CAPIS Morning Note – 08/09/22: Stocks Were Higher Overnight But Slip Into the Red As We Approach The Open

Overnight Summary: The S&P 500 closed Monday at 4140.06 (lower by -0.12%) from Friday at 4145.19 (lower by -0.16%).  The overnight high of 4155 was hit at 7:40 p.m. EDT. The low was hit at 4131 at 6:55 a.m. EDT, a range of 24 points high to low which is below the range of late…

Overnight Summary: The S&P 500 closed Monday at 4140.06 (lower by -0.12%) from Friday at 4145.19 (lower by -0.16%).  The overnight high of 4155 was hit at 7:40 p.m. EDT. The low was hit at 4131 at 6:55 a.m. EDT, a range of 24 points high to low which is below the range of late with 45 the average range. At 7:20 a.m. EDT the current price is 4135.25 which is -0.16% and -6.25 points. Currently, at 8:20 a.m. EDT the S&P 500 is down -11.75.

Breaking News:  Trump raid is all the buzz today.

Earnings Out After The Close:

  • Beats: VAC +0.60, PRAA +0.38, NWSA +0.29, SWAV +0.27, PFG +0.26, CBT +0.18, QLYS +0.10, IFF +0.09, AIG +0.06, VECO +0.06 of note.
  • Flat: None of note.
  • Misses: NVAZ -11.71, TTWO -1.61, FRPT -0.32, PRI -0.21, BLNK -0.14, ICUI -0.09, UPST -0.07, DDD -0.07 of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
  • Secondaries Priced:
  • Notes Priced of note:
  • Common Stock filings/Notes:
    • KRTX begins $600 Million common stock offering.
    • PTLO to begin offering of 8 Million shares.
    • CINC offering up to 6 Million shares.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • SOVO files 8.5 million stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • HTLF files mixed shelf offering.
    • PZZA files mixed shelf offering.
    • DMTK file $300 Million mixed shelf offering.
    • RXST files$200 Million mixed shelf offering.
    • RLYB files $300 Million mixed shelf offering.
    • FGEN files mixed shelf offering.
    • GOEV files mixed shelf offering.
  • 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: GDRX +55.9%, LMND +13%, SWAV +8.6%, QLYS +7.4%, PUBM +7% on earnings.
    • Trading Down: NVAX -32.5%, CARG -15.6%, DDD -13.8%, TREX -11.2%, UPST -9.8% on earnings.
  • News Since The Close:
    • Stocks making the biggest moves after hours:  (CNBC)
    • Pfizer (PFE) and Valneva SE (VALN) begin Phase 3 trial on Lyme Disease.
    • Turtle Beach (HEAR) will remain a stand alone company.
    • President Trump’s Mar a Lago is raided by FBI looking for documents he took from The White House. (CNN)
  • Exchange/Listing/Company Reorg and Personnel News:
    • CEO Kevin Hrusovsky steps down as Executive Chairman of the Board.
    • Salesforce (CRM) names Brian Millham to COO.
  • Buyback Announcements or News: 
    • National Healthcare (NHC) to buy back $25 million of stock.
  • Stock Splits or News:  
  • Dividends Announcements or News: 

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

S&P 500 , Dow Jones , NASDAQ , and Russell 2000 . Europe and Asia mixed.  VIX Futures are at 22.90 from 23.17 yesterday morning and the VIX closed at 21.29 from 21.95 yesterday. Gold higher, Silver lower 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 2.79% from 2.803% this morning. Bitcoin is at $23,381 from $$24,066.45 and is lower by -2.20% this morning. As of 8:10 a.m. EDT.

Sector Action – 08/08/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors:  Energy, Materials and Real Estate of note.
  • Daily Negative Sectors: Technology and FInancials of note.
  • One Month Winners:  Consumer Cyclical, Technology, Industrials, Energy, Financials, Materials and Utilities of note.
  • Three Month Winners: Technology, Utilities and Consumer Cyclical of note.
  • Six Month Winners: Energy and Utilities of note.
  • Twelve Month Winners: Energy and Utilities of note.
  • Year to Date Winners: Energy and Utilities of note.

.  Updated 08/08/22 close.

Mixed Monday remains the trend as there has only been one up day in August so far on the S&P 500 but still higher since then by 0.24%. The market is waiting to see how CPI and PPI play out this Wednesday and Thursday. Updated 08/08/22 close.

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

  • Tuesday After the Close: RBLX, TTD, AKAM, CG, PLUG, U, DAR, MASI, DLB, WYNN, CELH, EXEL, HALO, HRB, IAC, CRSP, SAIL, WWE, LNW, DNLI, ONTO, GO, ZD, BE, VIR, CERT, ALRM, WK, TTEC, ATCO, ABCL, IPAR, FLYW, LFST, JXN, MAXR, LRN, CCXI, CRCT, RPAY, RXT, WISH, EVBG, RCKT, MODN, ICHR, WTI, TBLA, ARLO, SEER, VUZI, PETQ, INO, NVTA, BLI, PLBY, DOMA, OSUR, ANNX of note.
  • Wednesday Before the Open: BEKE, FOXA, CAE, WEN, IS, HAE, NOMD, BLDP, WWW, JACK, KRNT, BHG, SHCR, TUFN, DIBS of note.

Earnings of Note This Morning:

  • Beats: H +0.42 SAVE +0.16 GFS +0.13 EMR +0.09 RDNT +0.06 WMG +0.04 .
  • Flat: None of note.
  • Misses: BHC -1.31 AVYA -0.29 AHCO -0.24 PRGO -.01.
  • Still to Report: BEAM PLNT REYN RL SYY TPG .

Guidance:

  • Positive Guidance:  GFS STER of note.
  • Negative Guidance:  NVEI IAA CRNC BHC of note.

Erlanger Research Advance/Decline Chart: Updated through 08/08/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: GDRX +39.2%, VRNA +31.5%, MRSN +15%, LMND +13.4%, DM +12.4%, EGIO +12.1%, PUBM +8.7%, SWAV +8.2%, RXST +7.9%, NE +6.3%, QLYS +5.9%, AZPN +5.4%, AAON +5%, VVNT +4.9%, MDU +4.7%, PRAA +3.6%, VALN +3.3%, DCGO +3.1%, TXG +3% .
  • Gap Down: CRMD -53.6%, NVAX -31.2%, HEAR -30.9%, QTRX -27.1%, TASK -14.6%, DDD -14.4%, UPST -13.4%, ME -13.3%, CARG -12.9%, TREX -12.4%, FRPT -11.9%, BIRD -11.5%, VRM -11%, WPRT -11%, CLOV -10.6%, SOVO -9.1%, EHTH -9.1%, NCMI -8.4%, LPSN -8.1%, BRBR -7.7%, PFLT -7.1%, SDC -7%, ACCO -7%, RLYB -6.6%, ICUI -6.4%, BLNK -5.7%, GOEV -5.1%, LPX -4.2%, FGEN -4.1%, YMAB -3.7%, RCUS -3.4%, ACM -3.4%, TTWO -3.4.

Insider Action:  ALDX of note Insider buying with dumb short selling.   PSN of note with Insider buying with smart short sellers. 08/09/22 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: NVAX GDRX  (CNBC)
  • 5 Things To Know This Morning. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Trump Search is Unprecedented. (Bloomberg)
  • Bloomberg Most Read Story: FBI Search Focused On Materials Trump Brought From White House. (Bloomberg)
  • Taiwan accuses China of conducting cyber attacks. (WSJ)
  • European Union submits text to revive Iran Nuclear Deal. (FT)
  • JP Morgan Strategist Marco Kolanovic says time to trim stocks and buy commodities. (Bloomberg)
  • Home inventor soars. (Bloomberg)
  • Tesla (TSLA) said sales in China fell 66% due to factory maintenance which was scheduled. (Reuters)
  • Micron (MU) out with guidance comments, sees at the low end.
  • U.S. solar shipments seeing disruptions from China due to human rights issues in Xinjiang region. (WSJ)
  • FAA approves first Boeing (BA) 787 delivery. (Reuters)

Moving Average Update: 

  • Score is at 73% from 80% recently. Updated 08/08/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President delivers remarks and signs into law H.R. 4346, the CHIPS and Science Act of 2022 at 10:00 a.m. EDT.
    • The President delivers remarks and signs the Instruments of Ratification for the Accession Protocols to the North Atlantic Treaty for the Republic of Finland and Kingdom of Sweden at 2:00 p.m. EDT.
    • Press Briefing by Press Secretary Karine Jean-Pierre at 2:40 p.m. EDT.

Economic: 

  •  The latest short interest data for the NYSE and NASDAQ from July 13th through the 27th on a trade date basis. During this period the S&P 500 rose 5.83%, so it will be interesting to see how much covering the market saw during this period. Due out after the close.

Federal Reserve / Treasury Speakers:

  • No Federal Reserve Speakers on the schedule for today.

M&A Activity:

  • Azenta (AZTA) to buy B Medical Systems for 410 Million Euros.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Wedbush Pac Growth Healthcare Conference
    • Jefferies Industrial Conference
    • Oppenheimer Annual Technology, Internet & Communications Conference.
      • Previously posted and ongoing conferences:
        • BTIG Biotech Conference.
        • Canaccord Genuity Annual Conference
        • Cowen Annual Communication Infrastructure Summit 2022
        • Wells Fargo Annual Fin Tech & Technology Services Forum 2022
        • UBS Financial Services Conference
  • Company Meetings:.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: .
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
  • Industry Meetings:
    • None of note.
      • Previously posted and ongoing conferences:

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: