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Market Matters:

Futures Weak Again This Morning As We Await Jobs Data
by Geoff Garbacz & Staff Writers

December 7, 2018

In After Hours Trading

IPOs on deck: Moderna (MRNA) Synthorx (THOR)

Secondaries on deck: INSP MNTA DMACD MVIS VIVE KIDS QTNT GBT common stock.

Filings After The Close: VIVE KIDS ATNT GBT common stock.

Courtesy of IPO Financial

Earnings From After the Close: none of note.

Surprises:  DOMO +0.32, AVGO +0.27 , SAIC +0.21 , CMTL +0.21, ZUMZ +0.06 , AOBC +0.06 , LULU +0.05 , ULTA +0.02 , DOCU +0.02

Misses:  UNFI (0.14), COO (0.10)

Flat:

Lower Guidance: ULTA COO ZUMZ

Mixed Guidance: DOMO AOBC UNFI

Strong Guidance: CMTL DOCU

News AfterThe Close:

PAR Technology (PAR) CEO steps down and Savneet Singh named Interim CEO.

IBM Corp (IBM) CEO Ginny Rometty discussed White House Technology Innovation Meeting on CNBC after the close.

Northrop Grumman (NOC) picks up $450M Air Force contract through 2025.

General Dynamics (GD) picks up $260M Army contract through 2023.

Huwawei CFO to have bail hearing at 1:00 p.m. EDT.

Dividend Raises:

PFBC EMN AXIS BMY ACA CHRW SOI OC HI DEI

Special Dividend: UHAL

Dividend Cuts:

Index Changes:

S&P 600: GPOR to replace OCLR prior to trading next Wednesday.

S&P 400: YELP to replace YELP prior to trading next Wednesday. 

What’s Happening This Morning:

U.S. futures: S&P -11, Dow Jones -112, NDX -33 and Russell 2000 -5 with fair values HIGHER CUTTING EXTENDING LOSSES. Asia mixed and Europe higher.

Gold, silver and copper higher. WTI Crude and Brent Oil Futures higher. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 120.34 with yields lower since Thursday morning. Prices as of 7:55 a.m. EDT.

Top Sectors Thursday: Technology and Services.

Weakest Sectors Thursday: Materials, Consumer Goods and Industrial Goods.

One Month Winners: Utilities and Healthcare.

Three Month Winners: Utilities.

Six Month Winners: Healthcare and Utilities.

Twelve Month Winners: Healthcare, Services and Conglomerates

Year To Date Winners: Healthcare, Services, Conglomerates and Utilities.

Earnings Ahead: (sorted by Market Cap and only most impactful and notables listed)

Earnings Expected After The Close: none of note.

Earnings Due Monday Morning: none of note.

Rags & Mags:

Oil moves higher as Russia hints at a bigger than expected production cut but nothing set. (CNBC)

Last night Federal Reserve NY President Williams noted that tariffs have hit confidence. (CNBC)

Other electric cars challenging Tesla (TSLA). (USA Today)

A review of the top IPOs of the year. (USA Today)

Five Things To Know Before You Start Your Day. (Bloomberg)

Federal Reserve Chairman Powell calls labor market very strong. (Bloomberg)

Crytpocurrency rout resumes as now as lowest level since 2017. (Bloomberg)

Traders do not know why stocks are moving and that is a problem. (Bloomberg)

The biggest swing in stocks since 2010. (Bloomberg)

Huawei CFO arrest shakes customer and investor confidence in Huawei. (NYT)

Unicorns move towards IPOs in 2019. (NYT)

Marlboro Man Should Skip the Marijuana for Now – Altria (MO). (WSJ)

Costco (COST) and Kroger (KR) Are Rising as Investors Seek Shelter. (Barron’s)

What the Arrest of a Chinese Executive Means for the Stock Market. (Barron’s)

Earnings Reported This Morning:

Surprises:

Misses: MTN (0.23), BIG (0.16)

Lower Guidance: BIG

Mixed Guidance:

Strong Guidance:

Date Points:

Yesterday saw 1137 stocks rise and 1838 fall on the NYSE. NASDAQ saw 1196 rise and 1915 fall.

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

The QPI10 Day Moving Average of Breadth (10DMA) moved to cash on 11/21. For a move to cash, the 10DMA needs to have two days in row below -200.

YTD 39% (+3%) of stocks are higher and 60% (+1) are lower. Of the stocks lower for 2018, the average drop is -27%. Updated 11/30/18 close with next update on 12/7/18 close.

Courtesy of Quantitative Partners, Inc.

Trading:

Yesterday saw the S&P 500, Dow Jones Industrial Average and the Russell 2000 all close pivot to support. All indexes closed their 5 minute range and above support after being there most of the day.

The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. 

Technical Takeaways

New short squeezes (Type 1s) and long squeezes (Type 4s) of note that have not been one in last two months.

Courtesy of Phil Erlanger Research, Inc

Economic:

November Nonfarm Payrolls are due out at 8:30 a.m. EDT and are expected to fall to 189,000 from 250,000. The unemployment rate is expected to stay at 3.7%.

December University of Michigan Sentiment is due out at 10:00 and expected to fall to 96.8 from 97.50.

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

Politico:

OPEC seeks to conclude its Thursday meeting where no decision was made about the production quota for 2019 as they seek to consult with Russia before making a final decision.

Federal Reserve Governor Lael Brainard to speak at 12:15 p.m. EDT.

Conferences & Analyst Meetings:

Analyst Meetings: SON WWD MGLN ITW

Sellside Conferences:

Roth Corporate Access Conference

M&A News & Rumors

Walmart (WMT) to acquire Art.com, no terms.

Altria (MO) makes 45% investment in Cronos (CRON) worth $1.8 billion.

Upgrades & Downgrades

Key Upgrades and Downgrades

Firm Upgrades Downgrades
JP Morgan    
Goldman Sachs    
Morgan Stanley    
Deutsche Bank    
CCitigroup CC Merrill Lynchp    
Merrill Lynch    
Wachovia/Wells Fargo    
Credit Suisse    
Banc of America    
UBS    
Needham    
Piper Jaffray    
Jefferies    
Stifel    
Nomura    
Raymond James    
HSBC    
Sun Trust RH    
Bernstein    
Moffet Nathanson    
Robert W. Baird    
Telsey Advisory    
Loop Capital    
MKM    
Sandler O'Neil    
Keefe Bruyette    
Cantor Fitzgerald    
CIBC    
Dresnder    
Nomura    
HSBC Securities    
Cowen  
William Blair    
BNP Paribas    
B. Riley    
Kaufman  
Brean Murray    
JMP Securities    
Wedbush    
Argus    
CLSA    
BB&T    
ING    
Roth    
Janney Montgomery  
Susquehanna    
Think Equity    
Merriman    
Cantor Fitzgerlad    
BMO Capital  
Benchmark    
Jesup & Lamont    
Macquarie    
Canaccord Adams    
Evercore    
MKM    
Bernstein    
CLSN    
Guggenheim    
Auriga    
Stephens    
BTIG    
Global Hunter    

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