Overnight Summary: The S&P 500 closed Monday higher by 0.15% at 4588.96 from Friday higher by 0.99% at 4582.23. Overnight ranges saw the high hit at 4621.75 at 10:00 p.m. EDT while the low was hit at 4598.50 at 5:35 a.m. EDT. The range overnight was 23 points. The 10-day average of the overnight range is at 20.20 from 18.80 yesterday.  The average for May/June average was 19.94 from 21.63 in May. Currently, the S&P 500 is lower by -7.75 points and by -0.17% at 7:20 a.m. EDT.

Earnings Out After The Close: 

• IPOs Priced or News:
  • Cheetah Net Supply Chain Service Inc. (CTNT) Announces Pricing of $5.0 Million Initial Public Offering.
  • Hanryu Holdings, Inc. (HRYU) Announces Pricing of $8.8 Million Initial Public Offering.
• New SPACs launched/News:
  • Athena Consumer Acquisition Corp. (ACAQ) Announces  Change of Date of Special Meeting of Stockholders.
  • Electriq Power (ELIQ) completes business combination with TLG Acquisition One Corp. (TLGA), begins trading on the NYSE today.
  • Quantum FinTech Acquisition Corporation (QFTA) Announces Transfer of the Listing of its Common Stock to NYSE American Effective August 2, 2023.
  • Vision Sensing Acquisition Corp. (VSAC) Announces Intention to Extend Period to Consummate Initial Business Combination to September 3, 2023.
• Secondaries Priced: None of note.
• Notes Priced of note:
  • INVH: Announces Pricing of $450 Million of 5.450% Senior Notes due 2030 and $350 Million of 5.500% Senior Notes due 2033.
• Common Stock filings/Notes:
  • BVFL: Announces Completion of Conversion and Related Stock Offering.
  • CYBN: Announces Overnight Marketed Public Offering of Units.
  • GDEV: Filed Form F-1..12,499,993 ordinary shares.
  • MLI: Announces Special Meeting to Approve Increase in Authorized Common Stock.
  • MRT: Form F-1 Filed – 106,582,626 Ordinary Shares 7,250,000 Warrants 14,437,489 Ordinary Shares Issuable Upon Exercise of Warrants.
  • NEPT: Filed Form S-1.. Common Stock and Warrants.
  • TARS: Proposed $100.0 Million Underwritten Public Offering of Shares of its Common Stock.(GS, BAC, Guggenheim and Opp. Bookmanager)
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • BOSC: Filed Form F-3.. $10,000,000 Mixed Security.
  • ESRT: Filed Form S-3ASR.. Mixed Shelf.
  • NVNO: Filed Form S-3.. $75,000,000 Mixed Shelf.
• Debt/Credit Filing and Notes:
  • BECN: Closing of $600 Million Senior Secured Notes Offering and Completes Repurchase of Series A Preferred Stock.
  • CNP: Announces Offering of $900 Million of Convertible Senior Notes Due 2026.
  • TNET: Announces Proposed Private Offering of $500 Million of Senior Notes due 2031.
• Tender Offer:
  • TriNet Group, Inc. (TNET) Commences a Fixed Price Tender Offer to Repurchase up to 5,981,308 Shares (Representing Approximately $640 million in Value of Shares).
• 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: ANET +12%, WWD +9%, EBS +9%, AESI +6%, TREX +5%, BHE +4%, CWK +4%, of note.
  • Trading Down: ZI -17%, HLIT -14%, AAN -9%, RMBS -8%, DV -7%, MPWR -7%, CRK -6%, KFRC -6%, VTS -6%, RYI -6%, AMKR -5%, AMRC -5%, TARS -5%, SANM -4%, LEG -4% of note.
• News Items After the Close:
  • Stocks making the biggest moves after hours: YUM, WDC, ZI, SBAC, ANET, LSCC, RMBS, MPWR (CNBC)
  • The Russell 2000 (IWM) set a new 2023 closing high, up 1.1% today.
  • Yum China (YUM) stock falls as fast-food chain in China reports lower sales. (MarketWatch)
  • Rambus (RMBS) stock drops as sales, outlook fall short. (MarketWatch)
  • Monolithic’s (MPWR) stock slips as outlook overshadows earnings beat (MarketWatch)
  • Arista Networks’ (ANET) stock jumps 12% on results, revenue guidance. (MarketWatch)
  • Hologic (HOLX) stock falls nearly 4% after company’s revenue drop on lower COVID-related sales. (MarketWatch)
  • Scoop: Google (GOOGL) Assistant to get an AI makeover. (Axios)
  • Lockheed Martin (LMT) awarded $502 million U.S. Army contract modification to manufacture and deliver an Air-to-Ground Missile System.  Awarded $556 million U.S. Army contract modification for Phased Array Tracking Radar.
  • Northrop Grumman (NOC) awarded $388 million U.S. Navy contract modification.

• Exchange/Listing/Company Reorg and Personnel News:
  • BigCommerce (BIGC) has hired technology industry veteran and experienced ecommerce sales leader Steven Chung as its president.
  • Eve Holding (EVEX) names Johann Bordais as CEO.
  • Fresh Vine Wine, Inc. (VINE) Receives NYSE American Notice.
  • HUYA Inc. (HUYA) announces management changes and provides strategic updates.
  • Polished.com (POL) Announces Filing of Restated and Delayed Financial Statements and Release of Results for Q1 2023.
  • QuantumScape Corporation (QS) appoints Dr. Siva Sivaram as President of the company. (MarketWatch)
  • Runway Growth Finance (RWAY) CEO David Spreng to take temporary leave of absence to undergo treatment for a medical condition; CFO and COO Thomas Raterman appointed acting President.
  • Sangoma Technologies (SANG) names Charles Salameh as CEO effective Sept. 1, 2023.
• Buyback Announcements or News:
  • BP: Further $1.5 billion share buyback announced.
  • Crawford (CRD.A) plans to restart its share repurchase program, extending program’s termination date to Dec. 31, 2024. (see Dividend)
  • Eve Air Mobility (EVEX) Announces Johann Bordais as Chief Executive Officer.
  • Genworth Financial (GNW) Announces $350 Million Expansion of Existing Share Repurchase Program.
  • Golden Entertainment (GDEN) increases share buyback authorization to $100 million. (see Dividend)
  • Graphic Packaging (GPK) approves $500 million increase to share repurchase authorization.
  • Harmony Biosciences (HRMY) announces $125 million share repurchase program.
  • IQVIA (IQV) Board of Directors increased the share repurchase authorization by $2 billion dollars, bringing the total remaining authorization to $2,736 million.
  • ZoomInfo (ZI) announces $500 million share repurchase authorization.
• Stock Splits or News:
  • MDVL trading r/s price.
  • TAOP trading r/s price.
• Dividends Announcements or News: 
  • Atlas Energy (AESI) declares increased dividend of $0.20 per share.
  • Ault Alliance (AULT) Announces Update on Dividend of Almost Seven Million Shares of Giga-tronics Common Stock to Its Stockholders.
  • Bank of N.T. Butterfield & Son (NTB) Board again declared a quarterly dividend of $0.44 per common share.
  • BP: 10% increase in resilient dividend to 7.270 cents per ordinary share.
  • Crawford (CRD.A) Board of Directors authorized an increase in the quarterly cash dividend from $0.06 to $0.07 per share for both the Class A and Class B common stock.
  • CVR Energy (CVI) Announces a Cash Dividend of 50 cents and a Special Dividend of $1.00.
  • CVR Partners (UAN) Announces a Cash Distribution of $4.14.
  • Golden Entertainment (GDEN) announces $2.00 per share special dividend.
  • Hercules Capital (HTGC) increases quarterly cash distribution $0.01 to $0.48 per share.
  • Leggett & Platt (LEG) increases quarterly dividend $0.02 to $0.46 per share.
  • Otter Tail Corporation (OTTR) Board of Directors Declares Quarterly Dividend of $0.4375 per Share.
  • SBA Comm (SBAC) Board of Directors has declared a quarterly cash dividend of $0.85 per share of the Company’s Class A Common Stock.
  • SunCoke Energy (SXC) increases cash dividend $0.02 to $0.10 per share.
  • TFI International (TFII) approved a $0.35 quarterly dividend, an increase of 30%.
  • Welltower (WELL) Board of Directors declared a cash dividend for the quarter ended June 30, 2023 of $0.61 per share.
• Insider Sales Of Note: None of note.

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

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

• Daily Positive Sectors: Energy, Basic Materials, Consumer Cyclical, Industrials of note.
• Daily Negative Sectors: Consumer Defensive, Healthcare of note.
• One Month Winners: Communication Services, Financials, Basic Materials 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, Basic Materials of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

The S&P 500 rose on the final trading day of July and notched its fifth consecutive month of gains, its longest winning streak since 2021.  The S&P 500 finished up 3.1% for the month, while the tech-heavy Nasdaq Composite added 4%. The Dow Jones Industrial Average clinched a 3.3% monthly gain.  The month’s long rally in the stock market broadened this month, lifting everything from smaller regional banks to the biggest technology companies in the world, a sign that many traders expect continued strength in the U.S. economy.  (WSJ – edited by QPI)

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

• Gap Up: ANET +14%, WWD +14%, AESI +11%, EBS +9%, ESPR +7%, TREX +5%, SBAC +4%, LDOS +4% of note.
• Gap Down: ZI -18%, HLIT -10%, AAN -9%, RYI -8%, KFRC -8%, VTS -8%, RMBS -8%, DV -7%, CRK -7%, MPWR -7%, PGRE -6%, TARS -6%, HUN -6% of note.

Insider Action:  No stock sees Insider buying with dumb short selling.  No stock 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.

• Five Things to Know Before The Stock Market Opens This Morning (CNBC)
• Bloomberg Lead Story: Wall Street Economists are Looking at a September Rate Pause. (Bloomberg)
• Bloomberg Third Most Shared Story: Lots of US Homeowners Want to Move. They Just Have Nowhere To Go. (Bloomberg)
• Stocks pull back from July rally on weak earnings: Market Wrap. (Bloomberg)
• NPR Marketplace: While extreme heat bakes much of the country, the first new nuclear reactor to be built from scratch in decades just came online in Georgia. But the project took much longer and cost much more than planned. As the planet continues to scorch, will nuclear power catch on? Then, the perks of being a legacy student and a boom in spam texts. (Podcast)
• Uber (UBER) swings to its first GAAP profit. (Bloomberg)
• Pfizer (PFE) beats on earnings but Covid revenues fades. (CNBC)
• Merck (MRK) beats on estimates but loses money on Prometheus deal. (CNBC)
• Caterpillar (CAT) beats big on earnings and revenues but stock fails to move higher in pre-market. (MarketWatch)
• BBC Global News: Proescution starts of Kenyan cult that killed 400. (Podcast) 
• NY Times Daily: How the NRA became a lobbying juggernaut. (Podcast)

Moving Average Update:

• Day 2 at 100%.

Geopolitical: 

M&A Activity:

• Charge Enterprises (CRGE) Announces Acquisition of Greenspeed Energy Solutions, a Leader in Providing EV Infrastructure Solutions.
• DoubleVerify (DV) acquires Scibids Technology SAS in a cash and stock transaction valued at $125 million.
• Dril-Quip (DRQ) acquires Great North Wellhead for $80 million in cash.
• DT to Acquire Rookout.
• Lindsay Corp (LNN) acquires FieldWise.
• Monster Beverage (MNST) Completes Acquisition of Bang Energy.
• Revolution Medicines (RVMD) to acquire EQRX in all-stock deal.

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 is 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: