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

Morning Note

News

Morning Note

"CAPIS Morning Note – 02/04/22: Job’s Data Due At 8:30 a.m. EST, How Bad Will It Be and Does It Matter?"

posted by CAPIS on 02/04/2022 at 8:25 am

by CAPIS

02/04/2022 at 8:25 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.

Breaking News/Comments: The Job’s Data may be skewed by a high number of Omicron cases that caused workers to be out and as a result not be considered as employed.

Overnight Summary: Well last night everyone was excited for an up day to end the week. Not so fast. The S&P 500 rallied until 3:00 a.m. EST hitting 4527 before dropping to 4458 and 7:25 a.m. EST. Asia was higher ex Shanghai with Europe now lower in mid morning trading.

Earnings Out After The Close:

  • Beats: AMZN +24.21, PRU +0.83, COLM +0.59, HIG +0.50, ENVA +0.43, RGA +0.42, BECN +0.28, DECK +0.27, PCTY +0.22, BILL +0.18, WERN +0.16, WWE +0.16, NFG +0.15, NWSA +0.14, SYNA +0.14, SIGI +0.13, ATVI +0.13, SNAP +0.12, LPLA +0.12, SKYW +0.11, BYD +0.10, CDK +0.09, SKX +0.09, FTNT +0.08, POWI +0.08, SXI +0.07, BHE +0.07, GPRO +0.06, MWA +0.05, VIAV +0.05, MTX +0.04, MIME +0.04, SWKS +0.03, MCHP +0.03, AVTR +0.03, PINS +0.03, EXPO +0.02, U +0.02, PYCR +0.01, AINV +0.01.
  • Flat: CUZ +0.00, LESL +0.00, NLOK +0.00, OTEX +0.00.
  • Misses: PFSI (0.93), CPT (0.19), CLX (0.19), LGF.A (0.18), F (0.15), POST (0.12), NOV (0.07), DLB (0.05).

Capital Raises:

  • IPOs Priced or News:
    • Arcelix (ACLX) – Cancer Biotech: Pricing of Initial Public Offering 8.25 million @$15 which is the low end of the $15 to $17 range.
    • Silver Spike Investment Corp. (SSIC) Prices Initial Public Offering.
  • New SPACs launched/News:
    • Ivanhoe Capital Acquisition Corp. (IVAN) closes combination with SES Holdings and will trade under symbol “SES” starting today.
    • Vistas Media Acquisition Company (VMAC) to merge with Anghami and will trade under symbol “ANGH” starting 2/4.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • AXDX: Filed Form S-3.. 201,820 Shares
    • DUOT: Proposed Public Offering of Common Stock.. Northland bookmanager
  • 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:
    • Dogness (DOGZ) files for $250 million mixed securities shelf offering,
    • NLSP: Filed Form F-3.. $75 million 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:

  • After Hours: 
    • Trading Up: SNAP +57%, BILL +28%, PINS +19%, AMZN +14%, U +13%, EGAN +10%, SKX +8%, LESL +7%, NWSA +7%, SYNA +7%, PCTY +6%, ENVA +5%, VIAV +5%, NVAX +5%, HLIT +4%, GPRO +4%.
    • Trading Down: CLX -8%, SKYW -7%, MWA -4%, F -4%.
  • News After The Close:
    • Stocks making the biggest moves afterhours: SNAP, AMZN, F, CLX, PINS, RIVN. (CNBC)
    • Amazon (AMZN) shares soar on cloud revenue beat and huge profit gain from Rivian stake. (CNBC)
    • Snap (SNAP) Posts First Profit as It Adjusts to Apple Privacy Push. (WSJ)
    • Pinterest (PINS) jumps more than 25% on earnings beat as tech stocks bounce back. (CNBC)
    • CBOE Global Markets (CBOE) sees second highest monthly volume on record, 282.5 million contracts.
    • Tesla (TSLA) plans to build cathode building at Texas Gigafactory. (Reuters)
    • Clorox (CLX) stock drops after company hit by lower margins, inflation. (MarketWatch)
    • Ford (F) shares fall on fourth-quarter earnings and 2022 guidance. (CNBC)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Constellation Energy Corp. (CEG) Joined the NASDAQ-100 Index on February 2, 2022.
    • COST: Effective February 2, 2022, the Board of Directors appointed Ron Vachris as President and Chief Operating Officer of the Company.
    • Hertz Global (HTZ) names Stephen M. Scherr as CEO.
    • Navidea Biopharmaceuticals (NAVB) Announces Settlement of Platinum Litigation; Receipt of Noncompliance Notice from NYSE American.
    • Seacoast Banking (SBCF) announces Charles M. Shaffer as Chairman, effective February 3.
    • Syndax Pharmaceuticals (SNDX) Announces Transition of Michael A. Metzger to Chief Executive Officer; Briggs W. Morrison, M.D., to Assume Role of President, Head of Research & Development.
    • Yelp (YELP) Vivek Patel, Chief Product Officer, stepping down on February 14, 2022.
  • Buyback Announcements:
    • Good Times Restaurants (GTIM) Announces Share Repurchase Program.
    • Harmonic (HLIT) Announces $100 Million Stock Repurchase Program.
    • Union Pacific Corporation (UNP) Announces New Share Repurchase Authorization.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Avista (AVA) increases quarterly dividend $0.175 to $0.44 per share.
    • Exponent (EXPO) sees dividend increased to $0.24 from $.20.
    • Air Products (APD) quarterly dividend of $1.62 per share, an 8% increase.
    • Invitation Homes (INVH) Announces Nearly 30% Increase to Cash Dividend of $0.22 per share.
    • Microchip (MCHP) increases quarterly cash dividend $021 to $0.253 per share.
    • Southside Banc (SBSI) increases quarterly cash dividend $0.01 to $0.34 per share.
    • Union Pacific Corporation (UNP) Declares First Quarter 2022 Dividend.

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

S&P 500 +8, Dow Jones -88NASDAQ +130 and Russell 2000 -8.  Asia higher ex Shanghai and Europe lower. VIX Futures are at 25.10 from 23.35 yesterday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury with yields at 1.822% from 1.798%.  Bitcoin is at $37,972 up +4.18%. As of 8:13 a.m. EST

Thursday’s Action – 02/03/22 Close:  

  • Daily Positive Sectors: None of note.
  • Daily Negative Sectors: Communication Services, Technology, Consumer Cyclical, Industrial, Basic Materials, Financial, Real Estate of note.
  • One Month Winners: Energy of note.
  • Three Month Winners: Energy, Consumer Defensive and Utilities of note.
  • Six Month Winners: Energy, Financial, and Consumer Defensive of note.
  • Twelve Month Winners: Energy, Real Estate, and Financials of note.
  • Year to Date Winners: Energy and Financial of note.

META encompasses all and brings the markets down.  Disappointing Earnings by Facebook…whoops – I mean Meta Platforms (FB) dragged the Nasdaq down 3.7%.  The 26% drop was good for the largest single day decline in market value on record for any U.S company.  Updated 02/03/22 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: TSN, ZBH, ON, HAS, CNA, AMG, GTES, CRNC of note.

Earnings of Note This Morning:

  • Beats: REGN +3.67, AON +0.37, CBOE +0.16, TWST +0.15, BEP +0.09, BMY +0.03, APD +0.02, SNY +0.02, ETN +0.01, ROAD +0.01.
  • Flat: None of note.
  • Misses: RCL (0.86), SPB (0.28), ADNT (0.13).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SNDR, ADTN, WEC, POWI, VIAV, SWKS, SNAP, PCTY, BILL, SYNA, LESL, MCHP, COLM, BHE, CDK, PYCR, UTI, NFG, MWA.
  • Negative Guidance: CLX, DLB, AMZN, APD.

Erlanger Research Advance/Decline Chart: Updated through 02/03/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: SNAP +44%, BILL +24%, PINS +13%, AMZN +11%, EGAN +10%, U +10%, LESL +8%, NWSA +7%, SKX +7%, PCTY +6%, SYNA +6%, ENVA +5%, ORTX +5%, PYCR +4%, GPRO +4%, MWA +4%.
  • Gap Down: CLX -12%, SKYW -8%, F -6%.

Insider Action: No stock sees Insider buying with dumb short selling. No stocks sees Insider buying with smart short sellers. 02/03/22 close.

 

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

  • 5 Things To Know To Start Your Day. (Bloomberg)
  • 5 Things To Know Before the Market Opens. (CNBC)
  • Covid cases at 302,529 from 561,181 with hospitalizations at 124,134 from 139,974. (CDC)
  • White House preparing for a bad jobs report due to high number of Omicron cases and what is considered employed. (CNN)
  • Chinese President Xi and Russian President Putin met and China supports Russian Ukraine actions or non actions. (NYT)
  • Only 31% of children 5-11 have received a vaccine. (Bloomberg)
  • Southwest Airlines (LUV) to restart alcohol sales. (CNBC)
  • Former President Obama and his wife to leave Spotify deal ends its 3 year term and looking for new podcast partners. (Business Insider)
  • Robinhood Snacks looks at the miss at Paypal (PYPL). Review growth or lack thereof for African American businesses.

Moving Average Update:

  • Blink…you missed it.  Score reverses course from 70% to 23%.  Updated 02/03/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EST
    • The President delivers remarks on the January jobs report, 10:45 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 11:45 a.m. EST
    • The President delivers remarks and signs an Executive Order on Project Labor Agreements, which will improve timeliness, lower costs and increase quality in federal construction projects; The Vice President and the Secretary of Labor also deliver remarks, 2:00 p.m. EST
    • The President departs the White House en route Joint Base Andrews, 5:30 p.m. EST
    • The President arrives in Wilmington, Delaware, 6:25 p.m. EST.

Economic

  • January Nonfarm Payrolls is due out at 8:30 a.m. EST and is expected to fall to 180,000 from 199,000. The unemployment rate is expected to stay at 3.9%. High probability number will be negative.
  • Baker Hughes Rig Count 1:00 p.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • Arco Platform (ARCE) announces acquisition of PGS and Mentes do Amanhã.
  • Dolby Labs (DLB) announces the acquisition of Millicast.
  • Spectrum Brands (SPB) to acquire Tristar Products’ home appliances and cookware categories.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note. 
      • Previously Announced  Conferences:
        • Citi’s Psychedelic Drug Call Series 2022 (02/02/22-02/08/22)
  • Company Meetings: EPC.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: SLGC, SMMNY
  • Update: None of note.
  • R&D Day: GANX.
  • Company Event: None of note.
  • Industry Meetings:  
    • Otolaryngology (ARO) 45th Annual Mid-Winter Meeting 2022 (02/05/22-02/09/22)
      • Previously Posted and Ongoing Conferences:
        • 44th Annual Pulmonary and Allergy Update at Keysone 2022 (02/02/22-02/05/22)
        • Transplantation & Cellular Therapy Meetings of ASTCT and CIBMTR Tandem Meetings 2022 (02/02/22-02/06/22)

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:

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.