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Morning Note

News

Morning Note

"CAPIS Morning Note – 5/30/19"

posted by CAPIS on 05/30/2019 at 7:37 am

by CAPIS

05/30/2019 at 7:37 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:  Proficient Alpha Acquisition Unit (PAACU) and GigCapital2 (GIX/U) of note.

Secondaries on deck:  APTO of note.

Notes Priced: CNO of note.

Other Filings of Note:  TWLO files mixed shelf offering. FOLD MYOV files common stock offering.  files senior notes. MFA EMPH files convertible offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  KEYS +0.23, VRNT +0.11, PANW +0.06, VEEV 0.50, PVH +0.01, SMTC +0.01 of note.

Flat: TLYS

Missed: QADA (0.06), DSGX (0.04)

Still To Report: 

News After The Close:

PC Connections (CNXN) is one of six IT solution providers selected for $3.2 billion Department of Defense Contract.

Stock Repurchase: None of note.

Dividend Increase: None of note.

Hourly Action This  Week:

So far this week 2 hours are positive and 5 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 +7, Dow Jones +36 NDX +19   and Russell 2000 +4 with fair values HIGHER LESSENING THE GAIN. Asia mixed and Europe mixed, click through for details by country.

Gold flat with silver lower and copper lower. WTI Crude higher and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price $125.38 from $125.69 with yields higher since Wednesday morning with the yield at 2.26% from 2.229%. Prices as of 8:25 a.m. EDT.

Top Sectors Wednesday:  None.

Weakest Sectors Wednesday: Healthcare, Utilities, Services,Consumer Goods and Industrials.

One Month Winners: None.

Three Month Winners:  Conglomerates, Consumer Goods and Technology.

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:   COST VMW ULTA MRVL COO OKTA ZS GPS NTNX WSM ZUO YEXT RRGB of note.

Friday Before The Open:  BIG GCO of note.

Earnings This Morning Of Note 

Beat: CSIQ +0.28, EXPR +0.16, BITA +0.14, DG +0.09, TECD +0.07, TITN +0.07, NGL +0.04, SY +0.01, DBI +0.01, BURL +0.01 of note.

Flat:  DLTR of note.

Missed: JILL (0.07), MOV (0.07), SAFM  (0.04), SPWH (0.03) of note.

Still To Report:  of note.

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

Top Story: China puts U.S. soybean sales on hold due to trade dispute. (Bloomberg)

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

Israel fails to form a government with the current election so will hold another election. (NYT)

Illinois Senate passes bill to legalize marijuana now heads to the Illinois House. (Chicago Tribune)

Boeing (BA) CEO apologizes to families of 737 Air Max crashes. (CNBC)

China claims U.S. is practicing “economic terrorism”. (CNBC)

Data Points

The S&P 500 and S&P 100 tested and held their 200 day moving averages.

Yesterday saw the adline/decline line saw more 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 struggled again.

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:

API Petroleum Institute Data out at 4:30 p.m. EDT saw a draw of 5.265 million barrels of Crude Oil while Gasoline had a build of 2.711 million barrels.

Q1 GDP (second update) is due out at 8:30 a.m. EDT and are expected to fall to 3.1% from 3.2%.

April Pending Home Sales are due out at 10:00 a.m. EDT and are expected to have to 1.0% from 3.8%.

Weekly Jobless Claims are due out at 8:30 a.m. EDT.

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

Weekly Natural Gas Inventories are due out at 11:00 a.m. EDT.

Geopolitical: 

President Trump heads to the Air Force Academy to deliver the commencement address.

Federal Reserve Vice Chairman Richard Clarida speaks at 12:00 p.m. EDT.

Conferences & Analyst Meetings:  

Analyst Meetings/Notable Conference Call: MOH ESPR EVH  WM(investor day) 

Sellside Conferences:  Bank of America Merrill Lynch Emerging Market Debt & Equity Conference. KeyBanc Capital Markets Industrials and Basic Materials Conference. Bernstein Strategic Decisions Conference.  Morgan Stanley Annual China Summit. Cowen & Co Annual Technology, Media and Telecom Conference. Ladenburg Thalman Tech Conference. Keefe Bruyette & Woods Real Estate Finance and Asset Mgmt Conference. KeyBanc Automotive, Industrial and Transportation Conference. D.A. Davidson Consumer Growth Conference.

Industry Conferences: None of note.

M&A Activity

Palo Alto Networks (PANW) acquires TwistLock for $410 million in cash.

American Tower (AMT) to buy Eaton Tower Holdings, no terms yet.

Upgrades & Downgrades

Laughable Downgrade: A day late on GOOS.

Early Morning Gap Up/Down:

Gap Higher: BITA +9%, KEYS +8%, VEEV +8%, EXPR +7%,  SY +7%, DBI +6%, CSIQ +5%,

Gap Lower: TLYS -13%, PVH -11%, SOLY -11%, MYOV -8%, FOLD -7%, JILL -7%, PANW -6%, DSGX -6%,

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