QuantPartners: Morning Note - 12/29/22 $SPX, $TSLA Puts Out of Control!
Third Time A Charm? For the Third Day In A Row Futures Are Positive, But Did Not Hold on Tuesday and Wednesday.
Please Note: Next delivery of Morning Note will be on Tuesday, January 3rd. Happy New Year!
Overnight Summary: The S&P 500 closed Wednesday lower by -1.20% at 3783.22 from Tuesday down -0.40% at 3829.25. The overnight high of 3827.50 was hit at 6:15 a.m. EST. The low was hit at 3804.75 at 4:05 p.m. EST, a range of ~23 points high to low. At 7:15 a.m. EST, the S&P 500 (mini) was +15.75.
Earnings Out After The Close:
Misses: CALM (0.17).
Unusual Options Activity:
Daily Screen in Erlanger Chartroom that highlights unusual Call and Put Options activity. 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:
Common Stock filings/Notes:
ACRX: Form 8K.. securities purchase agreement 748,744 shares.
BSGM: Form 8K.. Securities Purchase Agreement 2,161,598 shares.
MCLD: Announces Initial $10.5 Million Closing of Public Offering of 9.0% Series A Cumulative Perpetual Preferred Shares and Warrants.
WTER: Filed Form S-3.. 7,480,000 Shares.
Mixed Shelf Offerings:
KRUS: Files for $125 million mixed securities shelf offering.
Debt Filing/Notes:
NVAX: Announces Closing of $175.25 Million Offering of Convertible Senior Notes Due 2027 and $74.75 Million Public Offering of Common Stock.
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: HYZN +13%, RXO +4%.
Trading Down: CALM -5%, JYNT -6%.
News Since The Close:
All eyes on TSLA:
Morgan Stanley's Jonas cuts pt to $250. "We believe Tesla may be in position to extend its lead vs. the EV competition in FY23 (both legacy and start-up) even before consideration of IRA (Inflation Reduction Act) benefits where Tesla also stands outas the biggest potential winner"
Musk To Tesla (TSLA) Employees: Don't Be 'bothered By Stock Market Craziness'. (Reuters)
ARK Innovation ETF purchased 17K shares of TSLA
Lockheed Martin (LMT) is being awarded an undefined contract action worth up to $528 mln from Missile Defense Agency.
Exchange/Listing/Company Reorg and Personnel News:
Index Changes:
GE HealthCare (GEHC) will be added to the S&P 500 effective prior to the open of trading on Wednesday, January 4, replacing Vornado Realty Trust (VNO), which will move to the S&P MidCap 400.
Vornado Realty Trust will replace RXO Inc. (RXO) in the S&P MidCap 400, and RXO will replace The Joint Corp. (JYNT) in the S&P SmallCap 600.
Delisting of Securities from The Nasdaq Stock Market: Tuscan Holdings Corp. II; Clovis Oncology, Inc.; ZyVersa Therapeutics, Inc.; Otonomy, Inc., and Forward Pharma A/S
AirNet (ANTE) Regains Compliance with Nasdaq Minimum Bid Price Requirement.
Bitfarms (BITF) Promotes Geoffrey Morphy to Chief Executive Officer.
GLBL: Cartesian Growth Corporation, Tiedemann Group, Alvarium Investments Combined company will operate as Alvarium Tiedemann Holdings, listed on NASDAQ under the ticker symbol ALTI.
Cenntro Electric Group Limited (CENN) Receives Nasdaq Notice Regarding Minimum Bid Price Requirements.
Color Star (ADD) Received Nasdaq Notification Letter Regarding Bid Price Deficiency.
Alvarium Tiedemann (GLBL) Announces NASDAQ Ticker Symbol Update.
ImmunoGen (IMGN) Announces Susan Altschuller on FMLA Leave; Interim CFO Appointed.
IronNet (IRNT) Announces Receipt of Notification Letter from NYSE.
Kingsoft Cloud (KC) Announces Results of Extraordinary General Meeting Following Proposed Dual Primary Listing on Hong Kong Stock Exchange and New Board Appointment.
Titan Medical (TMDI) Announces Receipt of Nasdaq Listing Determination; Company to Request Hearing.
Minerva Surgical (UTRS) Announces Retirement of CEO David Clapper and Appointment of Todd Usen as Company President and CEO.
Buyback Announcements or News:
New Mountain Finance Corporation (NMFC) Extends Stock Repurchase Program.
Stock Splits or News: None of note.
Dividends Announcements or News:
ESS Goes ex div tomorrow for $2.20..
What’s Happening This Morning: Futures value reflects the change with fair value.
S&P 500 +14, Dow Jones +67, NASDAQ +73, and Russell 2000 +8. (as of 7:55 a.m. EST). Asian markets are lower. Europe markets are trading higher ex the FTSE. VIX Futures are at 23.25 from 23.32 yesterday. Gold lower with Silver higher and Copper lower. WTI Crude Oil and Brent are lower with Natural Gas lower as well. $ barely down. US 10-year Treasury sees yields at 3.877% from 3.822% yesterday. The U.S. Dollar is lower versus the Euro, lower versus the Pound and lower against the Yen. Bitcoin is at $16,598 from $16,662 yesterday higher by 0.04%.
Sector Action:
Daily Positive Sectors: None of note.
Daily Negative Sectors: Energy, Real Estate, Basic Materials, Technology, Communication Services of note.
U.S. stocks ended sharply lower Wednesday, with all 11 of the S&P 500's sectors falling, as higher interest rates and recession fears continued to weigh on the market as investors near the end of a bruising 2022. The Dow Jones Industrial Average -1.10% closed more than 350 points lower, falling 1.1%, while the S&P 500 -1.20% slid 1.2% and the technology-laden Nasdaq Composite -1.35% dropped around 1.4%. Energy was the hardest hit sector of the S&P 500 on Wednesday, down more than 2%. The S&P 500 has tumbled around 20.6% this year. (MarketWatch)
Click here for a video explanation of Erlanger Value Lines.
Upcoming Earnings Of Note: (sorted by market cap, highest to lowest with most visible names)
None of note.
Earnings of Note This Morning:
None of note.
Guidance:
None of note.
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
Gap Up: HYZN +13%, GLBL +7%, RXO +4% of note.
Gap Down: JYNT -6%, CALM -5% of note.
Insider Action: BCTX sees Insider buying with dumb short selling. MCG 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.
Stocks making the biggest moves premarket: TSLA CALM LUV LMT IMGN GE AAPL (CNBC)
5 things to know before the stock market opens Thursday. (CNBC)
Bloomberg Lead Story: Wall Street's Top Stars Got Blindsided by 2022 Market Collapse. (Bloomberg)
Bloomberg Most Read Story: Milan reports 50% of passengers on China flights have Covid. (Bloomberg)
UK and France say not going to test flights coming from China. Why not? (CNBC)
Kazakhstan seeks capacity to pipe crude oil to Germany. (Bloomberg)
China's economy shows signs of returning to normal despite the high number of Covid cases. (FT)
China will increase oversight of education technology. (Bloomberg)
Southwest (LUV) cancels more flights as chaos shows no signs of abating. (Bloomberg)
Russia overnight fires over 100 missiles ending thoughts of peace talks. (Bloomberg)
Moving Average Update:
Score down to 3%.
Geopolitical:
President’s Public Schedule:
Vacation - Private Residence of Bill and Connie Neville, Christiansted, St. Croix, VI
Economic:
Initial Jobless Claims 8:30 a.m. EST
EIA Natural Gas Report 10:30 a.m. EST
EIA Petroleum Report 11:00 a.m. EST
Federal Reserve / Treasury Speakers:
None of note.
M&A Activity:
Gold Resource Corporation (GORO) Announces Ownership Interest in Green Light Metals Inc. Upon Promissory Note Conversion Into Common Shares.
Meeting & Conferences of Note:
Sellside Conferences:
None of note.
Previously posted and ongoing conferences:
UBS BB Global Emerging Markets Conference 2022 (12/28/22-12/30/22)
Company Meetings: CCM, PBIO, TLSA, TME, VIAO.
Update:
TG Therapeutics, Inc. (TGTX) BRIUMVI (ublituximab-xiiy) FDA Approval Call 2022.
CytoDyn Inc. (CYDY) Webcast to Discuss the Performance of Leronlimab in Clinical Trials 2022.
Industry Meetings:
The San Diego International Auto Show 2023 (12/30/22-01/03/23)
Previously posted and ongoing conferences:
BioCentury-BayHelix East-West Summit
Top Tier Sell-side Upgrades & Downgrades:
None of note.