CAPIS Morning Note – 03/27/24: S&P 500 Futures Higher Again, Will It Hold Into the Close?

• IPOs Priced or News: None of note.
• New SPACs launched/News:
• Secondaries Priced:
• Notes Priced of note:
  • AMCX pricing of $875 million senior notes due 2029.
  • MTDR pricing of $900 million of senior notes due 2032.
  • PHIN pricing of private offering of $525 million of senior secured notes due 2029.
• Common Stock filings/Notes:
  • BWMN starts $50 common stock offering.
  • STOK to offer $75 million of common stock offering.
• Direct Offering:
• Selling Shareholders of note:
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • NBTB files mixed-shelf offering.
  • MITT files $1 billion mixed-shelf offering.
  • ANNX files $400 million mixed-shelf offering.
• Debt/Credit Filing and Notes: None of note.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • ZUO files $400 million convertible senior notes due in 2029.
  • STAG files $450 million of senior unsecured notes and refinances existing term loan.

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 Movers: 
  •  NCNO +11.9%, ROIV +5%, MRK +4.8% and NOAH +3.8% are higher while GME -14.4%, CNXC -3% are lower.
• News Items After the Close:
  • Stocks making the biggest moves after hours: GME, DRCT, CNXC, NCNO  (CNBC)
  • Higher on earnings NCNO +11.9%, NOAH +3.8%.
  • Lower on earnings GME -14.4%, CNXC -3%
  • MRK gets approval for Winrevair which treats a rare form of high blood pressure from FDA and pops +4.8%.
  • Index changes Roivant Sciences (ROIV) to join S&P 400. Sunrun (RUN) moves to S&P 600 from S&P 400.
  • GoPro (GPRO) to cut work force by 4%.
  • FTC may bring a lawsuit against Tik Tok in coming weeks. (Politico)
  • GD wins a $311 million U.S. Navy contract.

• Exchange/Listing/Company Reorg and Personnel News:
  • Rocket Pharma (RCKT) names Aaron Ondrey as CFO and Kinnari Patel as President, Head of R&D and COO.
  • MNKD CFO Steven Binder to retire and Christopher Prentiss named his replacement.
  • AZZ CFO Philip Schlom to retire 11/4 and Jason Crawford to replace.
• Buyback Announcements or News: 
• Stock Splits or News:
• Dividends Announcements or News: None of note.

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

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

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

Stocks fell on Tuesday, continuing to fall from recent all-time highs.  The S&P 500 lost 0.3%, while the tech-heavy Nasdaq slid 0.4%. The blue-chip Dow industrials dropped 0.1%, or about 31 points.  Micron Technology (MU) 1.43% increased; green up pointing triangle added 1.4%, after hitting an all-time high a day earlier. The memory-chip maker is on pace for its best month since December 2009, when it rose 40%. Other top performers included data-storage company Seagate Technology, rising 7.4%, and Tesla, which climbed 2.9%.  (WSJ – edited by QPI)

Upcoming Earnings Of Note:

• Gap Up: STKS +12.7%, NCNO +12.7%, MNOV +11%, OUST +6.8%, ROIV +5.6%, NOAH +5.2%, MRK +4.8%, STOK +3.7%, RUN +2.8%, MITT +2.7%  of note.
• Gap Down: GME -18.1%, FRGE -12.5%, BWMN -10%, OGI -6.7%, WDH -3.9%, NIO -3.8%, CNXC -2.9% of note.

Insider Action: No stock see Insider buying with dumb short selling.  No stock see 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 Today. (CNBC)
• What You Need To Know To Start Your Day. (Bloomberg)
• Morning Briefing For Bloomberg Subscribers. (Bloomberg)
• Stocks Making The Biggest Moves.  (CNBC)
• Bloomberg Lead Story: Ship That Crashed Into Baltimore Bridge Had a Troubled Past. (Bloomberg)
• S&P futures gains as traders watch Yen levels: Markets Wrap. (Bloomberg)
• Japan steps closer to intervention as Yen hits lowest level since 1990. (Bloomberg)
• Treasury and mortgage rates rising despite expectations of Fed rate cuts. (WSJ)
• Oil prices fall on large U.S. crude oil stockpile increase. (CNBC)
• AAPL will defend its “walled garden” to regulators. (Bloomberg)
• Moderna (MRNA) moves three vaccines into final trials, will hold an investor meeting today. (CNBC)
• Mortgage demand stalls this week. (CNBC)
• Bloomberg: The Big Take: Why Trump remains cash poor? (Podcast)
• NYT The Daily:  Democrats plan to save the GOP House Speaker. (Podcast)
• Marketplace: People behind Big Tech regulation lawsuits. (Podcast)
• Wealthion: Financial Crisis fatigue. (Podcast)

Moving Average Update: Score 100% Day 3.

Geopolitical: 

M&A Activity and News:

• The One Group (STKS) to buy Safflower Holdings Corp for $365 million. Safflower owns Benihana.

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 is 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:

• • Upgrades: OTLK by BTIG Research.
  • Downgrades: FDX by BNP Exane.
  • Initiated: SPOT by HSBC.