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09.26.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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Morning Note

"CAPIS Morning Note – 03/28/22: President Biden Announces 2023 Budget 2:45 p.m. EDT."

posted by CAPIS on 03/28/2022 at 8:12 am

by CAPIS

03/28/2022 at 8:12 am

Overnight Summary:  The S&P 500 closed Friday at 4,543.06 from 4,520.16 on Thursday. The S&P 500 had three up and two down days last week.  The overnight high was hit at 4:58 a.m. EDT at 4,540.00. The low came at 4,514.00 at 2:13 a.m. EDT. The current level is flat at 4,535 at 6:00 a.m. EDT.

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:
    • Tailwind Two Acquisition Corp. (TWNT) and Terran Orbital Announce Completion of Business Combination.
  • Secondaries Priced: None of note.
  • Notes Priced of note:
    • INVH: Pricing of $600 Million of 4.150% Senior Notes due 2032.
  • Common Stock filings/Notes:
    • CYTR: Filed Form 424B3.. 20,727,274 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • Eiger BioPharmaceuticals (EIGR) enters into an Open Market Sale Agreement for up to $50 million in shares through Jefferies.
  • Selling Shareholders of note:
    • Cyxtera Technologies (CYXT) files for 7.5 million share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE):
    • Benson Hill (BHIL) entered into definitive subscription agreements for the private placement of 26,150,000 units at a price of $3.25 per Unit.
  • Mixed Shelf Offerings:
    • ALXO: Filed Form S-3.. $450 Million Mixed Security Shelf.
    • GLSI: Filed Form S-3.. $300,000,000 Mixed Shelf.
    • PKI: Filed Form S-3ASR.. Mixed Shelf Offering.
  • Convertible Offering & Notes Filed:
    • BitNile Holdings (NILE) Announces Payment in Full of $66 Million in Senior Secured Notes This Week.
    • NMRK: Filed Form S-3ASR.. 6.125% Senior Notes due 2023.

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: LLL 127%, GME 66%, TLRY 52%, SPPI 47%, TELL 47%, HMLP 42%, CRK 37%, BPT 31%, GLOP 30%, SWN 30%, IPI 29%, PLAN 28%, ACB 26%, EQT 25%, AR 22%, QD 21%, CLF 21%.
    • Trading Down: AXDX -26%, SKY -21%, OKTA -21%, LGIH -18%, IMGN -18%, BLD -17%, IBP -17%, PRQR -15%, FND -15%, CTMX -14%, LCII -14%, MTH -14%, PACB -14%, TREX -14%, GRTS -14%, SHOP -13%, CCS -13%, BLDR -13%, TPX -13%, PGTI -13%.
  • News Items After the Close:
    • Google (GOOGL) Fiber Contractors In Kansas City Are First To Unionize Under Alphabet Worker Union. (CNBC)
    • China Economy Faces Worst Slowdown Since Pandemic, Nomura Says. (Bloomberg)
    • TWTR Elon Musk is giving “serious thought” to starting his own social media platform.
    • L3Harris (LHX) and Thales Defense to compete for each order of $6.11 billion contract to modernize SINCGARS radios for US Army.
    • Russian/Ukraine News:
      • President Biden, off the cuff, says Putin ‘cannot remain in power’ (Politico)
      • Governor Of Ukraine’s Western Lviv Region Says There Were Three Powerful Explosions Near Lviv City, 48 Miles From Polish Border.
      • Ukraine’s Economy Minister: So far, the war has cost Ukraine $564.9 billion in losses.
  • News Items Over the Weekend:
    • Stocks That Defined the Week: AAL, NKE, DIS, SBUX, MRNA, OKTA, UBER   (WSJ)
    • The Week in Business: Attempts to Prop Up the Russian Economy (NYT)
    • New York state reports 2,778 new coronavirus cases, an increase of 38% from last week.
    • China begins locking down most of its largest city, Shanghai, to begin mass testing its population of 26 million. (AP)
    • Elbit Systems (ESLT) Awarded $130 Million in Contracts to Provide Artillery Munitions Production Line in a Country in Asia-Pacific.
    • NordicTrack CEO Scott Watterson forced out in battle with Peloton (PTON). (NYP)
    • President Biden to unveil new minimum tax on billionaires in budget. (Washington Post
    • Barron’s:
      • Positive View: NVT, BRK.B, MOS, NTR, CF.
      • Negative View: NFLX, DIS, AMZN.
      • Mixed View: TSLA.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Adaptive Biotechnologies (ADPT) Chief Medical Officer Lance Baldo resigns to pursue a new opportunity.
    • Express (EXPR) appoints Jason Judd as CFO, effective April 4.
    • MAG Silver (MAG) appoints Fausto Di Trapani as Chief Financial Officer effective May 20, 2022.
    • MindMed (MNMD) CFO David Guebert will be retiring from his position on March 31.
    • New Gold (NGD) appoints Patrick Godin as COO.
    • Oxford Industries (OXM) announces that CFO Scott Grassmyer has been promoted to the additional role of COO.
    • Wejo (WEJO) changes date for earnings announcement to March 31.
    • Wheaton Precious Metals (WPM) Chairman to retire.
  • Buyback Announcements:
    • Ferguson PLC (FERG) Announces Share Buy Back Program.
    • Huntsman (HUN) Doubles Size of Share Repurchase Authorization to $2 Billion, Targets $1 Billion of Repurchases in 2022.
  • Stock Splits:
    • Tesla Inc. (TSLA) says company will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split.
  • Dividends Announcements: None of note.

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

S&P 500 +12, Dow Jones +74, NASDAQ +52, and Russell 2000 +2.  Europe higher across the board. Asian markets mixed.  VIX Futures are at 21.54, up 0.72. Gold and Silver pulling back about 1%. WTI Crude Oil and Brent Oil Futures are lower along with Natural Gas. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury sees yields down a touch at 2.47%. Bitcoin is at $47,295 from $44,868. As of 8:08 a.m. EDT.

Friday’s Action – 03/25/22 Close:  

  • Daily Positive Sectors: Energy, Utilities, Real Estate, Financial of note.
  • Daily Negative Sectors: Consumer Cyclical, Technology 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, Utilities, and  Basic Materials of note.

Stocks ended mostly higher on Friday.  DJIA was up 0.44%, but the NASDAQ ended down 0.16%.  USO was up 1.24% after a Saudi oil refinery was attacked.  Updated 03/25/22 close.

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

  • Monday After the Close: PLAY of note.
  • Tuesday Before the Open: MKC, LOVE, CONN of note.

Earnings of Note This Morning:

  • Beats: SAIC +0.28.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: DOOO.
  • Negative Guidance: SMRT, MAXN, HNST, RKLB, NIO, SAIC.

Erlanger Research Advance/Decline Chart: Updated through 03/25/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: STAA +18%, AXSM +7%, TSLA +4%.
  • Gap Down: VIR -4%, OIIM -4%.

Insider Action: No stock sees Insider buying with dumb short selling. JELD, INDT, KODK sees Insider buying with smart short sellers. 03/25/22 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: TSLA, BYND, COIN, AAPL, POLY, FL, BCS, AMC, UBER, HAS (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • President Biden’s budget proposal takes on stock buybacks, and supports legislation that would prohibit executives from selling shares received as part of compensation for several years after engaging in a stock buyback program. (CNBC)
  • Tesla (TSLA) to Suspend Production at Shanghai Plant on Virus Curbs. (Bloomberg)
  • Pfizer (PFE), Moderna (MRNA) and J&J (JNJ) Face Shareholder Pressure to Broaden Covid-19 Vaccine Access. (WSJ)
  • Shares in European semiconductor companies are seen down 2-3% pre-market on reports Apple (AAPL) plans to cut its iPhone and AirPods output.
  • Walmart (WMT) Says It Has Decided to Discontinue Cigarette Sales in Select Stores — Removes Cigarettes From Some Stores Including in Florida, California (WSJ)
  • AMC CEO says more meme-stock powered deals are coming. (Reuters)
  • U.S. boost fines for automakers not meeting fuel economy rules in Tesla (TSLA) win. F, GM, STLA, HMC, TM, VWAGY (Reuters)

Moving Average Update:

  • Score is at 86%.  Updated 03/25/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and The Vice President receive the President’s Daily Brief, 11:30 a.m. EDT
    • The President announces his Budget for Fiscal Year 2023, which will reduce deficits by more than $1 trillion over the next decade, advance safety and security at home and around the world, and make the investments needed to build a better America; the Director of the Office of Management and Budget also delivers remarks, 2:45 p.m. EDT
    • Press Briefing by Deputy Press Secretary Andrew Bates, Director of the Office of Management and Budget Shalanda Young, Chair of the Council of Economic Advisers Cecilia Rouse, and National Security Advisor Jake Sullivan, 3:30 p.m. EDT.

Economic

  • Wholesale Inventories 8:30 a.m. EDT
  • International Trade in Goods 8:30 a.m. EDT
  • Dallas Fed Mfg Survey 10:30 a.m. EDT

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • AXSM acquires Sunosi from JAZZ for $53 million.
  • CyrusOne (CONE) announces completion of acquisition by funds managed by KKR and Global Infrastructure Partners.
  • Eagle Pharmaceuticals (EGRX) Agrees to Terms to Acquire Acacia Pharma Group plc.
  • KKR Nearing Deal for Fertility Treatment Provider Ivirma. (Bloomberg)
  • POLY To be acquired by HP for $40/shr in cash valued at $3.3 billion.
  • Schweitzer-Mauduit (SWM) and Neenah (NP) to combine in all-stock transaction to create a ~$3 billion global leader in specialty materials.
  • Southwest Gas (SWX) unanimously rejects Carl Icahn’s revised unsolicited tender offer.
  • Vail Resorts (MTN) to Acquire Majority Stake in and Operate Andermatt-Sedrun Sport AG, a Leading Swiss Resort.
  • Vermilion Energy (VET) acquires Leucrotta Exploration for $477 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Crypto Mining Day
    • Bank of America ESG Consumer & Retail Conference 2022 (03/28/22-03/29/22)
    • Barclays Nuclear Energy Solutions Conference 2022
    • Capital Link 16th Annual International Shipping and Offshore Forum 2022 (03/28/22-03/29/22)
    • HSBC Future Transport Week 2022 (03/28/22-03/29/22)
    • Maxim Group & M-Vest Virtual Growth Conference 2022 (03/28/22-03/30/22)
    • MedInvest Pharmaceutical and Biotechnology Investor Conference 2022 (03/28/22-04/01/22)
    • National Bank Financials Metal and Mining ESG Roundtable Event 2022 (03/28/22-03/30/22)
    • Stifel CNS Day 2022 (03/28/22-03/29/22)
      • Previously Announced  Conferences:
        • Credit Suisse Asian Investment Conference 2022 (03/21/22-03/30/22)
        • Guggenheim Healthcare Talks 2022 (03/16/22-04/01/22)
        • JP Morgan: European Internet Seminars 2022 (03/21/22-03/30/22)
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ARQT, DUFRY, LUCD, NVEI.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: ADDYY Innovation Day (03/21/22-03/30/22).
  • Industry Meetings:
    • American Academy of Dermatology Annual Meeting
    • BIO Europe Spring 2022 (03/28/22-04/06/22)
    • International Battery Seminar 2022 (03/28/22-03/31/22)
      • 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:

      

Thursday’s Upgrades and Downgrades:

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