CAPIS Morning Note – 05/11/23: Day Two of Inflation Data With PPI Out Shortly, PacWest Deposit Loss Hit Regionals Causing them To Lose Gains

Overnight Summary: The S&P 500 closed Wednesday at 4137.64 up 0.45% from Tuesday at 4119.17 lower by -0.46%. The overnight high of 4168.50 was hit at 5:25 a.m. EDT. The low was hit at 4146.75 at 7:25 a.m. EDT, a range of ~22 points high to low which is a mid-vol night, same as Wednesday…

Overnight Summary: The S&P 500 closed Wednesday at 4137.64 up 0.45% from Tuesday at 4119.17 lower by -0.46%. The overnight high of 4168.50 was hit at 5:25 a.m. EDT. The low was hit at 4146.75 at 7:25 a.m. EDT, a range of ~22 points high to low which is a mid-vol night, same as Wednesday morning.  At 7:30 a.m. EDT, the current price was 4147.50 which is -0.11% and -4.50 points. As we move into mid-May we will use a 10-day moving average of overnight ranges.

Earnings Out After The Close

  • Beats: CPA +0.74, CR +0.40, OSUR +0.31, STE +0.15, TTEK +0.14, RBA +0.12, TTD +0.11, PAAS +0.11, ALRM +0.10, BYND +0.10, MGNI +0.08, STKL +0.07, ACVA +0.06, LAW +0.06, FLEX +0.06, NUVA +0.05, HOOD +0.04, G +0.03, PYCR +0.03, SOVO +0.03, CAKE +0.02, COOK +0.02, ALGM +0.01, PRPL +0.01, CDE +0.01, SMRT +0.01 of note
  • Flat: CRSR, DOX, RPAY of note.
  • Misses: U (0.64), HPK (0.36), NXT (0.30), JAZZ (0.27), PAR (0.10), DM (0.08), APP (0.07), SONO (0.06), VUZI (0.04), DV (0.04), MFC (0.01), CDNA (0.01), DIS (0.01), NTR of note.

Unusual Options Activity:

Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500.  It looks for volume outliers relative to the Open interest in Calls or puts.  Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.


Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • REXR: Prices offering of 13.5 million shares of common stock at $55.60 per share.
  • Notes Priced of note:
    • DAN: Prices €425 Million Senior Notes Offering.
    • IRM: Prices Debt Offering.
    • WTW: Prices Offering of $750,000,000 of Senior Notes.
  • Common Stock filings/Notes:
    • BEAM: Filed Form 424B5.. Up to $300,000,000 Common Stock.
    • BYND: Announces “At The Market” (ATM) Equity Offering Program – $200.0 million.
    • DTC: Announces Secondary Offering of Class A Common Stock.
    • GFAI: Proposed Underwritten Public OfferinG. (EF Hutton Bookmanager)
    • INTT: Initiated an at-the-market equity offering program for the sale of up to $20 million of the Company’s common stock.
    • REXR: Public Offering of 13,500,000 Shares of Common Stock. (WFC, GS, JPM and Truist bookmanagers)
    • TSLX: Announces Public Offering of Common Stock.. 4,500,000 shares.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • CDZI: Files for 3,971,870 shares of common stock by selling shareholders.
    • DM: Filed Form S-3.. 444,793 Shares of Common Stock by selling shareholders.
    • HLMN: Secondary Offering of Common Stock by Selling Stockholders, 22,455,000 shares. (Jefferies Underwriter)
    • LEXX: Filed Form 424B4.. 2,106,000 Units, Each Unit Consisting of One Share of Common Stock and One Common Warrant to Purchase One Share of Common Stock.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • BELFB: Files $250 million mixed shelf securities offering.
    • BYND: Filed Form S-3ASR — Mixed Shelf.
    • CDNA: Files mixed shelf securities offering.
    • SBOW: files $500 Million mixed securities shelf.
  • Debt/Credit Filing and Notes:
    • BAC: Announces Redemption of 1.486% Fixed/Floating Rate Senior Notes Due May 2024.
    • C: Announces $1.5 Billion Redemption of 1.678% Fixed Rate / Floating Rate Notes due 2024.
  • Tender Offer:
    • VVV: Announces Commencement of Tender Offer to Repurchase up to $1.0 Billion in Value of Its Common Stock.
  • Convertible Offering & Notes Filed:
    • BE: Announces Proposed Convertible Senior Notes Offering

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: PRPL +22%, HMPT +17%, APP +12%, U +10%, MAXN +9%, DXPE +8%, FLNC +7%, MGNI +6%, DV +6%, ALGM +5%, SMRT +5%, NXT +5%, STE +4%, BYND +4% of note.
    • TradingDown: SONO -19%, CDNA -9%, DM -8%, BLFS -8%, GDEN -6%, VUZI -5%, DIS -4%, TSLX -4% of note.
  • News After The Close:
    • Stocks making the biggest moves after hours: DIS, BYND, SONO, HOOD, U, GPRN (CNBC)
    • Disney’s (DIS) streaming losses improve even as subscriber numbers decline. (CNBC)
    • Sonos (SONO) stock tanks 23% after audio equipment maker cuts guidance on ‘softening demand’. (MarketWatch)
    • Robinhood (HOOD) to Launch 24-Hour Trading on Weekdays in Stocks and ETFs. (WSJ)
    • Unity Software (U) stock rallies more than 10% as results, outlook beat Street. (MarketWatch)
    • Groupon (GRPN) posts mixed first-quarter results, keeps ‘going concern’ warning on filing. (MarketWatch)
    • Federal Reserve Richmond President Thomas Barkin: Inflation Still ‘stubbornly High’ And Isn’t Easing Fast Enough Toward 2% Target.
  • Exchange/Listing/Company Reorg and Personnel News:
    • (BILL) files to delay form 10-Q.
    • Check Point Software (CHKP) Appoints Roei Golan Chief Financial Officer.
    • Douglas Elliman (DOUG) files to delay form 10-Q.
    • DXP Enterprises (DXPE) files to delay its 10-Q.
    • (JD) announces CEO Lei Xu plans to retire for personal reasons.
    • LivePerson (LPSN) files to delay form 10-Q.
    • Newtek (NEWT) to delay 10-Q filing.
    • Navigator Holdings (NVGS) announces Naill Nolan to step down as CFO.
    • Nordstrom (JWN) appoints Cathy Smith as CFO.
    • PerkinElmer (PKI) stock ticker will change from ‘PKI’ to ‘RVTY’ on May 16.
    • SST System1 to delay 10-Q filing.
    • ScanSource (SCSC) Appoints Chief Accounting Officer.
    • Tattooed Chef (TTCF) to delay 10-Q filing.
    • Trade Desk (TTD) names Laura Schenkein as new CFO.
  • Buyback Announcements or News:
    • Hyatt Hotels (H)announces $1.055 bln increase in share repurchase authorization, resulting in $1.5 billion total share repurchase authorization. (see Dividends)
    • ING announced the start of a share buyback program under which it plans to repurchase ordinary shares of ING Groep, for a maximum total amount of €1.5 billion.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: 
    • Cardinal Health (CAH) increases quarterly dividend to $0.5006 per share.
    • Curtiss-Wright (CW) increases quarterly dividend $0.01 to $0.20 per share.
    • First Merchants (FRME) increases quarterly cash dividend $0.02 to $0.34 per share.
    • Himax Tech (HIMX) declares cash dividend of $0.48 per ADS.
    • Hyatt Hotels (H) reinstates quarterly dividend of $0.15 per share.
    • Independence Realty Trust (IRT) increases quarterly dividend $0.02 to $0.16 per share.
    • Osisko Gold Royalties (OR) reports Q1 results, increases dividend by 9.1%.
    • PennantPark Floating Rate Capital Ltd. (PFLT) Announces 2.5% Increase of Its Monthly Distribution to $0.1025 Per Share and Financial Results for the Quarter Ended March 31, 2023.

What’s Happening This MorningFutures value reflects the change with fair value.

S&P 500 -4, Dow Jones -101,  NASDAQ +17, and Russell 2000 -8. (as of 7:57 a.m. EDT).  Asia is lower ex Japan while Europe is lower ex France. VIX Futures are at 20.75 from 21.35 yesterday.  Gold higher with Silver and Copper lower. WTI Crude Oil and Brent Crude Oil lower with Natural Gas lower. US 10-year Treasury sees yields at 3.40% from 3.50% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $27,448 from $27,623 yesterday, lower by -0.96%.

Sector Action(1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Communication Services, Technology, Real Estate, Utlities of note.
  • Daily Negative Sectors: Energy of note.
  • One Month Winners: Industrials, Consumer Defensive, Healthcare,  of note.
  • Three Month Winners: Consumer Defensive, Technology, Healthcare of note.
  • Six Month Winners: Technology, Communication Services, Basic Materials of note.
  • Twelve Month Winners: Industrials, Healthcare of note.
  • Year to Date Winners: Technology, Communication Services, Consumer Cyclical of note.

U.S. stocks finished mostly higher on Wednesday, with only the Dow lagging in the red, following a report on inflation in April showed price pressures eased about as much as expected, making it the first month annualized under 5% since last year when it peaked at 9.5% anualized for CPI. The S&P 500 gained 18.40 points, or 0.5%, to 4,137.60. The Dow Jones Industrial Average shed 30.68 points, or 0.1%, to 33,531.13. The Nasdaq Composite gained 126.69 points, or 1%, to 12,306.44. Headline inflation rose by 4.9% year-over-year in April, while core prices rose by 5.5% year-over-year. (MarketWatch – edited by QPI)

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

  • Thursday After the Close: 

  • Friday Before the Open:

Earnings of Note This Morning:

  • Beats: DDS +3.91, JD +1.27, TNK +0.73, CRL +0.19, TPR +0.18, NVMI +0.18, ENTG +0.13, PGTI +0.12, FVRR +0.12, KELYA +0.10, CYBR +0.09, FLWS +0.09, USFD +0.08, HAE +0.07, DCBO +0.06, NICE +0.06, ATHM +0.05, HLLY +0.04, EYE +0.02, DNUT +0.02, YETI +0.02, AQN +0.01, OLK +0.01, UTZ +0.01, HIMX +0.01 of note.
  • Flat: None of note.
  • Misses: PKI (0.01) of note.
  • Still to Report: None of note.


  • Positive Guidance: VCEL, APP, ACVA, TTD, MGNI, U, SOVO, PYCR, ALGM, PRPL, STE, HAE, TPR of note.
  • Negative Guidance: TTEK, FLEX, OSUR, SONO, LAW, SMRT, DOX, CAKE, NTR, YETI, PKI, DCBO, HIMX, FLWS, PGTI of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: APP +15%, MAXN +13%, PRPL +11%, FLNC +10%, FVRR +10%, OSUR +10%, MGNI +10%, ALGM +9%, DXPE +9%, U +9%, NICE +6%, HOOD +5%, NXT +5%, DV +4%, EYE +4%, TTD +4% of note.
  • Gap Down: SONO -25%, CDNA -15%, WW -12%, MXCT -11%, BLFS -8%, DM -8%, HLMN -6%, GDEN -6%, VUZI -6%, DIS -5%, TSLX -5% of note.

Insider Action: ARI, BXMT, AAT, HTLF sees Insider buying with dumb short selling.  HLF sees Insider buying with smart short sellers.

Rags & MagsRepeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

  • 5 things to know before the stock market opens. (CNBC)
  • 5 Things You Need to Know to Start Your Day. (Bloomberg
  • Bloomberg Lead Story: Blackrock Overhauls Leadership of $300 billion Credit, Private Asset Unit. (Bloomberg)
  • Bloomberg  Most Shared Story:  Mexico’s Safest State is Seeing A Real Estate Boom. (Bloomberg)
  • Bank of England raises interest rates by 25 basis points, no longer calling for a recession. (CNBC)
  • Former President Trump was on CNN last night in a rather candid and sometimes unbelievable series of exchanges. (CNBC)
  • Title 42 ends today allowing easier access for illegal immigrants at the border. (NYT)
  • PacWest Bancorp (PACW) lost -9.5% of deposits in the week ended 5/5, causing a drop of-21% this morning. Other Western Banks hit as well. (CNBC)
  • Treasury Secretary Yellen says should be “unthinkable” for the U.S. to default on its debt. (CNBC)
  • Blackstone (BX) sees opportunities to partner with regional banks as deposits flow out. (Bloomberg)
  • Microsoft (MSFT) skips salary increases this year for full time employees. (CNBC)

Moving Average Update:

  • Score goes back to 74% from 68%.


  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing; The Vice President attends, 11:00 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre and Secretary of Homeland Security Alejandro Mayorkas, 1:00 p.m. EDT
    • The President delivers remarks celebrating the historic conservation actions that have been enacted by the Biden-Harris Administration, 4:00 p.m. EDT


  • Initial Jobless Claims 8:30 a.m. EDT
  • April PPI is due out at 8:30 a.m. EDT and is expected to rise to 0.3% from -0.5%.
  • EIA natural Gas Report 10:30 a.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve Board of Governors Christopher Waller 10:15 a.m. EDT

M&A Activity:

  • Mr. Cooper Group (COOP) to Acquire Home Point Capital for $324 Million in Cash.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Berenberg Diagnostics Conference 2023
    • Bernstein Alcohol & ESG Conference
    • Gabelli Waste & Sustainability Symposium
    • J.P. Morgan Insurance Forum 2023
    • JP Morgan Alternative Asset Manager Credit Conf
    • Oppenheimer Industrial Growth Conference
    • Gartner Supply Chain Symposium
  • Top Shareholder Meetings: AKAM, BG, EW, F, H, INTC, KEY, LH, LVS, NSC, PDS, RIG, SAP, SLF, SYK, TSCO, VZ
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AMRC, BZFD, HON, JKHY, MITQ
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings: None of note.
      • Previously posted and ongoing conferences:
        • AISTech Conference and Exposition (05/08/23-05/11/23)
        • Electric Aircraft Exhibition & Conference 2023 (05/10/23-05/11/23)
        • American Society of Pediatric Oncology/Hematology (ASPHO) Conference 2023 (05/10/23-05/13/23)
        • Xponential Conferece
        • Women In Business Week
        • Global Momentum Conference

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: