Morning Note – 3/8/19

Not A Fun Fact: The S&P 500 is now lower 7 of the last 8 trading days. In After Hours Trading IPOs on deck This Week: Both IPOs on deck for this week have been priced . IPOs on deck for Today: Futu Holdings (FHL) and Cresecent Funding (CRASA) of note. Secondaries on deck: of note….

Not A Fun Fact: The S&P 500 is now lower 7 of the last 8 trading days.

In After Hours Trading

IPOs on deck This Week: Both IPOs on deck for this week have been priced .

IPOs on deck for Today: Futu Holdings (FHL) and Cresecent Funding (CRASA) of note.

Secondaries on deck: of note.

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

Announcements For Secondary Filings & Financings:   WTER BJ TRTX common stock offering. ZYXI files mixed shelf offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat:  COST +0.32, DXPE +0.23, UPLD +0.09, AOBC +0.04, OKTA +0.04, INSG +0.02, LOCO +0.02

Flat: KFY

Missed: CWH (1.09), WTRH (0.43), INSY (0.12), EB (0.07), GSHD (0.04), NVEE (0.04), TTOO (0.03), MRVL (0.01), ERII (0.01), CYRX (0.01), CHUY (0.01)

Positive Guidance: UPLD

Mixed Guidance: AOBC NVEE OKTA 


News After The Close:

Hawaiian Airlines (HA) saw February traffic RPMs up +2.3%, ASMs +2.8% while load factor fell 0.3.

Align Technologies (ALGN) reviews ITC ruling and will appeal decision that went against them.

Pzena (PZN) reports AUM rose to $37.6 billion from $36.6 billion in January.

EQT Corp. (EQT) announces that Gary E. Gould names COO.

Shell Midstream (SHLX) names Paul Goodfellow as Chairman.

FCC delays T-Mobile (TMUS) and Sprint (S) Merger determination.

Clear Channel Outdoor (CCO) names Christopher Eccleshare to succeed Robert Pittman as CEO.

Northrop Grumman (NOC) awarded $320 million Navy contract.

Gilead (GILD) reports on two studies that support GS-6207 development in HIV therapies.

Navistart  (NAV) signs deal with Love’s Truck Stop.

Stock Repurchase: TRN

Dividend Increases: UHAL( special of $0.50), TRN, COLD, AMT, WYND and AMAT.

Notable Recent Insider Transactions Since 3/7: HAIN sees Engage Capital take stake to 16.2% ($82 million) and Director ($82 million).

Hourly Action This Past Week:

This is the worst week of the year for intraday action. Ugly early and then attempts to rally late in the day.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures have traded off by 15 points to 5:00 a.m. EST and have now rallied by 5 points to 2745.

U.S. futures: S&P -13, Dow Jones -125, NDX -42 and Russell 2000 -3.80 with fair values HIGHER ADDING TO LOSSES. Asia and Europe lower, click through for details by country.

Gold and silver higher with copper lower. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price 122.66 with yields lower since Thursday morning with the yield at 2.639 from 2.683%. Prices as of 8:20 a.m. EST.

Top Sectors Thursday: Utilities and Conglomerates flat.

Weakest Sectors Thursday: All others lead by Services, Financials, Materials and Technology to the downside.

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

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

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):

Today After The Close:  None of note.

Monday Before The Open: None of note.

Earnings This Morning Of Note:

Beat Estimates: .


Missed Estimates: .

Yet To Report:  .

Rags & Mags:

Top Story: China sees trade data miss expectations. (CNBC)

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

Federal Reserve Chairman Jerome Powell to be interviewed by 60 Minutes on Sunday night.

Paul Manafort gets a lesser sentence of 47 months but will face another judge who is expected to be tougher. (CNBC)

White House to unveil latest “unbalanced budget” on Monday. (CNBC)

Tesla (TSLA) secures $521 million of financing in China  to build a vehicle and battery factory. (Bloomberg)

American Airlines (AAL) cancels flights and grounds jets for overhead bin problem. (CNBC)

DOL may increase the threshold for overtime to $35,000 from $23,000.

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 back below its 50 and 200 day simple moving average. The Russell 2000 is below  its 50 day simple moving average and below its 200 day simple moving average. The Dow is now below its 50 but still above 200 day simple moving average. The Dow and the S&P 500 are now below 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 and this morning the model is back to cash. For a move to a buy from cash, the 10DMA needed to have two days in row above +200 which happened January 7th.

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. A review of the past two weeks shows deterioration.

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 Nonfarm Payrolls are due out at 8:30 a.m. EST and are expected to fall to 173,000 from 304,000. The unemployment rate is expected to is expected to 3.8% from 4.0%.

January Housing Starts are also due out at 8:30 a.m. EST and are expected to rise to 1,180,000 from 1,078,000.


Federal Reserve Chairman Jerome Powell speaks at  10:00 a.m. EST.

Federal Reserve San Francisco President Mary Daly also speaks at 10:00 a.m. EST.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: ON (analyst day), PSMT (monthly sales).

Sellside Conferences: Daiwa Annual Investment Conference concludes.

Industry Conferences: South By Southwest Conference concludes.

M&A News & Rumors:

Deutsche Bank (DB) and Commerzbank resume merger talks. (Bloomberg)

Airbnb to buy Hotels Tonight which was recently valued at $465 million.

ResMed (RMD) completes acquisition of HB Health out of South Korea, no terms.

Casey’s General (CASY) buys Fantasy’s Convenience Stores and Ride The Wave carwashes, no terms.

Upgrades & Downgrades:

Pre-Market Movers:

Winners: MDCA +15%, ERII +13%, JYNT +10%, ARDX +8%, UPLD +8%, CYRX +7%

Losers: EB -25%, FIZZ -19%, NVEE -18%, WTER -16%, NSTG -13%, TRVN -13%, INSY -12%, TTOO -8%, OKTA -8%, KFY -7%, AOBC -6%, ARQL -5%, CWH -5%, TLRY -5%.