Overnight Summary: The S&P 500 closed Wednesday at 3789.99 (higher by 1.46%) from 3735.48 (lower by -0.38%) on Tuesday. Futures have trading lower overnight. The overnight high of 3833.25 was hit at 9:20 a.m. EDT. The low was hit at 3695 at 4:20 p.m. EDT, a range of 41 points high to low which is within the range of late with 45 the average. At 7:20 a.m. EDT the current price is 3707.50 which is -2.27% and -86 points.
Breaking News: Swiss National Bank raises 50 basis points in a surprise raise after the Bank of England. (Reuters)
Technical Perspective: Current Technical thoughts from Fred Meissner, CMT – past president of the MTA. Been calling for a low in June and a negative 2q GDP print. Click here.
Earnings Out After The Close:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- ACLX: Prices offering of 7.0 million shares of common stock at $16.00 per share.
- FGF: Announces Pricing of Public Offering.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- DAWN: Files for Offering of Up to 10M Shares of Common Stock.
- O: Enters into sales agreement related to 120 million share common stock offering.
- KERN: Filed Form S-1.. Offering.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering:
- ELYS: Announces Closing of $3.0 Million Registered Direct Offering.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- EAF: Filed Form S-3ASR.. Mixed Security Shelf.
- LEV: Filed Form F-10.. US$350,000,000 Mixed Shelf.
- PLG: Files for $250 million mixed securities shelf offering.
- WFRD: Filed Form S-3ASR.. Mixed Shelf Offering.
- Convertible Offering & Notes Filed:
- YNDX: Enters Into Agreement to Purchase 84.9% of Its Convertible Notes.
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: BRSP +7%.
- Trading Down: KPTI -4%.
- News Since The Close:
- Elon Musk expected to reiterate interest in owning Twitter at meeting Thursday. (MarketWatch)
- Amazon (AMZN) plans to expand into 5 new countries across Africa, South America, and Europe. (BI)
- Lego to build $1 billion, carbon-neutral toy factory in Virginia. (MarketWatch)
- Exchange/Listing/Company Reorg and Personnel News:
- Activision Blizzard Board (ATVI) discloses independent directors review of workplace issues.
- Assoc Banc-Corp (ASB) names Derek Meyer as its next CFO.
- Sarissa Capital Intends to Vote “Abstain” at the Amarin (AMRN) Annual Meeting.
- M&T Bank (MTB) President and Chief Operating Officer Rich Gold announces retirement 1q 2023 and will remain on the Board.
- Nvidia’s (NVDA) director sold $36 million worth common stock.
- Quoin Pharmaceuticals (QNRX) Receives Nasdaq Deficiency Notice Regarding Minimum Bid Price Requirement.
- Rockley Photonics (RKLY) CFO to step down.
- USA Truck (USAK) announced the appointment of George Henry as Executive Vice President and Chief Operating Officer.
- Vectrus (VEC) shareholders approve the combination with Vertex; will trade on the NYSE under the symbol “VVX”.
- Zeta Global (ZETA) names Jeanine Barnett Silberblatt, a Williams-Sonoma exec, to the Board.
- Buyback Announcements:
- CRH continues Share Buyback Program.
- Jiayin Group Inc. (JFIN) Announces $10 million Share Repurchase Plan.
- KLA Corporation (KLAC) Announces $6 Billion Share Repurchase Program.
- Shift4 Payments (FOUR) approved $50 million increase to the existing stock repurchase .
- Stock Splits: None of note.
- Dividends Announcements:
- AFC Gamma (AFCG) increases quarterly dividend $0.01 to $0.56 per share.
- BrightSpire Capital (BRSP) increases quarterly dividend $0.01 to $0.20 per share.
- CVB Financial (CVBF) increases quarterly dividend to $0.19 per share, a 5.6% increase.
- KLA Corporation (KLAC) 24% Increase to Quarterly Dividend.
- Ladder Capital Corp (LADR) Announces 10% Dividend Increase and Second Quarter 2022 Dividend to Holders of Class A Common Stock.
- Safehold (SAFE) increases its quarterly dividend to $0.177 per share, a 4% increase.
- W. R. Berkley Corporation (WRB) Increases Regular Quarterly Dividend and Declares Special Cash Dividend.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -90, Dow Jones -599, NASDAQ -332, and Russell 2000 -45. Europe lower and Asia lower ex Japan up 0.40%. VIX Futures are at 31.40 from 32.60 on Tuesday morning and the VIX closed at 29.62 from 34.02 yesterday. Gold higher with Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower and Natural Gas higher. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 3.45% from 3.366% yesterday morning. Bitcoin is at $21,084 from $21,050 $yesterday morning and is lower by -3.11% this morning. As of 8:01 a.m. EDT.
Sector Action – 06/15/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Consumer Cyclical, Communication Services, Technology, Real Estate, Financial, Healthcare, Industrials of note.
- Daily Negative Sectors: Energy of note.
- One Month Winners: Energy, Consumer Cyclical and Basic Materials of note.
- Three Month Winners: Energy and Utilities of note.
- Six Month Winners: Energy and Utilities of note.
- Twelve Month Winners: Energy and Utilities of note.
- Year to Date Winners: Energy of note.
Highest rate hike since 1994 and indexes want to party? After some zigs and zags from the 2 p.m. EDT announcement, indexes ended in the green. “It’s a bold strategy, Cotton. Let’s see if it pays off for ’em.” (shout out Pepper Brooks on The Ocho) Updated 06/15/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: ADBE, TCOM of note.
- Friday Before the Open: none of note.
Earnings of Note This Morning:
- Beats: CMC +0.76, JBL +0.10.
- Flat: None of note.
- Misses: None of note.
- Still to Report: KR.
- Positive Guidance: NUE of note.
- Negative Guidance: none of note.
Erlanger Research Advance/Decline Chart: Updated through 06/15/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: BRSP +6%, RKLY +5%, DRIO +5%, HGEN +4%.
- Gap Down: ACLX -5%, PLG -5%, REV -4%.
Insider Action: VFC, VST, AHCO, AAT, CHWY sees Insider buying with dumb short selling. BCOV sees Insider buying with smart short sellers. 06/15/22 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: JBL CMC TSLA (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- Bloomberg Lead Story: Stocks, Treasuries Slide As Recession Fears Return. (Bloomberg)
- Bloomberg Most Read Story: U.S. Retail Sales Post First Drop in Five Months as Autos Sales Plunge. (Bloomberg)
- Bank of England raises rates to 1.25%, fifth straight raise. (Bloomberg)
- Natural Gas prices spike in Europe as Russia limits supply again. (WSJ)
- Decision to limit insurance on Russian tankers could spike crude oil prices further. (FT)
- FAA wants Airlines to get ready for rollout of 5G signals at airports in July, they are not so far. (Reuters)
- Hedge Fund Manager Jim Chanos of Kynikos looks at why stocks have a long way down from here. (Bloomberg)
- Tesla (TSLA) raises car prices. (Reuters)
- Revlon (REV) files for bankruptcy. (CNBC)
- Abbott (ABT) pauses baby formula production in Michigan after storms. (CNBC)
- McDonald’s (MCD) to settle tax case in France for $1.3 billion. (Bloomberg)
- Worldwide Wrestling (WWE) board looks at a $3 million hush fund by Chairman Vince McMahon. (CNBC)
- Robinhood Snacks looks at Lego’s first U.S. factory to keep up with demand from kid’s … and adults.
Moving Average Update:
- Score remains at zero. Updated 06/15/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 10:30 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 12:15 p.m. EDT
- The President signs into law S. 3580, the Ocean Shipping Reform Act of 2022, 3:10 p.m. EDT
- May Housing Starts are due out at 8:30 a.m. EDT and expected to rise to 1,730,000 from 1,724,000.
- Philadelphia Fed Index is due out at 8:30 a.m. EDT and expected to rise to 5 from 2.6.
- Initial Jobless Claims 8:30 a.m. EDT
- EIA Natural Gas Report 10:30 a.m. EDT
Federal Reserve / Treasury Speakers:
- Applied Materials (AMAT) Broadens its Technology Portfolio for Specialty Chips with Acquisition of Picosun.
- LifeWorks (TSX: LWRK) to be acquired by TELUS in C$2.9 billion transaction.
- Prudential Bancorp, Inc. (PBIP) Receives Shareholder Approval for Merger with Fulton Financial Corporation (FULT).
Meeting & Conferences of Note:
- Sellside Conferences:
- BMO Capital Markets Women in FICC Industry Forum
- Cowen Next-Gen Fuel Summit: Renewable Diesel & SAF 2022
- Evercore ISI Global Clean Energy & Transition Technologies Summit
- Needham & Co. Debt Financing in the US Cannabis Industry Webinar 2022.
- Previously posted and ongoing conferences:
- Bank of America Healthcare in Napa Forum
- Citi 11th Annual European Healthcare Conference 2022 (06/14/22-06/16/22)
- Deutsche Bank 19th annual dbAccess Global Consumer Conference 2022 (06/14/22-06/16/22)
- Deutsche Bank Global Auto Industry Conference (06/14/22-06/16/22)
- Exane BNP Paribas 24th European CEO Conference 2022 (06/14/22-06/17/22)
- Goldman Sachs 43nd Annual Global Healthcare Conference 2022 (06/13/22-06/16/22)
- HSBC 6th Annual Asia Credit Conference 2022 (06/13/22-06/24/22)
- JP Morgan European Insurance Conference 2022 (06/14/22-06/16/22)
- The JMP Securities Life Sciences Conference 2022 (06/15/22-06/16/22)
- Nomura Virtual Greater China Corporate Day June 2022 in US Part One (06/15/22-06/16/22)
- Sidoti Summer Small Cap Virtual Conference 2022 (06/15/22-06/16/22)
- Company Meetings: ADSK, DAL, EXPE, IR, PVH.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ALL, BXP, ETR, HON, ITT, KLAC, MEOH, RACE, TROX, TWTR.
- Update: None of note.
- R&D Day: LAVA.
- Company Event:
- Verint (VRNT)Engage Customer Engagement Conference 2022 (06/13/22-06/16/22)
- Industry Meetings:
- 7th Annual MarketsandMarkets Biomarker and Companion Diagnostics Conference 2022 (06/16/22-06/17/22)
- 29th Annual FSHD Society International Research Congress 2022 (06/16/22-06/17/22)
- International Society of Sports Nutrition (ISSN) 2022 (06/16/22-06/18/22)
- Alabama Defense Lawyers Association(ADLA) Meeting 2022
- Michigan Defense Trial Counsel (MDTC) Annual Meeting & Summer Conference 2022
- Maryland Defense Counsel (MDC) Annual Meeting & Crab Feast!
- North Carolina Association of Defense Attorneys NCADA 45th Annual Meeting & Judicial Candidates’ Forum (06/16/22-06/19/22)
- Previously posted and ongoing conferences:
- American Association of Heart Failure Nurses (AAHFN) 18th Annual Meeting 2022 (06/15/22-06/18/22)
- 2022 Florida Liability Claims Conference Florida Defense Lawyers Association (06/15/22-06/17/22)
- ISSCR 2022 – International Society for Stem Cell Research Annual Meeting / Conference (06/14/22-06/18/22)
- American Society for Nutrition’s Annual Conference ‘Nutrition 2022’ (06/14/22-06/16/22)
- Biotechnology Innovation Organization (BIO) International Convention 2022 (06/13/22-06/16/22)
- The 20th International Symposium on Pediatric Neuro-Oncology (ISPNO) Annual Meeting 2022 (06/11/22-06/15/22)
- Vaccine Technology VIII: An Engineering Conferences International (ECI) Conference Series 2022 (06/11/22-06/17/22)
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: