Overnight Summary: The S&P 500 closed Monday higher by 0.58% at 4489.72 from Friday lower by -0.11% at 4464.05. Overnight ranges saw the high hit at 4517.25 at 9:30 p.m. EDT while the low was hit at 4475.25 at 6:35 a.m. EDT. The range overnight was 43 points. The 10-day average of the overnight range is at 31.50 from 29.60 yesterday. The average for May/June/July average was 18.81 from 19.94 in May/June. Currently, the S&P 500 is lower by -26 points and by -0.58% at 7:15 a.m. EDT.
Earnings Out After The Close:
- Beats: DH +0.02, NVTS +0.02 of note.
- Flat: None of note.
- Misses: HRTX (0.13) of note.
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500. It looks for volume outliers relative to the Open interest in Calls or puts. Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.
- IPOs Priced or News:
- SRM Entertainment (SRM): Pricing of Its Initial Public Offering.. 1,250,000 shares of its common stock at a price to the public of $5.00 per share.
- New SPACs launched/News:
- Mobiv Acquisition Corp (MOBV) is increasing the consideration payable to non-redeeming shareholders.
- TortoiseEcofin Acquisition Corp. III (TRTL) and One Energy Enterprises announce execution of a definitive business combination agreement to form One Power Company.
- WinVest Acquisition Corp. (WINV) Announces Extension of Termination Date and Additional Contribution to Trust Account to Extend Termination Date.
- Secondaries Priced:
- TFFP: Prices $5 Million Public Offering of Common Stock 19,896,000 shares at $0.25.
- Notes Priced of note:
- WK: Announces Upsize and Pricing of Private Offering of $625 Million of 1.250% Convertible Senior Notes.
- Common Stock filings/Notes:
- ATNF: 180 Life Sciences Corp. Announces Closing of $3 Million Public Offering.
- ERNA: Filed Form S-3.. Up to 16,754,154 Shares of Common Stock.
- RMTI: Filed Form S-3.. 3,750,000 Shares of Common Stock.
- TFFP: Proposed Public Offering of Common Stock. (Benchmark Bookmanager)
- Direct Offering: None of note.
- Selling Shareholders of note:
- OTLK: Filed Form S-3.. 515,755 Shares of Common Stock by selling shareholder.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- GIFI: Filed Form S-3.. $200,000,000 Mixed Shelf.
- MAIA: Filed Form S-3.. $150,000,000 Mixed Shelf.
- PSA: Filed Form S-3ASR.. Mixed Shelf.
- SLB: Filed Form S-3ASR.. Mixed Shelf.
- Debt/Credit Filing and Notes:
- AKAM: Proposed Offering of Convertible Senior Notes.
- Tender Offer: 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 and Over the Holiday:
- After Hours:
- Trading Up: GRND +14%, LL +13%, ACLX +9%, NVTS +7%, of note.
- Trading Down: DSGN -33%, GETY -14%, DH -5%, SLRN -5% of note.
- News Items After the Close:
- Stocks making the biggest moves after hours: DFS, GETY, LEN, DHI, NVR (CNBC)
- Discover Financial Services (DFS) CEO Roger Hochschild Resigns. Names J. Michael Shepherd to Its Board of Directors. (MarketWatch)
- Secretary of the Treasury Janet Yellen provides remarks on the economy. (TreasuryRelease)
- Getty Images’s (GETY) stock falls 15% after company swings to loss, cuts outlook. (MarketWatch)
- LL Flooring (LL) Board of Directors Announces Exploration of Strategic Alternatives to Maximize Shareholder Value. (MarketWatch)
- Esmark Bids for U.S. Steel (X), Setting Up Potential Battle for Steelmaker. (WSJ)
- Another Amazon (AMZN) exec, its devices chief, is leaving (MarketWatch)
- Japan’s economy grew 6% annualized in the second quarter, far more than expected. (CNBC)
- Exchange/Listing/Company Reorg and Personnel News:
- F45 (FXLV) Announces Intention to Voluntarily Delist and Deregister its Securities.
- Getty Images (GETY) files to delay form 10-Q.
- Invitae (NVTA) appoints Robert Dickey as interim CFO.
- Maui Land & Pineapple Co. (MLP) files to delay form 10-Q.
- PARTS iD (ID) Announces Acceptance of Compliance Plan by NYSE American.
- Rogers Corp (ROG) appoints Griffin Gappert as CTO.
- Smith-Midland (SMID) Announces Delayed Filing of Form 10-Q.
- Tingo Group (TIO) files to delay form 10-Q.
- Velo3D (VLD) filed to delay its 10-Q.
- Zevia (ZVIA) announces CFO transition.
- Buyback Announcements or News:
- BRT Apartments (BRT) increases share repurchase authorization to $10 million.
- Cosan (CSAN) approved a new share buyback program with maximum number of shares that can be repurchased at 116,000,000.
- Home Depot (HD) Announces $15 Billion Share Buyback. (MarketWatch)
- HUYA Authorizes $100 million share repurchase program.
- RSKD Board Authorizes $75 Million Share Repurchase Program.
- Seadrill (SDRL) $250 Million Share Repurchase Authorization.
- Stock Splits or News:
- Dividends Announcements or News: None of note.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -33, Dow Jones -282, NASDAQ -100, and Russell 2000 -16. (as of 7:58 a.m. EDT). Asia is higher ex South Korea and Europe is lower this morning. VIX Futures are at 17.18 from 17.01 yesterday. Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher. US 10-year Treasury sees yields at 4.235% from 4.148% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $29,354 from $29,368 yesterday, higher by 0.08%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Communication Services of note.
- Daily Negative Sectors: Utilities, Real Estate, Energy, Consumer Defensive, Basic Materials, Financial of note.
- One Month Winners: Energy, Healthcare Financials of note.
- Three Month Winners: Consumer Cyclical, Energy, Industrials of note.
- Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
- Twelve Month Winners: Energy, Industrials, Technology of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.
A rebound in tech shares lifted U.S. stock indexes Monday, while yields on longer-term bonds stabilized after briefly threatening their highest levels in more than a decade, though Tuesday morning they have rocketed. Reversing a recent trend of outperformance by the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite led the way among the three major indexes, gaining 1.1%. The S&P 500 rose 0.6%, while the Dow ticked up 0.1%. Tech shares got a particular boost early in the trading session when bond yields reversed course after climbing sharply before—and just after—the opening bell. The yield on the benchmark 10-year U.S. Treasury note at one point reached as high as 4.215%, near the 4.231% level set on Oct. 24 that was its highest close since 2008 (taken out this morning). That proved then to be a turning point, bringing in buyers who drove the yield back below 4.2% to finish the day at 4.181%. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Wednesday Before the Open:
Earnings of Note This Morning:
- Beats: HD +0.20, PSFE +0.20, RSKD, +0.08, CAH +0.05, HUYA +0.01 of note.
- Flat: None of note.
- Misses: IHS (3.62), LEGN (0.21), SE (0.11), TME (0.07), ONON (0.07) of note.
- Still to Report: None of note.
- Positive Guidance: NVTS, PSFE of note.
- Negative Guidance: DH, ONON of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: GRND +23%, LL +12%, ACLX +10%, NVTS +7%, HUYA +6%, SDRL +4% of note.
- Gap Down: DSGN -36%, GETY -18%, ONON -7%, DFS -6%, DH -5%, SLRN -5%, TME -4% of note.
Insider Action: NUE, FSK sees Insider buying with dumb short selling. COMM, DAR 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.
- Stocks making the biggest moves premarket: NVDA, DFS, DHI, PSX, HASI, MS, JPM, BOC, C, CLF (CNBC)
- 5 Things to Know Before the Stock Market Opens Tuesday. (CNBC)
- Bloomberg Lead Story: Trump’s Fourth Indictment Lays Out Sweeping Georgia Election Plot. (Bloomberg)
- Bloomberg Most Shared Story: Hollywood Studios offer writers a new deal with push from Netflix and Dinsey’s Iger to end strike. (Bloomberg)
- Stocks, Bonds fall as China Rate cut deepens gloom: Market Wrap (Bloomberg)
- Russia’s emergency rate hike fails to lift Rubble. (Bloomberg)
- China unexpectedly cuts rates most since 2020. (Bloomberg)
- China to become the top car exporter by year-end, passing Japan. (CNBC)
- Home Depot (HD) beats on estimates but slides on consumers pulling back on big-ticket items. (CNBC)
- Cardinal Health (CAH) misses and lower by 1% in pre-market. (MarketWatch)
- Fitch warns that future downgrades may be coming on the big banks, including JP Morgan Chase (JPM). (CNBC)
- Bank of America says fund managers least bearish in a year. (MarketWatch)
- NPR Marketplace: American consumers keep on spending month after month — even as inflation and rising interest rates chip away at family finances and credit card debt mounts. But after several years of hardship and unpredictability, there’s still a lot to stress about. And it’s got us feeling spendy. Then, how Gen Z and millennials feel about investing and how waste plants pick through unsorted recyclables. (Podcast)
- BBC Global News: Russian Rouble hits symbolic low. (Podcast)
- NY Times The Daily: A law used against the Mafia (RICO) now used against Trump. (Podcast)
- Bloomberg Podcasts of Note: Worrying about money is the great equalizer in America. (Podcast)
- Wealthion: Rich Men North of Richmond is the War Cry. (Podcast)
Moving Average Update:
- Score rises to 60% from 40%.
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 AM
- The President departs the White House at 10:20 AM en route to Joint Base Andrews and then arrives in Milwaukee, Wisconsin at 12:25 p.m. EDT
- The President participates in a tour of Ingeteam, Inc., 1:05 p.m. EDT (12:05 PM Local)
- The President delivers remarks on how Bidenomics is Investing in America to grow the economy from the middle out and the bottom up, not the top down, 2:00 p.m. EDT (1:00 PM Local)
- The President departs Milwaukee, Wisconsin at 3:20 p.m. EDT en route to Joint Base Andrews and then arrives at the White House at 5:20 p.m. EDT
- July Retail Sales is due out at 8:30 a.m. EDT and is expected to rise to 0.4% from 0.2%.
- August Empire State Manufacturing is due out at 8:30 a.m. EDT and is expected to rise to 2.4 from 1.1.
- Import and Export Prices 8:30 a.m. EDT
- Redbook Sales 8:55 a.m. EDT
- Business Inventories 10:00 a.m. EDT
- Housing Market Index 10:00 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve Minneapolis President Neel Kashkari 11:00 a.m. EDT.
M&A Activity and News:
- Bentley Systems (BSY) acquires Blyncsy.
- Tenaris (TS) to acquire a pipe coating business unit of Mattr.
Meeting & Conferences of Note:
- Sellside Conferences:
- Citi ASEAN Financials and Real Estate Investment Forum 2023
- Credit Suisse Brazil Financials Conference
- Deutsche Bank Transportation Conference (08/15/23-08/16/23)
- UBS MedTech Tools and Genomics Summit (08/15/23-08/17/23)
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: HIMX
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AYRO, LNW, NVTS, NVZMY, PXMD, RCEL, WLDS
- R&D Day: None of note.
- Company Event: None of note.
- Industry Meetings:
- Australasian Gaming Expo (08/15/23-08/17/23)
- Open Storage Summit 2023
- Military Health System Research Symposium
- 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 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: