Morning Note – 3/7/19

Fun Fact: The S&P 500 has been lower 6 of the last 7 trading days YET it is only lower by 21.52 S&P points less than -1% drop. (from 2793.30 to 2771.78) In After Hours Trading IPOs on deck This Week: New IPO on deck for this week yet to be priced Futu Holdings. IPOs…

Fun Fact: The S&P 500 has been lower 6 of the last 7 trading days YET it is only lower by 21.52 S&P points less than -1% drop. (from 2793.30 to 2771.78)

In After Hours Trading

IPOs on deck This Week: New IPO on deck for this week yet to be priced Futu Holdings.

IPOs on deck for Today: Shock Wave Medical (SWAV) of note.

Secondaries on deck: HZNP EPZM BAND APLS of note.

Debt Offering on deck:  EPZM PS of note.

IPO Filings Announced After The Close: Tufin Software Technologies filed today to go public. Symbol will be TUFN.

Announcements For Secondary Filings & Financings:   APLS APVO  EPZM CLI PRAH BBCP SHSP file common stock offering.  EPZM files a convertible offering. JPM IBM ALBOfiles mixed shelf offering. DELL notes offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  CMTL +0.24, HIIQ +0.21, GWRE +0.15, MYRG +0.13, ASRT +0.10, YEXT +0.06, ABM +0.06, AEO +0.01


Missed:  REVG (0.09), CBPO (0.07), BREW (0.04), DSGX (0.01)

Positive Guidance: HIIQ KIDS

Mixed Guidance: CMTL GWRE

Negative Guidance: AEO

News After The Close:

Allegiant Air (ALGT) reaches deal with the Teamster dispatchers.

MSCI International (MSCI) names Andrew Wiechmann Interim CFO and Treasurer immediately.

General Dynamics (GD) wins $220 million Air Force contract.

Mobile TeleSystems (MBT) to pay $100 million fine on violations of the FCPA in Uzbekistan.

Baker Hughes (BHGE) Rig count for February 1,027 up 3 for the month.

Stock Repurchase: TECD CTSH (accelerated)

Dividend Increases: HMN SMTA(special dividend of $0.33) HRC

Notable Recent Insider Transactions Since 3/5: MEET 10% owner buy $2.74 million. ETM Chairman Emeritus buys $1.2M. 

Hourly Action This Past Week:

This is the worst week of the year for intraday action. Just ugly.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures have had a slow bleed from 2775 to 2770 on the S&P 500 overnight, rather boring, and now back to flat.

U.S. futures: S&P +2.25, Dow Jones +17, NDX +1 and Russell 2000 +3.60 with fair values FLAT. Asia and Europe lower.

Gold lower, silver higher and copper lower. WTI Crude and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price 121.92 with yields lower since Wednesday morning with the yield at 2.683% from 2.717%. Prices as of 8:20 a.m. EST.

Top Sectors Wednesday: None of note.

Weakest Sectors Wednesday: All lead by Healthcare, Industrials and Conglomerates on the downside.

One Month Winners: Conglomerates, Industrial Goods, Services and Technology.

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

Six Month Winners: Utilities.

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

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

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


Friday Before The Open: MTN WEX TEN BIG of note.

Earnings This Morning Of Note:

Beat Estimates:  TECD +0.52, FLY +0.38, MEI +0.22, BURL +0.06, SUP +0.06, CRCM +0.05, SSYS +0.02.


Missed Estimates: REZI (0.41), TWI (0.16), IMOS (0.15), IGT (0.13), CPG (0.10), KR (0.04), PLUG (0.01).


Rags & Mags:

Top Story: Huawei files suit against the U.S. Government challenging restrictions on product in the U.S. (WSJ)

5 Things You Need To Know To Start Your Day – (Bloomberg) . ECB announcement. No stock rally ahead? Brexit? Overseas weak. Day ahead.

Facebook (FB) to build encrypted messaging platform.

Some advertisers leaving Facebook (FB). (CNBC)

Study on China finds GDP overstated by 12%. (Financial Times)

General Electric (GE) may sell 50% stake in renewable energy jv. (Reuters)

Iran hackers targeted 200 companies over past two years. (WSJ)

Highlighted Stories may be clicked through to the original story.

Data Points:

Yesterday saw 687 stocks rise and 2187 fall on the NYSE. NASDAQ saw 705 rise and 2377 fall. The 10 day moving average (DMA) is fading. This needs to be watched.

The SP 500 is still above its 50 and 200 day simple moving average. The Russell 2000 is now below  its 50 day simple moving average but still  back below its 200 day simple moving average. The Dow is also above its 50 and 200 day simple moving average. The Dow and the S&P 500 are now above their  20 day moving averages. The Russell 2000 is back below its 5 day moving average and now below its 10 and 20 day moving average. The S&P 500 and the Dow Jones Industrial Average also moved back below their 5 day moving averages. The Dow is also back below its 10 day moving average.

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 when it ends below -200 for two straight days, which right now seems far away.

Courtesy of Quantitative Partners, Inc.

YTD 88% of stocks are higher and 12% are lower. Updated 3/1/19 close with next update on 3/8/19 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. Yesterday was another struggle all closing below support. Ugly.

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:

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

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


ECB Decision due out at 7:45 a.m. EST with press conference at 8:30 with ECB Head Mario Draghi.

Equifax (EFX) and Marriott (MAR) to testify on Thursday before Senate on last year’s data breaches.

Federal Reserve Governor Lael Brainard speaks at 12:15 p.m. EST.

President Trump meets with Treasury Secretary at 11:00 a.m. EST, Lunch with Secretary of State. Meets with Czech Prime Minister until mid afternoon.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: KAI (investor day) ETSY (investor day) CBRE (investor day) RYAM (investor day) IRDM (analyst day) ANTM (investor day) LB BKE CATO (monthly sales data)

Sellside Conferences: Daiwa Annual Investment Conference.  JP Morgan Aviation, Transportation & Industrials Conference.Credit Suisse Healthcare Conference.

Industry Conferences: South By Southwest Conference.

M&A News & Rumors:

Silicon Motion (SIMO) to sell FCI to Dialog Semiconductor, no terms announced.

Upgrades & Downgrades:

Pre-Market Movers:

Winners: ALSK +21%, UBX +20%, HIIQ +11%, PFNX +11%, CMTL +10%, GWRE +9%, CPG +6%, REVG +6%, IGT +6%,

Losers: BPI -15%, CTK -10%, BLDP -9%, APLS -7%, EPZM -6%, SHSP -5%, CBPO -5%, AGN -5%,