CAPIS Morning Note – 02/16/24: PPI Data Due Out At 8:30 a.m. EST.

Overnight Summary: The S&P 500 closed Thursday higher by 0.58% at 5029.73 from Wednesday higher by 0.96% at 5000.62. The overnight high was hit at 5059.25 at 6:15 a.m. EST while the overnight low was hit at 5039.25 at 8:45 p.m. EST. The range overnight was 20 points as of 7:05 a.m. EST. The 10-day…

Overnight Summary: The S&P 500 closed Thursday higher by 0.58% at 5029.73 from Wednesday higher by 0.96% at 5000.62. The overnight high was hit at 5059.25 at 6:15 a.m. EST while the overnight low was hit at 5039.25 at 8:45 p.m. EST. The range overnight was 20 points as of 7:05 a.m. EST. The 10-day average of the overnight range is at 20.85 from 20.24.  The average for May-January average was 20.88 from 20.87 during May-November. Currently, the S&P 500 is higher by +10.00 points at 7:05 a.m. 

Executive Summary: CPI hit markets hard. Will PPI do the same or will it be a kinder and gentler report? Markets seem to have forgotten Wednesday’s actions. Markets are closed on Monday for President’s Day. So either way markets will have a long time to think about the report.
  • January PPI is due out at 8:30 a.m. EST and is expected to rise to 0.10% from -0.10%.
  • Federal Reserve Vice Chair for Supervision Michael S. Barr 9:10 a.m. EST
  • February University of Michigan Consumer Sentiment is due out at 10:00 a.m. EST and is expected to rise to 79.30 from 79.00.
  • Federal Reserve San Francisco President Mary Daly 12:10 p.m. EST

Earnings Out After The Close

  • Beats: COIN +1.02, AL +0.78, KNSL +0.48, TNET +0.41, EIG +0.33, BIO +0.28, SWAV +0.27, AMAT +0.23, RARE +0.19, PRAA +0.15, TRUP +0.13, PCOR +0.10, OPEN +0.10, IR +0.09, AEM +0.08, AMN +0.07, HTGC +0.06, BJRI +0.06, TSLX +0.04, ED +0.03, SKT +0.03, CORT +0.02, DBX +0.02, TXRH +0.02, PACB +0.02, ATRC +0.01, GLOB +0.01 of note.
  • Flat: ROKU +0.00, BE +0.00, TTD +0.00 of note.
  • Misses: TROX (0.36), MERC (0.33), DASH (0.26), DKNG (0.18), LTC (0.11), TOST (0.10), PRTA (0.08), TXG (0.06), CWST (0.03), TVTX (0.02), DLR (0.02), ELME (0.01), YELP (0.01) of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • GEHC: Prices secondary offering of 13.0 mln shares of common stock at $82.25 per share.
    • SMX: Announces Pricing of $2.9 Million Public Offering.
  • Notes Priced of note:
    • FCFS: Announces Pricing of $500 Million Senior Notes Due 2032.
    • SNEX: Announces Pricing of $550 Million of Senior Secured Notes due 2031.
  • Common Stock filings/Notes:
    • AEZS: FORM F-1 – Up to 2,534,424 Aeterna Zentaris New Warrants Up to 2,534,424 Common Shares.
    • ALVR: FORM RW filled.
    • ARE: Entered into a distribution agreement relating to the offer and sale of shares of common stock.
    • BLBD: Launch of Secondary Public Offering.. 4,042,650 shares. (BCS Bookmanager)
    • GEHC: Commences secondary offering of 13,000,000 shares
    • GEHC: Files for 61,581,302 shares of common stock.
    • MODD: Proposed Public Offering. (American Capital Partners Bookmanager)
  • Direct Offering:
    • WATT: $2.0 Million Registered Direct Offering Priced At-The-Market under Nasdaq Rules.
  • Selling Shareholders of note:
    • IREN: Filed Form F-3.. Up to 2,069,122 Ordinary Shares by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • LICN: Filed Form F-3.. $100,000,000 Mixed Shelf.
  • Debt/Credit Filing and Notes:
    • CSCO: Filed FORM S-3ASR – Debt Securities.
    • INTC: Files Term Sheet Related To Offering Of $500 Mln 5.000% Senior Notes Due 2031 – Sec Filing.
    • POST: Redemption of $459.3 Million 5.75% Senior Notes Due March 2027
  • Tender Offer: None of note.
  • Convertible Offering & Notes 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 Movers: 
    • LICN: +49% Filed Form F-3.. $100,000,000 Mixed Shelf 
    • TTD: +20% Earnings 
    • COIN: +12% Earnings 
    • BLZE: +12% Earnings 
    • AMAT: +12% Earnings
    • HASI: +6% Earnings 
    • TXRH: +5% Earnings 
    • IR: +5% Earnings 
    • TOST: +4% Earnings 
    • CPS: -16% Earnings 
    • ROKU: -15% Earnings 
    • YELP: -10% Earnings 
    • DASH -8% Earnings 
    • DBX: -6% Earnings 
    • IREN: -6% Filed Form F-3.. Up to 2,069,122 Ordinary Shares
  • News Items After the Close:
    • Stocks making the biggest moves after hours: DASH, ROKU, AMAT, COIN, TOST, DKNG, TTD, DBX, YELP, TXRH, BIO (CNBC)
    • SPX “Of the 395 companies that have reported so far (79% of the S&P 500): Overall, 79% are beating estimates, and those that ‘beat’ are beating by a median of 7%.” (Fundstrat)
    • CBRE ‘Optimism’ Sparks Rally in Embattled Commercial Real Estate. (Bloomberg)
    • Apple (AAPL) Readies AI Tool to Rival Microsoft’s GitHub Copilot. (Bloomberg)
    • Applied Materials (AMAT) Jumps After Forecast Shows Chip Rebound. (Bloomberg)
    • DraftKings (DKNG) posts 44% revenue growth but falls short of estimates. (CNBC)
    • Trade Desk (TTD) shares soar on revenue beat and strong guidance. (CNBC)
    • Toast (TOST) will lay off 10% of its workforce, about 550 employees, as growth slows. (CNBC)
    • Federal Reserve Atlanta President Raphael Bostic:
      • Unlikely Jan CPI Signals Big Change In Trend Of Weakening Inflation
      • Sees Case US Economy Less Sensitive To Interest Rate Changes
      • ‘Fight Is Not Finished’ On Getting Inflation Back To 2%
      • Fed Does Not Face Urgency To Cut Rates Given Current Economy
  • Exchange/Listing/Company Reorg and Personnel News:
    • Amazon (AMZN): Jeff Bezos sold another 12 million shares of Amazon AMZN between Feb 13 and Feb 14, at prices ranging between $166.82 and $171.20. This marks his third sale of the year, totaling 36 million AMZN shares, worth $6 billion.
    • Armada Hoffler Properties (AHH) board of directors appoints Shawn Tibbetts as President.
    • Bloom Energy (BE) today announced that President and CFO Greg Cameron has notified the company of his intention to depart from his role.
    • Enerflex (EFXT) appoints Preet Dhindsa as Senior Vice President and CFO.
    • General Electric (GE) announced last night filing of form 10 registration statement for planned spin-off of Ge Vernova.
    • NatWest Group plc (NWG) Paul Thwaite appointed as NatWest Group CEO.
    • PTC appointed Neil Barua, the Company’s CEO-Elect, Chief Executive Officer of the Company.
    • Scorpio Tankers (STNG) announces that the President of the Company, Robert Bugbee, has purchased call options on an aggregate of 555,600 common shares of the Company for total consideration of $7.0 million.
    • Transphorm (TGAN) to delay 10-Q filing.
    • TriNet Group (TNET) announces retirement of President and CEO Burton Goldfield; appoints Mike Simonds as President and CEO.
    • TTEC Holdings (TTEC) appoints Kenneth Wagers as CFO.
    • VeriSign (VRSN) President and COO Todd B. Strubbe to retire.
  • Buyback Announcements or News: 
    • BJ Restaurants (BJRI) approves $50 million increase to buyback plan.
    • DASH: Up to $1.1 Billion buyback.
    • The Trade Desk (TTD) increases share repurchase authorization to $700 million.
    • Toast (TOST) Board approved a $250 million buyback.
    • Wabash Natl (WNC) announces its Board of Directors authorized the company’s repurchase of up to an additional $150 million of the company’s common stock.
    • YELP Buyback increased by $500 million.
  • Stock Splits or News:
    • Cooper (COO) 4-for-1 stock split effective 2/16.
    • SISI to trade 1/10 reverse split today.
  • Dividends Announcements or News:
    • Ault Alliance (AULT) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
    • DT Midstream (DTM) increases dividend 7%.
    • Enpro Inc. (NPO) increases quarterly dividend 3.4% to $0.30 per share from $0.29 per share.
    • Hannon Armstrong Sust. Infr. (HASI) increases quarterly dividend to $0.415 per share from $0.395 per share.
    • Murphy USA (MUSA) increases quarterly dividend 2.4% to $0.42 per share from $0.41 per share.
    • Sixth Street Specialty Lending (TSLX) declares a First Quarter Base Dividend Per Share of $0.46, and a Fourth Quarter Supplemental Dividend Per Share of $0.08.
    • Texas Roadhouse (TXRH)  increases dividend 11%.
    • TC Energy (TRP) increases quarterly dividend 3.2%
    • TriNet Group (TNET) initiated quarterly dividend of $0.25.

What’s Happening This MorningFutures value reflects the change with fair value.

S&P 500 +8, Dow Jones -22, NASDAQ +84, and Russell 2000 -4.  (as of 7:56 a.m. EST).  Asia is higher while Europe is higher again this morning. VIX Futures are at from 14.90 this morning.  Gold, Silver and Copper are higher this morning. WTI Crude Oil and Brent Crude Oil are lower with Natural Gas higher. US 10-year Treasury sees its yield at 4.261% from 4.23% yesterday morning. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the YenBitcoin is at $52,248 from $52,375  higher by 0.82% this morning.

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

  • Daily Positive Sectors: Real Estate, Energy, Basic Materials, Utilities, Financial, Consumer Cyclical of note.
  • Daily Negative Sectors: Communication Services of note.
  • One Month Winners: Technology, Communication Services, and Industrials of note.
  • Three Month Winners: Technology, Industrials, Communication Services of note.
  • Six Month Winners: Technology, Communication Services, and Financial of note.
  • Twelve Month Winners: Technology, Communication Services, and Consumer Cyclical of note.
  • Year to Date Winners:  Technology, Communication Services, and Healthcare of note.

Renewed optimism about the economic outlook helped lift stocks on Thursday, extending a rebound following losses sparked by a hotter-than-expected inflation report on Wednesday.   Stocks rose across most sectors and among large and small businesses, with indexes held back from bigger gains primarily by weakness in a handful of large technology stocks.  The Dow Jones Industrial Average rose for a second straight session, climbing roughly 349 points, or 0.9%. The S&P 500 added 0.6%, narrowly reaching its 11th record of the year, while the tech-heavy Nasdaq Composite gained 0.3%. (WSJ – edited by QPI)

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

  • Friday After the Close: None of note.
  • Tuesday Before the Open:

Earnings of Note This Morning:

  • Beats: DTM +0.32, TRP +0.25, USM +0.13, THS +0.06, VMC +0.06, B +0.06, BCPC +0.02, TDS +0.01 of note.
  • Flat: HR of note.
  • Misses: POR (0.20), CNK (0.08) of note.
  • Still to Report: AXL, PPL of note.

Company Earnings Guidance:

  • Positive Guidance: IDCC, TTD, PCOR, ROKU, IR of note.
  • Negative Guidance:  ITGR, NSIT, BE, YELP, COHU, OPEN, TXG, DLR, AMN, DBX, B, HR of note.

Erlanger Research Advance/Decline Chart:  

Gap Ups & Down In Early Pre-Market:

  • Gap Up: TTD +18%, AMAT +13%, PRAA +12%, COIN +12%, TXRH +9%, MNR +8%, TOST +7%, CORT +6%, BIO +6%, NWG +5%, MUSA +5%, MGNI +4%, HUT +4%, HASI +4% of note.
  • Gap Down: BE -16%, ROKU -15%, DBX -13%, TRUP -10%, AMN -9%, YELP -9%, IREN -8%, DASH -7%, COHU -6%, PRTA -6%, PDFS -5%, PACB -5%, TROX -4%, DLR -4% of note.

Insider Action: TCBI sees Insider buying with dumb short selling.  No stock sees 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.

  • What You Need To Know To Start Your Day. (Bloomberg)
  • 5 Things To Know Before the Stock Market Opens Today. (CNBC)
  • Bloomberg Lead Story: Putin Foe Alexey Navalny Dies in Jail at 47. (Bloomberg)
  • Bloomberg Most Shared Story: Wawa Billionaires bet on taking the convenience store south. (Bloomberg)
  • Stocks climb before PPI in data driven week: Markets Wrap. (Bloomberg)
  • Bloomberg: Odd Lots:  What earnings are telling us about inflation now. (Podcast)
  • Marketplace: $7 trillion chips moonshoot, AI fueled cyber attacks and Disney’s bet on gambling. (Podcast)
  • Wealthion:  Navigating financial storms. (Podcast)

Moving Average Update: Back to 100% in the blink of an eye.


  • President’s Public Schedule:
    • The President departs the White House en route to Joint Base Andrews, 1:10 p.m. EST
    • The President departs Joint Base Andrews en route to Pittsburgh, Pennsylvania, 1:30 p.m. EST
    • Press Secretary Karine Jean-Pierre will speak aboard Air Force One en route to Pittsburgh, Pennsylvania, 2:00 p.m. EST
    • The President arrives in Pittsburgh, Pennsylvania, 2:25 p.m. EST
    • The President receives an operational briefing from officials on the continuing response and recovery efforts, 4:20 p.m. EST
    • The President delivers remarks on how the Administration is holding Norfolk Southern accountable for the derailment and is working with state and local officials to support the community as it moves forward, 4:45 p.m. EST
    • The President departs Pittsburgh, Pennsylvania en route to Dover, Delaware, 7:35 p.m. EST
    • The President departs Dover, Delaware en route to Rehoboth Beach, Delaware, 8:45 p.m. EST
    • The President arrives in Rehoboth Beach, Delaware, 9:05 p.m. EST


  • Housing Starts and Permits 8:30 a.m. EST
  • January PPI is due out at 8:30 a.m. EST and is expected to rise to 0.10% from -0.10%.
  • February University of Michigan Consumer Sentiment is due out at 10:00 a.m. EST and is expected to rise to 79.30 from 79.00.
  • Michigan Inflation Expectations 10:00 a.m. EST
  • Baker Hughes Rig Count 1:00 p.m. EST

Federal Reserve / Treasury Speakers:

  • Federal Reserve Vice Chair for Supervision Michael S. Barr 9:10 a.m. EST
  • Federal Reserve San Francisco President Mary Daly 12:10 p.m. EST

M&A Activity and News

  • DraftKings (DKNG) reaches agreement to acquire Jackpocket for $750 million
  • Grocery Outlet (GO) agrees to acquire United Grocery Outlet, an extreme value, discount grocery retailer operating throughout the Southeastern United States, from affiliates of Gen Cap America, Inc. and current and former UGO management.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Water Tower Research Fireside Chat
      • Previously posted and ongoing conferences:
        • KBW Winter Financial Services Conference
  • Top Shareholder Meetings: ATNF FAZE FNGR MOTS YS
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: NVST
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • American Physical Therapy Association (APTA) Combined Sections Meeting (CSM)
        • Previously posted and ongoing conferences:
          • Arkansas Lithium Innovation Summit
          • North America Envista Summit
          • Respiratory Syncytial Virus Foundation’s RSVVW 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.

Today’s Upgrades and Downgrades:

Previous Day’s Upgrades and Downgrades: