CAPIS Morning Note – 07/15/22: Stocks Set To Rebound At The Open After 4 Days of Selling

Overnight Summary: The S&P 500 closed Thursday at 3790.38 (lower by -0.30%) from 3801.78(-0.45%) on Wednesday. The S&P 500 is now on a four day losing streak.  Futures are trading higher in the premarket session. The overnight high of 3811 was hit at 8:05 p.m. EDT. The low was hit at 3780 at 3:10 a.m….

Overnight Summary: The S&P 500 closed Thursday at 3790.38 (lower by -0.30%) from 3801.78(-0.45%) on Wednesday. The S&P 500 is now on a four day losing streak.  Futures are trading higher in the premarket session. The overnight high of 3811 was hit at 8:05 p.m. EDT. The low was hit at 3780 at 3:10 a.m. EDT, a range of 31 points high to low which is above the range of late with 45 the average range. At 7:25 a.m. EDT the current price is 3807 which is 0.36% and 13.75 points.

Earnings Out After The Close:

  • Beats: AOUT +0.04.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
    • Chinese fast-fashion company Shein seeks U.S. IPO as soon as 2024, report says. (CNBC)
  • New SPACs launched/News:
    • L&F Acquisition Corp. (LNFA) and ZeroFox, Inc. Announce Effectiveness of Registration Statement and August 2, 2022 Extraordinary General Meeting to Approve Business Combination.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ALVO: Files for 10,916,647 share common stock offering related to warrants; files for 219,616,200 share common stock offering by selling shareholders.
    • RMTI: Filed Form S-3.. 1,404,956 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • HSTO: Closing of $5 Million Private Placement Priced At-the-Market Under Nasdaq Rules.
  • Mixed Shelf Offerings:
    • CPOP: Filed Form F-3.. $200,000,000 Mixed Shelf.
  • Convertible Offering & Notes Filed:
    • CPLP: Offering of Senior Unsecured Bonds on the Athens Exchange.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

  • After Hours: 
    • Trading Up: PINS +14%, ZY +7%.
    • Trading Down: CDXS -21%, TXG -13%, AUPH -4%.
  • News Since The Close:
    • NFT marketplace OpenSea to slash 20% of jobs amid ‘crypto winter’. (Reuters)
    • Elliott Capital Sets Sights on Pinterest (PINS) (WSJ)
    • AMC may have been a meme-stock darling, but weakness in some key areas has the company on shaky ground (MarketWatch)
    • Chinese Exports of Dual-Use Goods to Russia Have Increased Since Ukraine Invasion, Chinese Customs Data Show *DJ Chinese Shipments of Microchips to Russia More Than Doubled Year-Over-Year in First Five Months of 2022.
    • China’s Economy Expands At Slowest Pace Since Wuhan Outbreak. (Bloomberg)
    • L.A. County, CA to reimpose indoor mask mandate in two weeks.
    • AmerisourceBergen (ABC) awarded a $6.065 billion firm-fixed-price requirements contract by the Defense Logistics Agency to support the Defense Health Agency’s TRICARE Pharmacy Program.
    • General Dynamics (GD) awarded $273 million US Navy contract.
    • General Dynamics (GD) awarded $908 million US Air Force contract.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Agrify (AGFY) Strengthens Board of Directors and Executive Leadership Team to Further Advance Long-Term Growth.
    • APA Corp. (APA) elects H. Lamar McKay as the next Chairman of the Board.
    • Aurinia Pharma (AUPH) names new exec in R&D and new CCO.
    • Coupang (CPNG) Chief Technology Officer Thuan Pham notified the Company of his intention to retire from the Company.
    • Ellie Mertz Joins DoorDash (DASH) Board of Directors.
    • Red Robin Gourmet (RRGB) names G.J. Hart as its next CEO replacing current CEO that is retiring.
    • UTStarcom (UTSI) Regains NASDAQ Listing Compliance.
  • Buyback Announcements or News: None of note.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: 
    • BNY Mellon (BK) declared increased quarterly common stock dividend $0.03 of $0.37 per share.
    • Methanex (MEOH) increases its quarterly dividend to $0.175 per share, a 20% increase.
    • Ryder (R) System increases its quarterly dividend to $0.62 per share, a 7% increase.
    • Ramaco Resources, Inc. (METC) Announces $5.0 Million Third-Quarter Dividend.

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

S&P 500 +12, Dow Jones +150, NASDAQ +26, and Russell 2000 +4. Europe higher and Asia lower ex Japan.  VIX Futures are at 27.75 from 28.61 yesterday morning and the VIX closed at 26.40 from 26.82   yesterday. Gold lower, Silver higher and Copper lower. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.93% from 2.958% yesterday morning. Bitcoin is at $20,870 from $19,691 yesterday morning and is higher by 0.96% this morning. As of 8:03 a.m. EDT.

Sector Action – 07/14/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):   

  • Daily Positive Sectors: Technology of note.
  • Daily Negative Sectors: Basic Materials, Energy, Financial, Real Estate, Communication Services 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.

Weak earnings from JPM and MS started the markets off on a bad not and it continued.  Technology turned tail and brought the markets higher by the end of the day, actually closing in the green!  Go Tech!  Updated 07/14/22 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: BAC, SCHW, GS, PLD, SYF, DIDI of note.

Earnings of Note This Morning:

  • Beats: UNH +0.37, PNC +0.31.
  • Flat: None of note.
  • Misses: BLK (0.66), BK (0.08), USB (0.08), WFC (0.07).
  • Still to Report: C, PGR, STT.

Guidance:

  • Positive Guidance: CTAS,  of note.
  • Negative Guidance: CDXS, TXG, BTU of note.

Erlanger Research Advance/Decline Chart: Updated through 07/14/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: PINS +15%, EVTL +9%.
  • Gap Down: CDXS -24%, TXG -18%.

Insider Action: No stock sees Insider buying with dumb short selling.  TCDA sees Insider buying with smart short sellers. 07/14/22 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: WFC UNH PINS BLK (CNBC)
  • 5 things to know before the stock market opens Friday (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Biden to leave Middle East with no oil deal. (Bloomberg)
  • Bloomberg Most Read Story: America could be talking itself into a recession. (Bloomberg)
  • Market awaits more bank earnings today. (CNBC)
  • Senate to advance chip legislation to battle China early next week. (Politico)
  • West Virginia Senator Manchin (D-WV) will not support higher taxes nor climate related spending. (Bloomberg)
  • Amazon (AMZN) to reduce its private label product mix. (WSJ)
  • Amazon (AMZN) to add 4,000 jobs in the U.K. (CNBC)
  • Nissan (NSANY) to phase out EV car Leaf. (Automotive News)
  • Tesla (TSLA) looking for dismissal of lawsuit over mass layoff. (Reuters)
  • Robinhood Snacks looks at Amazon (AMZN) and its Prime Day which was the best on record. Euro was worth less than one U.S. Dollar yesterday.

Moving Average Update:

  • Score drops to 5% from 8%.  Updated 07/14/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President delivered remarks regarding the East Jerusalem Hospital Network, 3:30 a.m. EDT
    • The President arrived at the West Bank and participates in an arrival ceremony, 4:30 a.m. EDT
    • The President met with President Mahmoud Abbas of the Palestinian Authority, 4:45 a.m. EDT
    • The President and President Mahmoud Abbas delivered joint statements, 5:50 a.m. EDT
    • The President arrived at the Church of the Nativity, 6:20 a.m. EDT
    • The President visited the Church of the Nativity, 6:30 a.m. EDT
    • The President departs Tel Aviv, Israel en route Jeddah, Saudi Arabia, 8:25 a.m. EDT
    • The President arrives in Jeddah, Saudi Arabia, 10:30 a.m. EDT
    • The President participates in a bilateral meeting with King Salman bin Abdulaziz al Saud, 11:15 a.m. EDT
    • The President and his team participate in a working session with Crown Prince Mohammed bin Salman and Saudi Ministers, 11:45 a.m. EDT

Economic: 

  • July Empire State Manufacturing isdue out at 8:30 a.m. EDT and is expected to fall to -0.9% from -1.2% which is an improvement but still in the red.
  • June Retail Sales are due out at 8:30 a.m. EDT and are expected to rise to 0.8% from -0.3%.   
  • Import and Export Prices 8:30 a.m. EDT
  • Industrial Production 9:15 a.m. EDT
  • July University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and expected to fall to 49.4 from 50.     
  • Business Inventories 10:00 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Research Atlanta President Raphael Bostic 8:45 a.m. EDT

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Gordon Research Conference Mitochondria and Chloroplasts 2022 (07/17/22-07/22/22)
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: HR.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: MDT
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • International Conference on Display Technology (ICDT) 2022 (07/16/22-07/19/22)
    • International Congress of Mucosal Immunology (ICMI) 2022 (07/16/22-07/20/22)
    • American Society of Virology (ASV) 2022 (07/16/22-07/20/22)
      • Previously posted and ongoing conferences:
        • American Society of Retina Specialists (ASRS) 40th Annual Meeting 2022 (07/13/22-07/16/22)
        • Acute Respiratory Distress Syndrome (ARDS) Drug Development Summit 2022 (07/13/22-07/15/22)
        • Controlled Release Society (CRS) 2022 Annual Meeting & Expo (07/11/22-07/15/22)

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: