New!
01.18.2019 25 new posts under International Summary (15), Morning Note (9), Compliance Docs. (1)

Morning Note

News

Morning Note

"Morning Note – 12/24/18"

posted by CAPIS on 12/24/2018 at 7:41 am

by CAPIS

12/24/2018 at 7:41 am

In After Hours Trading

IPOs on deck: IPOs are done for the year and we will pick back up in 2019, The likelihood is 90% no more secondaries for the year. That said there still could be some filings announced.

Filings After The Close: YGYI CSTR common stock; AGLE WEN mixed shelf offering;

Courtesy of IPO Financial

Earnings From After the Close:  There are no earnings of note this week.

News After The Close:

Lockheed Martin (LMT) picks up several government contracts including Army contract worth $3.4 billion with 2024 completion date.

Northrop Grumman (NOC) wins $1.3 billion Air Force contract with 2023 completion date.

Raytheon (RTN) wins $693 million contract Army contract.

President Trump fires Secretary of Defense James Mattis after he resigned and replaces with Deputy Secretary of Defense Patrick Shanaha.

President Trump debates firing Federal Reserve Chairman Jerome Powell but Treasury Secretary Steven Mnuching denies such claims.

Treasury Secretary Steven Mnuchin spoke to the heads of the top six banks regarding stock liquidity.

Government shutdown will remain in effect until at least Thursday of this week.

Dividend Increases:

Repurchase Ammouncements: CSTR

Index Changes: MEDP to replace GNBC in S&P 600.before open on January 2nd.

Hourly Action This Past Week:

Another poor day on Friday after a initial move higher when Federal Reserve New York President John Williams spoke only to fall apart at the end of his interview.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning:

U.S. futures: S&P -12, Dow Jones -129, NDX -25 and Russell 2000 -7 with fair values HIGHER ADDING TO LOSSES.  Asia and Europe lower with the Nikkei closed as well as the DAX for Christmas.

Gold and silver higher with copper lower. WTI Crude and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price 121.20 with yields flat since Friday morning. Prices as of 7:55 a.m. EDT.

Top Sectors Friday: None.

Weakest Sectors Friday: All lead by Technology, Services and Conglomerates.

One Month Winners: Utilities.

Three Month Winners: Utilities.

Six Month Winners: Healthcare and Utilities.

Twelve Month Winners: Healthcare, Services and Conglomerates

Year To Date Winners: Healthcare, Services, Conglomerates and Utilities.

Rags & Mags:

China cuts tariffs on 700 goods overnight. (Bloomberg)

Trump releases cannot fire Federal Reserve Chairman amid market meltdown. (USA Today)

Futures weaken on reporting of Treasury Secretary call with heads of top 6 banks. (CNBC)

China to consider a law on forced technology transfers from U.S. companies to China. (CNBC)

Date Points:

Yesterday saw 676 stocks rise and 2349 fall on the NYSE. NASDAQ saw 658 rise and 2486 fall.

The SP 500 is back 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. We are in watch mode to get back to a buy.

YTD 34% (-5%) of stocks are higher and 66% (+5%) are lower. Updated 12/07/18 close with next update on 12/14/18 close.

Courtesy of Quantitative Partners, Inc

Trading:

Yesterday saw the S&P 500, Dow Jones Industrial Average and the Russell 2000 all have gap opens but fade and then close below support. Another ugly day and one of the worst weeks in recent memory with a confidence score of 7%.

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

Economic & Related:

Economic releases due out this week S&P Case Shiller Home Price Index, New Home Sales, Consumer Confidence and Pending Home Sales along with weekly mortgage applications, crude oil inventories, natural gas inventories and jobless claims.

Politico:

President Trump remains in Washington due to government shutdown tweeting away causing market dislocation.

Conferences & Analyst Meetings:

Analyst Meetings: We are done with analyst meeting for the year.

Sellside Conferences: None of note.

Industry Conferences: None of note.

M&A News & Rumors

Mindbody (MB) to be acquired by Vista Equity Partners for $36.50 a share.

Upgrades & Downgrades

Gap Up and Downs Pre Market: PGNX +7% MEDP +6% CDE +6% AMPH +6% JD +5% DBVT -16% DVMT -8% DO -5%.

About the Author

[Author info unavailable]

Subscribe to Stay Informed

Stay informed by subscribing to information that matters to you. We'll email you when we post new content you want to see.


DISCLAIMER

This communication is for informational purposes only and is solely intended for use by institutional investors. Use of this communication by others, including retail investors, is prohibited. No statement herein is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Certain products, including options and futures, may involve substantial risk and are not suitable for all investors. The information on this webpage is provided by an independent third party. While the information and opinions presented in this material have been obtained or derived from sources believed by Capital Institutional Services, Inc. (CAPIS) to be reliable, CAPIS makes no representations concerning its accuracy or completeness, and accepts no liability for loss arising from the use of this material.