CAPIS Morning Note – 9/30/24: Stocks Close Out The Quarter Today, Futures Lower.

Overnight Summary: The S&P 500 closed Friday lower by -0.13% at 5738.17 from Thursday higher by 0.40% at 5745.37. The overnight high was hit at 5802.75 at 8:15 p.m. EDT and the low was hit at 5779 at 6:00 a.m. EDT. The overnight range is 23 points. The current price is 5785 at 7:05 a.m. EDT […]

Overnight Summary: The S&P 500 closed Friday lower by -0.13% at 5738.17 from Thursday higher by 0.40% at 5745.37. The overnight high was hit at 5802.75 at 8:15 p.m. EDT and the low was hit at 5779 at 6:00 a.m. EDT. The overnight range is 23 points. The current price is 5785 at 7:05 a.m. EDT lower by -6.25 points.

Most Important Article Of the Morning: Gold’s Record Run Can’t Continue Forever, Right? (Bloomberg)

Executive Summary: Stocks are starting out on a weak note with futures lower as a pending port strike looms tonight at midnight impacting the East Coast to the Gulf Coast.

Chicago PMI out at 9:45 a.m. EDT.

Earnings Out After The Close:

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

Capital Raises:

IPOs For The Week:
New IPOs/SPACs launched/News:
IPOs Filed/Priced:
Secondaries Filed or Priced:
- AGFY: Form S-1.. 4,700,000 Shares of Common Stock
- APCX: Form S-1.. Up to 5,000,001 Shares of Common Stock Underlying Warrants
- FBIO: Form S-1 6,189,786 Shares of Common Stock
- TOON: Form S-1 — Common stock and warrant offering
Notes Priced:
Direct Offering:
Exchangeable Subordinate Voting Shares:
Selling Shareholders of note:
- SNDA files for 7,126,318 shares of common stock offering by selling shareholders.
Debt/Credit Filing and Notes:
Mixed Shelf Offerings:
- OHI files mixed shelf securities offering
- SERV files $200 mln mixed shelf securities offering
PIPE:
Convertible Offering & Notes Filed:
- USFD announces that it has priced its previously announced notes offering and has agreed to issue and sell $500 million aggregate principal amount of 5.75% senior unsecured notes due 2033.
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: BHVN (51.42 +27.3%), TSE (5.50 +22.49%), JD (39.66 +38.92%), TAL (10.76 +33.44%), PDD (132.86 +32.99%), MLCO (7.77 +30.15%), HTHT (37.85 +26.97%), NIO (6.52 +23.5%), SERV (9.17 +22.59%), BABA (107.88 +22.19%), NOAH (11.13 +25.56%).
Movers Down:SIGA(7.03 -16.58%), ACHC(63.94 -16.32%),NVRO(5.24 -10.43%), MEDP(328.76 -10.1%),NVCR(15.69 -10.09%),BLBD(48.32 -11.36%), MMYT(96.11 -11.39%), LIND(9.20 -10.33%),SUPV (7.42 -10.28%), LBRT(18.82 -10.04%), PARR(17.43 -9.92%), PUMP (7.44 -9.77%), PTEN (7.57 -9.62%) and HE(9.88 -9.98%)

News After The Close :

- Jana Partners Management discloses 5.8% passive stake as of September 20 in Rapid7 (RPD).
- GE Healthcare (GEHC) announces FDA approval of Flyrcado (flurpiridaz F 18) injection PET radiotracer for enhanced diagnosis of coronary artery disease
- OpenAI anticipates around $3.7 bln in annual sales in 2024, surging to $11.6 bln next year; however, expects $5.0 bln in losses this year, Microsoft has a large stake. (NYT)
- LMT awarded $3.23 bln U.S. Air Force contract as well as a $358 mln U.S. Air Force contract modification.
- RTX awarded $737 mln U.S. Navy contract as well as a $526 mln U.S. Navy contract.
- BA awarded $251 mln U.S. Defense Logistics Agency contract modification.
- DUK begins power restoration efforts in Carolinas after Helene causes 1.7 million customer outages and historic flooding, multiday outages expected, crews restore power for over 407,000 customers, establish estimated time of restoration for several counties.
- Barron’s + on ACLX, ARTV, BNTX, IPSC, FATE, NKTX, BLFS, EXAS, WGS, ILMN, RVMD, SRPT, GPCR, AMGN, ARGX, MDGL, PCYX, VRTX, HUM, NVO, TEVA, TER, COHU, SLM. Mixed on GM
- 10-Q or 10-K Delays – None 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.

- MTN increased the Company’s authorization for share repurchases by 1.1 million shares to approximately 1.7 million shares.
- OVV receives approval for renewal of normal course issuer bid; to purchase up to 25,920,545 common shares during the 12-month period commencing October 3, 2024

Exchange/Listing/Company Reorg and Personnel News:

- PRTA announces that Chief Medical Officer Hideki Garren will pursue an opportunity at a large pharmaceutical company; co will initiate a search for next Chief Medical Officer.
- AURA CFO Julie Feder to depart, effective October 25; Amy Elazzouzi, VP, Finance, appointed interim CFO

Dividends Announcements or News:

Stocks Ex Div Today: SYK DE MDLZ ITW USB MPWR HUM AVB WTW FITB BXP LII ARE ZBH ESS STLD SUI WPC CPT HST REXR NLY BEN LECO DOX EGP TTC ENSC GOLD AGNC FMC FR ADC STAG CDP STWD AXS RHP TRNO DDS BXSL EPRT
Stocks Ex Div Tomorrow: APD O PWR A VTR CAH STT RJF CUBE EHC FRT INGR CHH PEGA RITM TNET FULT UPBD ANDE TWO WWW

What’s Happening This Morning: Futures S&P 500 -15 NASDAQ 100 -79 Dow Jones -64 Russell 2000 -3.50 (at 7:50 a.m. EDT). Asia is lower ex Australia while Europe is lower. VIX Futures are at 18.42 from 17.82 yesterday while Bonds are at 3.771% from 3.777% on the 10-Year. Crude Oil and Brent are lower with Natural Gas higher. Gold, Silver and Copper lower. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $63,566 from $65,492 lower by -3.56% this morning.

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

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

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

Monday After the Close: None of note

Tuesday Before The Open:

Earnings of Note This Morning:

Beats: None of note.
Flat:
Misses: None of note.
Still to Report: CCL

Company Earnings Guidance:

Positive Guidance: None of note.
Negative or Mixed Guidance: None of note.

Advance/Decline Weekly Update With Both Daily and Weekly Stats: The Daily A/D Line has made a new high while the S&P 500 keeps making new highs. A small divergence.

Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):

Gap Up: NIO +13.7%, BGNE +9.3%, JD +7.2%, MESO +7%, ASHR +6.1%, MNKD +4.7%, BABA +4.3%, J +4%, NYXH +3.7%, SQNS +3.6%, AEYE +3.5%, BIDU +3.0%, ELVN +2.7%, FXI +2.5%, USFD +2.2%, LEGN +2.2%

Gap Down: STLA -13.1%, ALV -1.9%

Insider Action: PBF sees 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.

5 Things To Know Before The Market Opens. (CNBC)
What You Need to Know To Start Your Day. (Bloomberg)
Pre-Market Movers: . (CNBC)
Hurricane Helene update as 90 dead and Asheville isolated. (CNBC)
Pending Port Strike at midnight as mentioned last week. (CNBC)
Bloomberg Lead Story: Israel Hits Beirut As Strikes Escalate. (Bloomberg)
Markets Wrap: Stocks slump as profit warnings dull China strength. (Bloomberg)
Stellantis warns on profits. (CNBC)
Bloomberg Big Take: Harvard Endowment Rich Pay and Poor Returns. (Podcast)
Bloomberg Odd Lots: Three Things Driving a Nuclear Power Renewal. (Podcast)
Wealthion: Weekly Recap- Hidden Recession. (Podcast)
NYT Daily: Harris and Trump Views on Foreign Policy. (Podcast)
Marketplace: Some politicians trying to sell their image. (Podcast)

Economic:

September Chicago PMI is due out at 9:45 a.m. EDT and expected to rise to 46.2 from 46.10.

Geopolitical:

President Biden receives the Daily Briefing at 3:00 p.m. EDT.
President Biden speaks from the Roosevelt Room at the White House on efforts to help out on Hurricane Helene.
President Biden delivers remarks to the 2024 U.S. Olympic and Paralympic Teams at 11:30 a.m. EDT.
A Press Briefing is held at 2:00 p.m. EDT with Press Secretary Karine Jean-Pierre.

Federal Reserve Speakers:

Federal Reserve Governor Michelle Bowman speaks at 8:30 a.m. EDT. (three days in a row she has spoken)
Federal Reserve Chairman Powell speaks at 1:00 p.m. EDT.

M&A Activity and News:

DirectTV (T) to buy EchoStar (SATS) through a debt exchange transaction.

Moving Averages On Major Equity Indexes: Moves from 93% of the moving averages being positive to 100%.

Meeting & Conferences of Note:

- Sellside Conferences:
  - Chardan Genetic Medicines Conference
  - Piper Sandler Technology Private Equity Forum
  - UBS Ophthalmology Day
  - Wolfe Utilities Midstream and Clean Energy Conference
- Fireside Chat: None of note.
- Top Shareholder Meetings: APDN, DUOT, EVTL, FRO, KXIN, NUZE, SOND
- Investor/Analyst Day/Calls: AFRM, ENS, HUMA, GANX, RMD, SVRA
- Update: None of note.
- R&D Day: None of note.

- FDA Presentation:
- Company Event:
- Industry Meetings or Events:
  - American Society for Radiation Oncology
  - Congress of Neurological Surgeons (CNS)
  - Heart Failure Society of America Medical Conference
  - International Conference on Silicon Carbide and Related Materials (ICSCRM 2024)
  - International Congress of Parkinson’s Disease and Movement Disorders
  - MEDITECH LIVE24 Conference
  - North American Cystic Fibrosis Conference
  - NASS Meeting

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: DIS BEP ACN

Downgrades: IPG CHTR