Overnight Summary: The S&P 500 closed Friday higher by 0.67% at 4405.71 from Thursday lower by -1.35% at 4376.31 . Overnight ranges saw the high hit at 4424.25 at 4:30 a.m. EDT while the low was hit at 4414.50 at 8:35 p.m. EDT. The range overnight was 10 points. The 10-day average of the overnight range is at 26.10 from 28.70 Friday.  The average for May/June/July average was 18.81 from 19.94 in May/June. Currently, the S&P 500 is higher by +6.25 points and by +0.14% at 7:15 a.m. EDT.

Earnings Out After The Close: 

• IPOs Priced or News:
  • Instacart files for IPO, joining crowded field of gig-economy names as markets rebound. (MarketWatch)
• New SPACs launched/News: None of note.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • ASTI: Filed Form S-1.. Sell Units.
  • ATLX: Filed Form S-3.. $75,000,000 Common and Preferred Stock.
  • FOXO: Filed Form S-1.. Up to 3,668,750 Shares of Class A Common Stock.
  • FUV: Filed Form S-1.. Up to 26,588,409 Shares of Common Stock.
  • IMTX: Filed Form F-3.. 2,419,818 Ordinary Shares.
  • PRFX: Filed Form F-1…467,896 Ordinary Shares.
  • RSLS: Filed Form S-1 – File to sell units.
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • AAP: Files mixed securities shelf offering.
• Debt/Credit Filing and Notes: None of note.
• 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 Week:

• Weekly Wrap Up: Best and Worst performing large cap stocks:
  • Trading Up: APLS 32.7%, FN 32.5%, KZR 27.9%, BB 19.4%, TWNK 19.0%, MESO 18.7%, SPLK 18.6%, RCUS 17.8%, ANF 16.3%, HMY 15.1%, GRPN 15.0%, GES 13.6%, NVAX 13.5%, FTCH 12.8%, HOLI 12.7%, ASX 12.1%, MTSI 11.6%.
  • Trading Down: DOMO -38.6%, FL -31.5%, HE -31.1%, DKS -23.4%, M -19.9%, JWN -18.6%, BIG -16.2%, KSS -15.2%, PINC -14.7%, EGHT -14.7%, CSIQ -14.7%.

• News Items After the Close:
  • Federal Reserve Kansas City President Esther George: “Too soon to tell how much more needed on the rate front.”
  • Apollo (APO) names Chris Ayers new Arconic CEO. (MarketWatch)
  • Knight-Swift (KNX) CEO and CFO to voluntarily reduce base salaries by approximately 20% thru year end 2023.
• News Items Over the Weekend:
  • The Score: M, NVDA, WBD, PTON, MSFT, ATVI, UBI, RAD (WSJ)
  • Despite What Powell Says, the Fed Is Likely Done. (WSJ)
  • Rising Long-Term Rates Loom Over Wall Street. (WSJ)
  • 3M  (MMM) agrees to pay more than $5.5B in settlement over military ear plugs. (Bloomberg)
  • The ‘Fidelity Mafia’ Behind Big Crypto. (WSJ)
  • China Reduces Tax On Stock Trading By 50% To Boost Market.
  • Barron’s:
    • Positive View: ALL, ACGL, RYAN, GWRE, SN, CTLE, VTLE, SM, MTDR, PR, BBY of note.
    • Cautious View: None of note.
    • Mixed View: None of note.
• Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

• Exchange/Listing/Company Reorg and Personnel News:
  • Arconic (ARNC) announces that Chris Ayers will become CEO and Chair of the Board.
  • BrightView (BV) Appoints Dale A. Asplund as Chief Executive Officer, leaves, United Rentals (URI) COO position.
  • Genelux Corporation (GNLX) Announces New Chief Financial Officer.
  • Innoviva (INVA) names Stephen Basso as CFO.
  • Live Oak Bancshares (LOB) names William Losch, III as President.
  • Medicenna (MDNA) Announces the Appointment of Jeff Caravella as Chief Financial Officer.
  • Scotts Miracle-Gro (SMG) promotes Nate Baxter to COO.
• Buyback Announcements or News:  
  • Nano Dimension (NNDM) Resumes Its Share Repurchase Plan Immediately.
• Stock Splits or News: 
  • FFIE trading r/s price.
  • Heliogen (HLGN) Announces 1-for-35 Reverse Stock Split.
• Dividends Announcements or News: 
  • EastGroup (EGP) increases its quarterly dividend 1.6% to $1.27 per share.
  • Summit Financial Group, Inc. (SMMF) Increases Quarterly Common Dividend 10 Percent to $0.22 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: Consumer Cyclical, Energy, Technology, Industrials, Utilities, Healthcare, Consumer Defensive of note.
• Daily Negative Sectors: None of note.
• One Month Winners: Energy, Consumer Cyclical, Communication Services of note.
• Three Month Winners: Consumer Cyclical, Energy, Industrials of note.
• Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
• Twelve Month Winners: Technology, Communication Services, Energy, Industrials,  of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

Stocks rose. The S&P 500, Nasdaq and Dow industrials all ended higher, and the Dow and Russell 2000 were lower for the week. All equity indexes are down for the month.  The yield on the 10-year Treasury edged up to 4.239%, from 4.234% Thursday.  Nordstrom (JWN) fell. The department-store chain reported a drop in quarterly sales, making it the latest retailer to raise concerns about the health of consumer spending.  Hawaiian Electric (HE) shares sank after Maui County sued the utility and S&P Global Ratings cut its credit rating further.  Nvidia (NVDA) dropped as well. The chipmaker’s shares fell 2.4% after its blowout earnings results earlier in the week, disappointing some traders who were betting on bigger moves. Rite Aid (RAD) shares tumbled 51% after the Journal reported the drugstore chain is preparing to file for chapter 11 bankruptcy in the coming weeks.  Chinese stock indexes slipped overall, but property companies’ shares jumped after Beijing unveiled new measures to ease a slump in the real-estate sector.  (WSJ – edited by QPI)

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

• Gap Up: HE +37%, BBIO +10%, ESPR +8%, MMM +6%, HZNP +5%, XPEV +4% of note.
• Gap Down: None of note.

Insider Action: No stock sees Insider buying with dumb short selling.  ASYS 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: MMM, CRWD, MCW, XPEV, AKRO, BABA, RPT (CNBC)
• 5 Things to Know Before the Stock Market Opens. (CNBC)
• Bloomberg Lead Story: China’s 5.5% Stock Rally Fizzles In A Blow to Market Rescue Effort. (Bloomberg)
• Bloomberg Most Shared Story: 3M Agrees to Pay More Than $5.5 Billion Over Combat Earplugs. (Bloomberg) 
• Stocks gain as traders assess rates, China support: Market Wrap. (Bloomberg)
• Lagarde policy silence keeps ECB rate debate raging. (Bloomberg)
• Evergrande shares plummet 87% as shares reopen in China. (CNBC)
• Bank of England Deputy Governor Ben Broadbent says rates might need to stay higher longer. (Bloomberg)
• President Biden to request next round of funding for Covid vaccines, will recommend everyone get the vaccine. (The Hill)
• Commerce Secretary Raimondo to visit Chine this week as seeks more stable relationship. (CNBC)
• Federal Reserve Cleveland President Loretta Mester says another Fed rate hike will probably be needed. (Reuters)
• Drug makers set to face their first price negotiations on 10 drugs with U.S. government. (Bloomberg)
• UAW Boss wants a 46% pay raise with a 32 hour work week in contract negotiations with Auto Manufacturers. (Bloomberg)
• Idalia heads towards west coast of Florida this week. (Weather Channel)
• Tech IPOs on the come back and now they have to perform. (CNBC)
• FAA reports 5,000 pilots hide health problems. (The Washington Post)
• NPR Marketplace: How much should a sandwich cost? How about a fast food drink? A gallon of gas? Turns out, behavioral economics shapes how much we think something should cost and explains why it’s hard to adjust those prices for inflation. We also dissect Fed Chair Jerome Powell’s Jackson Hole Symposium speech and hear why squashing the last bit of inflation is so tricky. (Podcast)
• BBC Global News: Moscow confirms death of Prigozhin.  (Podcast) 
• NY Times The Daily: Race to the moon as India lands robotic craft. (Podcast)
• Bloomberg: The Big Take: Xi Jingping’s Economic Plan: Let China struggle.  (Podcast)
• Wealthion: Are Bonds In Trouble? (Podcast)

Moving Average Update:

• The score bumps up to 40% from 20%.

Geopolitical: 

M&A Activity and News: 

• Danaher (DHR) to Acquire Abcam (ABCM) for $24.00 per Share.
• Hersha Hospitality Trust (HT) be acquired by KSL Capital Partners; common shareholders to receive $10.00/share in cash, a 60% premium to prior closing price.
• RPT Realty (RPT): Kimco Realty (KIM) to acquire RPT Realty in all-stock transaction.

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: