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Morning Note

News

Morning Note

"Morning Note – 2/11/19"

posted by CAPIS on 02/11/2019 at 7:25 am

by CAPIS

02/11/2019 at 7:25 am

In After Hours Trading

IPOs on deck:  Five on deck for this week including Avedro, Cibus Global, Stealth BioTherapeutics, TCR2 Therapeutics and Virgin Trains USA LLC.

Secondaries on deck: No Secondaries to be priced this morning . 

IPO Filings After The Close  No common stock offerings today.  

Announcements For Secondary Filings & Financings PTE files mixed shelf offering. MTCH senior notes.

Courtesy of IPO Financial

Earnings After The Close:

Beat: CCJ +0.28

Dividends Increased: VMC

News After The Close:

Skywest (SKYW) sees block hours rise +5.6% up 117,600. Departures +1.7%. Passengers +6.7%. Load factor fell 0.4 to 74.9.

Fitch affirms Greece’s Long Term Foreign Currency Issuer Default Rating (IDR) at BB- and stable.

Moody’s upgrades Russia from Baa3 to Ba1 outlook goes to stable from positive.

Smith & Nephew (SNN) may bid for NuVasive (NUVA) per the Financial Times, deal could exceed $3 billion.

Allegiant Travel (ALGT) reports January Passengers -0.8%. Revenues Per Mile -1.5%. Load factor 0.1 to 80%.

Hourly Action This Past Week:

Intraday action remains strong since the beginning of the year. However last week saw mixed action.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures 

U.S. futures: S&P +10.75, Dow Jones +104,  NDX +38.50 and Russell 2000 +5.40  with fair values HIGHER WEAKENING THE OPEN.  Asia  and Europe higher (for country change click through)

Gold and silver higher with copper lower. WTI Crude and Brent Oil Futures loweer. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 122.28 with yields lower since Friday morning with the yield at 2.648%. Prices as of 8:15 a.m. EDT.

Top Sectors Friday: Utilities, Technology and Healthcare.

Weakest Sectors Friday: Conglomerates, Materials, Services and Financials.

One Month Winners:  Industrial Goods, Technology, Utilities, Consumer Goods and Financial.

Three Month Winners: Utilities, Industrial Goods and Technology.

Six Month Winners: Utilities.

Twelve Month Winners: Utilities, Healthcare and Conglomerates.

Year to Date: All higher led by Industrial Goods, Conglomerates, Materials, Services, Technology and Financials.

Upcoming Earnings Of Note (sorted by market cap, highest to lowest):

Today After The Close: VMO FMC RE MOH OHI RNG ACB BRKR DNB BRX VIPS DCP BHF of note. 

Tuesday Before The Open: FIS WEC SHOP OMC TAP MLM STE UAA NNN USFD IPGP JLL SABR HUN MDSO of note.

Earnings This Morning Of Note:

Beat Estimates:  GPRE +1.64, MDP +0.24, KMPR +0.12, NSP +0.04, QSR +0.01

Flat: None 

Missed Estimates: CAN (1.01), L (0.86), DO (0.02)

Rags & Mags:

Top Story: Inability to avoid a government shutdown will become the catalyst for the week. (Bloomberg)

5 Things You Need To Know To Start Your Day (Bloomberg) –   Shutdown talks stall, China talks restart, U.K. economy weakens, markets slump and oil bears.

Apple (AAPL) iPhone sales fall in China on Huawei strength. (Bloomberg)

2 Large Chinese Borrowers miss payments. (Bloomberg)

Average tax return sees refunds drop -8.4%. (CNBC)

Inside ETF Conference starts in Hollywood, FL  and here are the trends being discussed. (CNBC)

Activision (ATVI) plans hundred of job cuts. (Bloomberg)

Prices of household staples rise for a second year. (WSJ)

Technical signals point to bullish instead of bearish market after reversal. (WSJ) We disagree and will highlight tomorrow.

Data Points:

Yesterday saw 1393 stocks rise and 1469 fall on the NYSE. NASDAQ saw 1525 rise and 1476 fall.

The SP 500 is still above its 50 day simple moving average but remains below its 200 day simple moving average. The Russell 2000 is also above its 50 day simple moving average but below its 200 day simple moving average. The Dow is also above its 50 day simple moving average  but remains below its 200 day simple moving average.  All three indexes are now above their 10 and 20 day moving averages. All three indexes have failed at their 5 day moving average.

The QPI10 Day Moving Average of Breadth (10DMA) moved to buy on January 7th at 2549.69. For a move to a buy from cash, the 10DMA needed to have two days in row above +200 which happened January 7th. The next move will be to cash or sell. Watch closely.

Courtesy of Quantitative Partners, Inc

YTD  88% of stocks are higher and 12% are lower. Updated 2/1/19 close with next update on 2/8/19 close.

Courtesy of Phil Erlanger Research, Inc.

Trading:

Yesterday was a mixed day that saw a late rally.

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:

None of note.

Politico:

U.S. and China Mid Level TradeTalks in China with Treasury Secretary Mnuchin.

Federal Reserve Board of Governors Member Michelle Bowman to speak at 11:00 a.m. EST.

Conferences & Analyst Meetings: Credit Suisse Annual Financial Services Forum and Goldman Sachs Technology & Internet Conference.

Analyst Meetings/Notable Conference Call: NSC RICK.

Sellside Conferences: None of note.

Industry Conferences:Daytona Speedweeks, Chicago Autoshow, PETROTECH 2019, Asssociation for Research in Otolaryngology, BIO CEO & Investor Conference.

M&A News & Rumors:

Gray Television (GTN) to buy United’s television stations for $45 million. Deal is immediately free cash flow accretive.

Morgan Stanley (MS) will buy Solium Capital for $900 million.

Ingersoll Rand (IR) makes offer to buy Precision Flow Systems for $1.45 billion.

Significant Upgrades (to buy) & Downgrades (to sell or underweight)

Pre-Market Movers:

Winners: NUVA +15%, GRPN +6%, AKS +6%, CAR +6%.

Losers: SNN -6%, OSTK -4%, GFI -4%.

DISCLAIMER

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