CAPIS Morning Note – 09/13/22: Markets Higher But On Watch For Latest CPI Report Today and PPI Tomorrow.

Overnight Summary: The S&P 500 closed Monday at 4110.41 (higher by 1.06%) from Friday at 4067.38 (higher by 1.53%). The overnight high of 4158 was hit at 7:00 a.m. EDT. The low was hit at 4128 at 10:15 p.m. EDT, a range of 30 points high to low which is below the recent range of 45….

Overnight Summary: The S&P 500 closed Monday at 4110.41 (higher by 1.06%) from Friday at 4067.38 (higher by 1.53%). The overnight high of 4158 was hit at 7:00 a.m. EDT. The low was hit at 4128 at 10:15 p.m. EDT, a range of 30 points high to low which is below the recent range of 45. At 6:45 a.m. EDT the current price was 4158 which is 0.68% and 28 points. Currently, at 7:55 a.m. EDT the S&P 500 is now up +25 .

Earnings Out After The Close:

  • Beats: BRZE +0.04.
  • Flat: None of note.
  • Misses: ORCL (0.04).

Capital Raises:

  • IPOs Priced or News:
    • Wearable Devices Ltd. (WLDS ) Announces Pricing of $16 Million Initial Public Offering.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • BNTC: Announces Pricing of $18 Million Underwritten Public Offering.
    • CDAK: Announces Pricing of $20 Million Public Offering of Common Stock and Warrants.
    • DRVN: Announces Pricing of 7 million share Secondary Offering.
    • RLAY: 11.32 million shares offering priced @$26.50 per share.
    • RVNC: 8 million shares offering priced @$25 per share.
  • Notes Priced of note:
    • ALNY: announces Pricing of Offering of $900 Million Convertible Senior Notes.
    • CNX: Pricing of $500 Million of Senior Notes.
  • Common Stock filings/Notes:
    • CDAK: Proposed Public Offering of Common Stock and Warrants — Jefferies Bookmanager.
    • CEQP: Secondary Offering of Common Units and Concurrent Common Unit Repurchase.. 11,400,000 common units.. Citi bookmanager.
    • DRVN: Filed Form S-3ASR.. Common Stock Offering.
    • FWRG: Filed Form S-1.. 4,500,000 Shares Common Stock.
    • HSCS: Filed Form S-1.. 1,544,114 Shares of Common Stock Up to 1,683,470 Shares of Common Stock Issuable Upon Exercise of the Bridge Warrants.
    • RVNC: Proposed Public Offering of Common Stock.. $150 Million .. GS, Cowen and Guggenheim bookmanagers.
    • SNTI: Filed Form S-1.. Up to 8,727,049 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • BGXX: nnounces Closing of $10.0 Million Private Placement.
  • Mixed Shelf Offerings:
    • ERII: Filed Form S-3ASR Mixed Shelf Offering.
  • Debt Filing/Notes: None of note.
  • Convertible Offering & Notes Filed:
    • C: Announces $1.75 Billion Redemption of 2.700% Notes Due 2022 and $400 Million Redemption of Floating Rate Notes Due 2022.
    • SRPT: Proposed Offering of $1.0 Billion of Convertible Senior Notes Due 2027.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close:

  • After Hours: 
    • Trading Up: PL +9%, CPRX +9%, RCEL +5%.
    • Trading Down: RENT -25%, CRDF -13%, FWRG -7%, RVNC -7%, BRZE -5%, CEQP -4%.
  • News Since The Close:
    • Twitter (TWTR) Shareholders Are Poised to Approve Elon Musk Takeover Deal. (WSJ)
    • VMware (VMW) settles with SEC regarding previously disclosed investigation related to backlog disclosures.
    • Amtrak to begin cancelling some long-distance trains Tuesday. (UNP, CP, CNI, CSX, NSC) (YahooFinance)
    • Peloton (PTON) co-founders John Foley and Hisao Kushi are leaving the company in a broad executive shakeup. (CNBC)
    • Assets Under Management (AUM):
      • BEN $1,387.6 bil vs $1,429.7 bil, CNS $89.8 bil (down by $4.2 bil), VCTR $159.1 bil, AB $667 bil vs. $689 bil, IVZ $1,416.0 billion – down 2.3% mom, VRTS $157.8 bil down 3.1% mom., APAM $132.7 bil, LAZ $217.0 bln vs $225.1 bln prior month
  • Exchange/Listing/Company Reorg and Personnel News:
    • Better Choice Company (BTTR) Announces Management And Board Changes.
    • Catalyst Pharmaceuticals (CPRX) to join S&P SmallCap 600.
    • ESCO Technologies (ESE) Announces Retirement of Chief Executive Vic Richey and Appointment of Bryan Sayler as New CEO.
    • Gorilla Technologies (GRRR) Announces CEO Transition.
    • KARB: Carbon Strategy ETF Launches on the NYSE with Ticker KARB to Provide Exposure to Global Compliance Carbon Markets.
    • Lumen (LUMN) Announces CEO Transition.
    • Nine Energy Service, Inc. (NINE) Regains Compliance with NYSE Continued Listing Standards.
    • PTON: Co-founders John Foley and Hisao Kushi step down.  Karen Boone elected Chairperson of the Board. (See News Since the Close)
    • WalkMe (WKME) Announces Departure of Chief Financial Officer Andrew Casey.
  • Buyback Announcements or News:
    • Alpha (AMR) Provides Update Share Repurchase Program.
    • BAC: CEO expects to step up share buybacks but no timeline given.
    • Cheniere Energy (LNG) announces increases share repurchase authorization by $4 billion.
    • UBS expects share repurchases to exceed the $5 billion goal for the year 2022. UBS has bought back $4.1 billion of shares.
    • VIAV Announces $300 Million Common Stock Repurchase Program.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News:
    • UBS – 10% increase in dividend to $0.55 per share.

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

S&P 500 +32, Dow Jones+233, NASDAQ +106, and Russell 2000 +17. (as of 8:10 a.m. EDT). Europe higher and Asia higher ex Hong Kong.  VIX Futures are at 23.65 from 23.44 yesterday morning and the VIX closed at 23.87 from 22.79 yesterday. Gold lower with Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher with Natural Gas higher as well. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10-year Treasury sees yields at 3.314% from 3.298%  yesterday morning. Bitcoin is at $22,585 from $22,154 yesterday morning and is higher by 0.74% this morning.

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

  • Daily Positive Sectors: Consumer Cyclical, Technology, Energy, Utilities, Financial, Real Estate of note.
  • Daily Negative Sectors: none of note.
  • One Month Winners:  Energy, Utilities of note.
  • Three Month Winners:  Utilities, Consumer Cyclical, Consumer Defensive of note.
  • Six Month Winners: Energy, Utilities and Consumer Defensive of note.
  • Twelve Month Winners: Energy and Utilities of note.
  • Year to Date Winners: Energy and Utilities of note.

Markets had a strong day from the initial start continuing its drive higher.  SPX gapped up to the Value Lines resistance and tested it mid-day before ending higher.  SLV was up 4.97% and UNG up 4.02%..

Click here for a video explanation of Erlanger Value Lines.

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

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

Earnings of Note This Morning:

  • Beats: CNM +0.18.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: PL of note.
  • Negative Guidance: RENT, ORCL, EMN of note.

Erlanger Research Advance/Decline Chart: 

 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: AKRO +53%, PL +12%, RCEL +7%, CPRX +7%.
  • Gap Down: RENT -23%, CRDF -17%, RVNC -8%, DRVN -8%, BRZE -6%, RLAY -4%.

Insider Action: MEDP, RAMP, APG sees Insider buying with dumb short selling.   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  ORCL RENT OTLY WOLF DOW TWLO TWTR ADBE. (CNBC)
  • Five Things To Know Before Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Bank of America shows Investors Leave Equities in fear of a recession. (Bloomberg)
  • Bloomberg Most Read Story: Blue Origin suffers failure seconds into launch, crew was unmaned. (Bloomberg)
  • Chinese President Xi returns to world stage with Russian President Putin. (Bloomberg)
  • Russian defeats in Ukraine worry strategist about what is next. (CNBC)
  • British unemployment rate hits lowest level in almost 50 years. (Reuters)
  • European Union officials unlikely to agree to limit the price of Russian gas. (The Guardian)
  • Amtrak suspends some service ahead of a potential strike. (Reuters)
  • Nvidia (NVDA) and TSMC (TSM) developing silicon photonics solutions. (Digitimes)
  • Uber (UBER) to pay $100 million fine in New Jersey. (NYT)
  • Workplace Safety Head to leave Amazon (AMZN). (CNBC)
  • Robinhood Snacks: Goldman Sachs (GS) Apple (AAPL) card has high rate loss on credit card loans. Starbucks (SBUX) launches NFT powered rewards.

Moving Average Update:

  • Green Wave surging.  Score jumps from 57% to 68%.

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. 1:35 p.m. EDT
    • The President hosts an event celebrating the historic achievement of the passage of H.R. 5376, the Inflation Reduction Act of 2022; The President and The Vice President deliver remarks; The First Lady and The Second Gentleman attend, 3:00 p.m. EDT

Economic: 

  • August NFIB Small Business Optimism Index is due out at 6:00 a.m. EDT and came in at 89.9 in July.
  • August CPI is due out at 8:30 a.m. EDT and is expected to drop to -0.1% from 0.0% in July.
  • Redbook Sales 8:55 a.m. EDT
  • There will be a 30 Year Treasury Auction at 1:00 p.m. EDT.
  • The August Treasury Budget is due out at 2:00 p.m. EDT and came in last month at -$211.1 billion.
  • API Crude Oil Data 4:20 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Brown & Brown (BRO) announces the asset acquisition of Smithwick & Mariners Insurance, MidCoast Insurance and Chapman & Chapman Insurance.
  • Ingersoll-Rand (IR) acquires Pedro Gil and closes on acquisition of Westwood Technical.
  • KKR called off takover talks with Ramsay Health Care.
  • Lantronix (LTRX) announces acquisition of Uplogix for approximately $8 million.
  • Parker-Hannifin (PH) completes acquisition of Meggitt PLC (MEGGF).

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Global Real Estate Conference (09/13/22-09/14/22)
    • Baird Global Healthcare Conference (09/13/22-09/14/22)
    • Bernsteins 2nd Annual Reimagining the Future of ESG Conference 2022
    • Benzinga Cannabis Capital Conference 2022 (09/13/22-09/14/22)
    • BMO Capital Markets 23rd Annual Media & Telecom Conference 2022
    • Credit Suisse 35th Annual Specialties & Basics Conference 2022 (09/13/22-09/14/22)
    • HSBC Global Emerging Markets Forum 2022
    • Jefferies Home Retail Summit 2022
    • RBC Capital Markets Global Industrials Conference (09/13/22-09/14/22)
      • Previously posted and ongoing conferences:
        •  Barclays Global Financial Services Conference (09/12/22-09/14/22)
        • Goldman Sachs Communacopia + Technology Conference
        • H.C. Wainwright Global Investment Conference (09/12/22-09/14/22)
        • JP Morgan Mexico Opportunities Conference
        • JP Morgan Finovate Fall Conference
        • Morgan Stanley 25th Annual Latin America Conference 2022 (09/12/22-09/16/22)
        • Morgan Stanley Annual Global Healthcare Conference (09/12/22-09/14/22)
        • Piper Sandler & Co. Growth Frontiers Conference (09/12/22-09/14/22)
        • Truist Securities Internet Growth Summit (09/12/22-09/16/22)
        • UBS Global Energy Transition Conference 2022 (09/12/22-09/15/22)
  • Company Meetings:
    • Twitter (TWTR) shareholder meeting to consider Elon Musk offer
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AKRO, CMPR, CTVA, FNKO, NVTS, RRX, SBUX, SSNC, TPTW, WDAY, WK
  • Update:
    • Atea Pharmaceuticals (AVIR) Bemnifosbuvir Program Update Call.
  • R&D Day: None of note.
  • Company Event:
    • Fortinet (FTNT) Championship Security Summit and Tech Expo Day One 2022.
    • TriNet (TNET) PeopleForce 2022.
    • Silicon Labs (SLAB) Works With Conference 2022 (09/13/22-09/15/22)
    • HR Technology (HRT) Conference & Exposition 2022. (09/13/22-09/16/22)
    • LiveOne (LVO) Webcast Featuring Senior Management of LiveOne Subsidiaries 2022.
  • Industry Meetings:
    • The Battery Show and EV Technology Expo 2022 (09/13/22-09/15/22)
    • 3rd Annual Gene Therapy for Ophthalmic Disorders 2022 (09/13/22-09/16/22)
    • Precious Metals Summit Beaver Creek 2022 (09/13/22-09/16/22)
      • Previously posted and ongoing conferences:
        • International Manufacturing and Technology Show (IMTS) 2022 (09/12/22-09/17/22)
        • North American Supply Chain Executive Summit (NASCES) 2022 (09/12/22-09/14/22)
        • Military Health System Research Symposium (MHSRS) 2022  (09/12/22-09/15/22)
        • American Academy of Otolaryngology Head and Neck Surgery (AAO-HNSF) Annual Meeting and OTO Experience 2022 (09/10/22-09/14/22)
        • International Congress of The Transplantation Society (TTS) 2022 (09/10/22-09/14/22)
        • SALT New York 2022 (09/11/22-09/14/22)
        • European Society for Medical Oncology ESMO Meeting 2022 (09/08/22-09/13/22)
        • 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: