CAPIS Morning Note – 06/27/22: Stocks Continue To Rally Into Monday Morning.

Overnight Summary: The S&P 500 closed Friday at 3911.75 (higher by 3.06%) from Thursday at 3795.73 (higher by 0.95%).  Futures are trading higher in the premarket session but off the morning’s highs. The overnight high of 3947.75 was hit at 4:05 a.m. EDT. The low was hit at 3895 at 8:05 p.m. EDT, a range…

Overnight Summary: The S&P 500 closed Friday at 3911.75 (higher by 3.06%) from Thursday at 3795.73 (higher by 0.95%).  Futures are trading higher in the premarket session but off the morning’s highs. The overnight high of 3947.75 was hit at 4:05 a.m. EDT. The low was hit at 3895 at 8:05 p.m. EDT, a range of 52 points high to low which is a bit above the range of late with 45 the average range. At 7:15 a.m. EDT the current price is 3930.50 which is 0.36% and +14.25 points.

Breaking News: NATO set to increase its high-readiness forces to over 300,000 in massive military buildup. (CNBC)

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: None of note.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • RAMP: Issued an additional 311,868 shares of common stock the aggregate to the co-founders pursuant to a distribution related to Data Plus Math Corporation acquisition.
  • Selling Shareholders of note:
    • JAMF: Filed Form S-3ASR.. Common Stock by selling shareholders.
    • NEXT: Files for 3,374,741 share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CLLS: Filed Form F-3.. $200 Million Mixed Security Shelf.
    • EZGO: Filed Form F-3/A $200 Million Mixed Shelf — Doubles previous filing.
  • Convertible Offering & Notes Filed:
    • ALTR: Announces Sale of $230 Million Aggregate Principal Amount of Convertible Senior Notes.

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: AXDX 53%, CLVS 46%, MGNX 43%, RAD 42%, PTCT 42%, NVTA 39%, LXRX 38%, TRHC 35%, QURE 34%, BGNE 34%, OMER 33%, VCYT 32%, APPN 31%, PACB 31%, NVCR 29%, DNLI 29%, CVNA 29%, NVAX 28%.
    • Trading Down: AVYA -28%, ACAD -25%, GTE -19%, EC -19%, SQQQ -19%, CAMP -19%, TELL -16%, REI -15%, CENX -14%, DVA -14%, MFGP -14%, KLXE -14%, NR -13%, TECK -13%, PUMP -13%, SM -12%, EGLE -12%, CRK -12%.
  • News Items After the Close:.
    • Chevron(CVX) to Cut Back in California, Remain Based in State. (WSJ)
    • Spirit Airlines (SAVE) determines JetBlue’s (BLUE) revised offer is not a Superior Proposal; Frontier (ULCC) will increase the per-share cash consideration payable to Spirit to $4.13 in cash.
    • Goldman Sachs (GS) is looking to raise $2 billion from crypto funds, vulture investors and other financial institutions to buy up @CelsiusNetwork assets in the event of a bankruptcy. — (COINDESK)
    • Portland General Electric (POR) will replace Digital Turbine (APPS) in the S&P MidCap 400.
    • Digital Turbine (APPS) will replace Tivity Health (TVTY) in the S&P SmallCap 600.
    • BAE Systems (BAESY) awarded a $12 billion US Air Force contract for Integration Support.
    • Beijing on Saturday said it would allow primary and secondary schools to resume in-person classes and Shanghai’s top party boss declared victory over COVID-19 after the city reported zero new local cases for the first time in two months. (Reuters)
    • Iran nuclear talks will resume “quickly,” according to EU foreign policy chief Josep Borrell.
  • News Items Over the Weekend:
    • Employees Scrambled to Keep Robinhood (HOOD) Afloat in January 2021 Meme-Stock Frenzy, House Report Finds. (WSJ)
    • Europe Turns to an Unlikely Source to Replace Russian Energy: Ukraine. (WSJ)
    • Value Investors Bet Recent Market Leadership Is Just the Start. (WSJ)
    •  Barron’s:
      • Positive View: DHI, LEN, TOL, CLF, NUE, STLD, CDRE, GM, K, .
      • Cautious View: CVNA, LCID.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Aclaris Therapeutics (ACRS) appoints Gail Cawkwell, MD, PhD, as Chief Medical Officer.
    • Bird (BRDS) Receives Notice of Non-Compliance with NYSE Trading Share Price Listing Rule.
    • Blonder Tongue (BDR) Reports Delisting, Will Trade on OTCQB.
    • Ebang International (EBON) Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency.
    • FF Top Holding LLC (FFIE) delivered a Notice of removal of Mr. Brian Krolicki from the Board of Directors of Faraday Future.
    • Humacyte (HUMA) Expands Board of Directors with Appointment of Diane Seimetz, Ph.D.
    • Imperial Petroleum (IMPP) Announces Receipt of Nasdaq Notice.
    • NYSE to Suspend Trading Immediately in Jupai Holdings Limited (JP) and Commence Delisting Proceedings.
    • McDonald’s (MCD) Promotes Kevin Ozan to Senior Executive Vice President, Strategic Initiatives, Ian Borden to Chief Financial Officer and Marion Gross to Global Chief Supply Chain Officer.
    • Otis Worldwide (OTIS) on a Form 8-k filing it was noted Rahul Ghai, Executive Vice President and CFO, has provided Otis Worldwide with notice that he will be resigning his position with the Company for other opportunities.
    • SeqLL Inc. (SQL) Receives Nasdaq Notification Regarding Minimum Bid Requirements.
  • Buyback Announcements or News:
    • BRKL: Form 8K.. On June 24, 2022, Brookline Bancorp, Inc. (the “Company”) suspended its stock repurchase program. The stock repurchase program has been in effect since November 15, 2021.
  • Stock Splits or News: 
    • BRQS 1 for 16 reverse split, effective Monday.
    • IT Tech Packaging, Inc. (ITP) Announces Notification of NYSE American Continued Listing Deficiency and Intention to Complete a Reverse Stock Split.
  • Dividends Announcements or News: None of note.

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

S&P 500 +18, Dow Jones +105, NASDAQ +70, and Russell 2000 +4. Europe higher and Asia higher as well.  VIX Futures are at 28.25 from 28.46 Friday morning and the VIX closed at 27.23 from 29.05 on 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 higher vs Yen. US 10 year Treasury sees yields at 3.171% from 3.12% Friday morning. Bitcoin is at $21,377 from $21,159 Friday morning and is higher by 0.53% this morning. As of 8:06 a.m. EDT.

Sector Action – 06/24/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Communication Services, Consumer Cyclical, Technology, Industrials, Basic Materials, Financials of note.
  • Daily Negative Sectors: none of note.
  • One Month Winners: Consumer Cyclical, Communication Services, Technology of note.
  • Three Month Winners: none of note.
  • Six Month Winners: Energy of note.
  • Twelve Month Winners: Energy and Utilities of note.
  • Year to Date Winners: Energy of note.

“Rocket man, burning out his fuse up here alone”  First weekly gain after three consecutive weeks of loses.  It was the SP500’s biggest one-day % gain in two years after moving up 3.06% on the day.  Updated 06/24/22 close.

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

  • Monday After the Close: NKE, TCOM of note.
  • Tuesday Before the Open: SNX, EPAC 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 06/24/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ZLAB +5%.
  • Gap Down: BRQS -23%, SIGA -12%, SAVE -9%, DWAC -6%, ABUS -4%.

Insider Action: EVA sees Insider buying with dumb short selling.  TCDA, FMAO sees Insider buying with smart short sellers. 06/24/22 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: SAVE, BNTX, HOOD, MO, COIN, DWAC  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: U.K. says Ukraine freedom is worth the price of inflation. (Bloomberg)
  • Bloomberg Most Read Story: Russia defaults on debt for the first time since 1918. (Bloomberg)
  • G-7 discuss a cap on Russian oil and Russia misses foreign debt payment. (NYT)
  • NATO sets high readiness forces at 300,000 a big increase. (CNBC)
  • British Pound hits lowest level since March of 2020. (Bloomberg)
  • Western military officials note that Russia will exhaust its combat capabilities and have to stop offensive in Eastern Ukraine. (The Washington Post)
  • Global minimum tax plan being held up by Hungary and U.S. Congressional opposition. (WSJ)
  • Taiwan and U.S. to hold trade talks today. (CNBC)
  • Friday was the busiest travel day since February 2020.
  • Record travel on the road for the 4th of July weekend. (Reuters)
  • Supreme Court to rule this week on a case to limit climate changes by the government. (NYT)
  • Apple (AAPL) preparing for the release of iPhone 14. (Bloomberg)
  • Tesla (TSLA), Ford (F) and General Motors (GM) increase price of EV vehicles. (WSJ)
  • 3M (MMM) could have billions in liability over earplugs. (WSJ)

Moving Average Update:

  • Score improves to 45% from 34%.  Updated 06/24/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President participated in a G7 Summit Session on Ukraine, 4:00 a.m. EDT
    • The President participated in a working lunch with Outreach Partners and heads of International Organizations on Climate, Energy, and Health, 6:30 a.m. EDT
    • The President participated in a family photo with G7 leaders as well as guest country leaders and heads of International Organizations, 8:00 a.m. EDT
    • The President participates in a plenary with outreach partners and International Organizations on Food Security and Gender Equality, 9:30 a.m. EDT

Economic: 

  • May Durable Orders are due out at 8:30 a.m. EDT and are expected to fall to 0.1% from 0.4%. 
  • May Pending Home Sales are due out at 10:00 a.m. EDT and are expected to come in at -3.5% from -3.9%.
  • Dallas Fed Mfg Survey 10:30 a.m. EDT 
  • The latest NYSE and NASDAQ Short Interest from May 26th through June 13th during which the S&P 500 fell -7.60%.

Federal Reserve / Treasury Speakers:

  • Federal Reserve New York President John Williams 6:30 p.m. EDT

M&A Activity:

  • BSN SPORTS Acquires the Eastbay Team Sales Business from Foot Locker Retail, Inc. (FL).
  • Primoris Services (PRIM) to acquire PLH Group for $470 million in cash.
  • TreeHouse Foods (THS): Investindustrial in discussions to acquire THS meal-prep unit for $1.3 billion. (Bloomberg)

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Cantor Fitzgerald Technology ESG Conference 2022 (06/27/22-06/29/22)
    • HC Wainwright 1st Annual Mental Health Conference: Neuropsychiatry, Psychedelics, and Beyond 2022
    • Truist Securities Cell Therapy Symposium 2022 (06/27/22-06/28/22)
      • Previously posted and ongoing conferences:
        • HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
  • Company Meetings: BIDU, DELL
  • Fireside Chat: Westwater Resources (WWR) Fireside Chat With Water Tower Research.
  • Investor/Analyst Day/Calls: ABUS, , CDE, RCM, RLAY, THO.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • K & S AG Baader (KPLUY) North America Roadshow 2022.
    • Qurate Retail, Inc. (QRTEA/QRTEB) Virtual Investor Event 2022.
  • Industry Meetings:
    • Insurance Innovators USA (06/27/22-06/28/22)
    • Sensors Converge 2022 (06/27/22-06/29/22)
      • Previously posted and ongoing conferences:
        • Society for Birth Defects Research & Prevention (BDRP) Annual Meeting (06/25/22-06/29/22)
        • Federation of American Societies for Experimental Biology: The NAD+ Metabolism and Signaling Conference 2022 (06/26/22-06/30/22)
        • NACDA (National Association of Collegiate Directors of Athletics) Convention 2022 (06/26/22-06/29/22)

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: