CPI and PPI Inflation Data Ahead For This Week and Earnings Season Starts For Q2

Overnight Summary: The S&P 500 closed Friday at 4398.98 lower by -0.28% from Thursday at 4411.59 lower by -0.79%. Overnight ranges saw the high hit at 4440 at 7:00 p.m. EDT while the low was hit at 4411.25 at 3:30 a.m. EDT. The range overnight was 29 points. The 10-day average of the overnight range is at 19.10 from 19.30.  The average for May/June average was 19.94 from 21.63 in May. Currently, the S&P 500 is lower by -3.50 points and is lower by -0.08% at 7:10 a.m. EDT.

Earnings Out After The Close: 

• Beats: None of note
• Flat: None of note.
• Misses: AZZ (0.02) of note.

Unusual Options Activity:

Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity in the S&P 500.  It looks for volume outliers relative to the Open interest in Calls or puts.  Usually, the stock price activity reflects the outlier situation (earnings/buyout/announcement), but once in a while, you can uncover stocks prior to a pop or drop.

Capital Raises:

• IPOs Priced or News: None of note.
• New SPACs launched/News:
  • Atlantic Coastal Acquisition Corp. (ACAH) Announces Second Monthly Extension of Business Combination Period and Additional Contribution to Trust Account.
  • Belong Acquisition Corp. (BLNG) Announces it Will Redeem its Public Shares.
  • Denali Capital Acquisition Corp. (DECA) Announces Intention to Extend Deadline to Complete an Initial Business Combination.
  • Kairous Acquisition Corp. Limited (KACL) Announces Additional Contribution to Trust Account to Extend Period to Consummate Business Combination.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • BBU: Form F-3ASR.. Limited Partnership Units.
  • BNTC: Form S-1 Filed .. Shares of Common Stock or Pre-Funded Warrants.
  • DRMA: Form S-1 Filed .. 856,938 Shares of Common Stock Issuable Upon Exercise of Outstanding Warrants.
  • EFSH: 1847 Announces Closing of $1.869 Million Public Offering.
  • INVO: Form S-1.. Up to $15,000,000 of Common Stock and Warrants.
  • PRPO: Form S-1 Filed .. Warrants to purchase up to 8,888,890 shares of common stock.
  • TIVC: Tivic Health Announces Proposed Public Offering of Common Stock.
  • XTNT: Form S-3 Filed .. 20,000,000 Shares of Common Stock.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • CPE: Form S-3ASR Filed .. Callon Petroleum Company 6,267,385 Shares of Common Stock by selling shareholder.
  • NPWR: Files for 201,480,913 share common stock offering by selling shareholders; relates to warrants.
• Private Placement of Public Entity (PIPE):
• Mixed Shelf Offerings:
  • DDD: Filed Form S-3ASR.. Mixed Shelf.
  • TROO: Files for $100 million mixed securities shelf offering.
• Debt/Credit Filing and Notes:
  • Fisker (FSR) announces $340 million convertible notes offering with potential to increase to $680 million.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • ETRN: Form S-3ASR.. 30,018,446 Series A Perpetual Convertible Preferred Shares Offered by the Selling Shareholders 30,018,446 Shares of Common Stock Issuable Upon Conversion of the Series A Perpetual Convertible Preferred Shares Offered by the Selling Shareholders

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Week:

• Weekly Wrap Up: Best and Worst performing large cap stocks:
  • Trading Up: DERM 47.2%, TRUP 29.5%, BEAT 27.0%, SIEN 22.2%, AAOI 20.3%, UPLD 19.2%, CDNA 18.5%, CBD 17.1%, QUAD 15.4%, OII 15.1%, ATRA 15.0%, UBX 14.7%, CREE 14.4%, PLCE 13.9%, CVNA 13.5%.
  • Trading Down: EVLO -27.7%, CERS -16.3%, BB -14.0%, TWOU -13.8%, AZUL -13.4%, ARRY -11.9%, PBYI -11.9%, GRBK -11.9%, KPTI -11.7%, SIMO -11.6%, STNE -11.3%, MNK -11.0%, TDOC -10.9%, INGN -10.7%, LIND -10.5%, GOL -10.3%, OSTK -9.8%, ANGO -9.8%, EAF -9.7%, AZN -9.4%.

• News Items After the Close:
  • U.S. Energy Department plans to buy about 6 million barrels of crude oil for the SPR. (MarketWatch)
  • Tupperware (TUP) stock tanks more than 10% after waiver agreement, payment warning. (MarketWatch)
  • Alpine 4 Holdings (ALPP) Subdiary, Vayu Aerospace Corporation, Receives its First $5.25M Purchase Order from its $100M Supply Agreement with U.S Government Contractor, All American Contracting Solutions.
• News Items Over the Weekend:
  • The Score – Stocks that Defined the Week: TSLA, UPS, META, JBLU, LEVI (WSJ)
  • Recharged Bond Rout Unnerves Investors. (WSJ)
  • A Soft Corporate-Earnings Season Poses Next Test for Stock Market Rally. (WSJ)
  • Google (GOOG) is testing an artificial-intelligence program trained to expertly answer medical questions, racing against rivals including Microsoft to translate recent AI advances into products that would be used widely by clinicians.
  • Russia confirms BRICS will create a gold-backed currency.
  • North Korea Denounces US Move To Introduce Nuclear-Powered Submarine In Waters Near Korean Peninsula – KCNA – US Move Creates Dangerous Situation That Takes Military Tension In The Region Closer To Nuclear Conflict.
  • Massive cybersecurity breach hits biggest US law firms (NY Post)
  •  Barron’s:
    • Positive View: RCL, H, DAL, LEN, DHI, NVR, GRBK, BZH, BMBL of note.
    • Cautious View: META of note.
    • Mixed View: None of note.
• Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

• Exchange/Listing/Company Reorg and Personnel News:
  • The Nasdaq-100 Index Special Rebalance to be Effective July 24, 2023. (Link)
  • American Lithium (AMLI) Reaches Definitive Agreement to Spin Out.  Macusani Uranium Deposit into an Independent Public Company.
  • BIT Mining Limited (BTCM) Receives Notice Regarding NYSE Continued Listing Standards.
  • Bon Natural Life Limited (BON) Receives NASDAQ Notification Regarding Independent Board Requirement.
  • Brookfield Business Partners (BBU) files for limited partnership unit offering.
  • China Liberal Education Holdings Limited (CLEU) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
  • Delaware Investments National Municipal Income Fund (VFL) announces new board of trustees and new investment management agreement with abrdn Inc.
  • GasLog Partners (GLOP): Unitholders approve previously announced merger whereby GasLog Ltd. (Parent) will acquire all outstanding common units of the Partnership not beneficially owned by Parent.
  • Opthea Ltd. (OPT) announces the resignation of Dr. Joel Naor, Chief Medical Officer.
  • Robert Half Intl (RHI) announces it is changing its name to Robert Half Inc.
• Buyback Announcements or News:
  • Ant Group (BABA) says to use its own funds ($78 billion) to repurchase company’s shares. (WSJ)
  • CNH Industrial (CNHI): Periodic Report on $300 Million Buyback Program.
• Stock Splits or News:
  • JZXN OWLT ACST trading r/s price.
• Dividends Announcements or News:
  • Jiayin Group Inc. (JFIN) Announces Cash Dividend.
• Insider Sales Of Note:
  • Workday (WDAY): Co-CEO sold 5859 shares at $224.50 worth $1.315 million; COO sold 4941 shares at $221.43-222.26 worth $1.09 million.

What’s Happening This Morning: Futures value reflects the change with fair value.

S&P 500 -, Dow Jones -,  NASDAQ -, and Russell 2000 – . (as of 7:56 a.m. EDT).  Asia lower while Europe higher this morning. VIX Futures are at 15.81 from 15.58 yesterday.  Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher as well. US 10-year Treasury sees yields at 4.056% from 4.062% Friday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $31,190 from $31,185 Friday, lower by -0.20%.

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

• Daily Positive Sectors: Energy, Basic Materials, Consumer Cyclical of note.
• Daily Negative Sectors: Consumer Defensive, Healthcare of note.
• One Month Winners: Consumer Cyclical, Industrials, Technology, Basic Materials of note.
• Three Month Winners: Technology, Consumer Cyclical, Communication Services of note.
• Six Month Winners: Technology, Communication Services, Consumer Cyclical of note.
• Twelve Month Winners: Technology, Industrials, Energy, Consumer Cyclical of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

A stretch of strong economic data hardened investors’ expectations of further interest-rate increases, fueling a lockstep weekly decline for U.S. stocks and government bonds.  The narrow weekly losses put a dent in a period of extraordinary market calm, during which major stock indexes have jumped to some of the highest levels of the past year.  For much of the summer, volatility has ebbed and stocks have continued a steady climb.  The Dow slipped 673 points, or -2%, for the week. The S&P 500 fell -1.2%, while the technology-focused Nasdaq Composite dropped -0.9%.  (WSJ – edited by QPI)

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: None of note.

Earnings of Note This Morning:

• Beats: HELE +0.26 of note.
• Flat: None of note.
• Misses: None of note.
• Still to Report: None of note.

Guidance:

• Positive Guidance: NSTG, IMOS of note.
• Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: NBTX +50%, NSTG +8%, BDTX +8% of note.
• Gap Down: TROO -6% of note.

Insider Action: BDTX sees Insider buying with dumb short selling.  No stock 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.

• Five Things to Know Before The Stock Market Opens This Morning (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Bloomberg Lead Story: Powell Haunted By Repo Crisis as Fed Aims to Cut Balance Sheet. (Bloomberg)
• Bloomberg  Third Most Shared Story: Wall Street Soothsayers Are Bewildered About What’s Next.  (Bloomberg)
• U.S. Futures waver on China Data, Recession concern. (Bloomberg)
• China slides to brink of deflation, adding stimulus urgency. (Bloomberg)
• President Biden says Russian War must end before Ukraine considered for membership in NATO. (CNN)
• Treasury Secretary Yellen says trip to China was successful as it lays the ground for more contacts with China. (CBS News)
• More countries are repatriating their gold reserves. (Reuters)
• Hedge Fund Manager Carl Icahn gets loan reprieve two months after short seller report attacked Icahn Enterprises (IEP). (Bloomberg)
• Morgan Stanley’s Mike Wilson says earnings will not fuel stock rally further but forecasts could. (Bloomberg)
•  

Moving Average Update:

• Score inches down to 65% from 68%.

Geopolitical: 

• President’s Public Schedule:
  • The President meets with Prime Minister Rishi Sunak of the United Kingdom (10:45 AM Local), 5:45 a.m. EDT
  • The President departs London, United Kingdom en route to Windsor Castle (12:15 PM Local), 7:15 a.m. EDT
  • The President arrives at Windsor Castle (12:35 PM Local), 7:35 a.m. EDT
  • The President participates in a Ceremonial Arrival and Inspection of the Honor Guard with His Majesty King Charles III (12:45 PM Local), 7:45 a.m. EDT
  • The President meets with His Majesty King Charles III (1:05 PM Local), 8:05 a.m. EDT
  • The President participates in a climate engagement with His Majesty King Charles III and philanthropists and investors (1:30 PM Local), 8:30 a.m. EDT
  • The President departs Windsor Castle en route to London Stansted Airport, Stansted, United Kingdom (2:55 PM Local), 9:55 a.m. EDT
  • The President departs London, United Kingdom en route to Vilnius, Lithuania (3:35 PM Local), 10:35 a.m. EDT
  • The President arrives in Vilnius, Lithuania (7:55 PM Local), 12:55 p.m. EDT

Economic:

• Wholesale Inventories 10:00 a.m. EDT
• Investor Movement Index 12:30 p.m. EDT
• Consumer Credit 3:00 p.m. EDT

Federal Reserve / Treasury Speakers:

• Federal Reserve Vice Chair for Supervision Michael S. Barr 10:00 a.m. EDT
• Federal Reserve San Francisco President Mary Daly 11:00 a.m. EDT
• Federal Reserve Cleveland President Loretta Mester 11:00 a.m. EDT
• Federal Reserve Atlanta President Raphael Bostic 12:00 p.m. EDT

M&A Activity: None of note.

Meeting & Conferences of Note:

• Sellside Conferences:
  • TD Cowen RNA Therapeutics Summit
  • Previously posted and ongoing conferences: None of note.
• Top Shareholder Meetings: WAVS
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls:
• Update: None of note.
• R&D Day: None of note.
• Company Event: None of note.
• Industry Meetings:
  • The Economist Annual New York-Eastern Mediterranean Business Summit 2023
  • Opal Groups Family Office & Private Wealth Management Forum 2023 (07/10/23-07/12/23)
  • 2nd In Vivo Engineering of Therapeutic Cells Summit 2023 (07/10/23-07/12/23)
  • LNG Vancouver 2023 (07/10/23-07/13/23)
  • Law 2.0 Conference (07/10/23-07/12/23)
    • Previously posted and ongoing conferences: None of note.
      • Global Food Allergy Prevention Summit (GFAPS) 2023 (07/07/23-07/09/23)
      • American Head and Neck Cancer Society (AHNS) 11th Annual International Conference (07/08/23-07/12/23)
      • Design Automation Conference (DAC) 2023 (07/09/23-07/13/23)

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 it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Previous Day’s Upgrades and Downgrades: