Overnight Summary: The SP 500 closed Tuesday lower by Monday higher by 0.32% at 5116.17. The overnight high was hit at 5,077.50 at 4:05 p.m. while the overnight low was hit at 5037.75 at 6:35 a.m. EDT. The range overnight is 30 points as of 7:00 a.m. EDT. Currently, the S&P 500 is lower by -23.25 points at 7:00 a.m. EDT.
Executive Summary: All eyes are on Wednesday’s Federal Reserve Open Market Committee (FOMC) announcement and press conference. ADP Payroll gains by 192,000. Strong but not super hot.
- Fed Announcement and Presser at 2:00 p.m. and 2:30 p.m. EDT.
- Several economic releases of note as well as weekly announcements.
Earnings Out After The Close:
- Beats: RNR 2.66, RPPT +2.02, POWL +0.98, SMCI +0.91, KAI +0.41, TMDX +0.37, CLX +0.35, HURN +0.34, VOYA +0.25, AX +0.21, UNM +0.15, SYK +0.14, LMND +0.14, CC +0.14, AMZN +0.14, ASH +0.13, RSG +0.10, NMIH +0.010, EQH +0.10, LC +0.08, FBIN +0.08, ESS +0.08, SON +0.08, PINS +0.07, MDLZ +0.06, BLKB +0.04, SWKS +0.03, LPLA +0.02, HI +0.01 of note.
- Flat: of note.
- Misses: GPOR -1.73, CZR -0.65, WERN -0.13, SBUX -0.12, PSA -0.07, LUMN -0.06, CHK -0.03, PRU +.02, LEG -0.01 of note.
Capital Raises:
- IPOs For The Week: ALEH KMCM NNE RAN VIK ZENA
- New SPACs launched/News:
- Secondaries Priced:
- prices $4M of 16,877,638 @$0.237.
- Notes Priced of note:
- ICLR prices $2B of notes
- Common Stock filings/Notes:
- TRIB files 2,800,000 shares of ADR common stock.
- WBUY files 10,000,000 shares of Class A ordinary shares.
- XLO files 17,580,566 shares of common stock.
- Direct Offering:
- CTXR files a $15M direct offering.
- Exchangeable Subordinate Voting Shares:
- Selling Shareholders of note:
- files 1,918,140 shares of common stock offered by selling shareholders.
- Debt/Credit Filing and Notes:
- PRU files Senior Debt Notes offering.
- Mixed Shelf Offerings:
- ALL files a mixed-shelf offering
- MTH files a mixed-shelf offering
- TT files a mixed-shelf offering
- NDAQ files a mixed-shelf offering
- AVNW files a $400 million mixed-shelf offering.
- Tender Offer:
- Private Placement of Public Entity (PIPE)
- Rights Offering:
- Convertible Offering & Notes Filed:
Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
News After The Close :
- Movers of Note:
- ROOT +25%, POWL +22.4%, PINS +15.7%, NARI +10.8%, ATEN +6%, AMZN +2.3%
- CVRX -27.1%, LEG -12.7%SBUX -12.4%, SMCI -10.3%, SWKS -9.3%, AMD -6.8%.
- News Items After the Close:
- Amazon Web Services Unit saw revenues increase by +17.3%. (Bloomberg)
- Starbucks sees decrease in same store sales and transactions.
- GPI expand credit facility by $500 million to $2.5 billion.
- Tesla to slow supercharger network to concentrate on 100% up time and expansion of existing locations.
- AMD sees Data Center GPU revenues at $4 billion from $3.5 billion in prior guidance.
- Exchange/Listing/Company Reorg and Personnel News
- Buyback Announcements or News
- DSP Board of Directors approves a $50 million buyback.
- Stock Splits or News:
- Stock splits for week BKKT and RCON.
- Dividends Announcements or News:
- PEP ups quarterly cash dividend to $1.355 from $1.265.
- PCAR ups dividend 11% to 40.30.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -22, Dow Jones -93, NASDAQ -127, Russell -8.81. (as of 8:15 a.m. EDT). Asia is lower ex South Korea while Europe is lower ex the FTSE this morning. VIX Futures are at 16.05 from 15.33. Gold and Silver are higher with Copper lower this morning. WTI Crude Oil and Brent Crude Oil are lower with Natural Gas lower as well. US 10-year Treasury sees its yield at 4.686% from 4.63% yesterday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $57,626 from $61,487 lower by -3.64% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: All lower of note.
- Daily Negative Sectors: Weakest sectors were Energy, Materials, Consumer Cyclicals and Technology of note.
- One Month Winners: Communication Services, Energy and Utilities of note.
- Three Month Winners: All but Real Estate led by Energy, Industrials or Communication Services of note.
- Six Month Winners: Communication Services, Technology, Industrials and Financials of note.
- Twelve Month Winners: Communication Services, Technology, Financials, Industrials, and Consumer Cyclicals of note.
- Year to Date Winners: Communication Services, Energy, Technology, Financials, Industrials, and Technology, Consumer Defensive of note.
(WSJ – Edited by QPI)
Upcoming Earnings Of Note:
- Wednesday After the Close: ($5 Billion Market Cap Cut Off)
- Thursday Before the Open: ($8 Billion Market Cap Cut Off)
Earnings of Note This Morning:
- Beats: AER +0.92, EL +0.47, UTHR +0.46, GRMN +0.41, PFE +0.31, SMG +0.25, LIVN +0.24, DD +0.14, GNRC +0.12, COR +0.11, ADP +0.09, SHOO +0.09, CHEF +0.08, GOLD +0.04, GPN +0.02, KKR +0.02, of note.
- Flat: BLCO, BIP, KHC, OSW, of note.
- Misses: EEFT -0.99, GSK -0.49, ASTE -0.47, CVS -0.38, JCI -0.35, CDW -0.23, YUM -0.05, MAR -0.03, EXTR -0.01 of note.
- Still to Report: APA AVT CRS MA TTI WING of note.
Company Earnings Guidance:
- Positive Guidance: LIVN PSN NCLH LTH of note.
- Negative Guidance: AER EL CVS of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
- Gap Up: POWL +24.2%, ROOT +23.1%, TGTX +20.1%, PINS +17%, TMDX +15.8%, NYCB +13.6%, NARI +9.8%, LMND +8.6%, LC +8.1%, CHEF +7.6%, CCCS +7%, MDXG +6.7%, COCO +6.4%, TECH +6.2%, PSN +5.7%, QUAD +5.3%, EEFT +5%, AXTA +5%, PUMP +4.9%, RWT +4.5%, CHK +4.1%, SNN +3.9%, ROCK +3.6%, AMCR +3.4%, DD +3.4%, NBIX +3.2%, KKR +3.1%, MIR +3%, GSK +3%, SMG +3%, ATEN +2.9%, TRN +2.7%, GIB +2.6%, LTH +2.6%, BLCO +2.5%, GOLD +2.2%, OSW +2.2%, ESAB +2%of note.
- Gap Down: CVRX -29.9%, SWKS -14.4%, SMCI -13.7%, LEG -12.8% (also reduces dividend), SBUX -12.7%, CVS -10.8%, AMD -7.1%, OI -6.5%, EXEL -6.3%, YUM -6.1%, EL -5.9%, CDW -5.5%, DBRG -4.5%, EXTR -4.5%, TXG -4% , SITE -3.9%, KHC -3.8%, ALKS -3.5%, NCLH -3%, CC -2.8%, RGEN -2.6%, CZR -2.5%, INVH -2.5%, HLN -2.1%, IDXX -2%, BRY -2% of note.
Insider Action: GSHD sees Insider buying with dumb short selling. No stocks see 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.
- 5 Things To Know Before The Market Opens On Wednesday. (CNBC)
- What You Need To Know To Start Your Day. (Bloomberg)
- Stocks Making the Biggest Moves: (CNBC)
- Bloomberg Lead Story: Clashes Erupt at UCLA After NYC Police Break Up Columbia Protest. (Bloomberg)
- . (Bloomberg)
- US Futures slide with markets bracing for Powell: Markets Wrap. (Bloomberg)
- Tesla (TSLA) fires Supercharger team in blow to EV market. (Bloomberg)
- CVS tumbles on rising medical costs. (Bloomberg)
- Pfizer (PFE) developing a platform so customers can order directly on key drugs. (FT)
- Johnson & Johnson (JNJ) to pay $6.5 billion to resolve Talc Cancer Lawsuits. (CNBC)
- Bloomberg: Daybreak Podcast: Fed expected to signal no cuts soon. (Podcast)
- Bloomberg: The Big Take: The Ozempic Effect: How Drug Gobbled Up Entire Economy. (Podcast)
Moving Average Update: Score falls to 20% from 77%.
Geopolitical:
- President’s Public Schedule:
- President Biden receives the Daily Briefing at 10:00 a.m. EDT.
- Press Conference at 1:30 p.m. EDT with Press Secretary Karine Jean-Pierre.
- President Biden participates in campaign reception in Washington D.C. with time not noted.
Economic:
- April ADP Employment Index is due out at 8:15 a.m. EDT and are expected to fall to 175,000 from 184,000.
- April ISM Manufacturing Index is due out at 10:00 a.m. EDT and is expected to fall to 50% from 50.30%.
- March Construction Spending is due out at 10:00 a.m. EDT and is expected to rise to 0.4% from -0.3%.
- Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT.
- Weekly Mortgage Applications fall -2.3% week over week with prior week at -2.7%, out at 7:00 a.m. EDT.
Federal Reserve / Treasury Speakers:
- No Fed Speakers as in the Blackout Period due to this week’s FOMC meeting.
- The latest FOMC meeting concludes at 2:00 p.m. EDT and then press conference with Chairman Powell at 2:30 p.m. EDT.
M&A Activity and News:
- None of note.
Meeting & Conferences of Note:
- Sellside Conferences:
- None of note.
- Top Shareholder Meetings: ATR BC CVE GD HII IFF KO MGM MOH NS PEP PPC SPGI VET
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: FLEX TEAM
- Update: None of note.
- R&D Day: None of note.
- FDA Presentation: MDWD presents EscharEx
- Company Event:
- Industry Meetings:
- Jefferies Logistics & Transportation Conference
- Longwood Healthcare Leaders Conference
- NSBW Summit
- SBA Virtual Summit
- Spinal Cord Injury Investor Symposium
- Uranium, Battery and Precious Metals Conference
- Women in Data Science Conference
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 is 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:
