Corporate Actions

IPOs on deck for Today: None of note.

Secondaries on deck for Today: NMFC LBRT 

Notes Priced: None of note.

Common Stock filings: HQY WAAS NMFC LBRT  BV

Mixed Shelf Offerings filed: BV

Convertible Offering Files: 

Courtesy of IPO Financial

Earnings After The Close:

Beat:  None of note.

Flat: None of note.

Missed: None of note.

News After The Close:

Cohu (COHU) puts in place a temporary salary reduction and presents Fiscal Year 2020 model expectations.

Piper Jaffray (PJC) may bid for Sandler O’Neill per the WSJ.

Stock Repurchases Announced:  ADS

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 -11.60, Dow Jones -105, NDX -38.54  and Russell 2000 -6.89 with fair values higher.  Asia lower and Europe mixed, click through for details by country.

Gold, silver and copper lower. WTI Crude Oil and Brent Oil Futures higher . Natural Gas is lower. $ is higher vs Euro, Pound and Yen. US 10 year Treasury price $127.22 from $127.53 with yields at 2.067% from 2.04%. Prices as of 8:25 a.m. EDT.

Positive Sectors On Monday: Utilities.

Negative Sectors On Monday: Industrials, Healthcare,Technology and Financials.

One Month Winners: Technology, Services and Consumer Goods.

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

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

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

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

Hourly Action This  Week:

Last week we  saw selling in 4 hours. Yesterday was more of the same. Updated through Monday close.

Courtesy of Quantitative Partners, Inc.

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

Today After The Close:  HELE WDFC

Wednesday Before The Open: KHC MSM ANGO    

Earnings This Morning Of Note 

Beat:  PEP +0.03 

Flat: None of note.

Missed:  LNN (0.26)

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

Top News Story: 

Five Things You Need To Know To Start Your Day  (Bloomberg) Topics include Job’s Friday and preview. Big Deutsche Bank (DB) job cuts coming. Lasting trade peace difficult. Markets mixed.

Social Capital ‘s Hedosophia (IPOA) to invest $800 million in Virgin’s Galactic and merge. (CNBC)

U.S. and China continue trade talks but differences remain. (WSJ)

Federal Judge overrules Executive Order from President Trump calling for drug prices in pharmaceutical ads. (NYT)

Hong Kong kills extradition bill to China. (CNBC)

Investors question Deutsche Bank (DB) overhaul. (Bloomberg)

Potential hurricane could move into the Gulf of Mexico by the weekend. (CNN)

Data Points

All indexes broke their 5 day moving averages.

Bold means a change from prior day.

The advance/decline line has improved dramatically and moved to a buy on 6/13. Updated through 7/8/19 close. The buy remains intact. Year to date model up 12.00% 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 6/28/19 close with next update on 7/5/19 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. We have been seeing strength since last Thursday.

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:

June NFIB Small Business Optimism Index are due out at 6:00 A.M. EDT and came in last month at 105.

API Petroleum Institute Weekly Data is due out at 4:30 p.m. EDT.

$38 Billion of 3 Year Treasuries are auctioned at 1:00 p.m. EDT.

Geopolitical:

President Trump meets with the Amir of the State of Qatar.

Federal Reserve Chairman Jerome Powell speaks at 8:45 a.m. EDT.

Federal Reserve St. Louis President James Bullard speaks at 10:00 a.m. EDT.

Federal Reserve Governor Randall Quarles speaks at 2:00 p.m. EDT.

Federal Reserve Atlanta President Raphael Bostic speaks at 2:20 p.m. EDT.

Conferences & Analyst Meetings:  

Analyst Meetings/Notable Conference Call:  GIS (Investor Day)

Sellside Conferences:  None of note.

Industry Conferences:  International Society on Thrombosis  and Haemostatis Congress 2019 (through 7/10). BIO World Congress on Industrial Biotech & Ag 2019 (through 7/11). Semicon West (through 7/11).

M&A Activity

Social Capital ‘s Hedosophia (IPOA) to invest $800 million in Virgin’s Galactic and merge. (CNBC)

Cisco (CSCO) to buy Acacia Communications (ACIA) for $70 a share in cash.

Piper Jaffray (PJC) and Sandler O’Neill agree to merger with $350 million in cash and $135 million in stock.

Actuant (ATU) to sell Engineered Components & Systems unit to One Rock Capital for $214.5 million.

Upgrades & Downgrades:

Early Morning Gap Up/Down:

Gap Higher: ACIA +41%, MR +4%, OSTK +3%, OGI +3% 

Gap Lower: MFGP -9%, WAAS -6%, LNN -4%, NMFC -3%