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Morning Note

"CAPIS Morning Note – 12/5/19 Trade Still Front And Center"

posted by CAPIS on 12/05/2019 at 7:23 am

by CAPIS

12/05/2019 at 7:23 am

Breaking News – United (UAL) CEO Oscar Munoz to move to Chairman and Scott Kirby to become CEO.

IPOs on deck:   LMP Automotive (LMPX)  of note.

IPOs Filed: None filed after the close.

Secondaries Priced:  ARDX RC  TUFN MLND IMMU CCC NJR of note.

Notes Priced:   MDRX of note.

Common Stock filings: RC NJR EVRI MKND OMER  GHS ARDX  PIRS EVOP of note.

Mixed Shelf Offerings filed: EVRI OMER LMRK  of note.

Convertible Offering Files: MOGA of note.

Senior Notes Filed:  None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat:

RH +0.48, CMTL +0.19, POWL +0.18, GEF +0.15, ESTC +0.09, VRNT +0.08, HRB +0.07, WORK +0.06, SMAR +0.03, SNPS +0.02, TLYS +0.02, HOME +0.02, PGNY +0.01, FIVE +0.01, SMTC +0.01 of note.

Flat: SPWH

Missed:

DSGX (0.01) of note.

Hourly Action This Week:

Close of 12/2.

News After The Close (In Order of Time)

NetApp (NTAP) picks up a three year contract from the State of California Department of General Services for data center update and hybrid cloud infrastructure solutions.

At Home Group (HOME) gives downside guidance.

Wayfair (W) sees 36% increase in 5 day holiday shopping period.

Costco (COST) sees November comps +5.3% despite calendar shift

Stock Repurchase Announcements:  BRKL PLNT

Dividend Increase:  ECL UHT

Gap Higher: AUPH +130%, EXPR +19%, ALNA +13%, TLYS +10%, SESN +8%, VRNT +7%, CMTL +6%, FIVE +6%, PCG +6%, DG +5%, POWL +5%, WORK +4%, PGNY +4%, ASIX +4%

Gap Lower: HOME -40%, JILL -19%, ESTC -13%, OMER -12%, ARDX -8%, PIRS -7%, DSGX -6%

What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction. 

S&P 500 +8 Dow Jones Industrial Average +86 NASDAQ +30 Russell 2000 +5.3 Fair values are higher. Asia and Europe mixed to higher.

Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $129.39 from $129.77  with yields at 1.78% from 1.73%. Prices as of 8:25 a.m. EDT.

Positive Sectors On Wednesday: Materials, Energy, Healthcare, Consumer Goods and Utilities of note.

Negative Sectors On Wednesday: Conglomerates of note.

One Month Winners: Healthcare, Industrials and Technology.

Three Month Winners: Industrials, Financials and Healthcare.

Six Month Winners: Consumer Goods, Industrials, Technology and Healthcare.

Twelve Month Winners: Technology, Industrials and Services.

Year to Date: Technology, Industrials, Technology, Consumer Goods, Services and Financials.

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

Today After The Close:  

ZM COO OKTA ULTA CRWD DOCU GWRE SAIC MDLA CLDR FIZZ KFY PD YEXT ZUO CMTL ZUMZ AGX DOMO AOBC of note.

Friday Before The Open:

HHR BIG GCO of note.

Earnings This Morning Of Note

Beat:

SIG +0.33, EXPR +0.06, PDCO +0.04, DG +0.04, SCWX +0.04, AZZ +0.03, GMS +0.01 of note.

Missed:     

SY (0.33), KLXE (0.28), CM (0.22), TIF (0.20), TD (0.15), MIK (0.09), MEI (0.01) of note.

Still To Report: BF.B, DLTH, KR

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

Top News Story:  Markets is buying into the Bloomberg China story but CNBC is rebutting this article. Trade still front and center.

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

Five  Things To Know To Start Your Day. (CNBC)

Stocks making the biggest move this morning.(CNBC)

Bloomberg continues to report that U.S. and China are in close contact and getting to a deal but tariff must be rolled back. (Bloomberg)

CNBC is contradicting the above story. China gives little indication that trade talks are making progress. (CNBC)

Senate to fast track signing bill to sanction Chines on treatment of Uighurs. (Bloomnerg)

Japan puts forth a t $1.2 trillion yen stimulus package. (FT)

Antitrust officials to look at Amazon (AMZN) and its cloud unit. (Bloomberg)

OPEC looking at bigger production cuts. (CNBC)

Notable Data Points

Most stock indexes lost more ground on Monday. Current through 12/3.

Bold means a change from prior day.

The advance/decline line model is now a buy though it is struggling with the recent action. Updated through 12/3. Year to date model up 12.56% on the S&P 500. 5 buy signals and 4 cash signals in 2019. Current signal is a buy.

YTD 65% (+1% change week over week) of stocks are higher and 38% are lower. Updated  through 11/29 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. Update through 12/3.

Economic & Related:

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

October Trade Balance is due out at 8:30 a.m. EDT and is expected to come in at $-48.5 billion from $-52.5 billion last month.

October Factory Orders are due out at 10:00 a.m. EDT and are expected to remain at 0.3%.

Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.

Geopolitical:      

President Trump  is back in Washington D.C. from the NATO Summit. Today he will have lunch with the Permanent Representatives of the United Nations Security Council at 1:00 p.m. EDT and later at 5:00 p.m. will light the National Christmas Tree.

House Speaker Pelosi to make statement on impeachment at 9:00 a.m. EDT.

Federal Reserve Governor Randall Quarles will speak at 10:00 a.m. EDT.

Impeach Hearings resume today at 10:00 a.m. EDT.

Conferences & Analyst Meetings:

Investor/Analyst Days & Conference Calls of Note:  SRC EW WFC NVS (Investor Day) WMB (Analyst Day)  BIIB (Conference Call) AUPH (Business Update)

Sellside Conferences: Credit Suisse TMT Conference (12/2-12/5). Evercore ISI HealthConX Conference (12/3-12/5). Piper Jaffray Healthcare Conference. (12/3-12/5). Credit Suisse Annual Industrials Conference (12/3-12/5) UBS Global Emerging Markets One on One Conference (12/3-12/5).

Industry Conferences: Annual BIOMEDevice San Jose Conference (12/4-12/5).

M&A Activity

MetLife (MET) to buy PetFirst, no terms.

Upgrades & Downgrades

DISCLAIMER

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