Overnight Summary: The S&P 500 closed Thursday lower by -0.78% at 4278 from Wednesday lower by -1.34% at 4314.60. The overnight high was hit at 4304.50 at 4:50 a.m. EDT while the low was hit at 4283.25 at 2:25 a.m. EDT. The range overnight was 21 points as of 7:15 a.m. EDT. The 10-day average of the overnight range is at 23.80 from 24.20 down from a peak of 31.50 on 8/15. The average for May-September average was 20.96 from 21.10 in May through August and the September average was 19.87. Currently, the S&P 500 is lower by -7 points which is -0.15% at 7:20 a.m. EDT.
Earnings Out After The Close:
- Beats: WAL +0.08, OZK +0.07, GBCI +0.05, KNX +0.05, ISRG +0.04, ASB +0.01 of note.
- Flat: WDFC of note.
- Misses: AMBT (0.05), CSX (0.01) of note.
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Flybondi to Become Publicly Traded via Business Combination with Integral Acquisition Corporation 1 (INTE).
- Secondaries Priced:
- ARQT: Prices offering of 32.5 million shares of common stock at $2.50 per share.
- Notes Priced of note:
- ENOV: Prices $400 million of 3.875% Convertible Senior Notes due 2028; estimates that the net proceeds from the Offering will be approximately $386.9 million.
- SMTC: Announces Pricing of Private Placement of $250 Million of New Convertible Senior Notes.
- WLFC: Announces Pricing of $410.0 Million in Fixed Rate Notes.
- Common Stock filings/Notes:
- ARQT: Proposed Public Offering $100.0 million of shares of its common. (MS, TD and Guggenheim bookmanager)
- NKGN: Filed Form S-1.. Up to 36,104,035 Shares of Common Stock Up to 8,676,959 Shares of Common Stock Issuable Upon Exercise of Warrants and Up to 5,246,033 Warrants to Purchase Common Stock.
- Direct Offering: None of note.
- Selling Shareholders of note: None of note.
- Private Placement of Public Entity (PIPE):
- ADIL: Announces $4 Million Private Placement Priced At-The-Market Under Nasdaq Rules.
- Mixed Shelf Offerings:
- GPC: Filed Form S-3ASR.. Mixed Shelf.
- Debt/Credit Filing and Notes:
- BGC: Filed Form S-3ASR — Senior Notes Offering.
- BENF: Closes on $25 Million Term Loan Financing.
- Tender Offer: 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: KNX +14%, BOWL +11%, OZK +4% of note.
- Trading Down: SEDG -20%, ENPH -14%, ARQT -9%, RUN -7%, ISRG -7%, BLFS -6%, WDFC -5%, SPWR -5%, FSLR -5%, AMTB -4%, JKS -4%, MAXN -4% of note.
- News Items After the Close:
- Stocks making the biggest moves after hours: SEDG, ISRG, KNX, WAL, WDFC, CSX (CNBC)
- US and EU Stall on Steel Accord, Risking a Return of Tariffs. (Bloomberg)
- US Seeks To Buy 6 million Barrels For SPR By January. (Reuters)
- Key Takeaways From Federal Reserve Chairman Powell’s Remarks. (Bloomberg)
- HP Enterprise (HPE) stock drops following disappointing 2024 earnings forecast. (MarketWatch)
- Intuitive Surgical’s stock drops as revenue misses Street view. (MarketWatch)
- Stellantis (STLA): Due to UAW strike actions, Stellantis announces 100 more layoffs at the Toledo machining plant.
- Solar stocks experiencing selling pressure following SolarEdge Technologies’ (SEDG) slashed Q3 outlook.
- Leidos (LDOS) Awarded $180 million Defense Health Agency Virtual Health Task Order.
- Exchange/Listing/Company Reorg and Personnel News:
- Aspen Technology (AZPN) Announces CFO Transition.
- BioLife Solutions (BLFS) appoints Roderick de Greef as Chairman and CEO.
- CURO Group Holdings Corp. (CURO) Receives Continued Listing Standard Notice from the NYSE.
- e.GO (EGOX) Will Start Trading on Nasdaq Under Ticker Symbol “EGOX”.
- EZGO Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency.
- Lakeland Industries (LAKE) Announces Executive Leadership Changes.
- Macatawa Bank Corporation (MCBC) CEO Ronald Haan to retire, effective November 1; succeeded by CFO Jon Swets, who will then be replaced by Bryan Barker.
- RumbleOn (RMBL) appoints Michael Kennedy as Chief Executive Officer.
- WeWork (WE) COO Anthony Yazbeck to depart. (MarketWatch)
- Buyback Announcements or News:
- Buyback blackout ends after the close.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Matador Resources (MTDR) increases quarterly cash dividend 33% to $0.20 per share.
- Insider Sales Of Note:
- JFrog (FROG) CEO sells $1.06M worth stock.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -6, Dow Jones -56, NASDAQ -25, and Russell 2000 -2. (as of 7:59 a.m. EDT). Asia and Europe are lower this morning. VIX Futures are at 20.55 from 19.45 yesterday. Gold and Silver are higher with Copper lower this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas lower. US 10-year Treasury sees yields at 4.937% from 4.96% yesterday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $29,986 from $28,459 yesterday, higher by +4.31%.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: None of note.
- Daily Negative Sectors: Real Estate, Consumer Cyclical, Healthcare, Financial, Industrials, Basic Materials of note.
- One Month Winners: None of note.
- Three Month Winners: Energy and Communication Services of note.
- Six Month Winners: Communication Services, Technology, Consumer Cyclical of note.
- Twelve Month Winners: Technology, Communication Services, and Industrials of note.
- Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.
Stocks ultimately sank Thursday after being whipsawed by remarks from Federal Reserve Chair Jerome Powell. Powell’s comments jostled markets as investors were weighing bond yields’ ascent toward 5%, the continuing conflict between Israel and Hamas, and the influx of corporate earnings results from the third quarter. The S&P 500 dropped 0.8% with 10 of its 11 sectors finishing in the red. The tech-heavy Nasdaq Composite fell 1%, while the Dow Industrials declined 0.7%. (WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Friday After the Close: None of note.
- Monday Before the Open:
Earnings of Note This Morning:
- Beats: EEFT +1.05, AXP +0.35, CMA +0.15, FBP +0.08, HBAN +0.04, BHLB +0.01, SLB +0.01 of note.
- Flat: SXT of note.
- Misses: ALV (0.13), RF (0.09), IPG (0.03) of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: KNX, EEFT of note.
- Negative Guidance: SEDG, HPE of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: KNX +18%, BOWL +12%, MCB +5%, BLX +4% of note.
- Gap Down: SEDG -26%, ARQT -18%, ENPH -15%, SPWR -8%, RUN -8%, ISRG -8%, CSIQ -6%, FSLR -5%, MAXN -4%, WDFC -4%, HPE -4%, JKS -4% of note.
Insider Action: No stock sees Insider buying with dumb short selling. HHH 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.
- 5 Things To Know Before The Stock Market Opens Friday. (CNBC)
- 5 Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Israel Latest: Concern Over Wider Conflict Before Leaders Summit. (Bloomberg)
- Bloomberg Second Most Shared Story: Walmart’s Heir bet on Formula One Shows Racing’s Allure for Billionaires. (Bloomberg)
- Oil rises on war escalation fears; U.S. futures slip: Market Wrap. (Bloomberg)
- In President Biden’s speech last night, he cast Russia and Hamas as parallel threats to democracy. (Bloomberg)
- Economists boost U.S. growth projections and reduce recession odds. (Bloomberg)
- American Express (AXP) reports 6th consecutive quarter of record revenue, up 13% from year earlier. (Business Wire)
- NPR Morning Report Marketplace: Workers in Israel’s tech industry are joining the war effort. (Podcast)
- NY Times The Daily: Hamas took her son. (Podcast)
- BBC Global News: Signs Israel preparing for Gaza ground invasion. (Podcast)
- Bloomberg: Putin and Xi find the limits of their no limit friendship. (Bloomberg)
- Wealthion: Bounce, then a bear market? (Podcast)
Moving Average Update:
- Score goes down to 11% from 25%.
Geopolitical:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:30 am. EDT
- The President welcomes President Charles Michel of the European Council and President Ursula von der Leyen of the European Commission to the White House for the second U.S. – EU Summit since the President took office, 12:00 p.m. EDT
- The President departs the White House en route to a campaign reception in Washington, DC, 4:40 p.m. EDT
- The President participates in a campaign reception, 6:00 p.m. EDT
- The President and The First Lady depart Joint Base Andrews en route to Dover, Delaware, 7:30 p.m. EDT
- The President and The First Lady depart Dover, Delaware en route to Rehoboth Beach, Delaware, 8:15 p.m. EDT
- The President and The First Lady arrive in Rehoboth Beach, Delaware, 8:35 p.m. EDT
Economic:
- Baker Hughes Rig Count 1:00 p.m. EDT
- The September Treasury Budget is due out at 2:00 p.m. EDT and came in last month at $89.2 billion.
Federal Reserve / Treasury Speakers:
- Federal Reserve Philadelphia President Patrick Harker 9:00 a.m. EDT
- Federal Reserve Cleveland President Loretta Mester 12:15 p.m. EDT
- Fed blackout period begins after the close.
M&A Activity and News:
- Jazz Pharmaceuticals (JAZZ) Said to Explore Options Including Sale. (Bloomberg)
- Masonite International (DOOR) announces that its U.S subsidiary has acquired Fleetwood Aluminum Products, LLC , for $285 million in cash.
- White Mountains (WTM) to Acquire a Majority Stake in Bamboo.
Meeting & Conferences of Note:
- Sellside Conferences: None of note.
- Previously posted and ongoing conferences: None of note.
- Top Shareholder Meetings: ACAQ, VSAC
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ENTA, ORIC, RVMD
- Update: None of note.
- R&D Day: None of note.
- Company Event:
- Industry Meetings:
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 is 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:
