Morning Note – 2/5/19
In After Hours Trading IPOs on deck: Six on deck for this week including Alector, GossamerBio, Harpon Therapeutics, Monocle Acquisition, RMG Acquisition and Weatherbridge Acquisition. Secondaries on deck: Secondaries to be priced this morning AMD BLRX GLIBA IVR MCS. IPO Filings After The Close: no common stock offerings today. Announcements For Secondary Filings & Financings: MU price $1.8 billion of senior…
In After Hours Trading
IPOs on deck: Six on deck for this week including Alector, GossamerBio, Harpon Therapeutics, Monocle Acquisition, RMG Acquisition and Weatherbridge Acquisition.
Secondaries on deck: Secondaries to be priced this morning AMD BLRX GLIBA IVR MCS.
IPO Filings After The Close: no common stock offerings today.
Announcements For Secondary Filings & Financings: MU price $1.8 billion of senior notes. AMD files common stock offering. KBH files $300 million of notes.
Earnings After The Close:
Beat: ULTI +0.51, HIG +0.21, STX +0.14, RBC +0.10, BZH +0.09, LEG +0.09, HLIT +0.06, FN +0.05, GOOG +0.04, KMT +0.03, CTRL +0.01, VSM +0.01
Flat: QTNA, QGEN, APAM, AIV, ARE, AVB.
Missed: LM (3.26), GILD (0.26), SSD (0.26), LMNX (0.08), CBT (0.05), OLN (0.04), AEIS (0.03), GLUU (0.02), RTEC (0.01), CVCO (0.01).
Hourly Action This Past Week:
Intraday action remains very strong since the beginning of the year.
Courtesy of Quantitative Partners, Inc.
What’s Happening This Morning: Futures
U.S. futures: S&P +6, Dow Jones +96, NDX +23.75 and Russell 2000 +3.40 with fair values HIGHER LESSENING GAINS. Asia mixed with Shanghai closed and Europe higher.
Gold and silver lower with copper higher. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 121.63 with yields lower since Monday morning with the yield at 2.738%. Prices as of 8:10 a.m. EDT.
Top Sectors Monday: Industrial, Technology and Consumer Goods.
Weakest Sectors Monday: Conglomerates.
One Month Winners: Industrial Goods, Materials, Consumer Goods and Technology.
Three Month Winners: Utilities, Industrial Goods, Technology and Financials.
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: DIS CB SU VRTX DLR ALL EA APC MCHP CERN IQ SWKS DATA JKHY UGI of note.
Wednesday Before The Open: LLY FOXA GM BSX REGN EXC HUM CTSH SPOT CMI FDC TTWO of note.
Earnings This Morning Of Note:
Beat Estimates: BP +0.91, TDG +0.42, MLI +0.25, HLNE +0.23, SXC +0.19, WDR +0.11, LPT +0.11, ENR +0.11, VIAB +0.09, CTLT +0.08, EMR +0.08, CDK +0.08, BDX +0.07, WCG +0.07, VSH +0.06, FLOW +0.05, TECH +0.05, CNC +0.05, ACM +0.04, HAE +0.04, INGR +0.04, SBH +0.04, ARMK +0.02, PINC +0.02, AME +0.02, HUBB +0.02, EL +0.01, LAZ +0.01, UFS +0.01.
Flat: GLT, PBI, ENTG, LII.
Missed Estimates: AQUA (0.15), MSGN (0.05), JHG (0.04), ADM (0.04), IT (0.03), CHD (0.01), LITE (0.01), GPI (0.01).
Still to Report: AGCO, ARRY, BMI, CSWI, CTS, MHO, LABL, OAK, RL, ROLL.
Rags & Mags:
Top Story: President Trump to deliver the State of the Union. (Bloomberg)
Five Things You Need To Know To Start Your Day (Bloomberg) – State of the Union, Dinner with Fed, U.K. economy stalling, markets higher and coming up.
Commvault (CVLT) announces Sanjay Mirchandani named President and CEO immediately.
Profits expected to decline on Q1. (CNBC)
President Trump dines with Federal Reserve Chairman Powell last night. (CNBC)
Why Google lower in after hours. (Business Insider)
Southwest (LUV) to hold its first test flight to Hawaii. (CNBC)
Yesterday saw 1921 stocks rise and 955 fall on the NYSE. NASDAQ saw 2069 rise and 992 fall.
The SP 500 is still above its 50 day simple moving average but remains below 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 but remains below its 200 day simple moving average. All three indexes are now above their 5,10 and 20 day moving averages. The S&P 500 moved above its 100 day simple moving average yesterday while the Russell 2000 is close to this level.
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. Watch closely.
Courtesy of Quantitative Partners, Inc
YTD 88% of stocks are higher and 12% are lower. Updated 2/1/19 close with next update on 2/8/19 close.
Courtesy of Phil Erlanger Research, Inc.
Another strong day with all indexes above resistance.
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:
January ISM Non-Manufacturing Index is due out at 10:00 a.m. EDT and is expected to fall to 57 from 57.6.
$38 billion of 3 Year Treasuries auction at 1:00 p.m. EDT.
Today is State of the Union and President Trump will deliver it at 9:00 p.m. EST.
Conferences & Analyst Meetings:
Analyst Meetings/Notable Conference Call: PLUG (forum with Redditt), XRX (investor day), FVRG (biz update), SCHW (biz update), NTNX( tech talk on Xi Frame), IDT (investor day), ECL (biz update).
Sellside Conferences: none of note. Raymond James Chemicals Forum.
Industry Conferences: MicroStrategy World 2019.
M&A News & Rumors:
Significant Upgrades (to buy) & Downgrades (to sell or underweight)
Winners: AKTS +11%, CDXS +10%, APHA +6%, ALLT +5%,
Losers: OPK -14%, GLUU -10%, HLIT -10%, CTRL -10%, LMNX -7%, PRA -7%, AEIS -7%, RTEC -6%, LM -5%,