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09.24.2020 10 new Morning Note posts under Morning Note (9) and General (1)

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Morning Note

"CAPIS Morning Note – 8/19/20 Futures Mixed, Target Puts Up Huge Earnings Beat & FOMC Minutes Out At 2:00 P.M."

posted by CAPIS on 08/18/2020 at 11:07 am

by CAPIS

08/18/2020 at 11:07 am

Covid-19 Update With Latest Data

Cases reported 40,458 from 37,759

Tests 642,928 from 647,372

Positivity Rate 6.29% from 5.83%

Deaths 1,195 from 406

Hospitalizations 43,747 from 43,485

Mortality Rate at 3.00% from 3.06%

source COVID tracking project

Capital Raises

IPOs Priced: Harmony Biosciences (HRMY) priced at $24 above range of $20 to $23.  INHIBRX (INBX) priced at $17 with range of $16 to $18.

Secondaries Priced:  PLYM IRTC FUTU  of note.

Notes Priced of note: AR MIDD CHGG  of note.

Common Stock filings: PLYM SABR IRTC  .  (Selling Shareholder Offerings) FISV of note.

Mixed Shelf Offerings:  None of note.

Convertible Offering Files: ETSY SABR  of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beats:

LZB +0.31, SUPN +0.23, A +0.10, JKHY +0.02, CREE +0.01 of note.

Misses:

ATGE (0.06), ALC (0.06) of note.

Flat:

News After The Close:

Trump Administration tells colleges to divest Chinese stocks on delisting risk.

AT&T (T) repays $1.2 billion of bonds early and has now paid down $19.4 billion since the end of Q2.

La-Z-Boy (LZB) reinstates dividend at $0.07, 50% of what it was before suspension.

Goldman Sachs (GS) announces settlement agreement with Malaysia.

Sorrento Therapeutics (SRNE) fires CFO Jiong Shao immediately.

United Airlines (UAL) increases flights to China from two to four, out of San Francisco to Shanghai.

Raises Guidance Raised:

Lowers Guidance: CREE JKHY 

Raises Dividend: AFG

Cut Dividend:

Stock Split Announcement: 

Stock Buyback: ETSY

10Q Delays: 

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

S&P 500 +1 Dow Jones Industrial Average +26 NASDAQ -7 Russell 2000 +4.73 . Fair values are mixed. Asia mixed and Europe higher. VIX September futures are at25.75 from 25.65 this morning. Current VIX is at 21.51 from 21.56.

Gold and silver lower with copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $139.50 from $139.36 with yields at 0.653% from 0.675%.

Positive Sectors On Tuesday:  Consumer Cyclical, Communication Services and Technology.

Negative Sectors On Tuesday: Energy, Industrials and Financials of note.

One Month Winners: Industrials, Consumer Cyclical and Consumer Defensive of note.

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

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

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

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

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

Today After The Close: NVDA SNPS NDSN HTHT SQM LB    of note.

Thursday Morning:  BABA EL GSX MLCO TTC BJ of note.

Gap Up: MNTA +68%, HUD +47%, LITB +31%, ONE +13%, WATT +10%, AXDX +6%, CNTG +5%, TGT +4%, VRNA +4%

Gap Down: ALBO -15%, VIPS -12%, SRNE -12%, ATGE -10%, SABR -10%, PLYM -7%, JKHY -6%, GILD -5%, ALC -5%

Earnings This Morning Of Note

Beat:

TGT +1.71, LOW +0.80  of note.

Flat: VIPS

Missed:

None of note.

Still to Report: ADI TJX

Erlanger Research Advance/Decline Line Chart – Tuesday was a weak day as advancers lagged decliners. Close 8/18.

Courtesy of Phil Erlanger Research Inc.

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

5 Things to Know Before The Market Opens Today. (CNBC)

Stocks Making The Biggest Moves. (CNBC)

Coronavirus Update: Britain ramps up testing, Roche and Regeneron team up on Covid-19. (CNBC)

Chinese trade talks never happened last weekend as U.S. pulled out of the Saturday talks. (Bloomberg)

Democrats officially nominated Joe Biden as the presidential candidate. Biden’s wife Jill gave a great talk last night. (NY Times)

Trump Administration out talking a $500 billion stimulus, down from $3.4 trillion. Not going to happen. (Bloomberg)

Portland had riots again last night. (ABC News)

NYC apartment vacancies hit a 10 year high and most office towers are still nearly empty. (NY Times)

President Trump endorses Oracle (ORCL) takeover of TikTok U.S. operations. (Reuters)

Rolling blackouts to continue in California. (SF Chronicle)

Target (TGT) sees drive in pickup rise 700% in latest quarter. (CNBC)

Regeneron (REGN) and Roche (RHHBY) enter collaborative effort. (CNBC)

Stock Index Trading

Current through 8/18 close. Indexes lost some ground yesterday.

Bold means a change from prior day.

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 8/18 close. EVL Ranges are again starting to get back to normal with the recent action, pay attention The Erlanger Value Line are available in Bloomberg for your review. Simply visit the Bloomberg App store at APP(GO) then find Erlanger Research and setup a trial.

Courtesy of Phil Erlanger Research, Inc.

Economic

API Petroleum Institute Weekly Data is due out at 4:30 p.m. EDT.

MBA Mortgage Applications came out at 7:00 a.m. EDT and fell -3.3%.

Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT and last week fell by 4.5 million barrels.

The latest Federal Reserve Open Market Committee (FOMC) Minutes are due out at 2:00 p.m. EDT.

Geopolitical & Related

President Trump will receive his intelligence briefing at 1:00 p.m. EDT while his press secretary Kayleigh McEnany holds a press conference. 

Federal Reserve San Francisco President Daly speaks at 1:00 p.m. EDT.

The Democratic National Conventions continues virtually and in Milwaukee. It will run through Thursday night when Democratic Presidential Nominee Joe Biden accepts the nomination. President Barrick Obama will speak tonight.

Investor Events & Conference Calls

 SINT (Business Update) OCX  (Virtual Meeting) IVB (Investor Meeting)

Sellside Conferences: Santander Brazil Conference (8/17-8/21) Raymond James SMID Conference (8/18-8/19) Needham Fintech and Digital Transformation 1X1 Conference (8/19) UBS Kohler Mid-West Utilities Conference (8/19-8/20)

Industry Conferences: EnerCom Oil & Gas Conference (8/17-8/19).

M&A

Hudson (HUD) receives a bid from its controlling shareholder Dufry AG Group for $7.70.

Johnson & Johnson (JNJ) to buy Momenta Pharma (MNTA) for $52.50 a share in cash. Closed at $30.81.

Upgrades & Downgrades For Wednesday 8/19 – A rather light day for recommendations.

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.