CAPIS Morning Note – 04/14/22: Stocks Flat Into The Long Weekend. Musk Offers To Buy Twitter (TWTR)

Please note: We will not be publishing Friday morning with the markets closed in observance of Good Friday. Overnight Summary: The S&P 500 closed Wednesday at 4446.59 from 4397.45 on Tuesday up 1.12%. Futures have been flat most of the night. The overnight high was hit at 2:00 a.m. EDT at 4,455. The low was…

Please note: We will not be publishing Friday morning with the markets closed in observance of Good Friday.

Overnight Summary: The S&P 500 closed Wednesday at 4446.59 from 4397.45 on Tuesday up 1.12%. Futures have been flat most of the night. The overnight high was hit at 2:00 a.m. EDT at 4,455. The low was hit at 4,436 at 5:55 a.m. EDT, a range of 20 points high to low. At 7:20 a.m. EDT the current price is 4442.25 which is 0.00%.

Breaking News: European Central Bank ends bond buying due to inflation surge.

Earnings Out After The Close:

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

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • Sonic Foundry (SOFO) Announces Pricing of $4.3 Million Public Offering
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • SOFO: Filed Form 424B5.. Common Stock
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • Oncocyte Corporation (OCX) Announces Pricing of Registered Direct Offering of 11,765 Shares of Series A Convertible Preferred Stock.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ES: Filed Form S-3ASR.. Mixed Shelf Offering.
    • FSBW: Filed Form S-3.. $100,000,000 Mixed Shelf.
    • NXGL: Filed Form S-3.. $75Mixed Security Shelf.
  • 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: 
    • Trading Up: ANSS +3%.
    • Trading Down: PTGX -40%, OCX -18%, CMBM -14%, RENT -4%.
  • News Since The Close:
    • Federal Reserve Governor Waller sees likelihood of multiple half-point interest rate hikes ahead BUT also thinks that inflation may be near a peak. (CNBC)
    • Twitter (TWTR) stock soars after Elon Musk discloses buyout bid at 18% premium. (MarketWatch)
    • Rent the Runway (RENT) gives back gains after Q4 report that tops views. (MarketWatch)
    • JP Morgan’s (JPM) new Manhattan HQ will be New York City’s biggest all-electric tower with zero emissions. (MarketWatch)
    • Russian/Ukraine News:
      • Dutch Government says will instruct companies not to pay for Russian gas in Rubles. (Spokesperson)
  • Exchange/Listing/Company Reorg and Personnel News:
        • Cambium Networks Corporation (CMBM) Names Andrew Bronstein CFO.
        • Credit Acceptance (CACC) Announces Andrew Rostami as Chief Marketing and Product Officer.
        • eBay (EBAY) Names Eddie Garcia Chief Product Officer.
        • EDIT appoints Gilmore O’Neill as CEO O’Neill most recently served as Executive Vice President of R&D and Chief Medical Officer at SRPT.
        • New Found Gold Corp (NFGC) appoints Collin Kettell as CEO.
        • Unisys (UIS) appoints Debra McCann as Chief Financial Officer, Mike Thomson as President and Chief Operating Officer.
  • Buyback Announcements:
    • Argan (AGX) increases existing share repurchase program to $75 million from $50 million.
    • Dow (DOW) announces new $3 billion share repurchase program. (MarketWatch)
    • Ranger Oil (ROCC) Announces $100 Million Share Repurchase Program.
    • The Simply Good Foods Company (SMPL) Increases Share Repurchase Authorization.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Costco Wholesale Corporation (COST) Announces an Increase In Its Quarterly Cash Dividend of $0.90 per share, a 13.9% increase. (MarketWatch)
    • Dow (DOW) declares quarterly dividend of 70 cents per share. (MarketWatch)

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

S&P 500 -8, Dow Jones +53, NASDAQ -17,  and Russell 2000 -3 .  Europe and Asian higher.  VIX Futures are at 24.26 this morning. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.68% from 2.727%. Bitcoin is at $40,999 from $39,967  on Wednesday morning lower by -0.39% this morning. As of 8:07 a.m. EDT.

Tuesday’s Action – 04/13/22 Close:  

  • Daily Positive Sectors: Consumer Cyclical, Technology, Basic Materials, Energy, Communication Services, Industrials of note.
  • Daily Negative Sectors: None 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.

Stocks closed near session highs with strong gains as earnings season starts.  NASDAQ jumped 2.03%.  USO and UNG were up 3.21% and 5.21%.  Updated 04/13/22 close.

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

  • Thursday After the Close: FNB of note.
  • Monday Before the Open: BAC, SCHW, SYF, ONB of note.

Earnings of Note This Morning:

  • Beats: GS +1.78, TSM +0.65, PNC +0.51, MS +0.30, UNH +0.14, ALLY +0.10, STT +0.09, WFC +0.08, USB +0.05.
  • Flat: None of note.
  • Misses: RAD (1.06), ERIC (0.50).
  • Still to Report: C, PGR.

Guidance:

  • Positive Guidance: ASH, TS,, RAD of note.
  • Negative Guidance: DAL, NSTG, CMBM, RENT of note.

Erlanger Research Advance/Decline Chart: Updated through 04/13/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: SMPL +4%, AGX +3%.
  • Gap Down: PTGX -28%, CMBM -12%, OCX -12%, ERIC -6%.

Insider Action: LAB, JAKK sees Insider buying with dumb short selling.  WULF, JELD sees Insider buying with smart short sellers. 04/13/22 close.

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

  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Former U.S. Treasury Secretary and Harvard Professor Larry Summers calls for a recession not a soft landing. (Bloomberg)
  • Federal Reserve looks to “jumbo” rate hikes, i.e. 50 basis points, as being seen as too soft. (Bloomberg)
  • Russia says will move nuclear weapons near Baltic Sea if Finland and Sweden join NATO. Ukraine missile damaged Russian Moskva Cruiser in the Black Sea. (Bloomberg)
  • Goldman Sachs (GS) crushes estimates as trading desks benefit from rise in volatility. (CNBC)
  • Morgan Stanley (MS) also beats estimates on trading revenues. (CNBC)
  • Starbucks (SBUX) to expand worker benefits to non Union employees. (WSJ)
  • Tencent (TCEHY) to block unapproved games to placate China. (Reuters)
  • Nio (NIO) gradually begins to resume production after Chinese lockdowns. (CNBC)
  • Robinhood Snacks looks at the weak launch of CNN+ which is part of WBD now. Etsy (ETSY) sellers strike this week as transaction fees rise from 5% to 6.5%.

Moving Average Update:

  • Score gets of the mat from 0% to 23%.  “Don’t call it a comeback”…thanks LL Cool J!  Updated 04/13/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:00 a.m. EDT
    • The President departs the White House en route Joint Base Andrews and Greensboro, North Carolina, 10:40 a.m. EDT
    • The President arrives in Greensboro, North Carolina, 12:20 p.m. EDT
    • The President visits the Harold L. Martin Sr. Engineering Research & Innovation Complex and meets faculty and students studying robotics and cybersecurity, 1:05 p.m. EDT
    • The President delivers remarks on his Administration’s efforts to rebuild supply chains and lay a foundation for an economic renewal that’s made in America through the Bipartisan Innovation Act and Bipartisan Infrastructure Law, 2:15 p.m. EDT
    • The President departs Greensboro, North Carolina en route Hagerstown, Maryland, 3:30 p.m. EDT
    • The President arrives in Hagerstown, Maryland, 4:25 p.m. EDT
    • The President arrives at Camp David, 5:10 p.m. EDT

Economic: 

  • Initial Jobless Claims 8:30 a.m. EDT
  • Import and Export Prices 8:30 a.m. EDT 
  • Business Inventories 10:00 a.m. EDT
  • April University of Michigan Sentiment Consumer Sentiment is due out at 10:00 a.m. EDT and is expected to fall to 58.8 from 59.40.
  • EIA Natural Gas Report 10:30 a.m. EDT  
  • Baker Hughes Rig Count 1:00 p.m. EDT 
  • March Retail Sales is due out at 3:00 p.m. EDT and is expected to rise to 0.6% from 0.3%.

Federal Reserve Speakers:

  • Federal Reserve Cleveland President Loretta Mester 2:30 p.m. EDT
  • Federal Reserve Philadelphia President Patrick Harker 6:00 p.m. EDT

M&A Activity:

  • ANSYS (ANSS) agrees to acquire cloud simulation provider OnScale.
  • Aviat Networks (AVNW) Announces Intent to Acquire Redline Communications.
  • Cummins (CMI) Completes Acquisition of Jacobs Vehicle Systems.
  • Cushman & Wakefield (CWK) announces acquisition of Sheffield Property and Sheffield Asset Management.
  • Genuine Parts (GPC) announces acquisition of Lausan Group.
  • Instructure (INST) Acquires Concentric Sky, Makers of Badgr, Adding Stackable Digital Credentialing Technology to the Instructure Learning Platform.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Canaccord Genuity 2022 Horizons in Oncology Virtual Conference
      • Previously Announced  Conferences:
        • Imperial Capital 2nd annual Advanced Manufacturing & Supply Chain Conference (AMSCC) 2022 (04/13/22-04/14/22)
        • Generis American Biomanufacturing Summit 2022 (04/13/22-04/14/22)
        • Cantor US Cannabis Conference 2022 (04/12/22-04/14/22)
        • Needham and Company 21st Annual Healthcare Conference 2022 (04/11/22-04/14/22)
  • Company Meetings: ADBE, DOW, OC.
  • Fireside Chat: TALO w/ Water Tower Research.
  • Investor/Analyst Day/Calls: ACHL, ADTX, AEZS, AMPG, AVNW, CNSP, FNV, GILD, OOMA, RAD.
  • Update: NAVB.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • New York International Auto Show 2022 (04/15/22-04/24/22)
      • Previously Posted and Ongoing Conferences:
        • ElectraMeccanica New York Drive Event 2022 (04/13/22-04/14/22)
        • 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)
        • Gold Forum Europe – Virtual 2022 (04/12/22-04/14/22)
        • IFCC-EFLM European Congress of Clinical Chemistry and Laboratory Medicines (EuroMedLab) 2022 (04/10/22-04/14/22)

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:

      

Wednesday’s Upgrades and Downgrades: