The Daily Briefing - Slow News Week Ends, Get Ready For The Fire Works

Overnight Summary: The S&P 500 closed Thursday at 4293.93 higher by 0.62% from Wednesday at 4267.52 lower by -0.38%. The overnight high of 4299.70 was hit at 4:50 p.m. EDT. The low was hit at 4284 at 3:35 a.m. EDT, a range of ~15 points high to low which is the fifth low-vol night in a row.  At 7:20 a.m. EDT, the current price was 4294.50 which is -0.09% and -3.75 points. The 10-day average of the overnight range is at 18 from 18.70. The average for May was 21.63.

Earnings Out After The Close: 

• Beats: DOCU +0.16, BRZE +0.05, AVO +0.02 of note
• Flat: None of note.
• Misses: MTN (0.63) 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:
  • Canadian Solar’s (CSIQ) Subsidiary CSI Solar Completes its IPO Process and Starts Trading on the Shanghai Stock Exchange.
• New SPACs launched/News: None of note.
• Secondaries Priced: None of note.
• Notes Priced of note:
  • VTR: Announces Upsize and Pricing of $750 Million of Exchangeable Senior Notes.
• Common Stock filings/Notes:
  • ELEV: Launch of Proposed Public Offering. (SVB and TD Bookmanagers)
  • INTT: Announces Completion of $20 Million At-The-Market Offering.
  • MAIA: Filed Form S-3.. 2,083,333 Shares Common Stock.
  • PHIO: Filed Form S-1.. Up to 2,640,191 Shares of Common Stock.
• Direct Offering:
  • BBAI: Registered Direct Offering of Common Stock and Warrants.. 11,848,341 shares @$2.11.
  • EFTR: Raises a Total of $16.2 Million in Gross Proceeds from Two Recent Registered Direct Offerings.
• Selling Shareholders of note:
  • FWRG: Announces Secondary Offering of Common Stock by selling shareholders.
  • RNG: Files for 428,121 shares of class A common stock by selling shareholders.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • OKYO: Filed Form F-3.. $100,000,000 Mixed Shelf.
  • TSN: Filed Form S-3ASR.. Mixed Shelf.
• Debt/Credit Filing and Notes:
  • XELA: Announces Offer for its Senior Secured Notes.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • BFH: Announces Pricing of Private Offering of $275 Million of New Convertible Senior Notes.

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: ODC +15%, BRZE +10%, DOCU +5%, NAPA +5%, ANGO +4%, AVO +4% of note.
  • Trading Down: AMSWA -10%, AGX -7%, CMTL -6%, CHPT -5%, BBCP -5%, EVGO -5%, FWRG -4% of note.
• News After The Close:
  • Stocks making the biggest moves after hours: DOCU, MTN, GM, CMTL (CNBC)
  • S&P 500 Rises 20% From October Low To Enter Bull Market. (Bloomberg)
  • DocuSign (DOCU) stock rally cools as execs talk about tough macro after earnings, outlook beat. (MarketWatch)
  • Planet Labs (PL) stock tanks more than 18% after lower-than-expected guidance. (MarketWatch)
  • Leonardo DRS (DRS) awarded a $94 million contract to produce its next-generation infrared weapon sights for U.S. Army infantry snipers.
  • Raytheon Technologies’ (RTX) Intelligence and Space division awarded $372 mln U.S. Navy contract.

• Exchange/Listing/Company Reorg and Personnel News:
  • Core Molding Technologies, Inc. (CMT) Set To Join Russell 3000® Index.
  • Coeptis Therapeutics (COEP) Receives Approval to Transfer to The Nasdaq Capital Market.
  • Definitive Healthcare (DH) Chief Revenue Officer Joseph Mirisola to resign.
  • Diageo plc (DEO) Board appoints Debra Crew CEO.
  • Expensify (EXFY) Set to Join Russell 3000® Index.
  • Assets Under Management (AUM) Month of Month (MoM): CNS $77.9 billion (down $3.1 billion),
• Buyback Announcements or News:
  • QuantaSing Group Limited (QSG) Announces up to US$20.0 Million Share Repurchase Program
  • Teekay Corporation (TK) Announces Update on $30 Million Share Repurchase Program and Announces New Share Repurchase Program.
• Stock Splits or News:
  • FNCH announced reverse stock split to regain Nasdaq compliance 1 for 30 June 12.
  • Offerpad (OPAD) Announces Reverse Stock Split.
• Dividends Announcements or News:
  • Oil-Dri (ODC) increases its quarterly dividend 4% to $0.29/share; annual yield of 2.9%.

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

S&P 500 +1, Dow Jones -52,  NASDAQ +20,  and Russell 2000 -9. (as of 7:55 a.m. EDT).  Asia is higher while Europe is lower. VIX Futures are at 15.10 from 15.55 yesterday.  Gold, Silver and Copper higher from yesterday. WTI Crude Oil and Brent Crude Oil higher with Natural Gas lower. US 10-year Treasury sees yields at 3,747% from 3.807% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $26,592 from $26,449 yesterday, higher by 0.22%.

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

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

U.S. stocks rose Thursday, ending the S&P 500’s longest bear market since the 1940s and marking the start of a new bull run. The broad index powered higher over the past few months, in large part because of a handful of companies posting outsize gains.  Many of those same stocks, including Amazon.com, Tesla (TSLA) and chip maker Nvidia (NVDA), led the market’s advance Thursday.   That helped propel the S&P 500 up 0.6%, allowing the index to finish up 20% from its October low.  The Nasdaq Composite climbed 1% and the Dow Jones Industrial Average rose 0.5% to 33833.   Treasury yields retreated. The yield on the benchmark 10-year Treasury note was at 3.714%, down from 3.782% Wednesday. Yields fall as bond prices rise.   (WSJ – edited by QPI)

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

• Friday After the Close: None of note.
• Monday Before the Open: None of note.

Earnings of Note This Morning:

• Beats: NIO +0.33 of note.
• Flat: None of note.
• Misses: None of note.
• Still to Report: None of note.

Guidance:

• Positive Guidance: BRZE, DOCU, CMTL of note.
• Negative Guidance: TTC, PL of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: ODC +13%, BRZE +12%, DOCU +7%, NAPA +5%, ANGO +4%, TSLA +4% of note.
• Gap Down: AMSWA -10%, FWRG -6%, BBCP -5%, EVGO -5%, CMTL -5%, CHPT -4% of note.

Insider Action: No stock 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.

• Stocks Making The Biggest Moves Premarket: TSLA GM TGT DOCU GLW ADBE NIO (CNBC)
• Bloomberg Lead Story: Donald Trump Charges in Florida Over Secret Documents Case. (Bloomberg)
• Bloomberg  Most Shared Story: Leaving New York For Miami Can Save Nearly $200,000. (Bloomberg)
• Federal Reserve seen ending its 15 month hiking campaign in Economist Survey. (Bloomberg)
• Democrats push for debt ceiling overhaul. (WSJ)
• Cathy Wood of Ark Mgmt (ARKK) interviewed on CNBC this morning at 7:35 a.m. EDT onward. (CNBC)

Moving Average Update:

• Score is at 97%.  Do I hear 100

Geopolitical: 

• President’s Public Schedule:
  • The President departs the White House en route to Joint Base Andrews, 10:00 a.m. EDT
  • The President and The First Lady depart Joint Base Andrews en route to Elm City, North Carolina, 10:30 a.m. EDT
  • The President and The First Lady arrive in Elm City, North Carolina, 12:05 p.m. EDT
  • The President and The First Lady tour Nash Community College, 1:10 p.m. EDT
  • The President and The First Lady discuss how career-connected learning and workforce training programs are preparing students for good-paying jobs in North Carolina, 1:30 p.m. EDT
  • The President and The First Lady depart Rocky Mount, North Carolina en route to Fort Liberty, North Carolina, 2:40 p.m. EDT
  • The President and The First Lady arrive at Fort Liberty, North Carolina, 3:25 p.m. EDT
  • The President and The First Lady meet with service members and their families and deliver remarks at an event in support of Joining Forces, 4:15 p.m. EDT
  • The President and The First Lady depart Fort Liberty, North Carolina en route to Joint Base Andrews, 8:05 p.m. EDT
  • The President and The First Lady arrive at Joint Base Andrews, 9:15 p.m. EDT
  • The President and The First Lady depart Joint Base Andrews en route to the White House, 9:25 p.m. EDT
  • The President and The First Lady arrive at the White House, 9:45 p.m. EDT

Economic:

• Quarterly Services Survey 10:00 a.m. EDT
• Baker Hughes Rig Count 1:00 p.m. EDT
• The latest NYSE and NASDAQ Short Interest Data is due out after the close for data from May 11th through the 26th. During that period, the S&P 500 rose 1.81%.

Federal Reserve / Treasury Speakers:  Fed Blackout Period.

M&A Activity: 

• Endava (DAVA) announces the acquisition of DEK Corporation Pty Ltd, DEK Technologies Sweden AB and DEK Vietnam Company Ltd.

Meeting & Conferences of Note:

• Sellside Conferences:
  • Roth MKM Internet Virtual Summit 2023 (06/11/23-06/15/23).
    • Previously posted and ongoing conferences:
      • Jefferies Healthcare Conference (06/07/23-06/09/23)
      • JP Morgan European Capital Goods CEO Conference 2023 (06/08/23-06/09/23)
      • Mizuho Midcap Utilities Conference (06/08/23-06/09/23)
      • RBC Mining & Metals Conference

• Top Shareholder Meetings: LYV, PORT
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: APTO, IRON, NSIT
• Update: Aptose Biosciences (APTO) Interim Clinical Update Call 2023 (06/10/23).
• R&D Day: None of note.
• Company Event: None of note.
• Industry Meetings:
  • European Academy of Allergy and Clinical Immunology (EAACI) Hybrid Congress 2023 (06/09/23-06/11/23)
  • American Cough Conference 2023 (06/09/23-06/10/23)
  • SIM Midwest Conference: Stronger Together- Improving Healthcare Outcomes with Simulation | 2023 (06/09/23-06/10/23)
  • European Human Genetics Conference ESHG 2023 (06/10/23-06/13/23)
  • International Microwave Symposium (IMS) 2023 (06/11/23-06/16/23)
  • 36th Electric Vehicle Symposium & Exposition (EVS36) 2023 (06/11/23-06/14/23)
  • Minnesota Bankers Association Annual Summit 2023 (06/11/23-06/13/23)
    • Previously posted and ongoing conferences:
      • European Hematology Association EHA Congress 2023 (06/08/23-06/09/23)
      • OCTANE Ophthalmology Tech Forum 2023 (06/08/23-06/09/23)
      • MUSE (Medical Users Software Exchange) Inspire Conference 2023 (06/07/23-06/10/23)
      • National Automotive Finance (NAF) Associations Annual Non-Prime Auto Financing Conference 2023 (06/07/23-06/09/23)

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: