Overnight Summary: The S&P 500 closed Wednesday at 3923.28 (lower by -4.04%) from 4088.85 on Tuesday. Futures have traded lower overnight. The overnight high of 3933 was hit at 9:55 p.m. EDT. The low was hit at 3856 at 5:45 a.m. EDT, a range of 77 points high to low which is above the typical range of late with 45 the average. At 7:55 a.m. EDT the current price is 3888.75 which is -0.87% and 34 points.
Earnings Out After The Close:
- Beats: SNPS +0.13, BBWI +0.12, CSCO +0.01.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- INKA Near, a Global Leader in Privacy-Led Data Intelligence, to go Public on Nasdaq via a Merger with KludeIn I Acquisition Corp.
- REVE: Alpine Acquisition Corporation Signs Definitive Agreements to Acquire Two Bit Circus, Inc. and Two Convention Hotels..
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- AUTL: Filed Form 424B3.. 12,180,333 American Depositary Shares.
- BRTX: Filed Form S-3.. 1,856,938 Shares of Common Stock.
- ZNTL: Closing of Underwritten Offering of Common Stock.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- ContextLogic (WISH) director sells $3.7M in common stock.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- GANX: Filed Form S-3.. $100 Million Mixed Security Shelf.
- Convertible Offering & Notes Filed:
- Arch Coal (ARCH) announces exchanges with holders of approximately $125.2 million principal amount of convertible notes.
- Carnival Corporation & plc (CCL) Announces Pricing of $1.0 Billion Senior Unsecured Notes due 2030 to Refinance 2023 Maturities.
- HCI Group (HCI) announces private placement of $150 million aggregate principal amount of convertible senior notes due 2042.
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: AUR +5%, SNPS +3%, IRT +3%.
- Trading Down: ENTA -17%, CSCO -12%, JNPR -6%, CIEN -6%, BBWI -6%, ANET -5%, GMED -5%.
- News Since The Close:
- Stocks making the biggest moves after hours: SNPS, CSCO, BBWI (CNBC)
- Bath & Body Works (BBWI) stock falls after retailer lowers 2022 guidance. (MarketWatch)
- Cisco (CSCO) stock plunges as company forecasts surprising revenue decline. (CNBC)
- “.. a staggering 68% of CEOs surveyed by The Conference Board expect the Fed’s war on inflation will eventually trigger a recession.” (Carl Q Tweet CNBC)
- General Dynamics (GD) awarded $310 million Navy contract.
- Spirit Airlines (SAVE) Board of Directors Urges Stockholders to Reject JetBlue (JBLU) Tender Offer.
- Federal Reserve Philadelphia President Patrick Harker:
- This economy can withstand a measured, and methodical tightening of financial conditions.
- I still think we can have a soft landing.
- There is the risk of negative growth.
- We are going into this with everything, except inflation, looking good.
- I am less worried about a deep recession.
- I am not forecasting a deep recession.
- Russian/Ukraine News
- Cisco (CSCO) says pulling out of Russia cost $200 million in revenue.
- Exchange/Listing/Company Reorg and Personnel News:
- Abeona Therapeutics (ABEO) Granted Second 180-Day Period by Nasdaq to Regain Compliance with Minimum Bid Price Rule.
- Adamis Pharmaceuticals (ADMP) Announces Leadership Transition to Support New Phase of Innovation and Growth.
- Coastal Financial (CCB) announced the hiring of Curt Queyrouze as President.
- HF Foods (HFFG) Announces Receipt of Additional Non-Compliance Letter From Nasdaq.
- NYSE to Suspend Trading Immediately in ION Geophysical Corporation (IO) and Commence Delisting Proceedings.
- Kohl’s (KSS) says two top executives are leaving, as company seeks buyer. (CNBC)
- MEDIROM Healthcare Technologies Inc. (MRM) Receives Notification from Nasdaq Related to Delayed Filing of Annual Report.
- Mercurity Fintech Holding Inc. (MFH) plans to take appropriate measures after receiving the Nasdaq deficiency notice.
- Ocwen Financial (OCN) appoints Sean O’Neil as CFO.
- Superior Drilling Products, Inc. (SDPI) Regains Compliance with NYSE American Continued Listing Standards.
- TDCX (TDCX) to Be Included in the MSCI Global Small Cap Index.
- Under Armour (UAA) CEO Patrik Frisk will step down. (CNBC)
- Uxin (UXIN) Announces Receipt of Notification from Nasdaq.
- Buyback Announcements:
- Alamos Gold (AGI) Enters into Automatic Share Purchase Plan and Announces Share Repurchases Under Normal Course Issuer Bid.
- Digihost (DGHI) Announces Launch of 1.22 million Share Buyback Program.
- Eagle Materials (EXP) increases share repurchase authorization.
- Group 1’s (GPI) announced that its board of directors increased the Company’s common stock share repurchase authorization by $175 million to $250 million.
- Independence Realty Trust (IRT) authorizes $250 million share repurchase program.
- VRTS Common Stock, Increases Share Repurchase Authorization.
- Stock Splits: None of note.
- Dividends Announcements:
- Advanced Drainage Systems (WMS) Announces Increase in Quarterly Cash Dividend.
- Group 1’s (GPI) Board of Directors also declared a cash dividend of $0.37 per share .
- Independence Realty Trust (IRT) increases quarterly dividend $0.02 to $0.14 per share.
- NACCO Industries, Inc. (NC) raises quarterly dividend to $0.2075 per share from $0.1975.
- Packaging Corp (PKG) intends to increase its quarterly dividend 25% to an annual payout of $5.00 per share.
- United Fire Group (UFCS) increases quarterly dividend 6.7% to $0.16 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -30, Dow Jones -243, NASDAQ -100, and Russell 2000 -12. Europe lower and Asian lower ex Shanghai. VIX Futures are at 31.90 from 27.90 yesterday morning and the VIX closed at 30.96 from 26.10 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower and Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.842% from 2.995% from yesterday morning. Bitcoin is at $29,326 from $29,801 yesterday morning and is higher by 0.30% this morning. As of 8:13 a.m. EDT.
Sector Action – 05/18/22 Close:
- Daily Positive Sectors: Definitely none of note.
- Daily Negative Sectors: ALL but Consumer Defensive, Consumer Cyclical, Technology, Industrials, Communication Services, Basic Materials of note.
- One Month Winners: None of note.
- Three Month Winners: Energy, Utilities and Consumer Defensive of note.
- Six Month Winners: Energy, Utilities, and Consumer Defensive of note.
- Twelve Month Winners: Energy, Utilities, and Consumer Defensive of note.
- Year to Date Winners: Energy of note.
Should be a rule that I do not use the term lipstick on a pig twice in a month (05/06/22)….but here we are again. Ugly action. Can’t put lipstick on a pig with today. Updated 05/18/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: AMAT, PANW, ROST, VFC, DECK, FLO, AINV of note.
- Friday Before the Open: DE, BAH, FL of note.
Earnings of Note This Morning:
- Beats: VIPS 0.19, BJ 0.15, EXP 0.07, GOOS 0.05.
- Flat: None of note.
- Misses: KSS (0.59), PLCE (0.41), MNRO (0.26), WMS (0.10).
- Still to Report: LSPD.
- Positive Guidance: SNPS, WMS of note.
- Negative Guidance: CSCO, BBWI, VIPS, KSS, PLCE of note.
Erlanger Research Advance/Decline Chart: Updated through 05/18/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: DMTK +10%, SQM +5%, RCKT +5%, SNPS +4%.
- Gap Down: ENTA -15%, CSCO -12%, BBWI -8%, ANET -7%, JNPR -6%, VIPS -6%, CIEN -6%, UAA -5%, VUZI -5%, GMED -5%, TRQ -4%, AVGO -4%.
Insider Action: SCM, CVNA, AHCO sees Insider buying with dumb short selling. VITL, BCOV sees Insider buying with smart short sellers. 05/18/22 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: KSS BJS SAVE (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- Shanghai reopens subways as restrictions ease. (ABC News)
- China in talks to buy more oil from Russia for its strategic reserve. (Bloomberg)
- Ebola fatalities in Congo raise concern of a more virulent strain. (Bloomberg)
- Department of Homeland Security expects violence at the Supreme Court after Roe v Wade decision. (Axios)
- Covid-19 cases on the rise in the U.S. as 32% of Americans live in medium to high transmission areas. (NYT)
- Research suggests that gasoline could hit $5 a gallon this summer. (CNBC)
- Democrats demanding that President Biden forgive $50,000 of student debt. (Bloomberg)
- More subprime borrowers are missing car and mortgage payments. (WSJ)
- Kohl’s (KSS) missed wide as joins other retailers struggling in this earnings season. (Market Watch)
- Google (GOOGL) Russian unit to file for bankruptcy. (Reuters)
- Joby Aviation (JOBY) looks to acquire Avionyx. (Tech Crunch)
- Russian control of Mariupol raises concerns of grain shortages. (NY Times)
- Robinhood Snacks looks at Walmart (WMT) and Target (TGT) who are eating inflation costs and reflected in earnings. Block (SQ) Head Dorsey looks at crypto concert tickets.
Moving Average Update:
- Slammed back to a score of 0% and jumping head first into the red sea. Updated 05/18/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 8:30 a.m. EDT
- Prime Minister Magdalena Andersson of Sweden and President Sauli Niinistö of Finland arrive at the White House, 9:00 a.m. EDT
- The President, The Vice President, Prime Minister Magdalena Andersson of Sweden, and President Sauli Niinistö of Finland meet to discuss Finland’s and Sweden’s NATO applications and European security, as well as strengthening our close partnerships across a range of global issues and support for Ukraine, 9:15 a.m. EDT
- The President, Prime Minister Magdalena Andersson of Sweden, and President Sauli Niinistö of Finland deliver brief remarks; The Vice President attends, 10:30 a.m. EDT
- The President departs the White House en route Joint Base Andrews, 11:30 a.m. EDT
- The President departs Joint Base Andrews en route Anchorage, Alaska, 12:00 p.m. EDT
- The President arrives in Anchorage, Alaska, 7:00 p.m. EDT
- The President departs Anchorage, Alaska en route Seoul, South Korea, 8:30 p.m. EDT
- May Philadelphia Fed Index is due out at 8:30 a.m. EDT and expected to drop to 16.5 from 17.6.
- Initial Jobless Claims 8:30 a.m. EDT
- April Existing Home Sales are due out at 10:00 a.m. EDT and are expected to fall to 5.68 million from 5.77 million.
- April Leading Indicators are due out at 10:00 a.m. EDT are expected to fall to 0.0% from 0.3%,
- EIA Natural Gas Report 10:30 a.m. EDT
- Fed Balance Sheet 4:30 p.m. EDT
Federal Reserve Speakers:
- Federal Reserve Michael Barr Speech 10:00 a.m. EDT
- Federal Reserve Minneapolis President Neel Kashkari Speech 4:00 p.m. EDT
- Chart Industries (GTLS) Acquires Cryogenic Service Center AB (CSC).
- HealthStream (HSTM) announces acquisition of CloudCME in cash and stock transaction.
Meeting & Conferences of Note:
- Sellside Conferences:
- Berenberg Emerging Biotech Conference 2022
- Barrington Research 16th Annual Virtual Spring Conference 2022
- Citigroup Lithium & Battery Day
- Jefferies Virtual Metaverse and NFT Summit 2022
- Morgan Stanley Global Ingredients Day
- Tudor Pickering Holt: Hotter ‘N Hell Energy Conference 2022
- Sequire Tech & Fintech Conference 2022
- Previously Announced Conferences:
- Bank of America Global Metals, Mining and Steel Conference 2022 (05/17/22-05/19/22)
- Bank of America Securities Transportation Airlines & Industrials Conference 2022 (05/17/22-05/19/22)
- BMO Global Farm to Market Conference (05/18/22-05/19/22)
- Citigroup Regional Tech Conference (05/18/22-05/20/22)
- Citi BioTECH Virtual Co-Panel Day 2022
- Citi Mood Disorder: Mental Health Panel 2022
- Citigroup Frontier Markets Symposium
- HSBC 9th Annual China Conference 2022 (05/10/22-05/20/22)
- JP Morgan European Technology, Media and Telecoms Conference 2022 (05/17/22-05/19/22)
- JP Morgan Global Hydrogen Week
- Microcap Rodeo Spring Into Action Best Ideas Conference 2022 (05/16/22-05/20/22)
- MoffettNathanson 9th Annual Media & Communications Summit 2022 (05/18/22-05/19/22)
- Needham 17th Annual Technology & Media Conference 2022 (05/16/22-05/19/22)
- Nomura KAKUSHIN Seminar
- RBC Capital Markets Canadian Automotive, Industrials and Transportation Conference 2022 (05/17/22-05/19/22)
- UBS Best of Europe One-on-One Conference 2022 (05/17/22-05/19/22)
- Wells Fargo Financial Services Investor Conference (05/18/22-05/19/22)
- Previously Announced Conferences:
- Company Meetings: AAP, CB, CNO, DFS, HD, HST, HTZ, JBLU, MMC, MO, MOS, NEE, PCG, T, TEX, WU, XRX, YUM.
- Fireside Chat:
- RedHill (RDHL) Biopharma Barclays 2022 Spec Pharma Mgmt Fireside Chat Call Series.
- Investor/Analyst Day/Calls: ALRN, COWN, DRUG, EPAM, FLYW, PRVB, SQZ, TCRX, WAT, WD, WIX.
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Julius Baer Group Ltd. Strategy Update 2022.
- Industry Meetings:
- None of note.
- Previously Posted and Ongoing Conferences:
- Society For Investigative Dermatology Annual Meeting (SID) 2022(05/1/22-05/21/22)
- American Gas Association AGA Financial Forum 2022(05/17/22-05/19/22)
- Wall Street Journal Future of Everything Festival 2022 (05/17/22-05/19/22)
- ABGSC Life Science Summit (05/15/22-05/19/22)
- 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:
Previous Day’s Upgrades and Downgrades: