CAPIS Morning Note – 11/23/21: 50 million Barrels of Oil from the Strategic Petroleum Reserve

Note: We will not be producing our briefing on Friday, November 26th as markets close early and news will be very light post Thanksgiving. Overnight Summary: Asia markets were trading flat.  China Evergrande popped 6%.  European markets are mostly trading down recovering off session lows.  German Manufacturing PMI topped forecast number at 53.4 (forecast was…

Note: We will not be producing our briefing on Friday, November 26th as markets close early and news will be very light post Thanksgiving.

Overnight Summary: Asia markets were trading flat.  China Evergrande popped 6%.  European markets are mostly trading down recovering off session lows.  German Manufacturing PMI topped forecast number at 53.4 (forecast was 51.5).

Breaking News: U.S., Others to Tap Oil Reserves in Bid to Tame Inflation (WSJ)

Earnings Out After The Close:

  • Beats: KEYS +0.18, RMAX +0.09, URBN +0.05, A +0.03, ZM +0.01
  • Flat: None
  • Misses: None

Capital Raises:

  • IPOs Priced or News:
  • New SPACs launched: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • DH: Closing of Follow-On Offering of 11,000,000 Shares of Class A Common Stock
    • EDSA: Filed Form 424B5.. Up to $15,000,000 Common Shares
    • INDI
    • ME: 23andMe Announces Redemption of All Outstanding Warrants
    • PTC: Filed Form S-3ASR..10,582,010 Common Stock
    • USWS: Filed Form S-3.. 33,737,606 shares of Class A Common Stock
    • VRT
  • Pricing of Over-Allotment: None of note.
  • Direct Offering: 
    • MAG MAG Silver announces US$40 mln bought deal financing
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • DXCM: Filed Form S-3ASR Mixed Shelf
    • GECC: Filed Form N-2.. $100,000,000 Mixed Shelf
    • GNTY: Filed Form S-3.. $150,000,000 Mixed Shelf
    • JAGX: Filed Form S-3.. $75,000,000 Mixed Shelf .. 309,242 Secondary Offering
  • Convertible Offering & Notes Filed: None of note.
  • Note Offerings Filed:
    • COTY: Prices $500 Million of Senior Secured Notes

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: SITM +8%, EBS +8%
    • Trading Down: URBN -12%, TUYA -7%, ZM -6%, mag -4%, A -3%
  • News Items:
    • ARRY Array Tech announces planned retirement of CEO Jim Fusaro
    • Thanksgiving Travel will Test Airlines (NY Times)
    • US House Democrats Call For Biden To Ban Oil Exports And Tap Emergency Reserves – CNN
    • US Treasury Sec Yellen: Price Pressures To Subside As Life Normalizes In 2022 – `Not Worried’ About A Re-Run Of 1970s Inflation
    • Fed’s Bostic (Bloomberg TV):
      • Could Be Open To Pulling Forward Another Rate Hike If Appropriate For 2022 – But Also Open To Pushing Them Back Too Depending On How Pandemic Plays Out
      • Strong Jobs Reports Would Add To Case For Faster Taper – On Inflation Side Expects Numbers To Continue Coming In Strong
      • Good Arguments To Be Made To Consider Faster Fed Taper. Should Be Open To Considering Speeding Up Taper Pace
    • Asset Under Mgmt Updates: None of note.
  • Stock Split: None of note.
  • 13F Filing: None of note.
  • Exchange/Listing News: 
    • ECHO Halt – Additional Information Requested by NASDAQ
    • GRMN Garmin announces transfer of listing to the New York Stock Exchange
    • PUMP: ProPetro Announces Settlement of Previously Disclosed Securities and Exchange Commission Matter
    • UFS SiTime Set to Join S&P MidCap 400; EBS Emergent BioSolutions to Join S&P SmallCap 600
  • Buyback Announcements:
    • ANF
    • CBRE
  • Dividends Announcements:
    • HRL
    • SJI

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

S&P 500 -0.19 Dow Jones Industrial Average +43 NASDAQ -27 Russell 2000 -0.75. Asia flat and Europe trading lower. VIX is at 19.58 from 19.17 in futures from yesterday. Gold and Silver trading down. WTI Crude Oil and Brent Oil Futures lower by 0.4%. Natural Gas is up 4%. $ is flat vs Euro, flat vs Pound and flat vs Yen. US 10 year Treasury price is at $129.60 from $130.00 with yields at 1.662% from 1.625% on Tuesday morning. Bitcoin at $56,626.99 from $56,057.92 Tuesday morning up +1.06%. As of 8:17 a.m. EST.

Monday’s Action – 11/22 Close:  

  • Daily Positive Sectors: Energy, Basic Materials, and Consumer Defensive of note.
  • Daily Negative SectorsTechnology, Communication Services, Healthcare, and Consumer Cyclical of note.
  • One Month Winners: Consumer Cyclical, Technology, Industrials of note.
  • Three Month Winners: Energy, Consumer Cyclical, and Technology of note.
  • Six Month Winners: Technology Communication Services, Consumer Cyclical of note.
  • Twelve Month Winners: Energy, Communication Services, and Technology of note.
  • Year to Date Winners: Energy, Technology, and Communication Services  of note.

Technology pulls down the indexes with Nasdaq down 1.26%. USO and UNG split with oil up 1.25% and gas down 4.7%. Updated 11/22 close.


Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)

  • Tuesday After the Close: ADSK, VMW, HPQ, PLAN, GPS, PSTG, NTNX, JWN, GES of note.
  • Wednesday Before the Open: DE, KC of note.

Earnings of Note This Morning:

  • Beats: DKS +1.17, SJM +0.38, DY +0.28, TITN +0.28, ANF +0.20, AEO +0.15, BBY +0.12, BURL +0.09, ADI +0.03, MDT +0.03, DLTR +0.01, J +0.01
  • Flat: CBRL +0.00
  • Misses: AMWD (0.26), ROAD (0.25), GENI (0.25)
  • Still to Report: JACK

Erlanger Research Advance/Decline Chart: Updated through 11/22 close.

Gap Ups & Down In Early Pre-Market:

    • Gap Up: AADI +45%, SITM +5%, ARWR +4%, EBS +4%, XPEV +4%, DY +3%
    • Gap Down: URBN -12%, ZM -8%, GOEV -4%, MAG -3%, ARRY -3%, A -3%

Insider Action: COMM, ATCX, and SIX sees Insider buying with dumb short selling and no stock has smart short sellers with insider buys. 11/22 close

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

Moving Average Update:

  • Score drops to 63% from 73%. Updated 11/22 close.


  • President’s Public Schedule:
    • The President and The Vice President receive the President’s Daily Brief, 10:00 a.m. EST
    • The President delivers remarks on the economy and lowering prices for the American people, 2:00 p.m. EST
    • Press Briefing by Press Secretary Jen Psaki, 3:15 p.m. EST
    • The President, The First Lady, The Vice President, and The Second Gentleman participate in a service project, DC Central Kitchen, 4:00 p.m. EST
    • The President and The First Lady depart Joint Base Andrews en route Nantucket, Massachusetts, 5:55 p.m. EST


  • Redbook Sales 8:55 a.m. EST
  • PMI Composite 9:45 a.m. EST
  • Richmond Fed Mfg Index 10:00 a.m. EST
  • API Crude Oil Data 4:30 p.m. EST

Federal Reserve Speakers:

  • None of note.

M&A Activity

  • WillScot Mobile Mini (WSC) Acquires Regional Storage Services Assets in Los Angeles
  • Installed Building Products (IBP) Announces the Acquisition of CFI Insulation, Inc.
  • Lee Enterprises (LEE)Confirms Receipt of Unsolicited Acquisition Proposal From Alden Global Capital, LLC
  • Newmont Goldcorp (NEM) divests Kalgoorlie Power Business
  • OMC: Omnicom’s Credera Acquires BrightGen to Expand Digital Transformation Capability & Marketing Consulting Depth

Meeting & Conferences of Note:

  • Sellside Conferences:
    • B. Riley Fall Growth Biotech Best Ideas Series 2021
    • Jefferies Offshore Wind Summit 
    • Gartner IT Infrastructure, Operations & Cloud Strategies Conference 2021 UK (11/22-11/23)
    • Piper Sandler 33rd Annual Healthcare Conference 2021
  • Company Meetings: None of note.
    • Fireside Chat: None of note.
  • Investor/Analyst Day: GPS, HON, NBIX, PROC
  • Update: None of note
  • R&D Day: None of note.
  • Conference Call: None of note.
  • Company Event: None of note
  • Industry Meetings:
    • LA Auto Show 2021 (11/19-11/28)
    • 14th International Congress of Inborn Errors of Metabolism ICIEM 2021 (11/22-11/24)
    • ICNJ/NJDA Auto Liability Seminar Insurance Council of New Jersey and New Jersey Defense Association

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:

Monday’s Upgrades and Downgrades: