CAPIS Morning Note – 12/28/22: Stocks Attempting To Bounce After Monday’s Selling

Overnight Summary: The S&P 500 closed Monday down -0.40% at 3829.25 from Friday up 0.59% at 3844.82.  The overnight high of 3869.50 was hit at 3:25 a.m. EST. The low was hit at 3850.75 at 7:55 p.m. EST, a range of ~19 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was…

Overnight Summary: The S&P 500 closed Monday down -0.40% at 3829.25 from Friday up 0.59% at 3844.82.  The overnight high of 3869.50 was hit at 3:25 a.m. EST. The low was hit at 3850.75 at 7:55 p.m. EST, a range of ~19 points high to low.  At 7:15 a.m. EST, the S&P 500 (mini) was +10.

Earnings Out After The Close: 

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

Updated Short Interest from NYSE and NASDAQ (GoodMorningWallSt.com):

The absolute level of short interest increased by +0.57% from -2.45% (revised) in the last report on the NYSE and the NASDAQ increased by +0.59% from -0.69% in the last report.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News:
    • Complete Solaria and Freedom Acquisition I Corp. (FACT) Achieve Important Milestones Towards Completion of Business Combination.
    • LightJump Acquisition Corp. (LJAQ) and Moolec Science announce that their previously announced business combination was approved at a special meeting of stockholders of LightJump on December 27, 2022.
    • Macondray Capital Acquisition Corp. I (DRAY) Announces it will Redeem its Public Shares and will not Consummate an Initial Business Combination.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • IE: Filed Form S-1.. 29,335,389 shares.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • QMCO: Filed Form S-3ASR.. 361,010 shares common stock offering by selling shareholders.
    • RDNT: Files mixed securities shelf offering; also files for common stock offering by selling shareholders.
    • SNCY: Files for 34,352,603 share common stock offering by selling shareholders, includes warrants.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Debt Filing/Notes:
    • GROV: Announces Refinancing of Existing Debt, Extending Maturity with Principal Payments Beginning in 2025.
  • 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: KULR +5%.
    • Trading Down: None of note.
  • News Since The Close:
    • Tesla (TSLA) is no longer one of the 10 biggest companies in the U.S. by market cap after its 11% slide today–Dow Jones Market Data.
    • Jounce (JNCE) stock bounces more than 70% after Gilead (GILD) acquires immunotherapy drug. (MarketWatch)
    • Lyft (LYFT) stock closes lower than $10 for the first time; three-quarters of its valuation has been wiped away this year. (MarketWatch)
    • Cboe Global Markets (CBOE) to re-open floor trading of VIX options on Wednesday.  On Tuesday, the VIX trading pit on the CCBOE trading floor was temporarily closed for the day as a result of water damage sustained from a burst pipe above the trading floor.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Ampio Pharmaceuticals (AMPE) Regains Compliance with NYSE American Continued Listing Standards.
    • Nuwellis, Inc. (NUWE) Announces Compliance With Nasdaq Listing Requirements.
  • Buyback Announcements or News: None of note.
  • Stock Splits or News:
    • NuZee (NUZE) Announces Intent to Effect 1-for-35 Reverse Stock Split.
  • Dividends Announcements or News:
    • FITB Goes ex div tomorrow for $0.33.

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

S&P 500 +11, Dow Jones +100,  NASDAQ +35,  and Russell 2000 +7. (as of 7:54 a.m. EST).  Asian markets are lower.  Europe markets are trading higher. VIX Futures are at 23.32 from 23.32 as futures were closed due to water leak at CBOE.  Gold and Silver lower with Copper higher.  WTI Crude Oil and Brent are lower with Natural Gas lower as well. $ barely down. US 10-year Treasury sees yields at 3.822% from 3.73%  yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $16,662 from $16,820 yesterday lower by -0.02%.

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

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

U.S. stock indexes were mixed after China said it would open its borders next month, bolstering investors’ hopes that the thawing of the world’s second-largest economy will support global growth. Bond yields climbed.  The S&P 500 was down 0.4% Tuesday. The tech-focused Nasdaq Composite slid 1.4%, while the Dow Jones Industrial Average added 0.1%, or about 38 points.  (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)

  • Wednesday After the Close: CALM of note.
  • Thursday 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 & Down In Early Pre-Market:

  • Gap Up: KULR +5% of note.
  • Gap Down: LJAQ -21% (see SPAC above) of note.

Insider Action: No stock sees Insider buying with dumb short selling.   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: TSLA AMC LUV NVDA MU AAPL LYFT GNRC  (CNBC)
  • 5 things to know before the stock market opens Wednesday. (CNBC)
  • Bloomberg Lead Story: Another Day, Another Crypto Crash as Solana is now down 94%. (Bloomberg)
  • Bloomberg Most Read Story: Southwest Airlines (LUV) memos showed growing concern on eve of epic winter storm. (Bloomberg)
  • Tesla (TSLA) dip buyers are back. (Bloomberg)
  • Top performing auto stock had nothing to do with EV, rather it was performance in Ferrari (RACE). (CNBC)

Moving Average Update:

  • Score down 10% to 11%.

Geopolitical: 

  • President’s Public Schedule:
    • Vacation – Virgin Islands

Economic: 

  • Redbook Sales 8:55 a.m. EST
  • Pending Home Sales 10:00 a.m. EST
  • Richmond Fed Mfg Index 10:00 a.m. EST
  • API Crude Oil Data 4:30 p.m. EST

Federal Reserve / Treasury Speakers:

  • None of note.

M&A Activity:

  • Gilead (GILD) To Acquire All Remaining Rights To Potential First-In-Class Immunotherapy GS-1811 From Jounce Therapeutics (JNCE).
  • Marathon Oil (MRO) Completes Eagle Ford Acquisition.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • UBS BB Global Emerging Markets Conference 2022.
      • Previously posted and ongoing conferences:
        • None of note.
  • Company Meetings: IONM, QH, SDAC, TZOO.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: ZM.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:
    • None of note.
      • Previously posted and ongoing conferences:
        • BioCentury-BayHelix East-West Summit

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:

None of note.

Previous Day’s Upgrades and Downgrades:

None of note.