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

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Morning Note

"CAPIS Morning Note – 03/16/22: FOMC Announces Latest Decision at 2:00 p.m. EDT, Presser At 2:30 p.m. Stocks Higher Into The Open."

posted by CAPIS on 03/16/2022 at 8:06 am

by CAPIS

03/16/2022 at 8:06 am

Overnight Summary:  The S&P 500 closed Tuesday at 4262.45 from 4165 on Monday.  The S&P 500 was higher for the first time in four days.  The overnight high was hit at 4314 at 6:20 a.m. EDT. The low came at 4239 at 8:25 p.m. EDT. The current level is 4304.75 up 51 points which is  1.20% at 7:10 a.m. EDT. Wide overnight ranges continue to play out this week.

Breaking News: Starbucks (SBUX) CEO Kevin Johnson to Step Down; Howard Schultz to Return in Interim Role (WSJ)

Earnings Out After The Close:

  • Beats: CAL +0.23, SMAR +0.03, S +0.01.
  • Flat: None of note.
  • Misses: GOCO (1.24).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • TANH: Proposed Public Offering.. Aegis bookmanager .
  • Pricing of Over-Allotment: None of note.
  • Direct Offering:
    • FRLN: Closes $26.1 Million Registered Direct Offering of American Depositary Shares.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ACET: Filed Form S-3.. $500 Million Mixed Shelf.
    • AIRG: Filed Form S-3.. $40,000,000 Mixed Shelf.
    • FRME First Merchants files mixed securities shelf offering.
    • LAZ: Filed Form S-3ASR.. Mixed Shelf Offering.
    • LIFE: Filed Form S-3.. $200,000,000 Mixed Shelf.
    • PHVS: Filed Form F-3.. $350 Million Mixed Shelf.
    • PNNT: Filed Form N-2.. $750,000,000 Mixed Shelf.
    • SNSE: Filed Form S-3.. $150,000,000 Mixed Shelf.
    • UBX: Filed Form S-3.. $125,000,000 Mixed Shelf Offering.
    • TCON: Filed Form S-3.. $150 Million Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • AVB: AvalonBay Communities Announces $500 Million Commercial Paper Note Program.

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: IOVA +10%, FF +7%, CAL +4%.
    • Trading Down: PRTS -15%, GOCO -9%, SMAR -8%, SFT -6%, EXK -6%, BRDS -5%, MAXN -5%.
  • News After The Close:
    • As Virus Data Mounts, the Johson&Johnson (JNJ). Vaccine Holds Its Own (NYT)
    • BioNTech (BNTX) and Pfizer (PFE) submit for Emergency Use Authorization of an additional booster dose of their COVID-19 vaccine for older adults.
    • Delta Air Lines (DAL) To Raise Ticket Prices In Response To Higher Fuel Costs (FT).
    • Spotify (SPOT) announces partnership with FC Barcelona to bring music and football together.
    • Canadian Pacific (CP) Canada and U.S. shippers brace for possible CP Rail strike, latest supply-chain disruption. (Reuters)
    • Chinese regulators are considering measures to jointly crack down on malicious short-selling agencies and actively listening to opinions of listed real estate enterprises on resolving risks.
    • Iovance Biotherapeutics (IOVA): FDA allows IND to proceed for IOV-4001
    • North Korean missile exploded at an altitude of less than 20 km (12 miles) and debris fell in the Pyongyang area; no word on damage or injuries – (NK News)
    • Russian/Ukraine News:
      • Negotiations With Ukraine Are Difficult And Slow, Russia Sincerely Wants Peace As Soon As Possible – Ifx Cites Russian Negotiator – (Reuters)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Bilibili (BILI) to Pursue Voluntary Conversion to Dual-Primary Listing on The Main Board of The Stock Exchange of Hong Kong Limited.
    • CarParts.com (PRTS) Promotes David Meniane to CEO and Ryan Lockwood to CFO.
    • CarLotz (LOTZ) Announces CEO Transition.
    • Callaway Golf Company (ELY) names Varsha Rao to Board of Directors.
    • Denali Therapeutics (DNLI) appoints Alexander Schuth as Chief Operating and Financial Officer.
    • Esperion Therapeutics (ESPR) discloses departure of Chief Financial Officer Richard B. Bartram, on April 8.
    • Faraday Future Intelligent Electric (FFIE) receives Nasdaq acceptance of plan to regain listing compliance.
    • Heartland Financial (HTLF) appointed John K. Schmidt to serve as independent Chairman, replacing Lynn B. Fuller, who was removed as Executive Operating Chairman effective immediately.
    • Yandex N.V. (YNDX) announces that Tigran Khudaverdyan has stepped down with immediate effect from his positions as Executive Director and Deputy Chief Executive Officer.
  • Buyback Announcements:
    • Banc of California (BANC) Announces $75 Million Stock Repurchase Program.
    • Caleres (CAL) authorizes an incremental 7 million shares to its stock buyback program.
    • LexinFintech Holdings Ltd. (LX) Announces US$50 million Share Repurchase Program.
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • Fulton Financial (FULT) increases quarterly cash dividend $0.01 to $0.15 per share.

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

S&P 500 +51, Dow Jones +363NASDAQ +232, and Russell 2000 +21.  Asia mixed and Europe lower. VIX Futures are at 29.30 from 31.60 yesterday morning. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury with yields at 2.163% from 2.13% Tuesday.  Bitcoin is at $40,459.15 from $38,692.75 yesterday at +1.91%. As of 8:00 a.m. EDT

Monday’s Action – 03/15/22 Close:  

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

Stocks were up sharply as oil pulled back.  NDX lead the equity indexes with a 3.16% return.  USO dropped 5.78% to end at 68.63.  Updated 03/15/22 close.

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

  • Wednesday After the Close: LEN, ZTO, WSM, SMTC, GES, BRLT of note.
  • Thursday Before the Open: ACN, DG, CMC, SIG, WRBY, DFH, CSIQ, SCHX, GIII, DBI of note.

Earnings of Note This Morning:

  • Beats: JBL +0.21, DOYU +0.16, DFH +0.02.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: AAL, S, JBL.
  • Negative Guidance: SKIL, GOCO, BRDS, CAL.

Erlanger Research Advance/Decline Chart: Updated through 03/15/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: BILI +30%, JD +21%, LX +21%, DOYU +20%, BABA +19%, WB +19%, BIDU +15%, FFIE +12%, BTBT +12%, IOVA +8%, ASHR +8%, FF +5%, HOLI +4%, CAL +4%.
  • Gap Down: BRDS -13%, GOCO -12%, NLOK -6%, EXK -5%, PRTA -5%.

Insider Action: BRP, AHCO, SKYW, EXLS, EHTH sees Insider buying with dumb short selling.  WKHS, LMNR, MACK sees Insider buying with smart short sellers. 03/15/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

  • Stocks Making The Biggest Moves: NVDA MU BA (CNBC)
  • Five Things You Need To Know To Start Your Day (Bloomberg)
  • Ceasefire talks to restart today. Ukraine President Zelensky notes that Russia sounding “more realistic”. (NYT)
  • China to support overseas listing of ADRs, reversing killing such listings. Chinese stocks on fire. (Bloomberg)
  • Russia has softened terms on Iran nuclear deal. (WSJ)
  • Federal Reserve preview – rates to rise but more slowly. (CNBC)
  • Two Senators want Department of Justice to investigate Live Nation (LYV). (Reuters)
  • Senate votes to repeal Travel Mask Mandate just as Covid-19 Variant Omnicron BA.2 cases rising globally and soon to hit U.S. (CNN)
  • Delta (DAL) CEO claims Covid-19 crisis is over on travel. (Bloomberg)
  • Tesla (TSLA) suspends work at a Shanghai factory for next two days on BA.2 surge. (Reuters)
  • Fidelity National (FNF) to spinoff 15% of F&G to shareholders.
  • Robinhood Snacks looks at Starbucks (SBUX) and its move to become more sustainable with plastic cups. AMC Entertainment (AMC) buys into a gold mine as there is “gold in them hills”.

Moving Average Update:

  • Short term moving averages improve.  Score comes up to 23%.  Updated 03/15/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
    • The President delivers remarks on the assistance the United States is providing to Ukraine; the Secretary of State, the Deputy Secretary of Defense, and the Chairman of the Joint Chiefs of Staff, 11:45 a.m. EDT
    • The President delivers remarks at an event celebrating the reauthorization of the Violence Against Women Act ; the Attorney General and the Secretary of Health and Human Services, 1:45 p.m. EDT
    • Press Briefing by Press Secretary Jen Psaki, 2:30 p.m. EDT
    • The President delivers remarks at The Ireland Funds 30th National Gala, 7:45 p.m. EDT

Economic

  • MBA Mortgage Applications were out at 7:00 a.m. EDT and fell -1.2%.
  • February Retail Sales are due out at 8:30 a.m. EDT and are expected to fall to 04% from 3.8% in January.
  • Import and Export Prices 8:30 a.m. EDT 
  • NAHB Housing Market Index is due out at 10:00 a.m. EDT and is expected to fall to 81 from 82.
  • Atl. Business Expectations 10:00 a.m. EDT
  • Business Inventories 10:00 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT
  • The latest FOMC rate decision is due out at 2:00 p.m. EDT and a press conference at 2:30 p.m. EST.

Federal Reserve Speakers:

  • FOMC Announcement 2:00 p.m. EDT
  • Fed Chair Press Conference 2:30 p.m. EDT

M&A Activity:

  • Atlas Technical Consultants (ATCX) Acquires TranSmart Technologies, Inc.
  • Booz Allen (BAH) to Acquire EverWatch and Accelerate Classified Capabilities for Clients
  • Herc Holdings (HRI) announces agreement to acquire Cloverdale Equipment.
  • Lawson Products (LAWS) Announces Stockholder Approval of Merger Agreements for Strategic Combination with TestEquity and Gexpro Services.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Alliance Battery Metals Revolution Day
    • Danske Bank Small & Mid Cap Seminar
    • Desjardins Industrials, TMT, Diversified and Consumer Conference 2022 (03/16/22-03/17/22)
    • Exane Consumer Ingredients Conference
    • Guggenheim Healthcare Talks 2022 (03/16/22-04/01/22)
    • Guggenheim Targeted Protein Degradation Day 2022
    • Needham Neuroscience Forum
    • Truist Securities Texas Bank Summit
      • Previously Announced  Conferences:
        • Bank of America Global Securities Industrials Conference 2022 (03/15/22-03/17/22)
        • Bank Of America SMID Cap Conference 2022
        • Barclays Global Healthcare Conference 2022 (03/15/22-03/17/22)
        • Canaccord Metals & Mining Conference 
        • Citigroup Private Company EdTech Spring Summit
        • Credit Suisse Consumer Conference Series 2022
        • Credit Suisse Brazil Oil & Gas Conference
        • JP Morgan Industrials Conference 2022 (03/15/22-03/17/22)
        • JP Morgan Pan-European Small/Mid Cap CEO Conference 2022 (03/15/22-03/17/22)
        • JP Morgan South Africa Healthcare Seminar 2022
        • Morgan Stanley European Financials Conference 2022 (03/15/22-03/17/22)
        • William Blair 6th Annual Tech Innovators Conference 2022
        • Bank of America Asia Pacific APAC Telecom, Media & Technology TMT Conference 2022 (03/14/22-03/26/22)
        • Berenberg EU Opportunities Conference 2022 (03/14/22-03/17/22)
        • Citigroup Global IT Services
        • Deutsche Bank dbaccess 30th Annual Media, Internet and Telecom Conference 2022 (03/14/22-03/16/22)
        • HIMMS Global Health Conference 2022 (03/14/22-03/18/22)
        • Oppenheimer 32nd Annual Healthcare Conference 2022 (03/14/22-03/17/22)
  • Company Meetings: A, COO, SBUX.
  • Fireside Chat: CULP (w/ Water Tower), EVOK (w/ HC Wainwright).
  • Investor/Analyst Day/Calls: AJG, AXP, BOX, FCEL, FND, OSH, VRAY.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: Adobe (ADBE) Summit.
  • Industry Meetings:
    • Life Science Intelligence LSI Emerging Medtech Summit 2022 (03/15/22-03/18/22)
    • American Society for Clinical Pharmacology & Therapeutics (ASCPT) 2022 (03/15/22-03/18/22)
    • Advanced Bioeconomy Leadership Conference (ABLC) 2022 (03/15/22-03/18/22)
    • Call and Contact Center Expo (03/15/22-03/17/22)
      • Previously Posted and Ongoing Conferences:
        • Alzheimer & Parkinson’s Diseases Conference 2022 (03/15/22-03/20/22)
        • Western Regional Boiler Association Conference 2021 (03/15/22-03/17/22)
        • MITT 2022: Moscow International Travel and Tourism Exhibition (03/15/22-03/17/22)
        • 2022 South by Southwest (SXSW) Conference & Festivals. (03/11/22-03/20/22)
        • Muscular Dystrophy Association (MDA) Scientific and Clinical Conference 2022 (03/13/22-03/16/22)

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:

      

Tuesday’s Upgrades and Downgrades:

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