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Stocks Lower On Threat To AI Chips Export, Biden to Speak On Economy Today.

by Geoff Garbacz | 06/28/2023 8:46 AM

Rebel Yell Morning Market Report

Your Daily Financial Market Briefing - Giving You An Investing Edge Before Each Trading Day Begins

Stocks Lower On Threat To AI Chips Export, Biden to Speak On Economy Today.

Overnight Summary: The S&P 500 closed Tuesday at 4378.41 higher by 1.15% from Monday at 4328.82 lower by -0.45%. Overnight ranges saw the high hit at 4418.50 at 4:05 p.m. EDT while the low was high at 4406.50 at 4:55 a.m. EDT. The range overnight was 12 points. The 10-day average of the overnight range is at 19.60 from 20.20.  The average for May was 21.63. Currently, the S&P 500 is lower by -4.25 points and is down by -0.10% at 7:15 a.m. EDT.

Earnings Out After The Close: 

  • Beats: AVAV +0.04 of note
  • Flat: None of note.
  • Misses: JEF -0.22 of note.

Capital Raises:

  • IPOs Priced or News: None of note.
  • New SPACs launched/News: None of note.
  • Secondaries Priced:
    • ASTS: Prices offering of 12.5 million shares of common stock for gross proceeds of $59.4 million.
    • MLTX: Pricing of $400 Million Upsized Public Offering of Class A Ordinary Shares.. Priced @$50.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ASTS: Files 12,000,000 secondary of Class A common stock.
    • ASTC: Form 8K.. terminate its at-the-market offering agreement, dated as of June 16, 2023.
    • AXSM: Announces proposed public offering of common stock.
    • EXK: announces at the market offering of up to $60 million.
  • Direct Offering: None of note.
  • Selling Shareholders of note: None of note.
  • Private Placement of Public Entity (PIPE):
    • PLAG: Form 8K.. Securities Purchase Agreement with Bochuang (Hubei) New Energy Co.
  • Mixed Shelf Offerings:
    • KXIN: Filed Form F-3.. Up to US$300,000,000 Mixed Shelf.
    • VEV: Form F-3 Filed .. $150,000,000 Mixed Shelf.
    • XPON: Filed Form S-3.. $50,000,000 Mixed Shelf.
  • Debt/Credit Filing and Notes: None of note.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed: None of note.

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

News After The Close

  • After Hours:
    • Trading Up: AVAV +5% , CMRX +3%
    • Trading Down: ASTS -19%
  • News After The Close:
    • Spirit Aerosystems (SPR) reaches tentative deal with union. (CNBC)
    • Primoris Services (PRIM) awarded solar projects worth $770 million.
    • Lear (LEA) provides update from its Seating Day.
    • Huntington Ingalls (HII) delivers first Flight III Arleigh Burke class guided missile destroyer, Jack H. Lucas, to U.S. Navy.
    • Google (GOOGL) violated standards in ad deals reports The Wall Street Journal. (WSJ)
    • Diageo plc (DEO) cuts ties with Sean “Diddy” Combs. (WSJ)
    • General Dynamics (GD) awarded $769 million U.S. Army contract.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Aurora Mobile (JG) Receives Approval to Transfer to Nasdaq Capital Market.
    • Chimerix (CMRX) names Mike Andriole as President and CEO, replacing Mike Sherman who is retiring as CEO and will become Chairman of the Board.
    • FLJ Receives NASDAQ Notification Regarding Minimum Bid Price Deficiency.
    • NeoGames (NGMS) names Motti Gil as CFO on 8/1.
    • NYMX CFO and COO fired.
    • GoodRX (GDRX) names Andrew Slutsky as Chief Marketing Officer replacing Babak Azad.
    • Harley Davidson (HOG) names Jonathan Root as CFO effective immediately.
    • ONEOK (OKE) and Magellan Midstream Partners (MMP) announces expiration of waiting period under Hart Scott Rodino clearing way for acquisition of Magellan in Q3.
  • Buyback Announcements or News:
    • Jefferies (JEF) up repurchase program to $250 million.
  • Stock Splits or News:
    • Allarity Therapeutics (ALLR) Announces Clarification of Effective Date for Reverse Stock Split.
  • Dividends Announcements or News: None of note.
  • Insider Sales Of Note: GPI SVP sold 10,000 shares worth $2.46 million. CRM COO sold 1,654 shares worth $346,000.

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

S&P 500 -6, Dow Jones +17,  NASDAQ -46, and Russell 2000 -3. (as of 7:55 a.m. EDT).  Asia is higher ex the Kospi and Europe is higher. VIX Futures are at 15.45 from 15,87 yesterday.  Gold, Silver and Copper lower this morning. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher. US 10-year Treasury sees yields at 3.739% from 3.735% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $30,345 from $30,644  from yesterday, lower by -1.16%.

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

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

Major stock indexes rose Tuesday as investors sifted through a fresh round of data that signaled a resilient U.S. economy.  The S&P 500 advanced 1.1% and the Nasdaq Composite added 1.6%, while the Dow Jones Industrial Average closed 0.6% higher.  Orders for manufactured U.S. goods rose 1.7% in May, helped by strong demand for passenger planes and new autos. It was the third consecutive month of gains, a sign that manufacturing orders may have bottomed after slumping last year. Orders rise in an expanding economy and shrink in a contracting one.  (WSJ – edited by QPI)

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

  • Wednesday After the Close: BB CNXC FUL MU FIZZ WOR
  • Thursday Before the Open: AYI GBX LNN MKC MSM PAYX RAD SMPL

Earnings of Note This Morning:

  • Beats: ROIV +0.31, GIS +0.05 of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: UNF of note.

Guidance:

  • Positive Guidance: AVAV of note.
  • Negative Guidance: SNX, CP of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: RETA +8%, CIR +7%, AVAV +6% of note.
  • Gap Down: ASTS -24%, AXSM -7%, NVDA -4% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  RMBL, HHC 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.

  • 5 things to know before the stock market opens. GIS NVDA AMD  PINS SNOW ZI (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • 5 Things To Know Before You Start Your Wednesday. (CNBC)
  • Bloomberg Lead Story: Biden Pitches Voters on Benefits of Big Government “Bidenomics”.  (Bloomberg)
  • Bloomberg  Most Shared Story: UBS Preparing to Cut Over Half of Credit Suisse Workforce. (Bloomberg)
  • Chip Stocks drag down US futures;Stoxx 600 gains: Market Wrap. (Bloomberg)
  • Nvidia, AMD and AVGO drop on report US plans to limit the export of AI chips to China. (Bloomberg)
  • Supreme Court struck down independent state legistlation theory, 6-3. (Associated Press)
  • Mortgage demand grows, driven by sales of new houses. (CNBC)
  • Samsung to begin making most advanced mobile chips in 2025 as battle with TSMC heats up. (CNBC)
  • Southern Companies (SO) CEO is under internal investigation. (WSJ)
  • DraftKings (DKNG) withdraws bid for PointsBet’s U.S. operations. (MarketWatch)

Moving Average Update:

  • Score rockets up to 85% from 48%.

Geopolitical: 

  • President’s Public Schedule:
    • The President arrives in Chicago, Illinois (10:15 AM Local), 11:15 a.m. EDT
    • The President delivers a major address on “Bidenomics”— his vision for growing the economy from the middle out and the bottom up, not the top-down (12:00 PM Local), 1:00 p.m. EDT
    • The President participates in a campaign reception (1:15 PM Local), 2:15 p.m. EDT
    • The President arrives at the White House, 7:45 p.m. EDT

Economic:

  • MBA Mortgage Applications 7:00 a.m. EDT
    • MBA Mortgage Applications: Composite: +3%, Purchase: +2.8%, ReFi: +3.3%
    • U.S. MBA Mortgage Applications (Wow) Actual: 3.0% Vs 0.5% Previous
    • U.S. MBA 30-year Mortgage Rate Actual: 6.75% Vs 6.73% Previous
  • Int. Trade in Goods 8:30 a.m. EDT
  • Wholesale Inventories 8:30 a.m. EDT
  • EIA Petroleum Report 10:30 a.m. EDT
  • The Federal Reserve is out with its Bank Stress Test Results after the close so banks could have a volatile Thursday.

Federal Reserve / Treasury Speakers:

  • Federal Reserve Chair Jerome Powell 9:30 a.m. EDT.
    • This morning we have Fed Chair Powell speaking at 9:30am ET at a Policy Panel Discussion — At the European Central Bank (ECB) Forum on Central Banking 2023, Sintra, Portugal.

M&A Activity:

  • Arcline Submits Proposal to Acquire Circor International Inc. (CIR) for $57.00 Per Share.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Goldman Sachs Annual Building an Investment Framework Conference
    • Nareit REITworks Conference
    • Piper Sandler Webinar: Networks for AI 2023
    • Stifel Summer Solstice Conference
      • Previously posted and ongoing conferences:
        • Citigroup Brazil Equity Conference (06/27/23-06/28/23)
        • TD Cowen 2nd Annual Tools/Dx Revolution 2023. (06/25/23-06/28/23)
        • UBS Healthcare Services Conference 2023 (06/26/23-06/28/23)
        • BMO BioPharma Spotlight Series

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:

[World Opportunity Investor: Life 150]

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