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Morning Note

News

Morning Note

"Morning Note -2/22/19"

posted by CAPIS on 02/22/2019 at 7:20 am

by CAPIS

02/22/2019 at 7:20 am

In After Hours Trading

IPOs on deck This Week:  Two on deck were scheduled for this week including Acamar Partners Acquisition and DiamondPeak Holdings

IPOs on deck for Today: Acamar Partners Acquisition (ACAMU).

Secondaries on deck:  of note. 

Senior Notes on deck: BHC of note.

Convertibles on deck: OCUL of note.

IPO Filings Announced After The Close  Nocommon stock offerings filed today.  Potential for Lyft to file next week.

Announcements For Secondary Filings & Financings:  CBS files senior notes. APC files mixed shelf offering. XOG common stock (selling stockholder)

Courtesy of IPO Financial

Earnings After The Close:

Beat: STMP +.83 XOG +.45 DXCM +.38 CZR +.36 TTD +.30 AL +.22 ANIK +.22 HCC +.21 ATUS +.19SWM +.19 FLR +.16 INTU +.14 BEAT +.13  KEYS +.13 BLUE +.12 BIDU +.11 CATM +.10 CENX +.10 BOOM +.10 KL +.10  (+.10 or greater was cut off)

Flat: 

Missed: BVN -.38 ZG -.29  VERI -.27 BMRN -.18 EVRG -.17 FSLR -.15 FIX -.15 TGH -.14 KHC -.10 (-.20 or worse was the cutoff)

News After The Close:

Pinterest has filed for IPO. (WSJ)

Zillow (ZG) co-founder Rich Barton back as CEO after Spencer Rascoff steps down.

MGM Resorts (MGM) names Corey Sanders CFO.

Boingo Wireless (WIFI) names Mike Finley CEO as of March 18th, reaffirms guidance.

Exact Sciences (EXAS) announces they will stop providing numbers on Cologuard in 2020.

LPL Financial (LPLA) sees assets rise to $661 billion up +5%.

Boeing (BA) picks up Air Force contract for $260 million with completion in 2029.

Stamps.com (STMP) loses its exclusive with U.S. Postal Service. President Kyle Huebner to resign as of May 2nd.

Dividend Increase: OLED AHH  PLD ESS DLR SRE TTEC

Dividend Cut: KHC

Stock Repurchase Announcement: CASA 

Stock Split: WRB

Index Changes: Wabtec (WAB) to join S&P 500 and Goodyear Tire (GT) to join S&P Midcap 400.

Hourly Action This Past Week:

Intraday action remains strong since the beginning of the year but the last two weeks have seen mixed action. The open is better this week and the afternoon is being sold.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures have turned higher overnight as we came into 6:00 a.m. EST.

U.S. futures: S&P +11, Dow Jones +114,  NDX +36.75 and Russell 2000 +4.60  with fair values HIGHER CUTTING INTO OPEN Asia mixed  and Europe higher (for country change click through)

Gold lower with silver and copper higher. WTI Crude higher and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 121.91 with yields higher since Thursday morning with the yield at 2.681% from 2.672%. Prices as of 8:15 a.m. EDT.

Top Sectors Thursday: Utilties.

Weakest Sectors Thursday: Materials, Healthcare, Conglomerates and Financials.

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

Three Month Winners: Technology, Industrials, Utilities and Services.

Six Month Winners: Utilities.

Twelve Month Winners: Utilities, Healthcare, Conglomerates and Services.

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: None of note.

Monday Before The Open:   PLAN CRI AWI DORM TEN KOS NSA FI MDR AG EGRX EMES of note.

Earnings This Morning Of Note:

Beat Estimates: MNTA +.46 VLRS +.22 WPC +.19 W +.18 ITT +.08 ERF +.07 HMSY +.06 TVPT +.06 MGA +.03 B +.02 RUTH +.01.

Flat:

Missed Estimates: CNK -.26 RCM -.12 TDS -.10 ASIX -.07 AN -.06 RY -.05 COT -.03. COG -.03. 

Rags & Mags:

Top Story: President Trump to meet with Chinese Vice Premier Liu as trade talks conclude. (Bloomberg)

5 Things You Need To Know To Start Your Day (Bloomberg) –  Trump meets with Liu, Brexit delay, Draghi to speak today, markets mixed and minor economic data ex U.S.

KraftHeinz (KFC) cuts dividend, brands lose appeal and SEC begins investigation. (Bloomberg)

Warren Buffet annual shareholder letter out tomorrow and will appear on CNBC next Monday morning. (CNBC)

Barrick Gold (GOLD) considering bid for Newmont (NEM). (Globe and Mail)

Ford (F) looks at fuel economy reporting issues. (CNBC)

Tesla (TSLA) begins sales of Model 3 in China. (Reuters)

Data Points:

Yesterday saw 1101 stocks rise and 1743 fall on the NYSE. NASDAQ saw 1283 rise and 1780 fall. It was the first day since February 7th where the NYSE and NASDAQ struggled with their advance/decline lines.

The SP 500 is still above its 50 and 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 and 200 day simple moving average.  All three indexes are now above their 5, 10 and 20 day moving averages.

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 which right now seems a long ways off but a couple more days like Thursday may cause a signal change.

Courtesy of Quantitative Partners, Inc

YTD  88% of stocks are higher and 12% are lower. Updated 2/15/19 close with next update on 2/22/19 close.

Courtesy of Phil Erlanger Research, Inc.

Trading:

Yesterday saw all indexes close below support. We have been getting one weak day each week. So in theory we should rally today. If we fail, that could change the pattern.

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:

China Mid Level Trade Talks  end this week in Washington D.C.

President Trump to meet with Chinese Vice Premier Liu at 2:30 p.m. EST.

Multiple Federal Speakers -Federal Reserve Board of Governors Vice Chairman Richard Clarida at 12:00 p.m. EST, Federal Reserve Board of Governor Randall Quarles at 1:30 p.m. EST, Federal Reserve Philadelphia President Patrick Harker at 1:30 p.m. EST,  Federal Reserve St. Louis President James Bullard at 1:30 p.m. EST and after the close Federal Reserve New York President John Williams at 5:30 p.m. EST.

The House Committee on Oversight and Reform to question President Trump’s Attorney Michael Cohen on 2/27/19 at 10:00 a.m. EST.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: BMY ANIX (Moffitt Cancer Center Business of Biotech Conference)

Sellside Conferences: 

Industry Conferences: Consumer Analysts Group of New York Conference. The American Academy of Allergy, Asthma, & Immunology Annual Meeting.

M&A News & Rumors:

Casa Systems (CASA) to buy Netcom Wireless for $161 million.

German American Bancorp (GABC) to buy Citizens First Corporation (CZFC) will be accretive during first 12 months.

Vail Resorts (MTN) to buy Falls Creek and Hotham in Victoria, Australia.

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

Worst Downgrade: STMP is downgraded after dropping -48%. Maybe the analyst should have been looking into the odds of STMP losing its exclusive contract with the Post Office.

Pre-Market Movers:

Winners: XOG +23%, BOOM +18%, TTD +13%, TXMD +11%, SWM +10%, PAGS +9%, CATM +9%, ROKU +6%, OLED +6%, FIX +5%, W +5%, COLD +5%, TI +5%

Losers: STMP -47%, KHC -20%, NHTC -17%, CASA -16%, BJRI -12%, MDRX -11%, AAOI -10%, UCTT -8%, TGH -8%, EGO -7%, APPN -7%, FSLR -6%, DBX -5%, INFN -5%, EVRG -5%.

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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.