Please Note: CAPIS to Hold its February Research Briefing on Feb 17th with Fairlead Strategies’ Katie Stockton. Register here
Overnight Summary: Stocks are higher in the U.S. and Europe as Russia pulls some troops back from the Ukraine border. Asia stocks are mixed with only Shanghai higher. The S&P 500 hit a low at 12:00 a.m. at 4381 and began a rip to the upside on the Russian news at 3:00 a.m. EST and is now at 4465 or 1.62%.
Earnings Out After The Close:
- Beats: CAR +1.01, TNET +0.58, AMKR +0.20, SCI +0.20, CLR +0.13, AAP +0.10, ANET +0.09, ZD +0.09, OTTR +0.04, MEDP +0.03, NTB +0.03.
- Flat: OMCL +0.00
- Misses: PRI (0.28), VNO (0.03), SRC (0.02).
- IPOs Priced or News:
- HTCR: Closing of $15.0 Million Initial Public Offering.
- New SPACs launched/News:
- Software Acquisition Group Inc. III (SWAG) announces combination agreement with Nogin, a provider of Commerce-as-a-Service technology. The combined company will be named Nogin, Inc. and is expected to remain listed on the Nasdaq under the new ticker symbol “NOGN.”
- Secondaries Priced:
- Splash Beverage Group (SBEV) Announces Pricing of $8 Million Underwritten Public Offering.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- Amesite (AMST) Increases Previously Announced Public Offering of Common Stock.
- SBEV: Proposed Public Offering of Common Stock.. EF Hutton Bookmanager.
- VERA: Closing of Upsized Public Offering of Class A Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
- WEJO: Secures up to $100 Million in Committed Equity Financing
- Pricing of Over-Allotment: None of note.
- Direct Offering:
- CYRN: Closing of $12 Million Private Placement Priced At-the-Market.
- Selling Shareholders of note:
- Anghami (ANGH) files for 4.696 mln share common stock offering by selling shareholders.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- CUEN: Form, S-3.. $75Million Mixed Security Shelf.
- FHTX: Filed Form S-3.. $300Million Mixed Shelf.
- Convertible Offering & Notes Filed:
- AMC: Announces Closing of Senior Secured Notes Offering.
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: TSEM +51%, IBRX +14%, TNET +9%, CPSS +9%, AMKR +8%, ANET +8%, JOBY +7%, RLGT +6%, OTTR +4%.
- Trading Down: SBEV -16%, OMCL -4%, ANGH -4%, BKD -4%.
- News After The Close:
- Stocks making the biggest moves after hours: CAR, ANET, BKD (CNBC)
- Canada executed Emergency Powers to end the trucking protest and blockage. (WSJ)
- Intel (INTC) Nears Roughly $6 Billion Deal to Buy Tower Semiconductor (TSEM) (WSJ)
- Regulators Probe Block Trading at Morgan Stanley (MS), Goldman (GS), Other Wall Street Firms. (WSJ)
- Monster Beverage (MNST) and Constellation (STZ) Mergers Talks Are Progressing (Bloomberg)
- Amgen (AMGN) sees that Lumakras shows anticancer activity for patients with pancreatic cancer in Codebreak 100 Trial.
- Bristol-Myers (BMY) and Exelixis (EXEL) announce that Opdivo in combination with Cabometyx demostrated continued survival benefits with over two years in checkMate-9ER trial.
- Berkshire Hathaway (BRKB) took a $1 billion position one month before the sale of Activision (ATVI) which may be looked at by regulators. (WSJ)
- MetLife (MET) Pitches $1 Billion Sale of Private-Equity Assets (WSJ)
- Eli Lilly (LLY) awarded $1.08 billion Army contract for Bebtelovimab.
- Korea Selects Boeing (BA) to Support Readiness for Three Critical Defense Platforms.
- 13 F filings out from hedge fund managers including Greenlight Capital, Glenview Capital, Third Point, Paulson & Co., Pershing Square, Elliott management, ValueAct, Carl Icahn, Startboard, Viking Global, Berkshire Hathaway, Appaloosa, Covex.
- Exchange/Listing/Company Reorg and Personnel News:
- Allegion (ALLE) appoints Mike Wagnes as senior vice president and Chief Financial Officer starting March 1, 2022.
- Black Knight (BKI) announced that Anthony Jabbour, the company’s Chairman and CEO, will assume the role of Executive Chairman of the Board. Joe Nackashi, President, will assume the role of CEO. Kirk Larsen, CFO, will assume the role of President and CFO. This is effective May 16, 2022.
- CytomX Therapeutics (CTMX) discloses temporary leave of absence of Carlos Campy, CFO.
- Quantum-Si (QSI) appoints Dr. Jonathan Rothberg Interim CEO.
- Raytheon Technologies (RTX) appoints Christopher Calio as COO and names Shane Eddy to succeed Calio as President of Pratt & Whitney business effective March 1, 2022.
- SMART Global (SGH) appoints Penny Herscher as chair of the board.
- Westlake Chemical (WLK) plans to change its name to Westlake Corporation on February 18, 2022. The stock will continue to trade under the ticker symbol “WLK” on the NYSE.
- Buyback Announcements:
- Advance Auto (AAP) authorized $1.0 billion for share repurchases.
- Bank of N.T. Butterfield & Son (NTB) announces new replacement share repurchase program.
- Continental Resources (CLR) increased share buyback program by $500 million.
- GoDaddy (GDDY) Executes $750 Million Accelerated Share Repurchase Agreements.
- Primerica (PRI) authorizes additional $50 million for share repurchases.
- TriNet Group (TNET) stock repurchase program increased by $300 million.
- Whirlpool (WHR) increases share repurchase program authorization by $2 billion.
- Stock Splits: None of note.
- Dividends Announcements:
- Advance Auto (AAP) increases quarterly dividend to $1.50 per share, a 50% increase authorized $1.0 billion for share repurchases.
- Genuine Parts (GPC) increases quarterly dividend to $0.895 per share, a 10% increase.
- Huntsman (HUN) Announces a 13% Increase in First Quarter 2022 Common Dividend.
- Kite Realty (KRG) raises quarterly dividend to $0.20 per share, a 5% increase.
- NAC Re Corp (NRC) raises quarterly dividend to $0.24 per share, a 100% increase.
- Otter Tail Power (OTTR) raises dividend.
- Primerica (PRI) increases quarterly dividend to $0.55 per share, a 17% increase.
- Whirlpool (WHR) raises dividend 25%.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +65, Dow Jones +422, NASDAQ +285 and Russell 2000 +36. Asia mixed and Europe higher. VIX Futures are at 25.42 from 27.25 yesterday morning. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury with yields at 2.031% from 1.954% . Bitcoin is at $44,188 from $42,5952 up +4.66%. As of 8:16 a.m. EST
Monday’s Action – 02/14/22 Close:
- Daily Positive Sectors: Consumer Cyclical of note.
- Daily Negative Sectors: Energy, Healthcare, Real Estate, Financial, Utilities of note.
- One Month Winners: Energy of note.
- Three Month Winners: Energy, Consumer Defensive and Basic Materials of note.
- Six Month Winners: Energy, Financial, and Consumer Defensive of note.
- Twelve Month Winners: Energy, Real Estate, and Financials of note.
- Year to Date Winners: Energy and Financial of note.
Russia-Ukraine is dictating the market action as traders hang on every spoken word. NDX eked out a gain of 0.10%, but that was the only bright spot as most indexes were down more than 40 basis points. Updated 02/14/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Tuesday After the Close: ABNB, DVN, RBLX, INVH, ZI, CINF, AKAM, CF, MASI, SEDG, IAC, TOST, WYNN, TX, LSCC, QTWO, AYX, REZI, ATRC, PACB, WIRE, IOSP, NMIH, CRK, KAR, LZB, DENN, ACCO, MRC of note.
- Wednesday Before the Open: SHOP, ADI, KHC, GOLD, TTD, VMC, GRMN, GNRC, CRL, WAB, OC, SITE, CHH, DAVA, IS, CROX, DRVN, BPMC, WING, R, ALKS, ALE, FUN, AIMC, NUS, SAH, AMCX, SFL of note.
Earnings of Note This Morning:
- Beats: ABG +1.41, WCC +0.62, LGIH +0.33, BWA +0.30, MAR +0.30, ARCH +0.29, FELE +0.23, HSIC +0.16, TRTN +0.15, IQV +0.12, ALLE +0.10, QSR +0.05, KRNT +0.05, HUN +0.05, BKI +0.04, ZTS +0.04, CEVA +0.03, IPGP +0.02, TRP +0.02, FIS +0.02.
- Flat: None of note.
- Misses: SABR (0.10), LDOS (0.04).
- Still to Report: ECL.
- Positive Guidance: AMKR, ANET, TNET, KRG, AAP, OTTR, WCC, HSIC, TRTN, KRNT, FELE.
- Negative Guidance: INTU, SRC, ZD, LDOS, BWA, BKI, ZTS, CIEN, FIS, IPGP.
Erlanger Research Advance/Decline Chart: Updated through 02/14/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: TSEM +47%, IBRX +10%, AMKR +9%, ANET +9%, CPSS +9%, JOBY +8%, ALLE +8%, RLGT +8%, TNET +6%, OTTR +5%, POWW +5%, AVEO +5%, DCFC +5%.
- Gap Down: SBEV -18%, OMCL -5%, ANGH -4%.
Insider Action: CDW sees Insider buying with dumb short selling. ATGE, SNSE sees Insider buying with smart short sellers. 02/11/22 close.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”.
- Stocks Making The Biggest Moves: MNST, ANET, QSR, BWA, MAR, ZTS, TSEM, AAP, CAR, INTU. (CNBC)
- 5 Things To Know To Start Your Day. (Bloomberg)
- Covid cases at 34,034 from 73,625 with hospitalizations at 81,007 from 73,625. Tuesdays see only limited data. (CDC).
- Russia has moved only a small number of troops from the Ukraine border and there are still over 100,000 troops at the border. (CNBC)
- Russian military drills continue and troops move into new positions. (WSJ)
- Though Illinois has removed their mask mandate but Chicago may not. (ABC News)
- White House is working on avoiding Energy shortages if Russia invades Ukraine. (Bloomberg)
- More layoffs at Peloton (PTON). (Bloomberg)
- Tesla (TSLA) being investigated in South Korea for exaggerated advertising. (Reuters)
- Robinhood Snacks looks at how Snapchat (SNAP) will give influencers a share of ad revenues. Super Bowl ads driven by EVs and crypto.
Moving Average Update:
- And then there were none. Score hits rock bottom with no indexes trading above a single moving average starting. Updated 02/14/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 9:50 a.m. EST
- The President addresses bipartisan county officials from around the country at the National Association of Counties 2022 Legislative Conference, 2:00 p.m. EST
- Press Briefing by Press Secretary Jen Psaki, 3:00 p.m. EST
- January PPI is due out at 8:30 a.m. EST and is expected to rise by 0.05% from 0.2%.
- February Empire State Manufacturing is due out at 8:30 a.m. EST and is expected to come in at 12.0 from -0.7.
- Redbook Sales 8:55 a.m. EST
- API Crude Oil Data 4:30 p.m. EST
Federal Reserve Speakers:
- AgriFORCE Growing Systems (AGRI) Signs Definitive Agreement To Acquire Delphy Groep, Dutch AgTech Consulting Firm.
- BorgWarner (BWA) to Acquire Santroll’s Light Vehicle eMotor Business.
- BTRS Holdings (BTRS) has acquired European B2B software firm Order2Cash.
- Murata to acquire Resonant (RESN) for $4.50 per share in cash.
Meeting & Conferences of Note:
- Sellside Conferences:
- Bank of America Securities Insurance Conference 2022 (02/15/22-02/16/22)
- BTIG (MedTech) Medical Technology, Digital Health, Life Science and Diagnostic Tools Conference 2022 (02/15/22-02/17/22)
- Canaccord Genuity Digital Assets Virtual Symposium 2022
- Previously Announced Conferences:
- SVB Leerink 11th Annual Global Healthcare Conference 2022 (02/14/22-02/18/22)
- Company Meetings: None of note.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ALLK, FROG, OTIS, PRDS.
- Update: None of note.
- R&D Day: None of note.
- Company Event: VRNT.
- Industry Meetings: None of note.
- Previously Posted and Ongoing Conferences:
- BIO CEO & Investor Digital Conference 2022 (02/14/22-02/18/22)
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:
Monday’s Upgrades and Downgrades: