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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 – 09/09/22: Stocks Look To Close Week Higher After Three Down Weeks"

posted by CAPIS on 09/09/2022 at 8:11 am

by CAPIS

09/09/2022 at 8:11 am

Overnight Summary: The S&P 500 closed Thursday at 4006.18 (higher by 0.66%) from Wednesday at 3979.87 (higher by 1.83%). The overnight high of 4044.50 was hit at 6:50 a.m. EDT. The low was hit at 4005 at 4:05 p.m. EDT, a range of 39 points high to low which is below the recent range of 45. At 7:15 a.m. EDT the current price was 4039.75 which is 0.86% and 34.25 points. Currently, at 7:55 a.m. EDT the S&P 500 is now up 27 but off the highs of the morning.

Earnings Out After The Close:

  • Beats: RH +1.38, ZS +0.04, CXM +0.03, DOCU +0.02.
  • Flat: None of note.
  • Misses: ZUMZ (0.31), SWBI (0.10), AOUT (0.07), AVO (0.04).

Capital Raises:

  • IPOs Priced or News:
    • Yoshiharu Global (YOSH): Pricing of Upsized Initial Public Offering — 2,940,000 shares of its Class A common stock @$4.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • CRGY: Prices offering of 5 million shares of common stock at $15.00 per share.
  • Notes Priced of note:
    • ADI: Announces Pricing of Public Offering of Senior Notes.
    • HPP: Pricing of Public Offering of $350.0 Million Aggregate Principal Amount of Senior Notes Due 2028.
    • Wayfair (W) announces the pricing of $600 mln aggregate principal amount of 3.25% convertible senior notes due 2027.
  • Common Stock filings/Notes:
    • ASTS: Entered into $150 million equity distribution agreement through an “at the market offering” program.
    • DLPN: Filed Form S-1.. Up to 3,057,313 Shares of Common Stock.
    • FNGR: Filed Form S-1.. 6,822,320 Shares of Common Stock.
    • RCM: Filed Form S-3ASR.. 179,754,055 Shares of Common Stock.
    • XOS: Filed Form S-3.. Up to 33,199,327 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • RCM: Offering of Common Stock by Selling Stockholder.. 15,000,000 shares. JPM, BAC and BCS Bookmanager.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Debt Filing/Notes: None of note.
  • Convertible Offering & Notes Filed:
    • TCBX: Private Placement of $69.4 Million of Convertible Preferred Stock.

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: DOCU +18%, ZS +10%.
    • Trading Down: ZUMZ -10%, RCM -7%, AOUT -7%, SWBI -6%, FIZZ -5%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: DOCU, ZS, RH (CNBC)
    • Halliburton (HAL) completes sale of its Russia operations to a Russia-based management team made up of former Halliburton employees; HAL no longer conducts operations in Russia.
    • Teledyne Tech (TDY) subsidiary Teledyne Brown Engineering awarded $596.5 million International Space Station Support contract.
    • NFL and college football betting projected to set record at $31 billion this season. (DKNG, MGM, CZR, PENN, BETZ) (MarketWatch)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Cantaloupe (CTLP) appoints Ravi Venkatesan CEO.
    • BitNile Holdings (NILE) Announces Planned Spin-Offs Creating Four Public Companies.
    • The Children’s Place (PLCE) terminates CFO Robert Helm following a transition period of up to 30 days.
    • PowerSchool (PWSC) COO Maulik Datanwala resigns.
    • Quanterix (QTRX) appoints Daniel Pikora COO.
    • Simpson (SSD) Announces CEO Retirement and Succession Plan.
    • WISH appoints Joe Yan as interim CEO as current CEO departs the company.
  • Buyback Announcements or News:
    • MOGU Inc. (MOGU) Announces US$10 Million Share Repurchase Program.
    • TMUS: Form K.. announced that its Board of Directors has authorized a stock repurchase program for up to $14.0 billion of the Company’s common stock.
    • Valaris (VAL) Authorizes $100 Million Share Repurchase Program.
  • Stock Splits or News: 
    • Annaly Capital Management, Inc. (NLY) Announces 1-4 Reverse Stock Split.
  • Dividends Announcements or News:
    • Annaly Capital Management, Inc. (NLY) Announces 3rd Quarter 2022 Common Stock Dividend.
    • DHT Holdings, Inc. (DHT) announces 100% of net income as new dividend policy.
    • Equity Commonwealth (EQC) declares a special, one-time cash distribution of $1.00 per share.
    • Kilroy Realty (KRC) Increases Common Dividend 3.8%.
    • VICI Properties Inc. (VICI) Increases Regular Quarterly Dividend to $0.39 per share, an 8% raise.

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

S&P 500 +25, Dow Jones+191, NASDAQ +110, and Russell 2000 +12. (as of 8:08 a.m. EDT). Europe higher and Asia higher.  VIX Futures are at 23.84 from 24.99 yesterday morning and the VIX closed at 23.61 from 24.64 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher with Natural Gas higher as well. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10-year Treasury sees yields at 3.268% from 3.235% yesterday morning. Bitcoin is at $20,973 from $19,338 yesterday morning and is higher by 8.90% this morning.

Sector Action(1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Healthcare, Financial, Basic Materials, Consumer Cyclical, Technology of note.
  • Daily Negative Sectors: Communication Services of note.
  • One Month Winners:  Energy of note.
  • Three Month Winners:  none 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.

Action started of negative, but quickly rallied mid morning and actually touching the resistance of the Value Lines which kept the rally in check.  The drop took the SPX down to the pivot line (keep in mind these lines are generated when we get the first tick of the day and they are then set in stone) only to find support to continue the positive note through the afternoon.

Click here for a video explanation of Erlanger Value Lines.

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: ABM +0.04.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: ABM, KR

Guidance:

  • Positive Guidance: CXM, ZS, DHX of note.
  • Negative Guidance: BYRN, ZUMZ, RH of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: DOCU +17%, ZS +14%, YI +13%, DWAC +6%, DHX +6%, DHT +5%, TDY +5%.
  • Gap Down: ZUMZ -16%, AOUT -8%, SWBI -8%, HMTV -7%, RCM -5%.

Insider Action: CNA, MEDP sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 

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: DOCU TSLA RH ZS SPCE NAVI  (CNBC)
  • Five Things To Know Before Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: King Charles III becomes the face of England. (Bloomberg)
  • Bloomberg Most Read Story: Charles Becomes King. (Bloomberg)
  • Europe is having emergency talks on energy. (WSJ)
  • Bank of England delays next interest rate decision due to Queen’s death. (Bloomberg)
  • German gas importer VNG seeks government help after Russian cuts as forced to buy natural gas at much higher prices to meet supply contracts.
  • White House considers Executive Order to prevent investment in Chinese Technology. (WSJ)
  • U.S. to provide another $2.2 billion to Ukraine to improve security in the country. (CNN)
  • U.S. Investors sell $11 billion of stock as they rush out of stocks says Bank of America. (Bloomberg)
  • Two tropical storms to hit the East and West Coast with Tropical Storm Kay to dump a year’s worth of rain on West Coast and Hurricane Earl near Bermuda with winds of 90 mph. (CNN)
  • Telsa (TSLA) considers building a Lithium Refinery in Texas. (CNBC)
  • Judge skeptical of Department of Justice antitrust claims against United Healthcare (UNH) over its acquisition of Change Healthcare (CHNG). (WSJ)
  • Apple (AAPL) warned by lawmakers not to use Yangtze Chips in new iPhone. (FT)
  • Robinhood Snacks: White House issues report on crypto mining and tells them to shape up.  General Motors (GM) through Chevy seeks to build a $30K SUV, Chevy Equinox EV.

Moving Average Update:

  • Getting more green here…..She-Hulk!.  Score goes from 20% to 28%.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs the White House en route Joint Base Andrews and Columbus, Ohio, 9:00 a.m. EDT
    • The President delivers remarks on rebuilding American manufacturing through the CHIPS and Science Act at the groundbreaking of the new Intel semiconductor manufacturing facility, 12:15 p.m. EDT
    • The President departs Columbus, Ohio en route Dover Air Force Base for Wilmington, Delaware, 1:35 p.m. EDT

Economic

  • Wholesale Inventories 10:00 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT
  • The next short interest release will be next Monday, 9/12 after the close

Federal Reserve / Treasury Speakers:

  • Federal Reserve Chicago President Charles Evans 10:00 a.m. EDT
  • Federal Reserve Kansas City President Esther George 12:00 p.m. EDT
  • Federal Research Board of Governors Christopher Waller 12:00 p.m. EDT

M&A Activity:

  • Amazon (AMZN) to buy Cloostermans.
  • CleanSpark (CLSK) Announces Agreement with Mawson Infrastructure Group (MIGI) to Acquire Turnkey Bitcoin Mining Facility.
  • DMS Receives Non-Binding “Go Private” Proposal.
  • Driven Brands (DRVN) acquires Auto Glass Fitters.
  • 111 Inc. (YI) Receives Unsolicited Preliminary Non-Binding Proposal to Acquire the Company.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Electric Vehicle Show
    • Goldman Sachs LatAm Financial Technology Conference
    • Goldman Sachs EU Communacopia Conference (09/09/22-09/12/22)

      •  Previously posted and ongoing conferences:
        • Bank of America Securities Gaming & Lodging Conference 2022 (09/08/22-09/09/22)
        • Cowen Global Transportation & Sustainable Mobility Conference (09/07/22-09/09/22)
        • Credit Suisse LatAm Equities Conference (09/07/22-09/09/22)
        • Credit Suisse Global Steel and Mining Conference (09/07/22-09/09/22)
        • Citigroup GEMS Conference
        • Citigroup Global Technology Conference (09/07/22-09/09/22)
        • Citigroup Growth Conference (09/08/22-09/09/22)
        • Morgan Stanley Industrial CEO Conference (09/07/22-09/09/22)
        • UBS APAC Financials & Fintech Virtual Conference 2022 (09/08/22-09/09/22)
        • Vertical Research Partners Global Industrials Conference (09/07/22-09/09/22)
        • Wells Fargo Leveraged Finance Conference (09/07/22-09/09/22)
        • Wells Fargo Healthcare Conference 2022 (09/06/22-09/09/22)
  • Company Meetings: NKE, NTAP
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ADAP, NOK, RLAY, TPR
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • D23 Expo 2022 (DIS).
    • Immunocore Holdings (IMCR) PRAME Investor and Analyst Event at ESMO 2022.
  • Industry Meetings:
    • International Space Convention ISC 2022 (09/09/22-09/11/22)
    • Annual Meeting of the American Society for Bone and Mineral Research (ASBMR) 2022 (09/09/22-09/12/22)
    • International Broadcasting Conference (IBC) 2022 (09/09/22-09/12/22)
    • 3rd Annual New Jersey Cannabis Convention 2022 (09/09/12-09/10/22)
    • American Academy of Otolaryngology Head and Neck Surgery (AAO-HNSF) Annual Meeting and OTO Experience 2022 (09/10/22-09/14/22)
    • International Congress of The Transplantation Society (TTS) 2022 (09/10/22-09/14/22)
    • Cannabis Business Expo 2022 (09/10/22-09/11/22)
    • SALT New York 2022 (09/11/22-09/14/22)
      • Previously posted and ongoing conferences:
        • European Society for Medical Oncology ESMO Meeting 2022 (09/08/22-09/13/22)
        • 31st European Academy of Dermatology and Venerology (EADV) Congress 2022 (09/07/22-09/10/22)
        • IWA World Water Congress & Exhibition 2022 (09/05/22-09/15/22)

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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