Overnight Summary: The S&P 500 closed Monday at 3806.80 (higher by 0.96%) from Friday at 3770.42 (higher by 1.36%).  The overnight high of 3831.50 was hit at 6:55 a.m. EDT. The low was hit at 3800 at 3:20 a.m. EDT, a range of 31 points high to low which is below the recent range of 45.  At 7:10 a.m. EDT, the S&P 500 was higher by +15.25 points at 3830.50 which is +0.40%.

Earnings Out After The Close: 

• IPOs Priced or News: None of note.
• New SPACs launched/News: None of note.
• Secondaries Priced:
  • ARCC: Prices Public Offering.
  • LXU: Announces Pricing of Secondary Offering of 14,350,000 Shares of Common Stock by Selling Stockholder with the Company Repurchasing 3,500,000 of the Shares.
  • MRNS: 10.5M shares offering priced at $4.75/share.
  • ROIV: Announces Pricing of Primary and Secondary Public Equity Offering 30 million shares priced at $5.
  • VZLA: Announces bought deal financing of 13.8 mln common shares at $1.45 per unit.
• Notes Priced of note:
  • HUM: Prices $1.25 Billion Debt Offering.
  • UVSP: Announces Pricing of $50.0 Million Subordinated Notes Offering.
• Common Stock filings/Notes:
  • ABC: Secondary Public Offering of Common Shares and Common Share Repurchase.  Walgreens Boots Alliance (WBA) Announces Offering of 10 Million Shares of AmerisourceBergen Corporation (ABC).
  • ARCC: Public Offering 8Million shares. MS, BAC, UBS, RBC and WFC Bookmanagers.
  • ATHX: Proposed Public Offering. AGP Placement Agent.
  • CGTX: Filed Form S-1.. 5,586,592 Shares of Common Stock.
  • MARK: Filed Form S-1.. 29,932,823 Shares of Common Stock.
  • MRNS: Proposed Public Offering. SVB, RBC and Cantor bookmanagers.
  • ROIV: Proposed Public Equity Offering. $150 Million — Cantor bookmanager.
• 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:
  • AKYA: Form S-3 Filed $150,000,000 Mixed Shelf.
  • BRBS: files $100 million mixed securities shelf offering.
  • DBGI: Filed Form S-1 .. Mixed Shelf offering.
  • DCO: Filed Form S-3.. $300,000,000 Mixed Shelf.
  • ETRN: Filed Form S-3ASR.. Mixed Shelf Offering.
  • TSVT: Filed Form S-3.. $400 Million Mixed Shelf.
  • VRCA: Filed Form S-3 .. $150 Million Mixed Security Shelf.
• Debt Filing/Notes:
  • DISH: Offering of $2,000,000,000 in Senior Secured Notes.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • WISA: Filed Form S-3.. Up to 9,739,485 Shares of Common Stock Consisting of Up to 7,200,000 Shares of Common Stock Issuable Upon Conversion of A Senior Secured Convertible Promissory 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: ROVR +14%, HIMS +12%, EHTH +11%, SEDG +9%, SANM +8%, LPSN +7%, TASK +6%, QGEN +6%, AMWL +6%, YMAB +4%, OSH +4%.
  • Trading Down: ATHX -44%, NSTG -18%, TTWO -16%, TRIP -16%, MRNS -15%, LYFT -14%, VECO -13%, FIVN -13%, UIS -8%, PACB -7%, ROIV -7%, FLGT -7%, QTWO -5%, MDT -5%, ABC -4%, MWA -4%, MTW -4%, SWAV -4%.

• News Since The Close:
  • Stocks making the biggest moves after hours: LYFT, TTWO, TRIP, FIVN, SYHN, GRPN (CNBC)
  • Foxconn Plans to Invest $170 Million in EV Truck Maker Lordstown Motors (RIDE). (WSJ)
  • LYFT CEO Says Not Seeing Demand Slow Down in Q4.
  • Take-Two (TTWO) stock tumbles after it cuts outlook. (CNBC)
  • Five9 (FIVN) stock drops on full-year revenue guidance. (MarketWatch)
  • Federal Reserve Richmond President Thomas Barkin: Fed will persist until inflation comes down.

• Exchange/Listing/Company Reorg and Personnel News:
  • Acacia Research (ACTG) CEO Clifford Press resigned on November 1; current COO Martin McNulty Jr appointed interim CEO.
  • Adidas Appoints Puma’s Gulden As New CEO.
  • Asbury Automotive Group, Inc. (ABG) Announces Appointment of Nathan Briesemeister as Vice President, Chief Accounting Officer & Controller.
  • Astronics (ATRO) files to delay its 10-Q.
  • BEST Inc. (BEST) Receives Notice Regarding NYSE Continued Listing Standards.
  • Broadmark Realty (BRMK) CEO Brian Ward resigns, effective immediately; names Chairman Jeffrey Pyatt as Interim CEO and Jonathan Hermes as CFO
  • NYSE To Suspend Trading Immediately In First High-school Education Group Co. Ltd. (FHS) And Commence Delisting Proceedings.
  • Fulcrum Therapeutics (FULC) appoints Santiago Arroyo as Chief Medical Officer.
  • PowerSchool (PWSC) Appoints New Leadership Positions to Lead Continued Company Growth.
  • Riot Blockchain (RIOT) receives non-compliance letter from NASDAQ.
  • R1 RCM (RCM) announces Lee Rivas to succeed Joseph Flanagan as Chief Executive Officer.
  • Southwest Gas (SWX) appoints Robert J. Stefani as Senior Vice President and Chief Financial Officer.
  • Unisys (UIS) files form 10-NT to delay 10-Q filing.
  • Westport (WPRT) Receives Nasdaq Notification Regarding Minimum Bid Price Compliance.
  • WPP: Announced that Chief Financial Officer John Rogers has decided to step down from the company.
  • Zai Lab (ZLAB) appoints Dr. Peter Huang as its Chief Scientific Officer.
• Buyback Announcements or News:
  • AAON (see Dividend)
  • DuPont (DD) Board Approval Of New $5.0 Billion Share Buyback Program.
  • Enova International (ENVA) authorizes increase to its share repurchase program of up to $150 million.
  • PLNT: Board authorizes new $500 million share repurchase program.
• Stock Splits or News:
  • KERN trading r/s price.
  • Versus Systems (VS) Announces 1-For-15 Reverse Stock Split To Aid Compliance with Nasdaq Listing Requirements.
• Dividends Announcements or News:
  • AAON: Increases Semi-Annual Cash Dividend & Authorizes $50 Million for Stock Buyback Program
  • Alliant Energy (LNT) increases its 2023 expected annual common stock dividend target to $1.81 per share from the current annual common stock dividend target of $1.71 per share, a 6% increase.
  • Intl Game Tech. PLC (IGT) Board of Directors declared a quarterly cash dividend of $0.20 per common share. 
  • Investors Title Company (ITIC) declares special dividend of $3.00 per share.
  • IBM Goes ex div tomorrow for $1.65.

What’s Happening This Morning: Futures value reflects the change with fair value.

Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):  

• Daily Positive Sectors: Communication Services, Technology, Industrials, Energy, Health Care, Financial of note.
• Daily Negative Sectors: Utilities of note.
• One Month Winners:  Energy, Industrials, Consumer Defensive of note.
• Three Month Winners:  Energy of note.
• Six Month Winners: Energy of note.
• Twelve Month Winners: Energy, Utilities of note.
• Year to Date Winners: Energy of note.

U.S. stocks rose Monday ahead of a crowded week of corporate earnings, inflation data and midterm elections that could see a shift to Republican control of one or both chambers of Congress.  This week, traders are focused on Tuesday’s midterm elections and Thursday’s inflation data for October. The closely watched report is expected to show consumer prices increasing at an annual rate of 7.9%, down from 8.2% the month before. Corporate earnings are also due from such companies as Walt Disney, Occidental Petroleum and Adidas. (WSJ)

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)

Gap Ups & Down In Early Pre-Market:

• Gap Up: HIMS +22%, ROVR +16%, RIDE +12%, TWOU +11%, TASK +11%, LPSN +11%, SEDG +10%, PRIM +8%, EHTH +7%, ARRY +6%, SANM +5%, FN +5%, ME +5%, LGND +5%, ENVA +5%, YMAB +4%, NFE +4%, PTVE +4%.
• Gap Down: ATHX -44%, TRIP -19%, TTWO -19%, LYFT -18%, MRNS -18%, UIS -16%, NSTG -15%, ROIV -13%, FIVN -13%, QTWO -9%, GRPN -9%, DOCN -8%, BRMK -8%, FLGT -6%, MDT -5%, VZLA -5%, PACB -5%, ARCC -4%.

Insider Action: NGM, GPN sees Insider buying with dumb short selling.  BCOV 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: TTWO LYFT TRIP RIDE DD COTY PLNT QGEN MDT  (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Bloomberg Lead Story: Election Day Opens with Americans Set To Deliver Verdict on Biden Agenda. (Bloomberg)
• Bloomberg Most Read Story: Elon Musk tells Twitter followers to vote for Republican Congress. (Bloomberg)
• Top Senate seats to watch in the election. (CNBC)
• GOP has 84% chance to capture House and 59% on Senate. (538)
• President Trump says he will make a big announcement on Tuesday, November 15th. (Bloomberg)
• Crypto falls the most in two weeks. (Bloomberg)
• Nvidia (NVDA) offers an alternative chip to China to get around export rules. (WSJ)
• Tesla (TSLA) recalls 40,000 units over power loss. (Reuters)

Moving Average Update:

• Score jumps 20% to 54%.

Geopolitical: 

• None of note.

M&A Activity:

• Forward Air (FWRD) to acquire Chickasaw Container Services, a privately held intermodal drayage provider.
• MeridianLink (MLNK) acquires OpenClose, a fintech provider of residential mortgage software for financial institutions.

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: