Meeting & Conferences of Note:
CAPIS Morning Note – 02/03/22: Stocks Lower Thanks To Facebook/Meta Miss. Jobs Friday Tomorrow.
Please note: Chinese markets are closed for the week because of the Lunar New Year holiday. However, Chinese ETFs and ADRS in the U.S. markets still will trade. Breaking News: ECB leaves rates unchanged and ends net asset purchases at the end of March. U.S. forces killed the leader of ISIS, Abu Ibrahim al-Hashimi al-Qurayshi,…
Please note: Chinese markets are closed for the week because of the Lunar New Year holiday. However, Chinese ETFs and ADRS in the U.S. markets still will trade.
- ECB leaves rates unchanged and ends net asset purchases at the end of March.
- U.S. forces killed the leader of ISIS, Abu Ibrahim al-Hashimi al-Qurayshi, in a raid in northwest Syria, President Biden said.
Overnight Summary: The Facebook (FB) Selloff extends to Asia and Europe as it hits related players. The S&P 500 has been in sell mode after the close at 4580 and is now at 4525.75 down -51.50 points or -1.13%.
Earnings Out After The Close:
- Beats: RRR +1.15, MUSA +0.98, HOLX +0.96, THG +0.83, CCS +0.82, MCK +0.73, MET +0.55, SKY +0.45, CCMP +0.29, KLIC +0.29, TBI +0.26, QCOM +0.23, SITM +0.23, QRVO +0.22, TMUS +0.20, MTG +0.17, TTEK +0.16, SPOT +0.15, MAA +0.15, NTGR +0.14, ADTN +0.12, ALGN +0.10, ELF +0.09, DGII +0.07, CTSH +0.06, HI +0.05, FORM +0.03, FBHS +0.03, ESS +0.03, OMF +0.03, AFL +0.02, AVB +0.02, MXL +0.02, ALGT +0.01, CHNG +0.01, DXC +0.01.
- Flat: EGHT +0.00, BDN +0.00, CLB +0.00.
- Misses: YELL (0.75), LNC (0.34), UGI (0.31), FB (0.16), GL (0.06), RRX (0.05), OHI (0.04), ALL (0.02), RYN (0.01), CTVA (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes: None of note.
- Pricing of Over-Allotment: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- DAVE: Public offering for 331,404.740 shares by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings: None of note.
- Convertible Offering & Notes Filed:
- AMC: Upsize and Pricing of Senior Secured Notes Offering of $950 million senior notes due 2029.
- BAM: Pricing of US$400 Million Green Notes Due 2052 and US$400 Million Re Opening of 3.900% Notes Due 2028.
- MD: Prices Private Offering of $400 Million Senior Notes Due 2030.
- TOWN: Pricing of Subordinated Notes Offering.
- 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: FLEX +11%, SYRS +10%, CCS +9%, RRR +8%, SKY +8%, TMUS +8%, MCK +5%.
- Trading Down: FB -23%, SPOT -10%, RRX -7%, CTVA -7%, LSPD -7%, NTGR -7%, QRVO -6%, LNC -4%, AFL -4% OMF -4%.
- News After The Close:
- Stocks making the biggest moves after the bell: FB, SPOT, QRVO, QCOM, ALGN (CNBC)
- Meta (FB) shares slide more than 20% on earnings miss, weak guidance. (Market Watch)
- NASDAQ reports January 2022 metrics: U.S. equity options volume was 270 million contracts vs 258 million prior month and 293 million a year ago.
- U.S. Silica (SLCA) to raise prices on certain industrial and specialty products.
- January’s payrolls report on Friday could be rough, with as many as 400,000 jobs lost by one estimate (CNBC)
- Costco (COST) January sales gets boost from early Lunar New Year holiday (Market Watch)
- Airlines, travel groups ask Biden Administration to drop Covid testing before international flights (JETS) (CNBC)
- Exchange/Listing/Company Reorg and Personnel News:
- American Water Works (AWK) announces that its president and CEO Walter Lynch retired from the company, effective February 2, 2022.
- Arcadia Biosciences (RKDA) Names Stan Jacot as CEO.
- Halozyme (HALO) Appoints New Chief Financial Officer.
- Heat Biologics (HTBX) Announces Planned Transfer to the NYSE American.
- Lightspeed (LSPD) appoints JP Chauvet as CEO. Chauvet had the role of President previously and is part of a long-term succession plan.
- Triterras Fintech (TRIT) updates on Nasdaq listing. Trading in the company’s securities on the Nasdaq to be suspended effective February 3.
- XL Fleet (XL) announced that Cielo Hernandez has resigned as CFO of the company as of January 31. Chris Goldner, XL Fleet’s Corporate Controller, has been appointed to serve as Interim CFO, effective February 1.
- Buyback Announcements:
- Dorian LPG Ltd. (LPG) Announces $100 Million Stock Repurchase Authority.
- OneMain Holdings (OMF) announces new $1.0 billion share repurchase program.
- Shell plc (RDS.A) commences share buyback of $8.5 billion.
- TBNK 5 million repurchase program.
- Trane Technologies (TT) Announces New $3 Billion Share Repurchase Program.
- Advanced Drainage Systems (WMS) Announces $1 Billion Stock Repurchase Program.
- Stock Splits: None of note.
- Dividends Announcements:
- Allete (ALE) increases quarterly dividend by $0.02 to $0.65 per share.
- Black Stone Minerals (BSM) increases quarterly cash distribution $0.02 to $0.270 per unit.
- Carlyle Group reports (CG) Announces dividend increase.
- Eversource Energy (ES) increases quarterly dividend $0.035 to $0.6375 per share.
- Hawkins, Inc. (HWKN) Increases Quarterly Cash Dividend by 8% to $0.14 Per Share.
- OneMain Holdings (OMF) raises dividend by 36%.
- Trane Technologies (TT) Declares Quarterly Dividend.
- Advanced Drainage Systems (WMS) Announces Quarterly Cash Dividend.
- Enviva (EVA) raises quarterly dividend to $0.86 by $0.02.
- CME Group (CME) declares $1.00 per share dividend up 11% from $0.90 per share.
- IntercontinentalExchange (ICE) increases dividend to $0.38 from $0.33 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -46, Dow Jones -53, NASDAQ -318 and Russell 2000 -9.12. Asia lower ex Hong Kong and Europe lower. VIX Futures are at 23.35 from 21.49 yesterday morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury with yields at 1.798% from 1.80%. As of 8:15 a.m. EST
Monday’s Action – 02/02/22 Close:
- Daily Positive Sectors: Communication Services, Real Estate, Utilities, Consumer Defensive, Healthcare of note.
- Daily Negative Sectors: Consumer Cyclical of note.
- One Month Winners: Energy and Financial of note.
- Three Month Winners: Energy, Consumer Defensive and Utilities of note.
- Six Month Winners: Energy, Financial, and Utilities of note.
- Twelve Month Winners: Energy, Real Estate, and Financials of note.
- Year to Date Winners: Energy of note.
Let’s all take a moment to tip our hat to he Alphabet……GOOG that is! Thanks to its earnings we continued on this bounce. SPX, DJIA, and COMPQ all ended nicely in the green! Updated 02/02/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: AMZN, F, ATVI, SNAP, FTNT, PRU, MCHP, U, HIG, SWKS, AVTR, CLX, PINS, BILL, NLOK, LPLA, OTEX, PCTY, WYNN, DLB, DECK, SYNA, POST, SKX, BYD, NOV, COLM, CUZ, NFG, MIME, CDK, EXPO, POWI, SIGI, PYCR, PFSI, VIAV, LESL, BECN, WWE, WERN, MTX, MWA, SKYW, LGND, ENVA, SXI, BHE, AINV, LCI of note.
- Friday Before the Open: BMY, SNY, REGN, ETN, APD, AON, CBOE, GOOS, SPB, TWST, ROAD, IMGN of note.
Earnings of Note This Morning:
- Beats: ABB +0.99, ARW +0.93, CG +0.83, BDX +0.79, RL +0.75, SU +0.58, PH +0.53, LAZ +0.49, SNA +0.41, EL +0.37, MRK +0.28, GWW +0.21, VSTO +0.18, MTOR +0.18, ABMD +0.16, DGX +0.14, WD +0.13, PBH +0.11, CHKP +0.10, COP +0.08, AME +0.07, HSY +0.07, CI +0.06, MMS +0.05, DLX +0.04, CAH +0.04, ITW +0.04, WEC +0.04, BCE +0.03, HAIN +0.03, XYL +0.02, ICE +0.02, LITE +0.02, BIIB +0.02, AZEK +0.02, CMS +0.02, WRK +0.01, FTV +0.01, JHG +0.01, MPW +0.01, NOK +0.01, NJR +0.01, HON +0.01.
- Flat: LSPD +0.00, TW +0.00, HBI +0.00, APTV +0.00.
- Misses: LANC (0.49), CMI (0.41), MSGS (0.27), PENN (0.26), INGR (0.20), WMS (0.15), TKR (0.13), CSII (0.10), BERY (0.09), BV (0.03), LLY (0.02), HUBB (0.01).
- Still to Report: SNDR, RDS.A, VSAT.
- Positive Guidance: TMO, QRVO, TTEK, QCOM, ELF, EGHT, MCK, HOLX, MXL, FBHS, DGII, HI, LSPD, CCMP, DLX, PBH, BDX, PNM, MMS, WMS, HSY, ABMD, PHAZEK, ARW, GWW, ITW, RL.
- Negative Guidance: NTGR, ARWR, FB, ESS, CLB, CSII, CMI, CI, MRK, HON, EL, XYL, BIIB, LITE, FTV.
Erlanger Research Advance/Decline Chart: Updated through 02/02/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: NRXP +10%, SYRS +8%, FLEX +7%, CCS +7%, TMUS +7%, CHNG +6%, VSTO +6%, XL +6%.
- Gap Down: FB -21%, LSPD -18%, NTGR -9%, SPOT -9%, QRVO -6%, ING -6%, SU -5%, NOK -4%, SLCA -4%, LNC -4%, CSII -4%.
Insider Action: SAFE, CHTR sees Insider buying with dumb short selling. No stocks sees Insider buying with smart short sellers. 02/02/22 close.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.
- Stocks Making The Biggest Moves: LLY, HON, BIIB, MRK, CAH, FB. (CNBC)
- 5 Things To Know To Start Your Day. (Bloomberg)
- Covid-19 Cases 287,114 cases from 483,261 cases a week ago while hospitalizations fell as well to 127,329 from 142,194. (CDC)
- Satellite images show Russian buildup at the Ukraine continues. (NYT)
- New Zealand to remove some quarantine rules and border controls. (NYT)
- Bank of England (BOE) raises rates by 0.25% for a second meeting in a row, rates now at 0.50%.
- Senate Majority Leader McConnell calls on states to remove mask mandates and end emergency action on Covid-19 as cases fall. (CBS News)
- Government funding deadline is 2/18 but both Dems and Republicans are close to a deal. (The Washington Post)
- Senate Banking Committee releases testimony of Federal Reserve Vice Chairman For Supervision nominee Sarah Bloom Raskin and several other lower level nominees.
- Riot Blockchain (RIOT) shuts down operations in Texas due to cold weather. Expect others to follow into the weekend.
- MarketAxess (MKTX) announces monthly trading volume for last month and saw $715.7 billion with $239.3 billion in credit volume and $476.3 billion in rates.
- Robinhood Snacks looks at Facebook/Meta (FB) drop in price after the close. SeaWorld (SEAS) bids for Cedar Fair (FUN).
Moving Average Update:
- In four trading days the score has gone from 0% to 70%. That’s a bounce! Updated 02/02/22 close.
vs. January 27, 2022
- President’s Public Schedule:
- The President and The Vice President attend the National Prayer Breakfast, 8:00 a.m. EST
- The President departs Joint Base Andrews en route Queens, New York, 9:50 a.m. EST
- The President arrives in Manhattan, New York, 11:10 a.m. EST
- The President and the Attorney General join Mayor Eric Adams and Governor Kathy Hochul for a Gun Violence Strategies Partnership meeting, 12:15 p.m. EST
- The President, the Attorney General, Mayor Eric Adams, and Governor Kathy Hochul visit a New York public school to discuss community violence intervention programs with local leaders, 2:30 p.m. EST
- The President departs Manhattan, New York, 4:20 p.m. EST
- The President arrives at the White House, 6:05 p.m. EST.
- Challenger Job Cut 7:30 a.m. EST
- Initial Jobless Claims 8:30 a.m. EST
- Productivity and Costs 8:30 a.m. EST
- PMI Composite 9:45 a.m. EST
- December Factory Orders are due out at 10:00 a.m. EST and is expected to fall to -0.2% from 1.6%.
- January ISM Non-Manufacturing Index is due out at 10:00 a.m. EST and are expected to fall to 60% from 62%.
- Natural Gas Report 10:30 a.m. EST
Federal Reserve Speakers:
- None of note.
- Babcock & Wilcox Enterprises (BW) has acquired Fossil Power Systems.
- Sealed Air (SEE) acquires Foxpak.
- Sellside Conferences:
- Cowen 2nd Annual Genetic Medicines Summit 2022
- Emerald Groundhog Day Investment Forum
- Previously Announced Conferences:
- Citi’s Psychedelic Drug Call Series 2022 (02/02/22-02/08/22)
- Janney West Coast CEO Forum 2022 (CBAN, SYBT, CSTR) (02/02/22-02/03/22)
- Credit Suisse Latin America Investment Conference 2022 (02/01/22-02/03/22)
- Previously Announced Conferences:
- Company Meetings: APD.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AGLE, ING, PNM, TXN, ZI
- Update: None of note.
- R&D Day: IFRX.
- Company Event: None of note.
- Industry Meetings:
- Fourth Annual Telluride Retina Film Festival 2022
- Previously Posted and Ongoing Conferences:
- 44th Annual Pulmonary and Allergy Update at Keysone 2022 (02/02/22-02/05/22)
- Transplantation & Cellular Therapy Meetings of ASTCT and CIBMTR Tandem Meetings 2022 (02/02/22-02/06/22)
- Previously Posted and Ongoing Conferences:
- Fourth Annual Telluride Retina Film Festival 2022
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:
Wednesday’s Upgrades and Downgrades: