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09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 02/18/22: Stocks Rebound This Morning But Is Fade The Rally Still In Play For Rest of Day?"

posted by CAPIS on 02/18/2022 at 8:19 am

by CAPIS

02/18/2022 at 8:19 am

We will not produce our note on Monday as markets are closed for President’s Day.

Overnight Summary: The S&P 500 is bouncing higher after yesterday’s debacle. The overnight high was 4410 and currently is up to 4401 which is +20.75 or 0.47%. Asia and Europe are mixed and did not follow U.S. action on Thursday.

Earnings Out After The Close:

  • Beats: MATX +2.58, QDEL +1.97, AL +0.52, LGND +0.43, MSA +0.43, KNSL +0.38, AMN +0.33, MERC +0.25, SWAV +0.23, EXEL +0.19, ED +0.14, USM +0.14, ROKU +0.13, TSLX +0.11, KEYS +0.10, CHUY +0.09, CGNX +0.08, APPN +0.07, SHAK +0.06, GLOB +0.05, DBX +0.05, RLGY +0.04, SKT +0.04, RDFN +0.04, PK +0.03, CWST +0.03, GMED +0.02, VTR +0.02, ATR +0.02, AUY +0.02, CMBM +0.01, DLR +0.01, LTHM +0.01.
  • Flat: DRH +0.00.
  • Misses: OEC (0.18), BJRI (0.17), RBA (0.08), RUN (0.04), LASR (0.04), LNT (0.01), AEE (0.01), AEL (0.01), WRE (0.01), LTC (0.01).

Capital Raises:

  • IPOs Priced or News:
    • Blue Water Vaccines (BWV): Pricing of approximate $20M Initial Public Offering .. Priced @$9.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • CLXT 3.88M share offering at $1.41 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • Calxyt, Inc. (CLXT) Announces Pricing of $10.9 Million SEC-Registered Offering of Common Stock and Warrants.
    • SOFO: Filed Form S-3.. 10,000,000 Common Stock.
    • SBEV: Closing of its Previously Announced $9.2 Million Underwritten Public Offering and Full Exercise of Underwriters’ Over-Allotment Option.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • OBSV: Filed Form F-3.. Up to 7,344,017 Common Shares offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ATRC: Filed Form S-3ASR .. Mixed Shelf Offering.
    • AN: Filed Form S-3ASR Mixed Shelf Offering.
    • CNA: Filed Form S-3ASR .. Mixed Shelf Offering.
  • Convertible Offering & Notes 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: APPN 12%, CGNX 11%, LTHM 10%, SWAV 9%, ASPN 8%, QDEL 7%, EXEL 6%, AL 5%, RCEL 4%, AMN 4%.
    • Trading Down: ROKU -21%, DOMA -19%, PPC -16%, RDFN -15%, SHAK -10%, BJRI -8%, LASR -5%, DBX -5%.
  • News After The Close:
    • Stocks making the biggest moves after hours:  ROKU, SHAK, RUN, DBX  (CNBC)
    • President Biden to host meeting on Ukraine on Friday with leaders of Canada, France, Germany, Italy, Poland, Romania, Britain, EU and NATO – Canadian PM’s office.
    • Dropbox (DBX) shares pop 8% on sales, earnings beat (MarketWatch)
    • US ITC launches investigation based on Ericsson’s (ERIC) patent complaint against Apple (AAPL) (Release)
    • Facing Texas pushback, BlackRock (BLK) says it backs fossil fuels. (Reuters)
    • Northrop Grumman (NOC) awarded $250 million Navy contract.
    • Abbott Labs (ABT) initiates voluntary recall of powder formulas manufactured at Sturgis facility.
    • IGT (IGT) Grows Sports Betting Leadership in Washington State via Agreement with Kalispel Casino.
    • Tyson Foods’ (TSN) chickens infected with bird flu, company ramps up biosecurity measures.
    • China reports 2 more human cases of H5N6 bird flu.
    • 13 F filings out from hedge fund managers including: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Virgin Galactic (SPCE) announced effective immediately, Chamath Palihapitiya will step down as chairman and as a member of its Board of Directors to focus on other public company board commitments.  Board appointed Director Evan Lovell as Interim Chairman
    • Bed Bath & Beyond Inc. (BBBY) appoints Minesh Shah to Board of Directors.
    • Full House Resorts (FLL) promotes John Ferrucci to COO.
    • Nuvei Corporation (NVEI) promotes Yuval Ziv to President.
    • Sherwin-Williams (SHW) appoints Heidi G. Petz as COO and President, effective March 1.
    • ProPetro (PUMP) announces the planned transition of Phillip Gobe, the Company’s Executive Chairman, to non-executive Chairman of the Board effective March 31, 2022.
  • Buyback Announcements:
    • Dropbox (DBX) to repurchase an additional $1.2 billion of its Class A common stock.
    • Fortive (FTV) Announces Share Repurchase Authorization for up to 20 Million Shares.
    • M/I Homes (MHO) Announces $100 million Increase to Share Repurchase Authorization.
    • Old National Bancorp (ONB) Announces $200 million Stock Repurchase Program.
    • Encore Wire (WIRE) Announces Expanded Stock Repurchase Plan by 2 million shares.
    • Bloomin Brands (BLMN) to buyback $125 million of stock.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • ASIX: Board authorizes $0.125 per share quarterly dividend payable March 15, 2022.
    • American Homes 4 Rent (AMH) Announces 80% Increase in Quarterly Distribution.
    • Clearway Energy (CWEN) increases quarterly dividend $0.0068 to $0.3468 per share.
    • Falcon Minerals (FLMN) declares quarterly dividend of $0.145 per share.
    • Hannon Armstrong Sust. Infr. (HASI) increases quarterly dividend 7% to $0.375 per share.
    • Louisiana-Pacific (LPX) announced an increased quarterly cash dividend to common shareholders of $0.04 to $0.22 per share.
    • Marcus & Millichap (MMI) initiates semi-annual regular dividend of $0.25 per share and special dividend of $1.00 per share.
    • Medical Properties Trust (MPW) increases quarterly cash dividend $0.01 to $0.29 per share.
    • Telephone & Data (TDS) increases quarterly dividend $0.05 to $0.18 per share.
    • United Comm Banks (UCBI) increases quarterly cash dividend $0.01 to $0.21 per share.
    • Bloomin Brands (BLMN) reinstates dividend of $0.14.

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

S&P 500 +21 , Dow Jones +129 NASDAQ +95 and Russell 2000 +12.  Asia and Europe mixed. VIX Futures are at 26.85 from 25.25 yesterday morning. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury with yields at 1.972%  from 2.002% yesterday.  Bitcoin is at $40,455 from $43,285 at -1.31%. As of 8:14 a.m. EST

Thursday’s Action – 02/17/22 Close:  

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

Build up of Russian troops cratered the markets.  The Dow fell 622 points for a 1.78% loss, the worst day of the year.  NASDAQ was lower by 2.88%.  GLD was up 1.37%.  Updated 02/17/22 close.

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

  • Friday After the Close: None of note.
  • Tuesday Before the Open: HD, MDT, EXPD, CNP, DISH, WLK, TPX, M, NXST, CFX, KBR, LPX, NSA, AWI, HR, KFY, WBT, ETRN, FLR, DORM, CBRL, DNUT, NPO, JELD, SMP, AMWD, TPB, ESPR of note.

Earnings of Note This Morning:

  • Beats: DE +0.66, CRON +0.34, ABR +0.28, B +0.09 BLMN +0.08.
  • Flat: None of note.
  • Misses: ARNC (0.84), PPL (0.10), AJRD (0.07), RRD (0.01).
  • Still to Report: DKNG.

Guidance:

  • Positive Guidance: RS, CBZ, POOL, SEE, BRC, FOCS, RGEN, ITGR, AAWW, GPC, RDFN, APPN, CGNX, SWAV, LTHM, GLOB, AMN, CWST, VTR, INTC, ARNC.
  • Negative Guidance: HIMX, USFD, BAX, SWI, SO, LGND, LASR, SHAK, PRTA, GMED, GTYH, ROKU, OEC, DBX, DKNG.

Erlanger Research Advance/Decline Chart: Updated through 02/17/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: CGNX 12%, SWAV 11%, APPN 11%, LTHM 11%, DLR 9%, ASPN 8%, QDEL 7%, HASI 6%, CNA 6%, AL 5%, AJRD 5%, RCEL 4%, AMN 4%, CE 4%.
  • Gap Down: RDFN -26%, ROKU -25%, PPC -19%, DOMA -15%, SHAK -13%, DBX -6%, BJRI -5%, LASR -5%.

Insider Action: NOTV, DNB sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 02/17/22 close.

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

  • Stocks Making The Biggest Moves: DKNG, ROKU, DE, SHAK, BLMN, DBX. (CNBC)
  • 5 Things To Know To Start Your Day. (Bloomberg)
  • Covid cases at 109,422 cases from 202,001 with hospitalizations at 80,185  from 99,535. (CDC).
  • The latest variant of Covid-19 Omicron BA.2 appears to be able to evade vaccine and even monoclonal antibodies research from Japan suggests. (CNN)
  • Secretary of State Blinken to meet next week with Russian Foreign Minister Lavrov as long as no invasion. (NYT)
  • Senator Joe Manchin (D-WV) remains undecided on Fed Vice Chairman for Supervision nominee Sarah Bloom Raskin. (Bloomberg)
  • Warren Buffet notes that there was no insider information on Berkshire’s purchase of Activision Blizzard (ATVI). (NY Post)
  • California Governor releases plan forward post pandemic.
  • Senate passes bill to fund government through March 11; President Biden will sign it today (Release)
  • Robinhood Snacks looks at Google (GOOGL) and its drop in search supremacy. Suburban malls make a comeback as shoppers return but big city shopping is weak.

Moving Average Update:

  • Boom goes the dynamite.  Score knocked down to 6%.  Updated 02/17/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 2:30 p.m. EST

Economic

  • February Existing Home Sales is due out at 10:00 a.m. EST and is expected to fall to 6.08 million from 6.18 million.
  • January Leading Economic Indicators are due out at 10:00 a.m. EST and are expected to fall to 0.2% from 0.8%.
  • Quarterly Services 10:00 a.m. EST
  • Baker Hughes Rig Count 1:00 p.m. EST

Federal Reserve Speakers:

  • Federal Reserve Chicago President Charles Evans 10:15 a.m. EST
  • Federal Reserve New York President John Williams 11:00 a.m. EST

M&A Activity:

  • BrightView (BV) Acquires NatureScape.
  • NortonLifeLock (NLOK) Updates Merger Closing Date to April 4, 2022.
  • Celanese (CE) buys majority of DuPont’s (DD) Mobility & Materials Business for $11 billion.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously Announced  Conferences:
        • Credit Suisse 23rd Annual Financials Services Forum 2022 (02/16/22-02/18/22)
        • Keefe Bruyette and Woods KBW Winter Financial Services Conference 2022 (02/16/22-02/18/22)
        • BTIG (MedTech) Medical Technology, Digital Health, Life Science and Diagnostic Tools Conference 2022 (02/15/22-02/17/22)
        • SVB Leerink 11th Annual Global Healthcare Conference 2022 (02/14/22-02/18/22)
  • Company Meetings: None of note..
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: MAT.
  • Update: None of note.
  • R&D Day: INSP (hosted by Wells Fargo).
  • Company Event: None of note.
  • Industry Meetings:
    • Whistler Capital Conference.
      • Previously Posted and Ongoing Conferences:
        • American Society of Clinical Oncology Genitourinary (ASCO GU) Cancers Symposium 2022 (02/17/22-02/19/22)
        • International Conference on Fatty Liver 2022 (02/17/22-02/19/22)
        • Miami International Boat Show & Strictly Sail 2022 (02/16/22-02/20/22)
        • BIO CEO & Investor Digital Conference 2022 (02/14/22-02/18/22)

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:

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