CAPIS Morning Note – 5/17/24: Stocks Look To Close out Fourth Straight Winning Week.

Overnight Summary: The S&P 500 closed Thursday at 5297.10 by -0.21% from Wednesday at 5308.15 higher by +1.17%. The overnight high was hit at 5,324 at 2:40 a.m. while the overnight low was hit at 5313.25 at 4:35 a.m. EDT. The range overnight is 11 points as of 7:10 a.m. EDT.  Currently, the S&P 500 is…

Overnight SummaryThe S&P 500 closed Thursday at 5297.10 by -0.21% from Wednesday at 5308.15 higher by +1.17%. The overnight high was hit at 5,324 at 2:40 a.m. while the overnight low was hit at 5313.25 at 4:35 a.m. EDT. The range overnight is 11 points as of 7:10 a.m. EDT.  Currently, the S&P 500 is lower by -1.25 points at 7:10 a.m. EDT.

Executive Summary: Stocks look to close out their fourth week in a row. The S&P 500 just broke out above the May high. It looks like there is more upside ahead after a 45-day consolidation.
  • Leading Indicators out at 10:00 a.m. EDT.
  • Lots of Fed Speak to end the week.
  • May Options Expiration
Earnings Out After The Close
  • Beats: DXC +0.14, AMAT +0.10, DOCS +0.05 of note.
  • Flat:  None of note.
  • Misses: TTWO -16.15, FLO -0.03 of note.

Capital Raises:

  • New SPACs launched/News:
  • IPOs Filed:
  • Secondaries Files or Priced:
    • ERAS secondary was priced at $1.85.
    • SEEL secondary was priced at $2.46.
    • HKIT files $120 million shares of ordinary stock.
  • Common Stock filings/Notes:
  • Notes Priced of note:
    •  OI prices senior notes.
  • Direct Offering:
  • Exchangeable Subordinate Voting Shares:
  • Selling Shareholders of note:
    • CGEM files to sell 14.421,070 shares by selling shareholders.
  • Debt/Credit Filing and Notes:
  • Mixed Shelf Offerings:
    • RRC: Filed a Mixed Shelf Offering.
    • CELH: Filed a $75 million Mixed Shelf Offering.
    • SHBI:  Filed a $500 million Mixed Shelf Offering.
    • GME: Filed a 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: 
    • DOCS +13.80%, +DESP 10.7%, RDT+9.61%, NUVL +8.8%, OUST +6.8%,  CSCO +4.5%
    • DXC -20.4%, GLOB -5.2%, TTWO -3%
  • News Items After the Close:
    • Dow traded through 40,000 before closing under that level. (Yahoo Finance)
    • Cracker Barrel (CBRL) cuts dividend, closes stores as consumer does not show up. (MarketWatch)
    • Redditt (RDDT) cuts a deal with OpenAI. (MarketWatch)
    • Ford (F) asks EV suppliers to cut pricing to support profitability. (Reuters)
    •  AIRJ delays 10-Q filing.
  • Exchange/Listing/Company Reorg and Personnel News:
    • ProFrac Holding (ACDC) announces that Lance Turner will resign from his position as CFO with Austin Harbour appointed CFO as of June 17
    • Cirrus Logic (CRUS) announces resignation of CFO Venk Nathamuni, company appoints Ulf Habermann, Principal Accounting Officer, as interim CFO
    • New York Community Bank (NYCB) COO Julie-Ann Signorille-Browne to resign, effective May 24 
  • Buyback Announcements or News:
    • KAI ups buyback to $50 million.
    • DV ups buyback to $150 million.
    • ATGE ups buyback to $150 million.
    • AX ups buyback to $300 million.
  • Stock Splits or News:
  • Dividends Announcements or News:.
    •  Chubb (CB) ups dividend by 5.8% tp $0.91 a share to keep new shareholder Warren Buffet happy.

What’s Happening This MorningFutures value reflects the change with fair value. Futures on the Dow , S&P 500 , NASDAQ , and Russell. Asia and Europe are lower this morning. VIX Futures are at 13.76 from 13.78Gold, Silver and Copper higher this morning. WTI Crude Oil flat with Brent Crude Oil lower are lower with Natural Gas higher. US 10-year Treasury sees its yield at 4.398% from 4.336% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the YenBitcoin is at $66,306 from $66.254 higher by 1.56% this morning.

Sector Action(1/3/6/12/YTD Updated Weekly with Monday release):  
  • Daily Positive Sectors: Consumer Defensive and Communication Services of note.
  • Daily Negative Sectors:  Industrials, Energy, Materials and Consumer Cyclicals 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 Softwaresorted 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:   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: RDDT +16.7%, DOCS +14%, DESP +9.3%, CAN +8.5%, OUST +7.6%, ERAS +5.4%, NUVL +3.9%, AIRJ +2.7%, ACDC +2.4%, PH +2.2%, OKLO +2.1%, KAI +2%, DV +2% of note.
  • Gap Down: DXC -23%, CBRL -11.3%, GLOB -5.2%, TTWO -2.8%, CDNA -2.2% of note.

Insider Action:  ARKR sees Insider buying with dumb short selling.   ALTI see Insider buying with smart short sellers.

Rags & MagsRepeated 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 Friday. (CNBC)
  • Bloomberg Lead Story: China Attempts To End Property Crisis With Broad Rescue Package. (Bloomberg)
  • Stocks churn as traders waver on rates outlook: Markets Wrap. (Bloomberg)
  • Gamestop (GME) stock falls as company files to sell stock at its elevated price, surprise surprise. (CNBC)
  • Bloomberg’s The Big Take: Tiny Djibouti tells Washington not to use its land to confront militants. (Podcast)
  • NY Times Daily: Campus protestors explain themselves. (Podcast)
  • Marketplace: Tech Bytes: Week in Review – Google, ChatGP and AI Regulation. (Podcast)
  • Wealthion: Jared Dillian- Debt Bomb ready to explode? (Podcast)
  • Adam Taggart: Pain Ahead For Stocks. (Podcast)

Moving Average Update: Score at 100% from 100%.


  • President’s Public Schedule:
    • There is a Daily Briefing today at 10:00 p.m. EDT.
    • President Biden delivers remarks at the National Musuem of African American History and Culture at 11:45 p.m. EDT.
    • Press Briefing at 1:00 p.m. EDT with Press Secretary Karine Jean-Pierre.
    • President Biden and Vice President Harris meet with Black Fraternities and Sororities at 3:30 p.m. EDT


  • April Leading Indicators is due out at 10:00 a.m. EDT and is expected to remain at -0.3%.
  • Baker Hughes Weekly Rig Count is out at 1:00 p.m. EDT.

Federal Reserve / Treasury Speakers:

  • Federal Reserve Governor Christopher Waller speaks at 10:15 a.m. EDT.
  • Federal Reserve San Francisco President Mary Daly speaks at 12:15 p.m. EDT.
  • Federal Reserve Chairman Jerome Powell speaks at 3:30 p.m. EDT.
  • Federal Reserve Governor Adriana Kugler speaks at 5:45 p.m. EDT.

M&A Activity and News:

  • None of note.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • None of note.
  • Top Shareholder Meetings: BA BRKR CYRX ICE JBLU M POWI WU
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: BRKR ROL
  • Update: None of note.
  • R&D Day: None of note.
  • FDA Presentation:
  • Company Event:
  • Industry Meetings:
    • Bank of America Healthcare Conference
    • BioNJ BioPartnering Conference
    • Deutsche Bank Global Solar & Clean Tech Conference
    • PEGS Boston
    • Society for Investigative Dermatology Annual Meeting
    • TIDES USA Oligonnucleotide & Peptide Therapeutics 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: