CAPIS Morning Note – 6/11/19 CVS Deal To Be Blocked?

You Can’t Make This Stuff Up: Federal Judge may try to block CVS Corp (CVS) merger of Aetna, The deal has already closed. (NY Post) Corporate Actions IPOs on deck for This Week:  We now head into summer trading for IPOs and several hot deals this week. IPOs on deck for Today:  Mohawk Group Holdings…

You Can’t Make This Stuff Up: Federal Judge may try to block CVS Corp (CVS) merger of Aetna, The deal has already closed. (NY Post)

Corporate Actions

IPOs on deck for This Week:  We now head into summer trading for IPOs and several hot deals this week.

IPOs on deck for Today:  Mohawk Group Holdings (MWK) of note.

Secondaries on deck:  AVLR of note.

Notes Priced: None of note.

Common Stock filings:  AAT D PRVB . Mixed Shelf Offerings filed: TRV. Convertible Offerings filed: ZNGA VG. Senior Notes Files: CLMS.

Courtesy of IPO Financial

Earnings After The Close:

Beat:   CASY +0.15,  ASNA +0.11 of note.

Flat: None of note.

Missed:  AGX -1.79, LOVE -0.10 of note.

News After The Close:

Barnes & Noble (BKS) may see other bids for the company.

Allegiant Travel (ALGT) seeks passenger traffic up +12.3% and revenues passenger miles +10.3%.

Phillips 66 (PSX) and Plains All American (PAA) set up JV to build a pipeline to the Gulf Coast to ship overseas.

Valens expands deal with Tilray (TLRY).

PolyOne (POL) raises guidance for Q2.

Lockheed Martin (LMT) wins $540 million Navy contract.

Stock Repurchase: 

Dividend Increase: 

What’s Happening This Morning: Futures on the S&P 500 

U.S. futures: S&P +13.75, Dow Jones +124 NDX +53.50  and Russell 2000 +10.20 with fair values MIXED. Asia and Europe higher, click through for details by country.

Gold and silver lower with copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is higher. $ is lower vs Euro, lower vs. Pound and higher vs. Yen. US 10 year Treasury price $126.56 from $126.80 with yields lower since Monday morning with the yield at 2.169% from 2.141%. Prices as of 8:25 a.m. EDT.

Top Sectors Monday:  Services, Technology, and Financials.

Weakest Sectors Monday:  Utilities.

One Month Winners: Utilities and Healthcare.

Three Month Winners:  Consumer Goods, Conglomerates, Services and Financials.

Six Month Winners: Industrials, Technology, Conglomerates and Services.

Twelve Month Winners: Utilities, Healthcare and Services.

Year to Date: All higher led by Conglomerates, Services, Industrials, Technology and Consumer Goods.

Hourly Action This  Week:

Last week 4 hours were positive and 3 were negative. 3:00-4:00 higher for week.

Courtesy of Quantitative Partners, Inc.

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

Today After The Close: PLAY of note.

Wednesday Before The Open:None of note.

Earnings This Morning Of Note 

Beat: HDS, +0.03, CHS +0.02 of note.

Flat: None of note.

Missed:   None of note.

Still To Report: HRB, JW.A of note.

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

Top Story: .

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

Commerce Secretary Wilbur Ross on CNBC this morning, no trade deal at G-20. (CNBC)

Some Chinese officials starting to think “no deal” is better than a bad deal. (South China Morning Post)

Foxconn has enough resources to make all Apple (AAPL) iPhones ex China. (Bloomberg)

Data Points

Continued improvement.

Bold means a change from prior day.

The adline/decline line saw NASDAQ put in a negative day AGAIN which is troubling.

The QPI10 Day Moving Average of Breadth (10DMA) is no longer invested  and moved to cash on May 8th close. For a move to cash from buy, the 10DMA needed to have two days in row below -200.A change may be in the offing as the 10 DMA is now at +159.

Courtesy of Quantitative Partners, Inc.

YTD 64% (-12% week over week) of stocks are higher and 36% are lower. Updated 6/7/19 close with next update on 6/14/19 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. Strong week and Monday.

Courtesy of Phil Erlanger Research

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

Economic & Related:

NFIB Business Optimism Index rose to 105 from 103.50 this morning.

May PPI is due out at 8:30 a.m. EDT and estimates are for a drop to 0.1% from 0.2% in April.

API Petroleum Institute will report its weekly data on Crude Oil and Gasoline at 4:30 p.m. EDT.

Treasury  Auction of $38 billion of 3 Years at 1:30 p.m. EDT.

The latest short interest data from NYSE and NASDAQ is due out after the close.


President Trump heads to Iowa today to review Southwest Iowa Renewable Energy  and then heads to Des Moines to speak to the Republican Party of Iowa.

House Judiciary Committee holds a hearing on Big Tech and its influence on the media.

Conferences & Analyst Meetings:  

Analyst Meetings/Notable Conference Call:  HESM PAGP PAA CARG SWIR  (investor day) VAR (conference call)   

Sellside Conferences:  Stifel Inaugural Cross Sector Insight Conference.  Deutsche Bank db Access Global Consumer  Conference. Wells Fargo West Coast Energy Conference. Goldman Sachs Global Healthcare Conference. Morgan Stanley U.S. Financials Conference.

Industry Conferences:  American Diabetes Association Scientific Session (through Tuesday). Cisco Live 2019. CES Asia 2019.

M&A Activity

American Assets Trust (AAT) to buy La Jolla Communities for $513.5 million.

Apollo (APO) to buy Shutterfly (SFLY) for $51 a share.

Varian Medical (VAR) buys Endocare and Alicon for $185 million.

Intel (INTC) to buy Barefoot Networks, no terms.

Upgrades & Downgrades

Early Morning Gap Up/Down:

Gap Higher: CASY +11%, NBEV +3%. 

Gap Lower: VG -12%, LOVE -11%, AGX -5%, HDS -4%.