The Daily Briefing For June 2nd: Debt Ceiling Bill Passes Senate. Stocks Higher

by Geoff Garbacz | 06/02/2023 8:13 AM

Rebel Yell Morning Market Report

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The Daily Briefing For June 2nd: Debt Ceiling Bill Passes Senate. Stocks Higher

Overnight Summary: The S&P 500 closed Thursday at 4221.20 higher by 0.99% from Wednesday at 4179.83 lower by -0.61%. The overnight high of 4251.50 was hit at 5:25 a.m. EDT. The low was hit at 4226.76 at 4:05 a.m. EDT, a range of ~25 points high to low which is a mid-vol night.  At 7:15 a.m. EDT, the current price was 4200.75 which is 0.24% and +10.25 points. The 10-day average of the overnight range is 22.10 from 21.30. The average for May was 21.63.

Earnings Out After The Close: 

  • Beats: DELL +0.45, MDB +0.38, LULU +0.32, AVGO +0.20, ESTC +0.13, PD +0.11, ASAN +0.09, ZS +0.06, COO +0.04, FIVE +0.04, CHPT +0.04, S +0.02 of note
  • Flat: None of note.
  • Misses: GWRE (0.12), ZUMZ (0.10), VMW (0.06) 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:
    • Alkermes (ALKS) appoints Caroline J. Loew as CEO designate of Mural Oncology, the new public company to be established upon the planned separation of ALKS’s oncology business, which remains on track to be completed in 2H23.
  • New SPACs launched/News:
    • Jupiter Wellness Acquisition Corp. (JWAC) completes previously announced business combination with Chijet, Inc.; to begin trading on the Nasdaq under the symbol “CJET” on June 2.
    • RMG Acquisition Corp. III (RMGC) Announces Receipt of Nasdaq Listing Delinquency Letter and Nasdaq Listing Compliance Determination Letter.
  • Secondaries Priced:
    • MKSI: Announces Pricing of Public Offering by Selling Stockholders.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • ADIL: Form 8K.. entered into a Purchase Agreement.
    • CYTO: Filed Form F-3.. 5,855,134 Common Shares.
    • DBD: Form RW Filed.
    • GTEC: Form RW Filed.
    • MOTS: Filed Form S-3.. 8,491,125 Shares Common Stock.
    • PLUR: Filed Form S-3.. Up to 16,311,800 Common Shares.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • GBTG: Files for 3,775,304 shares of Class A common stock by selling stockholders. (see Mixed Shelf)
    • MKSI: Launches Proposed Public Offering by Selling Stockholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings:
    • AGO: Filed Form S-3ASR.. Mixed Shelf.
    • APP: Filed Form S-3ASR.. Mixed Shelf Offering.
    • COFS: Filed Form S-3.. $50,000,000 Mixed Shelf.
    • CSV: $350 Million Mixed Shelf.
    • GBTG: Files $300 million mixed shelf securities offering.
    • SMR: Files $500 million mixed shelf securities offering.
    • TCBK: Files mixed shelf securities offering.
  • Debt/Credit Filing and Notes:
    • HGBL: Announces New Upsized $17 Million Credit Facility with C3bank.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed:
    • KBR Announces Agreements to Repurchase $100 Million Principal Amount of its $350 Million 2.50% Convertible Senior Notes Due November 1, 2023.

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: MDB +21%, IOT +14%, LULU +13%, NX +9%, ASAN +6%, SSYS +6%, FIVE +5% of note.
    • Trading Down: S -35%, PD -15%, ESTC -7%, ZUMZ -5%, CHPT -5%, GWRE -5%, APP -4% of note.
  • News After The Close:
    • Stocks making the biggest moves after hours: LULU, MDB, FIVE, CHPT, AVGO, PD, ASAN, IOT, S (CNBC)
    • Apple (AAPL) Customers Say It’s Hard to Get Money Out of Goldman Sachs (GS) Savings Accounts. (WSJ)
    • Airbnb (ABNB) Fights New NYC Short-Term Rental Requirements. (WSJ)
    • Trian Co-Founder Ed Garden Steps Down, Nelson Peltz Reshuffles Top Ranks at Activist Firm. (WSJ)
    • Broadcom (AVGO) stock shows volatility as analysts question AI’s more than 25% boost to chip revenue. (MarketWatch)
    • Lululemon (LULU) shares surge after reporting 24% sales growth, raising full-year guidance. (CNBC)
    • Five Below (FIVE) tweaks full-year forecasts, and shares rally. (MarketWatch)
    • MongoDB’s (MDB) blowout earnings and forecast beat sends stock soaring. (MarketWatch)
    • Raytheon Technologies (RTX) awarded a $621.4 million US Missile Defense Agency contract.
    • Boeing (BA) awarded a $200 million modification to a previously awarded US Navy contract.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Acadia Healthcare (ACHC) appoints Heather Dixon as CFO.
    • AlTi Global (ALTI) Announces CFO Transition.
    • Advance Auto (AAP) files to delay its 10-Q.
    • Cyclerion (CYCN) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
    • FlexShopper, Inc. (FPAY) Announces regained compliance with Nasdaq’s Minimum Bid Price Requirement.
    • Kopin (KOPN) appoints James Brewington as Chairman.
    • Medtronic (MDT) appoints Ken Washington as CTO; joins from Amazon (AMZN) where he served as VP and GM of Consumer Robotics.
  • Buyback Announcements or News:
    • Healthcare Realty Trust (HR) Announces Stock Repurchase Authorization.
    • Ready Capital Corporation (RC) Announces New Share Repurchase Program up to $100 million.
  • Stock Splits or News:
    • Wheels Up (UP) Announces Reverse Stock Split.
  • Dividends Announcements or News: None of note.

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

S&P 500 +, Dow Jones +,  NASDAQ +, and Russell 2000 +. (as of 7:57 a.m. EDT).  Asia and Europe are higher. VIX Futures are at 17.30 from 18.60 from  yesterday.  Gold, Silver and Copper higher from yesterday. WTI Crude Oil and Brent Crude Oil higher with Natural Gas higher as well. US 10-year Treasury sees yields at 3.614% from 3.662% yesterday. The U.S. Dollar is lower versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $27,092 from $26,885 yesterday, higher by 0.88%.

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

  • Daily Positive Sectors: Basic Materials, Energy, Consumer Cyclical, Financial, Industrial, Communication Services of note.
  • Daily Negative Sectors: Utilities of note.
  • One Month Winners: Technology, Communication Services, Consumer Cyclical 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, Communication Services, Industrials of note.
  • Year to Date Winners:  Technology, Communication Services, Consumer Cyclical of note.

Major U.S. indexes jumped on the first trading day of June as investors cheered progress toward a deal to avert a government default.   The tech-heavy Nasdaq Composite led the way, adding 1.3% and building on strong gains from May. The S&P 500 added 1%. The Dow Jones Industrial Average added 153 points, or 0.5%.  Thursday’s trading activity underscored a continuing divergence: The tech-heavy Nasdaq outperformed the Dow by 0.81 percentage points after beating the blue-chip index in May by its widest monthly margin since October 2001.  (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: None of note.
  • Monday 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.


  • Positive Guidance: MDB, LULUZS, ASAN, AVGO of note.
  • Negative Guidance: MO, FIVE, CHPT, S, GWRE, ZUMZ of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: MDB +27%, IOT +15%, LULU +14%, NX +9%, SSYS +8%, FIVE +5%, HR +4% of note.
  • Gap Down: S -37%, PD -13%, GWRE -7%, ESTC -6%, ZUMZ -5% of note.

Insider ActionZD sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers.

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

  • 5 Things You Need to Know to Start Your Day. (Bloomberg
  • 5 Things to Know Before The Market Opens Friday. (CNBC)
  • Bloomberg Lead Story: US Futures Gain Ahead of Jobs Data; Dollar Dips:Market Wrap.  (Bloomberg)
  • Bloomberg  Most Shared Story: Americans Cash In On A Pickleball Obsession. (Bloomberg)
  • Debt Limit Deal clears Congress, Ending Threat of US Default.  (Bloomberg)
  • JP Morgan CEO Jamie Dimon plans to visit Taiwan today. (Bloomberg)
  • Here is what to look for in the Friday Job’s Report. (CNBC)
  • OPEC+ prepares for weekend meeting after Saudis warn speculators to “watch out”. (CNBC)

Moving Average Update:

  • Score returns to 71% from 60%.


  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing; The Vice President attends, 1:45 p.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 2:00 p.m. EDT
    • The President addresses the nation on averting default and the Bipartisan Budget Agreement, 7:00 p.m. EDT
    • The President departs the White House en route to Marine Barracks Washington, Washington, D.C., 8:10 p.m. EDT
    • The President attends the Friday Evening Parade at Marine Barracks Washington, Washington, D.C., 8:45 p.m. EDT
    • The President arrives at the White House, 10:45 p.m. EDT


  • May Nonfarm Payrolls are due out at 8:30 a.m. EDT and is expected to fall to 190,000 from 253,000.
  • The May Unemployment Rate is due out at the same time and expected to come in at 3.5% from 3.4%.
  • Baker Hughes Rig Count 1:00 p.m. EDT

Federal Reserve / Treasury Speakers:  None of note.

M&A Activity:

  • Stratasys (SSYS) Announces Receipt of Unsolicited Proposal from 3D Systems (DDD).

Meeting & Conferences of Note:

  • Sellside Conferences: None of note.
      • Previously posted and ongoing conferences:
        • Alliance Bernstein Strategic Decisions Conf (05/31/23-06/02/23)
        • Bank of America Securities Emerging Markets Debt and Equity Conf (05/30/23-06/02/23)

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:

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