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09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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"CAPIS Morning Note – 06/30/22: Stocks Lower In Tough Overnight Session To End The Quarter"

posted by CAPIS on 06/30/2022 at 8:13 am

by CAPIS

06/30/2022 at 8:13 am

Overnight Summary: The S&P 500 closed Wednesday at 3818.83 (lower by -0.07%) from 3821.55 (lower by -2.01%) on Tuesday.  Futures are trading lower in the premarket session. The overnight high of 3825 was hit at 6:05 p.m. EDT. The low was hit at 3762 at 5:35 a.m. EDT, a range of 63 points high to low which is above the range of late with 45 the average range. At 7:25 a.m. EDT the current price is 3769 which is -1.35% and -51.75 points.

Earnings Out After The Close:

  • Beats: SGH +0.12, MLKN +0.10, DCT +0.01.
  • 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:
    • BSGM: Closing of Public Offering of Common Stock.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • BTOG: Full Exercise of Underwriter’s Over-Allotment Option in Underwritten Public Offering of Ordinary Shares.
    • TGAN: Filed Form S-3.. 3,866,667 Shares of Common Stock.
    • VRCA: Proposed Public Offering of Common Stock.. RBC Bookmanager.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • AgEagle Aerial Systems (UAVS) Announces Pricing of $10 Million Registered Direct Offering.
    • BTCM: Announces Closing of US$16 Million Registered Direct Offering.
    • Seres Therapeutics (MCRB) Announces $100 Million Registered Direct Offering of Common Stock.
  • Selling Shareholders of note:
    • HPK: Filed Form S-3.. 7,331,517 Shares of Common Stock by the Selling Stockholder.
    • SYM: Filed Form S-1.. Up to 554,976,653 Shares of Class A Common Stock by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • MTC: Filed Form F-3.. $300,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • ASPN: Announces its Decision Not to Proceed with Concurrent Public Offerings of Common Stock and Green Convertible Senior Notes due 2027.
    • CYTK: Proposed $450 mm Convertible Senior Notes Offering.
    • NM: Announces Redemption of $10.0 Million of 11.25% Senior Secured Notes due 2022.
    • MCLD: Provides Further Update on Repayment of Outstanding Unsecured Convertible Debentures.

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: POWW +10%, AVDL +8%, LXRX +8%, CDMO +5%, MLKN +5%, SYM +4%.
    • Trading Down: HYPR -15%, CYTK -14%, SGH -13%, DCT -12%, RH -5%, WSM -4%.
  • News Since The Close:
    • Restoration Hardware (RH) shares slide after company lowers its outlook for the year. (CNBC)
    • Nexstar (NXST) Nears Deal to Acquire Majority Control of CW Network. (WSJ)
    • UBS to pay $25 million to settle U.S. SEC fraud charges regarding options trading. (Reuters)
    • Pfizer (PFE) and BioNTech announce new vaccine supply agreement with the U.S. government; to supply 105 million doses for $3.2 billion upon receipt.
    • Spirit Airlines (SAVE) to adjourn Special Meeting of stockholders; intends to continue discussions with Frontier (ULCC) and JetBlue (JBLU)
      • JetBlue (JBLU) Comments on Spirit’s (SAVE) Adjournment of Special Meeting.
    • President Putin via IFAX:
      • There is no use setting an end date to the special military operation in Ukraine.
      • I don’t rule out tensions will emerge in our relations with Finland and Sweden after they decided to join NATO.
      • Says ultimate goal is “Liberating” Donbas and getting security guarantees.
    • Crypto exchange CoinFlex probably won’t resume withdrawals Thursday as planned, says CEO (CNBC)
    • General Dynamics (GD) awarded a $320 million US Army contract regarding the modification for Mobile Protected Firepower.
    • Lockheed Martin (LMT): Sikorsky Aircraft unit wins $429 million US Army contract for maintenance and overhaul of UH-60 Black Hawk helicopters.
    • Mercury (MRCY) receives $10 million contract to provide pilot controller interface for a prime contractor’s airborne radio modernization program.
    • ADP to pause Jobs Report in July, working on new methodology. (PR Newswire)
  • Exchange/Listing/Company Reorg and Personnel News:
    • atai Life Sciences Company (ATAI) Kures Therapeutics Appoints Dr. Chad Beyer as Chief Executive Officer.
      Allarity Therapeutics (ALLR) Announces Executive Leadership Transition.
    • Bilibili (BILI) shareholders approve proposed conversion to primary listing on the Hong Kong Stock Exchange.
    • Danaher (DHR) Announces Appointment of Feroz Dewan to Danaher Board.
    • Forma Therapeutics (FMTX) Announces Appointment of New Executive Team Members.
    • Hyperfine (HYPR) CEO Dave Scott will step down for personal reasons.
    • Scorpio Tankers Inc. (STNG) Announces Purchase of Common Shares by the President of the Company.
    • Sequans (SQNS) Announces Changes to Board of Directors.
    • Donna Blackman Named New Chief Financial Officer of Stride, Inc. (LRN)
    • Xerox (XRX) Announces the Unexpected Passing of Vice Chairman and Chief Executive Officer John Visentin.
  • Buyback Announcements or News:
    • Adagene (ADAG) Announces Authorization of Share Repurchase Program up to US$10 Million.
    • First High-School Education Group (FHS) Announces up to RMB4 Million Share Repurchase Program.
    • IMAX Announces Extension of Current Share-Repurchase Program for $200 million.
    • Onion Global (OG) Announces US$10 Million Private Share Repurchase.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: None of note.

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

S&P 500 -56, Dow Jones -390, NASDAQ -193, and Russell 2000 -26. Europe lower and Asia lower ex Shanghai.  VIX Futures are at 29.30 from 28.36  yesterday morning and the VIX closed at 28.16 from 28.36 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 -3.046% from 3.162%  yesterday morning. Bitcoin is at $19,064 from $20051 yesterday morning and is lower by -5.25% this morning. As of 8:09 a.m. EDT.

Sector Action – 06/29/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Healthcare, Consumer Defensive of note.
  • Daily Negative Sectors: Energy, Basic Materials, Real Estate, Industrials, Financial, Consumer Cyclical 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.

Narrow range for the markets today….something different!  USO and UNG down -2.09 and -3.44%.  TLT pops 1.56% closing at $113.87. Updated 06/29/22 close.

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

  • Thursday After the Close: MU, ACCD of note.
  • Friday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: LNN +0.68, AYI +0.61, STZ +0.39, SMPL +0.09, WBA +0.03.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: PAYX, MLKN of note.
  • Negative Guidance: DCT, SGH, RH, UHS of note.

Erlanger Research Advance/Decline Chart: Updated through 06/29/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ASPN +51%, AVDL +13%, POWW +7%, CDMO +5%, MLKN +5%, OSCR +5%, TGAN +5%, SYM +4%.
  • Gap Down: HYPR -27%, DCT -19%, CYTK -15%, SGH -15%, MSTR -9%, RH -6%, W -6%, BITO -5%, COIN -5%, FIZZ -4%.

Insider Action: TELA, LAZY, CPSS sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 06/29/22 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: WBA STZ AYI  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • 5 Things To Know Before The Stock Market Opens (CNBC)
  • Bloomberg Lead Story: JP Morgan says that crypto deleveraging cycle will not last much longer. (Bloomberg)
  • Bloomberg Most Read Story: Democrats weigh paring Biden Tax Hike to win over Senator Joe Manchin (D- WV). (Bloomberg)
  • Chinese President Xi visited Hong Kong on the 25th anniversary of China taking over Hong Kong. ( CNBC)
  • Ketanji Brown Jackson to be sworn in as the latest Supreme Court Justice replacing Justice Stephen Breyer. (LA Times)
  • California Lithium Tax could delay Electronic Vehicle shipments. (Reuters)
  • General Motors (GM) subsidiary employees at various Michigan plants to strike today. (Detroit Free Press)
  • Markets with worst half year start in decades with exception of some commodities. (WSJ)
  • Walt Disney (DIS) reopens Shanghai Disneyland with testing and mask requirements. (Bloomberg)
  • Unity (U) to eliminate hundreds of jobs. (Kotaku)
  • Universal Health (UHS) issues downside guidance for Q2. (PR Newswire)
  • Robinhood Snacks looks at Ford (F) move to selling direct to customers passing the dealership. Kraft Heinz (KHC) to stop supplying Tesco (TSCDY) in the U.K..

Moving Average Update:

  • One stripe of green on the 10 Day MA. Not good.  Score goes to 28%  Updated 06/29/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President attended and delivered remarks at the Meeting of the North Atlantic Council Session #3 at the level of Heads of State and Government, 4:00 a.m. EDT
    • The President holds a press conference, 8:00 a.m. EDT
    • The President departs Madrid, Spain en route Joint Base Andrews, 9:40 a.m. EDT
    • The President arrives at Joint Base Andrews, 5:20 p.m. EDT
    • The President arrives at the White House, 5:40 p.m. EDT

Economic

  • May Personal Income is due out at 8:30 a.m. EDT and is expected to improve to 0.5% from 0.4%.
  • May PCE Core 8:30 a.m. EDT and is expected to come in at 0.4% from 0.3%. Last,
  • Initial Jobless Claims 8:30 a.m. EDT
  • June Chicago PMI is due out at 9:45 a.m. EDT and is expected to fall to 58.8 from 60.3,
  • EIA natural Gas Report 10:30 a.m. EDT
  • Farm Prices 3:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • FMC Corporation (FMC) significantly expands biologicals platform with agreement to acquire BioPhero for $200mm.
  • Royalty Pharma (RPRX) Acquires Royalty Interest in Gavreto From Blueprint Medicines (BPMC) for up to $340 Million.
  • Ranger Oil (ROCC) Announces Accretive Acquisitions Adding Additional Scale to Premium Eagle Ford Position.
  • SMART Global (SGH) to acquire Stratus Technologies.
  • U.S. Energy Corp. (USEG) Announces East Texas Bolt-On Asset Acquisition.
  • WPP plc (WPP) to acquire marketing technology agency Bower House Digital.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bernstein US Best Ideas
      • Previously posted and ongoing conferences:
        • HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
        • Stifel Virtual Cell Therapy Conference 2022 (06/29/22-06/30/22)
        • UBS Sustainable Finance Conference 2022 (06/29/22-06/30/22)
  • Company Meetings: ABIO, BILI, TCOM
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AVDL, FMC, LXRX, MU, TALS
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • None of note.
      • Previously posted and ongoing conferences:
        • The Advanced Materials Show 2022 (06/29/22-06/30/22)
        • Onco Cell Therapy Summit 2022 (06/29/22-06/30/22)
        • Foam Expo North America 2022 (06/28/22-06/30/22)
        • Specialty & Agro Chemicals America 2022 (06/28/22-06/30/22)
        • Battery Show Europe 2022 (06/28/22-06/30/22)
        • Federation of American Societies for Experimental Biology: The NAD+ Metabolism and Signaling Conference 2022 (06/26/22-06/30/22)

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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