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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 – 06/22/22: Stocks Give Back Some Of Yesterday’s Gain, Powell To Testify Before Senate This Morning"

posted by CAPIS on 06/22/2022 at 8:13 am

by CAPIS

06/22/2022 at 8:13 am

Overnight Summary: The S&P 500 closed Tuesday at 3764.79 (higher by 2.45%) from 3674.84 (higher by 0.22%)  on Friday. Two day rally, a miracle! Futures are trading lower overnight. The overnight high of 3771.25 was hit at 4:55 p.m. EDT. The low was hit at 3693.25 at 4:10 a.m. EDT, a range of 78 points high to low which is above the range of late with 45 the average. At 7:20 a.m. EDT the current price is 3717.75 which is 1.33% and -50 points.

Breaking News:  Federal Reserve Chairman Powell appears before the Senate Finance Committee at 10:00 a.m. EDT.

Earnings Out After The Close:

  • Beats: LZB +0.15.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • GSUN: Golden Sun Education Group Ltd. Announces Pricing of US$17,600,000 Initial Public Offering.
  • New SPACs launched/News: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note:
    • KLAC: Prices Senior Notes Offering.
    • TNXP: Announces Pricing of $30 Million Private Placement of Convertible Redeemable Preferred Stock.
  • Common Stock filings/Notes:
    • ACLX: Closing of Upsized Public Offering of Common Stock and Underwriters’ Full Exercise of Option to Purchase Additional Shares.
    • DTIL: Announces $50 Million Offering of Common Stock.. Jefferies bookmanager.
    • GBTG: Files for 485,526,872 share common stock offering related to warrants.
    • NOAH: Filed Form F-3ASR.. Class A Ordinary Shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • BBAI: Files for 113.25 million share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • STRR: Filed Form S-3.. $100,000,000 Mixed Shelf.
    • FIS: Filed Form S-3ASR.. Mixed Security Shelf.
  • Convertible Offering & Notes Filed:
    • ORA: Intends to offer $350 million of Green Convertible Senior Notes.

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: LZB 12%, PRTK +10%, ENTA +10%, BMRN +4%, AVT +4%.
    • Trading Down: ORA -4%.
  • News Since The Close:
    • La-Z-Boy (LZB) stock jumps more than 11% after furniture maker reports ‘record’ quarterly sales. (MarketWatch)
    • Citigroup sees a 40% chance of US recession going into next year and expects the Fed’s policies to take up to 18 months to take effect.
    • Poll: Fed To Lift Rates By 75 Basis Points In July, 50 Basis Points In September. (Reuters)
    • Finland Defense Chief: Finland Is Ready To Fight Russia If Attacked. (Reuters)
    • Disney (DIS): Abigail Disney to mount shareholder battle over CEO salary.  (TheWrap)
    • Federal Reserve Richmond President Thomas Barkin:
      • Says a 75bp rate hike seems sensible
      • Doesn’t see a severe financial crisis being in the cards -Barkin says he’s not predicting the U.S. will enter a recession
      • Anticipates continued volatility in economic indicators.
      • Confident that pandemic shocks will subside over time.
      • This could mean that inflation readings fluctuate before stabilizing.
      • There is a chance that we will see more deglobalization and labor shortages as a result of a lack of immigration..
  • Exchange/Listing/Company Reorg and Personnel News:
    • Boeing (BA) Elects David L. Gitlin to Board of Directors.
    • KVH Industries (KVHI) names Brent Bruun President, Chief Executive Officer, and Director.
  • Buyback Announcements:
    • Chesapeake Energy (CHK) corporation doubles its authorization for common stock and warrant repurchase from $1 billion to $2 billion.
    • Safe Bulkers, Inc. (SB) Announces Common Stock Repurchase Program up to 5 million shares.
  • Stock Splits: 
    • FTNT 5-for-1 stock split will become effective on June 23.
  • Dividends Announcements:
    • Delek US (DK) Announces Special Dividend of $0.20 per share.

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

S&P 500 -51, Dow Jones -353, NASDAQ -177, and Russell 2000 -23. Europe lower and Asia lower.  VIX Futures are at 30.91 from 31.35  yesterday morning and the VIX closed at 30.19 from 32.95 yesterday. Gold, Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 3.196% from 3.271%  yesterday morning. Bitcoin is at $20,451 from $21,263.56 yesterday morning and is lower by -2.69% this morning. As of 8:02 a.m. EDT.

Sector Action – 06/21/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Energy, Consumer Cyclical, Consumer Defensive, Technology, Healthcare, Communication Services, Financial, Real Estate of note.
  • Daily Negative Sectors: none of note.
  • One Month Winners: none of note.
  • Three Month Winners: none of note.
  • Six Month Winners: Energy of note.
  • Twelve Month Winners: Energy of note.
  • Year to Date Winners: Energy of note.

Stocks continued to rebound after the long weekend.  Energy had a strong performance (last week’s laggard).  Updated 06/21/22 close.

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

  • Wednesday After the Close: FUL, KBH, WOR, SCS of note.
  • Thursday Before the Open: ACN, DRI, FDS, CCL, GMS, APOG, RAD of note.

Earnings of Note This Morning:

  • Beats: WGO +1.17, KFY +0.20.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SON, KFY of note.
  • Negative Guidance: ODP of note.

Erlanger Research Advance/Decline Chart: Updated through 06/17/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ENTA +8%, LZB +8%, HITI +5%.
  • Gap Down: MFGP -17%, USO 4%, ORA -4%.

Insider Action: NXRT, AHCO, VST sees Insider buying with dumb short selling. AEO, DAWN sees Insider buying with smart short sellers. 06/21/22 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: WGO, LZB, REV, DOW, KFY, ABNB (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Stocks fall on a hard landing scenario. (Bloomberg)
  • Bloomberg Most Read Story: Rep Liz Cheney (R-WY) pays a hard price in Wyoming for crossing Trump. (Bloomberg)
  • U.K. inflation hits 9.1% as food and energy cost remain high. (CNBC)
  • President Biden to call for a three month removal of gasoline and diesel tax. (CNBC)
  • Energy Secretary Jennifer Granholm to meet with energy companies tomorrow. (The Hill)
  • Yield Curve inverts again. (Bloomberg)
  • Mortgage applications rose 8% week over  week but lower -10% year over year. It was the largest one week jump in 13 years . Supply is up 17%. (CNBC)
  • Daimler, the world’s largest truck manufacturer facing enormous supply chain issues still. (CNBC)
  • BridgeBio (BBIO) announces positive data on BBP-812. (Release)
  • Apple (AAPL) stock not priced for a recession. (WSJ)
  • Robinhood Snacks looks at Kellogg (K) split into three companies. Travel hits wall as airlines struggle to bring back workers.

Moving Average Update:

  • Small glimmer of hope as short term moving averages are crossed to the upside.  Not much hope with futures so negative this morning!  Score gets of the mat moving to 17% from 0%.  Updated 06/21/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:15 a.m. EDT
    • The President delivers remarks on gas prices and Putin’s Price Hike, 2:00 p.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 3:00 p.m. EDT

Economic

  • MBA Mortgage Applications Jun 17: 4.2% (prev 6.6%) – 30Y Mortgage Rate Jun 17: 5.98% (prev 5.65%)
  • Redbook Sales 8:55 a.m. EDT
  • API Crude Oil Data 4:30 p.m. EDT 

Federal Reserve / Treasury Speakers:

  • Federal Reserve Richmond President Thomas Barkin 9:00 a.m. EDT
  • Federal Reserve Chairman Powell begins day one of his Humphrey Hawkins Testimony before the Senate. 9:30 a.m. EDT
  • Federal Reserve Richmond President Thomas Barkin 12:00 p.m. EDT
  • Federal Reserve Chicago President Charles Evans 12:50 p.m. EDT
  • Federal Reserve Philadelphia President Patrick Harker and Richmond President Thomas Barkin  1:30 p.m. EDT

M&A Activity:

  • Bio-Techne (TECH) to acquire Namocell.
  • First Bancorp (FBNC) to acquire GrandSouth Bank $181.1 million, all stock deal.
  • Galapagos NV (GLPG) to acquire CellPoint and AboundBio for €125 million and $14 million.
  • Matthews (MATW) agrees to acquire OLBRICH and R+S Automotive for approximately $45 million.
  • ProFrac Holding (PFHC) acquires U.S. Well Services (USWS).

Meeting & Conferences of Note:

  • Sellside Conferences:
    • 3 Part Advisors East Coast IDEAS Investor Conference 2022 (06/22/22-06/23/22)
    • Barclays Symposium on Sustainable Technologies in Food and Agriculture Conference 2022
    • BMO Chemical and Packaging Conference 2022
    • Cowen 7th Annual FutureHealth Conference 2022 (06/22/22-06/23/22)
    • Credit Suisse Biotech Conference
    • Fox Advisors Transportation Technology Conference 2022 (06/22/22-06/23/22)
    • Goldman Sachs Healthcare Corporate Day
    • JB Capital Financials Conference
    • JP Morgan Energy, Power & Renewables Conference 2022 (06/22/22-06/23/22)
    • Stifel Growth Conference 2022 (06/22/22-06/23/22)
      • Previously posted and ongoing conferences:
        • Bank of America Technology Media and Communications Conference 2022 (06/21/22-06/22/22)
        • Bank of America Napa Biopharma Conference 2022 (06/21/22-06/22/22)
        • Berenberg SDG Conference 2022 (06/21/22-06/22/22)
        • Jefferies Consumer Conference 2022 (06/20/22-06/22/22)
        • HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
        • HSBC 6th Annual Asia Credit Conference 2022 (06/13/22-06/24/22)
        • Lytham Partners Summer Investor Conference 2022 (06/21/22-06/22/22)
        • Piper Sandler Global Exchange & FinTech Virtual Event 2022 (06/20/22-06/23/22)
        • ROTH 8th Annual London Conference 2022 (06/21/22-06/23/22)
        • UBS Taiwan Conference 2022 (06/20/22-06/22/22)
        • UBS Latam Conference
  • Company Meetings: BB, MO, NDAQ, WDAY.
  • Fireside Chat: Earthstone Energy (ESTE) President and CEO to Participate in Fireside Chat with Water Tower Research 2022.
  • Investor/Analyst Day/Calls: ASLN, BTRS, CTKB, ESTE, GGPI, GLPG, IFS, MOD, PFHC, VLVLY, VXRT, ZS.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • Amdocs (DOX) ESG Webinar 2022
  • Industry Meetings:
    • CareVention HealthCare Advisory Summit 2022
    • America’s Health Insurance Plans (AHIP) 2022
    • EASL International Liver Congress 2022 (06/22/22-06/26/22)
    • Pacific Coast Builders’ Conference (PCBC) 2022
      • Previously posted and ongoing conferences:
        • International Consumer Product Health and Safety Organization (ICPHSO) North America Product Safety Training Workshop 2022 (06/21/22-06/22/22)
        • American Bankers Association’s Regulatory Compliance Conference 2022 (06/21/22-06/24/22)
        • 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)

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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