CAPIS Morning Note – 05/23/22: Stocks Start The Week On A Positive Note Despite Biden Misspeak On Taiwan

Overnight Summary: The S&P 500 closed Friday at 3901.36 (higher by 0.01%)from 3900.79  on Thursday.  Futures have traded higher overnight. The overnight high of 3955 was hit at 2:45 a.m. EDT. The low was hit at 3910.25 at 6:05 p.m. EDT, a range of 45 points high to low which is the typical range of…

Overnight Summary: The S&P 500 closed Friday at 3901.36 (higher by 0.01%)from 3900.79  on Thursday.  Futures have traded higher overnight. The overnight high of 3955 was hit at 2:45 a.m. EDT. The low was hit at 3910.25 at 6:05 p.m. EDT, a range of 45 points high to low which is the typical range of late with 45 the average. At 7:55 a.m. EDT the current price is 3942.50 which is 1.10% and 43 points.

Earnings Out After The Close:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

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:
    • AGIL: Filed Form 424B3.. Up to 10,861,250 Shares of Class A Common Stock Issuable Upon Exercise of Warrants.
    • AVGR: Filed Form 424B5.. Up to $7,000,000 Common Stock.
    • EVAX: Filed Form F-3.. $100 Million Ordinary Shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • GOEV: files for 48,043,111 share common stock offering by selling shareholder.
    • NEXT: Filed Form S-1.. 4,618,226 shares of Common Stock for Sale by the Selling Stockholder.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CENX: Filed Form S-3ASR.. Mixed Shelf Offering.
    • KR: Filed Form S-3ASR.. Mixed Shelf Offering.
    • STOK: Filed Form S-3..$400,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • HUN: New $1.2 Billion Senior Unsecured, Sustainability-linked Revolving Credit Facility.
    • PECO: Increases Unsecured Revolver to $800 Million.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: SIGA 65.28%, ARRY 28.04%, GFF 23.84%, BL 22.49%, EBS 22.37%, CSIQ 20.48%, CCXI 18.94%, TDW 18%, RCKT 17.38%, RETA 17.26%, NTRA 16.26%, CBAY 16.11%, AMBC 15.96%, QTWO 15.77%, ADAP 15.60%, BLKB 15.33%, MANT 15.29%.
    • Trading Down: TRHC -35.35%, TGI -32.85%, TGT -29.45%, AVYA -24.64%, DDS -23.22%, LOVE -22.51%, RUBY -22.31%, ROST -21.97%, EAT -20.39%, DLTR -20.03%, FIVE -20.02%, KSS -19.91%, DG -19.40%, GRPN -18.63%, CONN -18.16%, BOOT -18.06%.
  • News Items After the Close:
    • Deere (DE) stock sinks toward 15-month low as downbeat industry, supply-chain outlook trumps earnings beat. (MarketWatch)
    • Hyundai Motor (HYMTF) to build its first dedicated full EV and battery manufacturing facility in US.
    • Inotiv (NOTV): US Dept of Justice executed a search and seizure warrant at its Cumberland facility; DOJ also files civil action alleging violations of the Animal Welfare Act at the Cumberland facility.
    • Russian/Ukraine News:
      • Russia has stopped supply of natural gas to Finland.
      • Ukrainian President Volodymyr Zelenskyy calls for “Russian oil embargoes” and adds that “there should not be any trade with Russia” in an address to the World Economic Forum. (Sky News)
  • News Items Over the Weekend:
    • Stocks that Defined the Week: WMT, SAVE, NFLX, PFE, MCD, AAPL, F  (WSJ)
    • The Week in Business: Stocks Fall.  (NYT)
    • Macy’s, Dollar General and Costco May Offer Clues on Strength of Consumer Spending (WSJ)
    • Apple (AAPL) Tells Contractors It Wants to Boost Production Outside China — Sources Say.  Apple Gives Closer Look to India, Southeast Asia as Alternatives to China AAPL – Apple Calls on Its Suppliers in India to Expand, Including Possibly for Export. (WSJ)
    • Amazon (AMZN) wants to shed at least 10 million square feet of space *amazon aims to sublet, end warehouse leases amid cooling sales.
    • Public data suggests that several anonymous crypto investors profited from inside knowledge of when tokens would be listed on exchanges.+ (WSJ)
    •  Barron’s:
      • Positive View: GNK, HOOD, BIRD, POSH, WRBY, RIVN, CVX, EA, QCOM, TROW, TSN, VRTX, TJX, ROST, BURL.
      • Cautious View: None of note.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Bakkt (BKKT) CFO to step down.
    • Canadian Nat’l Rail (CNI) appoints Shauneen Bruder as Chairperson.
    • CuriosityStream (CURI) Appoints Peter Westley as Chief Financial Officer.
    • Farmmi (FAMI) Receives Nasdaq Delisting Determination; Plans to Appeal.
    • Glory Star New Media Group Holdings Limited (GSMG) Receives Nasdaq Notice of Deficiency Regarding Minimum Bid Price Requirement.
    • NextEra Energy (NEE) appoints John Ketchum as Chairman.
    • Sentage Holdings Inc. (SNTG) Receives Notice of Filing Delinquency from Nasdaq.
  • Buyback Announcements:
    • Cable One (CABO) Announces Stock Repurchase Program up to $450 million of common stock..
    • Greenwich LifeSciences (GLSI) to resume stock repurchase program.
    • NAC Re Corp (NRC) approves a new stock repurchase authorization of up to 2.5 million shares.
    • Ocwen (OCN) Board of Directors Authorizes $50 Million Share Repurchase Program.
  • Stock Splits: None of note.
  • Dividends Announcements: None of note.

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

S&P 500 +36, Dow Jones +305, NASDAQ +80, and Russell 2000 +20.  Europe higher and Asia mostly higher ex Hong Kong.  VIX Futures are at 28.91 from 28.35 Friday morning and the VIX closed at 29.43 from 28.70 Friday. Gold,  Silver  and Copper higher. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.824% from 2.873% Friday morning. Bitcoin is at $30,363 from $30,357 Friday morning and is higher by 1.44% this morning. As of 8:08 a.m. EDT.

Sector Action – 05/20/22 Close:  

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

We are celebrating a +0.01% close for the SP 500 as a…..win.  NASDAQ did rain on the celebration parade with a close of -0.30%.  TLT finished up 1.14% as it looks to bounce.  Updated 05/20/22 close.

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

  • Monday After the Close: ZM, HEI, AAP, NDSN, SKY, WKME of note.
  • Tuesday Before the Open: NTES, AZO, BBY, RL, ATHM, ANF, FRO, CSIQ of note.

Earnings of Note This Morning:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance:  None of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart: Updated through 05/20/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: AXL +12%, GOEV +7%.
  • Gap Down: LTCH -4%.

Insider Action: CMG, YELL, BRO, ENOB sees Insider buying with dumb short selling. RPTX  sees Insider buying with smart short sellers. 05/20/22 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: VMW ERTS GME (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • President Biden speaking said the U.S. would defend Taiwan militarily but then the comments were walked back. (Bloomberg)
  • Pentagon may send special forces to defend the embassy in Kyiv. (WSJ)
  • Ukraine has ruled out a ceasefire or concessions to Russia. (Reuters)
  • White House said will “get arms around” Monkeypox. (ABC News)
  • Beijing has record Covid-19 cases and renewed lockdown fears. (Bloomberg)
  • Federal Judge blocks Biden Administration to end restrictions at the southern border. (Washington Post)
  • Abbott (ABT) CEO expects baby formula plant to reopen in early June. (Washington Post)
  • Apple (AAPL) may increase production outside of China. (WSJ)
  • Broadcom (AVGO) looking to purchase VMware (VMW).
  • Bank of America (BAC) raises minimum wage to $22 an hour. (Market Watch)
  • Robinhood Snacks looks at fractional real estate in an overpriced, undersupplied housing market.

Moving Average Update:

  • “One is the loneliest number that you’ll ever do”.  Yeah Russell 2000 10 Day MA.  Updated 05/20/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President held a press conference with Prime Minister Kishida Fumio of Japan, 1:00 a.m. EDT
    • The President and Prime Minister Kishida Fumio of Japan met with families of Japanese citizens abducted by the Democratic People’s Republic of Korea several decades ago, 1:40 a.m. EDT
    • The President launched the Indo-Pacific Economic Framework for Prosperity, 3:30 a.m. EDT (Release)
    • The President attended a dinner hosted by Prime Minister Kishida Fumio of Japan. 6:00 a.m. EDT

Economic: 

  • Chicago Fed National Act. Index 8:30 a.m. EDT 
  • The World Economic Forum has begun to meet in Davos, Switzerland.

Federal Reserve Speakers:

  • Federal Research Atlanta President Raphael Bostic 12:00 p.m. EDT

M&A Activity:

  • American Axle (AXL) exploring potential sale.  (Bloomberg)
  • EVO Payments (EVOP) has acquired North49 Business Solutions.
  • Flora Growth (FLGC) Acquires CBD Brand Masaya.
  • Kala (KALA) announces entry into definitive agreement to sell EYSUVIS and INVELTYS to Alcon Inc (ALC).
  • Siemens AG (SIEGY) announces a voluntary cash tender offer for all outstanding shares in Siemens Gamesa Renewable Energy, S.A. with intention to delist and integrate the business.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Barclays High Yield Bond & Syndicated Loan Conference 2022 (05/23/22-05/26/22)
    • Berenberg Conference USA 2022 (05/23/22-05/25/22)
    • H.C. Wainwright Global Investment Conference 2022 (05/23/22-05/26/22)
    • HC Wainwright Global Life Sciences Conference 2022 (05/23/22-05/26/22)
    • JP Morgan 50th Annual Global Technology Media and Communications Conference 2022 (05/23/22-05/25/22)
    • Morgan Stanley 6th Annual Sustainable Futures Conference 2022 05/23/22-05/24/22)
    • Piper Sandler Ophthalmology and Diabetes Symposium 2022 (05/23/22-05/25/22)
    • Raymond James Chief Credit Officer Symposium 2022
    • UBS Global Healthcare Conference 2022 (05/23/22-05/25/22)

      • Previously Announced  Conferences:
        • Oppenheimer 23rd Annual Israeli Conference 2022 (05/21/22-05/24/22)
  • Company Meetings: DIDI.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: BBLN, ECL, JPM, SVC, VSTO.
  • Update: None of note.
  • R&D Day: None of note..
  • Company Event:
    • Howmet Aerospace Inc 2022 Technology Day. (HWM)
    • Jaguar Health Canine Cancer: Take C.H.A.R.G.E. (Canine Health And ReGistry Exchange) Launch Event in NYC 2022 (JAGX).
    • MSA Safety’s Technology Day 2022.
  • Industry Meetings:
    • Cambridge Healthtech Institute(R)s 6th Annual Immuno-Oncology Summit Europe 2022 (05/23/22-05/25/22)
    • Bioinformatics Strategy Meeting East Coast USA 2022
    • Psychedelic Therapeutics and Drug Development Conference 2022 (05/23/22-05/24/22)
      • Previously Posted and Ongoing Conferences:
        • Annual Digestive Disease Week Meeting DDW 2022 (05/21/22-05/24/22)
        • European Society of Cardiology Heart Failure Conference 2022 (05/21/22-05/24/22)
        • National Restaurant Association Show 2022 (05/21/22-05/24/22)
        • 24th European Congress of Endocrinology ECE 2022 (05/21/22-05/24/22)
        • American Psychiatric Association Annual Meeting (in-person) 2022 (05/21/22-05/25/22)
        • American Association of Orthodontics (AAO) Annual Session 2022 (05/21/22-05/24/22)
        • 16th EILAT Conference on New Antiepileptic Drugs and Devices (05/21/22-05/25/22)

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: