Thursday, April 28, 2022

Morning Matters:

Weekly Charts Updated

Each week we highlight charts below of the SP500, Russell 2000, NASDAQ Composite, UUP, EEM, TLT, HYG,LQD and recently GLD. The charts use the 50 day moving average slope indicator. When it is green we like the instrument we are tracking and when it is red we avoid the name/sector/asset class.

CHARTS UPDATED BY THE OPEN

U.S. Equity indexes are now all positive. Emerging Markets are positive as well. The U.S. Dollar is weak. Bond ETFs are mixed with TLT now lower while LQD and HYG are positive. GLD is the ETF that tracks the price of gold is positive but losing some steam./p>

Remember what matters is the slope of the 50 day moving average not the 50 day moving average itself. As mentioned above, bond holders should be defensive for the time being. That said, we note the dollar is in rally mode.

All charts are created from www.erlangerchartroom.com and if interested in using this indicator in Chart Room please feel free to send us an email by using the Contact Us section from the home page.

Charts courtesy of www.erlangerchartroom.com

Market Matters:

S&P 500 Up +63 Points

Overnight Summary: The S&P 500 closed Wednesday at 4183.96 up 0.21% from 4175.20 on Tuesday. Futures have traded higher overnight but are off their peak. The overnight high of 4258.75 was hit at 5:05 a.m. EDT. The low was hit at 4,175.25 at 4:05 p.m. EDT, a range of 83 points high to low quite a large range. At 7:25 a.m. EDT the current price is 4248 which is +1.63% and +68 points.

Breaking News: Stocks trying to rally and hold gains as opposed to previous days where gains were lost. (Yahoo Finance)

Earnings Out After The Close:

• Beats: EQIX +2.36, MTH +0.99, RE +0.98, FICO +0.95, URI +0.86, STC +0.77, AVT +0.61, DFS +0.61, CCS +0.50, PPC +0.50, CHRW +0.50, HOLX +0.47, AXS +0.42, QCOM +0.29, PTC +0.27, RRX +0.26, MOH +0.22, TYL +0.22, FB +0.21, ASGN +0.20, MC +0.18, ALSN +0.16, MEOH +0.15, MYRG +0.15, FWRD +0.14, LC +0.13, AMGN +0.12, MAT +0.12, PLXS +0.12, UPWK +0.11, AMED +0.11, PI +0.10, FORM +0.10, AWK +0.10, HP +0.09, MXL +0.09, BMRN +0.08, ICLR +0.07, MMSI +0.06, BCOV +0.06, PINS +0.06, KRC +0.06, TDOC +0.05, EHC +0.05, AFL +0.05, CLS +0.04, FIX +0.04, MAA +0.04, CYH +0.04, NLY +0.03, ESI +0.03, ACGL +0.03, NOW +0.03, COUR +0.03, NDLS +0.03, AUY +0.03, AZPN +0.03, CLB +0.02, PGRE +0.02, WRE +0.01, WSC +0.01, F +0.01, DRE +0.01, PDM +0.01, HTZ +0.01, NEX +0.01.
• Flat: INVH +0.00, HPP +0.00, PYPL +0.00, AVB +0.00.
• Misses: CACI (0.76), SLM (0.35), NTGR (0.30), ORLY (0.27), EIG (0.19), UIS (0.19), FARO (0.17), LVS (0.16), EQT (0.12), ALGN (0.10), RJF (0.09), CHDN (0.05), OII (0.05), CAKE (0.04), UCTT (0.04), AR (0.04), CP (0.04), GGG (0.03), TROX (0.03), FTI (0.03), AM (0.02), AGI (0.01).
• CG , MSA , QGEN

Capital Raises:

• IPOs Priced or News: None of note.
• New SPACs launched/News: None of note.
• Secondaries Priced: None of note.
• Notes Priced of note: None of note.
• Common Stock filings/Notes:
  • BTCY: Filed Form 424B5.. 10,947,201 Shares of Common Stock.
  • SES: Filed Form 424B3.. Primary Offering of 14,213,280 Shares of Class A Common Stock.
  • UDR: Filed Form S-3.. 903,123 Shares Common Stock.
  • VCSA: Filed Form 424B3.. 299,864,369 shares of Class A Common Stock.
• Pricing of Over-Allotment/Notes: None of note.
• Direct Offering: None of note.
• Selling Shareholders of note:
  • Nikola Corp. (NKLA) files for offering of up to 1.0 million shares of common stock by the selling stockholders.
  • PLBY: Filed Form S-3.. 30,534,974 Shares of Common Stock Offered by Selling Stockholders.
• Private Placement of Public Entity (PIPE): None of note.
• Mixed Shelf Offerings:
  • AZ: Filed Form F-10.. CAD $64,000,000 Mixed Shelf.
  • BG: Filed Form S-3ASR.. Mixed Shelf.
  • BWB: Filed Form S-3.. $150 Million Mixed Shelf.
  • RLGT: Filing of $150 million universal shelf registration.
  • ROIC: Filed Form S-3ASR.. Mixed Shelf.
  • DSGN: Filed Form S-3.. $300 Million Mixed Security Shelf.
  • FHN: Filed Form S-3ASR.. Mixed Shelf.
  • IKNA: Filed Form S-3.. $300 Million Mixed Security Shelf.
• Convertible Offering & Notes Filed: None of note.

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: LC +20%, FB +17%, WSC +15%, UPWK +13%, PINS +11%, NDLS +10%, PTC +8%, NOW +8%, CCS +7%, NEX +5%, PPC +5%, QCOM +5%, UCTT +5%, PYPL +4%, FICO +4%, ICLR +4%, AXS +4%, VALE +4%.
  • Trading Down: TDOC -37%, ALGN -20%, COUR -8%, ORLY -7%, AMGN -6%, CACI -5%, ACGL -4%.

• News Since The Close:
  • Stocks making the biggest moves after hours: FB, QCOM, F, PYPL, TDOC, LVS, TMUS, MAT, PINS  (CNBC)
  • Teladoc (TDOC) stock plunges more than 30% after earnings outlook slashed, massive impairment charge. (MarketWatch)
  • Meta Platforms (FB) COO- Saw Solid Growth In APAC And Rest Of World, But Faced A More Challenging Environment In North America And Europe – Conf Call
  • Facebook (FB) earnings beat sends Meta stock soaring, but sales hit slowest growth rate since came public. (MarketWatch)
  • Pinterest (PINS) stock soars as earnings and revenue beat, users increase for first time in a year. (MarketWatch)
  • Japanese Finance Ministry Official: Excess FX Volatility Is Undesirable, Recent Moves Are ‘Extremely Worrying’.
  • Russian/Ukraine News:
    • Russia’s Foreign Ministry spokesperson says west should take seriously statement of Russian Defense Ministry that strikes on Russian territory will lead to a response from our country.
    • Putin threatens “lightning fast” retaliation if nations intervene; UK says West must “double down” on Ukraine support. (CNBC)

• Exchange/Listing/Company Reorg and Personnel News:
  • Warren Lichtenstein, Executive Chairman of Aerojet Rocketdyne (AJRD), Files Lawsuit in Federal Court Against Rogue CEO Eileen Drake and Her Activist Slate of Director Candidates.
  • American Water Works (AWK) appoints John C. Griffith as CFO.
  • Accuray (ARAY) appoints Suzanne Winter to succeed Joshua Levine as CEO, effective July 1.
  • ASGN Incorporated (ASGN) announces that CFO Ed Pierce will be stepping down this coming August; Marie Perry will become CFO.
  • BLL Stock Ticker Symbol Changing to BALL.
  • Color Star Technology Co., Ltd. (CSCW) Announces Receipt of Extension to Meet the Nasdaq’s Minimum Bid Price Requirement.
  • Engine Gaming and Media, Inc. (GAME) Announces Director Resignation.
  • HUYA (HUYA) discloses Mr. Ligao Lai has tendered his resignation as the Chief Technology Officer due to personal reasons.
  • O’Reilly Auto (ORLY) announces that CFO Tom McFall will step down but continue his employment with the Company in the role of Executive Vice President.
• Buyback Announcements:
  • Cheesecake Factory (CAKE) buyback reinstated.
  • Discover Financial Services (DFS) approves $4.2 billion for share repurchases.
  • Employers Holdings (EIG) Board of Directors authorized a $50.0 million increase to its existing share repurchase program.
  • First BanCorp (FBP) Announces a New $350 Million Stock Repurchase Program.
  • FirstCash (FCFS) Completes Share Repurchase Authorization and Authorizes Additional Share Repurchase Program.
  • Fortuna Silver Mines (FSM) authorizes share repurchase program of up to 5% of outstanding shares.
  • LSI Industries (LYTS) Announces $15 Million Share Repurchase Program.
  • Methanex (MEOH) increases its existing share repurchase program to 10% of public float.
  • VALE Board Approves Buyback of up to 500 million shares in 18 months.
• Stock Splits:
  • TXMD 1 for 50 reverse split announced for May 9th.
• Dividends Announcements:
  • Aflac (AFL) Board of directors declared the second quarter dividend of $0.40 per share, payable on June 1, 2022.
  • American Water Works (AWK) raises dividend 8.7% to $0.655.
  • Ares (ARES) declared a quarterly dividend of $0.61 per share of its Class A and non-voting common stock.
  • Capital Southwest Corp. (CSWC) declares special dividend of $0.15 per share for the quarter ended June 30.
  • Carlyle Group (CG) The Board of Directors has declared a quarterly dividend of $0.325 per share, from $0.25 per share.
  • Cheesecake Factory (CAKE) reinstated its quarterly dividend of $0.27.
  • CF Industries Holdings, Inc. (CF) Announces 33% Increase in Quarterly Dividend.
  • Comfort Systems (FIX) increases quarterly cash dividend $0.01 to $0.14 per share.
  • Discover Financial Services (DFS) increases quarterly dividend 20% to $0.60 per share.
  • Employers Holdings (EIG) Board of Directors declares a $1.00 per share special dividend and increases regular dividend.
  • First BanCorp (FBP) Announces a 20% Quarterly Dividend Increase.
  • FirstCash (FCFS) Declares Quarterly Cash Dividend.
  • Methanex (MEOH) raises quarterly dividend to $0.145 per share, 16% increase.
  • Strategic Education (STRA) announced today that it declared a regular, quarterly cash dividend of $0.60 per share of common stock.
  • Tempur Sealy Int’l (TPX) announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share.
  • TotalEnergies SE (TTE) raised its quarterly dividend to €0.69 per share, a 5% increase.

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

S&P 500 +59, Dow Jones +270, NASDAQ +266  and Russell 2000 +24.  Europe higher and Asian higher.  VIX Futures are at 29.65 from 27.50 yesterday morning and the VIX closed at 33.52 from 27.02  on Monday. Gold higher with Silver and Copper lower. WTI Crude Oil and Brent Oil Futures lower with Natural Gas lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury sees yields at 2.819% from 2.75%. Bitcoin is at $39,630 from $38,858 yesterday morning and is higher by 2.19% this morning. As of 8:07 a.m. EDT.

Tuesday’s Action – 04/27/22 Close:  

• Daily Positive Sectors: Basic Materials, Energy, Consumer Cyclical, Technology, Industrials of note.
• Daily Negative Sectors: Communication Services, Real Estate of note.
• One Month Winners: Real Estate, Consumer Defensive, and Utilities of note.
• Three Month Winners: Energy, Utilities and Basic Materials of note.
• Six Month Winners: Energy, Consumer Defensive, Utilities of note.
• Twelve Month Winners: Energy, Utilities, and Real Estate of note.
• Year to Date Winners: Energy, Utilities, and  Basic Materials of note.

 Markets ended mixed with the SPX up 0.21% and the RUT down 0.34%.  TLT traded down 1.28% to finish the day at 120.84. Updated 04/27/22 close.

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

• Thursday After the Close: AAPL, AMZN, INTC, SYK, GILD, KLAC, DXCM, DLR, AJG, RMD, AEM, SGEN, HIG, VRSN, CINF, AVTR, PFG, SSNC, LPLA, BIO, LNT, CE, ROKU, ZEN, WDC, EMN, CSL, CUBE, GLPI, HOOD, X, FBHS, SWN, MP, OLN, FSLR, CACC, FIVN, NOV, MHK, ATR, WU, PEGA, FFIN, SSB, OMF, CUZ, COLM, EXPO, OMCL, NATI, SM, ROG, POWI, ENSG, CWST, SPSC, FIBK, TRUP, NWE, OFC, ATUS, ULCC, FTAI, AX, TEX, HUBG, WIRE, EBS, MTX, MGRC, KN, SKYW, CASH, LTC, OSIS, COHU, DRQ, LMAT, IMAX, MERC, ACCD, NPTN, MITK, RMAX, BZH, OIS, CAMP of note.
• Friday Before the Open: XOM, CVX, ABBV, AZN, BMY, HON, CHTR, AON, CL, TRP, IMO, PSX, LYB, WY, MGA, WPC, CBOE, NWL, SYNH, GTLS, UBSI, AB, LNTH, GT, CRI, SXT, NMRK, PIPR, BLMN, B, ARCB, PFS, SLCA, WETF of note.

Earnings of Note This Morning:

• Beats: RS +1.24, TMO +1.04, HZO +0.59, VC +0.47, LECO +0.43, HSY +0.43, SWK +0.40, ABG +0.33, LLY +0.32, MRK +0.31, STNG +0.31, CAT +0.28, AIT +0.25, DTE +0.23, FCN +0.22, AIMC +0.20, IRM +0.20, IP +0.20, BC +0.20, WEX +0.19, SNY +0.18, WST +0.18, LAZ +0.17, HUN +0.17, WTW +0.16, LIN +0.16, TFX +0.16, NVCR +0.15, CTS +0.14, TXT +0.14, WBS +0.14, PNM +0.12, BAX +0.12, FCFS +0.12, EXLS +0.12, NOC +0.12, MDC +0.11, PERI +0.11, ABMD +0.11, MCD +0.11, LH +0.10, PHM +0.10, HNI +0.10, LKQ +0.09, VIRT +0.08, FBP +0.08, IPG +0.08, CARR +0.07, CBZ +0.07, MD +0.06, CHD +0.06, SO +0.06, KBR +0.05, PBI +0.05, CMCSA +0.05, NLSN +0.04, TPX +0.04, OPCH +0.04, HAYW +0.04, KIM +0.03, MTRN +0.03, MO +0.03, MTSI +0.02, AOS +0.02, AEP +0.02, SHYF +0.02, KEX +0.02, FTV +0.02, XEL +0.02.
• Flat: LLNW +0.00, NOK +0.00, SIRI +0.00, VLY +0.00, KDP +0.00.
• Misses: CNX (5.24), BTU (3.08), PDS (1.83), DPZ (0.58), ERJ (0.43), JKS (0.39), CG (0.28), STRA (0.20), POR (0.20), EME (0.19), RLGY (0.14), TROW (0.14), SRCL (0.13), FAF (0.06), PBF (0.04), SAH (0.04), FLWS (0.04), TNL (0.03), LUV (0.02), OSTK (0.02), ARES (0.02), TW (0.01), BFH (0.01).
• Still to Report: bALNY , CRS , CFR , GWW , GFF , ITGR , MA , MPW , PATK , PTEN , PRFT , PCG , SNDR , SFNC , TNC , TRS , TWTR , VNE.

Guidance:

• Positive Guidance: APH, QCOM, UPWK, BCOV, NDLS, EQIX, WSC, LC, AZPN, URI, FICO, PI, MXL, ASGN, AVT, PLXS, CLS, WST, EXLS, LLY, WEX, CBZ, AIT, HSY, RS, HZO, IPG, CTS, MTRN,OPCH of note.
• Negative Guidance: GD, FARO, TDOC, FB, NTGR, CACI, PYPL, YMAB, INFA, POR, SWK, FLWS, AOS, CHD, AIMC, BAX, FTV, SHYF of note.

Erlanger Research Advance/Decline Chart: Updated through 04/27/22 close.

Gap Ups & Down In Early Pre-Market:

• Gap Up: LC 18%, FB 17%, NDLS 15%, AVT 10%, MXL 10%, NOW 10%, EQT 9%, VLRS 9%, MTH 8%, ETWO 8%, PTC 8%, QCOM 8%, BCOV 7%, WSC 7%, UPWK 7%, PINS 6%, PPC 6%, VALE 5%, TROX 5%, VAL 5%, ICLR 5%, AXS 5%, FICO 5%, URI 4%, SNN 4%, CARA 4%, BMRN 4%, MMSI 4%, HUN 4%, SLCA 4%.
• Gap Down: TDOC -42%, ALGN -23%, OSTK -8%, ORLY -7%, IKNA -7%, JKS -7%, AMGN -5%, QGEN -5%, AMSF -5%, COUR -5%, CACI -5%, FTI -4%, CLB -4%.

Insider Action: WBD, SNV sees Insider buying with dumb short selling.  GRPN sees Insider buying with smart short sellers. 04/27/22 close.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

• Five Things You Need to Know to Start Your Day. (Bloomberg)
• Russian President Putin warns of a “lightning fast” response to any country intervening in Putin’s War in Ukraine. (CNBC)
• China will lower coal tariffs to zero. (Reuters)
• The EU does not want European Energy Companies to pay in rubbles. (Bloomberg)
• European Banks at risk over leveraged loans. (WSJ)
• U.S. officials believe Q1 GDP will fall versus Q4 but the economy remain “very strong”. (Reuters)
• OPEC+ is likely to increase production. (Reuters)
• Walt Disney (DIS) new strategy is to be quiet on political issue and work out issues with Florida Governor Ron DeSantis (R-FL). (WSJ)
• Ford (F) CEO John Lawler notes that demand for cars and trucks remain strong. (CNBC Interview)
• Robinhood Snacks looks at Facebook/Meta (FB) slowing revenues. Visa (V) sees users increasing their swiping.

Moving Average Update:

• Score stays at 0% for the….fourth day.  Updated 04/27/22 close.

Geopolitical: 

• President’s Public Schedule:
  • The President receives the President’s Daily Brief, 9:30 a.m. EDT
  • The President delivers remarks on support for Ukrainians defending their country and their freedom against Russia’s brutal war, 10:45 a.m. EDT
  • The President meets with small business owners to discuss the small businesses boom under his leadership, 2:00 p.m. EDT
  • Press Briefing by Press Secretary Jen Psaki, 3:00 p.m. EDT
  • The President and The First Lady host their first official film screening at the White House, showing HBO’s “The Survivor” in honor of Yom HaShoah and Holocaust Remembrance Week, 5:00 p.m. EDT

Economic: 

• Q1 GDP  is due out at 8:30 a.m. EDT and is expected to 1.1% from 6.9%.
• Initial jobless Claims 8:30 a.m. EDT
• EIA Natural Gas Report 10:30 a.m. EDT
• KC Fed Mfg Index 11:00 a.m. EDT

Federal Reserve Speakers:

• None of note.

M&A Activity:

• HighPeak Energy, Inc. (HPK) Announces Acquisition of Howard County Properties Principally in its Signal Peak Area from Hannathon Petroleum and Other Sellers.
• Synopsys (SNPS) agrees to acquire WhiteHat Security for approx. $330 million in cash.

Meeting & Conferences of Note:

• Sellside Conferences:
  • Jefferies Online Meal Kit Summit 2022 
    • Previously Announced  Conferences:
      • B.Riley Neuro & Ophthalmology Conference (04/27/22-04/28/22)
      • UBS Asia Healthcare Virtual Conference 2022 (04/27/22-04/29/22)
• Company Meetings: AGCO, CCK, EIX, FMC, GLW, GPC, GS, JBHT, JNJ, NRG, PFE, SATS, SNA, TXN, VLO.
• Fireside Chat: None of note.
• Investor/Analyst Day/Calls: DNAC, UAL.
• Update:
  • Barfresh Food Group Inc. (BRFH) Business Update Call 2022.
• R&D Day: Eledon Pharmaceuticals Inc (ELDN) Virtual R&D Day 2022.
• Company Event:
  • Matterport (MTTR)Space Jam – Retail Partner Offerings 2022
  • Snap (SNAP) Partner Summit: Back to Reality 2022
• Industry Meetings:
  • 7th Annual RNA Medicine Symposium 2022
  • Society of Biological Psychiatry (SOBP) Annual Meeting 2022 (04/28/22-04/30/22)
  • Ms. Medicine Women’s Health Matters Conference 2022 (04/28/22-04/30/22)
  • International Conference on Fatty Liver (04/28/22-04/30/22)
  • Pediatric Endocrine Society Annual Meeting 2022 (04/28/22-05/01/22)
    • Previously Posted and Ongoing Conferences:
      • MRO Americas Aviation Week 2022 (04/26/22-04/28/22)
      • Canadian Hydrogen Convention (04/26/22-04/28/22)
      • AUVSI Xponential Unmanned Systems 2022 (04/25/22-04/28/22)
      • CinemaCon Las Vegas 2022 (04/25/22-04/28/22)

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 it to make the reader aware of market moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Wednesday’s Upgrades and Downgrades:

Today's Superstock Investor Stock Scorecard:

Facebook, Inc. Class A (FB)
by Superstock Investor

Stock Scorecard      Scorecard Glossary

Facebook/Meta (FB) saw growth slow but the stock rallied to $201.89 this morning up from $174.95. Company Information Company: Facebook, Inc. Class A Sector: Technology: Software_Serv Industry: Internet Software_Serv Market Cap:  $777,210,000,000 Targets   Price %Gain   Current Price $301.71     Price Target $221.13 -0.1%   Upper Bound $276.41 0.1%   Lower Bound $165.85 -0.4%   Stock data last updated 01/28/2022. Data provided by QPI, Inc. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. QPI, Inc. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.

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