CAPIS Morning Note – 09/16/22: Stocks Limping Into The Weekend, FDX Down -20%

Overnight Summary: The S&P 500 closed Thursday at 3901.35 (lower by -1.13%) from 3 3946.01 (higher by 0.34%). The overnight high of 3928 was hit at 4:10 p.m. EDT. The low was hit at 3878 at 4:50 a.m. EDT, a range of 50 points high to low which is back above the recent range of 45….

Overnight Summary: The S&P 500 closed Thursday at 3901.35 (lower by -1.13%) from 3 3946.01 (higher by 0.34%). The overnight high of 3928 was hit at 4:10 p.m. EDT. The low was hit at 3878 at 4:50 a.m. EDT, a range of 50 points high to low which is back above the recent range of 45. At 7:10 a.m. EDT the current price was 3891 which is -28 points. Currently, at 7:55 a.m. EDT the S&P 500 is now -28.

FedEx (FDX) Chart:

  • Type 4 situation for FedEx – Technically weak with low levels of short interest.

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:
    • Intuitive Machines, a Leading Space Exploration Company, to List on Nasdaq Through Merger with Inflection Point Acquisition Corp. (IPAX).
    • Amprius Technologies (AMPX): Recently closed SPAC jumps +140% in premarket trading.
  • Secondaries Priced:
    • CCNE: Announces Pricing of Public Offering of Common Stock.. 3,702,127 shares of its common stock at a public offering price of $23.50 per share.
    • KNW: Prices offering of 3.6 million shares of common stock at $2.00 per share.
  • Notes Priced of note:
    • MDT: pricing of €3.5 billion of senior notes.
    • RGA: Prices $700 million of 7.125% fixed-rate reset subordinated debentures due 2052.
  • Common Stock filings/Notes:
    • CCNE: Proposed Public Offering of $87 Million of its Common Stock.
    • CMRA: Form 424B3 Filed prospectus on 5 Million offering.
    • RMED: Filed Form S-3.. 22,202,503 Shares of Common Stock.
    • RVNC: Closing of Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares.
    • XGN: Filed Form 424B5.. $50,000,000 Common Stock.
    • VIVK: Filed Form S-1.. 3,009,552 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • ALHC: Secondary Offering.. 9 Million shares by selling stockholders. JPM Underwriter
    • BOWL: Files for 216,956,397 share common stock offering by selling shareholders.
    • CNM: Secondary Offering .. 10 Million shares Class A common by selling shareholders. GS underwriter
  • Private Placement of Public Entity (PIPE):
    • CELU: Files for $40 million common stock offering directly to YA II PN or YA, in connection with the Pre-Paid Advance Agreement.
  • Mixed Shelf Offerings:
    • ALHC: Filed Form S-3ASR — Mixed Shelf Offering
    • KRC: 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:

  • After Hours: 
    • Trading Up: BOWL +8%.
    • Trading Down: FDX -15%, UPS -5%.
  • News Since The Close:
    • FedEx (FDX) cutting costs, withdraws 2023 guidance after first-quarter shipments disappoint. (CNBC)
    • Roblox (RBLX) stock slide continues after hours as August metrics come out. (MarketWatch)
    • Tech ‘capitulation’: BofA top banker Rick Sherlund predicts breakout in mergers due to troubled economy. (CNBC)
    • Republic First (FRBK)shares rise after bank discloses inbound deal interest and sets up strategic review committee. (MarketWatch)
    • Twitter (TWTR) to start public test of editing tweets on September 21. (Verge)
    • Uber (UBER) suffers computer system breach, alerts authorities. (WashingtonPost)
    • U.S. Dollar Only Place To Hide: (Citi)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Devon Energy (DVN) Announces Executive Chairman Retirement and Succession Plan.
    • HF Sinclair (DINO) appoints Atanas H. Atanasov as CFO.
    • FirstEnergy (FE) CEO Steven Strah to retire; Board Chair John Somerhalder II named interim CEO.
    • Nasdaq-Listed Inter&Co (INTR) Rebrands its Remittances Business in US.
    • Jacobs (J) Announces Leadership Succession Plan.
    • Maxar Technologies (MAXR) Chief Financial Officer Biggs Porter to Retire in 2023.
    • Methanex (MEOH) Announces New President & CEO. (see buyback below)
    • VNET Group (VNET) CEO resigns for personal reasons.
  • Buyback Announcements or News:
    • Gogo (GOGO) Repurchases 1.5 Million Shares of Common Stock from BlackRock.
    • Kforce (KFRC) enters into a corporate stock repurchase plan.
    • TI (TXN) to return more cash to owners with 8% dividend increase to $1.24 per share and authorization for additional $15 billion in share repurchases.
    • Methanex (MEOH) Announces Board Approval of a 5% Share Repurchase Program.
  • Stock Splits or News:
  • Dividends Announcements or News:
    • BitNile Holdings (NILE) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
    • TI (TXN) (see above in Buyback)
    • Trinity Capital (TRIN) declares Q3 cash dividend of $0.60 per share.
    • W.P. Carey (WPC) increases its quarterly dividend to $1.061 per share.
    • Xenia Hotels (XHR) reinstates common stock dividend with quarterly $0.10 per share.

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

S&P 500 -30, Dow Jones -204, NASDAQ -104, and Russell 2000 -13. (as of 8:09 a.m. EDT). Europe lower ex FTSE and Asia lower.  VIX Futures are at 27.83 from 25.95  yesterday morning and the VIX closed at 26.27 from 26.16  yesterday. Gold, Silver  and Copper lower. WTI Crude Oil and Brent Oil Futures higher with Natural Gas lower as well. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10-year Treasury sees yields at 3.467% from 3.455% yesterday morning. Bitcoin is at $19,799 from $20,146 yesterday morning and is higher by 0.16% this morning.

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

  • Daily Positive Sectors: Healthcare of note.
  • Daily Negative Sectors: Energy, Utilities, Technology, Real Estate, Basic Materials 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.

Stocks struggled to find any footing today.  The target of 3900 seems to be a magnet for this pullback.  SPXplayed with the support value line (green line) for most of the day until finally breaking down.

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)

  • Friday After the Close: none of note.
  • Monday Before the Open: AZO 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: none of note.
  • Negative Guidance: FDX of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: GOGO +5%, BOWL +4%, RVNC +3%.
  • Gap Down: FDX -20%, NCR -15%, UPS -7%, ALHC -5%, UBER -5%, CNM -4%.

Insider Action:  CNA, SIX 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.

  • Stocks Making The Biggest Moves: FDX IP UBER NCR GE (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 sees new lows as inflation issues not over. (Bloomberg)
  • Bloomberg Most Read Story: Hedge Fund Manager Ray Dalio does the math if rates go to 4.5%  stocks will drop another 20% . (Bloomberg)
  • Russian President Putin admits that China has concerns over Ukraine. (CNBC)
  • 2 Year Yield tops 3.9%. (CNBC)
  • China to sanction Boeing (BA) and Raytheon (RTX). (Reuters)
  • Germany places Schwedt Refinery and Rosneft Deutschland under receivership. (Reuters)
  • General Electric (GE) CEO notes that supply chain issues will reduce profits. (Bloomberg)

Moving Average Update:

  • Third day the score remains at 0%.

Geopolitical: 

  • President’s Public Schedule:
    • The President receives the President’s Daily Briefing, 9:30 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 1:00 p.m. EDT
    • The President holds a bilateral meeting with South African President Cyril Ramaphosa, 2:15 p.m. EDT

Economic: 

  • September University of Michigan Consumer Sentiment (Preliminary) is due out at 10:00 a.m. EDT and is expected to come in at 60 from 58.20.
  • Baker Hughes Rig Count 1:00 p.m. EDT
  • Treasury Int. Capital 4:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Syros and Tyme Technologies (TYME) Announce Stockholder Approval of Merger

Meeting & Conferences of Note:

  • Sellside Conferences:
    • KBC Securities Life Sciences Conference
    • Jefferies Tech Trek Israel 2022 (09/18/22-09/22/22)
      • Previously posted and ongoing conferences:
        • Autonomous Research 7th Annual Virtual Annual Future of Commerce Symposium 2022 (09/15/22-09/16/22)
        • Credit Suisse Carbon Negative 2.0 (09/14/22-09/16/22)
        • Morgan Stanley 25th Annual Latin America Conference 2022 (09/12/22-09/16/22)
        • Morgan Stanley Laguna Industrials Conference (09/14/22-09/16/22)
        • Raymond James Consumer Conference (09/15/22-09/16/22)
        • Truist Securities Internet Growth Summit (09/12/22-09/16/22)
  • Company Meetings: TTWO
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AHCO, BANC, DAL, HUM, RGTI
  • Update: NTLA
  • R&D Day: None of note.
  • Company Event:
    • HR Technology (HRT) Conference & Exposition 2022. (09/13/22-09/16/22)
    • Cue Biopharma Inc. (CUE) The Promise of Interleukin-2 Therapy 2022 (09/17/22)
  • Industry Meetings:
    • 34th Transcatheter Cardiovascular Therapeutics (TCT) 2022 (09/16/22-09/19/22)
    • 40th Congress of the European Society of Cataract and Refractive Surgeons (ESCRS) 2022 (09/16/22-09/20/22)
    • European Huntingtons Disease Network EHDN2022 Plenary Meeting (09/16/22-09/18/22)
    • 35th Annual Psych Congress 2022 (09/17/22-09/20/22)
    • Denver Gold Forum Americas 2022 (09/18/22-09/23/22)
    • European Conference on Optical Communication (ECOC) 2022 (09/18/22-09/22/22)
    • International HBV Meeting 2022 (09/18/22-09/22/22)
    • Intelligent Transportation Systems (ITS) World Congress 2022 (09/18/22-09/22/22)
      • Previously posted and ongoing conferences:
        • Newport International Boat Show (09/15/22-09/18/22)
        • 60th European Society for Paediatric Endocrinology (ESPE) 2022 (09/15/22-09/17/22)
        • International Congress of Parkinson’s Disease and Movement 2022 (09/15/22-09/18/22)
        • The 2022 North American International Auto Show (NAIAS) (09/14/22-09/25/22)
        • American Orthopaedic Foot & Ankle Society (AOFAS) annual meeting (09/14/22-09/17/22)
        • 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)
        • International Manufacturing and Technology Show (IMTS) 2022 (09/12/22-09/17/22)

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: