The Daily Briefing For August 18th: Stocks Look To Finish Out The Worst Week Since March on a Down Note

by Geoff Garbacz | 08/18/2023 8:22 AM

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The Daily Briefing For August 18th: Stocks Look To Finish Out The Worst Week Since March on a Down Note

Overnight SummaryThe S&P 500 closed Thursday lower by -0.77% from Wednesday lower by -0.76% at 4404.33. Overnight ranges saw the high hit at 4390.25 at 10:15 p.m. EDT while the low was hit at 4371.50 at 7:10 a.m. EDT. The range overnight was 19 points. The 10-day average of the overnight range is at 26.80 from 27.90 yesterday.  The average for May/June/July average was 18.81 from 19.94 in May/June. Currently, the S&P 500 is lower by -12.25 points and by -0.28% at 7:20 a.m. EDT.

Earnings Out After The Close: 

  • Beats: BILL +0.18, AMAT +0.16, ROST +0.016, KEYS +0.15, FTCH +0.07, GLOB +0.01 of note.
  • Flat: None of note.
  • Misses: None 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.

  • HE still dominating these scans after the Maui Fires.  Company hitting back with PR machine in overdrive: Hawaiian Electric says it’s not planning a restructuring but rather seeking advice to ‘endure’ as a strong utility – (MarketWatch)

Capital Raises:

  • IPOs Priced or News:
    • Instacart Plans for September IPO in Boost for US Listings. (Bloomberg)
    • Sacks Parente Golf, Inc. (SPGC) Announces Closing of Initial Public Offering, Raising Approximately $12.8 Million.
  • New SPACs launched/News:
    • Broad Capital Acquisition Corp (BRAC) Confirms Funding to Extend Period to Consummate Initial Business Combination to September 13, 2023.
    • 99 Acquisition Group Inc. Unit (NNAGU): Announces Pricing of $75,000,000 Initial Public Offering. (YahooFinance)
  • Secondaries Priced:
    • ATHX: Announces Pricing of $3.5 Million Public Offering.
  • Notes Priced of note:
    • TTEK: Prices offering of $500.0 million of 2.25% Convertible Senior Notes due 2028.
  • Common Stock filings/Notes:
    • HIVE: Filed Form F-10.. Up to US$90,000,000 of Common Shares. Also, HIVE Digital Technologies last night amended at-the-market equity program.
    • NLS: Filed Form S-1.. 4,098,362 shares of Common Stock.
    • TFFP: Closing of $5.7 Million Public Offering of Common Stock, Including Full Exercise of Over-Allotment Option.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • GOSS: Filed Form S-3ASR.. 162,336,800 Shares of Common Stock by selling shareholders.
    • TRNS: Form S-3 Filed .. 271,820 Shares of Common Stock Offered by the Selling Shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • GRRR: Files $300 million mixed shelf securities offering.
  • Debt/Credit Filing and Notes:
    • AIG: Validus Holdings to Redeem its 8.875% Senior Notes Due 2040.
    • CPB: Filed Form S-3ASR.. Debt Securities Shelf.
    • OBE: Completes Offer to Purchase $5.0 Million of Its Outstanding Senior Unsecured Notes.
    • WHF: Announces Pricing of Public Offering of $30 million 7.875% Notes Due 2028.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed:
    • HGTY: Filed Form S-3..Up to 16,688,449 Shares of Series A Convertible Preferred Stock Offered by the Selling Stockholders Up to 13,347,928 Shares of Class A Common Stock Issuable Upon Conversion of Series A Convertible Preferred Stock.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close and Over the Holiday:

  • After Hours: 
    • Trading Up: ROST +5%, BARK +5%, CAAP +5%, DLB +5% of note.
    • Trading Down: FTCH -34%, KEYS -7%, BILL -4% of note.
  • News Items After the Close:
    • Stocks making the biggest moves after hours: AMAT, ROST, BILL, FTCH, KEYS  (CNBC)
    • Microsoft (MSFT) Plans AI Service With Databricks That Could Hurt OpenAI. (TheInformation)
    • Ross’s (ROST) stock rallies more than 4% after off-price retailer raises outlook, says people are looking for bargains. (MarketWatch)
    • Farfetch (FTCH) stock tanks more than 30% after the luxury fashion company misses quarterly revenue expectations. (MarketWatch)
    • U.S. Steel (X) says union cannot block company’s sale. (Reuters)
    • China Evergrande Files Chapter 15 Bankruptcy in New York. (FXI) (Bloomberg)
    • AppFolio (APPF) to reduce its workforce by nearly 9%.
    • Lockheed Martin (LMT) Wins $622 million US Navy Contract.
    • CACI awarded a $414 million U.S. Air Force contract.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Index Changes: Dolby Laboratories (DLB) set to join S&P MidCap 400; Staar Surgical (STAA) to join S&P SmallCap 600. (MarketWatch)
    • Alexandria RE (ARE) CFO to resign for family health reasons.
    • Kodiak Sciences (KOD) Chief Medical Officer and Chief Development Officer Jason Ehrlich, M.D., Ph.D., informed the Company of his resignation.
    • LifeWallet (LIFW) Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c) and Expects to File Form 10-Q for the period ended June 30, 2023 in the coming weeks.
    • MDU Resources (MDU) announces that President and CEO David Goodin intends to retire.
    • MeridianLink (MLNK) appoints Edward McDermott as Chair of the Board.
    • Mitek (MITK) Announces that the Nasdaq Hearings Panel has Granted its Request for Continued Listing Pending its Return to Compliance with the Nasdaq Filing Requirement.
    • NNDM: Murchinson Issues Presentation Detailing the Urgent Need for Wholesale Boardroom Change at Nano Dimension.
    • Republic Services (RSG) announced that the employment of Timothy E. Stuart, Executive Vice President and Chief Operating Officer, terminated.
  • Buyback Announcements or News:
    • BARK Announces Authorization of Share Repurchase Program.
    • Blue Foundry Bancorp (BLFY) Announces Adoption of Third Stock Repurchase Program.
    • CNH Industrial (CNHI): Periodic Report on $300 Million Buyback Program.
  • Stock Splits or News:
    • ADTX trading r/s price.
    • EXPR: Board of Directors authorizes a 1-for-20 reverse stock split.
    • WeWork (WE) to Conduct 1-for-40 Reverse Stock Split.
    • WHLR trading r/s price.
  • Dividends Announcements or News: 
    • Ault Alliance (AULT) Declares Monthly Cash Dividend of $0.2708333 Per Share of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock.
    • Dillard’s (DDS) increases its quarterly dividend 25% to $0.25 per share. (MarketWatch)
    • Murphy USA (MUSA) increases quarterly cash dividend 2.6% to $0.39 per share.
  • Insider Sales Of Note: None of note.

What’s Happening This MorningFutures value reflects the change with fair value.

S&P 500 -23, Dow Jones -149,  NASDAQ -116, and Russell 2000 -9.  (as of 7:55 a.m. EDT).  Asia is lower ex Australia while Europe is lower this morning. VIX Futures are at 19.10 from 17.85 yesterday.  Gold and Silver higher with Copper lower this morning. WTI Crude Oil and Brent Crude Oil lower with Natural Gas lower as well. US 10-year Treasury sees yields at 4.223% from 4.294% yesterday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and lower against the Yen. Bitcoin is at $26,394 from $28,485  yesterday, lower by -5.40%.

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

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

Treasury yields continued to climb on Thursday after strong labor market data renewed investor concern about rate hikes.  The 10-year Treasury yield rose to 4.307% from 4.258% on Wednesday, settling at its highest closing level since 2007. The 30-year Treasury yield hit a 12-year high, rising to 4.411%.  The strength of the U.S. economy and strong inflation expectations have driven up yields. The latest reading: The Labor Department on Thursday reported 239,000 initial jobless claims last week, just below economists’ expectations. Retail giant Walmart said that its sales grew in its latest quarter, with consumers continuing to spend.  Stocks fell, extending August declines spurred in part by higher yields. The S&P 500 and Dow Jones Industrial Average both shed 0.8%, while the Nasdaq Composite was 1.2% lower. The tech-heavy Nasdaq, sensitive to higher rates, is down 7.2% this month. (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: 
    • Why is Palo Alto Networks (PANW) reporting earnings Friday afternoon? The strange timing draws speculation. (MarketWatch)

  • Monday Before the Open: None of note.

Earnings of Note This Morning:

  • Beats: DE +1.98, VIPS +1.07, MSGE +0.16, BKE +0.11, EL +0.11 of note.
  • Flat: None of note.
  • Misses: None of note.
  • Still to Report: None of note.


  • Positive Guidance: AMAT, ROST, MSGE of note.
  • Negative Guidance: FTCH, KEYS, RRGB, VIPS, EL of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: DLB +6%, CAAP +5%, ROST +5% of note.
  • Gap Down: FTCH -39%, KEYS -10%, HIVE -8%, VIPS -7%, XPEV -6%, BILL -5% of note.

Insider ActionFOX, HTLD, NEE sees Insider buying with dumb short selling.  TARS, MQ sees Insider buying with smart short sellers.

Rags & MagsRepeated 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 Friday. (CNBC)
  • Five Things You Need to Know to Start Your Day. (Bloomberg)
  • Bloomberg Lead Story: China’s Hidden Financial Dangers Erupt With Shadow Bank Crisis. (Bloomberg)
  • Bloomberg Most Shared Story: Goldman Plans Hiring Spree to Fix Lapses After Increased Fed Scrutiny. (Bloomberg
  • Global stocks heading for the worst week since March: Market Wrap. (Bloomberg)
  • Chinese Central Bank defends its currency. (FT)
  • Bitcoin abruptly tumbled over -9% to $26,000 late Thursday. Why? (Bloomberg)
  • Hurricane Hilary grows off Mexico, could hit California. (CNBC)
  • When hackers descended to test AI , they found flaws aplenty. (NYT)
  • Microsoft (MSFT) to hold product event on September 21st. (Verge)
  • Moderna (MRNA) says new Covid vaccine effective against Eris variant in early trial. (CNBC)
  • NPR Marketplace: Leading economic indicators are stubbornly pointing to a recession that hasn’t shown up. They’re normally a strong signal that a downturn is on the horizon. Could they be wrong this time around? Then, why child care is likely to get even more expensive, how AI summaries could transform product reviews and how subsidized employment programs could fight racial inequity. (Podcast)
  • BBC Global News: Police investigate threats against Trump Grand Jury. (Podcast
  • NY Times The Daily: How paradise became a death trap. (Podcast)
  • Bloomberg: Here’s how the new weight loss drugs could change everything.  (Podcast)
  • Wealthion: Worsening wealth gap to spur a class war? (Podcast)

Moving Average Update:

  • Score goes to 20%.  Only item that remains is the 200 day moving average which is about 5% down.  That 200dma on SPX will be inching up to 4200 which is the 420 SPY Fred Meissner, CMT from TheFREDReport has been beating the drum for a quick hit and buy point.


  • President’s Public Schedule:
    • Press Meet with National Security Advisor Jake Sullivan, 8:30 a.m. EDT
    • The President greets with and welcomes President Yoon Suk Yeol of the Republic of Korea and Prime Minister Kishida Fumio of Japan to the Camp David Trilateral Summit, 11:00 a.m. EDT
    • The President holds a trilateral meeting with President Yoon Suk Yeol of the Republic of Korea and Prime Minister Kishida Fumio of Japan, 11:15 a.m. EDT
    • The President hosts a joint press conference with President Yoon Suk Yeol of the Republic of Korea and Prime Minister Kishida Fumio of Japan, 3:00 p.m. EDT
    • The President departs Camp David en route to Joint Base Andrews, 6:00 p.m. EDT
    • The President and The First Lady depart Joint Base Andrews en route to Reno, Nevada, 6:45 p.m. EDT
    • The President and The First Lady arrive in Reno, Nevada, 10:30 p.m. EDT


  • Quarterly Services 10:00 a.m. EDT
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve Chair Jerome Powell To Speak At Jackson Hole Economic Symposium On August 25 At 10:05 a.m. EDT

M&A Activity and News: None of note.

Meeting & Conferences of Note:

  • Sellside Conferences: None of note.
    • Previously posted and ongoing conferences:
      • Santander 23rd Annual Brazil Conference 2023 (08/17/23-08/23/23)
      • Truist Atlanta Bank Summit
  • Top Shareholder Meetings: KXIN, RAD
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: None of note.
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event: None of note.
  • Industry Meetings:

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 is 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:

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