CAPIS Morning Note – 9/12/19
Breaking News – ECB cuts rates by 10 basis points as expected. Press conference at 8:30 a.m. EDT. Corporate Actions IPO News: IPOs on deck: SmileDirectClub (SDC) and 10x Genomics (TXG) of note. IPOs Filed: None filed after the close. Secondaries on deck: ALRS AMPH BHGE CYAD FATE IMXI of note. Notes Priced: None of note….
Breaking News – ECB cuts rates by 10 basis points as expected. Press conference at 8:30 a.m. EDT.
IPOs on deck: SmileDirectClub (SDC) and 10x Genomics (TXG) of note.
IPOs Filed: None filed after the close.
Secondaries on deck: ALRS AMPH BHGE CYAD FATE IMXI of note.
Notes Priced: None of note.
Common Stock filings: FATE CPRX of note.
Mixed Shelf Offerings filed: None of note.
Convertible Offering Files: HSKA BEST APLS of note.
Senior Notes Filed: CDW UBER of note.
Earnings After The Close:
TLRD +0.03 of note.
ORCL of note
OXM (0.02) of note.
News After The Close: (In time order after the close)
Great Lakes Dredge & Dock (GLDD) announces $141 million in new contracts.
Landstar (LSTR) lowers guidance.
Emerson (EMR) gives orders update. Three month trailing orders up 2% with one month up 3%, with currency impact of 1%.
Mark Hurd the CEO of Oracle (ORCL) will take a leave of absence due to health related issues.
Spotify (SPOT) Chief Accounting Office Luca Baratta will resign as of 9/16 and Controller Paul Sawyer to take on that roll.
Healthcare Realty (HR) Executive Chairman David Emery has taken a medical leave.
President Trump announce a two week delay to 10/15 from 10/1 on Chinese Goods from 25% to 30%.
DXC Technology (DXC) names Mike Salvino as President and CEO as of 9/11.
Bio-Rad Labs (BIO) files patent infringement suit against 10X Genomics (TXG) note going public today (see IPO section).
Yelp (YELP) may buy Groupon (GRPN) according to The Wall Street Journal.
Stock Repurchase: WWW LGND CHD VIAV
Early Morning Gap Up/Down: (>4% or <-4%)
Gap Higher: ADVM +17% APTX +5% HTZ +4% REVG +4%
Gap Lower: TOCA -82% TLRD -28% CPRX -12% CELH -10% ACB -8% OXM -8% DXC -8% FATE -5% LSTR -5% HSKA -5% APLS -4%
What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction.
S&P 500 +8 Dow Jones Industrial Average +39 NASDAQ +65 Russell 2000 +1. Fair values are higher except for the Russell 2000.
Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $130.17 from $130 with yields at 1.688% from 1.725%. Prices as of 8:45 a.m. EDT.
Positive Sectors On Wednesday: Industrial Goods, Utilities, Healthcare and Technology.
Negative Sectors On Wednesday: Consumer Goods.
One Month Winners: Utilities, Consumer Goods, Services and Technology.
Three Month Winners: Conglomerates, Consumer Goods, Technology, Services and Utilities.
Six Month Winners: Consumer Goods. Utilities, Conglomerates and Services.
Twelve Month Winners: Utilities, Technology, Consumer Goods and Services.
Year to Date: Conglomerates, Technology, Services, Consumer Goods and Industrials.
Hourly Action This Week:
Updated through Tuesday close.
Courtesy of Quantitative Partners, Inc.
Upcoming Earnings Of Note (sorted by market cap, highest to lowest)
Today After The Close: AVGO UEPS of note.
Friday Before The Open: None of note.
Earnings This Morning Of Note
MCFT +.04 KR +.03 of note.
None of note.
DLTH -.05 of note.
Yet to Report:
Rags & Mags: Highlighted Stories may be clicked through to the original story.
Wall Street Journal Main Headline: Trump Plans To Ban Flavored Vaping
Top Story of the Day: China wants to put trade in one box and national security in another box for upcoming talks. (WSJ)
Five Things You Need To Know To Start Your Day. (Bloomberg)
Five Things To Know Before The Market Opens Today. (CNBC)
Stocks making the biggest moves. (CNBC)
IEA notes oil market focus remains on demand as growth weakens globally. (IEA Release)
Saudis will consider a bigger OPEC cut in December. (CNBC)
Uber (UBER) will not comply with California law to treat drivers as employees. (NYT)
France states that Facebook (FB) Libra currency will not be allowed in Europe. (Reuters)
Supreme Court sides with President Trump on immigration related to asylum. (CNN)
Stock indexes are in good shape.
Bold means a change from prior day.
The advance/decline line moved to a buy on the close of 8/29. Updated through 9/10/19 close. Year to date model up 10.05% on the S&P 500. 4 buy signals and 3 cash signals in 2019. Cash has worked in August as we missed the volatility and now we are back to a buy.
Courtesy of Quantitative Partners, Inc.
YTD 61.26% (+1.59% week over week) of stocks are higher and 38.33% are lower. Updated 9/9/19 close with next update on 9/13/19 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 Tuesday’s 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:
August CPI is due out at 8:30 a.m. EDT and is expected to come in at 0.1% from 0.3%.
Weekly Jobless Claims due out at 8:30 a.m. EDT.
Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.
$16 billion of 30 Year Treasury Note at 1:00 p.m. EDT.
August Treasury Budget is due out at 2:00 p.m. EDT and came in at -$214 billion.
President Trump will attend the House Republican Conference Member Dinner.
The European Central Bank (ECB) is out with its latest monetary decision at 7:45 a.m. EDT followed by a press conference at 8:30 a.m. EDT with ECB Head Mario Draghi.
The Democrats hold their latest Presidential Debate in Texas at Texas Southern University from 8:00 p.m. to 11:00 p.m. EDT.
Conferences & Analyst Meetings:
Company Analyst Meetings and Conference Calls: AJG GPS CRL MA USB (investor day) CRY (conference call)
Sellside Conferences: Morgan Stanley Laguana Conference. Bank of America Merrill Lynch Media, Communications and Entertainment Conference. Jefferies Fitness & Wellness Conference.
Industry Conferences: Society of Hematological Oncology Annual Conference.
Rambus (RMBS) to buy Silicon IP and Secure Protocols business of Verimatrix, formerly Secure, for $65 million in cash.
First Community Banc (FCBC) to buy Highlands Bankshares (HLND) in cash/stock deal, value at $91 million.
Alamo Group (ALG) to buy Morbank for $352 million.
ANSYS (ANSS) to buy Livermore Software for $775 million in stock/cash combination.
Upgrades & Downgrades: