Superstock Investor
Morning Briefing

Tuesday, February 18, 2020

Morning Matters:

The Week Ahead For February 17th to 21st

The NASDAQ 100, Dow Jones Industrial Average, S&P 100 and Russell 2000 were higher for the week.

1.Geopolitical and Fiscal Events. Wednesday sees the FOMC out with its latest minutes. The Democrats hold another debate on Wednesday night. Thursday sees the ECB announce its latest update. Also, on Thursday the PBOC is expected to ease again.

2.Economic Releases. Releases of note this week include the weekly chain store sales, oil/gas numbers, mortgage applications and jobless claims as well as Empire State Manufcturing, NAHB Housing Market Index, PPI, Housing Starts, FOMC Minutes, Philadelphia Federal Reserve Index, Leading Indicators and Existing Home Sales.

3.Earnings Releases. Notable releases this upcoming week include WMT MDT NTES ADI SO AEP RY DE.

Monday, February 17

Markets in the U.S. are closed for President’s Day.

Tuesday, February 18

February NFIB Small Business Optimism Index is due out at 10:00 a.m. EDT and came in last month at 75.

February Empire State Manufacturing is due out at 10:00 a.m. EDT and came in at 4.8 and the estimate is 6.3 for this month.

Wednesday, February 19

January PPI is due out at 8:30 p.m. EDT and came in last month at 0.1% and is expected remain at that level.

Federal Reserve open Market Committee (FOMC) releases its latest minutes from the January meeting at 2:00 p.m. EDT.

The latest Democratic Party Debate takes place in Las Vegas ahead of Saturday’s caucuses there. Thursday, February 20

February Philadelphia Federal Index is due out at 8:30 a.m. EDT and came in at 17 last month and is expected to come in at 10.70.

January Leading Indicators are due out at 10:00 a.m. EDT and are expected to improve to 0.4% from -0.3%.

The latest European Central Bank (ECB) announcement is due out at 7:45 a.m. EDT followed by a press conference at 8:30 a.m. EDT.

Friday, February 21

January Existing Home Sales are due out 8:30 a.m. EDT and the estimate is for it to fall to 5.42 million from 5.54 million.

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Market Matters:

Futures Set To Open Lower To Start The Week

IPOs on deck: None of note.

IPOs Filed:  None of note.

Secondaries Priced: None of note.

Notes Priced: None of note.

Common Stock filings: YETI of note.

Mixed Shelf Offerings: None of note.

Convertible Offering Files: None of note.

Senior Notes Filed: None of note.

Courtesy of IPO Financial

Earnings After The Close:

Beat: 

 AL +0.45  of note.

Missed: 

None of note.

Flat: 

None of note.

News After The Close (In Order of Time)

B. Riley Principal Merger Corp (BRPM) and Alta Equipment complete merger and will begin to trade as ALTG on 2/18.

Several 13F filings after the close from multiple hedge funds and Berkshire Hathaway (BRKA).

American Airlines (AAL) pulls Boeing (BA) 737 MAX from schedule until mid August.

Oshkosh (OSK) wins a $410 million Army contract and another contract $407.3 million order.

14 Americans tested positive for coronavirus after being evacuated from the Diamond Princess cruise ship in Japan.

Apple (AAPL) guides lower for Q2 due to production woes due to coronavirus.

Barron’s + on DAL LUV FDX UOS WBA KR COG LNG NFLX  and – on GOOGL FB.

Stock Repurchase Announcements: BMI GPI 

Dividend Increases: H VMC MPW AAP WMT GPC.

Gap Higher: GSX +13%, KR +6%, AGRX +6%, NCLH +4%, CEL +4%

Gap Lower: TSEM -7%, CAG -6, HSBC -5%, GOGL -5%, AAPL -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 -11 Dow Jones Industrial Average -132  NASDAQ -48  Russell 2000 -4.68. Fair values are higher. Asia mixed and Europe lower.

Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $131.33 from $130.92 with yields at 1.546% from 1.597%.  Prices as of 8:30 a.m. EDT.

Positive Sectors On Friday: Conglomerates, Utilities and Technology of note.

Negative Sectors On Friday:  Materials, Energy and Services 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:  VRSK A AWK NTR INVH CXO EXR VNO FANG DVN CHE ACC AMED.

Wednesday Before The Open:  ADI ETR GRMN GPC ELAN BHC ATHM DISH VIPS OC IART NHI.

Earnings This Morning Of Note

Beat:

ATH +0.53, AAP +0.29, LDOS +0.20, GSX +0.16, SITE +0.12, CEVA +0.08, MDT +0.06, TRU +0.05, VG +0.01 of note.

Flat: 

ALLE +0.00 of note.

Missed:  

WLK (0.31), CEQP (0.14), VMC (0.09), WMT (0.06), JELD (0.04), SFL (0.04), TSEM (0.04), USAC (0.03), BLMN (0.03), WAB (0.02) of note.

Still To Report: AEIS, BRKR, CHH, ECL, EXPD, FELE, INMD

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

Top News Story: 

5 Things To Know Before The Market Opens. (CNBC)

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

Stocks Moving This Morning. (CNBC)

Coronavirus (COVID 19) update sees deaths move over 1300. (Bloomberg)

Some Chinese factories start limited production after coronavirus closures. (NYT)

Former FDA Commissioner Scott Gottlieb notes that Japan on the brink of an outbreak. (CNCB)

Macau casinos to reopen Thursday after coronavirus closures. (Bloomberg)

Democratic Presidential Candidate Michael Bloomberg qualifies for the next debate. (CNBC)

Walmart (WMT) notes that holiday season disappoints. (CNBC)

DuPont (DD) names Edward Breen as CEO.

Dow (DOW) names CEO Jim Fitterling as Chairman.

Stock Index Tracking

All back to positive. Current through 2/14 close.

Bold means a change from prior day.

The advance/decline line model moved to cash 1/31 and last Friday moved back to a buy. Updated through 2/14. In 2019, the model was up 16.48% on the S&P 500 and this year is up 2.08%. 5 buy signals and 4 cash signals in 2019. Current buy signal ended with a gain of 9.83% and began on 10/17/19. We got back to a buy Friday as we kept the 10 DMA above +200 the last two days.

Courtesy of Phil Erlanger Research, Inc.

Economic & Related:

February NFIB Small Business Optimism Index is due out at 10:00 a.m. EDT and came in last month at 75.

February Empire State Manufacturing is due out at 10:00 a.m. EDT and came in at 4.8 and the estimate is 6.3 for this month.

API Petroleum Institute will release its weekly data at 4:30 p.m. EDT.

Geopolitical:      

President Trump will head to Los Angeles to meet with 2028 Olympic Organizers and then later meet with supporters before heading to Las Vegas.

Meetings, Calls & Conferences

Investor/Analyst Days & Conference Calls of Note: PLSE (Update) CRNC (Analyst Day) RHHBY (Event) HII WMT (Investor Day)

Sellside Conferences: None of note

Industry Conferences: Canadian International Auto Shows (2/14-2/23). Consumer Analyst Group of New York Conference (2.17-2/21)

M&A Activity

Franklin Resources (BEN) to buy Legg Mason (LM) for $50 a share in all cash deal.

Nicolet Bankshares (NCBS) to buy Commerce Financial Holdings, Inc. for $129.6 million.

1-800-FLOWERS (FLWS) to buy PersonalizationMall.com from Bed Bath & Beyond (BBBY)

Amherst Residential  to buy Front Yard Residential (RESI) for $12.50  share in cash.

Schweitzer-Maudit (SWM) to buy Tekra and Trient for purchase price of $155 million in cash.

Upgrades & Downgrades through 8:50 a.m. EDT 2/18

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Today's Superstock Investor Stock Scorecard:

Walmart Inc. (WMT)
by Superstock Investor


 

Walmart (WMT) missed by $0.06 with earnings of $1.38. The current price is $117.89.

Company Information

Company: Walmart Inc.
Sector: Food & Staples Retailing
Industry: Hypermarkets_Super Centers
Market Cap:  $282,787,000,000

Targets

  Price %Gain  
Current Price $99.85    
Price Target $99.85 0.0%  
Upper Bound $124.81 25.0%  
Lower Bound $84.87 -15.0%  

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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