CAPIS Morning Note – 03/18/24: Stocks Start The Week On A Positive Note

Overnight Summary: The S&P 500 closed Friday lower by -0.65% at 5182.75 from Thursday lower by -0.30% at 5150.48. The overnight high was hit at 5203.50 at 5:05 a.m. EDT while the overnight low was hit at 5181.75 at 8:10 a.m. EST. The range overnight is 21.75 points as of 6:40 a.m. EST. The 10-day…

Overnight Summary: The S&P 500 closed Friday lower by -0.65% at 5182.75 from Thursday lower by -0.30% at 5150.48. The overnight high was hit at 5203.50 at 5:05 a.m. EDT while the overnight low was hit at 5181.75 at 8:10 a.m. EST. The range overnight is 21.75 points as of 6:40 a.m. EST. The 10-day average of the overnight range is at 21.35 from 21.05.  The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by +19.25 points at 6:35 a.m. EDT.

Executive Summary: Markets are higher to start the week despite FOMC announcement on Wednesday at 2:00 p.m. EDT.
  • March NAHB Housing Market Index is due out at 10:00 a.m. EDT and is expected to come in at 49 from 48 in February.

Earnings Out After The Close: 

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
  • Secondaries Priced:
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ADCT filed 4,412,840 shares of common stock.
    • MBIO filed common stock and warrants.
    • SEEL filed 3,404,256 shares of common stock.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
  • Private Placement of Public Entity (PIPE):
  • Mixed Shelf Offerings:
    • CCI filed a mixed-shelf offering.
    • ORCL filed a mixed-shelf offering.
    • VVI filed a mixed-shelf offering.
    • CSL filed a $250 million mixed-shelf offering.
    • KIDS filed a $250 million mixed-shelf offering.
    • LICY filed a $200 million mixed-shelf offering.
    • PRCH filed a $100 million mixed-shelf offering.
    • SLND filed a $150 million mixed-shelf offering.
    • SPRO filed a $300 million mixed-shelf offering.
  • Debt/Credit Filing and Notes: None of note.
  • Tender Offer:
  • Convertible Offering & Notes Filed:

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Weekend:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: STI 129.6%, SIGA 48.7%, COMM 27.2%, PRQR 22.0%, TOUR 21.5%, SCCO 19.2%, DESP 19.1%, GDS 18.8%, FGEN 18.6%, SBNY 18.2%, BEAT 18.1%, REI 18.0%, HRTX 17.5%, BZUN 17.0%, DKS 16.6%, LXRX 15.7%, NGD 15.7%, SLDB 15.4%, AKBA 15.0%, NYCB 14.8%.
    • Trading Down: CASI -34.5%, GRPN -30.6%, RILY -23.7%, RUN -22.4%, ACAD -22.0%, TPIC -21.8%, CMTL -21.4%, URGN -21.0%, SNBR -19.8%, JBL -19.6%, NDLS -19.4%, GLT -19.3%, SEDG -18.1%, LUV -17.9%, IGT -17.8%.
  • News Items After the Close:
    • FTC to look at Reddit (RDDT) licensing of user data to AI firms. (Axios)
    • FDA Panel votes to expand use of CAR-T Therapy by Bristol Myers (BMY). (Reuters)
    • Ratings agency affirms Spain’s rating at A/A-1 with outlook stable.
    • Hashicorp (HCP) is considering a sale. (Bloomberg)
    • The Score: Stocks That Defined the Week – LUV, AA, UAL, ALK, ORCL, DLTR, MCD, UA, X (WSJ)
  • News Items Over the Weekend:
    • Putin wins presidential election in Russia. (FT)
    • Lawmakers continue to work on six spending bills ahead of March 23rd deadline. (CNN)
    • Gangs in control of Haiti. (CNN)
    • Israeli President Netanyahu confronts Senate Minority Leader Schumer over comments, saying will move forward with war against Gaza. (NYT)
    •  Barron’s:
      • Positive View:  BBWI, BURL, RL, TJX, ANF, DECK, ORX, ORCL, HOG, NWL, VSCO, KSS, SRPT, QS, UAA, TDOC, MKC of note.
      • Cautious View: None of note.
      • Mixed View: None of note.
  • Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

  • Exchange/Listing/Company Reorg and Personnel News:
    • Hertz (HTZ) CEO Stephen Scherr to step down and Gil West to step in as new CEO on 4/1.
    • 10-k Filing Delays INSE SRG PWFL INTT NEWT AMTX MPB AVD TCX MOND BSRR.
  • Buyback Announcements or News: 
  • Stock Splits or News:
  • Dividends Announcements or News:

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

S&P 500 +42, Dow Jones +85, NASDAQ +219, and Russell 2000 +10.18.  (as of 8:01 a.m. EST).  Asia and Europe are higher this morning. VIX Futures are at 14.41 from 15.10 Friday morning.  Gold, Silver and Copper are lower this morning. WTI Crude Oil and Brent Crude Oil are higher along with Natural Gas. US 10-year Treasury sees its yield at 4.308% from 4.081% Friday morning. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $68,029 from $71,759 lower by -0.43% this morning.

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

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

The S&P 500 fell on Friday and notched its second-straight weekly loss, with technology stocks under pressure as inflation concerns remain front and center ahead of the Federal Reserve’s policy meeting next week.  The broad market index lost 0.65% to close at 5,117.09. The Dow Jones Industrial Average dipped 190.89 points, or 0.49%, to finish the session at 38,714.77, while the Nasdaq Composite slipped 0.96% to 15,973.17.  The S&P 500 shed 0.13% this week. The 30-stock Dow inched lower by 0.02% on the week, and the Nasdaq slipped 0.7%.  (WSJ – edited by QPI)

  

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

  • Monday After the Close: DLO STNE
  • Tuesday Before the Open: CAL EXK HUYA TME

Earnings of Note This Morning:

  • Beats: ERJ +0.37 of note.
  • Flat: None of note.
  • Misses:  SAIC -0.04 of note.
  • Still to Report: None of note.

Company Earnings Guidance:

  • Positive Guidance: None of note.
  • Negative Guidance: None of note.
  • Mixed Guidance: SAIC of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market (+2$ or down more than -2%):

  • Gap Up:  NVEI +16.1%, HCP +11.2%, FENC +8%, OPTN +4.3%, LVO +4.3%, FF +4%, WEST +3.9%, GOEV +3.6%, QD +3.6%, CSTL +3.4%, TSLA +3.3%, MNTX +3.1%, BEP +3%, KALV +2.8%, VVI +2%, CCI +2%of note.
  • Gap Down: RILY -10.7%, LOGI -7.8%, NIU -4.5%, SRG -2.5%, LEGH -2.5%, SN -2.4%, MOND -2.3%, HLN -2.2% 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)
  • Stocks making the biggest moves this morning . (CNBC)
  • Morning Briefing for Bloomberg subscribers. (Bloomberg)
  • Bloomberg Lead Story:  Apple in Talks To Let Google Gemini Power iPhone AI Features. (Bloomberg)
  • U.S. stock markets rise with Fed in focus, Alphabet higher: Markets Wrap. (Bloomberg)
  • How to invest in Japan as BOJ to hike rates. (Bloomberg)
  • Tesla (TSLA) CEO Elon Musk notes that Model Y’s price will rise by $1000 in a few weeks. (NY Post)
  • Bloomberg The Big Take: Powell’s silence frustrates markets. (Podcast)
  • NYT The Daily:  Your car may be spying on you. (Podcast)
  • Marketplace: TikTok beware of the Ides of March. (Podcast)
  • Wealthion: Bitcoin ETF Surge. (Podcast)
  • Adam Taggart Thoughtful Money: Easy gains are over Michael Howell. (Podcast)

Moving Average Update: Score drops to 48% from 74%.

Geopolitical: 

  • President’s Public Schedule:
    • President Biden to deliver remarks at Women’s History Month reception at the White House at 11:30 a.m. EDT.
    • Press Briefing at 1:30 p.m. EDT.
    • Presidential Daily Briefing at 3:15 p.m. EDT with the president and vice president attending.

Economic:

  • March NAHB Housing Market Index is due out at 10:00 a.m. EDT and is expected to come in at 49 from 48 in February.

Federal Reserve / Treasury Speakers: None of note. Fed Blackout period still in effect into this w eek’s announcement.

M&A Activity and News:

Meeting & Conferences of Note:

  • Sellside Conferences:
      • Previously posted and ongoing conferences:
        • Bank of America Electronic Payments Symposium.
        • Morgan Stanley Latin America Executive Conference.
        • Piper Sandler Energy Conference
        • Roth Investor Conference
  • Top Shareholder Meetings:
  • Fireside Chat: VRNO of note.
  • Investor/Analyst Day/Calls: AEE STAA 
  • Update: ISRG of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
      • Previously posted and ongoing conferences: None of note.

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: