The Daily Briefing For April 14th: Banks Earnings Come In Strong, Boeing Delays Deliveries of 737 Max

Overnight Summary: The S&P 500 closed Thursday up 1.32% at 4146.22 from  Wednesday lower by -0.41% at 4091.95. The overnight high of 4175.50 was hit at 8:45 p.m. EDT. The low was hit at 4161.75 at 6:20 a.m. EDT, a range of ~14 points high to low which is below the recent range of 45. At 7:20 a.m. EDT, the current price was 4172.50 which is -0.01% and 0.25 points.

Earnings Out After The Close: 

• Beats: None of note.
• Flat: None of note.
• Misses: WAFD (0.12) 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:
  • CytoMed Therapeutics (GDTC) prices IPO. 2.41 Million shares at $4 per share.
  • SLRN: Filed for IPO.
• New SPACs launched/News:
  • TradeUP Acquisition Corp. (UPTD) Announces Extension of the Deadline for an Initial Business Combination.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • AREN: Filed Form S-3.. 517,710 Shares of Common Stock.
  • KRUS: Closing of $68.3 Million Public Offering of Common Stock.
  • MMAT: Proposed Public Offering.. Ladenburg and AGP Bookmanagers.
  • SOBR: Filed Form S-1.. 2,096,732 SHARES.
• Direct Offering:
  • NYXH: Raises $3 Million from its At-the-Market Equity Offering.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • WPM: F10 filing: files $2.0 billion mixed shelf securities offering.
• Debt/Credit Filing and Notes: None of note.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • FTHM: Announces $3.5 Million Convertible Note Private Placement.
  • WISA: Pays Off Senior Secured Convertible 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: PRPL +13%, TRHC +8%, QDEL +8%, BMEA +4% of note.
  • Trading Down: LCID -4% of note.
• News After The Close:   
  • Wells Fargo (WFC) faces US regulatory heat after Silicon Valley Bank meltdown: source. (NYPost)
  • Boeing (BA) halts deliveries of some 737 MAXs, shares fall. (FoxBusiness)
  • Gold Prices Near Record as Investors Bet Inflation Is Here to Stay. (WSJ)
  • Adobe (ADBE) to pay $3 million to settle kickback allegations. (MarketWatch)
  • BAC Sees S&P 500’s 2023 Earnings Going From Bad To Even Worse – (Bloomberg)
  • Cutera (CUTR) to hold meeting on board member removals, amid CEO succession drama. (MarketWatch)

 

• Exchange/Listing/Company Reorg and Personnel News:

   

   

  • Alaska Communications (ATNI) Board Names Jim McCarley Interim CEO.
  • Brady Corporation (BRC) Announces CFO Transition
  • DAVIDsTEA (DTEA) Confirms Voluntary Delisting from Nasdaq.
  • Live Nation Entertainment (LYV) Elects Rich Paul To Board Of Directors.
  • Lufax Holding Ltd (LU) Successfully Listed on the Main Board of The Stock Exchange of Hong Kong.
  • Motus GI (MOTS) Announces Executive Leadership Restructuring and Additional Cost Saving Initiatives to Support Near-Term Milestones.
  • NKLA – Three Nikola board members to retire in June. (MarketWatch)
  • PRPL to Terminate Stockholder Rights Agreement and appoints Adam Gray to serve as Board Chair.
  • Tabula Rasa HealthCare (TRHC) announces appointment of Brian Adams as President and Chief Executive Officer.
• Buyback Announcements or News:
  • Anika Therapeutics (ANIK) authorizes $20 million repurchase program, $5 million of which will be effected through an accelerated repurchase program.
  • PNC: Share Buyback Activity Is Expected To Be Reduced In Q2.
  • SDC: Form 8K.. On April 12, 2023, SmileDirectClub, Inc. (the “Company”) entered into a stock purchase agreement.
• Stock Splits or News:
  • ARVL trading r/s price.
• Dividends Announcements or News: 
  • Agree Realty (ADC) increases its monthly dividend by 1.3% to $0.243 per share.
  • PNC Goes ex div on Monday for $1.50.
  • Targa Resources (TRGP) raises quarterly dividend to $0.50 per share, a 43% jump.

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

S&P 500 -1, Dow Jones +40,  NASDAQ -60, and Russell 2000 +5. (as of 7:56 a.m. EDT).  Asia and Europe higher. VIX Futures are at 20.52 from 20.86 yesterday.  Gold lower with Silver and Copper higher. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher as well. US 10-year Treasury sees yields at 3.458% from 3.422%  yesterday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $30,785 from $30,239  yesterday, higher by 1.31%.

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

 

• Daily Positive Sectors: Communication Services, Consumer Cyclical, Technology, Healthcare, Basic Materials, Financial of note.
• Daily Negative Sectors: Real Estate 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. stock indexes extended the gains as moderation in wholesale inflation and a jump in weekly jobless claims support the idea that the economy is gradually weakening, while the Federal Reserve may be approaching the end of its tightening cycle. The S&P 500 advanced 1.4% and headed for its best close since February 7. The Dow Jones Industrial Average rose nearly 400 points, or 1.2%, to 34,046. The Nasdaq Composite jumped 2.1%, led by gains in the communication services and consumer discretionary sectors, which rallied 2.3% each. Data showed U.S. wholesale prices sank 0.5% in March, the biggest decline in almost three years. On a year-to-year basis, the headline producer price index fell to 3.6% in March from 4.5% in February. (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)

 

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

Earnings of Note This Morning:

 

• Beats: JPM +0.73, C +0.51, PNC +0.36, BLK +0.20, UNH +0.18, WFC +0.09 of note.
• Flat: None of note.
• Misses: None of note.
• Still to Report: None of note.

Guidance:

 

• Positive Guidance: CSWC, QDEL, TRHC of note.
• Negative Guidance: HIG, PNC of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

 

• Gap Up: TRHC +13%, PRPL +7%, BWEN +6%, CLPT +4%, LU +4% of note.
• Gap Down: ALVO -7%, LCID -7%, TEVA -5%, WING -4% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  RMBL 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: JP Morgan Shares Jump in Early Trading as Deposits Rise Unexpectedly. (Bloomberg)
• Bloomberg Most Read Story: Manhattan Rents Reach Record High With Busy Season Yet To Come. (Bloomberg)
• NASDAQ Futures Slip As Bank Earnings Deluge Begins: Market Wrap. (Bloomberg)
• Blackrock (BLK) assets now exceed $9 trillion in wake of bank failures. (Bloomberg)
• Wells Fargo (WFC) net interest income beats estimates on Fed hikes. (Bloomberg)
• Supreme Court Justice Clarence Thomas under fire over real estate transactions and payment for travel by Harlan Crow. (Bloomberg)
• Banking Crisis forces ECB to rethink rate hikes. (CNBC)
• Surprise Oil Output Cuts from OPEC+ could hurt consumers, warns IEA. (CNBC)
• Boeing (BA) warns of delivery delays to the 737 Max, stock off 5.2% hurts the open to the Dow Jones Industrial Average. (MarketWatch)
• UnitedHealth (UNH) rose to a 4-month high on an earnings beat. (MarketWatch)

Moving Average Update:

 

• Rocked fuel.  Score jumps to 91% from 68%.

Geopolitical: 

 

• President’s Public Schedule:

   

   

  • The President departs Dublin, Ireland en route to County Mayo, Ireland (11:45 AM Local), 6:45 a.m. EDT
  • The President arrives in County Mayo, Ireland (1:15 PM Local), 8:15 a.m. EDT
  • The President tours The Sanctuary of Our Lady of Knock (2:00 PM Local), 9:00 a.m. EDT
  • The President tours Mayo Roscommon Hospice (3:30 PM Local), 10:30 a.m. EDT
  • The President departs en route to North Mayo Heritage Center Landing Zone (4:15 PM Local), 11:45 a.m. EDT
  • The President arrives at North Mayo Heritage Center Landing Zone (5:15 PM Local), 12:15 p.m. EDT
  • The President visits the North Mayo Heritage and Genealogical Centre’s Family History Research Unit (5:30 PM Local), 12:30 p.m. EDT
  • The President departs en route to Saint Muredach’s College Landing Zone (8:25 PM Local), 3:25 p.m. EDT
  • The President arrives at Saint Muredach’s College Landing Zone (8:40 PM Local), 3:40 p.m. EDT
  • The President delivers remarks to the people of County Mayo (9:15 PM Local), 4:15 p.m. EDT
  • The President departs en route to Ireland West Airport Knock (10:40 PM Local), 5:40 p.m. EDT
  • The President departs County Mayo, Ireland en route to Dublin, Ireland (11:05 PM Local), 6:05 p.m. EDT
  • The President departs Dublin, Ireland en route to Dover, Delaware (12:05 AM 4/15 Local), 7:05 p.m. EDT

Economic:

 

• Import and Export Prices 8:30 a.m. EDT
• March Retail Sales are due out at 8:30 a.m. EDT and are expected to remain at -0.4%.
• March Industrial Production is due out at 9:15 a.m. EDT and is expected to improve to 0.2% from 0.0%.
• April University of Michigan Consumer Sentiment is due out at 10:00 a.m. EDT and is expected to rise to 62.70 from 62.
• Business Inventories 10:00 a.m. EDT
• Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

 

• Federal Reserve Chicago President Austan Goolsbee to be on CNBC at 8:30am ET
• Federal Reserve Board of Governors Christopher Waller 8:45 a.m. EDT.

M&A Activity:

 

• Express (EXPR), WHP Global announced a definitive agreement to acquire menswear brand Bonobos from Walmart (WMT).

Meeting & Conferences of Note:

 

• Sellside Conferences:
  • Bloor Street Capital Virtual Gold Conference 2023

     

     

    •  Previously posted and ongoing conferences: None of note.

 

• Company Meetings: CNHI, ENER, FFIE, WGS, ZTO 
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: MVIS, OCGN, TRX
• Update: None of note.
• R&D Day: None of note.
• Company Event: None of note.
• Industry Meetings:
  • American Association for Cancer Research Annual Meeting (04/14/23-04/19/23)
  • Fitness Fest Arizona (04/14/23-04/16/23)
  • SilverCon 2023
  • Appalachian Region Spine and Pain Meeting 2023 (04/14/23-04/16/23)
  • Florida AHRMM Spring Conference 2023
  • National Association of Broadcasters NAB Show 2023 (04/15/23-04/19/23)
  • European Congress of Clinical Microbiology and Infectious Disease (ECCMID) 2023 (04/15/23-04/18/23)
  • European Heart Rhythm Association (EHRA) Congress 2023 (04/16/23-04/18/23)
  • American Association for Laboratory Accreditation (A2LA) Annual Conference 2023 (04/16/23-04/19/23)
  • Nachas Smarter Faster Payments Conference 2023 (04/16/23-04/19/23)
    • Previously posted and ongoing conferences:
      • Collaborate 2023 (04/12/23-04/14/23)
      • Cell & Gene Meeting on the Med 2023 (04/12/23-04/14/23)
      • The Society for Healthcare Epidemiology of America (SHEA) SPRING CONFERENCE 2023 (04/11/23-04/14/23)
      • National Kidney Foundation Spring Clinical Meetings (04/11/23-04/15/23)
      • Verisk Insurance Conference (04/11/23-04/14/23)
      • MRS (Materials Research Society) Spring Meeting & Exhibit 2023 (04/10/23-04/14/23)
      • Spring Meetings of the World Bank Group

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: