CAPIS Morning Note – 04/18/22: Busy Earnings Week Ahead, Stocks Look To Start Lower But Off Morning Lows

Overnight Summary: The S&P 500 closed Thursday at 4392.59  from 4446.59  on Wednesday down -1.21%. Futures have been lower most of the night. The overnight high was hit at 6:05 p.m. EDT last night at 4,390. The low was hit at 4,355.50 at 8:05 a.m. EDT, a range of 45 points high to low. At…

Overnight Summary: The S&P 500 closed Thursday at 4392.59  from 4446.59  on Wednesday down -1.21%. Futures have been lower most of the night. The overnight high was hit at 6:05 p.m. EDT last night at 4,390. The low was hit at 4,355.50 at 8:05 a.m. EDT, a range of 45 points high to low. At 7:25 a.m. EDT the current price is 4379.75 which is -0.18% and -7.75.

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:
    • Fat Projects Acquisition Corp (FATP) Delays Filing of Annual Report on Form 10-K.
    • East Stone Acquisition Corp (ESSC) announces business combination with ICONIQ Holding.
  • Secondaries Priced:
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CDNA: Filed Form 424B5.. $200,000,000 Common Stock.
    • CLNN: Form 8K.. equity distribution AGREEMENT $50 Million.
    • CNTB: Filed Form F-3.. Up to $300,000,000 of American Depositary Shares.
    • DBGI: Filed Form S-1.. Common Stock filing.
    • DRTS: Filed Form F-1.. Primary offering of 15,771,733, ordinary shares secondary offering of 9,251,006.
    • FHTX: Filed Form 424B5.. $200,000,000 Common Stock.
    • HGEN: Filed Form 424B5.. Up to $75,000,000 Common Stock.
    • PTRA: Filed Form S-1..  125,389,111 Shares of Common Stock.
    • RDW: $80 Million B. Riley Committed Equity Facility.
    • TOPS: Filed Form 424B5.. Up to $19,700,000 of Common Shares.
    • WEJO: Filed Form S-1.. 18,780,646 common shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • Kintara (KTRA) Announces Closing of $8.6 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules.
    • LIXTE Biotechnology (LIXT) Announces the Closing of $5.8 Million Registered Direct Offering Priced At-The-Market.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • AIHS: Filed Form S-3.. $150,000,000 Mixed Shelf.
    • AUGX: Filed Form S-3.. $125,000,000 Mixed Shelf.
    • HST: Filed Form S-3ASR .. Mixed Shelf Offering.
    • SGTX: Filed Form S-3.. $50,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • Targa Resources Corp. (TRGP) Announces Full Redemption of its 9.5% Series A Preferred Stock.

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: SRRA 43%, ATRS 41%, HPK 37%, TPTX 33%, METC 22%, SAIL 22%, CXW 20%, BTU 19%, AVNW 17%, ZIMV 17%, FOSL 14%, CRK 14%, BBWI 13%, EQT 11%, LPLA 10%.
    • Trading Down: FULC -38%, NSTG -35%, ZNTL -22%, MYOV -22%, RMBL -21%, PTGX -21%, VLD -20%, AMRC -18%, VAXX -17%, BLFS -16%, MOMO -15%, CRDO -15%, INFY -14%, RIDE -13%, INBX -13%, BRFS -12%, CAN -11%.
  • News Items After the Close:
    •  Twitter (TWTR) board adopts poison pill as Musk takeover defense.  Twitter said the move aims to enable its investors to “realize the full value of their investment” in the company by reducing the likelihood that any one person can gain control without paying shareholders a premium or giving the board more time.
    • DIDI: To organize a shareholders meeting to vote on the voluntary delisting of the Company’s American Depositary Shares (ADSs) from the New York Stock Exchange as soon as practicable.
    • NYC expected to upgrade COVID-19 alert to ‘medium risk’ — NY POST
    • Russian/Ukraine News:
      • Russia Says Mariupol Urban Areas Are Cleared of Ukrainian Troops.
      • Russia warns U.S. to stop arming Ukraine. (Washington Post)
      • US Secretary of State Blinken said to have told European officials that US believes the war in Ukraine could last through the end-2022. (CNN)
  • News Items Over the Weekend:
    • Stocks That Defined the Week: TWTR, MS,  ETSY, DAL, BBBY, PTON, GOOG  (WSJ)
    • The Week in Business: Housing Market Gets Squeezed.  (NYT)
    • President Biden nominates Michael Barr as the next Vice Chair for Supervision of the Federal Reserve.
    • Uber (UBER) ‘taking advantage’ of unsafe NYC with astronomical fares: outraged riders. (NY Post)
    • Crypto Payments Are Frozen Across India, Hitting Trading – (Bloomberg)
    • Peloton (PTON) lowers the price for bikes and treadmills, raises the price on membership in North America. (MarketWatch)
    • Activision Blizzard (ATVI) discloses “Activision Blizzard received a voluntary request for information from the SEC and a grand jury subpoena from the DOJ, both of which appear to relate to their respective investigations into trading by third parties – including persons known to Activision Blizzard’s CEO – in securities prior to the announcement of the proposed transaction. Activision Blizzard has informed these authorities that it intends to be fully cooperative with these investigations.”
    • Barron’s:
      • Positive View: FDX, PGNY, WBD, COST, D.
      • Cautious View: None of note.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Algoma Steel Group (ASTL) announces Michael Marcia as CEO effective June 1.
    • Aterian (ATER) appoints Anton von Rueden as COO effective April 18.
    • Centene (CNC): Leslie Norwalk resigned, effective immediately, as a member of the board of the directors.
    • DIDI Announces Board Change.
    • Manitex Intl (MNTX) President/COO Steve Kiefer departed.  It was not the result of any disagreement with respect to the Company’s operations, policies or practices.
    • Nikola (NKLA) to lose one board member (MarketWatch)
  • Buyback Announcements:
    • Synchrony (SYF) Announces Approval of an Incremental $2.8 Billion Share Repurchase Program..
  • Stock Splits:
    • NVIV 1 for 25 reverse split on April 27th.
  • Dividends Announcements:
    • Crestwood Equity Partners (CEQP) increases quarterly cash distribution 5% to $0.655 limited partner unit.
    • Synchrony (SYF) Announces Plans to Increase Quarterly Common Stock Dividend to $0.23 Per Share, a 5% increase.

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

S&P 500 -13, Dow Jones -55, NASDAQ -56,  and Russell 2000 -7 .  Europe higher and Asian lower ex Hong Kong.  VIX Futures are at 25.28 from 24.26 Thursday morning. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower with Natural Gas higher. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.843% from 2.68%. Bitcoin is at $39,049 from $40,999 on Thursday morning lower by -2.95% this morning. As of 8:10 a.m. EDT.

Thursday’s Action – 04/14/22 Close:  

  • Daily Positive Sectors: None of note.
  • Daily Negative Sectors: Technology, Communication Services, Consumer Cyclical, Financial, Healthcare, Real Estate of note.
  • One Month Winners: Energy, 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 fell Thursday in an abbreviated week.  NASDAQ was down 2.28% and TLT pulled back 2% to close at 120.75 on Thursday.  Updated 04/14/22 close.

 

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

  • Monday After the Close: JBHT, ELS, PNFP, FNB, HOPE, NBHC of note.
  • Tuesday Before the Open: JNJ, PLD, LMT, TRV, HAL, FITB, DOV, CFG, SBNY, HAS, CBSH, IRDM, MAN, XRX, BMI of note.

Earnings of Note This Morning:

  • Beats: SYF +0.23, BAC +0.06, DIDI +0.05.
  • Flat: BK.
  • Misses: None of note.
  • Still to Report: SCHW.

Guidance:

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

Erlanger Research Advance/Decline Chart: Updated through 04/14/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: MVST +5%, SBGI +5%.
  • Gap Down: TGTX -27%, NKTR -7%.

Insider Action: HMTV sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 04/14/22 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:  TWTR SIRI NKTR NTUS (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Ukrainian President Zelensky says will not give up territory and world needs to prepare a tactical nuclear weapon being used by Russia. (CNN)
  • China continues to tighten Covid-19 restrictions. (Guardian)
  • Hong Kong sees 613 new cases as the daily decline continues. (Bloomberg)
  • China Eastern Airlines (CEA) begins to fly the Boeing (BA) 737-800. (Bloomberg)
  • U.S. Health officials press for people to decide for themselves masking, testing and boosters. (WSJ)
  • Goldman Sachs ups recession chance to 35%. (Bloomberg)
  • DidiGlobal files for delisting on May 23rd but does not seek another listing before vote on May 23rd. (Bloomberg)
  • Thoma Bravo may team with others to bid for Twitter (TWTR). (NY Post)
  • Bank of America (BAC) beats earnings estimates on strong consumer lending. (Fox Business)
  • American Express (AXP) being investigated for client tax breaks. (WSJ)
  • Robinhood Snacks looks at Meta (FB) and its hefty metaverse monetization plans.

Moving Average Update:

  • Score pulls back to 10% from 23%.  Updated 04/14/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and The First Lady deliver remarks; The President, The First Lady, The Vice President, and The Second Gentleman attend the 2022 White House Easter “EGGucation” Roll, 10:15 a.m. EDT
    • The President receives the President’s Daily Brief, 1:45 p.m. EDT
    • Press Briefing by Press Secretary Jen Psaki, 4:00 p.m. EDT

Economic: 

  • April NAHB Housing Market Index is due out at 10:00 a.m. EDT and is expected to fall to 77 from 79.

Federal Reserve Speakers:

  • Federal Reserve St. Louis President James Bullard speaks at 4:00 p.m. EDT

M&A Activity:

  • ALLETE (ALE) Closes Acquisition of New Energy Equity, a Leading Solar Development Company.
  • CSX Receives Approval From Surface Transportation Board to Acquire Pan Am Railways.
  • Natus Medical (NTUS) to be acquired for a 29% premium or $33.50 by ArchiMed.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously Announced  Conferences:
        • None of note.
  • Company Meetings: DFFN.
  • Fireside Chat: None of note..
  • Investor/Analyst Day/Calls: AZYO, HPE, PECO, SCHW.
  • Update: None of note..
  • R&D Day: None of note.
  • Company Event: NetEase (NTES) Games Developer Summit.
  • Industry Meetings:
    • American Thoracic Society International Conference
    • World Vaccine Congress 2022 (04/18/22-04/21/22)
      • Previously Posted and Ongoing Conferences:
        • New York International Auto Show 2022 (04/15/22-04/24/22)

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:

      

Thursday’s Upgrades and Downgrades: