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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 – 08/24/22: Stocks Traded Overnight In a Narrow Range As Paralysis Begins For Jackson Hole Speech On Friday"

posted by CAPIS on 08/24/2022 at 8:14 am

by CAPIS

08/24/2022 at 8:14 am

Overnight Summary: The S&P 500 closed Tuesday at 4128.73 (lower by -0.22%) from Monday at 4137.99 (lower by -2.14%).  The overnight high of 4135 was hit at 4:35 a.m. EDT. The low was hit at 4110.75 at 3:45 a.m. EDT, a range of 25 points high to low which is well below the range of late with 45 the average range. At 7:25 a.m. EDT the current price was 4131.75 which is +0.03% and 1.25 points.  Currently, at 7:55 a.m. EDT the S&P 500 is now higher by +8.

  • Beats: LZB +0.24, INTU +0.12, CAL +0.06, TOL +0.06, PYCR +0.02, JWN +0.01.
  • Flat: None of note.
  • Misses: SCSC (0.06), URBN (0.06), AAP (0.01).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CGRN: Closing of Approximately $8.0 Million Underwritten Public Offering.
    • FSRD: Filed Form S-1.. Up to 14,643,920 Shares of Common Stock.
    • IVDA: Filed Form S-1.. 1,100,000 Shares of Common Stock.
    • MEDS: Proposed Public Offering of Common Stock .. Benchmark bookmanager.
    • PWP: Announces Completion of Exchange Offer and Consent Solicitation and Notice to Exercise Right to Exchange Remaining Outstanding Warrants.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • EQBK: Filed Form S-3..$150,000,000 Mixed Shelf.
  • Debt Filing/Notes:
    • AIG: Closing of Hybrid Notes Offering by Corebridge Financial, Inc.
  • Convertible Offering & Notes Filed:
    • HLBZ: Form 8K.. entered into a securities purchase agreement – Convertible Debentures.
    • ZTO: Announces Proposed Offering of US$870 Million 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: TTCF +15%, GETY +8%, LZB +7%, INTU +5%, PYCR +5%.
    • Trading Down: JWN -14%, AAP -6%.
  • News Since The Close:
    • Federal Reserve Minneapolis President Neel Kashkari (full speech):
      • We Can Only Relax On Rate Hikes When We See Compelling Evidence Inflation Is Heading Toward 2%.
      • Inflation impact of a strong US $ may affect Fed policy.
      • Right Now There Is No Tradeoff Between Employment And Inflation Mandates
    • Goldman Sees Powell Sticking To July Tightening Message At Jackson Hole. (Reuters)
    • Goldman Says Hedge Funds Back Betting Big on Megacap Tech Stocks. (Bloomberg)
    • TikTok is testing a new ‘Nearby’ feed to display local content. (META, GOOG, TWTR, SNAP, PINS) (TechCrunch)
    • Wendy’s (WEN) E. coli outbreak worse than reported by CDC: state health agency. (NYPost)
    • Japan will consider building next-generation nuclear power plants in a policy reversal that will embrace atomic energy to curb emissions and ensure future electricity supply. (Nikkei Bloomberg)
    • Julian Robertson, 90, Dies; Brought Hedge Funds Into the Mainstream. (NYT)
    • Ecolab (ECL): Bill Gates discloses purchase of nearly 59K shares
  • Exchange/Listing/Company Reorg and Personnel News:
    • ComScore (SCOR) names Greg Dale as COO.
    • Group 1 Auto (GPI)announced that Earl J. Hesterberg, President and Chief Executive Officer will retire as CEO and from the Board of Directors end of year.
    • InMed (INM) Announces Share Consolidation to Meet Nasdaq Listing Criteria.
    • II-VI (IIVI) announces that its Board agrees to extend CEO contract with Dr. Chuck Mattera.
    • Johnson & Johnson (JNJ) names Larry Merlo as Non-Executive Chair Designate of planned new consumer health company.
    • RTLR Additional Information Requested by NASDAQ.
    • Zealand Pharma (ZEAL) Appoints Henriette Wennicke as Chief Financial Officer.
  • Buyback Announcements or News:
    • FirstService (FSV) to Buy Back Up to 1.6M Common Shares in Total, or 4.2% of Public Float of Common Shares.
    • Matson (MATX) announces addition of 3 million shares to existing share repurchase program.
    • WEX:  Board of Directors Authorizes New Share Repurchase Program up to $150 million.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News:
    • First American Financial (FAF) raises quarterly dividend to $0.52 per share, a 2% increase.

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

S&P 500 +7, Dow Jones +26, NASDAQ +25, and Russell 2000 +4  (as of 8:09 a.m. EDT). Europe higher ex the FTSE and Asia lower.  VIX Futures are at 25.30 from 25.50 yesterday morning and the VIX closed at 24.11 from 23.80 yesterday. Gold, Silver 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 3.054% from 3.018% yesterday morning. Bitcoin is at $21,383 from $21,408 yesterday morning  and is lower by -0.50% this morning.

Sector Action – 08/23/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Energy, Basic Materials of note.
  • Daily Negative Sectors: Real Estate, Healthcare, Communication Services 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, and Industrials 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.

An aimless market that lazily traded down by the final bell.  Lower than average volume across the board.  Energy was up boosted by crude oil up by 3%.  Updated 08/23/22 close.

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

  • Wednesday After the Close: NVDA, CRM, ADSK, SPLK, NTAP, WSM, VSCO, ZUO, GES of note.
  • Thursday Before the Open: TD, DG, CM, DLTR, COTY, LANC, FRO, HAIN, MBUU, ANF, MOMO, HIBB, TITN of note.

Earnings of Note This Morning:

  • Beats: DY +0.48, IIVI +0.04.
  • Flat: None of note.
  • Misses: RY (0.17), WOOF (0.03), EAT (0.02).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SCSC, PYCR, CAL, IIVI of note.
  • Negative Guidance: INTU, JWN, AAP, EAT, WOOF of note.

Erlanger Research Advance/Decline Chart: Updated through 08/23/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: GETY +16%, FTCH +13%, TTCF +11%, LZB +7%, INTU +5%, SCOR +4%, DY +4%.
  • Gap Down: JWN -14%, SCSC -6%, AAP -4%.

Insider Action: OEC sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/22/22 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 premarket: WOOF, JWN, URBN, EAT, TOL, BBBY, LZB, AAP, INTU, FTCH (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: Florida Governor DeSantis seeks a strong victory as eyes presidential bid. (Bloomberg)
  • Bloomberg Most Read Story: President Biden to unveil student loan relief. (Bloomberg)
  • President Biden ordered airstrikes against Iranian backed groups in Syria. (CNN)
  • In New York, Democrat Pat Ryan beat Republican Mark Molinaro in a special election which is seen as a bellwether on Democratic reelection chances. (Politico)
  • President Biden may announce plan to cancel $10,000 of student debt which would cost the U.S. $300 billion. (CBS News)
  • Biden Administration to offer Covid-19 Omicron variant booster shots  to those 12 and older. (NYT)
  • Goldman says Hedge Funds back betting on Mega Cap Tech. (Bloomberg)
  • Thousands of U.S. flights were cancelled yesterday due to bad weather. (WSJ)
  • Honda (HMC) considering ending China supply chains. (Reuters)
  • Robinhood Snaps: Twitter (TWTR) Whistleblower is a problem for the company. Interest rises in nuclear power to drive more electricity.

Moving Average Update:

  • Score remains at 20% as there is a pretty good gap to get down the the 50 day for all indexes.  Pain if we do.  Updated 08/23/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs Rehoboth Beach, Delaware, 10:00 a.m. EDT
    • The President arrives at the White House, 10:55 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 3:00 p.m. EDT

Economic

  • MBA Mortgage Applications 7:00 a.m. EDT fell by -1.2% with week ago at -2.3%, Mortgage Rate Actual: 5.65% Vs 5.45% Previous
  • July Durable Orders are due out at 8:30 a.m. EDT and expected to come in at 0.60% from 1.90%.
  • July Pending Home Sales are due out at 10:00 a.m. EDT and are expected to improve to -3.0% from -8.6% in June.
  • EIA Petroleum Report 10:30 a.m. EDT 
  • The latest NYSE and NASDAQ Short Interest data from July 27 through August 11th are due out after the close. During this period, the S&P 500 rose 4.56%.

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Aegion (AEGN) Announces Acquisition of Next Level Environmental.
  • eBay (EBAY) Acquires the myFitment Group of Companies to Enhance Part and Accessories Listing Experience.
  • Laboratory Corp (LH) acquires RWJBarnabas Health’s outreach lab business and select related assets.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • B. Riley PBC Symposium 2022
    • Citigroup REITS Forum
    • Cowen Networking Bus Tour with Nokia
    • Three Part Advisors, LLC Midwest IDEAS Investor Conference
    • Wolfe Research Late Summer Consumer Conference 2022 (08/24/22-08/25/22)
      • Previously posted and ongoing conferences:
        • JPM Brazil Consumer & Healthcare Checkup
        • Needham 3rd Annual Virtual Semiconductor and SemiCap 1X1 Conference 2022 (08/23/22-08/25/22)
        • Piper MedTech and Diagnostics California Bus Tour
        • Rosenblatt 2nd Annual Technology Summit: The Age of AI Scaling Part 2 2022 (08/23/22-08/25/22)
        • Seaport Research 11th Annual Summer Investor Conference 2022 (08/23/22-08/24/22)
  • Company Meetings: NIO
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AWH, CSCO, RAD
  • Update:
    • United Therapeutics (UTHR) to Feature Clinical Data at the European Society of Cardiology Congress 2022 and the European Respiratory Society International Congress 2022.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • The Energy Expo 2022 (08/24/22-08/25/22)
    • 66th Annual Wyoming Mining Association Convention 2022 (08/24/22-08/26/22)
    • International Congress of Endocrinology (ICE) 2022 (08/24/22-08/28/22)
      • Previously posted and ongoing conferences:
        • Gartner Data & Analytics Summit 2022 (08/22/22-08/24/22)
        • Gartner Identity & Access Management Summit 2022 (08/22/22-08/24/22)
        • Cell Therapy Analytical Development Summit Europe 2022 (08/23/22-08/25/22)
        • 22nd International Meeting on Information Display (IMID) 2022 (08/23/22-08/26/22)
        • Cannabis Conference Presented by Cannabis Business Times 2022 (08/23/22-08/25/22)

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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