CAPIS Morning Note – 7/8/24: Merger Monday. Stocks Turn Modestly Positive After Overnight Weakness.

• Several deals were announced today, see M&A section.

• IPOs For The Week: ACTU, AZI, MJID, MSW, ORKT, OSTX, PGHL, QMMM, WOK
• New IPOs/SPACs launched/News:
  •  .
• IPOs Filed/Priced:
• Secondaries Filed or Priced:
  • UNCY filed to sell 50 million shares of common stock.
  • SONN filed to sell 5,770,140 shares of common stock issuable upon exercise of outstanding warrants.
• Notes Priced of note:
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
  • TASK files for 70,032,694 shares of common stock by selling shareholders
  • KGS also files for 59 mln share common stock offering by selling shareholders
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  •  KGS files mixed securities shelf offering.
  • TASK files $500 mln 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 For The Week:

• Movers Up: ADAP (+20.01%), EBS (+15.98%), MESO (+14.54%), GRFS (+11.9%), CENX (+21.37%), AU (+14.42%), HCC (+13.05%), CDE (+12.99%), PBI ( +25.2%), AZUL (+12.25%), LB (+29.37%), TSLA (+26.37%), SERV (+22.31%), GDS (+16.74%), HOLI (+15.39%), LPL (+12.14%),  DM (+21.55%),
• Movers Down: PCRX (-26.63%), CHRS (-22.83%), SLP (-20.23%), HRTX (-18.71%), QURE ( -14.62%), RCM (-12.58%), BLBD (-13.26%),  CONN ( -48.41%), BIG ( -16.76%), RRGB (-13.61%), SPWR (-30.74%), COMM (-13.41%), FFWM (-23.21%), FANH (-18.84%), NOAH ( -15.39%), STI (-15.09%), RILY ( -13.78%),  MED (-14.25%)

News After The Close :

• • SAH previously disclosed the CDK Hack now reasonably likely to have material impact on Q2 results.
  • Barron’s + on AMC INTC TMO HAS MAT KLG GE NOC XOM BLK SCHW  CB CME HIG MME TRV CAG

Buybacks or Repurchases:

• None of note.

Exchange/Listing/Company Reorg and Personnel News:

• TD Chief Compliance Officer departs as U.S. investigates the bank.

Dividends Announcements or News:

• Stocks Ex Div Today: DIS MU ROP EIX DGX
• Stocks Ex Div Tomorrow: MA CRM DG NYT ERIE

What’s Happening This Morning: Futures S&P 500 +1.00, NASDAQ 100 +8.53, Dow Jones +23 Russell 2000 +8.37. Asia is lower while Europe is higher this morning. VIX Futures are at 13.10 from 13.26 Friday while Bonds at 4.30% from 4.335% Friday on the 10-Year. Crude Oil and Brent are lower  with Natural Gas higher. Gold, Silver and Copper are lower for a second day in a row. The U.S. Dollar is higher versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $57,165 from $55,416 lower by -5.09% this morning.

• Daily Positive Sectors: Communication Services, Consumer Defensive, Healthcare, Technology and Consumer Cyclical of note.
• Daily Negative Sectors: Energy, Indutrials and Financials of note.
• One Month Winners: Technology, Real Estate, Healthcare Communication Services, Consumer Cyclical and Energy of note.
• Three Month Winners: Technology, Communication Services, Utilities, Consumer Cyclical and Consumer Defensive of note.
• Six Month Winners: Technology, Communication Services, Financials, Healthcare and Consumer Cyclicals of note.
• Twelve Month Winners: Technology, Communication Services, Financials, Energy, Industrials, and Consumer Cyclical of note.
• Year to Date Winners:  Technology, Communication Services, Financials, Consumer Defensive, Energy and Healthcare of note.

Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Gap Up: IDYA +21.7%, KGS +2.5%, PARA +2.5%, ML +2.3% of note.

• Gap Down: TASK -1.1%, VSTO -0.9%  of note.

Insider Action:  PLAY sees Insider buying with dumb short selling.   No other 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.

• 5 Things To Know Before The Market Opens on Monday morning. (CNBC)
• Stocks Making the Biggest Moves Pre-Market: PARA MORF NOW DPZ GILD. (CNBC)
• Market Wrap: U.S. Futures steady as French stalemate brings calm. (Bloomberg)
• Bloomberg Lead Story: France In Gridlocks Of Surprise Election Results. (Bloomberg)
• Hurricane Beryl made landfall in Texas and is expected to bring major flooding.
• Elon Musk calls META and its WhatsApp Spyware.
• Boeing (BA) to plead guilty in criminal case involving two 737 MAX crashes. (WSJ)
• Corning (GLW) raises Q2 guidance.
• AER announced its major business transactions during the second quarter 2024.
• Exxon (XOM) expects Q2 earnings to increase by $300 to $700 million due to changes in oil prices.
• Bloomberg: The Big Take: Zelensky talks about Trump, Biden and U.S. Election. (Podcast)

M&A Activity and News:

• Skydance to merge with Paramount Global (PARA).
• LGND to acquire APEIRON Biologics AG for $100 million.
• LLY to acquire Morphic (MORF) for a purchase price of $57 per share in cash.

Moving Averages On Major Indexes:  Moves from 86% to 73% 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: STNE UBSFY SLGN PNC FTV ECL COLM CNK

Downgrades: SAVE STT NOW

           Initiated: