CAPIS Morning Note – 8/13/24: Starbucks CEO Out, Chipotle CEO Takes Over. PPI Due Out Shortly.

• This week is all about CPI and PPI and where inflation is going. Also, retail sales are out this week.
• 3 and 6-month Bill Auction at 11:30 a.m. EDT.

Earnings Out After The Close: 

• IPOs For The Week: IBG, PMAX, SKK, TDTH, YXT
• New IPOs/SPACs launched/News:
• IPOs Filed/Priced:
• Secondaries Filed or Priced:
  • WES announces secondary public offering of 2,850,000 common units
  • BDRX: Form F-1.. 4,349,102,800 Ordinary Shares Representing 10,872,757 American Depositary Shares
  • LTH: Pricing of Public Offering of 12,000,000 Shares of Common Stock.. Priced @$21.75
  • VTNR: Form S-3.. 3,077,263 Shares
• Notes Priced:
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
  • AHR files for 3,501,976 shares of common stock by selling shareholders
  • ANNX files for 3,000,000 shares of common stock by selling shareholders
  • OXY launches underwritten secondary public offering of 29,560,619 shares of its common stock by selling shareholder
  • AMSC also files for stock offering by selling shareholders 
  • BBLG: Form S-3.. 1,617,919 Shares of Common Stock Offered by the Selling Stockholders
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • DD files mixed shelf securities offering 
  • NTST files mixed shelf securities offering
  • AHR files mixed shelf securities offering
  • AMSC files mixed shelf securities offering
  • APGE files mixed shelf securities offering 
  • MDIA: Form S-3.. $24,657,596 Mixed Shelf Offering
• PIPE:
  • RXO announces 20,954,780 shares private placement with MFN Partners, LP and certain accounts managed by Orbis Investments. Used to fund Coyote Logistics deal.
• Convertible Offering & Notes Filed:
  • MARA Pricing of Oversubscribed Offering of Convertible Senior Notes
  • MCD: Form S-3ASR .. Medium-Term Notes Due from One Year to 60 Years from Date of Issue
• 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: PACS +9.5% RUM +4.2% KYTX +2.9% WULF +2.2%
• Movers Down: SYRS +70.3% WES -2.3% TNDM -2.20% 

News After The Close :

• • AB announces preliminary assets under management (AUM) increased to $777 bln during July 2024 from $770 bln at the end of June
  • VRTS reports preliminary assets under management (AUM) of $178.1 billion and other fee earning assets of $2.5 billion for total client assets of $180.6 billion as of July 31, 2024
  • IVZ reports preliminary month-end assets under management (AUM) of $1,732.0 billion, an increase of 0.9% versus previous month-end
  • AMK  releases its “AssetMark Monthly Knowledge” report today, Platform assets of $122.2 billion at the end of July, up 18.4% year-over-year 
  • VCTR reports total assets under management (AUM) of $172.4 bln, up from $168.7 bln as of June 30, 2024
  • CPA announces that for July 2024, Copa Holdings’ capacity (ASMs) increased by 11.3%, while system-wide passenger traffic (RPMs) increased by 9.5%, compared to 2023
  • BA awarded $264 mln U.S. Navy contract 
  • LL Flooring to close 94 stores as files for bankruptcy. (Fox Business)
  • 10-Q Delays FRST RILY
  • Elon Musk interviewed Republican Presidential Candidate Donald Trump for almost 2 hours after an hour delay due to a potential hack. (Bloomberg)

Buybacks or Repurchases: Buybacks should be slow as most companies are in a blackout period as earnings season kicks into gear.

• ENVA announces new $300 million share repurchase program

Exchange/Listing/Company Reorg and Personnel News:

• ROG CFO Ram Mayampurath resigns, effective August 12; Laura Russell will assume the role of interim CFO
• LXU announces the retirement of Richard Roedel as Chairman of the Board of Directors; President and CEO, Mark Behrman, to Succeed Mr. Roedel as Board Chairman

Dividends Announcements or News:

• Stocks Ex Div Today: AWK ETR RYAN DCI IGT HTGC KMT
• Stocks Ex Div Tomorrow: URI STZ KVUE ED WAB AER BAH CLX OGS CAKE

What’s Happening This Morning: Futures S&P 500 +8.25 NASDAQ 100 +50 Dow Jones -42 Russell 2000 -4.98. Asia is higher while Europe is lower this morning. VIX Futures are at 19.48 from 19.25  yesterday while Bonds are at 3.902% from 3.959% on the 10-Year. Crude Oil and Brent lower with Natural Gas higher. Gold, Silver and Copper lower. The U.S. Dollar is higher versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $58,796 from $59,513 lower by -0.52% this morning.

 

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

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

• Gap Up: PACS +11.2%, HUYA +9.2%, RUM +7.1%, WULF +4.8%, KYTX +2.9%

• Gap Down: SYRS -61.1%, RILY -10.6%, ONON -8.8%, TME -6%, RXO -5.1%, HBM -4.9%, HD -4.9%, WES -3.8%, AHR -3.7%, SE -3.3%, KGS -2.6%, FRST -2.3%, JBLU -2.3%, UTZ -2.1%

Insider Action: GT CRGY ARCB see Insider buying with dumb short selling.  TTSH CDLX 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: Musk Cozies up to Trump. (Bloomberg)
• Pre-Market Movers HD CMG SBUX HRL. (CNBC)
• What You Need To Know To Start Your Day. (Bloomberg)
• Markets Wrap: US futures waver as investors await inflation data this morning. (Bloomberg)
• Israel on high alert ahead of a potential attack from Iran. (WSJ)
• General Motors (GM) to eliminate jobs in China. (Bloomberg)
• Huawei to introduce AI chip to challenge Nvidia (NVDA). (WSJ)
• SEC picks up scrutiny on B.Riley. (Bloomberg)
• Bloomberg’s The Big Take: Middle East Trillions force Wall Street to make concessions. (Bloomberg)
• Marketplace: Remembering the former CEO of You Tube, Susan Wojcicki. (Podcast)
• NYT: The Daily: Harris takes the lead in some key states. (Podcast)
• Wealthion: Global markets are on a knife’s edge. (Podcast)

M&A Activity and News:

• None of note.

Moving Averages On Major Indexes:  Moves from 43% to 47% of the moving averages being 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: SPRY LNT LFUS HRL DCO

Downgrades: PCRX