CAPIS Morning Note – 8/21/24: Stocks Rebound. Treasury Auction at 1:00 p.m. EDT and FOMC Minutes at 2:00 p.m. EDT.

• 20-Year Bond Auction at 1:00 p.m. EDT.
• FOMC Minutes at 2:00 p.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:
  • FWONK files for 10,650,000 shares of common stock offering
  • LRHC: Form S-1.. UP TO 3,051,336 SHARES OF COMMON STOCK
  • MSGM: FORM S-1 – 949,310 Shares Class A common stock
  • XAIR: Form S-3.. 1,724,019 Shares of Common Stock
• Notes Priced:
  • KR Prices $10.5 Billion of Senior Notes
  • STT – Issuance of $1 Billion of Senior Debt
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note: 
  • DEC  files for 2,249,650 shares of common stock by selling shareholder
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • SPGC: FORM S-3 – $25,000,000 Mixed Shelf 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: BBAI +28.80%, KEYS +10.4%, IMMR +2.7%, MRAM +2.2%
• Movers Down: PAGS -4.1%, JKHY -4%, LZB -3.7%, DDD -3.6%, ALC -3.2%, FWONK -2.6%, LPSN -2.5%

News After The Close :

• • DRS awarded production order for $52 million was made under the current Family of Weapon Sights–Sniper (FWS-S) IDIQ contract
  • PSN to serve as lead designer on Honolulu rail project with a project value of $1.66 bln
  • MCHP detected potentially suspicious activity involving its IT systems; determines that unauthorized party disrupted use of certain servers and some business operations 
  • AGYS announces strategic acquisition of Book4Time, a spa management SaaS solution leader for ~$150 mln
  • H announces planned acquisition of the brands and most of the affiliates of Standard International
  • OSK awarded $1.54 bln U.S. Army contract 
  • SNX along with two other companies, awarded $848 mln U.S. Navy contract
  • 10-Q Delays

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

Exchange/Listing/Company Reorg and Personnel News:

•  

Dividends Announcements or News:

• Stocks Ex Div Today: EQIX TGT MPC AFL ADM OWL MRO WBA HAS PRI MKTX
• Stocks Ex Div Tomorrow: AMAT MCHP DFS KSPI SBAC WWD LFUS WD ENR  
• COKE  increases quarterly dividend to $2.50/share, up from $0.50/share; approves $1.0 bln share repurchase program
• PINE increases its quarterly dividend by 1.8% to $0.28/share

What’s Happening This Morning: Futures S&P 500 +10 NASDAQ 100 +30 Dow Jones +72 Russell 2000 +10.91. Asia is higher ex Japan while Europe is higher this morning. VIX Futures are at 15.95 from 15.85 yesterday while Bonds are at 3.814% from 3.871% on the 10-Year. Crude Oil and Brent higher with Natural Gas higher for a second day in a row. Gold lower with Silver and Copper higher. The U.S. Dollar is higher versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $59,305 from $60,526 lower by -0.25% this morning.

• Daily Positive Sectors: Higher led by Consumer Defensive and Healthcare of note.
• Daily Negative Sectors:  Energy, Consumer Cyclical, Financial, Technology and Materials of note.
• One Month Winners: Real Estate, Utilities, Healthcare and Consumer Defensive of note.
• Three Month Winners: Technology, Real Estate, Healthcare, Consumer Defensive, Financials and Utilities of note.
• Six Month Winners: Utilities, Technology, 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: SDIG +58%, BBAI +30.1%, IMMR +15.3%, TGT +14.5%, KEYS +11.8%, ZK +6.3%, VGR +6.2%, VRRM +5%, ALTR +3%, ZTO +3%, DEC +2.8%, MRAM +2.2%, HCM +2.1%, PRIM +2%

• Gap Down: JD -6.7%, BITF -6.4%, DDD -4.8%, LZB -3.4%, FWONK -2.8%

Insider Action: HR sees Insider buying with dumb short selling.  APEI PSNL 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: Obamas Fire Up Democrats But Warn of Tough Race For Harris. (Bloomberg)
• Pre-Market Movers TGT JD M TXN GLW TOL COTY  (CNBC)
• 5 Things to Know Before The Market Opens. (CNBC)
• Markets Wrap: Stocks mixed as traders await data for clues. (Bloomberg)
• Target (TGT) swings to growth as it cuts prices. (Bloomberg)
• Steel industry sees supply glut and weak demand. (CNBC)
• Ford (F) delays new EV plant and cancels three row SUV EV. (CNBC)
• Macy’s (M) lowers guidance.
• The Big Take: Ports become pawns in global trade. (Podcast)
• NYT The Daily: Inside Ukraine’s invasion of Russia. (Podcast)
• Marketplace: New online age verification tools. (Podcast)
• Wealthion: Bubble in private equity. (Podcast)

M&A Activity and News:

• None of note.

Moving Averages On Major Indexes:  Remain at 100% 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: CRC WWD TXN NTST EPR CCSI BV

Downgrades: SON SBUX CPAC CCOI