The Daily Briefing For April 19th: Stocks Trading Down But Off Overnight Lows

Overnight Summary: The S&P 500 closed Tuesday higher by 0.09% at 4154.27 from Monday higher by 0.33% at 4151.32. The overnight high of 4181 was hit at 4:50 p.m. EDT. The low was hit at 4152.75 at 5:55 a.m. EDT, a range of ~29 points high to low which is below the recent range of 45. At 7:20 a.m. EDT, the current price was 4158.50 which is -0.51% and -21.50 points. The biggest drop hit at 2:00 a.m. EDT as it fell by 20 points to 6:00 a.m. EDT. UK Inflation tied into the drop (see Rags & Mags).

Earnings Out After The Close: 

• Beats: WAL +0.27, OMC +0.16, UAL +0.10, ISRG +0.03, HWC +0.02, MRTN +0.01, NFLX +0.01 of note.
• Flat: None of note.
• Misses: UCBI (0.11), FULT (0.09), IBKR (0.06), FHN (0.02) 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:
  • GDTC: Announces Closing of US$9,649,476 Firm Commitment Initial Public Offering.
  • Interactive Strength (TRNR) to offer 1.5 million shares in IPO at $6 – $8 per share.
• New SPACs launched/News: None of note.
• Secondaries Priced:
  • PCXV: prices $500 Million offering. 11.2 Million shares at $41 per share.
  • TELA prices $45 Million offering. 4.8 Million shares at $9.50 per share.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • GMDA: Announces Launch of Public Offering of Securities.
  • IFRX: Announces Closing of the Full Exercise of Greenshoe Option Increasing the Proceeds of the Recently Announced Public Offering of Ordinary Shares to US$46 million.
  • TELA: Proposed Public Offering of Common Stock. (Jefferies, Piper and lake Street bookmanagers)
  • THMO: Filed Form S-3. 3,010,087 Shares of Common Stock.
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings: None of note.
• Debt/Credit Filing and Notes:
  • LMT: Filed Form S-3ASR. Debt Securities.
• 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: WAL +14%, ISRG +9% of note.
  • Trading Down: CDW -9%, MRTN -6%, UCBI -5% of note.
• News After The Close:   
  • Stocks making the biggest moves after hours: NFLX, UAL, WAL, IBRK, ISRG, FHN (CNBC)
  • Netflix (NFLX) stock falls after subscriber growth, earnings forecast miss. But it’s bouncing back on ad plans, shared-password crackdown in U.S. (MarketWatch)
  • Google (GOOGL) To Launch Its First Foldable Phone, The ‘Pixel Fold,’ In June. (CNBC)
  • Intuitive Surgical (ISRG) stock rallies after earnings beat. (MarketWatch)
  • Interactive Brokers (IBKR) stock falls 5% after earnings miss. (MarketWatch)
  • META Is About To Start Its Next Round Of Layoffs, Cutting 4000 Jobs On Wednesday. (MarketWatch)
  • Morgan Stanley Analyst Adam Jonas: Tesla (TSLA) represents a better risk-adjusted investment opportunity compared to most other EV-related names. (Bloomberg)
  • Tesla (TSLA) has now dropped the Model Y LR price 24.25% in the last 97 days.
  • White House just announced that President Biden spoke on the phone with @RepJeffries and @SenSchumer about the “spring work period.” “President Biden, Leader Schumer, and Leader Jeffries agree that we won’t negotiate over default and Republicans should pass a clean bill” as they did under Trump.

• Exchange/Listing/Company Reorg and Personnel News:
  • Biophytis (BPTS) Regains Compliance with NASDAQ Minimum Bid Price Requirement.
  • Camber Energy (CEI) Discloses Communication From NYSE American.
  • Cutera (CUTR) Directors J. Daniel Plants and David Mowry Respond to Special Committee’s Attempt to Rewrite History.
  • Engimmune Therapeutics (IMCR) appoints Dr. Lars Nieba as Chief Executive Officer.
  • Gatos Silver (GATO) Receives NYSE Notice Regarding 2022 10-K Filing.
  • Guidewire Software (GWRE) President and Chief Operating Officer Priscilla Hung intends to take a sabbatical starting in June 2023
  • ITCB Note to Market | NYSE Ticker Change.
  • Li-Cycle (LICY) Files Restated Transition Period Financial Statements.
  • WeWork (WE) Receives Continued Listing Standard Notice from NYSE.
• Buyback Announcements or News:
  • NFLX plans to accelerate share repurchases over the course of 2023 – said they bought back 1.2M shares for $400M in Q1. They currently expect to accelerate share repurchases over the course of 2023.
  • TRV: Board of Directors Authorizes an Additional $5.0 Billion of Share Repurchases. (see Dividend too)
• Stock Splits or News:
  • Medalist Diversified REIT, Inc. (MDRR) Announces Reverse Stock Split and Provides Update on Strategic Review Process.
  • VERB trading r/s price.
• Dividends Announcements or News: 
  • APA Goes ex div tomorrow for $0.25.
  • CVS Goes ex div tomorrow for $0.605.
  • LAD: The Board Approved A Dividend Hike To $0.50 Per Share, Up From $0.42 Per Share.
  • Ohio Valley Banc Corp. (OVBC) increases quarterly cash dividend to $0.22 per share.
  • NDAQ: Nasdaq Announces 10% Increase in Quarterly Dividend to $0.22 Per Share.
  • PG Goes ex div tomorrow for $0.9407
  • TRV: Board of Directors Declares 8% Increase in Regular Quarterly Cash Dividend to $1.00 per Share.

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

S&P 500 -23, Dow Jones -113,  NASDAQ -91 , and Russell 2000 -12. (as of 7:53 a.m. EDT).  Asia higher ex the Nikkei and Europe lower. VIX Futures are at 19.50 from 20.52 yesterday.  Gold, Silver and Copper lower. WTI Crude Oil and Brent Crude Oil lower with Natural Gas lower as well. US 10-year Treasury sees yields at 3.615% from 3.585% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $29,285 from $29,977 yesterday, lower by -3.00%.

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

• Daily Positive Sectors: Basic Materials, Industrials, Technology, Financial of note.
• Daily Negative Sectors: Communication Services, Utilities, Healthcare, Real Estate 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 drifted, closing mostly lower on Tuesday, as investors waited for earnings season to gather more steam. The Dow Jones Industrial Average ended down 10 points, or less than 0.1%, near 33,976, while the S&P 500 index gained 0.1%. The Nasdaq Composite Index fell less than 0.1%. Bank of America BAC, +0.63% and Goldman Sachs GS, -1.70% were among the major banks to report quarterly results, while streaming giant Netflix Inc. NFLX, +0.29% was on deck after the bell. It is ending its red-envelope DVD rental service after 25 years. Investors also heard Tuesday from several more staffers at the Federal Reserve, with Atlanta Fed President Raphael Bostic, a nonvoting member, telling Reuters that he expects one more rate hike, but for the Fed’s policy rate to stay higher for awhile. Continued gridlock in Washington on the debt-ceiling stalemate also has been coming into focus for markets. (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)

• Wednesday After the Close: 

• Thursday Before the Open:

Earnings of Note This Morning:

• Beats: ASML +0.80, TRV +0.52, EDU +0.30, ELV +0.17, ABT +0.05, MS +0.04, NDAQ +0.03, BKR +0.02 of note.
• Flat: None of note.
• Misses: LAD (0.37), SYF (0.10), USB (0.08), ALLY (0.05), CFG (0.03) of note.
• Still to Report: None of note.

Guidance:

• Positive Guidance: ASML, EDU, NVT of note.
• Negative Guidance: CDW, NFLX, CENT of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: LUNR +24%, WAL +15%, EDU +7%, ISRG +7% of note.
• Gap Down: GMDA -22%, CDW -5%, FULT -4%, UCBI -4%, IBKR -4% of note.

Insider Action: No stock sees Insider buying with dumb short selling.  BRT 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: Tesla Drops As Musk Cuts Price Again Ahead of Earnings. (Bloomberg)
• Bloomberg Most Read Story: Southwest Air Briefly Halts Flights Due to Technology Issue. (Bloomberg)
• US Futures Fall as Traders Assess Policy, Earnings: Market Watch. (Bloomberg)
• UK Inflation Rate surprises again with March holding above 10%. (CNBC)
• Senate Armed Services Subcommittee to hold hearing on UFOs the second open hearing in last 50 years. (1440)
• Mortgage demand drops 10% as interest rate jump. (CNBC)
• Global rice shortage is set to be the biggest in 20 years. (CNBC)
• Morgan Stanley (MS) beats on estimates by $0.04 and also beats on revenues. (CNBC)
• Abbott Labs (ABT) beats by $0.05 on estimates and also beats on revenues. (PR Newswire)
• Walt Disney (DIS) to eliminate thousands of jobs next week. (MarketWatch)
• Tesla (TSLA) cuts prices for 6th time this year ahead of first quarter results. (CNBC)

Moving Average Update:

• Score remains at 91%.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the Presidential Daily Briefing Closed Press, 10:00 a.m. EDT
  • Press Briefing by Press Secretary Karine Jean-Pierre, 12:15 p.m. EDT
  • The President departs the White House, 1:20 p.m. EDT
  • The President delivers remarks contrasting his vision for the economy with MAGA House Republicans’ vision: an economy that grows from the middle out and bottom up instead of an economy that trickles from the top down, 2:30 p.m. EDT
  • The President departs en route to the White House, 3:15 p.m. EDT
  • The President arrives at the White House, 3:45 p.m. EDT

Economic:

• MBA Mortgage Applications 7:00 a.m. EDT
  • U.S MBA MORTGAGE APPLICATIONS (WOW) ACTUAL: -8.8% VS 5.3% PREVIOUS
  • U.S MORTGAGE MARKET INDEX ACTUAL: 209.2 VS 229.5 PREVIOUS
  • U.S MORTGAGE REFINANCE INDEX ACTUAL: 449.8 VS 477.5 PREVIOUS
• EIA Petroleum Report 10:30 a.m. EDT
• The latest Federal Reserve Beige Book is due out at 2:00 p.m. EDT.

Federal Reserve / Treasury Speakers:

• Federal Reserve New York President John Williams 7:00 p.m. EDT

M&A Activity:

• Akamai Tech (AKAM) to acquire API detection and response platform Neosec.

Meeting & Conferences of Note:

• Sellside Conferences:
  • Credit Suisse Carbon Negative Conference (04/19/23-04/21/23)
    •  Previously posted and ongoing conferences:
      • Needham Healthcare Conference (04/17/23-04/20/23)

• Company Meetings: AN, BSAC, SBNY, SHW,  VBNK
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: GNS, FMS, TEAM
• Update: None of note.
• R&D Day: None of note.
• Company Event:
  • Ginkgo Bioworks (DNA) Ferment Annual Conference 2023
  • Third Annual Cvent Travel (CVT) Summit 2023
  • Snap Partner (SNAP) Summit
• Industry Meetings:
  • BEAD Success Summit 2023 (Telecom) (04/19/23-04/20/23)
  • The Aesthetic Meeting 2023 (Healthcare) (04/19/23-04/23/23)
  • Society for Biomaterials (SFB) Annual Meeting 2023 (04/19/23-04/23/23)
  • CYBERUK 2023 (Cyber Security) (04/19/23-04/20/23)
  • International Society for Heart and Lung Transplantation (ISHLT) 43rd Annual Meeting and Scientific Sessions  (04/19/23-04/22/23)
  • Emerging Growth Conference 54 2023
    • 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)
      • 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)
      • 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)
      • 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)

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: