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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 – 12/10/21: Inflation Surged 6.8%, Futures Up"

posted by CAPIS on 12/10/2021 at 8:55 am

by CAPIS

12/10/2021 at 8:55 am

Overnight Summary:  S&P 500 Futures were flat until about 1:00 a.m. EST but have been in rally mode since and are now up to 4677 which is a gain of +17 net +10 with Fair Value which is rather large at 7:20 a.m. EST.  Asian markets were mixed and Europe was a struggle heading into the weekend. UK GDP came in at 0.1% against 0.6% estimate.

Breaking News: Moderna (MRNA) updates interim data from Phase I seasonal flu candidate as Phase II is fully enrolled. Stock falls on this news by -8%.

Earnings Out After The Close:

  • Beats: COST +0.32, LULU +0.22, MTN +0.15, ORCL +0.10, CMTL +0.07, AVGO +0.04, LESL +0.01
  • Flat: none
  • Misses: AOUT (0.18), MESA (0.18), CXM (0.06), CHWY (0.04)

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • Altus Power combines with CBRE Acquisition Holdings, Inc. (CBAH) and will trade under symbol “AMPS” starting today.
    • CC Neuberger Principal Holdings II (PRPB) to merge with Getty Images. Conference Call at 8:30 a.m. EST to discuss.
    • North Mountain Merger Corp (NMMC) to merge with Corcentric.
  • Secondaries Priced:
    • BSVN: Pricing of Secondary Offering – 1 million shares @$22.
  • Notes Priced of note:
    • SSSS: Prices Public Offering of $70 million 6.00% Notes Due 2026.
    • Lucid Motors USA (LCID) announced the pricing of its offering of $1.75 billion aggregate principal amount of 1.25% convertible senior notes due 2026.
  • Common Stock filings/Notes:
    • Eneti Inc. (NETI) Announces Purchase of Common Shares by the President of the Company.
    • BTTX: Filed Form 424B3.. Up to 20,406,908 Shares of Common Stock.
    • CCNC: Proposed Underwritten Public Offering of Common Stock and Warrants.. Aegis bookmanager.
    • NYMX: Filed Form F-3.. $25 Million Common Shares, Debt Securities.
    • SI: Closing of Public Offering of Class A Common Stock.
    • KTTA: Filed Form S-1.. 17,710,000 Shares of Common Stock Offered by the Selling Stockholders.
  • 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:
    • BK: Filed Form S-3ASR Mixed Shelf Offering.
    • SNA: Filed Form S-3ASR Mixed Shelf Offering.
  • Convertible Offering & Notes Filed
    • LAC: Closes Over-Allotment on Convertible 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: AI +20%, ORCL +10%, AVGO +6%, BTG +6%, HALO +6%, INTT +5%, CXM +3%,
    • Trading Down: AOUT -19%, ANGN -19%, EVBG -18%, MESA -13%, CHWY -7%, MTN -5%, IMUX -5%, FIZZ -5%
  • News Items:
    • Stocks making the biggest moves after hours: ORCL, CHWY, AVGO, LULU, COST  (CNBC)
    • Department of Defense Awards C3 AI (AI) $500 Million Agreement.
    • Mesa Air (MESA) expects that Covid-19 issues will impact the next two quarters.
    • Microsoft (MSFT) quietly told Apple (AAPL) it was willing to turn big Xbox-exclusive games into iPhone apps. (The Verge)
    • Lululemon Athletica (LULU) on earnings call lowers revenue guidance on MIRROR to $125 to $130 million due to supply chain issues.
    • Starbucks (SBUX) Workers at Buffalo-Area Store Vote in Favor of Unionizing. (Wall Street Journal)
    • Moderna (MRNA) to Host Conference Call on Phase 1 Interim Analysis for mRNA Flu Vaccine on Friday, December 10.
    • Assets Under Management for November – IVZ to $1.572 Billion, AB to $759 Billion, APAM $169 Billion, BEN to $1.546 Trillion, LAZ to  $267.4 Billion.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Everbridge (EVBG) CEO David Meridith to resign and company reiterates guidance.
    • Sun Life (SLF) Bill Anderson retires as Chair in May 2022 and will be replaced by Scott Powers.
    • FIGS (FIGS) Announces Retirement of Chief Financial Officer, Jeffrey Lawrence; FIGS’ Longtime Senior Vice President of Finance and Strategy, Daniella Turenshine, Appointed as Chief Financial Officer.
    • Wingstop (WING) CEO sold shares worth $3.3 million.
  • Buyback Announcements:
    • American Outdoor Brands (AOUT) Board of Directors Approves $15 Million Share Repurchase Program.
    • Broadcom Inc. (AVGO) Announces $10 Billion Share Repurchase Authorization.
    • Crown Holdings, Inc. (CCK) Authorizes $3.0 Billion Of Share Repurchases.
    • C.H. Robinson (CHRW) Increases Share Repurchase Authorization by 20 Million.
    • Halozyme (HALO) announces $750 million three-year share repurchase program.
    • Kforce Inc. (KFRC:) entered into a corporate stock repurchase plan, which allows the Firm to repurchase outstanding common stock under a share repurchase program authorized by the Firm’s Board of Directors.
    • Leslie’s (LESL) announces $300 million share repurchase program.
    • Vale Resorts (MTN) declares $0.88 per share of common stock dividend.
    • Orchid Island Capital (ORC) Announces December 2021 monthly dividend, November 30, 2021 and increase in Stock Repurchase Program.
    • Oracle (ORCL) increases share repurchase program by $10 billion.
    • Waste Management (WM) authorizes repurchase of up to $1.5 billion in common stock.
    • Zumiez (ZUMZ) discloses repurchase of $150 million in common stock.
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • Amerant Bancorp (AMTB) announces $0.06 per share dividend.
    • Broadcom Inc. (AVGO) increases quarterly dividend to $4.10 per share, a 14% increase.
    • CenterPoint (CNP) increases dividend to $0.17 per share, an 8% increase.
    • Claros Mortgage Trust (CMTG) announces dividend of $0.37 per share of common stock.
    • C.H. Robinson (CHRW) Increases Quarterly Cash Dividend.
    • Edison (EIX) declared increase in quarterly stock dividend to $0.70.
    • Erie Indemnity (ERIE) Approves Management Fee Rate and Dividend Increase to $1.11 from $1.035.
    • Lamer Advertising (LAMR) special cash dividend of $0.50 per share.
    • TE Connectivity (TEL) increases quarterly dividend by $0.06 to $0.56 per share, a 12% increase.
    • Utz Brands (UTZ) increases quarterly dividend by +0.004 to $0.054 per share.
    • Waste Management (WM) increase quarterly dividend to $0.65 per share, a 13% increase.

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

S&P 500 +8 Dow Jones Industrial Average +36 NASDAQ +10 Russell 2000 +2.19. Asia lower and Europe mixed. VIX is at 21.15 from 21.03 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.14 from $130.41with yields at 1.511% from 1.484% yesterday morning. Bitcoin at $49,166 from $49,193 yesterday morning and this morning up 3.52%. As of 8:15 a.m. EST.

Wednesday’s Action – 12/09 Close:  

  • Daily Positive Sectors: none of note.
  • Daily Negative Sectors: Consumer Cyclical, Technology, Real Estate, Energy, Communication Services, Basic Materials, Healthcare, Industrials, Financials of note.
  • One Month Winners: Utilities of note.
  • Three Month Winners: Energy, Technology, Real Estate 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 ended on the lows.  Small Cap ($RUT) took the brunt of the negative day closing out down -2.27%.  Silver (SLV) pulled back -2.17 and Oil (USO) down -2.67Updated 12/09 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: none of note.

Earnings of Note This Morning:

  • Beats: none
  • Flat: none
  • Misses: none
  • Still to Report: ASO

Erlanger Research Advance/Decline Chart: Updated through 12/09 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: CNTX 34%, AI 20%, ORCL 12%, OCX 11%, AVGO 7%, INTT 6%, HALO 5%, LESL 4%, RRD 3%, ORC 3%, CXM 3%, GTE 3%
    • Gap Down: EVBG -31%, AOUT -19%, ANGN -19%, MESA -15%, CHWY -10%, PTRA -7%, FIZZ -6%, MTN -5%, IMUX -5%

Insider Action: BCO sees Insider buying with dumb short selling and APO has smart short sellers with insider buys. 12/07 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: CHWY, LULU, PTON, AVGO, ORCL, BYND, AI, AOUT, MTN, AMC (CNBC)
  • Five Things To Know Before The Market Opens. (CNBC)
  • Covid-19 cases 125,961 against 129,818 last week. Hospitalization rise to 53,714 against 47,714.
  • White House continues rhetoric against Iran over their nuclear program and taking additional measures.
  • President Biden to pass bill to raise the debt ceiling, avoiding a government shut down. (NYT)
  • Life Insurance company payouts hit highest level since 1918. (WSJ)
  • U.S. authorities win their latest bid to extradite WikiLeaks founder Julian Assange from Britain to U.S. Assange lawyers to challenge. (CNN)
  • Centene (CNC) raises 2022 revenue guidance above consensus.
  • Toyota (TM) expands production stoppage in Japan. (Reuters)
  • Bank of America Corp (BAC) –  Last Two Months Seen Biggest Inflows Into Money Market Funds Since June 2020.
  • Bottomline Technologies (EPAY) looking to put itself up for sale. (Bloomberg)
  • Telsa (TSLA) CEO and Founder Elon Musk tweets “thinking of quitting my jobs & becoming an influencer full time wdyt.” (Twitter)
  • Robinhood looks at JP Morgan saying that life returns to normal in 2022. Stabucks (SBUX) workers at a store in Buffalo vote to form union at first Starbucks store.

Moving Average Update:

  • Score drops down to 76% from 90%. Updated 12/09 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:00 a.m. EST
    • The President, The First Lady, The Vice President, and The Second Gentleman attend the memorial service of Senator Robert J. Dole; The President delivers remarks, 11:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 12:30 p.m. EST
    • The President delivers closing remarks at the virtual Summit for Democracy, 1:45 p.m. EST

Economic

  • November CPI is due out at 8:30 a.m. EST and is expected to drop to 0.6% from 0.9%.
  • December University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and is estimated to rise to 68 from 67.4.
  • Baker Hughes Rig Count 1:00 p.m. EST 
  • Treasury Statement 2:00 p.m. EST 

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Chatham Asset Management Increases Offer to Acquire R.R. Donnelley (RRD) to $10.85 per share in Cash.
  • Kraft Heinz (KHC) Announces Agreement to Acquire Majority Stake in Just Spices – a Technology-Enabled Direct-to-Consumer Business.
  • inTEST (INTT) to Add Electronic Circuit and Electric Vehicle Battery Testing Capabilities with Planned Acquisition of Acculogic Inc.
  • Hubwise Holdings to be acquired by SS&C Techs (SSNC).
  • Plug Power (PLUG) Completes Acquisition of Frames Group.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Wedbush Winter Games Conference
      • Previously Posted and Ongoing Conferences:
        • Deutsche Bank AutoTech Conference 2021 (12/09-12/10)
        • ROTH Capital Deer Valley Consumer Conference 2021 (12/08-12/11)
        • HSBC Real Estate Conference (12/06-12/10)
  • Company Meetings: KSU
    • Fireside Chat: HPE (w Jeffries)
  • Investor/Analyst Day/Calls: ADM, ARVN, CNC, INFI, SON, WMT, RHHBY
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • Wal-Mart Stores, Inc. (WMT) ESG-Focused Discussion on Climate Change 2021.
  • Industry Meetings:
    • None new of note
      • Previously Posted and Ongoing Conferences:
        • BioFlorida Conference 2021 (12/08-12/10)
        • American Association for Cancer Research AACR San Antonio Breast Cancer Symposium SABCS 2021 (12/07-12/10)
        • 32nd International Symposium on ALS/MND 2021 (12/07-12/10)

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:

Thursday’s Upgrades and Downgrades:

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