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06.24.2022 13 new Morning Note posts under Morning Note (9) and CAPIS Insights (4)

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Morning Note

"CAPIS Morning Note – 05/25/22: Futures Slide Prior to the 2 p.m. EDT FOMC Minute Release"

posted by CAPIS on 05/25/2022 at 8:12 am

by CAPIS

05/25/2022 at 8:12 am

Overnight Summary: The S&P 500 closed Tuesday at 3941.48 (lower by -0.81%) from 3973.75 (higher by 1.86%) on Monday. Futures have traded mixed overnight. The overnight high of 3969 was hit at 12:00 a.m. EDT. The low was hit at 3929 at 5:20 a.m. EDT, a range of 40 points high to low which is the typical range of late with 45 the average. At 7:15 a.m. EDT the current price is 3935 which is -0.13% and -5.25 points.

Earnings Out After The Close:

  • Beats: CAL +0.49, TOL +0.23, INTU +0.07, A +0.01.
  • Flat: None of note.
  • Misses: URBN (0.09), RAMP (0.03), JWN (0.02).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • CUTR: Announces Pricing of Offering of $200 Million and Concurrent Private Placement of $10 Million of Convertible Senior Notes.
    • KDNY: offering of 6,428,572 shares of its common stock at $14.00 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ANGN: Filed Form 424B5.. $21,000,000 Common Stock.
    • CRXT: Filed Form S-1.. Up to 1,300,000 Shares of Common Stock.
    • INVZ: Filed Form F-3.. PRIMARY OFFERING OF 16,231,141 Ordinary Shares Underlying Warrants SECONDARY OFFERING OF 12,614,863 Ordinary Shares.
    • SLNH: Closing of $1.29 Million Public Offering of Series A Preferred Stock from Exercise of Over-Allotment Option.
  • Pricing of Over-Allotment/Notes:
    • IDCC: Announces Upsize and Pricing of Private Offering of $400 Million of 3.50% Senior Convertible Notes.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • RAPT: Announces Private Placement Financing of $50 Million.
  • Mixed Shelf Offerings:
    • BV:  files for $500 million mixed securities shelf offering; also files for 50,633,123 share common stock offering by selling shareholders.
    • FNCH: Filed Form S-3.. $200,000,000 Mixed Shelf.
    • KDNY: Filed Form S-3ASR.. Mixed Shelf Offering.
  • Convertible Offering & Notes Filed:
    • NBIX: repurchases $179.4 million of 2.25% Convertible Senior Notes due 2024.

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: WEN +20%, CAL +12%, JWN +11%, RICK +10%, DDS +5%, TOL +5%.
    • Trading Down: VRCA -38%, IDCC -8%, KDNY -6%.
  • News Since The Close:
    • Stocks making the biggest moves after hours:  JWN, URBN, INTU (CNBC)
    • Nordstrom (JWN) stock rockets higher after earnings beat, increase in annual forecast. (MarketWatch)
    • Lyft (LYFT) to Pause Hiring and Reduce Budgets to Reduce Costs as Shares Plunge Amid Investor Concerns. (WSJ)
    • North Korea Fires Three Ballistic Missiles Days After South Korea, US Summit – (Reuters)
    • Tesla (TSLA) CEO Elon Musk and Twitter’s (TWTR) board are expected to square-off at the social media giant’s annual shareholder meeting on Wednesday. (Reuters)
    • Russian/Ukraine News
      • NKE To leave Russia retail market; All of its local stores will close after stocks are exhausted. (Reuters)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Alfi (ALF) Regains Compliance with Nasdaq Listing Rule 5250(c)(1).
    • Cheetah Mobile (CMCM) Receives Notification from NYSE Regarding Delayed Form 20-F Filing.
    • COMSovereign (COMS) Receives Notice from Nasdaq Regarding Delayed Quarterly Report.
    • Dolphin Entertainment (DLPN) Announces Receipt of Notice from Nasdaq Regarding Delayed Filing of Quarterly Report on Form 10-Q.
    • Electric Last Mile Solutions (ELMS) Announces Receipt of Notice from Nasdaq Regarding Late Filing of Quarterly Report on Form 10-Q.
    • Missfresh (MF) Announces Receipt of Nasdaq Notification Regarding Late Filing of Form 20-F.
    • MICT Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1) regarding its Inability to File its Form 10-Q Due to the Impact of Strict COVID-19 Lockdown Restrictions in China.
    • Prudential Plc (PUK) names Anil Wadhwani as CEO.
    • Quotient (QUOT) appoints Matt Krepsik to CEO position, effective immediately.
    • ShiftPixy, Inc. (PIXY) Announces Management Changes.
  • Buyback Announcements:
    • JWN: Board of directors authorizes new $500 million share repurchase program.
    • Oppenheimer Holdings Inc. (OPY) Announces Share Repurchase Program of up to 550,000 shares.
    • LiveRamp (RAMP) intends to repurchase approximately $150 million of common stock by end of 3Q23.
    • RCI Hospitality (RICK) Board Ups Buyback Authorization By $25 Million.
    • Telos Corporation Announces (TLS) $50 Million Share Repurchase Authorization.
    • Toll Brothers (TOL) announces $900 Million share repurchase plan.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Star Bulk Carriers Corp. (SBLK) Declares Quarterly Dividend of $1.65 Per Share.

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

S&P 500 -14, Dow Jones -132, NASDAQ -69, and Russell 2000 -6. Europe higher ex France and Asia closed higher ex Japan.  VIX Futures are at 29.40 from 28.91 yesterday morning and the VIX closed at 29.45  from 28.48 yesterday. Gold, Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.723% from 2.819% Tuesday morning. Bitcoin is at $29,527 from $29,293.90 yesterday morning and is higher by 0.64% this morning. As of 8:08 a.m. EDT.

Sector Action – 05/24/22 Close:  

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

A mixed day for the markets with the NASDAQ taking a 2.35% hit and the Dow Jones Industrial Average squeeking out a 0.15% gain.  TLT closed at $118.86 for a 1.97% gain.  Updated 05/24/22 close.

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

  • Wednesday After the Close: NVDA, SPLK, WSM, CHNG, DXC, MIME, NTNX, VSAT, ENS, ZUO, GES, ELF of note.
  • Thursday Before the Open: BABA, RY, MDT, TD, DG, CM, BIDU, DLTR, M, ROLL, SAFM, HLNE, BRC, JACK, AMWD, GCO, TITN, BZUN of note.

Earnings of Note This Morning:

  • Beats: DY +0.35, DKS +0.32, BNS +0.22, PLAB +0.14, BMO +0.01.
  • Flat: CMCO.
  • Misses: SGHC (0.42).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: INTU, JWN, CAL, PLAB of note.
  • Negative Guidance: RAMP, CMCO, DKS of note.

Erlanger Research Advance/Decline Chart: Updated through 05/24/22 close.

 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: WEN +10%, PLAB +10%, JWN +9%, CWEN +6%, CAL +6%, VNET +5%, SPWR +5%, URBN +4%.
  • Gap Down: VRCA -55%, KDNY -7%, IDCC -6%, INVZ -5%, EGLX -4%.

Insider Action: KYMR, ELAN, TXRH, AHCO sees Insider buying with dumb short sellingHMST, AOMR sees Insider buying with smart short sellers. 05/24/22 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: DKS, EXPR, WEN, DELL, LYFT, JWN  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Apple’s (AAPL) iPhone development schedule delayed by China lockdowns. (Nikkei)
  • Toyota (TM) Revs Up Race With Tesla (TSLA). (WSJ)
  • Dick’s Sporting Goods (DKS) shares sink 17% after retailer cuts outlook for the year, joining broader retail trend. (CNBC)
  • Wendy’s (WEN) stock rallies 15% as Nelson Peltz’s hedge fund Trian discloses plans for possible sale. (MarketWatch)
  • Express (EXPR) shares jump 10% premarket after retailer posts narrower-than-expected loss, offers upbeat guidance. (MarketWatch)
  • Manchin calls for ‘commonsense’ gun limits, resists filibuster reform. (The Hill)
  • China and U.S. are committed to reach audit deal, Chinese regulator says. (Reuters)
  • Mortgage demand slides further, even as interest rates pull back slightly. (CNBC)
  • Microsoft (MSFT) reveals Xbox Cloud Gaming has over 10 million players, as Stadia remains silent. (9to5Google)

Moving Average Update:

  • Score goes down to 13% from 26%.  Updated 05/24/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 1:30 p.m. EDT
    • The President signs a historic Executive Order to advance effective, accountable policing and strengthen public safety; The President and The Vice President deliver remarks, 4:00 p.m. EDT (Release)

Economic

  • MBA Mortgage Applications 20 May: -1.2% (prev -11.0%) – US MBA 30 Year Mortgage Rate 20 May: 5.46% (prev 5.49%). 
  • April Durable Orders is due out at 8:30 a.m. EDT and is expected to improve to -1.3% from -1.4%.
  • EIA petroleum Report 10:30 a.m. EDT 
  • The latest Federal Reserve Open Market Committee (FOMC) Minutes are due out at 2:00 p.m. EDT.

Federal Reserve Speakers:

  • Federal Research Board of Governors Lael Brainard 12:15 p.m. EDT

M&A Activity:

  • Allied Motion Technologies (AMOT) Completes Acquisition of ThinGap.
  • Amdocs (DOX) announces agreement to acquire MYCOM OSI for approx. $188 million in cash.
  • Eagle Foods Acquires two Iconic Brands from General Mills (GIS).
  • FAT Brands Inc. (FAT ) to Acquire the Nestlé® Toll House® Café by Chip® Franchise Business.
  • Bolthouse Farms Acquires Evolution Fresh From Starbucks (SBUX).

Meeting & Conferences of Note:

  • Sellside Conferences:
    • B. Riley Securities 22nd Annual Institutional Investor Conference 2022 (05/25/22-05/26/22)
    • Citi’s 2022 Car of the Future Virtual Symposium
    • Daiwa America Corporate Day
    • TD Securities Telecom & Media Conference 2022
    • UBS Global Truck, Commercial Vehicle and Powertrain Conference 2022
  • 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)
    • 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)
    • 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)
    • Jefferies Virtual Renewable Energy Conference: Key Debate Across the Value Chain 2022 (05/24/22-05/27/22)
    • JP Morgan 50th Annual Global Technology Media and Communications Conference 2022 (05/23/22-05/25/22)
    • Morgan Stanley Virtual China Summit 2022 (05/24/22-05/26/22)
    • Morgan Stanley Sustainable Futures Conference
    • Morgan Stanley Global Towers Symposium 2022
    • Morgan Stanley Global Ingredients Conference
    • Piper Sandler Ophthalmology and Diabetes Symposium 2022 (05/23/22-05/25/22)
    • 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)
    • UBS Global Healthcare Conference 2022 (05/23/22-05/25/22)
    • Wolfe Research 14th Annual Global Transportation & Industrials Conference 2022 (05/24/22-05/26/22)
  • Company Meetings: AMZN, AVCT, BLK, CAR, CVX, FB, FIS, MAT, MRO, OKE, SO, TRV, TWTR, UAL, XOM.
  • Fireside Chat: FTK.
  • Investor/Analyst Day/Calls: AIN, ATEC, BAX, BE, BIGC, CARG, GROY, ICFI, KRTX, NXTC, PLOW, RJF, TAP, VALN.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • Autonomous Vehicle USA
    • Digital Transformation in Insurance Conference (05/25/22-05/26/22)
    • Reuters Events Supply Chain Planning USA 2022 (05/25/22-05/26/22)
    • Retail Week Live
      • Previously Posted and Ongoing Conferences:
        • Cambridge Healthtech Institute(R)s 6th Annual Immuno-Oncology Summit Europe 2022 (05/23/22-05/25/22)
        • American Psychiatric Association Annual Meeting (in-person) 2022 (05/21/22-05/25/22)
        • Sachs 8th Annual Immuno-Oncology Innovation Forum 2022 (05/24/22-05/25/22)
        • 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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