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07.13.2020 9 new Morning Note posts under Morning Note (9)

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"CAPIS Morning Note – 6/17/20 Day Two Of Powell, Lighthizer To The Hill"

posted by CAPIS on 06/17/2020 at 6:13 am

by CAPIS

06/17/2020 at 6:13 am

Lead Story:

IPOs on deck: 

IPOs Filed:  None of note.

Secondaries Priced:  VICI ERI SWAV AAXN CNST BKI  of note.

Notes Priced of note: MRK of note.

Common Stock filings:  PRVB IDYA BKI IR DKNG  of note.

Mixed Shelf Offerings:   KGC PVG  of note.

Convertible Offering Files: ATI of note.

Senior Notes Filed:  None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  

HRB +0.40, ORCL +0.04 of note.

Misses: 

None of note.

Gap Up: WATT +104%, FLGT +21%, AMRN +5%, PTCT +5%

Gap Down: AVEO -10%, NCLH -10%, PRVB -8%, DKNG -5%, RCL -4%, GAN -4%, CCL -4%

Hourly Action This Past Week: Updated 6/15 Close

News After The Close (In Order)

Oracle (ORCL) notes on earnings call that some clients are delaying orders, not a surprise, but guides August quarter higher.

Groupon (GRPN) sees business recovering more quickly than expected.

Kratos Defense (KTOS) wins $46 million award from U.S. Army.

Norwegian Cruise Line (NCLH) extends suspension of voyages through 9/30.

Southwest Airlines (LUV) to keep middle seat open through 9/30 and has enough cash for next two years. (Reuters)

Travel stocks were lower in after hours on LUV and NCLH news from above.

Raises Guidance: ORCL

Dividend Cut: ARI

Share Buyback: CHGG ( also can buyback convertible bonds) WRLD

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

S&P 500 +15 Dow Jones Industrial Average +107 NASDAQ +78 Russell 2000 +12.04. Fair values are lower.  Asia mixed to higher and Europe higher.

Gold lower with silver and copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is flat. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $138.44 from $138.52 with yields at 0.674%.

Positive Sectors On Tuesday:  Technology, Real Estate, Consumer Cyclical and Industrials of note.

Negative Sectors On Tuesday: None of note.

One Month Winners: Real Estate, Industrials, Financials and Consumer Cyclical of note.

Three Month Winners: Consumer Cyclical, Technology and Materials of note.

Six Month Winners:  Technology, Healthcare and Consumer Cyclical of note.

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

Year to Date: Technology, Consumer Cyclical, Healthcare and Communication Services of note.

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

Today After The Close: HTHT WUBA ABM of note.

Thursday Before The Open: KR CMC MEI DBI of note.

Earnings This Morning Of Note

Beat:

None of note.

Missed:

None of note.

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)

Coronavirus update: UV Light can weaken the virus. (CNBC)

U.S. Coronavirus Map.

Flights cancelled out of Beijing as lockdown tightens. (Reuters)

20 more Indian soldiers died at the Chinese Indian border in fighting with the Chinese. (WSJ)

HSBC to cut 3,500 jobs. (Reuters)

U.S. Trade Representative Robert Lighthizer testifies before Congress at 10:00 a.m. EDT and will state time to renegotiate WTO tariffs by threatening to increase U.S. tariff ceilings. (Bloomberg)

Dr. Fauci warns Covid-19 cases to see a resurgence if we do not remain vigilent. (WSJ)

Southwest Air (LUV) continues to see tough environment in Q2. (Reuters)

Yum China (YUMC) may do a secondary Hon Kong listing. (FT)

The long run of Aunt Jemima comes to an end as Quaker Oats which is owned by Pepsi (PEP) will change the name and remove the image. (CNBC)

Tesla (TSLA) registrations fall 37% in April and May. (WSJ)

Facebook (FB) to let users turn off political ads but will be hidden and require a PhD to find. (CNBC)

Stock Index Tracking

Current through 6/16 close. Tuesday saw more improvement of various moving averages.

Bold means a change from prior day.

The advance/decline line model is now a BUY. Updated through 6/16 close. In 2019, the model was up 16.48% on the S&P 500 and this year is up 5.43% with the S&P 500 lower by -5.86% through Friday. Now 6 buy signals and 4 cash signals in 2019 and 2020. The last buy gained 12.89%.  The current buy signal is up 0.18% through Friday.

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 6/15 close. EVL Ranges will start to expand again with the recent action.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

API Petroleum Institute Weekly Inventories are due out at 4:30 p.m. EDT. Crude Oil builds 3.86 million. Gasoline build 4.72 million. Cushing draw 3.29. Distillate build 920K.

MBA Mortgage Application Index rose 8.0% after rising 9.3% last week.

May Housing Starts is due out at 8:30 p.m. EDT and is expected to rise to 1,170,000 from 891,000.

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

Geopolitical & Related

President Trump will announce the PREVENTS Task Force roadmap at 2:00 p.m. EDT.

Federal Reserve Chairman Powell moves to his second day of semiannual monetary policy testimony before the House.

OPEC begins a two days of committee meetings to review market conditions and make policy changes.

There will be a 30 Year Bond Auction at 1:00 p.m. EDT.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note:  CNI AJG FMC  (Investor/Analyst Meeting) THC JAZZ (Update) VZ VRNT OVID CHFS (Webinar).

Sellside Conferences: Raymond James Human Health Innovation Conference (6/15-6/18). Evercore ISI Virtual Consumer & Retail Summit (6/15-6/17). Raymond James BioConnect Institutional Conference (6/16-6/17). JP Morgan Energy, Power & Renewables Conference (6/16-6/17). Oppenheimer Annual Consumer Growth & E-Commerce Conference 2020 (6/16-6/17). Baird’s Food, Fuel, and Water Symposium (6/17).

Industry Conferences: NASDAQ London Investor Conference (6/15-6/17). Capital Link 10th Annual Operational Excellence in Shipping Forum 2020 (6/16-6/17).

M&A

Upgrades & Downgrades: Raymond James upgraded a ton of banks to outperform. Only a couple to Strong Buy.

updated through 8:55 a.m. EDT

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.