CAPIS Morning Note – 12/27/22: Stocks Start On A Positive Note The Last Week Of The Year

Overnight Summary: The S&P 500 closed Friday up 0.59% at 3844.82 from Thursday.  The overnight high of 3900.50 was hit at 3:20 a.m. EST. The low was hit at 3877 at 6:05 p.m. EST, a range of ~23 points high to low.  At 7:20 a.m. EST, the S&P 500 (mini) was +20.50. Earnings Out After…

Overnight Summary: The S&P 500 closed Friday up 0.59% at 3844.82 from Thursday.  The overnight high of 3900.50 was hit at 3:20 a.m. EST. The low was hit at 3877 at 6:05 p.m. EST, a range of ~23 points high to low.  At 7:20 a.m. EST, the S&P 500 (mini) was +20.50.

Earnings Out After The Close: 

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

Unusual Options Activity:

Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity.  It looks for volume outliers relative to the Open interest in Calls or puts.  Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.

    

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Spindletop Health Acquisition Corp. (SHCA) Announces Key Dates in Connection with December 20, 2022 Termination Date and Liquidation.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • AGEN: Filed Form S-3ASR.. 1,950,000 shares of common stock.
    • HTGM: Closing of a $10 Million Public Offering.
    • ICCM: Announces Closing of $14.5 Million Public Offering Priced At-The-Market Under Nasdaq Rules.
    • INDP: Filed Form S-1.. 4,000,000 Shares of Common Stock.
    • KPTI: Filed Form S-3.. 41,329,471 Shares.
    • SGMO: Filed Form 8K.. party to the Open Market Sale Agreement.
    • SNGX: Distribution of Series D Preferred Stock to Holders of its Common Stock.
    • SNOA: Filed Form 8K.. entered into an At-The-Market Offering Agreement.
    • TERN: Closing of Public Offering of Shares of Common Stock, Including Full Exercise of Underwriters’ Option to Purchase Additional Shares.
  • Direct Offering:
    • KALV: Announces $58 million registered direct offering.
  • Selling Shareholders of note:
    • STER: Filed Form S-3.. 61,029,536 Shares of Common Stock Offered by the Selling Stockholders.
  • Private Placement of Public Entity (PIPE):
    • CTGO: Announces Private Placement of Common Stock and Year-End Update.
    • VOR: Form 8K.. At-the-Market Equity Offering Sales Agreement with Stifel for up to $125.0 million.
  • Mixed Shelf Offerings:
    • ADTN: Filed Form S-3ASR.. Mixed Shelf.
    • ARCT: Filed Form S-3.. $500 Million Mixed Shelf.
    • CGTX: Filed Form S-3.. $200,000,000 Mixed Shelf.
    • IFBD: Filed Form F-3.. $300,000,000 Mixed Shelf.
    • INSW: Filed Form S-3ASR.. Mixed Shelf.
    • NINE: Filed Form S-3.. $350,000,000 Mixed Shelf.
    • PTRA: Filed Form S-3.. $500,000,000 Mixed Shelf.
  • Debt Filing/Notes:
    • Main Street (MAIN) Announces Completion of $100.0 Million Investment Grade Notes Offering.
  • Tender Offer:
    • BVH: Announces preliminary results of tender offer.
  • 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:

  • News Items After the Close:
    • Tuesday Morning (TUEM) Announces Voluntary Delisting from the Nasdaq Capital Market.
  • News Items Over the Weekend:
    • The Week in Business:  Who Comes After Elon Musk? (NYT)
    • SPAC Boom Ends in Frenzy of Liquidation. (WSJ)
    • Tesla (TSLA) suspended production at its Shanghai plant on Saturday, according to an internal notice and two people with knowledge of the matter, bringing ahead a previous plan to pause most work at the plant in the last week of December. Reuters
    • US Transportation Department says Southwest Airlines (LUV) cancellation and delay rates are ‘unacceptable’.
    •  Barron’s:
      • Positive View: GOOG, GSK, PFE, BNTX, MRNA, ISRG, CGNX, ROK of note.
      • Cautious View: None of note.
      • Mixed View: None of note.
  • Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

None of note.

  • Exchange/Listing/Company Reorg and Personnel News:
    • Suspension of Trading on Nasdaq for Argo Blockchain plc (ARBK).
    • BankProv (PVBC) announces Executive Transitions.
    • BaiJiaYun Limited (FFHL) Announces Completion of Merger and New Board and Management.
    • Dogness (DOGZ) Regains Compliance with NASDAQ Minimum Bid Price Requirement.
    • Fanhua (FANH): Founder/CEO withdraws his preliminary non-binding going private proposal.
    • WiSA Technologies (WISA) Granted Additional 180-Day Extension by Nasdaq to Regain Compliance with Minimum Bid Requirements.
  • Buyback Announcements or News: None of note.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News:
    • XEL Goes ex div tomorrow for $0.4875.

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

S&P 500 +16, Dow Jones +168,  NASDAQ +15,  and Russell 2000 +12. (as of 7:55 a.m. EST).  Asian markets are higher ex ASX.  Europe markets are trading higher. VIX Futures are at 23.32 from 22.80.  Gold, Silver and Copper higher.  WTI Crude Oil and Brent higher with Natural Gas higher as well. $ barely down. US 10-year Treasury sees yields at 3.73% from 3.651% on Thursday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $16,820 from $16,823 on Thursday lower by -0.11%.

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

  • Daily Positive Sectors: Energy, Communication Services, Utilities, Basic Materials, Real Estate, Financials of note.
  • Daily Negative Sectors: None of note.
  • One Month Winners:  Healthcare, Utilities, Consumer Defensive of note.
  • Three Month Winners: Basic Materials, Industrials, and Energy Healthcare of note.
  • Six Month Winners: Industrials, Energy, and Basic Materials Healthcare of note.
  • Twelve Month Winners: Energy and Utilities  of note.
  • Year to Date Winners: Energy of note.

Wall Street traders left for Christmas in sedate spirits after a day of modest gains failed to arrest the S&P 500’s skid to a third straight week of losses colored by fears of inflation and recession.  Indexes started Friday lower after Commerce Department figures showed that prices for services continued to climb faster than hoped last month. But stocks edged into positive territory after the mid-morning release of the University of Michigan’s consumer survey painted households as optimistic about the economy. In choppy trading, the S&P gained 22.43, or 0.6%, to 3844.82, while the tech-focused Nasdaq Composite rose 21.74, or 0.2%, to 10497.86. The Dow Jones Industrial Average rose 176.44, or 0.5%, to end at 33203.93.  (WSJ)

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

  • Tuesday After the Close: None of note.
  • Wednesday Before the Open: None 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: PAYX of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: KALV +7% of note.
  • Gap Down: NIO -6%, LUV -4% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  MCG 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: TSLA LUV PTON NIO FTCH (CNBC)
  • Five Things to Know This Morning: (CNBC)
  • Bloomberg Lead Story:  Southwest (LUV) is at standstill as 80% of flights are scrapped or late. (Bloomberg)
  • Bloomberg Most Read Story: South Korea sends drones into North Korea in unprecedented move. (Bloomberg)
  • China removes more travel restrictions as Zero Covid Policy goes away. (Bloomberg)
  • Chinese provinces hit hard by  Covid see critical care strains. (CNBC)
  • Russia says that Ukraine must surrender to end war. (Bloomberg)
  • The U.S. blasts Chinese military drills near Taiwan. (Bloomberg)
  • Southwest flight cancellations draw criticism from Biden Administration. (CNBC)
  • Auto Loan interest rates climb but Credit Union interest rates on Auto Loans remain lower. (WSJ)
  • Pension cash cushion hits a 15 year low. (WSJ)

Moving Average Update:

  • Score settles in at 20% from 31%.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing, 9:30 a.m. EST
    • The President and The First Lady depart the White House en route Joint Base Andrews, 4:10 p.m. EST
    • The President and The First Lady arrive at Joint Base Andrews, 4:20 p.m. EST
    • The President and The First Lady depart Joint Base Andrews en route St. Croix, United States Virgin Islands, 4:30 p.m. EST
    • The President and The First Lady arrive in St. Croix, United States Virgin Islands, 7:50 p.m. EST

Economic: 

  • International trade in Goods  8:30 a.m. EST
  • Retail Inventories    8:30 a.m. EST
  • Wholesale Inventories   8:30 a.m. EST
  • Case Shiller Home Price Index  9:00 a.m. EST
  • FHFA House Price Index 9:00 a.m. EST
  • Dallas Fed Manu Survey  10:30 a.m. EST
  • API Crude Oil Data  4:30 p.m. EST

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Equillium (EQ) and Metacrine Mutually Agree to Terminate Definitive Merger Agreement.
  • Catalyst Biosciences (CBIO) Completes First Steps in Reverse Merger Plan.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: HUGS, JKS, VISL.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: GILD.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • BioCentury-BayHelix East-West Summit.
      • 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:

None of note.

Previous Day’s Upgrades and Downgrades: