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"CAPIS Morning Note – 10/29/21: Futures Pullback on Large Cap Tech Earnings"

posted by CAPIS on 10/29/2021 at 8:22 am

by CAPIS

10/29/2021 at 8:22 am

Overnight Summary: Stocks are weak on poor earnings from several NASDAQ bellwethers. Asia did buck weakness and closed mixed.

Breaking News: Russian President Vladimir Putin ordered businesses and schools in Moscow to shut down until November 7 as the city hits a record number of Covid-19 deaths

Earnings Out After The Close:

  • Beats: BIO +1.23, GILD +0.88, KNSL +0.60, SM +0.60, CHE +0.57, HLI +0.54, X +0.43, HIG +0.41, ENVA +0.39, HTH +0.33, DXCM +0.24, FTDR +0.23, COLM +0.23, MERC +0.22, SKYW +0.22, HUBG +0.18, POLY +0.16, RMD +0.16, MHK +0.15, VCRA +0.13, AX +0.13, AVT +0.13, SSNC +0.12, DVA +0.10, MMSI +0.08, TFII +0.07, CWST +0.07, RSG +0.06, MPWR +0.06, TEAM +0.06, NXGN +0.06, POWI +0.06, WDC +0.05, EXPO +0.05, OPK +0.05, CDNA +0.05, SPSC +0.05, RNST +0.05, GLPI +0.04, CVA +0.04, AVTR +0.03, NATI +0.03, FE +0.03, STAG +0.02, ABCB +0.02, HTGC +0.01, FTV +0.01, COHU +0.01, FHI +0.01, OFC +0.01, CUZ +0.01
  • Flat: PTCT +0.00, ZEN +0.00, WRE +0.00, ACHC +0.00, ATR +0.00, SBUX +0.00, AAPL +0.00, EMN +0.00
  • Misses: MSTR (4.85), AMZN (2.84), SGEN (1.04), KMPR (0.98), FTAI (0.46), LPLA (0.46), MGRC (0.27), DECK (0.24), CPT (0.19), SPNE (0.16), WERN (0.16), EIG (0.15), DRQ (0.15), LTC (0.12), TVTX (0.11), SYK (0.08), TXRH (0.06), TEX (0.06), SKX (0.05), VRSN (0.04), AUY (0.04), LMAT (0.03), LOPE (0.03), PEB (0.01), AJG (0.01)

Capital Raises:

  • IPOs Priced or News:
    • AIRS: Pricing of Initial Public Offering .. 7Million shares @$11
    • AURA: Pricing of Initial Public Offering.. 5,400,000 shares @$14
    • BFRI: Pricing of $18.0 Million Initial Public Offering.. 3,600,000 units @$5
    • TRDA: Entrada Therapeutics Pricing of Upsized Initial Public Offering.. 9,075,000 shares @$20
    • UDMY: Udemy Pricing of Initial Public Offering 14.5Million @$29 at high end of range $27 to $29.
    • SONX: Sonendo Pricing of Initial Public Offering 7.8 million@$12 at low end of range of $15 t0 $17.
    • HRT: HireRight Holdings  Pricing of Initial Public Offering @$19 below range of $21 to $24.
  • New SPACs launchedTMTS Spartacus Acquisition Corporation closes combination with NextNav; to trade under symbol “NN” starting October 29
  • Secondaries Priced: FDMT  of note.
  • Notes Priced of note:
    • AFCG: Prices Offering of 5.750% Senior Notes Due 2027
    • ARCC Ares Capital Corporation Prices Public Offering of $700.0 Million 3.200% Unsecured Notes Due 2031
  • Common Stock filings/NotesENJY
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ROP: Filed Form S-3ASR .. Mixed Shelf
    • FLL: Filed Form S-3 .. $500Million Mixed Shelf
  • 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:

  • After Hours:
    • Trading Up: XELA +16%, ATEN+11%,TEAM+9%,X+7%,AVT+4%,SM+4%,RILY+4%,CWST+3%,TWNT +3%, ACHC+3%,VCRA+3%,NATI+3%,NXGN+3%
    • Trading Down: ZEN -19%, MNTV -11%, POLY -10%, WDC -10%, DVA -7%, POWI -6%, COHU -6%, WERN -5%, FTDR -4%, SPNE -4%, LITE -4%, AAPL -4%, SBUX -4%, AMZN3%, MPWR -3%, SYK -3%, TEX -3%, SSNC -3% 

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

S&P 500 -22  Dow Jones Industrial Average -39  NASDAQ -131  Russell 2000 -2 . Asia mixed and Europe lower. VIX is at 19.30 from 18.95 in futures from yesterday. Gold and silver lower with copper flat. WTI Crude Oil higher and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.47 from $130.89 with yields at 1.603% from 1.539% yesterday morning. Bitcoin at $61,043 from $61,085 yesterday morning up +0.78% in early morning trading. As of 8:15 a.m. EDT.

Thursday’s Action – 10/28 Close:  

  • Positive Sectors Thursday: Consumer Cyclical, Technology, Industrials, Real Estate, Healthcare, Consumer Defensive, Financials, Utilities, Basic Materials
  • Negative Sectors Thursday: none of note.
  • One Month Winners: Energy, Technology, and Consumer Cyclicals 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 Technology of note.
  • Year to Date Winners: Energy, Financials, and Communication Services  of note.

Stocks were higher across the board with Small Cap leading the charge higher!  Commodities were mixed but UNG pulled back 5.72%. Updated 10/28 Close.

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

  • Friday After the Close: none of note.
  • Monday Before the Open: PCG, ON, CNA, TKR, JELD, XENT, OIS of note.

Earnings of Note This Morning:

  • Beats: PSX +1.26, WY +0.81, CVX +0.77, CHTR +0.70, GWW +0.34, CRI +0.20, BAH +0.18, HUN +0.16, PNM +0.15, SRJ +0.15, FTS +0.12, ABBV +0.11, CHD +0.09, ABR+0.08, WPC +0.08, XOM +0.06, IMGN +0.06, B +0.05, NWL +0.04, CERN +0.04, AON +0.04, LAZ +0.03, LHX +0.03, PSXP +0.02, PFS +0.02, CBOE +0.02, WETF +0.01, CL +0.01
  • Flat: IMO
  • Misses: RCL (0.70), LYB (0.48), CCJ (0.10), POR (0.07), SHLX (0.03), SLCA (0.02)
  • Still to Report: none

Erlanger Research Advance/Decline Chart: Updated through 10/28 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ATEN +10%, VCRA +9%, XELA +8%, TWNT +8%, X +8%, TEAM +8%, RILY +6%, FTDR +5%, NATI +5%, ACHC +4%, HLI +4%, AVT +3%, CWST +3%, 
  • Gap Down: ZEN -20%, MNTV -15%, WDC -11%, POLY -11%, FDMT -10%, WERN -7%, DVA -6%, COHU -5%, AMZN -5%, SBUX -5%, FLR -5%, NWG -5%, MPWR -4%, POWI -4%, AAPL -4%, MGI -4%, TEX -3%, SYK -3%, ETSY -3%

Insider Action: None of note today. No stocks sees Insider buying with dumb short selling and no smart short sellers with insider buys. 10/28 close

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

Moving Average Update:

  • Score at 100% from 76% as everything resets to above after a strong day. Updated 10/28 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief (9:45 AM Local), Villa Taverna, Rome, Italy, 3:45 a.m. EDT
    • The President and The First Lady visit Vatican City and have an audience with His Holiness Pope Francis (12:00 PM Local), Vatican City, 6:00 a.m. EDT
    • The President holds a bilateral meeting with His Eminence Cardinal Pietro Parolin, Secretary of State (12:55 PM Local), Vatican City, 6:55 a.m. EDT
    • The President holds a bilateral meeting with His Excellency Sergio Mattarella, President of the Italian Republic (1:55 PM Local), Quirinale Palace, Rome, Italy, 7:55 a.m. EDT
    • The President holds a bilateral meeting with His Excellency Mario Draghi, Prime Minister of the Italian Republic (3:15 PM Local), Chigi Palace, Rome, Italy, 9:15 a.m. EDT
    • The President holds a bilateral meeting with His Excellency Emmanuel Macron, President of the French Republic (4:15 PM Local), Palazzo Farnese, Rome, Italy, 10:15 a.m. EDT
  • Fed Speakers:
    • None of note.

Economic:

  • Employment Cost Index 8:30 a.m. EDT
  • September Personal Income is due out at 8:30 a.m. EDT and is expected to fall to -0.2% from 0.2%.
  • September PCE Prices – Core is expected to fall to 0.2% from 0.3%.
  • October Chicago PMI is due out at 9:45 a.m. EDT and is expected to come in at 63.1 from 64.7.
  • October University of Michigan Consumer Sentiment (final) is expected to remain at 71.4.
  • Baker Hughes Rig Count 1:00 p.m. EDT
  • Farm Prices 3:00 p.m. EDT

M&A Activity:

  • ATVI Activision Acquires Mobile Game Developer Digital Legends
  • TWNT – Tailwind Two Acquisition Corp. Signs Definitive Agreement with Terran Orbital, the Global Leader in the Development and Innovation of Small Satellites, in a Transaction Valued at $1.58 Billion- $345 million cash-in-trust from Tailwind Two
  • ECL Ecolab announces agreement to acquire Purolite for approx. $3.7 bln in cash
  • MNTV Momentive Global entered into definitive agreement to be acquired by Zendesk (ZEN)

Meeting & Conferences of Note:

  • Sellside Conferences: None of note
  • Company Meetings:   ALGN JWA JWB  (Investor/Analyst Day) ECL (Conference Call) HCMLY (Update)

Upgrades & Downgrades:

Today’s Recommendations:

Thursday’s Recommendations:

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