CAPIS Morning Note – 6/6/24: Stocks Flat. ECB Cuts Rates

• A quiet day.
• ECB just cut interest rates.

• IPOs For The Week: FLYE GAUZ NVL WAY
• New IPOs/SPACs launched/News:
  •  considers going public. (Bloomberg)
• IPOs Filed:
• Secondaries Files or Priced:
  • DX announces 10.5 mln share public offering.
  • LPG announces public offering of 2 mln common shares
  • RNLX files 26,815,841 ordinary shares
  • ANNX priced at $6.25
• Common Stock filings/Notes:
• Notes Priced of note:
  •   WEC issues an additional $37.5 mln aggregate principal amount of its 4.375% Convertible Senior Notes due 2027.
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
  •  NN files for 237,722 shares of common stock by selling shareholders; also files for 397,037 shares of common stock by selling shareholders
  • CDNS files for 1,740,931 shares of common stock by selling shareholders.
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • WY: files a mixed shelf offering
  • ET: files a mixed shelf offering.
• Rights Offering:
• PIPE:
• 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 :

• Biggest Gainers and Losers After The Close:
  • LULU +12.3%, SMAR +10.6%, SMTC +6.3%, BASE +4.5%, RNW +2.7%, GEF +1.3%
  • FIVE -15.8%, CXM -15.4%, VSCO -3.5%, ODFL -3.4%, DX -2.9%, HYLN -2.7%
  •  Items After the Close:
    • The S&P 500 hit its 25th record for the year on Wednesday. (Bloomberg).
    • Nvidia (NVDA) value passes $3 trillion and overtakes Apple in value. (BBC)
    • Apollo President notes , ” …Everything is Not Going to Be OK in Private Equity”. (Bloomberg)
    • Lulu Lemon (LULU) shares jump on buyback and profit forecast as well as earnings beat. (WSJ)
    • American Airlines (AAL) offers flight attendants immediate 17% wage hike. (Fox)
    • COST May Same Store Sales up +6.5%.
    • CBOE May Trading Volume. (Press Release)
    • Jim Cramer interviewed CEOs of CRWD and SNOW on Mad Money. (CNBC).

• Stock Splits or News:
• Buybacks or Repurchases:
  • SMAR announces new $150 mln share repurchase program.
  • THRM announces a new $150 mln share repurchase program.
• Exchange/Listing/Company Reorg and Personnel News:
  •  appoints Frederick Bohley as COO, effective immediately. 
• Dividends Announcements or News:
  •  Stocks Ex Div Today: CME NTES KHC KIM MOS LEA TEX
  • ODC increases quarterly cash dividend 7% to $0.31/share from $0.29/share

What’s Happening This Morning: Futures S&P 500 +1 , NASDAQ 100 +20.50 , Dow Jones -20 , Russell 2000 -6.07. Asia is higher and Europe is higher this morning. VIX Futures are at 13.31 from 13.60 yesterday.  Gold, Silver and Copper are higher. WTI Crude Oil and Brent Crude Oil are higher while Natural Gas is higher as well. US 10-year Treasury sees its yield at 4.297% from 4.338% yesterday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $70,994 from$70,877 lower by -0.248% this morning.

• Daily Positive Sectors: Technlogy, Communication Services, Industrials and Materials of note.
• Daily Negative Sectors: Real Estate, Utilities and Consumer Defensive of note.
• One Month Winners: Energy, Technology, Utilities and Communication Services of note.
• Three Month Winners: All led by Utilities, Energy,  Materials, Financials 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)

• Gap Up: SGMT +14%, NVAX +13.5%, SMAR +13.2%, SMTC +8.8%, LULU +7.7%, RLAY +5.2%, KEN +4.3%, FSM +3.9%, RNW +3.5%, SGML +2.8%, HALO +2.4%, BASE +2.1% of note.
• Gap Down:  CXM -23.6%, FIVE -16.3%, LPG -6.2%, APLD -4.3%, TOUR -3.8%, CHPT -3.5%, GPCR -3.2%, DX -2.2%, BTBT -2.1%, ANNX -2.1%, ODFL -2%of note.

Insider Action:   No stocks see Insider buying with dumb short selling.  No stocks 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.

• 5 Things To Now Before The Market Opens on Thursday. (CNBC)
• What You Need To Know To Start Your Day. (Bloomberg)
• Stocks Making The Biggest Moves in Pre-Market:  (CNBC)
• Market Wrap: Stocks lose steam as data sows worries. (Bloomberg)
• Bloomberg Lead Story: Nvidia’s Rise to $3 Trillion Fuels Jensanity. (Bloomberg)
• Robinhood (HOOD) to buy Bitstamp for $200 million
• Earth has hit 12 straight months of record heat in each month. (USA Today)
• Bloomberg: The Big Take: Stunning Blow For Modi. (Podcast)
• Bloomberg: Odd Lots: How Companies Got Smarter About Price Hikes. (Podcast)
• Marketplace: The universe is expanding faster than we thought. (Podcast)

Geopolitical: 

M&A Activity and News:

Moving Averages On Major Indexes: 80% of the moving averages are positive up from 60%.

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:

• Upgrades  COF PNW SEE RARE UAL of note.
• Downgrades ZIM TVST of note.