The Daily Briefing For June 13th:

Overnight Summary: The S&P 500 closed Monday at 4338.93 higher by 0.93% from Friday at 4298.86 higher by 0.11%. Overnight ranges saw the high hit at 4402.50 at 2:25 a.m. EDT while the low was high at 4384.25 at 4:05 p.m. EDT. The range overnight was 18.25 points. The 10-day average of the overnight range is at 17.20 from 17.30. The average for May was 21.63. Currently, the S&P 500 is higher by +11 points are 7:15 a.m. EDT.

Earnings Out After The Close: 

• Beats: ORCL +0.09 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: None of note.
• New SPACs launched/News:
  • CF Acquisition Corp. VII (CFFS) Announces Postponement of its Special Meeting of Stockholders and Extension of Redemption Date.
• Secondaries Priced:
  • LSEA: Announces pricing of upsized secondary common stock offering and concurrent stock repurchase.
  • BNRG: Announces Pricing of $2.5 Million Private Placement.
  • MOVE: Prices $8.0 Million Public Offering.
• Notes Priced of note:
  • CLMT: Announces Pricing of $325 Million Private Placement of 9.75% Senior Notes due 2028.
  • EXR: Prices $450M senior notes offering.
  • LH: Pricing of Fortrea $570 Million Notes Offering in Connection With Anticipated Fortrea Spinoff.
• Common Stock filings/Notes:
  • AIG: Announces Closing of Secondary Offering of Corebridge Financial, Inc. Common Stock.
  • BBAI: Form 8K.. entered into an Underwriting Agreement – 11,848,341 Shares.
  • CWST: Proposed Public Offering of Class A Common Stock. $400 Million. (RJ and Stifel bookmanagers)
  • EFOI: Filed Form S-3.. 8,893,164 Shares of Common Stock.
  • IRON: Proposed Public Offering of Common Stock and Pre-Funded Warrants $100 million of shares. (MS, SVB, Stifel and BMO Bookmanagers)
  • LSEA: Announces Secondary Common Stock Offering And Concurrent Stock Repurchase.
  • MKUL: Filed Form S-3.. 15,625,000 Shares.
  • MOVE: Proposed Public Offering. (Benchmark bookmanager)
• Direct Offering: None of note.
• Selling Shareholders of note: None of note.
• Private Placement of Public Entity (PIPE):
  • BURU: To Receive Cash Infusion of Approximately $8 Million from Existing Investors through Private Placement.
• Mixed Shelf Offerings:
  • DUOT: Filed Form S-3. $50 Million Mixed Shelf.
  • EKSO: Filed Form S-3. $75 Million Mixed Shelf.
• Debt/Credit Filing and Notes:
  • CAE: Announces closing of private offering of $400 Million of senior unsecured notes.
  • HPK: Proposed Aggregate $575 Million Private Offering of Senior Notes.
  • NN: Announces Additional $20 Million in Debt Financing.
  • RC: Announces Pricing of RCMF 2023-FL12, a Securitization of $648.6 million in Bridge Loans and the Redemption of RCMF 2020-FL4.
  • SLNG: Announces New $10 Million Revolving Credit Facility.
• Tender Offer:
  • NNDM: Reaffirms $18 Per Share All-Cash Tender Offer for Stratasys Shareholders to Receive Near-Term Value by Tendering Their Shares.
• Convertible Offering & Notes Filed:
  • GTX: Converts Series A Preferred Stock to Common Stock.
  • LITE: Announces $500 Million Convertible Notes Offering.

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: None of note.
  • Trading Down: MEI -9%, LSEA -7%, LITE -5% of note.
• News After The Close:
  • Chegg (CHGG) to Eliminate 80 Employees, About 4% Of Workforce.
  • Toyota (TM) to roll out solid-state-battery EVs as soon as 2027. (NikkeiAsia)
  • S&P 500 Notches Highest Close In More Than A Year. (FT)
  • Raytheon Technologies (RTX) and Whitney Military Engines awarded $888 mln U.S. Navy contract modification.
  • UBS downgrades Apple (AAPL), says it sees weaker demand ahead for iPhones. (CNBC)
  • US Small Caps valuation more appealing than broad S&P500 – Berenberg US small caps appear to be pricing in a greater degree of macro risk relative to their large-cap peers. The median forward P/E for the S&P 600 SmallCap index is 11.8x, while the S&P 500 stands at 17.0x, representing a significant discount. Similar valuation disparities in the past, seen only twice since 1990 (TMT bubble and COVID-19), have resulted in substantial outperformance by small caps.
  • Netflix (NFLX) to Enter Live-Streamed Sports With Celebrity Golf Event. (WSJ)
  • Assets Under Management (AUM) Monthly Reporting: AB $670 billion – down $6 billion, IVZ $1,487.6 billion (up 0.2%),

• Exchange/Listing/Company Reorg and Personnel News:
  • Akebia Therapeutics (AKBA) Announces New Chief Financial Officer.
  • Anaergia (AMRC) Announces Appointment of Andrew Spence as Chief Financial Officer.
  • Bonso Electronics International, Inc. (BNSO) Announces Plan to Delist from Nasdaq and Deregister Its Common Stock.
  • Chico’s FAS, Inc. (CHS) Announces CFO Transition.
  • HSKA Halted Additional Information Requested by NASDAQ.
  • IM Cannabis (IMCC) Receives NASDAQ Notification of Regaining Compliance with Nasdaq’s Minimum Bid Price Requirement.
  • Missfresh (MF) Announces Receipt of Nasdaq Listing Determination; Company to Request Hearing.
  • Ovintiv (OVV) Announces Closing of Midland and Bakken Transactions & Inclusion in S&P 400 Index.
  • Ramaco Resources (METC) Provides Update Regarding Transition To New Dual-class Share Structure.
  • Reata Pharmaceuticals (RETA) Appoints Rajiv Patni, M.D., as Executive Vice President, Chief Research & Development Officer.
• Buyback Announcements or News:
  • Chubb Limited (CB) Board Authorizes New Share Repurchase Program.
  • Landsea Homes (LSEA): See Secondary in Capital Raises above.
  • Universal (UVE) Announces New $20 Million Share Repurchase Authorization.
• Stock Splits or News: None of note.
• Dividends Announcements or News:
  • Essential Properties Realty Trust (EPRT) increases quarterly cash dividend to $0.28 per share from $0.275 per share.
  • CCI Goes ex div tomorrow for $1.565.
  • EXR Goes ex div tomorrow for $1.62.
  • XEL Goes ex div tomorrow for $0.52.

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

S&P 500 +2, Dow Jones +1,  NASDAQ +29,  and Russell 2000 +1. (as of 7:56 a.m. EDT).  Asia and Europe are higher. VIX Futures are at 15.35 unchanged from yesterday.  Gold, Silver and Copper higher from yesterday. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher. US 10-year Treasury sees yields at 3.738% from 3.753% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $26,139 from $25,944 from yesterday, higher by 1.28%.

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

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

U.S. stocks climbed Monday, driving the S&P 500 to its highest level in more than a year, as investors looked ahead to a busy stretch packed with key economic reports and the Federal Reserve’s latest interest-rate decision.  Coming off its fourth straight week of gains, the S&P 500 rose 0.9% to 4338.93, its highest close since April 2022. The Dow Jones Industrial Average ticked up 0.6%, or about 190 points, while the tech-heavy Nasdaq Composite advanced 1.5%.  (MarketWatch – edited by QPI)

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

• Tuesday After the Close: None of note.
• Wednesday Before the Open: None of note.

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: PLUG, ORCL of note.
• Negative Guidance: IAS of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: SAND +7%, TM +4%, ORCL +4% of note.
• Gap Down: MEI -11%, LSEA -7% of note.

Insider Action: DAWN, DG, AN sees Insider buying with dumb short selling.  ASAN 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.

• Stocks Making The Biggest Moves Premarket: ORCL, URBN, AAPL, BG, ZION, FHN, HD, ULTA (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Five Things To Know Before the Stock Market Opens Tuesday. (CNBC)
• Bloomberg Lead Story: Moderating U.S. Inflation Likely to Support Fed Rate Pause. (Bloomberg)
• Bloomberg  Most Shared Story: Arm Ltd., backed by Softbank, Courts Intel as Anchor Investor in Upcoming IPO. (Bloomberg)
• China shifts to stimulus mode with Xi’s options dwindling. (Bloomberg)
• Inflation Report to be critical for the direction of Fed policy. (CNBC)
• Stocks Pare Gains As Traders Brace for Inflation Data: Market Wrap. (Bloomberg)
• Former President Donald J. Trump heads to court to start fighting Espionage Act charges. (Bloomberg)
• Cocoa prices sore to a seven-year high. (CNBC)
• Home Depot (HD) affirms 2023 profit and sales outlook ahead of investor meeting, stock at a four-month high. (MarketWatch)

Moving Average Update:

• All green still.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the Presidential Daily Briefing, 10:00 a.m. EDT
  • The President holds a meeting with Jens Stoltenberg, Secretary General of the North Atlantic Treaty Organization, to discuss the upcoming NATO Summit in Vilnius, Lithuania, 1:00 p.m. EDT
  • Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EDT
  • The President delivers remarks at the Chiefs of Mission, 5:15 p.m. EDT
  • The President hosts a Juneteenth concert on the South Lawn; The Vice President participates; The Second Gentleman attends, 7:00 p.m. EDT

Economic:

• May NFIB Small Business Optimism is due out at 6:00 a.m. EDT and came in last month at 89.
  • US NFIB Small Business Optimism May: 89.4 (est 88.5; prev 89.0)
  • US Small-Business Sentiment Remains Subdued on Sour Outlook – NFIB index ticked up to 89.4 last month from a 10-year low – Sales expectations fell for a third month to lowest since July. (Bloomberg)
• May CPI is out at 8:30 a.m. EDT and is expected to come in at 0.2% from 0.4%.
• Redbook Sales 8:55 a.m. EDT
• API Crude Oil Data 4:30 p.m. EDT

Federal Reserve / Treasury Speakers: 

• Fed Blackout Period.
• House Financial Services Committee releases testimony from Treasury Secretary Janet Yellen head of hearing today at 10:00 a.m. EDT (Release)

M&A Activity: 

• Aegion (AEGN) Announces Acquisition of Standard Pipe Services.
• Bowman Consulting Group (BWMN) acquires Advanced Applied Engineering.
• Bunge (BG) and Viterra to combine to create a premier diversified global agribusiness solutions company; plans to repurchase $2.0 billion of Bunge’s stock to enhance accretion.
• Core & Main (CNM) Signs Agreement to Acquire Dangelo Co.

Meeting & Conferences of Note:

• Sellside Conferences:
  • Bank of America Lithium Junior Mining & Materials Conference 2023
  • Credit Suisse Communications Conference
  • Deutsche Bank Global Auto Industry Conf (06/13/23-06/15/23)
  • Diamond Equity Research Emerging Growth
  • Evercore Consumer and Retail Conference (06/13/23-06/15/23)
  • Goldman Sachs Annual European Financial Services Conference 2023 (06/13/23-06/15/23)
  • Jefferies Business Aviation Summit
  • Nasdaq Investor Conference (06/13/23-06/14/23)
  • Oppenheimer West Coast Software Bus Tour with Clearwater Analytics 2023
  • RBC Financial Technology Conference
  • UBS Women in Tech Summit 2023
  • Wells Fargo Industrials Conference (06/13/23-06/15/23)
    • Previously posted and ongoing conferences:
      • Roth MKM Internet Virtual Summit 2023 (06/11/23-06/15/23)
      • Barclays European Internet and Emerging Tech Conference 2023 (06/12/23-06/13/23)
      • Goldman Sachs Global Healthcare Conference (06/12/23-06/15/23)
      • Morgan Stanley 14th Annual US Financials Payments & CRE Conference 2023 (06/12/23-06/14/23)
      • Oppenheimer Consumer Growth & E-Commerce Conference (06/12/23-06/14/23)

• Top Shareholder Meetings: CZR, EQC, FIVE
• Fireside Chat: GEVO
• Investor/Analyst Day/Calls: BLDP, CFLT, GDYN, HD, IAS, PI, PLAY, THS, THTX
• Update: None of note.
• R&D Day: None of note.
• Company Event:
  • The ON24 (ONTF) Experience 2023
  • RUBICONSmartCity (RBT) Next Summit 2023 (06/13/23-06/14/23)
  • AMD Next-Generation Data Center and AI Technology
• Industry Meetings:
  • American Association for Cancer Research (AACR) 17th International Conference on Malignant Lymphoma 2023 (06/13/23-06/17/23)
  • Automotive Testing Expo (ATE) Europe 2023 (06/13/23-06/15/23)
    • Previously posted and ongoing conferences:
      • European Human Genetics Conference ESHG 2023 (06/10/23-06/13/23)
      • International Microwave Symposium (IMS) 2023 (06/11/23-06/16/23)
      • 36th Electric Vehicle Symposium & Exposition (EVS36) 2023 (06/11/23-06/14/23)
      • Minnesota Bankers Association Annual Summit 2023 (06/11/23-06/13/23)
      • European Association for Cancer Research (EACR) 2023 Congress (06/12/23-06/15/23)
      • Mass General Brigham World Medical Innovation Forum 2023 (06/12/23-06/14/23)
      • 7th Annual Energy Drone & Robotics Summit (06/12/23-06/14/23)

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: