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Morning Note

"Morning Note – 2/27/19"

posted by CAPIS on 02/27/2019 at 7:21 am

by CAPIS

02/27/2019 at 7:21 am

In After Hours Trading

IPOs on deck This Week:  Two new IPOS on deck for this week include Kaleido Biosciences and Super League Gaming

IPOs on deck for Today: None of note.

Secondaries on deck:  DHR QTS RARE FND ACIA APRN TSG VNOM of note. 

IPO Filings Announced After The Close:  No common stock offerings filed today.  Potential for Lyft to file this week.

Announcements For Secondary Filings & Financings  ZBH GE KAI MASI files mixed shelf offering.  EQIX NYMT ALDR VNOM VSI  file common stock offering.  LPSN convertible offering. HIW notes filing. PSEC convertible filing.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  ARNA +2.08 JAZZ +.51 CPE +.48 PANW +.29 CSGP +.28 TNDM +.22 MGRC +.21 FTR +.20 INGN +.19 SUPN +.19 DRQ +.16 TOL +.15 CW +.15 IMMR +.14 MASI +.10 MTDR +.10 MED +.10  INSP +.10  ELF +.09 MELI +.06 RRGB +.06

Flat: 

Missed: TIVO -2.21 WLL -.57 HY -.51 NBR -.37 WTTR -.35 BGS -.16 AKCA -.13 EOG -.12 SE -.08 OAS -.06 MYL -.06.

Positive Guidance: JAZZ TNDM MED INSP

Negative Guidance: SUPN ELF RRGB

News After The Close:

Dean Foods (DF) to explore and evaluate potential strategic alternatives, i.e. they are putting themselves up for sale.

Agios Pharmaceutical (AGIO) Chief Commercial Officer Steven Hoerter to resign 3.15 to accept CEO role at oncology focused biotech company.

Tupperware (TUP) names Sandra Harris as EVP and CFO as of 4.1.

e.l.f. Beauty (ELF) to exit stand alone retail stores and CFO resigns.

Infinera (INFN) to delay 10K by 15 days due to acquisition of Coriant.

General Electric (GE) 10K and Letter to Shareholders out.

Lockheed Martin (LMT) picks up $850 million Navy Contract.

House votes to block President Trump’s National Emergency Declaration.

Dividend Increase: MRTN MGRC ALB TMO AGO MAIN

Stock Repurchase: GPS AMP

Index Changes: Livent (LTHM) to replace Bristow Group (BRS) in the S&P 600.

Hourly Action This Past Week:

Monday’s intraday action was the worst action since January 3rd when all three indexes were each only up for one hour. Monday saw the the Dow and the S&P 500 trade up in only one hour while the Russell 2000 traded up during two of the hourly sessions. On January 4th, all three indexes traded higher in five of the seven hourly sessions. Will a reversal hold for today?

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures have moved modestly lower until 4:00 a.m. EST and then have moved higher by 5 points on the S&P 500 as we came into 7:00 a.m. EST.

U.S. futures: S&P -6.25, Dow Jones -64,  NDX -19.50 and Russell 2000 -3.40  with fair values HIGHER WORSENING THE PAIN. Asia and Europe lower.

Gold, silver and copper higher. WTI Crude higher and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price 122.33 with yields lower since Tuesday morning with the yield at 2.634% from 2.657%. Prices as of 8:15 a.m. EST.

Top Sectors Tuesday: Consumer Goods and Services.

Weakest Sectors Tuesday: Industrials, Conglomerates and Healthcare.

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

Three Month Winners: Technology, Industrials and Services.

Six Month Winners: Utilities.

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

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

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

Today After The Close:  BKNG HPQ MNST SQ ANSS APA UHS QRTEA BGNE LB PRAH ESTC PRGO PK CABO of note.

Thursday Before The Open:  BUD TD ABB KDP CM JD CNP VST NRG NLSN LKQ STWD SYNH VAC of note.

Earnings This Morning Of Note:

Beat Estimates: IONS +2.21 UTHR +.79 OCN +.42 CHK +.31 AMT +.25 SBGI +.20 MIDD +.16 FTDR +.16 BBY +.14 HZNP +.13 MGPI +.13 NTLA +.11 CLH +.07 CPB +.07 NOVT +.05.

Flat:

Missed Estimates: NEWM -.24 DF -.24 GTE -.09 RDC -.08 HWLP -.07 DY -.06 MDCO -.05 AMRN -.03 TAST -.03 WAAS -.02 MDGL -.01

Rags & Mags:

Top Story: President Trump Meeting with North Korean President Kim Jon Un meet in Vietnam. (CNBC)

5 Things You Need To Know To Start Your Day – . (Bloomberg) Pakistan and India escalate. Powell Testimony Day 2. Brexit pushed. Markets mixed. North Korea Summit.

OPEC welcomes a discussion on the price of oil with President Trump. (Reuters)

Pakistan shoots down Indian plane as tensions escalate between India and Pakistan. (Reuters)

Cohen Opening Statement released. (CNBC)

Robots to deliver FedEx (FDX) packages. (USA Today)

U.A.E. goes with Huawei despite U.S. pressure. (NYT)

Data Points:

Yesterday saw 1195 stocks rise and 1670 fall on the NYSE. NASDAQ saw 1190 rise and 1857 fall. The fifth day this month the advance/decline line was negative.

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 and now back below its 200 day simple moving average. The Dow is also above its 50 and 200 day simple moving average.  The Dow and the S&P 500 are now above their 5, 10 and 20 day moving averages. The Russell 2000 is back below its 5 day moving average but is above its 10 and 20 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 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  89% of stocks are higher and 11% are lower. Updated 2/22/19 close with next update on 3/1/19 close.

Courtesy of Phil Erlanger Research, Inc.

Trading:

Yesterday saw the Russell 2000 close below support while the S&P 500 and Dow closed pivot to support. We have been getting one weak day each week. That trend remans intact UNLESS we get more weakness the rest of this week.

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:

API Petroleum Weekly Data sees Crude Oil Inventories draw 4.215 million barrels. Gasoline had a draw of 3.883 million barrels. Positives for the price of oil and gasoline.

MBA Mortgage Application Index rose 5.3% from 3.6% this morning.

December Factory Orders are due out at 10:00 a.m. EST and are expected to rise by 1.0% from a drop of -0.6%.

January Pending Home Sales are due out at 10:00 a.m. EST and are expected to improve to -0.4% from -2.2%.

Weekly Crude Oil Inventories are due out at 10:30 a.m. EST.

Geopolitical:

Federal Reserve Chairman Jerome Powell will conclude his second day of testimony  as he delivers the second day of the semi-annual Humphrey Hawkins Testimony before the House.

The House Committee on Oversight and Reform to question President Trump’s Attorney Michael Cohen.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: HAIN (investor day), RF (investor day) and SRPT (conference call with drug update).

Sellside Conferences: Morgan Stanley Telecom, Media, Technology Conference.  BMO Metals & Mining Conference. Leerink Partners Global Healthcare Conference.

Industry Conferences: Mobile World Congress and EnerCom Dallas 2019 Oil & Gas Conference.

M&A News & Rumors:

Raymond James (RJF) takes stake in ClariVest  Asset Mgmt to 100%.

Campbell Soup (CPB) sells Garden Fresh Gourmet to affiliate of Fountain Health USA.

Upgrades & Downgrades:

Quick Comment: Few legitimate recommendations that move the needle today.

Pre-Market Movers:

Winners: TNDM +19%, FTR +15%, OPRX +15%, MAXR +11%, PANW +11%, GWPH +9%, DF +9, MELI +9%, JAZZ +8%, PUMP +7%, SUPN +7%, LTHM +7%, IMAX +7%, INSP +6, WMGI +6%, SE +6%, INN +5%, AMRN +5%.

Losers: WTW -35%, ELF -20%, KPTI -16%, EVH -15%, VICR -13%, ADMP -13%, MYL -11, WLL -11%, BNFT -10%, INGN -9%, TIVO -9%, NBR -9%, CLGX -9%, HPR -7%, PEN -7%, BGS -6%, CERS -6%, DY -6%, VNOM -5%.

 

 

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