Morning Note – 5/13/19 China Retaliates With 25% Tariffs

Corporate Actions IPOs on deck for This Week: A very busy week with 10 IPOs this week. Hot deal of the week Fastly ( FSLY). IPOs on deck for Today: None of note. Secondaries on deck: None of note. Other Filings of Note:  None of note. Courtesy of IPO Financial Earnings After The Close: None…

Corporate Actions

IPOs on deck for This Week: A very busy week with 10 IPOs this week. Hot deal of the week Fastly ( FSLY).

IPOs on deck for Today: None of note.

Secondaries on deck: None of note.

Other Filings of Note:  None of note.

Courtesy of IPO Financial

Earnings After The Close: None of note.

Beat: None of note.

Flat: None of note.

Missed: None of note.

Still To Report: None of note.

News After The Close:

Nielsen (NLSN) moves back bids for the company.

House Ways & Means Chairman Rep. Richard Neal issues subpoenas to Treasury Secretary Mnuchin and IRS Commissioner Rettig for Trump tax records.

Council of Economic Advisors Larry Kudlow notes that President Trump and Chinese President Xi may meet at G-20 in late June.

Stock Repurchase: None of note.

Dividend Increase: CNO MAN 

Hourly Action This  Week:

This week now sees five hours positive and tw0 hours that are negative. Updated through Friday.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 are very weak this morning.

U.S. futures: S&P -54, Dow Jones -467, NDX -193 and Russell 2000 -30 with fair values  LOWER HELPING SLIGHTLY LOSSES.  Asia and Europe mostly lower, click through for details by country.

Gold, silver and copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury price $124.27 from $123.98 with yields lower since Friday morning with the yield at 2.416% from 2.455%. Prices as of 8:15 a.m. EDT.

Top Sectors Friday: Utilities, Financials, Materials, Industrials, Technology and Consumer Goods.

Weakest Sectors Friday: Conglomerates.

One Month Winners: Conglomerates, Financials, Services and Industrials.

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

Six Month Winners: Technology, Conglomerates, Services, Industrials and Utilities.

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

Year to Date: All higher led by Conglomerates, Services, Industrials, Technology and Consumer Goods.

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


Tuesday Before The Open:  RL GDS CYBR HUD AZZ UXIN MIXT of note.

Earnings This Morning Of Note 

Beat: CPRX +.10.

 Flat: None of note.

Missed: INSY -.32.

Still To Report: JMIA of note.

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

Top Story: World markets lower as U.S. tariffs kick in on China. China to raise tariffs on U.S. Goods over 2,000 goods by 25% on June 1st (just breaking). (CNBC)

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

Two Saudi Arabian oil tankers were attacked near the Persian Gulf. (WSJ)

Walmart (WMT) and Target (TGT) may offer CBD products. (NY Post)

China wants favorable terms on its aircraft development in exchange for 737 Max approval in China, Boeing (BA). (Bloomberg)

European Trade Commissioner Malmstrom expects delay on May 18th auto tariff deadline. (Reuters)

Data Points

No changes of note. The only violations left are 50 and 200 day moving averages.

Yesterday saw 1852  stocks rise and 1003 fall on the NYSE. NASDAQ saw 1687 rise and 1384 fall.

The QPI10 Day Moving Average of Breadth (10DMA) is no longer  invested  and moved to cash with Wednesday close. For a move to cash from buy, the 10DMA needed to have two days in row below -200 and that happened on Wednesday’s close. For now, the best offense is a good defense.

Courtesy of Quantitative Partners, Inc.

YTD 79% (+1% week over week) of stocks are higher and 21% are lower. Updated 5/3/19 close with next update on 5/10/19 close.

Courtesy of Phil Erlanger Research, Inc.

Algo/HFT Trading Levels:

The Erlanger Value Lines track the intraday range of resistance, pivot and support used by Algo/HFT Traders. Each day we show where we closed within the range.

Friday saw all indexes close pivot to resistance coming back from below support.

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 CS:ERLA

Economic & Related:

Economic Releases. Releases of note this week and next include the weekly chain store sales, oil/gas numbers, mortgage applications and jobless claims as well as NFIB Small Business Optimism Index, Retail Sales, Empire Manufacturing, Industrial Production, Housing Starts, Philadelphia Fed Index, Leading Indicators and University of Michigan Consumer Sentiment Survey.

None of note today.


President Trump meets with the Prime Minister of Hungry this afternoon.

Secretary of State Mike Pompeo cancels talks with Russians on Syria and Venezuela and showed up in Brussels this morning to meet on Iran with European leaders.

Federal Reserve Vice Chairman Richard Clarida speaks at 9:10 a.m. EDT.

Conferences & Analyst Meetings: 

Analyst Meetings/Notable Conference Call: GM (conference call).

Sellside Conferences: None of note.

Industry Conferences:  None of note.

M&A Activity

Magic Software (MGIC) buys PowWow, no terms.

Arthur J. Gallagher (AJG) buys Verbag Versicherungsberatungs, no terms.

Colfax (CFX) looking to sell its air and gas unit to KPS Capital Partners for $1.8 billion.

E2open to buy Amber Road (AMBR) for $13.05 a share in cash.

Upgrades & Downgrades

Best Upgrade of the Day: Multiple recent IPOs got upgrades today ZM PINS TPTX MNRL.

Worst Upgrade of the Day: None of note.

Early Morning Gap Up/Down:

Gap Higher: CPRX +4%, GTE +3%

Gap Lower: INSY -8%, TEVA -8%, VOD -6%, TKC -5%, BZUN -4%, TTM -4%, MT -4%, SHOP -4%