The Daily Briefing For August 3rd: Stocks Up Modestly, M&A Activity Rockets

by Geoff Garbacz | 08/03/2021 9:18 AM

Rebel Yell Morning Market Report

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The Daily Briefing For August 3rd: Stocks Up Modestly, M&A Activity Rockets

Notable: China continues to clamp down on businesses as it tackled online gaming this morning as CCP calls game “spiritual opium”. (Bloomberg)

Earnings Out After The Close:

Beats: BCC +3.19 COLM +0.70 SPG +0.54 OTTR +0.45 CLR +0.36 UIS +0.35 TTWO +0.27 MOS +0.18  of note.

Flat: None of note.

Misses: NXPI -0.90 VNO -0.46 RMBS -0.21 FRPT -0.20 RIG -0.04 WMB -0.01 of note.

Capital Raises: 

IPOs Priced or News: 

New SPACs launched: None of note.

Secondaries Priced:  None of note.

Notes Priced of note:  None of note.

Common Stock filings:  RNA MAA IVA LI HRZN  of note.

Selling Shareholders of note:   DRVN TWLO TLMD of note.

Private Placement of Public Entity (PIPE): None of note.

Mixed Shelf Offerings:  VSTM TKR LIVN MOSY of note.

Convertible Offering & Notes Filed: None of note.

Note Offerings 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:

Senator Lindsey Graham was diagnosed with Covid-19 and will quarantine for next 10 days.

GoHealth (GOCO) announces exclusive Medicare agreement with GoodRx (GDRX).

Leidos (LDOS) wins prime contract with the U.S. Army.

Dividend Increases: PXD WLTW

Stock Split:

Higher Guidance: SBAC SPNE FRPT 

Mixed Guidance:

Lower Guidance: TTWO 

Buyback Announcements: CLR (resumes) BABA (expands)

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

S&P 500 +7 Dow Jones Industrial Average +72 NASDAQ +21 Russell 2000 +6.  Fair values are mixed. Asia lower and Europe mixed. VIX is at 20.85 from 19.92 in futures. VIX closed at $19.46 from $18.24 . Gold, silver and copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is flat. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $134.95 from $134.59  with yields at 1.17% from 1.23% yesterday. Bitcoin at $38231 from$39589 on Monday trading at $-1137 or -2.95%.

Monday’s Action – 8/2 Close.  

Positive Sectors On Monday:  Utilities and Consumer Cyclicals of note.

Negative Sectors On Monday: Materials, Industrials and Energy of note.

One Month Winners: Technology, Consumer Cyclical and Materials of note.

Three Month Winners: Energy, Real Estate and Healthcare of note.

Six Month Winners: Real Estate, Communication Services, Energy and Financials of note.

Twelve Month Winners: Materials, Communication Services, Industrials, Financials and Energy of note.

Year to Date: Energy, Communication Services, Financials, Real Estate and Industrials of note.

Stocks were mixed, Bonds were higher, U.S. Dollar lower and Commodities mostly lower. Updated 8/2 Close.

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

Tuesday After the Close: AMGN, ATVI, PSA, PRU, MCHP, VRSK, OXY, RNG, OKE, PAYC, PEAK, CZR, AKAM, LYFT, DVN of note.

Wednesday Before the Open: CVS, EMR, HMC, KHC, EXC, MPC, MPLX, APO, CDW, ABC, VMC, HZNP, ETR, RCL, CRL, HWM, VER, BWA of note.

Earnings of Note This Morning:

Beats: BABA +2.31 IGT +1.26 WLTW +0.70 IT +0.51 ZBRA +0.45 LPX +0.36 MAR +0.33 KKR +0.19 DISCA +0.18 COP +0.14 UAA +0.18 ETN +0.15

Flat: None of note.

Misses: CLX -0.36 SAGE -0.14 AQUA -0.08 LDOS -0.06 LLY -0.02

Still to Report: 

Insider Purchases:  None of note today. 

Below is the list of insider buys from this morning and is sorted by Erlanger Short Intensity. The idea here is simple. Find stocks where insiders are buying and the shorts are “dumb short sellers”.  AFL has  heavy short selling at 100% with dumb short sellers so this should be considered as a potential buy. Updated last 8/3

Erlanger Research Advance/Decline Chart –Updated through 8/2 close. 

Gap Ups & Down In Early Pre-Market:

Gap up: OTLK +32%, TBIO +29%, HOLI +18%, ZI +11%, SEDG +10%, UIS +8%, OTTR +7%, BP +6%, STLA +5%, PLXP +5%, BCC +5%, FLR +4%, COLM +4%, KMT +4%

Gap down: NEWT -11%, RNA -7%, ADUS -5%, TTWO -5%, DRVN -4%, EVER -4%, REYN -4%, LDOS -3%, LDOS -3%, VRNS -3%, SANM -3%

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

Stocks making the biggest moves UA CLX TBIO LLY (CNBC)

5 Things To Know Before Tuesday’s open. (CNBC)

China sets “Buy Chinese” targets for state run companies. (Reuters)

China takes on “online gaming” stocks in next battle. (WSJ)

Covid-19 cases rise to 101,171 from 64,317 while 35,457 hospitalizations from 24,252. Deaths remain low. No update Tuesday as states do not report over the weekend data.

President Biden advisors are battling over mask mandate given the political implications. (Politico)

Less than 1% of vaccinated people have had a breakthrough case. (Seattle Times)

Robinhood Snaps looks at Square (SQ) acquisition of Afterpay. Hello Sunshine bought for $900 million.

Index Moving Averages: 8/2 Close – The Confidence Score moves to 63%.  

Geopolitical:

President Biden receives the daily presidential briefing at 10:15 a.m. EDT.

President Biden and Vice President Harris meet with Latino leaders at 1:00 p.m. EDT.

Press Briefing at 1:30 p.m. EDT with Jen Psaki.

President Biden delivers remarks on Covid-19 and vaccinations in the U.S. and abroad.

Fed Speakers

Federal Reserve Governor Bowman to speak at 2:00 p.m. EDT.

Economic:

June Factory Orders are due out at 10:00 a.m. EDT and are expected to come in at 1.0% from 1.7% in May.

API Petroleum Institute Data is due out at 4:30 p.m. EDT.

M&A Activity:

Pepsi (PEP) to sell its Tropicana unit for $3.3 billion to PAI Partners.

Sanofi (SNY) to buy Translate Bio (TBIO) for $38 a share.

Houlihan Lokey (HLI) to buy GCA Corp for $591 million.

ModivCare (MODV) to buy VRI Intermediate Holdings for $315 million.

Marvell (MRVL) to buy Innovium for $1.1 billion in all stock deal.

Meeting & Conferences of Note:

Sellside Conferences: Credit Suisse Disruptive Business Conference (8/2-6) Jefferies Industrial Conference (8/3-4) Keefe Woods & Bruyette Community Bank Investor Conference (8/3-5)

Company Meetings:  GBOX (Webinar) NEWT (Conference Call) 

Industry Meetings:

Upgrades & Downgrades: Today recs see 16 upgrades and 1 downgrade. 

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