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Morning Note

News

Morning Note

"Morning Note – 12/21/18"

posted by CAPIS on 12/21/2018 at 7:48 am

by CAPIS

12/21/2018 at 7:48 am

Note Next Monday that Markets Close at 1:00 p.m. EDT.

In After Hours Trading

IPOs on deck: .

Secondaries on deck: APDN.

Courtesy of IPO Financial

Earnings From After the Close:

Surprises: CTAS +.08 NKE +.06 CAMP +.02

Positive Guidance: CTAS NKE

Mixed Guidance: CAMP

Negative Guidance:

News After The Close:

Secretary of Defense James Mattis to resign effective February 28th over disagreement on troop removal from Syria.

House passes a stop gap spending bill to avert shutdown until February 8th with funding for “the wall”. Sends back to Senate for a vote that seem unlikely which will lead to a government shutdown.

FDA may allow interstate sales of some cannabis food and drink with passage of the Farm Bill.

Boeing (BA) wins a $1.1 billion contract with U.S. Special Operations Command and a $250 million Army contract for work through 2023.Also, awarded a $310 million contract with the Defense Logistic Agency.

Lockheed Martin (LMT) wins $1 billion Air Force award for work through 2027.

Raytheon (RTN) wins a $570 million Army contract for work through 2023.

Campbell Soup (CPB) names Mark Clouse CEO effect January 1st.

Dividend Raises: LW

Dividend Cuts:

Special Dividend:

New Repurchase Announcements: STL BMA

Index Changes: Arlo Technologie (ARLO) and Care.com (CRCM) to join S&P 600 January 3rd.

Hourly Action This Past Week:

Earlier is better this week. Then we get the selling in the afternoon.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning:

U.S. futures: S&P -2, Dow Jones -11, NDX -13 and Russell 2000 -1 with fair values LOWER LESSENING THE PAIN AND WITH FAIR VALUE NOW POSITIVE OPEN. Asia and Europe lower as they follow U.S. weakness on Thursday.

Gold, silver and copper higher. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 120.98 with yields higher since Thursday morning. Prices as of 7:55 a.m. EDT.

Top Sectors Thursday: Utilities.

Weakest Sectors Wednesday: Services, Industrials, Materials and Technology lead to the downside.

One Month Winners: None.

Three Month Winners: Utilities.

Six Month Winners: Utilities.

Twelve Month Winners: None.

Year To Date Winners: None.

Earnings Ahead: (sorted by Market Cap and only most impact and notables listed)

Earnings Expected After The Close: None

Earnings Due Monday Morning:None.

Rags & Mags:

Five Things You Need To Know To Start Your Day. (Bloomberg)

Secretary of Defense Mattis resigns in a rebuke of Trump foreign policy. (NYT)

Trump tweets multiple times this morning that shut down ahead and may be very long. (Twitter)

Nissan (NSANY) Ex Chairman Ghosn rearrested. (CNBC)

China injects more stimulus. (Bloomberg)

European stocks to put up worst returns in a decade. (Bloomberg)

Teeth straightening to replace braces with Align Technology (ALGN) featured. (USA Today)

Earnings Reported This Morning:

Surprises: KMX +.09

Missed:

Positive Guidance:

Mixed Guidance:

Date Points:

Yesterday saw 557 stocks rise and 2446 fall on the NYSE. NASDAQ saw 728 rise and 2403 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.

Courtesy of Quantitative Partners, Inc

Technical Takeaways

In Erlanger Chart Room, we track six month highs to lows. We are at an extreme last seen in 1998. Expect upside action over the next 10 trading days.

Courtesy of Phil Erlanger Research, Inc. 

Trading:

Yesterday saw the S&P 500, Dow Jones Industrial Average and the Russell 2000 all closed below support, again. Another struggle.

The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. 

Courtesty of Phil Erlanger Research, Inc.

Economic:

November Personal Income is due out at 8:30 a.m. EDT and is expected to drop to 0.3% from 0.5%.

November Durable Goods are due out at 8:30 a.m. EDT and are expected to rise to 1.7% from a drop of -4.4%. Came in at 0.8%.

Q3 GDP – third estimate is due out at 8:30 a.m. EDT and is expected to remain at 3.5%. Came in at 3.4%.

Politico:

President Trump remains in Washington until the continuing resolution to fund the government is approved. If not approved, then he has stated he will remain in Washington D.C.

Partial Government Funding Deadline is 11:59 p.m. EDT for Department of Homeland Security and several other agencies.

Conferences & Analyst Meetings:

Analyst Meetings: .

M&A News & Rumors

Zynga (ZNGA) to buy 80% of Small Giant Games and raised Q4 guidance.

Del Friscos (DFRG) looks at strategic alternatives.

Upgrades & Downgrades

Notable Gap Ups and Downs (> 5% or <-5%):

Gap Ups: CDXC GRTS CRCM NKE DFRG ZNGA CGC AKRX ARLO CTAS

Gap Downs:  PTI PRGO CAMP

 

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