QPI Daily Note - 04/02/24: Markets Start the Day in the Red as Health Insurers Slide
Overnight Summary: The SP 500 closed Monday lower by -0.60% at 5243.77 from Thursday higher by 0.11% at 5254.35. Markets were closed on Friday. The overnight high was hit at 5,295.50 at the open while the overnight low was hit at 5276.75 at 7:23 a.m. EDT. The range overnight is 18 points as of 7:45 a.m. EDT. Currently, the S&P 500 is lower by 16 points 7:36 a.m. EDT.
Executive Summary:
February Factory Orders are due out at 10:00 a.m. EDT and are expected to improve to 1.0% from -3.60%.
Federal Reserve Board of Governors Michelle Bowman 10:10 a.m. EDT
Federal Reserve New York President John Williams 12:00 p.m. EDT
Federal Reserve Cleveland President Loretta Mester 12:05 p.m. EDT
Federal Reserve San Francisco President Mary Daly 1:30 p.m. EDT
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.
Earnings Out After The Close:
Beats: PVH +0.19 of note.
Capital Raises:
IPOs Priced or News:
Rubrik (RBRK) Files Registration Statement for Proposed Initial Public Offering.
U-BX Technology Ltd. (UBXG) Announces Closing of $10 Million Initial Public Offering.
UL Solutions Inc. (ULS) announces launch of 28.0 mln share IPO with an expected price range of $26-$29 per share; shares to trade under ticker "ULS" on the NYSE.
New SPACs launched/News: None of note.
Secondaries Priced:
GRTS: Prices $32.5 million offering.
STRO: Prices an underwritten offering of 14,478,764 shares of its common stock at a price of $5.18 per share.
Notes Priced of note: None of note.
Common Stock filings/Notes:
GRTS: Announces proposed public offering of common stock.
QBTS: Filed Form S-3.. 60,159,214 Common Shares - Up to 35,000,000 Common Shares
Direct Offering:
RDHL: Announces $1.25 Million Registered Direct Offering at a Premium to Market Price.
SNDA: Entered into $75 million At-The-Market Issuance Sales Agreement.
Selling Shareholders of note: None of note.
Private Placement of Public Entity (PIPE):
APAC: Filed Form F-1.. Up to 22,825,115 Ordinary Shares Up to 7,700,000 Private Warrants.
Mixed Shelf Offerings:
ACR: Files $700 million mixed shelf securities offering; also files for 671,110 shares of common stock by selling shareholder.
APLM: Filed Form F-3.. $200,000,000 Mixed Shelf.
DHR: Files mixed shelf securities offering.
ICCC: Filed Form S-3.. $20,000,000 Mixed Shelf.
VNO: Files mixed shelf securities offering.
Debt/Credit Filing and Notes: None of note.
Tender Offer:
AMD Recommends Rejection of “Mini-Tender” Offer from Tutanota LLC.
MTDR: Announces Expiration and Results of Cash Tender Offer for Any and All of Its Outstanding 5.875% Senior Notes Due 2026.
Convertible Offering & Notes Filed:
CPMD: Pays Off Convertible Notes.
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 Movers:
LIFW: +71% SC 13G Filed by Palantir
PIK: +70% Kidpik and Nina Footwear Announce Entry Into Definitive Merger Agreement
OPGN: +18% Filed Form SC 13D by DAVID E. LAZAR
VTSI: +16% Earnings
ANGO: +7% Settlement of All Patent Litigation with C.R. Bard, Inc.
GOEV: -31% Earnings
MVST: -29% Earnings
PVH: -21% Earnings
ASTS: -15% Provides Business Update and Fourth Quarter and Full Year 2023 Results
HUM: -10% CMS finalizes payment update for 2025
CVS: -6% CMS finalizes payment update for 2025
UNH: -5% CMS finalizes payment update for 2025
News Items After the Close:
Shares of Tommy Hilfiger maker PVH drop as execs warn of ‘tougher macroeconomic backdrop’. (MarketWatch)
PVH: Revenue: Projected to decrease 6% to 7% (decrease 6% to 7% on a constant currency basis) as compared to 2023, inclusive of a 2% reduction resulting from the sale of the Heritage Brands women’s intimates business in November 2023 and a 1% reduction from the 53rd week in 2023.
Chipotle (CMG) CFO explains why the chain split its stock for the first time. (CNBC)
Railroad CSX adding new freight route on Tuesday to avoid Port of Baltimore after bridge collapse. (CNBC)
Leidos (LDOS) awarded $631 million U.S. Army contract.
Boeing (BA) secures $116.7M Army contract.
The U.S. Centers for Medicare & Medicaid Services (CMS) expects payments from the government to the Medicare Advantage program to "INCREASE by an average of 3.7%" (unchanged from the January proposal), amounting to over $16 billion from 2024 to 2025. In 2025, the federal government is projected to pay between $500 billion and $600 billion in program payments to private health plans, according to CMS. However, the final rate notice is somewhat "WEAKER than expected" as it does not appear materially different from the initial rate proposed on January 31.
Exchange/Listing/Company Reorg and Personnel News:
Canoo (GOEV) identifies substantial doubt about its ability to continue as a going concern per 10-K filing. (Filing)
Community West Bancshares (CWBC) files to delay 10-K.
GE: Vernova(GEV) Completes Spin-Off and Begins Trading on the New York Stock Exchange.
Genius Sports (GENI) Announces Resignation of a Member of the Board of Directors.
MSG Sports (MSGS) COO David Hopkinson departed the company, effective today.
Terran Orbital (LLAP) regains compliance with NYSE continued listing standards.
Timken (TKR) CEO Richard G. Kyle to retire; Tarak Mehta named successor.
TRVG: Robin Harries assumes CFO role at trivago.
Veeva Systems (VEEV) CFO Brent Bowman departing, effective today; Board member Tim Cabral to serve as interim CFO.
Buyback Announcements or News:
PVH approves $2 billion increase to its stock repurchase authorization.
UBS AG (UBS) announces launch of new share repurchase program of up to USD billion.
Stock Splits or News:
Gladstone Capital (GLAD) Announces 1-for-2 Reverse Stock Split.
Reverse Split stocks today AWIN 1/100 XXII 1/16 DCFC 1/200 EMKR 1/10 NRXP 1/10.
Dividends Announcements or News:
Bank OZK (OZK) announces $0.01 per share increase to quarterly cash dividend to $0.39 per share.
UMH Properties (UMH) increases quarterly cash dividend 4.9% to $0.215 per share from $0.205 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -25, Dow Jones -238, NASDAQ -90, Russell -13. (as of 7:56 a.m. EST). Asia is higher with the Hang Seng up 2.36% while Europe is mixed this morning. VIX Futures are at 14.07. Gold, Silver and Copper higher this morning. WTI Crude Oil and Brent Crude Oil are higher with Natural Gas lower by 1.47%. US 10-year Treasury sees its yield at 4.361% up 0.032. The U.S. Dollar is unchanged versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $65,402 lower by -5% this morning.
Sector Action –
Daily Positive Sectors: Communication Services, Energy of note.
Daily Negative Sectors: Real Estate, Healthcare, Financial, Industrials, Consumer Defensive, Utilities of note.
Stocks fell broadly Monday after new economic data prompted investors to dial back bets on interest-rate cuts this year. Coming off its best first quarter since 2019, the S&P 500 started the trading day modestly in the green. But it reversed course after the latest Institute for Supply Management report suggested manufacturing activity expanded in March for the first time since September 2022. The broad market index finished down 0.2% and the Dow Jones Industrial Average dropped 0.6% after both closed out last week at records. Strength in large technology stocks helped the Nasdaq Composite eke out a 0.1% gain. Investors have been counting on the Federal Reserve to cut interest rates this year to reduce the risk of an economic slowdown. Some have worried at times that strong data could keep the central bank from reducing rates as much as they would like. (WSJ - edited by QPI)
Upcoming Earnings Of Note:
Tuesday After the Close:
Wednesday Before the Open:
Earnings of Note This Morning:
Still to Report: PAYX of note.
Company Earnings Guidance:
Positive Guidance: MEG of note.
Negative Guidance: PVH of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
Gap Up: PIK +69%, ANGO +7%, CGC +7%, ACB +4%, RCKT +4% of note.
Gap Down: ACOR -60%, GRTS -33%, GOEV -24%, PVH -22%, CVS -6%, OCGN -6%, CIFR -5%, ASTS -5%, ELV -4%, UNH -4% of note.
Insider Action: No stock see Insider buying with dumb short selling. No stock see 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.
5 Things To Know Before the Stock Market Opens Today. (CNBC)
What You Need To Know To Start Your Day. (Bloomberg)
Bloomberg Lead Story: Iran Vows to Punish Israel Over Deadly Syria Embassy Strike (Bloomberg)
Israeli airstrike in Syria killed several senior Iranian commanders. (NYT)
Disney (DIS) Winning Proxy Fight Against Trian With More Than Half of Votes Cast. (WSJ)
The Disarray Inside Boeing’s (BA) 737 Factory Before the Door Plug Blowout. (WSJ)
Regulator Probes BlackRock (BLK) and Vanguard Over Huge Stakes in U.S. Banks. (WSJ)
Bloomberg: The Big Take: A Million Simulations, One Verdict for US Economy: Debt Danger Ahead (Podcast)
NYT The Daily: Kids are Missing School at an Alarming Rate (Podcast)
Marketplace: Ultimately, the joke’s on Gmail rivals (Podcast)
Moving Average Update: Score back up to 100% from 94%.
Geopolitical:
President’s Public Schedule:
The President receives the President’s Daily Brief, 10:00 a.m. EDT
Press Briefing by Press Secretary Karine Jean-Pierre, 1:30 p.m. EDT
Economic:
Redbook Sales 8:55 a.m. EDT
February Factory Orders are due out at 10:00 a.m. EDT and are expected to improve to 1.0% from -3.60%.
JOLTS 10:00 a.m. EDT
API Crude Oil Data 4:30 p.m. EDT
Federal Reserve / Treasury Speakers:
Federal Reserve Board of Governors Michelle Bowman 10:10 a.m. EDT
Federal Reserve New York President John Williams 12:00 p.m. EDT
Federal Reserve Cleveland President Loretta Mester 12:05 p.m. EDT
Federal Reserve San Francisco President Mary Daly 1:30 p.m. EDT
M&A Activity and News:
Lincoln Electric (LECO) has acquired RedViking, a privately held automation system integrator with annual revenue of approximately $70 million.
Kidpik (PIK) and Nina Footwear Announce Entry Into Definitive Merger Agreement.
Meeting & Conferences of Note:
Sellside Conferences:
BBI Brazil Investment Forum
Cantor Virtual Muscular Dystrophy Symposium
Deutsche Bank Inaugural Healthcare REIT Summit
J. P. Morgan Retail Round Up
Raymond James Dividend Growth Conference
RBC Capital Markets' Global Engineering Deep Dive Series
Top Shareholder Meetings: CIGI
Investor/Analyst Day/Calls: ADPT, INTC, VNDA, VSH
Industry Meetings:
Army Materiel Command Modernization Symposium
Women in Data Science Conference
World Vaccine Congress.
Previously posted and ongoing conferences:
International Conference on Display Technology (ICDT) 2024
Spinal Cord Injury Investor Symposium
Top Tier Sell-side Upgrades & Downgrades: