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Morning Note

News

Morning Note

"CAPIS Morning Note – 05/29/19 Trade Concerns Continue"

posted by CAPIS on 05/29/2019 at 7:38 am

by CAPIS

05/29/2019 at 7:38 am

Corporate Actions

IPOs on deck for This Week:  We now head into summer trading for IPOs with two deals this week.

IPOs on deck for Today:  Blue Hat Interactive Entertainment (BHAT) of note.

Secondaries on deck:  HLI INVH SUI of note.

Notes Priced: None of note.

Other Filings of Note:  SCOR files mixed shelf offering. SUI AIN INVH files common stock offering.  files senior notes.

Courtesy of IPO Financial

Earnings After The Close:

Beat: CMCO +0.21, HEI +0.11, NXGN +0.07, RAMP +0.04, WDAY +0.02 YY +0.02 of note.

Flat:

Missed:

Still To Report: 

News After The Close:

Plug Power (PLUG) announces agreement with StreetScooter.

Canada suspends Allergan (AGN) licenses for Biocell breast implants.

Current CFO to leave CSX Corp (CSX).

TrueCar (TRUE) names Noel B. Watson as CFO.

Treasury Department releases report on f/x practices of major trading partners to the U.S.  Nothing earth shattering.

Stock Repurchase: HUBG

Dividend Increase: BMO

Hourly Action This  Week:

Last week saw 4 hours that were positive and 3 that were negative. 3:00-4:00 was higher for week.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 have been dropped since yesterday’s close.

U.S. futures: S&P -17.50, Dow Jones -174 NDX -61 and Russell 2000 -10.60 with fair values LOWER LESSENING THE PAIN. Asia mostly lower and Europe lower, click through for details by country.

Gold and silver higher with copper lower. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price $125.69 from $125.10 with yields lower since Tuesday morning with the yield at 2.229% from 2.29%. Prices as of 8:25 a.m. EDT.

Top Sectors Tuesday:  Conglomerates.

Weakest Sectors Tuesday: Healthcare, Utilities, Consumer Goods and Industrials.

One Month Winners: Healthcare and Utilities.

Three Month Winners:  Conglomerates, Utilities, Consumer Goods and Services.

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

Twelve Month Winners: Utilities, Healthcare and Services.

Year to Date: All higher led by Conglomerates, Services, Industrials, Technology and Consumer Goods.

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

Today After The Close:  PANW VEEV KEYS PVH VRNT DSOX SMTC GES QADA TLYS of note.

Thursday Before The Open:  DG DLTR BURL TECD SAFM DBI CSIQ MOV BITA TITN EXPR SPWK JILL of note.

Earnings This Morning Of Note 

Beat: WUBA +0.12, GOOS +0.04, DKS +0.04, BZUN +0.03, CPRI +0.02 of note.

Flat:  None of note.

Missed:  ANF (0.13), HMLP (0.07), HLNE (0.04), BMO (0.03) of note.

Still To Report:  DAKT of note.

Rags & Mags:Highlighted Stories may be clicked through to the original story.

Top Story: Trade Tariffs continue to weigh on markets.

Five Things You Need To Know To Start Your Day (Bloomberg)

Chinese state agency National Development and Reform Commission suggest using rare earths as leverage. (FT)

National Security Advisor John Bolton says no action planned against Iran. (WSJ)

Huawei asks U.S. Judge to overrule U.S. restrictions. (WSJ)

Qualcomm (QCOM) ask judge to put antitrust issue on hold. (Reuters)

Russia may seek to lower oil output along with OPEC. (Reuters)

McDonalds (MCD) CEO notes sales in China slowing. (CNBC Interview)

Secretary of State Mike Pompeo interviewed on Fox Business. (Fox Business)

Data Points

The Dow broke its 200 day moving average.

Yesterday saw the adline/decline line saw deterioration.

The QPI10 Day Moving Average of Breadth (10DMA) is no longer invested  and moved to cash on May 8th close. For a move to cash from buy, the 10DMA needed to have two days in row below -200. For now, the best offense is a good defense.

Courtesy of Quantitative Partners, Inc.

YTD 76% (-3% week over week) of stocks are higher and 24% are lower. Updated 5/24/19 close with next update on 5/31/19 close.

Courtesy of Phil Erlanger Research, Inc.

Algo/HFT Trading Levels:

The Erlanger Value Lines track the intraday range of resistance, pivot and support used by Algo/HFT Traders. Each day we show where we closed within the range.

All indexes closed under support. Ugly.

Courtesy of Phil Erlanger Research

The Value Lines may be accessed via Bloomberg. For a free trial if you are a Bloomberg user go to APPS CS:ERLA

Economic & Related:

MBA Mortgage Applications fell -3.3% week over week.

API Petroleum Institute Data out at 4:30 p.m. EDT.

Geopolitical: 

President Trump meets with several members of his cabinet as well as attending the swearing in of the new head of the EX-IM Bank.

Conferences & Analyst Meetings:  

Analyst Meetings/Notable Conference Call: PBI PEG    (investor day) DMRC ZYME (update)

Sellside Conferences:  Deutsche Bank dbAccess Global Financial Services Investor Conference. Bank of America Merrill Lynch Emerging Market Debt & Equity Conference. KeyBanc Capital Markets Industrials and Basic Materials Conference. Craig Hallum Institutional Conference. Bernstein Strategic Decisions Conference. Citi Retail Access Day. Barclays High Grade Healthcare Credit Conference. Oppenheimer Med Tech Day. Bank of America Merrill Lynch Renewable Energy Conference. Stifel Dental & Veterinary Conference. Morgan Stanley Annual China Summit. Raymond James Defense & Government Services Conference. Cowen & Co Annual Technology, Media and Telecom Conference. RBC Retail and Consumer Conference.

Industry Conferences: None of note.

M&A Activity

FireEye (FEYE) acquires Verodin for $250 million in cash and stock.

Meredith (MDP) to sell Sports Illustrated to Authentic Brands Group for $110 million.

Energizer (ENR) to sell Varta for $401 million.

Canadian Natural Resources (CNQ) to buy Devon (DVN) Canadian assets for $3.775 billion.

T-Mobile (TMUS) and Sprint (S) may sell Boost for $3 billion.

Morningstar (MORN) to buy DBRS for $669 million.

Upgrades & Downgrades

Early Morning Gap Up/Down:

Gap Higher: SOLY +27%, PLUG +12%, UXIN +10%, AMRN +9%, HEI +8%, YY +7%, ZIOP +7%, BLMN +6%, BDSI +5%.

Gap Lower: INO -17%, GOOS -9%, CPRI -6%. 

 

 

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