QuantPartners: Morning Note 08/31/22: $SPX $BBBY
Stocks Trying To Recover After Three Days of Selling, S&P 500 Sees 4000 as New Ceiling
Overnight Summary: The S&P 500 closed Tuesday at 4030.61 (lower by -0.67%) from Friday at 4057.66 (lower by -3.38%). The overnight high of 4018.25 was hit at 12:40 a.m. EDT. The low was hit at 3975.25 at 5:40 a.m. EDT, a range of 43 points high to low which is near the recent range of 45. At 7:20 a.m. EDT the current price was 3999.75 which is 0.31% and 12.25 points. Currently, at 8:00 a.m. EDT the S&P 500 is now up 9 points.
Beats: CHWY +0.16, CRWD +0.09, PVH +0.06, AMBA +0.01, HPQ +0.01.
Flat: HPE.
Misses: CHPT (0.08).
Chart of the Day: S&P 500 sees 4000 become resistance with 3900 near-term support.
Capital Raises:
IPOs Priced or News:
JZ: Closing of US$25,000,000 Initial Public Offering.
ONFO: Announces Closing of $13.7 Million Initial Public Offering.
Shuttle Pharmaceuticals (SHPH) Announces Pricing of Initial Public Offering.
New SPACs launched/News:
Aesther Healthcare Acquisition Corp. (AEHA) Has Entered Into an Agreement and Plan of Merger with Ocean Biomedical, Inc., a Next-Generation Biopharma Company, to List on NASDAQ..
Secondaries Priced:
ATXG: Uplisting to Nasdaq Capital Market and Pricing of $25 Million Public Offering of Common Stock.
Common Stock filings/Notes:
BBBY: Filed Form S-3ASR -- Common Stock Offering.
BGS: Form 8K.. entered into an “at-the-market” (ATM) equity offering sales agreement.
DMS: Filed Form S-3.. 2,989,090 Shares of Class A Common Stock.
SONN: Filed Form S-3.. 11,597,947 Shares of Common Stock.
Selling Shareholders of note:
OCN: Files for 2,139,994 share common stock offering by selling shareholders.
Mixed Shelf Offerings:
TOPS: Filed Form F-3.. $200 Million Mixed Shelf.
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: CPTN +21%, DBRG +5%.
Trading Down: CHWY -9%, EYPT -8%, AMBA -7%, SNAP -5%, HPQ -4%.
News Since The Close:
Stocks making the biggest moves after hours: CRWD, CHWY, HPQ, PVH (CNBC)
U.S. Army Grounds Entire Fleet Of Chinook Helicopters, Boeing (BA) (WSJ)
Snap’s (SNAP) chief business officer is leaving to run ads at Netflix (NFLX). (AdAge)
Toyota Motor (TM) announced an additional investment of $2.5 billion in its newest North American facility.
Boeing (BA) awarded an indefinite-delivery/indefinite-quantity contract by the U.S. Missile Defense Agency with a maximum dollar amount of $5.02 billion.
CACI International (CACI) Intl awarded $5.7 billion blanket purchase agreement for Enterprise Information Technology as a Service Wave 1 by the U.S. Air Force.
Raytheon Technologies (RTX) awarded a $972 million U.S. Air Force competitive, firm-fixed-price incentive modification to a previously awarded contract.
Exchange/Listing/Company Reorg and Personnel News:
Algonquin Power & Utilities (AQN) CFO Arthur Kacprzak to step down.
Alpha and Omega (AOSL) Semi files to delay form 10-K.
Byron Vielehr Named Chief Operating Officer of Apollo Asset Management (APO).
Denny's (DENN) COO Christopher Bode is leaving.
Light & Wonder (LNW)CEO Barry Cottle steps down.
Newage (NBEV) Files for Chapter 11 Bankruptcy in Delaware.
OPGN: Nasdaq Grants OpGen 180-Day Extension to Meet Minimum Bid Price Requirement.
PVH announces that Trish Donnelly, head of PVH Americas & Calvin Klein Global, will be leaving.
Quhuo (QH) Has Regained Compliance with Nasdaq's Minimum Bid Price Requirement.
Vivani (EYES) Announces Trading under New Ticker Symbol (Nasdaq: VANI)
Buyback Announcements or News: None of note.
Stock Splits or News: None of note.
Dividends Announcements or News:
G. Willi-Food International (WILC) announces distribution of a $6 million dividend.
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +9, Dow Jones +27 , NASDAQ +77, and Russell 2000 +2 (as of 8:07 a.m. EDT). Europe lower and Asia lower ex Hong Kong. VIX Futures are at 25.49 from 26.95 yesterday morning and the VIX closed at 26.21 from 26.13 yesterday. Gold, Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower and Natural Gas lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10-year Treasury sees yields at 3.142% from 3.06% yesterday morning. Bitcoin is at $20,305.17 from $20,399 yesterday morning and is higher by 1.78% this morning.
Sector Action – 08/30/22 Close:
Daily Positive Sectors: None of note.
Daily Negative Sectors: Energy, Basic Materials, Utilities, Industrials, Real Estate, Consumer Cyclical of note.
Indexes pulled down across the board breaching 50 day moving averages, but on lower volume. Energy stocks got hit the hardest. Updated 08/29/22 close.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
Wednesday After the Close: MDB, COO, OKTA, PSTG, NTNX, GEF, SMTC, AI, CRDO of note.
Thursday Before the Open: HRL, CPB, TTC, CIEN, OLLI, SIG, PDCO, BRC, GMS, GIII, MOMO, GCO, SCWX, FLWS of note.
Earnings of Note This Morning:
Beats: DBI +0.10, BF.B +0.05.
Flat: DCI.
Misses: VRA (0.04).
Still to Report: None of note.
Guidance:
Positive Guidance: CRWD, DBI of note.
Negative Guidance: HPQ, PVH, CHWY, DCI, BBBY, VRA of note.
Erlanger Research Advance/Decline Chart: Updated through 08/30/22 close.
Gap Ups & Down In Early Pre-Market:
Gap Up: CPTN +16%, SRNE +11%, CACI +4%.
Gap Down: CHWY -11%, EYPT -8%, AMBA -8%, HPQ -7%, SNAP -6%, OSCR -5%.
Insider Action: No stock sees Insider buying with dumb short selling. No stock sees Insider buying with smart short sellers. 08/30/22 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 premarket: DBI EXPR CHWY HPQ CRWD SNAP (CNBC)
Five Things You Need to Know to Start Your Day (Bloomberg)
Bloomberg Lead Story: Powell Abandons Soft Landing Goal as He Seeks a "Growth Recession". (Bloomberg)
Bloomberg Most Read Story: There is a New Recessionary Canary in the Coal Mine Says Morgan Stanley which is leveraged loans. (Bloomberg)
Russia halts key gas supplies to Europe and specifically Germany. (Reuters)
Japan looks to reduce nuclear power dependence. (WSJ)
Federal Reserve New York President John Williams says the market has it wrong on rate reductions. (WSJ)
U.S. Utilities are no longer closing coal plants. (FT)
U.S. regulators are looking at audits of Alibaba (BABA) and JD.com (JD) as examples of upcoming China reviews. (Reuters)
Mortgage demand falls as rates move higher. (CNBC)
Bed, Bath & Beyond (BBBY) announce $500 million in new financing and plans for layoffs. (CNBC)
JP Morgan (JPM) offices in Frankfort were raided amid tax investigation. (Bloomberg)
Robinhood Snacks: China's property market is in a panic and their slumping tech sector is looking abroad. The resale economy is booming, double by 2026.
Moving Average Update:
SPX and COMPQ are next to fall below the 50 day moving average. Score goes down to 5% from 17%. Updated 08/30/22 close.
Geopolitical:
President’s Public Schedule:
The President receives the President’s Daily Briefing, 9:00 a.m. EDT
Press Briefing by Press Secretary Karine Jean-Pierre, 2:45 p.m. EDT
Economic:
MBA Mortgage Applications -3.7%, Last -1.2%, Purchases -1.8%, Last -2.8%, Refis -7.8%, Last -2.8%
August ADP Employment Report is due out at 8:15 a.m. EDT and expected to come in at 315,000 from last month.
August Chicago PMI is due out at 9:45 a.m. EDT and are expected to improve to 53.1 from 52.10 in July.
EIA Petroleum Report 10:30 a.m. EDT
Farm Prices 3:00 p.m. EDT
Federal Reserve / Treasury Speakers:
Federal Reserve Cleveland President Loretta Mester 8:00 a.m. EDT
Federal Reserve Bank of Dallas Lorie Logan 6:00 p.m. EDT
Federal Research Atlanta President Raphael Bostic 6:30 p.m. EDT
M&A Activity:
First Commonwealth (FCF) to acquire Centric Financial Corporation for $144 million in an all-stock transaction.
Nicolet Bankshares, Inc. (NIC) Completes Merger with Charter Bankshares, Inc.
Meeting & Conferences of Note:
Sellside Conferences:
Deutsche Bank Technology Conference 2022 (08/31/22-09/01/22)
Gilmartin Group Inaugural Emerging Growth Company Showcase 2022
Morgan Stanley Virtual Asia TMT Conference 2022 (08/31/22-09/02/22)
Previously posted and ongoing conferences:
Mizuho 4th Annual Storage and AI Virtual Series
UBS Japan in Focus 2022 (08/30/22-09/01/22)
Credit Suisse 10th China Internet Conference 2022 (08/29/22-08/31/22)
Jefferies Semiconductor, IT Hardware & Communications Infrastructure Summit 2022 (08/29/22-08/31/22)
Stifel Tech Executive Summit Deer Valley 2022 (08/29/22-08/31/22)
Company Meetings: HL
Fireside Chat:
Intel Corp (INTC) Fireside Chat at the Arete Research Future of Compute Series.
Investor/Analyst Day/Calls: AFG, ASMB, AZRE, BBBY, INTC
Update: FCF.
Company Event:
VMware (VMW) Explore US 2022. (08/29/22-09/01/22)
Cenntro Electric Group (CENN) at Annual Sustainable Fleet Show (08/30/22-09/01/22)
Industry Meetings:
International Immunotherapy Conference
Ophthalmology Futures Retina Forum 2022
Previously posted and ongoing conferences:
14th International Conference on Osteogenesis Imperfecta 2022 (08/30/22-09/02/22)
SafelyYou Inaugural Silicon Valley Senior Living Summit 2022 (08/29/22-08/31/22)
Top Tier Sell-side Upgrades & Downgrades: