Before the Open (Oct 16)

Posted on by Jason Leavitt

Good morning. Happy Tuesday.
The Asian/Pacific markets closed mostly up. Japan, India, Taiwan, Indonesia and the Philippines led the way; China was weak. Europe, Africa and the Middle East are currently posting solid gains. Denmark, Poland, France, Germany, Greece, Finland, Switzerland, Hungary, Spain, Italy, Israel, Austria, Sweden and Saudi Arabia are up 1% or more. Futures in the States point towards a relatively big gap up open for the cash market.
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VIDEO: Signs of a Local Bottom
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The dollar is down. Oil and copper are down. Gold and silver are up. Bonds are up.
Overnight Stock Movers from barchart.com…
Morgan Stanley (MS +0.09%) is up more than 2% in pre-market trading after it reported Q3 adjusted EPS of $1.17, higher than consensus of $1.01.
Johnson & Johnson (JNJ +0.06%) rose +0.5% in pre-market trading after it reported Q3 adjusted EPS of $2.95, better than consensus of $$2.03
Cracker Barrel (CBRL +1.80%) was upgraded to ‘Outperform’ from ‘Market Perform’ at Telsey Advisory Group with a price target of $175.
Adobe (ADBE -4.36%) climbed more than 5% in after-hours trading after it said it sees about 20% total revenue growth for fiscal 2019.
Facebook (FB -0.14%) was rated a new ‘Buy’ at Loop Capital Markets with a price target of $210.
Expedia Group (EXPE -0.01%) was rated a new ‘Outperform’ at Evercore ISI with a price target of $140.
JB Hunt Transport Services (JBHT +2.05%) reported Q3 operating revenue of $2.21 billion, below consensus of $2.22 billion
Philip Morris International (PM +1.43%) was rated ‘Outperform’ at Bernstein with a price target of $97.
Perspecta (PRSP -0.20%) was rated a new ‘Buy’ at Stifel with a price target of $35.
SendGrid (SEND -0.23%) surged 17% in after-hours trading after it was acquired by Twilio for $2 billion, or about $36.92 a share. Twilio TWLO fell 4% on the news.
JELD-WEN Holding (JELD -0.19%) tumbled nearly 11% in after-hours trading after it lowered guidance on 2018 adjusted Ebitda to $455 million to $470 million from a prior estimate of $500 million to $520 million.
Ultralife (ULBI +5.64%) rose 4% in after-hours trading after it reported it won a $8.3 million contract.
T2 Biosystems (TTOO +2.72%) may initially open lower this morning after it filed a $100 million mixed securities shelf after the close of trading Monday.
Monday’s Key Earnings
Bank of America (NYSE:BAC) -1.9% despite earnings beat, better margins.
Today’s Economic Calendar
8:55 Redbook Chain Store Sales
9:15 Industrial Production
10:00 NAHB Housing Market Index
10:00 Job Openings and Labor Turnover Survey
4:00 PM Treasury International Capital
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings from Morningstar
this week’s Economic Numbers/Reports powered by ECONODAY

4 thoughts on “Before the Open (Oct 16)”

  1. so far i think it unwise not to assume that the bull is not DEAD and finished at the recent new highs
    since then we have had a impulsive [no overlap ] wave one move down which may not have finished yet
    if it has then the last 5 days corrective [ MUCH OVERLAP ] is part of corrective wave 2
    and so far it has been very weak
    once wave 2 finishes and providing no new highs then the real CRASH comes in wave 3 as it did in 2008
    with leehman bros
    all world markets are in or stating bear markets and contagion is hard to escape
    Jasons video is good and he is to be congratulated on pin pointing the last 5 days low
    but it is very ” if e ” and as he says has a lot of proving to do before the bulls can take control

    1. does your first sentence contain a triple negation? in english classes in america they teach that double negation is a no-no. i do not know the profession’s position on a triple negation 🙂

    2. A massive correction will come. I don’t know when but I suspect we will see a flat yield curve and a series of total PC ratios less than 0.5 before the fall. That has not happened since the 2000 market.
      I do not expect a post card from a broker telling me when the market will dive. I did hear a guy say that the market would crash on September 11, 2001 on Saturday afternoon May 8 2001. I did not believe the guy. Nobody would. I thought he was nuts. He probably was!!! He was right about one thing. The market crashed.
      I do enjoy Jason’s videos. My calculations come from a much different perspective but we almost always get the same answer.

  2. Seasonal cycle is likely in place for the next two months,ending Dec 2018. Then it seems that problems commence and care calls for the Fed to raise rates.BUT!! Watch out for the by-year election in 21 days which could result in a major change quickly. I am being very flexible.

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