Please Note: There will be no Morning Note Friday 08/05/22 due to travel.
Overnight Summary: The S&P 500 closed Wednesday at 4155.17 (higher by 1.56%) from 4091.19 (lower by -0.67%) on Tuesday. The overnight high of 4170.75 was hit at 6:45 a.m. EDT. The low was hit at 4148 at 8:05 p.m. EDT, a range of 22 points high to low which is below the range of late with 45 the average range. At 6:45 a.m. EDT the current price is 4170.75 which is 0.35% and 14.50 points.
Breaking News: The Bank of England (BOE) raises interest rates by 50 basis points.
Earnings Out After The Close:
- Beats: PDCE +2.21, BKNG +1.41, YELL +0.70, CIVI +0.65, AFG +0.64, MED +0.64, HCC +0.63, MELI +0.58, MET +0.55, MCK +0.53, KLIC +0.50, FICO +0.49, WTS +0.48, HUBG +0.47, ETD +0.45, ALL +0.39, ACA +0.37, AEIS +0.33, NFE +0.32, MRTX +0.32, MTG +0.31, QNST +0.31, ECPG +0.29, ACLS +0.28, FLT +0.28, TTMI +0.21, LPI +0.21, ALB +0.20, RGLD +0.17, UIS +0.16, RCII +0.16, ANSS +0.16, ELF +0.15, ET +0.15, NTR +0.15, SLF +0.14, CW +0.14, PK +0.14, QRVO +0.13, BKH +0.12, LSI +0.12, UPLD +0.11, CDAY +0.11, JAZZ +0.11, SITM +0.10, WU +0.10, PAA +0.10, EBAY +0.10, BHE +0.09, HST +0.09, NVRO +0.08, CPA +0.08, GDDY +0.07, MMS +0.07, BNFT +0.07, DRH +0.07, SUM +0.07, ATO +0.06, NOG +0.06, ADPT +0.06, UDMY +0.06, AVDX +0.06, ADTN +0.06, SFM +0.06, PLMR +0.06, HI +0.05, EQH +0.05, FARO +0.05, BMRN +0.05, CCRN +0.05, FSR +0.04, MRO +0.04, NARI +0.04, AMPL +0.04, WSC +0.04, STOR +0.04, APA +0.03, AMK +0.03, TTEK +0.03, BAND +0.03, CFLT +0.03, SKLZ +0.03, RPD +0.03, TWO +0.03, FATE +0.02, OUT +0.02, IR +0.02, SM +0.02, LNC +0.02, SJI +0.02, QTWO +0.02, ORA +0.02, FTNT +0.02, ONL +0.02, NVST +0.02, VMEO +0.01, RUN +0.01, TWNK +0.01, RPT +0.01, FROG +0.01.
- Flat: PACB +0.00, RYN +0.00, WTRG +0.00, BRKR +0.00, NSA +0.00, CLX +0.00, DOX +0.00, ICFI +0.00.
- Misses: SGFY (2.24), CRC (0.76), ZETA (0.66), CPE (0.53), KW (0.46), GKOS (0.39), ALGT (0.38), LHCG (0.37), RGR (0.33), MGM (0.30), TNDM (0.26), CODI (0.21), ROG (0.21), WERN (0.16), RGNX (0.14), ALKT (0.14), LUMN (0.11), TRUP (0.11), ATUS (0.10), XNCR (0.10), NUVA (0.09), RVLV (0.09), ONEM (0.07), CORT (0.07), SRI (0.07), DXC (0.07), SIGI (0.06), FSLY (0.06), UGI (0.06), CDE (0.04), WES (0.03), DV (0.03), TPIC (0.03), LCID (0.02), O (0.02), IAG (0.02), BTG (0.02), PCOR (0.02), CHNG (0.01), VVV (0.01), SRC (0.01), IIPR (0.01), PAY (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Colonnade Acquisition Corp. II (CLAA): B2B platform Plastiq and Colonnade announce SPAC merger agreement.
- Globalink Investment Inc. (GLLI) and Tomorrow Crypto Group announce SPAC merger agreement.
- Mobiv Acquisition CorpMOBV: Pricing of $87 Million Initial Public Offering.. 8.7Million Units @$10.
- ZeroFox (ZFOX) Begins Trading on Nasdaq Under Symbol “ZFOX” after SPAC merger with L&F Acquisition Corp. (LNFA).
- Secondaries Priced:
- NTST: Pricing of Upsized Forward Common Stock Offering 9Million @$20.20 .. WFC, BAC and Jefferies bookmanager.
- Notes Priced of note:
- INFN: Prices $325 million convertible senior notes offering and repurchase of approximately $300 million aggregate principal amount of convertible senior notes due 2024.
- Common Stock filings/Notes:
- EVH: Filed Form S-3ASR.. CLASS A Common Stock.
- PSTX: Proposed Public Offering of Common Stock.. Piper and Blair bookmanagers.
- TBLT: Filed Form S-1.. 12,240,000 Shares of Common Stock.
- TMDX: Proposed Public Offering of Common Stock.. $100Million .. JPM, MS and Cowen bookmanagers.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- ECVT: Secondary Offering of 12,000,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock.. GS, DB and CS Bookmanagers.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- APPH: Filed Form S-3.. $300Million Mixed Security Shelf.
- BXRX: Filed Form S-1.. $10,000,000 Mixed Security Shelf.
- Debt Filing: None of note.
- 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:
- After Hours:
- Trading Up: YELL +40%, GBT +30%, HHC +14%, RELY +13%, MELI +12%, ADPT +11%, ATUS +10%, SFM +8%, CFLT +8%, PCOR +7%, HCC +7%, RUN +6%, TTMI +5%, WSC +5%, AVDX +5%, ALB +4%, ICFI +4%, RCII +4%, ZETA +4%, ELF +4%, CIVI +4%, DV +4%.
- Trading Down: TRUP -18%, PSTX -16%, RVLV -15%, PAY -15%, SKLZ -13%, ECVT -13%, LCID -12%, MED -11%, CCRN -10%, TNDM -10%, FTNT -9%, SITM -9%, APPH -8%CPE -8%, DXC -7%, NARI -7%, XNCR -7%, CLX -6%, FSLY -6%, PACB -6%, TMDX -6%, LUMN -5%, KLIC -5%, RGR -5%, SGFY -5%, ALGT -5%, NVRO -5%, QNST -5%, TPIC -5%, IAG -4%, ALSN -4%, QTWO -4%, EVH -4%.
- News Since The Close:
- Stocks making the biggest moves after hours: LCID, QRVO, EBAY, MGM, CLX, BKNG (CNBC)
- Lucid (LCID) stock plunges after electric-vehicle maker cuts production guidance for the year. (MarketWatch)
- Qorvo (QRVO) stock rallies on earnings beat. (MarketWatch)
- NASDAQ 100 closes at highest level since May 4th on tech rally, S&P 500 +1.53 NASDAQ +2.59%
- Tyson Foods (TSN) ignoring subpoena for meat price gouging probe, NY attorney general says. (Reuters)
- Walmart (WMT) Cuts About 200 Corporate Jobs in Streamlining Effort. (WSJ)
- Ukraine’s President Zelensky is Seeking Direct Talks with China’s President Xi in Order to Assist in Ending Russia’s Invasion of Ukraine. (SCMP)
- U.S. Senate Ratifies Adding Finland and Sweden to NATO. (WSJ)
- Democrats at Odds Over EV Tax Credit in Manchin-Schumer Bill. (Bloomberg)
- AAR Mobility Systems (AIR) awarded $173.5 million firm-fixed-price contract from U.S. Air Force to produce Next Generation All Aluminum Cargo Pallets.
- Exchange/Listing/Company Reorg and Personnel News:
- GAMCO Investors (GBL) appoints Doug Jamieson as CEO.
- Equinox Gold (EQX) CEO leave company; names Greg Smith to succeed as CEO.
- Fastly (FSLY) appoints Todd Nightingale as CEO.
- Lucid (LCID) appoints Steven David as SVP of operations.
- Inari Medical (NARI) Announces Leadership Succession Plan.
- Oxford Industries (OXM) Announces New Independent Director.
- Torrid (CURV) appoints Tim Martin as COO and CFO.
- Werner Enterprises (WERN) announces CFO Retirement and Succession Plan.
- Buyback Announcements or News:
- Advanced Energy (AEIS) increases share repurchase authorization to $200 million.
- Computer Programs (CPSI) announces that its Board of Directors extended the expiration date of its existing $30 million stock repurchase program to September 4, 2024.
- 8×8 (EGHT) announced a $60 million share repurchase reduces shares issued and outstanding by estimated 10.7 million shares.
- SEAS: Announces New Share Repurchase Program.
- Willscot Mobile Mini (WSC)Board also replenished share repurchase authorization to $1.0 billion as of July 21, 2022
- Zeta Global (ZETA) Board authorized a stock repurchase program for up to $50 million of Zeta’s Class A common stock.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Enviva (EVA) raised its quarterly dividend 11% to $0.905 per share.
- Encore Wire (WIRE) Announces Cash Dividend.
- Newtek Business Services Corp. (NEWT) Forecasts Paying a Second Half of 2022 Dividend in a Range of $1.00 to $1.50 per Share.
- Sturm, Ruger & Company, Inc. (RGR) Declares Quarterly Dividend of 47¢ Per Share.
- Terreno Realty (TRNO) increases quarterly cash dividend $0.06 to $0.40 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +3, Dow Jones +20, NASDAQ +18, and Russell 2000 +4. Europe and Asia higher. VIX Futures are at 23.17 from 24.20 yesterday morning and the VIX closed at 21.95 from 23.93 yesterday. Gold and Silver higher and Copper lower. WTI Crude Oil and Brent Oil Futures higher and Natural Gas higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.73% from 2.772% yesterday morning. Bitcoin is at $22,836 from $23,341 yesterday morning and is lower by -2.68% this morning. As of 8:06 a.m. EDT.
Sector Action – 08/03/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Communication Services, Consumer Cyclical, Technology, Financial, Industrials of note.
- Daily Negative Sectors: Energy of note.
- One Month Winners: Consumer Cyclical, Technology, Industrials, Energy and Utilities of note.
- Three Month Winners: Utilities and Energy of note.
- Six Month Winners: Energy, Utilities and Healthcare of note.
- Twelve Month Winners: Energy and Utilities of note.
- Year to Date Winners: Energy and Utilities of note.
Stocks powered higher with the help of solid earnings by PYPL, SOFI. NASDAQ up 2.59% and SPX gained 1.56%.. Updated 08/03/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: AMGN, VRTX, EOG, PSA, MNST, RSG, SQ, CTVA, MSI, ED, DASH, AEE, VTR, LYV, SWKS, PODD, NET, TWLO, EXPE, NLOK, LNT, HUBS, AES, CTXS, PLUG, Y, OTEX, PCTY, CUBE, NBIX, ZG, COLD, CABO, FND, DOCS, RBA, SWN, WYNN, QDEL, XPO, NFG, FFIN, MTZ, SYNA, POST, ROG, MP, OMCL, GH, PEN, CVNA, POWI, IRTC, LYFT, NEWR, NTRA, TDC, BECN, ELY, CYTK, FOXF, VIR, SEM, DUOL, CWK, DIOD, AEL, JAMF, PTCT, REZI, BHF, ENV, LOPE, CCOI, CORT, PGNY, STEP, KWR, SPXC, CHGG, USM, AX, ATSG, NUS, YELP, VSAT, RLJ, MWA, RAMP, SPCE, IOVA, FLGT, CYRX, KTOS, MDRX, OPK, ESTE, FIGS, SUPN, HMN, GDOT, MNTV, CRSR, FRG, CDNA, BIGC, CLNE, CMP, GDYN, RSI, AMWL, HRT, PLYA, OEC, RDFN, CDXS, HCAT, TMST, YMAB, MAX, CUTR, SGMO, NKTR, COLL, NSTG, LASR, FUBO, RMAX, CMBM, CHUY, MTW, BOOM, LOCO, GRWG, PBYI, ENDP of note.
- Friday Before the Open: TU, IEP, TRMB, WAB, WDC, DKNG, ESNT, SRCL, FLR, GTES, GT, TAC, LESL, TWST, CNK, GOGO, AAWW, EAF, GTN, WOW, AMCX, PRLB, SSP, ROAD, QRTEA, AXL, TILE of note.
Earnings of Note This Morning:
- Beats: NRG +1.53, BABA +1.23, HII +1.00, THRY +0.81, BALY +0.81, RIDE +0.77, WMS +0.76, CI +0.73, EPAM +0.67, NXST +0.66, BBIO +0.65, CROX +0.55, IBP +0.54, MODV +0.48, PH +0.46, CBRE +0.43, ERJ +0.40, MUR +0.39, WCC +0.26, IRM +0.21, MGPI +0.21, SRE +0.21, LNTH +0.19, ABMD +0.19, ATI +0.17, EPC +0.17, GOLF +0.17, BDX +0.16, FRT +0.16, IMOS +0.14, COMM +0.12, TNK +0.12, AGIO +0.10, INSM +0.10, FOUR +0.09, NWN +0.09, DDOG +0.09, ENOV +0.09, QSR +0.09, GIL +0.09, WHD +0.08, DCPH +0.07, TTGT +0.07, TRI +0.07, MIDD +0.07, OGN +0.06, WRK +0.06, SEAS +0.06, COP +0.06, DUK +0.06, PBH +0.05, NVMI +0.05, ICE +0.05, TVTX +0.05, DFH +0.05, ACIW +0.04, PNM +0.04, SHC +0.03, BCE +0.03, USER +0.03, FVRR +0.03, APG +0.02, PARA +0.02, VNT +0.02, EVRG +0.02, FIS +0.02, SHAK +0.02, HL +0.02, MYGN +0.02, NTCT +0.02, HWM +0.02, APD +0.01, STWD +0.01, ITT +0.01, PWR +0.01.
- Flat: LSPD +0.00, CGEN +0.00, KNBE +0.00, ESMT +0.00, DSEY +0.00, STVN +0.00, LXP +0.00, DNB +0.00, MD +0.00, BKI +0.00, JCI +0.00, DEN +0.00.
- Misses: PZZA (0.01), ZTS (0.02), CHH (0.02), NTLA (0.03), TECH (0.03), SBH (0.04), CIM (0.04), IDA (0.04), USPH (0.05), YETI (0.05), BV (0.06), W (0.06), DLX (0.06), AZEK (0.08), OGE (0.08), BALL (0.08), APO (0.08), IRWD (0.09), NJR (0.10), VMC (0.12), ADT (0.12), PLTK (0.12), FA (0.16), WE (0.16), MDU (0.16), SWTX (0.26), KTB (0.27), ARVN (0.28), AG (0.32), WD (0.33), PENN (0.35), APTV (0.38), LLY (0.46), CQP (0.82), LNG (0.84), CEG (0.98), BGNE (1.55).
- Still to Report: ARW , CVET , DK , DGII , DBRG , FOCS , FTDR , NSIT , IDCC , ITRI , K , KOP , MFA , NKLA , PRFT , DOC , PTLO , ROLL , SR , UNIT.
- Positive Guidance: NNN, WSC, TWNK, CFLT, EBAY, SFM, ACLS, FTNT, ELF, MCK, STOR, HUBG, PCOR, LSI, CDAY, GKOS, FROG, ALB, FLT, ACA, ICFI, AMPL, TTMI, CCRN, AVDX, ALKT, ZETA, RELY, CW, MMS, BHE, EPAM, CI, MODV, WCC, DLX, BV, STVN, BDX, WMS, TRI, IRM, PWR, NJR, HWM, ESMT, KNBE, LNTH, MGPI of note.
- Negative Guidance: SPNS, BRKR, GDDY, RYN, CLX, RCII, UIS, TNDM, RPD, PK, PACB, BNFT, MED, VMEO, QNST, SKLZ, KLIC, NVRO, CENT, FVRR, ACIW, YETI, VNT, LLY, PLTK, APTV, SBH, FIS, CROX, BALY, SHAK, MTGN, DSEY, LSPD, MDU, AZEK of note.
Erlanger Research Advance/Decline Chart: Updated through 08/03/22 close.
Gap Ups & Down In Early Pre-Market:
- Gap Up: YELL +31%, GBT +20%, CFLT +17%, HHC +14%, MELI +13%, PCOR +12%, ATUS +11%, RELY +11%, KXIN +11%, RUN +10%, SFM +8%, ETD +8%, DV +7%, TTMI +6%, ADPT +6%, LGO +5%, ALB +5%, EPC +5%, EPAM +5%, ELF +5%, AMPL +5%, AFG +5%, NOG +5%, WSC +5%, MRTX +5%, HBIO +5%, DOX +5%, ICFI +4%, CIVI +4%, ZETA +4%, IMOS +4%, HI +4%, HCC +4%, MUR +4%.
- Gap Down: PSTX -21%, RVLV -15%, ECVT -15%, PAY -15%, MED -13%, LCID -12%, VMEO -11%, SKLZ -10%, TNDM -10%, BRKR -10%, EQX -8%, CCRN -8%, CURV -8%, FTNT -7%, XNCR -7%, APPH -6%, SM -6%, CLX -6%, QNST -6%, DXC -6%, FVRR -5%, SITM -5%, RGR -5%, BALL -5%, KLIC -5%, CPE -5%, LUMN -5%, SRI -4%, PACB -4%, QRVO -4%, YETI -4%, TMDX -4%, TM -4%, UGI -4%.
Insider Action: AAT, ALDX sees Insider buying with dumb short selling. AINV sees Insider buying with smart short sellers. 08/03/22 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: LLY, CI, QSR, SHAK, PARA, BKNG, BABA, TM (CNBC)
- Five Things You Need to Know to Start Your Day (Bloomberg)
- Bloomberg Lead Story: Wall Street Bonuses to Plummet. (Bloomberg)
- Bloomberg Most Read Story: Pelosi Stares Down Xi. (Bloomberg)
- China test fired missiles around Taiwan in response to Pelosi visit. (Bloomberg)
- Senator Kyrsten Sinema (D-AZ) is not on board with the Inflation Reduction Act. (Axios)
- Health & Human Services did not request the Monkeypox vaccine early enough, creating a shortage. (NYT)
- Eli Lilly (LLY) CEO David Ricks interviewed on CNBC.
- Soft Bank (SFTBY) to sell $22 billion worth of Alibaba (BABA) stock. (FT)
- Robinhood Snacks looks at Match’s (MTCH) Tinder unit. Elliott takes stake in Paypal (PYPL) and Pinterest (PINS)
Moving Average Update:
- Score back to long time staple 80%. Updated 08/03/22 close.
- President’s Public Schedule:
- The President receives the President’s Daily Briefing, 10:45 a.m. EDT
- The President hosts a roundtable event with business and labor leaders to discuss how the Inflation Reduction Act lowers costs for families and businesses, lowers the deficit, fights inflation, lowers energy costs, and significantly bolsters domestic manufacturing, 1:45 p.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 2:45 p.m. EDT
- Challenger Job Cut 7:30 a.m. EDT
- Int. Trade in Goods 8:30 a.m. EDT
- Initial Jobless Claims 8:30 a.m. EDT
- EIA Nat Gas Report 10:30 a.m. EDT
- July Nonfarm Payroll is due out at 8:30 a.m. EDT and expected to fall to 250,000 from 372,000 while the unemployment rate is expected to stay at 3.6%.
Federal Reserve / Treasury Speakers:
- Federal Reserve Cleveland President Loretta Mester 12:00 p.m. EDT
- FLEETCOR® (FLT) Acquires Accounts Payable (AP) Automation Software Company.
- Sickle Cell Drug Maker Global Blood Therapeutics (GBT) Draws Takeover Interest. (Bloomberg)
- Two Harbors Investment (TWO) to acquire RoundPoint Mortgage Servicing.
Meeting & Conferences of Note:
- Sellside Conferences:
- Susquehanna’s Get Carded: Payments and FinTech Conference 2022 (08/04/22-08/05/22).
- Previously posted and ongoing conferences:
- Company Meetings: ALNA, GAIN, RL, TSLA.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ACAD
- Update: None of note.
- R&D Day: None of note.
- Company Event: BOSSY
- Industry Meetings:
- None of note.
- Previously posted and ongoing conferences:
- NeoHeart Conference 2022 (08/03/22-08/06/22)
- 12th China International New Energy Vehicle (NEV) Forum 2022 (08/03/22-08/05/22)
- Alzheimer Association International Conference (AAIC) 2022 (07/31/22-08/04/22)
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: