Overnight Summary: The S&P 500 closed Monday at 3794.34 (higher by 1.19%) from Friday at 3752.74 (higher by 2.37%). The overnight high of 3812.75 was hit at 2:35 a.m. EDT. The low was hit at 3790 at 6:25 a.m. EDT, a range of 22.75 points high to low which is below the recent range of 45. At 7:05 a.m. EDT, the S&P 500 was down -9.50 points which is -0.25%.
Earnings Out After The Close:
- Beats: MEDP +0.51, SSD +0.49, LOGI +0.21, AAN +0.20, AGNC +0.15, CALX +0.11, CDNS +0.10, PCH +0.10, CLS +0.07, CATY +0.06, HSTM +0.06, XM +0.06, ARE +0.02, CADE +0.02, PKG +0.02, SSB +0.02, CR +0.01.
- Flat: HXL +0.00, HOPE +0.00, TBI +0.00.
- Misses: CCK (0.31), ZION (0.19), DFS (0.18), NWE (0.17), BRO (0.10), RRC (0.04), WRB (0.03), WSFS (0.02), IBTX (0.01).
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Ligand Pharma (LGND): Avista Public Acquisition Corp II (AHPA) shareholders approve previously announced business combination with OmniAb.
- Sizzle Acquisition Corp. (SZZL) and European Lithium AT announced SPAC merger agreement overnight (See M&A for full article)
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- DNLI: Announces Closing of a $316 Million Public Offering, Including Full Exercise of Underwriters’ Option to Purchase Additional Shares.
- PCVX: Commencement of Proposed Public Offering of Common Stock and Pre-Funded Warrants. BAC, Jefferies, SVB, Evercore and Guggenheim bookmanagers.
- STZ: Constellation Brands Announces Plan to Convert Common Stock Holding in Canopy Growth.
- Pricing of Over-Allotment/Notes: None of note.
- Direct Offering: None of note.
- Selling Shareholders of note:
- UEC: Filed Form S-3ASR.. 17,805,815 Shares of Common Stock by selling shareholders.
- Private Placement of Public Entity (PIPE):
- GRTS: Announces Private Placement Of $45.0 Million.
- TNXP: Announces Pricing Of $15 Million Private Placement Of Convertible Redeemable Preferred Stock..
- Mixed Shelf Offerings:
- SNES: Filed Form S-1.. $8,000,000 Mixed Shelf.
- Debt Filing/Notes: None of note.
- 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: WEBR +24%, MEDP +20%, AAN +16%, ARI +13%, XM +9%, ADTN +7%, CALX +6%, ARE +5%, TM +5%, COOK +4%.
- Trading Down: CCK -16%, ZION -6%, WRB -5%.
- News Since The Close:
- Stocks making the biggest moves after hours: DFS, CDNS, AMZN, PKG, ZBK, WRB (CNBC)
- Amazon (AMZN) freezes hiring in parts of lucrative web services division. (NY Post)
- Weber (WEBR) holder BDT Capital proposes acquisition at $6.25 per share in cash.
- Shadow rental supply: A Las Vegas homebuilder started leasing some new homes last month because it doesn’t expect home-buying demand to rebound soon. “People still want to own homes, but they simply can’t afford it. So the business plan has to change.” (WSJ Nick Timiraos)
- China Central Bank: To Raise Cross-border Macro Prudential Adjustment Ratio For Corporates And Financial Institutions To 1.25 From 1. (bring in foreign investment)
- Exchange/Listing/Company Reorg and Personnel News:
- Bill.com (BILL): Google (GOOG) Cloud CMO Alison Wagonfeld joins its Board of Directors.
- Invivyd (IVVD) Announces the Appointment of Christine Lindenboom to Board of Directors.
- PulteGroup (PHM) Announces Chief Operating Officer Succession Plan.
- Rockley Photonics (RKLY) Announces Receipt of Notice from NYSE of Non-Compliance with Continued Listing Standards.
- The Children’s Place (PLCE) appoints Sheamus Toal CFO.
- Treasure Global (TGL) Receives Nasdaq Notice on Late Filing of Its Form 10-K.
- Buyback Announcements or News:
- BayCom Corp (BCML) Announces Adoption of Stock Repurchase Program of up to 645,000 shares (~5% of outstanding shares).
- Viomi Technology Co., Ltd (VIOT) Announces US$10 Million New Share Repurchase Plan.
- Stock Splits or News:
- Hoth Therapeutics (HOTH) Announces a 1:25 Reverse Stock Split Effective Pre-Market Opening on October 26, 2022.
- Dividends Announcements or News:
- CYTO trading r/s price.
- Graphic Packaging (GPK) raises dividend 33%.
- Hess Midstream Partners (HESM) increases quarterly dividend to $0.5627 from $0.5559 per share.
- Laureate Education (LAUR) Announces Special Cash Dividend o f$0.68 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -11, Dow Jones -125, NASDAQ -6, and Russell 2000 -4. (as of 8:07 a.m. EDT). Europe lower ex France and Asia lower ex Japan. VIX Futures are at 29.81 from 29.60 yesterday morning and the VIX closed at 29.69 from 29.98 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower as well. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10-year Treasury sees yields at 4.175% from 4.167% yesterday. Bitcoin is at $19,286 from $19,388 yesterday morning and is lower by -0.40% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Consumer Defensive, Healthcare, Industrials, Technology, Financial, Communication Services, Utilities of note.
- Daily Negative Sectors: Basic Materials, Consumer Cyclical, Energy of note.
- One Month Winners: Energy, Basic Materials, Healthcare 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.
Markets shook of some overnight negative pricing to continue the positive market action. Indexes up over ~1%. TLT continues lower closing at 92.40, down 0.83%. UNG was up 4.26%.
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: MSFT, GOOG, V, TXN, CB, CNI, CMG, ENPH, CSGP, AMP, EQR, FE, SPOT, IEX, TER, BXP, JNPR, FFIV, MANH, MTDR, MASI, MAT, UHS, EGP, BYD, SKX, AXTA, KRC, FIBK, CHX, ZWS, UMBF, TENB, EQC, HIW, NCR, WIRE, NEX, MXL, VICR, WSBC, TRMK, LRN, RNST, ROIC, VBTX, AGYS, FCF, NXGN, HA, LXFR of note.
- Wednesday Before the Open: TMO, BMY, ADP, BA, GD, CME, BSX, NSC, KHC, APH, ROP, HES, IQV, ODFL, OTIS, FTV, ROL, TDY, GRMN, UMC, BG, AVY, STX, MAS, OC, PAG, BOKF, KBR, SF, BPOP, HOG, UBSI, DRVN, SLGN, TKR, EXP, SLAB, VRT, R, NYCB, BXMT, EDU, EVR, ALKS, WING, IART, TMHC, BCO, GPI, RES, FBC, CSTM, MNRO, CTS, CHEF, CAMT, PRG, WNC, TPB of note.
Earnings of Note This Morning:
- Beats: BIIB +0.66, UBS +0.52, PII +0.47, ADM +0.45, GM +0.37, HUBB +0.37, SHW +0.26, VLO +0.19, UPS +0.14, MSCI +0.13, SSTK +0.11, GPK +0.10, MMM +0.10, SYF +0.08, RTX +0.07, CNC +0.07, PNR +0.06, KO +0.05, POR +0.04, HAL +0.04, NVS +0.03, TRN +0.02, TRU +0.02, ARCC +0.01, SITC +0.01.
- Flat: FBP +0.00, GLW +0.00, ST +0.00.
- Misses: CLF (0.22), XRX (0.21), MCO (0.19), GE (0.14), PHM (0.12), SAP (0.12), AWI (0.11), IVZ (0.07), KMB (0.05), SBSI (0.03), JBLU (0.03).
- Still to Report: FELE , GATX , ITW , LKFN , NVR , ONB , PCAR , SFNC.
- Positive Guidance: XM, CDNS, CALX, IPAR, MEDP, AIN, AAN, ADTN, CLS, PII, KO, HUBB of note.
- Negative Guidance: HSTM, PKG, CCK, AWI, TRU, MMM, PNR, MCO, GLW of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: MEDP +25%, WEBR +23%, AAN +18%, XM +11%, CLS +7%, CALX +7%, ARI +6%, LOGI +5%, COOK +5%, EEFT +5%, UBS +4%, PRIM +4%.
- Gap Down: CCK -9%, HSII -7%, HSBC -7%, CR -5%, ZION -5%.
Insider Action: REPX, FITB, CCI stock sees Insider buying with dumb short selling. IMRA 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: KO, GM, JBLU, MMM, XRX, UPS, SAP, UBS, LOGI, XM (CNBC)
- Five Things to Know This Morning. (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Fed is Losing Billions, Wiping Out Profits That Funded Spending. (Bloomberg)
- Bloomberg Most Read Story: Adidas Ends Ye Partnership Kanye West. (Bloomberg)
- European Union ministers will debate a cap on natural gas prices. (WSJ)
- The U.K. has a new Prime Minister this morning Rishi Sunak. (CNBC)
- The Federal Reserve and other Central Banks are losing money as rates rise, governments might have to make up the difference. (Bloomberg)
- Royal Bank of Canada (RBC) looks to expand into UK consumer banking. (FT)
- General Motors (GM) has a strong beat in Q3 but strong headwinds ahead so cautious. (CNBC)
- Coca-Cola (KO) beats estimates and raises guidance. (CNBC)
- Adidas (ADDYY) ends partnership with Kanye West. (Bloomberg)
- Cronos Groups (CRON) was charged by the SEC with improperly accounting for millions of dollars of revenue and for other accounting issues. (SEC Release)
Moving Average Update:
- Score improves to 62% from 54%. Those string of 0% days are……gone?
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 10:15 a.m. EDT
- The President receives his updated COVID-19 vaccine and delivers remarks on the ongoing fight against the virus, 2:05 p.m. EDT
- Press Briefing by Press Secretary Karine Jean-Pierre, 2:45 p.m. EDT
- Redbook Sales 8:55 a.m. EDT
- August S&P Case-Schiller Home Price Index is due out at 9:00 a.m. EDT and is expected to come in at 14% from 16.1%.
- FHFA HPI 9:00 a.m. EDT
- October Consumer Confidence is due out at 10:00 a.m. EDT and is expected to come in at 104.7 from 108.
- Richmond Fed Mfg Index 10:00 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
- The latest NYSE and NASDAQ Short interest from September 28th through October 12th is released and during that time the S&P 500 fell -1.60%.
Federal Reserve / Treasury Speakers:
- We enter a blackout period for the Fed – No speakers until Fed Announcement on November 2nd.
- Canopy Growth (CGC) to acquire Acreage Holdings assets, including Acreage, Wana, and Jetty.
- Snap One (SNPO) acquires Parasol.
- European Lithium Is Said In Talks To Merge With Sizzle (SZZL) Acquisition (WSJ)
Meeting & Conferences of Note:
- Sellside Conferences:
- None of note.
- Previously posted and ongoing conferences:
- Company Meetings: None of note.
- Fireside Chat:
- Investor/Analyst Day/Calls: ICL, NBXG
- R&D Day:
- Company Event: None of note.
- Industry Meetings:
- AFP Conference
- LD Micro 15th Annual Main Event Conference 2022 (10/25/22-10/27/22)
- Sequire LD Micro Main Event Conference
- American Society of Human Genetics (ASHG) 2022 (10/25/22-10/29/22)
- 5th Annual Targeted Protein Degradation (TPD) Summit 2022 (10/25/22-10/28/22)
- Previously posted and ongoing conferences:
- American Society for Radiation Oncology Conference
- International Neurology & Brain Disorders Conference 2022 (10/24/22-10/26/22)
- BIO-Europe (10/24/22-10/26/22)
- Gartner ReimagineHR Conference USA 2022 (10/24/22-10/26/22)
- American College of Gastroenterology (ACG) Annual Scientific Meeting 2022 (10/21/22-10/26/22)
- American Society of Anesthesiology 2022 (10/21/22-10/25/22)
- ASRM Scientific Congress & Expo 2022 (10/22/22-10/26/22)
- American Society of Radiation Oncology (ASTRO) 64th Annual Meeting 2022 (10/23/22-10/26/22)
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: