CAPIS Morning Note – 03/10/22: Stocks Lower, Dollar Rebounds After Drop Yesterday

Overnight Summary:  The S&P 500 closed yesterday at 4277.88 from 4170.70 on Tuesday.  The S&P 500 closed higher for the first time in five days.  The low overnight was just hit at 4221.75 at 7:20 a.m. EST. The current drop is 53.50 points which is -1.25%. Breaking News:  European Central Bank leaves rates unchanged. Earnings…

Overnight Summary:  The S&P 500 closed yesterday at 4277.88 from 4170.70 on Tuesday.  The S&P 500 closed higher for the first time in five days.  The low overnight was just hit at 4221.75 at 7:20 a.m. EST. The current drop is 53.50 points which is -1.25%.

Breaking News:  European Central Bank leaves rates unchanged.

Earnings Out After The Close:

  • Beats: CRWD +0.10, ASAN +0.03, BASE +0.03.
  • Flat: ERJ.
  • Misses: FNV (0.01), MQ (0.01).

Capital Raises:

  • 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:
    • Horizon Technology Finance Corporation (HRZN) Announces Offering of Common Stock for 2.5 million shares..
  • Pricing of Over-Allotment: None of note.
  • Direct Offering:
    • EnerVest Proposed Block Trade of 7,500,000 Shares of Class A Common Stock of Magnolia (MGY); Magnolia Intention to Purchase 2,500,000 Shares of Class B Common Stock From EnerVest.
  • Selling Shareholders of note:
    • Indonesia Energy (INDO) files for 9,100,574 ordinary share offering by selling shareholders .
  • Private Placement of Public Entity (PIPE):
    • BTX: Closing of $12 Million Private Placement.
  • Mixed Shelf Offerings:
    • KOPN: Filed Form POSASR — $144,331,326.66 Mixed Shelf.
    • NEXI: Filed Form S-3.. $200Million Mixed Shelf .
  • 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: 
    • Trading Up: MQ +16%, CRWD +12%, AMZN +7%, CMRE +4%.
    • Trading Down: ASAN -16%, BASE -14%, FOSL -13%, INDO -7%, MGY -5%.
  • News After The Close:
    • Stocks making the biggest moves afterhours: AMZN, CRWD, ASAN, MQ (CNBC)
    • Amazon (AMZN) Board Approves 20-for-1 Stock Split, $10 Billion Share Repurchase (WSJ)
    • Amazon (AMZN) stock split could set it up for being included in the Dow Industrials (CNBC)
    • Natera (NTRA) loses more than $1.7 billion in market cap, even after company calls Hindenburg report ‘misleading’. (MarketWatch)
    • Starbucks (SBUX) Workers at 3 More Buffalo-Area Stores Vote to Unionize. (NYT)
    • Disney (DIS) C.E.O. Says Company Is ‘Opposed’ to Florida’s ‘Don’t Say Gay’ Bill. (NYT)
    • Russian/Ukraine News:
      • The White House is now warning that Russia may use chemical or biological weapons in Ukraine. (CNN)
      • Russia drops its tax on purchases of gold to zero.
      • IMF Executive Board approves $1.4 bln in emergency financing support to Ukraine.
      • Sales of Shares of WEAT Commences.
      • Skechers (SKX) temporarily suspends shipments to Russia (MarketWatch)
      • Sony (SONY) will suspend PlayStation hardware and software shipments in Russia.
      • Crocs, Inc. (CROX) Pauses Business Operations and Importation of Goods in Russia
    • Assets Under Management Reporting: BEN $1,486.9 billion vs. $1,521.8, AB $739 billion, APAM $159.8 billion, IVZ $1,531 billion (down 1.3%), LAZ $251.6 billion vs. $258.7 prior.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Anthem (ANTM) Plans to Change Name to Elevance Health.
    • BNY Mellon (BK) CEO Todd Gibbons to retire. Robin Vince named Co-CEO.
    • Costco (COST) announces that James Murphy, Executive Vice President and COO, International, is retiring at the end of 2022.
    • Docebo (DCBO) immediately names Sukaran Mehta, CFO.
    • DTE Energy (DTE) Executive Chairman Gerry Anderson will retire on June 30.
    • E-Home Household Services Holdings Limited (EJH) Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
    • GeoPark (GPRK) Announces CEO Succession and Management Transition Plan.
    • Genius Brands International (GNUS) Says On March 4, Got Notice Of Delisting Of Failure To Satisfy A Continued Listing Rule Or Standard From Nasdaq.
    • Murphy Oil (MUR) announces retirement of CFO David R, Looney, on June 30.
    • NewAge, Inc. (NBEV) Names Ed Brennan Interim Chief Executive Officer.
    • NIO listed successfully on Main Board of Stock Exchange of Hong Kong.
    • Noble Corporation (NE) names Charles Sledge as Chairman of combined company.
    • Trean Insurance Group (TIG) Announces Senior Management Changes.
  • Buyback Announcements:
    • AMZN buy back up to $10 billion of shares.
    • EnerSys (ENS) Announces $150 Million Stock Repurchase Authorization.
    • The First Bancshares, Inc. (FBMS )Announces New Share Repurchase Plan.
    • Lufax (LU) authorizes $500 million for ADS repurchases.
    • Riverview Bancorp, Inc. (RVSB) Announces Stock Repurchase Program.
    • TrustCo Bank Corp NY (TRST) Announces Stock Repurchase Plan.
  • Stock Splits:
  • Dividends Announcements: 
    • Costamare (CMRE) declares special dividend of $0.50 per share.
    • Johnson Controls (JCI) increases quarterly cash dividend by $0.01 to $0.35 per share.
    • Kadant (KAI) increases quarterly cash dividend by $0.01 to $0.26 per share.

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

S&P 500 -49, Dow Jones -376, NASDAQ -214, and Russell 2000 -29 .  Asia higher and Europe lower. VIX Futures are at 33.05 from 31.85  yesterday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury with yields at 1.983% from +1.90% from yesterday.  Bitcoin is at $39,248.87 from $41,952 at -6.30%. As of 8:14 a.m. EST

Wednesday’s Action – 03/09/22 Close:  

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

Stocks rebounded with gap up across the board this morning.  NASDAQ jumped 3.59%.  Oil pulled back 11.66% (USO).    Updated 03/09/22 close.

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

  • Thursday After the Close: ORCL, RIVN, DOCU, ULTA, WPM, PAGS, FIZZ, STNE, LFST, SHLS, NUVB, BLNK, ZUMZ, CMTL, LOCO, RRGB of note.
  • Friday Before the Open: PLXP of note.

Earnings of Note This Morning:

  • Beats: GCO +0.83, JD +0.54, THRY +0.53, BZUN +0.25, DBCO +0.02, CLVT +0.01
  • Flat: None of note.
  • Misses: LTH (1.17), PLTO (0.07), UP (0.07), FCEL (0.06), AG (0.05).
  • Still to Report: CNM, DFH, LAC.

Guidance:

  • Positive Guidance: CRWD.
  • Negative Guidance: BASE, LU, ERJ.

Erlanger Research Advance/Decline Chart: Updated through 03/09/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: CRWD +11%, MQ +11%, AMZN +6%, DCBO +5%.
  • Gap Down: ASAN -24%, FOSL -14%, BASE -13%, MGY -7%, BEKE -7%, JD -6%, HRZN -6%, GTBP -4%, NIO -4%.

Insider Action: BRP, TXRH, CMG, WW, VICI, CLR sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 03/09/22 close.

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 To Start Your Day. (Bloomberg)
  • Russia and Ukraine latest talk yield no positive results. (Bloomberg)
  • House of Representatives pass a $1.5 trillion spending bill that includes aid for Ukraine. (Bloomberg)
  • Covid aid dropped from the spending bill. (NYT)
  • U.A.E. is pushing OPEC+ to increase supply. (WSJ)
  • U.K. announces sanctions against 7 oligarchs.
  • 25% of Taiwan Semiconductor (TSM) revenue came from Apple (AAPL). (Digitimes)
  • General Electric (GE) confirms guidance for FY 2022.
  • Robinhood Snacks looks at the pullout from Russia by McDonalds (MCD) and Coca Cola (KO). First step towards Bitcoin regulation by Biden sends crypto names higher.

Moving Average Update:

  • A glimmer of home with 1 index trading above a moving average ($RUT with the shortest term 5 DMA).  Updated 03/09/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EST
    • The President holds a phone call with President Recep Tayyip Erdoğan of Turkey to discuss the latest developments regarding Russia and Ukraine, 10:00 a.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 12:45 p.m. EST
    • The President participates in a bilateral meeting with His Excellency Iván Duque Márquez, President of the Republic of Colombia, to celebrate 200 years of positive diplomatic relations and consult on a range of regional and global issues of mutual interest, 1:40 p.m. EST
    • The President delivers remarks to Democratic National Committee members at their Winter Meeting, 7:15 p.m. EST

Economic: 

  • February CPI is due out at 8:30 a.m. EST and is expected to fall to 0.5% from 0.60%.
  • Initial Jobless Claims 8:30 a.m. EST
  • Gas Report 10:30 a.m. EST
  • Treasury Statement 2:00 p.m. EST.

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • Chesapeake Energy Corporation (CHK) completes acquisition of Chief E&D Holdings, lp and affiliates of Tug Hill, Inc..

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America 2022 Refining virtual Conference 2022
    • Bank of America Downstream Conference 2022
    • Bank of America Sports Betting & Online Gaming Field Trip Conference 2022
    • Bernstein’s 10th Annual Tech Tour 2022
    • Citi EM Fintech Conference
    • Citigroup Global IT Services Tour
    • D.A. Davidson 5th Annual Consumer Growth Conference 2022 
    • Gabelli & Company 13th Annual G.research Specialty Chemicals Conference 2022
    • Guggenheim 3rd Annual Healthy Altitudes CEO Summit 2022
      • Previously Announced  Conferences:
        • HSBC Build with Bio Conference 2022 (03/09/22-03/10/22)
        • UBS Global Consumer and Retail Conference 2022 (03/09/22-03/10/22)
        • Wolfe Research Fintech Forum 2022 (03/08/22-03/10/22)
        • Morgan Stanley Technology, Media, and Telecom (TMT) Conference 2022 (03/07/22-03/10/22)
  • Company Meetings: ABC, AMAT.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: BRFH, EBAY, FTK, GE, MCO, MNDT, PINS, WMS.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: Cisco (CSCO) and UBS to host ESG Conference 2022.
  • Industry Meetings:
    • None of note.
      • Previously Posted and Ongoing Conferences:
        • Council on Resident Education in Obstetrics and Gynecology (CREOG) & Association of Professors of Gynecology and Obstetrics (APGO) Annual Meeting 2022  (03/09/22-03/12/22)
        • Festival of Biologics Conference 2022 (03/09/22-03/11/22)
        • American Clean Power (ACP) Operations and Maintenance Safety (OMS) Conference 2022 (03/08/22-03/10/22)
        • Filtech 2022 (03/08/22-03/10/22)
        • Optical Fiber Conference (OFC) 2022 (03/08/22-03/10/22)
        • CERAWeek 2022 (03/06/22-03/11/22)

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:

      

Wednesday’s Upgrades and Downgrades: