Overnight Summary: The S&P 500 closed Monday at 4137.99 (lower by -2.14%) from Friday at 4228.48% (lower by -1.28%).  The overnight high of 4157 was hit at 4:15 a.m. EDT. The low was hit at 4118 at 2:40 a.m. EDT, a range of 39 points high to low which is around the range of late with 45 the average range. At 7:15 a.m. EDT the current price was 4142.25 which is +0.02% and 1 point.  Currently, at 7:55 a.m. EDT the S&P 500 is now higher by +7  points.

• IPOs Priced or News:
  • Starbox Group Holdings Ltd. (STBX) Pricing of US$20 million Initial Public Offering.. 5,000,000 ordinary shares @$4.
• New SPACs launched/News:
  • E.Merge Technology Acquisition Corp. (ETAC) intends to dissolve due to its inability to consummate an initial business combination within the required time period.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • AWH: Proposed Public Offering.. Blair bookmanager.
  • RBT: Filed Form S-1.. Up to 110,706,010 Shares of Class A Common Stock Up to 14,204,375 Warrants.
• Pricing of Over-Allotment/Notes: None of note.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • FDMT: Filed Form S-3.. 2,837,914 Shares Common Stock Offered by the Selling Stockholders.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings: None of note.
• Debt Filing/Notes:
  • RCI: Announces Consent Solicitations for Senior Notes.
  • SRC: Announces $800.0 Million Unsecured Term Loan Facility.
• Convertible Offering & Notes Filed:
  • ASRT: Proposed Convertible Senior Notes Offering to Refinance Existing 13% Senior Secured Notes Due 2024.
  • CCL: Closing of Convertible Notes Exchange, Extending Maturity at Existing 5.75% Rate.

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: PANW +8%.
  • Trading Down: ASRT -26%, ZM -9%, DLO -8%.

• News Since The Close:
  • Palo Alto Networks (PANW) stock leaps following strong outlook that CEO terms ‘prudent’. (MarketWatch)
  • Bausch Health (BHC) Hires Advisers Amid Patent Loss, Spinoff Controversy. (WSJ)
  • Netflix (NFLX) explores cloud gaming as it looks for new hires. (TechCrunch)
  • Zoom Video (ZM) cuts earnings and revenue outlook for the year, stock falls. (MarketWatch)
  • FedEx (FDX) team, which includes numerous companies, such as AAL, AAWW, DAL, and HA, awarded a $1.63 billion modification U.S. Transportation Command contract.
  • Leidos (LDOS) to Design Future Medium Unmanned Undersea Vehicle for US Naval Sea Systems Command for a contract of $358 million.
• Exchange/Listing/Company Reorg and Personnel News:
  • Arhaus (ARHS) assigns Tim Kuckelman to new role of COO, starting at month end.
  • Adial Pharmaceuticals (ADIL) Names Cary Claiborne as Chief Executive Officer.
  • Biocept (BIOC) Announces Receipt of Deficiency Notice from Nasdaq Regarding Requirement to Timely Quarterly Report on Form 10-Q.
  • Baozun (BZUN) Applied for Voluntary Conversion to Dual-Primary Listing on The Main Board of The Stock Exchange of Hong Kong Limited.
  • DADA announced the resignation of Mr. Philip Kuai as chairman of the Board and CEO at month end.
  • Edgio (EGIO) appoints Stephen Cumming as CFO.
  • SomaLogic (SLGC) COO Melody Harris will be leaving.
  • Vivos Therapeutics (VVOS) Provides Update on Second Quarter Earnings Delay.. Delay Due to Technical Revenue Recognition Analysis and Unrelated to Overall Business Health.
• Buyback Announcements or News:
  • FinVolution Group (FINV) expands share repurchase program to $140 million from $60 million.
  • International Seaways (INSW) Continues Returning Cash to Shareholders With Repurchase of Shares.
  • PANW:  Authorizes an additional $915 million for share repurchases, increasing the remaining authorization for future share repurchases to $1 billion. (see stock splits below)
• Stock Splits or News: 
  • PANW: Board of directors approved a three-for-one stock split. (see buybacks above)
• Dividends Announcements or News:
  • DallasNews Corporation (DALN) Announces Special Dividend and Voluntary Pension Contribution.

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

S&P 500 +8, Dow Jones +45, NASDAQ +37, and Russell 2000 +6  (as of 8:10 a.m. EDT). Europe lower and Asia lower.  VIX Futures are at 25.50 from 25.12 yesterday morning and the VIX closed at 23.80 from 20.60  yesterday. Gold higher, Silver lower and Copper higher. WTI Crude Oil  and Brent Oil Futures higher and Natural Gas higher. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 3.018% from 2.974%  yesterday morning. Bitcoin is at $21,408 from $21,259 Monday morning  and is higher by 1.75% this morning.

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

• Daily Positive Sectors: Energy of note.
• Daily Negative Sectors: Technology, Consumer Cyclical, Communication Services, Real Estate, Financial, Industrials, Utilities, Consumer Defensive, Health Care, Basic Materials of note.
• One Month Winners:  Technology, Consumer Cyclical, Industrials, Energy, Basic Materials, Financials, Utilities, and Real Estate of note.
• Three Month Winners: Consumer Cyclical, Technology, and Industrials 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.

Have you heard Federal Chairman Jerome Powell is set to speak in Jackson Hole Economic Policy Symposium on Friday?  Broad based sell off continued from Friday’s negative prints.  Everyone pointing to Powell to be our savior and stop the bleeding.  NDX was down -2.66%.  UNG up 5.43% along with the dollar via the UUP up 0.83%.  Updated 08/22/22 close.

 

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

Gap Ups & Down In Early Pre-Market:

• Gap Up: AERI +34%, PANW +8%, EGIO +6%, FINV +6%, GERN +5%, CANO +4%.
• Gap Down: ASRT -25%, ZM -11%, DLO -9%.

Insider Action: No stock sees Insider buying with dumb short selling.  OLO, NS sees Insider buying with smart short sellers. 08/22/22 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: ZM PANW M DKS (CNBC)
• 5 Things To Know Before The Stock Market Opens. (CNBC)
• Five Things You Need to Know to Start Your Day (Bloomberg)
• Bloomberg Lead Story: U.S. Futures Waiver with Dollar and Treasuries Stronger. (Bloomberg)
• Bloomberg Most Read Story: Saudi Prince reiterates Oil Minister on potential cuts. (Bloomberg)
• State Department urges Americans to leave Ukraine as at maximum danger point. (CNBC)
• China power cuts not to extend beyond summer. (CNBC)
• Volkswagen looks to purchase stakes in Canadian mines. (Handelsblatt)
• Europe’s natural gas shortages are increasing demand for tankers. (WSJ)
• Apple (AAPL) to start iPhone 14 production in 2 months after next month release from India. (Bloomberg)
• President Trump sues to stop DOJ review of materials taken by FBI. (CNBC)
• CNBC’s Brian Sullivan notes that after speaking with Saudi Energy Minister that appears “very likely” OPEC+ will either cut production or reduce the rate at September 5th meeting or before. (CNBC)
• Dick’s (DKS) ups outlook for 2022. (CNBC)
• Macy’s (M) guides lower as fears over consumer confidence. (CNBC)
• Former Twitter (TWTR) Security Chief Peiter Zatko alleges, as a whistleblower, that the company misled regulators about spam and hacking issues. (The Washington Post)
• General Electric (GE) workers in Alabama launch union campaign. (Reuters)
• White House looks to cancel student debt of $10,000 for those making less than $125,000. (CNN)
• Former Treasury Secretary Larry Summers says student loan cancellation is inflationary. (Bloomberg)
• Semiconductor sales to slow further. (Bloomberg)

Moving Average Update:

• Score drops to 20% from 42% as that ceiling of the 200 just rejected the moves.  Short term moving averages getting picked off.  50 day only one that remains positive.  Updated 08/22/22 close.

Geopolitical: 

• Federal Reserve Minneapolis President Neel Kashkari 7:00 p.m. EDT

M&A Activity:

• Aerie Pharma (AERI) to be acquired by Alcon (ALC) for $15.25 per share.
• Atlas Crane Service Acquired by Ares Management (ARES).
• Blackbaud (BLKB) Acquires Kilter, an Activity-Based Engagement App.
• BDX BD Announces Pricing of the Tender Offers.
• Concrete Pumping (BBCP) acquires Coastal Carolina Pumping.
• Gibraltar Industries (ROCK) has acquired Quality Aluminum Products for $54 million in cash.

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: