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

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Morning Note

"CAPIS Morning Note – 07/06/22: Stocks Lower As We Await FOMC Minutes At 2:00 P.M. EDT."

posted by CAPIS on 07/06/2022 at 8:10 am

by CAPIS

07/06/2022 at 8:10 am

Overnight Summary: The S&P 500 closed Tuesday at 3831.39(higher by 0.16%)  from 3825.33 (higher by 1.06%) on Friday.  Futures are trading lower in the premarket session but off the lows. The overnight high of 3848.75 was hit at 7:10 p.m. EDT. The low was hit at 3809.25 at 2:10 a.m. EDT, a range of 39.50 points high to low which is slightly below the range of late with 45 the average range. At 7:20 a.m. EDT the current price is 3825.75 which is -0.22% and -8.25 points.

Earnings Out After The Close:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • AXT, Inc. (AXTI) Announces Next Filing Step for IPO in China.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • MINISO Group (MNSO) Announces Pricing of Hong Kong Offering at HK$13.80 per share for 41.1 million shares.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • KERN: Closing of $10 Million Public Offering.
    • WORX: Common Stock Purchase Agreement with Institutional Investor.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • ESTE: Filed Form S-3ASR.. 19,417,476 Shares of Class A common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Convertible Offering & Notes Filed:
    • BAC: Announces Redemption of 2.816% Fixed/Floating Rate Senior Notes Due July 2023.
    • VORB: entered into a securities purchase agreement pursuant to which the Company sold and issued convertible debenture on June 29, 2022 in the principal amount of $50.0 million.

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: AMTI +4%, ESTE +4%.
    • Trading Down: KRNT -20%, FSP -5%.
  • News Since The Close:
    • Boris Johnson to stay on as Prime Minister; to name new Cabinet members. (Bloomberg)
    • Walmart (WMT) tells suppliers new fuel and pickup fees are coming. (WSJ)
    • EUR/USD Falls to Lowest Level in Nearly 20 Years at 1.0214.
    • FDA temporarily suspends order banning sales of Juul. (Fox)
    • Lockheed Martin (LMT) awarded a $185.9 million US Navy contract modification to exercise an option for engineering design and development.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Broadridge Financial (BR) names Tyler Derr as Chief Technology Officer.
      BNY Mellon (BK) Names Dermot McDonogh as Next Chief Financial Officer; Emily Portney to Lead Treasury Services, Credit Services, and Clearance & Collateral Management Businesses.
    • Evolution Petroleum (EPM) CEO Jason Brown to step down to pursue other opportunities.
    • HIVE Blockchain (HIVE) Delayed in Completion of Annual Filings Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Form 40-F.
    • Kaman (KAMN) names Pratt & Whitney exec as President of its Air Vehicles and Precision Products divisions.
    • Stride Inc. (LRN) Joins S&P SmallCap 600.
    • Mereo BioPharma (MREO) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
    • Oil States (OIS) promotes Philip Moses to COO.
    • Piedmont Lithium (PLL) Added to Russell 2000 Index.
    • STAG Industrial (STAG) appoints William Crooker as CEO and to the Board of Directors.
  • Buyback Announcements or News: 
    • JinkoSolar (JKS) authorizes the Company to repurchase up to US$200 million of its ordinary shares represented by ADSs during an 18-month period
  • Stock Splits or News:
    • UBX: Form 8K. The Company has determined to abandon a reverse stock split at this time. If the Company’s Board of Directors determines to pursue a reverse stock split at a later date, it will submit a new proposal to the Company’s stockholders for their consideration.
    • SOS trading reverse split price this morning.
  • Dividends Announcements or News:
    • Franklin Street Properties (FSP) lowers quarterly dividend to $0.01 per share from $0.09 per share last quarter.
    • Life Storage (LSI) increases quarterly dividend to $1.08 per share, an 8% increase.

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

S&P 500 -16, Dow Jones -113, NASDAQ -63, and Russell 2000 -10. Europe lower and Asia higher ex Shanghai.  VIX Futures are at 28.05 from 28.15 yesterday morning and the VIX closed at 27.54 from 26.70 yesterday. Gold lower, Silver higher and Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.814% from 2.915% yesterday morning. Bitcoin is at $20,052 from $19,731 yesterday morning and is lower by -1.42% this morning. As of 8:03 a.m. EDT.

Sector Action – 07/05/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Communication Services, Consumer Cyclicla, Technology of note.
  • Daily Negative Sectors: Energy, Utilities, Basic Materials of note.
  • One Month Winners: Healthcare  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.

“But I keep cruisin’, Can’t stop, won’t stop groovin’, It’s like I got this music in my mind, Sayin’, “It’s gonna be alright” Sing it Taylor!  Futures low to start the morning session on growth concerns turned tail and closed at the highs shaking off some serious negative market vibes.   Updated 07/05/22 close.

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

  • Wednesday After the Close: None of note.
  • Thursday Before the Open: HELE 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: none of note.
  • Negative Guidance: KRNT, RADA of note.

Erlanger Research Advance/Decline Chart: Updated through 07/05/22 close.

 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: AMTI +7%.
  • Gap Down: KRNT -24%, RADA -10%, FSP -5%.

Insider Action: TELA, KPK sees Insider buying with dumb short sellingCAMP sees Insider buying with smart short sellers. 07/05/22 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: UBER DASH SAVE MO (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • 5 things to know before the stock market opens Wednesday. (CNBC)
  • Bloomberg Lead Story: Bonds Swing Lower As Recession Fears Linger.  (Bloomberg)
  • Bloomberg Most Read Story:  Oil Drops Below $100 As Recession Risks Come to Forefront. (Bloomberg)
  • OPEC Secretary General died overnight, was in final weeks of his tenure. (CNBC)
  • Crypto brokerage Voyager Digital files for Chapter 11 Bankruptcy. (CNBC)
  • Amazon (AMZN) to increase data sharing with competitors. (FT)
  • Amazon (AMZN) to invest 2% into Just Eat Takeaway delivery service, Grubhub. (MarketWatch)
  • Amerisource Bergen (ABC), Cardinal Health (CAH) and McKesson (MCK) will not face opioid crisis liabilities in West Virginia. (WSJ)
  • 3M (MMM) to pay Flemish government to pay $580 million to settle PFAS actions. (MarketWatch)
  • Robinhood Snacks looks at Tesla (TSLA) deliveries falling for the first time in years. Lululemon Athletica (LULU) moves into Spain.

Moving Average Update:

  • Score improves to 43% from 20%.  Updated 07/05/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
    • The President departs the White House en route Joint Base Andrews, 12:25 p.m. EDT
    • The President departs Joint Base Andrews en route Cleveland, Ohio, 12:45 p.m. EDT
    • The President arrives in Cleveland, Ohio, 1:55 p.m. EDT
    • The President delivers remarks announcing the final rule implementing the American Rescue Plan’s Special Financial Assistance program, 3:15 p.m. EDT
    • The President departs Cleveland, Ohio en route Joint Base Andrews, 4:55 p.m. EDT
    • The President arrives at Joint Base Andrews, 6:00 p.m. EDT
    • The President arrives at the White House, 6:20 p.m. EDT

Economic

  • MBA Market Index for Jul 1 Week -5.4% at 305.3; Prev Week 322.7 U.S MBA 30-yr mortgage rate actual: 5.74% vs 5.84% previous.
  • Redbook Sales 8:55 a.m. EDT
  • PMI Composite Final 9:45 a.m. EDT
  • June ISM Non-Manufacturing Index is due out at 10:00 a.m. EDT and expected to come in at 54.20% from 55.90%. 
  • JOLTS 10:00 a.m. EDT
  • The latest Federal Reserve Open Market Committee Minutes (FOMC) are due out at 2:00 p.m. EDT
  • API Crude Oil Report 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve New York President John Williams 9:00 a.m. EDT

M&A Activity:

  • Paper Excellence Group enters into definitive agreement to acquire Resolute (RFP) for $20.50 per share and one contingent value right tied to potential duty deposit refunds of up to $500 million.
  • Vista Outdoor (VSTO) to buy Fox Racing for $590 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Credit Suisse Japan New Economy Day 

      • Previously posted and ongoing conferences:
        • None
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AMTI, SRPT
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • LoRaWAN World Expo 2022 (07/06/22-07/07/22)
    • Solar Energy20 Future Europe 2022 (07/06/22-07/07/22)
    • 16th World Immune Regulation Meeting (WIRM) 2022 (07/06/22-07/09/22)
      • Previously posted and ongoing conferences:
        • FPGA Conference Europe 2022 (07/05/22-07/09/22)
        • 3rd FORUM Science & Health: Medicine of the Future (07/05/22-07/06/22)
        • 17th International Congress on Neuromuscular Diseases (ICNMD) (07/05/22-07/09/22)

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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