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"CAPIS Morning Note – 5/15/20 President Trump Cuts Off Shipments of Chips To Huawei, Future Plummet"

posted by CAPIS on 05/14/2020 at 9:33 pm

by CAPIS

05/14/2020 at 9:33 pm

Lead Headline: President Trump to block shipments of chips to Huawei. China counters in Global Times article as threatens Cisco (CSCO), Qualcomm (QCOM), Boeing (BA) and Apple (AAPL).(Reuters)

IPOs on deck:  ADC Therapeutics (ADCT) prices IPO.

IPOs Filed:  None of note.

Secondaries Priced: PRPL TGTX OYST of note.

Notes Priced of note:  TDC PETQ of note.

Common Stock filings: TGTX  of note.

Mixed Shelf Offerings: CHH PGC TARA  of note.

Convertible Offering Files: None  of note.

Senior Notes Filed: None  of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat: 

 NEWR +0.11, NLOK +0.10, DENN +0.07, SSRM +0.04, GLOB +0.02, GTBIF +0.01 of note.

Misses: 

 DDS (5.97), CVET (0.46), HBM (0.16), FTCH (0.04) of note.

Flat: AMAT

Gap Up: NEWR +18%, OCUL +17%, DENN +11%, HBM +10%, DDS +8%, GLOB +4%, JD +4%, PBF +4%, SSRM +4%

Gap Down: CODX -13%, FTCH -9%, HOLI -8%, CVET -7%, OYST -6%, BLU -5%, TGTX -4%

Hourly Action This Past Week: Updated 5/14 Close

News After The Close (In Order)

Science Applications (SAIC) wins $42 million Army task order.

NYSE to re-open floor on May 26th.

Lockheed (LMT) wins $900 million Navy contract.

CDC posts openings for various types of locations. (CDC)

Lowers Guidance: NKE

Raises Guidance: GLOB 

Withdraws 2020 Guidance: 

Dividend Increase: AAON

Dividend Cut or Suspended: 

Share Buyback Announcements: 

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

S&P 500 -28 Dow Jones Industrial Average -211 NASDAQ -129 Russell 2000 -13 Fair values are higher to mixed.  Asia  and Europe mixed to lower.

Gold lower, silver higher and copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $139.56 from $139.41 with yields at .60% from 0.644%.

Positive Sectors On Thursday: Financials, Materials and Consumer Cyclicals of note.

Negative Sectors On Thursday: Consumer Defensive of note.

One Month Winners: Technology, Healthcare and Communication Services of note.

Three Month Winners: None of note.

Six Month Winners:  Healthcare and Technology of note.

Twelve Month Winners: Healthcare, Technology and Communication Services of note.

Year to Date: None of note.

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

Today After The Close: None of note.

Monday Before The Open:  of note.

Earnings This Morning Of Note

Beat:

None of note.

Missed:

JD (0.35), PBF (0.13) of note.

Still to Report: 

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

5 Things To Know To Start Your Day. (Bloomberg)

Stocks Making The Biggest Moves. (CNBC)

5 Things To Know Before The Market Opens For Thursday. (CNBC)

Coronavirus update: Military to update vaccine.

U.S. Coronavirus Map update.

IHME raises mid point guidance for U.S. COVID-19 deaths through August 4th to 147,040 from 137,184 deaths on May 11th.

White House to support another round of stimulus checks. (CNBC)

President Trump to require certain essential drugs be made in the U.S. (Bloomberg)

U.S. ups military pressure on China as tensions rise in the South China Sea and over COVID-19. (CNN)

Dr. Scott Gottlieb notes in CNBC interview that NYU study was incorrect in analysis of Abbott COVID-19 tests and mystery illness in children is not connected to COVID-19. (CNBC)

House to pass their $3 trillion stimulus bill today, does not have votes to pass Senate. (Politico)

Senate Majority Leader Mitch McConnell says liability protection from COVID-19 is a red line. (Fox)

U.S. Representative Peter DeFazio sends letter to airlines telling them to leave middle seat open. (CNBC)

U.S. ties to China have reached a “breaking point”. (Bloomberg)

J.C. Penney (JCP) to file for bankruptcy today. (CNBC)

Stock Index Tracking

Current through 5/14 close.  Moving averages are in trouble.

Bold means a change from prior day.

The advance/decline line model moves to cash today. Updated through 5/14  close. In 2019, the model was up 16.48% on the S&P 500 and this year is up 3.97% with the S&P 500 lower by -12.71% through yesterday. Now 6 buy signals and 4 cash signals in 2019 and 2020. The latest buy is up 11.61% through Wednesday’s close. The advance/decline line has to be above 5,400 Thursday to avoid a move to cash ending the sell signal. That did not happen. As such, if you are following the model you can adjust accordingly.

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. Updated through 5/14 close. EVL Ranges remain above normal and are highlighted in blue had started to drop but the action the last couple of days ended that possibility.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

April Retail Sales is due out at 8:30 a.m. EDT and is expected to fall to -11.9% from -8.7%.

April Industrial Production is due out at 9:15 a.m. EDT and is expected to fall to -12.1% from -5.4%.

University of Michigan Consumer Sentiment (Preliminary) is due out at 10:00 a.m. EDT and is expected to fall to 67.4% from 71.80%.

The U.S. China Enforcement Provision of the US/China Trade Deal will be announced at 2:00 p.m. EDT.

Geopolitical & Related

President Trump will speak at noon on vaccine development. At 12:30 then participates in a presentation of the U.S. Space Flag and signs Armed Forces Proclaimation.  Press conference at 2:00 p.m. with Kayleigh McEnany. At 2:30 the president receives his intelligence briefing. Finally, at 4:00 p.m. the president delivers remarks at a Presidential Recognition Ceremony: Hard Work, Heroism and Hope.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note:   PFE RARE (Conference) SKT (Investor/Analyst Meeting) (Webcast) 

Sellside Conferences: Needham Virtual Technology & Media Conference (5/15-5/20). Bank of America Auto Summit (5/15-5/18)

Industry Conferences: American Thoracic Society (5/15-5/20). American Urological Association Annual Meeting (5/15-5/18)

Upgrades & Downgrades:

DISCLAIMER

This communication is for informational purposes only and is solely intended for use by institutional investors. Use of this communication by others, including retail investors, is prohibited. No statement herein is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Certain products, including options and futures, may involve substantial risk and are not suitable for all investors. The information on this webpage is provided by an independent third party. While the information and opinions presented in this material have been obtained or derived from sources believed by Capital Institutional Services, Inc. (CAPIS) to be reliable, CAPIS makes no representations concerning its accuracy or completeness, and accepts no liability for loss arising from the use of this material.