Overnight Summary: The S&P 500 closed Monday at 4409.53 higher by 0.24% from Friday at 4398.98 lower by -0.28%. Overnight ranges saw the high hit at 4455.25 at 2:30 a.m. EDT while the low was hit at 4439 at 4:55 a.m. EDT. The range overnight was 16 points. The 10-day average of the overnight range is at 18 from 19.10 yesterday. The average for May/June average was 19.94 from 21.63 in May. Currently, the S&P 500 is higher by +6.25 points and is higher by 0.14% at 7:20 a.m. EDT.
Earnings Out After The Close:
- Beats: WDFC +0.16, PSMT +0.09 of note
- Flat: None of note.
- Misses: None of note.
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500. It looks for volume outliers relative to the Open interest in Calls or puts. Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.
- IPOs Priced or News:
- HDFC Bank (HDB) proposes to participate in an Initial Public Offering of National Securities Depository Limited (“NSDL”), by way of an offer for sale of up to 2% equity stake held by the Bank in NSDL.
- New SPACs launched/News:
- Galata Acquisition Corp (GLTA) and Marti complete business combination.
- Learn CW Investment Corporation (LCW) Announces Intention to Extend Period to Consummate Initial Business Combination.
- Secondaries Priced:
- IOVA: Prices offering of 20.0 million shares of common stock at $7.50 per share.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- IOVA: Announces Proposed Public Offering of Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- IE: Filed Form S-3ASR – Mixed Shelf.
- KBH: Form S-3ASR Filed — Mixed Shelf.
- Debt/Credit Filing and Notes:
- BHLB: Announces Allocation of Inaugural $100 Million Sustainability Bond.
- Tender Offer:
- SSYS: Stratasys confirms that Nano Dimension (NNDM) increases offer price of its unsolicited partial tender offer to acquire Stratasys ordinary shares not already owned by Nano to $24.00 from $20.05 per share in cash.
- 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 and Over the Holiday:
- After Hours:
- Trading Up: ETWO +7%, WDFC +4% of note.
- Trading Down: VRDN -18%, IOVA -9%, ADT -4%, PSMT -4% of note.
- News Items After the Close:
- WD-40 (WDFC) stock rallies as results top Street view. (MarketWatch)
- PriceSmart (PSMT) stock falls more than 6% after fiscal Q3 earnings. (MarketWatch)
- China To Lay Down AI Rules With Emphasis On Content Control. (FT)
- Viridian (VRDN) stock falls more than 15% after drug study update. (MarketWatch)
- Payoneer (PAYO) to reduce its workforce by approximately 9%. (MarketWatch)
- Evernote fires nearly every US employee as it shifts operations to Europe. (Appleinsider)
- Exchange/Listing/Company Reorg and Personnel News:
- Arbutus Biopharma (ABUS) promotes Karen Sims, MD, PhD, to CMO; succeeds Dr. Elizabeth Howard who will continue in an advisory role.
- AMD Names Phil Guido as Chief Commercial Officer.
- American Express (AXP) Global Business Travel to Simplify Structure American Express Global Eliminating Umbrella Partnership-C American Express Global Says All Holders Now Hold Class a Stock.
- Assured Guaranty (AGO) and David A. Buzen, the Company’s Chief Investment Officer, mutually and amicably agreed on July 6, 2023, that Mr. Buzen will separate from the Company.
- Digital World (DWAC) Appoints Eric Swider as Permanent CEO. (Release)
- FEMSA (FMX) CEO Daniel Rodríguez Cofré will step down from his role due to medical reasons.
- GlobalFoundries (GFS) Announces CFO Update.
- Ichor (ICHR) Announces Greg Swyt to Succeed Retiring CFO Larry Sparks.
- InterCure Ltd. (INCR) Announces Proposed Voluntary Delisting from the Toronto Stock Exchange and shall continue to be listed on the NASDAQ and TASE.
- Plug Power (PLUG) Announces Changes to Board of Directors. Two prominent leaders in technology transformation, strategy, and innovation join the Board of Directors to propel the company to the next phase of its growth as a vertically integrated green hydrogen company.
- UBER CFO Nelson Chai to Step Down in Most Senior Executive Exit Since IPO. (MarketWatch)
- Verastem (VSTM) promotes Dan Paterson to President and CEO.
- Walker & Dunlop (WD) President and Board member, Howard Smith, announces retirement.
- Buyback Announcements or News:
- PriceSmart (PSMT) $75 million stock buyback program.
- U.S. Global Investors (GROW) Increased Share Repurchases in June 2023, Continues Dividends.
- WD-40 (WDFC) approves new 50 million share buyback plan.
- Stock Splits or News:
- Astra Space (ASTR) 1-15 Reverse Stock Split (MarketWatch)
- Dividends Announcements or News:
- Ault Alliance (AULT) Is Exploring Initiative to Distribute Special Dividend Payable in Bitcoin.
- Metalla (MTA) Sells Cortez Mineral Claims To Nevada Gold Mines For $5 Million And Declares A Special Dividend.
- U.S. Global Investors (GROW) – See Buyback
- Insider Sales Of Note:
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +8, Dow Jones +44, NASDAQ +43, and Russell 2000 +5. (as of 7:57 a.m. EDT). Asia is higher while Europe higher ex the FTSE this morning. VIX Futures are at 15.45 from 15.81 yesterday. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher as well. US 10-year Treasury sees yields at 3.97% from 4.056% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $30,438 from $31,190 yesterday, lower by -0.78%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Industrials, Healthcare, Energy, Real Estate of note.
- Daily Negative Sectors: Communication Services of note.
- One Month Winners: Consumer Cyclical, Industrials, Technology of note.
- Three Month Winners: Technology, Consumer Cyclical, Communication Services of note.
- Six Month Winners: Technology, Communication Services, Consumer Cyclical of note.
- Twelve Month Winners: Technology, Industrials, Energy of note.
- Year to Date Winners: Technology, Communication Services, Consumer Cyclical of note.
A potentially busy week for markets got off to a quiet start Monday, with stock indexes edging higher despite an off-day for shares of big technology companies. Bouncing back from declines last week, the Dow Jones Industrial Average gained 0.6%, or about 210 points. The S&P 500 and Nasdaq Composite both ticked up 0.2%. A major engine of this year’s stock rally, shares of Microsoft, Apple and Alphabet all lost at least -1.1% Monday, with Alphabet leading the way with a -2.5% decline. Meanwhile, Financials, Energy and Industrials were among the better-performing sectors. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Tuesday After the Close: None of note.
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: of note.
- Flat: None of note.
- Misses: None of note.
- Still to Report: None of note.
- Positive Guidance: AIRS, RMTI of note.
- Negative Guidance: FMC of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: ETWO +9%, FDMT +6% of note.
- Gap Down: VRDN -12%, IOVA -11%, PSMT -4% of note.
Insider Action: No stock sees Insider buying with dumb short selling. ASAN 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.
- Stocks making the biggest premarket moves: JBLUE, ZG, JPM, AMZN, MMM, WDFC, USB, ZION, IOVA (CNBC)
- Five Things to Know Before The Stock Market Opens This Morning (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: G-7 Nations to Give Individual Security Pledges to Ukraine. (Bloomberg)
- Bloomberg Second Most Shared Story: Big Banks Face Higher Capital Requirements From US Regulators. (Bloomberg)
- Rates Warnings Temper Stocks, China Stimulus Boost: Market Wrap. (Bloomberg)
- Chinese Real Estate Stocks rise as Beijing extends property support measures. (CNBC)
- Choice Hotels (CHH) confirms full-year outlook. (MarketWatch)
- PVH to cut workforce by 10%. (MarketWatch)
- Microsoft (MSFT) to eliminate more jobs than the 10,000 they eliminated in January. (CNBC)
Moving Average Update:
- Score increases to 74% from 65%.
- President’s Public Schedule:
- The President participates in an official arrival ceremony with President Gitanas Nausėda of Lithuania, 3:15 a.m. EDT
- The President participates in an official photo and guest book signing with President Gitanas Nausėda of Lithuania, 3:30 a.m. EDT
- The President participates in a bilateral meeting with President Gitanas Nausėda of Lithuania, 3:45 a.m. EDT
- The President participates in an official greeting with NATO Secretary General Jens Stoltenberg and President Gitanas Nausėda of Lithuania and a family photo with Allied Heads of State and Government, 6:50 a.m. EDT
- The President attends the Meeting of the North Atlantic Council at the level of Heads of State and Government, with Sweden, 7:00 a.m. EDT
- The President participates in a bilateral meeting with President Recep Tayyip Erdoğan of Turkiye, 11:00 a.m. EDT (Release)
- June NFIB Small Business Optimism is due out at 6:00 a.m. EDT and last month came in at 89.40.
- US NFIB Small Business Optimism Jun: 91.0 (est 89.9; prev 89.4)
- Redbook Sales 8:55 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve New York President John Williams 11:00 a.m. EDT
- nVent Electric (NVT) acquired TEXA Industries.
Meeting & Conferences of Note:
- Sellside Conferences:
- Capital Link Decarbonization in Shipping Forum
- CJS New Ideas Summer Investor Conference
- JMP Technology Forum
- Mizuho Therapeutics Expert Seminar
- SVB Therapeutics Forum (07/11/23-07/12/23)
- TD Cowen Calgary Energy Conference (07/11/23-07/12/23)
- Truist Summit-Energy Meeting Circuit
- Previously posted and ongoing conferences: None of note.
- Top Shareholder Meetings: FACT
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: BTTX, CMPS, DARE, NETC, RGNX, RWLK
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
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: