Overnight Summary: The S&P 500 closed Tuesday at 3821.55 (lower by -2.01%) from 3900.11 (lower by -0.30%) on Monday. Futures are trading lower in the premarket session. The overnight high of 3835 was hit at 1:05 a.m. EDT. The low was hit at 3812 at 6:00 a.m. EDT, a range of 23 points high to low which is below the range of late with 45 the average range. At 7:00 a.m. EDT the current price is 3815.75 which is -0.25% and -9.75 points.
Breaking News: Bed, Bath & Beyond (BBBY) CEO leaves and misses quarterly expectations. (CNBC)
Earnings Out After The Close:
- Beats: PRGS +0.09
- Flat: None of note.
- Misses: AVAV (0.10)
- IPOs Priced or News: None of note.
- New SPACs launched/News: None of note.
- Secondaries Priced:
- GLPI: Prices offering of 6.9 million shares of common stock for gross proceeds of $308.8 million.
- Notes Priced of note:
- PNR: Prices $400 Million Senior Notes Offering.
- Common Stock filings/Notes:
- ETNB: Proposed Underwritten Public Offering of Common Stock, Pre-Funded Warrants and Warrants.. $75 Million.. BAC and Leerink bookmanagers.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering:
- MMAT: Announces Closing of $50 Million Registered Direct Offering.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- CALT: Filed Form F-3.. $200 Million Mixed Shelf.
- HUDI: Filed Form F-3.. $300 Million Mixed Shelf.
- STT: Filed Form S-3ASR.. Mixed Shelf Offering.
- Convertible Offering & Notes Filed:
- ASPN: Proposed Concurrent Public Offerings of Common Stock and Green Convertible Senior Notes due 2027 — $225 Million Common Stock.. BCS, Jefferies and BAC Bookmanagers.
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: XAIR +20%, FTDR +7%, SNCY +6%, LRN +6%, ORA +6%, PINS +4%.
- Trading Down: ASPN -22%, ICVX -17%, AVAV -9%, HUDI -5%.
- News Since The Close:
- The Walt Disney Company (DIS) Board of Directors unanimously votes to extend Bob Chapek’s contract as CEO for three years.
- Walmart (WMT): Texas AG Paxton “launches investigation into Walmart for potentially deceiving Texans about opioids”. (Announcement)
- Tesla (TSLA) lays off hundreds of autopilot employees in California. (Bloomberg)
- U.S. Deputy Commerce Secretary: U.S. Will Take A Balanced Approach On China Tariffs. Expect Congress To Pass Competition Bill In Next Weeks. (BBG TV)
- CVS removes purchase limit on Plan B pills, says sales have ‘returned to normal’. (CNBC)
- General Dynamics (GD) NASSCO awarded a $500 million US Navy contract.
- Palantir Technologies (PLTR) awarded contract worth $36 million by the US Army.
- Exchange/Listing/Company Reorg and Personnel News:
- Bed Bath & Beyond (BBBY) appoints Independent Director Sue Gove interim CEO.
- Despegar (DESP) Announces Appointment of New Board Member.
- DMS: Announces CFO Transition.
- Engine Gaming & Media (GAME) Confirms Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- FreightCar America, Inc. (RAIL) Announces Additions to Board of Directors.
- Gatos Silver (GATO) appoints André van Niekerk as Chief Financial Officer.
- GrafTech International (EAF) appoints Marcel Kessel as CEO.
- Pinterest (PINS) Appoints Bill Ready as CEO; Co-Founder and CEO Ben Silbermann Transitions to Executive Chairman.
- View, Inc. (VIEW) Completes Q1 2022 10-Q Filing and Is Now Current with SEC Filings and Nasdaq Listing Requirements.
- Index Changes Coming up:
- Omnicell Inc (OMCL) will replace Coherent Inc. (COHR) in the S&P MidCap 400, and Stride Inc (LRN) will replace Omnicell in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
- Southwestern Energy Co. (SWN) will replace CDK Global Inc. (CDK) in the S&P MidCap 400, and Frontdoor Inc. (FTDR) will replace Southwestern Energy in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, July 6.
- Ormat Technologies Inc. (ORA) will replace CMC Materials Inc. (CCMP) in the S&P MidCap 400 effective prior to the opening of trading on Thursday, July 7.
- Enhabit Inc. (EHAB) will replace Loyalty Ventures Inc. (LYLT) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
- Sun Country Airlines Holdings Inc. (SNCY) will replace Neenah Inc. (NP) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
- Buyback Announcements or News:
- Copa Holdings (CPA) expands share repurchase program by US$100 million.
- Tarena International, Inc. (TEDU) Extends Its Share Repurchase Program.
- Stock Splits or News:
- SHOP: Is split adjusted … 10-1 split.
- Dividends Announcements or News:
- General Mills (GIS) Board of Directors Declares Six Percent Dividend Increase.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +3, Dow Jones +53, NASDAQ +4, and Russell 2000 +3. Europe lower and Asia lower as both trade lower for the first time in four trading days. VIX Futures are at 28.36 from 28.08 yesterday morning and the VIX closed at 28.36 from 26.95 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 3.162% from 3.249% yesterday morning. Bitcoin is at $20051 from $20,951 yesterday morning and is lower by -1.18% this morning. As of 8:06 a.m. EDT.
Sector Action – 06/28/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Energy of note.
- Daily Negative Sectors: Consumer Cyclical, Technology, Communication Services, Healthcare, Consumer Defensive, Industrials, Real Estate, Financial 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.
Consumer optimism is cooling off again dousing the continuation of a bounce. NASDAQ 100 was off 3.09%. USO and UNG were green and up 2.16% and 2.44% respectively. Updated 06/28/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Wednesday After the Close: FIZZ, MLKN of note.
- Thursday Before the Open: STZ, WBA, AYI, LNN of note.
Earnings of Note This Morning:
- Beats: PDCO +0.15, GIS +0.11, MSM +0.08.
- Flat: None of note.
- Misses: BBBY (3.10), MKC (0.17), UNF (0.13).
- Still to Report: PAYX, SCHN.
- Positive Guidance: IDCC, PDCO of note.
- Negative Guidance: EPAC, AVAV, PRGS, MKC of note.
Erlanger Research Advance/Decline Chart: Updated through 06/28/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: XAIR +16%, INO +10%, LRN +7%, FTDR +6%, SNCY +6%, ORA +4%, PINS +4%.
- Gap Down: ASPN -25%, ICVX -13%, AVAV -9%, NIO -8%, LYLT -6%, HUDI -5%.
Insider Action: OCFC sees Insider buying with dumb short selling. ALTG, PFSW, ARKR sees Insider buying with smart short sellers. 06/28/22 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: GIS, CCL, BBBY, PINS, MKC (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- 5 Things To Know Before The Stock Market Opens (CNBC)
- Bloomberg Lead Story: Stocks fall over growth worries; oil rises as well. (Bloomberg)
- Bloomberg Most Read Story: Tesla (TSLA) lays off 200 workers. (Bloomberg)
- Federal Reserve Cleveland President Loretta Mester support a 75 basis point raise in July. (CNBC)
- FDA recommends changing Covid-19 shot formula to focus on Omnicron. (CNBC)
- 1 million voters switched to the Republican Party. (AP)
- Mortgage demand stalls this week, again. (CNBC)
- Tesla (TSLA) to close San Mateo office and eliminate 200 jobs. (WSJ)
- Delta (DAL) offers free rebooking due to potential travel issues this upcoming weekend. (Bloomberg)
- Huntsman (HUN) may sell its textiles unit to SK Capital Partners. (Bloomberg)
- Beyond Meat (BYND) to offer sliced steak products. (WSJ)
- Byju looking to buy 2U Inc. (TWOU) for more than $1 billion. (Bloomberg)
- Robinhood Snacks looks at period tracking apps and potential to tie abortion tracking violating privacy. Duty free sales rise 34% as travelers make purchases.
Moving Average Update:
- Score drops to 25% from 42%…Need more power….where is Scotty?!?!!? Updated 06/28/22 close.
- President’s Public Schedule:
- The President participated in a greeting with NATO Secretary General Jens Stoltenberg, 4:00 a.m. EDT
- The President participated in an official greeting with NATO Secretary General Jens Stoltenberg and President Pedro Sánchez of Spain; The President participates in a family photo with Allied Heads of State and Government, 4:20 a.m. EDT
- The President attended Meeting of the North Atlantic Council Session #1 at the level of Heads of State and Government, 4:30 a.m. EDT
- The President attended a trilateral meeting with President Yoon Suk-Yeol of the Republic of Korea and Prime Minister Fumio Kishida of Japan, 8:25 a.m. EDT
- The President attends Meeting of the North Atlantic Council Session #2 at the level of Heads of State and Government, 9:00 a.m. EDT
- The President meets with President Recep Tayyip Erdoğan of Turkey to discuss the Alliance’s collective defense and security and a range of issues important to the bilateral relationship, 11:45 a.m. EDT
- The President attends the Transatlantic Dinner hosted by President Pedro Sánchez of Spain, 1:05 p.m. EDT
- MBA Mortgage Applications 7:00 a.m. EDT U.S. MBA 30-year Mortgage Rate Actual: 5.84% Vs 5.98% Previous. U.S. MBA Mortgage Applications Actual: 0.7% Vs 4.2% Previous.
- Q1 GDP (final estimate) is due out at 8:30 a.m. EDT and expected to remain at -1.5%.
- EIA petroleum Report 10:30 a.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve Cleveland President Loretta Mester 6:30 a.m. EDT
- There is some risk in the U.S. that longer-term inflation expectations of businesses and households will continue to rise.
- Policymakers cannot be complacent about a rise in longer-term inflation expectations.
- More costly error is assuming inflation expectations are anchored when they are not.
- Current inflation situation a very challenging one.
- If inflation expectations become unanchored, monetary policy would have to act more forcefully to return inflation to goal.
- Federal Reserve Chairman Jerome Powell 9:00 a.m. EDT
- Federal Reserve San Francisco President Mary Daly 12:30 p.m. EDT
- Federal Reserve St. Louis President James Bullard 1:05 p.m. EDT
- American Software (AMSWA) to acquire Starboard Solutions.
- Gaming and Leisure Properties (GLPI) to Acquire Real Property Assets of Bally’s (BALY) Two Rhode Island Assets for $1.0 Billion.
- Walmart (WMT) To Acquire AR Optical Tech Company Memomi.
Meeting & Conferences of Note:
- Sellside Conferences:
- Citigroup Brazil Equity Conference
- H.C. Wainwright Preclinical Cancer Drug Discovery Conference 2022
- Jefferies Israel Tech Trek
- Stifel Virtual Cell Therapy Conference 2022 (06/29/22-06/30/22)
- UBS Sustainable Finance Conference 2022 (06/29/22-06/30/22)
- Previously posted and ongoing conferences:
- Cantor Technology ESG Conference
- Cantor Fitzgerald Technology ESG Conference 2022 (06/27/22-06/29/22)
- Credit Suisse Global Women’s Financial Forum
- Credit Suisse Inaugural Private Software Company Conference
- HSBC Global Digital Finance Forum 2022 (06/20/22-06/30/22)
- Keybanc Industrial Private Company Conference
- Wells Fargo “Bricks to Clicks” Digital Conference (06/28/22-06/29/22)
- Company Meetings: PHVS
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AGEN, FDX, HAE, PFGC, VIRI
- Update: None of note.
- R&D Day: NGM Biopharmaceuticals (NGM) Virtual R&D Event 2022.
- Company Event: BioNTech SE (BNTX) Capital Markets Day
- Industry Meetings:
- The Advanced Materials Show 2022 (06/29/22-06/30/22)
- Moody’s US Housing and Housing Finance Executive Series IV
- Onco Cell Therapy Summit 2022 (06/29/22-06/30/22)
- Previously posted and ongoing conferences:
- Foam Expo North America 2022 (06/28/22-06/30/22)
- MedInvest Oncology Investor Conference 2022 (06/28/22-06/29/22)
- LifeSci 2nd Annual Genetic Medicines Symposium 2022 (06/28/22-06/29/22)
- Specialty & Agro Chemicals America 2022 (06/28/22-06/30/22)
- Battery Show Europe 2022 (06/28/22-06/30/22)
- Sensors Converge 2022 (06/27/22-06/29/22)
- 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: