Traders Market Weekly: September 12 to 18 2021

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    Market Updates

    S&P Futures vs Fair Value: +7.0
    10 yr Note: 1.344%

    USD/JPY: 110.04 +0.10
    EUR/USD: 1.1823 +0.0013

    Europe: FTSE: -0.2% DAX: +0.1% CAC: -0.5%
    Asia: Hang Seng: -1.2% Shanghai: -1.4% Nikkei:+0.7%

    Gold (1789.80 -4.60) Silver (23.70 -0.10) Crude (70.86 +0.41)


    [b]Overnight Summary — World markets struggling to find traction ahead of US CPI data

    The global equity markets are mixed. S&P Futures are up about seven points to trade around the 4465 area. The market spent the Asian session stuck in a narrow range but took a dive at the start of European trading. The modest dip was bought with the low coming in at 4452.75. The S&P set its high early on at 4471.25.

    In Asia, China dropped 1.4% while Japan gained 0.7%. The Shanghai saw an early tussle trading back and forth the neutral zone. Reports that COVID-19 infections ramped up in the southeastern province of Fujian dampened sentiment. Late day pressure kicked in pushing the Chinese benchmark to close near the day’s low. In Japan, the Nikkei was privy to a steady bid over the course of the night backed by speculation of new fiscal stimulus circulating ahead of the upcoming snap elections this month.

    In Europe, the major bourses are lackluster. This is likely due to the looming US CPI data later this morning. With the reports of new coronavirus cases in China, stocks with exposure took a hit. Miners such as Anglo American and Glencore are down by 1-2%. Luxury retailers are also feeling a pinch with LVMH, Richemont and Burberry dropping around 2-4%.


    Gapping up
    In reaction to earnings/guidance:

    BBW +1.8% (reaffirms guidance in presentation)

    Other news:

    AZRX +11.2% (CEO issues letter to shareholders regarding recent acquisition of First Wave Bio and creation of First Wave BioPharma)
    AXSM +8% (FDA accepts NDA for migraine treatment AXS-07; PDUFA date set for April 30, 2022)
    KERN +7.9% (to acquire 365 Cannabis in a $17 mln deal)
    ZLAB +7.7% (receives Breakthrough Therapy Designation for Bemarituzumab in China)
    PNT +6.1% (POINT Biopharma and Convergent Therapeutics announce collaboration to evaluate CONV 01-a (Rosopatamab-225Ac) in combination with PNT2002)
    NRXP +6% (IQV to collaborate with NRXP on potential medical support for novel COVID-19 treatment)
    AVNT +4.6% (expects double-digit revenue in its composite solutions)
    SPIR +4.1% (to acquire exactEarth (EXRTF) for approx. $161.2 mln in cash and stock; to be accretive to revs, adj. EBITDA)
    ANGI +3.6% (report monthly metrics for August)
    ARAY +3.5% (reports CyberKnife Robotic Radiotherapy Platform is superior to conventional linear accelerators)
    QTRX +3.3% (FDA expands EUA label for its Simoa SARS-CoV-2 N Protein Antigen Test)
    GLDD +3% (announces receipt of several major dredging awards totaling $261.3 mln)
    VCTR +2.3% (reports August AUM)
    INCY +1.1% (Ruxolitinib Cream data accepted for presentation at EADV)
    NVCR +1.1% (has entered into a clinical trial collaboration agreement with Roche (RHHBY))
    MNR +1% (reinitiates exploration of strategic alternatives)
    RWT +1% (increases dividend)
    SENS +1% (announces collaboration with the University Hospitals)

    Analyst comments:

    JNCE +4.6% (upgraded to Outperform from Mkt Perform at Raymond James)
    DXC +1.9% (upgraded to Buy from Neutral at BofA Securities)
    LESL +1.3% (upgraded to Buy from Hold at Berenberg)
    KLAC +0.9% (upgraded to Positive from Neutral at Susquehanna)


    Gapping down

    Gapping down
    In reaction to earnings/guidance:

    HLF -8.2% (issues downside revenue guidance for Q3 and FY21), AVO -3.2%, ORCL -2.4%, SBRA -1.8% (reaffirms guidance, also to expand relationship with Recovery Centers of America, provides business update)

    Other news:

    JAMF -5.6% (announces private placement of $325 mln in convertible notes)
    OPEN -5.2% (prices secondary offering of 28.0 mln shares)
    FIGS -4.4% ( secondary offering of 8,826,703 shares of Class A common stock by Tulco, FIGS’ largest stockholder, and certain members of FIGS’ management team)
    BRP -4.3% (to acquire Jacobson, Goldfarb & Scott)
    MP -3.8% (stock offering)
    LSI -2.8% (prices offering of 2.5 mln shares of common stock for gross proceeds of ~$306 mln)
    PAR -2.6% (stock offering and convertible notes offering)

    Analyst comments:

    TASK -1.8% (downgraded to Neutral from Buy at BofA Securities)
    AEIS -1.4% (downgraded to Neutral from Positive at Susquehanna)
    AMAT -1.4% (downgraded to Neutral from Positive at Susquehanna)
    LRCX -1.2% (downgraded to Neutral from Positive at Susquehanna)


    Ladenburg initiated coverage of Aadi Bioscience (AADI) with a Buy rating and $51 price target.

    The firm notes Aadi is a clinical-stage biotechnology company with a single asset, an mTOR inhibitor Fyarro that utilizes sirolimus with albumin-bound nanotechnology. The company filed a new drug application in perivascular epithelioid cell neoplasms, rare mesenchymal tumors with an FDA target action date of November 26. The firm believes PEComa is an attractive path to market based on the unmet need, “compelling” response rates and a prolonged duration of responses. The firm expects Fyarro to receive approval and have remarkable market penetration in this indication.


    Morgan Stanley initiated coverage of Lucid Group (LCID) with an Underweight rating and $12 price target.

    The firm said that, at a $31B valuation, the stock market appears to be ascribing an “unusually high” probability of scenarios where Lucid achieves very high market shares. The firm added that it believes Lucid can occupy a sustainable niche place in a difficult market, though at this stage it sees “many obstacles” left to hang with more established EV titans.


    Truist initiated coverage of Berry Global (BERY) with a Buy rating and $85 price target

    Firm started the packaging sector and six names within the broader industry with “a constructive bias.” The firm cites Berry’s end-markets, free cash flow, and upcoming capital return for its positive view.
    Piper Sandler initiated coverage of Dow Inc. (DOW) with an Overweight rating and $78 price target. The firm called the stock’s valuation attractive, and said it expects to see the company take advantage in the future as increasing free cash flow will allow for some growth initiatives, further opportunistic debt reduction and share repurchase at least in line with dilution.


    [b]Gold climbs to one-week high after inflation slips up $15 to $1808 today
    Falling inflation and declining Treasury yields are good news for gold bugs.

    Early in the day it had touched the worst since Aug 25 so it’s shaping up to be a bullish outside day if it holds it


    [size=5][color=red][i][b]Ohhh the humanity — WALL STREET BEEF is Sizzlin
    BULLS can’t always keep markets green — DOW minus 300
    How do you like your STEAKS? — rare, medium, well done 😉 :woohoo:[/b][/i][/color][/size]


    [size=5][b][color=red]Dow 34,577.57 -292.06 -0.84%
    S&P 500 4,443.05 -25.68 -0.57%
    Nasdaq 15,037.76 -67.82 -0.45%
    GlobalDow 4,036.01 2.51 0.06%
    Gold 1,806.50 12.10 0.67%
    Oil 70.77 0.32 0.45%[/color][/b][/size]


    With the market feeling the weight, and in agreement with $HOOD per their earnings Citigroup sees third-quarter #trading declining by a percentage in the low to mid teens from a year earlier via #Bloomberg


    Gapping down

    Select Macau gaming names showing early weakness:

    MLCO -8.4%, WYNN -5.6%, LVS -4.5%, MGM -1.5%

    Other news:

    KAVL -37.9% (reports Q3 results; notes impact of FDA’s PMTA process in discussing its decline in revenues, updates guidance for FY21)
    CDXC -21.7% (to defend IP portfolio; plans to appeal patent infringement lawsuit)
    TBPH -19.8% (reports Phase 3 study of Ampreloxetine did not meet the primary endpoint; takes strategic actions to focus on respiratory disease portfolio)
    AVTX -17.6% (prices offering of 12.5 mln shares of common stock at $2.20 per share)
    HUT -11.6% (stock offering)
    YUMC -4% (provides business update: Delta variant significantly impacted restaurant industry)
    PMTS -2.1% (files for $150 mln stock offering; also files for offering by selling shareholders)
    LYV -2% (prices offering of 5,239,259 shares of common stock at $86.90 per share)
    ASO -2% (prices secondary offering by affiliates of KKR of 18,645,602 shares of common stock at $44.75 per share)

    Analyst comments:

    IART -0.9% (downgraded to Neutral from Buy at BTIG Research)


    Gapping up
    In reaction to earnings/guidance:

    IRNT +10%, JKS +1.1%, SKIL +1%

    Other news:

    BPTS +10.7% (reports second interim analysis efficacy results in the promising zone allowing continuation of Phase 2/3 COVA Study)
    HOOK +5.6% (entered into a clinical collaboration and supply agreement with Merck & Co. (MRK))
    SAGE +5.5% (receives Fast Track Designation for SAGE-718)
    OPGN +4.7% (clinical data from an investigator-initiated and driven prospective randomized controlled multicenter study)
    BGNE +3.3% (BRUKINSA (zanubrutinib) receives accelerated approval from FDA for treatment of marginal zone lymphoma)
    OBSV +3% (submits NDA to FDA for Linzagolix)
    AFG +2.7% (declares a special dividend of $4.00/sh)
    JAMF +2.2% (prices $325.0 mln of Convertible Senior Notes due 2026)
    MRCY +2.1% (successfully demonstrates Sensor Open Systems Architecture aligned sensor processing platform at US Army)
    REGN +2% (awarded $2.9 bln Army contract; also receives US Gov’t agreement to purchase 1.4 mln additional doses of REGEN-COV)
    YOU +1.9% (announces strategic partnership with Tappit)
    IDEX +1.9% (increases stake in Energica Motor Company)
    FTCI +1.7% (CEO to step down, replacement named)
    MSFT +1.2% (raises dividend by 11%; approves new $60 bln share repurchase)
    Analyst comments:

    SRPT +2.8% (upgraded to Buy from Neutral at Guggenheim)
    KNX +2.4% (upgraded to Outperform from Market Perform at Cowen)
    SNDR +2.2% (upgraded to Outperform from Market Perform at Cowen)
    WERN +1.7% (upgraded to Outperform from Market Perform at Cowen)


    Wells Fargo initiated coverage of DraftKings (DKNG) with an Overweight rating and $73 price target.

    The firm’s favorable view reflects DraftKings’ position as a leading platform in internet gaming, which the firm views as the most attractive growth vertical in gaming. The firm sees potential upside to the company’s current 17% iGaming share as it integrates GNOG and targets casino-first customers. The firm says DraftKings is “well positioned to win.”

    Cantor Fitzgerald initiated coverage of Equillium (EQ) with an Overweight rating and $14 price target.

    The firm views the recent acquisition of Kadmon (KDMN) by Sanofi (SNY) for $1.9B as validation of the potential market opportunity and big pharma interest in GvHD therapies. Equillium is also studying itolizumab in lupus and severe uncontrolled asthma, with Phase 1b readouts for both programs guided for 2H21, and the firm forecasts peak sales of $300M and $1B for lupus nephritis and asthma, respectively.

    Mizuho initiated coverage of SoFi Technologies (SOFI) with a Buy rating and $28 price target.

    The firm believes SoFi is a one-stop shop digital financial services company that is in the “midst of a powerful transition to a full-fledged mobile-first, super-app neo-bank.” The firm believes believe this could “accelerate a virtuous cycle” of increased engagement, boosting revenue and profits. The firm sees path to a 40% sales growth by 2025.



    Stifel upgraded Sea Limited (SE) to Buy from Hold with a price target of $400, up from $325. The firm believes the company is an “industry leader” in both gaming and e-commerce and its two core businesses have experienced “tremendous growth” over the past year. The firm notes the company’s gaming business, Garena, has shown signs of robust user engagement and user conversion and he expects this will continue to improve as the company develops new content for the FreeFire platform. Meanwhile, given the “attractive” gaming margins it enjoys, the firm believes Sea is well positioned to invest in its burgeoning e-commerce and financial services segments.

    KeyBanc upgraded Bio-Techne (TECH) to Overweight from Sector Weight with a $600 price target. The firm notes management held an upbeat Analyst Day on September 10 and provided a FY26 revenue goal that is twice FY21 revenue. The firm expects significant demand for its protein production site currently coming online.

    Argus upgraded Alcoa (AA) to Buy from Hold with a $58 price target, citing its improving balance sheet, rising aluminum prices and recent developments in the Chinese market. The firm is maintaining his 2021 EPS estimate and boosting its 2022 estimate.

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