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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 – 12/22/21: Stock Back In The Green Overnight Drop, Lots of Economic Data from 8:30 a.m. EST Onward"

posted by CAPIS on 12/22/2021 at 8:17 am

by CAPIS

12/22/2021 at 8:17 am

Overnight Summary:  It is a quiet morning with stocks mixed globally. The S&P 500 closed at 4638 and is now at 4644. The low overnight was 4622 so a pretty narrow range and we are on the highs at 7:30 a.m. EST. Asia was higher ex Shanghai that sold off by -0.07%. Europe is modestly higher.

Earnings Out After The Close:

  • Beats: BB +0.07
  • Flat: None.
  • Misses: CAMP (0.14), AIR (0.01)

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched: None of note.
  • Secondaries Priced:
    • AgileThought (AGIL) Priced a public offering of 3,560,710 shares at $7.00 a share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes: None of note.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note. 
  • Selling Shareholders of note:
    • BFRI: Filed Form F-1.. 5,714,286 Shares of Common Stock Offered by the Selling Stockholder.
    • HGTY: Filed Form S-1`.. 344,871,956 Shares of Class A Common Stock by Selling Shareholders.
    • AKU: Filed Form F-3.. 34,837,663 Common Shares by Selling Shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ACHV: Filed Form S-3.. $100Million Mixed Security Shelf.
    • PAVM: Filed Form S-3.. $275Million Mixed Security Shelf.
    • PBR: Filed Form F-3ASR.. Mixed Shelf Offering.
  • Convertible Offering & Notes Filed
    • Apollo Endosurgery  (APEN)Announces New $100 Million Senior Secured Term Loan Facility from Innovatus Capital Partners, LLC.
    • Harte Hanks (HHS) Secures a New $25 Million Revolving Line of Credit with Texas Capital Bank.
    • Polaris (PII) Announces Expansion of Unsecured Term Loan Under Existing Credit Facility to Further Support Capital Allocation Strategy.
  • 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: VOYA +8%, KRMD +6%, MX +3%
    • Trading Down: CAMP -13%, RKLY -7%, AIR -6%
  • News Items After The Close:
    • President Biden Says Omicron Means More Mild Breakthrough Infections. (Bloomberg)
    • AstraZeneca (AZN) and Oxford begin production of Omicron targeted vaccine version. (FT)
    • WHO endorses Novavax (NVAX) Covd-19 vaccine for use.
    • Novavax (NVAX) begins to study of its booster doses.
    • Wells Fargo (WFC) again delays return to office as Omicron spreads. (Bloomberg)
    • U.S. Hospitals pushed to financial ruin as nurses quit during pandemic. (Bloomberg)
    • Raytheon Technologies (RTX) awarded $580 million Navy contract.
    • Stryker (SYK) awarded $490 million Defense Logistics Agency contract.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • MSG Entertainment (MSGE) announces David F Byrnes CFO, effective January 24.
    • Calavo Growers (CVGW) names Brian Kocher as President and CEO as of February 1, 2022.
    • Voya Financial (VOYA) Set to Join S&P MidCap 400 on December 28.  VOYA will replace CoreSite Realty (COR).
  • Buyback Announcements:
    • AAR (AIR) Announces $150 million Stock Repurchase Program.
    • Thor Industries (THO) announces $250 million share buyback authorization.
    • Magnachip (MX) Announces New $75 million Stock Repurchase Program.
  • Stock Splits: 
    • NAKD trading Reverse Split with ratio 1/15.
  • Dividends Announcements: 
    • Camden National Corp. (CAC) announces quarterly dividend to $0.40 per share, an 11% increase.

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

S&P 500 +3 Dow Jones Industrial Average +52 NASDAQ -5 Russell 2000 +9. Asia lower and Europe lower. VIX is at 23.17 from 23.50 yesterday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures mixed. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.63 from $130.95 with yields at 1.475% from 1.451% yesterday morning. Bitcoin at $48,620 from $48,725 yesterday morning and +0.12%. As of 8:00 a.m. EST.

Tuesday’s Action – 12/21 Close:  

  • Daily Positive Sectors: Consumer Cyclical, Technology, Energy, Industrials, Financial, Basic Materials, Communication Services, Real Estate of note.
  • Daily Negative Sectors: none of note. (yeah! and there was much rejoicing!)
  • One Month Winners: Utilities, Consumer Defensive, Real Estate of note.
  • Three Month Winners: Energy, Basic Materials, Technology of note.
  • Six Month Winners: Technology, Real Estate, Utilities of note.
  • Twelve Month Winners: Energy, Real Estate, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Real Estate  of note.

Now that is how you start a Santa Clause Rally!  All indexes bounced over 1.5% with Russell 2000 taking the lead up with 2.95% gain. Updated 12/20 close.

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

  • Wednesday After the Close: None of note.
  • Thursday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: KMX +0.09, MSM +0.05
  • Flat: none
  • Misses: none
  • Still to Report: CTAS, PAYX

Erlanger Research Advance/Decline Chart: Updated through 12/21 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: KRMD +8%, KKR +5%, MX +5%, KMX +3%
    • Gap Down: CAMP -15%, RKLY -11%, BFRI -8%, AIR -8%, ALLK -7%, PAVM -5%

Insider Action: No stock sees Insider buying with dumb short selling and no stock has smart short sellers with insider buys. 12/20 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)
  • Stocks Making the Biggest Moves: KMX TSLA BB CAT CAMP (CNBC)
  • Covid-19 cases spike to 288,579 from 201,786. Hospitalizations rise to 60,907 from 57,191.
  • Israel to start on fourth dose of Covid-19 vaccine. (NYT)
  • White House expect approval of new treatment for Covid-19 in January. (Bloomberg)
  • U.S. Army has developed a single Covid-19 vaccine that works against all variants. (Defense One)
  • Mortgage rates fall to a four-week low, but homebuyers still pull back due to record low listings. (CNBC)
  • Pfizer (PFE) to provide the U.K. an additional 2.5 million oral antiviral to combat Covid-19.
  • US chip maker Intel (INTC) triggers Chinese media backlash after telling suppliers to avoid Xinjiang labor. (SCMP)
  • Amazon Inc (AMZN), Facebook parent Meta Platforms Inc (FB), Twitter Inc (TWTR) and Pinterest Inc (PINS) all said on Tuesday they will not send teams to the Consumer Electronics Show. (CES) in Las Vegas next month as concerns grow about the Omicron coronavirus variant. (Reuters)
  • Elon Musk and Jack Dorsey are talking about ‘Web3’ – here’s what it is and why it matters. (CNBC)
  • Tesla (TSLA) – U.S. National Highway Traffic Safety Administration Opens Investigation Into 580,000 Tesla Vehicles Over Function That Allows Games To Be Played On Front Center Touchscreen – Agency.
  • Elon Musk has now sold enough stock to cover his tax bill.
  • EU aims for June 2022 agreement on 15% global minimum tax law.
  • Data on COVID cases, hospitalizations and deaths in South Africa’s current wave of infections, driven by the Omicron variant, suggest lower severity but more work is needed to understand why, a scientist studying the data said on Wednesday. (Reuters)
  • Robinhood looks at the latest speech from President Biden which offers to increase testing for Covid-19.

Moving Average Update:

  • Now that is looking more like a Christmas pattern with evenly distributed green and white.  Score jumps to 60%. Updated 12/21 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President meets with his Supply Chain Disruptions Task Force and private sector CEOs to receive another progress update on getting goods moving, keeping shelves stocked, and lowering prices for Americans, 10:30 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 12:30 p.m. EST
    • Press Briefing by White House COVID-19 Response Team and public health officials, 3:00 p.m. EST

Economic

  • MBA Mortgage Applications decreased -6% from previous week and last week fell -4%.  Average 30 year fixed rate mortgage decreased to 3.27%. 
  • November Personal Income is due out at 8:30 a.m. EST and is expected to remain at 0.5%.
  • November PCE-Core is due out at 8:30 a.m. EST and expected to remain at 0.4%.
  • November Durable Orders are due out at 8:30 a.m. EST with an estimate of 1.50% versus -0.5% in October.
  • Chicago Fed Activity Index 8:30 a.m. EST
  • November New Home Sales are due out at 10:00 a.m. EST and are expected to rise to 770,000 from 745,000.
  • University of Michigan Consumer Sentiment is due out at 10:00 a.m. EST and is expected.
  • EIA Petroleum Report 10:30 a.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Atkore Inc. (ATKR) Announces Acquisition of Four Star Industries.
  • CTO Realty Growth (CTO) Announces Acquisition of a Mixed-Use Property in Santa Fe, New Mexico and Sale of a Single Tenant Property in Falls Church, Virginia.
  • Novartis AG (NVS) enters into a definitive agreement to acquire all of the outstanding share capital of Gyroscope Therapeutics.
  • PDL Community Bancorp (PDLB) announces completion of sale and leaseback of Real Property.
  • Sony Pictures Networks India (SONY) and Zee Entertainment Enterprises sign definitive agreements to merge.

Meeting & Conferences of Note:

  • Sellside Conferences:  None of note. 
    • Previously Posted and Ongoing Conferences:
      • None
  • Company Meetings: IBIO, MCMJ, NCTY, RCEL
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: None of note.
      • Previously Posted and Ongoing Conferences:
        • None.

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:

Tuesday’s Upgrades and Downgrades:

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