The Daily Briefing For August 30th: Stocks Rebound From Monday Selling

by Geoff Garbacz | 08/30/2022 8:15 AM

Rebel Yell Morning Market Report

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The Daily Briefing For August 30th: Stocks Rebound From Monday Selling

Overnight Summary: The S&P 500 closed Monday at 4030.61 (lower by -0.67%) from Friday at 4057.66 (lower by -3.38%).  The overnight high of 4072.75 was hit at 4:25 a.m. EDT. The low was hit at 4026.75 at 8:10 p.m. EDT, a range of 56 points high to low which is above the range of late with 45 the average range. At 7:20 a.m. EDT the current price was 4065 which is 0.84% and 33.75 points.  Currently, at 7:55 a.m. EDT the S&P 500 is now up $32.50.

  • Beats: None of note.
  • Flat: None of note.
  • Misses: HEI (0.06).

Capital Raises:

  • IPOs Priced or News:
    • Mobilicom Limited (MOB) Announces Closing of Initial Public Offering.
  • New SPACs launched/News:
    • North Mountain Merger Corp. (NMMC) and Corcentric Mutually Agree to Terminate Merger Agreement.
  • Secondaries Priced:
    • BXRX: Pricing of $6.2 Million Public Offering.. together with accompanying common stock purchase warrants, at a public offering price of $0.525 per share.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • MRNS: Closing of Sale of Priority Review Voucher for $110 Million.
    • SWVL: Filed Form F-1.. 12,242,426 Class A Ordinary shares and 18,181,821 Class A Ordinary shares underlying warrants.
    • Nikola Corporation (NKLA) entered into that certain Equity Distribution Agreement for up to $400 million of common stock.
  • Pricing of Over-Allotment/Notes: None of note.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • BWV: Filed Form S-1.. 8,876,705 Shares of Common Stock Offering by Selling Stockholders.
  • Private Placement of Public Entity (PIPE):
    • IQ: US$500 Million Private Placement of Convertible Notes with PAG.
  • Mixed Shelf Offerings:
    • CVEO: Filed Form S-3.. $300,000,000 Mixed Shelf.
    • LCID: Filed Form S-3.. $8,000,000,000 Mixed Shelf — Up to 44,350,000 Shares of Common Stock and Up to 1,189,450,445 Shares of Common Stock Up to 44,350,000 Warrants to Purchase Common Stock Offered by the Selling Securityholders.
  • Debt Filing/Notes: 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: GAMB 10%, AVID +10%, DDI +4%.
    • Trading Down: None of note.
  • News Since The Close:
    • Tesla (TSLA) Sues to Sell EV Cars Directly to Consumers in Louisiana. (WSJ)
    • First Solar (FSLR) to invest up to $1.2 billion scaling production of American-made responsible solar.
    • Lockheed Martin (LMT) awarded a $503 million U.S. Navy firm-fixed-price order against a previously issued basic ordering agreement.
    • HEXO: To Produce Mike Tyson’s New Cannabis Brand, TYSON 2.0, in Canada.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Avid Technology (AVID): To join S&P Smallcap 600 and replace POLY.
    • Axos Financial (AX) files to delay 10-K.
    • Caleres (CAL) appoints Jack Calandra as Chief Financial Officer.
    • Greenbrier (GBX) elects Mr. Fargo to its Board of Directors as Independent Chair.
    • i3 Verticals (IIIV) names Pete Panagakis as CTO.
    • Peleton (PTON) files to delay 10-K.
    • Primo Water (PRMW) announced the planned retirement of Chief Financial Officer.
    • Timber Pharmaceuticals (TMBR) Announces Notification of NYSE American Continued Listing Deficiency
  • Buyback Announcements or News:
    • Civeo (CVEO) announces renewal of share repurchase authorization.
    • StoneX Group (SNEX) authorizes for FY23 the repurchase of up to 1.0 million shares of its common stock.
  • Stock Splits or News: None of note.
  • Dividends Announcements or News: None of note.

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

S&P 500 +26, Dow Jones +179 , NASDAQ +114 , and Russell 2000 +10 (as of 8:05 a.m. EDT)Europe higher and Asia lower ex Japan.  VIX Futures are at 25.49 from 26.95 yesterday morning and the VIX closed at 26.21 from 25.56 yesterday. Gold, Silver and Copper lower. WTI Crude Oil  and Brent Oil Futures lower and Natural Gas lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury sees yields at 3.06% from 3.112% yesterday morning. Bitcoin is at $20,399 from $19,804 yesterday morning  and is higher by 1.33% this morning.

Sector Action – 08/29/22 Close (1/3/6/12/YTD Updated Weekly with Monday release):  

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

Stocks started on a sour note from Friday’s hangover, but attempted a recovery into the green midday which did not hold.  COMPQ was down 1.02%.  USO up 3.74%.  Updated 08/29/22 close.

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

  • Tuesday After the Close: CRWD, HPQ, HPE, CHWY, PVH of note.
  • Wednesday Before the Open: DCI, DBI, VRA of note.

Earnings of Note This Morning:

  • Beats: BIDU +4.96, AMWD +0.32, BBY +0.25, BIG +0.19, PLAB +0.01
  • Flat: None of note.
  • Misses: BMO (0.05), CONN (0.05)
  • Still to Report: None of note.

Guidance:

  • Positive Guidance: none of note.
  • Negative Guidance: PLAB of note.

Erlanger Research Advance/Decline Chart: Updated through 08/29/22 close.

 

Gap Ups & Down In Early Pre-Market:

  • Gap Up: FREY +11%, AVID +9%, GAMB +6%.
  • Gap Down: SGMO -4%.

Insider ActionHOMB sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers08/29/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

  • Stocks making the biggest moves premarket:  BBY FSLR TWTR BBBY BIDU BIG (CNBC)
  • 5 things to know before the stock market opens. (CNBC)
  • Five Things You Need to Know to Start Your Day (Bloomberg)
  • Bloomberg Lead Story: Elon Musk adds whistleblower to reason for cancellation of Twitter (TWTR) deal. (Bloomberg)
  • Bloomberg Most Read Story: Department of Justice casts doubts on Trump request for a Special Master.  (Bloomberg)
  • Ukraine launches a counter offensive in the South and vows to push the Russian back to the border. (The Guardian)
  • Biden Administration looks to sell $1.1 billion of missiles and radar to Taiwan. (Bloomberg)
  • California passed legislation to let government set wages for fast food services. (WSJ)
  • 64% of consumers are concerned about “shrinkflation”. (CNBC)
  • Goldman warns housing slowdown has more to go. (Bloomberg)
  • NBC’s “Meet The Press” Chuck Todd job in jeopardy as shakeup of staff. (Daily Beast)
  • Boeing (BA) wins a $2.1 billion contract from Taiwan China Airlines. (Bloomberg)
  • Nvidia (NVDA) may use TSMC (TSM) 3D SolC Technology. (Digitimes)
  • Robinhood Snacks: Federal Reserve Chairman Powell double downs on inflation paving way for pain. Panera tests AI drive through in Upstate New York.

Moving Average Update:

  • NDX is the first to breach (barely!) the 50 day moving average to the downside.  Score goes down to 17% from 20%.  Updated 08/29/22 close.

Geopolitical: 

  • President’s Public Schedule:
    • The President and The Vice President receive the President’s Daily Briefing, 10:15 a.m. EDT
    • The President departs the White House en route Joint Base Andrews and Wilkes-Barre, Pennsylvania, 12:35 p.m. EDT
    • The President delivers remarks on his Safer America Plan to further reduce gun crime and save lives, 3:15 p.m. EDT
    • The President departs Wilkes-Barre, Pennsylvania en route Joint Base Andrews and White house, 4:30 p.m. EDT

Economic: 

  • Redbook Sales 8:55 a.m. EDT
  • June S&P Case Schiller Home Price Index is due out at 9:00 a.m. EDT and expected to come in at 19% from 20.5%.
  • FHFA HPI 9:00 a.m. EDT
  • August Consumer Confidence is due out at 10:00 a.m. EDT and is expected to come in at 97.4 from 95.7.
  • JOLTS 10:00 a.m. EDT
  • API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers:

  • Federal Reserve Richmond President Thomas Barkin 8:00 a.m. EDT 
    Federal Reserve New York President John Williams 11:00 a.m. EDT

M&A Activity:

  • Roper Technologies (ROP) to acquire Frontline Education.
  • Trimble (TRMB) to acquire privately-held Bilberry, a French technology company specializing in selective spraying systems for sustainable farming.
  • Zendesk (ZEN) confirms that it received unsolicited non-binding recapitalization proposal from Light Street Capital Management.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Mizuho 4th Annual Storage and AI Virtual Series
    • UBS Japan in Focus 2022 (08/30/22-09/01/22)
      • Previously posted and ongoing conferences:
        • Credit Suisse 10th China Internet Conference 2022 (08/29/22-08/31/22)
        • Jefferies Semiconductor, IT Hardware & Communications Infrastructure Summit 2022 (08/29/22-08/31/22)
        • Stifel Tech Executive Summit Deer Valley 2022 (08/29/22-08/31/22)
  • Company Meetings: CASY
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: EGAN, CVGI, FREY
  • Update: None of note.
  • R&D Day: None of note.
  • Company Event:
    • HP Global Partner (HPQ) Roadshow in Dubai (08/28/22-08/30/22)
    • VMware (VMW) Explore US 2022. (08/29/22-09/01/22)
    • Cenntro Electric Group (CENN) at Annual Sustainable Fleet Show (08/30/22-09/01/22)
  • Industry Meetings:
    • 14th International Conference on Osteogenesis Imperfecta 2022 (08/30/22-09/02/22)
      • Previously posted and ongoing conferences:
        • SafelyYou Inaugural Silicon Valley Senior Living Summit 2022 (08/29/22-08/31/22)

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:

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