CAPIS Morning Note – 08/31/23: Stocks Higher Into PCE Core Data at 8:30 a.m. EDT, Yields Fall on 10 Year As Well

Overnight Summary: The S&P 500 closed Wednesday higher by 0.38% up to 4514.87 from Tuesday higher by 1.45% at 4497.63. It was the first four-day winning streak on the S&P 500 for August and first since 6/09 to 6/14. Overnight ranges saw the high hit at 4531.75 at 4:00 a.m. EDT while the low was hit…

Overnight SummaryThe S&P 500 closed Wednesday higher by 0.38% up to 4514.87 from Tuesday higher by 1.45% at 4497.63. It was the first four-day winning streak on the S&P 500 for August and first since 6/09 to 6/14. Overnight ranges saw the high hit at 4531.75 at 4:00 a.m. EDT while the low was hit at 4523 at 4:05 p.m. EDT. The range overnight was 9 points. The 10-day average of the overnight range is at 22.30 from 23.60 down from a peak of 31.50 on 8/15.  The average for May/June/July average was 18.81 from 19.94 in May/June. Currently, the S&P 500 is higher by +3.25 points which is +0.08% at 7:05 a.m. EDT.

Earnings Out After The Close

  • Beats: CRM +0.22, GEF +0.21, CHWY +0.20, CRWD +0.18, OKTA +0.09, VEEV +0.08, PSTG +0.04, COO +0.01, FIVE +0.01 of note.
  • Flat: None of note.
  • Misses: VSCO (0.02) 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.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • HNR Acquisition Corp (HNRA) Announces Amended and Restated Membership Interest Purchase Agreement.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CGC: Filed Form S-1.. 15,206,046 Common Shares.
    • FLGC: Filed Form S-3/A Filed.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • IOBT: Filed Form S-3.. Up to 74,131,294 Shares of Common Stock Offered by the Selling Stockholders.
    • TSHA: Files for 166,663,354 shares of common stock by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • H: Filed Form S-3ASR .. Mixed Shelf.
    • PPSI: Filed Form S-3.. $150,000,000 Mixed Shelf.
    • SNGX: Filed Form S-3.. $50,000,000 Mixed Shelf.
    • TANH: Filed Form F-3.. $100,000,000 Mixed Shelf.
  • Debt/Credit Filing and Notes:
    • KULR: Announces Extension of Outstanding Note.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed:
    • NAAS: US$40 Million Private Placement of Convertible 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: OKTA +10%, UGI +7%, CRM +6%, DOMO +4% of note.
    • Trading Down:  FIVE -7%, PAHC -5%, VSCO -4% of note.
  • News Items After the Close:
    • Stocks making the biggest moves after hours: CRM, CRWD, FIVE, OKTA, VSCO, PSTG, COST (CNBC)
    • Salesforce (CRM) shares pop on earnings beat and optimistic forecast. (CNBC)
    • “Really amazing how little the analysts understand about Salesforce (CRM) and what it does for companies. You need to own a company as I once did to see the lift it gives you. It’s unimaginable how much you learn about enterprise software by using it. Same with the cloud.” (Cramer CNBC)
    • Costco (COST) e-commerce sales drop 2.5% in August. (MarketWatch)
    • Five Below (FIVE) lowers guidance to account for ‘shrink’ (MarketWatch)
    • Pure Storage’s (PSTG) stock gains 3% after revenue and earnings beat, solid guidance. (MarketWatch)
    • Pegasystems (PEGA) announces workforce reduction of approximately 4%.
    • Raytheon (RTX) awarded $276.5M U.S. Army modification contract.
    • TTM Tech Aerospace & Defense (TTMI) Sector Awarded contract valued at $86.7 million from the U.S. Army.
    • UGI as initiated a process to unlock shareholder value with strategic alternatives.
    • FDA issues three warning letters to infant formula manufacturers ByHeart, Mead Johnson and Perrigo Wisconsin (PRGO) but did not advise to discard or avoiding purchase.
  • Exchange/Listing/Company Reorg and Personnel News:
    • AIR Communities (AIRC) Announces CIO Transition.
    • Catalent (CTLT) to delay 10-K filing.
    • CSG Systems (CSGS) COO Ken Kennedy to depart.
    • Enviva (EVA) names Glenn Nunziata as Executive Vice President and Chief Financial Officer.
    • Clean Energy Special Situations (SWSS) gets Nasdaq notice for non-compliance.
    • Scotiabank (BNS) Announces Senior Leadership Appointments.
    • TTD Announces Departure of Chief Technology Officer.
    • VIAVI (VIAV) Announces CFO Resignation. (MarketWatch)
  • Buyback Announcements or News: 
    • KE Holdings Inc. (BEKE) Announces Upsizing and Extension of Share Repurchase Program. (see Dividends)
    • PHINIA (PHIN) initiates quarterly dividend and authorizes $150 million share repurchase program.
  • Stock Splits or News: 
    • Ampio Pharmaceuticals (AMPE) Announces Reverse Stock Split 1-for-20.
    • Spire Global (SPIR) Effects 1-For-8 Reverse Stock Split.
  • Dividends Announcements or News: 
    • Endeavor Group (EDR) declared a quarterly cash dividend in an aggregate amount of approximately $27 million.
    • Gaming and Leisure Properties (GLPI) increases quarterly dividend to $0.73/share from $0.72 per share.
    • KE Holdings Inc. (BEKE) Announces Special Cash Dividend of US 0.057 per share.
  • Insider Sales Of Note: None of note.

What’s Happening This MorningFutures value reflects the change with fair value.

S&P 500 +11, Dow Jones +173,  NASDAQ +26, and Russell 2000 +5.  (as of 7:59 a.m. EDT).  Asia is higher ex the Kospi while Europe is lower this morning ex the DAX. VIX Futures are at 15.27 from 15.88 yesterday.  Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher as well. US 10-year Treasury sees yields at 4.094% from 4.15% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $27,302 from $27,369 yesterday, higher by 0.21%.

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

  • Daily Positive Sectors: Technology, Communication Services, Industrials, Energy of note.
  • Daily Negative Sectors: Utilities of note.
  • One Month Winners: Energy, Consumer Cyclical 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, Industrials,  of note.
  • Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

Stocks rose for a fourth straight session, continuing a strong late-summer rally.  The S&P 500 increased 0.4%. The tech-heavy Nasdaq Composite gained 0.5% while the blue-chip Dow Jones Industrial Average rose 38 points, or 0.1%. Nine of the S&P 500’s 11 sectors finished in the green.  The broad index has gained 3.2% since Friday, the largest four-day advance since April.  U.S. GDP (second update) rose at a 2.1% annualized rate in April through June after adjusting for seasonal effects and inflation, the Commerce Department said Wednesday. That was a downward revision from the previous estimate of 2.4%.  (WSJ – edited by QPI)

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

  • Thursday After the Close: 

  • Friday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: MOMO +0.68, BEKE +0.67, GCO +0.38, CM +0.27, TITN +0.21, SIG +0.10, CAL +0.10, CIEN +0.08, OLLI +0.06, GMS +0.01, UBS of note.
  • Flat: CPB of note.
  • Misses: DG (0.34), FLWS (0.03), HRL (0.01) of note.
  • Still to Report: ASO of note.


  • Positive Guidance: OKTA, CRM, CRWD, PSTG, COO, CAL, SIG, OLLI of note.
  • Negative Guidance: FIVE, PAHC, MOMO, BEKE, HRL, FLWS, DG of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: OKTA +11%, ADCT +7%, UGI +7%, CRM +5%, IMAB +5%, MESO +5%, UBS +4% of note.
  • Gap Down: PAHC -6%, FIVE -6%, VSCO -5%, CHWY -4% of note.

Insider Action: TMDX sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers.

Rags & MagsRepeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

  • 5 Things to Know Before the Stock Market Opens. (CNBC)
  • 5 Things You Need to Know to Start Your Day. (Bloomberg)
  • Bloomberg Lead Story: UBS Flags Cost Cuts After $29 Billion Credit Suisse Windfall. (Bloomberg)
  • Bloomberg Most Shared Story: Fed Ramps Up Demands For Regional Banks. (Bloomberg
  • U.S. Stock Futures Waiver; UBS Boosts Europe Equities: Market Wrap. (Bloomberg)
  • Atlanta Fed President Raphael Bostic believes Fed policy is appropriately restrictive in a speech from South Africa. Favors being cautious and patient but not easing.
  • UBS beats on revenues and moves to 2008 high. (WSJ)
  • Dollar General (DG) drops again as sales fizzle. (Bloomberg)
  • Ciena (CIEN) beats on sales and profits, stock higher. (MarketWatch)
  • Campbell Soup (CPB) sees prices up 10%. (MarketWatch)
  • NPR Morning Addition:  What is going on this morning? (Podcast)
  • BBC Global News: Condemnation of Gabon Coup. (Podcast
  • NY Times The Daily:  A major overhaul of prescription drug prices. (Podcast)
  • Bloomberg: Odd Lots:   (Podcast)
  • Wealthion: Pain before the pivot. (Podcast)

Moving Average Update:

  • The score up to 97% from 91%.


  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing, 11:00 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 2:30 p.m. EDT


  • Challenger Job Cut 7:30 a.m. EDT
    • U.S. Challenger Job Cuts (Aug) Actual: 75.151k Vs 23.697k Previous.
  • Jobless Claims 8:30 a.m. EDT
  • July Personal Income is due out at 8:30 a.m. EDT and are expected to remain at 0.3%.
  • July PCE Core is due out at 8:30 a.m. EDT and is expected to remain at 0.2%.
  • August Chicago PMI is due out at 9:45 a.m. EDT and is expected to rise to 45 from 42.80.
  • EIA Natural Gas Report 10:30 a.m. EDT
  • Farm Prices 3:00 p.m. EDT

Federal Reserve / Treasury Speakers

  • Federal Reserve Boston President Susan M. Collins 9:00 a.m. EDT

M&A Activity and News:

  • Albany Intl (AIN) completed acquisition of Heimbach Group for €132 million in cash, and assumed net debt of approximately €22 million
  • Greif (GEF) acquires 51% of the ownership interest in ColePak.
  • Titan Machinery Inc. (TITN) Announces Strategic Acquisition of O’Connors.
  • Watts Water Tech. (WTS) acquires Bradley Corporation for $303 million.
  • Zevra Therapeutics (ZVRA) to acquire Acer Therapeutics (ACER).

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Stifel Transportation Conference 2023
    • Stifel Business Services Conference 2023
    • Morgan Stanley Asia Tech Conference 2023 (08/31/23-09/01/23)
    • Daniel Energy Partners Executive Series
      • Previously posted and ongoing conferences:
        • Deutsche Bank Technology Conference 2023 (08/30/23-08/31/23)
        • Mizuho Storage & AI Series
  • Top Shareholder Meetings: BORR, PMCB
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: VALN
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:

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: