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09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 05/24/22: Stocks Give Up Some of Monday’s Gains On Snap Guide Lower After The Close"

posted by CAPIS on 05/24/2022 at 8:14 am

by CAPIS

05/24/2022 at 8:14 am

Overnight Summary: The S&P 500 closed Monday at 3973.75 (higher by 1.86%) from  3901.36  on Friday.  Futures have traded lower overnight. The overnight high of 3952.75 was hit at 6:05 p.m. EDT. The low was hit at 3910 at 3:50 a.m. EDT, a range of 42 points high to low which is the typical range of late with 45 the average. At 7:25 a.m. EDT the current price is 3934 which is -0.95% and -37.75 points.

Breaking News: Goldman Sachs says stocks will bottom once  Federal Reserve signals shift to tightening. (Bloomberg)

Earnings Out After The Close:

  • Beats: SKY + 0.50, ZM +0.15, NDSN +0.14, WKME +0.02.
  • Flat: None of note.
  • Misses: AAP (0.02).

Capital Raises:

  • IPOs Priced or News:
    • NYSE’s Martin says IPO pipeline is `incredibly strong.’
  • New SPACs launched/News:
    • Lionheart Acquisition Corporation II (LCAP): MSP Recovery, Inc. begins trading on Nasdaq under the symbol “MSPR” on May 24.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • XELA: Filed Form 424B5.. Up to $250,000,000 Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • Holly Energy Partners (HEP) files for 59,630,030 common unit offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • Holly Energy Partners (HEP) files for $2 billion mixed securities shelf offering.
    • PRA: Filed Form S-3ASR.. Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • Cutera, Inc. (CUTR) Announces Proposed Private Offering of $200 Million of Convertible Senior Notes DUE 2028.
    • Take-Two Interactive Software (TTWO) Announces Offers to Purchase by Zynga Inc. of Any and All of Zynga’s Outstanding 0.25% Convertible Senior Notes due 2024 and 0% Convertible Senior Notes due 2026.

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: ZM +6%, ESEA +5%.
    • Trading Down: SNAP -28%, INMB -19%, PINS -11%, TTD -10%, MGNI -9%, FB -8%, ROKU -5%, TWTR -4%, PUBM -4%..
  • News Since The Close:
    • Chinese and Russian warplanes enter South Korea’s Air Defense Zone without notice, Yonhap reports.
    • Snap (SNAP) plunges more than 20% after CEO warns company will miss revenue and earnings estimates, slows hiring. (CNBC)
    • Raytheon Technologies (RTX) awarded $420 million Navy contract.
    • Airbnb (ABNB) is closing its domestic business in China, sources say. (CNBC)
    • SpaceX President defends Elon Musk over sexual misconduct claims: ‘I believe the allegations to be false.’ (CNBC)
    • Russian/Ukraine News
      • Russian Soldier Sentenced to Life in Prison in Ukraine War-Crimes Trial. (WSJ)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Arcellx (ACLX) announces appointment of Michelle Gilson as CFO.
    • Allied Esports Entertainment (AESE) Receives Notification from Nasdaq Related to Delayed Quarterly Report On Form 10-Q.
    • Legacy Housing Corporation (LEGH) Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q.
    • OraSure (OSUR) appoints Carrie Eglinton Manner as CEO.
    • Statera Biopharma (STAB) Receives Notification Letter from Nasdaq Regarding Form 10-Q Filing.
    • UDR appoints Joe Fisher to role of President, in addition to current role as CFO.
  • Buyback Announcements:
    • BellRing Brands (BRBR) Announces New Share Repurchase Authorization of $50 Million.
    • Comfort Systems USA (FIX) Increases Stock Repurchase Program up to 1.0 million shares.
    • DocGo (DCGO) Announces Share Repurchase Program of Up To $40 Million.
    • Euroseas Ltd. (ESEA) Announces Share Repurchase Program of $20 million.
    • FormFactor, Inc. (FORM) Announces $75 Million Stock Repurchase Authorization.
  • Stock Splits:
    • AMZN Shareholders Set to Approve 20-for-1 Stock Split Trading is expected to begin on a split-adjusted basis on June 6, 2022.
  • Dividends Announcements:
    • Euroseas Ltd. (ESEA) Declares Quarterly Common Stock Dividend of $0.50 per share.

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

S&P 500 -43, Dow Jones -208, NASDAQ -203, and Russell 2000 -15.  Europe lower and Asia lower.  VIX Futures are at 29.40 from 28.91 Monday morning and the VIX closed at 28.48 from 29.43 on Friday. Gold and  Silver higher with Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.819% from 2.824% Monday morning. Bitcoin is at $29,293.90 from $30,363 yesterday morning and is higher by 0.21% this morning. As of 8:10 a.m. EDT.

Sector Action – 05/23/22 Close:  

  • Daily Positive Sectors: Energy, Financial, Basic Materials, Technology, Consumer Defensive, Communication Services, Industrial of note.
  • Daily Negative Sectors: None of note.
  • One Month Winners: Energy of note.
  • Three Month Winners: Energy, Utilities and Healthcare of note.
  • Six Month Winners: Energy, Utilities, and Basic Materials of note.
  • Twelve Month Winners: Energy and Utilities of note.
  • Year to Date Winners: Energy of note.

All indexes ended higher in a sea of green.  SPX finished at 3973 for a 1.86% gain.  UNG was up 8.44% and TLT pulled back to 116.65 for a 1.57% loss.  Updated 05/23/22 close.

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

  • Tuesday After the Close: INTU, A, TCOM, TOL, JWN, URBN, RAMP, CAL of note.
  • Wednesday Before the Open: BNS, BMO, DKS, DY, CMCO, PLAB of note.

Earnings of Note This Morning:

  • Beats: AZO +2.96, NTES +0.69, CSIQ +0.23, ATHM +0.09, WOOF +0.02, BBY +0.01.
  • Flat: DOLE, FRO.
  • Misses: ANF (0.36).
  • Still to Report: RL.

Guidance:

  • Positive Guidance: ZM, ALB, CSIQ, DOLE of note.
  • Negative Guidance: WKME, SNAP, BBY, ANF of note.

Erlanger Research Advance/Decline Chart: Updated through 05/23/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ZM +6%, ROIV +5%.
  • Gap Down: SNAP -29%, INMB -21%, PINS -12%, TTD -8%, MGNI -7%, FB -7%, API -6%, ROKU -4%.

Insider Action: KBR, CVNA, DDD, AN sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 05/23/22 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: BBY ANF SNAP (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • White House is split on removal of tariffs on China to help with inflation. Many perceive removal would show us as “weak on China”. (NYT)
  • Secretary of State Blinken to give a speech on Thursday outlining China policy. (Politico)
  • Dexcom (DXCM) may bid for Insulet (PODD). (Bloomberg)
  • Toyota (TM) may lower global production amid chip shortage. (Reuters)
  • Uber (UBER) freezes hiring but will not eliminate jobs. (Business Insider)
  • Abercrombie & Fitch (ANF) missed estimates and lowered guidance, subsequently the stock is down -21% this morning. (MarketWatch)
  • Autozone (AZO) put up a strong beat. (Marketwatch)
  • Walmart (WMT) expands drone service to reach 4 million people. (CNBC)
  • Robinhood Snacks looks at Boeing (BA) as enters the space market to compete against SpaceX. Monkeypox spreads globally.

Moving Average Update:

  • Score goes from 3% to 26%.  Updated 05/23/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President participated in a bilateral meeting with Prime Minister Narendra Modi of India, 1:30 a.m. EDT (Release)
    • The President participated in a bilateral meeting with Prime Minister Anthony Albanese of Australia, 2:15 a.m. EDT (Release)
    • The President greeted with staff of U.S. Embassy Tokyo, 3:25 a.m. EDT
    • The President departed Tokyo, Japan en route Fussa, Tokyo, Japan, 4:45 a.m. EDT
    • The President departed Fussa, Tokyo, Japan en route Anchorage, Alaska, 5:10 a.m. EDT
    • The President arrives in Anchorage, Alaska, 12:15 p.m. EDT
    • The President departs Anchorage, Alaska en route Washington, DC, 1:45 p.m. EDT
    • The President arrives at Joint Base Andrews, 8:20 p.m. EDT
    • The President arrives at the White House, 8:40 p.m. EDT
  • World Economic Forum continues in Davos, Switzerland.

Economic

  • Redbook Sales 8:55 a.m. EDT
  • CaseShiller HPI 9:00 a.m. EDT
  • PMI Composite Flash 9:45 a.m. EDT 
  • April New Home Sales are due out at 10:00 a.m. EDT and are expected to fall to 750,000 from 763,000.
  • Richmond Fed Mfg Index 10:00am ET
  • API Crude Oil Data 4:30 p.m. EDT 
  • The latest NYSE and NASDAQ Short Interest from the 27th of April through May 11th is due out and during that period the S&P 500 fell -5.95%. 

Federal Reserve Speakers:

  • Kansas City Federal Reserve President Esther George (voting FOMC member) full speech here.
  • Federal Research Chair Jerome Powell 12:20 p.m. EDT

M&A Activity:

  • CynergisTek Inc. (CTEK) Enters into a Definitive Agreement to be Acquired by Clearwater in a $17.7 million Transaction.
  • Cosan (CSAN) subsidiary acquires PetroChoice Lubrication Solutions for $479 million.
  • Installed Building Products (IBP) acquires Tri-County Insulation and Acoustical Contractors.
  • IPI Partners (STEP) to Acquire Swiss Data Center Leader Safe Host.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bernstein Agriculture Conference
    • BNP Future of Packaging Conference
    • BTIG Restaurant Technology Forum 2022
    • Cowen 6th Annual Future of the Consumer Conference 2022 (05/24/22-05/25/22)
    • Credit Suisse Healthy, Active Lifestyle and Outdoor Investment Summit (05/24/22-05/25/22)
    • Jefferies Virtual Renewable Energy Conference: Key Debate Across the Value Chain 2022 (05/24/22-05/27/22)
    • JP Morgan West Coast Investor Day
    • Morgan Stanley Virtual China Summit 2022 (05/24/22-05/26/22)
    • Morgan Stanley Global Towers Symposium 2022
    • Morgan Stanley Global Ingredients Conference
    • RBC Capital Markets Global Datacenter, Cloud and Broadband Infrastructure Conference 2022 (05/24/22-05/25/22)
    • Truist Financial Services Conference 2022 (05/24/22-05/25/22)
    • Wolfe Research 14th Annual Global Transportation & Industrials Conference 2022 (05/24/22-05/26/22)
  • Previously Announced  Conferences:
    • Barclays High Yield Bond & Syndicated Loan Conference 2022 (05/23/22-05/26/22)
    • Berenberg Conference USA 2022 (05/23/22-05/25/22)
    • H.C. Wainwright Global Investment Conference 2022 (05/23/22-05/26/22)
    • HC Wainwright Global Life Sciences Conference 2022 (05/23/22-05/26/22)
    • JP Morgan 50th Annual Global Technology Media and Communications Conference 2022 (05/23/22-05/25/22)
    • Morgan Stanley 6th Annual Sustainable Futures Conference 2022 05/23/22-05/24/22)
    • Piper Sandler Ophthalmology and Diabetes Symposium 2022 (05/23/22-05/25/22)
    • UBS Global Healthcare Conference 2022 (05/23/22-05/25/22)
    • Oppenheimer 23rd Annual Israeli Conference 2022 (05/21/22-05/24/22)
  • Company Meetings: ALL, MRK, NI, NOV, TRGP.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AVID, GFL, MMS, SUM, TALO, WKME.
  • Update: CLBS, CATC.
  • R&D Day: None of note.
  • Company Event: CPTN
  • Industry Meetings:
    • Sachs 8th Annual Immuno-Oncology Innovation Forum 2022 (05/24/22-05/25/22)
      • Previously Posted and Ongoing Conferences:
        • Cambridge Healthtech Institute(R)s 6th Annual Immuno-Oncology Summit Europe 2022 (05/23/22-05/25/22)
        • Bioinformatics Strategy Meeting East Coast USA 2022
        • Psychedelic Therapeutics and Drug Development Conference 2022 (05/23/22-05/24/22)
        • Annual Digestive Disease Week Meeting DDW 2022 (05/21/22-05/24/22)
        • European Society of Cardiology Heart Failure Conference 2022 (05/21/22-05/24/22)
        • National Restaurant Association Show 2022 (05/21/22-05/24/22)
        • 24th European Congress of Endocrinology ECE 2022 (05/21/22-05/24/22)
        • American Psychiatric Association Annual Meeting (in-person) 2022 (05/21/22-05/25/22)
        • American Association of Orthodontics (AAO) Annual Session 2022 (05/21/22-05/24/22)
        • 16th EILAT Conference on New Antiepileptic Drugs and Devices (05/21/22-05/25/22)

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:

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