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09.27.2022 12 new Morning Note posts under Morning Note (11) and CAPIS Insights (1)

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"CAPIS Morning Note – 08/17/22: Stocks Began Selling Off At 2:00 a.m. EDT and Gained On Target Miss"

posted by CAPIS on 08/17/2022 at 8:19 am

by CAPIS

08/17/2022 at 8:19 am

Overnight Summary: The S&P 500 closed Tuesday at 4305.20 (higher by 0.19%) while Monday at 4297.14 (higher by 0.40%).  The overnight high of 4315 was hit at 2:00 a.m. EDT. The low was hit at 4274.50 at 6:35 a.m. EDT, a range of 40 points high to low which is below the range of late with 45 the average range. At 7:25 a.m. EDT the current price was 4277 which is -0.71% and -30.75 points.  Currently, at 8:00 a.m. EDT the S&P 500 is now down -34.

Breaking News: Target (TGT) misses the bullseye on earnings as the company has yet to overcome it high inventory levels.

Earnings Out After The Close:

  • Beats: A +0.13, JKHY +0.10
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • FRZA: Closing of Initial Public Offering and Exercise of Over-Allotment Option.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • ASLE: Pricing of Secondary Offering of Common Stock 4.25M @$17.25 by certain of its stockholders.
    • BE: Announces Pricing of $338.0 Million Public Offering of Class A Common Stock.
    • VRDN: 9.62M shares priced at $23.50 per share.
  • Notes Priced of note:
    • ENLC: Announces Pricing of Upsized Offering of $700 Million of Senior Notes Due 2030.
    • NOVA: Announces Pricing of Upsized Offering of $500 Million of 2.625% Convertible Senior Notes.
  • Common Stock filings/Notes:
    • INAB: Closing of $10.25 Million Underwritten Public Offering of Common Stock.
    • IVC: Filed Form S-3.. Up to 32,402,336 Common Shares.
    • OPCH: Secondary Offering of 11,000,000 Shares of Common Stock. GS Underwriter
    • PALI: Closing of $13.8 Million Upsized Underwritten Public Offering and Full Exercise of Over-Allotment Option.
    • REBN: Announces Closing of Upsized $7.2 Million Initial Public Offering.
    • RKDA: Announces Closing of $5.0 Million Registered Direct Offering Priced At-the-Market.
    • UBX: Proposed Public Offering of Common Stock.. $25Million. SVB, Cantor and Mizuho bookmanagers
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • ASLE: Secondary Offering of Common Stock.. 4.25 million. Cowen, RBC and Stifel bookmanagers
    • OSH: Filed Form S-3ASR.. Common Stock Offering by selling shareholders.
  • Private Placement of Public Entity (PIPE):
    • BACK: Closing of $3.9 Million Registered Direct and Private Placement Offerings.
  • Mixed Shelf Offerings:
    • CTIC: Filed Form S-3.. $200Million Mixed Security Shelf.
  • Debt Filing: None of note.
  • Convertible Offering & Notes Filed:
    • C: Announces $2.0 Billion Redemption of Floating Rate Notes Due 2023.
    • Sachem Capital (SACH) announces the commencement of a registered public offering of unsecured, unsubordinated notes due five years from the date of issuance.

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: SAVA +21%, A +6%, CCRN +6%, QTRX +4%.
    • Trading Down: ASLE -8%, OPCH -5%, JKHY -5%, OSH -4%.
  • News Since The Close:
    • Agilent (A) stock rallies after quarterly beat, guidance increase for company. (MarketWatch)
    • Amazon (AMZN) workers at warehouse near Albany file petition for union election. (CNBC)
    • Manchester United (MANU) shares up nearly 17% to $14.90 premarket after Musk says buying Manchester United is a joke.
    • SEC Charges Eagle Bancorp (EGBN) and Former CEO with Failing to Disclose Related Third Party Loans. (SEC Press Release)
    • Tencent (TME) posts first ever revenue decline.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Centerra Gold (CGAU) Paul Chawrun will take over as COO.
    • Minim (MINM) Announces Executive Leadership Transition.
    • OPKO Health (OPK) Announces Leadership Changes for BioReference Laboratories.  Executive Chairman and CEO will be retiring.
    • Tiziana Life Sciences (TLSA) Announces Purchase of Common Shares by Executive Chairman.
    • TPTX Halt – Additional Information Requested by NASDAQ.
  • Buyback Announcements or News:
    • Cross Country Healthcare (CCRN) Announces Authorization of a New $100 Million Stock Repurchase Program.
    • Group 1 Automotive (GPI) Board Approves Share Repurchase Authorization by $130 million to $250 million & Announces Quarterly Cash Dividend of $0.38 per share, a $0.01 increase.
    • Vishay (VSH) approves the repurchase of an additional 6.0 million shares of common stock.
  • Stock Splits or News:
    • EMBK Class A common stock will begin trading on a split-adjusted basis on August 17, 2022.
    • GLG Reverse stock split effective today.
    • ITRM 1 for 15 reverse split, effective tomorrow.
  • Dividends Announcements or News:
    • BitNile Holdings (NILE) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
    • Evans Bancorp (EVBN) increases its semi-annual dividend by $0.02 to $0.64 per share.
    • GPI (see Buybacks)
    • MINISO’s (MNSO) board of directors declared a special cash dividend in the amount of US$0.172 per ADS or US$0.043 per ordinary share.
    • Stock Yards Bancorp (SYBT) increases quarterly cash dividend $0.01 to $0.29 per share.

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

S&P 500 -31, Dow Jones -176, NASDAQ -111 and Russell 2000 -13. Europe lower and Asia higher.  VIX Futures are at 23.75 from 23.25 yesterday morning and the VIX closed at 20.44 from 19.95 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 2.884% from 2.808% Tuesday morning. Bitcoin is at $23,770 from $24,139 yesterday morning  and is lower by -0.72% this morning. As of 8:14 a.m. EDT, the S&P 500 is at 4,274.75.

Sector Action – 08/16/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Consumer Defensive, Basic Materials, Consumer Cyclical, Financial of note.
  • Daily Negative Sectors: Technology and Healthcare 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.

Indexes ended up mixed on lower volume.  NASDAQ closed down 0.19% with the $INDU ending up +0.71% driven by Walmart (WMT) and Home Depot (HD). $SPX touched the 200 day moving average and snapped back from that level (see below).  Updated 08/16/22 close.

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

  • Wednesday After the Close: CSCO, SNPS, WOLF, BBWI, CRDO of note.
  • Thursday Before the Open: EL, NTES, NICE, BILI, TPR, MSGS, KSS, CSIQ, SPTN, SLQT of note.

Earnings of Note This Morning:

  • Beats: SFL +0.21, ADI +0.09, LOW +0.08, PFGC +0.03, TJX +0.02
  • Flat: None of note.
  • Misses: PLCE (1.52), TGT (0.33), DNUT (0.02)
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: A of note.
  • Negative Guidance: DNUT, TJX of note.

Erlanger Research Advance/Decline Chart: Updated through 08/16/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: HIL +62%, SAVA +20%, A +6%.
  • Gap Down: ASLE -10%, DNUT -8%, SNY -5%, PLCE -5%, OPCH -5%, JKHY -4%.

Insider Action: TELA sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/16/22 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: LOW TGT TJX DNUT MANU BBBY A SWX SNY (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: Target Misses, Still Predicts Rebound. (Bloomberg)
  • Bloomberg Most Read Story: Liz Cheney (R- WY) loses primary, vows to keep Trump out of White House for second term. (Bloomberg)
  • U.S. Government to stop buying Covid-19 vaccines, testing devices and treatments. (CNN)
  • Mortgage demand slows again this week. (CNBC)
  • Amazon (AMZN) warehouse in Albany filed petition to vote on unionization. (Bloomberg)
  • Apple (AAPL) will make the Apple Watch in Vietnam. (Nikkei)
  • Toyota (TM) among several companies it close plants in China’s Sichuan province due to drought conditions. (Bloomberg)
  • Robinhood Snacks: American Airlines (AAL) to buy 20 ultrafast jets from Boom Supersonic.

Moving Average Update:

  • Score remains at 88%.  Updated 08/16/22 close.

 

Geopolitical: 

  • President’s Public Schedule:
    • No public events scheduled – Biden Residence, Wilmington, DE

Economic

  • MBA Mortgage Applications 7:00 a.m. EDT 
    • U.S MBA mortgage applications (wow) actual: -2.3% vs 0.2% previous.
    • U.S MBA 30-year mortgage rate actual: 5.45% vs 5.47% previous.
  • July Retail Sales is due out at 8:30 a.m. EDT and expected to come in at 0.20% from 1.00%.
  • Business Inventories 10:00 a.m. EDT 
  • EIA petroleum Report 10:30 a.m. EDT
  • The latest Federal Reserve Open Market Committee (FOMC) Notes are due out at 2:00 p.m. EDT.

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Hill International (HIL) to be acquired by Global Infrastructure Solutions Inc. for $2.85 per share.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Needham 4th Annual Virtual FinTech & Digital Transformation 1X1 Conference 2022 (08/17/22-08/18/22)
    • Sidoti August Micro-Cap Virtual Conference 2022 (08/17/22-08/18/22)
    • H.C. Wainwright Ophthalmology Conference 2022
      • Previously posted and ongoing conferences:
        • Citi One-on-One MLP/Midstream Infrastructure Conference 2022 (08/16/22-08/18/22)
        • Deutsche Bank Transportation Conference 2022 (08/16/22-08/17/22)
        • Investor Summit Group’s Virtual Conference
        • 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)
  • Company Meetings: SJM.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: CRTG, TLFA.
  • Update:
    • Ensysce Biosciences (ENSC) Corporate Update Conference Call on Results from the BE Study of PF614.
  • R&D Day:
    • SAB Biotherapeutics (SABS) Annual R&D Portfolio Update 2022.
  • Company Event: None of note.
  • Industry Meetings:
    • World Gastro Congress 2022 (08/17/22-08/18/22)
      • 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)
        • 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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