CAPIS Morning Note – 04/11/22: Stocks Lower. Earnings Season Begins in Earnest Wednesday With Bank Stocks.

Overnight Summary: The S&P 500 closed Friday at 4488.28 from 4500.21  on Thursday. Futures have been moving lower most of the night. The overnight high was hit at 3:50 a.m. EDT at 4,482. The low was hit at 4,450 at 1:30 a.m. EDT. At 7:05 a.m. EDT the current price is 4468 down -15.25 which…

Overnight Summary: The S&P 500 closed Friday at 4488.28 from 4500.21  on Thursday. Futures have been moving lower most of the night. The overnight high was hit at 3:50 a.m. EDT at 4,482. The low was hit at 4,450 at 1:30 a.m. EDT. At 7:05 a.m. EDT the current price is 4468 down -15.25 which is 0.34%.

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: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ALLT: Filed Form F-3..Up to 12,785,917 Ordinary Shares.
    • Crescent Energy (CRGY) files for $75 million common stock offering.
    • HTGM: Filed Form S-3.. 9,734,961 shares of Common Stock.
    • NRXP: Filed Form S-1,, 7,824,727 Shares of Common Stock 8,215,963 Shares of Common Stock Issuable Upon Exercise of Preferred Investment Options.
    • ZH: Filed Form 424B5.. 26,000,000 Class A Ordinary Shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • Celsion Corporation (CLSN) Announces Closing of $7.0 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • BDSX private placement. 6.5 Million shares at $1.79/share
  • Mixed Shelf Offerings:
    • ADAP: Filed Form S-3.. $400 Million Mixed Security Shelf.
    • AUUD: Filed Form S-3.. $50 Million Mixed Shelf
    • GBS: Filed Form S-3.. $100 Million Mixed Shelf
    • QRHC: Filed Form S-3.. $125 Million Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • Contango ORE (CTGO) Announces Agreement to Issue $20,000,000 Unsecured 8% Convertible Debenture.
    • SPI Energy (SPI) Issues $2.11 Million 10% Convertible Promissory Note with $20 per Share Conversion Price.

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 Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: IPI 31%, AFI 26%, OLLI 20%, SAVE 20%, EURN 18%, BKI 18%, LXRX 15%, DHT 13%, BRY 13%, ESPR 13%, BPT 13%, ASMB 13%, MOS 13%, CNDT 12%, NEO 11%, AZO 11%, TGT 11%, CDK 11%, PSMT 11%.
    • Trading Down: VAPO -53%, RUBY -43%, BCRX -33%, MATX -24%, RYTM -22%, EPZM -22%, CRBP -21%, AXDX -21%, AMBC -20%, JBLU -20%, AKBA -20%, GDS -20%, AAWW -19%, PI -19%, NVAX -18%.
  • News Items After the Close:
    • China will strengthen anti-monopoly measures, especially to avoid big-platform enterprises conducting inappropriate competitions via adopting data, algorithms, and other tech measures.
    • At least 23 cities in China on full or partial lockdown, covering 193 million people. (Reuters)
    • Apple (AAPL) boosts prices on app store in some countries.
    • Target (TGT) tiptoes back into resale with new ThredUp (TDUP) deal, as it makes sustainability push (CNBC)
    • Russian/Ukraine News:
      • President Biden signs bill to ban energy imports from Russia & end normal trade relations with Russia.
      • UK Prime Minister Boris Johnson makes surprise visit to Kyiv for meeting with Ukrainian President Zelensky.
  • News Items Over the Weekend:
    • Stocks That Defined the Week: TWTR, SBUX, JBLU, SHEL, CAG, HPQ, WMT  (WSJ)
    • The Week in Business: Elon Musk’s Newest Venture (TSLA TWTR)  (NYT)
    • AT&T (T) and Discovery close WarnerMedia transaction.
    • Recession Risk Is Rising, Economists Say (WSJ).
    • Tesla (TSLA)  CEO Elon Musk turned down offer to join Twitter’s (TWTR) board of directors. (MarketWatch)
    • April could be a great month for stocks — if you believe in magic (MarketWatch)
    • Barron’s:
      • Positive View: SHOP, SQ, PYPL, BILL, FIS, FISV, FLYW, GPN, MQ, PAY, TOST, FLT, WEX, HPQ, DAL, GD.
      • Cautious View: TWTR.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Endurance Acquisition Corp. (EDNC) merger partner SatixFy announced that the company’s Co-Founder, Co-Chairman and CEO Yoel Gat passed away on April 8, 2022.
    • Enjoy Technology (ENJY) Announces Chief Financial Officer Transition.
    • Entegris (ENTG) COO Todd Edlund to retire after nearly 30 years of service.
    • Fannie Mae (FNMA) Board Chair Sheila Bair plans to resign May 1.  The Board elects Michael Heid to succeed her.
    • Lowe’s (LOW) appoints Brandon Sink as CFO and Executive Vice President. (MarketWatch)
    • Pfizer (PFE) Names David M. Denton Chief Financial Officer.
    • RLX Technology (RLX) Announces Changes to Board Committee Composition.
  • Buyback Announcements:
    • China Automotive Systems (CAAS) Announces Share Repurchase.
    • NVIDIA (NVDA) -Board recommends to vote for approval of proposed amendment to increase number of authorized shares of common stock from 4 billion to 8 billion shares.
  • Stock Splits: 
    • Shopify (SHOP) to split A and B shares 10:1. Also creates Founder shares of 40% for Tobi Lutke, founder and CEO.
  • Dividends Announcements:
    • AMERCO (UHAL) Announces Special Cash Dividend of $0.50 per share.

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

S&P 500 -26, Dow Jones -111, NASDAQ -147,  and Russell 2000 -5.  Europe mixed and Asian lower.  VIX Futures are at 24.95 from 24.69 Friday morning. Gold and Silver higher with Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.757% from 2.67%. Bitcoin is at $41.446 from $43,300  on Friday morning lower by -4.09% this morning. As of 8:07 a.m. EDT.

Friday’s Action – 04/08/22 Close:  

  • Daily Positive Sectors: Energy, Financial, Basic Materials, Consumer Defensive, Utilities of note.
  • Daily Negative Sectors: Technology, Consumer Cyclical, Communication Services, Industrials of note.
  • One Month Winners: Healthcare, Consumer Defensive, and Utilities 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.

Indexes finished mixed on Friday with the Dow Industrials climbing back up and the NASDAQ finishing down 0.47%.  All indexes finished down for the full week ending 04/08/22.  TLT continued down finishing at 125.12 (1.37% down).  Updated 04/08/22 close.

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

  • Monday After the Close: None of note.
  • Tuesday Before the Open: KMX, ACI of note.

Earnings of Note This Morning:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: SIMO, ASX of note.
  • Negative Guidance: none of note.

Erlanger Research Advance/Decline Chart: Updated through 04/08/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: VERU +33%, SAIL +27%, AFMD +15%, SURF +4%.
  • Gap Down: NIO -8%, XPEV -7%, LI -5%, NRXP -4%, ZH -4%.

Insider Action: NLSN sees Insider buying with dumb short selling.  JELD, PRTY, ET sees Insider buying with smart short sellers. 04/07/22 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: NIO SAIL VERU NVDA  (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • France will see a runoff election between French President Emmanuel Macron and Marine Le Pen on April 24th. (NYT)
  • Russia is expected to make a major push in Eastern Ukraine. (NYT)
  • China is speeding up development of nuclear weapons due to world conflict. (WSJ)
  • Shanghai sees lockdown continue and there are food shortages appearing. (FT)
  • Federal Reserve Cleveland President Loretta Mester sees inflation remaining above 2% in 2023. (CBS News)
  • U.S. increases restrictions on fertilizers and pipes from Russia. (Reuters)
  • JetBlue (JBLU) and Alaska Air (ALK) will reduce summer schedules. (WSJ)
  • Nio (NIO) has stopped production amid supply chain problems. (Reuters)
  • Shell (SHEL) is owed $1.7 billion from a key producer. (Bloomberg)
  • BMW (BMWYY) sees chip shortages into 2023 (Reuters)

Moving Average Update:

  • Score drops down to 20% from 30%.  Updated 04/08/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President departs New Castle, Delaware en route the White House, 8:55 a.m. EDT
    • The President receives the President’s Daily Brief, 10:00 a.m. EDT
    • The President meets virtually with Prime Minister Narendra Modi of India to further deepen ties between our governments, economies, and people, 11:00 a.m. EDT
    • Press Briefing by Press Secretary Jen Psaki, 1:00 p.m. EDT
    • The President announces new action by his Administration to fight gun crime; The Vice President and Deputy Attorney General Lisa Monaco also deliver remarks, 2:15 p.m. EDT

Economic

  • Treasury holds a 2 Year Auction at 1:00 p.m. EDT.

Federal Reserve Speakers:

  • Federal Reserve New York President John Williams 12:00 p.m. EDT
  • Federal Reserve Chicago President Charles Evans 12:40 p.m. EDT
  • Federal Reserve Governor Michelle Bowman speaks at 9:30 a.m. EDT.

M&A Activity:

  • Goldman Sachs (GS) acquires NN Investment Partners from NN Group N.V. for EUR 1.7 billion.
  • International Game Technology PLC (IGT) Announces Agreement to Acquire iSoftBet.
  • Thoma Bravo Will Pay $65.25 A Share For Sailpoint (SAIL), a $6.9 billion deal.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Needham and Company 21st Annual Healthcare Conference 2022 (04/11/22-04/14/22)
    • Previously Announced  Conferences:
      • None of note.
  • Company Meetings: GT.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: VBLT.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • China Cell Biology Annual Conference 2022 (04/11/22-04/15/22)
    • American Organization of Nursing Leadership (AONL) 2022 Conference (04/11/22-04/14/22)
      • Previously Posted and Ongoing Conferences:
        • American Association for Cancer Research Annual Meeting (AACR) 2022 (04/08/22-04/13/22)
        • IFCC-EFLM European Congress of Clinical Chemistry and Laboratory Medicines (EuroMedLab) 2022 (04/10/22-04/14/22)
        • Society for Inherited Metabolic Disorders 43rd Annual Meeting 2022 (04/10/22-04/13/22)

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:

      

Friday’s Upgrades and Downgrades: