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Morning Note

News

Morning Note

"Morning Note – 12/27/18"

posted by CAPIS on 12/27/2018 at 7:30 am

by CAPIS

12/27/2018 at 7:30 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: common stock; mixed shelf offering;

Courtesy of IPO Financial

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

News After The Close:

The Dow Jones Industrial Average had its largest one day point move in the history of the index, 1086 points.

Prospect Capital (PSEC) CEO John Barry buys 1.6 million shares.

Deerfield Capital Mgmt takes a 5.5% passive stake in Sientra (SIEN).

Hourly Action This Past Week:

Stocks were mixed until 11:00 a.m. EDT and then it was off to the races. The last time we saw a move like this was the week of July 2nd through July 6th.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning:

U.S. futures: S&P -36.5, Dow Jones -315  NDX -90 and Russell 2000 -19.30 with fair values LOWER LESSENING LOSSES.  Asia mixed with the Nikkei sharply higher and Europe lower this morning over Brexit concerns.

Gold and silver higher with copper lower. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price 121.23 with yields higher since Monday morning. Prices as of 8:20 a.m. EDT.

Top Sectors Wednesday: All lead by Services, Technology and Materials.

Weakest Sectors Wednesday: None.

One Month Winners: None.

Three Month Winners: None.

Six Month Winners: None.

Twelve Month Winners: None

Year To Date Winners: None.

Rags & Mags:

JP Morgan (JPM) to be fined $135 million by the SEC on the “pre release” of ADRs. (SEC Release)

President Trump considers Executive Order to ban ZTE and Huawei equipment and phone sales in the U.S. (Reuters).

Iraqi leaders demand post Trump visit that the U.S. withdraw from Iraq. (CBS News)

U.S. Delegation heads to China the week of January 7th for trade talks. (Bloomberg)

ETFs and Mutual Funds see drop at Vanguard and other family complexes. (WSJ)

Stocks bounce back from “almost” a bear market on the S&P 500. (NYT)

Date Points:

Yesterday saw 2613 stocks rise and 369 fall on the NYSE. NASDAQ saw 2477 rise and 650 fall.

The SP 500 remains 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 at 2642.21. 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  24% (-7%) of stocks are higher and 76% (+7%) are lower. Updated 12/21/18 close with next update on 12/28/18 close.

Latest Short Interest Data:

Courtesy of Quantitative Partners, Inc and Phil Erlanger Research, Inc.

Trading:

Yesterday saw the S&P 500, Dow Jones Industrial Average and the Russell 2000 rip through resistance by noon time. The Russell 2000 never looked back after 11:00 a.m. EDT while the S&P 500 and Dow Jones tested resistance at 1:00 p.m. EDT before launching higher into the close.

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:

Initial Weekly Jobless Claims are due out at 8:30 a.m. EDT.

December Consumer Confidence is due out at 10:00 a.m. EDT and is expected to fall to 133.7 from 135.7.

Treasury Auction at 1:00 p.m. EDT with $32 billion of 7 year notes.

November New Home Sales will not be released due to the government shutdown.

Politico:

President Trump took off to Iraq to visit the troops in a surprise visit.

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

Henry Schein (HSIC) to spin off animal health unit as it buys Vets First Choice.

Visa (V) to buy Earthport PLC, no terms.

Upgrades & Downgrades

Gap Up and Downs Pre Market: SIRI +1.6% DB -4.2% PRGO -3.4%.

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