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"CAPIS Morning Note -12/10/19 All Eyes On The Federal Reserve"

posted by CAPIS on 12/11/2019 am31 7:36 am

by CAPIS

12/11/2019 am31 7:36 am

IPOs on deck: XP (XP)  of note.

IPOs Filed: None filed after the close.

Secondaries Priced: MDGL MRNS GMRE CNST  KIDS RCKT  PMT PACK of note.

Notes Priced:   None of note.

Common Stock filings:  AQST  RCKT MDGL MNTA PMT PACK GMRE PHR of note.

Mixed Shelf Offerings filed:  None of note.

Convertible Offering Files: PI of note.

Senior Notes Filed:  None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat:

 OLLI +0.03 of note.

Flat:

PLAY

Missed:

AGX (0.38), GME (0.66)  of note.

Hourly Action This Week:

Close of 12/6.

News After The Close (In Order of Time)

Ollie’s Bargain Outlet (OLLI) names James Swygert President & CEO as of today.

American Water Works (AWK) CEO Susan Story to retire next April and COO Walter Lynch to become CEO then.

Dropbox (DBX) Chief Customer Officer Yamini Rangan to leave.

Scientific Games (SGMS) gets a three year contract extension with the California State Lottery.

Leidos (LDOS) wins $6.5 billion Defense Information Systems Agency contract.

Index Changes see Choice Hotels (CHH) into S&P 400 and Plantronics (PLT) into S&P 600.

Stock Repurchase Announcements: ASB CMI LSTR

Dividend Increase:  FBHS MAA BEN

Gap Higher: WRTC +13%, XERS +11%, OLLI +10%, CHH +10%, PACK +7%, QFIN +4%.

Gap Lower: AQST -15%, GME -14%, KIDS -8%, MDGL -7%, RCKT -7%, AGX -6%.

What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction. 

S&P 500 +6 Dow Jones Industrial Average -1 NASDAQ +25 Russell 2000 +2. Fair values are lower. Asia mixed and Europe mixed.

Gold higher, silver lower and copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $128.92 from$129.16  with yields at   1.807%. Prices as of 8:30 a.m. EDT.

Positive Sectors On Tuesday: Healthcare and Materials of note.

Negative Sectors On Tuesday: Conglomerates, Real Estate and Industrials of note.

One Month Winners: Healthcare, Industrials and Technology.

Three Month Winners: Industrials, Financials and Healthcare.

Six Month Winners: Consumer Goods, Industrials, Technology and Healthcare.

Twelve Month Winners: Technology, Industrials and Services.

Year to Date: Technology, Industrials, Technology, Consumer Goods, Services and Financials.

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

Today After The Close:  

LULU NDSN OXM NX MESA TLRD  of note.

Thursday Before The Open:

CIEN LOVE of note.

Earnings This Morning Of Note

Beat:

PLCE +0.01 of note.

Flat:

PLAB

Missed:    

UNFI (0.15) of note.

Still To Report: AEO VRA

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

Top News Story:  Federal Reserve expected to make no changes. (CNBC)

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

Five  Things To Know To Start Your Day. (CNBC)

Director of Trade & Manufacturing Policy Peter Navarro interviewed on Fox Business says President Trump will get a great deal with China and put December 15th tariffs on. (Fox)

CNBC reports Chinese experts say if no cancellation of December 15 tariffs then no deal. (CNBC)

Senate Foreign Relations Committee moving forward to sanction Turkey and Russia over Syria. (Bloomberg)

Department of Justice to finish antitrust investigation into tech companies notes Attorney General William Barr. (Reuters)

China wanted to use World Bank to fund surveillance efforts. (Axios)

Chevron (CVX) will take a $10 billion write down.

Netflix (NFLX) notes that 26.4 million users watched “The Irishman” in first week. (WSJ)

Tesla (TSLA) to raise price of cars in China in January. (Reuters)

Notable Data Points

Most stock indexes remain strong. Current through 12/10.

Bold means a change from prior day.

The advance/decline line model is now a buy though it is struggling with the recent action. Updated through 12/10. Year to date model up 12.56% on the S&P 500. 5 buy signals and 4 cash signals in 2019. Current signal is a buy.

YTD 64% (-1% change week over week) of stocks are higher and 36% are lower. Updated  through 12/6 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. Update through 12/10.

Economic & Related:

API Petroleum Data saw crude oil inventories build by 1.41 million barrels after the close yesterday.

The latest NYSE and NASDAQ Short Interest Data released overnight and NYSE rose by 1.00% and NASDAQ fell by -0.17%.

MBA Mortgage Applications rose 3.8% from last week.

November CPI is due out at 8:30 a.m. EDT and is expected to come in at 0.2% from 0.4% in October.

Geopolitical:      

President Trump  will swear in the new Secretary of Energy at 3:30 p.m. and then tonight participate in a Hanukkah Reception.

The Federal Reserve Open Market Committee (FOMC) ends a two-day meeting with announcement at 2:00 p.m. followed by press conference at 2:30 p.m. EDT.

Conferences & Analyst Meetings:

Investor/Analyst Days & Conference Calls of Note:   AIPUY CLNY  CSCO YMAB SWI TREE HD KWR AWK CS  (Investor Day) PFG (Conference Call)

Sellside Conferences: UBS TMT Conference (12/9-12/11). Raymond James Technology Conference (12/9-12/11).  Imperial Capital Security Conference (12/10-12/11). Cowen Annual Networking and Cybersecurity Summit (12-10-12/11). Morgan Stanley Space Summit National Security The New Space Race (12/10-12/12). Citi Global Consumer Conference (12/10-12/11). Goldman Sachs U.S. Financial Services Conference (12/10-12//11). Barclays Global TMT Conference (12/11-12/12). Capital One Securities Energy Conference (12/11-12/12).

Industry Conferences: LD Micro Annual Main Event Conference (12/10-12/12). Gartner Identity & Access Management Summit (12/10-12/12). 4th Annual AI Summit. Citi Global 1X1 Healthcare Conference (12/11-12/12).

M&A Activity

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