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

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"CAPIS Morning Note – 05/27/22: First Up Week In 8 Weeks, As Buyers Return"

posted by CAPIS on 05/27/2022 at 8:12 am

by CAPIS

05/27/2022 at 8:12 am

Overnight Summary: The S&P 500 closed Thursday at 4057.84 (higher by 1.99%) from 3978.50 (higher by 0.95%)  on Wednesday. Futures have traded mixed overnight but are now higher. The overnight high of 4076 was hit at 6:00 a.m. EDT. The low was hit at 4041 at 8:50 a.m. EDT, a range of 35 points high to low which is a lower range of late with 45 the average. At 7:25 a.m. EDT the current price is 4068 which is 0.25% and 12.25 points.

Fun Fact: Studio spends $11,374 a hour to rent F-18 Super Hornets from Pentagon for Top Gun: Maverick. (Bloomberg)

Earnings Out After The Close:

  • Beats: ULTA +1.81, RRGB +0.61, DELL +0.45, DOMO +0.17, ADSK +0.09, ZS +0.06, SUMO +0.04, COST +0.02, MRVL +0.01.
  • Flat: None of note.
  • Misses: GPS (0.31), AEO (0.09), ME (0.04), LGF.A (0.04), FTCH (0.03), STEP (0.02), WDAY (0.02).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • CRTD: Announces Up to $40 Million Rights Offering, Priced at $2.00 per Unit.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ACB: announces US$125 million bought deal financing agreement.
    • CLIR: Proposed Public Offering of Common Stock.. Newbridge bookmanager.
    • BTRS: Filed Form 424B3.. Up to 111,295,261 Shares of Class 1 Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • MAXN: Filed Form F-3.. $100 Million Mixed Shelf.
    • HROW: Filed Form S-3.. $300 Million Mixed Security Shelf.
    • M: Filed Form S-3ASR.. Mixed Security Shelf.
  • Convertible Offering & Notes Filed: None of note.

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: ACET +27%, PMVP +18%, RRGB +16%, ZYME +11%, IMGN +7%, DELL +7%, ULTA +6%, PDSB +6%, MRVL +5%, DOMO +4%, SUMO +4%.
    • Trading Down: IOVA -49%, SWTX -44%, MRTX -22%, ACB -16%, GPS -13%, AEO -11%, WDAY -9%, ME -5%, MAXN -4%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: ULTA, GPS, COST, DELL, MRVL, AEO  (CNBC)
    • Costco (COST) sales top estimates by $1 billion, but misses on same-store sales. (MarketWatch)
    • Gap (GPS) shares fall 13% after retailer slashes profit guidance for the year. (CNBC)
    • Long-only demand “across the desk today,” says the B of A desk. Aggressive demand this AM in $NVDA when it was down .. “We are also seeing a LOT of short covering .. As bad as the market has felt .. the SPX is now +6.4% from the 5/20 lows. .. a bunch of coiled springs out there.”(CARL Q CNBC)
    • Raytheon Technologies (RTX) awarded $410 million Navy contract.
    • General Dynamics (GD) awarded $320 million Space Development Agency contract.
    • Delta (DAL) cutting flights to relieve pressure on operations. (Bloomberg)
    •  Russian/Ukraine News
      • Kremlin Says It Blames Ukraine For Fact That Peace Negotiations Are Frozen – Ukraine Makes Contradictory Statements, It’s Not Clear What Ukraine Wants.
      • Russia Gains Ground in Bid to Encircle Troops Defending Ukraine’s East. (WSJ)
      • EU Working On Russia Oil Sanctions Deal For Next Week’s Summit That Would Exclude Pipeline Deliveries, Two Officials Say. (Reuters)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Chewy (CHWY) approves a decrease in the size of its board of directors from 13 to 12.
    • CGI Group (GIB) CFO François Boulanger will assume the position of President and Chief Operating Officer.
    • Farmmi (FAMI) Appeals Nasdaq Delisting Determination.
    • IRADIMED (IRMD) appoints John F. Glenn as CFO.
    • KalVista Pharmaceuticals (KALV) Announces Changes to Board of Directors.
    • Lifeway Foods (LWAY) Announces Receipt of Nasdaq Compliance Letter.
    • Mereo BioPharma (MREO) Received Notification of Nasdaq Minimum Bid Price Deficiency.
    • Navitas Semiconductor (NVTS) appoints Ron Shelton as Senior VP, CFO, and Treasurer.
    • Qudian Inc. (QD) Receives Notice Regarding NYSE Continued Listing Standards.
    • Southwest Gas (SWX) CFO Gregory J. Peterson’s to retire.
    • TETRA Tech (TTI) announces retirement of board chairman William D. Sullivan.
    • Valaris (VAL) names Chris Weber as CFO.
  • Buyback Announcements:
    • Cathay Bancorp (CATY) adopts new share repurchase program authorizing to repurchase up to $125 million of the Company’s common stock.
    • CVCO: Announces New $100 Million Stock Repurchase Program.
    • Dime Community (DCOM) authorizes new stock repurchase program for up to 1,948,314 shares.
  • Stock Splits:
    • CASI 1 for 10 reverse split June 1.
    • Farmmi (FAMI) Announces 1-for-25 Ordinary Share Consolidation.
  • Dividends Announcements:
    • LyondellBasell (LYB) Announces $5.20 Special Dividend and Increases Quarterly Dividend by 5 Percent.

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

S&P 500 +2, Dow Jones -14, NASDAQ +15, and Russell 2000 +1. Europe higher and Asia higher.  VIX Futures are at 27.60 from 28.41 yesterday morning and the VIX closed at 27.50 from 29.45  yesterday. Gold, Silver  and Copper higher. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas higher. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.27% from 2.763% yesterday morning. Bitcoin is at $28,966 from $29,038 yesterday morning and is lower by -1.56% this morning. As of 8:08 a.m. EDT.

Sector Action – 05/26/22 Close:   

  • Daily Positive Sectors: Consumer Cyclical, Technology, Communication Services, Industrials, Financial, Consumer Defensive, Basic Materials 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.

We are on track to break the weekly streak of weekly declines at this pace.  Stocks had a strong day with the Dow up for a fifth day in a row.  NASDAQ was up 2.68%.  Updated 05/26/22 close.

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

  • Friday After the Close: None of note.
  • Tuesday Before the Open: BEKE, SRRK of note.

Earnings of Note This Morning:

  • Beats: SAFM +6.97.
  • Flat: None of note.
  • Misses: BIG (1.33), CGC (1.25), HIBB (0.26).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: ROLL, SUMO, ULTA, DOMO, ZS, DELL, HIBB of note.
  • Negative Guidance: JACK, ADSK, ME, GPS of note.

Erlanger Research Advance/Decline Chart: Updated through 05/26/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ACET +18%, PMVP +16%, RRGB +13%, DELL +12%, ULTA +9%, ZYME +6%, SUMO +5%, BCYC +5%, MYGN +5%, MRVL +5%, PDSB +4%, LGF.A +4%, ZS +4%, OCX +4%.
  • Gap Down: IOVA -46%, SWTX -31%, BIG -24%, MRTX -20%, GPS -19%, ACB -12%, AEO -12%, WDAY -8%, AADI -6%, IMGN -5%, PTGX -5%, MAXN -5%.

Insider Action: RNG, DDD sees Insider buying with dumb short selling. RPID sees Insider buying with smart short sellers. 05/26/22 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: BIG HIBB PDD CGC  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Buy the dip buyers are back. (Bloomberg)
  • Russia continues to advance in Eastern Ukraine, (NYT)
  • Shanghai continues to ease the lockdown. (Reuters)
  • White House to let some idle refineries restart production. (Bloomberg)
  • Ford (F) delivers the first electric  F-150. (Bloomberg)
  • Tesla (TSLA) fire in Canadian plant to be investigated by U.S. Regulators. (Reuters)
  • Robinhood Snacks the fourth season of Netflix’s (NFLX) “Stranger Things hits today. Broadcom (AVGO) enters enterprise software world with VMware acquisition.

Moving Average Update:

  • Score goes to 54% from 34%.  Updated 05/26/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs the White House en route Forrest Sherman Field, 9:00 a.m. EDT
    • The President arrives at Forrest Sherman Field, 9:20 a.m. EDT
    • The President addresses the United States Naval Academy’s Class of 2022 graduation and commissioning ceremony, 10:00 a.m. EDT
    • The President departs Forrest Sherman Field en route Delaware Air National Guard Base, 1:55 p.m. EDT
    • The President arrives in New Castle, Delaware, 2:30 p.m. EDT

Economic

  • April Personal Income is due out at 8:30 a.m. EDT and is expected to remain at 0.5%.
  • April PCE Core is due out at 8:30 a.m. EDT and is expected to remain at 0.3%.
  • International Trade in Goods 8:30 a.m. EDT
  • Wholesale Inventories 8:30 a.m. EDT
  • May University of Michigan Consumer Sentiment – (Final) is due out at 10:00 a.m. EDT and is expected to remain at 59.10.
  • Baker Hughes Rig Count 1:00 p.m. EDT
  • Bond Market Early Close 2:00 p.m. EDT

Federal Reserve Speakers:

  • Federal Reserve St. Louis President James Bullard 7:35 a.m. EDT

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Deutsche Bank dbaccess 11th Annual Global Financial Services Conference 2022 (05/30/22-06/02/22)
    • Bank of America Securities 2022 Innovative China Conference(05/30/22-06/10/22)
      • Previously Announced  Conferences:
        • Daiwa America Corporate Day
        • Benchmark Healthcare House Call Virtual 1×1 Conference 2022 (05/26/22-06/02/22)
        • Jefferies Virtual Renewable Energy Conference: Key Debate Across the Value Chain 2022 (05/24/22-05/27/22)
  • Company Meetings: LNC, LOW, LYB, RFP.
  • Fireside Chat: AMRX w/ Barclays.
  • Investor/Analyst Day/Calls: IMAB, UTHR
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • Brewers Forum & 38th EBC Congress 2022 (05/29/22-06/01/22
    • 3rd Annual Gene Therapy Analytical Development – Europe 2022 (05/30/22-06/01/22)
      • Previously Posted and Ongoing Conferences:
        • 33rd Annual NYC Fleet Show 2022
        • 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

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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