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

Morning Note

News

Morning Note

"CAPIS Morning Note – 05/11/22: Stocks Higher Into CPI Data Due At 8:30 A.M. EDT."

posted by CAPIS on 05/11/2022 at 8:17 am

by CAPIS

05/11/2022 at 8:17 am

Overnight Summary: The S&P 500 closed Tuesday at 4001.05 from 3991.24  on Monday.  Futures have traded higher overnight. The overnight high of 4043.75 was hit at 5:10 a.m. EDT this morning. The low was hit at 3986.50 at 8:00 p.m. EDT, a range of 57 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 4041 which is +1.11% and +44.25 points.

Earnings Out After The Close:

  • Beats: LNW +0.42, SCSC +0.37, HRB +0.30, ARWR +0.23, PAR +0.20, PLBY +0.19, GFS +0.18, EA +0.17, ABCL +0.16, AXON +0.16, BOOT +0.16, ALC +0.15, EOLS +0.15, WES +0.14, IPAR +0.13, ELY +0.12, PRPL +0.11, OXY +0.09, FNF +0.09, ARRY +0.09, MODN +0.07, EXEL +0.07, TTD +0.07, CELH +0.06, DAR +0.06, REAL +0.05, EGHT +0.05, HCAT +0.05, MTTR +0.04, ARLO +0.04, ZD +0.03, JAMF +0.02, GO +0.02, RXT +0.01, AKA +0.01, OLO +0.01.
  • Flat: CRCT +0.00, KGC +0.00, TPTX +0.00, U +0.00, WELL +0.00.
  • Misses: COIN (2.82), JXN (0.78), ZETA (0.58), COLL (0.57), NSTG (0.34), CUTR (0.30), KOD (0.27), ICHR (0.20), OSUR (0.15), YELL (0.13), MSP (0.08), SKIN (0.07), WYNN (0.06), FLYW (0.06), RBLX (0.05), DOMA (0.05), GMED (0.05), DV (0.04), RKT (0.04), BIRD (0.03), INO (0.03), HALO (0.02), RPAY (0.02), VUZI (0.02), SOFI (0.01), SWCH (0.01), DOUG (0.01), GRWG (0.01).

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:
    • Albemarle (ALB) Announces Pricing of Public Offering of Senior Notes.
  • Common Stock filings/Notes:
    • CELZ: Filed Form S-3.. 22,666,668 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • RYI: Secondary Offering of 3.5 Million Shares of Common Stock by its Principal Shareholder and a Concurrent Stock Repurchase.
    • TLIS: Filed Form S-3.. 37,489,210 shares of Common Stock Offered by the Selling Stockholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • COIN: Filed Form S-3ASR.. Mixed Shelf.
    • GOEV: Filed Form S-3.. Mixed Security Shelf.
    • HOWL: Filed Form S-3.. $150Million Mixed Shelf.
    • MASS: Filed Form S-3.. $200,000,000 Mixed Shelf.
    • NOVT: Filed Form S-3ASR.. Mixed Shelf.
    • RXRX: Filed Form S-3ASR.. Mixed Shelf.
    • TCDA: Filed Form S-3.. $350,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • Desktop Metal (DM) prices offering of $100 million of 6.0% convertible senior notes due 2027.

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: GSM +11%, PLBY +10%, REAL +10%, CELH +8%, ELY +8%, HCAT +7%, ABCL +7%, PRPL +7%, ZETA +6%, PAYA +5%, ORGO +5%, ARLO +4%, FMC +4%, NVVE +4%, RAIL +4%, MTTR +4%, HRB +4%, BOOT +4%.
    • Trading Down:  U -26%, INO -19%, COIN -16%, BIRD -15%, GRWG -15%, VUZI -15%, GOEV -12%, ICHR -10%, OLO -9%, APP -8%, YELL -8%, CRCT -7%, FOLD -6%, TTD -6%, RYI -6%, FLYW -5%, CO -5%, ARRY -5%, RBLX -4%, RKT -4%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: COIN, RBLX, EA, SOFI, U (CNBC)
    • Senate confirms Lisa Cook to the Federal Reserve Board of Governors by a vote of 51-50.
    • House passes bill 368-57 to provide approximately $40 bln in funding for Ukraine; bill now heads to Senate where it is expected to pass late this week.
    • Coinbase (COIN) revenue drops 27% from a year ago, stock slides. (CNBC)
    • Unity (U) Software’s stock plunges nearly 30% on weak revenue guidance. (MarketWatch)
    • Roblox (RBLX) shares sink on disappointing revenue and wider-than-expected loss. (CNBC)
    • Allbirds (BIRD) stock drops more than 16% after lower outlook, wider Q1 loss. (MarketWatch)
    • Raytheon Technologies (RTX) awarded $270 million Navy contract.
    • Ameresco (AMRC) venture awarded $7.9 million Army contract for comprehensive solar photovoltaic construction project.
    • Australia now has the most COVID cases per capita followed by Taiwan.
    • Assets Under Management: APAM 147.1 Billion, IVZ $1,476.1 Billion (down 5.1% from previous month), AB $685 billion (7% decrease from previous month)
    • Russian/Ukraine News:
      • Russian Foreign Minister Lavrov Says It Has Enough Clients for Its Energy Resources, Let Western Countries Pay Higher Prices. (Reuters)
      • Pro-Russian leader of Ukraine’s Kherson says will ask Putin to annex region. (AFP)
  • Exchange/Listing/Company Reorg and Personnel News:
    • AnPac Bio (ANPC) Regains Compliance with Market-Value-Of-Publicly Held Shares Requirement upon Transfer to The Nasdaq Capital Market.
    • Azenta (AZTA) files to delay its 10-Q.
    • GrowGeneration (GRWG) files to delay its 10-Q.
    • Inovio Pharma (INO) appoints Jacqueline Shea, Ph.D., as CEO.
    • Peapack-Gladstone Financial (PGC) files to delay its 10-Q.
    • Perrigo (PRGO) announces Mr. Eduardo Bezerra has been named Executive VP and CFO.  Also announced the planned retirement of Mr. Todd Kingma, Executive Vice President, General Counsel and Corporate Secretary.
    • NYSE to Suspend Trading Immediately in Puxin Limited (NEW) and Commence Delisting Proceedings.
    • Freightcar America (RAIL) CEO to retire in 2023.
    • Supernus Pharma (SUPN) filed to delay its 10-Q.
    • W&T Offshore (WTI) Announces Retirement of Steve L. Schroeder and Names Huan Gamblin Vice President of Business Development.
    • Ziff Davis (ZD) announces that Sarah Fay, who has served as a Board member since 2018, has been appointed Chair of the Ziff Davis Board of Directors.
  • Buyback Announcements:
    • Cardlytics (CDLX) approves repurchase of up to $40.0 million of its common stock.
    • Citizens (CIA) Authorizes New $8 Million Share Repurchase Program.
  • Stock Splits:  None of note.
  • Dividends Announcements:
    • Cardinal Health (CAH) increases quarterly dividend to $0.4957 per share.
    • Welltower (WELL) Board of Directors declared a cash dividend of $0.61 per share.

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

S&P 500 +47, Dow Jones +316, NASDAQ +183, and Russell 2000 +26.  Europe  and Asian higher.  VIX Futures are at 31.59 from 33.20 Tuesday morning and the VIX closed at 33.92 from 31.20 on Friday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher with Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.923% from 3.005% yesterday. Bitcoin is at $31,774 from $31,584.91 Tuesday morning and is higher by +1.36% this morning. As of 8:12 a.m. EDT.

Sector Action – 05/10/22 Close:  

  • Daily Positive Sectors: Technology, Communication Services, Healthcare, Energy of note.
  • Daily Negative Sectors: Real Estate, Utilities, Basic Materials, Consumer Defensive, Industrials 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.

Big growth names rebounded after yesterday’s selloff.  NDX was up 1.30%.  Dow Industrials ended down 0.26%.  Updated 05/10/22 close.

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

  • Wednesday After the Close: DIS, MFC, SLF, RIVN, CPNG, STE, BEKE, APP, DOX, BROS, COHR, MQ, PAAS, BMBL, CPA, ATCO, GBDC, FLNC, COOK, DIBS of note.
  • Thursday Before the Open: BABA, NICE, TPR, USFD, DAVA, DKNG, DDS, IS, SIX, GOOS, SQSP, NVMI, PRMW, UTZ, HIMX, CAMT, HLLY, KELYA, TNK, TUFN, SRRK of note.

Earnings of Note This Morning:

  • Beats: ATC +0.15, SLVM +0.15, LTH +0.09, FVRR +0.03, KRNT +0.03, OLPX +0.02, WWW +0.02, YETI +0.01, DNUT +0.01.
  • Flat: None of note.
  • Misses: EXK (0.23), NOMD (0.10), PRGO (0.09), EVGO (0.06), PFGC (0.01), WEN (0.01).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SOFI, GFS, SKIN, DV, ELY, MODN, BOOT, JAMF, FLYW, OLO, HRB, ARLO, ZETA, SCSC, ZLAB, MCFT of note.
  • Negative Guidance: HALO, NSTG, U, ARRY, GRWG, MTTR, PRPL, AKA, BIRD, RXT, ICHR, FVRR of note.

Erlanger Research Advance/Decline Chart: Updated through 05/10/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: DM +23%, GSM +18%, NVVE +13%, PRPL +10%, PLBY +10%, CELH +8%, ELY +7%, MTTR +7%, ORGO +6%, HCAT +6%, CUTR +5%, SOFI +5%, PAYA +5%, ALC +5%, HRB +5%, CDLX +5%, TCDA +5%, CCJ +5%, GO +4%, GFS +4%, WYNN +4%, BOOT +4%, LBTYA +4%.
  • Gap Down: U -23%, BIRD -17%, ARRY -15%, GRWG -15%, COIN -14%, INO -12%, ICHR -10%, OLO -10%, COLL -9%, GMED -8%, VUZI -8%, RKT -8%, FLYW -8%, FVRR -7%, RYI -6%, HOWL -6%, APP -6%, GOEV -5%, XENE -5%, EOLS -5%, TTD -4%.

Insider Action: No Stock sees Insider buying with dumb short selling. TNDM sees Insider buying with smart short sellers. 05/10/22 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: WEN DNUT PRGO RBLX U COIN OXY  (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Shanghai reported no community spread. (Bloomberg)
  • Sri Lanka sees politician’s homes burned as descends into further chaos. (CNN)
  • Several Federal Reserve officials admitted they should have moved earlier. (NYT)
  • April CPI to show that inflation has peaked. (CNBC)
  • Robinhood Snacks looks at stablecoins causing crypto chaos as they are unpegged from $1. Upstart (UPST) and Affirm (AFRM) shares plunge but rising rates could help “buy now pay later”.

Moving Average Update:

  • Score fourth day in a row at 0%.  Updated 05/10/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs the White House en route Joint Base Andrews, en route Chicago, Illinois, 10:00 a.m. EDT
    • The President arrives in Chicago, IL, 12:15 p.m. EDT
    • The President visits a family farm to discuss the impact of Putin’s invasion of Ukraine on food supply and prices at home and abroad, and the Biden-Harris Administration’s efforts to give farmers the tools and resources they need to boost domestic food production, 1:45 p.m. EDT
    • The President delivers remarks on Putin’s Price Hike and his Administration’s actions to support farmers and food processors, lower their costs and lower prices for families, 2:15 p.m. EDT
    • The President addresses the 40th International Brotherhood of Electrical Workers (IBEW) International Convention, 5:00 p.m. EDT
    • The President participates in a fundraising reception for the Democratic National Committee, 5:50 p.m. EDT
    • The President departs Chicago, Illinois en route Washington, DC, 7:40 p.m. EDT
    • The President arrives at Joint Base Andrews, 9:35 p.m. EDT
    • The President arrives at the White House, 9:55 p.m. EDT

Economic

  • MBA mortgage applications w.e. 6 May +2.0% vs +2.5% prior.
  • April CPI is due out at 8:30 a.m. EDT and are expected to drop to  0.2% from 1.20%.
  • Atl. Fed Business Inflation 10:00 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT
  • April Treasury Budget is due out at 2:00 p.m. EDT and came in last month at $-192.7 billion.

Federal Reserve Speakers:

  • Federal Research Atlanta President Raphael Bostic 12:00 p.m. EDT 

M&A Activity:

  • Light & Wonder (LNW) announces acquisition of Playzido.
  • General Mills (GIS) has entered into a definitive agreement to acquire TNT Crust.
  • Philip Morris International (PM) affiliate Philip Morris Holland Holdings B.V. announces a recommended cash offer of SEK 106 per share to the shareholders of Swedish Match AB.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Securities Energy Transition Conference 2022 (05/11/22-05/12/22)
    • Bernstein Quantitative Research Conference
    • Canaccord Genuity 2022 US Cannabis Symposium
    • Goldman Sachs Virtual 7th Annual Credit and Leveraged Finance Conference 2022 (05/11/22-05/13/22)
    • Sidoti May Micro Cap Virtual Conference 2022 (05/11/22-05/12/22)
    • Stephens Chicago Bank Trip
      • Previously Announced  Conferences:
        • Goldman Sachs Fixed Income Investor Conference Call 2022
        • Jefferies Solar and EV Conference
        • Barclays Americas Select Franchise Conference 2022 (05/10/22-05/11/22)
        • Citi Global Global Energy, Utilities, and Climate Technology Conference 2022 (05/10/22-05/11/22)
        • Deutsche Bank ADR Virtual Investor Conference 2022 (05/10/22-05/11/22)
        • Morgan Stanley Annual EEMEA Conference 2022 (05/10/22-05/12/22)
        • Goldman Sachs Industrials & Materials Conference 2022 (05/10/22-05/12/22)
        • Waste360/Stifel Investor Summit 2022 (05/09/22-05/12/22)
        • SAP Sapphire & ASUG Accelerate Orlando 2022 (05/10/22-05/12/22)
        • UBS Pan Euro Small & Mid cap conference 2022 (05/10/22-05/13/22)
        • Wolfe Research Virtual Broker Conference 2022 (05/10/22-05/13/22)
        • Bank of America HealthCare Conference (05/09/22-05/13/22)
        • HSBC 9th Annual China Conference 2022 (05/10/22-05/20/22)
  • Company Meetings: AIG, ARW, CF, CVS, D, JNPR, KMI, LH, PSA, RDN, RRC, SPG, TSCO, UA.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ARAV, LITM, LUCD, OTLK, PAVM, RGLD.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: IBM Annual Think Conference.
  • Industry Meetings:
    • Association for Research in Vision and Ophthalmology (ARVO) 2022 Annual Meeting (05/11/22-05/12/22)
      • Previously Posted and Ongoing Conferences:
        • Space Technology Conference (05/10/22-05/11/22)
        • World Federation of Hemophilia (WFH) 2022 World Congress (05/08/22-05/11/22)
        • MoneyShow Las Vegas 2022 (05/09/22-05/11/22)
        • 14th International Conference Myasthenia Gravis and Related Disorders 2022 (05/10/22-05/12/22)
        • 4th Allogeneic Cell Therapies Summit 2022 (05/08/22-05/12/22)

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:

Previous Day’s Upgrades and Downgrades:

About the Author

[Author info unavailable]

Subscribe to Stay Informed

Stay informed by subscribing to information that matters to you. We'll email you when we post new content you want to see.


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.