CAPIS Morning Note – 5/27/21: Stocks Mixed, Biden Proposes Increasing Budget By 25%

Breaking News: Biden proposes a $6 trillion budget for 2022 Fiscal Year. (NYT) Earnings Of Note After The Close: Beats: WSM +1.07, NVDA +0.38, WDAY +0.14, OKTA +0.10, NTNX +0.08, ENS +0.07, ELF +0.07, CHNG +0.06, PSTG +0.06, DXC +0.04, OOMA +0.03, ZUO +0.02, NXGN +0.02, AEO +0.01 Flat:  None Misses: UHAL (1.31), SNOW (0.54)…

Breaking News: Biden proposes a $6 trillion budget for 2022 Fiscal Year. (NYT)

Earnings Of Note After The Close:

Beats: WSM +1.07, NVDA +0.38, WDAY +0.14, OKTA +0.10, NTNX +0.08, ENS +0.07, ELF +0.07, CHNG +0.06, PSTG +0.06, DXC +0.04, OOMA +0.03, ZUO +0.02, NXGN +0.02, AEO +0.01

Flat:  None

Misses: UHAL (1.31), SNOW (0.54)

Capital Raises: 

IPOs Priced or News: 

New SPACs launched: Acorns to go public through a SPAC with Pioneer Merger Corp with value of $2.2 billion.

Secondaries Priced: AZEK PACK RCM TLMD of note.

Notes Priced of note: TRTN of note.

Common Stock filings: IVR BTX MITT PHX UONE 0f note.

Selling Shareholders of note: VMEO  of note.

Private Placement of Public Entity (PIPE):

Mixed Shelf Offerings: CSCW CTHR GTEC PULM of note.

Convertible Offering & Notes Filed:  None of note.

Note Offerings 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:

Traders rotated into Small Cap stocks on Wednesday.

Workday (WDAY) raises subscription revenue guidance.

Okta (OKTA) has mixed guidance and CFO steps down.

Walt Disney (DIS) California based parks will begin to allow non-California customers starting 6/15. (CNBC)

Crocs (CROX) to join S&P MidCap 500 Index while Organogenesis (ORGO) to join S&P SmallCap 600 on 6/2.

Senator Amy Klobuchar  (D-MN) calls for a complete review of Amazon (AMZN) deal to buy MGM Studios.

After Hours Movers: ORGO +11.5%  VIR +7.5%  GHVI +6.3% WSM  +3.4% and UHAL -11% SNOW -3% OKTA -3%

Dividend Increases: DCI UVV MDT

Guides Higher: NVDA OOMA 

Mixed Guidance:

Lower Guidance:

Buyback Announcements: 

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

S&P 500 +1.5 Dow Jones Industrial Average +97.95 NASDAQ -27 Russell 2000 +4.93.  Fair values are  lower today ex Russell 2000. Asia and Europe mixed. VIX is at 19.85 from 20.65 in futures. VIX closed at 17.36 from 18.84.

Gold, silver and copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $132.81 from $132.98  with the yield at 1.608% from 1.56%.  Bitcoin $39622 from $40159 yesterday and this morning at $1386.19 and +3.62%.

Wednesday’s Action – 5/26.  Equity indexes were lower after two days of buying.

Positive Sectors On Wednesday: Consumer Cyclical, Energy and Communication  of note.

Negative Sectors On Wednesday: None of note.

One Month Winners: Energy, Financials, Materials and Industrials  of note.

Three Month Winners: Energy, Materials, Industrials and Financials of note.

Six Month Winners: Energy, Financials, Materials and Industrials of note.

Twelve Month Winners: Materials, Industrials, Financials and Consumer Cyclicals of note.

Year to Date: Energy, Communication Services, Financials and Materials of note.

Stocks were higher on Wednesday, Bonds lower, U.S. Dollar higher and Commodities mixed.

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

Today After the Close: CRM, COST, DELL, VMW, ADSK, VEEV, ULTA, GPS, OLLI, BOX, MANU, GES, DOMO, YEXT of note.

Friday Before the Open: BIG, HIBB, CAL of note.

Earnings This Morning Of Note:

Beats: SAFM +1.84, BURL +1.76, HHR +1.38, GCO +1.32, BBY +0.81, DG +0.62, CM +0.52, TITN +0.30, TD +0.28, RY +0.25, DLTR +0.20, HLNE +0.19, FRO +0.10, MDT +0.08

Flat:  none

Misses: AMWD (0.43), ATHM (0.01), PLAN (0.01)

 Still to Report: none

 Insider Purchases:

Below is the list of insider buys from yesterday and this morning sorted by level of short selling. The idea here is simple. Find stocks where insiders are buying and the shorts are “dumb short sellers”. Insider buying continues at Good Rx (GDRX) and we note shorts are feeling pain in Hawthorne Bancshares (HBWK). Also, we have looked at American Assets Trust (AAT) in the past and short may need to cover. As such we like this as a long idea. Updated 5/27.

Erlanger Research Advance/Decline Chart/Table –Updated through 5/26.

Gap Ups & Down In Early Pre-Market:

Gap up: VIR +14%, ORGO +12%, OCGN +6%, GHVI +5%, WSM +5%, OOMA +5%

Gap down:  NTNX -8%, OKTA -5%, PACK -5%, IVR -4%, SNOW -4%, CROX -4%, ELF -3%, UHAL -3%

Rags & Mags: Highlighted Stories may be clicked through to the original story. 

Stocks making the biggest moves BBY SNOW OKTA DG DLTR WSM  (CNBC)

5 Things To Know Before Trading Starts. (CNBC)

U.S. Trade Representative Katherine Tai held a productive call with China. (WSJ)

Republicans want only traditional infrastructure in the upcoming bill, no climate change or senior care. (The Washington Post)

White House Advisor Kurt Campbell notes that period of engagement with China has ended. (Bloomberg)

Federal Reserve  increasing powers make some nervous. (CNBC)

Senate Committee advances tax credits for Electronic Vehicles (EV). (Bloomberg)

Walmart (WMT) and Gap Stores (GPS) form  joint partnership to sell                             .

Facebook (FB) will no longer remove posts that Covid-19 was manufactured. (Politico)

Robinhood looks at Exxon (XOM) and Royal Dutch Shell (RDSA) as they rethink business models. Also, looks into Famous Orders at McDonald’s (MCD).

Index Moving Averages: 5/25 Close – The color of money is green not red. We are back to mostly green.


The President receives the President’s Daily Brief, The White House, 10:00 a.m. EDT

The President departs the White House en route Joint Base Andrews, 11:10 a.m. EDT

Press Secretary Jen Psaki will speak aboard Air Force One en route Detroit, Michigan, 11:45 a.m. EDT

The President arrives in Cleveland, Ohio, 12:45 p.m. EDT

The President tours Cuyahoga Community College, Highland Hills, OH, 1:50 p.m. EDT

The President delivers remarks on the economy, Cuyahoga Community College, Highland Hills, OH, 2:20 p.m. EDT

The President departs Cleveland, Ohio en route Joint Base Andrews, 3:50 p.m. EDT

The President returns to the White House, 5:15 p.m. EDT

Bank CEO Hearings move over to the House today.


Weekly Jobless Claims are due out at 8:30 a.m. EDT.

April Durable Orders is due out at 8:30 a.m. EDT and is expected to rise to 0.8% from 0.5%.

Q1 GDP (Second Estimate) is due out at 8:30 a.m. as well and is expected to stay at 6.4%.

Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.

Treasury 7 Year Auction of $72 billion at 1:00 p.m. EDT

M&A Activity

Meetings of Note:

Sellside Meeting: Wolfe Transportation a& Industrial Conference (5/25-5/27) Truist Financial Services Conference (5/25-27) Jefferies IT Summit (5/25-26) Jefferies Renewable Energy Summit (5/25-27) Barrington Research Spring Conference (5/27) TD Securities Virtual Power Utilities Conference (5/27) Cowen Digital Dining Conference (5/27) Truist Life Sciences Conference (5/27) Citi Day of Direct Selling (5/27) Credit Suisse Healthcare Disruptive Technologies and Innovations Conference (5/27-5/28) Bank of America Consumer Fieldtrip (5/27) Bank of America Clean Energy Conference (5/27-28)

Company Meetings: AVLR CLLS ALTR CCK NPO CRL MRNA TKOMY SONY RJF  (Investor Meetings) VTNR BAYRY  (Conference Call)  

Industry Meetings: World Geothermal Congress (5/21-5/26)

Upgrades & Downgrades:

Wednesday’s Recommendations