Superstock Investor
Morning Briefing

Wednesday, August 15, 2018

Morning Matters:

Comparison To SMH

Yesterday we looked to SMH in relation to where the price is compared to 2000. Today we are going to look at the NASDAQ Composite compared to its 2000 level. As our friend, Fred Meissner would say, this is a tale of two stocks.

[Image 1]

The NASDAQ Composite has broken out from its 2000 level and is rocketing higher. The breakout above 2000 happened in 2016 when it cleared 5000 and never looked back.


Market Matters:

Futures Lower This Morning On Turkish Fighting Back

In After Hours Trading

IPOs on deck . Secondaries of note CRZO GDDY VRAY WTW .

In After Hours Trading: SURPRISES LUXF +.10 M +.09 MSGN +.02. FLAT: MISSED: PFGC -.08.

Lower Guidance: .

Mixed Guidance: .

Positive Guidance: .

What's Happening This Morning

U.S. futures: S&P -17.75, Dow Jones -169, NDX -67.50 and Russell 2000 -9.10 with fair values lower. Asia and Europe lower.

Gold and silver higher and copper lower. WTI Crude and Brent Oil Futures lower. Natural Gas is lower. $ is lower vs Euro, lower vs. Pound and higher vs. Yen. US 10 year Treasury price 120.31 with yields lower since Tuesday. Prices as of 7:55 a.m. EDT.

Top Sectors None of note.

Weak Sectors All, led by Materials, Industrials and Financials.

One month winners Utilities, Healthcare and Consumer Goods.

Three Month Winners Utilities Conglomerates, Services and Technology.

Six Month Winners Services, Technology and Conglomerates.

One Year Winners All except for Utilities.

Year To Date Conglomerates, Services and Technology.

Earnings Expected

Earnings due after the close (by avg. trade volume): CSCO NTAP CACI SPTN BGG.

Earnings due tomorrow morning: WMT JD WUBA MSG LANC JCP QIWI.

Rags & Mags: Inside Wall Street

Bitcoin drops below $6000. (CNBC)

Wells Fargo (WFC) ups target on Nvidia (NVDA) to $315 from $140 in a double upgrade, something of a rarity. (CNBC)

Manafort lawyers rest without defense. Strategy could lead to an acquittal. (CNBC)

Turkey calls for boycott of U.S. goods. (NYT)

Tencent sees first profit drop in a decade. (WSJ)

Foreign investors flock to the U.S. (WSJ)

Farmers fate remains uncertain. (WSJ)

Reported Earnings This Morning

Reported This Morning: SURPRISES PETQ +.28 CDLX +.18 A +.04 CREE +.03 VIAV +.03 CASA +.01. MISSED: CGC -.24 HOLI -.03. FLAT:

Missing: .

Lower Guidance: CASA.

Current Morning missing: .

Mixed Guidance: VIAV.

Positive Guidance: .

Data Points

Yesterday saw 940 stocks rise and 1893 fall on the NYSE. NASDAQ saw 1046 rise and 1971 fall.

The SP 500 is above its 50 day exponential moving average and is above its 200 day exponential moving average. The Russell 2000 is now back below its 50 day moving exponential average and is above 200 day exponential moving average.

The 10 day spread moving average of breadth is now a sell. The Madison Market Timing Indicator is still invested.

YTD 53% of stocks are higher and 47% are lower. Updated 8/10/18 close.


July Retail Sales are due out at 8:30 a.m. EDT and are expected to fall to 0.1% from 0.5% in June. Came in at 0.5% which was better than expected.

July Industrial Production is due out at 9:15 a.m. EDT and is expected to fall to 0.4% from 0.6%.

Weekly Crude Oil Inventories are due out at 10:30 a.m. EDT. Yesterday the API Release after the close showed supply increasing so the price of crude is lower this morning.


Trump news fatigue continues, expect the unexpected.

Conference & Analyst Meetings

Meetings, Conference Calls or Announcements of note, IDXX TMUS ALNY FANG .

Citi 1 on 1 MLP/Midstream Conference.

Wedbush Pac Growth Healthcare Conference.

Conference of Note

Dell Technologies Forum 2018

M & A News

Diamondback Energy (FANG) is buying Energen (EGN) for $84.95 and it closed yesterday at $73.14.

Key Upgrades and Downgrades

Firm Upgrades Downgrades
JP Morgan IDRA   
Goldman Sachs    
Morgan Stanley CMG  SCHN 
Deutsche Bank    
Citigroup CC Merrill Lynchp    
Merrill Lynch    
Wachovia/Wells Fargo    
Credit Suisse    
Banc of America    
Stifel GWPH ZGNX   
William Blair    
Raymond James BOKF   
Piper Jaffray    
Robert W. Baird    
Sun Trust RH    
Sandler O'Neil    
Keefe Bruyette    
Cantor Fitzgerald    
HSBC Securities    
William Blair    
BNP Paribas    
B. Riley    
Brean Murray    
JMP Securities    
Janney Montgomery  
Think Equity    
Cantor Fitzgerlad    
BMO Capital  
Jesup & Lamont    
Canaccord Adams    
Global Hunter    



Today's Superstock Investor Stock Scorecard:

by Superstock Investor


McDonald's (MCD) stock is where it was last July. No progress. So the question is can we snatch up shares here for a potential move higher from the current price of $160.60?

Company Information

Sector: Consumer Services
Industry: Restaurants
Market Cap:  $92,100 (Millions)


  Price %Gain  
Current Price $127.96    
Price Target $121.18 -5.3%  
Upper Bound $147.26 15.1%  
Lower Bound $102.72 -19.7%  

Fundamental Variables

P/E Ratio 13.3    
Sales Growth 6.6%    

Valuation Variables

  Past Current Future
Profitability (CFROI) 10.1% 11.9% 9.1%
Growth (in Assets) 5.7% 4.5% 4.4%
Color Legend
Excellent Top 10%
Good 11- 30%
Average 31- 70%
Fair 71- 90%
Poor Bottom 10%

Stock data last updated 01/10/2017.

Data provided by QPI, Inc. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. QPI, Inc. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.


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