Morning Note -2/15/19

DAILY HINT – When you see a blue highlight there is a link behind that text and it will take you to the story we have written about. In After Hours Trading IPOs on deck This Week:  Five on deck were scheduled for this week including Avedro, Cibus Global, Stealth BioTherapeutics, TCR2 Therapeutics and Virgin Trains…

DAILY HINT – When you see a blue highlight there is a link behind that text and it will take you to the story we have written about.

In After Hours Trading

IPOs on deck This Week:  Five on deck were scheduled for this week including Avedro, Cibus Global, Stealth BioTherapeutics, TCR2 Therapeutics and Virgin Trains USA LLC. Several more pricings evolved as the week advanced.

IPOs on deck for Today: Acamar Partners Acquisition (ACAMU), DiamondPeak Holding Unit (DPHC), Hoth Therapeutics (HOTH), Stealth Bio Therapeutics (MITO).

Secondaries on deck: Secondaries to be priced this morning AKAO BNKL ICE REED. 

IPO Filings Announced After The Close  No common stock offerings filed today.  

Announcements For Secondary Filings & Financings  IRM AIRG files mixed shelf offering. INCY files a common stock offering.  

Courtesy of IPO Financial

Earnings After The Close:

Beat:  ACOR +1.05, ANET +0.19, AEM +0.12, SSNC +0.10, AIRG +0.09, MRC +0.07, TREX +0.07, LOGM +0.06, TNET +0.06, NVDA +0.05, SPXC +0.05, RDFN +0.05, CGNX +0.04, GLOB +0.03, MX +0.03, AMN +0.02, AMAT +0.02, CC +0.02, BL +0.02, TLND +0.01, RWT +0.01, PDFS +0.01


Missed: WES (0.20), WGP (0.16), MERC (0.15), XPO (0.10), CVA (0.05), CBS (0.03), VICI (0.02), TRUE (0.02)

Positive Guidance:  



Index Changes: AMED to join S&P 400 Mid Cap. IIPR to joing S&P 600 Small Cap.

News After The Close:

Multiple Hedge Funds, Investment Companies and Investment Advisors announced latest position changes after the close. Of note, Warren Buffet cut stake in ORCL.

Fedex (FDX) names Raj Subramaniam President and COO as of March 1.

Senate passes funding bill 83-16. House vote 300-128 on funding bill.

Yamana Gold (AUY) provides 2019-2021 outlook and strategy overview.

Hourly Action This Past Week:

Intraday action remains strong since the beginning of the year. However last week and now this week have seen mixed action. Intraday action usually leads trend changes.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures 

U.S. futures: S&P +8, Dow Jones +75,  NDX +22and Russell 2000 +3.60  with fair values HIGHER CUTTING INTO GAINS.  Asia lower  and Europe higher (for country change click through)

Gold, silver and copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price 122.16 with yields lower since Thursday morning with the yield at 2.657%. Prices as of 8:10 a.m. EDT.

Top Sectors Thursday: Healthcare and Technology.

Weakest Sectors Thursday: Consumer Goods, Financials and Industrials.

One Month Winners:  Industrial Goods, Technology, Utilities, Services and Consumer Goods

Three Month Winners: Technology, Industrials, Utilities and Services.

Six Month Winners: Utilities.

Twelve Month Winners: Utilities, Healthcare and Conglomerates.

Year to Date: All higher led by Industrial Goods, Conglomerates, Materials, Services, Technology and Financials.

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

Today After The Close: KHC NEXA.


Earnings This Morning Of Note:

Beat Estimates: TYPE +0.22, CPSI +0.20, WBC +0.15, DAN +0.06, NWL +0.06, ENB +0.03, POR +0.01

 Flat:  SXT

Missed Estimates: YNDX (2.51), DE (0.22), MCO (0.05), FTS (0.05), ZEUS (0.03), HE (0.02), PEP (0.01)

Rags & Mags:

Top Story: President Trump to sign the funding bill today. (CNN)

5 Things You Need To Know To Start Your Day (Bloomberg) – President Trump to sign funding bill, China trade talks productive,  overseas markets stall and economic data due out.

U.S. and China Trade Talks continue next week in Washington D.C. and will seek to produce a Memorandum of Understanding. (Bloomberg)

Spain to hold a snap election after budget fails to pass. (CNBC)

Commerce Department to produce their review of auto tariffs on Sunday. (Reuters)

President Trump may seek through executive order Fannie Mae (FNMA) and Freddie Mac (FMMC). (Financial Times)

Brent Oil hits $65 before falling back. (CNBC)

Incyte (INCY) in 10-K discloses U.S. Department of Justicve investigating them.

Data Points:

Yesterday saw 1537 stocks rise and 1320 fall on the NYSE. NASDAQ saw 1544 rise and 1512 fall.

The SP 500 is still above its 50 day simple moving average and now above its 200 day simple moving average. The Russell 2000 is also above its 50 day simple moving average but below its 200 day simple moving average. The Dow is also above its 50 day simple moving average  and also above its 200 day simple moving average.  All three indexes are now above their 5, 10 and 20 day moving averages. 

The QPI10 Day Moving Average of Breadth (10DMA) moved to buy on January 7th at 2549.69. For a move to a buy from cash, the 10DMA needed to have two days in row above +200 which happened January 7th. The next move will be to cash or sell which right now seems a long ways off. 

Courtesy of Quantitative Partners, Inc

YTD  86% of stocks are higher and 12% are lower. Updated 2/8/19 close with next update on 2/15/19 close.

Courtesy of Phil Erlanger Research, Inc.


Yesterday was the first day of struggle for the indexes. Of late, we have been getting one a week.

The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. 

Economic & Related: 

Empire Manufacturing Survey for February is due out at 8:30 a.m. EST and is expected to rise to 7.0 from 3.9.

January Industrial Production is due out at 9:15 a.m. EST and is expected to fall to 0.2% from 0.3%.

University of Michigan Consumer Sentiment is due out at 10:00 a.m. EST and is expected to rise to 94 from 91.2o.


U.S. and China Mid Level Trade Talks in China concluded with meetings next week in the U.S..

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call:  MAT and HAS ( NY Toy Fair analyst meeting)

Sellside Conferences: KBW Winter Financial Services Symposium. 

Industry Conferences:Daytona Speedweeks. 

M&A News & Rumors:

Apple (AAPL) buys U.K. based Data Tiger.

Significant Upgrades (to buy) & Downgrades (to sell or underweight)

Pre-Market Movers:

Winners:  TLND +14%, TNET +13%, ACOR +9%, SSNC +8%, AIRG +8%, STNE +8%, CGNX +7%, CZR +6%, ANET +6%, SENS +5%, GLOB +5%, RDFN +5%, IIPR +5%, NVDA +5%, AUY +5%,

Losers: TRUE -20%, LOGM -17%, XPO -14%, AMN -10%, MX -9%, NWL -8%, SOLO -8%,