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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 – 08/26/22: The Only Thing That Matters Today Is Federal Reserve Chairman Powell’s Speech From Jackson Hole, Futures Lower"

posted by CAPIS on 08/26/2022 at 9:57 am

by CAPIS

08/26/2022 at 9:57 am

Overnight Summary: The S&P 500 closed Thursday at 4199.12 (higher by 1.41% from Wednesday at 4140.77 (higher by 0.29%).  The overnight high of 4202.75 was hit at 4:05 p.m. EDT. The low was hit at 4180 at 7:10 .m. EDT, a range of 23 points high to low which is below the range of late with 45 the average range. At 7:15 a.m. EDT the current price was 4182.50 which is -0.44% and -18.50 points.  Currently, at 7:55 a.m. EDT the S&P 500 is now higher by +25.

  • Beats: ULTA +0.71, GPS +0.10, AFRM +0.08, DOMO +0.07, VMW +0.06, DELL +0.04, FTCH +0.04, SUMO +0.04, WDAY +0.03, ESTC +0.02, MRVL +0.01.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • Onfolio Holdings Inc. (ONFO) Announces Pricing of $13.7 Million Initial Public Offering and Nasdaq Listing.
    • Porsche is said to line up IPO demand at up to $85 Billion valuation.
  • New SPACs launched/News:
    • APx Acquisition Corp. I (APXI) Receives NASDAQ Notification of Non-Compliance With Listing Rules.
    • Isleworth Healthcare Acquisition Corp. (ISLE) Announces Cancellation of Special Meeting of Shareholders, Redemption of Public Shares and Subsequent Dissolution.
    • Riverview Acquisition Corp. (RVAC) Stockholders Approve Proposed Business Combination Transaction with Westrock Coffee Holdings, LLC.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • EAR: Filed Form S-1.. Rights to Purchase Up to 375,000,000 Shares of Common Stock.
    • SAI: Filed Form F-1 — Unit Offering.
    • REE: Filed Form 424B5.. Up to $75,000,000 Class A Ordinary Shares – Sales Agreement.
    • VRDN: Exercise in Full and Closing of Underwriters’ Option to Purchase Additional Shares in Public Offering.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • PEGY: (See Mixed Shelf Offerings)
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • DNMR: Filed Form S-3.. $100 Million Mixed Security Shelf.
    • NEPT: Filed Form S-3.. $75,000,000 Mixed Shelf.
    • PEGY: Filed Form S-3.. $100 Million Mixed Shelf — 9,411,744 Shares of Common Stock Offered by the Selling Stockholders.
    • ZEV: Filed Form 424B5.. $250,000,000 Mixed Shelf.
  • Debt Filing/Notes:
    • HAL: Announces Redemption of 3.50% Senior Notes Due 2023.
  • Convertible Offering & Notes Filed:
    • BNFT: Agrees to Repurchase Certain of Its Outstanding 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: MFGP +95% (see M&A Activity), FTCH +13%, WDAY +11%, GPS +6%.
    • Trading Down: DOMO -15%, AFRM -13%, DNMR -12%, DELL -8%, OTEX-5%, ESTC -5%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: ULTA, GPS, AFRM, WDAY, MRVL (CNBC)
    • China Greenlights $70 billion-Plus In Infrastructure Bonds To Lift Economy. (Nikkei)
    • Ulta Beauty’s (ULTA) stock rises on sales, earnings beat. (MarketWatch)
    • DoorDash (DASH) hit by data breach linked to Twilio hackers. (TechCrunch)
    • Blackstone (BX) Single-Family Landlord to Halt Home Purchases in 38 Cities. (Bloomberg)
    • Gap (GPS) to Pause Planned Hiring and Open Positions.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Atrion Corporation (ATRI) Announces CFO Succession Plan.
    • AVCT: Announces Board and Management Changes Along With Review of Strategic Alternatives.
    • Dentsply Sirona (XRAY) appoints Simon Campion as President and CEO.
    • Pembina Pipeline (PBA) appoints Cameron Goldade as CFO; appoints Henry Sykes as Board Chair.
    • Statera Biopharma (STAB) Receives Anticipated Notice of Additional Filing Delinquency from Nasdaq.
    • Vinco Ventures (BBIG) Announces Receipt of Deficiency Notice from Nasdaq Regarding Failure to Comply with Requirement to Timely File Quarterly Report on Form 10-Q.
    • Vivos Therapeutics (VVOS) Announces Receipt of Notice from Nasdaq Regarding Late Filing of Quarterly Report on Form 10-Q.
  • Buyback Announcements or News:
    • Itau Unibanco Holding SA (ITUB) authorizes 75.0 million share stock repurchase.
  • Stock Splits or News:
    • Athersys (ATHX) Announces 1-for-25 Reverse Stock Split.
  • Dividends Announcements or News:
    • Lam Research Corporation (LRCX) Announces a 15% Increase in Quarterly Dividend to $1.725 per share.

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

S&P 500 -9, Dow Jones -39, NASDAQ -41, and Russell 2000 -4  (as of 8:05 a.m. EDT). Europe lower ex FTSE and Asia higher ex Shanghai.  VIX Futures are at 24 from 23.95  yesterday morning and the VIX closed at 21.78 from 22.82  yesterday. Gold and Silver lower with Copper higher. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, flat vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.074% from 3.087% yesterday morning. Bitcoin is at $21,174 from $21,709 yesterday morning  and is lower by -1.98% this morning.

Sector Action – 08/25/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Basic Materials, Consumer Cyclical, Communication Services, Technology, Industrials, Real Estate, Financial of note.
  • Daily Negative Sectors: none 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.

Indexes all in the green today in anticipation of good words coming from the Jackson Hole Summit!  Updated 08/25/22 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: CTLT, SLQT, AKTS of note.

Earnings of Note This Morning:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: JKS (0.26).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SUMO, ULTA of note.
  • Negative Guidance: AFRM of note.

Erlanger Research Advance/Decline Chart: Updated through 08/25/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: MFGP +94% (see M&A Activity), FTCH +15%, ETNB +10%, WDAY +10%, GPS +8%, APLD +8%.
  • Gap Down: DOMO -16%, AFRM -13%, DNMR -8%, OTEX -6%, ESTC -5%, TVTX -5%, DELL -4%.

Insider Action: No stock sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/24/22 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: EA GPS ULTA AFRM SGEN EVBG DELL FTCH WDAY MFGP  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Fed’s Jackson Hole Conference is Underway: Here’s What To Expect. (Bloomberg)
  • Bloomberg Most Read Story: Republican Fury  Over ESG Triggers Backlash with U.S. Pensions at Risk. (Bloomberg)
  • U.K. Energy Bills to rise by 80% in October. (CNBC)
  • Federal Reserve Chairman Powell not likely to tell investors what they want to hear. (CNBC)
  • The Ukraine Nuclear Power Plant in Zaporizhzhia lost power jeopardizing the plant but the backup did kick in. (WSJ)
  • Fed Watchers expect a tougher Federal Reserve Chairman Powell to appear to Jackson Hole. (CNBC)
  • Rumor that Amazon (AMZN) interested in buying Electronic Arts (EA). (USA Today)
  • Merck (MRK) bid for Seagen (SGEN) hits a wall over price. (Bloomberg)
  • Everbridge (EVBG) considers selling itself. (Bloomberg)
  • Robinhood Snaps: Companies like Lyft (LYFT) and Salesforce (CRM) sublease space as workers stay at home.  ChargePoint (CHPT) brings national ad network to its 30,000 EV stations.

Moving Average Update:

  • Little more green today.  Short term moving averages crossed at we go to 54% from 20%.  Certainly a weird spaghetti pattern going on with 10 day still all negative.  Updated 08/25/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
    • The President drops by a meeting with state and local elected officials on Women’s Equality Day to discuss actions to protect access to reproductive health care, 11:00 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 12:45 p.m. EDT
    • The President departs the White House en route Beltsville, Maryland, 1:55 p.m. EDT
    • The President arrives in New Castle, Delaware, 4:40 p.m. EDT

Economic

  • Int. Trade in Goods 8:30 a.m. EDT
  • Wholesale Inventories 8:30 a.m. EDT
  • July Personal Income is due out at 8:30 a.m. EDT and is expected to remain at 0.6%.
  • August University of Michigan Consumer Sentiment (final) is due out at 10:00 a.m. EDT and is expected to remain at 55.10.   
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Jackson Hole Economic Symposium (08/25/22-08/27/22).
  • Federal Research Atlanta President Raphael Bostic on CNBC, 8:30 a.m. EDT
  • Federal Reserve Philadelphia President Patrick Harker on Bloomberg TV 9:00 a.m. EDT
  • Federal Reserve St. Louis President James Bullard on Bloomberg TV 9:15 a.m. EDT
  • Federal Research Atlanta President Raphael Bostic on Bloomberg TV 10:00 a.m. EDT
  • Federal Research Chair Jerome Powell 10:00 a.m. EDT
  • Federal Reserve Cleveland President Loretta Mester on Bloomberg TV 11:30 a.m. EDT

M&A Activity:

  • Open Text (OTEX) plans to acquire Micro Focus (MFGP) at $6 billion valuation. (MarketWatch)

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously posted and ongoing conferences:
        • Citigroup REITS Forum
  • Company Meetings: BMY
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • HP Global Partner (HPQ) Roadshow in Dubai (08/28/22-08/30/22)
    • Bristol Myers Squibb (BMY) ESC Investor Event 2022 (08/28/22)
  • Industry Meetings:
    • Society for Immunotherapy of Cancer (SITC) Webinar
    • European Society of Cardiology (ESC) Congress 2022 (08/26/22-08/29/22)
    • The New York Cannabis and Hemp Convention 2022 (08/26/22-08/27/22)
      • Previously posted and ongoing conferences:
        • 22nd International Meeting on Information Display (IMID) 2022 (08/23/22-08/26/22)
        • 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)

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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