Overnight Summary: The S&P 500 closed Wednesday at 3935.18 lower by -1.65% from 4001.05 on Tuesday. Futures have traded lower overnight. The overnight high of 3953.75 was hit at 9:55 p.m. EDT. The low was hit at 3891.50 at 5:30 a.m. EDT, a range of 62 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 3915.75 which is -0.37% and -14.50 points.
Earnings Out After The Close:
- Beats: CPA +0.58, DOX +0.30, RIVN +0.23, COOK +0.09, SONO +0.09, ZIP +0.07, CPNG +0.05, FORG +0.05, BMBL +0.04, SLF +0.03, STE +0.02, COCO +0.02, TUFN +0.02, ATCO +0.01, DIBS +0.01.
- Flat: None of note.
- Misses: COHR (0.62), BYND (0.60), APP (0.13), DIS (0.11), FLNC (0.07), PAAS (0.06), MFC (0.05), ACVA (0.04), MQ (0.04), BROS (0.03), SMRT (0.02).
- IPOs Priced or News:
- InstaCart looks to file to go public.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- Amryt Pharma plc (AMYT) files for $150 million ADS offering.
- ES: $1.2 Billion At-the-Market Equity Offering Program.
- XERS: Filed Form 424B5.. Up to $75,000,000 Common Stock.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- Lyra Therapeutics (LYRA) files for 15,521,322 share common stock offering by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- HZN: Filed Form S-3.. $250 Million Mixed Security Shelf
- Convertible Offering & Notes Filed:
- STT: Filed Form 424B3.. $500 Million Fixed-to-Floating Rate Senior Notes due 2033.
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: RIDE +43%,APP +23%, CPNG +19%, SMRT +14%, ENVX +12%, COOK +11%, BMBL +10%, SONO +9%, ZIP +9%, RIVN +8%, COCO +5%, GRPN +5%, SWIR +5%, FLNC +4%.
- Trading Down: BROS -33%, BYND -22%, FOSL -12%, VCSA -9%, ABC -6%, ATCO -4%.
- News Since The Close:
- Stocks making the biggest moves after hours: DIS, BMBL, RIVN, BYND (CNBC)
- Elon Musk’s Belated Disclosure of Twitter (TWTR) Stake Triggers Regulators’ Probes. (WSJ)
- Disney (DIS) reports strong streaming subscriber numbers, warns of Covid impact on parks in Asia. (CNBC)
- Beyond Meat (BYND) shares tumble after company reports widening loss, disappointing revenue. (CNBC)
- Coinbase (COIN) CEO says company has ‘no risk of bankruptcy’ (MarketWatch)
- Rivian (RIVN) stock jumps as the EV automaker says demand remains high and production is on track. (CNBC)
- Abortion-rights vote fails in Senate as Democrats try to codify Roe v. Wade. (MarketWatch)
- Cardinal Health (CAH) awarded $2.25 bln Defense Logistics Agency contract modification.
- Owens & Minor (OMI) awarded $1.125 billion Defense Logistics Agency contract modification.
- North Korea Fired What Could Be a Ballistic Missile – (Japan Coast Guard)
- U.S. COVID update: New wave continues to grow, number in hospital rising – New cases: 158,898 – Average: 85,027 (+5,576) – States reporting: 41/50 – In hospital: 19,775 (+800).
- Assets Under Management: VCTR $166.0 billion, MN $19.6 billion vs. 20.6 last month,
- Russian/Ukraine News:
- Kremlin says Finnish entry to NATO is ‘definitely’ a threat to Russia. Kremlin says Russia is prepared to give the most decisive response to any side which tries to get involved in Ukraine and hinder the special military operation.
- Russian Foreign Ministry: NATO’s Aim Is To Continue Expanding Towards Russia’s Borders, To Create Another Flank For Military Threat To Our Country – RTRS – Russia Will Be Forced To Take Retaliatory Steps, Both Military-Technical And Otherwise.
- Russia oil revenue up 50% this year despite boycott (IEA)
- German economy minister Habeck: We will not raise alert level today. Situation is in flux and can deteriorate. We are receiving 10 million cubic metres less in gas from Russia each day, that can be compensated for.
- Exchange/Listing/Company Reorg and Personnel News:
- Aemetis (AMTX) files to delay its 10-Q.
- Caribou Biosciences (CRBU) Announces Appointment of David Johnson to its Board of Directors.
- Cypress Environmental Partners (CELP) Seeks Chapter 11 Protection, Signs Restructuring Deal.
- Dollar Tree, Inc. (DLTR) Announces Key Additions to its Executive Leadership Team.
- Solo Brands, Inc (DTC) Announces Appointment of Chief Financial Officer and New Board Members.
- SEAS Announces CFO Transition.
- Buyback Announcements:
- AZEK announces $50 million accelerated share repurchase program.
- Lam Research Corporation (LRCX) Announces $5 Billion Share Repurchase Authorization.
- Latham Group (SWIM) approved a stock repurchase program to repurchase up to $100 million of its shares over the next three years.
- SEAS Announces $250 Million Share Buyback.
- Sharecare (SHCR) announces $50 million share repurchase program.
- SQSP $200 Million Share Repurchase Program.
- TPR: Board of Director’s Approval of New $1.5 Billion Share Buyback Authorization.
- XP approves a R$1.0 billion share repurchase program.
- Stock Splits: None of note.
- Dividends Announcements:
- Bunge (BG) increases quarterly cash dividend to $0.625 per share from $0.525 per share.
- Curtiss-Wright (CW) increases quarterly dividend $0.01 to $0.19 per share.
- Kite Realty (KRG) increases quarterly cash distribution $0.01 to $0.21 per share.
- Lam Research Corporation (LRCX) Declares Quarterly Dividend.
- Sun Life (SLF) increases quarterly dividend C$0.03 to C$0.69 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -39, Dow Jones -246, NASDAQ -188, and Russell 2000 -12. Europe and Asian lower. VIX Futures are at 32.58 from 31.59 Wednesday morning and the VIX closed at 32.56 from 33.92 on Friday. 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 lower vs Yen. US 10 year Treasury sees yields at 2.835% from 2.923% yesterday. Bitcoin is at $28,426 from $31,774 Wednesday morning and is lower by -3.65% this morning. As of 8:13 a.m. EDT.
Sector Action – 05/11/22 Close:
- Daily Positive Sectors: Energy, Utilities, Basic Materials of note.
- Daily Negative Sectors: Consumer Cyclical, Technology, Healthcare, Communication Services, Industrials, Financials 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.
Almost can draw a line from all red indexes on top and “other” which is green on the bottom (except FXE down 0.19%). NASDAQ took the brunt of the selling….again….down 3.18%. Updated 05/11/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: MSI, AQN, TOST, AFRM, NEWR, CRSP, DUOL, FIGS, COMP, LAW, VZIO, ME, HRT, TBLA, VTEX, INDI, NVTS, BRLT, UP, VXRT, BLUE of note.
- Friday Before the Open: PLXP of note.
Earnings of Note This Morning:
- Beats: DDS +7.81, NICE +1.80, BAM +0.32, SIX +0.30, NVMI +0.26, KELYA +0.21, TNK +0.20, WE +0.15, SFL +0.13, DTC +0.11, TPR +0.10, DAVA +0.05, PGTI +0.05, HLLY +0.04, SHCR +0.03, UTZ +0.02, NABL +0.02, PRMW +0.02, USFD +0.02, CAMT +0.01, CYBR +0.01.
- Flat: HIMX +0.00, IS +0.00.
- Misses: SQSP (0.78), CEG (0.75), SWIM (0.16), DCBO (0.15), GENI (0.09), CYXT (0.02).
- Still to Report: None of note.
- Positive Guidance: MQ, ZIP, STE, NICE, UTZ, PRMW, DAVA, NVMI, SPTN of note.
- Negative Guidance: DOX, ACVA, BROS, BMBL, FORG, DIBS, APP, HIMX, TPR, NABL, SHCR, WE, IS of note.
Erlanger Research Advance/Decline Chart: Updated through 05/11/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: RIDE +17%, CPNG +17%, SMRT +15%, APP +15%, PCT +8%, ENVX +8%, ZIP +8%, BMBL +7%, GRPN +6%, SONO +6%, FLNC +6%, SWIR +5%, CE +5%, NICE +4%, STM +4%.
- Gap Down: BROS -42%, BYND -24%, FOSL -6%, HIMX -6%, ABC -6%, FORG -5%, MFC -5%, VCTR -5%, DIBS -5%, DIS -5%, COCO -4%.
Insider Action: DFIN, RPD sees Insider buying with dumb short selling. GRPN, JBGS sees Insider buying with smart short sellers. 05/11/22 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: F GM TPR SIX WE SONO BYND RIVN RIDE BMBL (CNBC)
- Editorial: Federal Reserve does not know the speed limit of the economy. (WSJ)
- Finland President Sauli Niinisto supports joining NATO and will apply for membership. (NYT)
- North Korea orders lockdown over first Covid-19 cases. (Bloomberg)
- $200 Billion wiped off crypto market in a day. (Bloomberg)
- Federal Reserve St. Louis President James Bullard , i.e. “The Uber Hawk”, does not see a need for a 75 basis point rate hike “for now”. (Reuters)
- The Biden Administration has cancelled major oil and gas leases in the Gulf of Mexico and Alaska. (Axios)
- Lawmakers are looking into baby formula shortages. (Bloomberg)
- Volkswagen (VWAGY) see EV to be as profitable as gas cars sooner than expected. (Reuters)
Moving Average Update:
- Score fifth day in a row at 0%. Updated 05/11/22 close.
- President’s Public Schedule:
- The President and The Vice President receive the President’s Daily Brief, 10:15 a.m. EDT
- Press Briefing by Press Secretary Jen Psaki, 2:30 p.m. EDT
- The President welcomes the Leaders of ASEAN countries and the ASEAN Secretary General to the White House and takes a family photo as part of the U.S.-ASEAN Special Summit, 5:30 p.m. EDT
- The President hosts a dinner for the Leaders of ASEAN countries and the ASEAN Secretary General, 6:00 p.m. EDT
- April PPI is due out at 8:30 a.m. EDT and is expected to come in at 0.6% from 1.0%.
- Initial Jobless Claims 8:30 a.m. EDT
- EIA Natural Gas Report 10:30 a.m. EDT
Federal Reserve Speakers:
- Federal Reserve San Francisco President Mary Daly 4:00 p.m. EDT
- Pebblebrook Hotel Trust (PEB) acquires Inn on Fifth in Naples, Florida for $156.0 million..
Meeting & Conferences of Note:
- Sellside Conferences:
- Bernstein Alcohol & ESG Conference
- BMO Capital Markets 2022 Real Estate Summit
- Credit Suisse Renewables and Utilities Conference 2022
- Cowen 2nd Annual European Cannabis Conference 2022
- UBS APAC Sustainable Finance Conference
- Wolfe Research Consumer Conference 2022 (05/12/22-05/13/22)
- Previously Announced Conferences:
- Goldman Sachs Fixed Income Investor Conference Call 2022
- Bank of America Securities Energy Transition Conference 2022 (05/11/22-05/12/22)
- Sidoti May Micro Cap Virtual Conference 2022 (05/11/22-05/12/22)
- 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)
- Goldman Sachs Virtual 7th Annual Credit and Leveraged Finance Conference 2022 (05/11/22-05/13/22)
- 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)
- Previously Announced Conferences:
- Company Meetings: AEE, AKAM, ATI, BG, F, FLS, HOG, INTC, KEY, LVS, MAS, NSC, NUE, PAG, RIG, SNBR, UNP, VZ.
- Fireside Chat: CULP (w/ Water Tower).
- Investor/Analyst Day/Calls: BCO, DZSI, FSLY, IBM, MU, NET, RLGY, STM, WRK, VOYA.
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Biomed Israel 2022 Conference
- International Society for Autism Research Annual Meeting
- Retina World Congress (05/12/22-05/15/22)
- Previously Posted and Ongoing Conferences:
- Association for Research in Vision and Ophthalmology (ARVO) 2022 Annual Meeting (05/11/22-05/12/22)
- 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)
- 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: