09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

Morning Note


Morning Note

"Morning Note 3/5/19"

posted by CAPIS on 03/05/2019 at 7:26 am


03/05/2019 at 7:26 am

In After Hours Trading

IPOs on deck This Week: Two new IPOS were on deck for this week Shock Wave Medical and Futu Holdings.

IPOs on deck for Today: None of note.

Secondaries on deck:  BL HTZ of note.

Convertibles on deck: ARCC of note.

IPO Filings Announced After The Close: No common stock offerings filed today.

Announcements For Secondary Filings & Financings:   mixed shelf offering.  ASND NVTA HZNP BL EAF PS  file common stock offering. HZNP NVTA  files ordinary shelf offering. PS files a convertible offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat: HUYA +0.22,  CTRP +0.17, CRM +0.15, YY +0.04, STRL +0.02 

Flat: None of note.

Missed: None of note.

Positive Guidance: CTRP HUYA 

Mixed Guidance: CRM.

Negative Guidance: STRL

News After The Close:

WEX CNNE LIVN DPLO file to delay 10-K.

NextEra Energy’ (NEE) unit FP&L to build 4 solar power plants in 2019.

NASDAQ (NDAQ) U.S. Equity Options Volume was 121 million versus 144 in January and 155 a year ago.

USA Tech (USAT)  receives a NASDAQ delisting notice.

Lockheed Martin (LMT) get $950 million Missile Defense contract.

Stock Repurchase: RCKY GME FCF  JHG AAON

Dividend Increases: 

Notable Recent Insider Transactions Since 2/28: TSLA CTO sells 15,000 shares. GDDY Director sells 5.17 million shares. IT CEO sells 90,900 shares. GPRO CEO sells 1.40 million shares.

Hourly Action This Past Week:

Yesterday saw indexes gap open and then sell off until 1:00 p.m. EST. From there we rallied.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures trade flat overnight then rallied from 3:00 a.m. to 4:00 a.m. before coming back to flat for the day.

U.S. futures: S&P +0.75, Dow Jones -2, NDX -1.25 and Russell 2000 +1.10 with fair values HIGHER TURNING GAINS TO FLAT. Asia lower with China higher and Europe lower with FTSE higher.

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 121.69 with yields lower since Monday morning with the yield at 2.737 from 2.749% . Prices as of 8:15 a.m. EST.

Top Sectors Monday: Conglomerates, Utilities and Materials.

Weakest Sectors Monday: Healthcare, Technology and Industrials.

One Month Winners: Industrial Goods, Conglomerates,Technology and Services.

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

Six Month Winners: Utilities.

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

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

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



Earnings This Morning Of Note:

Beat Estimates:  KSS +0.06, WB +0.05, CIEN +0.03, BEST +0.02, TGT +0.01, GSKY +0.01

Flat: TPB

Missed Estimates: GNC (0.16), AFI (0.14), GMS (0.10), SINA (0.09)

Yet To Report: BNED JWN NIO 

Rags & Mags:

Top Story: China lowers growth outlook and expands stimulus. (Bloomberg)

5 Things You Need To Know To Start Your Day – (Bloomberg) China lowers growth. EU data came in better. President Trump get tough on India and Turkey on trade. Markets mixed.

Secretary of State Mike Pompeo in a speech last night noted “on the cusp” of ending trade war with China. (Washington Examiner)

Attorney General William Barr will not recuse himself in Mueller probe. (Bloomberg)

Russian money laundering scandal with European banks widens. (Bloomberg)

Papa John’s (PZZA) founder John Schnatter to resign from board and reaches settlement on new board member.  (Bloomberg Radio)

FDA Commissioner Scott Gottlieb interview on CNBC this morning. (CNBC TV)

Second patient potentially cured of HIV. (NYT)

Data Points:

Yesterday saw 1240 stocks rise and 1638 fall on the NYSE. NASDAQ saw 1149 rise and 1918 fall. The 10 day moving average (DMA) is fading. This needs to be watched.

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 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  20 day moving averages. The Russell 2000 is now back below its 5 day moving average and above its 10 and 20 day moving average. The S&P 500 and the Dow Jones Industrial Average also moved back below their 5 day moving averages. The Dow is also back below its 10 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 when it ends below -200 for two straight days, which right now seems far away.

Courtesy of Quantitative Partners, Inc.

YTD 88% of stocks are higher and 12% are lower. Updated 3/1/19 close with next update on 3/8/19 close.

Courtesy of Phil Erlanger Research, Inc.


The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. Yesterday was a struggle with the Russell and Dow closing below support.

Courtesy of Phil Erlanger Research

The Value Lines may be accessed via Bloomberg. For a free trial go to APPS: ERLA <GO>

Economic & Related:

February ISM Non-manufacturing Index is due out at 10:00 a.m. EST and is expected to rise to 57.2 from 56.7.

December New Home Sales are due out at 10:00 a.m. EST and came in last month at 657,000.

The Treasury Budget is due out at 2:00 p.m. EST and came in last month at $49.2 billion.


Federal Reserve Boston President Eric Rosengren  speaks at 7:30 a.m. EST.

President Trump has a quiet day with only Executive Order Signing Ceremony for helping veterans.

Equifax (EFX) and Marriott (MAR) to testify on Thursday before Senate on last year’s data breaches.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: LITE( at OFC 2019), H (investor day), SPXC (investor day), CVX (analyst meeting).

Sellside Conferences: Citi Global Property CEO Conference. Raymond James Annual Institutional Conference. Daiwa Annual Investment Conference.  Piper Jaffray Mogul Conference. Morgan Stanley Global Energy & Power Conference. Morgan Stanley Utilities, Clean Tech and Midstream Energy Conference.

Industry Conferences: South By Southwest Conference.

M&A News & Rumors:

Gap Inc. (GPS) buys Janie & Jack from Gymboree for $35 million and inventory at cost.

Pacira Pharmaceutical (PCRX) to buy MyoScience, Inc for $120 million with potential for additional $100 million in milestone payments.

Upgrades & Downgrades:

Pre-Market Movers:

Winners: CTRP +11%, HUYA +9%, TGT +6%, GME +5%.

Losers: USAT -9%, PS -7%,

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