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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 – 08/29/22: Stocks Weak This Morning But Off Overnight Lows"

posted by CAPIS on 08/29/2022 at 8:13 am

by CAPIS

08/29/2022 at 8:13 am

Overnight Summary: The S&P 500 closed Friday at 4057.66 (lower by -3.38%) from Thursday at 4199.12 (higher by 1.41%).  The overnight high of 4040.75 was hit at 3:10 a.m. EDT. The low was hit at 4006.75 at 9:30 .m. EDT, a range of 36 points high to low which is below the range of late with 45 the average range. At 7:20 a.m. EDT the current price was 4017.75 which is -1.03% and -41.75 points.  Currently, at 7:55 a.m. EDT the S&P 500 is now lower by -35.

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Breaking News: Artemis I mission to the moon in jeopardy this morning due to several issues, including engine. (CNN)

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:
    • ASTR: Filed Form S-1.. 34,000,000 SHARES OF CLASS A COMMON STOCK.
    • BLU: Filed Form F-10 Common Shares Offering.
    • GTEC: Filed Form S-1.. Up to 5,146,026 Ordinary Shares Issuable upon Exercise of Pre-Funded Warrants and Common Warrants.
    • NOTE: Filed Form S-1..Up to 87,504,863 Shares of Class A Common Stock Up to 11,000,000 Shares of Class A Common Stock Issuable Upon the Exercise of Warrants Up to 7,000,000 Warrants.
    • SMFR: Filed Form S-3.. 358,211,888 Shares of Class A Common Stock 7,236,667 Warrants to Purchase Shares of Class A Common Stock 21,994,972 Shares of Class A Common Stock Underlying Warrants.
    • SPCB: Filed Form F-1.. 5,648,689 Ordinary Shares.
    • VBIV: Form 8K.. On August 26, 2022, the Company delivered written notices to Jefferies to terminate each of the July 2020 Sales Agreement and the September 2021 Sales Agreement, each effective as of August 26, 2022..
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • BON: Filed Form F-3.. $200 Million Mixed Security Shelf.
    • CTKB: Filed Form S-3ASR.. mixed Shelf Offering.
    • GTES: Filed Form S-3ASR Mixed Shelf .. Selling Shareholders 178,587,591 Ordinary Shares.
    • INDI: Filed Form S-3.. $300,000,000 Mixed Shelf.
    • KNSL: Filed Form S-3ASR — Mixed Shelf Offering.
    • MNOV: Filed Form S-3.. $200,000,000 Mixed Shelf.
    • MNTX: Filed Form S-3.. $75 Million Mixed Shelf.
    • RETO: Filed Form F-3 US$200 Million Mixed Shelf.
    • VBIV: Filed Form S-3 — $300 Million Mixed Shelf Offering.
  • Debt Filing/Notes:
    • AJX: Closes Offering of $110,000,000 of Senior Unsecured Notes.
    • TELL: Announces Public Offering of Senior Secured Notes
  • Convertible Offering & Notes Filed: None of note.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: MFGP 82%, AVYA 81%, FTCH 48%, AERI 37%, TAL 36%, PAGS 31%, IPI 30%, PDD 26%, AXDX 23%, EVBG 22%, TUSK 20%, VAPO 19%, RETA 19%, EDU 18%, CCJ 18%, DNOW 18%, TRQ 18%, LANC 17%.
    • Trading Down: OMER -35%, SIGA -29%, DOMO -27%, JWN -25%, ANF -23%, PETQ -20%, CLAR -20%, AMRN -19%, CMPR -19%, DLTR -17%, SCSC -17%, GRTS -17%, SFIX -17%, OTEX -17%, EAT -16%, HAIN -16%.
  • News Items After the Close:
    • TikTok Cuts Advertising Employees Amid Department Restructuring. (theinformation)
    • Wendy’s (WEN) Pulls Sandwich Lettuce in Midwest Due to E. Coli Outbreak. (Bloomberg)
    • Countries should be increasing nuclear power generation! It is insane from a national security standpoint & bad for the environment to shut them down. Elon Musk Tweets. 
    • US Army awards Raytheon (RTX) Missiles & Defense $182 million NASAMS contract for Ukraine.
  • News Items Over the Weekend:
    • Stocks That Defined the Week: JWN, F, AMZN, TWTR, PTON, BBBY, MRNA (WSJ)
    • The Week in Business: Changing Consumer Habits.  (NYT)
    • Investors Ramp Up Bets Against Stock Market as Summer Rally Fizzles. (WSJ)
    • U.S. warships sail through Taiwan Strait for first time since House Speaker Pelosi’s controversial visit. (Fox)
    • Shorting Zillow (Z) Is Your Best Bet in Housing This Year. (WSJ)
    • Bitcoin last down 1.2% at $19,996; Ether last down 1.96% at $1,479.3. (8.27 11:40 a.m. EDT)
    • Dollar hits 20-year high as markets hunker down for higher rates for longer.
    • Barron’s:
      • Positive View: AA, JNPR, TMUS
      • Cautious View: NVDA.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Allarity Therapeutics (ALLR) Receives Nasdaq Notification of Non-Compliance with Listing Rule.
    • Arlo (ARLO) Announces Changes in Executive Leadership to Drive Growth and Further Expand Services.  ARLO announces that CFO Gordon Mattingly will resign from his role and Kurt Binder will take over. (MarketWatch)
    • Bannix Acquisition Corp. (BNIX) Receives NASDAQ Notification of Non-Compliance With Listing Rules.
    • CalAmp (CAMP) Announces CFO Transition.
    • ESS Inc. (GWH) Announces Leadership Team Expansion adding Vince Canino as COO.  See ARLO above for Kurt Binder move.
    • Life Time (LTH)announced that President and Chief Financial Officer, Thomas Bergmann, has decided to retire from the Company on December 31, 2022.
    • Otonomo (OTMO) Announces Receipt of Nasdaq Non-Compliance Letter.
  • Buyback Announcements or News:
    • FLEX receives shareholder approval to purchase up to 20% of its shares, board has authorized management to continue its share repurchase plan in an amount not to exceed $1 billion.
    • Silicon Labs (SLAB) announces that its board of directors has increased the authorization for the repurchase of the company’s common stock by $200 million.
  • Stock Splits or News:
    • MindMed (MNMD) Completes 1-for-15 Reverse Share Split.
  • Dividends Announcements or News: None of note.

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

S&P 500 -36, Dow Jones -255, NASDAQ -144, and Russell 2000 -19 (as of 8:08 a.m. EDT). Europe lower and Asia higher ex Shanghai.  VIX Futures are at 26.95 from 24 Friday morning and the VIX closed at 25.56 from 21.78 yesterday. Gold, Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.112% from 3.074% Friday morning. Bitcoin is at $19,804 from $21,174 Friday morning  and is lower by -0.92% this morning.

Sector Action – 08/26/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: None of note.
  • Daily Negative Sectors: Technology, Communication Services, Consumer Cyclical, Industrials, Healthcare, Financials, Basic Materials of note.
  • One Month WinnersTechnology, 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.

He came, he spoke, he crushed (the markets).  No pivot.  Pure pain.  Markets pull back on Jerome Powell’s speech from Jackson Hole.  NDX down 4.10% on the day.  SPX down 4% for the week and NASDAQ was down 4.4% for the whole week.  Updated 08/26/22 close.

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

  • Monday After the Close: HEI of note.
  • Tuesday Before the Open: BMO, BIDU, BBY, PLAB, AMWD, BIG, CONN of note.

Earnings of Note This Morning:

  • Beats: CTLT +0.04
  • Flat: None of note.
  • Misses: SLQT (0.48)
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: none of note.
  • Negative Guidance: CTLT of note.

Erlanger Research Advance/Decline Chart: Updated through 08/26/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: HIL +17%, AMPY +4%.
  • Gap Down: GTES -4%.

Insider Action: No stock sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 08/26/22 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: WMT, PDD, NFLX, CTLT, MRNA, ETSY  (CNBC)
  • 5 things to know before the stock market opens Monday. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Rally Hopes Crumble as Powell’s Rates Reality Hits Full Force. (Bloomberg)
  • Bloomberg Most Read Story: Powell Heaps Pressure on Risk Sentiment As More Catalysts Loom. (Bloomberg)
  • Iran Nuclear Talks will extend a few more weeks. (Bloomberg)
  • Ukraine warns of hydrogen and radiation leaks from Zaporizhzhia nuclear plant. International Atomic Energy Agency to inspect plant this week. (Axios)
  • Republicans lose several seats in runoff elections and are now projected to capture 226 seats in the House which is the majority by 8 votes. (CBS News)
  • Senator Elizabeth Warren (D-MA) concerned that Fed policy will result in a recession. (CNN)
  • Health officials are optimistic about a decline in monkeypox cases. (The Washington Post)
  • Latest Covid-19 vaccine to be approved before testing is completed. FDA to approve this week. (WSJ)
  • Truth Social a unit of Digital World Acquisition (DWAC) having money issues. (The Washington Post)
  • China to limit some meat imports from Tyson Foods (TSN). (Bloomberg)
  • Dell Inc. (DELL) ends operations in Russia. (Reuters)
  • Goldman Sachs (GS) impacted by employee departures. (NY Post)
  • Meta (META) settles Cambridge Analytica lawsuit. (WSJ)
  • Netflix (NFLX) looking to charge $7 to $9 for ad supported product. (Bloomberg)

Moving Average Update:

  • That did not last long.  Back down to 20% with all eyes on the 50 day again.  Updated 08/26/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs New Castle, Delaware en route the White House, 9:00 a.m. EDT
    • The President arrives at the White House, 9:55 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EDT

Economic

  • Dallas Fed Mfg. Survey 10:30 a.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Credit Suisse 10th China Internet Conference 2022 (08/29/22-08/31/22)
    • Jefferies Semiconductor, IT Hardware & Communications Infrastructure Summit 2022 (08/29/22-08/31/22)
    • Stifel Tech Executive Summit Deer Valley 2022 (08/29/22-08/31/22)
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ATHX.
  • 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)
    • VMware (VMW) Explore US 2022. (08/29/22-09/01/22)
    • AMD Livestream Event to Unveil Next Generation Ryzen Processors.
  • Industry Meetings:
    • SafelyYou Inaugural Silicon Valley Senior Living Summit 2022 (08/29/22-08/31/22)
      • Previously posted and ongoing conferences:
        • European Society of Cardiology (ESC) Congress 2022 (08/26/22-08/29/22)

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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