Superstock Investor
Morning Briefing

Thursday, April 04, 2019

Morning Matters:

Weekly Chart Updated

Each week we highlight charts below of the SP500, Russell 2000, NASDAQ Composite, UUP, EEM, TLT, HYG,LQD and recently GLD. The charts use the 50 day moving average slope indicator. When it is green we like the instrument we are tracking and when it is red we avoid the name/sector/asset class. Gold is at risk.

U.S. Equity indexes are now all positive as the rally continues. Emerging Markets are positive. The U.S. Dollar is negative. Bond ETFs are all positive now. GLD is the ETF that tracks the price of gold is positive now./p>

Remember what matters is the slope of the 50 day moving average not the 50 day moving average itself. As mentioned above, bond holders should be defensive for the time being. That said, we note the dollar is in rally mode.

All charts are created from www.erlangerchartroom.com and if interested in using this indicator in Chart Room please feel free to send us an email by using the Contact Us section from the home page.

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Charts courtesy of www.erlangerchartroom.com

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Market Matters:

Futures Higher This Morning

Corporate Actions

IPOs on deck for This Week: 5 IPOs for this week

IPOs on deck for Today: Tradeweb Markets (TW) , NGM Pharmaceuticals (NGM), Silk Road Medical (SILK) and Replay Acquisition (RPLAU)of note.

Secondaries on deck: QTT EVOP TCDA AVEO DBVT NSPR PULM of note.

Notes Priced: Tencent (TCEHY) prices $6 billion of notes. INFO.

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

Announcements For Secondary Filings & Financings:  AVEO SGMO DBVT common stock offering.  files mixed shelf offering. BZUN files convertible offering.

Courtesy of IPO Financial

Earnings After The Close

Beat: None of note.

Missed: RECN (0.02), LNDC (0.01).

News After The Close

Options and futures activity at the CBOE Global Markets (CBOE)for March was higher by 16.4% from February to 148.75 million contracts and futures rose 39.6% to 5.34 million.

Bloomberg notes U.S. & China deal would give China until 2025 to meet certain commitments.

Thestreet.com (TST) declares a one time dividend of $1.77 a share or $94.3 million and the Board approves a 1 for 10 reverse split effective 4/26.

Red Robin Gourmet Burger (RRGB) announces retirement of CEO Denny Marie Post. Board Chairman Pattye Moore to serve as Interim CEO.

Enersys (ENS) awarded a $420 million Defense Logistics Agency contract.

Stock Repurchase: 

10K Delays:

What’s Happening This Morning: Futures on the S&P 500 rose until 10:00 p.m. EDT and have been slipping since. That said , the range is rather narrow, 7 points.

U.S. futures: S&P -2, Dow Jones -2, NDX -16 and Russell 2000 -2 with fair values LOWER HELPING THE OPEN. Asia mixed and Europe lower, click through for details by country.

Gold, silver and copper lower. WTI Crude and Brent Oil Futures higher. Natural Gas is flat. $ is higher vs Euro, higher vs. Pound and lower vs. Yen. US 10 year Treasury price $123.64 from $123.477 with yields higher since Wednesday morning with the yield at  2.503% from 2.517%. Prices as of 8:15 a.m. EDT.

Top Sectors Wednesday: Technology, Services and Financials.

Weakest Sectors Wednesday: Conglomerates, Industrials and Materials.

One Month Winners: Technology, Consumer Goods, Services, Materials and Utilities.

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

Six Month Winners: Utilities, Conglomerates and Technology.

Twelve Month Winners: Healthcare, Services, Utilities, Conglomerates and Industrials.

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

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

Today After The Close: DLTH.

Friday Before The Open: GBX.

Earnings This Morning Of Note

Beat Estimates:

Missed Estimates:

Still to Report:

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

Top Story: Ethiopian pilots followed protocol which puts more pressure onBoeing (BA). (CNN)

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

J.P. Morgan’s (JPM) Jamie Dimon sees volatility as a harbinger of things to come. (Bloomberg)

Tesla (TSLA) Q1 deliveries are light and stock is under pressure. (CNBC)

Apple (AAPL) may not be able to roll out 5G phones this year due to relationship with Intel (INTC). (Fast Company)

U.K. Parliament passes bill to delay Brexit. (FT)

Data Points

We are changing the comments on the various moving averages to a table. The only negative moving average now is the Russell’s 200 day moving average.

Yesterday saw 1674 stocks rise and 1187 fall on the NYSE. NASDAQ saw 1810 rise and 1270 fall.

The QPI10 Day Moving Average of Breadth (10DMA) is invested on the open from cash Friday morning 3/22. For a move to cash from buy, the 10DMA needed to have two days in row above +200. We remain with a buy as our 10 day moving average remains above -200.

Courtesy of Quantitative Partners, Inc.

YTD 80% (+3% week over week) of stocks are higher and 20% are lower. Updated 3/29/19 close with next update on 4/5/19 close.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

Weekly Jobless Claims are due out at 8:30 a.m. EDT.

Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.

Geopolitical

President Trump meets with the White House Opportunity and Revitalization Council at 11:30 a.m. EDT and then with the Chinese Vice Premier Liu at 4:30 p.m. EDT.

Chinese Vice Premier Liu begins day two of trade talks.

Conferences & Analyst Meetings

Analyst Meetings/Notable Conference Call: RMD (investor day).  SNAP (SNAP Summit). F (Q1 Sales Call).  NMR (investor day)

Sellside Conferences:  BMO Cannabis Conference. William Blair Late Stage Therapeutics Conference. Deutsche Bank dbAccess Shipping Summit.

Industry Conferences:  None of note.

 M&A Activity

Snap on Tools (SNA) buys Hawk Industries for $8 million.

Constellation Brands (STZ) to sell 30 brands to E.J. Gallo for $1.7 billion.

Glacier Bancorp (GBCI) to buy Heritage Bancorp for $240.7 million.

Upgrades & Downgrades

Pre-Market Movers:

Winners: REPH +23%, TST +11%, CBLK +7%.

Losers: AVEO -27%, LNDC -15%, RECN -13%, SGMO -8%, TSLA -8%, DBVT -5%

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Today's Superstock Investor Stock Scorecard:

Caterpillar Inc. (CAT)
by Superstock Investor


 

Caterpillar (CAT) got a downgrade yesterday from Deutsche Bank. The question is with the p/e at 14 and the next year p/e at 10. Current price is $139.26. There is some upside to the upper bound.

Company Information

Company: Caterpillar Inc.
Sector: Capital Goods
Industry: Construction_Farm Machinery
Market Cap:  $83,019,803,500

Targets

  Price %Gain  
Current Price $134.15    
Price Target $127.44 -5.3%  
Upper Bound $159.30 18.8%  
Lower Bound $108.33 -19.3%  

Stock data last updated 03/19/2019.

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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