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10.26.2020 10 new Morning Note posts under Morning Note (9) and General (1)

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Morning Note

"CAPIS Morning Note – 9/28/20 Friday’s Move Higher Continues Into Monday Futures"

posted by CAPIS on 09/28/2020 at 7:56 am

by CAPIS

09/28/2020 at 7:56 am

More Corrective Action Ahead – Last week we noted we would look at the status of the market. First up is our chart of the various moving averages on the S&P 500. It is a struggle and we need to see improvement to get out of jail here.

Covid-19 Update With Latest Data From Friday 

Total Cases 7,080,459 from 6,941,911

Recovered: 2,766,280 from 2,710,183

Deaths 196,869 from 194,852

New Cases reported 35,289 from 43,772

Tests 806,258 from 940,415

Deaths 866 from 1,157

Current Hospitalizations 29,432 from 30,043

source COVID tracking project

Capital Raises

IPOs Priced:  None of note.

Secondaries Priced: None of note.

Notes Priced of note: None  of note.

Common Stock filings: None of note. Selling Shareholders of note:

Mixed Shelf Offerings: ALK LNC AMRK CZR IMGN of note.

Convertible Offering Files: None of note.

Senior Notes Filed: None of note.

Earnings After The Close:

Beats:

None of note.

Misses:

None of note.

Hourly Action – A mixed week. Updated 9/24 close.

News After The Close:

Johnson & Johnson (JNJ) is getting a strong neutralizing anitbody response in Phase I/II on Covid-19.

Salesforce.com (CRM) discloses a 9.9% stake in Snowflake (SNOW).

3,500 U.S. companies have filed suits challenging the Trump Administration tariffs on Chinese goods. (Reuters)

Microsoft (MSFT) source code for XP and Windows Serever 2003 as leaked online. (The Verge)

S&P Small Cap 600 adds Chesapeake Utilities (CPK) on 10/1.

President Trump nominated Amy Coney Barrett to the Supreme Court on Saturday.

Barron’s + on BDX DHW WST MASI HOLX QDEL GILD NVAX GSK  PTON WDV.

Dividend Increase: ARTNA

Reinstates Or Initiates Buybacks: LMT MT 

Guides Higher: 

Stock Split:

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

S&P 500 +48  Dow Jones Industrial Average +382 NASDAQ +211  Russell 2000 +25.59 . Fair values are lower.  Asia mixed and Europe higher. VIX October futures are at 30.85 from 32.15 this morning. Current VIX is at 26.38 from 28.51.

Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $139.59 from $139.61 with yields at 0.666% from 0.6548%.

Positive Sectors On Friday:  Technology, Real Estate and Healthcare of note.

Negative Sectors On Friday:  Energy of note.

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

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

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

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

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

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

Today After The Close: UNFI of note.

Tuesday Morning:  ANGO INFO MKC of note.

Gap Up: PLL +114% GNFT +44% CPK +10% MT +8% CLF +8% SINA +6% WB +5% THO +5% MOBL +5% TLRY +5% CALM +5% CNTG +4% of note.

Gap Down: AQST -35% of note.

Earnings This Morning Of Note

Beat:

THO +0.74, CALM +0.15, SINA +0.04, WB +0.04 of note.

Missed:

None of note.

Still To Report:

Erlanger Research Advance/Decline Line Chart –  Updated 9/25.

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 9/24 close. 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. The correction cannot end until the EVL Range becomes normal again, i.e. no blue highlighting.

Courtesy of Phil Erlanger Research Inc.

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

Stocks Making The Biggest Moves. (CNBC)

5 Things To Know Ahead of Today’s Trading. (CNBC)

Corona Virus Update: Positivity rate hits 25% in some Midwestern states. (CNBC)

House Speaker Pelosi working on a stimulus plan at $2.4 trillion. (CNBC)

Senator Ted Cruz in CNBC interview does not believe a stimulus bill will be passed.

33 states are seeing increase in Covid-19 cases. (NYT)

President Trump paid $750  in taxes for 2016 and then 2017. The president paid no taxes in 10 of the previous 15 years.

American Airlines (AAL) closed at $5.48 billion loan with the U.S. government.

Airline industry could lay off 35,000 jobs this week. (The Washington Post)

Doubleline’s Jeffrey Gundlach threatens to leave California over high taxes. (Bloomberg)

Stock Index Trading

Current through 9/25 close. All indexes rose above their 5 day moving averages.

Bold means a change from prior day.

Economic

The latest short interest was out after the close for all NYSE and NASDAQ names and goes through settlement of 9/15 from 8/31. During this period, the S&P 500 fell -4.12% on a trade of 8/27 through 9/13. NYSE rose 0.30% and NASDAQ rose 0.70%.

Geopolitical & Related

President Trump will give an update on the Covid-19 Testing Strategy at 2:00 p.m. EDT.

Federal Reserve New York President John Williams will speak at 9:10 a.m. and 1:00 p.m. EDT.

Federal Reserve Chicago President Charles Evans will speak at 11:00 a.m. EDT.

Investor Events & Conference Calls

FSTR (Conference Call) BABA (Investor Day)

Sellside Conferences: Credit Suisse 2020 Autos Conference (9/28-9/30)

Industry Conferences: World Vaccine Congress (9/28-10/01)

M&A

Cleveland Cliffs (CLF) buy ArcelorMittal’s (MT) U.S. business for $1.4 billion.

MobileIron (MOBL) to be acquired for $7.05 in cash by Ivanti.

Enpro (NPO) to buy Alluxa for $255 million.

Sina (SINA) to go private at $43.30.

Upgrades & Downgrades For Monday – A busy 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.