Morning Note -3/20/19

Breaking News: U.K. will take Brexit delay only to June 3oth. After Market News IPOs on deck This Week: Lyft and Levi Strauss will go public this week at $62 to $68 and $14 to $16. Other IPOS this week 8i Enterprises, Alight Inc, Insurance Acquisition and Up Fintech Holdings. IPO News: Insta360 may come public…

Breaking News: U.K. will take Brexit delay only to June 3oth.

After Market News

IPOs on deck This Week: Lyft and Levi Strauss will go public this week at $62 to $68 and $14 to $16. Other IPOS this week 8i Enterprises, Alight Inc, Insurance Acquisition and Up Fintech Holdings.

IPO News: Insta360 may come public CNBC reports.

IPOs on deck for Today: Up Fintech (TIGR) of note.

Secondaries on deck: NSTG NOMD CDAY CWK ENTA INVH DERM TORC ILSUU  of note.

Convertible or Senior Notes on Deck: NTR of note.

IPO Filings Announced After The Close: None filed today to go public.

Announcements For Secondary Filings & Financings:  common stock offering. files mixed shelf offering.  files debt offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat: AIR +0.08, SMAR +0.06, SCS +0.03, TME +0.01


Missed: FDX (0.07), WPRT (0.04), FNV (0.02)

Mixed Guidance: SMAR SCS.

Lower Guidance: FDX AIR. 

News After The Close:

Chart Industries (GTLS) and Indian Oil Corporation to joint venture on LNG market in India.

SeaWorld Enertainment (SEAS) announced that COO John Reilly will leave as of March 31st.

Carlyle Group (CG) names Christopher Finn COO effective immediately.

Boeing (BA) awarded a $330 million Navy contract.

Lockheed Martin (LMT) awarded a $260 million Navy contract.

Viacom (VIAB) may pull content from AT&T (T) and its unit DirectTV as not willing to engage in “constructive conversations”.

Sage Therapeutics (SAGE) gets FDA Approval for the first treatment of Post-Partum Depression.

Dividend Increases:  FULT

Stock Repurchase: QTRX


Hourly Action This Past Week:

Monday’s strength was followed by Tuesday weakness. Odd trading.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 have been climbing since 10 p.m. EDT. We are near the highs for the morning.

U.S. futures: S&P +2.75, Dow Jones +32.00, NDX +10.50 and Russell 2000 +1.40 with fair values HIGHER CUTTING INTO GAINS.Asia mixed  and Europe higher, click through for details by country.

Gold, silver and copper lower. WTI Crude 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 122.89 from 122.86 with yields lower since Tuesday morning with the yield at 2.60% from 2.605%. Prices as of 8:15 a.m. EST.

Top Sectors Tuesday: Healthcare and Technology.

Weakest Sectors Monday:  Utilities, Financials and Services.

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

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

Six Month Winners: Utilities,Conglomerates and Technology.

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

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

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

Today After The Close: MU WPM WSM WOR MLHR GES QADA.


Earnings This Morning Of Note:

Beat Estimates: GIS +0.14

Missed Estimates: none of note.

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

Top Story: FedEx (FDX) warns global growth is slowing. (CNBC)

Five Things You Need To Know To Start Your Day. (Bloomberg)

UBS CEO calls Q1 one of the worst in recent memory. (Bloomberg)

EU fines Google (GOOGL & GOOG) 1.49 billion Euros for abusive online advertising.

U.K. Prime Minister Theresa May to seek “short” delay on Brexit. (FT)

U.K. and EU in disagreement of the length of the “short” delay. (Bloomberg)

Former Vice President Joe Biden appears ready to enter the fray and announce he is going to run for President. (WSJ)

Lyft (LYFT) is 2X oversubscribed. (Reuters)

The day before the Lion Air crash a pilot riding dead head saved the 737 Max 8 Boeing (BA) from a crash. (Bloomberg)

Petrobras (PBRA) to get cash injection of $18 billion from government and private sources. (Bloomberg)

Data Points:

We are changing the comments on the various moving averages to a table. The Russell 2000 fell below its 5 and 20 day moving average.

Yesterday saw 1127 stocks rise and 1761 fall on the NYSE. NASDAQ saw 1354  rise and 1706 fall.

The QPI10 Day Moving Average of Breadth (10DMA) is in cash for now. For a move to cash from buy, the 10DMA needed to have two days in row below -200 which happened on the close of March 8th.

Courtesy of Quantitative Partners, Inc.

YTD 84% of stocks are higher and 16% are lower. Updated 3/15/19 close with next update on 3/22/19 close.

Courtesy of Phil Erlanger Research, Inc.


The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. The change last week  is pretty impressive and continued on Monday.

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: ERLA <GO>

Economic & Related:

API Weekly Petroleum Data for week ended March 15th saw Crude Oil Inventories draw 2.133 million barrels and Gasoline had a draw of 2.794 million barrels.

Weekly MBA Mortgage Applications rose 1.6% this morning after rising 2.3% last week.

Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT.


The Federal Reserve Open Market Committee (FOMC) concludes a two day meeting with a rate announcement at 2:00 p.m. EDT and press conference at 2:30 p.m. EDT.

President Trump travels to Lima, Ohio to visit a Army Tank Plant and then hold a fundraiser.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: NTNX (investor day), VERI (investor day), MR ( analyst day). PAC (investor day), CX (investor day), ALXN (investor day).

Sellside Conferences: Roth Capital Annual Conference. Oppenheimer Annual Healthcare Conference. Bank of America Merrill Lynch Global Industrials and EU Autos Conference. William Blair Cancer Immunotherapy Conference. 

Industry Conferences: Semicon China 2019.

M&A Activity:

Kroger (KR) to sell Turkey Hill unit to Peak Rock Capital.

Nexstar (NXST) to sell 19 stations in 15 markets for $1.2 billion in cash post the Tribune Media (TRCO) acquisition.

Tencent (TCEHY) plans to bid for Watson. (Bloomberg)

Upgrades & Downgrades:

Pre-Market Movers:

Winners: SMAR +11%, NVRO +10%, LXRX +9%, SCS +6%, SAGE +5%.

Losers: FDX -7%, ENTA -7%, WPRT -6%, AIR -5%, TME -5%.