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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 – 06/17/22: Wall Street Concludes A Bad Week With Quadruple Witching Today. S&P 500 Down -6%"

posted by CAPIS on 06/17/2022 at 8:12 am

by CAPIS

06/17/2022 at 8:12 am

Overnight Summary: The S&P 500 closed Thursday at  3666.77 (lower by -3.25%)  from 3789.99 (higher by 1.46%)on Wednesday. Futures are trading higher overnight. The overnight high of 3712.25 was hit at 4:40 a.m. EDT. The low was hit at 3668.50 at 4:05 p.m. EDT, a range of 44 points high to low which is within the range of late with 45 the average. At 7:20 a.m. EDT the current price is 3704.50 which is 0.91% and 33.50 points.

Earnings Out After The Close:

  • Beats: ADBE +0.04.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Grove Collaborative and Virgin Group Acquisition Corp. II (VGII) Announce Closing of Business Combination with a ticker symbol of GROV.
    • JATT Acquisition Corp. (JATT) and Zura Bio Limited Announce Definitive Business Combination Agreement to Create NYSE Listed Biotechnology Company.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • COGT: Closing of Upsized Public Offering of Common Stock and Pre-funded Warrants and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
    • LUCD: Filed Form S-1.. 15,000,000 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • SRRK: Announces $205 Million Registered Direct Offering.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • OWL: Files $1 billion mixed securities shelf offering.
  • Convertible Offering & Notes Filed:
    • GSL: Announces Closing of $350 Million of Senior Secured Notes due 2027.
    • WELL: Announces Upsizing and Extension of $5.2 Billion Unsecured Credit Facility.

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: CO +12%, X +5%, ROKU +4%, FTI +4%.
    • Trading Down: RYTM -14%.
  • News Since The Close:
    • Bank of Japan keeps monetary policy unchanged (expected), maintaining a rate target at -0.1% and policy bias remains the same.
    • Adobe (ADBE) lowers guidance and share fall. (CNBC)
    • Target (TGT) to host annual Target Deal Days sale event on July 11-13.
    • Elon Musk tells employees he wants Twitter (TWTR) to be more like WeChat and TikTok. (The Verge)
    • 30-year yield took out the 2018 closing high today only to powerfully reverse by 25 bp. This action is called a “throw over” and often marks an important trend reversal. (Jeffrey Gundlach- Doubleline)
    • Russian Deputy Prime Minister Novak says world will need oil from Russia, Venezuela, Iran, OPEC.
    • BAE Systems (BAESY) awarded $700 million Army contract.
    • Huntington Ingalls (HII) receives advance procurement contract worth $240 million from US Navy.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Acadia Pharmaceuticals (ACAD) Stock Trading Halted Today — FDA Advisory Committee meeting to review NUPLAZID® (pimavanserin) supplemental New Drug Application for the treatment of Alzheimer’s disease psychosis.
    • Stephen Bardin to Join atai Life Sciences (ATAI) as CFO Designate.
    • Banco Santander (SAN): Hector Grisi nominated to succeed Jose Antonio Alvarez as CEO of Banco Santande.
    • Citi Trends (CTRN) Announces Appointment of New Chief Financial Officer.
    • The Vita Coco Company (COCO) Announces CFO Transition.
    • Huaneng Power (HNP) to apply for the voluntary delisting of its American depositary shares; last day of trading of the ADSs on the NYSE will be on or about 7/7/22.
    • MeridianLink (MLNK) names Sean Blitchok as its new CFO.
    • SeaWorld Entertainment (SEAS) announced that Michelle Adams will assume the role of CFO and Treasurer effective today.
    • Secoo (SECO) Receives Approval to Transfer to Nasdaq Capital Market.
    • UWM Holdings (UWMC) CFO Timothy Forrester will commence a leave of absence for health reasons.
    • Zevia PBC’s (ZVIA) current President, Amy Taylor, will succeed CEO Paddy Spence, effective August 1, 2022; Spence will remain as Chair of the Board of Directors.
  • Buyback Announcements:
    • CNC: Board Authorizes $3 Billion Increase to Stock Repurchase Program and New $1 Billion Debt Repurchase Program.
    • Expro Group (XPRO) authorizes $50 million stock repurchase plan.
    • Methode Electronics’ (MEI) Board Authorizes $100 Million Increase to Existing Share Buyback Program.
    • TE Connectivity (TEL) authorizes additional $1.5 billion share repurchase.
    • Unifi (UFI) Repurchased 500,000 shares of common stock in May 2022.
    • ZipRecruiter (ZIP) authorizes $150 million increase to share repurchase program.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Eagle Bancorp (EGBN) increases quarterly cash dividend $0.05 to $0.45 per share.
    • Methode Electronics’ (MEI) Board Approves Dividend.
    • BitNile Holdings (NILE) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
    • Oasis Petroleum Inc. (OAS) Declares Special Dividend of $15.00 per Share in connection with its Merger with Whiting.
    • W.P. Carey (WPC) increases quarterly cash dividend $0.002 to $1.059 per share.

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

S&P 500 +31, Dow Jones +204, NASDAQ +123, and Russell 2000 +17. Europe higher and Asia higher ex Japan down -1.77%.  VIX Futures are at 31.35 from 31.40  on Thursday morning and the VIX closed at 32.95 from 29.62 yesterday. Gold, Silver and Copper higher. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.222% from  3.45%  yesterday morning. Bitcoin is at $21,113 from $21,084 yesterday morning and is higher by 0.92% this morning. As of 8:08 a.m. EDT.

Sector Action – 06/16/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

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

All indexes down hard on above average volume.  Rate hikes from Swiss National Bank and Bank of England has investors worries policy makers are behind the eight ball.  Updated 06/16/22 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: LEN of note.

Earnings of Note This Morning:

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

Guidance:

  • Positive Guidance: KR, STLD, X, CNC of note.
  • Negative Guidance: PRG, ADBE of note.

Erlanger Research Advance/Decline Chart: Updated through 06/16/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: X +7%, JG +7%, UWMC +6%, MEI +5%, ROKU +5%, AJRD +4%, CTRN +4%, ZIP +4%.
  • Gap Down: RYTM -10%.

Insider ActionPINE, PK, AHCO, PB, GWRE sees Insider buying with dumb short sellingHMST, SKIL, MACK, CFLT sees Insider buying with smart short sellers. 06/16/22 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: JD ROKU BABA  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: After $2 trillion wipeout, stocks prepared for some relief. (Bloomberg)
  • Bloomberg Most Read Story: EU privacy laws face crunch time for a revamp. (Bloomberg)
  • Russian cut in natural gas forces Europe to use natural gas saving for winter. (Bloomberg)
  • EU will not provide Ukraine with more weapons. (NYT)
  • President Biden seeks to cutting shipping rates in a bid to slow inflation. (Bloomberg)
  • White House may limit fuel exports. (Bloomberg)
  • BNP Paribas may bid for ABN Amro. (MarketWatch)
  • Whoops! Citigroup (C) owns $500 million of Revlon debt it thought it did not have. (Bloomberg)
  • AstraZeneca (AZN) may bid for Mereo Pharma. (Sunday Times UK)
  • Robinhood Snacks looks at Pride Month and how workforce wants more activism. More bankruptcies to follow Revlon (REV).

Moving Average Update:

  • Red across the board.  Score at zero still.  Updated 06/16/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 7:30 a.m. EDT
    • The President hosts the Major Economies Forum on Energy and Climate where he reaffirms U.S. leadership to galvanize actions that strengthen energy security, enhance global food security, and tackle the climate crisis, 8:30 a.m. EDT
    • The President and The First Lady depart the White House en route Rehoboth Beach, Delaware, 11:00 a.m. EDT
    • The President and The First Lady arrive in Rehoboth Beach, Delaware, 11:55 a.m. EDT

Economic

  • May Industrial Production is due out at 9:15 a.m. EDT and is expected to drop to 0.5% from 1.1%.
  • Leading Indicators    10:00 a.m. EDT
  • Baker Hughes Rig Count    1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Research Chair Jerome Powell Jerome Powell 8:45 a.m. EDT

M&A Activity:

  • Ball Corp (BALL) recommends rejection of amended below-market mini-tender offer by TRC Capital Corporation.
  • Targa Resources Corp. (TRGP) to Acquire Lucid Energy from Riverstone Holdings and Goldman Sachs Asset Management for $3.55 billion.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Citi Car of the Future Symposium Spotlight Series
    • Goldman Sachs 25th Annual European Financials Conference 2022 (06/18/22)
    • Jefferies Consumer Conference 2022 (06/20/22-06/22/22)
    • HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
    • UBS Taiwan Conference 2022 (06/20/22-06/22/22)
    • Piper Sandler Global Exchange & FinTech Virtual Event 2022 (06/20/22-06/23/22)
      • Previously posted and ongoing conferences:
        • Exane BNP Paribas 24th European CEO Conference 2022 (06/14/22-06/17/22)
        • HSBC 6th Annual Asia Credit Conference 2022 (06/13/22-06/24/22)
  • Company Meetings: AON.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: CNC.
  • Update: ACAD.
  • R&D Day: None of note.
  • Company Event:
    • eXp (EXPI) Shareholder Summit 2022 (06/19/22-06/21/22)
  • Industry Meetings:
    • Lennox-Gastaut Syndrome Foundation (LGSF) 8th International Family & Professional Conference (06/17/22-06/19/22)
    • American Brachytherapy Society(R)s (ABS) Annual Conference 2022 (06/17/22-06/19/22)
    • International Microwave Symposium (IMS) 2022 (06/19/22-06/24/22)
    • Drug Information Association (DIA) Global Annual Meeting (06/19/22-06/23/22)
    • European Association for Cancer Research(EACR) Congress 2022 (06/20/22-06/23/22)
    • ChemCon Europe 2022 (06/20/22-06/24/22)
    • Customer Contact Week Las Vegas 2022 (06/20/22-06/23/22)
    • Connect IT Global Las Vegas 2022 (06/20/22-06/23/22)
      • Previously posted and ongoing conferences:
        • North Carolina Association of Defense Attorneys NCADA 45th Annual Meeting & Judicial Candidates’ Forum (06/16/22-06/19/22)
        • 7th Annual MarketsandMarkets Biomarker and Companion Diagnostics Conference 2022 (06/16/22-06/17/22)
        • 29th Annual FSHD Society International Research Congress 2022 (06/16/22-06/17/22)
        • International Society of Sports Nutrition (ISSN) 2022 (06/16/22-06/18/22)
        • American Association of Heart Failure Nurses (AAHFN) 18th Annual Meeting 2022 (06/15/22-06/18/22)
        • 2022 Florida Liability Claims Conference Florida Defense Lawyers Association (06/15/22-06/17/22)
        • ISSCR 2022 – International Society for Stem Cell Research Annual Meeting / Conference (06/14/22-06/18/22)
        • Vaccine Technology VIII: An Engineering Conferences International (ECI) Conference Series 2022 (06/11/22-06/17/22)

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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