The Daily Briefing For July 7th: All Eyes On Jobs Data

Overnight Summary: The S&P 500 closed Thursday at 4411.59 lower by -0.79% from Wednesday at 4446.82 lower by -0.20%. Overnight ranges saw the high hit at 4448.75 at 4:15 p.m. EDT while the low was hit at 4434.25 at 3:55 a.m. EDT. The range overnight was 14 points. The 10-day average of the overnight range is at 19.30 from 19.90.  The average for May/June average was 19.94 from 21.63 in May. Currently, the S&P 500 is lower by -3.25 points and is lower by -0.07% at 7:25 a.m. EDT.

Earnings Out After The Close: 

• Beats: LEVI +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.

Capital Raises:

• IPOs Priced or News:
  • Private equity firm L Catterton considering IPO valued at $6.0 billion or more for sandal maker Birkenstock. (Bloomberg)
• New SPACs launched/News:
  • DUET Acquisition Corp. (DUET) Intends to Combine with Fenix 360 Pte Ltd., to Create a Global Social Media Platform.
  • Nova Vision Acquisition Corp. (NOVV) Announces Extension of Combination Period and Additional Contribution to Trust Account to Extend Combination Period to August 10, 2023.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • RVSN: Filed Form F-1.. 3,947,368 Ordinary Shares.
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE):
  • XTNT: Announces Closing of $15 Million Private Placement.
• Mixed Shelf Offerings:
  • ARTL: Form S-3 Filed .. $75,000,000 Mixed Shelf.
• Debt/Credit Filing and Notes:
  • BHC: Enters Into $600 Million Financing Facility With KKR.
  • FSLR: First Solar Secures $1 Billion Revolving Credit Facility.
  • NTST: Announces $250.0 Million Term Loan and Amended and Extended $175.0 Million Term Loan.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • BECN: Announces Agreement to Repurchase All Outstanding Series A Cumulative Convertible Participating Preferred Stock.
  • NAAS: Announces Closing of US$30 Million Private Placement of Convertible Note.

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: GRRR +36%, CRON +4% of note.
  • Trading Down: LEVI -6%, BLZE -5% of note.
• News Items After the Close:
  • BIIB Halted: FDA approves Alzheimer’s drug Leqembi, paving way for broader Medicare coverage. (CNBC)
  • Levi Strauss (LEVI) stock falls 5% after outlook is cut. (MarketWatch)
  • Costco (COST) reports June adjusted comparable sales growth of 3.0%. (MarketWatch)
  • Binance GC Han Ng, Chief Strategy Officer Patrick Hillmann, and compliance SVP Steven Christie are leaving Binance over CZ’s response to the DOJ’s probe. (Techmeme)
  • Mallinckrodt (MNK) in Talks to Cut Opioid Settlement by up to $1B. (WSJ)
  • Gorilla Technology Group (GRRR) signs contract worth more than $270 million with Government of Egypt to implement a Smart Government Security Convergence solution.
  • Aecom Tech (ACM) among several firms to compete for each order of $200 mln US Army contract for architectural and engineering services.
• Exchange/Listing/Company Reorg and Personnel News:
  • Akanda Corp. (AKAN) Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency.
  • BDRX: Results of Appeal of Delisting Determination.
  • Cboe Global Markets (CBOE) promotes Jill Griebenow to CFO and Treasurer.
  • Chunghwa Telecom (CHT) appoints Chau-Young Lin as the new President of Chunghwa Telecom’s Information Technology Group.
  • Constellation Brands (STZ) announces that Rob Sands will retire from role of Chair of the Board of Directors.
  • iMedia Brands (IMBI) Receives Nasdaq Delisting Notice Following Chapter 11 Filing.
  • LL Flooring (LL) appoints Robert Madore as CFO.
  • MarketWise (MKTW) Announces Appointment of Erik Mickels as Chief Financial Officer.
  • NeoGames (NGMS) Expands Board with the Election of Steve Capp and Regains Compliance with Nasdaq Listing Rules Related to Audit Committee Composition.
  • Regional Health Properties, Inc. (RHE) Announces Receipt of Notice of Noncompliance from NYSE American.
  • SPS Commerce (SPSC) Appoints Chad Collins as Chief Executive Officer.
  • SS&C (SSNC) Announces Appointment of Brian Schell as Chief Financial Officer.
  • TTCF Trading of the Company’s common stock will be suspended at the opening of business on July 12, 2023.
• Buyback Announcements or News: None of note.
• Stock Splits or News:
  • AAON Announces 3-for-2 Stock Split.
  • Acasti Pharma (ACST) Announces 1-for-6 Reverse Stock Split.
  • authID (AUID) Announces Reverse Stock Split Effective Monday July 10, 2023.
  • Jiuzi Holdings Inc. (JZXN) Announces 1-For-18 Reverse Share Split.
• Dividends Announcements or News:
  • Lindsay Corp (LNN) declared a regular quarterly cash dividend of $0.35 per share, up $0.01.
• Insider Sales Of Note:
  • Airbnb (ABNB): CEO sold 30000 shares at $130.03-133.78 worth ~$3.97 mln
  • First Watch Restaurant Group (FWRG): Two directors each sold 450000 shares at $16.42 worth ~$7.39 million.
  • Palantir Technologies (PLTR): Director sold 37076 shares at $15.38 worth ~$570K.

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

S&P 500 -2, Dow Jones -4,  NASDAQ -22, and Russell 2000 +1. (as of 7:56 a.m. EDT).  Asia lower while Europe higher ex the FTSE this morning. VIX Futures are at 15.81 from 15.58 yesterday.  Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher as well. US 10-year Treasury sees yields at 4.062% from 3.981% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $31,185 from $31,109.50 yesterday, lower by -0.35%.

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

• Daily Positive Sectors: None of note.
• Daily Negative Sectors: Energy, Consumer Cyclical, Basic Materials, Utilities, Communication Services, Financial, Healthcare of note.
• One Month Winners: Consumer Cyclical, Industrials, Basic Materials of note.
• Three Month Winners: Technology, Communication Services, Consumer Cyclical of note.
• Six Month Winners: Technology, Communication Services, Consumer Cyclical of note.
• Twelve Month Winners: Technology, Industrials, Consumer Cyclical of note.
• Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

Stocks and bonds sold off on Thursday after another round of strong economic data solidified expectations of further interest-rate increases.  The S&P 500 and the tech-heavy Nasdaq Composite each shed 0.8%. The Dow Jones Industrial Average dropped 366 points, or 1.1%. All 11 sectors of the S&P 500 closed in the red.  It was the worst performance since May.  The benchmark 10-year Treasury yield rose to 4.04%, from 3.942% late Wednesday. The two-year yield climbed to 5.004%, from 4.949%, as prices fell.  (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:

• Monday Before the Open:

Earnings of Note This Morning:

• Beats: None of note.
• Flat: None of note.
• Misses: None of note.
• Still to Report: None of note.

Guidance:

• Positive Guidance: OR, DOCN, SAND of note.
• Negative Guidance: LEVI, ABBV of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: GRRR +58%, QTRX +8%, CRON +4% of note.
• Gap Down: LEVI -7%, BLZE -5% of note.

Insider Action: BDTX sees Insider buying with dumb short selling.  No stock 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.

• Five Things to Know this Morning (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Bloomberg Lead Story: Traders Brace For US Payrolls With Global Yields at 15 Year High. (Bloomberg)
• Bloomberg  Most Shared Story: Meta’s (META) Threads App Draws Millions Seeking Twitter Alternative. (Bloomberg)
• Stocks drift as Traders brace for more jobs data: Market Wrap. (Bloomberg)
• US Oil Production set for a record year. (WSJ)
• Amazon (AMZN) CEO Andy Jassy was interviewed on CNBC and feels lots of growth ahead for the company. (CNBC)
• Treasury Secretary Yellen meets with Chinese Premier Li Qiang. (CNBC)
• Cash hits $7.8 Trillion reports Bank of America. (Reuters)

Moving Average Update:

• Score slips to 68% from 97%.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the Presidential Daily Briefing, 10:00 a.m. EDT
  • Press Briefing by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan, 1:00 p.m. EDT
  • The President delivers remarks on lowering costs for hardworking Americans, 3:30 p.m. EDT
  • The President departs the White House en route to Joint Base Andrews 6:00 p.m. EDT and arrives in Rehoboth Beach, Delaware 7:35 p.m. EDT

Economic:

• June Nonfarm Payrolls is due out at 8:30 a.m. EDT and is expected fall to 220,000 from 339,000. The unemployment rate is expected to fall to 3.60% from 3.70%.
• EIA Natural Gas Report 10:30 a.m. EDT
• Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:

• Federal Reserve Chicago President Austan Goolsbee 11:30 a.m. EDT

M&A Activity:

• Cronos Group Inc. (CRON) confirms receipt of unsolicited indications of interest.

Meeting & Conferences of Note:

• Sellside Conferences: None of note.
  • Previously posted and ongoing conferences: None of note.
• Top Shareholder Meetings: MOBV, TMKR
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: POAHY
• Update: None of note.
• R&D Day: None of note.
• Company Event: None of note.
• Industry Meetings:
  • Global Food Allergy Prevention Summit (GFAPS) 2023 (07/07/23-07/09/23)
  • American Head and Neck Cancer Society (AHNS) 11th Annual International Conference (07/08/23-07/12/23)
  • Design Automation Conference (DAC) 2023 (07/09/23-07/13/23)
    • Previously posted and ongoing conferences: None of note.
      • American Association of Physicians of Indian Origin (AAPI) Convention and Scientific Assembly 2023 (07/06/23-07/09/23)
      • Symposium 234: Mucosal Immunology : A Translational View into the Clinic 2023 (07/06/23-07/08/23)
      • World Congress of Dermatology (07/03/23-07/08/23)
      • Association of Physicians of Pakistani Descent of North America (APPNA) 46th Annual Summer Convention 2023 (07/04/23-07/09/23)

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: