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

Morning Note

News

Morning Note

"CAPIS Morning Note – 08/12/22: Stocks Look To Close Week On A Positive Note As Futures Higher"

posted by CAPIS on 08/12/2022 at 8:14 am

by CAPIS

08/12/2022 at 8:14 am

Overnight Summary: The S&P 500 closed Thursday at 4207.27 (lower by -0.07%) from Wednesday at  4210.24 (higher by 2.14%).  The overnight high of 4237.50 was hit at 4:45 a.m. EDT. The low was hit at 4208.25 at 8:55 p.m. EDT, a range of 29 points high to low which is below the range of late with 45 the average range. At 7:20 a.m. EDT the current price was 4221.75 which is 0.29% and +12 points. Currently, at 8:00 a.m. EDT the S&P 500 is now up +16. 

Earnings Out After The Close:

  • Beats: SWIR +0.15, INDI +0.08, PAYO +0.07, ATGE +0.06, FORG +0.05, RYAN +0.04, LAW +0.04, FLO +0.04, RMD +0.03, LZ +0.03, WPM +0.01, OLO +0.01, TOST +0.01, VIAV +0.01, RIVN +0.01.
  • Flat: None of note.
  • Misses: POLY (0.22), EXFY (0.19), EDR (0.17), UP (0.10), ILMN (0.07), CDRE (0.07), VTEX (0.05), POSH (0.04), SMRT (0.02).

Capital Raises:

  • IPOs Priced or News:
    • CorpHousing Group Inc. (CHG) Announces Listing on Nasdaq and Pricing of $13.5 Million Initial Public Offering.
    • Reborn Coffee, Inc. (REBN) Announces Pricing of Upsized $7.2 Million Initial Public Offering.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • FRZA: Prices Offering 3M @$5.
    • INAB: Announces Pricing of $10.25 Million Underwritten Public Offering of Common Stock.
    • INSP: prices 1M of stock offering at $215.00 per share.
    • PTLO: Announces Pricing of Public Follow-on Offering of 8,000,000 Shares of Class A Common Stock in “Synthetic Secondary” Transaction.  Priced @$23.75.
    • SLN:  Prices offering of 5.95 million shares of common stock at $9.50 per share.
  • Notes Priced of note:
    • CERE: Announces Pricing of $300 Million Private Offering of Convertible Senior Notes and Concurrent $254 Million Public Offering of Common Stock.
  • Common Stock filings/Notes:
    • CERT: Announces Secondary Offering.
    • HLLY: Filed Form S-3.. Up to 8,299,978 Shares of Common Stock Issuable Upon Exercise of the Public Warrants.
    • INSP: Proposed Offering of Common Stock.. 1,000,000 shares — GS Underwriter.
    • RANI: Announces Termination of Public Offering of Class A Common Stock.
    • AFIB: Filed Form S-3.. 16,537,961 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • FPI: Files for 248,734 share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CELU: Filed Ford S-3 $450 Million Mixed Shelf.
    • ERAS: Filed Form S-3 .. $500Million Mixed Security Shelf.
    • RRBI: Filed From S-3.. $100 Million Mixed Shelf.
  • Debt Filing: None of note.
  • Convertible Offering & Notes Filed:
    • EDUC: Filed Form 8K.. executed a Credit Agreement.

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: PAYO +18%, GWH +14%, TOST +11%, PCT +10%, LZ +6%, JJSF +5%, PDFS +4%.
    • Trading Down: OLO -29%, LAW -22%, ILMN -15%, EXFY -14%, CERT -9%, SST -8%, FORG -8%, POSH -5%, SMRT -4% .
  • News Since The Close:
    • Stocks making the biggest moves after hours:  RIVN, TOST, POSH, ILMN, OLO (CNBC)
    • Rivian (RIVN) loses nearly $2 billion in second quarter as expenses mount. (MarketWatch)
    • Apple (AAPL) asks suppliers to make at least as many new iPhones as they did last year, 90 million. (MarketWatch)
    • Poshmark’s (POSH) stock drops 8% on Q3 revenue guidance. (MarketWatch)
    • Federal Reserve expected to stick with hawkish rate hikes until data show further slowing in inflation. (CNBC)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Harsco Corporation (HSC) Announces Chief Financial Officer Transition.
    • EPZM Halt – Additional Information Requested by NASDAQ.
    • MindMed (MNMD) Strengthens Board with Appointment of Two New Independent Directors.
  • Buyback Announcements or News:
    • Brookfield Business Corporation (BBUC) authorized the corporation to repurchase up to 5% of the total issued and outstanding shares.
    • Primerica (PRI) Announces $50 Million Increase to Stock Repurchase Program, Bringing Maximum to $375 Million.
    • System1 (SST) misses on revs; guides FY22 revs below consensus; authorizes $25 million stock and warrant repurchase program.
    • Teekay Corporation (TK) has authorized a share repurchase program for the repurchase of up to $30 million of the Company’s outstanding common shares.
  • Stock Splits or News:  None of note.
  • Dividends Announcements or News: 
    • AirSculpt Technologies, Inc. (AIRS) Announces Special Dividend.
    • Broadridge Financial (BR) Board has approved a 13% increase in its annual dividend amount to $2.90 per share.
    • Vermilion Energy (VET) Announces 33% Increase to Quarterly Dividend.
    • Warner Music Group (WMG) increases quarterly cash dividend $0.01 to $0.16 per share.

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

S&P 500 +16, Dow Jones +117,NASDAQ +55 and Russell 2000 +9. Europe higher and Asia higher ex Shanghai.  VIX Futures are at 23.78 from 23.65 yesterday morning and the VIX closed at 20.20 from 19.74  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 higher vs Yen. US 10 year Treasury sees yields at 2.878% from 2.773% this morning. Bitcoin is at $23,771.80 from $24,548.77  and is lower by -1.68% this morning. As of 8:09 a.m. EDT.

Sector Action – 08/11/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Energy, Financials, Industrials of note.
  • Daily Negative Sectors: Healthcare, Technology, Consumer Defensive of note.
  • One Month Winners:  Technology, Consumer Cyclical, Industrials, Energy, Basic Materials, Financials, Utilities, and Real Estate of note.
  • Three Month Winners: Consumer Cyclical, Technology, Industrials, and Real Estate of note.
  • Six Month Winners: Energy and Utilities of note.
  • Twelve Month Winners: Energy and Utilities of note.
  • Year to Date Winners: Energy and Utilities of note.

Early gains faded hard through out the day.  PPI data came in ok and pointed to inflation easing, but stocks could not hold the positive tone.  TLT ended down -2.33%.  UNG was up 6.06%.  Updated 08/11/22 close.

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

  • Friday After the Close: None of note.
  • Monday Before the Open: TWKS, YOU, WEBR, DOYU of note.

Earnings of Note This Morning:

  • Beats: BR +0.03.
  • Flat: None of note.
  • Misses: SPB (0.88), HNST (0.02).
  • Still to Report: None of note..

Guidance:

  • Positive Guidance: TOST, PAYO, FLO, RKLB of note.
  • Negative Guidance: LZ, SMRT, OLO, LAW, ILMN, FORG, MCW, ATGE, SST, BR of note.

Erlanger Research Advance/Decline Chart: Updated through 08/11/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: PAYO +20%, GWH +19%, TOST +15%, UP +12%, RANI +12%, PCT +10%, TK +8%, PDFS +7%, LZ +6%, INDI +5%, AIRS +5%, JOBY +4%, TU +4%, SJR +4%.
  • Gap Down: OLO -32%, LAW -31%, ILMN -14%, SMRT -14%, EXFY -12%, MCW -12%, CERT -10%, SST -6%, FORG -6%, INSP -4%.

Insider Action: NRDS sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/11/22 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: POSH HNST RIVN ILMN TOST (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Trump Calls For Release of Search Warrants Used in Raid on Mar-a-Lago. (Bloomberg)
  • Bloomberg Most Read Story: Stress Hormone levels predict those with Long Covid-19. (Bloomberg)
  • Concerns abound over Russia shelling of Ukraine’s Zaporizhzia nucelar plant, the largest in Europe. (Reuters)
  • House to vote and pass Inflation Reduction Act today. (Reuters)
  • Federal Reserve San Francisco President Mary Daly expects a 50 basis point rise not 75 basis point. (Bloomberg)
  • Bank of America notes that cash flowing back into stocks and bonds as rate hikes will keep U.S. out of a recession. (Bloomberg)
  • President Biden expected to announce his intent to run for reelection after midterms. (Bloomberg)
  • Prada seeks $1 billion listing in Milan Stock Exchange. (Bloomberg)
  • Four Chinese state-owned companies to delist from NYSE. (Reuters)
  • Judge questions 3M (MMM) attempt to move earplug lawsuits to bankruptcy. (WSJ)
  • Avient (AVNT) to sell distribution business to H.I.G. Capital for $950 million in cash. (MarketWatch)
  • Samsung (SSNLF) to have edge in smartphone battles with new products. (WSJ)
  • Robinhood Snacks looks at regulators pulling the plug on SpaceX’s Starlink subsidy. Six Flags (SIX) attendance falls while Disney (DIS) rises.

Moving Average Update:

  • Score remains at 80%.  Updated 08/11/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • Vacation in South Carolina.

Economic

  • Import and Export Prices 8:30 a.m. EDT
  • August University of Michigan Consumer Sentiment (prelim) is due out at 10:00 a.m. EDT and is expected to come in at 52.1 from 51.50.   
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Acquisition by Semtech (SMTC): On August 2, 2022, Sierra Wireless (SWIR) entered into a definitive agreement with SMTC and a subsidiary of Semtech Corporation pursuant to which the Purchaser will acquire all of the outstanding shares of Sierra Wireless. Under the terms of the Transaction, SWIR shareholders will receive $31 in cash per share.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously posted and ongoing conferences:
        • Susquehannas Industrials, Energy Airlines Conference 2022 (08/11/22-08/12/22)
        • Raymond James Aspen Energy Summit
  • Company Meetings: ADMP.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: BORR, SCHW, XRX
  • Update: UBX.
  • R&D Day: None of note.
  • Company Event:
    • RE/MAX (RMAX) Broker Owner Conference 2022 (08/14/22-08/16/22).
  • Industry Meetings:
    • Insight Tech Conference + Expo 2022 (08/14/22-08/17/22)
      • Previously posted and ongoing conferences:
        • None of note.

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:

DISCLAIMER

This communication is for informational purposes only and is solely intended for use by institutional investors. Use of this communication by others, including retail investors, is prohibited. No statement herein is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Certain products, including options and futures, may involve substantial risk and are not suitable for all investors. The information on this webpage is provided by an independent third party. While the information and opinions presented in this material have been obtained or derived from sources believed by Capital Institutional Services, Inc. (CAPIS) to be reliable, CAPIS makes no representations concerning its accuracy or completeness, and accepts no liability for loss arising from the use of this material.