QPI Morning Note -8/21/24: Stocks Rebound. Treasury Auction at 1:00 p.m. EDT and FOMC Minutes at 2:00 p.m. EDT.
Overnight Summary: The S&P 500 closed Tuesday lower by -0.20% at 5597.12 from Monday higher by 0.97% at 5608.25. The overnight high was hit at 5,630.75 at 1:00 a.m. EDT and the low was hit at 5617.75 at 6:15 p.m. EDT. The overnight range is 13 points. The current price is 5629 at 7:00 a.m. EDT higher by +9.25 points.
Important Read of the Morning:
Executive Summary: The Market Gods rested yesterday as indexes were lower. Now nine up days to two down days over the last 11 trading days. JP Morgan’s Trading Desk noted this morning that this is the first time since November of 2020 that the S&P 500 lost at least -6% over 10 days and then turned around and rose 8% over the next 10 days. Six months later after this happens on average the S&P 500 is 20% higher and a year out 25% higher.
20-Year Bond Auction at 1:00 p.m. EDT.
FOMC Minutes at 2:00 p.m. EDT.
Earnings Out After The Close:
Beats: TOL +0.29, KEYS +0.22, LZB +0.02, ALC +0.01 of note.
Flat:
Misses: ZTO -0.08, COTY -0.08 of note.
Capital Raises:
IPOs For The Week: IBG, PMAX, SKK, TDTH, YXT
New IPOs/SPACs launched/News:
IPOs Filed/Priced:
Secondaries Filed or Priced:
FWONK files for 10,650,000 shares of common stock offering
LRHC: Form S-1.. UP TO 3,051,336 SHARES OF COMMON STOCK
MSGM: FORM S-1 – 949,310 Shares Class A common stock
XAIR: Form S-3.. 1,724,019 Shares of Common Stock
Notes Priced:
KR Prices $10.5 Billion of Senior Notes
STT – Issuance of $1 Billion of Senior Debt
Direct Offering:
Exchangeable Subordinate Voting Shares:
Selling Shareholders of note:
DEC files for 2,249,650 shares of common stock by selling shareholder
Debt/Credit Filing and Notes:
Mixed Shelf Offerings:
SPGC: FORM S-3 – $25,000,000 Mixed Shelf Offering
PIPE:
Convertible Offering & Notes Filed:
Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
Biggest Movers Up & Down After The Close:
Movers Up: BBAI +28.80%, KEYS +10.4%, IMMR +2.7%, MRAM +2.2%
Movers Down: PAGS -4.1%, JKHY -4%, LZB -3.7%, DDD -3.6%, ALC -3.2%, FWONK -2.6%, LPSN -2.5%
News After The Close :
DRS awarded production order for $52 million was made under the current Family of Weapon Sights–Sniper (FWS-S) IDIQ contract
PSN to serve as lead designer on Honolulu rail project with a project value of $1.66 bln
MCHP detected potentially suspicious activity involving its IT systems; determines that unauthorized party disrupted use of certain servers and some business operations
AGYS announces strategic acquisition of Book4Time, a spa management SaaS solution leader for ~$150 mln
H announces planned acquisition of the brands and most of the affiliates of Standard International
OSK awarded $1.54 bln U.S. Army contract
SNX along with two other companies, awarded $848 mln U.S. Navy contract
10-Q Delays
Buybacks or Repurchases: Buybacks should be slow as most companies are in a blackout period as earnings season kicks into gear.
Exchange/Listing/Company Reorg and Personnel News:
Dividends Announcements or News:
Stocks Ex Div Today: EQIX TGT MPC AFL ADM OWL MRO WBA HAS PRI MKTX
Stocks Ex Div Tomorrow: AMAT MCHP DFS KSPI SBAC WWD LFUS WD ENR
COKE increases quarterly dividend to $2.50/share, up from $0.50/share; approves $1.0 bln share repurchase program
PINE increases its quarterly dividend by 1.8% to $0.28/share
What’s Happening This Morning: Futures S&P 500 +10 NASDAQ 100 +30 Dow Jones +72 Russell 2000 +10.91. Asia is higher ex Japan while Europe is higher this morning. VIX Futures are at 15.95 from 15.85 yesterday while Bonds are at 3.814% from 3.871% on the 10-Year. Crude Oil and Brent higher with Natural Gas higher for a second day in a row. Gold lower with Silver and Copper higher. The U.S. Dollar is higher versus the Euro, lower versus the Pound and higher against the Yen. Bitcoin is at $59,305 from $60,526 lower by -0.25% this morning.
Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):
Daily Positive Sectors: Higher led by Consumer Defensive and Healthcare of note.
Daily Negative Sectors: Energy, Consumer Cyclical, Financial, Technology and Materials of note.
One Month Winners: Real Estate, Utilities, Healthcare and Consumer Defensive of note.
Three Month Winners: Technology, Real Estate, Healthcare, Consumer Defensive, Financials and Utilities of note.
Six Month Winners: Utilities, Technology, Communication Services, Financials, Real Estate and Consumer Defensive of note.
Twelve Month Winners: Technology, Communication Services, Financials, Utilities,
Industrialsand Healthcare note.Year to Date Winners: Technology, Communication Services, Utilities, Financials, Consumer Defensive and Healthcare of note.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
Wednesday After the Close:
Thursday Before The Open:
Earnings of Note This Morning:
Beats: ZK +0.64, TGT +0.39, M +0.23, DY +0.20, ADI +0.07, TJX +0.04
Flat:
Misses:
Still to Report: GDS, TJX
Company Earnings Guidance:
Positive Guidance: of note.
Negative or Mixed Guidance: of note.
Advance/Decline Weekly Update With Both Daily and Weekly Stats: Some deterioration yesterday.
Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):
Gap Up: SDIG +58%, BBAI +30.1%, IMMR +15.3%, TGT +14.5%, KEYS +11.8%, ZK +6.3%, VGR +6.2%, VRRM +5%, ALTR +3%, ZTO +3%, DEC +2.8%, MRAM +2.2%, HCM +2.1%, PRIM +2%
Gap Down: JD -6.7%, BITF -6.4%, DDD -4.8%, LZB -3.4%, FWONK -2.8%
Insider Action: HR sees Insider buying with dumb short selling. APEI PSNL 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.
Bloomberg Lead Story: Obamas Fire Up Democrats But Warn of Tough Race For Harris. (Bloomberg)
Pre-Market Movers TGT JD M TXN GLW TOL COTY (CNBC)
5 Things to Know Before The Market Opens. (CNBC)
Markets Wrap: Stocks mixed as traders await data for clues. (Bloomberg)
Target (TGT) swings to growth as it cuts prices. (Bloomberg)
Steel industry sees supply glut and weak demand. (CNBC)
Ford (F) delays new EV plant and cancels three row SUV EV. (CNBC)
Macy’s (M) lowers guidance.
The Big Take: Ports become pawns in global trade. (Podcast)
NYT The Daily: Inside Ukraine’s invasion of Russia. (Podcast)
Marketplace: New online age verification tools. (Podcast)
Wealthion: Bubble in private equity. (Podcast)
Economic:
Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT.
July FOMC Minutes are due out at 2:00 p.m. EDT.
Geopolitical:
President Biden receives the Daily Briefing today at 1:00 p.m. EDT.
Federal Reserve Speakers
None of note.
M&A Activity and News:
None of note.
Moving Averages On Major Indexes: Remain at 100% of the moving averages being positive.
Meeting & Conferences of Note:
Sellside Conferences:
Needham Virtual Semiconductor and SemiCap 1×1 Conference
Piper Sandler MedTech and Diagnostics California Bus Tour
Seaport Research Partners Annual Summer Investor Conference
Truist Energy Event
Wells Fargo FinTech Information & Business Services Forum
Fireside Chat: None of note.
Top Shareholder Meetings: BJDX, DOUG, HELE, HYZN, WRLD
Investor/Analyst Day/Calls: ORLY
Update: None of note.
R&D Day: None of note.
FDA Presentation:
Company Event:
Industry Meetings or Events:
American Chemical Society Fall
Centene Supplier Summit
Devcom Developer Conference
Emerging Growth Conference
EnerCom Denver – The Energy Investment Conference
Gamescom Conferences
International Meeting on Information Display (IMID 2024)
RE/MAX Broker Owner Conference
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 QPI or its employees.
Upgrades: CRC WWD TXN NTST EPR CCSI BV
Downgrades: SON SBUX CPAC CCOI