Morning Note -3/21/19

Breaking News: Biogen (BIIB) and Eisai (ESALY) to end Phase 3 Trials of ENGAGE and EMERGE for Alzheimers as failed to meet primary end points. Could wipe out 30% of value. 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…

Breaking News: Biogen (BIIB) and Eisai (ESALY) to end Phase 3 Trials of ENGAGE and EMERGE for Alzheimers as failed to meet primary end points. Could wipe out 30% of value.

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, which went yesterday.

IPOs on deck for Today: Levi Strauss (LEVI) priced at $17 above range of $14 to $16. 8i Enterprises – Unit (JFKKU).

Secondaries on deck: CMBG QGEN EQH FTDR LQDA TGLS  of note.

Convertible or Senior Notes on Deck: of note.

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

Announcements For Secondary Filings & Financings:  CBMG common stock offering. EFC files mixed shelf offering.  files debt offering. CHGG file convertible note.

Courtesy of IPO Financial

Earnings After The Close:

Beat: WSM +0.13, QADA +0.12, MU +0.05, MLHR +0.03 


Missed: WOR (0.10), GES (0.05)

Mixed Guidance: MLHR WSM

Lower Guidance: QADA

News After The Close:

The Chief Technology Officer, Jeremy King,  of Walmart (WMT) leaves the company.

FBI joins criminal probe into Boeing (BA) and the 737 Max 8.

Ray Silcock named CFO at Perrigo (PRGO).

The latest report  from Raymond James (RJF) reports a rise 7% from a year ago and 3% from January.

Dividend Increases:  RTN CVBF

Stock Repurchase: MTG AZO WOR

10K Delays:  

Hourly Action This Past Week:

This is very streaky. Early and late weakness with middle of the day strength.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 rose until 9 p.m. EDT and since then have been falling.

U.S. futures: S&P -10, Dow Jones -99.00, NDX -30 and Russell 2000 -7.20 with fair values HIGHER LOWERING THE OPEN. Asia mixed  and Europe higher, click through for details by country.

Gold, silver and copper higher. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price 123.52 from 122.91 with yields lower since Wednesday morning with the yield at 2.517% from 2.60%. Prices as of 8:15 a.m. EST.

Top Sectors Wednesday: Materials, Technology and Utilities.

Weakest Sectors Wednesday:  Financials, Healthcare and Industrials.

One Month Winners: Technology, Conglomerates, 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: NKE CTAS JEF ZUO SCHL CAL HK.

Friday Before The Open: TIF JKS HIBB.

Earnings This Morning Of Note:

Beat Estimates: CSIQ +0.45, LE +0.09, DRI +0.05, GIII +0.03, CAG +0.02, CMC +0.02

Missed Estimates: CVIA (0.07).

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

Top Story: Fed to hold line on rate increases for the remainder of 2019. (CNBC)

Five Things You Need To Know To Start Your Day. (Bloomberg) Fed dovish. Trump wants to keep tariffs on. European Leaders Summit in Brussels. Markets mixed. Earnings and economic data.

EU surprised by the 3 month extension for Brexit. (Bloomberg)

New Zealand bans semi automatic guns immediately. (Bloomberg)

Republican Senators rally around Senator John McCain after President Trump comments. (CNBC)

U.S. allies deny request to remove Huawei equipment as 5G rolls out. (CNBC)

CVS to sell hemp products in 80 stores as a test. (Bloomberg)

Amazon (AMZN) blocking ads for unprofitable products. (Bloomberg)

Fed investigated Boeing (BA)  Airmax 737 8 software late last year. (Bloomberg)

Data Points:

We are changing the comments on the various moving averages to a table. The Russell 2000 fell below its 10 day moving average and the Dow below its 5 and 20 day moving averages.

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. We could be back to a buy with today’s action as our 10 day moving average is above +200.

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:

February Leading Indicators are due out at 10:00 a.m. EDT and are expected to rise to 0.2% from -0.1%.

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


The Bank of England (BOE) is out with its latest interest rate decision. No change is expected.

President Trump to meet with the Business Roundtable this morning and then to sign an Executive Order relating to free speech on college campuses in the afternoon. 

The Senate will hold hearings on Boeing (BA) regarding the 737 Max 8 next week, March 27th.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: ZEAL (R&D update), 

Sellside Conferences: Bank of America Merrill Lynch Global Industrials and EU Autos Conference. William Blair Cancer Immunotherapy Conference. BTIG Financials Conference.

Industry Conferences: Semicon China 2019.

M&A Activity:

ayCash was purchased by First Data Corp (FDC), no terms.

California Water (CWT) to acquire Kalaeloa Water Company, no terms.

KLX Energy Services (KLXE) has acquired two oilfield service companies and raises guidance for 2019.

Upgrades & Downgrades:

Pre-Market Movers:

Winners: CFMS +14%, PTE +10%, MLHR +6%, WSM +5%, 

Losers: BIIB -28%. GES -14%, CBMG -7%, UNIT -6%, WOR -5%