CAPIS Morning Note – 9/17/24: Stocks Higher As FOMC Starts Meeting, Intel Floods Market With News Stories After The Close

• Beats:  None of note.
• Flat: 
• Misses:  None of note.

• IPOs For The Week: AAM, CUPR, DTSQ, FLAI, IBO, KAPA, VTRO
• New IPOs/SPACs launched/News:
• IPOs Filed/Priced:
• Secondaries Filed or Priced:
  • APVO: $3.0 Million Offering Priced At-the-Market Under Nasdaq Rules
  • GCTK: Form S-1 Offering common stock
  • NUVL: Pricing of Upsized Public Offering of Common Stock.. 5,000,000 shares @$100
  • SONM: Form S-3.. Up to 700,000 Shares of Common Stock Including up to 350,000 Shares of
    Common Stock Issuable upon Exercise of Warrants
  • VMAR – Closing of Common Share Offering
  • XXII – Form S-3.. 1,399,776 Shares of Common Stock
• Notes Priced:
• Direct Offering:
• Exchangeable Subordinate Voting Shares:
• Selling Shareholders of note:
• Debt/Credit Filing and Notes:
• Mixed Shelf Offerings:
  • EG files mixed shelf securities offering  
• PIPE:
  • BOX files $400 mln convertible notes offering in a private placement to qualified institutional buyers
  • DRMA: $3.5 Million Private Placement Priced At-The-Market Under Nasdaq Rules
• Convertible Offering & Notes Filed:
  • MSTR to offer $700 mln aggregate amount of convertible senior notes due 2028 
• 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: INTC +8.7%, CMNC +3%, IMAB +2.8%
• Movers Down: ARAY -5%, BOX -2.4%, RCAT -2%, CPF -2%

News After The Close :

• • INTC and AMZN announce co-investment in custom chip designs under a multi-year, multi-billion-dollar framework involving product and wafers from Intel.
  • INTC to turn foundry business into a subsidiary that could allow it to raise outside funding. (CNBC)
  • INSG enters into a definitive agreement to sell its fleet management and telematics business in an all-cash transaction for $52 million 
  • INTC continues to climb afterhours; to postpone new factories in Germany and Poland. (Bloomberg)
  • Steel Dynamics (STLD) guides lower with EPS of $1.94 to $1.98 from $2.04.
  • Starbucks (SBUX) North America CEO Michael Conway to retire, effective November 30
  • 10-Q or 10-K Delays – ARAY, RCAT of note.
  • NASDAQ Delisting Notice – None of note.

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

• Microsoft (MSFT) plans $60 billion stock buyback. (Bloomberg)

Exchange/Listing/Company Reorg and Personnel News:

• • UDMY to eliminate approximately 280 of its employees; expects to rehire around half of the impacted roles, primarily in lower cost geographies
  • TCPC Chairman and CEO Rajneesh Vig to resign as Chairman and CEO and continue serving on Board until January 31, 2025; appoints new Chairman and CEO
  • SGA promotes Wayne Leland to COO
  • CHD promotes Richard Dierker to President and CEO, effective March 31; Matt Farrell to continue as Chairman through transition period 
  • HR CFO Kris Douglas to step down; names Rob Hull as COO; reaffirms Q3 and FY24 guidance
  • Starbucks (SBUX) North America CEO Michael Conway to retire, effective November 30

Dividends Announcements or News:

• Stocks Ex Div Today: LRCX APH ECL VRT PHM CINF HBAN BSY EXP JJSF ATAT GDEN
• Stocks Ex Div Tomorrow: CRM VICI LAMR WHF JILL
• Microsoft (MSFT) to raise dividend 10%. (Bloomberg)

What’s Happening This Morning: Futures S&P 500 +23 NASDAQ 100 +126 Dow Jones +131 Russell 2000 +13. Asia is higher ex Japan with Europe is higher this morning. VIX Futures are at 18.22 from 18.17 yesterday while Bonds are at 3.612% from 3.63% on the 10-Year. Crude Oil and Brent are higher with Natural Gas lower for a second day in a row. Gold and Silver are lower with Copper higher. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $59,101 from $58,747 higher by 2.02% this morning.

• Daily Positive Sectors: Energy, Financials, Utilities, Communication Services and Materials of note.
• Daily Negative Sectors: Technology and Consumer Cyclicals of note.
• One Month Winners: Real Estate, Utilities, Consumer Defensive, Financials, Healthcare, Consumer Cyclicals and Industrials of note.
• Three Month Winners: Real Estate, Utilities, Financials, Consumer Defensive, Healthcare and Industrials of note.
• Six Month Winners: Utilities, Consumer Defensive, Real Estate, Technology, Financials and Communication Services of note.
• Twelve Month Winners: Technology, Financials, Communication Services, Industrials, Utilities  Consumer Defensive and Healthcare note.
• Year to Date Winners: Technology, Utilities, Financials, Communication Services, 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: INTC +6.7%, DADA +6.6%, HITI +5.5%, IMAB +4.7%, HPE +3.5%, MSTR +2.8%, INSG +2.3%, TPG +2.3%, SGML +2%, CLF +2%, MSFT +2%

• Gap Down: NUVL -2.9%, BOX -2.5%

Insider Action: ACDC GTLS see Insider buying with dumb short selling. TTSH sees 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.

• What You Need To Know to Start Your Day. (Bloomberg)
• 5 Things To Know Before The Market Opens. (CNBC)
• Pre-Market Movers: MSFT SHOP INTC (CNBC)
• Bloomberg Lead Story: Markets Hinge On Powell Emulating Greenspan’s Soft Landing. (Bloomberg)
• Markets Wrap: Stocks rise with retail data in focus ahead of Fed. (Bloomberg)
• Hedge Fund Managers David Tepper and Michael Burry up their bets on China. (CNBC)
• Bloomberg: The Big Take – Trump’s Banker Brawls With Whistleblowers, Marxists and Shorts. (Podcast)
• Wealthion: Weekly Recap – Why Fed Rate Cuts won’t save us. (Podcast)

M&A Activity and News:

• None of note.

Moving Averages On Major Indexes: Remains 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: SHOP RLMD LSCC HPE GEV DCOM BNTX APP

Downgrades: SEDG