CAPIS Morning Note – 04/20/22: S&P 500 Futures Turn Positive After Weak Overnight Session

Overnight Summary: The S&P 500 closed Tuesday at 4462.21 from 4391.69  on Monday up 1.61%. Futures traded sideways to lower most of the night before getting back to flat as we write. The overnight high was hit at 6:35 a.m. EDT this morning at 4,465. The low was hit at 4,432.75 at 9:35 p.m. EDT,…

Overnight Summary: The S&P 500 closed Tuesday at 4462.21 from 4391.69  on Monday up 1.61%. Futures traded sideways to lower most of the night before getting back to flat as we write. The overnight high was hit at 6:35 a.m. EDT this morning at 4,465. The low was hit at 4,432.75 at 9:35 p.m. EDT, a range of 33 points high to low. At 7:35 a.m. EDT the current price is 4459.25 which is 0.00% and 0.00.

Breaking News:

Earnings Out After The Close:

  • Beats: NFLX +0.61, WTFC +0.55, LRN +0.14, HWC +0.08, MRTN +0.07, FULT +0.06, OMC +0.06, FHN +0.03, REXR +0.03, IBM +0.01.
  • Flat: IBKR +0.00.
  • Misses: UCBI (0.05), PACW (0.03).

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:
    • ACER: Filed Form S-3.. 2,478,000 Shares of Common Stock.
    • BRC Inc. (BRCC) Announces “Redemption Fair Market Value” in Connection With Redemption of its Outstanding Warrants.
    • MIMO: Filed Form S-1.. Up to 12,045,000 Shares of CommonStock and Up to 72,934,201 Shares of Common Stock and Up to 7,358,078 Warrants to Purchase Common Stock Offered By the Selling Securityholders.
    • SLGL: Filed Form 424B5.. Up to $23,000,000 Ordinary Shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • HLLY: Secondary Offering by Selling Stockholder.. 6.5Million shares.. Jefferies, JPM and BAC Bookmanagers.
    • MIMO – see above.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Convertible Offering & Notes Filed:
    • CSSE: Announces Offering of Notes.

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: GTE +5%, FULT +5%, WTFC +4%.
    • Trading Down: NFLX -26%, HLLY -10%, ROKU -6%, PARA -5%, DIS -5%, TEVA -4%, FUBO -4%, WBD -4%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: NFLX, IBM, DIS, ROKU, WBD, PARA, IBRK, OMC (CNBC)
    • President Biden launches $6 billion effort to bail out distressed nuclear power plants, in bid to boost carbon-free electricity. (AP)
    • Federal Reserve’s Raphael Bostic (Atlanta Fed President) expresses caution about the pace of interest rate hikes. (CNBC)
    • NFLX reports loss of 200K subscribers in Q1, forecasts subscriber loss of 2M next quarter. (CNBC)
    • Netflix (NFLX) Hits Its Ceiling. (WSJ)
    • DOJ says “if CDC concludes that a mandatory order remains necessary for the public’s health after that assessment, the DOJ will appeal the district court’s decision” on federal transportation mask mandate.
    • Credit Suisse (CS) Warns of Loss From Russia and Legal Woes. (WSJ)
    • Best Buy (BBY) to launch home pick-up recycling service that includes appliances with laptops and smaller items. (MarketWatch)
    • U.S. Silica (SLCA) Announces Price Increases on Industrial and Specialty Products.
    • Lockheed Martin (LMT) awarded $400 million Navy contract.
    • Geospace Technologies (GEOS) Awarded $7 million in Ocean Bottom Node Rental Contracts.
    • Russian/Ukraine News:
      • Russia has submitted a draft peace document to Ukraine a “with clear language” and is waiting for a response, “the ball is on the side of Kyiv”, Peskov said.
      • German Govt Spokesperson Says Does Not See Any Delays in Arms Deliveries to Ukraine From the German Side. (Reuters)
  • Exchange/Listing/Company Reorg and Personnel News:
    • The Beachbody Company (BODY) Announces CFO Sue Collyns to depart.
    • Triumph Bancorp (TBK) Announces Strategic Executive Management Reorganization.
  • Buyback Announcements: None of note.
  • Stock Splits: NASDAQ (NDAQ) to split 3:1.
  • Dividends Announcements:
    • Seacoast Banking (SBCF) raises quarterly dividend by $0.04 to $0.17 per share.
    • Southern Co. (SO) raises dividend to boost implied yield above 3.5% (MarketWatch)

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

S&P 500 +18, Dow Jones +147, NASDAQ +80,  and Russell 2000 +15.  Europe lower and Asian lower ex Japan.  VIX Futures are at 23.45 from 24.68  yesterday morning and the VIX closed at 21.37. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures higher with Natural Gas higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.867% from 2.895%. Bitcoin is at $41,908 from $40,823.97  yesterday morning higher by 1.11% this morning. As of 8:06 a.m. EDT.

Monday’s Action – 04/19/22 Close:  

  • Daily Positive Sectors: Consumer Cyclical, Real Estate, Technology, Industrials, Communication Services, Financial, Consumer Defensive, Healthcare of note.
  • Daily Negative Sectors: Energy 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 get high for the day with the NASDAQ up 2.15%.  USO and UNG pulled back 4.41% and 7.89%.  Updated 04/19/22 close.

 

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

  • Wednesday After the Close: TSLA, CCI, CSX, LRCX, KMI, LVS, EFX, STLD, UAL, RHI, THC, FR, SEIC, KNX, LSTR, VMI, RLI, SLG, CNS, UMPQ, CVBF, LBRT, TCBI, BDN, KALU, SNBR, NTGR of note.
  • Thursday Before the Open: DHR, NEE, T, PM, UNP, BX, MMC, FCX, ABB, NUE, TSCO, HBAN, KEY, GPC, POOL, DGX, NVR, WSO, AAL, SNA, EWBC, PNR, ALK, SNV, AN, SON, WNS, HRI, BKU, HOMB, AUB, COLB, TPH, SASR, BANC, HZO of note.

Earnings of Note This Morning:

  • Beats: LAD +1.62, ANTM +0.42, MTB +0.39, ABT +0.27, HCSG +0.09, RCI +0.08, ASML +0.05, AVNT +0.04, PG +0.04, NDAQ +0.02, MKTX +0.01.
  • Flat: CMA.
  • Misses: BKR (0.05).
  • Still to Report: GATX.

Guidance:

  • Positive Guidance: MAN, PLD, HLLY, LRN, MATX of note.
  • Negative Guidance: JNJ, XRAY, NFLX, REXR, ASML of note.

Erlanger Research Advance/Decline Chart: Updated through 04/19/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ASML +6%, LAD +5%.
  • Gap Down: NFLX -27%, ROKU -7%, PARA -5%, DIS -5%, TEVA -5%, FUBO -4%, WBD -4%.

Insider Action:  sees Insider buying with dumb short selling.   sees Insider buying with smart short sellers. 04/19/22 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: NFLX PG BKR  (CNBC)
  • Five Things You Need to Know to Start Your Day notable Kremlin insiders are questioning Putin’s moves. (Bloomberg)
  • Russian offensive in Eastern Ukraine continues. (NYT)
  • Mortgage demand is down 50% from a year ago. (CNBC)
  • Procter & Gamble (PG) beats estimates and raises guidance. (Market Watch)
  • Economy probably already in a recession says Mark Yusko of Morgan Creek Capital. (Fox Business)
  • CALPERS to vote to replace Warren Buffet as CEO of Berkshire Hathaway (BRKB). (Bloomberg)
  • Lululemon Athletica (LULU) seeks to double revenues to $12.50 billion over next five years. (Market Watch)
  • Robinhood Snacks looks at Netflix (NFLX) loss of subscribers. Looks at national legalization of cannabis on 4/20 its unofficial holiday.

Moving Average Update:

  • Score jumps to 53% from 10%.  Updated 04/19/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 10:15 a.m. EDT
    • Press Briefing by Press Secretary Jen Psaki, 3:00 p.m. EDT
    • The President meets with the Secretary of Defense, the Deputy Secretary of Defense, the Joint Chiefs of Staff, and the Combatant Commanders, 4:00 p.m. EDT
    • The President and The First Lady host a dinner for the Secretary of Defense, the Deputy Secretary of Defense, the Joint Chiefs of Staff, the Combatant Commanders, and their spouses, 5:30 p.m. EDT

Economic: 

  •  MBA Mortgage Applications 7:00 a.m. EDT 
  • March PPI is due out at 8:30 p.m. EDT and is expected to climb to 1.2% from 0.8% last month.
  • Existing Home Sales 10:00 a.m. EDT
  • EIA petroleum Report 10:30 a.m. EDT
  • Beige Book 2:00 p.m. EDT 

Federal Reserve Speakers:

  • Federal Reserve Chicago President Charles Evans 10:30 a.m. EDT
  • Federal Reserve San Francisco President Mary Daly 11:25 a.m. EDT

M&A Activity:

  • Accenture (ACN) announced its intent to acquire Greenfish.
  • KKR-Led Group Offers to Buy Australia’s Ramsay Health Care for Roughly $14.9 Billion (WSJ)

Meeting & Conferences of Note:

  • Sellside Conferences:
    • RBI Institutional Investor Conference Virtual 2022 (04/20/22-04/22/22)
    • Kempen and Co. Life Sciences Conference – Immuno and Targeted Oncology Session 2022 (04/20/22-04/21/22)
    • Sequire Cannabis & Psychedelic Conference 2022
      • Previously Announced  Conferences:
        • Noble Capital Markets 18th annual in-person Small & Microcap Investor Conference (NobleCon 18) 2022 (04/19/22-04/21/22)
        • Benzinga Psychedelics & Cannabis Capital Conference 2022 (04/19/22-04/21/22)
  • Company Meetings: ABG, AN, NEM, RCI, RF.
  • Fireside Chat: EPM (w/ Tower Research).
  • Investor/Analyst Day/Calls: LULU, KNBE, RGLD, UNCY.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • 12th Annual International Conference on Frailty and Sarcopenia Research (ICFSR) (04/20/22-04/21/22)
      • Previously Posted and Ongoing Conferences:
        • CxEnergy 2022 Conference (04/19/22-04/22/22)
        • CableLabs Envision Vendor Forum 2022: Mobility & Wireless in a Converged World (04/19/22-04/20/22)
        • Optics and Photonics International Exhibition (OPIE) 22 (04/19/22-04/22/22
        • World Vaccine Congress 2022 (04/18/22-04/21/22)
        • 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:

      

Tuesday’s Upgrades and Downgrades: