The Daily Briefing For June 16th: Stocks Look To Close Out Best Week Since March. Enjoy The Long Weekend!

Overnight Summary: The S&P 500 closed Thursday at 4425.84 higher by 1.22% from Wednesday at 4372.59 higher by 0.08%. Overnight ranges saw the high hit at 4478 at 5:10 0.m. EDT while the low was high at 4459.75 at 10:25 p.m. EDT. The range overnight was 18 points. The 10-day average of the overnight range is at 15.80 from 16.50. The average for May was 21.63. Currently, the S&P 500 is higher by +0.25 points and is up by +0.01 % at 6:55 a.m. EDT.

Quick Note: There is no Morning Note on Monday as markets are closed for Juneteenth National Independence Day. We will be back on Tuesday morning.

Earnings Out After The Close:

• Beats:  ADBE +0.12 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:
• New SPACs launched/News:
• Secondaries Priced: VSTM prices $85 million at $9.75 a share.
• Notes Priced of note: None of note.
• Common Stock filings/Notes: Filings for future deals COCP BKYI CLNN.
• Direct Offering:
• Selling Shareholders of note:
  • CWAN to sell 10,000,000 shares by selling shareholders.
  • OTLY files for 22,424,755 ADSs by selling shareholders.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
• Debt/Credit Filing and Notes:
• Tender Offer:
• 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:  SPCE +41%, ADBE +2.3%, NUE +1.2% of note.
  • Trading Down:  CBT -7.7%, TIGO -6.6%, CWAN -3.3% of note.
• News After The Close:
  • Adobe (ADBE) beat across the board on both earnings, revenues and guidance. (Reuters)
  • Millicom International Cellular (TIGO) end merger discussions with Apollo Global (APO).
  • Virgin Galactic (SPCE) to begin commercial spaceline operations with the first flight between 6/27-30 with the second flight in early August and then monthly.
  • Oracle (ORCL) to lay off hundreds of workers, rescinds job offers and cut open positions in Cerner Health Unit. (Business Insider)
  • UPS workers may strike this summer. (The Hill)
  • Cabot (CBT) withdraws FY23 EPS outlook.
  • Blackrock (BLK) to create a spot Bitcoin ETF. (CoinDesk)

• Exchange/Listing/Company Reorg and Personnel News:
  • Avita Medical (RCEL) names David O’Toole as CFO effectively today.
  • Walt Disney (DIS) CFO Christine McCarthy to step down and Disney Parks CFO Kevin Lansberry to assume role of Interim CFO.
  • Talos Energy (TALO) names Sergio Maiworm as CFO and SVP as of 7/1/23.
  • Coterra Energy (CTRA) names Shane Young as CFO replacing Scott Schroeder who is retiring.
  • FDA recommends updated Covid shots for the fall due to XBB variant. (CNBC)
  • Stellantis (STLA) to offer EVs for under 25,000 pounds. (Bloomberg)
  • Galapagos (GLPG) names Thad Huston as CFO and COO as of 7/1.
  •  
• Buyback Announcements or News:
  • Insider Sales of note after the close COST, FANG, BLD, and CBOE.
• Stock Splits or News: None of note.
• Dividends Announcements or News:
  •  

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

S&P 500 +2, Dow Jones +6 ,  NASDAQ +34, and Russell 2000 . (as of 7:59 a.m. EDT).  Asia and Europe are higher. VIX Futures are at 17.21 from 16.55  yesterday.  Gold and Silver higher with Copper lower from yesterday. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher. US 10-year Treasury sees yields at 3.73% from 3.823% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $25,531 from $24,869 yesterday, higher by 0.51%.

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

• Daily Positive Sectors:  Healthcare, Communication Services, Industrials and Energy of note.
• Daily Negative Sectors:  None 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.

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

• Friday After the Close: None of note.
• Tuesday 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:  of note.

Guidance:

• Positive Guidance:  of note.
• Negative Guidance:  of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: SPCE +38.7%, NETI +10.9%, LXRX +8.6%, ENVX +7%, SQSP +5.6%, TSP +5.6%, IPHA +3.4%, ADBE +3.2%, DLO +3%, NVAX +3%, COIN +2.4% of note.
• Gap Down: VSTM -9.4%, CBT -6.9%, TIGO -6.8%, CWAN -5.1%, CANO -3.1%, GT -1% of note.

Insider Action:  No names that see Insider buying with dumb short selling.  There are heavy shorts in ACDC. No names 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 before the bell: SPCE ADBE SOFI CAVA MU DKNG (CNBC)
• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Five Things To Know Before the Stock Market Opens Friday. (CNBC)
• Bloomberg Lead Story: Hedge Fund Manager Crispin Odey’s One-Week Downfall Was Decades in the Making. (Bloomberg)
• Bloomberg  Most Shared Story: Microsoft’s Sudden AI Dominance is Scrambling Silicon Valley Power Structure. (Bloomberg)
• Global Stocks Head For Best Week Since March: Market Wrap. (Bloomberg)
• Bank of Japan holds rates steady. (Bloomberg)
• U.S. Gas prices lower for summer driving season. (WSJ)
• Micron (MU) nears a $1 billion investment in India. (Bloomberg)
• Micron will also invest $600 million in China. (WSJ)
• Microsoft (MSFT) executives predict $10 billion in AI revenue. (CNBC)
• Goldman Sachs (GS) is reevaluating CEO David Solomon as its head. (NY Post)
• Humana (HUM) reaffirms guidance but warns of higher costs on medical procedures due to demand. (Reuters)
• Bristol-Myers (BMY) receives FDA approval for addition of positive data from Phase 3 VALOR-HCM Study to CAMZYOS (mavacamten) Label (64.67) (Biz Wire)

Moving Average Update:

• Wednesday’s small crack was plugged very quickly, back to all averages strong.

Geopolitical: 

• President’s Public Schedule:
  • The president speaks at the National Safer Communities Summit at 2:05 p.m. EDT. The president leaves Washington D.C. at 11:30 a.m. EDT.

Economic:

• June University of Michigan Consumer Sentiment (Prelim) is due out at 10:00 a.m. EDT and is expected to rise to 60.20 from 59.20.
• Baker Hughes Rig Count (weekly) at 1:00 p.m. EDT.

Federal Reserve / Treasury Speakers: Federal Reserve Governor Christopher Waller speaks at 7:45 a.m. EDT.

M&A Activity: 

• None of note.

Meeting & Conferences of Note:

• Sellside Conferences:
  • BAC Asia Conference
  •  
  • • Previously posted and ongoing conferences:
      • Evercore ISI 2nd Annual Global Clean Energy & Transition Technologies Summit 2023 (06/15/23-06/16/23)
      • RBC Global Mining & Materials Conference (06/15/23-06/16/23)

• Top Shareholder Meetings: AON
• Fireside Chat:
• Investor/Analyst Day/Calls: PCYO holds their investor meeting at 10:30 a.m. EDT. ORKLY holds a conference call at 8:30 a.m. EDT.
• Update: None of note.
• R&D Day: None of note.
• Company Event:
  •  
• Industry Meetings:
  • • Previously posted and ongoing conferences:
      • InfoComm 2023 (06/14/23-06/16/23)
      • International Society for Stem Cell Research (ISSCR) Annual Meeting 2023 (06/14/23-06/17/23)
      • International Microwave Symposium (IMS) 2023 (06/11/23-06/16/23)
      • American Association for Cancer Research (AACR) 17th International Conference on Malignant Lymphoma 2023 (06/13/23-06/17/23)
      • American Headache Society (AHS) 65th Annual Scientific Meeting 2023 (06/15/23-06/18/23)
      • 60th European Renal Association (ERA) Congress 2023 (06/15/23-06/18/23)
      • Endocrine Society (ENDO) Annual Meeting 2023 (06/15/23-06/18/23)

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: