CAPIS - Capital Institutional Services Inc.

10/30/2024 | Press release | Distributed by Public on 10/30/2024 06:48

CAPIS Morning Note – 10/30/24: Stocks Mixed Despite Google Beat, Meta and Microsoft Up After The Close

Overnight Summary: The S&P 500 closed Tuesday higher by 0.16% at 5832.92 from Monday higher by +0.27% at 5823.52.  The overnight high was hit at 5893 at 9:45 p.m. EDT and the low was hit at 5873.25 at 4:05 p.m. EDT. The overnight range is 20 points. The current price is 5873.75 at 7:00 a.m. EDT higher by +2.75 points higher by +0.05%.

Executive Summary:  ADP Payroll just came in at 233,00o crushing estimates. We get Monthly Nonfarm Payrolls on Friday. The final jobs data into the election sees strength in the first release.

Article of Note:  “Whoever Wins Next Week” – by James Freeman (WSJ). Gues what? They will need to spend a lot less than what they have promised!!

Key Events of Note Today:

  • Economic releases of note today include ADP Employment Report, Q3 GDP and Pending Home Sales as well as Weekly Crude Oil Inventories.

Earnings Out After The Close (Limited Reporting Of Major Earnings as we are in the heart of earnings)

  • Beats: CB +0.74, GOOG +0.28, RDDT +0.23, EA +0.22, SNAP +0.22, FMC +0.17, EIX +0.13, V +0.13, CAKE +0.10, SYK +0.10, EQT +0.06, UNM +0.03, BMRN +0.02, CMG +0.02,  of note.
  • Flat: None of note.
  • Misses: CZR -0.25, UIS -0.20, FSLR -0.20, DVA -0.13, OI -0.08, WERN -0.06, LSTR -0.04 of note.
Capital Raises:
  • IPOs For The Week: ADUR, CASK, CUPR, FBGL, GELS, JUNS, LUD
  • New IPOs/SPACs launched/News:
  • IPOs Filed/Priced:
  • Secondaries Filed or Priced:
    • THRY  announces public offering of $75 mln of common stock
  • Notes Priced:
  • Direct Offering:
  • Exchangeable Subordinate Voting Shares: None of note.
  • Selling Shareholders of note:
    • HRMY announces commencement of proposed public offering of up to 8 mln shares pf common stock by selling shareholders
    • TLSI files for 10,587,582 shares of common stock offering by selling shareholders
  • Debt/Credit Filing and Notes:
  • Mixed Shelf Offerings:
    • SJW files mixed shelf securities offering
  • Convertible Offerings & Notes Filed:

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

Biggest Movers Up & Down After The Close:

  • Movers Up: NRDS +26.3%,RDDT +21.9%, SNAP +8.2%, CAKE +5.9%, GOOG +5.7%, EA +2% of note. 
  • Movers Down:  QRVO -15.8%, AMD -7.9%, FSLR -5.8%, CMG -4.8% of note.

News After The Close:

  • American Water Works (AWK) subsidiary, Pennsylvania American Water, announces that it completed the purchase of the Butler Area Sewer Authority wastewater system for $230 mln
  • PACS Group (PACS) announces that the Compnay has agreed to acquire the operations of 12 skilled nursing facilities in Tennessee, collectively comprising 1,310 skilled nursing beds
  • Redditt (RDDT) Daily Active Uniques increased 47% yr/yr, earnings also beat.
  • Chipotle Mexican Grill (CMG) CEO Scott Boatwright on CNBC says still seeing growth from all consumer income levels; traffic gains continuing in October; looking at ways to leverage AI
  • Alphabet (GOOGL) notes on conference call that investments in AI beginning to pay off, while Cloud is experiencing real momentum
  • Everus Construction Group (ECG) will be added to the S&P SmallCap 600 effective prior to the opening of trading on Friday, November 1, replacing Clearwater Paper (CLW), which will be removed from the S&P SmallCap 600  prior to the opening of trading on Monday, November 4.
  • GoPro (GPRO) approves updated restructuring plan; involves a reduction in force of approximately 26% of employees, up from previous expectation of 15%
  • Barron’s: Schwab (SCHW) to expand 24 hour trading choices. (Barron’s)

Buybacks or Repurchases: 

  • FHN announces $1 billion share repurchase program
  • CMG approves $900 mln share repurchase authorization

Exchange/Listing/Company Reorg and Personnel News:

  • DCI announces that Scott Robinson, chief financial officer, will retire from his current role effective October 31st, 2024
  • USAC appoints Christopher Paulsen as its new CFO, effective Nov 18

Dividends Announcements or News:

  • Stocks Ex Div Today: CFG ENTG CE CALM MCBS
  • Stocks Ex Div Tomorrow: MS TXN ZTS SAN EPD KMI TRGP NI LNT CAG PAGP PAA AOS NNN AGNC ADC STAG CMC SLG SKT APLE EPR ATMU MTX IBTX GEL NWN VRTS SILA EFC SCHL
  • ASB increases quarterly cash dividend to $0.23/share from $0.22/share

What’s Happening This Morning: Futures S&P 500 +1 NASDAQ +16 Dow Jones -62 Russell 2000 +1 (at 8:2Tech5 a.m. EDT). Asia is lower ex Japan while Europe is lower. VIX Futures are at 18.32 from 18.22  yesterday while Bonds are at 4.264% from 4.304% on the 10-Year. Crude Oil and Brent are higher with Natural Gas lower. Gold higher with Silver and Copper are lower. The U.S. Dollar is higher versus the Euro, higher versus the Pound and higher against the Yen. Bitcoin is at $72,056 from $71,408 lower by -796 at -1.09% this morning.

Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):  
  • Daily Positive Sectors: Communication Services and Technology of note.
  • Daily Negative Sectors: Utilities, Energy, Consumer Defensive and Real Estateof note.
  • One Month Winners: Utilities, Technology, Materials, Financials and Industrials of note.
  • Three Month Winners: Utilities, Real Estate, Financials, Materials, Industrials and Consumer Defensive of note.
  • Six Month Winners: Technology, Utilities,  Real Estate, Financials and Consumer Cyclical  of note.
  • Twelve Month Winners: Technology, Financials, Utilities, Communication Services and Industrials note.
  • Year to Date Winners:  Technology, Utilities, Financials, Industrials and Communication Services of note.

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

  • Wednesday After the Close: 
  • Thursday Before The Open:

Earnings of Note This Morning: (Limited Reporting Of Major Earnings as we are in the heart of earnings)

  • Beats: NAV +1.20, HUM +0.74, GRMN +0.54, HES +0.35, BIIB +0.31, EAT+0.26, ITW +0.13, ADP +0.12, ABBV +0.09, KHC+0.01 of note.
  • Flat: None of note.
  • Misses: GSK-0.65, LLY -0.27, CAT -0.18, VMC -0.09, WING -0.08, GPN -0.01, OTIS -0.01of note.
  • Still to Report:

Company Earnings Guidance:

  • Positive Guidance:of note.
  • Negative or Mixed Guidance:of note.

Advance/Decline Daily Update: The A/D Line has moved above recent lows.

Gap Ups & Down In Early Pre-Market (+2% or down more than -2%):

  • Gap Up:NRDS +29.6%, RDDT +23.8%, NVRO +13.3%, SNAP +12.9%, ATRC +12.2%, UIS +11.3%, ENVX +10.9%, PRO +8.4%, TTI +8.1%, EXEL +7.9%, CWEN +7.7%, MCY +7.3%, GOOG +5.9%, CAKE +5.9%, EXLS +5.9%, FVRR +5.4%, EAT +5.1%, LFVN +4.9%, TRTX +4.6%, BMEA +4.2%, FMC +4%, CMP +3.8%, MX +3.3%, DK +3.3%, IMKTA +3.3%, PACS +3.1%, SKWD +2.8%, ALSN +2.5%, UDMY +2.5%, AXTA +2.4%, NAVI +2.4%, THRM +2%
  • Gap Down: HMST -31.8%, QRVO -18%, OI -16.4%, THRY -12.8%, SAGE -8.4%, AMD -8.3%, FSLR -7.8%, CMG -7.8%, TXG -7.6%, DVA -6.5%, CZR -5%, GSK -4.1%, VRNS -3.9%, WERN -3.4%, OTIS -3.3%, GPI -3%, PRVA -2.6%, CLW -2.4%, TEL -2.4%, BXC -2.3%, CHE -2.3%, PRCT -2.1%,

Insider Action:  None of note see Insider buying with dumb short selling.   None of note see 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.

  • Pre-Market Movers: Check back as not out yet. (CNBC)
  • Latest CNN Headlines. (CNN)
  • Bloomberg Lead Story: Harris Casts Trump as Chaotic, Divisive in Speech at January 6th Site. (Bloomberg)
  • Markets Wrap: US Futures steady as Alphabet Jumps 5% on Earnings. (Bloomberg)
  • Eli Lilly (LLY) cuts outlook on surprising weight loss disappointment. (Bloomberg)
  • Weekly MBA Mortgage Applications fell -0.1% over last week from -6.7% a week ago.
  • Bloomberg: Big Take – US efforts to contain Xi’s push for Tech supremacy are faltering. (Podcast)
  • NYT Daily: Six Days Left to Election. (Podcast)
  • Wealthion: Financial Freedom and Smart Tax Strategies. (Podcast)

Economic:

  • October ADP Employment Report is due out at 8:15 a.m. EDT and is expected to fall to 105,00 from 143,000. 
  • Q3 GDP (advanced)is due out at 8:30 a.m. EDT and is expected to stay at 3.0%. 
  • September Pending Home Sales are due out at 10:00 a.m. EDT and expected to rise to 2.5% from 0.6%.
  • Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT.

Geopolitical:

  • Federal Reserve Speakers move into a blackout period due to FOMC meeting next week.
  • President Biden receives the Daily Briefing at 10:00 a.m. EDT.
  • President Biden meets with the President of Cyprus at 11:30 a.m. EDT.
  • There is a Press Briefing at 1:30 p.m. EDT led by Press Secretary Karine Jean-Pierre.
  • President Biden and the First Lady play host to the locals for Halloween at 6:00 p.m. EDT. Trick or Treat?
  • Watch our Twitter feed, Bullet86, for any impromptu appearances.

M&A Activity and News:

Moving Averages On Major Equity Indexes: Moves from 80% positive to 84%. Lots of red in the other asset classes.

Meeting & Conferences of Note:

    • Sellside Conferences:
      • Cantor’s European TMT Conference
      • The ThinkEquity Conference
    • Fireside Chat: None of note.
    • Top Shareholder Meetings: BNGO, CALC, HPH, ITP, JAGX, LAZR, PALI, PHG, TNXP 
    • Top Analyst, Investor Meetings: BMEA, BSX, CALC, EW, GDTC, HURA, MLYS, VFC, WVE
    • Update: None of note.
    • R&D Day: None of note.
    • FDA Presentation:
    • Company Event: None of note.
    • Industry Meetings or Events:
      • APEX/IFSA Conference
      • Clinical Trials on Alzheimer’s Disease (CTAD) Conference
      • Emerging Growth Conference
      • Google’s Cancer AI Symposium
      • International Oncolytic Virotherapy Conference (IOVC)
      • LD Micro Investor Conference
      • National Student Safety & Security Conference
      • Targeted Protein Degradation & Induced Proximity Summit

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

Upgrades: GEV PRO GOOGL CTO BEKE

Downgrades:LYEL AGL