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09.26.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 12/07/21: Futures El Fuego – Omicron Risk Fades"

posted by CAPIS on 12/07/2021 at 8:22 am

by CAPIS

12/07/2021 at 8:22 am

Overnight Summary: Markets are acting like Omicron is no longer a risk to society. As such, the bounce off Friday’s low continues. In China, the PBOC reduced the reserve requirement for banks. On the other side of concern over Omicron, France shut down nightclubs into the end of the year. at 7:20 a.m. EST the S&P 500 is up +60 or 1.31% and near its morning high at 4650.

Breaking News: American Airline (AAL) Chairman Doug Parker and CEO Robert Isom interviewed on CNBC and note – demand rising for flights, business travel back to pre-pandemic levels next year but international travel being impacted by testing requirements.

Earnings Out After The Close:

  • Beats: COUP +0.29, MDB+0.27, SUMO +0.02
  • Flat: HQY
  • Misses: none

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched: CBRE Acquisition Holdings (CBAH) to merge with Altus Power effective 12/9. Oaktree Acquisition (OACB) to merger with Alvotech.
  • Secondaries Priced:
    • SI: Prices Public Offering of Class A Common Stock 3.31Million @$145.. GS, JPM and Keefe bookmanager
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ADIL: Filed Form S-3.. 200,000 Shares of Common Stock
    • GLPI: Public Offering of 7,700,000 Shares of Common Stock.. BAC, WFC, Citi and Mizuho bookmanagers
    • SI: Public Offering of $400 million of Class A shares
    • BHG: $750 Million Capital Raise to Support Continued Growth
    • MEIP: Closing of Public Offering of Common Stock
    • OWL: Filed Form 424B3.. 26,717,377 Class A Shares
  • 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:
    • OTEX: Filed Form S-3ASR.. Mixed Shelf
    • TRMD: Filed Form S-3.. $250,000,000 Mixed Shelf
  • Convertible Offering & Notes Filed
    • BW: Proposed Public Offering of $125 Million of Senior Notes Due 2026
  • 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: ACAD +24, MDB +18, TSHA +11, BHG +9%, DWAC +8%, INTC +7%
    • Trading Down: HQY -22, GTLB -10%, SI +7%
  • News Items:
    • Stocks making the biggest moves after hours:  (CNBC)
    • Intel (INTC) to List Shares in Mobileye Unit which it took private (WSJ)
    • Tesla (TSLA) Is Replacing Faulty Autopilot Cameras In Some Cars (CNBC)
    • ACADIA Pharmaceuticals (ACAD) announces positive top-line results from its Phase III Lavendar trial
    • Amgen (AMGN) to announce new data from its hematology pipeline and marketed portfolio to be presented at American Society of Hematology Annual Meeting (12/11-14)
    • DWAC –  GOP Rep. Devin Nunes resigns from Congress to become CEO of Trump’s media company (CNBC)
    • Disney Vacation Club and Marriott Vacations’ Interval International (VAC) announces new affiliation agreement
    • Callaway Golf Co. (ELY) CFO buys $386.9K in stock
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Digital World Acquisition (DWAC) announces the Rep. Devin Nunes (R-CA) to become CEO of the Trump SPAC
    • Breeze Holdings Acquisition Corp (BREZ)  receives Nasdaq notice of non-compliance
    • Glacier Bancorp, Inc. (GBCI) Announces Transfer Of Common Stock Listing To The New York Stock Exchange on 12/17
    • Lion Electric (LEV) Added to the S&P/TSX Composite Index
    • Raymond James Ltd. (RJF) Chairman and CEO of Canadian subsidiary Paul Allison Stepping Down
    • Raymond James Ltd. (RJF) President John Carson intends to retire at year end.
    • DouYu International Holdings Ltd. ADR (DOYU) CEO Wwenming Zhang resigns 
  • Buyback Announcements:
    • Eastman (EMN) announces $500 million share repurchase plan
    • Hillenbrand (HI) Announces New $300 Million Share Repurchase Program
    • Kinder Morgan (KMI) announces share repurchase of up to $750 million.
    • LHC Group (LHCG) Board of Directors authorizes $250 million share repurchase program
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • Aris Water Solutions, Inc. (ARIS) Initiates Quarterly Cash Dividend of $0.07 per share
    • Hanover Insurance (THG) increase dividend to $0.75%/share

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

S&P 500 +59 Dow Jones Industrial Average +346 NASDAQ +282 Russell 2000 +33.82. Asia and Europe higher. VIX is at 24.10 from 27.97 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.84 from $130.47  with yields at 1.448% from 1.39% yesterday morning. Bitcoin at $51,049 from $48,639 yesterday morning and this morning up +3.96%. As of 8:15 a.m. EST.

Monday’s Action – 12/06 Close:  

  • Daily Positive Sectors: Basic Materials, Energy, Real Estate, Consumer Cyclical, Industrials, Utilities, Consumer Defensive, Financial, Communication Services, Technology, Healthcare of note.
  • Daily Negative Sectors: None of note.
  • One Month Winners: None of note.
  • Three Month Winners: Energy of note.
  • Six Month Winners: Technology, Real Estate, Consumer Cyclical of note.
  • Twelve Month Winners: Energy, Financials, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Indexes up as fears of Omicron fade.  Russell 2000 leads the charge to a year end rally with a +2.05% return.  TLT pulls back -1.37% and UNG down almost 10%.  Updated 12/06 close.

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

  • Tuesday After the Close: TOL, CASY, SFIX, AVAV, BASE of note.
  • Wednesday Before the Open: CPB, THO, KFY, WEBR, UNFI, LOVE, PLAB, VRA of note.

Earnings of Note This Morning:

  • Beats: AZO +4.61, DBI +0.30
  • Flat: CONN
  • Misses: none
  • Still to Report: none

Erlanger Research Advance/Decline Chart: Updated through 12/06 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: ACAD +15%, BHG +12%, KULR +12%, VIR +11%, SPIR +10%, TSHA +10%, INTC +9%, SCYX +8%, DWAC +5%, TSLA +4%, BB +3%
    • Gap Down: SI -5%, GLPI -3%

Insider Action: PYPL sees Insider buying with dumb short selling and no stock 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: AAL, AZO, GSK-GB, VIR, TSLA, DBI  (CNBC)
  • Covid cases not reported on Tuesdays as limited data
  • South Africa finds that Omicron cases are showing less severe disease compared to other variants, but more data is needed. (New York Times)
  • Russia’s Kremlin: President Putin Plans To Discuss ‘Red Lines’ i.e. cut off from international financial system with President Biden – Not Expecting Breakthroughs From Talks.  Call 10 a.m. EST. (CNBC)
  • Omicron Is Fast Moving, but Perhaps Less Severe, Early Reports Suggest (New York Times)
  • Senate Republicans reject the Democrats idea to attach the National Defense Authorization Act to debt ceiling. (Politico)
  • Apple (AAPL) being investigated for antitrust violations against Roblox (RBLX). (The Information)
  • Tesla (TSLA) chief Elon Musk Comes Out Against Federal Electric-Vehicle Spending (Wall Street Journal)
  • Omicron Sends Bank Stocks Seesawing (Wall Street Journal)
  • Toyota Motor Corp (TM) to build $1.29 billion EV battery plant in North Carolina, create 1,750 jobs (CNBC)
  • US Treasury Secretary Yellen:
    • The short labor supply is a puzzling issue.
    • The labor situation is out of the ordinary; The high rate of quitting points to a tight labor market.
    • Some shortages likely to take a few years to solve.
    • Inflation is the main worry today.
  • Robinhood looks at the Chinese Great Delisting –Didi (DIDI) and others to follow who do not meet audit NYSE requirements. DoorDash (DASH) launches ultrafast delivery in NYC but at what price?

Moving Average Update:

  • The score greatly improves to 46% from 26%. Updated 12/06 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 8:30 a.m. EST
    • The President holds a secure video call with President Vladimir Putin of Russia, 10:00 a.m. EST
    • Press Briefing by White House COVID-19 Response Team and public health officials, 12:30 p.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 2:00 p.m. EST

Economic

  • Productivity and Costs 8:30 a.m. EST
  • Int. Trade in Goods 8:30 a.m. EST
  • Redbook Sales 8:55 a.m. EST
  • Consumer Credit 3:00 p.m. EST
  • API Crude Oil Data 4:30 p.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Commercial Metals (CMC) to buy TAC Acquisition Corp for $550 million.
  • Mimecast (MIME) to go private with Permira at $80 a share, closed at $75.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Gas Utility Conference 2021
    • BMO Capital Markets Growth & ESG Conference 2021 (12/07-12/08)
    • Citi Global Consumer Conference 2021 (12/07-12/09)
    • Goldman Sachs U.S. Financial Services Conference 2021 (12/07-12/09)
    • Morgan Stanley 4th Annual Space Summit 2021
    • Oppenheimer Imagine AI + Healthcare Investor Summit 2021
    • Truist Securities 3rd Annual Industrials & Services Summit 2021
    • Wells Fargo Midstream, Utility & Renewables Symposium 2021 (12/07-12/09)
      • Previously Posted and Ongoing Conferences:
        • Bank of America Home Care Conference (12/06-12/07)
        • Capital One 16th Annual Energy Conference (12/06-12/08)
        • Credit Suisse Climate Symposium (12/06-12/07)
        • HSBC Real Estate Conference (12/06-12/10)
        • JMP Hematology and Oncology Summit (12/06-12/07)
        • KBW Innovation in Finance Conference (12/06-12/07)
        • Raymond James Technology Conference (12/06-12/08)
        • UBS Global Telecoms, Media, Technology Virtual Conference (12/06-12/08)
  • Company Meetings: CO
    • Fireside Chat: None of note.
  • Investor/Analyst Day: ARBE, BHG, BLDR, EMN, ERIC, ITI, LIVN, MDXG, MTOR, NMRK
  • Update: ERIC
  • R&D Day: ACRS, CGTX, IDYA, MGTX
  • Conference Call: None of note.
  • Company Event: ABB
  • Industry Meetings:
    • American Association for Cancer Research AACR San Antonio Breast Cancer Symposium SABCS 2021 (12/07-12/10)
    • Advanced Automotive Battery Conference 2021 (12/07-12/09)
    • Future Of Cloud and Digital Infrastructure Summit 2021 (12/07-12/08)
    • SEMICON West 2021 (12/07-12/09)
    • 32nd International Symposium on ALS/MND 2021 (12/07-12/10)
    • 15th Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum 2021 (12/07-12/09)

Previously Posted and Ongoing Conferences:

      • Annual Meeting of the American College of Neuropsychopharmacology 2021 (12/05-12/08)
      • American Epilepsy Society AES Annual Meeting 2021 (12/03-12/07)

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:

Monday’s Upgrades and Downgrades:

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