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 – 08/19/22: Stocks Lower As Bitcoin Plummets Down Over -8%"

posted by CAPIS on 08/19/2022 at 8:16 am

by CAPIS

08/19/2022 at 8:16 am

Overnight Summary: The S&P 500 closed Thursday at 4283.74 (higher by 0.23%) from Wednesday at 4274.04 (lower by -0.72%).  The overnight high of 4289 was hit at 5:00 p.m. EDT. The low was hit at 4241 at 6:45 a.m. EDT, a range of 48 points high to low which is around the range of late with 45 the average range. At 7:20 a.m. EDT the current price was 4243 which is -1.01% and -43 points.  Currently, at 8:00 a.m. EDT the S&P 500 is now down -37 points.

Breaking News: General Motors (GM) GM: Board of Directors has authorized the reinstatement of a quarterly cash dividend on the company’s outstanding common stock at a rate of $0.09 per share. The first dividend will be paid on Sept. 15, 2022, to shareholders of record as of the close of business on Aug. 31, 2022.  GM also announced it will resume opportunistic share repurchases. This week, the Board increased the capacity under the company’s existing repurchase program to $5.0 billion of common stock, up from the $3.3 billion previously remaining under the program.

MEME Mania!:  As the big swinging MEME stocks of BBBY, GME, AMC are back in the spotlight, we wanted to highlight the short interest of others in the group. Using an IBD screen that highlights 10 MEME stocks based on analysts projections, here is a chartbook of short interest for these particular stocks: NVAX, DASH, MSTR, VERU, RIVN, LCID, SQ, SOFI, DKNG, MARA

View PDF: Erlanger Research MEME Charts 081922

Earnings Out After The Close:

  • Beats: STNE +0.30AMAT +0.15, BILL +0.11, ROST +0.10, GLOB +0.02, OSIS +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:
    • AXDX: Prices 17.5 million shares at $2.00 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CGRN: Launch of Underwritten Public Offering of $8.0 million. Lake Street bookmanager.
    • TELA: Closing of Public Offering of Common Stock and Full Exercise of Underwriter’s Option to Purchase Additional Shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • NOTV: See Mixed shelf.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CALB: Filed Form S-3.. $75,000,000 Mixed Shelf.
    • IMGO: Filed Form S-3 .. $400 Million Mixed Shelf.
    • LUMO: Filed Form S-3.. $100 Million Mixed Shelf.
    • NOTV: Files for $350 million mixed securities shelf offering; also files for 6,964,728 share common stock offering by selling shareholders.
  • Debt Filing: None of note.
  • Convertible Offering & Notes Filed:
    • FNB: Prices $350 Million Senior Notes Offering.
    • ICPT: Announces Repurchase of Convertible Notes.
    • QCRH: Completes Private Placements of Subordinated Notes.
    • RCL: Closing of $1.25 billion senior unsecured notes offering to refinance near term debt maturities.

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: BILL +20%, MSGE +7%.
    • Trading Down: BBBY -41%, GME -10%, OSIS -9%, MAXN -5%, STNE -4%, AMC -4%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: BBBY, BILL, AMAT, MSGE (CNBC)
    • Starbucks (SBUX) Chief Operating Officer to depart as company eliminates role under ‘reinvention’. (CNBC)
    • Bed Bath & Beyond (BBBY) Is Said to Tap Kirkland for Debt Help. (BloombergLaw)
    • Madison Square Garden Entertainment (MSGE) explores possible spinoff that would include iconic NY arena. (CNBC)
    • Applied Materials (AMAT) says its slowing down hiring.
    • Apple (AAPL) Discloses Serious Security Vulnerabilities For iPhone, iPad And Mac. (Sky News)
    • Keurig Dr Pepper (KDP) Is in Talks to Buy Bang Energy Owner VPX. (Bloomberg)
    • Japan’s July Core CPI, excluding fresh food and fuel cost impact, rises at fastest annual pace since Dec 2015.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Allstate (ALL) names Jesse E. Merten CFO.
    • Argan, Inc. (AGX) Announces Founder, Chairman and CEO Retirement and Succession.
    • Arvinas (ARVN) Announces Changes to its Board of Directors.
    • Bill.com (BILL) appoints Sofya Pogreb as COO.
    • Foot Locker (FL): Richard A. Johnson to retire as Chairman and Ceo; Mary N. Dillon appointed as CEO, effective September 1, 2022.
    • Hepsiburada (HEPS) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
    • Home Depot (HD) CEO Ted Decker to replace retiring Craig Menear as chair. (CNBC)
    • Jacobs (J) to Implement New Holding Company Structure.
    • Roblox (RBLX) poaches executive from Meta (META), Steve Park.
  • Buyback Announcements or News:
    • Bridgewater Bancshares, Inc. (BWB) Announces New Stock Repurchase Program of $25 million.
    • Chesapeake Energy (CHK) resumes its $2 billion share repurchase program following the completion of the offers relating to warrants.
    • Home Depot (HD) announces $15 billion share buyback.
    • OVBC announces extension of Stock Buyback Program.
    • Old Republic (ORI) announces a $450 million share repurchase program and special dividend.
  • Stock Splits or News: 
    • Palatin (PTN) Announces Intent to Effect Reverse Stock Split.
  • Dividends Announcements or News:
    • Cboe Global Markets (CBOE) raises quarterly dividend $0.02 to $0.50 per share.
    • Home Depot (HD) declares second quarter $1.90 dividend.
    • Murphy USA (MUSA) increases quarterly dividend to $0.32 per share, a 3% increase.
    • ORI: See buyback.
    • United Comm Banks (UCBI) raises its quarterly dividend to $0.22 per share, a 4.8% increase.

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

S&P 500 -36 , Dow Jones -236, NASDAQ -136  and Russell 2000 -23  (as of 8:11 a.m. EDT). Europe lower ex FTSE and Asia lower ex Hong Kong.  VIX Futures are at 23.65 from 23.30 yesterday morning and the VIX closed at 19.56 from 20.22  yesterday. Gold and Silver lower with Copper higher. 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 2.95% from 2.871% yesterday morning. Bitcoin is at $21,490 from $23,472  yesterday morning  and is lower by -8.13% this morning. 

Sector Action – 08/18/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Energy, Technology, Basic Materials of note.
  • Daily Negative SectorsReal Estate, 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.

See-saw day that saw a gradual increase for the afternoon session that was quickly swatted down in the last 30 minutes of trading.  The price action remained in the constraints of the Erlanger Value Line Support and Resistance lines and dancing above and below the pivot (see chart below). Updated 08/18/22 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: None of note.

Earnings of Note This Morning:

  • Beats: VIPS +0.77, FL +0.29, BKE +0.12.
  • Flat: None of note.
  • Misses: MGE (2.53), DE (0.52)
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: OSIS, BILL, STNE, GLOB of note.
  • Negative Guidance: ROST, VIPS, FL of note.

Erlanger Research Advance/Decline Chart: Updated through 08/18/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: BILL +20%, MSGE +7%, VRNA +4%.
  • Gap Down: BBBY -45%, AXDX -14%, STNE -12%, GME -11%, MAXN -9%, DE -5%, HOOD -5%, AMC -4%, FUBO -4%, APRN -4%.

Insider Action: No stock sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/17/22 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: DE BBBY FL COIN (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: Billionaire Ryan Cohen pockets 56% on BBBY while retail traders Recoil. (Bloomberg)
  • Bloomberg Most Read Story: Putin and XI to attend G-20. (Bloomberg)
  • Futures fall on Fed speak and fears over rate increases. (Reuters)
  • Federal Reserve Chairman Powell to speak from Jackson Hole, WY next Friday, August 26th. (Reuters)
  • Chinese President Xi and Russian President Putin to attend the G-20 later this year. (Bloomberg)
  • Ukraine Atomic Plant poses risk to European grid. (Bloomberg)
  • Bitcoin falls the most in the last two months. (MarketWatch)
  • Streaming tops cable for the first time ever. (WSJ)
  • PIMCO spends billions on assets hit by recession. (Bloomberg)
  • Tesla (TSLA) cut $5 billion deal with Indonesia to get nickel. (Bloomberg)
  • Wayfair (W) to cut 5% of its work force. (CNBC)
  • Deere & Co (DE) misses and guides lower on supply issues. (Reuters)
  • LeBron James to become highest paid player in the history of the NBA. (Bloomberg)
  • Robinhood Snacks: Swedish Company Embracer buys rights to Lord of the Rings and The Hobbit.

Moving Average Update:

  • Score remains at 71%.  Updated 08/18/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • No public events scheduled.

Economic

  • Quarterly Services 10:00 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT 

Federal Reserve / Treasury Speakers:

  • Federal Reserve Richmond President Thomas Barkin at 9:00 a.m. EDT — (Participating in panel)
  • Federal Research Chair Jerome Powell To Speak Friday 26 August At Jackson Hole Central Banking Conference.

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • D.A. Davidson Big Sky Technology Summit 2022 (08/21/22-08/23/22)
      • Previously posted and ongoing conferences:
        • SVB Vaccine Forum 2022 (08/18/22-08/19/22) 
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • Controversies and Conversations in Laser & Cosmetic Surgery Annual Meeting 2022 (08/19/22-08/21/22).
    • Kansas City Heart Rhythm Symposium 2022. (08/20/22-08/21/22)
      • 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.