Overnight Summary: The S&P 500 closed Thursday higher by 0.84% at 4505.10 from Wednesday higher by 0.12% at 4467.44. The high was hit at 4566 at 12:45 a.m. EDT while the low was hit at 4556.50 at 5:20 a.m. EDT. The range overnight was 10 points. The 10-day average of the overnight range is at 19.50 from 20 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 4.25 points which is 0.10% at 6:15 a.m. EDT.
UAW Strike: Lots of negative sentiment surrounding GM and F via Short Interest and Options (Put) activity.
Earnings Out After The Close:
- Beats: LEN +0.39, ADBE +0.11, CPRT +0.02 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:
- Instacart (CART) Sees IPO of 22 million Shares Pricing at $28-$30 a Share.
- Neumora Therapeutics (NMRA) prices 14.7 million share IPO at $17.00 per share, at the mid-point of the $16-18 expected range.
- RayzeBio (Nasdaq-RYZB) prices 17.3 million share IPO at $18.00 per share, at the high end of the $16-18 expected range.
- New SPACs launched/News:
- Nabors Energy Transition Corp. (NETC) Announces Extension of Deadline to Complete Business Combination.
- WinVest Acquisition Corp. (WINV) Announces Extension of Termination Date and Additional Contribution to Trust Account to Extend Termination Date
- Secondaries Priced:
- VTLE: Prices offering of 2.75 shares of common stock for gross proceeds of $148.5 million.
- Notes Priced of note:
- BLCO: Announces Pricing of Senior Secured Notes Offering.
- Common Stock filings/Notes:
- AER: Announces Completion of Secondary Share Offering, Including the Full Exercise of Underwriters’ Option to Purchase Additional Shares.
- BRSH: Filed Form F-1.. 1,582,566 Common Shares.
- GNL: Filed a prospectus supplement to the prospectus contained in its shelf registration statement on Form S-3 to register the resale of up to 35,339,062 shares of its common stock.
- VCNX: Filed Form S-1 Offering.
- Direct Offering:
- OKYO: Announces Closing of $4.0 Million Registered Direct Offering of Ordinary Shares.
- Selling Shareholders of note:
- CNM: Launches secondary offering of 18.0 million shares of common stock by selling shareholders; also announces that it expects to repurchase and redeem 3.12 million shares of common stock from selling shareholders and 1.87 million partnership interests of subsidiary Core & Main Holdings, LP.
- Private Placement of Public Entity (PIPE): None of note.
- Mixed Shelf Offerings:
- ALRS: Filed Form S-3.. $125,000,000 Mixed Shelf.
- DAWN: Filed Form S-3ASR .. Mixed Shelf Offering.
- HGBL: Filed Form S-3.. $150,000,000 Mixed Shelf.
- SF: Filed Form S-3ASR.. Mixed Shelf.
- Debt/Credit Filing and Notes:
- MUR: Announces Close of Non-Core Canadian Asset Sale, Advances Capital Allocation Framework With Redemption of 5.750% Senior Notes Due 2025.
- SWKH: Filed Form S-1.. Senior Notes due 2028.
- Tender Offer: None of note.
- Convertible Offering & Notes Filed:
- NI: To remarket up to 862,500 shares of its Series C Mandatory Convertible Preferred Stock.
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: MITK +4% of note.
- Trading Down: None of note.
- News Items After the Close:
- Homebuilder Lennar (LEN) beats estimates, says market remains ‘constructive’. (MarketWatch)
- T-Mobile (TMUS) in Talks to Make Big Broadband Bet With Move Into Fiber. (Bloomberg)
- Disney (DIS) to Cut Target for Disney+ Streaming Subscribers. (Bloomberg)
- DoorDash (DASH) Announces Move to Nasdaq.
- Exchange/Listing/Company Reorg and Personnel News:
- Atlassian (TEAM) Bolsters Executive Leadership Team.
- Catalent (CTLT) receives NYSE Notice regarding late form 10-K filing.
- Coherent (COHR) and CFO Mary Jane Raymond mutually agreed that she would conclude her services as the CFO as of September 29, 2023.
- Capstone Green Energy Receives (CGRN) Notifications from Nasdaq Related to Delayed Annual Report on Form 10-K and Minimum Bid Price Deficiency.
- Inseego (INSG) Appoints Steven Gatoff as Chief Financial Officer.
- Jupiter Wellness (JUPW) Changes its Name to Safety Shot and Ticker to “SHOT” in Alignment with New Business Focus.
- Kemper (KMPR) Announces Appointment of Interim Chief Financial Officer.
- Lands’ End (LE) appoints interim CFO Bernard McCracken as permanent CFO.
- Mineralys Therapeutics (MLYS) Expands its Board of Directors with Appointments of Glenn Sblendorio and Daphne Karydas.
- Primerica (PRI) Names Tracy Tan as Successor to Chief Financial Officer.
- Roblox (RBLX) appoints Jason Kilar to its board; recently served as CEO of Warner Media.
- Turkcell (TKC) appoints Bülent Aksu as CEO; elects Şenol Kazancı as Chairman.
- Buyback Announcements or News:
- First Advantage (FA) Extends Existing Share Repurchase Authorization Through 2024
- Miniso Group (MNSO) authorizes $200 million share repurchase program.
- Silvercorp (SVM) Announces Share Repurchase Program.
- Vasta (VSTA) Announces Share Repurchase Program.
- Stock Splits or News:
- Axcella (AXLA) Announces Reverse Stock Split Effective September 19, 2023.
- Flotek (FTK) Announces 1-for-6 Reverse Stock Split.
- Dividends Announcements or News:
- Host Hotels (HST) increases its quarterly dividend 20% to $0.18 per share.
- Trivago (TRVG) resolved to issue a one-time extraordinary dividend, totaling EUR 184,380,959 (or approximately EUR 0.53 per share).
- W. P. Carey (WPC) Increases Quarterly Dividend to $1.071 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 +2, Dow Jones +84, NASDAQ -18, and Russell 2000 +1. (as of 7:54 a.m. EDT). Asia and Europe are higher this morning ex the FTSE is it awaits the ECB Decision. VIX Futures are at 15.12 from 15.50 yesterday. Gold and Silver are higher while Copper is lower this morning for a third day in a row. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas higher as well. US 10-year Treasury sees yields at 4.324% from 4.258% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $26,633 from $26,350 yesterday, lower by -0.05%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Basic Materials, Real Estate, Energy, Utility, Industrials, Communication Services, Consumer Cyclical, Financial of note.
- Daily Negative Sectors: None of note.
- One Month Winners: Energy, Technology, and Communication Services of note.
- Three Month Winners: Energy, Communication Services, and Consumer Cyclical of note.
- Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
- Twelve Month Winners: Technology, Communication Services, and Energy of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.
Investors shrugged off rebounding inflation Thursday, scooping up stocks in a bet that a strong U.S. consumer and resilient labor market will keep the market humming. Thursday’s slate of economic news was heavy: Consumers spent more than expected in August, suppliers faced rising prices, and the European Central Bank lifted interest rates to the highest level in its history. Traders worried that stubborn inflation might spur the Federal Reserve to raise rates further were relieved to see fuel costs behind the latest pulse, since the central bank tends to ignore volatile gas prices. Stocks rose across the board. The S&P 500 added 0.8%, with all 11 of its sectors finishing in the green. The tech-heavy Nasdaq Composite also rose 0.8%, and the Dow industrials gained 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.
- Monday 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: ADBE of note.
- Negative Guidance: DAL, NUE of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: NVX +15%, IOVA +11%, MITK +6% of note.
- Gap Down: PLTK -5% of note.
Insider Action: PSEC 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: United Auto Workers Go On Strike After Contract Talks Break Down. (Bloomberg)
- Bloomberg Second Most Shared Story: Byron Allen Makes $10 billion Bid for ABC, Other Disney Networks. (Bloomberg)
- UAW strikes at three auto plants this morning as thousands on the picket line. (CNBC)
- Oil just hit highest level of the year and some analysts expect $100 before yearend. (CNBC)
- Biggest hedge funds have doubled footpath in U.S. stocks since 2014. (Reuters)
- NPR Morning Report Marketplace: How tech influenced a year of demonstrations in Iran. (Podcast)
- BBC Global News: Hunter Biden indicted on gun charges. (Podcast)
- NY Times The Daily: Republicans attempt to impeach President Biden. (Podcast)
- Bloomberg: Low Pay, Long Hours, Rude Customers, Retail Workers Have Had It. (Podcast)
- Interview with Maryann Bartels back in May. Nice calls! (Evans May Wealth)
Moving Average Update:
- Score rockets to 85%….gettin’ jiggy with it.
Geopolitical:
- President’s Public Schedule:
- The President To Deliver Remarks On UAW, Automakers Today.
- The President receives the Presidential Daily Briefing, 11:45 a.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan, 1:00 p.m. EDT
- The President departs the White House en route to New Castle, Delaware, 6:25 p.m. EDT
- The President arrives in New Castle, Delaware, 7:20 p.m. EDT
Economic:
- September Empire Manufacturing is due out at 8:30 a.m. EDT and is expected to come in at -10 from -19.
- Import and Export 8:30 a.m. EDT
- August Industrial Production is due out at 9:15 a.m. EDT and is expected to fall to 0.2% from 1.0%.
- September University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and is expected to fall to 69.4 from 69.50.
- Inflation Expectations 10:00 a.m. EDT
- Baker Hughes Rig Count 1:00 p.m. EDT
Federal Reserve / Treasury Speakers: None of note.
M&A Activity and News: None of note.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
-
- Previously posted and ongoing conferences:
- Wainwright Global Investment Conference
- Goldman Sachs Asia Pacific Conference (GSAC) 2023 (09/11/23-09/15/23)
- Morgan Stanley Laguna Conference (09/12/23-09/15/23)
- Citi Growth Conference: Incorporating EMEA Private Champions 2023 (09/14/23-09/15/23)
- Top Shareholder Meetings: AIRC, MMYT
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: HARP, SCHW
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Dreamforce (CRM) Conference
- 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:
