CAPIS Morning Note – 03/30/22: Stocks Down Modestly As No Progress On Ceasefire, Russia Buddies Up To China

Overnight Summary: The S&P 500 closed Tuesday at 4631.60 from 4575.52  on Monday. The S&P 500 now has a four day winning streak. Futures have been moving higher since the market closed on Monday. The overnight high was hit at 2:00 a.m. EDT at 4,627.50. The low came at 4,605 several times between 4:00 and…

Overnight Summary: The S&P 500 closed Tuesday at 4631.60 from 4575.52  on Monday. The S&P 500 now has a four day winning streak. Futures have been moving higher since the market closed on Monday. The overnight high was hit at 2:00 a.m. EDT at 4,627.50. The low came at 4,605 several times between 4:00 and 6:00 a.m. EDT. The current level is at 4,616.28 at 7:10 a.m. EDT down 12.50 points -0.27%.

Breaking News:  Germany may need to ration natural gas. Watch for ADP Payroll number at 8:15 a.m. EDT.

Earnings Out After The Close:

  • Beats: PVH +0.84, MU +0.16, PRGS +0.12, LULU +0.10, RH +0.07, SPWH +0.03, VRNT +0.02, MLKN +0.01.
  • Flat: None of note.
  • Misses: CHWY (0.07), CALM (0.02).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • Calithera Biosciences, Inc. (CALA) Prices $10.0 Million Underwritten Public Offering of Common Stock and Warrants to Purchase Common Stock.
    • GERN 53.3 million shares + warrants offering priced at $1.05.
    • IGMS 8.7 million shares offering priced at $23 PER share.
    • NWN Northwest Natural prices offering of 2.5 million shares of common stock at $50.00 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CALA: Commencement of Underwritten Public Offering of Common Stock and Warrants to Purchase Common Stock.. Leerink and Wainwright bookmanagers.
    • GERN: Proposed Public Offering of Common Stock and Warrants.. Stifel and Baird bookmanager.
    • HESM: Secondary Public Offering of Class A Shares.. 7,900,000 Class A shares .. Citi and GS Bookmanagers.
    • NWN: Common Stock Offering.. 2,500,000 shares.. WFC, JPM and RBC Bookmanagers.
    • SLGG: Filed Form 424B5.. Up to $10,100,000 in Shares of Common Stock.
    • UDR: Public Offering of 7,000,000 Shares of Common Stock.. MS and Citi bookmanagers.
    • Quantum (QMCO) commences previously announced rights offering to raise proceeds of up to $67.5 million.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • HealthStream (HSTM) files for $200 mln common stock offering; also files for $50 mln common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • VLNS: Filed Form F-10.. $150,000,000 Mixed Shelf.
    • Abcam (ABCM) files mixed securities shelf offering.
  • Convertible Offering & Notes Filed:
    • Churchill Downs Incorporated (CHDN) Announces Proposed Offering of $900 Million of Senior Notes due 2030..

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: VIR +9%, MLKN +9%, LULU +7%, HLTH +6%, MU +4%, RMO +4%.
    • Trading Down: GERN -17%, CHWY -13%, MVST -8%, NWN -6%, MTDR -4%, SPWH -4%.
  • News After The Close:
    • Stocks making the biggest moves after hours: MU, LULU, RH, CHWY (CNBC)
    • Nielsen (NLSN) agrees to $16 billion private equity takeover. (NYT)
    • Bill Ackman’s Pershing Square Has Officially “Retired” From Activist Short-Selling  (Tweet
    • US House Energy And Commerce Committee To Hold Hearing Next Week With Six Oil Company Executives On Rising Gas Prices. (Reuters)
    • South Korea reports 424,641 new coronavirus cases and 432 new deaths.
    • Cannabis stocks are hot ahead of a House panel hearing on a federal legalization bill. On Wednesday, the House Rules Committee is set to hold a hearing on the MORE Act, which would decriminalize cannabis at the federal level. MJ (CNBC)
    • Russian/Ukraine News:
      • Kinross Gold (KGC) to divest Russian assets.
  • Exchange/Listing/Company Reorg and Personnel News:
    • AMLX: Halted due to — FDA Advisory Committee Meeting to Discuss NDA for AMX0035 for the Treatment of ALS.
    • Crane Co. (CR) Announces Intention to Separate into Two Independent, Publicly Traded Companies.
    • Greenbrier (GBX) announces that President and CEO, Lorie Tekorius, has been elected to its Board of Directors.
    • Meta Financial (CASH) plans name change to “Pathward Financial”.
    • Rent-A-Center (RCII) announces management change.
    • Sunlight Financial (SUNL) Announces New Chief Financial Officer.
    • WeWork (WE) Announces New SoftBank Appointment to Board of Directors and Designates Chairman.
  • Buyback Announcements:
    • BNTX Expects to authorize share repurchase program of up to $1.5 Billion.
    • lululemon athletica (LULU) authorizes $1 billion stock repurchase program.
    • Norfolk Southern (NSC) Announces New $10 Billion Stock Repurchase Program.
    • UBS announces launch of new share repurchase program of up to $6 billion.
  • Stock Splits:
    • RH Announces Intention to Execute a 3-for-1 Stock Split.
  • Dividends Announcements: None of note.
    • BNTX Will propose a special cash dividend of €2 per share.

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

S&P 500 -8 , Dow Jones -64 , NASDAQ -44 , and Russell 2000 -3 .  Europe and Asian markets mixed.  VIX Futures are at 22.15, lower from 22.59 yesterday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures are higher  with Natural Gas flat. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.422% from 2.503%. Bitcoin is at $47,362 from $47,642  yesterday morning lower by -0.84% this morning from overnight. As of 8:05 a.m. EDT.

Tuesday’s Action – 03/29/22 Close:  

  • Daily Positive SectorsReal Estate, Consumer Cyclical, Technology, Communication Services, Industrials, Healthcare, Consumer Defensive of note.
  • Daily Negative Sectors: None 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 Basic Materials of note.
  • Year to Date Winners: Energy, Utilities, and  Basic Materials of note.

Potential ceasefire heats up the markets.  Russell 2000 leads the way up with 2.65% return.  USO still traded up, closing at 76.15 for a 2.17% return.  Updated 03/29/22 close.

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

  • Wednesday After the Close: PHR of note.
  • Thursday Before the Open: WBA, IGMS of note.

Earnings of Note This Morning:

  • Beats: BNTX +5.03, MSM +0.06, FIVE (0.01).
  • Flat: None of note.
  • Misses: AER (0.57).
  • Still to Report: CNM, PAYX.


  • Positive Guidance: SPWH, MU, LULU, MLKN, PRGS.
  • Negative Guidance: CHWY, PVH.

Erlanger Research Advance/Decline Chart: Updated through 03/29/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: HLTH +12%, VIR +11%, MLKN +9%, LULU +7%, RMO +6%.
  • Gap Down: GERN -19%, VLNS -14%, CHWY -14%, IGMS -12%, MVST -10%, NWN -6%, MTDR -4%.

Insider ActionGWRS sees Insider buying with dumb short selling. RVMD, INDT sees Insider buying with smart short sellers. 03/29/22 close.

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

  • Stocks Making The Biggest Moves: BNTX, FIVE, LULU, MU, CHWY, RH  (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • China is skeptical that sanctions on Russia will bring an end to Putin’s War. (Reuters)
  • Chinese Foreign Minister Wan Yi says willing to increase cooperation with China. (Reuters)
  • Russian Foreign Minister Lavrov lands in China for first visit since the war began. (Bloomberg)
  • Senator Joe Manchin (D-WV) does not support President Biden’s proposal for 20% minimum tax on billionaires that was part of Biden budget. (The Hill)
  • OPEC+ to keep with May output levels. (Bloomberg)
  • Australia to introduce new Cyber Security Law (FT)
  • 21 States file lawsuit to end mask mandate on airplanes and public transportation. (WSJ)
  • Taiwan Semiconductor (TSM) sees demand for smartphones and PCs is starting to slowdown. (Digitimes)
  • Kinross Gold (KGC) to divest Russian assets.
  • Robinhood Snacks looks at U.S. Tax system after Turbo Tax is sued by government over free filing claim. BeReal spreads on college campuses as takes on Instagram (FB).

Moving Average Update:

  • Score is at 96%.  We got our cow bell!  Updated 03/29/22 close.


  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:15 a.m. EDT
    • The President has lunch with The Vice President, 12:30 p.m. EDT
    • The President delivers remarks on the status of the country’s fight against COVID-19, 1:30 p.m. EDT
    • Press Briefing with Director of Communications Kate Bedingfield, 2:30 p.m. EDT


  • MBA Mortgage Applications Mar 25: -6.8% (prev -8.1%) – US MBA 30Yr Mortgage Rate Mar 25: 4.8% (prev 4.5%).
  • March ADP Employment Jobs Report is due out at 8:15 a.m. EDT and are expected to fall to 440,000 from 475,000.
  • Q4 GDP (Final Estimate) is due out at 8:30 a.m. EDT and is expected to rise to 7.1% from 7.0%.
  • EIA Petroleum Report 10:30 a.m. EDT 

Federal Reserve Speakers:

  • Federal Reserve Richmond President Thomas Barkin will speak at 9:15 a.m. EDT
  • Federal Reserve Kansas City President Esther George will speak at 1:00 p.m. EDT

M&A Activity:

  • Citi (C) Announces Agreement to Sell Its Consumer Businesses in India to Axis Bank Limited for $1.6 billion. Update: Citi says was sent in error and look for new press release later today.
  • High Tide (HITI) to Acquire Bud Heaven, Adding Two Established Retail Cannabis Stores in Ontario.
  • Skeena (SKE) Announces Acquisition of QuestEx Gold & Copper Ltd. and Concurrent Sale of QuestEx Assets to Newmont Corporation.
  • Seacoast Banking (SBCF) acquires Apollo Bancshares.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Cantor Conference Series: Rare Orphan Disease Summit
    • H.C. Wainwright & Co. Gene Editing and Therapy Conference 2022
    • Stephens Banks & the Blockchain Field Trip
    • US Capital Advisors Conference 2022
      • Previously Announced  Conferences:
        • Bank of America Global Research 23rd Annual Sun City Conference (03/29/22-03/30/22)
        • Barclays Crypto and Blockchain Summit 2022 (03/29/22-03/30/22)
        • Canaccord Genuity Tech 2022
        • Cantor Fitzgerald Virtual Rare Orphan Disease Summit 2022 (03/29/22-03/30/22)
        • Exane BNP Paribas 3rd MedTech CEO Conference 2022
        • Jefferies Pan-European Mid-Cap Conference 2022 (03/29/22-03/31/22)
        • Morgan Stanley Healthcare Corporate Access Day 2022
        • New Street Research Fiber to the Future Global Infrastructure Conference 2022
        • Piper Sandler Dental Day 2022
        • TD Securities Engineering & Construction Conference 2022
        • Credit Suisse Asian Investment Conference 2022 (03/21/22-03/30/22)
        • Guggenheim Healthcare Talks 2022 (03/16/22-04/01/22)
        • JP Morgan: European Internet Seminars 2022 (03/21/22-03/30/22)
        • Maxim Group & M-Vest Virtual Growth Conference 2022 (03/28/22-03/30/22)
        • MedInvest Pharmaceutical and Biotechnology Investor Conference 2022 (03/28/22-04/01/22)
        • National Bank Financials Metal and Mining ESG Roundtable Event 2022 (03/28/22-03/30/22)
  • Company Meetings: None of note.
  • Fireside Chat: CCL and CUK (w/ DocGo DCGO), AQMS (w/ Water Tower Research) .
  • Investor/Analyst Day/Calls: ATCO, CR, FIVE, FLEX, MSA, ORA, ORMP, REPL, SBCF, TRVI, UPH.
  • Update: None of note.
  • R&D Day: GRAY, IMVT, ROIV.
  • Company Event: ADDYY Innovation Day (03/21/22-03/30/22), INTC (Arc Graphics Launch 2022).
  • Industry Meetings:
    • 121 Mining Investment Vegas 2022 (03/30/22-03/31/22)
    • ESMOs European Lung Cancer Congress (ELCC) 2022 (03/30/22-04/02/22)
    • 31st Annual Meeting of the Society for Virology 2022 (03/30/22-04/04/22)
    • 2022 APTA High-Speed Rail Conference
    • NFT LA Conference
    • The Richmond Fed’s 2022 Investing in Rural America Conference
      • Previously Posted and Ongoing Conferences:
        • Academy of Managed Care Pharmacy (AMCP) 2022 (03/29/22-04/01/22)
        • Architecture, Engineering, and Construction Design Solutions 2022
        • Drug Information Association (DIA) Europe 2022 (03/29/22-03/31/22)
        • Tugs, Towboats & Barges Conference (03/29/22-03/30/22)
        • BIO Europe Spring 2022 (03/28/22-04/06/22)
        • International Battery Seminar 2022 (03/28/22-03/31/22)

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:


Tuesday’s Upgrades and Downgrades: