Overnight Summary: The S&P 500 closed Thursday at 4198.05 up 0.94% from Wednesday at 4158.77 higher by 1.19%. The overnight high of 4225.50 was hit at 6:15 p.m. EDT. The low was hit at 4211 at 4:30 p.m. EDT, a range of ~14 points high to low which is a low-vol night. At 7:15 a.m. EDT, the current price was 4218.60 which is 0.16% and 6.75 points. The 10-day average of the overnight range is 19.80 from 21.6o.
Earnings Out After The Close:
- Beats: AMAT +0.17, FTCH +0.13, ROST +0.04, GLOB +0.01 of note
- Flat: FLO of note.
- Misses: DXC (0.02) of note.
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500. 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:
- Arisz Acquisition Corp. (ARIZ) Announces Extension of Deadline to Complete Business Combination.
- Secondaries Priced: None of note.
- Notes Priced of note:
- IQV: Pricing of Upsized Offering of Senior Secured Notes and Senior Notes.
- Common Stock filings/Notes:
- ARTNA Artesian Resources Corporation Announces Common Stock Offering.
- Direct Offering:
- ONCS: Closing of $1.33 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules.
- Selling Shareholders of note:
- ELDN: Filed Form S-3.. 75,757,590 Shares of Common Stock Offered by the Selling Stockholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- UMH: Filed Form S-3ASR .. Mixed Shelf.
- Debt/Credit Filing and Notes:
- RHP: Successfully Completes Refinancing of $700 Million Credit Facility and $500 Million Term Loan B.
- STT: State Street Partners with Diverse Firms to Underwrite $2 Billion of Senior Unsecured Debtwith Diverse Firms to Underwrite $2 Billion of Senior Unsecured Debt.
- Tender Offer:
- TTWO: Commencement of Tender Offer for 3.300% Senior Notes Due 2024.
- 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: FTCH +17% of note.
- Trading Down: DXC -5%, FLO -5%, CVCO -4% of note.
- News After The Close:
- Twitter Accuses Microsoft (MSFT) of Improperly Using Its Data. (NYTimes)
- META Next Round Of Massive Layoffs Starts Next Week. (Vox)
- Lazard (LAZ) CEO Ken Jacobs Prepares to Step Down. (WSJ)
- Farfetch (FTCH) stock rallies 18% after narrower quarterly loss, higher sales. (MarketWatch)
- DXC stock sinks after earnings as sales, guidance disappoint. (MarketWatch)
- Treasury’s Cash Balance Falls To $68.3b, Lowest Since 2021.
- S&P 500 Hits Nine-Month High On Debt-Deal Signals. (Bloomberg)
- General Dynamics (GD) awarded $490 million U.S. Army contract.
- Lockheed Martin (LMT) awarded $444 million U.S. Air Force contract for Long-Range Anti-Ship Missile, spares, Dummy Air Training Missiles and tooling and test equipment.
- Lockheed Martin (LMT) awarded $750 million U.S. Air Force contract for Joint Air-to-Surface Standoff Missile B-2 missiles.
- Exchange/Listing/Company Reorg and Personnel News:
- Ambrx Biopharma (AMAM) appoints Stephen Glover as Chairman of the Board of Directors.
- Analog Devices (ADI) Announces CFO Transition. (MarketWatch)
- Catalent (CTLT) to hold business update call related to delay of Q3 results.
- DXC Technology (DXC) appoints Rob Del Bene as CFO.
- Kelly Services (KELYA) board appointed Terrence B. Larkin to the position of chairman.
- Korea Electric Power Corp (KEP) President & Chief Executive Officer Cheong, Seung-Il resigned from all his positions.
- Modivcare (MODV) Resolves Dispute With Former Chief Executive Officer.
- Newmont Goldcorp (NEM) appoints Karyn Ovelmen as CFO.
- Noodles & Company (NDLS) Announces CFO Departure. (MarketWatch)
- QCR Holdings (QCRH) promotes Reba Winter to COO.
- Radian (RDN) Appoints Sumita Pandit as Chief Financial Officer.
- SAIC: Announces CEO Transition. (MarketWatch)
- Texas Roadhouse, Inc. (TXRH) Appoints Southwest Airlines Veteran Chris Monroe Chief Financial Officer.
- Vicarious Surgical (RBOT) promotes John Mazzola to COO.
- Zillow (ZG) promotes Jeremy Hofmann to CFO.
- Buyback Announcements or News:
- Kadant (KAI) Authorizes Share Repurchase.
- Lesaka (LSAK) Announces the Repurchase of Common Shares.
- LyondellBasell (LYB) increases quarterly dividend $0.06 to $1.25 per share.
- Stock Splits or News:
- Bird (BRDS) Announces Reverse Stock Split.
- Dividends Announcements or News:
- BayCom Corp (BCML) Announces Cash Dividend.
- JNJ Goes ex div on Monday for $1.19.
- PRU Goes ex div on Monday for $1.25.
- VLO Goes ex div on Monday for $1.02.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +9, Dow Jones +81, NASDAQ +4, and Russell 2000 +5. (as of 7:52 a.m. EDT). Asia and Europe is higher. VIX Futures are at 19 from 19.65 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Crude Oil higher with Natural Gas lower. US 10-year Treasury sees yields at 3.65% from 3.596% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $26,852 from $27,368 yesterday, higher by 0.42%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Communication Services, Consumer Cyclical, Industrials of note.
- Daily Negative Sectors: Utilities of note.
- One Month Winners: Communication Services, Consumer Defensive, Technology of note.
- Three Month Winners: Communication Services, Technology, Consumer Defensive of note.
- Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
- Twelve Month Winners: Technology, Industrials, Healthcare of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.
Stocks advanced Thursday, turning green after House Speaker Kevin McCarthy told reporters that the House of Representatives could vote on a debt-ceiling deal as soon as next week. The S&P 500 rose 0.9% to close at its highest level since Aug. 25th. The Nasdaq Composite added 1.5%, while the Dow Jones Industrial Average edged higher 0.3%. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – 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: DE +1.18 of note.
- Flat: None of note.
- Misses: FL (0.08) of note.
- Still to Report: RBC of note.
Guidance:
- Positive Guidance: GLOB of note.
- Negative Guidance: ROST, FLO, DXC, FL, CTLT of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: FTCH +21%, DE +5%, RCKT +5% of note.
- Gap Down: RBOT -5%, FLO -5%, DXC -4%, NDLS -4% of note.
Insider Action: OXY 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.
- 5 things to know before the stock market opens. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Biden Pushes Momentum in Debt Talks As He Begins Summit in Japan. (Bloomberg)
- Bloomberg Most Shared Story: Disney Drops Plans To Move Workers To Florida, Closes Hotel. (Bloomberg)
- DAX Nears Record As Wall Street Rally Bubbles Over: Market Wrap. (Bloomberg)
- Ukraine President Zelensky set to attend G-7 Summit. (CNBC)
- Sell U.S. Stocks says Bank of America Strategist. (Bloomberg)
- Fed Officials consider skipping a hike in June – But Don’t Call It A Pause. (Bloomberg)
- Even a Mild Recession comes with steep price in lost jobs. (Bloomberg)
- Foot Locker (FL) down -22% as misses on earnings and lowers outlook. (MarketWatch)
- Deere (DE) puts up a strong quarter and raised its outlook. (MarketWatch)
Moving Average Update:
- Score inches up to 94% from 88%.
Geopolitical:
- President’s Public Schedule:
- The President participates in a working lunch with G7 leaders, 12:30 a.m. EDT
- The President participates in a G7 Summit working session on Ukraine, 2:30 a.m. EDT
- The President departs Hiroshima, Japan en route to Miyajima Island, Japan, 4:55 a.m. EDT
- The President departs Miyajima Island Landing Zone en route to Itsukushima Shrine, 5:20 a.m. EDT
- The President tours Itsukushima Shrine with G7 leaders, 5:35 a.m. EDT
- The President participates in a group photo with G7 leaders at the Itsukushima Shrine, 5:45 a.m. EDT
- The President participates in a working dinner with G7 leaders, 6:00 a.m. EDT
- The President departs Miyajima Island, Japan en route to Hiroshima, Japan, 8:40 a.m. EDT
- The President arrives in Hiroshima, Japan, 9:00 a.m. EDT
Economic:
- Quarterly Services 10:00 a.m. EDT
- Baker Hughes Rig Count 1:00 p.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve New York President John Williams 8:45 a.m. EDT
- Federal Reserve Board of Governors Michelle Bowman 9:00 a.m. EDT
- Federal Reserve Chair Jerome Powell 11:00 a.m. EDT
M&A Activity:
- nVent (NVT) to Acquire ECM Industries.
Meeting & Conferences of Note:
- Sellside Conferences:
- J.P. Morgan 3rd Annual Global Hydrogen Symposium
- Oppenheimer 24th Annual Israeli Conference 2023 (05/21/23-05/23/23)
- Previously posted and ongoing conferences:
- Bank of America Global Metals, Mining and Steel Conference. (05/15/23-05/19/23)
- Citi APAC Healthcare Conference 2023 (05/17/23-05/19/23)
- BAC Transportation Airlines and Industrials Conference (05/18/23-05/19/23)
- Daiwa Securities China Consumer Tour
- Top Shareholder Meetings: AMGN, EXPI, HON, ICE, M, MS
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ICPT, PEV, SPI, TSVT
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
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:
