Overnight Summary: The S&P 500 closed Monday at 3991.24 down -3.20% from 4123.34 on Friday. Futures have traded higher overnight. The overnight high of 4034.75 was hit at 5:15 a.m. EDT this morning. The low was hit at 3961.75 at 8:20 p.m. EDT, a range of 73 points high to low which is above the typical range of late with 45 the average. At 7:25 a.m. EDT the current price is 4013.50 which is +0.66% and +26 points.
Earnings Out After The Close:
- Beats: GRPN +1.33, OPRT +0.98, BHF +0.61, IFF +0.33, XPO +0.32, UNVR +0.30, VRM +0.30, LMND +0.23, PRAA +0.23, SWAV +0.22, HLIO +0.22, RBA +0.18, AMC +0.16, EVBG +0.16, BLNK +0.12, ANNX +0.11, JRVR +0.11, MCHP +0.10, ESE +0.09, FGEN +0.09, TREX +0.08, UPST +0.08, NVAX +0.07, YMAB +0.06, RNG +0.05, ICUI +0.04, MESA +0.04, NUVB +0.04, SPG +0.04, VECO +0.03, DHT +0.03, PUBM +0.03, BWXT +0.03, HI +0.02, TASK +0.02, GDRX +0.02, CARG +0.01, MRC +0.01, AZTA +0.01, DNB +0.01.
- Flat: ALGM +0.00, HIMS +0.00, FROG +0.00, ROVR +0.00.
- Misses: IAC (2.07), LPSN (0.42), CRSP (0.35), BLUE (0.30), LFST (0.16), EQH (0.15), PRIM (0.14), PLUG (0.11), ZNGA (0.11), HRTX (0.11), HBM (0.08), DDD (0.06), AMWL (0.06), MAXR (0.05), ANGI (0.04), BLI (0.03), MGY (0.03), NCMI (0.03), PRA (0.03), NHI (0.02), SUPN (0.02), OPK (0.02), SDC (0.02), VVV (0.01), TDUP (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Global Blockchain Acquisition Corp. (GBBKU) Announces Pricing of $150,000,000 Initial Public Offering.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- AUID: Filed Form 424B3.. 4,522,056 shares of Common Stock.
- NLTX: Filed Form S-3.. 15,309,270 Shares Common Stock.
- RLGT: Universal shelf registration statement declared effective by the SEC.
- BOXD: Form 8K – Common Stock Purchase Agreement.
- BOXL: Filed Form S-3.. 3,434,103 Shares of Common Stock underlying a Warrant to Purchase Common Stock.
- GENI: Form 424B3.. 6,624,939 Ordinary Shares.
- NLTX: Filed Form S-3.. 15,309,270 Shares Common Stock.
- OUST: Form 424B5.. 6,624,939 Ordinary Shares 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:
- CLOV: Filed Form S-3.. $300 Million Mixed Security Shelf.
- INN: Filed Form S-3ASR.. Mixed Shelf Offering.
- SR: Filed Form S-3ASR.. Mixed Shelf.
- Convertible Offering & Notes Filed:
- Desktop Metal (DM) announces $150 million proposed convertible senior notes offering due 2027.
- Truist (TFC) Announces Redemption of Senior Notes due June 2022.
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: VRM +17%, CLOV +14%, UNVR +14%, MRC +12%, SWAV +9%, SDC +8%, HIMS +7%, FROG +6%, CENN +5%, NVVE 5.2%, QSI 5%, ROVR +5%, AMC +4%.
- Trading Down: UPST -44%, GDRX -28%, NVAX -16%, AFRM -13%, MAXR -13%, GRPN -12%, CARG -10%, TDUP -10%, DDD -8%, PLUG -7%, MESA -5%, PUBM -4%, ALGM -4%.
- News Since The Close:
- Stocks making the biggest moves after hours: AMC, NVAX, UPST (CNBC)
- Global Stocks Suffer Worst Day Since June 2020 Amid Slowdown Fears. (FT)
- Plug Power (PLUG) posts wider loss, lower sales in Q1, pinning it on rising nat gas prices. (MarketWatch)
- Match Group (MTCH) files lawsuit against Google (GOOG) over alleged unlawful billing mandates. (NYT)
- Bitcoin falls 55% from its high. (WSJ)
- Assets Under Management: CNS $98.0 billion (down $4.1 billion)
- Russian/Ukraine News:
- Alphabet (GOOG) will end Google App Store sales in Russia, according to Arstechnica.
- Exchange/Listing/Company Reorg and Personnel News:
- Allegro Microsystems (ALGM) announces retirement of CEO Ravi Vig.
- Compugen (CGEN) announces CFO departure.
- Kura Sushi (KRUS) announces that Steven H. Benrubi, the Company’s CFO has notified the Company of his decision to resign as CFO and retire.
- Lincoln Electric (LECO) announces that Steven B. Hedlund has been promoted to Chief Operating Officer.
- Materion (MTRN) Appoints John Zaranec Chief Accounting Officer.
- RingCentral (RNG) announces that Sonalee Parekh has been appointed as RingCentral’s Chief Financial Officer.
- US Foods (USFD) announces a transition of its CEO.
- Vroom (VRM) Announces Appointment of Tom Shortt as CEO.
- Webster Financial (WBS) files to delay its 10-Q.
- XPO Logistics (XPO) appoints Drew Wilkerson as CEO of planned spin-off of tech-enabled brokered services platform.
- Buyback Announcements:
- AHCO: Announces $200 Million Share Repurchase Program.
- Ball (BLL) Announces $300 Million Accelerated Stock Repurchase.
- BrightSpire Capital (BRSP) has authorized a stock repurchase program, under which the Company may repurchase up to $100 million of its outstanding Class A common stock.
- Builders FirstSource (BLDR) Board of Directors authorized a new share repurchase program of $2 billion, which replaces the previous authorization.
- CECO Environmental (CECE) Announces $20 Million Share Repurchase Program.
- GFL Environmental Inc. (GFL) Authorizes Share Repurchase Program.
- Simon Properties (SGP) Board of Directors has authorized a new common stock repurchase program that may purchase up to $2 billion of its common stock over the next 24 months as market conditions warrant.
- TechTarget (TTGT) approves new two-year $50 mln share buyback program.
- Stock Splits:
- Nintendo (NTDOY) has announced a 10-for-1 stock split.
- Dividends Announcements:
- FS KKR Capital (FSK) also declares a Q2 distribution totaling $0.68 per share, up from $0.63.
- Gaming and Leisure Properties (GLPI) increases quarterly cash dividend to $0.705 per share from $0.69 per share.
- Microchip (MCHP) increases quarterly cash dividend to $0.276 per share from $0.253 per share.
- Ovintiv (OVV) increases quarterly dividend by 25% to $0.25 per share.
- SPG: Raises quarterly common stock dividend of $1.70, a 21.4 increase year over year.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +27, Dow Jones +193, NASDAQ +145, and Russell 2000 +15. Europe higher and Asian lower ex Shanghai. VIX Futures are at 33.20 from 33 Monday morning and the VIX closed at 33.92 from 31.20 on Friday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 3.005% from 3.173% yesterday. Bitcoin is at $31,584.91 from $32,763 Monday morning and is higher by +2.92% this morning. As of 8:00 a.m. EDT.
Sector Action – 05/09/22 Close:
- Daily Positive Sectors: None of note.
- Daily Negative Sectors: All but top were Energy, Consumer cyclical, Technology, Basic Materials, Real Estate, Healthcare, Communication Services of note.
- One Month Winners: Energy 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 Consumer Defensive of note.
- Year to Date Winners: Energy of note.
A broad based sell off and the market turmoil continues. NASDAQ was off 4.29%. Updated 05/09/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Tuesday After the Close: OXY, EA, TTD, GFS, U, RBLX, DAR, WES, WYNN, SWCH, EXEL, KGC, HALO, MIME, SOFI, HRB, ZD, ELY, CELH, JAMF, DV, JXN, FLYW, GO, CRCT, IPAR, EPAY, GCP, ZETA, ABCL, RXT, SKIN, RPAY, EGHT, CUTR, NUVB, HCAT, MODN, NSTG, SCSC, ICHR, BIRD, ARLO, EOLS, INO, COLL, AKA, OSUR, PLBY, GRWG, VUZI, YELL, ANNX of note.
- Wednesday Before the Open: OLPX, PRGO, YETI, WEN, KRNT, NOMD, WEBR, DNUT, FVRR, WWW, DFH, SFL of note.
Earnings of Note This Morning:
- Beats: LCII +2.72, BLDR +1.88, NXST +1.68, MBUU +0.65, RETA +0.63, DFH +0.24, BCO +0.21, LI +0.20, TDG +0.17, ITCI +0.13, ACRS +0.10, NOVT +0.10, IIVI +0.10, SEAT +0.09, H +0.09, IAA +0.08, IGT +0.07, TTGT +0.06, NVEI +0.05, HAE +0.05, PLNT +0.05, AZEK +0.04, STER +0.04, BSY +0.04, AHCO +0.04, MIDD +0.03, EVRI +0.02, ENOV +0.02, KNBE +0.02, CRON +0.01, EYE +0.01, VERX +0.01, CEVA +0.01.
- Flat: MASS +0.00, STVN +0.00, ARMK +0.00, REYN +0.00.
- Misses: DBD (1.40), PTON (1.33), BHC (1.22), NCLH (0.41), DM (0.09), AVYA (0.08), EPC (0.06), PLTK (0.06), WMG (0.04), DSEY (0.03), XRAY (0.02), HL (0.02), CRNC (0.01).
- Still to Report: AMRS , CHH , EBIX , FOXA , SYY , TPG.
- Positive Guidance: SWAV, RNG, TREX, TASK, MCHP, IFF, HIMS, MRC, PRIM, VVV, SONY, PLNT, IIVI, MBUU, STER, TTGT, KNBE, AZEK of note.
- Negative Guidance: UPST, VECO, GRPN, GDRX, LPSN, AZTA, EVBG, TDUP, LMND, LI, EYE, EPC, HAE, PLTK, AVYA, VERX, BHC, PTON, XRAY, REYN, DBD, NVEI of note.
Erlanger Research Advance/Decline Chart: Updated through 05/09/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: VRM +31%, CLOV +16%, SWAV +13%, LPSN +12%, CENN +9%, ASX +9%, BLUE +9%, FGEN +8%, BLDR +8%, MRC +7%, FROG +7%, UNVR +6%, RNG +6%, BLI +6%, SNCR +6%, LI +5%, HRTX +5%, EVRI +5%, ROVR +5%, AMWL +4%, HI +4%, XPO +4%.
- Gap Down: UPST -48%, GDRX -40%, NVAX -20%, CARG -18%, GRPN -14%, AFRM -12%, DDD -8%, RCUS -7%, PLUG -5%, EYE -4%.
Insider Action: POOL sees Insider buying with dumb short selling. RZLT, BCOV sees Insider buying with smart short sellers. 05/09/22 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: PTON NVAX VRM (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- Shanghai officials continue to tighten restrictions due to Covid-19. (WSJ)
- Russia to reduce operations around Kyiv. (Bloomberg)
- U.S. Gasoline prices hit all time high. (Reuters)
- Federal Reserve warns of market liquidity in latest Financial Stability Report. (Bloomberg)
- Andy Warhol’s “Marilyn” sells for $195 million. (CNBC)
- Microstrategy (MSTR) investment in Bitcoin about to become a loser. (Bloomberg)
- Sony (SONY) plant in Shanghai has partially restarted. (Nikkei)
- Retailers are rationing baby formula amid shortages. (Bloomberg)
- Robinhood Snacks looks at mental health startup Cerebral on its pill prescription practices. Coty (COTY) stock is doing well as IRL events rise.
Moving Average Update:
- Score third day in a row at 0%. Updated 05/09/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 9:30 a.m. EDT
- The President delivers remarks on his plan to fight inflation and lower costs for working families, and contrast his approach with Congressional Republicans’ ultra-MAGA plan to raise taxes on 75 million American families and threaten to sunset programs like Social Security, Medicare, and Medicaid, 11:30 a.m. EDT
- The President holds a bilateral meeting with Prime Minister Mario Draghi of Italy to reaffirm the deep bonds of friendship and strong partnership between the United States and Italy, 2:00 p.m. EDT
- Press Briefing with Press Secretary Jen Psaki, 2:30 p.m. EDT
- US NFIB Small Business Optimism Apr: 93.2 (est 92.9; prev 93.2).
- Redbook Sales 8:55 a.m. EDT
- Treasury Secretary Janet Yellen is set to testify before the Senate Banking Committee at 10 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve Speakers:
- Federal Reserve New York President John Williams 7:40 a.m. EDT
- Federal Research Atlanta President Raphael Bostic 8:30 a.m. EDT
- Federal Reserve Richmond President Tom Barkin 9:15 a.m. EDT
- Federal Reserve Minneapolis President Neel Kashkari 1:00 p.m. EDT
- Federal Reserve Cleveland President Loretta Mester 3:00 p.m. EDT
- Brunswick (BC): Freedom Boat Club, part of Brunswick Corporation, has acquired the Freedom Boat Club of Tampa Bay franchise.
- Carvana (CVNA) announces the $2.2 billion acquisition of ADESA’s U.S. physical auction business from KAR Global (KAR).
- CECO Environmental (CECE) Acquires Compass Water Solutions.
- Dover (DOV) agrees to acquire Malema Engineering for $225 million in cash at closing.
- Helios Technologies (HLIO) Signs Definitive Agreement to Acquire Taimi.
- Pfizer (PFE) to Acquire Biohaven Pharmaceuticals (BHVN) for $11.6 billion or $148.50 a share.
- UFP Industries (UFPI) affiliate acquires Cedar Poly for $17 million.
Meeting & Conferences of Note:
- Sellside Conferences:
- Barclays Americas Select Franchise Conference 2022 (05/10/22-05/11/22)
- Berenberg Diagnostics Conference 2022
- BMO Capital Markets Timber & Wood Products Summit 2022
- Citi Global Global Energy, Utilities, and Climate Technology Conference 2022 (05/10/22-05/11/22)
- Deutsche Bank ADR Virtual Investor Conference 2022 (05/10/22-05/11/22)
- HSBC 9th Annual China Conference 2022 (05/10/22-05/20/22)
- Morgan Stanley Annual EEMEA Conference 2022 (05/10/22-05/12/22)
- Goldman Sachs Industrials & Materials Conference 2022 (05/10/22-05/12/22)
- Goldman Sachs Fixed Income Investor Conference Call 2022
- Oppenheimer 7th Annual Emerging Growth Conference 2022
- SAP Sapphire & ASUG Accelerate Orlando 2022 (05/10/22-05/12/22)
- UBS Pan Euro Small & Mid cap conference 2022 (05/10/22-05/13/22)
- UBS Sustainable Packaging Materials ESG Conference 2022
- Wolfe Research Virtual Broker Conference 2022 (05/10/22-05/13/22)
- Previously Announced Conferences:
- Bank of America HealthCare Conference (05/09/22-05/13/22)
- BTIG Housing Ecosystem Conference (05/09/22-05/10/22)
- Jefferies Solar and EV Conference
- Raymond James Lodging Tour
- Waste360/Stifel Investor Summit 2022 (05/09/22-05/12/22)
- Company Meetings: ALV, ARGX, CMI, COP, CYH, CYTK, DHR, GPS, L, MMM, PRU, WM.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: APRN, BLKB, BNFT, CRVS, DISH, MDLZ, MGA, WDC.
- Update: None of note.
- R&D Day: None of note.
- Company Event: IBM Think Conference.
- Industry Meetings:
- Space Technology Conference (05/10/22-05/11/22)
- 14th International Conference Myasthenia Gravis and Related Disorders 2022 (05/10/22-05/12/22)
- Previously Posted and Ongoing Conferences:
- World Federation of Hemophilia (WFH) 2022 World Congress (05/08/22-05/11/22)
- 4th Allogeneic Cell Therapies Summit 2022 (05/08/22-05/12/22)
- MoneyShow Las Vegas 2022 (05/09/22-05/11/22)
- American Association of Immunologists (AAI) IMMUNOLOGY2022 (05/06/22-05/10/22)
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:
Previous Day’s Upgrades and Downgrades: