CAPIS Morning Note – 7/2/24: Stocks Lower As Yields Rise, Powell To The Rescue With Speech Shortly

• Federal Reserve Chairman Powell speaks this morning at the ECB forum alongside ECB Chairman Christine Lagarde and other Central Bankers.
• Pay attention to the May JOLTS data as markets focus on job’s data for clues on the economy.

• IPOs For The Week: GLE MJID NAMI PGHL
• New IPOs/SPACs launched/News:
  • Northern Data weighing IPO of its AI cloud computing and data center businesses valued as high as $16.0 bln. (Bloomberg)
• IPOs Filed/Priced:
• Secondaries Filed or Priced:.
• Notes Priced of note:
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
  • BEN files for 31,557,117 shares of common stock by selling shareholder.
  • LIV files for 1,300,000 shares of common stock by selling shareholders; relates to warrants. 
  • AZTR files for 217,082 shares of common stock by selling shareholders.
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • GL files mixed shelf securities offering.
  • AZTR  files $50 mln mixed shelf securities offering.
  • NUWE files a $25 million mixed shelf securities offering.
  • SJ files a $250 million mixed shelf securities 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 For The Week Of Note:
    • No moves of greater than 2%.
    • AZTR -5.9%, YMAB -2.3%.
  • Conn’s (CONN) consider bankruptcy as sales slow. (Bloomberg)
  • Barry Diller may make a run for Paramount (PARA). (NYT)
  • IBM and Microsoft (MSFT) to combine efforts on AI.
  • Blackstone (BX) sells Alinamin to MBK Partners for an estimated $2.2 billion.

Buybacks or Repurchases:

• TLNE  announced that the Company has executed an agreement to complete the repurchase of approximately 2.4 million shares of its outstanding common stock from affiliates of Rubric Capital Management LP at a purchase price of $116.00 per share.

Exchange/Listing/Company Reorg and Personnel News:

• Six Flags and Cedar Fair complete merger and will begin to trade as Six Flags (FUN).
• SAVE announces appointment of Fred Cromer as Executive Vice President and Chief Financial Officer, effective July 8, 2024.
• CFR announces that Jerry Salinas, group EVP and CFO of Cullen/Frost and Frost Bank, has decided to retire at the end of 2024.
• GE extended Chairman and CEO H. Lawrence Culp, Jr.’s employment through December 31, 2027, or such later date as mutually agreed.

Dividends Announcements or News:

• Stocks Ex Div Today: RSG A UMC BRX OPRA
• OZK increases its quarterly dividend by 2.6% to $0.40/share.

What’s Happening This Morning: Futures S&P 500 -26, NASDAQ 100 -117 , Dow Jones -147 , Russell 2000 -7.87 . Asia is mixed while Europe is lower this morning. VIX Futures are at 13.58 from 13.89 yesterday while Bonds at 4.45% from 4.412% yesterday on the 10-Year. Crude Oil and Brent are higher with Natural Gas lower. Gold is lower while Silver and Copper are higher. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at  $62,680 from $62,871 lower by -0.84% this morning.

 

• Daily Positive Sectors: Technology, Consumer Cyclical, Energy and Communication Services of note.
• Daily Negative Sectors: Industrials, Real Estate, Materials and Utilities of note.
• One Month Winners: Technology, Real Estate, Healthcare and Communication Services of note.
• Three Month Winners: Communication Services, Utilities, Technology, Consumer Defensive and  of note.
• Six Month Winners: Communication Services, Technology,Healthcare and Financials of note.
• Twelve Month Winners: Communication Services, Technology, Financials, Energy, Industrials, and Consumer Cyclical of note.
• Year to Date Winners:  Communication Services, Technology, Financials, Healthcare, Energy 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: EXEL +5.4%, USAP +4.4%, OPAL +2.7%, LVO +2% of note.

• Gap Down: AZTR -6.5%, DHX -4.4%, MSI -3.7%, YMAB -2.3% of note.

Insider Action:   AFG sees Insider buying with dumb short selling.  CTRN 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 Know Before The Market Opens on Tuesday morning. (CNBC)
• What You Need To Know To Start Your Day. (Bloomberg)
• Stocks Making the Biggest Moves Pre-Market: TSLA TEAM PARA DHI LEN CRWD. (CNBC)
• Market Wrap: U.S. Futures slip ahead of Job’s data and Nvidia weakness. (Bloomberg)
• Bloomberg Lead Story: U.S. Jobs Data Shows Slowing and Concerns Fed. (Bloomberg)
• Eurozone Inflation slowed to 2.5%. (CNBC)
• Barron’s lead story is on Zero Dated Options.
• In speech this morning, Fed Chicago President Goolsbee said keeping rates restrictive for too long is a problem.

M&A Activity and News:

• Blackrock (BLK) buys Preqin for $3.2 billion. (Bloomberg)
• Boeing (BA) to buy Spirit AeroSystems (SPR) for $4.7 billion. (CNBC)

Moving Averages On Major Indexes:  Moves from 73% to 77% of the moving averages now positive.

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.

Upgrades: BAC PYPL

Downgrades: CRWD LAW DHI FVRR GS MPW SHLS

           Initiated: RAPP WAY