CAPIS Morning Note – 04/21/22: Stocks Higher As Earnings Are Coming In Strong

Overnight Summary: The S&P 500 closed Wednesday at 4459.45  from 4462.21  on Tuesday down -0.06%. Futures traded higher most of the night. The overnight high was hit at 4:20 a.m. EDT this morning at 4,493.75. The low was hit at 4,454 at 4:05 p.m. EDT, a range of 39 points high to low. At 7:30…

Overnight Summary: The S&P 500 closed Wednesday at 4459.45  from 4462.21  on Tuesday down -0.06%. Futures traded higher most of the night. The overnight high was hit at 4:20 a.m. EDT this morning at 4,493.75. The low was hit at 4,454 at 4:05 p.m. EDT, a range of 39 points high to low. At 7:30 a.m. EDT the current price is 4492.25 which is 0.82% and 36.75.

Earnings Out After The Close:

  • Beats: TSLA +0.95, THC +0.87, VMI +0.63, RLI +0.45, AA +0.18, LSTR +0.15, LBRT +0.11, CNS +0.09, KNX +0.09, EFX +0.08, UMPQ +0.03, CSX +0.02, FR +0.01, SLG +0.01, BDN +0.01, KMI +0.01, STLD +0.01.
  • Flat: CVBF +0.00, KALU +0.00.
  • Misses: CVNA (1.31), SNBR (0.25), LRCX (0.11), GL (0.03), TCBI (0.03), UAL (0.02), CCI (0.02), SEIC (0.01).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • Holley Inc. (HLLY) prices secondary offering of 8.0 mln shares of common stock at $12.00 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CING: Filed Form 424B4.. 4,791,665 Shares of Common Stock Issuable Upon Exercise of Previously Issued Warrants.
    • CVNA: Filed Form 424B5.. $1,000,000,000 Class A Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • DCOM: Mixed Shelf Offering.
    • PLX: Filed Form S-3.. $100 Million Mixed Security Shelf.
  • Convertible Offering & Notes Filed:
    • VICI Properties (VICI) Announces Pricing of Public Offering of $5.0 Billion of Senior Unsecured 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: UAL +7%, TSLA +5%, CNS +5%, NRGV +5%, LBRT +4%, LSTR +4%, ENDP +4%.
    • Trading Down: SNBR +6%, CVNA -5%, EFX -5%, AA -5%.
  • News Since The Close:
    • Stocks making the biggest moves after hours:  TSLA, UAL, CVNA, CSX, LRCX(CNBC)
    • Pfizer (PFE) To Revise Calculation Of Adjusted Income.
    • China President Xi: Calls for a coordinated Macroeconomics policies among nations.. countries should abandon cold war mentality and avoid confrontation.
    • Boeing (BA) tells airlines 787 deliveries to restart second-half 2022 -sources. (Reuters)
    • Raytheon Technologies (RTX) awarded $480 million Navy contract.
    • Russian/Ukraine News:
      • Ukrainian Presidential Adviser: Russia Preparing To Hold A Referendum On Establishing ‘People’s Republic’ In Kherson Region.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Dave & Buster’s (PLAY) extends Interim CEO term; shall remain in effect until a permanent Chief Executive Officer is appointed and begins his or her service or until the Letter Agreement is terminated.
    • Hawaiian Electric (HE) discloses departure of CFO Gregory C. Hazelton, effective July 1.
    • Energy Vault (NRGV) CFO Andrea Wuttke to step down; David Hitchcock named as Interim CFO.
    • ReWalk Robotics (RWLK) Announces the Appointment of Joseph E. Turk, Jr. to their Board of Directors.
    • SolarEdge (SEDG) Appoints New Director to Its Board.
    • Travere Therapeutics (TVTX) announces retirement of Laura Clague as CFO, effective in August.
  • Buyback Announcements:
    • Kaman Corporation (KAMN) Announces $50 Million Share Repurchase Program.
    • Regions Financial (RF) authorizes $2.5 billion stock repurchase program.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • Kinder Morgan (KMI) announces 3% dividend increase.
    • Valmont (VMI) increases dividend by 10%.

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

S&P 500 +41, Dow Jones +274, NASDAQ +187,  and Russell 2000 +22.  Europe higher and Asian lower ex Japan.  VIX Futures are at 22.65 from 23.45  yesterday morning and the VIX closed at 19.89 from 21.37. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures higher with Natural Gas lower. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.871% from 2.867%. Bitcoin is at $42,466.26 from $41,908 yesterday morning higher by 3.07% this morning. As of 8:08 a.m. EDT.

Wednesday’s Action – 04/20/22 Close:  

  • Daily Positive Sectors: Real Estate, Consumer Defensive, Healthcare, Utilities of note.
  • Daily Negative Sectors: Communication Services, Consumer Cyclical 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 closed mixed on the day.  The DJIA ended up 0.71%.  NASDAQ finished down 1.22% dragged down by NFLX (-35%).  Updated 04/20/22 close.

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

  • Thursday After the Close: ISRG, SNAP, PPG, SIVB, FE, STX, XM, WAL, PBCT, FFIN, SKX, GBCI, OZK, UFPI, SAM, ASB, VICR, WSFS, HTH, FFBC, BJRI, BOOM, CAMP of note.
  • Friday Before the Open: VZ, AXP, SAP, HCA, NEM, SLB, KMB, RF, CLF, GNTX, ALV, UBSI, FHB, AZZ of note.

Earnings of Note This Morning:

  • Beats: POOL +1.32, NEP +1.32, WSO +1.10, AN +0.53, BX +0.48, BANC +0.40, SNA +0.34, DOW +0.29, TSCO +0.23, DGX +0.22, TPH +0.19, ALK +0.18, MMC +0.16, SON +0.13, DHR +0.10, AAL +0.09, WNS +0.08, SNV +0.07, PM +0.07, DOV +0.07, PNR +0.04, SASR +0.03, NEE +0.02.
  • Flat: SAFE +0.00, UNP +0.00.
  • Misses: XRX (0.25), AUB (0.04), KEY (0.04), BKU (0.03), ABB (0.02), HBAN (0.01), T (0.01), HRI (0.01).
  • Still to Report: COLB, EWBC, FCX, GPC, HOMB, NUE.

Guidance:

  • Positive Guidance: KNX, VMI, LSTR, LBRT, ALGT, ALK, SON, USFD, DGX, PNR, POOL of note.
  • Negative Guidance: LRCX, THC, EFX of note.

Erlanger Research Advance/Decline Chart: Updated through 04/20/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: UAL +7%, TSLA +7%, LSTR +7%, LBRT +6%, GPRE +6%, CNS +5%, CNS +5%, VMI +4%, NVVE +4%, ENDP +4%, WNS +4%.
  • Gap Down: SNBR -13%, EFX -10%, AA -6%, CVNA -5%, BHP -4%.

Insider Action: HMTV sees Insider buying with dumb short selling.  GLSI sees Insider buying with smart short sellers. 04/20/22 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: AAL, T, BX, TSLA, XRX, UAL  (CNBC)
  • Five Things You Need to Know to Start Your Day. Traders bet that ECB will raise rates above 0% sooner than later. (Bloomberg)
  • Russia claims to have taken over Mariupol. (Bloomberg)
  • French President Macron has a 9 point lead in latest election poll over Marine Le Pen, election on Sunday. (WSJ)
  • 11th Circuit Court of Appeals to hear the mask mandate case. (NYT)
  •  Former President Obama and his wife, Michelle, will leave Spotify (SPOT). (Bloomberg)
  • Hong Kong Disneyland (DIS) reopens. (WHIO).
  • Hedge Fund Melvin Capital may close current fund and start a new fund. (CNBC)
  • Humana (HUM) to sell hospice unit for $3 billion to private equity. (Bloomberg)
  • Legal sales of marijuana begin in New Jersey today. (CNBC)
  • American Airlines (AAL) blows out earnings to the upside, stock up 10% in premarket. (MarketWatch)
  • Tesla (TSLA) blows out earnings to the upside. (WSJ)
  • Robinhood Snacks looks at Telsa (TSLA) and its strong earnings report. Grubhub taken private by Just Eat Takeaway falls behind DoorDash (DASH) and Uber (UBER) may be sold.

Moving Average Update:

  • Score remains at 53%.  Updated 04/20/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:00 a.m. EDT
    • The President provides an update on Russia and Ukraine,9:45 a.m. EDT
    • The President departs the White House en route Joint Base Andrews, 10:20 a.m. EDT
    • The President departs Joint Base Andrews en route Portland, Oregon, 10:40 a.m. EDT
    • The President arrives in Portland, Oregon, 3:40 p.m. EDT
    • The President visits Portland International Airport to highlight critical investments that will ensure stronger, more resilient infrastructure, such as an earthquake-resilient runway at PDx 4:05 p.m. EDT
    • The President delivers remarks on the investment that has been made at Portland International Airport thanks in part to the Bipartisan Infrastructure Law, 5:10 p.m. EDT
    • The President participates in a fundraiser for the Democratic National Committee, 6:30 p.m. EDT
    • The President departs Portland, Oregon en route Seattle, Washington, 7:25 p.m. EDT
    • The President arrives in Seattle, Washington, 8:15 p.m. EDT
    • The President participates in a fundraiser for the Democratic National Committee, 9:30 p.m. EDT

Economic: 

  • Initial Jobless Claims 8:30 a.m. EDT
  • April Philadelphia Fed Index is due out at 8:30 a.m. EDT and is expected to fall to 21 from 27.4.
  • March Leading Economic Indicators are due out at 10:00 a.m. EDT and are expected to remain at 0.3%.
  • EIA Natural Gas Report 10:30 a.m. EDT

Federal Reserve Speakers:

  • Federal Research Chair Jerome Powell 1:00 p.m. EDT

M&A Activity:

  • Envista (NVST) Completes Acquisition of Carestream Dental’s Intraoral Scanner Business.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously Announced  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)
        • 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: AES, AGRX, HUM, LMT, MMP, PPG, RELX.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: CRH, MIST, SCHW.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: Applied Materials, Inc. (AMAT) New Ways to Shrink Master Class.
  • Industry Meetings:
    • CANDAC22 California Academy of Nutrition and Dietetics Annual Conference and Expo (04/21/22-04/23/22)
    • American Society of Cataract and Refractive Surgery(ASCRS) Annual Meeting 2022 (04/21/22-04/26/22)
    • Pediatric Academic Societies (PAS) Annual Meeting 2022 (04/21/22-04/25/22)
    • OTC Markets iGaming and Entertainment Virtual 2022
    • Society for Immunotherapy of Cancer (SITC) Tumor Immune Microenvironment: A Holistic Approach Workshop 04/21/22-04/22/22)
      • Previously Posted and Ongoing Conferences:
        • 12th Annual International Conference on Frailty and Sarcopenia Research (ICFSR) (04/20/22-04/21/22)
        • CxEnergy 2022 Conference (04/19/22-04/22/22)
        • 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:

      

Wednesday’s Upgrades and Downgrades: