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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 – 06/08/22: S&P 500 Lower By -11.50 Points But Off Lows, Mortgage Demand At 22 Year Low"

posted by CAPIS on 06/08/2022 at 8:12 am

by CAPIS

06/08/2022 at 8:12 am

Overnight Summary: The S&P 500 closed Tuesday at 4160.68 (higher by 0.95%) from 4121.30 (higher by 0.31%) on Monday. Futures have trading lower overnight. The overnight high of 4164 was hit at 4:00 p.m. EDT. The low was hit at 4135 at 3:15 a.m. EDT, a range of 29 points high to low which is below the range of late with 45 the average. At 7:20 a.m. EDT the current price is 4144.45 which is -0.34% and -14.25 points.

Earnings Out After The Close:

  • Beats: VRNT +0.05, CASY +0.03, CURV +0.03, GWRE +0.02, SMAR +0.01.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • Phoenix Motor Inc. (PEV) Announces Pricing of $15,750,000 Initial Public Offering.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • Wintrust Financial Corporation (WTFC) Announces Pricing of Upsized $258 Million Common Stock Offering at $86.00 per share.
  • Notes Priced of note:
    • ALLE: Announces Pricing of $600 Million of Senior Notes.
    • CBT: Prices $400 Million 5.000% Senior Notes Due 2032.
    • KBH: Pricing of Senior Notes Due 2030.
  • Common Stock filings/Notes:
    • BTOG: Announces Closing of $5 Million Underwritten Public Offering of Ordinary Shares.
    • BYFC: Issues $150 million of Preferred Stock to the U.S. Department of the Treasury Under the Emergency Capital Investment Program.
    • CDRE: launches public offering of common stock; company is offering 1.75 million shares and selling stockholders are offering 1.75 million shares.
    • PALI: Filed Form 424B5.. 3,646,690 Shares of Common Stock.
    • SLGG: Filed Form S-3.. 7,379,300 shares.
    • TCBP: Closing of $4 Million Underwritten Public Offering.
    • WTFC: Public Offering of Common Stock 2.7 million .. RBC and RJ Bookmanagers.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • BFRI: Filed Form S-1.. 9,695,143 Shares of Common Stock Offered by the Selling Stockholder
    • CCSI: files for 2 million share common stock offering by selling shareholders.
    • Genius Sports (GENI) files for 150,104,209 ordinary share offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • 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: DBVT +38%, NVAX +13%, PNTG +5%, CURV +4%, DOCU +4%.
    • Trading Down: SMAR +5%.
  • News Since The Close:
    • The Daily National Average Gasoline Price for a Gallon of Unleaded is at an All Time High of $4.919/gal.
    • Citadel Securities, Virtu Build Crypto Plan With Brokerages. (Bloomberg)
    • World Bank says “stagflation risk rises amid sharp slowdown in growth”.
    • Ray Dalio: ‘Great Pain’ Will Force Central Banks To Cut Rates. (AFR)
    • Wall Street’s regulator is about to announce rule changes that would force trading firms to directly compete to execute trades from retail investors in a bid to boost competition for orders and improve deals for retail investors, according to four industry sources. 
    • CDC raises Monkeypox Alert to level 2, recommends masks during travel. (NY Post)
    • Spirit Airlines (SAVE) postpones special meeting of stockholders until June 30, 2022.
    • Russian/Ukraine News
      • Microsoft (MSFT) slashes Russia operations after war clouds outlook.
      • Kremlin restates that for Russian grain to be delivered to international markets, sanctions on Russia must be lifted
  • Exchange/Listing/Company Reorg and Personnel News:
    • CERN Halt – Additional Information Requested by NASDAQ.
    • EZGO Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency
    • Pennant Group (PNTG) appoints current President Brent Guerisoli to succeed Daniel Walker as CEO.
    • SVF Investment Corp. 3 (SVFC) completes combination with Symbotic; to trade under symbol “SYM”.
    • Teradyne (TER) appoints Greg Smith as President.
  • Buyback Announcements:
    • Eiger BioPharmaceuticals (EIGR) Enters into $75M Term Loan Agreement and $5M Stock Purchase Agreement with Innovatus Capital Partners to Refinance Existing Debt Facility and Further Strengthen Cash Position Ahead of Key Milestones.
    • OneConnect Financial (OCFT) upsizes its share repurchase program.
    • Paycom Software, Inc. (PAYC) Increases Stock Repurchase Plan.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Casey’s General (CASY) increases quarterly dividend to $0.38 per share, 9% boost.
    • International Seaways (INSW) increases quarterly cash dividend $0.06 to $0.12 per share.

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

S&P 500 -13, Dow Jones -126, NASDAQ -26, and Russell 2000 -5. Europe lower and Asia higher.  VIX Futures are at 24.85 from 26.30 yesterday morning and the VIX closed at 24.35 from 25.07  yesterday. Gold,  Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.01% from 3.018% from yesterday morning. Bitcoin is at $30,401.95 from $29,470.64  yesterday morning and is lower by -1.29% this morning but did rally yesterday to clear $30,000 again. As of 8:07 a.m. EDT.

Sector Action – 06/07/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Energy, Healthcare, Real Estate, Technology, Industrials, Basic Materials of note.
  • Daily Negative Sectors: none of note.
  • One Month Winners: Energy and Utilities of note.
  • Three Month Winners: Energy and Utilities 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.

Little bit of opposite action from Monday’s gap up and fade, today we gap down and find strength.  Early worries with TGT warning were brushed off to finish in the green for all indexes.  TLT got in on the action with a pop of 1.01%.  Updated 06/07/22 close.

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

  • Wednesday After the Close: TCOM, ABM, GEF, OXM, YEXT. BASE of note.
  • Thursday Before the Open: BILI, SIG, FCEL of note.

Earnings of Note This Morning:

  • Beats: KC +1.65, THO +1.47, LOVE +0.32, CPB +0.09.
  • Flat: None of note.
  • Misses: OLLI (0.11), VRA (0.03).
  • Still to Report: BF.B.

Guidance:

  • Positive Guidance: OI, CPB of note.
  • Negative Guidance: ASO, CBRL, KC, SMG of note.

Erlanger Research Advance/Decline Chart: Updated through 06/07/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: DBVT +17%, NVAX +17%, CURV +7%, DOCU +4%.
  • Gap Down: SMAR -7%, CCSI -6%, CS -6%, CDRE -4%, WTFC -4%.

Insider ActionCBTX sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 06/07/22 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: CPB MRNA WDC THO (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: San Francisco Voters oust Progressive DA Chesa Boudin. (Bloomberg)
  • Bloomberg Most Read Story: Apple (AAPL) to use common charging point on products after EU Deal. (Bloomberg)
  • Sweden’s road to NATO membership is complicated by politics in the country. (NYT)
  • China’s tech outlook improves. (Bloomberg)
  • Mortgage demand falls to lowest level in 22 years, thank you rising rates and slowing home sales. (CNBC)
  • April property sales in commercial real estate down -16% . (WSJ)
  • Federal Reserve GDP Tracker shows economy “could be” on the verge of a recession. (CNBC)
  • Hasbro (HAS) to likely win activist board challenge. (Reuters)
  • TSMC (TSM) sales to rise 30% this year. (Bloomberg)
  • Microsoft (MSFT) to cut back Russian efforts. (MarketWatch)
  • Affirm (AFRM) CEO says not concerned about competition from Apple (AAPL) on buy now, pay later. (Bloomberg)
  • Robinhood Snacks looks at the news from the Apple (AAPL) Developers Conference. Taco Bell goes with a futuristic new store.

Moving Average Update:

  • Score improves to 65% from 48%.  Updated 06/07/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs the White House en route Joint Base Andrews, 11:15 a.m. EDT
    • The President departs Joint Base Andrews en route Los Angeles, California, 11:45 a.m. EDT
    • The President arrives in Los Angeles, California, 4:30 p.m. EDT
    • The President tapes an appearance on Jimmy Kimmel Live!, 5:40 p.m. EDT
    • The President greets with heads of delegations at the Ninth Summit of the Americas, 7:00 p.m. EDT
    • The President and The First Lady participate in the inaugural ceremony of the Ninth Summit of the Americas; The President delivers remarks, 8:15 p.m. EDT

Economic

  • MBA Mortgage Applications: -6.5% (prev -2.3%) – 30YR Mortgage Rate: 5.40% (prev 5.33%)
  • Wholesale Inventories 10:00 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Azenta (AZTA) Announces Agreement to Acquire Barkey Holding GmbH (BRKS).
  • Core & Main (CNM) agrees to acquire Earthsavers Erosion Control.
  • Northern Oil & Gas (NOG) announces Williston Basin bolt-on acquisition for $170 million.
  • Stifel Financial (SF) signs agreement to acquire ACXIT Capital Partners.
  • Roku (ROKU) insiders note that Netflix (NFLX) could make a bid for the company. (Business Insider)

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Securities Energy Credit Conference 2022 (06/08/22-06/09/22)
    • Bloomberg Technology Summit Looking Forward 2022
    • Citigroup Consumer Access Day
    • Credit Suisse European Telecoms Fibre Conference 2022
    • Deutsche Bank 13th Annual Global Basic Materials Conference 2022 (06/08/22-06/09/22)
    • Jefferies Business Aviation Summit 2022
    • Jefferies Global Healthcare Conference 2022 (06/08/22-06/10/22)
    • Piper Sandler Companies Global Exchange / Brokerage / Fintech Conference 2022 (06/08/22-06/09/22)
    • Piper Sandler: The Year of the Restaurant Summit 2022
    • RBC Capital Markets Canadian Investor Sessions for REITs and REOCs
      • Previously posted and ongoing conferences:
        • Baird 21st Annual Global Consumer Technology & Services Conference 2022 (06/06/22-06/08/22)
        • Bank of America Securities 2022 Innovative China Conference(05/30/22-06/10/22)
        • Bank of America Securities Global Technology Conference 2022 (06/07/22-06/09/22)
        • Barclays Business Services ESG Summit 2022 (06/06/22-06/08/22)
        • Cowen Sustainability & Energy Transition Summit 2022 (06/07/22-06/08/22)
        • Credit Suisse European Materials Conference 2022 (06/07/22-06/08/22)
        • Credit Suisse Asia Consumer Corporate Day 2022 (06/07/22-06/09/22)
        • Evercore ISI Consumer & Retail Summit 2022 (06/07/22-06/10/22)
        • Gartner Supply Chain Symposium/Xpo 2022 (06/06/22-06/08/22)
        • Goldman Sachs Annual European Financial Services Conference 2022 (06/07/22-06/09/22)
        • Goldman Sachs Global Semiconductor Conference 2022
        • HSBC 16th Annual Transport and Logistics Conference – part of the Future Transport series 2022 (06/06/22-06/10/22)
        • JP Morgan Southern Cone & Andean Opportunities Conference 2022 (06/07/22-06/09/22)
        • JP Morgan Automotive Conference 2022 (06/07/22-06/08/22)
        • JP Morgan Chase Silicon Carbide (SiC) & Gallium Nitride (GaN) Week (virtual) (06/07/22-06/09/22)
        • LD Micro Invitational XII 2022 (06/07/22-06/09/22)
        • Raymond James Silicon Valley Visit 2022 (06/06/22-06/08/22)
        • RBC Capital Markets 29th Annual Global Energy, Power and Infrastructure Conference 2022 (06/07/22-06/08/22)
        • Stifel Virtual Cross Sector Insight Conference CSI 2022 (06/07/22-06/09/22)
        • UBS Global Industrials and Transportation Conference 2022 (06/07/22-06/08/22) 
        • William Blair 42nd Annual Growth Stock Conference 2022 (06/06/22-06/09/22)
  • Company Meetings: AEO, ANF, CAT, EBAY, DINO, DVN, EBAY, LULU, OFS, SAIC, TGT.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ALDX, BOSSY, DTIL, OEC, SHW, SPOT, TALS, TLSS.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • AAPL Annual Worldwide Developers Conference (06/06/22-06/10/22)
    • Qualys Security Conference San Francisco 2022 (06/06/22-06/08/22)
    • Plymouth Industrial REIT (PLYM) Provides virtual presentation REITweek 2022
    • Socket Mobile, Inc. (SCKT) React Native App Development Webinar
  • Industry Meetings:
    • American Society for Mass Spectrometry’s 70th Annual Meeting
    • Investing in Space Summit 2022
    • NYSE Healthcare & Technology Virtual Investor Day 2022
    • S&P Global Ratings 38th Annual Conference 2022 (06/08/22-06/09/22)
      • Previously posted and ongoing conferences:
        • American Psychiatric Association Annual Meeting (Online version) 2022 (06/06/22-06/10/22)
        • NAREIT REITweek Investor Conference 2022 (06/06/22-06/09/22)
        • American Transplant Congress 2022 (ATC) (06/03/22-06/08/22)
        • American Association of Airport Executives Conference & Exposition 2022 (06/05/22-06/08/22)

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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