CAPIS Morning Note – 2/27/20 Another Ugly Start To The Day, First Community Case in U.S. of COVID-19

IPOs on deck: None of note. IPOs Filed:  None of note. Secondaries Priced: FRPT O of note. Notes Priced:  NUVA of note. Common Stock filings:   O of note. Mixed Shelf Offerings:  AMRN of note. Convertible Offering Files: RING of note. Senior Notes Filed: None of note. Courtesy of IPO Financial Earnings After The Close: Beat:  BKNG +1.17,…

IPOs on deck: None of note.

IPOs Filed:  None of note.

Secondaries Priced: FRPT O of note.

Notes Priced:  NUVA of note.

Common Stock filings:   O of note.

Mixed Shelf Offerings:  AMRN of note.

Convertible Offering Files: RING of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:


BKNG +1.17, KW +0.80, MED +0.58, CHDN +0.48, CRC +0.36, IIPR +0.31, ANSS +0.25, UHS +0.22, PDCE +0.21, EQH +0.19, SWX +0.18, APA +0.13, FG +0.12, NDLS +0.12, ECPG +0.11, REZI +0.11, MAR +0.10, NI +0.10, FIX +0.09, GEF +0.09, NTNX +0.09, UPLD +0.08, NTRA +0.08, CLGX +0.07, ESTC +0.07, TDOC +0.06, CUTR +0.05, FRTA +0.05, RUBI +0.05, CW +0.04, DDD +0.04, VAC +0.03, WHD +0.03, CLR +0.03, PTLA +0.03, BOX +0.03, CPE +0.02, CLI +0.02, PK +0.02, SQ +0.02, GTE +0.02, STAA +0.02, ACAD +0.02, SJI +0.02, LB +0.02, ACA +0.01, LHCG +0.01 of note.


TPC (1.82), NTES (1.49), EDIT (0.80), ERI (0.48), FTI (0.40), GBT (0.36), RGNX (0.32), SRPT (0.30), ARNA (0.24), SRI (0.20), ECOL (0.18), CVNA (0.16), BMRN (0.16), SYKE (0.10), NVEE (0.08), CCI (0.07), FRGI (0.07), TCMD (0.05), UPWK (0.04), ETSY (0.03), ADPT (0.03), WPX (0.03), SILK (0.02), ALEX (0.02), AEGN (0.01), WPG (0.01), WTRG (0.01)  of note.


BEAT +0.00, STAY +0.00, TWNK +0.00  of note.

Hourly Action This Week: Updated 2/26 Close

News After The Close (In Order of Time)

Qiagen (QGEN) announces diagonistic test kits for SARS CpV 2.

Microsoft (MSFT) announce that its More Personal Computing segment will not meet guidance. Other components remain intact.

Huntington Ingalls Chairman of the Board retired Admiral  Thomas B. Fargo to retire on 4/28.

Gilead (GILD) initiates two Phase 3 studies on Remdesivir for COVID-19.

President Trump named Vice President Pence the point person on COVID19 at press conference last night.

CDC confirms first case of community spread with no ties to  China.

Stock Buybacks: HVT EQH NBHC SC

Dividend Increases: ALSN FIX WLTW

Gap Higher:

TDOC +16%, REZI +13%, ETSY +12%, GTE +12%, STAA +11%, BOX +9%, GTE +9%, NTRA +9%, WPG +8%, ESTC +8%, CPE +8%, DDD +7%, SQ +7%, IIPR +7%, IIPR +7%, ADPT +6%, UPWK +6%, GTN +6%, NDLS +6%, UPLD +6%, GILD +6%, RUBI +5%, GOLF +4%, SWX +4%, JNCE +4%, ACAD +4%, 

Gap Lower:

NTNX -18%, TPC -17%, CLR -17%, MED -17%, CVNA -11%, ECOL -8%, PTLA -8%, FRGI -8%, LHCG -7%, INST -7%, CCI -6%, O -6%, NVEE -5%, WPX -5%, GBT -4%, AMRN -4%, ANSS -4%

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

S&P 500 -47 Dow Jones Industrial Average -400  NASDAQ -169 Russell 2000 -23.46 . Fair values are lower. Asia and Europe lower.

Gold and silver higher with copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, higher vs Pound and lower vs Yen. US 10 year Treasury price is at $133.61 from $132,81 with yields at 1.29% from 1.369%.  Prices as of 8:30 a.m. EDT.

Positive Sectors On Wednesday: Technology of note.

Negative Sectors On Wednesday: Conglomerates, Materials, Energy, Utilities and Industrials.

One Month Winners: Conglomerates and Utilities.

Three Month Winners: Conglomerates, Utilities, Technology and Consumer Goods.

Six Month Winners:  Technology, Consumer Goods, Healthcare and Utilities.

Twelve Month Winners: Consumer Goods,Technology, Utilities, Services and Industrials.

Year to Date: Conglomerates, Utilities and Technology.

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


Friday Before The Open: AES VST W PNM FL STRA SVC CLNY ROCK MGLN SSP SUP  of note.

Earnings This Morning Of Note


FLY +0.80, PRSC +0.40, ESPR +0.39, SAGE +0.38, HGV +0.25, BBY +0.23, TNK +0.22, GTX +0.19, PWR +0.10, PDCO +0.10, TSG +0.09, HMLP +0.08, CNP +0.08, EXLS +0.06, SRE +0.06, BUD +0.06, DISCA +0.06, IBP +0.05, EVOP +0.05, AAON +0.04, EME +0.04, NVCR +0.04, CROX +0.04, SRCL +0.03, PLAN +0.03, CHS +0.03, SERV +0.03, BMCH +0.03, GTS +0.02 of note.


NOMD +0.00, KDP +0.00, SHOO +0.00, NLSN +0.00, TGP +0.00, PRGO +0.00


EQM (2.25), GCI (0.78), SAFM (0.70), LAUR (0.26), ACIW (0.24), HRI (0.23), EQT (0.17), FRO (0.14), HMHC (0.13), OGE (0.10), CCOI (0.07), FLIR (0.07), CBRE (0.03), CCC (0.03), GOLF (0.01), NTLA (0.01)  of note.


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

Top News Story: 

5 Things To Know Before The Market Opens. (CNBC)

5 Things To Know To Start Your Day. (Bloomberg)

Stocks Moving This Morning. (CNBC)

Coronavirus update: Japan to close all schools. (CNBC)

Coronavirus Map. (Bloomberg)

Japan to close schools for one month to slow the spread of COVID-19.

Tesla (TSLA) registrations fell 46% in China during February so far. (Bloomberg)

Vice President Joe Biden looks to be in good shape to win South Carolina after new endorsement. (NYT)

10 Year Treasury hits 1.29%. (CNBC)

Panera to introduce $8,99 a month unlimited coffee subscription. Negative for SBUX. (Reuters)

Stock Index Tracking

Current through 2/26 close. A real struggle now.

Bold means a change from prior day.

The advance/decline line model moved to cash 1/31 and on 2/14 moved back to a buy. Back to Cash today. Updated through 2/26 close. In 2019, the model was up 16.48% on the S&P 500 and this year is up 2.08%. 5 buy signals and 4 cash signals in 2019. Current buy signal ended with a gain of 9.83% and began on 10/17/19. We got back to a buy last Friday as we kept the 10 DMA above +200 the last two days of that week.

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 2/26 close.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

The latest NYSE and NASDAQ Short Interest from January 31st through February 14th came out and saw NYSE drop by -0.79%  and NASDAQ by -0.58%.

January Durable Goods are due out at 8:30 a.m. EDT and are expected to fall to -1.60% from 2.40%.

Q4 GDP (second update) is due out at 8:30 a.m. EDT and is expected to rise to 2.2% from 2.1%.

Weekly Jobless Claims are due out at 8:30 a.m. EDT.

January Pending Home Sales are due out at 10:00 a.m. EDT and are expected to 2% from -4.9%.

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


President Trump will receive his daily intelligence briefing at 2:30 p.m. EDT. At 6:00 p.m. EDT, the President attends a American African History Month Reception.

Federal Reserve Vice Chairman Richard Clarida to speak at 3;00 p.m. EDT.

$32 billion of 7 Year Notes at 1:00 p.m. EDT.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note:  DEWM (Conference Call) CXP WTRG (Investor Day) CR (Analyst Day) TRCH (Business Update)

Sellside Conferences:  JSVB Leerink Global Healthcare Conference (2/25-2/27). Credit Suisse Annual Financials Services Forum 2020 (2/26-2/28).

Industry Conferences: RSA Security Conference (2/24-2/28). American Glaucoma Society Annual Meeting (2/27-3/1).

M&A Activity

Upgrades & Downgrades through 8:20 a.m. EDT 2/26