Morning Note -5/14/19

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: Conversion Point Holdings (CPTI), Applied Therapeutics (APLT) and Postal Realty Trust (PSTL) of note. Secondaries on deck: None of note. Other Filings of Note:  ENB AVA files mixed shelf…

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: Conversion Point Holdings (CPTI), Applied Therapeutics (APLT) and Postal Realty Trust (PSTL) of note.

Secondaries on deck: None of note.

Other Filings of Note:  ENB AVA files mixed shelf offering. FIS files senior notes.

Courtesy of IPO Financial

Earnings After The Close:

Beat: LM +0.16, STE +0.10, IMMR +0.07, TME +0.05, IIIV +0.01 of note.

Flat:  of note.

Missed: TTWO (0.24), NVGS (0.11), KRNT (0.03), MIME (0.01)of note.

Still To Report: BILI, HOLI, STNE, VIPS.

News After The Close:

RE/MAX (RMAX) ends exclusive Redfin (RDFN) referral program.

Immersion (IMMR) settles with Samsung over licensing issues.

Equity Bancshares (EQBK) delays 10K.

Tencent Music (TME) Co-President and Director due to personal reasons.

Sprint (S) and T-Mobile (TMUS) consider concessions to advance merger approval.

USTR announces details on the next $300 billion of tariffs that could take effect the end of June.

Circor (CIR) delays 10Q.

Stock Repurchase: None of note.

Dividend Increase: LM 

Hourly Action This  Week:

Monday saw 5 hour  that were negative and two that were positive. A tough day.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 bottomed at 6:00 p.m EDT and have been rising since to the morning high.

U.S. futures: S&P +21.5, Dow Jones +162, NDX +72.50 and Russell 2000 +11 with fair values  HIGHER CUTTING INTO GAINS.  Asia mixed and Europe higher, click through for details by country.

Gold and silver lower with copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price $124.34 from $124.27 with yields lower since Monday morning with the yield at 2.419% from 2.416%. Prices as of 8:15 a.m. EDT.

Top Sectors Monday: Utilities.

Weakest Sectors Monday: Conglomerates, Technology, Services, Industrial Goods and Financials.

One Month Winners: Conglomerates and Utilities.

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

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

Twelve Month Winners: Utilities, Services, Healthcare and Conglomerates

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)


Wednesday Before The Open:  BABA M TSG ERJ TSEM PLCE PPDF RUBY of note.

Earnings This Morning Of Note 

Beat: of note GDS +0.87, CTST +0.19, RL +0.17, CYBR +0.15, MIXT +0.04, BEST +0.03, HUD +0.02 of note.

Flat: None of note.

Missed: None of note.

Still To Report:  TAK of note.

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

Top Story: President Trump notes will have handle on China in 3-4 weeks. (Reuters)

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

Federal Reserve New York President John Williams notes that the tariffs are impacting the economy already in Bloomberg interview. (Bloomberg)

U.S. believes Iran attacked Saudi oil tankers. (WSJ)

Saudi Oil Minister notes that pipelines were hit by terrorists. (CNBC)

U.S. may send 120,000 troops to the Middle East to counter Iran. (NYT)

Chinese nuclear option: selling U.S. bonds. (CNBC)

Democratic Candidate Joe Biden notes would consider breakup of Facebook (FB). (AP)

Facebook (FB) settlement could see 20 years of oversight. (Reuters)

Bitcoin goes over $8000 this morning. (CNBC)

Boeing (BA) did not monitor flight control system safety assessments. (WSJ)

Data Points

No changes of note. Several indexes saw their 50 and 200 day moving averages violated.

Yesterday saw 416  stocks rise and 2506 fall on the NYSE. NASDAQ saw 513 rise and 2623 fall. The lowest advance/decline line (spread) of the year.

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 76% (-3% week over week) of stocks are higher and 24% are lower. Updated 5/10/19 close with next update on 5/17/19 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.

All indexes closed below support on Monday. In the last 5 days, two days below support across the board.

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:

April NFIB Small Business Optimism Index was out at 6:00 a.m. EDT and came in at 103.50 from last month’s 101.80.

April Import and Export Prices due out at 8:30 a.m. EDT and last month rose 0.6% and 0.7%.

Weekly API Petroleum Institute Crude Oil and Gasoline Inventories due out at 4:30 p.m. EDT.


President Trump heads to Louisiana to tour the Cameron LNG Export Facility and then heads to New Orleans for some fundraising.

Secretary of State Mike Pompeo moves onto talks with Russians on Syria and Venezuela after rescheduling to Brussels for Monday.

Senate holds a hearing on 5G at 11:00 a.m. EDT.

Conferences & Analyst Meetings: 

Analyst Meetings/Notable Conference Call: XLNX (investor day) LDOS (investor day) WBT (investor day) HON (investor day) PBA (investor day)

Sellside Conferences: Bank of America Healthcare Conference. JP Morgan TMT Conference. Keefe, Bruyette & Woods European Financials Conference.

Industry Conferences:  None of note.

M&A Activity

Federal Signal (FSS) to buy Mark Rite Lines Equipment Company for $55.5 million.

Upgrades & Downgrades

Best Upgrade of the Day:

Worst Upgrade of the Day: None of note.

Early Morning Gap Up/Down:

Gap Higher: IMMR +18%, STNE +6%, CYBR +6%, BILI +5%, AES +4%.

Gap Lower: SLDB -13%, LMNR -7%, TME -5%.