CAPIS Morning Note – 11/25/22: Black Friday Sales To Drive Retail Stocks

Overnight Summary: The S&P 500 closed Wednesday at 4,027.26 (up 0.59% after being up 1.36% on Tuesday).  The overnight high of 4045.75 was hit at 2:50 a.m. EST. The low was hit at 4032.50 at 5:05 a.m. EST, a range of ~13 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was…

Overnight Summary: The S&P 500 closed Wednesday at 4,027.26 (up 0.59% after being up 1.36% on Tuesday).  The overnight high of 4045.75 was hit at 2:50 a.m. EST. The low was hit at 4032.50 at 5:05 a.m. EST, a range of ~13 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was up +5.

Earnings Out After The Close: 

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes: Genius Sports (GENI) files 7,668,381 ordinary offering.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: Gladstone Commercial (GOOD) files offering.
  • Debt Filing/Notes:
  • 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: RKLB +5%.
    • Trading Down: LU -12%, VORB -4%.
  • News Since The Close:
    • US Stock Market is open on Friday 1/2 day.
    • AAPL Foxconn said on Thursday a pay-related “technical error” occurred when hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest.
    • Ford (F) recalls over 634,000 SUVs over cracked fuel injector.
    • Beijing Is Going Back Into Lockdown. (CGTN)
    • Binance CEO: We Will See Some More Crypto Contagion, Overall The Crypto Industry Is Fine. (BBG TV)
    • Kremlin: We Still Do Not Plan To Supply Oil To Countries Supporting Oil Price Cap – We Need To Analyse All Figures First.
    • Thousands of Amazon (AMZN) warehouse workers across about 40 countries plan to take part in protests and walkouts to coincide with Black Friday sales, one of the busiest days of the year for online shopping. (BBG).
  • Exchange/Listing/Company Reorg and Personnel News:
    • Arrival (ARVL) Announces Mr. F. Peter Cuneo Appointed as Interim CEO; Mr. Denis Sverdlov Appointed as Chairman of the Board; Departure of Mr. Avinash Rugoobur as President and Chief of Strategy; Mr. Rexford Tibbens Appointed as Chairman of the Strategic Planning and Operations Committee.
    • BeyondSpring (BYSI) Receives Nasdaq Notice Regarding Minimum Bid Price Requirements.
    • Brooge Energy Ltd (BROG) Announces Extended Nasdaq Stay.
    • GAN Announces Departure of Chief Financial Officer.
    • Greencity Acquisition Corporation (GRCY) Announces Receipt of Notice from Nasdaq Regarding Late Filing of Quarterly Report on Form 10-Q.
    • Inspirato (ISPO) Receives Expected Nasdaq Notification of Non-Compliance.
    • Nisun International (NISN) Receives NASDAQ Minimum Bid Price Requirement Extension.
  • Buyback Announcements or News: None of note.
  • Stock Splits or News:  None of note.
  • Dividends Announcements or News: None of note.

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

S&P 500 +4.49, Dow Jones +64,  NASDAQ -28, and Russell 2000 +5. (as of 8:00 a.m. EST). Japan’s Nikkei was closed for the holiday. Asia lower ex Shanghai.  Europe is higher.  VIX Futures are at 22.57 from 21.64. Gold higher, Silver lower and Copper higher. WTI Crude Oil and Brent up and Natural Gas down. $ is flat. US 10-year Treasury sees yields at 3.718% from 3.767%. The U.S. Dollar is lower versus the Euro, Pound but higher against the Yen. Bitcoin is at $16,538 down by -0.15%.

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

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

Stocks Close Higher After Fed Minutes Suggest Smaller Interest-Rate Increases Ahead.  U.S. stocks rose Wednesday as minutes from the Federal Reserve’s latest meeting showed most officials favored slowing interest-rate increases soon.  The S&P 500 gained 23.68 points, or 0.6%, to 4027.26. The Dow Jones Industrial Average added 95.96 points, or 0.3%, to 34194.06. The Nasdaq Composite jumped 110.91 points, or 1%, to 11285.32. (WSJ)

 

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

  • Friday After the Close: None of note.
  • Monday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: None of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart: 

Gap Ups and Down In Early Pre-Market:

  • Gap Up: None of note.
  • Gap Down: None of note.

Insider Action: SMCI 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 premarket: ATVI TSLA MANU BBBY DB COUP   (CNBC)
  • 5 things to know before the stock market opens. (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Bloomberg Lead Story:  Stocks Waver As Traders Consider Rates, China Stimulus. (Bloomberg)
  • Bloomberg Most Read Story: Binance’s Zhao flags $1 billion for distressed sales. (Bloomberg)
  • China extends lockdowns across the country. (CNBC)
  • Biden Administration is trying to prevent rail strike. (Reuters)
  • ATVI MSFT: Activision Blizzard Shares Down 4% Premarket After Report Says Ftc Likely To File Lawsuit To Block Microsoft Bid For Co.
  • Bed, Bath & Beyond (BBBY) struggles to keep stores stocked for holidays. (WSJ)
  • Airport traffic hits pre pandemic levels for holiday travel period. (NY Daily News)
  • Amazon (AMZN) faces Black Friday protests and strikes. (Bloomberg)
  • EU could start a probe on Microsoft. (Reuters)

Moving Average Update:

  • Score remains at 85%.

Geopolitical: 

  • President’s Public Schedule:
    • None of note.

Economic: 

  • Fed Balance Sheet 4:30 p.m. EST
  • The latest NYSE and NASDAQ Short Interest through trade of November 11th and Settlement of November 15th. During this time, the S&P 500 rose 4.88%.

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Credit Suisse Technology Conference
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: NISN.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • Arizona International Auto Show

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: