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
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:
None of note.
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
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
THO +0.74, CALM +0.15, SINA +0.04, WB +0.04 of note.
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.
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.
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)
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.