QuantPartners: Morning Note - 04/17/23 $SPX

Earnings Season Hits Full Schedule This Week, Stocks Mixed

Overnight Summary: The S&P 500 closed Friday lower by -0.21% at 4137.64 from Thursday up 1.32% at 4146.22. The overnight high of 4176 was hit at 3:4 a.m. EDT. The low was hit at 4164 at 5:45 a.m. EDT, a range of ~13 points high to low which is well below the recent range of 45. At 7:20 a.m. EDT, the current price was 4168.75 which is 0.12% and 5 points.

Earnings Out After The Close: 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:

• New SPACs launched/News:

  • Graf Acquisition Corp. IV (GFOR): NKGen Biotech become publicly traded company via business combination with Graf Acquisition Corp. IV.

• Common Stock filings/Notes:

  • IFRX: Closing of $40 Million Public Offering of Ordinary Shares.

  • MRAI: Proposed Public Offering of Common Stock. (ThinkEquity bookmanager)

• Mixed Shelf Offerings:

  • APO: Filed Form S-3ASR.. Mixed Shelf.

  • GALT: Filed Form S-3 .. $100 Million Mixed Shelf.

  • PRPO: Filed Form S-3 .. $50 Million Mixed Shelf

  • RCEL: Filed Form S-3.. $200 Million Mixed Shelf

  • WPRT: Filed Form F-10 .. $200 Million Mixed Shelf

• Debt/Credit Filing and Notes:

  • SHFS: Resolves $68.6 Million in Debt Obligations.

• Convertible Offering & Notes Filed:

  • HOPE: Announces Notification to Holders of 2.00% Convertible Senior Notes of Their Contractual Put Right.

  • YY: Announces repurchase right notification for 0.750% convertible senior 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: BKD 42.5%, EBIX 36.7%, TRTN 34.7%, OMER 32.3%, STNE 31.9%, UBX 31.3%, TGTX 31.2%, ICPT 29.2%, ADAP 26.4%, CRBP 25.0%, PAGS 20.0%, GTLS 19.8%, HRTX 19.1%, GOL 18.6%, LPSN 18.3%.

  • Trading Down: UXIN -46.5%, TUP -36.7%, ADTN -30.7%, CTLT -28.7%, PLCE -18.5%, SPR -18.0%, RBBN -17.1%, TWOU -14.2%, SRPT -14.1%, CRUS -13.6%, ALLK -12.9%, INFY -11.9%.

• News Items After the Close:

  • Montana lawmakers vote to ban TikTok in US state. (WSJ)

  • Zoom Video (ZM) to acquire human-resources platform Workvivo for undisclosed sum. (MarketWatch)

  • Sega (SGAMY) Nears Deal for ‘Angry Birds’ Mobile Game Maker (ROVIO). (WSJ)

  • Federal Reserve Board announces its approval for UBS Group AG (UBS) to acquire the U.S. subsidiaries of Credit Suisse Group AG (CS) (Release)

• News Items Over the Weekend:

  • Stocks that Defined the Week: JPM, DAL, AMZN, PXD, TUP, ACI, LVMUY (WSJ)

  • The Week in Business: Moderating Inflation (NYT)

  • China Starts ‘Surgical’ Retaliation Against Foreign Companies After US-Led Tech Blockade - (FT)

  • Samsung Is Considering Removing Google (GOOG) As The Default Search Engine On Its Phones. It Is Looking To Make Microsoft's (MSFT) Bing The Default Search Engine Per. (NYT)

  • Saudi Arabia Transfers Nearly $78 Billion of Aramco Shares to Wealth Fund.  The second such transfer comes amid high oil prices and as the kingdom seeks to diversify its economy away from oil (WSJ)

  • The End of Faking It in Silicon Valley. Recent charges, convictions and sentences all indicate that the start-up world’s habit of playing fast and loose with the truth actually has consequences.  (NYT)

  •  Barron's:

    • Positive View: CRBG, EQH, GL, PRI, RGA, UNM, VOYA, GLD, CBSH, WBS, FIBK, COLB of note.

    • Cautious View: None of note.

    • Mixed View: None of note.

• Erlanger Type 1 Short Squeezes and Type 4 Long Squeezes reporting earnings this week:

• Exchange/Listing/Company Reorg and Personnel News:

  • AdvanSix (ASIX) Chair of the Board Michael Marberry to retire effective June 15; Todd Karran named as new Chair.

  • Amarin (AMRN) names Aaron Berg interim President & CEO.

  • F45 (FXLV) Receives NYSE Notice Regarding Delayed Form 10-K Filing.

  • Farmmi (FAMI) Receives NASDAQ Minimum Bid Price Requirement Extension.

  • Genesis Energy, L.P. (GEL) promotes Ryan Sims to President and Kristen Jesulaitis to CFO.

  • KAR Global (KAR) Hires Brad Lakhia as Chief Financial Officer.

  • Lifecore Biomedical, Inc. (LFCR) Receives Notice from Nasdaq Regarding Delayed Quarterly Report.

  • LivaNova (LIVN) CEO Damien McDonald resigns.

  • Ontrak (OTRK) Announces Receipt of Notice from Nasdaq Regarding Non-Compliance of its 9.50% Series A Cumulative Perpetual Preferred Stock with Minimum Bid Price Requirement.

  • Ouster (OUST) Receives Notice Regarding NYSE Continued Listing Standards.

  • PolyPid (PYPD) Announces Receipt of Nasdaq Notification of Minimum Stockholders’ Equity Non-Compliance.

  • Wheels Up (UP) Receives NYSE Continued Listing Standard Notice.

  • WW announces that CTO Michael Lysaght will step down.

• Buyback Announcements or News:

  • America Movil SA (AMX) approved buyback program fund for the April 2023 – April 2024 period of MXP $20,000,000,000.

  • CNH Industrial (CNHI): Periodic Report on a third $50 million tranche of $300 million Buyback Program.

  • Schwab (SCHW) Decided To Pause Active Buyback Program In Light Of "Regulatory Uncertainty.

• Stock Splits or News:

  • Guerrilla RF (GUER) Announces Reverse Stock Split in Preparation for a Proposed Uplisting to a National Exchange.

  • MEI Pharma (MEIP) Announces 1-for-20 Reverse Stock Split.

  • YCBD 1-for-45 reverse split.

• Dividends Announcements or News: 

  • AON announces 10% increase to its quarterly cash dividend to $0.615 per share.

  • Peabody (BTU) Announces Robust Shareholder Return Program.

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

S&P 500 +3, Dow Jones +45,  NASDAQ -4, and Russell 2000 +7. (as of 7:56 a.m. EDT).  Asia higher and Europe higher ex France. VIX Futures are at 20.52 from 20.86 yesterday.  Gold and Silver higher with Copper lower. WTI Crude Oil and Brent Crude Oil lower with Natural Gas higher. US 10-year Treasury sees yields at 3.54% from 3.458% Friday. The U.S. Dollar is higher versus the Euro, flay  versus the Pound and higher against the Yen. Bitcoin is at $29,793 from $30,785 on Friday, lower by -2.24%.

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

• Daily Positive Sectors: Financial, Communication Services of note.

• Daily Negative Sectors: Real Estate, Utilities, Basic Materials, Health care, Consumer Defensive, Technology of note.

• One Month Winners: Energy, Communication Services, Basic Materials, Healthcare, Utilities of note.

• Three Month Winners: Technology, Communication Services, Consumer Cyclical of note.

• Six Month Winners: Technology, Basic Materials, Communication Services of note.

• Twelve Month Winners: Energy, Industrials of note.

• Year to Date Winners: Communication Services, Technology, Consumer Cyclical of note.

U.S. stocks finished lower on Friday following hawkish comments from a top Federal Reserve official and downbeat retail sales data. Meanwhile, a spate of big-bank earnings came in better than expected, boosting some financial stocks before they faded. The S&P 500 fell by 8.70 points, or 0.2%, at 4,137.52. The Nasdaq Composite declined by 42.81 points, or 0.4%, to 12,123.47. The Dow Jones Industrial Average declined by 143.22 points, or 0.4%, to 33,886.47. All three of the main indexes logged their fourth weekly gain in five, with the S&P 500 rising 0.8%, Nasdaq gaining 0.3%, and the Dow up 1.2%, (MarketWatch - edited by QPI)

Click here for a video explanation of Erlanger Value Lines.

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

• Monday After the Close: 

• Tuesday Before the Open:

Earnings of Note This Morning:

• Beats: MTB +0.05, SCHW +0.03 of note.

• Misses: STT (0.12) of note.

Guidance:

• Positive Guidance: C, LIVN, AMRX, GTX of note.

• Negative Guidance: None of note.

Erlanger Research Advance/Decline Chart:

Gap Ups & Down In Early Pre-Market:

• Gap Up: RXDX +69%, AMRX +9%, MTB +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 & 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. (CNBC)

• 5 Things You Need to Know to Start Your Day. (Bloomberg) 

• Bloomberg Lead Story: First Republic Worked Hard to Woo Rich Clients. It Was The Banks Undoing. (Bloomberg)

• Bloomberg Most Read Story: Merck Moderna Vaccine Helps Keep Patients Free From Skin Cancer. (Bloomberg)

• Sweden's economic gloom goes from bad to worse as government predicts a steeper GDP contraction. (CNBC)

• Leaked documents show Taiwan is highly vulnerable to attacks from China. (The Washington Post)

• Fed Pricing, Earnings Uncertainty, Pressure Stocks: Market Wrap. (Bloomberg)

• Google (GOOGL) CEO said on 60Minutes that AI will impact every company. (CBS News)

• NASA's Webb Telescope captures new views of the universe. (CBS News)

• Banks are feeling pressure to pay depositors more interest. (WSJ)

• Florida Governor DeSantis plans new crackdown measures against Walt Disney (DIS). (NY Post)

Moving Average Update:

• Score settles in at 85% from 91%.

Geopolitical: 

• President’s Public Schedule:

  • The President receives the Presidential Daily Briefing Closed Press, 9:30 a.m. EDT

• House Speaker McCarthy is to deliver a speech at the NYSE today at 10:00 a.m. EDT.

Economic:

• Empire State Mfg Index 8:30 a.m. EDT

• Housing Market Index 10:00 a.m. EDT

• Treasury International Capital 4:00 p.m. EDT

Federal Reserve / Treasury Speakers:

• Federal Reserve Richmond President Thomas Barkin 12:00 p.m. EDT

M&A Activity:

• Prometheus Biosciences (RXDX) to be acquired by Merck (MRK) for $200.00 per share.

•  SNBL to Acquire Satsuma Pharmaceuticals (STSA).

Meeting & Conferences of Note:

• Sellside Conferences:

  • Needham Healthcare Conference (04/17/23-04/20/23)

    •  Previously posted and ongoing conferences: None of note.

• Company Meetings: BRLI, OLK

• Fireside Chat: None of note.

• Investor/Analyst Day/Calls: AMV, AMPS, MRUS, SCHW,  XPEV

• Update  KNTE.

• R&D Day: PCVX.

• Company Event:

  • SAP Aerospace & Defense Innovation Days. (04/17/23-04/19/23)

  • TRV: Cyber: Prepare, Prevent, Mitigate, Restore 2023

• Industry Meetings:

  • Space Symposium 2023 (04/17/23-04/20/23)

  • Healthcare Information and Management Systems Society HIMSS 2023 (04/17/23-04/21/23)

  • Critical Care Transport Medicine Conference CCTMC 2023 (04/17/23-04/19/23)

  • BioNJ BioPartnering Conference 2023  (04/17/23-04/18/23)

  • DIA Medical Affairs and Scientific Communications Forum 2023 (04/17/23-04/19/23)

  • National Association of Fleet Administrators (NAFA) Institute & Expo 2023 (04/17/23-04/19/23)

    • Previously posted and ongoing conferences:

      • American Association for Cancer Research Annual Meeting (04/14/23-04/19/23)

      • National Association of Broadcasters NAB Show 2023 (04/15/23-04/19/23)

      • European Congress of Clinical Microbiology and Infectious Disease (ECCMID) 2023 (04/15/23-04/18/23)

      • European Heart Rhythm Association (EHRA) Congress 2023 (04/16/23-04/18/23)

      • American Association for Laboratory Accreditation (A2LA) Annual Conference 2023 (04/16/23-04/19/23)

      • Nachas Smarter Faster Payments Conference 2023 (04/16/23-04/19/23)

Top Tier Sell-side Upgrades & Downgrades: