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09.30.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 06/28/22: S&P 500 Futures Higher By +23.50."

posted by CAPIS on 06/28/2022 at 8:13 am

by CAPIS

06/28/2022 at 8:13 am

Overnight Summary: The S&P 500 closed Monday at 3900.11 (lower by -0.30%) from 3911.75 (higher by 3.06%) on Friday.  Futures are trading higher in the premarket session but off the morning’s highs. The overnight high of 3937.75 was hit at 3:15 a.m. EDT. The low was hit at 3885.75 at 10:30 p.m. EDT, a range of 52 points high to low which is a bit above the range of late with 45 the average range. At 7:15 a.m. EDT the current price is 3923.75 which is 0.51% and +20 points.

Breaking News: Cathie Wood of Ark Innovation Fund (ARKK) notes in an interview with CNBC that the U.S. is already in a recession. (CNBC)

Earnings Out After The Close:

  • Beats: CNXC +0.09, NKE +0.08.
  • Flat: None of note.
  • Misses: JEF (0.06).

Capital Raises:

  • IPOs Priced or News:
    • Ivanhoe Electric (IE) Pricing of Initial Public Offering 14,388,000 shares @$11.75. $11.75-12.50 expected range.
  • New SPACs launched/News:
    • Northern Lights Acquisition Corp. (NLIT) reschedules Special Meeting to approve acquisition.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • KRBP: Filed Form S-1.. Offering.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
  • Selling Shareholders of note:
    • VRME: Filed Form S-3.. 2,923,792 Shares of Common Stock Offered by the Selling Stockholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • WHF: Filed Form N-2.. $275,405,146 Mixed Shelf.
  • Convertible Offering & Notes Filed:

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: KZR +104%, CRNT +24%, SAVE +5%, IVR +5%.
    • Trading Down: HOOD -5%, JEF -4%, CNXC -4%.
  • News Since The Close:
    • F  issues recall for about 3,000 F-150 Lightning vehicles, InsideEVs
    • FTX CEO Sam Bankman-Fried denies having mergers and acquisitions conversations with Robinhood (HOOD). (MarketWatch)
    • JetBlue (BLUE) boosts Spirit (SAVE) bid again, adds ‘ticking fee’ (MarketWatch)
    • Goldman Sachs (GS) and Wells Fargo (WFC) Boost Shareholder Payouts. (WSJ)
    • Consumer-Staples Stocks Are Bright Spot in Bleak Market. (WSJ)
    • Major crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million. Voyager Digital, who lent the money to 3AC, says it intends to pursue recovery of the funds.  (CNBC  Retweet)
    • Lockheed Martin’s (LMT) Sikorsky Aircraft awarded $2.28 billion Army contract for procurement of Black Hawk helicopters.
  • Exchange/Listing/Company Reorg and Personnel News:
    • OneConnect Financial (OCFT) Announces proposed dual primary listing on The Stock Exchange of Hong Kong Limited.
  • Buyback Announcements or News:
    • Citizens Financial Group (CFG) increases share repurchase authorization to $1 billion.
    • Guess?, Inc. (GES) Completes Repurchase of 9.0 Million Shares or 14% of Shares Outstanding.
    • JEF: Our Board of Directors has authorized the repurchase in the future of an additional up to $250 million of our common stock.
    • Lands’ End (LE) Announces $50 Million Share Repurchase Authorization.
    • Morgan Stanley (MS) Announces Authorization of a $20 Billion Multi-Year Common Equity Share Repurchase Program.
    • NKE: The Company announced its Board of Directors has authorized a new four-year, $18 billion program to repurchase shares of NIKE’s Class B Common Stock.
  • Stock Splits or News: 
    • IT Tech Packaging, Inc. (ITP) Announces Reverse Stock Split.
    • UTStarcom (UTSI) Announces Results of Extraordinary Meeting of Shareholders and Effectiveness of One-for-Four Reverse Share Split
  • Dividends Announcements or News:
    • Bank of America (BAC) Comments on Stress Test Results; Plans to Increase Quarterly Dividend to $0.22 per share, a 5% increase.
    • BNY Mellon (BK) Announces Intention to Increase Quarterly Common Stock Dividend by 9 Percent to $0.37 per Share.
    • Charles Schwab (SCHW) no changes to its dividend.
    • Citigroup (C) plans to maintain dividend at current level.
    • Citizens Financial Group (CFG) will consider dividend increase.
    • Fifth Third (FITB) to increase its quarterly dividend up 10% to $0.33 per share.
    • Griffon (GFF) declares special cash dividend of $2 per share.
    • Goldman Sachs (GS): Firm’s Capital Plan Includes An Increase In Common Stock Dividend From $2.00 To $2.50 Per Share.
    • JPM Form 8K.. JPMorgan Chase’s Board of Directors intends to maintain the current quarterly common stock dividend of $1.00 per share for the third quarter of 2022 in light of higher future capital requirements.
    • Morgan Stanley (MS) Announces 11% Dividend Increase.
    • Northern Trust Corporation (NTRS) Announces Intent to Increase Quarterly Common Stock Dividend by 7 Percent.
    • Regions Financial (RF) will consider an increase in its quarterly dividend.
    • State Street Corporation (STT) Announces Preliminary Stress Capital Buffer Requirement and the Intention to Increase its Quarterly Common Stock Dividend to $0.63 per share, a 10% increase.
    • TFC raises dividend 4¢ to $0.52 per quarter, an 8% increase.
    • Wells Fargo (WFC): Company Expects To Increase Its Q3 2022 Common Stock Dividend To $0.30 Per Share From $0.25 Per Share.

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

S&P 500 +22, Dow Jones +200, NASDAQ +58, and Russell 2000 +15. Europe higher and Asia higher as well for the third day in a row.  VIX Futures are at 27.08 from 28.25 Monday morning and the VIX closed at  26.95 from 27.23  on Monday. Gold lower with Silver and Copper higher. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.249% from 3.171% Monday morning. Bitcoin is at $20,951 from $21,377 Monday morning and is higher by 0.60% this morning. As of 8:10 a.m. EDT.

Sector Action – 06/27/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

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

Choppy session sums up Monday’s action.  NASDAQ pulled back 0.72%.  TLT was down -0.85% to close at 111.60. Updated 06/27/22 close.

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

  • Tuesday After the Close: PRGS, AVAV of note.
  • Wednesday Before the Open: PAYX, GIS, MKC, SJR, MSM, UNF, PDCO, SCHN, BBBY of note.

Earnings of Note This Morning:

  • Beats: SNX +0.07.
  • Flat: None of note.
  • Misses: CGNT (0.89).
  • Still to Report: EPAC.

Guidance:

  • Positive Guidance: none of note.
  • Negative Guidance: PATH, CNXC, NKE of note.

Erlanger Research Advance/Decline Chart: Updated through 06/27/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: KZR +73%, STRO +30%, CRNT +17%, TCOM +16%, ROIV +10%, VG +6%, EIGR +5%, IDYA +5%, SAVE +4%, GFF +4%.
  • Gap Down: None of note.

Insider Action: BLNK, OXY, DVA sees Insider buying with dumb short sellingAAIC sees Insider buying with smart short sellers. 06/27/22 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: NKE SAVE OXY  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Stocks up as China cuts quarantine, Dollar steady. (Bloomberg)
  • Bloomberg Most Read Story: Russia moves into default, next step with sanctions muddy. (Bloomberg)
  • China lowers quarantine requirements for Covid-19. (FT)
  • Walt Disney (DIS) to reopen Shanghai Disney on Thursday. (Reuters)
  • ECB Head Christine LaGarde downplays recession, says ready to move on rates. (CNBC)
  • Russia missiles struck a shopping mall in central Ukraine with hundreds inside. (NYT)
  • Exxon (XOM) CEO Darren Woods predicting increased investment in fossil fuel investment. (FT)
  • Netflix (NFLX) to continue to invest in Asia. (Bloomberg)
  • Apple (AAPL) iPhone at 15 years old. (WSJ)
  • Robinhood (HOOD) lower after FTX’s Bankman-Fried says no talks to buy the company. (Twitter)
  • Robinhood Snacks looks at how companies are supporting employees on abortion issue. G-7 may cap Russia oil as punishment.

Moving Average Update:

  • Score levels off at 42% from 45%.  Updated 06/27/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President attended and delivered remarks during the final session of the G7 Summit, focused on Multilateral and Digital Order, 4:30 a.m. EDT
    • The President departed Schloss Elmau, Germany en route Munich, Germany, 6:05 a.m. EDT
    • The President departed Munich, Germany en route Madrid, Spain, 6:50 a.m. EDT
    • The President arrives in Madrid, Spain, 9:10 a.m. EDT
    • The President holds a bilateral meeting with President Pedro Sánchez of Spain to continue coordinating on supporting Ukraine and holding Russia accountable, 10:00 a.m. EDT
    • The President meets with His Majesty King Felipe VI of Spain, 11:30 a.m. EDT
    • The President and The First Lady attend a dinner for Heads of State and Government and Heads of International Organizations invited to the official NATO Summit program, hosted by the His Majesty King Felipe VI and Her Majesty Queen Letizia of Spain, 2:05 p.m. EDT

Economic

  • International Trade in Goods 8:30 a.m. EDT
  • Wholesale Inventories 8:30 a.m. EDT
  • Redbook Sales 8:55 a.m. EDT
  • FHFA HPI 9:00 a.m. EDT
  • April S&P Case-Schiller Home Price Index is due out at 9:00 a.m. EDT and expected to come in at 21.1% from 21.20%.
  • June Consumer Confidence is due out at 10:00 a.m. EDT and expected to come in at 101 from 106.40.
  • Richmond Fed Mfg Index 10:00 a.m. EDT
  • Money Supply 1:00 p.m. EDT
  • API Crude Oil Data 4:30 a.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve Richmond President Thomas Barkin at 8 a.m. EDT
  • Federal Reserve San Francisco President Mary Daly at 12:30 p.m. EDT

M&A Activity:

  • Arthur J. Gallagher & Co. (AJG) Acquires Erimus Group Limited.
  • Aviat Networks (AVNW) Proposes to Acquire Ceragon Networks (CRNT) for $2.80 Per Share in Cash.
  • Stanley Black & Decker (SWK) Reaches Agreement To Sell Its Oil & Gas Business.
  • TTM Technologies, Inc. (TTMI) Completes Acquisition of Telephonics Corporation.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Cantor Technology ESG Conference
    • Cowen Tools/Dx Revolution 2022
    • Credit Suisse Global Women’s Financial Forum
    • Credit Suisse Inaugural Private Software Company Conference
    • Keybanc Industrial Private Company Conference
    • Maxim Innovations in ALS
    • Morgan Stanley Putting the Tech in Biotech Conference 2022
    • UBS ESG Conference 2022
    • Wells Fargo “Bricks to Clicks” Digital Conference (06/28/22-06/29/22)
      • Previously posted and ongoing conferences:
        • Cantor Fitzgerald Technology ESG Conference 2022 (06/27/22-06/29/22)
        • HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
        • Truist Securities Cell Therapy Symposium 2022 (06/27/22-06/28/22)
  • Company Meetings: ETAC, KMX, SKIN, SONM, UPH
  • Fireside Chat: Recruit Holdings Co. (RCRUY) Limited ESG Fireside Chat 2022
  • Investor/Analyst Day/Calls: ALB, AXSM, CS, CYCN, HPE, KGC, SYY
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • Inventiva (IVA)Webcast following the EASL International Liver Congress 2022
  • Industry Meetings:
    • Precision Medicine World Conference (PMWC) 2022 Silicon Valley
    • Foam Expo North America 2022 (06/28/22-06/30/22)
    • MedInvest Oncology Investor Conference 2022 (06/28/22-06/29/22)
    • LifeSci 2nd Annual Genetic Medicines Symposium 2022 (06/28/22-06/29/22)
    • Specialty & Agro Chemicals America 2022 (06/28/22-06/30/22)
    • Battery Show Europe 2022 (06/28/22-06/30/22)
      • Previously posted and ongoing conferences:
        • Insurance Innovators USA (06/27/22-06/28/22)
        • Sensors Converge 2022 (06/27/22-06/29/22)
        • Society for Birth Defects Research & Prevention (BDRP) Annual Meeting (06/25/22-06/29/22)
        • Federation of American Societies for Experimental Biology: The NAD+ Metabolism and Signaling Conference 2022 (06/26/22-06/30/22)
        • NACDA (National Association of Collegiate Directors of Athletics) Convention 2022 (06/26/22-06/29/22)

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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