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01.27.2022 11 new posts under Morning Note (8), Compliance Docs. (2), CAPIS Insights (1)

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Morning Note

"CAPIS Morning Note – 12/27/21: Can The Santa Claus Rally Continue Despite Rise of Omicron Cases? So Far Yes."

posted by CAPIS on 12/27/2021 at 8:11 am

by CAPIS

12/27/2021 at 8:11 am

Overnight Summary:  Stocks are mixed globally as markets attempt to assess Omicron’s impact. Asia and Europe are mixed this morning. The S&P 500 traded to a low at 2:00 a.m. EST at 4715 before rallying to 4726 at 7:30 a.m. EST up +10%.

Earnings Out After The Close:

  • Beats: None.
  • Flat: None.
  • Misses: None.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched:
    • Roman DBDR Tech Acquisition Corp. (DBDR) stockholders approve business combination with CompoSecure.  It will trade as “CMPO” on December 28th.
    • QFTATradeStation Group, Inc. and Quantum FinTech Acquisition Corporation announce filing by TradeStation of Registration Statement on Form S-4 in connection with proposed business combination through which TradeStation is to become a public company.
  • Secondaries Priced:
    • BVXV: BiondVax Announces Pricing of $9.0 million Follow-on Underwritten Offering of American Depositary Shares.. pricing of an underwritten public offering of 3,813,560 American Depositary Shares (“ADSs”)  at a public offering price of $2.36 per ADS.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • BVXV: Proposed Underwritten Public Offering of American Depositary Shares.
    • CCLP: Filed Form S-3.. 39,050,210 Common Units Representing Limited Partner Interests.
    • CRTX: Filed Form 424B5.. Up to $150,000,000 Common Stock.
    • NOTV: Filed Form S-1.. $100,000,000 Stock Offering.
    • PRTA: Filed Form 424B5.. Up to $250,000,000 Equity Distribution Agreement.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • XFOR: Filed Form S-3.. 2,008,032 Shares Common Stock Offered by the Selling Stockholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • FSR: Filed Form S-3.. $2Billion Mixed Shelf.
    • NARI: Filed Form S-3ASR .. Mixed Shelf Offering.
    • SRNE: Filed Form S-3ASR $5Billion Mixed Shelf.
    • WINT: Filed Form S-3.. $100Million Mixed Security 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 and Over the Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: ITCI 32%, FSM 24%, ABEO 23%, TUR 22%, VET 20%, BPMP 20%, KPTI 20%, CENX 19%, AMRX 19%, RYTM 18%, CTXS 17%, PLAY 17%, CUK 17%, CYTK 17%, BEAT 16%, ERJ 16%, CCL 16%, RAD 16%, CIT 16%
    • Trading Down:  ALLK -87%, DBVT -39%, CTMX -34%, RGS -29%, CAMP -22%, NVAX -18%, MRNA -15%, QDEL -15%, RUBY -13%, EVLO -11%, ATHN -10%, SQM -10%, VCYT -10%, SQQQ -9%, NVTA -9%, CROX -9%, PDBC -9%, SRI -9%
  • News Items Over the Weekend:
    • President Biden Administration to lift travel curbs on eight African countries on Dec 31. (Reuters)
    • Moderna (MRNA) is fighting a shareholder proposal demanding the pharma group open up its Covid-19 vaccine technology to poorer countries and explain why its prices are so high given the amount of government assistance it has received. (Financial Times)
    • JETSU.S. flight cancellations exceeded 2,800 over Christmas weekend, disrupting travel on one of the busiest periods of the year as the omicron-fueled Covid-19 wave triggered air-crew shortages. A winter storm in the northwest part of the country added to the difficulties on Sunday.
    • France reports 104,611 new coronavirus cases, the biggest one-day increase on record.
    • Italy reports 54,762 new coronavirus cases, the biggest one-day increase on record.
    • Florida reported 31,758 new COVID-19 cases on Friday, breaking a record for the most cases in a single day since the start of the pandemic in the U.S. in March 2020, according to data from the CDC.  (AP)
    • Northrop Grumman (NOC) awarded a $1.4 billion US Army contract for production of the Integrated Battle Command System.
    • AMC ‘Spider-Man No Way Home’ crosses $1 billion to lead box office for 2021.
    • Barron’s:
      • Positive View: PACK, PFE, BABA, BUD, SAM, JPM, SIVB, PNFP, BANF, SFBS, WAL, WMT, COST, TGT, BJ, M, KSS.
      • Negative View: None of note.
      • Mixed View: None of note. 
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Natuzzi S.p.A. (NTZ) Announces Resignation of Its Chief Financial Officer.
    • ION (IO) receives continued listing standards notice from the New York Stock Exchange.
  • Buyback Announcements:
    • CRH Continues Share Buyback Program.
    • New Mountain Finance (NMFC) authorizes an additional $50 million for share repurchase program.
  • Stock Splits: None of note.
  • Dividends Announcements: None of note.

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

S&P 500 +15 Dow Jones Industrial Average +66 NASDAQ +68 Russell 2000 +0.42. Asia and Europe mixed. VIX is at 21.35 from 21.52 yesterday morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.48 from $130.63 on Thursday with yields at 1.491% from 1.477% Thursday morning. Bitcoin at $51,166 from $48,715.29 Thursday morning and +1.63%. As of 8:00 a.m. EST.

Thursday’s Action – 12/23 Close:  

  • Daily Positive Sectors: Industrials, Consumer Cyclical, Basic Materials, Financial, Technology, Communication Services of note.
  • Daily Negative Sectors: Real Estate of note.
  • One Month Winners: Healthcare. Utilities, Real Estate of note.
  • Three Month Winners: Real Estate, 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.

Indexes up again.  Santa worked hard.  Nasdaq Composite and Russell 2000 led the way with 0.85% and 0.89% gainsGLD, SLV, USO were also up with USO +0.88%. Updated 12/23 close.

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

  • Monday After the Close: None of note.
  • Tuesday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: None.
  • Flat: None.
  • Misses: None.
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 12/23 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: BORR +6%, DBDR +4%, XXII +3%, VLD +3%
    • Gap Down: UAL -3%, CCL -3%

Insider Action: IQV sees Insider buying with dumb short selling and SYNL has smart short sellers with insider buys. 12/22 close

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

  • Stocks Making the Biggest Moves: GDDY, AAPL, CI, DIDI, CAR, MRNA (CNBC)
  • Covid-19 cases rose to 243,817 from 156,754 a week ago. Hospitalizations came in at 60, 871 from 59,944.
  • China increased lockdown in Xi’an as Covid-19 case rose. (FT)
  • The People’s Central Bank will provide additional economic support. (Bloomberg)
  • NIH Director Dr. Fauci noted that Omicron is less severe but caseload will neutralize the severity.  (ABC News)
  • CDC shortens the time for quarantine for healthcare workers.
  • Thousands of U.S. flights were cancelled as airline personnel were hit by Omicron. Airline stocks lower. (NYT)
  • Merck’s (MRK) oral anti-viral gets EUA approval in Japan.
  • Starboard Takes 6.5% Stake Worth Around $800 Million in GoDaddy (GDDY). (Wall Street Journal)

Moving Average Update:

  • Score increases to 93% from 86% from 60%. Updated 12/23 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:05 a.m. EST
    • The President joins the White House COVID-19 Response Team’s regular call with the National Governors Association to discuss his Administration’s response to the Omicron variant and to hear from the Governors on the needs in their States, 11:30 a.m. EST
    • The President departs the White House en route Rehoboth Beach, Delaware, 12:15 p.m. EST
    • The President arrives in Rehoboth Beach, Delaware, 1:15 p.m. EST
    • The President receives the Weekly Economic Briefing virtually, 2:30 p.m. EST

Economic

  • Dallas Fed Manufacturing  10:30 a.m. EST
  • The latest NYSE and NASDAQ Short Interest is due out after the close for data from November 26th through December 13th when the S&P 500 rose 2.15%.

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • Ares Management Corporation (ARES) Announces Agreement to Acquire AMP’s PrivateMarketsCo Infrastructure Debt Platform.
  • TriNet Group (TNET) agrees to acquire Zenefits.

Meeting & Conferences of Note:

  • Sellside Conferences:  None of note. 
    • Previously Posted and Ongoing Conferences:
      • None
  • Company Meetings: IMMR, MOXC, STAF, YY
  • 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:

Thursday’s Upgrades and Downgrades:

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