In After Hours Trading
IPOs on deck: IMAC Holdings Unit (IMAC) to be priced this morning.
Secondaries on deck: AMTB DTSS GSAT.
Filings After The Close: OSUR SAGE mixed shelf offering.
IPO Filing: none of note.
Earnings From After the Close:
Surprises: FDX +0.10 SCS +0.06 AIR +0.02 ABM +0.02 JBL +0.02
Mixed Guidance: JBL
Negative Guidance: FDX
News After The Close:
Diamondback Energy (FANG) updated guidance for 2019 and 28% production growth.
Ring Energy (REI) to become cash flow neutral/positive much earlier than expected.
Alliant Energy (LNT) to move to NASDAQ from NYSE as of 12/28/18.
Ligand Pharmaceuticals (LGND) raises 2018 guidance and upside to 2019.
Department of Justice raises “bump stocks” to a machine gun under federal law.
Lockheed Martin (LMT) gets $590 million Missile Defense Information Systems Agency contract. Other contracts to Hewlett Packard Enterprise (HPE) for $320 million and General Electric (GE) $290 million.
Dividend Raises: TWO
Special Dividend: JBGS
What’s Happening This Morning:
U.S. futures: S&P +15, Dow Jones +141, NDX +34 and Russell 2000 +9 with fair values HIGHER CUTTING INTO GAINS. Asia mixed and Europe mixed to higher.
Gold lower with silver and copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price 120.88 with yields lower since Tueday morning. Prices as of 7:55 a.m. EDT.
Top Sectors Tuesday: Industrials, Technology and Services.
Weakest Sectors Tuesday: Materials, Utilities and Healthcare.
One Month Winners: None.
Three Month Winners: None.
Six Month Winners: Utilities.
Twelve Month Winners: Healthcare and Conglomerates
Year To Date Winners: Healthcare.
Earnings Ahead: (sorted by Market Cap and only most impactful and notables listed)
Earnings Expected After The Close: MLHR PIR RAD REVG.
Earnings Due Thursday Morning: CAN APOG ATU BB CAG CCL NEOG SAFM SCHL WBA.
Rags & Mags:
Five Things You Need To Know To Start Your Day. (Bloomberg)
FedEx Cut Shows Slowing Global Growth. (Bloomberg)
General Electric (GE) files for Health IPO. (Bloomberg)
Federal Reserve Decision Day Guide. (Bloomberg)
Earnings Reported This Morning:
Surprises: GIS +0.04 WGO +0.03 NCS +0.02 PAYX +0.02
Mixed Guidance: PAYX
Yesterday saw 1353 stocks rise and 1602 fall on the NYSE. NASDAQ saw 1276 rise and 1830 fall.
The SP 500 is still below its 50 day simple moving average and its 200 day simple moving average. The Russell 2000 is still below its 50 day simple moving exponential average and 200 day simple moving average.
The QPI10 Day Moving Average of Breadth (10DMA) moved to cash on 11/21. For a move to cash, the 10DMA needs to have two days in row below -200.
YTD 31% of stocks are higher and 69% are lower. Of the stocks lower, the average return is –29% with the median at -24%. Updated 12/14/18 close with next update on 12/21/18 close.
Yesterday saw the S&P 500, Dow Jones Industrial Average and the Russell 2000 all closed pivot to support. It was a struggle. We did not get three days in a row below support so our prediction for trading was correct. Today sees no prediction as FOMC days can see wild trading.
The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range.
Weekly API Petroleum Data saw Crude Oil build by 3.452 million barrels. Gasoline built by 1.767 million barrels.
Weekly Mortgage Applications fell -5.8%.
November Existing Home Sales are expected to fall to 5.20 million from 5.22 million. Due at 10:00 a.m. EDT.
Weekly Crude Oil Inventories due out at 10:30 a.m. EDT. Last week saw a draw of 1.2 million barrels. Note above API data saw a build.
FOMC concludes a two day meeting with announcement at 2:00 p.m. EDT and press conference at 2:30 p.m. EDT.
Conferences & Analyst Meetings:
Analyst Meetings: AXTA CFX LLY SIRC PBIO.
M&A News & Rumors
Civitas Solutions (CIVI) to be bought by Centerbridge Partners. For $17.75 a share in cash.
Mellanox (MLNX) up 6% on speculation from Israeli newspaper that Microsoft may bid for the company.
3M (MMM) to buy technology business of M*Modal for $1 billion.