Before the Open (Oct 19)

Good morning. Happy Thursday.
The Asian/Pacific markets closed mostly down. Japan, Taiwan and the Philippines posted gains. Hong Kong dropped more than 2%, Thailand fell more than 1%, and China, South Korea and Indonesia were also weak. Europe, Africa and the Middle East are currently weak. Turkey and Saudi Arabia are doing well, but the UK, Poland, France, Germany, Greece, Denmark, South Africa, Finland, Russia, Switzerland, Spain, the Netherlands, Italy, Belgium, Israel and Austria are weak. Futures in the States point towards a relatively big gap down open for the cash market.
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The dollar is down. Oil and copper are down. Gold and silver are up. Bonds are up.
Long term the market looks fantastic. Short term is less certain due to some weakness from the breadth indicators.
The 10-day of the AD line moved down during September (while maintaining a high level) and then fell hard recently while the S&P has pushed up.

The 10-day of the AD volume line not only formed a negative divergence, it has also dropped to 0.

The percentage of SPX stocks above their 20-day EMAs has been moving down for two weeks.

And the put/call has curled up.

Long term the market looks great, but short term, despite the constant grind to new highs, the market needs to let out some air.
Stock headlines from barchart.com…
Nike (NKE +0.58%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.
Grainger (GWW +1.65%) may open lower this morning after it was downgraded to ‘Sell’ from ‘Neutral’ at UBS with a price target of $195.
Jazz Pharmaceuticals Plc (JAZZ -0.03%) was initiated at a ‘Buy’ at FBR Capital Markets with a 12-month target price of $206.
Sprint (S -0.56%) was downgraded to ‘Neutral’ from ‘Outperform’ at Macquarie.
Adobe Systems (ADBE +1.74%) jumped 8% in after-hours trading after it said it sees fiscal 2018 adjusted EPS of $5.50, better than consensus of $5.20.
eBay (EBAY +1.28%) slid 5% in after-hours trading after it said it sees Q4 adjusted EPS from continuing operations of 57 cents-59 cents, weaker than consensus of 60 cents.
Pattern Energy (PEGI unch) slid 4% in after-hours trading after it said it expects its Q3 operating loss to be materially and substantially greater than a year ago due to hurricanes this fall.
Supernus Pharmaceuticals (SUPN +0.49%) was initiated at a ‘Buy’ at FBR Capital Markets with a 12-month target price of $53.
Ignyta (RXDX +13.24%) fell nearly 4% in after-hours trading after it announced that it had commenced an underwritten public offering of $125 million is shares of its common stock.
Limelight Networks (LLNW +2.75%) rallied 10% in after-hours trading after it raised its 2017 revenue estimate to $182 million-$185 million from a July 26 estimate of $180 million-$182 million.
Earthstone Energy (ESTE -1.40%) dropped over 7% in after-hours trading after it announced that it had commenced an underwritten public offering of 4.5 million shares of its Class A common stock.
Evoke Pharma (EVOK -3.68%) was initiated at a ‘Buy’ at FBR Capital Markets with a 12-month target price of $10.
Conatus Pharmaceuticals (CNAT +0.98%) jumped almost 7% in after-hours trading after it said the European Medicines Agency granted orphan designation to CNAT’s drug candidate IDN-7314 for the treatment of primary sclerosing cholangitis.
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VIDEO: There’s a Bull Market Somewhere
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Wednesday’s Key Earnings
Abbott (NYSE:ABT) +1.3% after beating estimates.
American Express (NYSE:AXP) -1.1% AH appointing a new CEO.
eBay (NASDAQ:EBAY) -5.3% AH dinged by light profit guidance.
U.S. Bancorp (NYSE:USB) -1.1% following in-line earnings.
United (NYSE:UAL) -1.8% AH hurt by hurricane disruptions.
Today’s Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings from Morningstar
this week’s Economic Numbers/Reports powered by ECONODAY