CAPIS Morning Note – 09/12/23: Apple To Host iPhone 15 Event. Key Points Are Enhanced Camera and Titanium Cover. Buy Rumor, Sell News?

Overnight Summary: The S&P 500 closed Monday higher by 0.67% at 4487.46 from Friday higher by 0.14% at 4457.96. Overnight ranges saw the high hit at 4541 at 4:10 p.m. EDT while the low was hit at 4525.50 at 5:35 a.m. EDT. The range overnight was 26 points. The 10-day average of the overnight range is…

Overnight Summary: The S&P 500 closed Monday higher by 0.67% at 4487.46 from Friday higher by 0.14% at 4457.96. Overnight ranges saw the high hit at 4541 at 4:10 p.m. EDT while the low was hit at 4525.50 at 5:35 a.m. EDT. The range overnight was 26 points. The 10-day average of the overnight range is at 20 from 18.40  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 lower by -8.25 points which is -0.18% at 7:20 a.m. EDT.

Earnings Out After The Close: 

  • Beats: CASY +1.16, ORCL +0.04 of note.
  • Flat: None of note.
  • Misses: AVO (0.07) 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:
    • First Light Acquisition Group (FLAG) Announces NYSE Approval for Listing of Business Combination with Calidi Biotherapeutics and Additional New Capital Commitments.
    • Welsbach Technology Metals Acquisition Corp. (WTMA) Announce Non-Binding Letter of Intent for a Business Combination.
  • Secondaries Priced:
    • AER: Prices secondary offering of 40.68 million shares of common stock by selling shareholders at $59.00 per share.
    • CBAY: Prices $225 million offering. 12.55 million shares + 584,000 pre-funded warrants at $17.13 per share.
    • OGS: Announces Pricing of a Public Offering of 1,200,000 Shares of Common Stock for gross proceeds of $88.8 million.
  • Notes Priced of note:
    • CNHI: Pricing of CNH Industrial Capital LLC $500 million notes.
    • USFD: Announces Pricing of Private Offering of $1.0 Billion of Senior Unsecured Notes.
    • WSC: Announces Pricing of Senior Secured Notes Offering $500 million due 2031.
  • Common Stock filings/Notes:
    • AER: Announces Secondary Share Offering and Share Repurchase.
    • BQ: securities purchase agreement.
    • BSFC: Announces Closing of $5 Million Public Offering.
    • CHRS: Increased the amount of shares that could be issued and sold pursuant to its ATM with TD Cowen in an amount equal to $28.75 million.
    • CRNX: Proposed Public Offering of Common Stock.. $250.0 million of shares. (JPM, MS, Leerink and Piper bookmanagers)
    • DRTS: Filed Form F-3.. 1,100,000 ordinary shares.
    • DTSS: Announces Proposed Underwritten Public Offering.
    • OGS: Announces Public Offering of 1,200,000 Shares of Common Stock. (BAC underwriter)
    • ROL: Announces Closing of Secondary Public Offering of Common Stock.
    • TNON: Announces Withdrawal of Public Offering of Common Stock.
  • Direct Offering:
    • EZGO: Announces the Termination of the Previously Proposed Registered Direct Offering.
    • MNTS: Announces Closing of $5.0 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules.
    • PALI: Closing of $2 Million Registered Direct Offering Priced At Market Under Nasdaq Rules.
  • Selling Shareholders of note:
    • BLBD: Selling shareholders to offer 2.5 million shares pursuant to a shelf registration statement.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • FNGR: Filed Form S-3.. $300,000,000 Mixed Shelf.
    • KNOP: Filed Form F-3.. will not exceed $250 million Mixed Shelf.
    • SVRE: Filed Form F-3.. $50,000,000 Mixed Shelf.
  • Debt/Credit Filing and Notes:
    • AMPH: To offer $300 million of convertible senior notes due 2029.
    • MAC: Closes Amended and Restated $650 Million Revolving Credit Facility.
    • TMUS: Agrees to Sell $2.0 Billion of Senior Notes.
  • 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: ADEA +6%, DRTS +5% of note.
    • Trading Down: SLRN -61%, SGHT -25%, ORCL -9%, AMPH -9%, BIOX -5%  of note.
  • News Items After the Close:
    • Oracle (ORCL) stock sinks as revenue outlook falls below Wall Street consensus. (MarketWatch)
    • Nvidia (NVDA) Muscles Into Cloud Services, Rankling AWS. (TheInformation)
    • MGM Resorts (MGM) Says It Shut Down Some Systems Following Cyberattack. (Bloomberg)
    • General Dynamics (GD) awarded $227 million U.S. Air Force contract.
    • Assets Under Management – MoM Reporting:
      • CNS $80 billion (down $2.3 billion)
      • AMK $102.2 billion
  • Exchange/Listing/Company Reorg and Personnel News:
    • Blue Apron (APRN) Announces Transfer of Stock Listing to Nasdaq.
    • Cano Health (CANO) Announces Plans for Regaining Compliance with NYSE Stock Price Criteria.
    • Connect Biopharma (CNTB) Announces Receipt of NASDAQ Deficiency Notice Regarding Minimum Bid Price Requirement.
    • Geron (GERN) Announces Appointment of Michelle Robertson as Executive Vice President, Chief Financial Officer and Treasurer, and the Retirement of Olivia Bloom, Geron’s Long-Time Chief Financial Officer.
    • Gevo (GEVO) Chief Commercial Officer Timothy Cesarek submitted his resignation effective September 22, 2023, as he has accepted an offer to serve as Chief Executive Officer of another company.
    • Hamilton Lane (HLNE) announced Erik Hirsch and Juan Delgado-Moreira have been appointed Co-Chief Executive Officers.
      Jazz Pharmaceuticals (JAZZ) announced that Renée Galá, Chief Financial Officer, has been promoted to President and Chief Operating Officer.
    • Kforce (KFRC) names David Kelly, Kforce’s current CFO, as its new COO; promotes Jeffrey Hackman to CFO.
    • LAW: Announces Leadership Transition.
    • Lion Electric (LEV) announced after hours that Nicolas Brunet has been appointed as President, Richard Coulombe will take over the role of Chief Financial Officer.
    • MFA Financial (MFA) appoints Michael Roper as Chief Financial Officer.
    • Macy’s, Inc. (M) Appoints Olivier Bron as CEO of Bloomingdale’s.
    • Orthofix (OFIX) announces that Catherine Burzik, Chair of the Orthofix Board of Directors, has been appointed Interim Chief Executive Officer; Geoffrey Gillespie, Orthofix Vice President, Corporate Controller, has been appointed Interim Chief Financial Officer; and Puja Leekha, Orthofix Senior Vice President, Chief Ethics and Compliance Officer, has been appointed Interim Chief Legal Officer. Also notes that it will not be participating at the Morgan Stanley conference on September 13, 2023 as previously announced and that the investor day planned for September 20, 2023 has been postponed.
    • Overstock (OSTK) Chief Marketing Officer Angela Hsu resigns. (MarketWatch)
    • Perrigo (PRGO) Announces Leadership Update.
    • Protalix BioTherapeutics (PLX) appointed Eliot Richard Forster, Ph.D. to serve on the Board of Directors as its Chairman.
    • Repligen (RGEN) names Jason Garland as CFO.
    • Shockwave Medical (SWAV) Announces Dan Puckett to Retire as CFO in 2024.
    • Trinity Biotech (TRIB) Receives Non-Compliance Notice Regarding Nasdaq Minimum Bid Price Requirement.
  • Buyback Announcements or News:
    • Axcelis Tech (ACLS) announces $200 million additional funding for share repurchase program.
    • Mission Produce (AVO) authorizes $20 million for repurchases.
    • Meta Materials (MMAT) and Lincoln Park Capital Fund Enter into a Common Stock Purchase Agreement for up to $50 Million.
    • Seadrill Limited (SDRL) Initiates Previously Announced Share Repurchase Program.
  • Stock Splits or News:
    • Trading Reverse Split: LFLY, AMPE, ASTI
    • Fifth Third (FITB) increases quarterly cash dividend 6% to $0.35 per share.
  • Dividends Announcements or News: None of note.
  • Insider Sales Of Note: None of note.

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

S&P 500 -15, Dow Jones -87,  NASDAQ -48, and Russell 2000 -5.  (as of 7:58 a.m. EDT).  Asia higher ex South Korea and Europe is lower ex the FTSE this morning. VIX Futures are at 14.67 from 14.64 yesterday.  Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher as well. US 10-year Treasury sees yields at 4.29% from 4.298% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $26,095 from $25,643 yesterday, higher by 4.19%.

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

  • Daily Positive Sectors: Consumer Cyclical, Basic Materials, Communication Services, Consumer Defensive, Healthcare, Financial of note.
  • Daily Negative Sectors: Energy of note.
  • One Month Winners: Energy, Technology, and Communication Services of note.
  • Three Month Winners: Energy, Communication Services, and Consumer Cyclical, Industrials of note.
  • Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
  • Twelve Month Winners: Technology, Communication Services, and Energy Industrials of note.
  • Year to Date Winners:  Communication Services, Technology, Consumer Cyclical of note.

Shares in Tesla (TSLA) pulled stock markets higher Monday, thanks in large part to hype around a supercomputer dubbed “Dojo” and an upgrade by Morgan Stanley discussed below. All three indexes opened in the green and stayed there through the closing bell, clawing back some of last week’s losses. The S&P 500 climbed 0.7%, while the tech-heavy Nasdaq Composite rose 1.1%. The Dow Jones Industrial Average gained 0.3%, or roughly 87 points. Tesla was Monday’s major winner, leading the S&P 500 with a 10% gain after Morgan Stanley upgraded its stock. The bank said a supercomputer that the automaker is developing to parse the vast amounts of visual data needed for autonomous driving could add $500 billion to the company’s enterprise value.   (WSJ – edited by QPI)

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

  • Tuesday After the Close: None of note.
  • Wednesday Before the Open: 

Earnings of Note This Morning:

  • Beats: CGNT +0.12 of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: CGNT of note.
  • Negative Guidance: SGHT of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: HUMA +11%, WRK +8%, GERN +5%, HUT +4%, FNGR +4%, NVX +4% of note.
  • Gap Down: SLRN -57%, SGHT -25%, ORCL -9%, LAW -8%, BIOX -5%, AER -5%, AMPH -4%, BLBD -4% of note.

Insider Action: GME 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)
  • Bloomberg Lead Story: Kim Jong Un Crosses Into Russia to Have Summit With Putin. (Bloomberg)
  • Bloomberg Most Shared Story:  The Mighty American Consumer is About to Hit a Wall, Investors Say. (Bloomberg)
  • Europe should brace for more volatility in natural gas markets and higher prices. (CNBC)
  • The biggest U.S.  trading partner is no longer China, it’s Mexico. (Bloomberg)
  • Apple iPhone 15 Event will tout an enhanced camera and titanium finish. (Bloomberg)
  • NPR Morning Report Marketplace: What does it take to fix Main Street? (Podcast)
  • BBC Global News:  Morocco urged to accept more aid as death toll grows after earthquake. (Podcast) 
  • NY Times The Daily:  A breaking point for the U.S.  Auto Industry. (Podcast)
  • Bloomberg:  Companies are pressing return to office. Workers want to stay remote. (Podcast)
  • Wealthion: Housing market set for a Cat 5, worse than the Great Financial Crisis. (Podcast)

Moving Average Update:

  • Score jumps to 71% from 34%.

Geopolitical: 

  • President’s Public Schedule:
    • The President arrives at Joint Base Andrews, 12:15 a.m. EDT
    • The President arrives at the White House, 12:35 a.m. EDT
    • The President receives the Presidential Daily Briefing, 10:00 a.m. EDT

Economic:

  • NFIB Small Business Index 6:00 a.m. EDT
    • US NFIB Small Business Optimism Aug: 91.3 (exp 91.5; prev 91.9)
  • Redbook Sales 8:55 a.m. EDT
  • API Crude Oil Data 4:30 p.m. EDT
  • The latest NYSE and NASDAQ Short Interest Data is out after the close for the period of August 11th through August 29th. During this period, the S&P 500 rose 0.75%.

Federal Reserve / Treasury Speakers: None of note.

M&A Activity and News:

  • Lucy Scientific Discovery Inc. (LSDI) Announces Acquisition of BlueSky Wellness Inc. in All-Stock Transaction.Lucy Scientific Discovery Inc. (LSDI) Announces Acquisition of BlueSky Wellness Inc. in All-Stock Transaction.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • BMO Capital Markets 24th Annual Media & Telecom Conference 2023 (09/12/23-09/13/23)
    • Baird Global Healthcare Conference (09/12/23-09/13/23)
    • Berenberg Food Ingredients & Chemicals Conference 2023 (09/12/23-09/13/23)
    • Goldman Sachs Annual Global Retailing Conference (09/12/23-09/13/23)
    • Jefferies Fitness & Wellness Summit
    • Kepler Cheuvreux Autumn Conference (09/12/23-09/14/23)
    • Morgan Stanley Laguna Conference (09/12/23-09/15/23)
    • NYSE Energy & Utilities Access Day
    • RBC Capital Markets Global Industrials Conference (09/12/23-09/13/23)
    • ROTH MKM Solar & Storage Symposium (09/12/23-09/13/23)
    • Truist Securities Internet Growth Summit
    • UBS Global Energy Transition Conference 2023  (09/12/23-09/13/23)
      • Previously posted and ongoing conferences:
        • Bank of America Global Real Estate Conference 2023 (09/11/23-09/14/23)
        • Bank of America Global A.I. Conference (09/11/23-09/12/23)
        • Barclays Global Financial Services Conference (09/11/23-09/13/23)
        • Goldman Sachs Asia Pacific Conference (GSAC) 2023 (09/11/23-09/15/23)
        • Goldman Sachs European Communacopia Conference 2023 (09/11/23-09/12/23)
        • Jefferies Israel Tech Trek 2023 (09/11/23-09/14/23)
        • Morgan Stanley 26th Annual Latin America Conference (London) 2023 (09/11/23-09/13/23)
        • Morgan Stanley Global Healthcare Conference (09/11/23-09/14/23)
        • Piper Sandler Growth Frontiers Conference (09/11/23-09/13/23)
        • Wainwright Global Investment Conference
  • Top Shareholder Meetings: NKE
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ASH, BAM, CMPR, DTIL, NRSN, PCG
  • Update: None of note.
  • R&D Day:
  • Company Event:
  • 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: