The Daily Briefing for April 11th: Stocks Again Fade Early Gains As Investors Await Inflation Data Tomorrow

Overnight Summary: The S&P 500 closed Monday higher by 0.09% at 4108.66 from Thursday higher by 0.36% at 4105.02. The overnight high of 4149 was hit at 5:45 a.m. EDT. The low was hit at 4137.75 at 3:20 a.m. EDT, a range of 12 points high to low which is below the recent range of 45. At 7:25 a.m. EDT the current price was 4140.25 which is 0.10% and 4 points.

Earnings Out After The Close: 

• Beats: PSMT +0.36 of note.
• Flat: None of note.
• Misses: TLRY (1.84) 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:
  • Rosecliff Acquisition Corp I (RCLF): Spectral MD Holdings to be listed on Nasdaq Through Business Combination with Rosecliff.
• Secondaries Priced: None of note.
• Notes Priced of note:
  • FRT: Announces Pricing of Green Bonds.
  • TTWO: Announces Pricing of $1.0 Billion Senior Notes Offering.
• Common Stock filings/Notes:
  • APGN: Filed Form 424B3.. Up to 17,316,667 shares of common stock.
  • BEAT: Filed Form S-1/A.
  • BIOC: Form 8K.. Purchase Agreement.
  • KRUS: Launch of Public Offering of Common Stock.
  • SCLX: Filed Form S-1.. Up to 3,290,000 Shares of Common Stock.
• Direct Offering:
  • ATNF: Closing of $3 Million Registered Direct Offering and Concurrent Private Placement.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • CHEF: Filed Form S-3ASR.. Mixed Shelf Offering.
  • TRKA: Files Form S-3 Shelf Registration Statement.
• Debt/Credit Filing and Notes:
  • CNHI: Closing of $600 million notes of CNH Industrial Capital LLC.
  • Sibanye-Stillwater (SBSW) refinanced and increased its Revolving Credit Facility from $600 million to $1 billion providing enhanced liquidity for the Group.
  • CHDN: Announces Proposed Offering of $600 Million of Senior Notes due 2031.
  • CLF: Announces Proposed Offering of $750 Million of Senior Unsecured Guaranteed Notes.
• 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: BKD +10%, PSMT +4% of note.
  • Trading Down: KRUS -7%, TLRY -4% of note.
• News After The Close:   
  • NFLX: A ‘Stranger Things’ Animated Series Is Coming Out of the Lab (Netflix)
  • Federal Reserve New York President John Williams expects a gradual decline in inflation, spoke after the close. (Reuters)
  • Visa (V) increases board to 12 as Pam Murphy elected. (MarketWatch)
  • Bitcoin crossed $30,000 to hit 10-month high as investors increasingly expect the Fed to pause.

• Exchange/Listing/Company Reorg and Personnel News:
  • Alpine Acquisition Corporation (REVE) Receives Notice of Noncompliance from Nasdaq.
  • Cutera (CUTR) Regains Compliance with Nasdaq Listing Rules.
  • Edible Garden (EDBL) Announces Appointment of Pamela DonAroma to Board of Directors.
  • Global Cord Blood (CO) says it cannot at this time estimate the anticipated filing date of its Interim Financials.
  • GLS: NYSE to Suspend Trading Immediately in Gelesis Holdings, Inc. (GLS) and Commence Delisting Proceedings.
  • KALERA PLC (KAL) receives notice of delisting from NASDAQ.
  • LTRY Announces Appointment of New Independent Director and Notice from Nasdaq Related to Delayed Annual Form 10-K Filing.
  • Laser Photonics (LASE) Appoints William J. Campbell as Interim CFO.
    Owlet (OWLT) Receives Notice Regarding NYSE Continued Listing Standards.
  • RiceBran Technologies (RIBT) Names William J. Keneally as Interim Chief Financial Officer.
  • RedHill Biopharma (RDHL) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
  • Sigma Lithium (SGML) will delay filing its annual information due to the additional audit procedures required as a result of moving towards commercial production in 2023 and implementing SAP.
  • Tingo Group (TIO) Announces Receipt Of Notification Letter From Nasdaq That Its Stock Has Been Under Minimum Bid Price For 30 Days.
  • Visionary Education Technology (VEDU) Says Regains Compliance With NASDAQ Minimum Bid Price Requirement.
  • Virgin Orbit (VORB) Announces Receipt of Nasdaq Delisting Notice.
• Buyback Announcements or News: None of note.
• Stock Splits or News:
  • Agile Therapeutics (AGRX) Announces 1-For-50 Reverse Stock Split.
• Dividends Announcements or News: 
  • T Goes ex div tomorrow for $0.2775.

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

S&P 500 -1, Dow Jones -20,  NASDAQ -18, and Russell 2000 +2. (as of 7:56 a.m. EDT).  Asia and Europe higher. VIX Futures are at 21.86 from 20.80 yesterday.  Gold, Silver and Copper higher. WTI Crude Oil and Brent are lower and Natural Gas higher. US 10-year Treasury sees yields at 3.40% from 3.368% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $30,128 from $28,314  yesterday, higher by 3.25%.

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

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

U.S. stocks closed mostly higher on Monday, except for the Nasdaq, as investors awaited on fresh economic data and corporate earnings to kick off. The Dow Jones Industrial Average rose about 100 points, or 0.3%, ending near 33,586, for its third session in a row of gains. The S&P 500 index gained 0.1%, while the Nasdaq Composite Index closed fractionally lower, or less than 0.1%. It’s a big week for economic data, including Wednesday’s consumer-price index reading for March. Producer prices are due Thursday and retail sales on Friday, which also marks the start of bank earnings. (MarketWatch – edited by QPI)

Click here for a video explanation of Erlanger Value Lines.

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

• Tuesday After the Close: None of note.

• Wednesday Before the Open:

Earnings of Note This Morning:

• Beats: KMX +0.20 of note.
• Flat: None of note.
• Misses: None of note.
• Still to Report: ACI of note.

Guidance:

• Positive Guidance: VUZI, CLF of note.
• Negative Guidance: ADTN of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: ZFOX +14%, DHC +13%, BKD +8%, SCLX +4%, RIOT +4%, PSMT +4%, of note.
• Gap Down: ADTN -11%, TLRY -6%, KRUS -5% of note.

Insider Action: SMPL sees Insider buying with dumb short selling.   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. (CNBC)
• 5 Things You Need to Know to Start Your Day. (Bloomberg) 
• Bloomberg Lead Story: Tumbling Money Supply Alarms Economists Who Foresaw Inflation. (Bloomberg)
• Bloomberg Most Read Story: FedEx Overhaul Contemplates A Future With No Drivers on Payroll. (Bloomberg)
• Bank of Korea holds rates steady with no increases. (CNBC)
• US weighs AI Rules. (WSJ)
• Warren Buffet increased Japanese bets, weighs buying even more. (Bloomberg)
• US Stock Futures erase gains as bank earnings loom: Market Wrap. (Bloomberg)
• Health misinformation is lowering U.S. life expectancy, FDA commissioner says. (CNBC)
• Alibaba (BABA) to unveil a suite of AI products across all its companies. (CNBC)
• Moderna (MRNA) to keep testing flu shot after it fails to meet “early success” criteria. (Reuters)

Moving Average Update:

• Score bounces to 85% from 65%.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the Presidential Daily Briefing, 8:30 a.m. EDT
  • The President departs the White House en route to Joint Base Andrews and en route to Belfast, Northern Ireland, United Kingdom, 9:30 a.m. EDT
  • The President arrives in Belfast, Northern Ireland, United Kingdom (9:20 PM Local), 4:20 p.m. EDT

Economic:

• March NFIB Small Business Optimism is due out at 6:00 a.m. EDT and came in last month at 90.90. There is no estimate currently on this release.
  • US NFIB BUSINESS OPTIMISM INDEX ACTUAL 90.1 (FORECAST 89.8, PREVIOUS 90.90)
• Redbook Sales 8:55 a.m. EDT
• API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

• Federal Reserve Chicago President Austan Goolsbee 1:30 p.m. EDT
• Federal Reserve Philadelphia President Patrick Harker 6:00 p.m. EDT
• Federal Reserve Minneapolis President Neel Kashkari 7:30 p.m. EDT

M&A Activity:

• HEXO Corp. (HEXO) Announces Acquisition by Tilray Brands (TLRY), purchase price of $1.25 per share.
• Quince Therapeutics (QNCX) Board of Directors Unanimously Rejects Unsolicited Proposal from Echo Lake Capital.

Meeting & Conferences of Note:

• Sellside Conferences:
  • Benzinga Cannabis Capital Conference Miami 2023 (04/11/23-04/12/23)
  • Wells Fargo Software Symposium  .
    •  Previously posted and ongoing conferences: None of note.

• Company Meetings: AKBA, LU
• Fireside Chat: CULP
• Investor/Analyst Day/Calls: ENSC, MRNA, SAIC, STKL
• Update: CYDY
• R&D Day: None of note.
• Company Event:
  • Alibaba (BABA) Cloud Summit 2023.
• Industry Meetings:
  • The Society for Healthcare Epidemiology of America (SHEA) SPRING CONFERENCE 2023 (04/11/23-04/14/23)
  • International Facility Management Association (IFMA) FACILITY FUSION CONFERENCE & EXPO 2023 (04/11/23-04/13/23)
  • Gold Forum Europe (04/11/23-04/12/23)
  • National Kidney Foundation Spring Clinical Meetings (04/11/23-04/15/23)
  • Verisk Insurance Conference (04/11/23-04/14/23)
    • Previously posted and ongoing conferences:
      • Spring Meetings of the World Bank Group
      • MRS (Materials Research Society) Spring Meeting & Exhibit 2023 (04/10/23-04/14/23)
      • IEEE Grid Edge Technologies Conference 2023 (04/10/23-04/13/23)
      • 18th Annual Drug Discovery Chemistry Meeting 2023 (04/10/23-04/13/23)
      • Gatlinburg Conference (04/10/23-04/13/23)

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: