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09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 12/02/21: Futures Higher But Losing Steam With NASDAQ Lower As Apple Tells Suppliers iPhone Demand Slows"

posted by CAPIS on 12/02/2021 at 8:19 am

by CAPIS

12/02/2021 at 8:19 am

Overnight Summary: The yo-yo continues.  The S&P 500 is higher after finding support at 4500. Asia was lower led by Japan, again, and China over concerns companies would not be allowed to go public on foreign exchanges. European is lower as it follows Wednesday U.S. trading.

Breaking News:  China to allow Boeing (BA) 737 Max Jets to return to flight in China.

Earnings Out After The Close:

  • Beats: PVH +0.61, SPLK +0.16, OKTA +0.16, FIVE +0.14, VEEV +0.09, CRWD +0.07, ESTC +0.07, AI +0.06, DSGX +0.05, SNPS +0.03, SMTC +0.02, NCNO +0.02, ZUO +0.01
  • Flat: None
  • Misses: SNOW (0.45)

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched: None of note.
  • Secondaries Priced:
    • IMGN: Pricing of Upsized Public Offering of Common Stock .. Priced @$6.60
    • ISPC: Closing of Approximately $21 Million Private Placement .. Priced @$12
    • MEIP: Pricing of Public Offering of Common Stock.. 17,500,000 shares @$2.60
    • WB: Pricing of Public Offering of Common Stock..11,000,000 shares @ $35.01
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • AEI: Filed Form S-1.. 23,841,059 shares of Common Stock and Pre-funded Warrants
    • CNTX: $31.25 Million Private Placement
    • DBGI: Filed Form S-1.. 2,500,000 Shares of Common Stock
    • NBY: Filed Form S-1.. 37,500,000 Shares of Common Stock
    • TANH: Proposed Underwritten Public Offering of Common Shares.. Aegis bookmanager
  • 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:
    • AIRC: Filed Form S-3ASR.. Mixed Security Shelf
    • SPCB: Filed Form F-3.. $10Million Mixed Shelf
  • Convertible Offering & Notes Filed
    • MMC: Pricing of $750 Million Senior Notes Offering
  • 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: SNOW +13%, FIVE +8%, ZUO +7%, CLVT +3%
    • Trading Down: KPLT -13%, ESTC -7%,  WE -5%, VEEV -5%, AIRC -5%,
  • News Items:
    • Stocks making the biggest moves after hours: SQ, SNOW, FIVE (CNBC)
    • Chevron (CVX) Announces $15 Billion Capital and Exploratory Budget for 2022
    • BOK Financial (BOKF) CEO Steve Bradshaw to retire on 12/31
    • Walt Disney (DIS) elects Susan Arnold as Chairman of the Board as of year end
    • WeWork (WE) discloses material weakness in internal control over financial reporting, to amend financial statements — 8K filing
    • Costco (COST) November Sales rose 9.2% with Net Sales up 15.7% for the year
    • Wabash National (WNC) sees backlog grow to $2.3 billion
    • J.M. Smucker (SJM) sells its private label dry pet food business for approx. $33 million in cash AND lowers 2022 revenue guidance but affirms earnings guidance
    • Exact Sciences (EXAS) highlights publication of RxPNDER trial results in The New England Journal of Medicine
    • Apple (AAPL) trading slightly lower after report autos engineer Michael Schwekutsch is leaving the company to join electric aviation startup Archer, according to CNBC
  • Exchange/Listing News: 
    • Square, Inc. (SQ) Changes Name to Block but symbol to remain the same
  • Buyback Announcements:
    • Murphy USA Inc. (MUSA) Announces $1 Billion Repurchase Program
    • PVH CORP (PVH) repurchased $149mm of common stock
    • Chevron (CVX) raises Share Buyback to $3 to $5 billion per year versus $2 to $3 billion per year
    • Chesapeake Energy (CHK) authorizes $1 billion repurchase of common stock and/or warrants
    • JBT
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • EastGroup (EGP) raises dividend to $1.10 from $0.90
    • Quanta Services (PWR) ups dividend to $0.07 from $0.06
    • PS Business Parks, Inc. (PSB) Announces Special Dividend of $4.60 to Be Paid in the Fourth Quarter 2021
    • PVH CORP (PVH) reinstated the cash dividend
    • GEO Approves plan to terminate its Real Estate Investment Trust election and become a taxable C corporation; Adjusts FY21 outlook, to discontinue quarterly dividend

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

S&P 500 +15 Dow Jones Industrial Average +215 NASDAQ -16 Russell 2000 +15.18. Asia and Europe trading mixed. VIX is at 26.15 from 23.55 in futures from Tuesday. Gold is lower with Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.84 from $130.47  with yields at 1.419% from 1.483% on Wednesday morning. Bitcoin at $56,578 from $57,327 on Wednesday morning and this morning down -0.72%. As of 8:15 a.m. EST.

Wednesday’s Action – 12/01 Close:  

  • Daily Positive Sectors: ummm…Utilities….if you call 0.0% positive on a day like this!
  • Daily Negative Sectors: Pretty much all….again!: Communication Services, Consumer Defensive, Industrials, Financial, Real Estate, Energy, Basic Materials, Consumer Cyclical, Healthcare, Technology.
  • One Month Winners: none of note.
  • Three Month Winners: Energy, Consumer Cyclical, and Technology of note.
  • Six Month Winners: Technology, Communication Services, Consumer Cyclical of note.
  • Twelve Month Winners: Energy, Financials, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Communication Services  of note.

Rinse-Repeat.  All indexes down 1% with Russell leading the charge down 2.34%.  TLT up again 0.60% to 152.41.  Oil and Natural Gas pulled back again with Natrual Gas taking it on the chin with 7.89% to the downside. Updated 12/01 close.

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

  • Thursday After the Close: MRVL, DOCU, ASAN, ULTA, COO, GWRE, SMAR, OLLI, VRNT, DOMO, YEXT, ZUMZ, SWBI, OOMA, JOAN of note.
  • Friday Before the Open: BMO, BIG, HIBB, GCO of note.

Earnings of Note This Morning:

  • Beats: SIG +0.61, GMS +0.40, SCWX +0.07, DG +0.06
  • Flat: none
  • Misses: CM (0.74), TD (0.35)
  • Still to Report: KR

Erlanger Research Advance/Decline Chart: Updated through 12/01 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: SNOW 15%, FIVE 13%, HGEN 9%, VIR 9%, OKTA 6%, IPHA 5%, ZUO 5%, GBX 5%, TRIT 4%, RDS.A 4%, AI 4%, CRWD 4%, WNC 4%, SWIR 3%, SPLK 3%, CLVT 3%
    • Gap Down: KPLT -10%, VBIV -7%, SMTC -7%, ESTC -5%, VEEV -5%, MEIP -3%

Insider Action: DAL sees Insider buying with dumb short selling and NAUT, MPLN has smart short sellers with insider buys. 11/29 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)
  • Stocks Making The Biggest Moves: SNOW, BA, AAPL, SIG, FIVE, OKTA  (CNBC)
  • Covid-19 cases come in at 119,604 from 100,636 cases a week ago.
  • White House announces international travelers must be vaccinated and test within one day of departure.
  • OPEC+ Meeting sentiment is no change to production schedule. (CNBC)
  • Government shutdown ahead over the weekend? Senate Minority Leader McConnell says no shutdown. (CNN)
  • Germany to tighten restrictions on unvaccinated people. (DW)
  • Dr. Fauci says not in favor of vaccine requirements for domestic air travelers. (NYT)
  • Apple (AAPL) Tells Suppliers iPhone Demand Has Slowed As Holidays Near (Bloomberg)
  • Coinbase (COIN) to testify next Wednesday before the House. (NY Post)
  • Could be new links to blood clots and AstraZenaca (AZN). (Bloomberg)
  • Robinhood looks at SpaceX and potential bankruptcy. Black Friday sales were weak on early sales and Buy Now Pay Later.

Moving Average Update:

  • The score declines to 16% from 26%. Large Caps are the last stand with OEX and NDX still above 50 and 200 day moving averages. Updated 12/01 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 11:00 a.m. EST
    • The President departs the South Lawn en route Walter Reed National Military Medical Center, 12:45 p.m. EST
    • The President visits the National Institutes of Health, 1:15 p.m. EST
    • The President delivers remarks on his Administration’s plan to continue the fight against COVID-19 as we enter the winter months and face the Omicron variant, 1:40 p.m. EST
    • The President departs Walter Reed National Military Medical Center en route the White House, 2:25 p.m. EST
    • The First Family and The Second Family attend the National Christmas Tree Lighting; The President and the Secretary of the Interior deliver remarks, 5:30 p.m. EST

Economic

  • Challenger Job Cut 7:30 a.m. EST
  • Initial Jobless Claims 8:30 a.m. EST
  • EIA Natural Gas Report 10:30 a.m. EST 

Federal Reserve Speakers:

  • Federal Reserve Atlanta President Raphael Bostic 8:30 a.m. EST
  • Federal Research Board of Governors Randal Quarles 11:00 a.m. EST
  • Federal Reserve Richmond President Thomas Barkin 11:30 a.m. EST
  • Federal Reserve San Francisco President Mary Daly 11:30 a.m. EST

M&A Activity

  • Amphenol Corporation (APH) Announces Acquisition of Halo Technology and Closing of Sale of MTS Test & Simulation Business
  • Newpark Resources (NR) Announces Repayment Of Convertible Bonds And Acquisition Of Access Solutions Business
  • SiteOne Landscape Supply (SITE) acquires Seffner Rock & Gravel
  • Shell (RDS.A) completes sale of its Permian business to ConocoPhillips (COP)
  • Univar Solutions (UNVR) announces acquisition of Sweetmix
  • Worthington Industries (WOR) Acquires Tempel Steel Company

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Clean Tech Conference 2021 (12/02-12/03)
    • Canaccord Genuity 2nd Annual AgriFood Tech Innovations Forum 2021
    • D.A. Davidson FinTech & Payments Spotlight Conference 2021
    • Goldman Sachs Global Automotive Conference 2021 (12/02-12/03)
    • Stifel US Industrials Summit 2021 (12/02-12/03)
    • Wolfe Research Inaugural Insurance Forum 2021

Previously Posted and Ongoing Conferences:

      • Barclays Eat, Sleep, Play Conference 2021 (12/01-12/02)
      • Cowen 2021 Energy Summit (12/01-12/03)
      • Credit Suisse 9th Annual Industrials Conference 2021 (12/01-12/03)
      • Jefferies Retail & Brands Summit 2021 (12/01/-12/02)
      • Jefferies Alternative Protein & Related ESG Summit 2021 (12/01/-12/02)
      • Bank of America Securities Leveraged Finance Conference 2021 (11/30-12/02)
      • Credit Suisse 25th Annual Technology, Media & Telecom Conference (11/29-12/02)
      • Evercore ISI 4th Annual HealthCONx Conference 2021 (11/29-12/03)
      • KeyBanc Summit @ AWS Re:Invent (11/29-12/03)
      • Morgan Stanley Global Consumer and Retail Conference 2021 (11/30-12/02)
      • Piper Sandler 33rd Annual Healthcare Conference (11/29-12/02)
      • Scotiabank Mining Conference 2021 11/30-12/02)
      • Stephens Investment Conference (11/29-12/03)
      • Wells Fargo 5th Annual TMT Summit 2021 (11/30-12/02)
  • Company Meetings:
    • Fireside Chat: HRI
  • Investor/Analyst Day: ACHV, CBT, DCTH, HBNC, HZNP, NMIH, UGI
    • The Benchmark Company 10th Annual Discovery One on One Investor Conference 2021 (SEEL, SLRX, LPTH, BSGM, OSS, ATHE, LGIQ, SNCR, EGAN, BIOL, HUMA, DHX, NEPH, SEED, COMS, IPA, RESN, RIBT, INTZ, CA:SLHG, MTBC, VYNT, VRAR, STRR, IONM, IPWR, VERB, MYMD)
  • Update: HGEN, SUNS, SLRC
  • R&D Day: RKLB
  • Conference Call: None of note.
  • Company Event: NVS
  • Industry Meetings: None of note.

Previously Posted and Ongoing Conferences:

      • 22nd Annual Meeting of the Society of Urologic Oncology (12/01-12/03)
      • Nasdaq Investor Conference 2021 (11/30-12/03)
      • 15th Annual Global Wellness Summit 2021 (11/30-12/03)
      • World Antiviral Congress 2021 (11/30-12/02)

Top Tier Sell-side Upgrades & Downgrades:

The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Wednesday’s Upgrades and Downgrades:

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