QuantPartners: Morning Note 07/19/22 - $LVS #ShortSqueeze with Macau Opening Back Up
Stocks Mixed As European Gas Concerns Weigh on Markets.
Overnight Summary: The S&P 500 closed Tuesday at 3936.69 (higher by 2.76%) from 3830.85 (lower by -0.84%) yesterday. Futures are trading lower in the premarket session. The overnight high of 3964.50 was hit at 10:40 p.m. EDT. The low was hit at 3923.75 at 6:50 a.m. EDT, a range of 39 points high to low which is near the range of late with 45 the average range. At 7:25 a.m. EDT the current price is 3929.75 which is -0.20% and -7.75 points.
Interesting Item: China to reopen Macau on Saturday following casino closures. (Reuters)
LVS - Las Vegas Sands Corp is a resent Type 1 Short Squeeze in Erlanger’s work. Options Put Activity has swung a little too negative and ENS turning positive:
Breaking News: European Union asks nations to begin rationing the use of natural gas by 15%. (CNBC)
Earnings Out After The Close:
Beats: CALM +0.29, NFLX +0.25, PNFP +0.19, OMC +0.12, JBHT +0.07, FULT +0.06, NBHC +0.03, HWC +0.03, HOPE +0.02.
Flat: None of note.
Misses: IBKR (0.06), UCBI (0.02).
Capital Raises:
New SPACs launched/News:
CC Neuberger Principal Holdings II (PRPB) announces shareholder approval of proposed business combination with Getty Images; expected to close on July 22 under the symbol “GETY” and “GETY WS”.
East Resources Acquisition Company (ERES) Signs Letter of Intent for a Business Combination.
Frazier SPAC (FLAC) Is in Talks to Merge With NewAmsterdam Pharma. (Bloomberg)
Secondaries Priced:
RVMD Announces Pricing of Upsized $230.0 Million Public Offering of Common Stock.
Common Stock filings/Notes:
APDN: Filed Form S-3.. 1,496,400 shares of common stock issued pursuant to the exercise of warrants.
RVMD: Commencement of Public Offering of Common Stock… $200 million of shares.. JPM, Cowen and Guggenheim.
Direct Offering:
PBLA: Form 8K.. Sales Agreement with Roth — $8,400,000.
Mixed Shelf Offerings:
GOGL: Filed Form F-3ASR.. Mixed Shelf Offering.
OMIC: Filed Form S-3.. $250,000,000 Mixed Shelf.
Convertible Offering & Notes Filed:
AMC: Repurchases $72.5 Million of Its Second Lien Debt at a 31% Discount.
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: NFLX +8%, AEHR +7%, OMC +7%.
Trading Down: VBLT -78%, FOR -17%, RVMD -10%, LQDA -4%.
News Since The Close:
Russian President Putin: Gazprom Is Ready To Pump Gas As Much As Needed.
Netflix (NFLX) “only loses” 970,000 subscribers in second quarter after warning of loss of 2 million. (CNBC)
Jury finds Tesla (TSLA) just 1% liable, but owes $10.5 mln, over fatal crash. (Reuters)
Boeing (BA) Scores Again as VietJet Confirms Deal for 200 Max Jets. (Bloomberg)
ARKK Cathie Wood is liquidating ARKK transparency ETF.
Novavax (NVAX): President Biden issues statement on FDA and CDC authorizing Novavax’s COVID-19 vaccine for adults. (Statement)
Shanghai requires residents to take at least one Covid test every week until Aug 31.
Number of Nation-Wide Covid-19 Cases In Japan To Reach Record High Of Over 150,000 – (NIKKEI)
Exchange/Listing/Company Reorg and Personnel News:
Arrowhead (ARWR) appointed Patrick O’Brien as Chief Operating Officer and General Counsel.
Electronic Arts Inc. (EA) announced that Kenneth Moss, EA’s Chief Technology Officer, will depart from EA.
Copart (CPRT): CFO John North to step down on Aug 31 to assume role as CEO of Lazydays Holdings.
Buyback Announcements or News:
Aesthetic Medical International (AIH) and Investors Entered into a Share Purchase Agreement, a Subscription Agreement, a Shareholders’ Agreement and a Cooperation Agreement.
Stock Splits or News:
Nasdaq (NDAQ) Announces 3-For-1 Stock Split..
Dividends Announcements or News:
Cal-Maine Foods (CALM) approves dividend of $0.75 per share for 4Q22.
Nasdaq (NDAQ) Quarterly Dividend of $0.20 Per Share.
Northern Trust (NTRS) raises quarterly dividend $0.05 to $0.75 per share.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 -9, Dow Jones -72, NASDAQ -11, and Russell 2000 -4. Europe lower and Asia higher. VIX Futures are at 27 from 26.80 yesterday morning and the VIX closed at 24.50 from 25.30 yesterday. Gold and Silver lower with Copper higher. WTI Crude Oil and Brent Oil Futures lower and Natural Gas higher. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury sees yields at 2.963% from 2.984% from yesterday morning. Bitcoin is at $23,670 from $22,019 yesterday morning and is higher by +0.70% this morning. As of 8:06 a.m. EDT.
Sector Action – 07/19/22 Close:
Daily Positive Sectors: Industrials, Technology, Consumer Cyclical, Financial, Real Estate, Communication Services, Energy, Basic Materials, Healthcare of note.
Daily Negative Sectors: None of note.
Turnaround Tuesday! All indexes were up over 2%. Volume was nothing to be proud of though. Average volume seen on NASDAQ and a touch lighter on NYSE. Updated 07/19/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
Wednesday After the Close: TSLA, CCI, CSX, KMI, DFS, LVS, EFX, STLD, UAL, CCK, REXR, AA, XM, KNX, SEIC, FR, LSTR, RLI, WTFC, VMI, FNB, UMPQ, CVBF, CNS, PACW, SLG of note.
Thursday Before the Open: DHR, T, PM, UNP, BX, SAP, MMC, ABB, FCX, IQV, TRV, NUE, NOK, DHI, FITB, TSCO, HBAN, DOV, KEY, DGX, POOL, DPZ, NVR, IPG, SNA, EWBC, AAL, CBSH, WBS, AN, SON, SNV, ALK, HOMB, WNS, GATX, BKU, PPBI, HRI, SFNC, TCBI, AUB, SAFE, COLB, TPH, SASR, AIR, BANC of note.
Earnings of Note This Morning:
Beats: BIIB +1.16, ELV +0.30, ABT +0.29, CMA +0.15, NDAQ +0.15, MKTX +0.05, ASML +0.01.
Flat: None of note.
Misses: MTB -2.07, BKR -0.11, NTRS -0.07, HCSG -0.04.
Still to Report: BMI, FHN, LAD.
Guidance:
Positive Guidance: VRRM, MATX, ELV, BIIB, ABT of note.
Negative Guidance: LMT, AVAH, NFLX, ASML, BBWI of note.
Erlanger Research Advance/Decline Chart: Updated through 07/19/22 close.
Gap Ups & Down In Early Pre-Market:
Gap Up: AEHR +7%, NFLX +7%, OMC +7%, BDSX +4%, FULT +4%, HIVE +4%.
Gap Down: VBLT -79%, FOR -16%, RVMD -10%, INZY -5%.
Insider Action: KDP sees Insider buying with dumb short selling. CMTL sees Insider buying with smart short sellers. 07/19/22 close.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.
Stocks Making The Biggest Moves: BKR NFLX BIIB ASML WYNN LVS MRK (CNBC)
Five Things You Need to Know to Start Your Day (Bloomberg)
5 things to know before the stock market opens Wednesday. (CNBC)
Bloomberg Lead Story: Bernstein strategists have yet to see capitulation. (Bloomberg)
Bloomberg Most Read Story: Henry Kissinger warns President Biden against endless confrontation with China. (Bloomberg)
Russia to annex additional territory in Ukraine. (CNBC)
Putin to restart gas lines but with conditions. (Bloomberg)
President Biden will not declare a climate emergency today but issue executive orders on climate change. (Politico)
Trump Ally Cox wins the Republican primary in Maryland. (Bloomberg)
Mortgage demand drops to a 22 year low. (CNBC)
Airbus (EADSY) expects supply chain issues to last into next year. (FT)
Robinhood Snacks looks at European gas crisis as it threatens the global economy. Amazon (AMZN) sues Facebook user groups, not parent Meta (META), over fake adds.
Moving Average Update:
Giddy up. Score goes full send up to 80%% from 45%. Updated 07/19/22 close.
Geopolitical:
President’s Public Schedule:
The President receives the President’s Daily Brief, 9:30 a.m. EDT
The President departs the White House en route to Brayton Point, 11:45 a.m. EDT
The President delivers remarks on tackling the climate crisis and seizing the opportunity of a clean energy future to create jobs and lower costs for families, 2:45 p.m. EDT
The President departs Brayton Point en route White House, 3:30 p.m. EDT
Economic:
MBA Mortgage applications Act: -6.3% Prev: -1.7% 30-Yr Mortgage Rate: Act: 5.82% Prev: 5.74%
June Existing Home Sales are due out at 10:00 a.m. EDT and expected to come in at 1.10% from 1.0%.
The latest Treasury Budget is due out at 2:00 p.m. EDT and the last one came in at $-66.2 billion.
EIA Petroleum Report 10:30 a.m. EDT
Federal Reserve / Treasury Speakers:
Fed Speakers are on a Blackout Period into the FOMC Meeting. Blackout Period from July 16-July 28.
M&A Activity:
BrightView (BV) Acquires SGS Hawaii.
Hillenbrand (HI) Announces Binding Offer to Acquire LINXIS Group, a Global Leader in Process Equipment and Automation Solutions for the Food Industry.
Meeting & Conferences of Note:
Sellside Conferences:
Capital Link 2nd Annual Decarbonization in Shipping Forum 2022 (07/20/22-07/21/22)
Oppenheimer Summit for Emerging Biotechnology 2022
SVB Biopharma Private Company Connect 2022 (07/20/22-07/21/22)
H.C. Wainwright 1st Annual Hereditary Angioedema Conference 2022
Investor/Analyst Day/Calls: CDXC, CPRI, STRO
Update:
Adial Pharmaceuticals, Inc. (ADIL) topline results from the Company’s ONWARD Phase 3 clinical trial.
R&D Day:
I-Mab (IMAB) R&D Day 2022.
Sutro Biopharma (STRO) Virtual Deep Dive Research Forum: Next-Gen Innovations in ADCs.
Company Event:
ChromaDex (CDXC) Key Opinion Leader Webinar on the Transforming Benefits of Nicotinamide Riboside.
Top Tier Sell-side Upgrades & Downgrades: