CAPIS Morning Note – 8/5/24: Stocks Crushed This Morning As Japan Down Most Since 1987 Crash On Yen Intervention Issues

Overnight Summary: The S&P 500 closed Friday lower by -1.84% at 5346.56 from Thursday lower by -1.37% at 5446.68. The overnight high was hit at 5,345.50 at 6:45 p.m. EDT and the low was hit at 5201 at 2:20 a.m. EDT. The overnight range is 66 points. The current price is 5214.25 at 6:55 a.m. EDT […]

Overnight Summary: The S&P 500 closed Friday lower by -1.84% at 5346.56 from Thursday lower by -1.37% at 5446.68. The overnight high was hit at 5,345.50 at 6:45 p.m. EDT and the low was hit at 5201 at 2:20 a.m. EDT. The overnight range is 66 points. The current price is 5214.25 at 6:55 a.m. EDT lower by -161.75 points. Markets are approaching very oversold. More on this tomorrow.

Executive Summary: Another ugly morning. Futures are down over -1% this morning on equity indexes. This could be the third day in a row with the S&P 500 lower by more than -1%. Equity markets are clustering with multiple losses of -1% in a one month period.

July ISM Non-Manufacturing Index are due out at 10:00 a.m. EDT and are expected to rise to 51.%30 from 48.80%.
S&P Global US Services PMI are due out at 9:45 a.m. EDT and came in last month at 56.
3 & 6 Month Auction at 11:30 a.m. EDT.

Earnings Out After The Close:

Beats: INST +0.03, INFN +0.02 of note.
Flat: AMC of note.
Misses: of note.

Capital Raises:

IPOs For The Week: ACTU, YXT, ZENA, ZSPC
New IPOs/SPACs launched/News:
IPOs Filed/Priced:
Secondaries Filed or Priced:
- LOOP Form S-3.. Up to 7,072,220 Shares of Common Stock
- LRHC Form S-1.. 582,875 SHARES OF COMMON STOCK
Notes Priced:
Direct Offering:
Exchangeable Subordinate Voting Shares:
Selling Shareholders of note:
- OXY files for 29,560,619 share common stock offering by selling shareholder.
- OBE files for 668,933 share common stock offering by selling shareholders.
- ICU FORM S-3 – Up to 1,014,219 Shares of Common Stock Offered by the Selling Securityholders
Debt/Credit Filing and Notes:
Mixed Shelf Offerings:
- VIRT files mixed securities shelf offering.
- VSEC files mixed securities shelf offering.
- NEP files mixed securities shelf offering.
- RIGL files for $250 mln mixed securities 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 Last Week:

Movers Up: OMCL (39.47 +34.66%), TBIO (5.5 +34.15%), EXAS (57.08 +26%), INSP (150.67 +19.78%), CDNA (22.58 +18.78%), ALNY (273.14 +16.31%), NEO (17.23 +15.79%), RGEN (161.78 +14.91%), RMD (224.02 +13.69%), DXCM (72.41 +13.14%), SHAK (96.23 +20.12%), FTDR (44.07 +15.44%), LAD (295 +13.03%), RDWR (22.06 +18.92%), HLIT (13.98 +16.07%), OIS (5.37 +13.29%)
Movers Down: NVAX (11.78 -31.15%), MRNA (85.53 -29.96%), EBS (9.98 -28.55%), OEC (17.74 -26.66%), TPC (17.36 -33.41%), GRPN (11.64 -35.3%), RGS (23.35 -30.81%), GT (9.2 -23.97%), INTC (21.31 -32.02%), RMBS (42 -28.81%), LPSN (1.05 -28.57%), AMKR (28.61 -25.01%), OLED (172.19 -24.61%) of note.

News After The Close :

JPM responding to inquiries from CFPB regarding the transfers of funds through the Zelle Network
RTX awarded a $159.9 mln US Navy contract for MK 15 Close-In Weapon System upgrades
Barron’s + INTC ED D DUK 0n +/- on MRK BA PYPL.

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

None of note.

Exchange/Listing/Company Reorg and Personnel News:

XERS promotes Kevin McCulloch to President and COO, effective August 1
PLUG names Dean Fullerton as COO
YY promotes COO Ms. Ting Li to Chairperson and CEO, effective immediately

Dividends Announcements or News:

Stocks Ex Div Today: C ETN VALE AMP DOC SYF LAZ CALM
Stocks Ex Div Tomorrow: MET BKR LVS EQH NEP
DOV increases quarterly cash dividend to $0.515/share from $0.51/share

What’s Happening This Morning: Futures S&P 500 -182 NASDAQ 100 -920, Dow Jones -905 Russell 2000 -100. Asia and Europe are lower this morning. VIX Futures are at 32.05 from 18.86 yesterday while Bonds are at 3.714% from 3.94% on the 10-Year. Crude Oil and Brent are lower with Natural Gas lower as well. Gold, Silver and Copper lower. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $51,485 from $64,706 lower by -13.12% this morning.

Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):

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

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

Monday After the Close:

Tuesday Before The Open:

Earnings of Note This Morning:

Beats: TSN +0.20, THS +0.16, BCRX +0.11, SAH +0.09, AMR +0,03, SHC +0,03, FRPT +0.01 of note.
Flat: None of note.
Misses: BNTX -1.34, CG -0.05, TWKS -0,03 of note.
Still to Report: None of note.

Company Earnings Guidance:

Positive Guidance: FRPT of note.
Negative or Mixed Guidance: THS of note.

Erlanger Research Advance/Decline Chart: A/D lines were weak on Friday and for the week.

Gap Ups & Down In Early Pre-Market (+4% or down more than -4%):

Gap Up: ZVRA +23.3%, OCGN +2.9% of note.

Gap Down: COIN -14%, RIOT -12.4%, BITF -11.5%, AMC -8.9%, AGEN -6.4%, SMH -6.3%, ALTM -5.9%, CG -5.9%, GMAB -5.4%, XLK -5.3%, UUUU -5.1%, IWM -4.9%, QQQ -4.6%, IGV -4.4%, SLV -4.3%, OXY -3.9%, BNTX -3.7%, VIRT -3.6%, NEP -3.2%, SPY -3%, JPM -2.9%, FNKO -2.9%, PHG -2.8%, TLN -2.4%, USO -2.2%, INFN -2.2%, DIA -2%, of note.

Insider Action: AXR LTC see Insider buying with dumb short selling. TTSH AEHR 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: Global Selloff Intensifies As Traders See Multiple Risks. (Bloomberg)
5 Things You Need To Know To Start Your Day. (CNBC)
Morning Briefing For Bloomberg Subscribers. (Bloomberg)
Markets Wrap: Losses Cascade as Traders Look to Fed For Rescue. (Bloomberg)
Warren Buffet cuts Apple stake by 50%, shares fall -7%. (CNBC)
Elon Musk noted on Twitter that, “The Fed needs to drop rates. They have been foolish not to have done so already.”
Bitcoin plunges with worst loss since 2021. (Bloomberg)
Bloomberg’s The Big Take:Adani unveils succession plan. (Bloomberg)

Economic:

July ISM Non-Manufacturing Index are due out at 10:00 a.m. EDT and are expected to rise to 51.%30 from 48.80%.
S&P Global US Services PMI are due out at 9:45 a.m. EDT and came in last month at 56.

Geopolitical:

President Biden receives the Daily Briefing today at 10:00 a.m. EDT.
President Biden speaks with King Abdullah II of Jordan at 11:00 a.m. EDT.
President Biden and the First Lady head back to the White House from Wilmington, DE at 1:10 p.m. EDT.
President Biden meets with his National Security Team in the situation room at 2:00 p.m. EDT to discuss the Middle East.

Federal Reserve Speakers

Federal Reserve Chicago President Austan Goolsbee speaks on CNBC at 8:30 a.m. EDT.
Federal Reserve San Francisco President Mary Daly speaks at 5:00 p.m. EDT.

M&A Activity and News:

None of note.

Moving Averages On Major Indexes: Moves from 40% to 27% of the moving averages being positive.

Meeting & Conferences of Note:

- Sellside Conferences:
  - BTIG Biotechnology Conference
  - KeyBanc Capital Markets Technology Leadership Forum
  - Oppenheimer’s Biotech in the Berkshires
  - UBS Financial Services Conference
- Fireside Chat: None of note.
- Top Shareholder Meetings: APVO, CYD, OLK, SAI, URGN, UVV, WVE of note.
- Investor/Analyst Day/Calls: PGR, RA of note.

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.
- 2024 Olympics
- American Nuclear Society (ANS) Utility Working Conference
- FFANY Market Week

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.