CAPIS Morning Note – 04/22/22: Stocks Lower, Tough Day Ahead For House Speaker Kevin McCarthy & GOP

Overnight Summary: The S&P 500 closed Wednesday at 4396.66 from 4459.45 on Wednesday down -1.48%. Futures traded lower most of the night. The overnight high of 4393 was hit at 3:05 a.m. EDT this morning. The low was hit at 4,362 at 8:55 p.m. EDT, a range of 31 points high to low. At 7:30…

Overnight Summary: The S&P 500 closed Wednesday at 4396.66 from 4459.45 on Wednesday down -1.48%. Futures traded lower most of the night. The overnight high of 4393 was hit at 3:05 a.m. EDT this morning. The low was hit at 4,362 at 8:55 p.m. EDT, a range of 31 points high to low. At 7:30 a.m. EDT the current price is 4382.75 which is -0.18% and -7.75.

Earnings Out After The Close:

  • Beats: SIVB +2.34, UFPI +1.09, BJRI +0.32, PPG +0.26, WAL +0.17, ASB +0.09, OZK +0.07, ISRG +0.05, XM +0.02, FFBC +0.01.
  • Flat: None of note.
  • Misses: SAM (1.87), HTH (0.25), VICR (0.15), SNAP (0.03), WSFS (0.03), FE (0.02), GBCI (0.01).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • CVNA Prices Upsized 15.63 Million Share Offering at $80 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • LBPS: Filed Form F-3.. 38,640,760 Ordinary Shares Represented by up to American Depositary Shares.
    • SCYX: Launch of Public Offering of Common Stock and Warrants.. Guggenheim Bookmanager.
    • AMPG: Filed Form S-3.. 188,442 Shares of Common Stock.
    • DM: Filed Form RW .. Withdrawal of Registration Statement on Form S-3.
    • SWVL: Filed Form F-1.. 87,379,534 Class A ordinary shares, 5,933,333 Warrants to purchase Class A ordinary shares and 17,433,333 Class A ordinary shares underlying warrants.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • Advent Technologies (ADN) files for 10,152,865 share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • RKDA: Filed Form S-3.. $50,000,000 Mixed 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: SIVB +10%, ATEN +10%, UFPI +6%, XM +5%, BJRI +4%.
    • Trading Down: CRSR -13%, GMED -11%, GPS -11%, HTH -6%.
  • News Since The Close:
    • Stocks making the biggest moves after hours: SNAP, GPS, FE, PPG  (CNBC)
    • Zoom (ZM) Fatigue Boosts the Recovery in Corporate Flying—for Now (WSJ)
    • Talk that Musk and Thoma Bravo in talks top partner on Twitter (TWTR) Bid. (NY Post)
    • Carvana (CVNA) Soared but Now Falls Behind Auto-Dealer Rivals. (WSJ)
    • ARK funds sell nearly $100 million worth of Telsa (TSLA) stock after earnings. (MarketWatch)
    • Tesla (TSLA) Produced About 600 Vehicles at Shanghai Factory April 19.
    • Russian/Ukraine News:
      • Sanctions threaten to cripple Russia’s multibillion-dollar crypto industry (CNBC).
  • Exchange/Listing/Company Reorg and Personnel News:
    • A10 Networks (ATEN) will replace Ferro (FOE) in the S&P SmallCap 600.
    • Allied Esports Entertainment (AESE) Receives Notification from Nasdaq Related to Delayed Annual Report on Form 10-K.
    • Casella Waste Systems (CWST) Announces planned retirment of its COO.
    • GATO: Gatos Silver Receives NYSE Notice Regarding 10-K Filing.
    • GPS: Old Navy CEO to exit as parent company Gap cuts sales guidance.
    • Globus Medical (GMED) CEO Dave Demski to resign but assist with transition, effective immediately.
    • Heidrick & Struggles (HSII) discloses transition of COO Michael Cullen to role focusing on client-facing matters.
    • Merit Medical (MMSI) announces retirement of COO Ronald A. Frost.
    • Virgin Orbit (VORB) Announces Renaming of Its National Security Arm and Introduction of New Board Members
  • Buyback Announcements:
    • ISTR stock repurchase program of 400,000 shares.
  • Stock Splits: None of note.
  • Dividends Announcements:
    • JD.com (JD) weighing payment of special cash dividend.
    • UFP Industries (UFPI) increases quarterly dividend to $0.25 per share, a 25% increase.
    • USD Partners (USDP) increases quarterly distribution to $0.1235 per unit from $0.121 per unit.

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

S&P 500 -4, Dow Jones -85, NASDAQ +26,  and Russell 2000 -2.  Europe lower and Asian lower ex Shanghai.  VIX Futures are at 22.65 from 23.45  yesterday morning and the VIX closed at 19.89 from 21.37. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas higher. $ is higher vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.928% from 2.871%. Bitcoin is at $40,536.19 from $42,466.26 yesterday morning lower by -2.01% this morning. As of 8:09 a.m. EDT.


Thursday’s Action – 04/21/22 Close:  

  • Daily Positive Sectors: None of note.
  • Daily Negative Sectors: ALL sectors 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 ended sharply lower after a reversal midday.  Federal Reserve Chair Powell suggest the need to front-loading interest rate hikes.  NASDAQ was down 2.07%.  Updated 04/21/22 close.

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

  • Friday After the Close: None of note.
  • Monday Before the Open: KO, ATVI, OTIS, PHG, LII, CBU, AJRD, BOH, DORM of note.

Earnings of Note This Morning:

  • Beats: AXP +0.26, AZZ +0.16, KMB +0.12, RF +0.08, CLF +0.01, SLB +0.01.
  • Flat: VZ +0.00.
  • Misses: ALV (0.60), SAP (0.13), HCA (0.10), NEM (0.03).
  • Still to Report: FHB, GNTX.

Guidance:

  • Positive Guidance: GPC, XM,  of note.
  • Negative Guidance: SNAP, GMED, CRSR of note.

Erlanger Research Advance/Decline Chart: Updated through 04/21/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ATEN +10%, SIVB +9%, RVNC +9%, UFPI +7%, BJRI +5%, CLF +4%, XM +4%.
  • Gap Down: CRSR -14%, GPS -13%, ALV -7%, SWVL -6%, JG -5%, HTH -5%, GMED -5%, ISRG -4%, SAM -4%.

Insider Action: ALTG sees Insider buying with dumb short selling. GLSI, GRPN  sees Insider buying with smart short sellers. 04/21/22 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:  AXP, VZ, KMB, SNAP, SLB, CLF (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Shipping delays from Asia may be worse than expected due to lockdowns. (Bloomberg)
  • Dr. Fauci warns that children under 5 may be hit with a wave of Covid-19 in June. (CNN)
  • House Speaker Kevin McCarthy contradicts earlier testimony that he told President Trump to resign on January 6th during the Capitol violence. (Bloomberg)
  • U.S. could lower tariffs on apparel from China. (Reuters)
  • Lululemon Athletica (LULU) may introduce a membership. (WSJ)
  • Robinhood Snacks looks at Steinway filing an IPO. Carl Icahn takes on McDonalds (MCD) and its animal welfare practices.

Moving Average Update:

  • Score drops to 20% from 53%.  Updated 04/21/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 12:00 p.m. EDT
    • The President delivers remarks on Earth Day making the case for his bold agenda to tackle the climate crisis, safeguard our nation’s forests, and bolster our resilience in the face of threats like wildfire, 1:30 p.m. EDT
    • The President delivers remarks on his recent actions to lower costs and give families more breathing room, and will call on Congress to pass his plan to lower health care and energy costs, 3:30 p.m. EDT
    • The President departs Auburn, Washington en route Seattle, Washington, 5:15 p.m. EDT
    • The President departs Seattle, Washington en route Philadelphia, Pennsylvania, 5:35 p.m. EDT
    • The President arrives in Philadelphia, Pennsylvania, 10:15 p.m. EDT
    • The President arrives in New Castle, Delaware, 10:40 p.m. EDT

Economic: 

  • PMI Composite Flash 9:45 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve Speakers:

  • None of note.

M&A Activity:

  • Allegion (ALLE) to Acquire Stanley Black & Decker’s (SWK) Access Technologies Business.
  • Genius Group (GNS) completes acquisition of Education Angels and Property Investors Network.
  • MDC Holdings (MDC) unit to acquire assets of The Jones Company of Tennessee.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Scottsdale Capital Event 2022 (04/22/22-04/24/22).
    • Wells Fargo Sponsored Meetings at the 2022 NAB Forum (04/24/22-04/26/22)
      • Previously Announced  Conferences:
        • RBI Institutional Investor Conference Virtual 2022 (04/20/22-04/22/22)
  • Company Meetings: CNP, LHX.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: Sprouts Healthy Communities (SFM) Foundation Growing School Gardens Summit 2022.
  • Industry Meetings:
    • Fitness Fest Conference & Expo (04/22/22-04/24/22)
    • Alabama Association of Nurse Anesthetists Spring Meeting 2022 (04/22/22-04/24/22)
    • National Association of Broadcasters NAB Show 2022 (04/23/22-04/27/22)
    • European Congress of Clinical Microbiology and Infectious Disease (ECCMID) 2022 (04/23/22-04/26/22)
    • Surgical Infection Society (SIS) 2022 Annual Meeting (04/23/22-04/26/22)
    • Center for International Blood & Marrow Transplant Research (CIBMTR) (04/23/22-04/26/22)
      • Previously Posted and Ongoing Conferences:
        • Society for Immunotherapy of Cancer (SITC) Tumor Immune Microenvironment: A Holistic Approach Workshop 04/21/22-04/22/22)
        • 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)
        • CxEnergy 2022 Conference (04/19/22-04/22/22)
        • Optics and Photonics International Exhibition (OPIE) 22 (04/19/22-04/22/22)
        • 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:

       

Thursday’s Upgrades and Downgrades: