Overnight Summary: Thee S&P 500 closed Friday at 4282.37 up 1.45% from Thursday at 4221.20 higher by 0.99%. The overnight high of 4292.75 was hit at 6:35 p.m. EDT. The low was hit at 4280.50 at 8:10 a.m. EDT, a range of ~12 points high to low which is a low-vol night.  At 7:15 a.m. EDT, the current price was 4291.25 which is 0.08% and +3.25 points. The 10-day average of the overnight range is 21.90 from 22.10. The average for May was 21.63.

Earnings Out After The Close: 

• IPOs Priced or News:
  • Azitra (AZTR) cuts proposed IPO size to 1.5 Million shares from 2.4 Million; still sees shares pricing between $4.50 – $5.50 each.
• New SPACs launched/News:
  • Blue World Acquisition Corporation (BWAQ) Announces Extension of the Deadline for an Initial Business Combination.
  • NET Power and Rice Acquisition Corp. II (RONI) Announce Gross Proceeds of At Least $670 million and Expect to Close Business Combination on June 8, 2023.
• Secondaries Priced:
  • BTMD: Announces Pricing of Secondary Offering of Common Stock.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • MMMB: Filed Form S-3.
  • OCTO: Filed Form S-1. 13,749,848 Shares of Common Stock.
  • PHGE: Filed Form S-3. 31,775,477 Shares of Common Stock.
  • ZKIN: Filed Form RW.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • CMMB: Form RW Filed 7,223,248 Common Shares Offered by the Selling Stockholders.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • BEEM: Files for $150 million mixed securities shelf offering.
  • BNRG: Filed Form F-3 — Mixed Shelf.
  • BRKR: Filed Form S-3ASR.. Mixed Shelf offering.
  • EPOW: Filed Form F-3.. $200,000,000 Mixed Shelf.
  • PEPG: Files $300 million mixed shelf securities offering.
  • WDAY: Filed Form S-3ASR.. Mixed Shelf.
• Debt/Credit Filing and Notes: None of note.
• Tender Offer:
  • NVO: Enters exclusive negotiations to acquire a controlling stake in BIOCORP, to be followed by a tender offer on all remaining shares.
• Convertible Offering & Notes Filed:
  • KW: Entered into a 6.00% Series C Cumulative Perpetual Preferred Stock and Warrant Purchase Agreement with Fairfax Financial Holdings Limited (FRFHF).

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: ETRN 48.4%, BHVN 39.8%, CVNA 35.3%, MDB 32.5%, CURO 31.2%, OMER 27.0%, EHTH 25.9%, PSTG 24.0%, CYH 23.6%, NX 22.8%, GRTS 20.8%, FIVN 20.0%, LE 19.3%, IRBT 18.7%, CC 18.2%, AYX 18.2%, VEEV 18.0%, AAOI 17.9%, IOVA 17.4%.
  • Trading Down: AAP -39.8%, TLYS -19.6%, DG -18.8%, FRBK -18.2%, MNK -16.3%, OKTA -16.2%, LXRX -13.8%, ATRA -13.3%, PVH -12.6%, GWRE -12.1%, IRTC -11.7%, MPAA -11.5%, HRTX -11.3%, CARA -9.4%.

• News Items After the Close:
  • SEC Drops 42 Enforcement Cases After Employees Accessed Restricted Records. (WSJ)
  • Palo Alto Networks (PANW) promoted to S&P 500, replacing Dish Network (DISH). (MarketWatch)
  • Kentucky Derby host Churchill Downs (CHDN) halts racing from June 7 through July 3 as conducts ‘top to bottom review’ after recent horse deaths. (MarketWatch)
  • Raytheon Technologies (RTX) awarded a $263.7 million modification to a previously awarded US Navy contract.
  • Lockheed Martin (LMT) awarded a $122 million modification to a US Air Force contract.
• News Items Over the Weekend:
  • Stocks that Defined the Week: NVDA, SOFI, KSS, AAP, DG,  TMUS (WSJ)
  • Bearish Bets Against S&P 500 Are Surging, Despite Love for Big Tech. (WSJ)
  • BTIG: “.. we remain skeptical on the big picture sustainability of this rally. .. We just saw the largest weekly inflow into QQQ of the year .. typically contrarian as [it] signal investors have ‘FOMO’ into the tail end of a move.” (CNBC Carl Q)
  • MORGAN STANLEY: “Our long-held baseline of a soft landing remains intact .. the economy will avoid a recession in 2023 .. inflation continues to move lower, slowly but surely .. We see the Fed on hold for an extended period before delivering the first 25bp cut in March 2024.” (CNBC Carl Q)
  • Saudi Arabia, Some OPEC Members Clash Over Oil-Production Quotas. (WSJ)
  • Chinese warship comes within yards of US destroyer in latest act of aggression in Taiwan Strait. (FoxNews)
  • President Biden signed over the weekend the Debt Ceiling Bill that pulls U.S. back from the brink of an unprecedented default. (MarketWatch)
  •  Barron’s:
    • Positive View: ATVI, VMW, HZNP, ETN, IBM of note.
    • Cautious View:  None of note.
    • Mixed View: None of note.
• Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

• Exchange/Listing/Company Reorg and Personnel News:
  • Index Changes:
    • Palo Alto Networks (PANW) will replace DISH Network (DISH) in the S&P 500, and DISH Network will replace Cutera (CUTR) in the S&P SmallCap 600.
    • Doximity (DOCS), Berry Global (BERY), BWX Technologies (BWXT), Planet Fitness (PLNT), Crown Holdings (CCK), Dropbox (DBX), Graphic Packaging (GPK), Ovintiv (OVV), ZoomInfo (ZI) and WESCO (WCC) will replace Dana  (DAN), John Wiley (WLY), Sunpower (SPWR), Ingevity (NGVT), Fulton Financial (FULT), Douglas Emmett (DEI), Victoria’s Secret (VSCO), Macerich (MAC), SiTime (SITM), and Navient (NAVI) respectively in the S&P MidCap 400.
      • All constituents being removed from the S&P MidCap 400 will be added to the S&P SmallCap 600 replacing PetMed Express (PETS), Comtech Telecom (CMTL), Eagle Pharma (EGRX), Children’s Place (PLCE), Rayonier Advanced Materials (RYAM), LivePerson (LPSN), Gannett (GCI), DMC Global (BOOM), Genesco (GCO), and Zumiez (ZUMZ) respectively.
    • Artisan Partners Asset Management (APAM), California Resources (CRC), CarGurus (CARG), Moelis & Co. (MC), Phillips Edison (PECO), Schrodinger (SDGR), and UFP Technologies (UFPT) will replace LendingTree (TREE), Tredegar (TG), Inogen (INGN), Douglas Elliman (DOUG), FARO Technologies (FARO), Cara Therapeutics (CARA) and Big Lots (BIG) in the S&P SmallCap 600.
    • Russell 3000 2023  Preliminary Additions / Deletions
    • Russell Microcap 2023  Preliminary Additions / Deletions
  • Diageo plc (DEO) appoints Debra Crew interim CEO after Ivan Menezes has medical setback.
  • Expedia Group (EXPE): Samuel Altman resigns from board of directors.
  • Fusion Fuel (HTOO) Appoints Frederico Figueira de Chaves As CEO.
  • Harsco (HSC) will change its name to Enviri Corporation effective immediately; will begin trading under the NYSE ticker “NVRI” on June 19, 2023.
  • LoanDepot (LDI) announces organizational changes, names new CFO.
  • Navidea Biopharmaceuticals, Inc. (NAVB) Receives NYSE American Notice.
  • Phunware (PHUN) Announces CFO Transition.
• Buyback Announcements or News: None of note.
• Stock Splits or News:
  • Acorda Therapeutics (ACOR) Announces Completion of 1-for-20 Reverse Stock Split.
  • Aptose Biosciences (APTO) Provides Update on Reverse Stock Split.
  • Greenlane (GNLN) Announces Board’s Approval of Reverse Stock Split Ratio.
• Dividends Announcements or News: 
  • SLB Goes ex div tomorrow for $0.25.

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

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

• Daily Positive Sectors: Basic Materials, Industrials, Energy, Consumer Cyclical, Real Estate, Financial of note.
• Daily Negative Sectors: None of note.
• One Month Winners: Technology, Communication Services, Consumer Cyclical of note.
• Three Month Winners: Communication Services, Technology, Consumer Cyclical, of note.
• Six Month Winners: Technology, Communication Services, Consumer Cyclical of note.
• Twelve Month Winners: Technology, Industrials, Communication Services of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

For a while, good news about the U.S. economy translated to bad news for the stock market. That dynamic seems to have flipped this week.  Major stock indexes climbed Friday on the back of a jobs report that blew past Wall Street expectations, signaling that hiring remains robust even as other data suggest inflation continues to slow. It added momentum to a market already bouncing from Washington’s 11th-hour deal to avert a government default.  The Dow Jones Industrial Average jumped about 2.1% Friday, or more than 700 points, its best session of the year and enough to claw back recent days’ losses to finish the week in the green. The S&P 500 edged 1.5% higher, while the technology-heavy Nasdaq Composite rose 1.1% to its sixth-straight weekly gain and a 52-week high.  (WSJ – edited by QPI)

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

• Gap Up: DAWN +29%, IMGN +14%, GTHX +9%, APAM +7%, ELTX +7%, PECO +6%, CARG +5%, PANW +5%, SDGR +5%, UFPT +4%, PLNT +4%, MC +4% of note.
• Gap Down: RCUS -7%, DISH -7%, DOUG -6%, LDI -6%, EPAM -5%, RYAM -5%, CARA -4%, ZUMZ -4%, GCO -4%, TG -4%, BOOM -4% of note.

Insider Action: HIBB sees Insider buying with dumb short selling.  CPE, HHC sees Insider buying with smart short sellers.

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

• 5 Things You Need to Know to Start Your Day. (Bloomberg) 
• 5 Things to Know Before The Market Opens. (CNBC)
• Stocks making the biggest moves this morning PANW AAPL TGT DG EL VLY. (CNBC)
• Bloomberg Lead Story: A $1.5 Trillion Backstop for Homebuyers Props Up Banks Instead. (Bloomberg)
• Bloomberg  Most Shared Story: Oil Rises on Saudi Arabia’s Go It Alone July Production Cuts. (Bloomberg)
• Oil climbs on Saudi cut while US Futures fluctuate: Markets Wrap. (Bloomberg)
• Apple (AAPL) at record high amid mixed reality headset launch. (Bloomberg)
• Borrowers brace for student loan payments to resume with Debt Ceiling Bill passage. (CNBC)
• “SpiderMan:Across The Spider-Verse” which is produced by Sony (SNE) opened to $120.5 million, second highest debut of 2023. (CNBC)
• KKR nears deal to buy Circor International (CIR) for $49 a share. (WSJ)
• The Week Ahead with Debt Ceiling Deal done and Fed in quiet mode into next week’s FOMC Announcement. (Yahoo Finance)
• Republicans Former Vice President Mike Pence and Former New Jersey Chris Christie to enter the GOP Presidential Race. (CNN)

Geopolitical: 

M&A Activity: 

• CIRCOR International (CIR) Enters Definitive Agreement to be Acquired by KKR for $1.6 Billion.
• Camping World (CWH) announced that it is set to acquire Roy Robinson RV Center, located in the greater Seattle Washington market.
• UBS AG (UBS) expects to complete Credit Suisse (CS) acquisition as early as June 12, 2023.

• Top Shareholder Meetings: GCI, GDS, SLG
• Fireside Chat: FIVN
• Investor/Analyst Day/Calls: AKRO, COGT, ERAS, LUMN, MRK, MRNA, NAMS, TLSA
• Update: None of note.
• R&D Day: None of note.
• Company Event:
  • Apple’s (AAPL) Worldwide Developers Conference. (06/05/23-06/06/23)
• Industry Meetings:
  • Biotechnology Innovation Organization (BIO) International Convention 2023 (06/05/23-06/08/23)
  • 121 Mining Investment New York 2023 (06/05/23-06/06/23)
    • Previously posted and ongoing conferences:
      • American Society of Clinical Oncology ASCO Annual Meeting 2023 (06/02/23-06/06/23)
      • American Transplant Congress (ATC) 2023 (06/03/23-06/07/23)
      • International Society for Magnetic Resonance in Medicine (ISMRM) and International Society of MR Radiologists and Technologists (ISMRT) Annual Meeting 2023 (06/03/23-06/08/23)
      • American Academy of Sleep Medicine and Sleep Research Society 37th Annual SLEEP 2023 (06/03/23-06/07/23)
      • 71st ASMS Conference on Mass Spectrometry and Allied Topics 2023 (06/04/23-06/08/23)
      • World Nuclear Fuel Market 2023 (06/04/23-06/06/23)
      • OSA Optical Design & Fabrication Congress 2023 (06/04/23-06/08/23)
      • Public Risk Management Association (PRIMA) Conference 2023 (06/04/23-06/07/23)

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: