Superstock Investor
Morning Briefing

Wednesday, February 05, 2020

Morning Matters:

Weekly Timing Chart Of The S&P 500

We are updating our look at the S&P 500 via our favorite chart of SPY through Tuesday's close.

The charts will be updated by the open.

The Weekly Displaced Moving Average (DMA) Channel (Yellow Band) sees the current price still above the channel. As such, bias remains positive from pullback.

[Image 1]

Second, the Erlanger Volume Swing (EVS) is at 9.24 from 10.61. Above 0 is good and below 0 is bad. The current action is now positive to mixed as itmoved below zero in the last week before recovering.

Third, the Erlanger Crossover Spread (EC) Spread is at -33.31 from -13.77 which moves to negative.

Last,the Erlanger Trend Direction (ETD) remains at pullback.

So what is an investor to do here? We would recommend to stay with strong stocks and start to trim the biggest winners that will see selling if any pullback begins now that we are in 2020.

Positioning in our Morning Matters Portfolio off this chart and several other indicators find cash is at 33% which is appropriate for the topping action here.

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Market Matters:

Futures Set To Open Higher For A Third Day This Week

IPOs on deck:  None of note.

IPOs Filed:  None of note.

Secondaries Priced:  None of note.

Notes Priced:  IART of note.

Common Stock filings:  ZIOP AFYA RAPT of note.

Mixed Shelf Offerings:  BW HIW of note.

Convertible Offering Files: PAR of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat: 

 USNA +0.43, NBIX +0.30, PRU +0.28, PLT +0.17, PAA +0.14, CB +0.13, ZAYO +0.11, CMG +0.11, MDU +0.10, RNR +0.10, CCK +0.09, DIS +0.09, MANH +0.09, KLAC +0.08, AINV +0.07, PCTY +0.07, BOOT +0.06, MCHP +0.06, STX +0.06, MODN +0.06, JKHY +0.05, VIAV +0.04, QGEN +0.04, ESE +0.03, CNXN +0.03, THG +0.03, AFL +0.02, APAM +0.02, OI +0.02, UNM +0.02, SNAP +0.02, SWI +0.02, IPHI +0.02, ATGE +0.02, DOX +0.01, ATO +0.01, CERN +0.01, ETH +0.01, GTES +0.01, HIW +0.01, PDM +0.01, MWA +0.01, TENB +0.01 of note.

Missed:

 OLN (0.37), GILD (0.37), PAGP (0.30), RRR (0.23), GNW (0.15), ALL (0.08), KN (0.05), F (0.05), MTCH (0.05), SCSC (0.04), NEWR (0.03), GL (0.02), FISV (0.01), YRCW (0.01) of note.

Flat: EGHT +0.00, CDK +0.00, TCS +0.00

News After The Close (In Order of Time)

Walt Disney (DIS) subs for Disney+ come in at 26,5 million beating estimates. Hulu rises to +33% year over year.

NASDAQ (NDAQ) reports January 2020 metrics for U.S. Equity Options of 178 million versus 147 million in December and 144 a year ago.

Best Buy (BBY) Board of Directors concludes review of CEO Corie Barry without any more action or comments.

Macy’s (M) will close 125 stores over the next three years, guides lower.

Walt Disney (DIS) CEO Bob Iger interviewed on CNBC post earnings.

FDA issues first approval of coronavirus diagnostic.

Index Changes: Investors Real Estate Trust (IRET) will replace Innophos Holdings (IPHS) in the S&P 600 as of 2/10 trading.

Stock Repurchase Announcements:  

Dividend Increases: SKYW GILD HIW MCHP MSBI AFL DOX MMM CSGS 

Gap Higher: USNA +20%, ORN +12%, QGEN +6%, YRCW +4%, JKHY +4%, ABB +4%, IRET +4%, UNM +4%, PHAS +4%

Gap Lower: PLT -32%, ZIOP -15%, KN -14%, NEWR -9%, F -8%, SNAP -8%, BOOT -7%, RAPT -7%, MTCH -7%, OLN -6%, TTWO -6%, SWI -5%, TSLA -4%, IMXI -4%

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

S&P 500 +27.46 Dow Jones Industrial Average +260  NASDAQ +103.45 Russell 2000 +16.68. Fair values are lower. Asia and Europe  higher.

Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is higher vs Euro, lower vs Pound and higher vs Yen. US 10 year Treasury price is at $130.63 from $131.05 with yields at 1.659 from 1.584%.  Prices as of 8:15 a.m. EDT.

Positive Sectors On Tuesday: Services, Consumer Goods and Healthcare of note.

Negative Sectors On Tuesday: Utilities of note.

One Month Winners: Conglomerates, Utilities, Technology and Consumer Goods.

Three Month Winners: Healthcare, Consumer Goods and Technology.

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

Twelve Month Winners: Consumer Goods,Technology, Utilities, Industrials and Services.

Year to Date: Conglomerates, Utilities, Technology, Consumer Goods and Industrial Goods.

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

Today After The Close:  

 QCOM MET SU CTSH ORLY AVB IAC CNF YUMC TWLO FOXA FMC LNC  OHI MPWR UHAL of note.

Thursday Before The Open:

PM SNY BMY BDX CI SPGI ICE BCE REGN YUM TWTR BLL TSN K FCAU CDW ODFL CAH ABMD of note.

Earnings This Morning Of Note

Beat:

 SUM +0.51, GPI +0.29, PFGC +0.14, NS +0.13, UMC +0.11, HUM +0.09, MCFT +0.08, TMHC +0.06, CPRI +0.06, AME +0.05, PAG +0.05, WD +0.05, DTE +0.05, ABB +0.04, COTY +0.03, NVT +0.03, BSX +0.02, MRK +0.01 of note.

Flat: None of note.

Missed:   

SPOT (0.78), CG (0.52), OSB (0.18), TKR (0.12), ENR (0.12), FSV (0.03), KFRC (0.01) of note.

Still To Report:  BMI, CYOU, GM, MHO, BTU, SR

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

Top News Story:  

Stocks making the biggest moves. (CNBC)

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

Coronavirus update. 65 dies yesterday bringing total to 496. (NYT)

Death toll from coronavirus will exceed 500 today. (Bloomberg)

U.K. scientists make a breakthrough in development of coronavirus vaccine. (Telegraph)

WHO plays down a potential vaccine for coronavirus. (CNBC)

Two cruise ships in Asia are quarantines as passengers have coronavirus. (CNN)

State of the Union reviewed. (NYT)

White House Economic Adviser Larry Kudlow says that coronavirus could delay Phase One Trade Deal. (Fox Business)

Iowa Caucus sees 71% of the vote in with Mayor Pete Buttigieg leading with 26.8% of vote. (NYT)

Tesla (TSLA) delays Model 3 delivery in China due to coronavirus. (CNBC)

Stock Index Tracking

All  stock indexes in trouble except NASDAQ 100. Current through 2/4 close.

Bold means a change from prior day.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

API Petroleum Institute released its weekly data yesterday at 4:30 p.m. EDT and saw a build of 4.2 million barrels for crude oil and gasoline had a build of 2 million barrels.

MBA Mortgage Applications rose 5% week over week.

January ADP Payroll Index is due out at 8:30 a.m. EDT and is expected to fall to 160,000 from 202,000. Came in at 291,000.

ISM Nonmanufacturing Index is due out at 10:00 a.m. EDT and expected to remain at 55.

Geopolitical:      

President Trump will lunch with the Secretary of Defense.

Federal Reserve Governor Lael Brainard will speak at 4:10 p.m. EDT.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note: COST (Monthly Sales Report 4:15 p.m. EDT) GM M (Investor Day)

Sellside Conferences: None of note.

Industry Conferences: NAPE Summit 2020 ((2/3-2/7).Global Hydrogen Energy Summit. (2/4-2/7). World of Concrete (2/4-2/7). Microstrategy 2020 (2/4-2/6). SEMICON Korea (2/4-2/7)

M&A Activity

GMS buys Trowel Trades Supply, no terms.

Upgrades & Downgrades


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Today's Superstock Investor Stock Scorecard:

Eaton Corp. Plc (ETN)
by Superstock Investor


 

Eaton (ETN) was upgraded at Deutsche Bank this morning. The current price is $100.91 which is a new high.

Company Information

Company: Eaton Corp. Plc
Sector: Capital Goods
Industry: Industrial Machinery
Market Cap:  $36,357,122,000

Targets

  Price %Gain  
Current Price $82.22    
Price Target $98.66 16.7%  
Upper Bound $123.33 50.0%  
Lower Bound $83.86 2.0%  

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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