Overnight Summary: The S&P 500 closed Friday at 3863.16 (higher by 1.92%) from 3790.38 (lower by -0.30%) on Thursday. The S&P 500 ended a four day losing streak. Futures are trading higher in the premarket session. The overnight high of 3909.50 was hit at 5:00 a.m. EDT. The low was hit at 3866.75 at 8:55 a.m. EDT, a range of 41.75 points high to low which is near the range of late with 45 the average range. At 7:10 a.m. EDT the current price is 3901.75 which is 0.95% and 36.75 points.
Earnings Out After The Close:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- IPOs Priced or News: None of note
- New SPACs launched/News:
- ArcLight Clean Transition Corp. II (ACTD) receives shareholder approval for business combination with OPAL Fuels.
- ITHAX Acquisition Corp. (ITHX) Shareholders Approve Business Combination with Mondee.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- BALY: Standard RI notifies of its election to tender 360,000 common shares in modified Dutch auction.
- ESTE: Filed Form S-3ASR.. 29,837,033 Shares of Class A common stock.
- PLRX: Closing of Upsized Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares.
- STAF: Filed Form S-1.. 2,022,913 Shares of Common Stock.
- SVFD: Filed Form S-3.. $100,000,000 Common Stock, Warrants Units.
- VERX: Filed Form S-3.. 36,197,237 Shares of Class A 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): None of note.
- Mixed Shelf Offerings:
- FNKO: Filed Form S-3.. $100,000,000 Mixed Shelf.
- IEP: Filed Form S-3.. $1,200,000,000 Mixed Security Shelf.
- LTRE: Mixed Shelf Offering.
- SOFI: Filed Form S-3.. $1Billion Mixed Shelf.
- TREE: Filed Form S-3ASR.. Mixed Security Shelf.
- Convertible Offering & Notes Filed:
- RPAY: Filed Form S-3ASR.. $440,000,000 of 0.00% Convertible Senior Notes due 2026 Offered by the Selling Securityholders.
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: RYTM 103.9%, QRTEB 68.6%, AXDX 21.4%, MGNX 19.1%, SIGA 17.6%, CTMX 15.4%, SHAK 14.0%, EXTR 13.5%, RGNX 13.1%, CEIX 13.0%, NTRA 12.4%, COWN 11.8%, GRBK 11.6%, MYGN 11.0%, GTHX 10.8%, HLF 10.1%, EURN 10.1%, ICHR 9.2%, GME 9.0%.
- Trading Down: ATRA -55.4%, CDXS -47.0%, TXMD -38.0%, ENDP -34.4%, NVAX -29.1%, HSC -26.3%, AVYA -23.9%, BPT -22.3%, PACB -22.2%, VAPO -22.1%, CLVS -21.8%, EXTN -20.4%, UPLD -20.0%, TWOU -19.8%, EGHT -19.6%, RIG -19.3%.
- News Items After the Close:
- Facebook Parent Meta (META), Amazon (AMZN) Pull Back on NYC Office Expansions. (Bloomberg)
- Booz Allen Hamilton (BAH) awarded $172 million US Navy contract related to supporting the Naval Aviation Enterprise.
- BAE Systems (BAESY) awarded $1.29 billion US Army contract modification related to Radford Army Ammunition Plant.
- News Items Over the Weekend:
- Many Investors Are Fleeing the Stock Market. Some Are Doubling Down. (WSJ)
- The Week in Business: Twitter (TWTR) Hits Back. (NYT)
- As Air Travel Rebounds, Boeing (BA) Forecasts Demand for More than 41,000 New Airplanes by 2041.
- Saudi Arabia‘s Crown Prince announces the country will seek to increase its oil production capacity to 13 million barrels per day.
- Positive View: VRSK, MMC, ICE, INTU, TEAM, DUOL, JWN, BKNG, CACI, CB, PARA, HAL,BABA, BIDU, JD, TCOM, KWEB, MAT.
- Cautious View: SWKS, QCOM, INTC, NVDA.
- Mixed View: None of note.
- Exchange/Listing/Company Reorg and Personnel News:
- AAON Announces Leadership Appointment.
- Aviat Networks Urges Ceragon Networks (CRNT) Shareholders to Push for Board Change.
- Evelo Biosciences (EVLO) Announces Appointment of Marella Thorell as Chief Financial Officer.
- Kohl’s (KSS) CTO steps down, names Siobhán Mc Feeney as CTO.
- Ranko Matic joins the Locafy (LCFY) Board as Independent Director.
- Performance Shipping Inc. (PSHG) Announces Receipt of Nasdaq Notice.
- Team, Inc. (TISI) Receives Continued Listing Notice From NYSE.
- Tiziana Life Sciences (TLSA) Announces Resignation of CEO.
- Tuniu (TOUR) Has Regained Compliance with Nasdaq’s Minimum Bid Price Requirement.
- Buyback Announcements or News:
- BAC CFO: Bank Not Seeking To Pause Share Buybacks.
- ODP: Commences Modified Dutch Auction Tender Offer to Purchase up to $300 Million of its Outstanding Common Shares.
- Stellantis (STLA) agree on a share repurchase framework with Dongfeng Motor.
- Stock Splits or News:
- GME will begin trading on a split-adjusted basis on July 22.
- GOOG GOOGL trading 20/1 split price this morning.
- Dividends Announcements or News:
- Goldman Sachs (GS) approves 25% increase in quarterly dividend to $2.50 per share.
- The J.M. Smucker Co. (SJM) Announces Dividend Increase.
- Yum China (YUMC) Announces Disclosure under Hong Kong Stock Exchange Rules in Relation to a Possible Quarterly Dividend
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +37, Dow Jones +333, NASDAQ +142, and Russell 2000 +18. Europe and Asia higher. VIX Futures are at 26.46 from 27.75 Friday morning and the VIX closed at 24.23 from 26.40 yesterday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.954% from 2.93% Friday morning. Bitcoin is at $22,235 from $20,870 Friday morning and is higher by +5.67% this morning. As of 8:10 a.m. EDT.
Sector Action – 07/15/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Financial, Healthcare, Energy, Technology, Communication Services, Consumer Cyclical, Basic Materials, Real Estate, Industrials of note.
- Daily Negative Sectors: None of note.
- One Month Winners: Healthcare, Consumer Defensive, Utilities 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.
Stocks continued Thursday’s rally through Friday, but not enough to have a closing positive change for the full week. Financials were strong on the day. Updated 07/15/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Monday After the Close: IBM, ELS, MRTN of note.
- Tuesday Before the Open: JNJ, NVS, LMT, HAL, CFG, SBNY, HAS, ALLY, MAN, HTLD of note.
Earnings of Note This Morning:
- Beats: GS +1.12, SYF +0.22.
- Flat: PLD.
- Misses: BAC (0.02).
- Still to Report: SCHW.
- Positive Guidance: ASH of note.
- Negative Guidance: None of note.
Erlanger Research Advance/Decline Chart: Updated through 07/15/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: QD +61%, ITHX +25%, EYES +9%, RYTM +5%.
- Gap Down: EVLO -5%.
Insider Action: No stock sees Insider buying with dumb short selling. GOSS sees Insider buying with smart short sellers. 07/15/22 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: GS SYF COIN BAC TWTR BA SGEN SBUX GSK PARA FDP (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- Bloomberg Lead Story: Morgan Stanley and Goldman Sachs have yet to find a bottom. (Bloomberg)
- Bloomberg Most Read Story: Could be start of a Dollar “Doom Loop” like no other. (Bloomberg)
- Russia to further intensify fighting in Ukraine. (NYT)
- Covid-19 cases continue to rise in China especially in Shanghai. (Bloomberg)
- China looks to mortgage grace period. (Bloomberg)
- The Federal Reserve is unlikely to move on 100 basis point increase next week, and more likely to go 75 basis points. (WSJ)
- Treasury Secretary Janet Yellen out on multiple issues over weekend including Obamacare and healthcare measures. (Bloomberg)
- White House Covid-19 coordinator Dr. Ashish Jha urges Americans to stay up to date on vaccination with Omnicom BA.5. (ABC News)
- Summary of the U.S. and Saudi Arabia meeting. (Release from White House)
- President Biden’s approval rating hits new lows. (CNBC)
- Senator John Cornyn (R-TX) will vote for the Semiconductor Manufacturing Bill this week. (Twitter)
- Bank of America (BAC) beats on revenues but misses on earnings. (CNBC)
- Goldman Sachs (GS) earnings nearly cut in half from a year ago but bond trading revenues beat and did beat estimates. (Reuters)
- Delta (DAL) to buy 100 Boeing (BA) 737 AirMax planes. (CNBC)
- I Squared Capital may bid or partner with Fresh Del Monte (FDP). (Bloomberg)
Moving Average Update:
- Score jumps big time to 60% from 5%. Updated 07/15/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Brief, 9:30 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 3:00 p.m. EDT
- July NAHB Housing Market Index is due out at 10:00 a.m. EDT is expected to come in at 66 from 67 last month.
- Treasury International Capital 4:00 p.m. EDT
Federal Reserve / Treasury Speakers:
- Evoqua Water (AQUA) has acquired privately-held EPICOR, Inc.
- GlaxoSmithKline (GSK) completes demerger of Haleon and share consolidation of GSK.
- NESR Agrees To Acquire Stake In WDVG.
- Precision Drilling Corporation (PDS) Acquires High Arctic’s Well Servicing & Rentals Divisions.
Meeting & Conferences of Note:
- Sellside Conferences:
- Brookline Capital Markets Newport Biotech Symposium 2022
- Previously posted and ongoing conferences:
- Gordon Research Conference Mitochondria and Chloroplasts 2022 (07/17/22-07/22/22)
- Company Meetings: None of note.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: DRTS, EYPT, ICAD, SCHW
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- 3M (MMM) Open Future Technology Experience 2022.
- Industry Meetings:
- Pan Pacific Lymphoma Conference (07/18/22-07/22/22)
- Previously posted and ongoing conferences:
- 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)
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: