Fact of The Day – Morningstar reported passive funds (Open-End and ETFs) reported in flows of $46 billion in June after $2 billion of outflows in May. YTD $224 billion of inflows versus $218 billion.

Corporate Actions

IPOs on deck for today:  AMK CPAUU OACU MIRM GMAB FULC PHR ORCC

Secondaries on deck:  SENS NYMT FTSV EPRT EFC GMAB

Notes Priced: MPW

Common Stock filings: AMRN EFC NYMT KERN

Mixed Shelf Offerings filed: AUTL

Convertible Offering Files: 

Courtesy of IPO Financial

Earnings After The Close:

Beat: URI +0.23, UMPQ +0.13, IBM +0.09, SLG +0.08, EBAY +0.06, CCI +0.05, NFLX +0.05, CATY +0.03, TBK +0.01, AA +0.01.

Flat: BXS, PLXS.

Missed: EGBN (0.04), TCBI (0.02), CNS (0.01), CCK (0.01), LLNW (0.01), KMI (0.01).

News After The Close:

Netflix (NFLX) lower as new subscribers missed.

Wayfair (W) CTO John Mulliken and COO James Savarese to retire.

Advanced Auto (AAP) names Jason McDonell as Chief Marketing Offices as of 7/29.

Senator Chuck Schumer asks FBI to look at FaceApp and Kremlin ties.

Stock Repurchase: IBKC

Dividend Increase: SWK KEY

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

U.S. futures: S&P -5, Dow Jones -17, NDX -35  and Russell 2000 -0.28 with fair values higher across the board (exception Dow Jones).  Asia lower and Europe mixed, click through for details by country.

Gold lower,silver higher and copper lower. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, lower versus Pound and Yen. US 10 year Treasury price at $127.42 from $127.16 with yields at 2.055% from 2.09%. Prices as of 8:25 a.m. EDT.

Positive Sectors On Wednesday:  Utilities and Healthcare.

Negative Sectors On Wednesday: Industrials, Services, Conglomerates and Materials.

One Month Winners: Technology, Services and Materials.

Three Month Winners: Financials, Services, and Utilities.

Six Month Winners: Technology, Services and Consumer Goods.

Twelve Month Winners: Utilities, Services, Financials and Technology.

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

Hourly Action This  Week:

Updated through Wednesday close. Mixed week so far.

Courtesy of Quantitative Partners, Inc.

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

Today After The Close: MSFT ISRG COF CRWD SWKS CHWY ETFC PBCT SKX WAL FFIN OZK EXPO FFBC SCHL MRTN RECN BEDU.

Friday Before The Open: AXP BLK SLB SYF STT CFG RF NVR KSU GNTX ALV MAN IBKC SXT CLF.

Earnings This Morning Of Note 

Beat: UNH +0.14, NVS +0.13, PM +0.13, SBNY +0.13, WNS +0.11, GTLS +0.08, ALLY +0.08, MS +0.07, BX +0.06, BBT +0.04, SASR +0.03, DHR +0.03, STI +0.03, DOV +0.03, PPG +0.02, HON +0.02, TSM +0.02, SNA +0.01, WBS +0.01

Flat: None of note.

Missed: MTB (0.31), IIIN (0.19), WSO (0.13), ADS (0.12), SON (0.02), SAP (0.02), POOL (0.01)

Yet To Report: BMI, EWBC, GATX, GPC, HTLD, HOMB, NUE, UNP

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

Top News Story:  Earnings, earnings and more earnings.

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

U.S. and China making little progress on trade deal and some concerned whether negotiations will continue. (Bloomberg)

House killed impeachment resolution for President Trump 332-95. (The Hill)

House holds Attorney General William Barr and Commerce Secretary Wilbur Ross in contempt. (NYT)

House repeals tax on high cost health insurance 419-6 impacts HUM AET UNH ANTM among others. (NYT)

President Trump injects himself into $10 billion Pentagon cloud computing contract potentially impacting MSFT AMZN ORCL among others. (Bloomberg)

EU fines Qualcomm (QCOM) a second time, 242 million Euros. (CNBC)

New York City apartment sales declining post rent control laws. (Bloomberg)

Data Points

There were a couple more negative changes today.

Bold means a change from prior day.

The advance/decline line has improved dramatically and moved to a buy on 6/13. Updated through 7/12/19 close. The buy remains intact. Year to date model up 12.97% on the S&P 500. 3 buy signals and 3 cash signals in 2019.

The QPI10 Day Moving Average of Breadth (10DMA) is no longer in cash and moved to invested on 6/13/19.

Courtesy of Quantitative Partners, Inc.

YTD  71% (+2% week over week) of stocks are higher and 29% are lower. Updated 7/5/19 close with next update on 7/12/19 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 close.

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:

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

July Philadelphia Fed Index is due out at 8:30 a.m. EDT and is expected to rise to 5.0 from 0.3.1%.

June Leading Indicators are due out at 10:00 a.m. EDT and expected to remain at 0.0%.

Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT.

Geopolitical:

President Trump meets with the Prime Minister of the Netherlands.

Federal Reserve Atlanta President Raphael Bostic speaks at 9:30 p.m. EDT.

Federal Reserve New York President John Williams to speak at 2:15 p.m. EDT.

Conferences & Analyst Meetings:   (Conference Call)

Analyst Meetings/Notable Conference Call: None of note.

Sellside Conferences:  None of note.

Industry Conferences:  Alzheimer Association International Conference (through 7/18). American Association of Physicists in Medicine Annual Meeting (through 7/18). Microsoft Inspire (through 7/18)

M&A Activity:

8X8 (EGHT) buys Wavecell (private) for $125 million in cash and stock.

Genuine Parts (GPC) to buy Todd Group.

Upgrades & Downgrades:

Early Morning Gap Up/Down:

Gap Higher: NVS +6%, EBAY +5%.

Gap Lower: LLNW -16%, KERN -13%, NFLX -11%, AMRN -8% URI -6%, SAP -6%, CCK -5%, PLXS -5%.