CAPIS Morning Note – 8/14/24: Stocks Flat Into CPI Data Due Up Shortly

• This week is all about CPI and PPI and where inflation is going. Retail sales are out tomorrow morning.

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:
  • RNA  to offer $250 mln shares of its common stock in a public offering
  • EVOK: Form S-3.. 3,266,107 Shares of Common Stock Underlying Outstanding Warrants
  • INKT: Form S-3.. 4,640,000 SHARES OF COMMON STOCK
  • TCBP Pricing of $2.0 Registered Direct Offering
• Notes Priced:
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
  • ACHR  files for 49,283,582 shares of common stock by selling shareholders 
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • LMFA: Form S-3.. $150,000,000 Mixed Shelf
• PIPE:
• Convertible Offering & Notes Filed:
  • ALLY: Form S-3ASR – Ally Financial Term Notes Due from 9 Months to 30 Years from Date of Issue
  • BTOG: Form F-3.. Up to 52,134,238 Ordinary Shares Underlying Senior Secured Convertible Notes Up to
    3,545,704 Ordinary Shares Underlying Warrants
  • CLF Upsizing and Pricing of an Additional $600 Million Senior Guaranteed Notes due 2032
• 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: SERV +11.3%, GRAL +10.5%, FLUT +9.2%, MRCY +8.8%, NAVI +8.2%,  XP +7.2%, INTA +6.1%, SVM +5.8%, CAE +4.5%, SLDB +4.3%, NU +3.7%, FIX +3.1%, FATE +3%, NATL +2.1%
• Movers Down: OUST -17%, IBTA -7.7%,  RNA -4.4%, NPCE -3.8%, USPH -3.7%, ACHR -2.2%,  DKNG -2.1%,

News After The Close :

• • Ibotta (IBTA) will be Instacart’s (CART) preferred third-party coupon provider across all eligible categories of items on its mobile app and website
  • USFD to repurchase $221 mln of its common shares owned by a fund managed by Sachem Head Capital Management LP, at a price of $52.28 per share
  • GOOGL down over -1% after the Justice Department considers breaking up Google following court ruling. (Bloomberg)
  •  AG of Texas suing General Motors (GM) for collecting drivers’ data and selling it to several companies. (Release)
  •  Elliott Investment Management to launch proxy fight against Southwest (LUV). (WSJ)
  • ALL to sell American Heritage, its employer voluntary benefits business, to StanCorp for $2 bln in cash 

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

• FIX  increases the shares authorized and remaining as available to purchase back up to 1,000,000 shares by authorizing the Company to acquire up to 411,426 additional shares of its outstanding common stock

Exchange/Listing/Company Reorg and Personnel News:

• LZ appoints current CFO Noel Watson as COO, effective August 13

Dividends Announcements or News:

• Stocks Ex Div Today: URI STZ KVUE ED WAB AER BAH CLX OGS CAKE
• Stocks Ex Div Tomorrow: MSFT LLY XOM TJX KLAC KR FANG VMC IP CF
• CCNE increases quarterly cash dividend to $0.18/share from $0.175/share 

What’s Happening This Morning: Futures S&P 500 +1 NASDAQ 100 -3 Dow Jones +7 Russell 2000 +7. Asia is higher while Europe is higher this morning as well. VIX Futures are at 17.52 from 19.48 yesterday while Bonds are at 3.831% from 3.902% on the 10-Year. Crude Oil and Brent lower with Natural Gas higher for a second day in a row. Gold, Silver and Copper higher. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $60,980 from $58,796 higher by 0.35% this morning.

 

• Daily Positive Sectors:  Technology, Consumer Cyclicals, Healthcare and Communication Services of note.
• Daily Negative Sectors:  Energy 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: SERV +15%, MRCY +8.8%, GRAL +8%, FLUT +6.6%, INTA +6.3%, XP +6%, SVM +4.7%, QFIN +4.7%, FATE +4.5%, CAE +4.4%, NU +3.9%, DOLE +3.1%, SLDB +2.9%, UBS +2.5%, NATL +2.4%

• Gap Down: OUST -16.1%, IBTA -8.1%, USPH -3.9%, RNA -3.8%, NAVI -2.8%

Insider Action: MYRG GT MRC 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: US Inflation Data To Show Another Modest Increase, Cementing A Fed Cut. (Bloomberg)
• Pre-Market Movers K GOOGL FLUT EAT ARM CAH (CNBC)
• 5 Things to Know Before The Market Opens. (CNBC)
• Markets Wrap: US Futures are steady before CPI as UBS helps Europe. (Bloomberg)
• Reserve Bank of New Zealand agreed to ease the level of monetary policy restraint by reducing the OCR to 5.25%. (Release)
• Japanese Prime Minister Kishida to step down as support drops. (Bloomberg)
• Mortgage refinancings up 35% this week as interest rates hit the lowest level in a year.
• Marketplace: Can AI accurately simulate a human? (Podcast)
• NYT: The Daily: Google’s Tech Monopoly Comes After Microsoft Monopoly. (Podcast)
• Wealthion: The Death By A Thousand Cuts. (Podcast)

M&A Activity and News:

• Mars to buy Kellanova (K) for $36 billion.

Moving Averages On Major Indexes:  Moves from 47% to 70% 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: IP SRAD SBUX (3) NKTK NCNO ILMN HUYA HBM CDTX VSEC ENVA DTE BTDR WULF

Downgrades: