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Morning Note

News

Morning Note

"Morning Note – 1/4/19"

posted by CAPIS on 01/04/2019 at 7:33 am

by CAPIS

01/04/2019 at 7:33 am

In After Hours Trading

IPOs on deck: IPOs will pick back up in the next couple weeks now that we are in 2019, Secondaries are back in business.

IPO Filings After The Close: none of note

Secondary Filings no common stock or mixed shelf offering announced.

Courtesy of IPO Financial

Earnings From After the Close:

Beat Estiamtes: RECN +.10

Missed Estimates: LNDC -.01

Mixed Guidance: LNDC

News After The Close:

Square (SQ) hires Amrita Ahuja as new CFO, currently the CFO of Blizzard Entertainment a unit of ATVI who also lost their CFO to Netflix (NFLX) this week.

Reata Pharmaceuticals (RETA) completes Phase 2 meeting with FDA for Phase 3 clinical trial of bardoxolne methyl for Polycystic Kidney Disease (PKD).

Jazz Pharmaceutical (JAZZ) and Codiak Biosciences announce strategic deal on exosome therapeutics.

Leidos Health Sciences (LDOS) received fast track patent for novel peptide based PD-1 checkpoint inhibitors from the U.S. Patent and Trademark Office.

API Petroleum Data saw a draw of 4.46 million barrels for Crude Oil and Gasoline had a build of 8 million barrels.

Repurchase Announcements: NMFC

Hourly Action This Past Week:

Stocks were weak yesterday with stocks up only from 11:00 to 12:00 p.m. EDT.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning:

U.S. futures: S&P +29, Dow Jones +253,  NDX +90 and Russell 2000 +17.3 with fair values MIXED. Asia higher with the exception of the Nikkei which reopened after being closed for the week and Europe week this morning.

Gold and silver lower with copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 122.69 with yields lower since Thursday morning. Prices as of 8:15 a.m. EDT.

Top Sectors Thursday: Conglomerates and Utilities were the only positives.

Weakest Sectors Thursday: Technology, Consumer Goods, Industrial Goods and Services.

One Month Winners: None.

Three Month Winners: None.

Six Month Winners: None.

Twelve Month Winners: Nonw.

Pending Earnings Of Note:

Friday After the Close: none of note

Monday Before The Open: CMC

Earnings This Morning Of Note:

Beat Estimates: CALM +.06 ANGO +.01

Missed Estimates: RPM -.15

Rags & Mags:

Top Story: Peoples Bank of China (PBOC) to initiate two 50 basis point rate cuts, 1/15 and 1/25.

U.S./China Trade Talks to talk place next Monday and Tuesday, led by USTR Jeffrey Gerrish to lead talks. (Bloomberg)

President Trump considers Jim Webb for Secretary of Defense. (NYT)

Tesla (TSLA) to start China deliveries of the Model 3 in March. (Reuters)

Gamestop (GME) searches for  new CEO and complee overhaul. (WSJ)

Gold pops above $1300. (Bloomberg)

Federal Reserve Chairman Powell’s reliance on data now sees some of it looking grim. (Bloomberg)

House defies President Trump and votes to fund the government with no money for “the wall”. (Washington Post)

Top Republican predicts government shutdown could last months. (The Daily Beast)

Date Points:

Yesterday saw 1188 stocks rise and 1755 fall on the NYSE. NASDAQ saw 944 rise and 2123 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. All three indexes broke back below their 5 and 10 day moving averages.

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  26% (+2%) of stocks are higher and 74% (-2%) are lower. Updated 12/28/18 close with next update on 1/4/19 close.

Federal Reserve Bank of New York Research Piece Released: The Impact Of Import Tariffs on U.S. Domestic Policies.

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 all close below support which was the first puke day since the Christmas Eve Massacre.

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:

China Services PMI came in better than expected at 53.9 versus 52.9 estimate.

Monthly Nonfarm Payrolls are due out at 8:30 a.m EDT and are expected to rise to 180,000 from 155,00. The unemployment rate is expected to remain at 3.7%. *Note ADP came in hot at 271,00 which leads this data number.

Both Weekly Crude Oil and Natural Gas Inventories are due out at 10:30 a.m. EDT due to the shortened trading week.

Politico:

Federal Reserve Chairman Jerome Powell to speak in a forum with former Federal Reserve Chaiman Bernanke and Yellen. Time is 10:15 a.m. EDT.

Federal Reserve Atlanta President Bostic as speaks at 10:15 a.m. EDT as he moderates the above.

Federal Reserve Cleveland President Loretta Mester to be interviewed on Bloomberg TV this morning.

The government shutdown continues as no agreements reached.

The House passed two government funding bills to restart the government. The Senate will not vote on the bills. Stalemate continues.

Congressional leaders are due back at the White House at 11:00 a.m. EDT to work with President Trump on a deal.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Calls: JAZZ MNKD FLXN

Sellside Conferences: Goldman Sachs Annual Healthcare CEOs Unscripted.

Industry Conferences: None of note.

M&A News & Rumors

Rumors are out post the WSJ article on Gamestop (GME) that bidders will appear.

Orasure (OSUR) acquires CoreBiome & Novosanis, terms not disclosed.

Upgrades & Downgrades

Gap Up and Downs Pre Market: AMID +30% GME +13% NVAX +10.30% RECN +9%LNDC -7% FLXN -5%

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