Monday, August 24, 2020
The Week Ahead
The NASDAQ 100, Dow Jones Industrial Average and S&P 500 were higher for the week. Meanwhile the Russell 2000 was lower.
1.Geopolitical and Fiscal Events. The evasive stimulus bill will drive headlines again this week. The Republican Convention takes place this week through Thursday.
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 new home sales, consumer confidence, durable goods orders, Q2 GDP (2nd estimate), pending home sales, personal income and University of Michigan Consumer Sentiment.
3.Earnings Releases. Notable releases this upcoming week include PANW SXI CRM MDT RY SPLK TD VMW DG DELL.
Monday, August 24
The Republican National Conventions begins virtually and in Charlotte, North Carolina. It will run through Thursday night when President Trump delivers the final speech.
President Trump holds a press conference with FDA Commissioner Hahn at 6 pm ET tonight to unveil “a major therapeutic breakthrough” in the fight against Covid-19. Speculation is that breakthrough regards blood plasma to treat COVID patients.
Tuesday, August 25
July New Home Sales are due out at 10:00 a.m. EDT and is expected to rise to 787,000 from 776,000 in June.
August Consumer Confidence is due out at 10:00 a.m. EDT and is expected to 93 from 92.6.
The latest NYSE and NASDAQ Short Interest Data is due out after the close and is through settlement of August 15th. During this period, the S&P 500 rose 3.74%.
Wednesday, August 26
July Durable Goods Orders is due out at 8:30 a.m. EDT and is expected to drop to 3.9% from 7.6%.
Thursday, August 27
Q2 GDP (2nd Estimate) is due out at 8:30 a.m. EDT and is expected to remain at -32.9%.
July Pending Home Sales are due out at 10:00 a.m. EDT and are expected to fall to 5.6% from 16.6%.
Federal Reserve Chairman Jerome Powell will speak in the morning from Jackson Hole, Wyoming at the Federal Reserve Kansas City Symposium.
Friday, August 28
July Personal Income is due out at 8:30 a.m. EDT and is expected to fall by -0.2% from -1.1%.
University of Michigan Consumer Sentiment – Final and is expected to remain at 2.8%.
Stocks Futures Are Higher By +29 On The S&P 500
Fun Fact: If the S&P 500 closes higher today, then it will be 17 up Mondays in the last 18 weeks.
Covid-19 Update With Latest Data
Cases reported 38,234 from 43,245 cases.
Tests 611,377 from 635,605
Positivity Rate 6.25% from 6.80%
Deaths 527 from 1,117
Hospitalizations 39,,030 from 41,968
Mortality Rate at 2.97% from 3.00%
source COVID tracking project
IPOs Priced: None of note.
Secondaries Priced: MHK of note.
Notes Priced of note: None of note.
Common Stock filings: MHK of note.
Mixed Shelf Offerings: FLO QTNT of note.
Convertible Offering Files: None of note.
Senior Notes Filed: None of note.
Courtesy of IPO Financial
Earnings After The Close:
None of note.
None of note.
News After The Close:
Faro Tech (FARO) buys Advanced Technical Solutions out of Sweden.
House passes $25 billion funding bill for the U.S. Postal Service.
Churchill Downs (CHDN) updates their plans for the Kentucky Derby.
Fitch downgrades Turkey to BB-.
Barron’s + on SYNA NKE WMT TGT TJX GM
President Trump on Saturday accused the FDA as being part of the “Deep State” and moves slowly on therapeutics.
President Trump held a press conference on Sunday at 5:30 p.m. EDT to approve via the Emergency Use Authorization the deployment of Blood Plasma from Covid-19 victims as a therapeutic.
Raises Dividend: LOW
Special Dividend: CWH UHAL
Stock Split Announcement:
Stock Buyback: GL W
Hourly Action: This week sees strength early and weakness late. 8/21 updated.
What’s Happening This Morning: Futures value reflects the change with fair value. We will still indicate the fair value direction.
S&P 500 +28 Dow Jones Industrial Average +257 NASDAQ +131 Russell 2000 +17.82. Fair values are higher. Asia higher and Europe higher. VIX November futures are at 25.10 from 26.25 this morning. Current VIX is at 22.47 from 22.52.
Gold, silver and copper higher. WTI Crude Oil and Brent Oil Futures higher. Natural Gas is lower. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $139.53 from $139.61 with yields at 0.64% from 0.636%.
Positive Sectors On Thursday: Technology, Consumer Cyclical and Utilities of note.
Negative Sectors On Thursday: Materials, Energy and Commincation Services of note.
One Month Winners: Industrials, Consumer Cyclical and Consumer Defensive of note.
Three Month Winners: Consumer Cyclical, Technology and Industrials of note.
Six Month Winners: Consumer Cyclical, Technology, Materials and Healthcare of note.
Twelve Month Winners: Technology, Consumer Cyclical and Communication Services of note.
Year to Date: Technology, Consumer Cyclical, Healthcare and Communication Services of note.
Upcoming Earnings Of (sorted by market cap, highest to lowest)
Today After The Close: PANW SXI ANAB HTZ of note.
Tuesday Morning: MDT BNS BMO HRL BBY SJM ATHM PINC HAIN SINA AMWD PLCE of note.
Gap Up: TRVN +8%, TLSA +5%, PLX +4%
Gap Down: MWK -15%, GRWG -8%
Earnings This Morning Of Note
None of note.
None of note.
Still to Report:
Erlanger Research Advance/Decline Line Chart – The trend is becoming pretty obvious. Close 8/24.
Courtesy of Phil Erlanger Research Inc.
Rags & Mags: Highlighted Stories may be clicked through to the original story.
5 Things to Know Before The Market Opens Today. (CNBC)
Stocks Making The Biggest Moves. (CNBC)
Coronavirus Update: 172 countries in on a global vaccine plan. (CNBC)
Tropical Storms Macro and Laura head to Gulf Coast. (AP)
Senior Advisor Kellyanne Conway to leave The White House to spend time with her family. (AP)
Democratic Presidential Candidate Joe Biden notes would shut down the country again if needed. (ABC News)
Former FDA Commissioner Dr. Scott Gottlieb notes that Convalescent Plasma may work and no serious side effects. (CNBC)
Companies continue to postpone dates for employees to return to offices. (WSJ)
Stock Index Trading
Current through 8/21 close. The Dow moved above its 5 and 10 day moving averages.
Bold means a change from prior day.
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. Updated through 8/20 close. EVL Ranges are again starting to get back to normal with the recent action, pay attention The Erlanger Value Line are available in Bloomberg for your review. Simply visit the Bloomberg App store at APP(GO) then find Erlanger Research and setup a trial.
Courtesy of Phil Erlanger Research, Inc.
None of note.
Geopolitical & Related
President Trump will be attending the Republican Convention this week and speaking every night along with his progeny. Today the president leaves for North Carolina and delivers remarks on Farmers to Families Food Box Program Distribution at 1:30 p.m. EDT in Mills River, NC.
Investor Events & Conference Calls
AKTS (Investor Call) XEL (Road Show)
Sellside Conferences: BMO Capital Markets Virtual Technology Summit 2020. (8/24-8/28)
Industry Conferences: World Orphan Drug Congress 2020 (8/24-8/27) Data Center World Conference and Expo (8/24-8/27)
Bristol-Myers (BMY) to buy Forbius, should close in Q4.
Upgrades & Downgrades For Monday 8/24 –
Today's Superstock Investor Stock Scorecard:
Pegasystems Inc. (PEGA)
by Superstock Investor
Needham upgraded Pega Systems (PEGA) to a buy. The current price is $119.87. is there value at this lofty level?
Stock data last updated 03/19/2019.
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