Correction Review – This morning we look at one of my favorite indicators RSI. The traditional RSI is 14 days and we use a 6 day to determine overbought and oversold. Recently we dipped under 30 and now have cleared that level. That gives us confidence the worst is over in the recent weakness.

Covid-19 Update With Latest Data From Friday 

Total Cases 7,198,589 from 7,154,198

Recovered: 2,840,688 from 2,813,305

Deaths 198,929 from 197,868

New Cases 44,431 from 36,947

Tests 784,478 from 812,773

Deaths 1,061 from 739

Current Hospitalizations 30.876 from 30,391

source COVID tracking project

Capital Raises

IPOs Priced:  Mission Produce (AVO) priced at $12 below range of $15 to $17. Pulmonx (LUNG) priced at $19 above range of $17 to $18.

Secondaries Priced: IMXI  SUI BEAM PAR LAD NNDM of note.

Notes Priced of note: None of note.

Common Stock filings: LOGC of note.

Selling Shareholders of note: 

Mixed Shelf Offerings: None of note.

Convertible Offering Files: None of note.

Senior Notes Filed: None of note.

Earnings After The Close:

Beats:

None of note.

Misses:

None of note.

Hourly Action – We continue with volatile action. Updated 9/30 close.

News After The Close:

Federal Reserve to extend measures to ensure large banks maintain high levels of capital resilience.

Allstate (ALL) to layoff 3,800 employees.

Goldman Sachs (GS) to layoff 400 employees.

Sturm Ruger (RGR) gets approval to buy Marlin Firearm Assets for $30 million in cash.

AMC Entertainment (AMC) announces more theater reopenings in California and Michigan.

Index Changes: SAIL to S&P 400 and SBH to S&P 600 on 10/5.

General Dynamics (GD) wins $1.2 billion Army contract.

Fluor (FLR) wins $1.1 billions Navy contract.

Lockheed Martin (LMT) wins $500 million Navy contract.

AstraZeneca (AZN) announces that FDA widens investigation into Covid-19 vaccine.

Dividend Increase: SBUX CMCL CAG

Dividend Suspended: CLI

Reinstates Or Initiates Buybacks:

Guides Higher: STM

Stock Split:

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

S&P 500 +28  Dow Jones Industrial Average +198 NASDAQ +170  Russell 2000 +20. Fair values are mixed.  Asia mixed and Europe higher. VIX December futures are at 29.75 from 30.05  this morning. Current VIX is at 25.81 from 26.62.

Gold and silver lower with copper higher. WTI Crude Oil lower and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, higher vs Pound and higher vs Yen. US 10 year Treasury price is at $139.75 from $139.69  with yields at 0.712% from 0.67%.

Positive Sectors On Wednesday:  Healthcare and Utilities of note.

Negative Sectors On Wednesday:  Energy, Financials and Industrials of note.

One Month Winners: Real Estate, Consumer Cyclical and Industrials of note.

Three Month Winners: Consumer Cyclicals, Materials and Technology of note.

Six Month Winners: Consumer Cyclical, Technology, Materials and Healthcare of note.

Twelve Month Winners: Technology, Consumer Cyclical and Healthcare of note.

Year to Date: Consumer Cyclical, Technology, Communication Services and Materials of note.

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

Today After The Close:  SGH of note.

Friday Morning: None of note.

Gap Up:

ADES +66%, AMAG +42%, SBH +7%, SAIL +7%, STM +7%, PRVB +6%, FLR +4%, PLTR +4%  of note.

Gap Down:

ZSAN -54%, SELB -45%, LOGC -24%, NNDM -13%, CLI -5%, IMXI -4%, PAR -4%, NG -4% of note.

Earnings This Morning Of Note

Beat:

BBBY +0.79, PEP +0.17, CAG +0.13 of note.

Missed:

None of note.

Still To Report: STZ

Erlanger Research Advance/Decline Line Chart –  Updated 9/30.

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 9/30 close. The Erlanger Value Line are available in Bloomberg for your review. Simply visit the Bloomberg App store at APP(GO) then find Erlanger Research and setup a trial. The correction cannot end until the EVL Range becomes normal again, i.e. no blue highlighting.

Courtesy of Phil Erlanger Research Inc.

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

Stocks Making The Biggest Moves – PEP BBBY AMZN (CNBC)

5 Things To Know Ahead of Today’s Trading. (CNBC)

Corona Virus Update: Vaccine participants produce intense reactions. (CNBC)

President Trump and Senate pass continuing resolution to fund government through 12/11.

White House issues Executive Order on rare earth minerals to increase production in the U.S.

House Speaker Pelosi delays floor vote on the latest Democratic Bill which is at $2.2 trillion to negotiate more with GOP Bill at $1.5 trillion. (The Washington Post)

Senator Mike Braun (R – IN) notes that at least 15 Republicans will go along with Democrats and White House on a stimulus bill. (CNBC)

Seven airlines have taken money from Treasury, BUT still no deal to avoid massive furloughs. (The Washington Post)

American (AAL) and United (UAL) to eliminate 32,000 jobs. (WSJ)

Department of Justice looking into Medtronic (MDT) and their ventilator production. (WSJ)

Marathon Petroleum (MPC) to cut 12% of workforce. (Reuters)

Stock Index Trading

Current through 9/30 close. More improvement on Wednesday.

Bold means a change from prior day.

Economic

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

August Personal Income is due out at 8:30 a.m. EDT and is expected to fall to -2.0% from 0.4%.

September ISM Manufacturing Index is due out at 10:00 a.m. EDT and is expected to stay at 56%.

August Construction Spending is due out at 10:00 a.m. EDT and is expected to rise to 0.8% from 0.1%.

Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.

Geopolitical & Related

President Trump will head to Trump National in Bedminster, NJ at 1:05 p.m. EDT to meet with supporters and then head back to Washington D.C. at 5:20 p.m. EDT before giving an interview to Fox at 9:00 p.m. EDT with Sean Hannity.

Investor Events & Conference Calls

REI BUD  (Conference Call) TWLO BAP (Investor Day) DTE (Update)

Sellside Conferences: Wolfe Research Utilities & Midstream Conference (9/29-10/1) Jefferies Virtual Gene Therapy/Editing Summit (10/1-10/2) JP Morgan Global Leaders Conference (10/1) Stifel Immunology & Inflammation Summit (10/1) Morgan Stanley Fixed Income Global Real Estate Conference (10/1) JMP Securities MedTech Bio Summit Conference (10/1-10/2).

Industry Conferences: World Vaccine Congress (9/28-10/01) VMworld (9/29-10/1)

M&A

Upgrades & Downgrades For Thursday – 10/1