The Daily Briefing For October 2nd: Washington Avoids Shutdown as Republicans and Democrats Work Together, Stocks Higher But Off Overnight Highs.

by Geoff Garbacz | 10/02/2023 8:37 AM

Rebel Yell Morning Market Report

Your Daily Financial Market Briefing - Giving You An Investing Edge Before Each Trading Day Begins

The Daily Briefing For October 2nd: Washington Avoids Shutdown as Republicans and Democrats Work Together, Stocks Higher But Off Overnight Highs.

Overnight SummaryThe S&P 500 closed Friday lower by -0.27% at 4288.05 from Thursday higher by 0.59% at 4299.70. The overnight high was hit at 4355.50 at 3:30 a.m. EDT while the low was hit at 4323.75 at 6:50 a.m. EDT. The range overnight was 32 points. The 10-day average of the overnight range is at 26.80 from 24.50 down from a peak of 31.50 on 8/15.  The average for May-August average was 21.10 from 18.81 in May through July and the August average was 26.21. Currently, the S&P 500 is higher by +0.50 points which is +0.01% at  7:10 a.m. EDT.

Earnings Out After The Close: 

  • Beats: None of note.
  • Flat: None of note.
  • Misses: None of note.

Capital Raises:

  • IPOs Priced or News:
  • New SPACs launched/News:
    • Digital World Acquisition Corp. (DWAC) and Trump Media & Technology Group Corp. Reaffirm Commitment to Merger.
    • Vision Sensing Acquisition Corp. (VSAC) Announces Intention to Extend Period to Consummate Initial Business Combination to November 3, 2023.
  • Secondaries Priced: None of note.
  • Notes Priced of note: None of note.
  • Common Stock filings/Notes:
    • CZOO: Filed Form F-1.. Warrants and Stocks.
    • IGC: Filed Form S-3.. 10,000,000 Shares of Common Stock.
    • MYNA: Filed Form F-3.. 20,000,000 American Depositary Shares Representing 5,000,000 Ordinary Shares Rights to Subscribe for 20,000,000 American Depositary Shares.
    • ROIV: Filed Form S-3.. Up to $1,500,000,000.
    • TCBP: Filed Form F-3.. UP TO 12,942,813 American Depositary Shares Representing 12,942,813 Ordinary Shares.
    • TRDA: Filed Form 8-K.. entered into a sales agreement up to $150.0 million.
    • VLCN: Filed Form S-1.. Share offering.
  • Direct Offering: None of note.
  • Selling Shareholders of note:
    • CCG: Filed Form F-1.. Up To 13,663,325 Class A Ordinary Shares Issuable Upon The Exercise Of Warrants Up To 59,328,073 Class A Ordinary Shares And 2,860,561 Warrants To Purchase Class A Ordinary Shares Offered By Selling Securityholders.
    • NYAX: Filed Form F-3.. $70,000,000 of Ordinary Shares, Warrants, Rights, Debt Securities and/or Units Offered by the Company and Up to 1,294,219 Ordinary Shares Offered by Selling Shareholders.
    • RIG: Filed Form S-3ASR.. 9,891,980 share common stock offering by selling shareholder.
    • WULF: Files for 44,688,114 share common stock offering by selling shareholders.
  • Private Placement of Public Entity (PIPE): None of note.
  • Mixed Shelf Offerings: None of note.
  • Debt/Credit Filing and Notes:
    • MFIN: Announces Completion of Private Placement of $39.0 Million of Senior Notes.
    • VLRS: Successfully completes Ps. $1.5 billion Asset-Backed Trust Notes Offering.
  • Tender Offer: None of note.
  • Convertible Offering & Notes Filed:
    • FSR: Announces Successful Closing of $170 Million Additional Convertible Notes Offering; Now Able to Offer Up to $623.3 Million Additional 0% Convertible Notes For Up to $550 Million in Gross Proceeds As a Result of Purchase Agreement Amendment.
    • HLX: Announces Its 6.75% Convertible Senior Notes Due 2026 Will Become Convertible.
    • TRIN: Announces Adjustment to Conversion Rate of its 6.00% Convertible Notes due 2025.

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 Week:

  • Weekly Wrap Up: Best and Worst performing large cap stocks:
    • Trading Up: ICPT 77.1%, CHS 69.6%, BHVN 52.5%, GRTS 37.6%, GRPN 32.2%, RYAM 27.5%, TAL 25.4%, CDXS 19.2%, JBL 18.1%, KPTI 17.0%, UPLD 15.7%, FTCH 15.7%, GTHX 15.5%, GH 14.7%, KOS 14.7%, MTRX 14.6%, AAOI 14.4%.
    • Trading Down: NEP -39.6%, UNFI -25.3%, GUT -18.7%, ATRA -17.9%, EBIX -16.9%, CHRS -15.9%, NEE -15.5%, BEP -14.9%, TPIC -14.4%, AQN -14.3%, ALLO -14.0%, CORT -13.7%, APLS -13.1%, LPSN -12.6%, RVNC -12.4%, HMY -12.2%.
  • News Items After the Close:
    • JetBlue (JBLU) raises flight attendant pay, union agrees to support merger with Spirit. (CNBC)
    • Rivian Automotive (RIVN) discloses it has agreed to build an EV manufacturing plant in Georgia.
    • Robinhood Markets (HOOD) expects to accrue $100 mln expense related to these previously disclosed legal and regulatory matters.
    • Biogen (BIIB) gets FDA approval for biotech treatment similar to Roche’s Actemra. (MarketWatch)
    • BAE Systems (BAESY): GBP 3.95 billlion awarded for next phase of AUKUS submarine program.
    • Lockheed Martin’s (LMT) (MarketWatch)
      • Awarded a $1.2 billion modification to previously awarded US Navy contract for Trident II missile production.
      • Awarded a $746 million US Navy contract relating to Switzerland’s F-35 Joint Strike Fighter program.
      • Sikorsky Aircraft unit awarded a $650 million US Air Force contract for the HH-60W Combat Rescue Helicopter.
    • Northrop Grumman (NOC) awarded a $150 million modification to US Navy contract.
  • News Items Over the Weekend:
    • The Score – Stocks That Defined the Week: F, AMZN, TGT, PTON, GME  (WSJ)
    • America’s Debt Problem Is Too Big for the Bond Vigilantes. (WSJ)
    • U.S. stock-market seasonality suggests a potential rally in the fourth quarter. Why this time might be different. (MarketWatch)
    • The Senate has passed a short-term bill to keep the government funded into November.
    • The fact that the US avoided a shutdown “makes it more likely that Fed officials proceed with a 25bp hike at the Nov 1st meeting, which remains our base case. We had been of the view that the consensus was overstating the likelihood of a prolonged shutdown:” (Citi’s Hollenhorst)
    • JPM Desk “.. Tactically, we resume our bullish stance on Equities given (i) limited upsides for oil to sustain above $100; (ii) sharp move higher in yields could be overdone by technical factors; (iii) an improvement in economic data and earnings may provide support for stocks; and (v) positive shift in HF flow and persistent shorts addition may suggest the risk of a reversal.” (Carl Q)
    • The week starts with the three price moves that neither the US economy (particularly, growth and financial stability) nor the markets enjoy: Higher yields; Higher oil prices; and a Stronger dollar. (EL-ERIAN)
    • Barron’s:
      • Positive View: OXY, MYRG, FLR, MTZ, ACM, META of note.
      • Cautious View: F, GM, TSLA of note.
      • Mixed View: None of note.
  • Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week: None of note.
  • Exchange/Listing/Company Reorg and Personnel News:
    • Cano Health (CANO) Announces Change in Chief Financial Officer Role.
    • Guess? (GES) co-founder Maurice Marciano is retiring from Board of Directors effective immediately.
    • Smile Direct Club (SDC) has filed for bankruptcy. (MarketWatch)
    • Urban One, Inc. (UONE) Receives NASDAQ Staff Determination of Non-Compliance with Listing Rule 5250(c)(1).
    • ZoomInfo (ZI) COO will transition into the role of EVP, International Expansion.
  • Buyback Announcements or News:
    • Banco Bilbao Vizcaya Argentaria (BBVA) announces EUR 1.0 billion share buyback.
  • Stock Splits or News:
    • Trading Reverse Split: NCTY, EBET
    • a.k.a. Brands Holding Corp. (AKA) Announces Effectiveness of Previously Announced Reverse Stock Split.
    • ARMOUR Residential REIT, Inc. (ARR) Announces Effectiveness of One-For-Five Reverse Stock Split.
    • Borqs Technologies (BRQS) Announces Reverse Stock Split.
    • Skillsoft (SKIL) Completes Reverse Stock Split.
  • Dividends Announcements or News:
    • Global Net Lease (GNL) declares dividend of $0.354 per share.
  • Insider Sales Of Note: 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 7:59 a.m. EDT).  Asia is lower ex South Korea while Europe is lower this morning. VIX Futures are at 17.60 from 18.05 Friday.  Gold, Silver and Copper are lower this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas lower. US 10-year Treasury sees yields at 4.629% from 4.647% Friday. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the YenBitcoin is at 28,358 from $26,486 Friday, higher by +4.60%.

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

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

Stocks closed mostly lower on Friday, with the S&P 500 cementing its biggest drop in a month since December, as a surge in bond yields knocked the wind out of this year’s rally in equities. The Dow Jones Industrial Average fell about 157 points, or 0.5%, ending near 33,508. The S&P 500 index shed 0.3% and the Nasdaq Composite index gained 0.1%. September was the worst month for the Dow since February, with its -3.5% loss, while the S&P 500 shed -4.9% and the Nasdaq lost -5.8%, marking their worst months since December 2022. Yearly core inflation edged higher in August, according to Friday’s release of the latest PCE price index. (WSJ – edited by QPI)


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

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


  • Positive Guidance: None of note.
  • Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

  • Gap Up: GNL +4% of note.
  • Gap Down: None of note.

Insider Action: No stock 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 Stock Market Opens. (CNBC)
  • Stocks Making the Biggest Moves Before The Open:  (CNBC)
  • Bloomberg Lead Story:  Why A U.S. Recession is Still Likely and Coming Soon. (Bloomberg)
  • Bloomberg Second Most Shared Story: Severe Crash is Coming For US Office Properties, Investors Say. (Bloomberg)
  • Chinese demand for oil and copper is booming says Goldman Sachs. (CNBC)
  • Birkenstock attracts Norwegian Wealth Fund to $1.6 billion IPO. (Bloomberg)
  • Bond yields rise as traders look ahead to Powell: Market Wrap. (Bloomberg)
  • McCarthy shutdown turnabout came with phone flurry, blame game. (Bloomberg)
  • Rep Matt Gaetz (R-FL) says he will seek to unseat House Speaker McCarthy this week. (CNN)
  • California Governor Newsom names Laphonza Butler to fill Senator Dianne Feinstein (D-CA) even though she lives in Maryland. (CNBC)
  • NPR Morning Report Marketplace: Plunging U.S. crop exports explained.  (Podcast)
  • NY Times The Daily: Amazon’s most beloved feature may turn out to be illegal. (Podcast)
  • BBC Global News: US Republicans face a mutiny in Congress. (Podcast
  • Bloomberg:  Seema Shah warns a US recession is still coming. (Podcast)
  • Wealthion:  A market bounce then look out below? (Podcast)

Moving Average Update:

  • Score remains at 22%.


  • President’s Public Schedule:
    • The President receives the Presidential Daily Briefing; The Vice President attends, 11:15 a.m. EDT
    • Press Briefing by Press Secretary Karine Jean-Pierre, 12:30 p.m. EDT
    • The President delivers remarks to celebrate the Americans with Disabilities Act ; The Vice President and The Second Gentleman attend​, 2:00 p.m. EDT
    • The President convenes his Cabinet to get an update on the progress we’re making on pressing priorities for the country including implementing the historic legislation he has signed into law, balancing the promise and peril of artificial intelligence, and taking action on gun violence; The Vice President participates, 4:30 p.m. EDT


  • PMI Manufacturing Final 9:45 a.m. EDT
  • September ISM Manufacturing Index is due out at 10:00 a.m. EDT and is expected to improve to 47.80% from 47.60%.
  • August Construction Spending is expected drop to 0.5% from 0.7%, 10:00 a.m. EDT

Federal Reserve / Treasury Speakers:  

  • Federal Reserve Chair Jerome Powell 10:00 a.m. EDT
  • Federal Reserve Vice Chair for Supervision Michael S. Barr 1: 00 p.m. EDT
  • Federal Reserve New York President John Williams 1:30 p.m. EDT
  • Federal Reserve Cleveland President Loretta Mester 7:30 p.m. EDT

M&A Activity and News: 

  • COHU acquires Equiptest Engineering for $20 million.

Meeting & Conferences of Note:

  • Sellside Conferences:
    • Chardan 7th Annual Genetic Medicines Conference 2023 (10/02/23-10/03/23)
    • Deutsche Bank Leveraged Finance Conference (10/02/23-10/04/23)
    • RBC Virtual CDMO Conference 2023 (10/02/23-10/03/23)
    • TD Cowen Annual Therapeutics Conference
    • UBS Mobility Virtual Conference (10/02/23-10/03/23)
      • Previously posted and ongoing conferences: None of note.
  • Top Shareholder Meetings: None of note.
  • Fireside Chat: None of note.
  • Investor/Analyst Day/Calls: OVID, SPIR, ZFOX
  • Update: None of note.
  • R&D Day:
  • Company Event: None of note.
  • Industry Meetings:

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 is 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:

Latest Reports

Stay Up to Date With The Latest
News & Updates

Join Our Newsletter


Rebel Yell Morning Market Report
Market Alerts
Offers from us
Offers from our trusted partners

Follow Us

Connect with us on social media

Facebook Twitter