CAPIS Morning Note – 10/10/22: Bond Market Closed For Columbus Day, Stocks Modestly Lower.

Overnight Summary: The S&P 500 closed Friday at 3639.66 (lower by -2.80%) from Thursday at 3744.52 (lower by -1.02%). The overnight high of 3650.25 was hit at 6:10 a.m. EDT. The low was hit at 3618 at 7:05 p.m. EDT, a range of 31.75 points high to low which is below the recent range of…

Overnight Summary: The S&P 500 closed Friday at 3639.66 (lower by -2.80%) from Thursday at 3744.52 (lower by -1.02%). The overnight high of 3650.25 was hit at 6:10 a.m. EDT. The low was hit at 3618 at 7:05 p.m. EDT, a range of 31.75 points high to low which is below the recent range of 45.  At 7:35 a.m. EDT, the S&P 500 was down -8 points.  A quiet news weekend as Columbus Day Weekend see lots of governments, Federal and State, shut down for today. Bond Market is closed today.

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: None of note.
  • Secondaries Priced:
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • Heron Therapeutics (HRTX) files for 24,677,419 share common stock offering by selling shareholders.
    • MasTec (MTZ) files for 128,205 common stock offering related to warrants.
  • 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):
  • Mixed Shelf Offerings:
    • Vicarious Surgical (RBOT) files a $400 million mixed securities shelf offering.
  • Debt Filing/Notes: None of note.
  • Tender Offer:
  • Convertible Offering & Notes Filed:

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: BHVN 104.1%, BEAT 47.4%, NINE 40.9%, ABEO 40.1%, CDEV 31.4%, KLXE 27.3%, CPE 27.2%, MTDR 26.7%, DXCM 26.4%, RIG 24.9%, PUMP 24.6%, COMM 24.1%, APA 24.1%, CS 24.0%, GPRK 23.7%, MUR 23.6%, CLB 23.4%, REI 23.3%, MRO 23.3%.
    • Trading Down: ANGO -24.7%, AVYA -23.0%, ITGR -17.4%, NVRO -17.4%, TSLA -16.2%, RGNX -15.6%, EHTH -15.4%, APLS -14.7%, GNRC -13.4%, UVE -13.0%, NIO -12.9%, TRUP -12.5%, GLT -12.2%, TWOU -11.4%, KZR -11.3%.
  • News Items After the Close:
    • FDA issues Emergency Use Authorization to Abbott (ABT) Molecular for the Alinity m MPXV.
    • Teva Pharmaceutical (TEVA) will have trouble supplying Adderall for the next 2-3 months. (Bloomberg)
    • Rivian Automotive (RIVN) to recall all vehicles over steering issue.
  • News Items Over the Weekend:
    • Fire on bridge connecting Crimea to Russia a major blow to Russia supplies to Ukraine. (NYT)
    • Former Federal Reserve Chairman Bernanke wins the Nobel Prize for work on banks and financial crises. (NYT)
    • Barron’s:
      • Positive View: MSGS LEA APTV MGA CFG FITB HBAN MTB
      • Cautious View: QCOM PM BKNG CAT XOM ABT META NFLX GOOGL ADBE
      • Mixed View: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Lux Health Tech Acquisition (LUX) plans to dissolve and liquidate its SPAC.
    • Post Holdings (POST) COO Howard A. Friedman will be leaving to go to Utz Brands  (UTZ).
  • Buyback Announcements or News: None of note.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: 

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

S&P 500 -5, Dow Jones -10 , NASDAQ -24 and Russell 2000 -3.45. (as of 8:00 a.m. EDT). Europe lower ex Germany and Asia lower.  VIX Futures are at 31.90 from 29.77 Friday morning and the VIX closed at 31.36 from 30.42 yesterday. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10-year Treasury sees yields at 3.88% unchanged from Friday morning. Bitcoin is at $19,302 from $19,999 Friday morning and is lower by -0.83% this morning.

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

  • Daily Positive Sectors: None of note.
  • Daily Negative Sectors: All of note.
  • One Month Winners:  Energy of note.
  • Three Month Winners:  Energy of note.
  • Six Month Winners: Energy of note.
  • Twelve Month Winners: Energy of note.
  • Year to Date Winners: Energy of note.

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)

  • Monday After the Close: None of note.
  • Tuesday Before the Open: AZZ 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:  of note.
  • Negative Guidance:  of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: PYR +6%, LMT +1%, GSK +1%.
  • Gap Down: RIVN -6%, EDU -5%, HRTX -3%, TLRY -3%, AZUL -2%, TEVA -2%, RBOT -2%.

Insider Action:  sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers.  No new names today this is yesterday’s names.

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 GM RIVN (CNBC)
  • Five Things To Know Before Market Opens. (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Bloomberg Lead Story:  No Possibility of Reconciliation as U.S. Slams China Chips. (Bloomberg)
  • Bloomberg Most Read Story:  Screening Colonscopy Procedure fails to decrease Colon Cancer deaths in large study. (Bloomberg)
  • Russia fired missiles into Kyiv as retaliation for the damaged bridge connecting Ukraine to Crimea. (NYT)
  • Covid-19 cases are rising in China again. (Bloomberg)
  • Bank of England announces additional measures to support market functioning. (Release)
  • Saudi Aramco to maintain oil supplies to Asia despite production cuts. (Reuters)
  • France is shutting down electricity to various monuments to save energy. (WSJ)
  • Federal Reserve officials want to raise to 4.5% and then hold them there. (Bloomberg)
  • Treasury Secretary Yellen interviewed and notes that OPEC production cut is bad for the global economy. (FT)
  • GSK plc (GSK) announced that the FDA has approved Boostrix
  • Restaurant Brands International (QSR) Burger King unit to spend $400 million on advertising and restaurant remodels. (WSJ)
  • Tesla (TSLA) China deliveries totaled 83,135. (Reuters)
  • Banks will provision $4 billion for bad loans. (FT)

Moving Average Update:

  • Score dive bombs to 2%.

Geopolitical: 

  • President’s Public Schedule:
    • The President is in Delaware for Columbus Day and will return to the White House at 2:50 p.m. EDT.

Economic: 

  • None of note today as the Government is closed today.

Federal Reserve / Treasury Speakers:

  • Federal Reserve Vice Chairman Lael Brainard speaks at 1:35 p.m. EDT.

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Piper Sandler Technology Private Equity Forum 2022
    • Mizuho Securities Finance & Collateral Mgmt Conference 2022
      • Previously posted and ongoing conferences:
  • Company Meetings: None of note
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: 
  • Update: None of note
  • R&D Day:
    • None of note.
  • Company Event:
    • None of note
  • Industry Meetings:
      • Previously posted and ongoing conferences:
        • None of note

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: