Overnight Summary: The S&P 500 closed Monday at 3871.98 (lower by -0.75%) from Friday at 3901.06 (higher by 2.46%). The overnight high of 3922 was hit at 6:40 a.m. EDT. The low was hit at 3879.75 at 4:05 p.m. EDT, a range of 43 points high to low which is just below the recent range of 45. At 7:25 a.m. EDT, the S&P 500 was up +33.25 points at 3916 which is +0.86%.
Earnings Out After The Close:
- Beats: CAR +7.06, BCC +1.39, ACHC +0.85, SBAC +0.50, VAC +0.49, AMKR +0.35, SON +0.21, ANET +0.20, HOLX +0.20, AXNX +0.13, PSMT +0.12, AWK +0.12, HLF +0.11, PLOW +0.11, CHE +0.09, VNO +0.06, CINF +0.06, WMB +0.05, LSCC +0.04, NTB +0.04, CIVI +0.03, KFRC +0.03, HLIT +0.03, HTLF +0.02, LEG +0.02, OGS +0.02.
- Flat: ADUS +0.00, CNO +0.00, TREX +0.00, VRNS +0.00,.
- Misses: TEN (1.22), NXPI (0.87), RMBS (0.40), GT (0.15), FLS (0.15), SYK (0.11), AFL (0.07), IMAX (0.07), RHP (0.04), KMT (0.03).
- IPOs Priced or News: None of note.
- New SPACs launched/News:
- Welsbach Technology Metals Acquisition Corp. (WTMA): WaveTech Group and WTMA announce merger agreement; WaveTech plans to list on the Nasdaq Stock Market under ticker “WTG”.
- Secondaries Priced:
- NUVL: Pricing of Public Offering of Common Stock 6,865,672 shares @$33.50
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ONCS: Filed Form S-1.. $10 million Stock and Warrants.
- REED: Filed Form S-1.. Common Stock Offering.
- 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): None of note.
- Mixed Shelf Offerings:
- FNA: Filed Form S-3.. $100,000,000 Mixed Shelf — 10 million shares.
- NEX: Filed Form 8K – shelf registration statement.
- Debt Filing/Notes:
- BX: Prices $1.5 Billion Senior Notes Offering.
- 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: HOLX +6%, LSCC +5%, BSM +4%.
- Trading Down: VRNS -19%, GT -8%, TREX -6%, HLIT -6%, AXNX -5%, SYK -5%, VIR -4%.
- News Since The Close:
- Stocks making the biggest moves after hours: CAR, SYK, GT, HOLX, IDXX (CNBC)
- President Biden Warns Oil Firms He’ll Seek Tax on ‘Windfall’ Profits. (Bloomberg)
- Hologic (HOLX) stock jumps, as execs see ‘unprecedented strength’ entering new fiscal year. (MarketWatch)
- JP Morgan: “.. the disinflation phase has already begun .. bond yields are likely in the process of peaking out .. inflation prints .. will be meaningfully lower in 3-6 months’ time. Our economists project US core #CPI at 5.3% YoY rate in Q1, vs 6.6% currently ..” (CNBC)
- Stryker Corp. (SYK) stock falls after company lowers outlook for 2022. (MarketWatch)
- Avis Budget (CAR) stock rallies 6% after company’s Q3 earnings top views. (MarketWatch)
- Delta (DAL) pilots vote in favor of potential strike as contract talks drag on. (CNBC)
- Putin: We are not ending participation in grain export deal, just suspending it. WEAT (Reuters)
- General Electric (GE) awarded a not-to-exceed $1.085 billion U.S. Navy contract.
- Exchange/Listing/Company Reorg and Personnel News:
- AAMC Files Lawsuit Against Former Board Member Nathaniel Redleaf for Improperly Disclosing Confidential Information for Financial Gain.
- AMN Healthcare (AMN) selects Cary Grace as President and CEO.
- Baozun (BZUN) Announces Primary Listing on the Main Board of The Stock Exchange of Hong Kong Limited.
- CenterPoint (CNP) announces the promotion of Jason P. Wells, Executive Vice President and Chief Financial Officer, to the role of President and Chief Operating Officer.
- C.H. Robinson (CHRW) appoints Arun Rajan as COO.
- Cytek Biosciences (CTKB) appoints Chris Williams to COO role.
- Dollar General Corporation (DG) Adds Incoming CEO Jeff Owen to Board of Directors.
- HLF: Michael O. Johnson announced as Chairman and interim CEO.
- ImmunoGen (IMGN) Announces Departure of Chief Commercial Officer.
- IronNet (IRNT) Announces Receipt of Continued Listing Standard Notice from NYSE.
- LAVA Therapeutics (LVTX) announces the appointment of Fred M. Powell as Chief Financial Officer
- Quest Diagnostics (DGX) announces Jim Davis has succeeded Steve Rusckowski as the CEO and President of DGX.
- Red Robin Gourmet (RRGB) CFO Lynn Schweinfurth to retire.
- Tenneco (TEN) appoints Jeff Stafeil as CFO.
- USWS Halt – Additional Information Requested by NASDAQ.
- Buyback Announcements or News:
- BP announces $2.5 Billion buyback.
- Lithia Motors (LAD) increases share repurchase authorization by $450 mln to ~$500 million.
- Varonis (VRNS) Announces $100 Million Share Repurchase Authorization.
- Stock Splits or News: None of note.
- Dividends Announcements or News:
- Civitas Resources (CIVI) increases dividend by 11%.
- CAG Goes ex div tomorrow.
- CVR Energy (CVI) approves $1.00 per share special dividend.
- MPC announced that the Board of Directors approved an increase to the quarterly dividend to $0.75 per share, a 30% raise.
- MPLX increases quarterly cash distribution to $0.775 per share.
- Ryman Hospitality (RHP) reinstates quarterly dividend of $0.10 per share.
- Sirius XM (SIRI) declares dividend.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +41, Dow Jones +232, NASDAQ +150, and Russell 2000 +22. (as of 8:12 a.m. EDT). Europe is higher and Asia is higher as well. VIX Futures are at 27.10 from 27.85 yesterday morning and the VIX closed at 25.75 from 27.28 Friday. Gold, Silver and Copper higher. WTI Crude Oil and Brent Oil Futures higher with Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10-year Treasury sees yields at 3.937% from 4.042% yesterday. Bitcoin is at $20.524 from$20,740 yesterday morning and is higher by 0.60% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Energy of note.
- Daily Negative Sectors: Communication Services, Technology, Financial, Consumer Defensive, Utilities, Consumer Cyclical of note.
- One Month Winners: Energy, Industrials, Financials 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.
Stocks ended the final day of the month on a down note Monday, but still saw the Dow Jones Industrial Average log one of its strongest monthly performances of all time and its biggest October dollar gain on record as investors await the outcome of this week’s Federal Reserve meeting for clues to the size of future rate increases. The Dow DJIA, -0.39% fell around 129 points, or 0.4%, to close near 32,733, but posted a monthly gain of 13.95%, its strongest since January 1976. The S&P 500 SPX, -0.75% fell around 29 points, or 0.7%, to close near 3,872, logging a monthly rise of 8%. The Nasdaq Composite COMP, -1.03% fell around 114 points, or 1%, ending near 10,988, leaving it up 3.9% in October. (MarketWatch)
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: AMD, MDLZ, ABNB, MCK, PSA, DVN, AIG, PRU, EA, VRSK, OKE, EXR, EIX, PAYC, YUMC, ZI, CLX, FMC, PEAK, SCI, UNM, CZR, AIZ, HRB, VOYA, RNR, LTHM, CACC, LFUS, EXEL, WU, INSP, THG, ROG, CRK, UNVR, ATCO, CRUS, IRTC, BTG, AYX, REZI, SKY, CHGG, AEIS, MRCY, BLKB, FRPT, OI, MSTR, CWH, APAM, FCPT, KAI, SIMO, NMIH, CAKE, ATRC, ZETA, MIR, KAR, HURN, TSLX, PUMP, ANDE, PRO, SNCY, CNDT, VRAY, DENN, OSPN, BAND, SPNE of note.
- Wednesday Before the Open: CVS, EL, HUM, EMR, CVE, TEL, YUM, APO, ROK, ZBH, CDW, BIP, VMC, ETR, MLM, HZNP, TRMB, PARA, ENTG, CHRW, CRL, UTHR, JLL, GNRC, NNN, CLH, NCLH, SITE, NYT, PSN, KNBE, ATI, ALKS, OMCL, UAA, VSH, AVNT, BDC, ENOV, GOOS, ACIW, LIVN, SMG, ARVN, SHOO, FUN, EXPI, ODP, THRM, XHR, MTRN, AVDX, DNOW, SBGI, EAT, FDP, OMI, DFIN, DIN, CAMT, RDWR, AVNS, ASTE, EDIT, HRTX, TUP, LL of note.
Earnings of Note This Morning:
- Beats: ICPT +1.80, PSX +1.43, MPC +0.78, NPO +0.77, BLD +0.72, BP +0.64, IT +0.54, MPLX +0.53, LGIH +0.48, HLNE +0.43, PFE +0.38, ABMD +0.27, STNG +0.25, LPX +0.21, LEA +0.20, IDXX +0.19, HSC +0.16, XYL +0.13, ESPR +0.12, WEC +0.10, RGEN +0.09, TRTN +0.09, SEE +0.08, AME +0.08, ARCB +0.08, CVLT +0.07, TRI +0.07, WAT +0.06, SPG +0.05, LLY +0.05, BCRX +0.03, HAYW +0.02, CNP +0.02, EPD +0.02, LDOS +0.02, LCII +0.02, AGCO +0.02, PACK +0.02, SAFE +0.02, ETN +0.01, AJRD +0.01, HSIC +0.01, WAB +0.01.
- Flat: None of note.
- Misses: KKR (0.98), ARNC (0.89), UBER (0.67), ZBRA (0.41), SUN (0.38), CIGI (0.23), AVA (0.22), CTLT (0.22), INCY (0.10), NEM (0.07), PINC (0.07), TECH (0.05), NBIX (0.04), TAP (0.03), ETRN (0.03), PBI (0.02), SOFI (0.02), BCOR (0.01), SIRI (0.01), DEA (0.01), ECVT (0.01).
- Still to Report: BEN , BPMC , ECL , FOXA , IPGP , MYGN , SYY.
- Positive Guidance: NSP, LSCC, SBAC, AXNX, ANET, CHE, VAC, SONY, IT, PFE, BLD, AME, XYL, BCOR, SOFI, SPG, BPMC of note.
- Negative Guidance: NXPI, VRNS, KMT, SYK, FLS, LEG, OTTR, ECVT, LLY, HSIC, NPO, WAT, SEE, CTLT, IPGP of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: LI +10%, NIO +9%, HOLX +8%, CIVI +7%, MLCO +7%, HLF +5%, GME +5%, BSM +5%, LSCC +4%, RRGB +4%, CAR +4%, LVS +4%, PLOW +4%, WYNN +4%, NVTA +4%, XPEV +4%.
- Gap Down: VRNS -31%, HLIT -9%, TREX -8%, GT -7%, SSL -6%, SYK -5%, CLW -4%, AXNX -4%.
Insider Action: TRS, NGM sees Insider buying with dumb short selling. No stock 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: ABMD UBER SOFI PFE GT LLY HOLX SYK CAR TREX (CNBC)
- Five Things to Know This Morning. (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- Bloomberg Lead Story: Bonds Rally With Powell’s Favored Curve Poised for Inversion. (Bloomberg)
- Bloomberg Most Read Story: Democrats Prepare For Loss of Congress as Voters Break Late to GOP. (Bloomberg)
- OPEC Mulls Biggest Supply Cut Since 2020. (Bloomberg)
- EU to start a probe on Microsoft (MSFT) purchase of Activision (ATVI). (Politico)
- China chip restrictions could be less than expected. (Bloomberg)
- Credit Suisse (CS) not considering a sale. (Bloomberg)
- UPS to hire 60,000 seasonal workers. (MarketWatch)
Moving Average Update:
- President’s Public Schedule:
- The President receives the Presidential Daily Briefing, 9:00 a.m. EDT
- The President departs the White House en route Joint Base Andrews, 11:05 a.m. EDT
- The President departs Joint Base Andrews en route Fort Lauderdale, Florida, 11:35 a.m. EDT
- The President arrives in Fort Lauderdale, Florida, 1:50 p.m. EDT
- The President delivers remarks on protecting Social Security and Medicare and lowering prescription drug costs, 3:00 p.m. EDT
- The President participates in a reception for gubernatorial candidate Charlie Crist, 4:45 p.m. EDT
- The President departs Golden Beach, Florida, 5:45 p.m. EDT
- The President arrives in Miami, Florida, 5:55 p.m. EDT
- The President participates in a political event for the Democratic Party, senatorial candidate Val Demings, and gubernatorial candidate Charlie Crist, 7:00 p.m. EDT
- The President departs Miami, Florida en route Fort Lauderdale, Florida, 8:05 p.m. EDT
- The President departs Fort Lauderdale, Florida en route Joint Base Andrews, 8:25 p.m. EDT
- The President arrives at Joint Base Andrews, 10:25 p.m. EDT
- The President departs Joint Base Andrews en route the White House, 10:35 p.m. EDT
- The President arrives at the White House, 10:45 p.m. EDT
- Redbook Sales 8:55 a.m. EDT
- PMI Manufacturing Final 9:45 a.m. EDT
- October ISM Manufacturing is due out at 10:00 a.m. EDT and is expected to come in at 50% from 50.9%.
- September Construction Spending is due out at 10:00 a.m. EDT and is expected to come in at -0.5% from -0.7%.
- JOLTS 10:00 a.m. EDT
- API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
- We enter a blackout period for the Fed – No speakers until Fed Announcement on November 2nd.
- Atlas Corp. (ATCO) to be Acquired by Poseidon Acquisition Corp. for $15.50 in Cash Per Share.
- Johnson & Johnson (JNJ) to acquire Abiomed (ABMD) for $380/share in cash. (Fox)
- Sealed Air (SEE) to acquire Liquibox for $1.15 billion.
- SNDL Acquires Zenabis Business.
- Victoria’s Secret & Co. (VSCO) Signs Definitive Agreement to Acquire Adore Me, Inc.
Meeting & Conferences of Note:
- Sellside Conferences:
- None of note.
- Previously posted and ongoing conferences:
- Gabelli 46th Annual Automotive Aftermarket Symposium 2022 (10/31/22-11/03/22)
- Bank of America Securities China Conference 2022 (10/31/22-11/11/22)
- Goldman Sachs China Conference 2022 (10/31/22-11/04/22)
- Company Meetings: MAQC.
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: BPMC, CRTO.
- Update: None of note.
- R&D Day:
- Company Event:
- Industry Meetings:
- Association of Molecular Pathology 2022 (AMP) (11/01/22-11/05/22)
- F3 Future of Freight Conference 2022 (11/01/22-11/03/22)
- Northeast Amyotrophic Lateral Sclerosis Consortium (NEALS) Annual Meeting 2022 (11/01/22-11/03/22)
- ObesityWeek 2022 40th Annual Scientific Meeting of the Obesity Society (11/01/22-11/04/22)
- International Congress for Ataxia Research (ICAR) 2022 (11/01/22-11/04/22)
- Previously posted and ongoing conferences:
- America’s Physician Groups Colloquium 2022 (10/31/22-11/02/22)
- Vascular InterVentional Advances (VIVA) Annual Conference 2022 (10/31/22-11/03/22)
- American Conference on Pharmacometrics (ACoP) 13th Annual Meeting 2022 (10/30/22-11/02/22)
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: