CAPIS Morning Note – 04/01/24: Futures Start The Second Quarter On A Positive Note

Overnight Summary: The S&fP 500 closed Thursday higher by 0.11% at 5254.35 from Wednesday higher by 0.86% at 5248.49. Markets were closed on Friday. The overnight high was hit at 5333.50 at 7:45 p.m. EDT while the overnight low was hit at 5312 at 6:05 p.m. EDT. The range overnight is 21 points as of […]

Overnight Summary: The S&fP 500 closed Thursday higher by 0.11% at 5254.35 from Wednesday higher by 0.86% at 5248.49. Markets were closed on Friday. The overnight high was hit at 5333.50 at 7:45 p.m. EDT while the overnight low was hit at 5312 at 6:05 p.m. EDT. The range overnight is 21 points as of 7:20 a.m. EST. The 10-day average of the overnight range is at 20.34 from 20.12. The average for May-January average was 20.88 from 20.87 during May-December. Currently, the S&P 500 is higher by 18.25 points which is 0.345 at 7:20 a.m. EDT.

Executive Summary: March ISM Manufacturing Index is out at 10:00 a.m. EDT and are expected to come in at 48.50% from 47.80% in February. Then we get Construction Spending at the same time. Typically, the first couple days of the second quarter get off to a positive start.

February Construction Spending is also due out at 10:00 a.m. EDT and is expected to rise to 0.6% from -0.20% in January.
Federal Reserve Board of Governors Lisa D. Cook 6:50 p.m. EDT

Earnings Out After The Close:

Beats: CURV +0.04 of note.
Flat: None of note.
Misses: SCHCR (0.08), OXM (0.05), SMTC (0.02) of note.

Capital Raises:

IPOs Priced or News:
- Agricultural Giant Syngenta Scraps $9 Billion Listing in China. (WSJ)
New SPACs launched/News:
- IX Acquisition Corp (IXAQ) and AERKOMM announce merger agreement and $35 million private placement.
Secondaries Priced: None of note.
Notes Priced of note: None of note.
Common Stock filings/Notes:
- ADAG: Filed Form 424B5.. Up to US$100,000,000 of American Depositary Shares Representing Ordinary Shares.
- BBAI: Filed Form S-3.. 14,800,000 Shares of Common Stock.
- CATX: Filed Form S-3.. 148,352,336? Shares of Common Stock.
- FEAM: Filed Form 424B5.. Up to $15,000,000 of Common Stock.
- KNW: Filed Form S-1.. 10,800,000 Shares of Common Stock.
- NNDM: Filed Form F-3.. $500,000,000 American Depositary Shares Representing Ordinary Shares.
- PLSE: Plans to Initiate a Rights Offering.
- SINT: Proposed Public Offering of Common Stock. (Maxim Group Placement agent)
- VCNX: Filed Form 424B5 Up to $50,000,000 Common Stock.
Direct Offering: None of note.
Selling Shareholders of note:
- AUTL: Files for 33,333,333 ADS by selling shareholder.
Private Placement of Public Entity (PIPE): None of note.
Mixed Shelf Offerings:
- ALLE: Filed Form S-3ASR – Mixed Shelf.
- ARR: FORM S-3ASR – Mixed Shelf Offering.
- CIO: FORM S-3 – $500,000,000 Mixed Shelf Offering.
- CMRE: Filed Form F-3.. $500,000,000 Mixed Shelf.
- DB: Files mixed shelf securities offering.
- HBM: FORM F-10 – Mixed Shelf Offering.
- HRZN: Filed Form N-2.. $500,000,000 Mixed Shelf.
- LTBR: Filed Form S-3.. $75,000,000 Mixed Shelf.
- NXRT: Filed Form S-3ASR – Mixed Shelf.
- OTLK: Filed Form S-3.. $300,000,000 Mixed Shelf.
- PLSE: FORM S-3 – $50,000,000 Mixed Shelf Offering.
- RAYA: FORM F-3 – 1500,000,000 Mixed Shelf Offering.
- RCMT: Filed Form S-3.. Filed Form S-3.. $75,000,000 Mixed Shelf.
- SLS: FORM S-3 – $200,000,000 Mixed Shelf Offering.
- SUI: Filed Form S-3ASR – Mixed Shelf.
Debt/Credit Filing and Notes:
- HLF: Announces Proposed Offering of $700 Million Aggregate Principal Amount of Senior Secured Notes.
- VTLE: Announces Offering of $100.0 Million of Senior Notes.
Tender Offer:
- ASML cautions investors regarding Tutanota LLC’s “mini-tender” offer.
Convertible Offering & Notes Filed:
- H World Group (HTHT) announces put right notification for 3.00% convertible senior notes due 2026.
- RNAC: Approval of Conversion of Series A Convertible Preferred Stock and Plans to Effect Reverse Stock Split.

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: MESO 131.9%, OPK 25.3%, AMRC 22.2%, SMTC 20.1%, ENTA 19.7%, GH 19.6%, TELL 19.5%, INO 19.5%, REVG 18.9%, SNBR 18.7%, RRGB 18.6%, NVCR 18.3%, CASI 18.0%, RH 17.2%, DM 17.2%, ESPR 17.0%, TNDM 17.0%, FL 16.9%.
- Trading Down: NVTA -31.3%, GDS -22.0%, AKBA -15.7%, STI -14.9%, CMP -10.3%, ACB -9.7%, NYCB -9.0%, PLCE -9.0%, FGEN -8.9%, DRQ -8.5%, NIO -8.0%, TUP -7.6%, AZUL -7.5%.
News Items After the Close:
- SP 500, Nasdaq 100 On Five-month Winning Streaks.
- UnitedHealth (UNH) announces that CFO John Rex has also been appointed to serve as President in addition to continuing as CFO.
- Beyond, Inc. (BYON) announces the relaunch of Overstock.com.
- Liquidia Technologies (LQDA) up over +5% after court win surrounding patent dispute with United Therapeutics (UTHR).
- The Score: Stocks That Defined the Week – (WSJ)
News Items Over the Weekend:
- Federal Reserve Chair Jerome Powell Reiterates Fed Doesn’t Need to Be In Hurry to Cut Rates. (Bloomberg)
- Microsoft (MSFT) and OpenAI consider producing $100 bln Stargate artificial intelligence supercomputer. (TheInformation)
- Trump Stock Takes Washington by Storm. (WSJ)
- Economic Data from Friday:
  - February February Adv. Intl. Trade in Goods -$91.84 bln — prior revised to -$90.5 billion from -$90.2 billion.
  - February Adv. Retail Inventories 0.5% vs. 0.5% prior.
  - February Wholesale Inventories 0.5%; prior revised to -0.2% from 0.1%.
  - February Personal Income +0.3% vs. 0.4% Briefing.com consensus; prior 1.0%.
  - February Personal Spending +0.8% vs. 0.5% Briefing.com consensus; prior 0.2%.
  - February PCE Index 0.3% vs. 0.4% Briefing.com consensus; prior 0.4%
  - February Core PCE Index 0.3% vs. 0.3% Briefing.com consensus; prior 0.5%
- Barron’s:
  - Positive View: CASY, MUSA, CEG, PEG, TLNE, VST, HSY, CME, UPS, TM of note.
  - Cautious View: None of note.
  - Mixed View: DJT, DKNG, FLUT of note.

Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

Exchange/Listing/Company Reorg and Personnel News:
- 3M (MMM) completed the planned spin-off of its health care business, which formally launches Solventum Corporation as an independent company. Solventum is listed on the New York Stock Exchange as SOLV.
- Expedia Group (EXPE) notes that COO Brad Bentley will now oversee consumer business following the departure of Jon Gieselman, president of Expedia Brands.
- EZGO Announces Receipt of Nasdaq Delisting Determination and Plan to Appeal.
- HarborOne Bancorp (HONE) appoints Stephen Finocchio as CFO.
- Hilton Grand Vacations (HGV) promotes Dan Mathews to President, along with the continuation on his role as CFO.
- Intrepid Potash (IPI) CFO will be leaving.
Buyback Announcements or News:
- JinkoSolar (JKS) repurchased 1,753,178 ADSs under its share repurchase program.
- Guess?, Inc. (GES) Board Authorizes New $200 Million Share Repurchase Program.
- Moving iMage Technologies (MITQ) Announces Stock Repurchase Program and 10b5-1 Stock Trading Plan.
- RCM Tech (RCMT) entered into $50 million At Market Issuance Sales Agreement with B. Riley Securities; approved a new program to repurchase shares.
- Townsquare Media (TSQ) announces repurchase of just under 10% of outstanding shares reaffirms q1’24 and fy’24 guidance.
- TrustCo Bank Corp NY (TRST) announces stock repurchase plan.
- Veritex Holdings (VBTX) announces stock buyback program of up to $50 million and investment portfolio restructuring.
Stock Splits or News:
- U Power Limited (UCAR) Announces 1-for-100 Share Consolidation.
Dividends Announcements or News:
- Ocford Industries (OXM) declared a quarterly cash dividend of $0.67 per share, a 3% increase above the previous dividend payment.
- Utz Brands (UTZ) increases quarterly cash dividend to $0.236 per share from $0.228 per share.
- Watsco (WSO) increases quarterly cash dividend 10% to $2.70 per share from $2.45 per share.

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

S&P 500 +11, Dow Jones 99+, NASDAQ +61, Russell +8. (as of 7:57 a.m. EST). Asia is lower ex Japan while Europe is higher this morning. VIX Futures are at 14.21 from 14.11 this morning. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are lower with Natural Gas lower as well. US 10-year Treasury sees its yield at 4.21% from 4.22% Thursday morning. The U.S. Dollar is higher versus the Euro, higher versus the Pound and flat against the Yen. Bitcoin is at $69.625 from $70.402 lower by -1.95% this morning.

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

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

The S&P 500 rose Thursday to cap off its best first-quarter performance since 2019. The broad U.S. stock index advanced 0.1%, notching its 22nd all-time high of the year. The Dow Jones Industrial Average added about 47 points, or 0.1%, also closing at a record. The Nasdaq Composite fell 0.1%. (WSJ – edited by QPI)

Upcoming Earnings Of Note:

Monday After the Close:

Tuesday Before the Open:

Earnings of Note This Morning:

Beats: None 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: CURV of note.

Erlanger Research Advance/Decline Chart:

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

Gap Up: CURV +15%, GUTS +7%, LQDA +7%, NKTX +6%, HBM +6%, LI +4%, IAG +4% of note.
Gap Down: APLT -13%, PLSE -12%, OXM -6%, ALLE -6% of note.

Insider Action: No stock see Insider buying with dumb short selling. No stock see 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.

5 Things To Know Before the Stock Market Opens Today. (CNBC)
What You Need To Know To Start Your Day. (Bloomberg)
Lead Story: China Industrial Upswing is the Latest Sign of Economic Recovery. (Bloomberg)
Stocks rally with gold on rate cut hopes: Markets Wrap. (Bloomberg)
NC State made the Final Four as an 11 side beating fellow ACC member Duke. Could this be a replay of the 1983 Wolfpack team led by Jim Valvano? (ESPN)
Tesla has Wall Street worried about how many cars it just sold. (Bloomberg)
UPS to become the U.S. Postal Services primary air cargo provider, replacing FedEx. (CNBC)
Gold hits fresh record high. (MarketWatch)
Bloomberg: The Big Take: Bridgewater’s CEO turnaround hinges on wooing restless clients. (Podcast)
NYT The Daily: Ronna McDaniel, TV news and the Trump problem. (Podcast)
Marketplace: Who benefits from a National AI Program? (Podcast)
Wealthion: Don Lemon on Elon Musk and free speech and the medial with Anthony Scaramucci. (Podcast)
Adam Taggart Thoughtful Money: Shrinking money supply = recession. (Podcast)

Moving Average Update: Score inches down to 94% from 97%.

Geopolitical:

President’s Public Schedule:
- The President receives the President’s Daily Brief, 8:00 a.m. EDT
- The President and The First Lady host the 2024 White House Easter Egg Roll; The Vice President and the Second Gentleman attend, 10:25 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 12:00 p.m. EDT

Economic:

PMI Mfg Final 9:45 a.m. EDT
March ISM Manufacturing Index is out at 10:00 a.m. EDT and are expected to come in at 48.50% from 47.80% in February.
February Construction Spending is also due out at 10:00 a.m. EDT and is expected to rise to 0.6% from -0.20% in January.

Federal Reserve / Treasury Speakers:

Federal Reserve Board of Governors Lisa D. Cook 6:50 p.m. EDT

M&A Activity and News:

Doma (DOMA) Enters into Agreement to Go Private at Price of $6.29 Per Share in Cash; Plans to Merge with an industry leader TRG to Create Attractive Scale Opportunities.
Rexford Industrial Realty (REXR) acquires Blackstone (BX) industrial assets in combined $1 billion investment.

Meeting & Conferences of Note:

Sellside Conferences: None of note.
- - Previously posted and ongoing conferences: None of note.
Top Shareholder Meetings: ALLR, ARRW, IFS, LGVC
Fireside Chat: None of note.
Investor/Analyst Day/Calls: LAES, PRPO
Update: None of note.
R&D Day: None of note.
Company Event: None of note.
Industry Meetings:
- International Conference on Display Technology (ICDT)
- Spinal Cord Injury Investor Symposium
- Mayte Spnola Gold Medal
  - 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: