CAPIS Morning Note – 11/28/22: Stocks Lower On Chinese Covid Protests

Overnight Summary: The S&P 500 closed Friday at 4026.12(lower by -0.03%) from Wednesday at 4,027.26 (up 0.59%).  The overnight high of 4024 was hit at 6:20 p.m. EST. The low was hit at 3992.50 at 5:05 a.m. EST, a range of ~33 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was…

Overnight Summary: The S&P 500 closed Friday at 4026.12(lower by -0.03%) from Wednesday at 4,027.26 (up 0.59%).  The overnight high of 4024 was hit at 6:20 p.m. EST. The low was hit at 3992.50 at 5:05 a.m. EST, a range of ~33 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was down -30.

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: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • FWBI: Announces Distribution of Series F Preferred Stock to Holders of Its Common Stock.
    • LILM: Filed Form F-3.. Up to 69,024,938 Class A Shares Up to 34,512,464 Class A Shares Issuable Upon Exercise of Warrants Up to 34,512,464 Warrants.
    • SFET: Filed Form 424B5.. Up to $5,000,000 American Depositary Shares Each representing ten Ordinary Shares.
    • VCNX: Form 8K — Stock Purchase Agreement .. 6,112,031 shares.
    • WULF: Filed Form S-3.. 17,631,172 Shares of Common Stock.
  • Direct Offering:
    • TC: Closing of $15 Million Registered Direct Offering.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • BSFC: Filed Form S-3.. $25,000,000 Mixed Shelf.
  • Debt Filing/Notes:
  • Tender Offer: None of note.
  • 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: BEAT 50%, COUP 36%, MRTX 28%, EAF 27%, ANF 27%, BURL 24%, AEO 24%, QURE 22%, NEWT 15%, IAG 14%, ARRY 14%, BBY 14%, CEIX 14%, MMS 13%, QRTEA 13%.
    • Trading Down: GDS -21%, FIXX -18%, PAGS -18%, DY -17%, NVAX -16%, OMER -16%, CS -16%, JACK -16%, BGNE -15%, CHS -15%, NINE -15%, QD -14%, AVYA -14%, EDU -13%.
  • News Items After the Close:
    • Elon Musk reply to a conversation if Twitter is booted from Apple and Google app stores — “I certainly hope it does not come to that, but, yes, if there is no other choice, I will make an alternative phone”
    • Talks Brenntag in prelim talks to acquire Univar (UNVR).
  • News Items Over the Weekend:
    • The Week in Business: Shoppers Open Their Wallets (NYT)
    • Adobe (ADBE) says Black Friday online sales hit record $9 billion. (Reuters)
    • Shopify (SHOP) reports $3.36 Billion in Black Friday sales, up 17% from 2021. (Bloomberg)
    • Beijing reports 1,781 new local Covid cases for November 27. 233 cases were found in communities. Officials say the decelerating trend has not yet been seen, and that rapid growth has spilled over to more neighborhoods, weighing on the capital’s pandemic control.
    • J.P. Morgan expects bond yields to fall some in 2023 as demand/supply balance improves.
    • Fed Staff Warn Chance of Recession in Next Year Is Now Near 50% (Bloomberg)
    •  Barron’s:
      • Positive View: + on SHEL, GOOG, PFE of note.
      • Cautious View: XOM, RGTI, IONQ, ARQQ, QBTS, QUBT, QTUM,ARCC, ORCC, FSK, BXSL, ARCC, DIS of note.
      • Mixed View: None of note.
  • Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

  • Exchange/Listing/Company Reorg and Personnel News:
    • AgeX Therapeutics (AGE) Receives Extension of Time to Attain Compliance With Stock Exchange Continued Listing Requirements.
    • Alpine 4 Holdings (ALPP) receives additional noncompliance notification from Nasdaq.
    • ATI Physical Therapy (ATIP) receives NYSE non-compliance letter.
    • Barclays PLC and Barclays Bank PLC (BCS) announces that its CEO, C.S. Venkatakrishnan, has informed the Barclays Board and his colleagues that he will be undergoing treatment for Non-Hodgkin Lymphoma.
    • Boxed (BOXD) gets NYSE non-compliance notice regarding market cap.
    • CareTrust REIT (CTRE) announced today the appointment of James Callister as Chief Investment Officer.
    • EnLink Midstream (ENLC) Announces Executive Leadership Changes.
    • Hain Celestial (HAIN) announced a leadership succession plan, naming Wendy P. Davidson as President and Chief Executive Officer.
    • IMV receives Nasdaq notification of deficiency.
    • Philip Morris International (PM) Announces New Regional Structure and Senior Management Changes to Accelerate Growth Toward a Smoke-Free Future.
    • PyroGenesis (PYR) Receives Nasdaq Notification Letter Regarding Minimum Bid Price Deficiency.
    • Singularity Future Technology (SGLY) Receives Positive Nasdaq Listing Determination.
    • US Foods (USFD) Announces Dave Flitman as Chief Executive Officer.
    • Volta (VLTA) receives NYSE notice of non-compliance.
    • Wearable Devices (WLDS) gets Nasdaq listing deficiency letter.
    • XORTX (XRTX) Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency.
  • Buyback Announcements or News:
    • Builders FirstSource (BLDR) Increases Stock Repurchase Plan by $1 Billion.
  • Stock Splits or News:  None of note.
  • Dividends Announcements or News: None of note.

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

S&P 500 -29, Dow Jones -192,  NASDAQ -77, and Russell 2000 -15 . (as of 8:11 a.m. EST).  Asia lower.  Europe is lower as well.  VIX Futures are at 23.12 from 22.57. Gold and Silver higher with Copper lower. WTI Crude Oil and Brent lower with Natural Gas lower as well. $ is flat. US 10-year Treasury sees yields at 3.672% from 3.718%. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $16,213 from $16,538 down by -2.04%.

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

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

The Dow Jones Industrial Average rose in an abbreviated and thinly traded post-holiday trading session Friday, with major indexes scoring gains in a holiday-shortened week. For Friday’s session, the Dow DJIA, +0.45% rose around 153 points, or 0.4%, to close near 34,347, according to preliminary figures, while the S&P 500 SPX, -0.03% saw a decline of around 1 point, or less than 0.1%, to 4,026. The Nasdaq Composite COMP, -0.52% shed around 59 points, or 0.5%, to finish near 11,226. For the week, the Dow rose 1.8%, while the S&P 500 gained 1.5% and the Nasdaq Composite advanced 0.7%. (MarketWatch)

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)

  • Monday After the Close: ARWR, AZEK of note.
  • Tuesday Before the Open: BNS, SJR, BILI, HIBB, CRNC, BZUN of note.

Earnings of Note This Morning:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: None of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: UNVR +11%, MLCO +6%, WYNN +6%.
  • Gap Down: None of note.

Insider Action: IAC sees Insider buying with dumb short selling.  GOCO 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: AAPL TBLA Casinos BIIB Energy Stocks PDD NWSA (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: Xi Has Few Good Options To End Historic China Covid Protests. (Bloomberg)
  • Bloomberg Most Read Story: Next Covid Strain May Be More Dangerous. (Bloomberg)
  • Protests against Covid Controls erupt across China. (CNBC)
  • Federal Reserve Chairman Powell to speak this week to set stage for slowing rates despite hawkish tone. (Bloomberg)
  • Dr. Fauci in last interview notes we are still in a Covid Pandemic. (CNBC)
  • A potential railroad strike remains an issue for markets this week but GOP says will not allow a strike. (The Hill)

Moving Average Update:

  • Score inches up 3% to 88%.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing, 10:30 a.m. EST
    • The President hosts a congratulatory visit with 2022 Nobel Prize Winners from the United States, 1:30 p.m. EST
    • Press Briefing by Press Secretary Karine Jean-Pierre and National Security Council Coordinator for Strategic Communications John Kirby, 2:30 p.m. EST.

Economic: 

  • Dallas Fed Manufacturing Index 10:30 a.m. EST

Federal Reserve / Treasury Speakers:

  • Federal Reserve New York President John Williams 12:00 p.m. EST
  • Federal Reserve St. Louis President James Bullard 12:00 p.m. EST

M&A Activity:

  • INDUS Realty Trust (INDT) Receives Unsolicited, Non-Binding Acquisition Proposal.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • B Riley Cardiometabolic Health Mini Symposium 2022
    • Bank of America Securities Leveraged Finance Conference 2022 (11/28/22-11/30/22)
    • Berenberg 1-1 Symposium at the German Equity Forum 2022 (11/28/22-11/30/22)
    • Citi Chemicals for the Non-Chemist Conference 2022
    • Credit Suisse 26th Annual Technology TMT Conference 2022 (11/28/22-12/01/22)
    • RSB Annual Conference 2022 (11/28/22-12/01/22)
    • UBS Global Emerging Markets (GEMS) One-on-One Conference 2022 (11/28/22-11/30/22)
    • Mizuho US Utility Summit 2022
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: NISN.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • World Vaccine & Immunotherapy Congress West Coast and World Antiviral Congress 2022 (11/28/22-12/01/22)
    • Canadian Mining Symposium 2022
      • Previously posted and ongoing conferences:
        • None of note.

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: