7%, ETD +7.1%, KLAC +3.6%
    • Trading Down: TWLO -12.7%, NTGR -7.6%, UPWK -6.4%, EBAY -5.5%, NOW -4.3%

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

S&P 500 +15 Dow Jones Industrial Average +90 NASDAQ +85 Russell 2000 +7.50. Asia lower and Europe mixed. VIX is at 18.95 from 19.03 in futures from yesterday. Gold higher, silver lower and copper higher. 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 $130.89 from $130.61 with yields at 1.539% from 1.59% yesterday morning. Bitcoin at $61,085 from $58,891 yesterday morning up +4.15% in early morning trading. As of 8:25 a.m. EDT.

Wednesday’s Action – 10/27 Close:  

  • Positive Sectors Wednesday: Communication Services
  • Negative Sectors Wednesday: Financial, Energy, Basic Materials, Industrials, Real Estate, Healthcare, Consumer Defensive
  • One Month Winners: Energy, Technology, and Real Estate of note.
  • Three Month Winners: Energy, Financials, and Technology of note.
  • Six Month Winners: Energy, Technology and Real Estate 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 mostly lower across the board and accelerated the move into the close.  TLT had a strong day. Updated 10/27 Close.

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

  • Thursday After the Close: AAPL, AMZN, SBUX, SYK, GILD, MELI, DXCM, VRTX, RSG, RMD, AJG, SGEN, FTV, HIG, VRSN, AVTR, MPWR, BIO, FE, SSNC, WDC, ZEN, EMN, LPLA, MHK, DVA, GLPI, STNE, DECK, CACC, CRSP, OHI, MSTR, STAG, SKX, CHE, COLM, TXRH, X, POWI, CUZ, EXPO, SPSC, NATI, ATUS, KMPR, AUY, LOPE, CWST, MMSI, AVT, CDNA of note.
  • Friday Before the Open: XOM, CVX, ABBV, CHTR, AON, CL, PSX, LYB, IMO, WY, FTS, GWW, CERN, CHD, SJR, WPC, CBOE, BAH, CCJ, NWL, PSXP, ATR, HUN, ROLL, LAZ, GT, SHLX, POR, CRI, PNM, ABR, B of note.

Earnings of Note This Morning:

  • Beats: SHOP +7.78, LH +1.92, COOP +1.47, ADS +1.09, NOC +0.65, GPI +0.58, AGCO +0.56, CG +0.54, FCN +0.54, SAIA +0.51, TFX +0.48, CAT +0.45, OSTK +0.32, SWK +0.30, BUD +0.28, HTZZ +0.27, WST +0.26, PBF +0.25, TAP +0.24, RS +0.22, CBRE +0.20, MRK +0.20, SNY +0.19, MDP +0.18, WEX +0.17, JHG +0.17, AMT +0.17, MCO +0.16, LKQ +0.16, WLTW +0.15, RGEN +0.14, MTLS +0.14, AOS +0.14, YUM +0.14, CBZ +0.12, CMCSA +0.12, OSK +0.12, BC +0.12, HSY +0.10, WNS +0.10, NLSN +0.09, BAX +0.08, ICE +0.07, TREE +0.07, TXT +0.07, LIN +0.07, KBR +0.06, EME +0.06, FLWS +0.06, MD +0.05, IMAX +0.05, CARR +0.05, CHKP +0.05, LECO +0.04, SAH +0.04, TPX +0.03, AB +0.03, ABMD +0.03, VC +0.03, NVT +0.02, CMCO +0.02, EXP +0.02, AVNT +0.02, COR +0.02, SIRI +0.01
  • Flat: PTEN +0.00, CLVT +0.00, HBAN +0.00, TW +0.00, KDP +0.00
  • Misses: CNX (4.37), BPMC (0.37), RDS.A (0.19), DBD (0.18), INSM (0.18), THRM (0.14), NEM (0.13), RLGY (0.12), ATI (0.10), KEX (0.09), PRLB (0.08), NVCR (0.07), IDA (0.06), PACK (0.05), XEL (0.04), MO (0.04), TROW (0.04), AEP (0.03), MDC (0.02), CPG (0.01), STM (0.01)
  • Still to Report: ALGM, ALNY, CRS, CMS, COLB, CFR, ITW, ITGR, MA, MPW, OSIS, PATK, BTU, PRFT, SNDR, SWI, SMP, TRS, VLY

Erlanger Research Advance/Decline Chart: Updated through 10/27 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: LC +30%, WOLF +16%, F +10%, PHAT +9%, ALGN +8%, MIME +8%, SNBR +8%, CYH +7%, CCS +9%, MXL +7%, UCTT +6%, SU +5%, STM +5%, ETD +5%, TYL +4.6%, KLAC +4%, TDAC +4%, MTH +3%, MC +3%, NOK +3%, CG +3%, CG +3%, OSTK +3%, ALSN +3%, INSE +3%, PI +3%, DRE +3%, EXR +3%, ASX +3%. 
  • Gap Down: BCOV -16%, TWLO -13%, NTGR -11%, RBBN -8%, UPWK -6%, FLS -6%, EBAY -6%, VWE -6%, FLEX -5%, NOVA -5%, MD -59%, CLB -4%, TDOC -4%, RPTX -4%, KREF -4%, PLXS -4%, RDS.A -4%, NGVT -4%, TROX -4%, PEGA -4%, NOW -3%, EW -3%, AGI -3%, CRVS -3%, SWK -3%, OSMT -3%, CASH -37%, SESN -3%, 

Insider Action: None of note today. No stocks sees Insider buying with dumb short selling and no smart short sellers with insider buys. 10/27 close

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Five Things To Know To Start Your Day. (Bloomberg)
  • Five Things To Know This Morning. (CNBC)
  • Democrats continue to fiddle with tax changes, latest would be a 3% surcharge on income over $10 million. Also, removes family and medical leave from the Budget Reconciliation Bill. (WSJ)
  • President Biden to announce framework of Budget Reconciliation Bill with all 50 Senate Democrats supporting Bill. (The Washington Post)
  • President Biden to meet with Progressive House Democrats to convince them to support Senate Bill noted above.
  • White House to prepare more Executive Orders on Climate Change. (CNN)
  • Covid-19 cases unchanged basically week over week at 76,944 cases with deaths down to 1,612 and hospitalizations at 46,206 from 1,765 and 51,698.
  • Treasury Secretary Yellen heads to G-20 meeting on Friday and Cop26 Climate Change Summit.
  • SEC will not approve a leveraged Bitcoin Fund. Can you say playing with dynamite? (WSJ)
  • Scientific Games (SGMS) divests Lottery Business to Brookfield Business Partners for $5.8 billion.
  • Eastman Chemical (EMN) sells Adhesives Resins Business for $1 billion.
  • Robinhood looks at Rent the Runway (RENT) IPO that took place yesterday. Also, reviews tax proposal for the “700” billionaires.

Moving Average Update:

  • Score at 76% from 93% as Industrials and SPX 5 Day MA moves to below status along with MID and RUT dipping lower. Updated 10/27 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President delivers remarks, East Room, 11:30 a.m. EDT
    • The President and The First Lady depart the White House en route Joint Base Andrews, 12:15 p.m. EDT
    • The President and The First Lady depart Joint Base Andrews en route Rome, Italy, 12:35 p.m. EDT
  • Fed Speakers:
    • None of note.

Economic:

  • Initial Jobless Claims 8:30 a.m. EDT
  • Q3 GDP (advanced) is due out at 8:30 a.m. EDT and is expected to drop to 2.4% from 6.7%.
  • September Pending Home Sales are due out at 10:00 a.m. EDT and are expected to come in at 1.0% down from 8.1%.
  • Natural Gas Report 10:30 a.m. EDT
  • KC Fed Mfg Index 11:00 a.m. EDT

M&A Activity:

  • DDD 3D Systems announces acquisition of Volumetric Biotechnologies for total purchase price of up to $400 mln
  • TROW – T. Rowe Price Group Inc. to Buy Debt-Investment Firm Oak Hill Advisors for as Much as $4.2 Billion in Cash-and-Stock Deal
  • FCFS FirstCash has entered into a definitive agreement to acquire American First Finance
  • EMN Eastman Chemical divests its Adhesives Resins Business for $1 bln

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Goldman Sachs Emerging Technology Conference
    • Jefferies Gene Therapy Editing Summit
    • UBS Global Markets COO Summit
  • Company Meetings:   (Investor/Analyst Day)  (R&D Day) (Corporate Event)  (Fireside Chat)
    • Analyst/Investor Calls: HPE, TAP, VEEV, VRAY
    • Shareholder Meeting: CGBD, PETZ
    • Intel Innovation 
  • Conferences of Note: None of note.

Upgrades & Downgrades:

Today’s Recommendations:

Wednesday’s Recommendations:

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