The Daily Briefing For April 18th: Stocks Continue Yesterday's Day End Rally

Overnight Summary: The S&P 500 closed Monday higher by 0.33% at 4151.32 from Friday lower by -0.21% at 4137.64. The overnight high of 4196.25 was hit at 6:50 a.m. EDT. The low was hit at 4172 at 12:55 a.m. EDT, a range of ~24 points high to low which is well below the recent range of 45. At 7:15 a.m. EDT, the current price was 4194.75 which is 0.43% and 18 points.

Earnings Out After The Close: 

• Beats: PNFP +0.05 of note.
• Flat: ELS of note.
• Misses: JBHT (0.14) 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:
  • Top KingWin (TCJH): Announces Pricing of Initial Public Offering.
  • Trio Petroleum Corp (TPET) Announces Pricing of Initial Public Offering and Listing on NYSE American.
• New SPACs launched/News: None of note.
• Secondaries Priced: None of note.
• Notes Priced of note:
  • ENVX: Announces Pricing of $150.0 Million Offering of 3.00% Convertible Senior Notes Due 2028.
• Common Stock filings/Notes:
  • AZ: Filed Form RW.
  • PCVX: Commencement of Proposed Public Offering of Common Stock and Pre-Funded Warrants. (BAC, Jefferies, SVB, Evercore and Guggenheim bookmanagers)
• Direct Offering: None of note.
• Selling Shareholders of note:
  • CARM: Files 3,730,608 common stock offering by selling shareholders. (see Mixed Shelf too)
• Private Placement of Public Entity (PIPE):
  • GSMG: Announces Signing of $60 Million Strategic Investment with Two Institutional Investors at $2.48 per Share.
• Mixed Shelf Offerings:
  • CARM: Files $300 million mixed shelf securities offering.
• Debt/Credit Filing and Notes:
  • BCRX: Refinances Existing Debt with $450 Million Financing Commitment from Pharmakon.
  • DIN: Completes Refinancing of its Class A-2-I Senior Secured Notes Through a Securitization.
  • LIND: Announces Pricing of Private Offering of Senior Secured Notes.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • ENVX: Announces Proposed $150 Million Offering of Convertible Senior Notes Due 2028.

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: JELD -4%, ORGN +4% of note.
  • Trading Down: PLOW -6%, PCVX -5%, ENVX -4% of note.
• News After The Close:   
  • State Street (STT), Schwab (SCHW) See Deposits Drop. (WSJ)
  • Apple (AAPL) Makes the iPhone a Home for Savings Accounts. (WSJ)
  • Luminar (LAZR) stock surges as Chinese demand for LiDAR-equipped vehicles prompts factory expansion in Asia. (MarketWatch)
  • Bank of America’s Fund Manager Survey Reveals Long Positions in Big Tech and Short Positions in US Banks as Most Popular Trades.
  • Walker & Dunlop (WD) to reduce its workforce by approximately 8% due to ongoing challenging conditions in the commercial real estate financing market.
  • BWXT-led Team Awarded $45 Billion Environmental Management Contract for DOE’s Hanford Site.
  • Middlesex Water Company (MSEX) Announces $11.1 Million Project To Upgrade Water Mains in Carteret and Port Reading.
  • Elbit Systems (ESLT) Awarded Contract Worth Approximately $102 Million to Supply ATMOS Artillery Systems to an International Customer.

• Exchange/Listing/Company Reorg and Personnel News:
  • Clearway Energy (CWEN) announces appointment of Sarah Rubenstein as Executive Vice President and CFO.
  • Hope Bancorp (HOPE) announces appointment of Julianna Balicka as Executive Vice President and Chief Financial Officer.
  • Patrick Industries (PATK) CFO to step down.
  • Splunk (SPLK) Appoints Min Wang as Chief Technology Officer.
  • Wrap Technologies (WRAP) Announces CEO Change
• Buyback Announcements or News:
  • Euro Tech Holdings Company Limited (CLWT) Announces Stock Repurchase Program
  • Goldman Sachs (GS) Bought Back 7.1 Million Shares for $2.55 Billion in 1Q.
• Stock Splits or News: None of note.
• Dividends Announcements or News: 
  • JNJ Boosts Div 5.3% From To $1.19 per share From $1.13 per share.

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

S&P 500 +15, Dow Jones +16,  NASDAQ +94, and Russell 2000 +8 . (as of 7:53 a.m. EDT).  Asia lower ex the Nikkei and Europe higher. VIX Futures are at 19.50 from 20.52 yesterday.  Gold, Silver and Copper higher. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher. US 10-year Treasury sees yields at 3.585% from 3.54% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $29,977 from $29,793  on Monday, higher by 1.56%.

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

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

U.S. stocks finished higher on Monday after paring earlier losses during the final two hours of trading as the first-quarter earnings season is poised to pick up the pace. The S&P 500 gained 13.69 points, or 0.3%, to 4,151.33. The Dow Jones Industrial Average gained 100.71 points, or 0.3%, to 33,987.18. The Nasdaq Composite rose by 34.26 points, or 0.3%, to 12,157.72. Investors are looking ahead to a batch of earnings from megacap technology names later in the week, including Netflix Inc., which reports on Tuesday after the close. (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: 

• Wednesday Before the Open:

Earnings of Note This Morning:

• Beats: GS +0.73, LMT +0.55, JNJ +0.18, BAC +0.11, CBSH +0.02, BK +0.01 of note.
• Flat: None of note.
• Misses: ERIC (0.24) of note.
• Still to Report: PLD of note.

Guidance:

• Positive Guidance: LIND, JNJ, UE of note.
• Negative Guidance: VIAV of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: BLU +98%, NKTX +4% of note.
• Gap Down: PLOW -5%, ERIC -5% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  LOVE, 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. (CNBC)
• 5 Things You Need to Know to Start Your Day. (Bloomberg) 
• Bloomberg Lead Story: Investors Most Underweight Stocks Versus Bonds Since 2009. (Bloomberg)
• Bloomberg Most Read Story: Only 10 Electric Vehicles Qualify For Full $7,500 US Tax Credit. (Bloomberg)
• US Stock Futures Climb on China Growth Wagers: Market Wrap. (Bloomberg)
• China’s consumer-driven growth boosts global economy. (Bloomberg)
• China’s economy grew at 4.5% in the first quarter which was its fastest growth rate. (CNBC)
• Saudi Arabia and U.A.E. are using discounted Russian oil products internally. (WSJ)
• Oil slides lower as rally continues to fade. (Bloomberg)
• Goldman Sachs (GS) misses on weak bond trading results. (CNBC)
• Bank of America (BAC) beats on higher rates. (CNBC)
• Johnson & Johnson (JNJ) beats on earnings and revenues, raises full-year guidance. (CNBC)
• Apple (AAPL) opened its first store in India. (CNBC)
• Dominion Voting Systems trial against Fox News (FOXA) will begin today. (Reuters)

Moving Average Update:

• Score budges up to 91%.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the Presidential Daily Briefing Oval Office, 11:00 a.m. EDT
  • The President delivers remarks on actions to help families access care, support care workers and family caregivers, and strengthen the economy, 2:00 p.m. EDT
  • Press Briefing by Press Secretary Karine Jean-Pierre, 2:45 p.m. EDT

Economic:

• March Housing Starts due out at 6:00 a.m. EDT and came in last month at 90.90. There is no estimate currently on this release.
• Redbook Sales 8:55 a.m. EDT
• API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

• Federal Reserve Board of Governors Michelle Bowman 1:00 p.m. EDT

M&A Activity: None of note.

Meeting & Conferences of Note:

• Sellside Conferences:
  • JP Morgan 5th ASEAN TMT & Fintech 1×1 Forum 2023
    •  Previously posted and ongoing conferences:
      • Needham Healthcare Conference (04/17/23-04/20/23)

• Company Meetings: BA, FITB, MCO, MTB, NAAS, PEG, USB, WHR
• Fireside Chat: ONCT
• Investor/Analyst Day/Calls: ACIU, EDAP, GMDA, KPTI,  RLAY, SIG, ZYME
• Update: None of note.
• R&D Day: None of note.
• Company Event:
  • IBM TechConnect Denmark
  • SAP Aerospace & Defense Innovation Days
• Industry Meetings:
  • EnerCom Dallas – The Energy Investment Summit and ESG Conference 2023 (04/18/23-04/19/23)
  • World Nuclear Fuel Conference 2023 (04/18/23-04/20/23)
  • MRO Americas Aviation Week 2023 (04/18/23-04/20/23)
  • BritSpine 2023 (04/18/23-04/20/23)
  • World Congress Experience (WCX) 2023 (04/18/23-04/20/23)
  • CS International Conference 2023 (04/18/23-04/19/23)
    • Previously posted and ongoing conferences:
      • Space Symposium 2023 (04/17/23-04/20/23)
      • Healthcare Information and Management Systems Society HIMSS 2023 (04/17/23-04/21/23)
      • Critical Care Transport Medicine Conference CCTMC 2023 (04/17/23-04/19/23)
      • BioNJ BioPartnering Conference 2023  (04/17/23-04/18/23)
      • DIA Medical Affairs and Scientific Communications Forum 2023 (04/17/23-04/19/23)
      • National Association of Fleet Administrators (NAFA) Institute & Expo 2023 (04/17/23-04/19/23)
      • American Association for Cancer Research Annual Meeting (04/14/23-04/19/23)
      • 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)

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: