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10.06.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 06/06/22: Stocks Recover Friday Losses As We Begin A New Week"

posted by CAPIS on 06/06/2022 at 8:08 am

by CAPIS

06/06/2022 at 8:08 am

Overnight Summary: The S&P 500 closed Friday at 4108.64 (lower by -1.63%) from Thursday at 4176.82 (higher by 1.84%). Futures have trading higher overnight. The overnight high of 4156 was hit at 4:35 a.m. EDT. The low was hit at 4105 at 6:35 p.m. EDT, a range of 51 points high to low which is near the range of late with 45 the average. At 7:25 a.m. EDT the current price is 4148.75 which is 1.02% and 42 points.

Earnings Out After The Close:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • MITO: Filed Form F-1.. Up to 3,684,799 American Depositary Shares.
    • NCMI: Filed Form S-3.. 107,778,512 Shares.
    • CSTL: Filed Form S-3ASR.. 1,282,045 Shares.
    • EFOI: $3.5 Million Private Placement Priced At-the-Market under Nasdaq Rules.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • EGP: files for 1,868,809 share common stock offering by selling shareholders.
    • MDVL: files for 56,470,579 share common stock offering by selling shareholders.
    • TOI: files for 1,342,076 share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • AREC: Filed Form S-3.. $36,390,000 Mixed Shelf.
    • ATNF: Filed Form S-3.. $125Million Mixed Shelf.
    • EPR: Filed Form S-3ASR.. Mixed Shelf offering.
    • JOAN: Filed Form S-3.. $100,000,000 Mixed Shelf .. 27,850,793 Shares of Common Stock Offered by the Selling Securityholders.
    • NSPR: Filed Form S-3.. $150Million Mixed Security Shelf.
    • VERA: Filed Form S-3.. $400,000,000 Mixed Shelf.
    • EPM: Filed Form S-2.. $500Million Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • IVT: Private Placement Offering of $250 Million Senior Unsecured Notes.
    • Redwood Trust (RWT) announces offering of convertible senior notes due 2027.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: TXMD 363%, AFI 64%, CO 41%, AVYA 37%, LPI 26%, EVLO 18%, NINE 18%, FIXX 17%, AMRN 17%, PBF 16%, RCKT 16%, PRQR 16%, RCUS 16%, DQ 16%, GLOP 15%.
    • Trading Down: NVTA -25%, CVNA -22%, GFI -21%, NVAX -19%, LTHM -19%, PACB -18%, CONN -18%, MYGN -17%, SIGA -15%, TGTX -15%, GTHX -15%, RYAM -15%, SNBR -15%, TRHC -14%.
  • News Items After the Close:
    • Germany is on the brink of recession due to energy security, and other parts of Europe could be close behind. (BI)
    • Gas prices in the U.S. continue to rise daily, reaching a new record high of $4.819 today. Positive for UGA the Gasoline ETF.
    • Recon (RCON) Receives NASDAQ Notification Regarding Minimum Bid Requirements.
    • Russian/Ukraine News:
      • Russia will declare war against west if US rockets hits any part of the country.
      • Putin threatens “new targets” if U.S. supplies long-range missiles to Ukraine.
  • News Items Over the Weekend:
    • Stocks that Defined the Week: UL, DAL, FB, MSFT, F, HRL, PFE  (WSJ)
    • The Week in Business: Meta (FB) Changes.  (NYT)
    • Russell releases preliminary reconstitution portfolio on the Russell 2000.  Final will be updated June 24th.  (Release)
    • Dollar’s Climb Stalls Amid Mixed Economic Signals (WSJ)
    • SP 500 Changes: VICI, KDP, ON in, CERN, UAA, IPGP out.
    • SP 400 Changes: UAA, IPGP, SHC, SWAV,  in, TRN, YRLP, URBN, RAMP out.
    • SP 600 Changes: TRN, YELP, URBN, RAMP, IRWD in, ENDP, RRGB, TCMD, VRA, GHL out.
    • U.K. Prime Minister Boris Johnson Faces Confidence Vote Over Lockdown Parties. (WSJ)
    • “At least 780 cases of Monkeypox cases have been identified in more than two dozen countries” – World Health Organization
    •  Barron’s:
      • Positive View: AVB, EQR, TGT, ETN, CPE, SBOW, MUR, OVV, CNQ, SPGI, AGNC.
      • Cautious View: FB, TWTR, GOOG, AAPL.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Cara Therapeutics (CARA) CFO Thomas Reilly to resign.
    • Digital Realty Trust (DLR) appoints Mary Hogan Preusse as Chairman.
    • DRTT: Announces Leadership Changes.
    • Freeline (FRLN) Receives Nasdaq Deficiency Notice Regarding Minimum Bid Price Requirement.
    • NuCana (NCNA) Announces Receipt of NASDAQ Notice.
    • Tupperware (TUP) discloses it eliminated the position of COO and Cassandra Harris’ employment with the Company was terminated.
  • Buyback Announcements:
    • Science Applications (SAIC) authorizes share repurchase program up to 8.8 million shares..
  • Stock Splits:
    • AMZN split taking place on Monday (ratio 20 for 1).
    • AIKI 1 for 17 reverse split announced.
  • Dividends Announcements:
    • Essential Properties Realty Trust (EPRT) increases quarterly dividend to $0.27 per share.

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

S&P 500 +41, Dow Jones +253, NASDAQ +177, and Russell 2000 +17 . Europe and Asia higher.  VIX Futures are at 25.40 from 25.87 Friday morning and the VIX closed at 24.79 from 24.72 Friday. Gold and Silver higher with Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.953% from 2.91% from Friday morning. Bitcoin is at $31,410 from $29,885 Friday morning and is higher by 4.73% this morning. As of 8:04 a.m. EDT.

Sector Action – 06/03/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Energy of note.
  • Daily Negative Sectors: Consumer Cyclical, Technology, Communication Services, Real Estate, Financial, Basic Materials, Consumer Defensive, Healthcare of note.
  • One Month Winners: Energy and Utilities, Basic Materials of note.
  • Three Month Winners: Energy and Utilities Basic Materials 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, Utilities, and Basic Materials of note.

Markets pulled back on Friday, causing negative weekly returns.  NASDAQ was down 2.47%.  USO was up 2.54%.  Updated 06/03/22 close.

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

  • Monday After the Close: COUP of note.
  • Tuesday Before the Open: SJM, UNFI, CBRL, GIII, MOMO, REVG of note.

Earnings of Note This Morning:

  • Beats: SAIC +0.11.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: ESS of note.
  • Negative Guidance: none of note.

Erlanger Research Advance/Decline Chart: Updated through 06/03/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: MRUS +5%, CARA +5%, TSLA +4%.
  • Gap Down: None of note.

Insider Action: AHCO sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 06/03/22 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: SAVE DIDI KDP SBUX (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Stock rally and Dollar weaker.
  • Bloomberg Most Read Story: Peak inflation is near claim some experts.
  • U.S. to pause solar tariffs for two years. (WSJ)
  • Beijing will roll back Covid-19 restrictions. (Bloomberg)
  • China to end cybersecurity probe and Didi (DIDI) could be back on app stores in China. (Reuters)
  • Russia fires more missiles at Kyiv rejecting France’s idea of negotiated settlement with Ukraine. (NYT)
  • Saudi Arabia to increase oil prices in Asia. (Reuters)
  • Hedge funds go net short the 10 year as yields close in on 3.00%. (Bloomberg)
  • Abbott (ABT) reopened baby formula plant but shortages will continue for weeks. (WSJ)
  • Hyatt (H) sees strong Memorial Day weekend, revenues up 24% pre-pandemic levels. (MarketWatch)

Moving Average Update:

  • Score drops to 45% after Friday’s pullback.  Updated 06/03/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 2:30 p.m. EDT

Economic

  • Investor Movement Index 12:30 p.m. EDT

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • Crestwood Equity Partners (CEQP) to acquire Sendero Midstream Partners for $600 million.
  • Becton Dickinson (BDX) to acquire for $1.525 billion, Parata Systems, an innovative provider of pharmacy automation solutions.
  • DSGX: Acquires XPS Technologies for $65 million.
  • JetBlue Airways (JBLU) submits improved proposal to acquire Spirit Airlines (SAVE); offers SAVE $31.50 per share in cash.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Baird 21st Annual Global Consumer Technology & Services Conference 2022 (06/06/22-06/08/22)
    • Bank of America BofA Securities EV Electric Vehicle Charging Summit 2022
    • Barclays Business Services ESG Summit 2022 (06/06/22-06/08/22)
    • Gartner Supply Chain Symposium/Xpo 2022 (06/06/22-06/08/22)
    • Goldman Sachs 2022 Virtual Insurtech Conference (06/06/22-06/07/22)
    • Goldman Sachs Travel and Leisure Conference 2022 (06/06/22-06/07/22)
    • HSBC 16th Annual Transport and Logistics Conference – part of the Future Transport series 2022 (06/06/22-06/10/22)
    • KBW Keefe, Bruyette & Woods US Regional Bank Leaders Conference 2022
    • Nomura Investment Forum Asia 
    • Raymond James Silicon Valley Visit 2022 (06/06/22-06/08/22)
    • William Blair 42nd Annual Growth Stock Conference 2022 (06/06/22-06/09/22)
      • Previously posted and ongoing conferences:
        • Bank of America Securities 2022 Innovative China Conference(05/30/22-06/10/22)
  • Company Meetings: GCI, RIVN, UNH, WB.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ACET, ALKS, ARNC, AVT, BVN, CAE, MRTX, PEAR, PFE, ZYME.
  • Update:
    • Adicet Bio (ACET) Conference Call on Positive Clinical Update from ADI-001 Phase 1 Trial in Relapsed/Refractory Non-Hodgkins Lymphoma (NHL).
  • R&D Day:
    • BioMea Fusion, Inc. (BMEA) virtual investor R&D Day 2022.
    • Zymeworks (ZYME) Conference Call on Clinical Data Presented at ASCO.
  • Company Event:
    • AAPL Annual Worldwide Developers Conference (06/06/22-06/10/22)
    • US Gold Corp (USAU)– Advancing World Class Assets.
    • Pfizer (PFE) Discussion on Expanding Access & Affordability.
    • Meet AZN Management: ASCO Annual Meeting 2022.
    • Mirati Therapeutics (MRTX) Conference Cal on Data Presented at ASCO.
  • Industry Meetings:
    • American Society for Mass Spectrometry’s 70th Annual Meeting
      • Previously posted and ongoing conferences:
        • American Society of Clinical Oncology ASCO Annual Meeting 2022 (06/03/22-06/07/22)
        • American Diabetes Association (ADA) 82nd Scientific Sessions 2022 (06/03/22-06/07/22)
        • American Transplant Congress 2022 (ATC) (06/03/22-06/08/22)
        • AIHA Petrochemical Summit 2022 (06/05/22-06/07/22)
        • American Association of Airport Executives Conference & Exposition 2022 (06/05/22-06/08/22)
        • Epilepsy Pipeline Conference 2022 (06/05/22-06/06/22)

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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