CAPIS Morning Note – 10/10/19 Let’s Get Ready To Rumble, Trade Talks Begin

Breaking News –  OPEC cuts oil demand forecast for a third month in a row. (CNBC) Corporate Actions IPOs on deck: BioNTech SE (BNTX) on deck for this week. IPOs Filed: None filed after the close. Secondaries on deck:  None of note. Notes Priced: None of note. Common Stock filings:  SPLK of note. Mixed Shelf Offerings…

Breaking News   OPEC cuts oil demand forecast for a third month in a row. (CNBC)

Corporate Actions

IPOs on deck: BioNTech SE (BNTX) on deck for this week.

IPOs Filed: None filed after the close.

Secondaries on deck:  None of note.

Notes Priced: None of note.

Common Stock filings:  SPLK of note.

Mixed Shelf Offerings filed:  None of note.

Convertible Offering Files:None of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:


None of note.


None of note

News After The Close: (In time order after the close)

Costco (COST) sees September comps up 4.2% with e-commerce up 17.8%.

Target (TGT) names Michael Fiddelke as CFO.

Bed, Bath & Beyond (BBBY) names new CEO. Mark Tritton comes from Target (TGT) where he was the CMO and an Executive Vice President.

Toys ‘R’ Us is back in a collaboration with Target (TGT).

California Judge will allow for alternative restructuring plans with bondholders and fire victims putting forward their own plans  for PG&E (PCG).

Stock Repurchase: 

Dividend Increase: 

Early Morning Gap Up/Down: (>4% or <-4%)

Gap Higher: RARX +107%, BBBY +23%

Gap Lower: PCG -36%, HEXO -13%, PHG -8%, ADTN -4%

What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction. Futures have been all over the place as low as -30 to as high as +5 on S&P 500.

S&P 500 -5 Dow Jones Industrial Average -56 NASDAQ -14 Russell 2000 +1.74 Fair values are mixed. Asia mixed and Europe mixed.

Gold and silver higher with copper higher as well. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $131.39 from $131.50 with yields at 1.587% from 1.55%. Prices as of 8:40 a.m. EDT.

Positive Sectors On Wednesday: Technology, Services, Consumer Goods and Financials of note.

Negative Sectors On Wednesday: None of note.

One Month Winners: Utilities, Consumer Goods, Materials and Financials.

Three Month Winners: Utilities and Consumer Goods.

Six Month Winners: Utilities, Consumer Goods and Financials.

Twelve Month Winners: Utilities, Technology, Consumer Goods and Financials.

Year to Date: Consumer Goods, Industrials and Utilities.

Hourly Action This Week:

Updated through Tuesday’s close. Mixed action.

Courtesy of Quantitative Partners, Inc.

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

Today After The Close: None of note.

Friday Before The Open: FAST INFY of note.

Earnings This Morning Of Note


DAL +0.06 of note.


None of note.

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


Top Story: U.S. & Chinese Trade Talks to start today. Partial deal? No deal? (CNBC)

Wall Street Journal Headline:

Five Things You Need To Know To Start Your Day. (Bloomberg)

Five Things To Know Before The Market Opens Today. (CNBC)

Stocks Making The Biggest Moves In After Hours  (CNBC)

16 Kurdish fighters are dead this morning as Turkey moves into Syria to clear it of Kurdish fighters. (NYT)

China to restrict Visas for Americans that are anti-China. (CNBC)

China asks U.S. to end sanctions on its biggest shipping company. (Bloomberg)

Apple (AAPL) removes APP in Hong Kong and China that let’s users track police. (WSJ)

California utility customers of PG&E (PGE)  in the millions are losing power to prevent forest fires. (WSJ)

Fidelity joins in and lowers commissions to $0. (WSJ)

Boeing (BA) finds cracks in 5% of 737s and it will be grounded will review is undertaken. (Reuters)

Data Points

Stock indexes have struggled this week. Current through 10/9.

Bold means a change from prior day.

The advance/decline line moved to a cash yesterday morning. Updated through 10/9. Year to date model up 8.73% on the S&P 500. 4 buy signals and 4 cash signals in 2019. The model is now in cash with a gain of 1.28% on the recent buy.

YTD 60% (-3% week over week) of stocks are higher and 40% are lower. Updated 10/4/19 close with next update on 10/11/19 close.

Courtesy of Phil Erlanger Research, Inc.

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. Update through Wednesday’s close.

Courtesy of Phil Erlanger Research, Inc.

The Value Lines may be accessed via Bloomberg. For a free trial if you ar a Bloomberg user go to APPS CS:ERLA

Economic & Related:

The latest NYSE and NASDAQ short interest data was released after the close for the period ended September 30th on a settlement date basis. The collection period runs from September 11th through 26th and the S&P 500 fell -0.78%. Thursday, October 10. NYSE rose by 0.14% and NASDAQ rose by 0.50%.

September CPI is due out at 8:30 a.m. EDT and is expected to remain at 0.1%.

The latest Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.


President Trump will hold a rally at 8:00 p.m. EDT in Minneapolis.

Chinese Trade Talks between Treasury Secretary Mnuchin, U.S. Trade Representative Lighthizer and Chinese Vice Premier Liu He.

$16 billion of 30 Years auctioned at 1:00 p.m. EDT

Conferences & Analyst Meetings:

Company Analyst Meetings and Conference Calls: PRPO (Update) AQMS (Investor Webcast) FOLD (Analyst Day) HRL (Investor Day)

Sellside Conferences: None of note.

Industry Conferences: FireEye (FEYE) Cyber Defense Summit (10/7-10/10). International Congress on Applications of Lasers and Electro-Optics (10/7-10/10). American Academy of Ophthalmology Annual Meeting (10/10-10/15)

M&A Activity:

Upgrades & Downgrades: