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09.30.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 01/31/22: U.S. and Russia to Meet At U.N. Security Council. Futures Fadings"

posted by CAPIS on 01/31/2022 at 8:19 am

by CAPIS

01/31/2022 at 8:19 am

Please note: Chinese markets are closed for the week because of the Lunar New Year holiday. However, Chinese ETFs and ADRS in the U.S. markets still will trade.

Overnight Summary: Both Europe and Asia are mixed today. Of note, Japan was up over 1%. In Europe, financials are up 1-2%.  S&P 500 rallied to 4437 at 2:00 a.m. EST and have now fallen to 4401 and are down -22.25 points or -0.50% at 7:20 a.m. EST.

Breaking News: Citrix Systems (CTXS) said to be close to $13 billion deal ($104 per share) with Vista and Elliott to go private (Market Watch)

Earnings Out After The Close:

  • Beats: None of note.
  • Flat: None of note.
  • Misses:None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • RICOU Kalera to Go Public on NASDAQ through Merger with Agrico Acquisition Corp.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • MYNZ: Closing of its $25.8 Million Public Follow-on Offering of Common Stock.
    • RKDA: Filed Form S-1.. 2,749,591 Common Stock.
    • UAVS: Filed Form S-3..1,927,407 Shares of Common Stock.
    • XERS: 15,358,362 Shares CommonStock.
  • 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:
    • CHEK: Filed Form F-3.. $200Million Mixed Shelf.
    • LEXX: Filed Form S-3.. $50Million Mixed Shelf.
    • NEPT: Filed Form F-3.. $50Million Mixed Shelf.
    • OCG: Filed Form F-3.. $200,000,000 Mixed Shelf.
    • USAU: Filed Form S-3.. $100,000,000 Mixed Shelf.
    • XERS: Filed Form S-3.. $250,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • CMC: Closing of $600 Million 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 and Over the Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: EXTN 69%, EOLS 30%, KSS 28%, LRN 26%, GRPN 25%, TDW 21%, BBBY 20%, DESP 19%, GLW 18%, MDRX 17%, GLPG 16%, FRBK 15%, TRQ 15%, FICO 14%, CLS 14%, AR 14%, STNG 13%, HAL 13%, ARCO 13%, NINE 12%
    • Trading Down: EPZM -49%, TYME -41%, TGTX -33%, OPK -32%, NVRO -28%, SPPI -27%, TRHC -27%, AXDX -27%, BEAT -27%, FLWS -26%, NIO -25%, TER -24%, TAL -23%, ETRN -23%, LC -21%, QTNT -21%
  • News Items Over the Weekend:
    • Stocks That Defined the Week: WHR, KR, PTON, JNJ, MAT, MCD, LUV (Wall Street Journal)
    • Elliott and Vista Near Deal to Buy Citrix Systems. (Wall Street Journal)
    • The Week in Business: Higher Interest Rates Are Coming. (New York Times)
    • Move Over, Meme Stocks: Retail Investors Go Back to the Blue Chips. (Wall Street Journal)
    • Cathie Wood’s ARK Faces Loyalty Test After Tech-Stock Rout. (Wall Street Journal)
    • Federal Reserve May Opt for 50-Point Rise Due to Inflation, Federal Reserve Atlanta President Raphael Bostinc Says. (Bloomberg)
    • Who Really Got Rich From the GameStop (GME) Revolution? (Wall Street Journal)
    • T-Mobile (TUMS) To Fire Corporate Staff Who Don’t Get Vaccine By April. (Blooomberg)
    • Beijing officials have sealed off several residential communities in the city’s northern district after two cases of COVID-19 were found. Residents in Chaoyang district were sealed off on Saturday, and will not be allowed to leave their compound. (AP)
    • Barron’s:
      • Positive View: CAT, ABT, JNJ, MMM, ADP, MMM, PXD, VLO, CRM, HUBS, WCC, MU, QCOM, AMAT, ASML, LRCX, TSM, IBM, HPQ, DELL, NFLX, TSLA
      • Negative View: GM, F
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Boqii Holding Limited (BQ) Receives NYSE Non-Compliance Letter Regarding ADS Trading Price.
    • GoHealth (GOCO) CFO Vance Johnston to resign.
    • IAMGOLD (IAG) Chairman Don Charter retires on January 29,2022.
    • MMTEC, Inc. (MTC) Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency.
    • SJW Group (SJW) Appoints James P. Lynch as Chief Accounting Officer, Andrew Walters as Chief Financial Officer; San Jose Water Appoints Peter Fletcher as Vice President – Information Security Officer.
    • TOP Ships Inc. (TOPS) Announces Receipt of Nasdaq Notice.
  • Buyback Announcements:
    • MYNZ: Full Exercise of the Underwriters’ Option to Purchase Additional Shares.
    • Northrim BanCorp, Inc. (NRIM) Expands Stock Repurchase Program.
    • FNCB Bancorp, Inc. (FNCB) Announces Authorization of Stock Repurchase Program.
  • Stock Splits:
    • ErosSTX (ESGC) Announces Reverse Stock Split.
  • Dividends Announcements:
    • Cheniere Energy Partners (CQP) increases quarterly distribution $0.02 to $0.70.
    • First Business (FBIZ) Announces 10% Increase in Quarterly Cash Dividend.
    • SmartFinancial (SMBK) increases quarterly dividend $0.01 to $0.07 per share.

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

S&P 500 -17 Dow Jones -190NASDAQ -4 and Russell 2000 -19.  Asia  and Europe mixed. VIX Futures are at 27.65 from 29.75 Friday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $127.39 from $128.08 yesterday with yields at  1.80% from 1.841%  from Friday morning. Bitcoin at $37,036.84 from $36,360.43 Friday morning and -1.77%. As of 8:15 a.m. EST

Friday’s Action – 01/28/22 Close:  

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

Indexes finished the week strong.  The NASDAQ rallied 2.63% starting at 2:30 p.m. EST to finish the day up 3.13%.  UNG had another strong day up 7.04% almost reaching $17 midday. Updated 01/28/22 close.

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

  • Monday After the Close: NXPI, ARE, GGG, CACC, AGNC, KRC, WWD, AXTA, CRUS, FN, KMPR, PCH, CBT, HP, JJSF, SANM, HTLF, HLIT of note.
  • Tuesday Before the Open: XOM, UPS, UBS, EPD, SWK, IMO, SIRI, WAT, NVR, CTLT, ENTG, BEN, TECH, PHM, PNR, LII, ST, SMG, MAN, ALGM, HLNE, PINC, MDC, ARCB, GFF, PBI of note.

Earnings of Note This Morning:

  • Beats: ATKR +1.02, TT +0.05, LHX +0.03, OTIS +.02
  • Flat: None of note.
  • Misses: AKTS (0.06)
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: ATKR
  • Negative Guidance: LHX

Erlanger Research Advance/Decline Chart: Updated through 01/28/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: SEV +6%, ATKR +5%, LXP +5%, MESO +3%
  • Gap Down: XERS -3%

Insider Action: BECN, BRO, NEOG, NFLX sees Insider buying with dumb short selling. MACK sees Insider buying with smart short sellers. 01/27/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Stocks Making The Biggest Moves: CTXS, BB, SPOT, OTIS, WBA, MPC, BYND, ISRG, NFLX, ALGN, NVST . (CNBC)
  • 5 Things To Know To Start Your Day. (Bloomberg)
  • Five Things to Know this Morning (CNBC)
  • U.S. and Russia to meet at the U.N. Security Council today. (NYT)
  • Covid-19 Cases fall to 524,850 cases from 769,153 cases a week ago while hospitalizations actually fell to 132,044 from 140,498. (CDC)
  • Federal Reserve Atlanta President Raphael Bostic notes that the Federal Reserve could increase rates in 50 point increments instead of 25. (FT)
  • Ukraine believes the White House is spreading unnecessary warnings about a Russian attack. (NYT)
  • White House Economic Advisor Brian Deese in CNBC interview says January jobs report “could look a little strange” due to people being on sick leave related to Omicron variant.
  • Omicron’s sister variant not a cause for concern but could slow the drop in cases. (NYT)

Moving Average Update:

  • Score shows a little life jumping to 23% from 0%. Updated 01/28/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EST
    • The President and The Vice President host the National Governors Association at the White House for a meeting, 11:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 1:00 p.m. EST
    • The President participates in a bilateral meeting with His Highness Sheikh Tamim Bin Hamad Al-Thani, Amir of the State of Qatar, 2:00 p.m. EST

Economic

  • January Chicago PMI is due out at 9:45 a.m. EST and is expected to fall to 62.50 from 63.10.
  • Dallas Fed Mfg Survey 10:30 a.m. EST
  • Farm Prices 3:00 p.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • Pearson Plc (PSO) announced it has acquired Credly.
  • Citrix Systems Inc. (CTXS) potential buyout.  See Wall Street Journal article in above in Rags and Mags Section.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Keystone Symposia Conference: Antibodies as Drugs 2022 (01/30/22-02/02/22)
      • Previously Announced  Conferences:
        • None of note.
  • Company Meetings: CCAC
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: MCRB
  • Update: None of note.
  • R&D Day: OCUP
  • Company Event: None of note.
  • Industry Meetings:  
    • International Mining and Resources Conference (IMARC) (01/31/22-02/02/22)
    • Bloomberg New Energy Finance (BNEF) Summit 2022 (01/31/22-02/01/22)
      • Previously Posted and Ongoing Conferences:
        • None of note.

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:

      

Friday’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.