Overnight Summary: The S&P 500 closed Monday at 3830.85 (lower by -0.84%) from 3863.16 (higher by 1.92%) on Friday. Futures are trading higher in the premarket session. The overnight high of 3871.50 was hit at 6:40 a.m. EDT. The low was hit at 3832 at 4:05 a.m. EDT, a range of 39 points high to low which is near the range of late with 45 the average range. At 7:05 a.m. EDT the current price is 3865.50 which is 0.83% and 31.75 points.
Earnings Out After The Close:
- Beats: MRTN +0.07, IBM +0.02.
- Flat: None of note.
- Misses: ELS (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- MOND is new ticker name for ITHX spac.
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- GROV: Filed Form S-1.. 101,635,900 Shares of Class A Common Stock.
- HITI: C$10 Million Bought Deal public offering.
- SMMT: Commencement of $100 Million Rights Offering.
- VS: Closing of $2.16 Million Public Offering.
- 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: None of note.
- Convertible Offering & Notes Filed:
- DAL: Commences Cash Tender Offer for Up To $1.5 Billion Aggregate Purchase Price of Certain of its Outstanding Notes.
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: AXGN +5%.
- Trading Down: IBM -4%.
- News Since The Close:
- AMZN “officials from Labor Department’s Occupational Safety and Health Administration entered Amazon warehouses outside NYC, Chicago and Orlando to conduct workplace safety inspections on possible workplace hazards.” (Bloomberg)
- Elon Musk reportedly plans to countersue Twitter (TWTR) to get out of deal. (MarketWatch)
- Twitter (TWTR) fires back at Elon Musk’s attempt to delay trial. (CNBC)
- IBM beats on earnings, but the stock is not being rewarded. (MarketWatch)
- Boeing (BA), 777 Partners Announce New Order and Commitment for Up to 66 737 MAX Jets.
- US Average Retail Gasoline Price Falls Below $4.50 A Gallon For The First Time Since May 16.
- Lockheed Martin (LMT) awarded a $225 million US Navy contract modification related to 15 F-35A aircraft and nine Lot 16 F-35 aircraft for the Netherlands.
- Exchange/Listing/Company Reorg and Personnel News:
- Sunstone Hotel Investors (SHO) will replace Vonage Holdings (VG) in the S&P SmallCap 600.
- China Liberal Education Holdings (CLEU) Limited Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- Codexis (CDXS) CEO John Nicols to retire, names Dr. Stephen Dilly as next CEO.
- Kirkland’s Home (KIRK) Announces CFO Transition Plan. (MarketWatch)
- Form 8K.. July 14, 2022, LMP Automotive Holdings, Inc. (LMPX) terminated the employment of Robert Bellaflores, its Chief Financial Officer.
- Invitae (NVTA) names current COO Kenneth D. Knight as CEO.
- Universe Pharmaceuticals INC (UPC) Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- Delisting of Securities on The Nasdaq Stock Market:
- Alberton Acquisition Corporation;
- Zosano Pharma Corporation;
- Electric Last Mile Solutions, Inc.;
- 4D pharma plc;
- Enjoy Technology, Inc.
- Onion Global (OG) Announces Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price.
- Buyback Announcements or News:
- M&T Bank Corporation (MTB) Announces Common Stock Repurchase Program.
- Stock Splits or News:
- Dividends Announcements or News:
- BitNile Holdings (NILE) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
- Citizens (CFG) announced that its board of directors declared a + $0.03 increase in the quarterly common stock dividend to $0.42 per share, an 8% increase.
- M&T Bank Corporation (MTB) Announces Series H Preferred Stock Quarterly Dividend.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +31, Dow Jones +198, NASDAQ +110, and Russell 2000 +15. Europe higher ex France and Asia higher ex Hing Kong. VIX Futures are at 26.80 from 26.46 yesterday morning and the VIX closed at 25.30 from 24.23 yesterday. Gold higher with Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower and Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.984% from 2.954% Monday morning. Bitcoin is at $22,019 from $22,235 yesterday morning and is higher by +1.99% this morning. As of 8:07 a.m. EDT.
Sector Action – 07/18/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Energy, Basic Materials, Consumer Cyclical of note.
- Daily Negative Sectors: Healthcare, Utilities, Technology, Consumer Defensive, Industrial 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.
A rotten AAPL killed an early positive tone of the markets. Cost cutting measures by the large tech company had all indexes in the red by the closing bell. USO and UNG were both up +4%. Updated 07/18/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Tuesday After the Close: NFLX, IBKR, JBHT, OMC, PNFP, HWC, UCBI, CALM, FULT, HOPE, NBHC of note.
- Wednesday Before the Open: ABT, ASML, ELV, BIIB, BKR, MTB, NDAQ, NTRS, FHN, MKTX, CMA, LAD, BMI, HCSG of note.
Earnings of Note This Morning:
- Beats: SI +0.28, HAS +0.21, SBNY +0.20, CFG +0.12, NVS +0.07, TFC +0.05, HAL +0.04, JNJ +0.04.
- Flat: None of note.
- Misses: ALLY (0.11), LMT (0.07), MAN (0.03).
- Still to Report: None of note.
- Positive Guidance: AXGN, FWRD of note.
- Negative Guidance: LMT of note.
Erlanger Research Advance/Decline Chart: Updated through 07/18/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: SI +10%, SHO +7%, MARA +5%, EE +4%.
- Gap Down: NVTA -8%, RARE -6%, IBM -5%.
Silvergate (SI) popping with earnings. Solid short base has accumulated in the same similar to fall of 2021 when it caused a short term pop before the shorts covered.
Insider Action: MEDP, RMAX sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 07/18/22 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: IBM, NCR, CNK, HAL, JNJ, HAS, BA, TFC, RUN, NOVA (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- 5 things to know before the stock market opens Tuesday. (CNBC)
- Bloomberg Lead Story: Bank of America Survey shows full capitulation amid pessimism. (Bloomberg)
- Bloomberg Most Read Story: Apple (AAPL) to slow hiring and spending for some teams in 2023. (Bloomberg)
- Ukraine warns of large drops in the wheat harvest. (FT)
- European Central Bank (ECB) considering a 50 basis point increase at this week’s meeting on Thursday. (Bloomberg)
- China warns of “forceful measures” if House Speaker Pelosi visits Taiwan. (Reuters)
- Starbucks (SBUX) due to close more stores due to “crime and drug use by customers in bathrooms”. (Bloomberg)
- Jefferies (JEF) to spin off last two Leucadia assets by end of this year. (WSJ)
- Robinhood Snacks looks at Snap (SNAP) launch of desktop version which may compete with Zoom. McDonald’s (MCD) 87% of franchise owners do not like CEO Chris Kempczinski.
Moving Average Update:
- Score retreats to 45% from 60%. Updated 07/18/22 close.
- President’s Public Schedule:
- The President and The Vice President receive the President’s Daily Brief, 10:00 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 3:00 p.m. EDT
- June Housing Starts are due out at 8:30 a.m. EDT and expected to come in at 1,598,000 from last month at 1,549,000.
- Redbook Sales 8:55 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
- Fed Speakers are on a Blackout Period into the FOMC Meeting. Blackout Period from July 16-July 28.
- Chase Corporation (CCF) Acquires NuCera Solutions.
- EU Commission alleges Illumina (ILMN) and GRAIL breached EU merger rules by early implementation of their acquisition.
- NCR Corp (NCR) in discussions to private equity firm Veritas Capital to be acquired. (WSJ)
Meeting & Conferences of Note:
- Sellside Conferences:
- None of note.
- Previously posted and ongoing conferences:
- Gordon Research Conference Mitochondria and Chloroplasts 2022 (07/17/22-07/22/22)
- Company Meetings: STZ.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: VRRM
- Update: None of note.
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- The Cross-Industry Conference for CX Innovators 2022 (07/19/22-07/20/22)
- SPIE Astronomical Telescopes + Instrumentation 2022 (07/19/22-07/21/22)
- Next Generation Lipid-Based Nanoparticles Delivery Summit 2022 (07/19/22-07/21/22)
- 17th Annual Fierce Pharma PR & Communications Summit 2022 (07/19/22-07/20/22)
- Previously posted and ongoing conferences:
- Pan Pacific Lymphoma Conference (07/18/22-07/22/22)
- 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: