Overnight Summary: The S&P 500 closed Thursday lower by -0.16% at 4507.66 from Wednesday higher by 0.38% up to 4514.87. It was the first losing day in the last five days on the S&P 500 for August. Overnight ranges saw the high hit at 4532.75 at 6:50 a.m. EDT while the low was hit at 4513.50 at 2:20 a.m. EDT. The range overnight was 20 points. The 10-day average of the overnight range is at 22.40 from 22.30 down from a peak of 31.50 on 8/15. The average for May-August average was 21.10 from 18.81 in May through July and the August average was 26.21. Currently, the S&P 500 is higher by +15.75 points which is +0.35% at 7:20 a.m. EDT.
Earnings Out After The Close:
- Beats: DELL +0.60, MDB +0.47, LULU +0.14, ESTC +0.14, VMW +0.12, AVGO +0.11, PD +0.08, NTNX +0.08, S +0.06, OXM +0.05, HCP +0.05 of note.
- Flat: None of note.
- Misses: None 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:
- Inspire Veterinary Partners, Inc. (IVP) Announces Closing of $6.4 Million Initial Public Offering.
- New SPACs launched/News:
- Ross Acquisition Corp II (ROSS) Announces Meeting for Shareholders to Extend Date for Business Combination.
- Vision Sensing Acquisition Corp. (VSAC) Announces Intention to Extend Period to Consummate Initial Business Combination to October 3, 2023
- Secondaries Priced:
- CPK: Files common stock offering.
- GWAV: Filed Form S-3.. 124,238,707 Shares common stock.
- Notes Priced of note: None of note.
- Common Stock filings/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- ADTX: $10.0 Million Private Placement Priced At-The-Market under Nasdaq Rules.
- Mixed Shelf Offerings:
- MLTX: Files $1.0 billion 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 Holiday:
- After Hours:
- Trading Up: EOSE +52%, NTNX +15%, ESTC +9%, DELL +8%, MDB +5%, of note.
- Trading Down: PD -5%, AVGO -4% of note.
- News Items After the Close:
- Stocks making the biggest moves after hours: DELL, LULU, MDB, AVGO, VMW (CNBC)
- Most earnings positive after the close with the exception of Oxford Industries (OXM) that guided lower.
- PagerDuty (PD) beats on earnings and revenues. (Zacks)
- Dell Inc. (DELL) beats on earnings and revenues. (Bloomberg)
- lululemon athletica (LULU) beats on earnings and revenues. Raises FY24 EPS and revenue guidance. (Bloomberg)
- VMware (VMW) beats on earnings by $0.12 but misses on revenues. (Zacks)
- MongoDB (MDB) beats on earnings and revenues and guides FY24 EPS above consensus as well as revenues. (PR Newswire)
- Broadcom (AVGO) beats on earnings by $0.11 and meets revenue estimates. (Bloomberg)
- Eos Energy (EOSE) to expand GWh storage capacity in $500 million deal to 8 GWh by 2026
- SEC bitter over losing court case to Coinbase (COIN) delays decision to approve Bitcoin ETF. (Bloomberg)
- Oceaneering Intl (OII) wins two international contracts worth over $100 million.
- Leidos (LDOS) awarded $7.9 billion Army contract.
- BAE Systems (BAESY) awarded $33 million Army contract.
- Charter (CHTR) to hold conference call at 8:30 a.m. EDT, September 1st to discuss Walt Disney (DIS) removing their content from Spectrum on Thursday night. (PR Newswire)
- Exchange/Listing/Company Reorg and Personnel News:
- Denison Mines (DNN) CFO on temporary medical leave of absence, interim CFO appointed
- Methode Electronics (MEI) President and CEO Donald Duda will retire.
- Olin (OLN) Announces CEO Transition Plan.
- Ross Stores (ROST) Chairman George Orban to step down.
- Millicom International Cellular (TIGO) appoints CEO Mauricio Ramos as Interim Chairman.
- Walgreen’s (WBA) CEO steps down after two years as the nightmare continues. (CNBC)
- Buyback Announcements or News:
- Nutanix (NTNX) to repurchase up to $350 million of its Class A Common Stock.
- Restaurant Brands (QSR) to repurchase up to $1 billion through September, 2025.
- Stock Splits or News:
- Distribution Solutions Group’s (DSGR) Two-for-One Stock Split Becomes Effective on August 31, 2023.
- HLGN trading reverse split price.
- SONN trading reverse split price.
- Dividends Announcements or News:
- A-Mark Precious Metals (AMRK) declares a special dividend of $1.00 per share.
- Insider Sales Of Note: None of note.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +16, Dow Jones +144, NASDAQ +35 and Russell 2000 +7. (as of 7:56 a.m. EDT). Asia is higher ex the ASX 200 while Europe is higher this morning ex the DAX. VIX Futures are at 14.75 from 15.27 yesterday. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil higher with Natural Gas lower. US 10-year Treasury sees yields at 4.106% from 4.094% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $25,976 from $27,302 yesterday, lower by -0.83%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Consumer Cyclical of note.
- Daily Negative Sectors: Healthcare, Utilities, Consumer Defensive, Real Estate, Industrials, Basic Materials, Financial, Energy 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.
A late-August rally lost some sizzle Thursday, sapping major stock indexes of momentum as they enter a month that is traditionally their weakest of the year. Investors still have confidence in the U.S. economy, as well as the potential for artificial intelligence to boost productivity gains, but stock markets fell for much of August before turning upward. The S&P 500 and Nasdaq Composite snapped five-month winning streaks, while the Dow Jones Industrial Average posted its first monthly loss since May. August’s declines were broad, though shallow. They spanned big banks, carmakers and tech giants. Energy stocks were the only slice of the S&P 500 to post monthly gains.Despite a similarly broad rebound over the previous four trading sessions, major indexes were mixed Thursday. The Dow opened in the green but gave up those gains in the afternoon en route to a 0.5% decline of about 168 points. The S&P 500 dipped 0.2% lower, while the tech-heavy Nasdaq Composite climbed 0.1%. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
- Tuesday Before the Open: None of note.
Earnings of Note This Morning:
- Beats: None of note.
- Flat: None of note.
- Misses: None of note.
- Still to Report: None of note.
Guidance:
- Positive Guidance: ASO, MDB, ESTC, S, HCP, LULU, NTNX, IOT, LOVE, DELL of note.
- Negative Guidance: PD, OXM of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: EOSE +52%, ME +19%, NTNX +19%, ESTC +17%, DELL +9%, MDB +6%, S +6%, SPRY +5%, NX +4% of note.
- Gap Down: PD -11%, MLTX -10%, OXM -5%, AVGO -4%, HCP -4% of note.
Insider Action: SPRY sees Insider buying with dumb short selling. No stock 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.
- 5 Things to Know Before the Stock Market Opens. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Stocks Making the Biggest Per-Market Moves . (CNBC)
- Bloomberg Lead Story: US Hiring to Slow Again Due to Writer’s Strike and Yellow Bankruptcy. (Bloomberg)
- Bloomberg Most Shared Story: Magic Mushroom Can Ease Major Depression In A Single Dose. (Bloomberg)
- Stocks edge higher with key US job data on radar: Market Wrap. (Bloomberg)
- White House wants a continuing resolution to avoid shutdown at the end of September. GOP not so much. (The Washington Post)
- Bank of America believes stocks are at risk of a hard landing. Really? Worth the read as a contrarian viewpoint to mainstream. (Bloomberg)
- UAW filed unfair labor practices against General Motors (GM) and Stellantis (STLA). (CNBC)
- NPR Morning Addition: For now Marketplace has disappeared from the NPR site so we are replacing with Morning Addition. (Podcast)
- BBC Global News: South African President calls for improvement to inner city living conditions. (Podcast)
- NY Times The Daily: Solve water problem by taking salt out of ocean water. (Podcast)
- Bloomberg: Odd Lots: Hyun Song Shin on the new financial stability risks. (Podcast)
- Wealthion: Market overvalued by 40 to 50%? With Stephanie Pomboy.(Podcast)
Moving Average Update:
- The score inches down to 94% from 97%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 10:00 a.m. EDT
- The President delivers remarks on the August jobs report, 11:15 a.m. EDT
Economic:
- August Nonfarm Payrolls is due out at 8:30 a.m. EDT and is expected to fall to 175,000 from 187,000. The unemployment rate is expected to rise to 3.60% from 3.50%.
- PMI Mfg Final 9:45 a.m. EDT
- July Construction Spending is due out at 10:00 a.m. EDT and is expected to rise to 0.6% from 0.5%.
- August ISM Manufacturing Index is due out at 10:00 a.m. EDT and is expected to rise to 46.70% from 46.40%.
- Baker Hughes Rig Count 1:00 p.m. EDT
Federal Reserve / Treasury Speakers:
- Federal Reserve Atlanta President Raphael Bostic 6:00 a.m. EDT
- Federal Reserve Cleveland President Loretta Mester 9:45 a.m. EDT
M&A Activity and News: None of note.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
-
- Previously posted and ongoing conferences:
- Top Shareholder Meetings: CENN, CTRM
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: None of note.
- 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:
