Overnight Summary: The S&P 500 closed Wednesday lower by -2.31% at 5427.13 from Tuesday lower by -0.18% at 5555.74. The overnight high was hit at 5,489.25 at 6:15 p.m. EDT and the low was hit at 5451 at 4:15 a.m. EDT. The overnight range is 38 points. The current price is 5470,75 at 7:15 a.m. EDT lower by -1.25 points.
Executive Summary: Yesterday we wrote, “Expect a volatile day”. And we got that and then some. The NASDAQ and S&P 500 had their worst days since 2022. That is the bad news. The good news is that the indexes got it out of their system and are now oversold. Watch for a bottom in the next two to three trading days.
- There is a 7-Year Note Treasury auction at 1:00 p.m. EDT.
- The latest short interest data for the period of 6/27 through 7/12 (trade date) was out last night and NYSE fell -0.47% while NYSE rose 1.12%. More on this tomorrow morning.
Earnings Out After The Close:
- Beats: MTDR +0.29, STX +0.29, CB +0.24, MANH +0.22, AGR +0.15, RRR +0.15, ENVA +0.14, EQT +0.11, EWBC +0.10, HIW +0.08, PKG +0.08, CSGP+0.06, GOOGL +0.05, RRC +0.05, RNST +0.03, TRMK +0.03, ADC +0.02, FCF +0.02, MAT +0.02, TXN +0.01 of note.
- Flat: NXPI of note.
- Misses: PFSI -0.71, COF -0.25, VICR -0.12, TSLA -0.09, CNI -0.09, CALM -0.09, WFRD -0.08, NBHC -0.06, ENPH -0.06, VBTX -0.03, APAM -0.02 of note.
- Yet to Report:
- IPOs For The Week: ACTU AZI BLMZ FLAI NIPG PMAX ORKT PGHL OS CON LINE
- New IPOs/SPACs launched/News:
- IPOs Filed/Priced:
- Secondaries Filed or Priced:
- LAMR files common stock offering
- CSLR: files up to 30,450,000 Shares of Common Stock
- DGLY: files up to 11,952,191 Shares of Common Stock
- Notes Priced:
- Direct Offering:
- Exchangeable Subordinate Voting Shares:
- Selling Shareholders of note:
- TPET: 26,378,408 Shares of Common Stock Offered by the Selling Shareholder
- Debt/Credit Filing and Notes:
- Mixed Shelf Offerings:
- MMC files mixed shelf securities offering
- DHI files mixed shelf securities offering
- MODG files 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.
Biggest Movers Up & Down After The Close:
- Movers Up: VKTX +25%, MOH +12.50%, PI +6.9%, NOW +6.8%, PEGA +5.6%, KLAC +3.2%, CMG +2.9%.
- Movers Down: EW -16.2%, MXL -15.9%, F -11%, RHI -9.8%, TER -8.7%, KALU -8.1%, QS -6%, WM -4.7%, CYH -3.9%, ASGN -3.8%, OII -3.7%, ALGN -3.6%, INVH -3.3%, ORLY -2.9%, LVS -2.7%, HP -2%
News After The Close :
- Chipotle (CMG) beats estimates on burrito sales. (Reuters)
- Ford (F) loses $1.1 billion loss in its EV business. (MarketWatch)
- NASDAQ and S&P 500 put up the worst day since 2022. (Yahoo)
- Lineage raises $4.4 billion in largest IPO of the year. (MarketWatch)
- TXT lower on report it is close to acquiring the fuselage-making program for its V-280 military aircraft from Spirit AeroSystems (SPR). (Reuters)
- NBA signs new 11-year media agreements with Disney (DIS), NBCUniversal (CMCSA) and Amazon Prime Video (AMZN) through 2035-36 season. (Release)
- China cuts one-year loan policy rate. (Bloomberg)
Buybacks or Repurchases: Buybacks should be slow as most companies are in a blackout period as earnings season kicks into gear.
- BAC authorizes $25 billion stock repurchase program.
Exchange/Listing/Company Reorg and Personnel News:
- PYPL appoints Enrique Lores as new independent Board Chair.
Dividends Announcements or News:
- Stocks Ex Div Today: MMC BSBR ATR KALU
- Stocks Ex Div Tomorrow: COST PFE FAST J ACI SIG
- PAG increases quarterly cash dividend 11% to $1.07 per share from $0.96 per share
- BAC increases quarterly cash dividend 8% to $0.26 per share from $0.24 per share
- RSG increases quarterly cash dividend to $0.580 per share from $0.535 per share
- JOE increases quarterly dividend 17% to $0.14 per share from $0.12 per share
What’s Happening This Morning: Futures S&P 500 -4, NASDAQ 100 -17, Dow Jones +15, Russell 2000 -2.97. Asia and Europe are lower this morning. VIX Futures are at 17.35 from 15.13 yesterday while Bonds are at 4.23% unchanged on the 10-Year. Crude Oil and Brent are lower with Natural Gas higher. Gold, Silver and Copper are lower. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $64,231 from $66,412 lower by -2.48% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
- Daily Positive Sectors: Utilities and Healthcare of note.
- Daily Negative Sectors: Technology, Communication Services, Consumer Cyclical and Industrials of note.
- One Month Winners: Real Estate, Financials, Energy, Utilities and Consumer Cyclical of note.
- Three Month Winners: Technology, Real Estate, Financials, Utilities and Communication Services of note.
- Six Month Winners: Technology, Communication Services, Financials, Utilities and Energy of note.
- Twelve Month Winners: Technology, Communication Services, Financials, Industrials, and Energy of note.
- Year to Date Winners: Technology, Communication Services, Financials, Industrials, Utilities 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: SNY +1.51, EME +1.49, VC +0.56, RCL +0.45, HAS +0.44, NOC +0.43, AZN +0.26, HOG +0.23, LEA +0.21, LAZ +0.17, DOV +0.15, IMAX +0.13, VLO +0.11 of note. (GREATER THAN +0.10)
- Flat: KDP of note.
- Misses: NYCB -0.74, ARCH -0.32, WST -0.22, XRX -0.14, STM -0.13 of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: EME CBRE of note.
- Negative Guidance: VC LEA AAL LKQ RS BC STM WST of note.
Erlanger Research Advance/Decline Chart: A/D lines fell on Wednesday. Chart updated!
Gap Ups & Down In Early Pre-Market (+4% or down more than -4%):
- Gap Up: VKTX +18.3%, MOH +10.7%, ROL +8.8%, DAWN +7.9%, ARGX +7.6%, NOW +6%, UL +6%, PI +5.5%, PEB +5%, PEGA +4.8%, GGG +4.7%, INVH +4.1%, IBM +4.1%, GTY +4.1%, GL +3.9%, CMG +3.7%, CLS +3.2%, CHDN +3.1%, BTI +3.1%, BITF +2.7%, SNY +2.5%, MRAM +2.4%, GSHD +2.3%, WCN +2.3%, SPR +2.2%, UHS +2.2%, TOWN +2.2%, KLAC +2.1%, URI +2% of note.
- Gap Down: EW -21.9%, MXL -18.1%, F -13.3%, STM -12.4%, RHI -9.8%, WST -9.8%, TER -8.1%, QS -8%, STLA -7.6%, LKQ -6.2%, HON -5.9%, ORLY -5.2%, CYH -4.8%, WBD -4.7%, KALU -4.4%, ALGN -4.4%, AZN -4.4%, DOW -4.4%, WM -4.3%, ASGN -3.8%, SLM -3.3%, RIOT -3.2%, WFG -3.1%, NEM -3%, WTW -3%, CLB -2.4%, DHI -2.3%, RNR -2.1%, LVS -2% of note.
Insider Action: No names see Insider buying with dumb short selling. No names see 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.
- Bloomberg Lead Story: Biden Says Time For a Younger Voice In The Oval Office. (Bloomberg)
- What You Need To Know To Start Your Day. (Bloomberg)
- 5 Things You Need To Know To Start Your Day. (CNBC)
- Markets Wrap: Stocks extend losses as worries go beyond AI froth. (Bloomberg)
- American Airlines (AAL) cuts outlook as fare sales hurt carrier. (Bloomberg)
- Southwest Airlines (LUV) misses and moves to pre-assigned seating in 2025. (CNBC)
- Ford (F) shares tumble -13% on massive earnings miss. (CNBC)
- Barron’s – Busiest IPO week of the year. (Barron’s)
- Bloomberg: The Big Take: Spotty training of nurse practitioners. (Podcast)
Economic:
- Q2 GDP (advanced) is due out at 8:30 a.m. EDT and is expected to rise to 1.90% from 1.40%.
- June Durable Orders are due out at 8:30 a.m. EDT and are expected to improve to 0.4% from -0.1%.
- Weekly Jobless Claims are due out at 8:30 a.m. EDT.
- Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.
Geopolitical:
- The President receives the Daily Briefing today at 10:00 a.m. EDT.
- President Biden meets with Israel President Netanyahu at the White House at 1:00 p.m. EDT and then meet with families of hostages in Gaza at 2:30 p.m. EDT.
Federal Reserve Speakers
- Federal Reserve speakers are now in blackout mode as next week the FOMC meets on Tuesday and Wednesday.
M&A Activity and News:
Moving Averages On Major Indexes: Moves from 63% to 40% of the moving averages being positive.
Meeting & Conferences of Note:
-
- Sellside Conferences:
- Fireside Chat: None of note.
- Top Shareholder Meetings: FAM, FGB, EHAB, ELLO, JAZZ, MASI, MOTS
- Investor/Analyst Day/Calls: BCAB, NVEE
- Update: None of note.
- R&D Day: None of note.
- FDA Presentation:
- Company Event:
- Industry Meetings or Events: Note that Former President Trump will speak on Saturday at the Bitcoin Conference throwing his support behind Bitcoin.
- AIDS Conference
- Bitcoin Conference
- Farnborough Air Show
- National Homeland Security Conference
- Comic-Con starts in San Diego
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.
- Upgrade: MFIC FLEX ARGX PII BIRK ALAR
- Downgrade: SIRI
