Overnight Summary: The S&P 500 closed Wednesday lower by -0.16% at 5520.07 from Tuesday lower by -2.12% at 5528.93. The overnight high was hit at 5,540 at 3:55 a.m. EDT and the low was hit at 5515 at 7:40 a.m. EDT. The overnight range is 25 points. The current price is 5531.75 at 7:00 a.m. EDT higher by +1.75 points.
Most Important Article Of the Morning: The Chinese Agent Inside Albany. (WSJ)
Late Headline: ADP comes in at 99,000.
Executive Summary:
- Several economic indicators out this season.
- NFL kicks off its season tonight.
Earnings Out After The Close:
- Beats: CASY +0.33, AVAV +0.27, AI +0.08, PHR +0.04, BASE +0.03, HPE +0.03, YEXT +0.02, DSGX +0.01 of note.
- Flat: CRDO CXM
- Misses: VRNT -0.4, CPRT -0.03, CHPT -0.04 of note.
- IPOs For The Week: CUPR, GLXG, JBDI, PMAX, TDTH
- New IPOs/SPACs launched/News:
- IPOs Filed/Priced:
- Secondaries Filed or Priced:
- VVX announces proposed secondary offering of 2 mln common stock
- CSWI commences 1 mln share offering
- ZETA commences 11 mln share offering, comprised of Zeta offering 8.8 mln shares.
- Notes Priced:
- PFGC Pricing of Offering of $1.0 billion of 6.125% Senior Notes due 2032
- Direct Offering:
- Exchangeable Subordinate Voting Shares:
- Selling Shareholders of note:
- ZETA selling stockholder offering 2.2 mln shares.
- SHC announces secondary offering of 25 mln shares by selling stockholders
- Debt/Credit Filing and Notes:
- Mixed Shelf Offerings:
- CSWI files mixed shelf securities offering.
- BNED: FORM S-3 – $40,000,000 Mixed Shelf Offering
- PIPE:
- Convertible Offering & Notes Filed:
- Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
Biggest Movers Up & Down After The Close:
- Movers Up: MODG +2.7%, YEXT +2.6%, PHR +2.4%
- Movers Down: VRNT -16.6%, AI -16.1%, CRDO -12.6%, CHPT -10.1%, AVAV -4.1%, CXM -3.7%, HPE -3.1%.
News After The Close :
-
- NVDA spokesperson says company did not receive a DOJ subpoena. (Reuters)
- JNJ increase offer on Talc Settlement to $9 billion. (WSJ)
- MODG announces intent to pursue the separation of its business into two independent companies: Callaway and TopGolf
- GD awarded $491.6 million design and development contract for space development agency’s ground, management and integration program
- RTX awarded $405 mln U.S. Navy contract modification
- 10-Q or 10-K Delays – None of note.
- NASDAQ Delisting Notice – None of note.
Buybacks or Repurchases: Buybacks should be slow as most companies are in a blackout period as earnings season kicks into gear.
Exchange/Listing/Company Reorg and Personnel News:
- AMCR appoints Peter Konieczny as Chief Executive Officer, who has served as interim CEO since April 2024.
- VOYA appoints Michael Katz as CFO, effective Jan 1, 2025.
- HUYA announces appointment of Mr. Raymond Peng Lei as Acting Co-Chief Executive Officer and Chief Financial Officer, effective September 5, 2024
Dividends Announcements or News:
- Stocks Ex Div Today: QCOM NEM STE TER PFG KIM AEG MOS HRB CBSH JXN
- Stocks Ex Div Tomorrow: BAC PEP BKNG TT AJG GM KMB NTES LHX WDS PUK GPC NTRS AMCR JKHY CHRW TPR ORI KNX MLI AAON AI FLO.
- HES raises its quarterly dividend by 14% to $0.50 per share; annual yield of 1.5%.
- VZ increases quarterly cash dividend to $0.6775/share from $0.665/share.
What’s Happening This Morning: Futures S&P 500 -11 NASDAQ 100 -83 Dow Jones -9 Russell 2000 -1.92. Asia is lower ex Australia and Europe is lower ex Germany this morning. VIX Futures are at 19.12 from 19.35 yesterday while Bonds are at 3.77% from 3.814% on the 10-Year. Crude Oil and Brent are higher with Natural Gas higher as well. Gold, Silver and Copper higher. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $56,696 from $56,645 lower by -2.12% this morning.
- Daily Positive Sectors: Utilities, Consumer Defensive, Real Estate and Industrials of note.
- Daily Negative Sectors: Energy, Technology, Materials and Communication Services of note.
- One Month Winners: Financials, Technology, Real Estate, Utilities, Consumer Defensive, Industrials and Healthcare of note.
- Three Month Winners: Technology, Real Estate, Healthcare, Financials of note.
- Six Month Winners: Utilities, Technology, Communication Services, Financials, Real Estate and Consumer Defensive of note.
- Twelve Month Winners: Technology, Communication Services, Financials, Industrials, Utilities, and Healthcare note.
- Year to Date Winners: Technology, Communication Services, Utilities, Financials, Consumer Defensive and Healthcare of note.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close:
- Friday Before The Open:
Earnings of Note This Morning:
- Beats: GIII+0.25, SAIC +0.20, KFY +0.05, SCVL +0.02, CURV +0.01, of note.
- Flat: NIO
- Misses: WLY -0.08 of note.
- Still to Report: TTC
Company Earnings Guidance:
- Positive Guidance: NIO CRDO YEXT of note.
- Negative or Mixed Guidance: CHPT of note.
Advance/Decline Weekly Update With Both Daily and Weekly Stats: The weakness continued on Wednesday.
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
- Gap Up: MODG +6.2%, PSTX +6.1%, SON +5%, YEXT +3.7%, HIVE +3.6%, FTV +3.5%, NIO +3.5%, PHR +3.3%, DSGX +3%
- Gap Down: AI -18.6%, VRNT -15.3%, CRDO -13.5%, BASE -10.7%, FYBR -9.3%, BBCP -8.5%, CHPT -8.3%, VVX -7.2%, CXM -6.4%, CPRT -5.8%, BNED -5.2%, XPO -5.1%, CSWI -4.7%, ZETA -4.1%, ODFL -3.8%, SHC -3%, UTZ -2.8%, HPE -2.5%
Insider Action: None of note see Insider buying with dumb short selling. None of note 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)
- Bloomberg Lead Story: Nippon Steel Left Hunting Next Steps on U.S. Steel Takeover. (Bloomberg)
- Markets Wrap: US Futures signal steady open with focus on data. (Bloomberg)
- Pre-Market Movers AI JBLU TSLA. (CNBC)
- Harris flip flops on capital gains rate, changing to 28%. (Bloomberg)
- Bloomberg Big Take: NFL owners bet on soccer. (Podcast)
Economic:
- August ADP Employment Report is due out at 8:15 a.m. EDT and expected to come in at 150,000 from 122,000.
- August Non-ISM Manufacturing Index is due out at 10:00 a.m. EDT and is expected to come in at 51% from 51.40% last month.
- Challenger Job Cut Report 1% versus 9.2% last month.
- Weekly Jobless Claims are due out at 8:30 a.m. EDT.
- Weekly Crude Oil Data and Natural Gas are due out at 10:30 p.m. EDT.
Geopolitical:
- President Biden receives the Daily Briefing at 10:00 a.m. EDT.
- President Biden delivers a speech in Westby, Wisconsin on Investing in America at 4:00 p.m.
Federal Reserve Speakers
- None of note today.
M&A Activity and News:
- PCTY signs definitive agreement to acquire Airbase Inc., a spend management software solution provider for ~$325 mln.
- Verizon (VZ) to buy Frontier Communications (FYBR) for $38 a share in cash. (CNBC)
Moving Averages On Major Indexes: Moves from 50% to 47% of the moving averages being positive.
Meeting & Conferences of Note:
-
- Sellside Conferences:
- Bank of America Media Communications and Entertainment Conference
- Bank of America Gaming & Lodging Conference
- Barclays Global Consumer Staples Conference
- Barclays CEO Energy Power Conference
- Citi Global Technology Conference
- Goldman Sachs Global Retailing Conference
- Jefferies Industrials Conference
- KBW Insurance Conference
- Morgan Stanley Global HealthCare Conference
- Needham Crypto Conference
- Raymond James 2024 U.S. Bank and Banking on Tech Conferences
- Stifel London Industrial Conference
- UBS Global Emerging Markets Conference
- UBS Global Materials Conference
- Wells Fargo Healthcare Conference
- Fireside Chat: None of note.
- Top Shareholder Meetings: APTO, CLOE, DRQ, MPAA, RBC, VSAT
- Investor/Analyst Day/Calls: AIFF, DHR, JKHY, NVTS, SHLS, TLN, UMC
- Update: None of note.
- Sellside Conferences:
-
- R&D Day: None of note.
- FDA Presentation: TVTX: PDUFA target action date FILSPARI
- Company Event:
- Industry Meetings or Events:
- MUFG Oil & Gas Conference
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.
Upgrades:
Downgrades: PAC MGA KBH
