CAPIS Morning Note – 6/2/20 Protests Continue, But Markets Unconcerned As Futures Higher Again
The Story – Protests continue overnight. (CNBC) IPOs on deck: None of note. IPOs Filed: None of note. Secondaries Priced: ALLO KLDO ADAP QTS GH INVH of note. Notes Priced of note: LVGO of note. Common Stock filings: NTLA OSUR INVH QTS KLDO GH CCC FNF (selling sharefolders) of note. Mixed Shelf Offerings: EXAS IDYA LIND CRTX…
The Story – Protests continue overnight. (CNBC)
IPOs on deck: None of note.
IPOs Filed: None of note.
Secondaries Priced: ALLO KLDO ADAP QTS GH INVH of note.
Notes Priced of note: LVGO of note.
Common Stock filings: NTLA OSUR INVH QTS KLDO GH CCC FNF (selling sharefolders) of note.
Mixed Shelf Offerings: EXAS IDYA LIND CRTX SPLK DTIL STT of note.
Convertible Offering Files: None of note.
Senior Notes Filed: None of note.
Earnings After The Close:
NXGN +0.01 of note.
NGL (1.97), (PUMP (0.35), ENS (0.08) of note.
Gap Up: MGI +39%, RUHN +13%, WU +8%
Gap Down: PUMP -10%, NGL -8%, LIND -7%, QTS -4%
Hourly Action This Past Week: Updated 6/1 Close
News After The Close (In Order)
Agree Realty (ADC) received May rent from 87% of its portfolio while Highwoods Property (HIW) received 99%.
Starbucks (SBUX) to further reduce employee hours as sales to remain lower than expected until fall. (WSJ)
NASDAQ (NDAQ) sees options trading at 181 million contracts in May versus 201 million in April and 154 million a year ago.
Moneygram (MGI) rises in after hours as rumors surface that Western Union (WU) may make a bid for the company.
Fitch downgrades Apache (APA) to BB+.
Ratings agency downgrades Mosaic (MOS) to negative from stable.
U.S. Cellular (USM) names Laurent Therivel as the new CEO.
The president threatens that states will be using U.S. military if they cannot quell the violence with their respective National Guard.
After this press conference, the president visited St. Johns Church which was burned in the riots on Sunday night for a photo opportunity.
Share Buyback Announcements: EXPO RUHN
What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction.
S&P 500 +13 Dow Jones Industrial Average +149 NASDAQ +17 Russell 2000 +14.33. Fair values are lower. Asia higher and Europe higher.
Gold higher with silver lower and copper higher. WTI Crude Oil 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 is at $138.92 from $138.98 with yields at 0.671%.
Positive Sectors On Monday: Real Estate, Energy and Materials of note.
Negative Sectors On Monday: Healthcare 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: ZM HQY MDLA CRWD AMBA of note.
Wednesday Before The Open: CPB CNK AEO GOOS VRA of note.
Earnings This Morning Of Note
BZUN +0.23, DCI +0.12 of note.
DKS (0.38) 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 Tuesday. (CNBC)
Coronavirus update: Eastern European cases rise. Dr. Scott Gottlieb warns of low level spread during the summer.
New York City takes curfew to 8:00 p.m. EDT from 11:00 p.m. EDT as looting remains problematic. (Patch)
Stitch Fix (SFIX) to cut 18% of staff. (WSJ)
Southwest Airlines (LUV) offers buyouts to employees to reduce workforce. (Reuters)
Apple (AAPL) to reduce the price of latest iPhones. (CNBC)
Stock Index Tracking
Current through 6/1 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 6/1 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 6/1 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:
May Monthly Auto and Truck Sales are due out during the day.
The Reserve Bank of Australia (RBA) is out with its latest interest rate policy decision on Tuesday night.
Geopolitical & Related
President Trump will visit the Saint John Paul II National Shrine in Washington, D.C. at 11:00 a.m. EDT. Then at 12:15 p.m. the president will sign an Executive Order to Advance International Religious Freedom. At 2:30 p.m. EDT the president receives his intelligence briefing and then at 4:00 p.m. EDT will meet with HHS Secretary Alex Azar.
Meetings, Calls & Conferences
Investor/Analyst Days & Conference Calls of Note: AYRO (webcast) KRC (Conference Call) GM BDGE NEON MRNA (Investor/Analyst Meeting)
Sellside Conferences: Cowen & Co Industrials, Robotics and Sustainability Conference (6/1-6/3). Benchmark Cyclical Conference. Goldman Sachs Travel & Leisure Conference (6/1-6/2). Credit Suisse Global Energy Conference (6/2-6/5). Credit Suisse Global Chemical & Agriculture, Packaging & Cement Series (6/2-6/3). Jefferies Global Healthcare Conference (6/2-6/4). Baird Annual Global Consumer, Technology and Service Conference (6/2 – 6/4). Bank of America Global Technology Conference (6/2-6/4). UBS Global Industrials and Transportation Conference (6/2-6/3). RBC Capital Markets Annual Global Energy & Power, Executive Conference (6/2-6/3). Bank of America Emerging Markets Debt & Equity Conference (6/2-6/3).
Industry Conferences: NAREIT Investor Conference For REIT Week (6/1-6/4).
Western Union (WU) bids for Moneygram (MGI) and is up 53%. No price as of yet.
Upgrades & Downgrades: