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Morning Note

News

Morning Note

"CAPIS Morning Note – 6/6/19"

posted by CAPIS on 06/06/2019 at 7:47 am

by CAPIS

06/06/2019 at 7:47 am

Celebrations of Heroes: 75 years ago the Bedford Boys from Beford, VA stormed Normandy and all 30 died. Never forget.

Corporate Actions

IPOs on deck for This Week:  We now head into summer trading for IPOs.

IPOs on deck for Today:  GigCapital2 (GIX/U) and GSX Techedu (GSX)

Secondaries on deck: ARES ATH AVLR BJ  DSGX DSS FRPT IIV ORTX QTWO VRRM 

Notes Priced:  

Other Filings of Note:   EQR files mixed shelf offering.   BJ FRPT files common stock offering.  I VST files senior notes.   COUP files convertible offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat:   CMTL +0.16, CLDR +0.10, SFIX +0.10, UNFI +0.09, SMAR +0.06, ABM +0.05, GEF +0.02, MDB +0.02 of note.

Flat: ESTC, FIVE.

Missed:  REVG (0.01) 

Positive Guidance:  

Lower Guidance: 

Still To Report: AGX

News After The Close:

Scotts Miracle-Gro (SMG) raises guidance on strength with U.S. consumer and Hawthorne segments.

Cloudera (CLDR) CEO to retire and stock freefalls.

Costco (COST) May Sales +4.2% after rising 5.4% in April.

Casey’s General (CASY) names Darren Rebelez as new CEO.

Mexico calls for U.S. to redirect funding at the border.

Moody’s cuts Mexico to negative from stable. Fitch downgrades  to BBB from BBB+.

Stock Repurchase: 

Dividend Increase:

Index Changes: 

What’s Happening This Morning: Futures on the S&P 500 rose into the ADP Payroll number at 8:15 a.m. EDT but have given up 30% of gains.

U.S. futures: S&P +7.50, Dow Jones +70 NDX +22.25  and Russell 2000 +4.6 with fair values LOWER ADDING TO GAINS. Asia mixed  and Europe higher, click through for details by country.

Gold,silver and copper higher. WTI Crude and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price $127.17 from  $126.98 from with yields lower since Wednesday morning with the yield at 2.102% from 2.116%. Prices as of 8:25 a.m. EDT.

Top Sectors Wednesday:  Utilities, Consumer Goods, Industrials and Conglomerates.

Weakest Sectors Wednesday:  Materials.

One Month Winners: Utilities.

Three Month Winners:  Utilities, Consumer Goods and Financials.

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

Twelve Month Winners: Utilities, Healthcare and Services.

Year to Date: All higher led by Conglomerates, Services, Industrials, Utilities, Technology and Financials.

Hourly Action This  Week:

Through Tuesday 5 hours are positive and 2 are negative. 3:00-4:00 higher for week.

Courtesy of Quantitative Partners, Inc.

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

Today After The Close: DOCU MTN OLLI PD ZM GES DOMO ZUMZ 

Friday Before The Open:   THO LOVE 

Earnings This Morning Of Note 

Beat:  SIG +0.32, SAIC +0.15, SJM +0.14, CIEN +0.07  

Flat: MIK

Missed: KIRK (0.13), HOME (0.01) 

Still To Report: None of note.

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

Top Story: 

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

President Trump threatens China with $300 billion more in tariffs. (Reuters)

India cuts interest rates. (Nikkei Asian Review)

DRAM prices continue to drop. (Digi Times)

Fiat Chrysler (FCAU) and Renault deal falls apart. (CNBC)

European Central Bank (ECB) leaves rates unchanged.

U.S. and Mexico reach no trade deal. Talks restart today. (Bloomberg)

Data Points

Tuesday we noted “darkest before the dawn?” and it appears that way right now as moving average continue to be retaken.

Bold means a change from prior day.

The adline/decline line saw NASDAQ put in a negative day which was a surprise to many.

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. Ample notice of the current weakness was given.

Courtesy of Quantitative Partners, Inc.

YTD 64% (-12% week over week) of stocks are higher and 36% are lower. Updated 5/31/19 close with next update on 6/7/19 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.

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:

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

Weekly Natural Gas Inventories are due out at 8:30 a.m. EDT.

Geopolitical: 

European Central Bank (ECB) rate decision at 7:45 a.m. EDT and no changes

President Trump concludes his trip to Ireland with the marking of the 75th Normandy D-Day Invasion events.

Conferences & Analyst Meetings:  

Analyst Meetings/Notable Conference Call:  SNCR RGA (investor day) STBA (conference call on merger with DNB Financial) 

Sellside Conferences:  Jefferies Global Healthcare Conference. Baird Global Consumer, Technology and Services Conference. Bank of America Merrill Lynch Global Technology Conference. Credit Suisse Global Energy Conference. Bank of America Merrill Lynch Energy Credit Conference. Deutsche Bank db Access Annual European Leveraged Conference. William Blair Growth Stock Conference.

Industry Conferences:  Apple Worldwide Developers Conference. NAREIT Investor Conference.  LD Micro Invitational Conference.

M&A Activity

S&T Bancorp (STBA) to buy DNB Financial (DNBF) in all stock deal.

Wintrust Financial (WTFC) to buy STC Bancshares for $47.7 million.

Upgrades & Downgrades

Early Morning Gap Up/Down:

Gap Higher: SFIX +32%, CIEN +11%, CMTL +11%, DNBF +9%.

Gap Lower: CLDR -35%, HOME -34%, KIRK -31%,  MIK -16%, SIG -6%, TAK -6%, MDB -5%, LZB -5%, REVG -5%.

About the Author

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