Overnight Summary: The S&P 500 closed Friday at 3585.62 (lower by -1.51%) from Thursday at 3640.17 (lower by -2.11%). The overnight high of 3620 was hit at 2:10 a.m. EDT. The low was hit at 3571.75 at 9:00 p.m. EDT, a range of 49 points high to low which is above the recent range of 45.  At 7:15 a.m. EDT, the S&P 500 was up +13 points up 0.36% at 3614.50.

Earnings Out After The Close:

• IPOs Priced or News: None of note.
• New SPACs launched/News:
  • Model Performance Acquisition Corp. (MPAC) Announces Extension of Combination Period and Second Amendment to the Merger Agreement.
  • Estrella Biopharma, Inc., a biopharmaceutical company to Become a Publicly Traded Company Via Merger with TradeUP Acquisition Corp (UPTD).
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • APRN: Entered into an Equity Distribution Agreement to issue/sell up to $14,999,425 of its Class A common stock.
  • AMPX: Filed Form S-1.. 105,680,194 Shares of Common Stock 16,400,000 Private Warrants 6,535,000 Public Warrants.
  • DV: Filed Form S-3ASR.. 79,040,908 Shares of Common Stock.
  • NUTX: Filed Form S-3ASR.. ‎196,317,144 Shares of Common Stock.
  • POAI: Filed Form S-1.. 4,737,280 Shares Common Stock.
• Pricing of Over-Allotment/Notes: None of note.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • NEXT: Files 15,454,160 common stock offering by selling stockholders.
  • VIGL: Files for 7,293,084 share common stock offering by selling shareholders, offering also includes warrants.
  • XOS: Files for 11,571,966 share common stock offering by selling shareholder.
• Private Placement of Public Entity (PIPE):
  • TCBX: Announces Closing of $69.4 Million Private Placement of Convertible Preferred Stock.
  • TXMD: Announces $7 Million Private Placement.
• Mixed Shelf Offerings:
  • HCC: Filed Form S-3ASR — Mixed Shelf.
  • LGND: Filed Form S-3ASR Mixed Shelf Offering.
  • LBPH: Filed Form S-3.. $150,000,000 Mixed Shelf.
  • VTNR: Filed S-3ASR Mixed Security Shelf.
  • WKSP: Filed Form S-3.. $30,000,000 Mixed 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 and Over the Week:

• Weekly Wrap Up: Best and Worst performing large cap stocks:
  • Trading Up: PRTA 97.7%, BEAT 82.8%, KLXE 58.5%, STIM 38.3%, BIIB 36.2%, RCKT 28.2%, MLCO 25.1%, BTU 24.0%, CDE 23.7%, KPTI 23.5%, TCDA 22.2%, HMY 21.3%, RDNT 19.8%, ACRS 19.0%, HLIT 18.5%, PBF 18.2%, FSM 17.2%, KNSA 16.1%.
  • Trading Down: RAD -28.9%, LIND -26.7%, NLY -23.5%, RCII -22.9%, GLT -22.8%, CMCM -21.8%, CVNA -21.5%, CCL -20.7%, TWO -20.4%, GPMT -20.3%, CUK -20.3%, CIM -20.3%, MITT -19.9%, MFA -19.7%, ORC -19.5%.

• News Items After the Close:
  • Stanley Black & Decker (SWK) Cuts About 1,000 Finance Jobs As Part of Cost-Savings Drive. (WSJ) 
  • Freshpet (FRPT)Activists Push Pet-Food Maker to Explore Sale. (Barrons)
  • Raytheon Technologies (RTX) awarded a $226 million US Navy contract for AIM-9X Block II and Block II+ Systems.
  • Raytheon Technologies (RTX), Pratt and Whitney Military Engines awarded a $233 mln US Navy contract relating to F-35 Lightning II Program.
  • Boeing (BA) awarded a US Air Force contract not-to-exceed a value of $188 mln related to F-15 Japan Super Interceptor Program.
  • Lockheed Martin (LMT) awarded a $229 million US Navy modification to a previously awarded contract.
  • Lockheed Martin (LMT) awarded a $265.6 mln modification order against a previously issued US Navy basic ordering agreement.
  • Lockheed Martin (LMT) awarded a $350.4 mln US Navy contract modification to a previously awarded and announced unpriced letter contract relating to of missile production.
  • Fluor (FLR) awarded a $1.33 billion US Navy modification to a previously awarded contract for Naval Nuclear Propulsion work
• News Items Over the Weekend:
  • Stocks That Defined the Week: NKE, KMX, BIIB, AAL, AMZN, HTZ, PTON (WSJ)
  • The Week in Business: Market Chaos in Britain.  (NYT)
  • OPEC+ oil producers will consider cutting output by more than 1 million barrels a day when it meets on Wednesday. (Bloomberg)
  • Celsius Network Founder Withdrew $10MN Ahead Of Bankruptcy. (Financial Times)
  • Coinbase (COIN) Investigating Problem With Payments From US Banks (Bloomberg)
  • BREAKING: Major exodus of talent from @CreditSuisse’s investment bank is helping to fuel the speculation over the health of the overall firm, sources tell @FoxBusiness . As I reported, the CEO is telling major institutional investors the bank has sound liquidity, capital etc — (GASPARINO FBN) 
  • Barron’s:
    • Positive View: OPLX, PBR.
    • Cautious View: EWU, PM, MDLZ, BKNG, LRCX.
    • Mixed View: None of note.

• Exchange/Listing/Company Reorg and Personnel News:
  • Cal-Maine Foods (CALM) names Sherman Miller as CEO.
  • China Pharma (CPHI) Announces Receipt of Notification of NYSE American Listing Deficiency.
  • The Walt Disney Company (DIS) Appoints Veteran Media and Technology Executive Carolyn Everson to Its Board of Directors.
  • Matrix Service Company (MTRX) Receives Nasdaq Notice on Late Filing of Its Form 10-K.
  • Momentive Global (MNTV) names Alexander Lurie as interim CFO.
  • NaaS Technology (NAAS) CFO Lei Zhao has resigned for personal reasons.
  • Vertiv (VRT) Announces CEO Succession as current will retire for health reasons.
• Buyback Announcements or News: None of note.
• Stock Splits or News:
  • AVCT trading r/s price. 
  • Faraday (FFIE) future-proposal to approve amendment to effect reverse stock split of common stock by ratio of whole number in range of 1-for-2 to 1-for-10.
• Dividends Announcements or News: 
  • Lockheed Martin (LMT) increases its quarterly dividend 7.1% to $3.00 per share.

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

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

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

Steady selling pressure continued after some morning positive action.  NDX was down 1.73% and OEX was down 1.78%.

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)

Gap Ups & Down In Early Pre-Market:

• Gap Up: MYOV +28%, AXSM +9%, AMTD +8%, LXRX +8%, BP +4%, TTE +4%.
• Gap Down: APRN -11%, CS -5%, ABB -4%, TSLA -4%, CLNN -4%.

Insider Action: No stock sees Insider buying with dumb short selling.  BRT 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:  CS TSLA MYOV (CNBC)
• Five Things To Know Before Market Opens. (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Bloomberg Lead Story: Credit Suisse Market Turmoil Backfires After CEO Memo Released. (Bloomberg)
• Bloomberg Most Read Story: Brazil Election Results. (Bloomberg)
• Brazil to hold a runoff election between President Jair Bolsonaro and former President Luiz Lula da Silva. (WSJ)
• British Prime Minister Liz Truss drops tax cuts on wealthy to fend off rebellion. (Bloomberg)
• Russia retreated from Lyman, Ukraine days after it annexed the region. (NYT)
• President Biden to visit Florida on Wednesday as 800,000 people are still without power. (CNN)
• Social Icon Kim Kardashian to pay $1.26 million to settle SEC allegations of her touting a cyrpto token with lack of disclosure. (Bloomberg)
• Power may be out for another week in Florida. (CNN)
• Insurance companies will pay out $63 billion over Hurricane Ian. (Bloomberg)
• Tesla (TSLA) deliveries slump on vehicle delivery target for Q3  (Bloomberg)
• Walgreens (WBA) to use robots to fill prescriptions. (WSJ)
• Moderna (MRNA) refuses to reveal its vaccination technology to China. (FT)
• L3 Harris (LHX) near a deal to buy the communications unit from Viasat (VSAT). (WSJ)
• Walt Disney (DIS) to restore channels with Dish Network (DISH). (WSJ)

Moving Average Update:

• Score remains at 0% – Day 2.

Geopolitical: 

• Federal Research Atlanta President Raphael Bostic 9:05 a.m. EDT 
  
• Federal Reserve Richmond President Thomas Barkin 11:45 a.m. EDT
  
• Federal Reserve Kansas City President Esther George  2:15 p.m. EDT
  
• Federal Reserve New York President John Williams   3:10 p.m. EDT 
  
• Federal Research Atlanta President Raphael Bostic 6:45 p.m. EDT

M&A Activity:

• Allegiance Bancshares (ABTX) closes merger with CBTX; to begin trading as Stellar Bancorp (STEL) on Monday.
• Con Edison (ED) sells renewable energy subsidiaries for $6.8 billion.
• F45 (FXLV) Confirms Receipt of Unsolicited Proposal from Kennedy Lewis Investment Management LP.
• FiscalNote (NOTE) Acquires DT-Global Business.
• Hanger, Inc. (HNGR) Stockholders Approve Acquisition by Patient Square Capital.
• Redwire Corporation (RDW) acquires QinetiQ Space NV

• • • Previously posted and ongoing conferences:
      • None of note.
• Company Meetings: QNGY
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: AURA, ILMN, PRTK, SBGI
  
• Update: CLNN
• R&D Day: LEGN
• Company Event: None of note.
• Industry Meetings:
  • The Federal Reserve Banks of Atlanta, Dallas, and Richmond Technology-Enabled Disruption Conference.
  • International Symposium on Microelectronics IMAPS 2022. (10/03/22-10/06/22)
    • Previously posted and ongoing conferences:
      • American Academy of Ophthalmology Meeting (09/30/22-10/03/22)
      • Heart Failure Society of America (HFSA) Annual Scientific Meeting 2022 (09/30/22-10/03/22)
      • Association for Vascular Access (AVA) Annual Scientific Meeting 2022 (09/30/22-10/03/22)
      • National Association of Convenience Stores Trade Show and Petroleum Equipment Institute Convention 2022 (10/01/22-10/04/22)

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: