M&A Activity:
Vroom (VRM) buys United Auto Credit Corporation for $300 million.
Signet (SIG) Jewelers to buy Diamonds Direct USA for $490 million in cash, raises guidance.
CAPIS Morning Note – 10/12/21: SP 500 Up By 50 Points From Overnight Lows
Morning Outlook- Markets are recovering from overnight lows on the S&P 500 at 3:00 a.m. EDT of 4317 and now are at 4356 up +4.5 points. Asia lower as reports that Evergrande did not pay bond holders of several traunches of coupons. Europe weaker as Germany came out with a weaker ZEW survey and Financials…
Morning Outlook- Markets are recovering from overnight lows on the S&P 500 at 3:00 a.m. EDT of 4317 and now are at 4356 up +4.5 points. Asia lower as reports that Evergrande did not pay bond holders of several traunches of coupons. Europe weaker as Germany came out with a weaker ZEW survey and Financials and Autos weaker in Europe.
Breaking News – J.P. Morgan (JPM) CEO Jamie Dimon says supply chains issues to fade in 2022. (CNBC)
Earnings Out After The Close
Beats: None of note.
Flat: None of note.
Misses: None of note.
Capital Raises:
IPOs Priced or News:
New SPACs launched: Dune Acquisition Corporation (DUNE) to combine with TradeZero.
Secondaries Priced: None of note.
Notes Priced of note: of note.
Common Stock filings: RLAY APRN BCYC of note.
Pricing of Over-Allotment:
Direct Offering:
Selling Shareholders of note: None of note.
Private Placement of Public Entity (PIPE): None of note.
Mixed Shelf Offerings: None of note.
Convertible Offering & Notes Filed: None of note.
Note Offerings 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:
NASDAQ saw Equity Options trade 245 million contracts in September versus 247 million in August and 227 million a year ago.
Matson (MATX) guides Q3 above consensus.
Assets Under Mgmt (AUM) updates from APAM, AMK, IVZ, CNS, BEN, LAZ,
Arch Capital (ACGL) sees catastrophic losses at $330 to $345 million due to Hurricane Ida and flooding in Central Europe during July.
Sonoco Products (SON) raises prices on paperboard tubes and cores by at least 6% as off 11/8.
After Hours: + WWR +23% QTRX +20% GERN +10% MATX +5% -RLAY -9%
Dividend Announcements: Increases: AOS
Stock Split:
Buyback Announcements: ACGL
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +11 Dow Jones Industrial Average +80 NASDAQ +62 Russell 2000 +3.36. Fair values are mixed. Asia and Europe lower. VIX is at 19.55 from 20.46 in futures from yesterday. Gold higher with silver lower and copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $131.11 from $130.88 yesterday with yields at 1.603% from 1.61% Monday morning. Bitcoin at $57,082 from$56,205 down $562 or -1.00% in morning trading.
Monday’s Action – 10/11 Close.
Positive Sectors Monday: Materials, Real Estate and Energy of note.
Negative Sectors Monday: Communication Services, Utilities and Financials of note.
One Month Winners: Technology, Communication Services, Real Estate and Energy of note.
Three Month Winners: Technology, Communication Services and Healthcare of note.
Six Month Winners: Technology, Communication Services and Real Estate of note.
Twelve Month Winners: Communication Services, Energy, Technology, Financials and Industrials of note.
Year to Date: Energy, Communication Services, Energy, Financials, Real Estate and Technology of note.
Stocks were lower, Bonds were lower, U.S. Dollar higher and Commodities lower ex Crude. Updated 10/11 Close.
Upcoming Earnings Of: (sorted by market cap, highest to lowest with most visible names)
Today After the Close: PNFP, SGH of note.
Tuesday Before the Open: JPM, BLK, FRC, DAL of note.
Earnings of Note This Morning:
Beats: AZZ +0.11
Flat: FAST
Misses: none
Still to Report: none
Erlanger Research Advance/Decline Chart –Updated through 10/11 close.
Gap Ups & Down In Early Pre-Market:
Gap up: QTRX +15%, WWR +10%, GERN +7%, MATX +4%
Gap Down: RLAY -9%, NDAQ -3%
Insider Action: None of note today. Yesterday SAFE sees Insider buying with dumb short selling and no smart short sellers with insider buys this morning. 10/12
Rags & Mags: Highlighted Stories may be clicked through to the original story. Repeated stories from prior days never listed, i.e. “rehashed news”.
Stocks making the biggest moves GSK, CVAC, ABNB.
Five Things To Know For Trading (CNBC)
House will vote on raising the debt ceiling late afternoon which has already passed the Senate. (Bloomberg)
Chinese company Evergrande missed third round of interest rate payments. (Reuters)
China saw September Auto Sales drop -17% amid supply issues. (WSJ)
Dr. Scott Gottlieb says that states should not mandate vaccines or stop private businesses from mandating. (CNBC)
Texas Governor Gregg Abbott bans vaccination mandates in his state. (NYT)
Amazon (AMZN) tells managers they can work remote or return to the office. (Bloomberg)
Southwest (LUV) says they need to increase staff to eliminate recent issues. (Bloomberg)
Southwest Air Pilots Association President Casey Murray expects normal operations to return to normal tonight or tomorrow. (CNBC)
Booz Allen (BAH) to spent $4 billion.
American Airlines (AAL) raises Q3 revenue guidance.
Robinhood looks at Merck’s (MRK) pill for Covid-19. Also, looks at Southwest (LUV) and its terrible, horrible, no good weekend and Monday of cancelled flights.
Moving Average Update
Score at 30% from 70% unchanged. Updated 10/11 Close.
Geopolitical:
G7 and G20 Finance Ministers Meeting at 11:00 a.m. EDT.
The President meets virtually with G20 leaders to discuss close coordination on Afghanistan among the world’s largest economies, select guests, and international financial institutions, South Court Auditorium, Closed Press, 8:45 a.m. EDT
The President and The Vice President receive the President’s Daily Brief, Oval Office, Closed Press, 10:15 a.m. EDT
Press Briefing by Press Secretary Jen Psaki, 2:00 p.m. EDT
Fed Speakers:
Federal Reserve Vice Chairman Richard Clarida speaks at 11:15 a.m. EDT.
Federal Reserve Atlanta President Raphael Bostic speaks at 12:30 p.m. EDT.
Economic:
The latest NYSE and NASDAQ Short Interest Data was out after the close. The data reflects data from September 15th through 30th with trade dates of September 13th through 28th. During this period, the S&P 500 fell -2.60%. NYSE up 1.57% and NASDAQ 0.83%.
September NFIB Small Business Optimism is due out at 6:00 a.m. EDT and last month came in at 100.1.
Weekly API Petroleum Institute Data is due out at 4:30 p.m. EDT.
3 & 10 Year Treasury Auctions at 1:00 p.m. EDT.
Meeting & Conferences of Note:
Sellside Conferences: JP Morgan ASEAN Energy Day (10/11-12) Citi Global Resources Conference (10/12-13) J.P. Morgan Global Healthcare Conference (10/12-13)
Company Meetings: CRWD JEFF HUBS AINC BHR (Investor/Analyst Day) CRSP (Corporate Event) ELOX (Conference Call)
Conferences of Note: LD Micro Annual Main Event Conference (10/12-14) Capital Link New York Maritime Forum (10/12-14).
Upgrades & Downgrades:
Monday Recommendations of Note:
