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"CAPIS Morning Note – 01/13/22: Stocks Up Modestly, House To Pass Voting Rights Bill Despite DOA in Senate"

posted by CAPIS on 01/13/2022 at 8:36 am

by CAPIS

01/13/2022 at 8:36 am

Overnight SummaryStocks are higher this morning in the U.S. but not by much.  Overseas markets are mixed this morning. China is contemplating more lockdowns into the Olympics.  Semis and Autos are strong this morning in Europe. S&P 500 Futures saw a low at 4702 around 8:30 p.m. EST and then based there until 2:30 a.m. EST before rallying to 4720 at 7:45 a.m. EST.

Earnings Out After The Close:

  • Beats: KBH +0.14
  • Flat: None.
  • Misses: None

Chart of the Morning: The Financial Times focused on the short selling in Beyond Meat (BYND). It is very heavy. Are the Short Sellers being greedy?

Capital Raises:

  • IPOs Priced or News:
    • TPG Inc. (TPG): Pricing of Initial Public Offering .. 33.9Million @$29.50.
  • New SPACs launched:
    • Decarbonization Plus Acquisition Corporation II  (DCRN) announces stockholder approval of business combination with Tritium.  It will commence trading on the NASDAQ January 14th with the symbol DCFC and DCFCW.
    • Consilium Acquisition Corp I, Ltd. (CSLM) Announces Pricing of Upsized $165 Million Initial Public Offering.
  • Secondaries Priced:
    • PCVX: Pricing of $100 Million Public Offering 2.5Million @$20.. BAC, Jefferies and Evercore.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ARCC: Announces Public Offering.. 10Million shares.. MS, BAC, UBS, RBC and WFC Bookmanagers.
    • UPH: Form 424B3.. 3,000,000 Shares of Common Stock.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • CRKN: Filed Form S-3.. Up to 2,000,000 Shares of Common Stock Offering by the Selling Stockholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CRKN:  $100Million Mixed Shelf.
    • RMR: Filed Form S-3.. $500,000,000 Mixed 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:

  • After Hours: 
    • Trading Up: ADGI +23, PBYI +10, KBH +5%, BBCP +4%, FLR +4%
    • Trading Down: ESTC -6%, PCVX -5%, HCI -4%
  • News Items After The Close:
    • Canada says vaccine mandates work as Quebec’s ‘unvaxxed tax’ leads to spike in first-dose appointments. (CNN)
    • Fed’s Brainard Says Inflation Is Too High and Curbing It Is a Top Task (Bloomberg)
    • White House Economic Adviser Deese: Supply Chain Challenges Manifested Themselves More Than Anticipated – Will Take Additional Steps This Month On Ports.
    • President Biden Weighing Cuts To 2022 Ethanol Blending Mandate Proposal. (Reuters)
    • GlaxoSmithKline (GSK): Department of Defense confirms award of $945 million Army contract for sotrovimab.
  • Exchange/Listing/Company Reorg and Personnel News: 
    • Elastic (ESTC) Promotes Ashutosh Kulkarni to CEO.
    • Mastercard (MA) Names Harit Talwar to Board of Directors.
    • Markforged Holding’s (MKFG) David Benhaim, Co-Founder and CTO, is stepping down from his role as CTO, effective today.
    • RGC Resources, Inc. (RGCO) Names Chief Financial Officer.
  • Assets Under Management: VCTR $183 billion
  • Buyback Announcements: None of note.
  • Stock Splits:
    • SQQQ, SDS, SSO, UPRO, TQQQ.
  • Dividends Announcements: 
    • Lennar Corporation (LEN) Increases Annual Dividend to $1.50 Per Share, a 33% increase.
    • UMH Properties, Inc. (UMH) announces dividend increase of $0.01 to $0.20 per share.

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

S&P 500 +3, Dow Jones +52, NASDAQ +10 and Russell 2000 -1.26. Asia and Europe mixed. VIX Futures are at 21 from 20.90 yesterday morning. Gold lower, Silver higher and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $128.20 from $128.58 yesterday with yields at 1.745% from 1.734% yesterday morning. Bitcoin at $43,754 from $43.341.32 yesterday morning and -0.14%, overnight dipped under $40,000. As of 8:10 a.m. EST.

Wednesday’s Action – 01/12 Close:  

  • Daily Positive Sectors: Basic Materials, Energy, Consumer Cyclical of note.
  • Daily Negative Sectors: Healthcare of note.
  • One Month Winners: Energy, Financials and Basic Materials of note.
  • Three Month Winners: Basic Materials, Consumer Defensive and Energy of note.
  • Six Month Winners: Energy, Financials and Real Estate of note.
  • Twelve Month Winners: Energy, Real Estate, and Financials of note.
  • Year to Date Winners: Energy, Financials and Materials of note.

The major indexes were up except the Russell 2000 being down 0.82%. Natural Gas was up 13.50%.  Updated 01/11/22 close.

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

  • Thursday After the Close: WAFD of note.
  • Friday Before the Open: JPM, WFC, BLK, C, FRC of note.

Earnings of Note This Morning:

  • Beats: TSM +0.19, DAL +0.07
  • Flat: None.
  • Misses: None.
  • Still to Report: None.

Erlanger Research Advance/Decline Chart: Updated through 01/12/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ADGI +18%, PBYI +9%, KBH +6%, TSM +4%, BBCP +4%
  • Gap Down: PCVX -8%, HCI -4%

Insider Action: SPRO, PRTA, SAFE sees Insider buying with dumb short selling and MACK, SFIX has smart short sellers with insider buys. 01/12/22 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: DAL BA MRNA VORB TSM. (CNBC)
  • Five Things to Know This Morning (CNBC)
  • Covid-19 cases at 797,216 cases from 717,765 a week ago. Hospitalization at 124,163  from 89,645 a week ago. (CDC)
  • Omicron appears to have peaked in the U.K. (WSJ) Breaking News
  • Federal government has lost $100 billion in pausing student loan payments. (WSJ)
  • House to pass Voting Rights Bill today. Cannot pass the Senate as do not have the votes on the filibuster component of the bill. (Politico)
  • Moderna (MRNA) will have vaccine data for 2 to 5 year olds in March. (Reuters)
  • Investors see upside in Apple (AAPL) shares due to upcoming virtual reality devices. (WSJ)
  • Robinhood (HOOD) will not spend large amounts of money on crypto assets. (WSJ)
  • Beyond Meat (BYND) is heavily shorted. (FT)
  • Visa (V) and Mastercard (MA) offering Central Banks testing applications for crypto currencies. (Bloomberg)
  • Robinhood Snacks looks at Omicron sickout wreaks havoc, 5M + workers in quarantine.

Moving Average Update:

  • Score pulls back to 53% from 60%. Updated 01/12/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EST
    • The President delivers an update on his Administration’s whole-of-government COVID-19 surge response; the Secretary of Defense and FEMA Administrator Deanne Criswell also attend, 10:30 a.m. EST
    • The President meets with the Senate Democratic Caucus to discuss the urgent need to pass legislation to protect the constitutional right to vote and the integrity of our elections, 1:00 p.m. EST
    • Press Briefing by Press Secretary Jen Psaki and National Security Advisor Jake Sullivan, 3:00 p.m. EST

Economic

  • November PPI is due out at 8:30 a.m. EST and are expected to fall to 0.4% from 0.8%.
  • Initial Jobless Claims 8:30 a.m. EST
  • EIA Natural Gas Report 10:30 a.m. EST 

Federal Reserve Speakers:

  • Federal Reserve Philadelphia President Patrick Harker 8:00 a.m. EST
  • Federal Research Board of Governors Lael Brainard 11:00 a.m. EST
  • Federal Reserve Richmond President Thomas Barkin 12:00 p.m. EST
  • Federal Reserve Chicago President Charles Evans 1:00 p.m. EST

M&A Activity

  • Coinbase (COIN) announces acquisition of CFTC-regulated derivatives exchange FairX.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • ATB Capital Markets Institutional Investor Conference
    • Citigroup California Utility & Energy Field Trip
    • Wainwright BioConnect Conference (01/10/22 – 01/13/22)
    • JP Morgan Healthcare Conference (01/10/22 – 01/14/22)
    • Morgan Stanley Latin America Executive Conference (01/12/22 – 01/14/22)
    • Needham Growth Conference (01/10/22 – 01/15/22)
    • Raymond James Lumber & Home Building Forum
    • UBS Greater China Conference (01/10/22 – 01/19/22) 
      • Previously Posted and Ongoing Conferences:
        • None
  • Company Meetings: BIIB, FERG, GIGA, MNST
  • 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:

Wednesday’s Upgrades and Downgrades:

DISCLAIMER

This communication is for informational purposes only and is solely intended for use by institutional investors. Use of this communication by others, including retail investors, is prohibited. No statement herein is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Certain products, including options and futures, may involve substantial risk and are not suitable for all investors. The information on this webpage is provided by an independent third party. While the information and opinions presented in this material have been obtained or derived from sources believed by Capital Institutional Services, Inc. (CAPIS) to be reliable, CAPIS makes no representations concerning its accuracy or completeness, and accepts no liability for loss arising from the use of this material.