Overnight Summary: The S&P 500 closed Wednesday at 3759.69 (lower by -2.50%) from Tuesday at 3856.10 (lower by -0.41%). The overnight high of 3782.50 was hit at 1:35 a.m. EDT. The low was hit at 3741.75. at 6:50 a.m. EDT, a range of 40 points high to low which is just below the recent range of 45. At 7:15 a.m. EDT, the S&P 500 was lower by -21.75 points at 3747 which is -0.58%.
Breaking News: Bank of England raises its benchmark rate by 75 basis points, its biggest hike in 33 years (CNBC)
Earnings Out After The Close:
- Beats: BKNG +3.18, EQIX +2.70, NVRO +1.95, NGVT +1.21, QDEL +1.16, RUN +1.03, ALB +0.51, EVH +0.49, HCC +0.38, ROKU +0.35, MTG +0.33, MKSI +0.29, DCP +0.28, ZG +0.27, WTS +0.24, IIPR +0.23, HUBS +0.22, EQH +0.22, AFG +0.21, WSC +0.21, ELF +0.20, VMEO +0.19, APA +0.19, SLF +0.16, STAA +0.16, WWE +0.15, MATX +0.15, VCYT +0.14, VRRM +0.13, CCRN +0.12, PTC +0.12, ANSS +0.12, QRVO +0.12, TTMI +0.12, SITM +0.12, WK +0.11, RIG +0.11, TXG +0.11, HOOD +0.11, EPR +0.09, RPD +0.09, QLYS +0.09, WCN +0.08, CDAY +0.08, RVLV +0.08, MRO +0.07, LSI +0.07, GKOS +0.07, NARI +0.07, CWAN +0.07, ORA +0.07, ACA +0.07, EBAY +0.07, ACLS +0.06, ICLR +0.06, FARO +0.06, SRI +0.06, FTNT +0.06, AMPL +0.05, RCII +0.05, CW +0.05, FLT +0.05, PAA +0.04, MET +0.04, CFLT +0.04, INFN +0.04, SKT +0.04, ALL +0.03, EVOP +0.03, HTGC +0.03, IR +0.03, ACAD +0.03, FSLY +0.03, RSI +0.03, PK +0.03, LAZR +0.02, TWNK +0.02, RPT +0.02, MC +0.02, RLJ +0.02, HPP +0.02, OHI +0.02, BCOV +0.02, PYCR +0.02, FROG +0.02, USPH +0.02, SJI +0.01, MRVI +0.01, POWI +0.01, CTSH +0.01, VSTO +0.01.
- Flat: PDM +0.00, NSA +0.00, QCOM +0.00.
- Misses: LNC (12.02), ETSY (7.98), SRPT (2.20), MGM (1.52), CF (1.14), RARE (1.10), TNDM (0.71), TPC (0.64), KMPR (0.60), ECPG (0.52), PCOR (0.35), NUS (0.31), PDCE (0.28), RYN (0.26), YELL (0.26), LHCG (0.26), PTRA (0.24), KW (0.24), PLMR (0.23), LUMN (0.21), ONEM (0.19), EVTC (0.18), SIGI (0.18), ATUS (0.16), UDMY (0.15), RELY (0.13), ESTE (0.12), RGR (0.11), ALGT (0.10), CLR (0.09), WES (0.08), FSR (0.07), EVGO (0.07), WERN (0.07), ES (0.05), CPE (0.04), BKH (0.04), CXW (0.03), RGLD (0.02), HST (0.01), ONL (0.01), SUM (0.01), O (0.01), GFL (0.01).
- IPOs Priced or News:
- Acrivon Therapeutics (ACRV) launches 5.9 million share IPO; expected to price between $16-$18 per share.
- New SPACs launched/News:
- Flame Acquisition Corp. (FLME) Announces Business Combination Transaction
- Secondaries Priced: None of note.
- Notes Priced of note: None of note.
- Common Stock filings/Notes:
- ONL: Filed Form S-3.. 1,120,000 Shares of Common Stock — $750 Million Mixed Shelf
- QNGY: Closing of $16.7 Million Upsized Underwritten Public Offering
- SOVO: Filed Form S-3… 61,103,119 Shares of Common Stock
- 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:
- ALLO: Files mixed securities shelf offering.
- CHCT: Files mixed securities shelf offering.
- OBNK: files mixed securities shelf offering.
- 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: NRDS 20%, ELF 12%, CFLT 12%, HUBS 11%, INFN 11%, VMEO 11%, ETSY 10%, EBAY 7%, RUN 7%, EPR 7%, ORCC 6%, PCOR 6%, LSI 5%, HCC 5%, ESTE 5%, RIG 5%, HTGC 5%, BKNG 5%, AMPL 4%, CCRN 4%.
- Trading Down: TNDM -23%, ROKU -18%, LNC -16%, LUMN -15%, ATUS -14%, MRVI -12%, RPD -12%, FTNT -11%, QLYS -10%, RGLD -7%, VSTO -7%, RDN -7%, QCOM -7%, STAA -7%, MKSI -6%, ACAD -6%, CTSH -5%, CXW -5%, ASND -5%, BCOV -5%, PBPB -4%, SRPT -4%, YELL -4%, CF -4%, ECPG -4%.
- News Since The Close:
- Stocks making the biggest moves after hours: ROKU, QCOM, ETSY, MGM, FTNT, CTSH, HOOD, Z (CNBC)
- Apple (AAPL) to Keep Qualcomm (QCOM) Chips in 2023 in Turnabout. (Bloomberg)
- Qualcomm (QCOM) shares fall on first-quarter guidance, hiring freeze announced. (CNBC)
- MGM Resorts (MGM) reports surprise loss, stock drops. (MarketWatch)
- Federal Reserve Approves Fourth 0.75-Point Rate Rise, Hints at Smaller Hikes Going Forward. Fed Funds Now At 4.00%. (WSJ)
- Lumen Technologies (LUMN) stock drops 14% after Q3 earnings, sales miss. (MarketWatch)
- ROKU stock plunges as downbeat earnings forecast assume ad budgets could ‘degrade’. (MarketWatch)
- AMC Q3 results on deck: Will the meme stock darling shake off concerns of a box office slowdown? (MarketWatch)
- Exchange/Listing/Company Reorg and Personnel News:
- Athenex (ATNX) Announces Receipt of Positive Nasdaq Listing Determination.
- Addex (ADXN) gets Nasdaq non-compliance notice.
- Coterra Energy (CTRA) appoints Thomas E. Jorden, its President and CEO, as Chairman of the Board.
- Coinbase (COIN) chief product officer to step down as company reorganizes business. (MarketWatch)
- Exelon (EXC) CEO Chris Craine will retire at end of year; Board has elected COO Calvin Butler Jr. to take over.
- KLA Corporation (KLAC) announces that its Board of Directors has appointed Robert Calderoni as chair effective immediately.
- Porch Group (PRCH) appoints Shawn Tabak as CFO.
- Potbelly (PBPB) extends contract for CEO thru 2025.
- Roku (ROKU) CFO Louden to leave.
- Rubius Therapeutics (RUBY) Announces Process to Explore Strategic Alternatives and Leadership Changes.
- Teekay Corporation (TK) announces Vince Lok’s retirement as Teekay’s Executive Vice President and Chief Financial Officer.
- Tuya Inc. (TUYA) Announces Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price.
- Tyra Biosciences (TYRA) CFO Esther van den Boom will be stepping down.
- Buyback Announcements or News:
- CF Industries (CF) announces new $3 billion share repurchase.
- Cognizant Tech (CTSH) increased its share repurchase authorization by $2 billion. (See Dividends)
- ConocoPhillips (COP) Announces Increase in Existing Share Repurchase Authorization by $20 Billion. (See Dividends)
- ING Groep (ING) reports Q3 results; announces €1.5 bln share buyback.
- LUMN announces elimination of dividend, $1.5B buyback program.
- MYR Group Inc. (MYRG) Announces New $75 Million Share Repurchase Program.
- Orion Office REIT (ONL) approves $50 million share repurchase program.
- Owl Rock Capital (ORCC) announces approval of a $150 million stock repurchase program. (See Dividends)
- Power Integrations (POWI) authorizes $100 million share repurchase.
- QRVO Announces $2 Billion Share Repurchase Program.
- Stock Splits or News:
- Quotient Limited (QTNT) Announces Reverse Stock Split Effective Today.
- Dividends Announcements or News:
- Cognizant Tech (CTSH) declared a quarterly cash dividend of $0.27 per share.
- ConocoPhillips (COP) Announces 11% Increase to Quarterly Ordinary Dividend, Declares Variable Return of Cash Distribution.
- Cogent Communications (CCOI) increased quarterly dividend to $0.915 per share.
- Huntington Ingalls (HII) increases quarterly cash dividend $0.06 to $1.24 per share.
- Northern Oil & Gas (NOG) increases quarterly dividend on common stock to $0.30 per share, up $0.05.
- Park Hotels & Resorts (PK) expects to declare Q4 dividend before end of year.
- Owl Rock Capital (ORCC) increases quarterly regular dividend by $0.02 to $0.33 per share. In addition to the regular dividend, co introduces a quarterly supplemental dividend framework; announces $0.03 per share supplemental dividend based on Q3 results.
- Renren (RENN) Declares Special Cash Distribution for Settlement Regarding Shareholder Derivative Litigation.
- Sun Life (SLF) increases quarterly dividend 4% to $0.72 per share.
- The Virtu Financial, Inc. (VIRT) Board of Directors declared a quarterly cash dividend of $0.24 per share.
- Waste Connections (WCN) increases quarterly dividend to $0.255 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -26, Dow Jones -130, NASDAQ -94, and Russell 2000 -11. (as of 8:16 a.m. EDT). Europe and Asia lower. VIX Futures are at 25.86 from 26.75 yesterday morning and the VIX closed at 25.81 from 25.75 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower as well. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10-year Treasury sees yields at 4.191% from 4.038% yesterday. Bitcoin is at $20,250 from $20,432 yesterday morning and is lower by -0.16% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: None of note.
- Daily Negative Sectors: All but highlighted are Technology, Consumer Cyclical, Basic Materials, Communication Services, Real Estate, Industrials 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.
U.S. equities finished lower with the Dow whipsawing within a more than 900-point range following the Fed’s monetary policy decision. The Central Bank raised rates by 75 basis points for a fourth-straight meeting, but opened the door to slowing within its statement. However, in his presser following the announcement, Chairman Powell reiterated that any notion of a pause was premature. Treasury yields were mixed and the U.S. dollar traded to the upside, while crude oil prices gained ground, and gold saw a modest loss. (Schwab)
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)
- Thursday After the Close: AMGN, SBUX, EOG, CTVA, MNST, MELI, MSI, SQ, MCHP, ILMN, ED, MTD, AVB, CTRA, AEE, NET, LYV, DASH, AES, PODD, EXPE, VTR, WPM, TWLO, SWKS, BILL, PCTY, GDDY, CE, CGNX, FRT, OTEX, FND, DXC, PEN, COLD, MTZ, NFG, EXAS, MP, NVST, SM, SWCH, GH, CYTK, CABO, NTRA, SYNA, PGNY, BECN, DNLI, ARWR, FOXF, VIAV, SPT, BE, DEI, SPXC, CVNA, SEM, VIR, STEP, OUT, KWR, YELP, CWK, USM, ICFI, TRUP, ATSG, DRH, MNRL, ATGE, MAXR, MDRX, HMN, IOVA, CMP, ALKT, OPK, DH, HRT, CODI, KTOS, MED, RCKT, CRSR, CYRX, KROS, PRAA, SPCE, LPI, FRG, SXI, MNTV, GDYN, BIGC, PLYA, OEC, CDNA, CUTR, AOSL, TMST, IGMS, SGMO, NKTR, YMAB, MAX, QNST, COLL, CHUY, BLUE, CMBM, MITK, LASR, BOOM, RMAX, TPIC, LOCO, CDXS, NDLS, UPLD of note.
- Friday Before the Open: ENB, DUK, D, HSY, TU, CAH, PPL, WPC, MGA, CBOE, LAMR, DKNG, HUN, SYNH, FLR, ESNT, PNM, GTES, DBRG, ABR, TEN, IMGN, EAF, CNK, PRLB, MBUU, AMCX, AXL, QRTEA, FUBO, TILE, KOP of note.
Earnings of Note This Morning:
- Beats: DEN +2.81, REGN +1.52, AER +0.82, TREE +0.64, EPAM +0.57, PH +0.57, MDU +0.48, H +0.39, TNK +0.39, CROX +0.36, KROS +0.34, CI +0.33, BHC +0.32, APTV +0.28, ITCI +0.27, SPR +0.24, PENN +0.23, MUR +0.23, LANC +0.22, AGIO +0.22, OGN +0.22, IBP +0.20, SRE +0.19, KTB +0.18, COP +0.16, LNTH +0.16, QSR +0.16, CYBR +0.15, BALL +0.14, APD +0.13, ROCK +0.13, MGPI +0.12, OGE +0.12, ATHM +0.11, BRKR +0.10, GOLF +0.08, WCC +0.07, SRCL +0.07, NVMI +0.07, ISEE +0.07, DDOG +0.07, STRA +0.07, VIRT +0.07, W +0.06, LSPD +0.06, ALIT +0.06, BBIO +0.06, IDA +0.05, EXC +0.05, DLX +0.05, DFH +0.05, INGR +0.05, BCE +0.04, ICE +0.04, UAA +0.04, NVEI +0.04, COMM +0.04, GIL +0.04, FLWS +0.03, TPX +0.03, ITT +0.03, HLMN +0.03, ADT +0.03, DCPH +0.03, HII +0.03, PBH +0.02, ABC +0.02, GOLD +0.02, IRWD +0.01, MTSI +0.01, JCI +0.01, MAR +0.01.
- Flat: SHAK +0.00, DSEY +0.00, LXP +0.00, SWI +0.00, CIM +0.00, APG +0.00, IRM +0.00, VNT +0.00, PWR +0.00.
- Misses: LNG (14.42), CQP (3.34), CMI (1.62), WLK (1.22), TX (1.17), GPRE (1.02), MRNA (0.58), CARS (0.53), PTON (0.53), CCOI (0.40), SWTX (0.32), RGNX (0.26), BALY (0.23), WOW (0.23), IMOS (0.22), NTLA (0.21), FOCS (0.15), MD (0.14), KRTX (0.13), WMS (0.09), PZZA (0.07), MODV (0.05), KYMR (0.04), CSII (0.04), THRY (0.04), TEVA (0.03), ZTS (0.03), GOGO (0.02), DNB (0.01), FIS (0.01), ESMT (0.01), MAC (0.01).
- Still to Report: ARW , AAWW , BKI , CRC , FSS , FTDR , GTN , NSIT , IDCC , ITRI , K , MFA , NKLA , PCRX , BTU , DOC , PNW , PTLO , RCL , SPNS , STOR , UNIT.
- Positive Guidance: RACE, NNN, CFLT, WSC, FTNT, AMPL, WCN, PCOR, QLYS, TWNK, NARI, PYCR, ELF, ORA, NGVT, ACLS, VCYT, CCRN, SRI, CWAN, RELY, SOVO, CI, MODV, OGE, ABC, MAR, IDA of note.
- Negative Guidance: ATI, RDWR, PTC, QRVO, STAA, POWI, CTSH, QCOM, RCII, ROKU, FSLY, ZG, EQIX, BCOV, NSA, BKH, WK, RPD, EVTC, ANSS, RSI, MKSI, TTMI, NUS, ALB, VMEO, UDMY, VSTO, CW, PDM, NTR, EPAM, VNT, TPX, WMS of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
- Gap Up: NRDS 19%, VCYT 11%, ETSY 11%, VMEO 10%, ELF 10%, INFN 9%, HUBS 9%, RUN 8%, EBAY 7%, CFLT 7%, ACAD 7%, ORCC 7%, ING 7%, RIG 6%, PCOR 6%, AFG 5%, LSI 5%, EPR 5%, PYCR 5%, PDM 5%, SU 5%, ADCT 5%, BKNG 5%, SOVO 5%, AMPL 4%, HTGC 4%, EVGO 4%, IR 4%, CCRN 4%, EPAM 4%.
- Gap Down: LNC -26%, ATUS -23%, TNDM -23%, ROKU -20%, LUMN -16%, MRVI -15%, FTNT -13%, RPD -12%, RSI -11%, RGR -10%, CTSH -9%, VSTO -9%, FSR -8%, QCOM -8%, SBSW -7%, EQX -7%, QLYS -7%, SITM -6%, NTR -5%, TTMI -5%, ASND -5%, NUS -5%, CXW -5%, BCOV -5%, SRPT -5%, YELL -5%, ECPG -5%, MGM -5%, VNT -5%, ALGT -5%, PBPB -4%, UDMY -4%, VRRM -4%.
Insider Action: BMRN, UMBF 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: (CNBC)
- Five Things to Know This Morning. (CNBC)
- Five Things You Need to Know to Start Your Day. (Bloomberg)
- BOE to deliver biggest rate increase in 33 years today. (Bloomberg)
- Bloomberg Lead Story: Sell-Off Deepens as BOE In Focus After Fed Warning. (Bloomberg)
- Bloomberg Most Read Story: Elon Musk “aka the ax murderer” to cut half of all jobs at Twitter to cut costs and pocket more money. (Bloomberg)
- Peloton (PTON) shares tumble to a new low. (CNBC)
- Moderna (MRNA) share also “tumble 4 ya” as lowers sales outlook. (CNBC)
- Restaurant Brands (QSR) shares higher as Americans seek comfort food at Burger King and Tim Hortons. (CNBC)
Moving Average Update:
- Score drops to 25% from 60%. Don’t make me bust out the Star Trek quotes about needing more power!
- 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, 10:30 a.m. EDT
- The President departs Joint Base Andrews en route Albuquerque, New Mexico, 10:50 AM
- The President arrives in Albuquerque, New Mexico, 2:35 p.m. EDT
- The President delivers remarks on student debt relief, 3:45 p.m. EDT
- The President participates in a rally for the Democratic Party, 5:45 p.m. EDT
- The President departs Albuquerque, New Mexico en route San Diego, California, 6:55 p.m. EDT
- The President arrives in San Diego, California, 8:35 p.m. EDT
- The President participates in a political event for congressional candidate Mike Levin, 9:30 p.m. EDT
- Challenger Job Cut 7:30 a.m. EDT
- Challenger Job Cuts (Oct) Yoy 48.3% Vs 67.6% Prior
- International Trade in Goods 8:30 a.m. EDT
- Initial Jobless Claims 8:30 a.m. EDT
- Productivity and Costs 8:30 a.m. EDT
- PMI Composite Final 9:45 a.m. EDT
- September Factory Orders are due out at 10:00 a.m. EDT and is expected to rise to 0.3% from 0.0%.
- October ISM Non-Manufacturing is due out at 10:30 a.m. EDT and are expected to fall to 55.2% from 56.7%.
- EIA Natural Gas Report 10:30 a.m. EDT
Federal Reserve / Treasury Speakers:
- Arthur J. Gallagher (AJG) acquires Doyle Insurance Brokers Limited.
- Bakkt (BKKT) to Acquire Apex Crypto.
- Darling Ingredients Inc. (DAR) to Acquire Polish Rendering Company Miropasz.
- Datadog (DDOG) acquires visualization service for cloud and system architects, Cloudcraft.
- Marathon Oil (MRO) Announces Eagle Ford Acquisition.
- The Real Brokerage (REAX) acquires Redline Real Estate Group in British Columbia.
- Veris Residential (VRE) says it unanimously rejected Kushner Companies’ unsolicited proposals to acquire for $16 per share.
Meeting & Conferences of Note:
- Sellside Conferences:
- Jefferies CIO Summit
- Previously posted and ongoing conferences:
- Berenberg US CEO Conference
- 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: BXRX
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: ANET, CLSK, RKFL, SLB, TWLO, VEEV
- Update: None of note.
- R&D Day:
- Company Event:
- Ambev (ABEV) – ESG Update 2022
- Advanced Micro Devices (AMD) RDNA 3 Graphics Generation Event (https://ir.amd.com/news-events/press-releases/detail/1096/amd-to-host-livestream-event-to-unveil-amd-rdna-3-graphics
- Industry Meetings:
- American Society of Nephrology ASN Annual Meeting – Kidney Week 2022 (11/03/22-11/06/22)
- BancAnalysts Association of Boston Conference 2022 (11/03/22-11/04/22)
- Innovations in Dermatology Conference 2022 (11/03/22-11/05/22)
- Previously posted and ongoing conferences:
- 33rd International Symposium on the Autonomic Nervous System 2022 (11/02/22-11/05/22)
- Bio-EuropeConference (11/02/22-11/04/22)
- Festival ofBiologics2022 (11/02/22-11/04/22)
- The Retina Society Annual Scientific Meeting (11/02/22-11/05/22)
- 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)
- Vascular InterVentional Advances (VIVA) Annual Conference 2022 (10/31/22-11/03/22)
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: