CAPIS Morning Note – 09/06/22: Stock Indexes Starting The Week On A Positive Note.

Overnight Summary: The S&P 500 closed Friday at 3926.24 (lower by -1.07%) from 3966.85 (higher by 0.30%) from Thursday. The overnight high of 3963.25 was hit at 6:30 a.m. EDT. The low was hit at 3933.75 at 8:05 a.m. EDT, a range of 30 points high to low which is below the recent range of…

Overnight Summary: The S&P 500 closed Friday at 3926.24 (lower by -1.07%) from 3966.85 (higher by 0.30%) from Thursday. The overnight high of 3963.25 was hit at 6:30 a.m. EDT. The low was hit at 3933.75 at 8:05 a.m. EDT, a range of 30 points high to low which is below the recent range of 45. At 7:10 a.m. EDT the current price was 3952.25 which is 0.71% and 27.25 points. Currently, at 8:00 a.m. EDT the S&P 500 is now up by 21 points.

Earnings Out After The Close:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Astrea Acquisition Corp. (ASAX) Receives NASDAQ Notification of Non-Compliance With Listing Rules.
    • Mudrick Capital Acquisition Corporation II (MUDS): SPAC announces it intends to dissolve and liquidate.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CUEN: Filed Form S-3.. 8,743,771 Shares of Common Stock.
    • FARO: Filed Form S-3.. 495,562 Shares.
    • HIVE: Establishes US$100 Million At-The-Market Equity Program.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • BBI: Filed Form S-1.. 1,750,000 Shares of Common Stock by selling shareholder.
    • BGRY: See Mixed Shelf
    • BOC: Files for 1,018,660 share common stock offering by selling shareholders.
    • CANO: Filed Form S-3..6,895,830 Shares of Class A Common Stock Offered by the Selling Stockholders.
    • ESTE: Filed Form S-3ASR .. 3,857,015 Shares of Class A common stock by selling shareholder.
    • FCFS: Filed Form S-3.. Up to 8,046,252 Shares of common stock by selling shareholders.
    • SMSI: Filed Form S-3.. 9,377,035 Shares of Common Stock by selling shareholder.
    • XXII: Form S-3.. Up to 26,032,708 Shares of Common Stock to be sold by the Selling Stockholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • ADUS: Filed Form S-3ASR .. Mixed Shelf Offering.
    • ARDS: Filed Form S-3.. $100 Million Mixed Shelf.
    • ASC: Filed Form F-3.. $500 Million Mixed Security Shelf.
    • BGRY: Filed Form S-3.. $200 Million Mixed Shelf — Up to 25,250,616 Shares of Class A common stock Issuable Upon Exercise of Warrant by selling shareholders.
    • DIS: Filed Form S-3ASR… Mixed Shelf Offering.
    • ICCM: Filed Form F-3.. $100,000,000 Mixed Shelf.
    • PLBY: Filed Form S-3.. $250 Million Mixed Security Shelf.
    • STEM: Filed Form S-3.. $600 Million Mixed Shelf
    • TGTX: Filed Form S-3ASR.. Mixed Security Shelf.
  • Debt Filing/Notes: 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: AVYA 33.7%, PDD 25.1%, BHC 23.8%, COMM 22.6%, ALLK 21.3%, NTNX 19.0%, OMER 18.6%, HOLI 18.2%, AGIO 17.9%, SQQQ 14.4%, PRTY 14.3%, MGNX 14.3%, BLUE 13.7%, DCPH 13.3%, DXC 12.9%, APLS 12.0%, RVNC 11.5%, CCJ 8.4%.
    • Trading Down:  OKTA -32.1%, GCO -31.2%, PLAB -31.1%, MDB -31.0%, CLAR -30.7%, SMTC -30.4%, EXPR -28.7%, DAKT -28.2%, LE -26.0%, AMBA -26.0%, FIXX -23.9%, EHTH -23.7%, AMTD -22.3%, FTCH -22.2%, HMY -21.0%, BBBY -20.1%, SIG -19.7%.
  • News Items After the Close:
    • China calls on the US to cancel weapons deal with Taiwan and warns of ‘counter-measures’ if it goes ahead.
    • SP Index Adds: AMD, CSGP, INVH, PVH, PENN, HPP, MCY, DT, NLY, AEO, MTX, OUT.
  • News Items Over the Weekend:
    • The Week in Business: Job Growth Is Solid but Slowing.  (NYT)
    • OPEC+ Agrees to Small Production Cut Amid Recession Fears. (WSJ)
    • 65 million people in China are currently on coronavirus lockdown. (AP) 
    • The U.S. and China are one step closer to avoiding stocks like Alibaba from delisting. What to watch next. (CNBC)
    • UK Conservatives Choose Liz Truss As Prime Minister.
    • Digital World (DWAC) Tumbles on Concerns Over Merger With Trump’s Truth Social. Seeks one year extension. (Reuters)
    • Barron’s:
      • Positive View: UPS, CWST, CMG, WING, SHAK, TGT
      • Cautious View: AI, OKTA, MU, WDC, SNOW, MDB, WMT, GPS, BBT, COLM, VFC, KSS, DECK, FIVE, RL.
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Boqii (BQ) Announces Senior Management Change.
    • Instil Bio (TIL) announced the appointment of Tim Moore to the role of Chief Operating Officer.
    • MiMedx Group (MDXG) announced that K. Todd Newton, a member of the MIMEDX Board of Directors, has been appointed interim Chief Executive Officer.
    • NBEV to delist Thursday.
    • NanoVibronix (NAOV) Announces Receipt of Nasdaq Listing Determination; Company to Request Hearing.
    • Ra Medical Systems (RMED) Receives NYSE American Notice.
    • World Wrestling (WWE) promotes Frank Riddick to President.
  • Buyback Announcements or News:
    • Yiren Digital (YRD) Announces Up to US$20 Million Share Repurchase Program.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: None of note.

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

​S&P 500 +23, Dow Jones +181, NASDAQ +70, and Russell 2000 +13 (as of 8:06 a.m. EDT). Europe higher and Asia higher ex Hong Kong.  VIX Futures are at 25.29 from 25.60 Friday morning and the VIX closed at 25.47 from 25.56 Friday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10-year Treasury sees yields at 3.246% from 3.256% Friday morning. Bitcoin is at $19,936.02 from $20,013 Friday morning and is higher by 1.01% this morning.

Sector Action – 09/02/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

  • Daily Positive Sectors: Energy, Basic Materials of note.
  • Daily Negative Sectors: Communication Services, Healthcare, Real Estate, Technology, Consumer Defensive, Industrial, Consumer Cyclical of note.
  • One Month Winners:  Consumer Cyclical, Industrials, Energy, Basic Materials, Financials, and Utilities of note.
  • Three Month Winners: Consumer Cyclical, Technology, and Industrials none 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.

Indexes pulled back after a positive morning session.  Indexes pulled back over 1% on lower than average volume prior to the holiday weekend.

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

  • Tuesday After the Close: GWRE, COUP of note.
  • Wednesday Before the Open: KFY, GIII, REVG of note.

Earnings of Note This Morning:

  • Beats: KC +1.53.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: none of note.
  • Negative Guidance: KC of note.

Erlanger Research Advance/Decline Chart: Updated through 09/01/22 close.

Gap Ups & Down In Early Pre-Market:

  • Gap Up: ISEE +42%, MNKD +9%, LPTX +6%, IDYA +5%.
  • Gap Down: DWAC -18%, BBBY -15%, ZYME -5%.

Insider Action: CNA, AAT sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers. 09/01/22 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 premarket: BBBY, NCLH, FDX  (CNBC)
  • Five Things To Know Before Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: California avoided blackouts over weekend but bigger tests remain. (Bloomberg)
  • Bloomberg Most Read Story: Russia warns of deep and prolonged economic damage. (Bloomberg)
  • Australian Reserve Bank raises interest rates by 50 basis points. (Release)
  • Germany delays phases out of nuclear plants. (Guardian)
  • Russia indicates that the Nord Stream Pipeline will be closed for an indefinite period of time. (WSJ)
  • Europe may need to ration natural gas and gasoline. (Bloomberg)
  • Bed Bath & Beyond (BBBY) CFO Gustavo Arnal committed suicide declares NYC Medical Examiner. (Reuters)
  • Amazon (AMZN) cuts plans for new warehouses due to slowing sales. (Bloomberg)
  • Illumina (ILMN) to challenge the EU denial of GRAIL merger. (Release)
  • EQT looks to purchase THQ Appalachia I LLC for $5.2 billion. (Bloomberg)

Moving Average Update:

  • No bounce.  Remain at a score of zero.   Updated 09/01/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Briefing, 9:00 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 12:00 p.m. EDT
    • The President holds a Cabinet meeting; The Vice President attends, 1:15 p.m. EDT

Economic: 

  • ISM Services Index  10:00 a.m. EDT
  • Investor Movement Index  12:30 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Brown-Forman (BF) to Purchase Gin Mare Brands.
  • Church & Dwight (CHD) has signed a definitive agreement to acquire the Hero Mighty Patch brand and other acne treatment products for $630 million.
  • EQT: See Rags and Mags.
  • Oil Royalty and Mineral Companies Sitio (STR) and Brigham (MNRL) to Merge in $4 Billion Tie-Up. (WSJ)
  • Signify Health (SGFY) to be acquired by CVS Health (CVS) for $30.50 per share.
  • UBS, WEALTHFRONT mutually agree to terminate merger pact.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Barclays CEO Energy-Power Conference 2022 (09/06/22-09/08/22)
    • Barclays Global Consumer Staples Conference 2022 (09/06/22-09/08/22)
    • Carnegie Small & Mid Cap Seminar 2022 (09/06/22-09/08/22)
    • Citi BioPharma Conference
    • Deutsche Bank 12th Annual Aircraft Finance & Leasing Conference and Airline One on One Day 2022 (09/06/22-09/08/22)
    • Goldman Sachs EMEA Credit & Leveraged Finance Conference 2022
    • Spark Capital Investor Conference
    • UBS Business Services, Leisure and Transport Conference 2022 (09/06/22-09/08/22)
    • Wells Fargo Healthcare Conference 2022 (09/06/22-09/09/22)
      •  Previously posted and ongoing conferences:
        • Credit Suisse 23rd Asian Technology Conference 2022 (09/05/22-09/08/22)
  • Company Meetings: DWAC.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: HIPO, NILE
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • JP Morgan Biotech Conference Call Series with HilleVax (HLVX).
    • BitNile Holdings (NILE) Special Dividend Conference Call 2022.
    • Immuron (IMRN) CEO, Steven Lydeamore, Investor Webinar
  • Industry Meetings:
    • None of note.
      • Previously posted and ongoing conferences:
        • European Respiratory Society (ERS) International Congress 2022 (09/04/22-09/06/22)
        • IWA World Water Congress & Exhibition 2022 (09/05/22-09/15/22)

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: