CAPIS Morning Note – 07/08/22: Job’s Friday Up at 8:30 a.m. As Stocks In Rally Mode With 4 Day Rally on S&P 500, Longest of Year. Abe Assassinated.

Overnight Summary: The S&P 500 closed Thursday at from 3845.08 (higher by 0.36%) on Wednesday.  Futures are trading flat in the premarket session. The overnight high of 3909 was hit at 6:30 a.m. EDT. The low was hit at 3882.50 at 5:25 p.m. EDT, a range of 28 points high to low which is  below…

Overnight Summary: The S&P 500 closed Thursday at from 3845.08 (higher by 0.36%) on Wednesday.  Futures are trading flat in the premarket session. The overnight high of 3909 was hit at 6:30 a.m. EDT. The low was hit at 3882.50 at 5:25 p.m. EDT, a range of 28 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 3903.25 which is -0.04% and -1.75 points.

Breaking News: Shinzo Abe, Japan’s Former Prime Minister, dead after being  assassinated. (Bloomberg)

Earnings Out After The Close:

  • Beats: LEVI +0.06.
  • Flat: None of note.
  • Misses: WDFC (0.21).

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Kingswood Acquisition Corp. (KWAC) and Wentworth Management Services LLC Announce Definitive Merger Agreement.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • EVAX: Filed Form F-1.. 4,649,250 Ordinary Shares Represented by ADS
    • SPRC: Filed Form F-3.. Up to 10,638,300 Ordinary Shares
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • NRIX: $55 Million Registered Direct Offering.. Redmile bookmanager.
  • Selling Shareholders of note:
    • Perella Weinberg Partners (PWP) files for 20 million share common stock offering; also files for 1,942,590 share common stock offering by selling shareholder..
  • Private Placement of Public Entity (PIPE):
    • Annexon (ANNX) Announces $130 Million Private Placement Financing.
    • Provention Bio (PRVB) announces $60 million private placement.
    • STAF: Closing of $4 Million Private Placement Priced At-The-Market Under Nasdaq Rules.
  • Mixed Shelf Offerings: None of note.
  • Convertible Offering & Notes Filed: None of note.

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: MRC +5%.
    • Trading Down: WDFC -9%, NRIX -9%, GME -5%, NUS -5%, ALEC -4%, TWTR -4%.
  • News Since The Close:
    • Spirit Airlines (SAVE) Announces Intention to Adjourn Special Meeting of Stockholders.
    • Twitter (TWTR) Lays Off Third Of Talent Team As Company Faces Pressures. (WSJ)
    • “Musk’s team has stopped engaging in certain discussions around funding for the $44 billion deal (TWTR), including with a party named as a likely backer, one of the people said.” (Cnbc Carl Q Tweet)
    • Coinbase (COIN) investigating issue: “US Bank Accounts Instant Withdrawals Outage” Says: We are in contact with our payment processing partner regarding this issue.
    • Qatar Airways’ Boeing (BA) 737 deal has lapsed, UK court told. (Reuters)
    • TDY – Teledyne FLIR Defense Receives $62 Million in Orders from U.S. Military for Centaur Unmanned Ground Vehicles.
    • Gamestop (GME) CFO fired after one year on the job. Odd that occurs one day after stock split announcement.
    • General Dynamics (GD) awarded $280 million firm-fixed-price Army contract.
    • Occidental Petroleum (OXY): Berkshire Hathaway raises stake, purchases approximately 12 mln more shares on July 5-6.
    • US to make 144,000 more doses of monkey pox vaccine available.
  • Exchange/Listing/Company Reorg and Personnel News:
    • GME: CFO let go, layoffs across the company. (Axios)
    • Innovid (CTV) Announces Changes to its Board of Directors.
    • MySize (MYSZ) Receives Nasdaq Listing Extension.
    • NewAge, Inc. (NBEV) Announces Departure of Chief Financial Officer and Appointment of Principal Financial Officer.
    • Voya Financial (VOYA) appoints Heather Lavallee as CEO.
  • Buyback Announcements or News: 
    • Ranger Oil (ROCC) is increasing its share repurchase program.
    • Valero Energy (VLO) authorizes up to $2.5 billion for share repurchases.
    • WISeKey (WKEY) Announces the End of its Class B Share Buyback Program.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News:
    • John B. Sanfilippo & Son, Inc. (JBSS) Board Declares Special Cash Dividend of $1.50 per share of Common Stock and Class A Common Stock and Regular Annual Cash Dividend of $0.75 per share of Common Stock and Class A Common Stock.
    • Levi Strauss (LEVI) increases quarterly dividend by $0.02 to $0.12 per share.
    • Ranger Oil (ROCC) is initiating an inaugural quarterly cash dividend.

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

S&P 500 -7, Dow Jones +11, NASDAQ -51, and Russell 2000 -2. Europe higher ex FTSE and Asia higher ex Shanghai.  VIX Futures are at 26.85 from 27.13 yesterday morning and the VIX closed at 26.08 from 26.73 yesterday. Gold higher with Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.983% from 2.932% yesterday morning. Bitcoin is at $21,532 from $20,455 yesterday morning and is lower by -0.41% this morning. As of 7:57 a.m. EDT.

Sector Action – 07/07/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Energy, Consumer Cyclical, Technology, Communication Services, Basic Materials of note.
  • Daily Negative Sectors: none of note.
  • One Month Winners: Healthcare  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.

Minty fresh breath today as markets started great and finished even better.  Advances led decliners 3 to 1.  $RUT bounced back from yesterday up 2.43%.  UNG jumped 12%.  Updated 07/07/22 close.

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

  • Friday After the Close: none of note.
  • Monday Before the Open: AZZ, GBX 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: MRC, TSM, TH of note.
  • Negative Guidance: WDFC, NUS, UPST, IMOS of note.

Erlanger Research Advance/Decline Chart: Updated through 07/07/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: SRG +51%, MRC +8%, HNRG +6%, AHT +5%, LEVI +5%, RDUS +4%, PRVB +4%.
  • Gap Down: UPST -19%, WDFC -10%, GME -5%, ADCT -5%, NUS -4%, TWTR -4%.

Insider Action: No stock sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 07/07/22 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: LEVI, GME, TWTR, OXY, SAVE, UPST  (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Ex-Japanese Leader Assassinated.  (Bloomberg)
  • Bloomberg Most Read Story:  Netflix (NFLX) to stream Johnny Depp return to film in France.(Bloomberg)
  • Small Cap stocks begin to start their rally. (WSJ)
  • Putin notes his war could go on until the last Ukrainian is left standing. (CNN)
  • June Job’s Preview. (CNBC)
  • Rolls Royce CEO (RYCEY) sees rebound in widebody aircraft market. (Bloomberg)
  • Robinhood Snacks looks at Virgin Galactic (SPCE) next generation of “motherships”. “Hack to return” becomes status quo of hackers.

Moving Average Update:

  • Score jumps to 60% from 43%.  Updated 07/07/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Brief, 9:30 a.m. EDT
    • The President delivers remarks on protecting access to reproductive health care services; The Vice President and the Secretary of Health and Human Services attend, 11:30 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 12:00 p.m. EDT
    • The President departs the White House, 1:55 p.m. EDT
    • The President visits the CIA headquarters, 2:15 p.m. EDT
    • The President delivers remarks thanking the CIA’s workforce and commemorates the Agency’s achievements over the 75 years since its founding, 3:40 p.m. EDT
    • The President arrives at the White House, 4:30 p.m. EDT
    • The President departs the White House en route Rehoboth Beach, Delaware, 7:45 p.m. EDT
    • The President arrives in Rehoboth Beach, Delaware, 8:40 p.m. EDT

Economic: 

  • June Nonfarm Payrolls is due out at 8:30 a.m. EDT and is expected to fall to 250,000 from 390,000. The unemployment rate is expected to stay at 3.6%.         
  • Wholesale Trade 10:00 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT
  • Consumer Credit 3:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve New York President John Williams 11:00 a.m. EDT
  • Federal Reserve Atlanta President Rafael Bostic interviewed on CNBC at 8:45 a.m. EDT post job’s data.

M&A Activity:

  • Tenaris (TS) acquires Benteler Steel & Tube pipe manufacturing plant for $460 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
      • Previously posted and ongoing conferences:
        • None
  • Company Meetings: SAVE
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: RAPT, TSM
  • Update: GP.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • International Society on Thrombosis and Haemostasis (ISTH) Congress 2022 (07/09/22-07/13/22)
    • Tissue Engineering and Regenerative Medicine International Society (TERMIS) Conference 2022 (07/10/22-07/13/22)
      • Previously posted and ongoing conferences:
        • 16th World Immune Regulation Meeting (WIRM) 2022 (07/06/22-07/09/22)
        • FPGA Conference Europe 2022 (07/05/22-07/09/22)
        • 17th International Congress on Neuromuscular Diseases (ICNMD) (07/05/22-07/09/22)

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: