CAPIS Morning Note – 03/15/23: Stocks In Free Fall From 5:00 a.m. EDT Onward, Credit Suisse Backers Walk Away

Overnight Summary: The S&P 500 closed Tuesday higher by 1.65% at 3919.29 from Monday lower by -0.15% at 3855.76. The overnight high of 3964 was hit at 10:55 p.m. EDT. The low was hit at 3870 at 6:55 a.m. EDT, a range of ~94 points high to low.  At 7:05 a.m. EDT, the S&P 500…

Overnight Summary: The S&P 500 closed Tuesday higher by 1.65% at 3919.29 from Monday lower by -0.15% at 3855.76. The overnight high of 3964 was hit at 10:55 p.m. EDT. The low was hit at 3870 at 6:55 a.m. EDT, a range of ~94 points high to low.  At 7:05 a.m. EDT, the S&P 500 (mini) was lower by -63 points which is -1.59%.

Earnings Out After The Close

  • Beats: LEN +0.57, GES +0.44, STNE +0.10, SMAR +0.08, S +0.03, CTOS +0.01 of note.
  • Flat: None of note.
  • Misses: None of note.

Unusual Options Activity:

Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500.  It looks for volume outliers relative to the Open interest in Calls or puts.  Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.


Capital Raises:

  • IPOs Priced or News:
    • ICZOOM Group (IZM) 1.5 Million share IPO priced at $4.00.
    • NeoTV Group (NTV) 6.8 Million shares in IPO at $6 to $6.5 per share.
    • Trio Petroleum (TPET) 1.714 Million share IPO price range $3.00-$4.00.
  • New SPACs launched/News:
    • Inception Growth Acquisition Limited (IGTA) Announces Extension of Business Combination Period.
  • Secondaries Priced:
    • ORA: Prices offering of 3.6 million shares of common stock.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • INDI: Filed Form S-3.. Secondary Offering of 20,481,660 shares of Class A Common Stock.
    • ORA: Launch of Public Offering of Common Stock.. 3.6 Million shares. (GS Bookmanager)
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • ASPI: Announces $5 Million Private Placement Priced At-the-Market Under Nasdaq Rules.
  • Mixed Shelf Offerings:
    • VZLA: Filed Form F-10 — US$400,000,000 Mixed Shelf.
    • WFC: Filed Form S-3.. $9.5 Billion Mixed Shelf.
  • Debt/Credit Filing and Notes:
    • SPG: Announces New $5.0 Billion Revolving Credit Facility.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed:
    • FRPT: Proposed Convertible Senior 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: SMAR +11% of note.
    • Trading Down: FRPT -11%, GES -7%, ORA -6% of note.
  • News After The Close:   
    • Stocks making the biggest moves after hours: LEN, FRC, WAL, FRPT, AAWW, GES, KEY  (CNBC)
    • Fed to Consider Tougher Rules for Midsize Banks After SVB, Signature Failures. (WSJ)
    • Silicon Valley Bank Creditors Form Group in Advance of Possible Bankruptcy. (WSJ)
    • Lennar (LEN) stock rises after earnings, forecast beat. (MarketWatch)
    • SEC Charges IT Services Provider DXC Technology Co. (DXC) for Misleading Non-GAAP Disclosures. (SEC Release) (MarketWatch)
    • Carl Icahn says our economy is breaking because of inflation and poor corporate leadership. (CNBC)
    • General Dynamics (GD) awarded $1.48 billion U.S. Army contract modification.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Accelerate Diagnostics (AXDX) announces departure of CFO Steve Reichling and appointment of David Patience as replacement.
    • Advantage Solutions (ADV) names Chris Growe as CFO.
    • Casa Systems (CASA) Announces CEO Transition.
    • EnLink Midstream (ENLC) announces that Matthew C. Harris will be appointed as Chairman of its Board of Directors.
    • Essent Group (ESNT) announces the promotion of David Weinstock to CFO.
    • Eversource Energy (ES) COO Werner Schweiger to retire.
    • HAS: CFO to retire.
    • MorphoSys (MOR) names Lucinda Crabtree, Ph.D. as CFO.
    • OBSV to delist effective Mar 23rd.
    • REE Automotive (REE) Appoints New Chief Financial Officer.
    • Smartsheet (SMAR) Announces New Board Leadership.
    • UGI Corp (UGI) announces that Sean O’Brien will succeed Ted Jastrzebski as CFO.
    • Warner Music Group (WMG) planning for the succession of CFO Eric Levin. (MarketWatch)
  • Buyback Announcements or News:
    • Broadstone Net Lease, Inc. (BNL) Announces $150 Million Stock Repurchase Authorization.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News:
    • KO Goes ex div tomorrow for $0.46.
    • MSFT maintains dividend at $0.68 per share.
    • NLY Cuts dividend by ~25%.
    • Realty Income (O) increases its monthly dividend to $0.255 per share.

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

S&P 500 -68, Dow Jones -544,  NASDAQ -166, and Russell 2000 -48. (as of 7:56 a.m. EDT).  Asia higher and Europe lower. VIX Futures are at 25.80 from 25 yesterday.  Gold higher with Silver and Copper lower. WTI Crude Oil and Brent lower with Natural Gas lower as well. US 10-year Treasury sees yields at 3.53% from 3.608% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $24,528 from $24,780 yesterday, lower by  -0.76%.

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

  • Daily Positive Sectors: Communication Services, Technology, Financial of note.
  • Daily Negative Sectors: None of note.
  • One Month Winners: None of note.
  • Three Month Winners: Technology, Communication Services, Industrials of note.
  • Six Month Winners: Basic Materials, Industrial, Energy of note.
  • Twelve Month Winners: Energy of note.
  • Year to Date Winners: Technology, Consumer Cyclical, Communication Services of note.

U.S. stocks finished sharply higher Tuesday, with the Dow Jones Industrial Average snapping a five-day losing streak as regional banking stocks rose and investors weighed a report showing the rate of inflation slowed over the past year. The Dow closed about 1.1% higher, while the S&P 500 gained 1.7% and the Nasdaq Composite rose 2.1%. Fresh data from the consumer-price index on Tuesday showed inflation rose in February in line with expectations, with the year-over-year rate cooling to 6% from 6.4% in January. (MarketWatch – edited by QPI)

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

  • Wednesday After the Close:

  • Thursday Before the Open:

Earnings of Note This Morning:

  • Beats: GDS +2.52 of note.
  • Flat: None of note.
  • Misses: PACK (0.45), EBIX (0.10), OTLY(0.07) of note.
  • Still to Report: None of note.


  • Positive Guidance: LEA of note.
  • Negative Guidance: GES, GDS of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: SMAR +11%, CTOS +11%, DCPH +8%, LDI +5% of note.
  • Gap Down: FRPT -9%, GES -7%, ORA -5% of note.

Insider Action: VLY, PEB, SWX sees Insider buying with dumb short selling.  BY sees Insider buying with smart short sellers.

Rags & MagsRepeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

  • 5 things to know before the stock market opens. (CNBC)
  • 5 Things You Need to Know to Start Your Day. (Bloomberg)
  • Bloomberg Lead Story: Credit Suisse Plunges As Top Holder Rules Out Investing More. (Bloomberg)
  • Bloomberg Most Read Story: Bank of America (BAC) Gets More Than $15 billion in Deposits After Silicon Valley Banking Fails. (Bloomberg)
  • Israel faces the biggest internal clashes since its founding. (NYT)
  • Russia Oil Revenue falls as sanctions from IEA bite. (CNBC)
  • Department of Justice and SEC to open investigations into Silicon Valley Bank collapse (1440)
  • Biden Administration approves Willow Oil Drilling Project in Alaska setting up a court challenge. (CNN)
  • Stocks, US Futures Sink Amid Credit Suisse Turmoil: Market Wrap. (Bloomberg)
  • State Street Sees Moody’s US Banking Cut “Terrible Overreaction”. (Bloomberg)
  • Mortgage Demand Rises Despite Volatile Interest Rates. (CNBC)
  • Moody’s Analytics Economist Mark Zandi says that Fed unlikely to raise rates in March. (CNBC)
  • WTI Falls Below $70 a barrel for first time since late 2021. (Bloomberg)
  • EPA proposes to limit “forever chemicals” in drinking water, could take effect in 60 days. (1440)
  • Over 1,000 flights canceled due to weather in the U.S. on Tuesday, with more set for today. (CNN)
  • Meta to lay off 10,000 more workers. (CNN)

Moving Average Update:

  • Score sees an increase in green going to 28 from 5.


  • President’s Public Schedule:
    • The President receives the President’s Daily Briefing, 11:30 a.m. EDT
    • The President discusses his plan to lower prescription drug costs, 2:30 p.m. EDT
    • The President departs Las Vegas, Nevada en route to Joint Base Andrews, 3:30 p.m. EDT
    • The President arrives at Joint Base Andrews, 7:30 p.m. EDT


  • MBA Mortgage Applications 7:00 a.m. EDT
    • MBA Mortgage Applications: Composite: +6.5%, Purchase: +7.3%, ReFi: +4.8%
  • March Empire Manufacturing is due out at 8:30 a.m. EDT and is expected to fall to -8.0 from -5.8.
  • February Retail Sales is due out at 8:30 a.m. EDT and is expected to fall to 0.2% from 3.0%.
  • February PPI is due out at 8:30 a.m. EDT and is expected to fall to 0.3% from 0.7%.
  • March NAHB Housing Index is due out at 10:00 a.m. EDT and is expected to remain at 42.
  • Business Inventories 10:00 a.m. EDT
  • Housing Market Index 10:00 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT

Federal Reserve / Treasury SpeakersNone of note as in blackout period into next week’s FOMC meeting.

M&A Activity:

  • Arthur J. Gallagher & Co. (AJG) Acquires FE Protect.
  • FCPT Announces Acquisition of an Aspen Dental for $1.9 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Berenberg Thematic Software Conference
    • Morgan Stanley Sustainable Metals & Mining Seminar 2023
    • Needham Neuroscience Forum
    • UBS Global Consumer and Retail Conference (03/15/23-03/16/23)
    • Wells Fargo Bank Tech Summit

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:

Previous Day’s Upgrades and Downgrades: