CAPIS Morning Note – 09/20/22: Stocks Lose Steam Overnight As We Head Into Fed Announcement Tomorrow

Overnight Summary: The S&P 500 closed Monday at  3918.75 (higher by 0.69%) from Friday at 3873.33 (lower by 0.73%). The overnight high of 3936.25 was hit at 3:25 a.m. EDT. The low was hit at 3895.25 at 6:20 a.m. EDT, a range of 41 points high to low which is near the recent range of…

Overnight Summary: The S&P 500 closed Monday at  3918.75 (higher by 0.69%) from Friday at 3873.33 (lower by 0.73%). The overnight high of 3936.25 was hit at 3:25 a.m. EDT. The low was hit at 3895.25 at 6:20 a.m. EDT, a range of 41 points high to low which is near the recent range of 45. At 7:15 a.m. EDT the current price was 3905.25 which is -12 points, -0.30%. Currently, at 7:55 a.m. EDT the S&P 500 is now -16.

Earnings Out After The Close:

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

Capital Raises:

  • IPOs Priced or News:
    • THRD: Closing of Upsized Initial Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • VIRI prices offering. 10 million shares at $0.50 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • AKRO: Closing of Upsized Public Offering of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
    • COSM: Filed Form S-1.. We are offering on a “reasonable best efforts” basis up to $12 million of shares of common stock of Cosmos Holdings Inc.
    • GREE: Filed Form S-3.. $100,000,000 Class A Common Stock.
    • IDYA: Closing of Public Offering of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares.
    • MULN: Filed Form S-3ASR.. 249,375,003 Shares of Common Stock.
    • RYTM: Closing of $124.8 Million Public Offering.
    • VIRI: Announces Proposed Public Offering.. ThinkEquity bookmanager.
    • VTR: Filed Form S-3ASR 3,515,211 Shares of Common Stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering:
    • CSCW: Closes $5.6 Million Registered Direct Offering.
  • Selling Shareholders of note:
    • BHVN: Filed resale by the selling shareholder of 493,254 common shares.
    • SOUN: Filed Form S-1.. 25,250,000 Shares of Class A Common Stock by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • CLXT: Filed Form S-3.. $50,000,000 Mixed Shelf.
    • ROIV: files for $1 billion mixed securities shelf offering.
  • Debt Filing/Notes:
    • CTRA: Issues Notices of Redemption for its 4.375% Senior Notes Due 2024 and Cimarex Energy Co.’s 4.375% Senior Notes Due 2024.
    • TELL: Announces Withdrawal of Public Offering of Senior Secured Notes.
  • 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: CGNX +6%.
    • Trading Down: F -5%.
    • News Since The Close:
      • Ford (F) warns investors of an extra $1 billion in supply chain costs during the third quarter. (CNBC)
      • BYND COO arrested for biting man’s nose near Razorback Stadium – (Fox 24)
      • General Dynamics (GD) awarded $415 million U.S. Defense Logistic Agency modification contract.
      • WHO official said Covid-19 pandemic not ended, remains a global emergency, but we have tools to end it. (Reuters)
  • Exchange/Listing/Company Reorg and Personnel News:
    • Celsion Corporation (CLSN) Announces Company Name Change to Imunon, To Trade Under Symbol ‘IMNN’ Effective As Of Sept. 21.
    • Gain Therapeutics (GANX) Announces Promotion of Matthias Alder to Chief Executive Officer.
    • LRCX: Catherine P. Lego to Retire from Lam Research’s Board of Directors.
    • Scholar Rock (SRRK) appointed Jay Backstrom, M.D., M.P.H., as Chief Executive Officer-Elect.
    • Tanger Factory (SKT) announces appointment of Michael Bilerman as company’s CFO and Chief Investment Officer.
  • Buyback Announcements or News:
    • CRH Continues Share Buyback Program.
    • Mannatech (MTEX) launches $1.5 million share buyback plan.
    • NSIT: Authorized stock repurchase program up to an aggregate of $300 million of the Company’s common stock.
    • Patria Investments (PAX) names Ana Russo as incoming CFO.
    • Tremor (TRMR) announces $20 million share repurchase program.
  • Stock Splits or News: 
    • Hippo (HIPO) to Complete 1 for 25 Reverse Stock Split.
  • Dividends Announcements or News: None of note.

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

S&P 500 -16, Dow Jones -97, NASDAQ -64, and Russell 2000 -8 . (as of 8:06 a.m. EDT). Europe lower and Asia higher.  VIX Futures are at 26.72 from 27.88 yesterday morning and the VIX closed at 25.76 from 26.30 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower and Natural Gas lower as well. $ is higher vs Euro, lower vs Pound and higher vs Yen. US 10-year Treasury sees yields at 3.54% from 3.50% yesterday morning. Bitcoin is at $19,287.67 from $18,774 yesterday morning and is lower by -0.81% this morning.

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

  • Daily Positive Sectors: Basic Materials, Consumer Cyclical, Utilities, Industrials, Financial of note.
  • Daily Negative Sectors: Healthcare of note.
  • One Month Winners:  none of note.
  • Three Month Winners:  Utilities, Consumer Cyclical, and Industrials 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.

Gap down in the morning put the opening print at the support (green) value line only to battle back.  The Pivot (pink) was a magnet for a bit before a strong close vaulting the index above the resistance.  FOMC will be on everyone’s minds as the meeting starts tomorrow with a Wednesday conclusion about rate hike decision.

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: SFIX of note.
  • Wednesday Before the Open: GIS of note.

Earnings of Note This Morning:

  • Beats: APOG +0.23.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: CGNX, APOG of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: PPTA +13%, ROIV +12%, CGNX +5%, CLPT +4%.
  • Gap Down: F -5%, ZEN -4%.

Insider Action:   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: F  BNTX MRNA CHNG CGNX NKE WDC NCLH  (CNBC)
  • Five Things To Know Before Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Fed set to reveal pain in coming next stage of inflation fight. (Bloomberg)
  • Bloomberg Most Read Story: Southwest Mexico hit by 7.5 earthquake. (Bloomberg)
  • Craziest Headline of the Week So Far: Treasury yields could hit 4% before the Federal Reserve decision. (Bloomberg)
  • China to ease foreign entry. (CNN)
  • Sweden raises rates by 100 basis points as “inflation too high”. (CNBC)
  • Arrests of undocumented immigrants hit 2 million for the first time ever. (NYT)
  • Layoffs loom on the horizon. (CNBC)
  • Funding of Covid-19 for vaccines,testing and treatments tougher after President Biden said that pandemic is over. (CNN)
  • Office occupancy hits 47.5% a pandemic high. (WSJ)
  • Judge rejects antitrust challenge to United Healthcare (UNH) deal to buy Change Healthcare (CHNG). (WSJ)
  • Goldman Sachs (GS) to introduce banking services in the European Union. (FT)
  • Apple (AAPL) to increase APP store prices in Europe and Asia in October. (Bloomberg)
  • Twilio (TWLO) aims to eliminate 11% of its workforce. (NY Post)
  • Tencent (TCEHY) to sell stake in various businesses to fund buybacks and growth. (WSJ)
  • Boeing (BA) met with Chinese regulators on returning 737 Max to flight. (Reuters)

Moving Average Update:

  • One brick of green….Dow Industrials crossing above a short term 5 day MA.

Geopolitical: 

  • President’s Public Schedule:
    • Press Briefing by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan, 12:00 p.m. EDT
    • The President delivers remarks on the DISCLOSE Act, 1:45 p.m. EDT
    • The President departs the White House en route Joint Base Andrews for New York, 4:00 p.m. EDT
    • The President participates in a Democratic National Committee reception, 7:30 p.m. EDT

Economic: 

  • August Housing Starts is due out at 8:30 a.m. EDT and came in at 1,448,000 from 1,447,000 million.
  • Redbook Sales 8:55 a.m. EDT
  • API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

  • FOMC Meeting Begins.

M&A Activity:

  • O2Micro (OIIM) Announces Receipt of a Revised Preliminary Non-Binding Proposal to Acquire the Company 4.90 per ads.
  • Oxford Industries (OXM), Owner of Tommy Bahama and Lilly Pulitzer, Announces Acquisition of Johnny Was.
  • Rocket Pharma (RCKT) to Acquire RCOR in an all-stock transaction for an implied value of ~ $2.60 per share.
  • Zendesk (ZEN) Announces Stockholder Approval of Merger Agreement.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Bank of America Banking & Insurance CEO Conference 2022 (09/20/22-09/23/22)
    • Credit Suisse Houston Oil & Gas 1×1 Conference (09/20/22-09/21/22)
    • JP Morgan Global Clean Energy Action Forum
    • JP Morgan India Investor Summit
    • JP Morgan Emerging Markets Credit Conference 2022 (09/20/22-09/22/22)
    • JP Morgan 13th Annual U.S. All Stars Conference 2022 (09/20/22-09/22/22)
    • LifeSci Partners HealthTech Symposium (09/20/22-09/21/22)
    • RBC Capital Markets Energy Disruptors UNITE Summit (09/20/22-09/22/22)
    • Roth Capital Solar & Storage Symposium (09/20/22-09/21/22)
    • Stephens Bank Forum 2022 (09/20/22-09/21/22)
    • Wells Fargo Consumer Conference (09/20/22-09/22/22)
      • Previously posted and ongoing conferences:
        • Baader Investment Small-Cap Conference 2022 (09/19/22-09/23/22)
        • BTIG Digital Assets Conference (09/19/22-09/20/22)
        • Deutsche Bank Leveraged Finance Conference (09/19/22-09/21/22)
        • Fierce Biotech Summit 2022 (09/19/22-09/20/22)
        • Janney Community Bank Forum 2022 (09/19/22-09/20/22)
        • Jefferies Tech Trek Israel 2022 (09/18/22-09/22/22)
        • JP Morgan RE+ Conference
        • Truist Securities Orlando/Miami Bus Tour
  • Company Meetings: ESPR
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: AJG, BEAT, BXP, CSTL, IRM, OMCL, RCEL, RGEN, SOPH, SUMO, TA, XPER
  • Update:
    • Ericsson B (ERIC) conference call on restated segment financials.
  • R&D Day: None of note.
  • Company Event:
    • Nvidia (NVDA) GTC 2022  (09/19/22-09/22/22)
    • Salesforce (CRM) Dreamforce
    • Treace Medical Concepts (TMCI) Surgeon Advisor Event
    • Cara Therapeutics (CARA) Virtual Notalgia Paresthetica Event 2022
  • Industry Meetings:
    • Autonomous Vehicles Conference
    • NYSE 3rd Annual Investor Access Consumer Day 2022
      • Previously posted and ongoing conferences:
        • European Association for the Study of Diabetes (EASD) Annual Meeting 2022 (09/19/22-09/23/22)
        • 40th Congress of the European Society of Cataract and Refractive Surgeons (ESCRS) 2022 (09/16/22-09/20/22)
        • The 2022 North American International Auto Show (NAIAS) (09/14/22-09/25/22)
        • 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)

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: