CAPIS Morning Note -9/4/19. Hong Kong Kills Extradition Bill, Markets Rally

Breaking News -Starbucks (SBUX) lowers EPS Growth under +10% for 2020 fiscal year at Goldman Sachs Retailing Conference. Stock down -3%. Corporate Actions  IPOs on deck: None of note. IPOs Filed:  No filings after the close. Secondaries on deck: RWT PRAH QSR of note. Notes Priced:   PSXP of note. Common Stock filings:   WMS TPTX ADUS…

Breaking News -Starbucks (SBUX) lowers EPS Growth under +10% for 2020 fiscal year at Goldman Sachs Retailing Conference. Stock down -3%.

Corporate Actions 

IPOs on deck: None of note.

IPOs Filed:  No filings after the close.

Secondaries on deck: RWT PRAH QSR of note.

Notes Priced:   PSXP of note.

Common Stock filings:   WMS TPTX ADUS RWT PRAH of note.

Mixed Shelf Offerings filed:  ADUS of note.  

Convertible Offering Files:  OKTA AERI  ECPG of note.

Senior Notes Filed: MUSA of note.

Courtesy of IPO Financial

Earnings After The Close: 


COUP +0.18 HQY +0.10  of note.


GSM -0.03 of note.

News After The Close: (In time order after the close)

Scientific Games (SGMS) chosen to supply lottery instant games to Turkey.

Starboard takes 7.5% stake in Box (BOX) and it rises 7%.

Unifi (UFI) names Craigs Creaturo as EVP & CFO as of 9/9.

Federal Reserve St. Louis President James Bullard says the Fed needs to cut by 50 basis points.

Leidos (LDOS) wins $445 million Air Force contract.

Lumber Liquidators (LL) moves higher as former CEO Thomas Sullivan’s F9 Investments ammends filing to seek options for the company.

Federal Reserve Boston President Eric Rosengren spoke against more rate cuts.

Stock Repurchase: TGH VRTX FRME GWB PRAH.

Dividend Increase: BOOM.

Early Morning Gap Up/Down: (>4% or <-4%)

Gap Higher: NAV +17% COUP +12% RARE +10% PBYI +9% BOX +7% OMI +5% GSM +4%.

Gap Lower: SB -15% YRD -7% EGAN -5% TSN -5% AERI -4% RWT -4%.

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

U.S. futures: S&P +26 Dow Jones +239  NDX  +87  and Russell 2000 +13  with fair values mixed to flat. Asia and Europe higher click through for details by country.

Gold lower and  silver higher with copper also higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $132.02 from $131.83 with yields at 1.489% from 1.491%. Prices as of 8:40 a.m. EDT.

Positive Sectors On Tuesday: Utilities.

Negative Sectors On Tuesday: Industrials, Technology, Financials and Services.

One Month Winners: Conglomerates and Utilities.

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

Six Month Winners: Conglomerates,Consumer Goods. Technology and Utilities.

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

Year to Date: All higher except for Materials led by Conglomerates, Technology, Services and Industrials.

Hourly Action This  Week:

Updated through Tuesday close. Yesterday was a struggle.

Courtesy of Quantitative Partners, Inc.

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


Thursday Before The Open:  CIEN DCI LVGO MDP GII SCWX BITA SIG LE KIRK of note.

Earnings This Morning Of Note  


NAV +0.35 AEO +0.07 MIK +0.05 of note.


None of note.


VAR -0.02 of note.

 Yet to Report: 

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

Wall Street Journal Main Headline:

Top News Story:  Hong Kong Leader Carrie Lam withdraws extradition bill which would have allowed China to take Hong Kong citizens to China and was catalyst for protests. (CNBC)

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)

U.K. Prime Minister Boris Johnson loses Parliament vote that will prevent Brexit. Johnson will face a snap election. (NYT)

Walmart (WMT) changes its gun control laws.

Hurricane Dorian moves to a Category 2 as it hits Florida coast today. (NYT)

Apple (AAPL) to introduce a new low cost iPhone in 2020. (Nikkei)

WeWork to hold IPO roadshow next week. (Bloomberg)

Fortiv (FTV) to separate into two public companies. (Business Wire)

Gold to move above $1600? (Bloomberg)

Data Points

Stocks saw weakness in the Russell, Mid Cap and NASDAQ.

Bold means a change from prior day.

The advance/decline line moved to a buy on the close of 8/29. Updated through 9/3/19 close. Year to date model up 7.48% on the S&P 500. 3 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  59.66% (+2.66% week over week) of stocks are higher and 40.34% are lower. Updated 8/30/19 close with next update on 9/6/19 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:

MBA Mortgage Applications  fell -3.1% this morning at 7:00 a.m. EDT release.

August Car and Truck Sales are due out at 2:00 p.m. EDT.


The Bank of Canada announces its latest monetary policy decision.

The latest Federal Reserve Beige Book is due out at 2:00 p.m. EDT. 

President Trump will get a Hurricane Dorian update, lunch with the Secretary of State and make announcement on state opioid response grants.

Conferences & Analyst Meetings:   

Company Analyst Meetings and Conference Calls:   HUBS MTSC GNRC (Analyst Day) (Conference Call ).

Sellside Conferences: Barclays CEO Energy-Power Conference. Barclays Global Consume Staples Conference. Deutsche Bank Annual Finance & Leasing Conference. Gateway Annual Conference. Goldman Sachs Annual Retailing Conference. Raymond James Annual U.S. Bank Conference. Citi Global Technology Conference. Citi Biotech Conference. Robert Baird Global Healthcare Conference. Bank of America Merrill Lynch Gaming & Lodging Conference. D.A. Davison Annual Technology Conference. Cowen Global Transportation Conference. Well Farfo Healthcare Conference. Keefe, Bruyette & Wooods Insurance Conference.

Industry Conferences: LD Micro San Francisco Conference.

M&A Activity:

Realty Income (O) to buy 454 properties from CIM Real Estate Finance Trust for $1.25 billion.

CBIZ (CBZ) announces acquisition of all assets of Brinig Taylor Zimmer as of September 1st.

BMC Stock Holdings (BMCH) buys Heritage One Door & Carpentry.

Commvault (CVLT) to buy Hedvig for $225 million.

Upgrades & Downgrades: