Overnight Summary: The S&P 500 closed Tuesday at 5246.68 higher by +0.48% from Monday at 5221.42 lower by -0.02%. The overnight high was hit at 5,343.25 at 11:40 p.m. while the overnight low was hit at 5325.75 at 4:10 p.m. EDT. The range overnight is 18 points as of 7:10 a.m. EDT. Currently, the S&P 500 is higher by +1.50 points at 7:10 a.m. EDT.
Executive Summary: We are done with inflation data, earnings are slowing and we are near the end of the week. Tomorrow is options expiration and most action is below 5300. Could we meltup to 5400?
- Lots of Fed Speak again today.
- Walmart beats.
Earnings Out After The Close:
- Beats: CPA +0.88, CSCO +0.05 of note.
- Flat: None of note.
- Misses: None of note.
- IPOs For The Week: BTOC GGL JDZG KDLY RAY.
- New SPACs launched/News:
- IPOs Filed:
- Ingram Micro files for a $1 billion IPO. (Bloomberg)
- Secondaries Files or Priced:
- GLUE proposed offering of common stock and warrants.
- GTES files 17.5 million share offering of ordinary shares.
- IPSC files 15,873,011 shares of common stock.
- IZEA files $75 million of common stock.
- Common Stock filings/Notes:
- files a common share offering.
- Notes Priced of note:
- PRAA prices $400 million of 8.875% Senior Notes due 2030.
- NSIT prices $500 million offering of Senior Notes.
- Direct Offering:
- Exchangeable Subordinate Voting Shares:
- Selling Shareholders of note:
- Debt/Credit Filing and Notes:
- Mixed Shelf Offerings:
- AESI : Filed a Mixed Shelf Offering.
- IMNN: Filed a $75 million Mixed Shelf Offering.
- IREN: Filed a $500 million Mixed Shelf Offering.
- OBIO: Filed a $300 million Mixed Shelf Offering.
- USGO: Filed a $40 million Mixed Shelf Offering.
- 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 :
- Winners & Losers After The Close:
- ASTS +37.20%, CB+6.60%, CSCO +4.5%
- IREN -12.50%, GLUE -10.1%, HWKN -8.60%, CIVI -3.6%, GTES -2.6%
- News Items After the Close:
- Warren Buffet and Berkshire Hathaway (BRKA) have been buying shares of Chubb (CB) and now have a $6,7 billion position. (Bloomberg)
- Other 13-Fs of latest positions by Hedge Fund Managers filed including Tepper, Value Act, Trian and Elliott among others.
- AFLAC (AFL) buys a stake in direct lender, Tree Line Partners. (WSJ)
- Saudi Wealth Fund slashes holdings of U.S. stocks. (Bloomberg)
- Netflix hits 40 million users from its ad supported program up from 5 million a year ago. (Reuters)
- IBM and Palo Alto (PANW) join forces on AI to combat cybersecurity threats. (MarketWatch)
- Cisco (CSCO) stock rises as demand stabilizes and revenue outlook impresses. (MarketWatch)
- DJT, BLUE, GLSI, SMID, FTRE delays 10-Q filing.
- Exchange/Listing/Company Reorg and Personnel News:
- Buyback Announcements or News:
- Yum Brands (YUM) approves stock buyback of $2 billion. (MarketWatch)
- ABG increases stock repurchase program by $400 million.
- Stock Splits or News:
- Dividends Announcements or News:.
- BG ups dividend by 3%.
- EG increases dividend to $2.00 from $1.75.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +4, Dow Jones +32, NASDAQ +22, Russell -1.16. (as of 8:15 a.m. EDT). Asia is higher while Europe is lower this morning. VIX Futures are at 13.78 from 14.25. Gold lower with Silver and Copper higher this morning. WTI Crude Oil flat with Brent Crude Oil lower are higher with Natural Gas higher. US 10-year Treasury sees its yield at 4.336% from 4.42% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $66.254 from $62,600 higher by 0.32% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Technology, Real Estate, Utilities, Healthcare, Communications Services of note.
- Daily Negative Sectors: Energy of note.
- One Month Winners: Utilities, Consumer Defensive, Financials, and Healthcare of note.
- Three Month Winners: All but Real Estate led by Utilities, Energy, Materials and 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, Utilities, Technology, Financials, Industrials and Consumer Defensive of note.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close:
Earnings of Note This Morning:
- Beats: BIDU +3.93, DDS +1.40, JD +0.98, DE+0.67, WMS +0.20, NICE +0.13, WMT +0.07 of note.
- Flat: of note.
- Misses: of note.
- Still to Report: of note.
Company Earnings Guidance:
- Positive Guidance: of note.
- Negative Guidance: of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market (+4% or down more than -4%):
- Gap Up: ASTS +36.4%, ZTO +11.3%, ATS +10.7%, CB +9.5%, CGEM +4.7%, CSCO +4.3%, JD +4.1%, GRAB +3.6%, GLPG +3%, DO +2.6%, OABI +2.6%, SGML +2.6%, MOR +2.5%, CPA +2.4% of note.
- Gap Down: GLUE -6.5%, NICE -6.1%, HWKN -6%, IREN -5.8%, DE -5.6%, QDEL -2.1% of note.
Insider Action: HHS sees Insider buying with dumb short selling. CTRN NN VERVsee 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.
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things to Know Before The Stock Market Open Thursday. (CNBC)
- Bloomberg Lead Story: China Sells Record Amount of U.S. Debt. (Bloomberg)
- Russian President Putin to meet for a second day with Chinese President Xi. (NYT)
- Stocks hold gains with jobs, Fed speakers in focus: Market Wrap. (Bloomberg)
- Federal Reserve New York President John Williams is not ready for rate cuts yet. (Reuters)
- Walmart (WMT) sales surge as wealthier shoppers flock to retailer. (Bloomberg)
- US Inflation data was released 30 minutes early by accident. (Bloomberg)
- DELL up 11% as secures AI server orders. (CNBC)
Moving Average Update: Score at 100% from 100%.
Geopolitical:
- President’s Public Schedule:
- There is a Daily Briefing today at 10:00 p.m. EDT.
- President Biden meets the plaintiffs from Brown vs Board of Education decision and their families at the White House.
- Press Briefing at 1:30 p.m. EDT with Press Secretary Karine Jean-Pierre and Stephen Benjamin, Director of the Office of Public Engagement.
Economic:
- April Import and Export Prices are due out at 8:30 a.m. EDT and is expected to remain at 0.4% and 0.3%.
- May Philadelphia Fed Index is due out at 8:30 a.m. EDT and is expected to fall to 5 from 15.
- Weekly Jobless Claims are due out at 8:30 a.m. EDT.
- April Industrial Production is due out at 9:15 a.m. EDT and is expected to fall to 0.2% from 0.4%.
- Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.
Federal Reserve / Treasury Speakers:
- Federal Reserve Governor Michael Barr speaks at 10:00 a.m. EDT for a second day in a row.
- Federal Reserve Philadelphia President Patrick Harker speaks at 10:30 p.m. EDT.
- Federal Reserve Clevelan President Loretta Mester speaks at 12:00 p.m. EDT.
- Federal Reserve Atlanta President Raphael Bostic speaks at 3:50 p.m. EDT.
M&A Activity and News:
Meeting & Conferences of Note:
- Sellside Conferences:
- Top Shareholder Meetings: ATI, BIGC, CB, CCO, CLF, CVS, DBX, DGX, HAS, HD, HOG, ILMN, KBR. MMC, MO,
RIG, T, YUM
- Fireside Chat: None of note.
- Investor/Analyst Day/Calls: AENT, CBRL, CDZI, CMI, DOW, ETNB, NAMS, NSP, PBA, PH, PRLD
- Update: None of note.
- R&D Day: None of note.
- FDA Presentation: MDWD OLMA
- Company Event:
- Industry Meetings:
- Bank of America Healthcare Conference and Transportation and Industrials Conference
- Barclays Emerging Payment and FinTech Forum
- Barrington Research Spring Investment Conference
- BMO Global Farm to Market Conference
- Deutsche Bank Global Solar & Clean Tech Conference
- JPM North American Battery Call Series
- Jefferies HCM Series
- Needham Technology Conference
- RBC Future of Water Conference
- Society for Investigative Dermatology Annual Meeting
- TIDES USA Oligonnucleotide & Peptide Therapeutics Conference
- Wound Healing Society Conference
Top Tier Sell-side Upgrades & Downrades:
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:
