CAPIS Morning Note – 5/29/20 Minneapolis Burns, President Trump To Speak On China Today – Stocks Mixed

Catalyst Of The Day: President Trump holds a presser on China and Hong Kong Bill. (CNBC) IPOs on deck: None of note. IPOs Filed:   None of note. Secondaries Priced: None of note. Notes Priced of note: None of note. Common Stock filings: NFG VRTU (selling shareholders) NLOK (selling shareholders) MRNS APPN (company and selling shreholders) of note. Mixed Shelf Offerings:…

Catalyst Of The Day: President Trump holds a presser on China and Hong Kong Bill. (CNBC)

IPOs on deck: None of note.

IPOs Filed:   None of note.

Secondaries Priced: None of note.

Notes Priced of note: None of note.

Common Stock filings: NFG VRTU (selling shareholders) NLOK (selling shareholders) MRNS APPN (company and selling shreholders) of note.

Mixed Shelf Offerings:  NAVI of note.

Convertible Offering Files: None of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  

WSM +0.69, DELL +0.40, VMW +0.34, DXC +0.24, OLLI +0.15, PSTG +0.14, OKTA +0.10, VEEV +0.10, ZS +0.05, MRVL +0.04, PAGS +0.03, COST +0.03, CRM +0.01 of note.

Misses: 

ULTA (2.06), JWN (1.06), TCOM (0.07) of note.

Gap Up: ZS +16%, VMW +9%, KPTI +8%, GLUU +8%, WSM +8%, BIG +7%, DELL +6%, MRVL +5%, TSLA +4%.

Gap Down: MRNS -15%, APY -10%, CGNX -7%, NFG -6%, DXC -5%, APPN -4%.

Hourly Action This Past Week: Updated 5/28 Close

News After The Close (In Order)

Cognex (CGNX) cuts workforce by 8%.

TrueCar (TRUE) cuts workforce by 30%.

Viacom (VIAC) to cut 400 jobs.

Salesforce (CRM) and AT&T (T) announce a multi-year strategic deal.

President Trump signs Executive Order that removes legal protections for social media companies like Twitter (TWTR) and Facebook (FB).

Lowers Guidance: MEI

Raises Guidance: VEEV MRVL OKTA ZS 

Withdraws 2020 or 2021 Guidance: PSTG

Dividend Increase:

Dividend Cut or Suspended: LAMR LADR

Share Buyback Announcements: 

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

S&P 500 -3 Dow Jones Industrial Average -83 NASDAQ +35 Russell 2000 -5.07. Fair values are much lower.  Asia mixed and Europe lower.

Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $138.91 from $139.13 with yields at from 0.688%.

Positive Sectors On Thursday: Utilities, Healthcare and Consumer Defensive of note.

Negative Sectors On Thursday: Energy, Consumer Cyclical and Financials of note.

One Month Winners: Technology, Materials and Communication Services of note.

Three Month Winners: Technology and Healthcare of note.

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

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

Year to Date: Technology of note.

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

Today After The Close: None of note.

Monday Before The Open: ERJ HHR of note.

Earnings This Morning Of Note

Beat:

BIG +0.86 of note.

Missed:

CGC (3.28) of note.

Still to Report: 

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

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

Stocks Making The Biggest Moves. (CNBC)

5 Things To Know To Start Your Friday. (CNBC)

Coronavirus update: Deaths in Russia hit a new high.

U.S. Coronavirus Map.

Minneapolis had extreme violence last night and state police arrested a CNN reporter stoking the crisis into today. (CNN)

States see 14 states increasing COVID-19 cases, 19 flat cases and 17 declining. (NYT)

China to impose restrictions on solar equipment. (Reuters)

Twitter (TWTR) blocked another Tweet from President Trump. (Bloomberg)

Stock Index Tracking

Current through 5/28 close.   Yesterday we noted the S&P 400 moved above its 200 day moving average it has not.

Bold means a change from prior day.

The advance/decline line model is now a BUY. Updated through 5/28 close. In 2019, the model was up 16.48% on the S&P 500 and this year is up 5.25% with the S&P 500 lower by -7.40% through yesterday. Now 6 buy signals and 4 cash signals in 2019 and 2020. The last buy gained 12.89%.  We will begin to track this buy today.

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 5/28 close. EVL Ranges remain above normal and are highlighted in blue and are trying to return to normal.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

April Personal Income is due out at 8:30 a.m. EDT and is expected to fall to -6.5% from -2.0%.

May Chicago PMI is due out at 9:45 a.m. EDT and is expected to rise to 41 from 35.4 last month.

May University of Michigan Consumer Sentiment (Final) is expected to improve to 73.7 from 71.80.

Geopolitical & Related

President Trump will receive his intelligence briefing at 11:00 a.m. EDT. At 4:00 p.m. EDT, the president will participate in roundtable with Industry Executives on Reopening. THERE IS ALSO A PRESS CONFERENCE TO DISCUSS CHINA BILL. WE DO NOT HAVE A TIME YET. THIS WILL BE MARKET MOVING.

Federal Reserve Chairman Powell will speak at 11:00 a.m. EDT.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note: ALLO (webcast)  MGNX KPTI (Conference Call) AMGN RNLSY RHHBY (Investor/Analyst Meeting)

Sellside Conferences: Cowen & Co Technology, Media and Telecom Annual Conference (5/26-5/29). KeyBanc Capital Markets Industrials and Basic Materials Conference (5/26-5/29).   Benchmark Minerals Virtual Elecrtic Vehicle Supply Chain Festival 2020 (5/26-5/29). Bernstein Strategic Decisions Conference (5/27-5/29). Piper Sandler & Co P.S. It’s Friday: The Rise of Silicon Carbide (5/29).

Industry Conferences: American Society of Clinical Oncology (ASCO) -(5/29-5/31)

M&A

Zscaler (ZS) buys Edgewise Networks, no terms.

Cisco (CSCO) buys ThousandEyes, no terms.

Upgrades & Downgrades: