CAPIS Morning Note – 01/19/22: Stocks Rebound After Heavy Selling On Tuesday

Overnight Summary: Stocks have stabilized this morning on better earnings from several U.S. companies. Asia was weak while Europe has moved between positive and negative and is now positive. S&P 500 fell overnight to a low of 4535 around 2:30 a.m. EST and now are back at 4584 up +12 points at 7:20 a.m. EST….

Overnight Summary: Stocks have stabilized this morning on better earnings from several U.S. companies. Asia was weak while Europe has moved between positive and negative and is now positive. S&P 500 fell overnight to a low of 4535 around 2:30 a.m. EST and now are back at 4584 up +12 points at 7:20 a.m. EST.

Earnings Out After The Close:

  • Beats: JBHT +0.26, HWC +0.19, PRGS +0.18, IBKR +0.02
  • Flat: FULT
  • Misses: None
  • PNFP, UCBI

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched: None of note.
  • Secondaries Priced:
    • PWP: Prices common stock offering at $10.75 on 3.5 million shares.
    • SBNY: Prices common stock offering at $352 on 2.1 million shares.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • SBNY: Public Offering of 2.1 Million shares.
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
  • Convertible Offering & Notes Filed: None of note.
  • Note Offerings 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: SOFI +18% LPTX +9% TGNA +5% RVNC +4% IBRX +4% VMEO +4%
    • Trading Down: OESX -16% CRDF -16% OCX -9%  AXU -7% ADS -6% 
  • News Items After The Close:
    • Vimeo (VMEO) sees December Revenue up 23% year over year.
    • TEGNA (TNGA) may receive a bid from Standard General and Apollo Global Management.
    • Teva Pharma (TEVA) to pay $420 million to settle litigation on generic drug pricing.
    • Exact Sciences (EXAS) sees improved accuracy of second generation Cologuard Test and testing for Colorectal Cancer Screening.
    • SoFi Technologies (SOFI) gets approval to become a national bank.
    •  Positive Guidance: CNXC PG
    • Negative Guidance: PRGS
  • Exchange/Listing/Company Reorg and Personnel News: 
    • PS Business Parks (PSB) names Stephen W. Wilson as Interim CEO as of Monday.
  • Buyback Announcements:
    • PB to repurchase up to 4.6 million shares over the next year.
  • Stock Splits: None of note.
  • Dividends Announcements: 
    • ONE Gas (OGS) dividend grows from $0.58 to $0.62 a share.
    • Fastenal (FAST) increases dividend to $0.31 per share from $0.28.
    • EnLink Midstream (ENLC) increases quarterly distribution to $0.1125 per unit.

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

S&P 500 +20 , Dow Jones +102 , NASDAQ +100 and Russell 2000 +2.97. Asia mixed and Europe higher. VIX Futures are at 23.05 from 22.55 yesterday morning. Gold, Silver  and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $127.27 from $128.52  yesterday with yields at 1.879% from 1.82% yesterday morning. Bitcoin at $42,140 from $41,688 yesterday morning and +1.21%. As of 8:00 a.m. EST.

Tuesday’s Action – 01/18 Close:  

  • Daily Positive Sectors: Energy of note.
  • Daily Negative Sectors: All others.
  • One Month Winners: Energy, Financials and Basic Materials of note.
  • Three Month Winners: Basic Materials, Consumer Defensive and Energy of note.
  • Six Month Winners: Energy, Financials and Technology of note.
  • Twelve Month Winners: Energy, Real Estate, and Financials of note.
  • Year to Date Winners: Energy, Financials and Basic Materials of note.

Indexes got hit hard on higher than average volume.  Technology and small cap stocks led the charge downward.  TLL closed down 1.41%..  Updated 01/18/22 close.

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

  • Wednesday After the Close: KMI, DFS, UAL, AA, WTFC, UMPQ, FNB, FUL, COLB.
  • Thursday Before the Open: UNP, TRV, FITB, BKR, NTRS, KEY, RF, MTB, AAL, CTXS, FHN, SNV, WBS, HOMB, WNS, SAFM, PPBI, BKU, SASR.

Earnings of Note This Morning:

  • Beats:  ASML +0.63 UNH +0.17 CFG +0.13 STT +0.11  BAC +0.06  MS +0.05 FAST +0.03 PG +.01 
  • Flat: 
  • Misses: USB -0.03 CBSH -0.01
  • Still to Report:  BOKF CMA PLD 

Erlanger Research Advance/Decline Chart: Updated through 01/18/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ZGNX +60% SOFI +18% IBRX +11% LPTX +9% TGNA +7% PSO +6% BTCM +5% CNXC +5% OCX +4% VMEO +3% ASML +3% EXAS +3%
  • Gap Down: UCBI -17% OESX -13% CRDF -13% AXU -6% ADS -6% FULT -3%

Insider Action: THO sees Insider buying with dumb short selling and MACK has smart short sellers with insider buys. 01/18/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.

  • Stocks Making The Biggest Moves: BAC PG UNH. (CNBC)
  • Covid-19 cases 855,149 from 874,087. Hospitalizations at 137,384 from 135,361 a week ago.
  • The U.S. and Russia will meet on Friday to find a diplomatic solution to Ukraine. (NY Times)
  • White House looking for support on a technology antitrust bill. (Bloomberg)
  • White House makes 400 million N95 masks available for free at local pharmacies and community centers. (The Hill)
  • U.S. and U.K. begin talks on metals tariff. (Reuters)
  • Chinese government wants approval from internet companies for investments by them. (Reuters)
  • U.K. aims to end free testing in June for Covid-19. (Reuters)
  • Airlines have cancelled some flight ahead of 5G launch. (WSJ)
  • Google’s (GOOGL) YouTube ends original programming. (WSJ)
  • Robinhood Snacks looks at Microsoft (MSFT) purchase of Activision Blizzard (ATVI). Netflix (NFLX) raises prices in U. S. and Canada but lowers India prices to hit 100 million.

Moving Average Update:

  • Score moves to 12% from 20%. Updated 01/18/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • President Biden receives the Daily Briefing.
    • President Biden to hold a Press Conference at 4:00 p.m. EST to discuss first year in office.

Economic: 

  • Weekly MBA Mortgage Applications rose +2.3%  after a rise a week ago of 1.4%.

  • December Housing Starts are due out at 8:30 a.m. EST and is expected to fall to 1,650,000 from 1,679,000.

  • The latest Federal Reserve Beige Book is due to be released at 2:00 p.m. EST.
  • Weekly Crude Oil Inventories are due out at 10:30 a.m. EST.
  • Weekly API Petroleum Data is due out at 4:30 p.m. EST.

Federal Reserve Speakers:

  • None  of note.

M&A Activity: 

  • B. Riley Financial (RILY) to buy FocalPoint Securities for up to $175 million.
  • UCB to buy Zogenix (ZGNX) for $26 per share in cash.

Meeting & Conferences of Note:

  • Sellside Conferences: BTIG Metaverse Unbound, CIBC Western Institutional Conference, Sidoti Small Cap Winter Conference  and Wolfe Real Estate Outlook Conference.
  • Previously Posted and Ongoing Conferences:
      • UBS Greater China Conference (01/10/22 – 01/19/22)
      • Santander’s Latin America Conference
  • Company Meetings: PDSB
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: DRIO KMPH PLUG
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
      • Previously Posted and Ongoing Conferences:
        • Winter Clinical Dermatology Conference 2022 (01/14/22-01/19/22)
        • Veterinary Meeting & Expo Conference 2022 (01/15/22-01/19/22)

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:

                             

Tuesday’s Upgrades and Downgrades: