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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 – 08/16/22: Stocks Mixed After Walmart and Home Depot Beat Numbers."

posted by CAPIS on 08/16/2022 at 8:16 am

by CAPIS

08/16/2022 at 8:16 am

Overnight Summary: The S&P 500 closed Monday at 4297.14 (higher by 0.40%) from Friday at 4280.15 (higher by 1.73%).  The overnight high of 4300.25 was hit at 10:55 p.m. EDT. The low was hit at 4285 at 3:10 a.m. EDT, a range of 15 points high to low which is below the range of late with 45 the average range, actually the lowest range perhaps of the year. At 7:15 a.m. EDT the current price was 4288 which is -0.23% and -10 points.  Currently, at 8:00 a.m. EDT the S&P 500 is now down -4.

Earnings Out After The Close:

  • Beats: NVTS +0.35, FN +0.14, TME +0.08, ZIP +0.05
  • Flat: BLND, SHLS
  • Misses: COMP (0.23), TDUP (0.07), FLNC (0.05)

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • FULC: 9.59M shares offering priced at $7.82 per share.
    • TELA: 4M shares offering priced at $8/share.
    • TRIN: Announces Pricing of $55.0 Million of Shares in Upsized Offering of Common Stock.
  • Notes Priced of note:
    • ADC: Announces Pricing of $300 Million of 4.800% Senior Unsecured Notes Due 2032.
    • DAR: Announces Pricing of Private Offering of $250.0 Million of Unsecured Senior Notes due 2030.
    • HALO: Announces Upsize and Pricing of Private Offering of $625 Million of Convertible Senior Notes due 2028.
    • RCL: Announces upsizing and pricing of $1,250,000,000 senior unsecured notes to refinance near term debt maturities.
  • Common Stock filings/Notes:
    • BE: Commencement of Public Offering of Class A Common Stock.. 13,000,000 shares. JPM, MS and BAC Bookmanagers
    • FULC: Proposed Public Offering of Common Stock.. $75 Million. GS and SVB Bookmanager
    • KIDS: Closing of its Public Offering of Common Stock and Pre-Funded Warrants and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
    • SVFD: Proposed Public Offering of Common Stock. (ThinkEquity)
    • TELA: Proposed Public Offering of Common Stock. Lake Street Capital Bookmanager
    • TGL: Closing of Upsized $9.2 Million Initial Public Offering, Nasdaq Listing, and Full Exercise of Underwriter’s Over-Allotment Option.
    • TRIN: Offering of $50.0 Million of Shares of Common Stock. Keefe, MS, UBS and WFC Bookmanagers
    • VRNA: Announces Closing of Upsized Underwritten Public Offering, Including Full Exercise of Underwriters’ Option to Purchase Additional ADSs.
    • VRDN: Proposed Underwritten Public Offering of Common Stock and Preferred Stock — $175 million of shares. Jefferies , SVB and Eevrcore bookmanagers
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • NKLA: Announces 78 million share offering by selling stockholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • AVTE: Filed Form S-3.. $300,000,000 Mixed Shelf.
    • GAMB: Filed Form F-3.. $200,000,000 Mixed Shelf.
    • TALS: Files for $250 million mixed securities shelf offering.
    • UE: Filed Form S-3ASR — Mixed Shelf Offering.
    • UNCY: Filed Form S-3.. Mixed Security Shelf.
    • REE: Filed Form F-3.. $200,000,000 Mixed Shelf.
  • Debt Filing: None of note.
  • Convertible Offering & Notes Filed:
    • NOVA: To offer $425 million of 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: DNA +22%, BLND +17%, FN +11%, GSM +9%, GRTS +5%, ALLY +4%.
    • Trading Down: ALBO -16%, SMFR -14%, SLGC -12%, COMP -10%, TELA -7%, USB -7%, NOVA -7%, TRIN -6%, FLNC -5%, ZIP -4%.
  • News Since The Close:
    • Walmart (WMT) strikes exclusive streaming deal to give Paramount+ (PARA) to Walmart+ subscribers. (CNBC)
    • China reduced holdings in U.S. Treasuries for a 7 straight month. (Reuters)
    • Two Sigma and Soros are among hedge funds positioned for tech comeback. (Reuters)
    • Hedge fund holdings out from Appaloosa, Berkshire Hathaway (BRKA), Viking Global, Pershing, Third Point, Carl Icahn, Paulson & Co.,  Elliot & Associates, ValueAct and Greenlight Capital.
    • Long U.S. Dollar (UUP) remains the most crowded trade. (BAC)
    • Apple (AAPL) and Toyota (TM) Suppliers Hit By China Blackouts Amid Heat Wave. (Nikkei)
    • Kaman Fuzing (KAMN) Receives Award From the Boeing Company for Standoff Land Attack Missile Expanded Response (SLAM-ER) Program. ($38 mm)
  • Exchange/Listing/Company Reorg and Personnel News:
    • BHP Group (BHP) Edgar Basto will be assigned Chief Operating Officer.
    • Dentsply Sirona (XRAY)  Receives Notice of Filing Delinquency from Nasdaq.
    • Moxian (MOXC) Announces Divestment of Chinese Subsidiaries.
    • Philips (PHG) announces that Roy Jakobs is proposed to replace Frans van Houten as President and CEO.
    • WeTrade Group (WETG) COO Zhuo Li resigns, no disagreement with company.
    • Zurn Elkay Water Solutions (ZWS) adds Craig G. Wehr as Chief Operating Officer.  He currently is the President of Zurn.
    • Delay 10-Q Filings:
      • DWAC, NOTE, EVLV, LNDC, NUTX, APGN
  • Buyback Announcements or News:
    • Algonquin Power & Utilities (AQN) re-establishes at-the-market equity program of up to $500 million common shares.
    • Electronic Arts (EA) Authorizes Repurchase Program for Up to $2.6 billion.
    • Paycom Software, Inc. (PAYC) Increases Stock Repurchase Plan.
    • Scorpio Tankers (STNG) Announces Repurchases of Its Common Shares from Eneti ($50 million).
    • The Tile Shop (TTSH) Announces $30 Million Share Repurchase Authorization.
    • Zedge (ZDGE) Board of Directors Authorizes 1.5 Million Share Repurchase Program.
  • 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 -3, Dow Jones +2, NASDAQ -17 and Russell 2000 +0.55 . Europe higher and Asia lower ex Shanghai.  VIX Futures are at 23.25 from 23.77 yesterday morning and the VIX closed at 19.95 from 19.53 yesterday. Gold, Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.808% from 2.833% Monday morning. Bitcoin is at $24,139 from $24,187 yesterday morning  and is higher by 0.36% this morning. As of 8:09 a.m. EDT.

Sector Action – 08/15/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Consumer Defensive, Utilities, Consumer Cyclical of note.
  • Daily Negative Sectors: Energy, Basic Materials 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.

Turnaround Tuesday…on Monday.  Stocks were sluggish to start, but ended near the highs of the days with indexes gaining about 0.50%.  Energy stocks were weak with the group down 2%.  Updated 08/15/22 close.

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

  • Tuesday After the Close: A, JKHY of note.
  • Wednesday Before the Open: LOW, ADI, TGT, TJX, DNUT, SFL, PLCE of note.

Earnings of Note This Morning:

  • Beats: HUYA +0.21, WMT +0.17, LITE +0.14, HD +0.12, ONON +0.10, WWE +0.04, SE +0.03, GENI +0.03, PINC +0.01
  • Flat: None of note.
  • Misses: GLBE (0.26)
  • Still to Report: IHS

Guidance:

  • Positive Guidance: FN, DNA, ONON, WMT, GLBE of note.
  • Negative Guidance: TDUP, COMP, NVTS, ZIP, LITE of note.

Erlanger Research Advance/Decline Chart: Updated through 08/15/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: AMTD +35%, BLND +14%, GLBE +10%, FN +10%, GNPX +7%, ONON +6%, ANIP +6%, GRTS +5%, FULC +4%, TME +4%, GENI +4%.
  • Gap Down: ALBO -15%, COMP -11%, TELA -7%, BE -7%, TRIN -7%, NOTE -7%, ZIP -6%, NOVA -6%, FLNC -6%.

Insider Action: CDLX, HUN, SIX sees Insider buying with dumb short sellingASUR sees Insider buying with smart short sellers. 08/15/22 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: HD WMT MASI PHG  BHP ALLY (CNBC)
  • 5 Things To Know Before The Stock Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: U.S. Futures Decline Over Caution on the Economy. (Bloomberg)
  • Bloomberg Most Read Story: DOJ opposes release of the Trump Affidavit. (Bloomberg)
  • Iran still has issues with pending nuclear deal. (WSJ)
  • American Airlines (AAL) removes 31,000 flight (roughly 1,000 flights a day) from November schedule. (CNN)
  • Apple (AAPL) employees back in the office three days a week starting in September. (Bloomberg)
  • Judge tells Twitter (TWTR) to hand over documents to Elon Musk in battle for Twitter. (Reuters)
  • Drivers now paying $702 a month in car payments for a new car. (CNBC)
  • Summer movie schedule winds down with Avatar, Spider-Man and Star Wars. (CNBC)
  • Home Depot (HD) beats estimates and revenues but still trade down modestly. (CNBC)
  • Walmart (WMT) beat revised lower estimates and revenues, stocks reacts positively. (CNBC)
  • Uber (UBER) to hire 5,000 more drivers in London and raise fares by 5% there. (Press Release)

Moving Average Update:

  • Score goes to 88% from 85% with the $INDU breaking above its 200 Day MA.  Updated 08/15/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and The First Lady depart Charleston Executive Airport, 11:40 a.m. EDT
    • The President and The First Lady arrive at the White House, 1:50 p.m. EDT
    • The President delivers remarks and signs into law H.R. 5376, the Inflation Reduction Act of 2022, 3:30 p.m. EDT
    • The President departs Washington, DC en route New Castle, Delaware, 7:20 p.m. EDT

Economic

  • July Housing Starts are due out at 8:30 a.m. EDT and are expected to come in at 1,543,00 from 1,559,000.
  • Redbook Sales 8:55 a.m. EDT 
  • July Industrial Production is due out at 9:15 a.m. EDT and is expected to come in at 0.3% from -0.2%.
  • API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Navitas Semiconductor (NVTS), Industry-Leader in Gallium Nitride Power ICs, Announces Acquisition of GeneSiC Semiconductor, Silicon Carbide Pioneer, for $100 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Alliance Global Partners Investor Summit
    • Citi One-on-One MLP/Midstream Infrastructure Conference 2022 (08/16/22-08/18/22)
    • D.A. Davidson Western Bank Summit 2022
    • Deutsche Bank Transportation Conference 2022 (08/16/22-08/17/22)
    • Investor Summit Group’s Virtual Conference
    • JP Morgan Hardware & Semis Management Forum    
    • Piper Sandler Energy Leaders Transition Summit 2022 (08/16/22-08/18/22)
    • Raymond James Park City Summit 2022 (08/16/22-08/17/22)
    • Santander 23rd Annual Conference 2022
    • Stifel Biotech Summer Summit 2022
      • Previously posted and ongoing conferences:
        • Needham MedTech & Diagnostics Virtual 1×1 Conference 2022 (08/15/22-08/16/22)
  • Company Meetings: None of note.
  • Fireside Chat:
    • Juniper Networks (JNPR) Fireside Chat hosted by J.P. Morgan
  • Investor/Analyst Day/Calls: FUBO, VRAR
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • Blackbaud (BLKB) Virtual Investor Meetings Hosted by Baird 2022.
    • STRATA Skin Sciences (SSKN) Key Opinion Leader Conference Call with Ladenburg Thalmann.
  • Industry Meetings:
    • None of note.
      • Previously posted and ongoing conferences:
        • AFCEA TechNet Augusta 2022 (08/15/22-08/18/22)
        • 14th Annual Bioprocessing Summit (08/15/22-08/18/22)
        • DEF CON 30 Hacking Conference 2022 (08/15/22-08/16/22)
        • Insight Tech Conference + Expo 2022 (08/14/22-08/17/22)

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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