CAPIS Morning Note – 04/13/22: Day 2 of Inflation Data At 8:30 a.m. EDT as PPI Out Then. Stocks Higher In U.S. and Mixed Globally

Overnight Summary: The S&P 500 closed Tuesday at 4397.45 from 4412.53 on Monday down -0.34%. Futures have been moving higher most of the night. The overnight high was hit at 2:00 a.m. EDT at 4,428.50. The low was hit at 4,387.75 at 4:05 p.m. EDT, a range of 40 points high to low. At 7:20…

Overnight Summary: The S&P 500 closed Tuesday at 4397.45 from 4412.53 on Monday down -0.34%. Futures have been moving higher most of the night. The overnight high was hit at 2:00 a.m. EDT at 4,428.50. The low was hit at 4,387.75 at 4:05 p.m. EDT, a range of 40 points high to low. At 7:20 a.m. EDT the current price is 4420 up 27 which is 0.61%.

Crazy Stat: Covid-19 Cases hit 300 million by early January, 400 million in February and now 500 million. (NYT)

Earnings Out After The Close:

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

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Aura FAT Projects Acquisition Corp. (AFAR) Announces Pricing of $100,000,000 Initial Public Offering.
  • Secondaries Priced:
    • AFMD prices $90 million offering at $4.00 per share.
    • CRNX prices offering of 5,625,563 shares of its common stock at $22.22 per share.
    • LQDA prices $50 million offering at $5.10 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • AFMD:
      • Proposed Public Offering of Common Shares.. Jefferies, Leerink, Truist and WFC Bookmanager.
      • Announces Pricing of Upsized $90 Million Public Offering of Common Shares.
    • CNTX: Filed Form 424B3..10,000,000 Shares Common Stock.
    • KSCP: Filed Form S-1.. 12,197,776 Shares of Class A Common Stock.
    • LQDA: Proposed Offering of Common Stock.. BAC Bookmanager.
    • XOS: Filed Form S-1.. Up to 16,160,214 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • HLMN: Secondary Offering of Common Stock by Selling Stockholders,, 10Million shares.. Jefferies and Baird bookmanager .
  • Private Placement of Public Entity (PIPE):
    • VRME: $5.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules.. Maxim bookmanager.
  • Mixed Shelf Offerings:
    • LVTX: Filed Form F-3.. $250Million Mixed Shelf
  • 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:

  • After Hours: 
    • Trading Up: AFMD +5%, GRTS +5%, ORIC +4%.
    • Trading Down: NSTG -30%, LQDA -12%, HLMN -8%.
  • News Since The Close:
    • Federal Reserve Richmond President Barkin— said no doubt in my mind that the housing market is heated or even over heated.
    • Federal Reserve Richmond Fed President Tom Barkin (not a voting FOMC member) further stated in speech last night that “the best short-term path for us is to move rapidly to the neutral range and then test whether pandemic-era inflation pressures are easing.”
    • Alphabet (GOOG) will invest approximately $9.5 billion in U.S. offices and data centers in 2022.
    • Finnish Prime Minister Marin: Finnish Parliament To Debate NATO Membership Next Week.
    • Swedish media reports that Sweden has decided to join NATO by June this year.
    • Assets Under Management:
      • VCTR $178.1 Billion.
    • Russian/Ukraine News:
      • US To Announce $750 Million More In Weapons For Ukraine, Officials Say – RTRS
  • Exchange/Listing/Company Reorg and Personnel News:
    • Boqii Holding Limited (BQ) Receives NYSE Non-Compliance Letter Regarding Market Capitalization and Stockholders’ Equity.
    • Cable ONE (CABO) appoints Todd Koetie as its next CFO on July 1, 2022.
    • Cardiff Oncology (CRDF) Announces Departure of Chief Medical Officer.
    • CBIZ (CBZ) announces passing of Chairman.
    • CRUS: Venk Nathamuni Named Cirrus Logic Chief Financial Officer.
    • Conagra Brands (CAG) Announces Board of Directors Change.
    • Fortress Transportation and Infrastructure Investors LLC (FTAI) to Transfer Stock Exchange Listing to Nasdaq.
    • ION (IO) Commences Voluntary Chapter 11 Process with Lender Support and DIP Financing.
    • Maxeon Solar (MAXN) appoints Donald Colvin to succeed Kevin Kennedy as its new chairman of the board of directors, effective immediately.
    • MaxCyte (MXCT) Announces Departure of CFO and Appointment of Ron Holtz as Interim CFO.
    • Navidea Biopharmaceuticals (NAVB) Receives Acceptance Letter from NYSE American.
    • Nutanix (NTNX) names Rukmini Sivaraman CFO, effective May 1.
    • PayPal (PYPL) Announces Departure of Chief Financial Officer John Rainey (see below…going to WMT).
    • Pyxis Oncology (PYXS) announced the departure of Ronald Herbst, Ph.D., as Chief Scientific Officer.
    • Phillips 66 (PSX) announces CEO transition plans.  Greg Garland stepping down July 1 and replaced by Mark Lashier, COO.
    • Squarespace (SQSP) CFO Marcela Martin announces her intention to resign, effective July 31.
    • TreeHouse Foods (THS) names JANA partner Scott Ostfeld to Board of Directors.
    • Walmart (WMT) Names John Rainey New Chief Financial Officer. (CNBC)
  • Buyback Announcements:
    • Ferguson PLC (FERG) Announces Share Buy Back Program.
    • HarborOne Bancorp, Inc. (HONE) Announces Share Repurchase Program.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Agree Realty (ADC) increases monthly cash dividend to $0.234 per share from $0.227 per share.
    • P&G (PG) Declares Dividend Increase of 5% to $0.9133 per share. (MarketWatch)

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

S&P 500 +6, Dow Jones +37, NASDAQ +35,  and Russell 2000 +6.  Europe and Asian mixed.  VIX Futures are at 25.90 from 24.95 Monday morning. Gold and Silver higher with Copper lower. WTI Crude Oil and Brent Oil Futures higher with Natural Gas higher. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.727% from 2.79%. Bitcoin is at $39,967 from $40,305  on Tuesday morning higher by 1.22% this morning. As of 8:08 a.m. EDT.

Monday’s Action – 04/12/22 Close:  

  • Daily Positive Sectors: Energy, Basic Materials, Utilities of note.
  • Daily Negative Sectors: Financial, Healthcare, Communication Services of note.
  • One Month Winners: Healthcare, Consumer Defensive, and Utilities of note.
  • Three Month Winners: Energy, Utilities and Basic Materials of note.
  • Six Month Winners: Energy, Basic Materials, Utilities of note.
  • Twelve Month Winners: Energy, Utilities, and Basic Materials of note.
  • Year to Date Winners: Energy, Utilities, and  Basic Materials of note.

Inflation rising at the fastest annual pace in four decades gave pause to the major indexes.  Major indexes were all down around 0.30%.  USO was up 5.09% to close at 75.98.  Updated 04/12/22 close.

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

  • Wednesday After the Close: WAFD of note.
  • Thursday Before the Open: TSM, UNH, WFC, MS, GS, C, USB, PNC, PGR, ERIC, STT, ALLY, RAD, WAL of note.

Earnings of Note This Morning:

  • Beats: BLK +0.65, FRC +0.11, DAL +0.02, FAST +0.02.
  • Flat: None of note.
  • Misses: BBBY (0.95), JPM (0.07), sjr (0.02).
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: DLA, ECOR, HLMN, ASH of note.
  • Negative Guidance: PCRX, NSTG, DAL of note.

Erlanger Research Advance/Decline Chart: Updated through 04/12/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ATRS +48%, SRRA +36%, NTNX +5%, SLGC +5%, AFMD +5%.
  • Gap Down: NSTG -32%, LQDA -14%, HLMN -9%, ALPN -8%, CRNX -5%.

Insider Action: No stock sees Insider buying with dumb short selling.  PRTY sees Insider buying with smart short sellers. 04/12/22 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: JPM BLK DAL (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • 5 things to know before the stock market opens Wednesday (CNBC)
  • Bankers lower mortgage demand outlook for 2022 as rising rates hurt demand. (CNBC)
  • Federal Reserve St. Louis President James Bullard says “a fantasy” to think Fed can control inflation without raising rates to point where they hurt economy. (FT)
  • 84% of Americans expect to cut back on spending due to inflation. (Bloomberg)
  • J.P. Morgan (JPM) reports $524 million charge due to Russia. (CNBC)
  • Cathie Wood  of Ark Mgmt selling Twitter (TWTR) share on Musk news. (CNBC)
  • Tesla CEO Elon Musk sued by more investors for delaying the announcement of his Twitter (TWTR) purchase. (CNBC)
  • Robinhood Snacks looks at companies shrinking size of package to fight inflation, shrinkflation. Nintendo (NTDOY) merges 2 game franchises into Switch Sports.

Moving Average Update:

  • Second day of the Score at 0%.  Updated 04/12/22 close.

 

Geopolitical: 

  • President’s Public Schedule:
    • The President and The Vice President receive the President’s Daily Brief, 10:15 a.m. EDT
    • Press Briefing by Press Secretary Jen Psaki, 3:00 p.m. EDT

Economic: 

  • MBA Mortgage Applications Apr 8: -1.3% (prev -6.3%) – US MBA Mortgage 30 Year Rate Apr 8: 5.13% (prev 4.90%)
  • March PPI is due out at 8:30 p.m. EDT and is expected to climb to 1.2% from 0.8% last month.
  • Atl. Fed Business Inflation Exp. 10:00 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT.
  • U.S. Treasury holds a 30 Year Auction today at 1:00 p.m. EDT.

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • AMC Theatres (AMC) Continues Its Theatre Acquisition Strategy, Acquires Seven Locations and 66 Screens in Connecticut, Upstate New York and Annapolis, Maryland.
  • Antares Pharma (ATRS) to be acquired by Halozyme (HALO) for $5.60 per share.
  • Comstock (LODE) Acquires Industrial Battery Storage Property.
  • CTS Corp (CTS) announces definitive agreement to acquire Meggitt A/S for Danish Krone 525 million in cash.
  • FEMSA’s (FMX) subsidiary Envoy Solutions agrees to acquire Sigma Supply of North America.
  • TIP Signs Deal to Acquire the Trailer Leasing and Maintenance Business of Ryder Ltd (R).
  • Sierra Oncology (SRRA) acquired by GSK for $55 per share.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Imperial Capital 2nd annual Advanced Manufacturing & Supply Chain Conference (AMSCC) 2022 (04/13/22-04/14/22)
    • Generis American Biomanufacturing Summit 2022 (04/13/22-04/14/22)
    • The Emerging Growth Conference 29
      • Previously Announced  Conferences:
        • Bank of America 12th Annual Global Automotive Summit 2022 (04/12/22-04/13/22)
        • Cantor US Cannabis Conference 2022 (04/12/22-04/14/22)
        • Cowen Inaugural Virtual Bitcoin Mining Summit 2022 (04/12/22-04/13/22)
        • Jefferies Space Summit 2022
        • Needham and Company 21st Annual Healthcare Conference 2022 (04/11/22-04/14/22)
        • Wells Fargo Biotech Forum 2022 (04/12/22-04/13/22)
        • Wells Fargo Houston Midstream Management Meetings 2022
  • Company Meetings: MOLN, PBR.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: CNTX, INVE, MVIS, NERV, PVH, SINT, TPTX.
  • Update: None of note.
  • R&D Day: Context R&D Webinar 2022 (CNTX).
  • Company Event: CSI Customer Experience 2022 (CSVI), Molecular Templates Webinar: Unique Approach to Immuno-Oncology for Solid Tumors 2022 (MTEM).
  • Industry Meetings:
    • ElectraMeccanica New York Drive Event 2022 (04/13/22-04/14/22)
      • Previously Posted and Ongoing Conferences:
        • China Cell Biology Annual Conference 2022 (04/11/22-04/15/22)
        • American Organization of Nursing Leadership (AONL) 2022 Conference (04/11/22-04/14/22)
        • American Association for Cancer Research Annual Meeting (AACR) 2022 (04/08/22-04/13/22)
        • Gold Forum Europe – Virtual 2022 (04/12/22-04/14/22)
        • IFCC-EFLM European Congress of Clinical Chemistry and Laboratory Medicines (EuroMedLab) 2022 (04/10/22-04/14/22)
        • Society for Inherited Metabolic Disorders 43rd Annual Meeting 2022 (04/10/22-04/13/22)

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:

      

Tuesday’s Upgrades and Downgrades: