CAPIS Morning Note – 03/15/24: Stocks Higher Into End of The Week

Overnight Summary: The S&P 500 closed Thursday lower by -0.30% at 5150.48 from Wednesday lower by -0.19% at 5165.31. The overnight high was hit at 5230.75 at 7:00 a.m. EDT while the overnight low was hit at 5210 at 1:45 a.m. EST. The range overnight is 21 points as of 7:30 a.m. EST. The 10-day average […]

Overnight Summary: The S&P 500 closed Thursday lower by -0.30% at 5150.48 from Wednesday lower by -0.19% at 5165.31. The overnight high was hit at 5230.75 at 7:00 a.m. EDT while the overnight low was hit at 5210 at 1:45 a.m. EST. The range overnight is 21 points as of 7:30 a.m. EST. The 10-day average of the overnight range is at 21.05 from 22.14. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +11 points at 7:30 a.m. EDT.

Executive Summary: Markets will take a breather after inflation data now out BUT we do have Quadruple Witching today as this options expiration ends the first quarter expiration.

March New York Empire Manufacturing Index is due out at 8:30 a.m. EDT and is expected to fall to -8.0% from -2.4%.
February Industrial Production is due out at 9:15 a.m. EDT expected to come in at 0.00% from -0.1%.
March University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and is expected to come in at 77.3 from 76.90 last month.

Earnings Out After The Close:

Beats: ULTA +0.55, SMAR +0.16, ZUMZ +0.14, ADBE +10, BLNK +0.03, PD +0.02 of note.
Flat: PHR of note.
Misses: CDLX -2.33, EVCM -0.24, ALLO -0.06, BW -0.03 of note.

Capital Raises:

IPOs Priced or News: None of note.
New SPACs launched/News: None of note.
Secondaries Priced:
- CDRE: Prices primary and secondary offering of common stock.
- ODD: Pricing of Secondary Offering of Class A Ordinary Shares.. 4,782,609 @$43.50.
- XELB: Announces Pricing of $2.42 Million Public Offering of Common Stock and Concurrent Private Placement.
Notes Priced of note:
- VTLE: Prices Upsized Offering of $800.0 Million of Senior Notes.
Common Stock filings/Notes:
- PTN: Filed Form S-1.. Up to 1,923,078 Shares of Common Stock.
- XELB: Proposed Public Offering of Common Stock. (Craig-Hallum Bookmanager)
Direct Offering: None of note.
Selling Shareholders of note: None of note.
Private Placement of Public Entity (PIPE): None of note.
Mixed Shelf Offerings:
- ACIU: Filed Form F-3.. $350,000,000 Mixed Shelf.
- ALLO: Filed Form S-3.. $500,000,000 Mixed Shelf.
- HRTG: Filed Form S-3.. $100,000,000 Mixed Shelf.
- MBLY: Filed Form S-3ASR – Mixed Shelf.
- PANL: Filed Form S-3.. $100,000,000 Mixed Shelf.
- SEED: Filed Form F-3 $30Million Mixed Security Shelf.
- TOL: Filed Form S-3ASR — Mixed Shelf.
Debt/Credit Filing and Notes: None of note.
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:
- GERN +91%, MDGL +23.6%, ADBE -10%, PD -10%, SMAR -9%, ULTA -5%
News Items After the Close:
- Stocks making the biggest moves after hours: GERN +91%, MDGL +23.6%, AQST +14.1%, LAW +3.6%, ISRG +2.8% and lower BW -12.1%, ADBE -10%, PD -10%, SMAR -9%, ULTA -5%, ZUMZ -4.8%, EVCM -3.2%. (CNBC)
- United Airlines (UAL) close to securing at least 36 Airbus (EADSY) jets to replace Boeing (BA) Max 10 orders. (Bloomberg)
- Geron (GERN) up +88% after FDA approves Imetelstat.

Exchange/Listing/Company Reorg and Personnel News:
- Employers Holdings (EIG) Announces Michael McSally steps down as Chairman of the Board, Jeanne Mockard to replace as of March 20th.
- Delayed 10Qs or 10-Ks:
  - Skiliz (SKLZ) to delay its 10-K filing.
Buyback Announcements or News:
- CS Disco (LAW) announces share repurchase of $20 million of outstanding shares of common stock.
Stock Splits or News: None of note.
Dividends Announcements or News:
- Colgate-Palmolive (CL) increases quarterly cash dividend to $0.50 from $0.48 a share.
- Granite Point Mortgage (GPMT) decreases common stock quarterly dividend to $0.15 per share from $0.20 per share.

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

S&P 500 +7, Dow Jones +61, NASDAQ -1, and Russell 2000 +7. (as of 8:09 a.m. EST). Asia is lower ex Shanghai while Europe is higher this morning. VIX Futures are at 14.90 from 15.10 yesterday morning. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are lower with Natural Gas higher. US 10-year Treasury sees its yield at 4.271% from 4.194% yesterday morning. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $67,658 from $73,239 lower by -2.49% this morning.

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

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

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

Friday After the Close: None of note.
Monday Before the Open: None of note.

Earnings of Note This Morning:

Beats: BKE +0.15, HIBB +0.02 of note
Flat: None of note.
Misses: None of note
Still to Report: None of note.

Company Earnings Guidance:

Positive Guidance: None of note.
Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart for SPX and NASDAQ Markets:

Gap Ups & Down In Early Pre-Market:

Gap Up: GERN +80.6%, CDLX +37.9%, MDGL +24%, DESP +6.6%, WW +4.8%, AGRO +4.1%, ISRG +3.7%, PHR +3.7%, VOD +3.5%, SOPH +3.3%, GETY +3.1%, ACIU +3%, LAW +2.9%, HITI +2.4%, WPM +2.2%, CXM +2.2%, TRP +2% of note.
Gap Down: EVCM -13.2%, SMAR -12%, ADBE -11.8%, MNTK -9.6%, BLNK -8.2%, ZUMZ -8%, BW -7.8%, PD -7.6%, ULTA -6.1%, SMR -4.3%, GPMT -2.3% of note.

Insider Action: No stock 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)
Morning Briefing for Bloomberg subscribers. (Bloomberg)
Bloomberg Lead Story: Fed Seen Sticking With Three 2024 Cuts Despite Higher Inflation. (Bloomberg)
Stock futures inch higher while Treasuries selloff abates: Markets Wrap. (Bloomberg).
McDonald’s (MCD) suffers global tech outage forcing some restaurants to close operations. (CNBC)
NYT The Daily: A journey through Putin’s Russia. (Podcast)
Marketplace: Tik Tok face the hammer, Sam Altman returns to Open AI and Waymo Taxis hit Los Angeles. (Podcast)
Wealthion: Will 2024 Earnings have an explosion or implosion. (Podcast)
Adam Taggart Thoughtful Money: Perma Bear David Altman sees a crash ahead. (Podcast)

Moving Averages Update: Score is at 74%.

Geopolitical:

President’s Public Schedule:
- President receives the Daily Briefing at 9:30 a.m. EDT.
- President meets with Ireland President Leo Varadkar at 10:30 a.m. EDT.
- President delivers remarks at the Friends of Ireland Lunch at 12:30 p.m. EDT.

Economic:

March New York Empire Manufacturing Index is due out at 8:30 a.m. EDT and is expected to fall to -8.0% from -2.4%.
February Industrial Production is due out at 9:15 a.m. EDT expected to come in at 0.00% from -0.1%.
March University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and is expected to come in at 77.3 from 76.90 last month.

Federal Reserve / Treasury Speakers: None of note. Fed speakers in blackout period due to next week’s FOMC meeting.

M&A Activity and News: None of note.

Meeting & Conferences of Note:

Sellside Conferences: None of note.
- - Previously posted and ongoing conferences:
    - Bank of America Consumer & Retail Conference
    - Barclays Global Healthcare Conference
    - BTG – Latam Opportunity Conference
    - Citi India Conference
    - Citigroup TMT Conference
    - Deutsche Bank Media Internet & Telecom Conference
    - Guggenheim 5th Annual Healthy Altitudes Summit
    - Jefferies Biotech on the Bay Summit
    - J.P. Morgan Industrials Conference
    - Leerink Global Biopharma Conference
    - Oppenheimer Healthcare MedTech & Services Conference
Top Shareholder Meetings: None of note.
Fireside Chat: None of note.
Investor/Analyst Day/Calls: None of note.
R&D Day: None of note.
Company Event: None of note.
Industry Meetings: None of note.
- - Previously posted and ongoing conferences:
    - Acute Kidney Injury and Continuous Renal Replacement Therapy Conf
    - HIMSS Global Health Conference and Exhibition
    - iAccess Alpha Best Ideas Spring Virtual Conference
    - International Battery Seminar & Exhibit
    - International Conference on Advances in Critical Care Nephrology (AKI & CRRT 2024)
    - NYSE Materials Day
    - Partner Marketing Visionaries Summit
    - Society of Neuroimmune Pharmacology Conference
    - Society of Toxicology 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: