Overnight Summary: The S&P 500 closed Friday at 4123.34 down -0.57% from 4146.87 on Thursday. Futures have traded lower overnight. The overnight high of 4098 was hit at 6:05 p.m. EDT last night. The low was hit at 4,033.75 at 6:50 a.m. EDT, a range of 65 points high to low which is above the typical range of late with 45 the average. At 7:25 a.m. EDT the current price is 4039.75 which is -1.94% and -80 points.
Earnings Out After The Close:
- Beats: WPRT +0.09.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News:
- Austin Gold Corp. (AUST) Closes Initial Public Offering, Including Full Exercise of the Over-allotment Option.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- CBL: Filed Form S-11.. Up to 12,380,260 Shares.
- OTMO: Filed Form F-1.. primary offering of 13,825,000 ordinary shares. Secondary offering of 80,122,337 ordinary shares.
- RCAT: Filed Form S-3.. 12,355,361 Shares of Common Stock.
- TRKA: Filed Form S-1.. 272,761,524 Shares of Common Stock.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- Velodyne Lidar (VLDR) files for 9,898,508 share common stock offering by selling shareholder. (see Mixed Shelf too)
- KNSA: Filed Form S-3.. 28,682,554 Class A Common Shares Offered by the Selling Shareholders. (see Mixed Shelf too)
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- ALLK: Filed Form S-3ASR.. $250 Million Mixed Shelf Offering.
- COGT: Filed Form S-3ASR.. $300 Million Mixed Shelf Offering.
- CTVA: Filed Form S-3ASR.. Mixed Shelf Offering.
- KNSA: Filed Form S-3.. $400 Million Mixed Shelf. (see Selling Shareholders too)
- KW: Filed Form S-3ASR.. Mixed Shelf Offering.
- PSA: Filed Form S-3ASR.. Mixed Shelf Offering.
- TRMB: Filed Form S-3ASR.. Mixed Shelf Offering.
- VTRS: Filed Form S-3ASR.. Mixed Shelf Offering.
- Velodyne Lidar (VLDR) files for $300 million mixed securities shelf offering. (see Selling Shareholders too)
- 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 and Over the Week:
- Weekly Wrap Up: Best and Worst performing large cap stocks:
- Trading Up: CPS 38%, EHTH 37%, ARRY 34%, FNKO 31%, LTHM 31%, EPAM 30%, CVI 30%, NVAX 26%, BOOM 25%, COMM 25%, AXGN 24%, ALB 24%, GFF 24%, ICPT 23%, SIMO 22%, BPT 21%, CC 21%, TRHC 19%, ATKR 19%, UNM 19%.
- Trading Down: AMRN -50%, CLVS -50%, KZR -47%, TUP -44%, GH -36%, MGNX -34%, QUAD -31%, RYTM -31%, UA -31%, FRPT -31%, UAA -29%, ENDP -29%, CO -26%, HAIN -25%, RPD -25%, IAG -25%, CHGG -25%.
- News Items After the Close:
- David Tepper says Central banks have a credibility problem — Bank of England caused markets to become unhinged last Thursday.
- Amazon (AMZN) Abruptly Fires Senior Managers Tied to Unionized Warehouse. (NYT)
- Russian/Ukraine News:
- Ship Loaded With Russian Coal Docks in Spanish Port of Gijon, Port Authorities Say. (Reuters)
- Russia Is Considering Expanding East Siberia-Pacific Ocean Oil Pipeline. (IFX Cites Deputy PM Novak)
- The Russian government sees the number of new buyers of crude is rising. (Tass)
- News Items Over the Weekend:
- Stocks that Defined the Week: MAR, TWTR, PTON, SAVE, CHGG, SBUX, K (WSJ)
- The Week in Business: More Strong Job Gains. (NYT)
- Bitcoin drops below $34,000 to hit its lowest level since January after stock sell-off. (CNBC)
- Ford (F) is selling 8 million of its Rivian (RIVN) shares through Goldman as insider lockup for stock of once high-flying Electric Vehicle maker expires tomorrow. Ford currently owns 102m shares. Sources also tell me JP Morgan selling a 13-15 million share block for unknown seller. Both blocks priced at $26.90. (David Faber Tweet Cnbc )
- Goldman Sachs: Estimate a 35% likelihood of US recession within next 24 months. Without more clarity on the path of Fed policy and economic growth, stocks will price an above-average recession probability and will be challenged to sustain prices much above the current level.
- Churchill Downs (CHDN) reports Kentucky Derby week handle was up 25% year/year.
- Positive View: TSLA, UBER, GRAB, GPC, ORLY, MNRO, UTI, CRPT, SNAP, GM, SONY, EA, C, CFG, SYF, USB, APA, MRO, OXY, FBHS.
- Cautious View: TM.
- Mixed View: None of note.
- Exchange/Listing/Company Reorg and Personnel News:
- ADC Therapeutics (ADCT) Announces CEO Transition.
- Cypress Environmental Partners (CELP) Announces Pre-Packaged Court Restructuring and Expected Delisting of Common Units From the NYSE.
- Everbridge (EVBG): ISS Recommends Everbridge Stockholders “withhold” Support for Chairman Jaime Ellertson and Director Bruns Grayson at 2022 Annual Meeting.
- High Tide (HITI) announces that Greg Fleury has joined the Company in the role of Chief Technology Officer.
- International Seaways (INSW) Adopts Limited Duration Stockholder Rights Plan.
- Jiayin Group Inc. (JFIN) Announces Changes in Management.
- Lincoln Electric (LECO) announced that Lisa A. Dietrich has been named as Lincoln Electric’s Executive Vice President, Chief Information Officer.
- Legend Biotech (LEGN) appoints Lori Macomber as Chief Financial Officer.
- Seagen (SGEN) announced that President, CEO and Chairman Clay Siegall, Ph.D. is on a leave of absence; Roger Dansey, M.D., Chief Medical Officer, appointed interim CEO.
- Southwest Gas (SWX) announces CEO transition; settlement with Carl Icahn.
- Buyback Announcements:
- Enterprises Finl (EFSC) authorizes new share repurchase program of up to 2,000,000 shares of common stock.
- Piper Sandler (PIPR) Companies Announces Share Repurchase Authorization.
- PureTech (PRTC) Announces Share Buyback Program Update.
- Stock Splits: None of note.
- Dividends Announcements:
- CNO Financial (CNO) increases quarterly cash dividend $0.01 to $0.14 per share.
- Manpower (MAN) raises semi-annual dividend by 7.9% to $1.36 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -69, Dow Jones -431, NASDAQ -288, and Russell 2000 -28. Europe lower and Asian lower ex Nikkei. VIX Futures are at 33 from 31.75 Friday morning and the VIX closed at 31.20 from 25.42 on Thursday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.173% from 3.091% yesterday. Bitcoin is at $32,763 from $35,797 Friday morning and is lower by -5.25% this morning. As of 8:10 a.m. EDT.
Sector Action – 05/06/22 Close:
- Daily Positive Sectors: Energy, Utilities of note.
- Daily Negative Sectors: Consumer Cyclical, Communication Services, Technology, Basic Materials, Real Estate, Industrials, Financial, Healthcare of note.
- One Month Winners: Energy 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 Consumer Defensive of note.
- Year to Date Winners: Energy of note.
Stocks finished the week lower. NASDAQ ended down 1.40%. TLT closed down 1.47% to finish the week at $113.67. Updated 05/06/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Monday After the Close: SPG, MCHP, IFF, PLUG, EQH, ZNGA, RNG, IAC, TREX, XPO, RBA, GDRX, SWAV, VVV, ICUI, UNVR, BWXT, CARG, BHF, NVAX, TASK, MAXR, NHI, HLIO, FROG, HBM, OPK, EVBG, PRAA, ESE, LPSN, DDD, SUPN, TPTX, PRA, PRIM, VECO, MRC, DHT, FGEN, HIMS, BLNK, AMWL, SDC, TDUP, GRPN, HRTX, OPRT, YMAB, BLI, KOD, VRM, NCMI of note.
- Tuesday Before the Open: SYY, TDG, FOXA, CTXS, BLDR, H, ARMK, XRAY, NCLH, MIDD, CHH, TPG, PLNT, BHC, NXST, IIVI, REYN, HLI, IAA, ITCI, ALGM, IGT, STVN, NOVT, KNBE, ENOV, AZEK, HL, BCO, HAE, STER, LCII, DSEY, VERX, TTGT, AHCO, EVRI, CRNC, AMRS, MBUU, RETA, EBIX, CEVA, AVYA, ACRS, IGMS, DBD of note.
Earnings of Note This Morning:
- Beats: BNTX +5.08, JLL +1.33, DINO +0.85, TSN +0.41, THS +0.37, AZUL +0.13, ALIT +0.12, BEAM +0.10, ENR +0.09, HEP +0.08, ACM +0.05, MAC +0.04, CLVT +0.03, WTRG +0.02, COTY +0.02, TWKS +0.01, ELAN +0.01.
- Flat: None of note.
- Misses: MSGE (0.80), VTRS (0.50), RDNT (0.15), HGV (0.12), WOW (0.07), RCM (0.04), GCP (0.04), BLDP (0.03), DUK (0.03), PLTR (0.02), RIDE (0.01).
- Still to Report: HSKA, TGNA.
- Positive Guidance: ROAD, TWKS, WOW of note.
- Negative Guidance: ELAN, PLTR of note.
Erlanger Research Advance/Decline Chart: Updated through 05/06/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: FFIE +6%, VXX +4%.
- Gap Down: AU -5%, ALLK -5%, SJR -4%.
Insider Action: BRO sees Insider buying with dumb short selling. RZLT sees Insider buying with smart short sellers. 05/06/22 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: PLTR UBER RIVN (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- Russian President Putin praised his military but did not offer any new war announcements. (NYT)
- President Biden to address inflation tomorrow, may lower some tariffs. (Axios) Separately, CPI is expected to fall to 0.2% on Wednesday from 1.0%.
- Chinese Premier Li Keqiang warns of grave employment situation in Beijing and Shanghai as movement of people slowed to Covid-19. (Bloomberg)
- EU Meeting ends over Russian Oil embargo with Hungry opposing the ban. (Bloomberg)
- Saudi Arabia lowers oil prices. (Bloomberg)
- Republicans have a 7% lead in congressional midterm elections but impact of Roe vs Wade remains unclear. (CNN)
- White House expects 100 million Covid-19 cases in the fall and winter and need Congress to approve funding for updated vaccines and more treatments. (NYT)
- Lockheed Martin (LMT) to double Javelin production. (Reuters)
- Utility companies are warning of possible shortages this summer. (WSJ)
- Uber (UBER) looks at cost cuts. (CNBC)
Moving Average Update:
- Score remains flat lined at 0%. Updated 05/06/22 close.
- President’s Public Schedule:
- The President departs New Castle, Delaware en route the White House, 8:55 a.m. EDT
- The President arrives at the White House, 9:50 a.m. EDT
- The President and The Vice President receive the President’s Daily Brief, 11:15 a.m. EDT
- The President and The Vice President deliver remarks on how the Biden-Harris Administration is lowering the cost of high-speed internet for millions of American families and expanding access through the Bipartisan Infrastructure Law, 1:30 p.m. EDT
- The President signs into law S. 3522, the “Ukraine Democracy Defense Lend-Lease Act of 2022”; The Vice President attends, 2:45 p.m. EDT
- Press Briefing by Press Secretary Jen Psaki, 3:00 p.m. EDT
- The President participates in a fundraising reception for the Democratic National Committee, 6:00 p.m. EDT
- Wholesale Inventories 10:00 a.m. EDT
- Investor Movement Index 12:30 p.m. EDT
Federal Reserve Speakers:
- Federal Research Atlanta President Raphael Bostic 8:45 a.m. EDT
- 51job, Inc. (JOBS) Announces Completion of Merger.
- Brookfield Asset Management (BAM) to acquire Watermark Lodging Trust (WRMK) for $6.768 per Class A share.
- Colliers (CIGI) has acquired a majority interest in Paragon Building Consultancy Holdings Limited.
Meeting & Conferences of Note:
- Sellside Conferences:
- Bank of America HealthCare Conference (05/09/22-05/13/22)
- BTIG Housing Ecosystem Conference (05/09/22-05/10/22)
- Jefferies Solar and EV Conference
- Raymond James Lodging Tour
- Waste360/Stifel Investor Summit 2022 (05/09/22-05/12/22)
- Previously Announced Conferences: None of note.
- Bank of America HealthCare Conference (05/09/22-05/13/22)
- Company Meetings: FTK, IP.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AUB, JKHY.
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- World Federation of Hemophilia (WFH) 2022 World Congress (05/08/22-05/11/22)
- 4th Allogeneic Cell Therapies Summit 2022 (05/08/22-05/12/22)
- MoneyShow Las Vegas 2022 (05/09/22-05/11/22)
- Previously Posted and Ongoing Conferences:
- American Association of Immunologists (AAI) IMMUNOLOGY2022 (05/06/22-05/10/22)
- Previously Posted and Ongoing Conferences:
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:
Previous Day’s Upgrades and Downgrades: