{"id":12668,"date":"2020-05-11T05:57:25","date_gmt":"2020-05-11T10:57:25","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/11\/morning-preview-may-11-2020\/"},"modified":"2020-05-11T05:57:25","modified_gmt":"2020-05-11T10:57:25","slug":"morning-preview-may-11-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-may-11-2020\/","title":{"rendered":"Morning Preview: May 11, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Monday, May 11, 2020<\/span><\/b><\/o:p><\/span><\/b><\/p>\n\n\n\n\n\n\n
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Futures<\/o:p><\/span><\/p>\n<\/td>\n

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Up\/Down<\/o:p><\/span><\/p>\n<\/td>\n

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%<\/o:p><\/span><\/p>\n<\/td>\n

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Last<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-143.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.59%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24,143<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-17.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.60%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,911<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-29.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.32%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,189<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stock futures are pointing to a lower open, tracking European markets lower as well heading into a fresh week as many states in the U.S. have begun to reopen and look to rebuild from the damage the coronavirus global economic shut down has caused. Stocks rose Friday, and for the week the Dow advanced 2.6%, the S&P 500 ended 3.5% higher while the Nasdaq Comp advanced 6%, as expectations for an economic bounce-back as businesses gradually reopen outweighed new data showing more than 20 million Americans lost their jobs in April amid coronavirus-related shutdowns. In Asian markets, The Nikkei Index gained 211 points to 20,390, the Shanghai Index was little changed around the 2,894 level and the Hang Seng Index rose 371 points to 24,602. In Europe, the German DAX<\/span> is lower by about -70 points to 10,830, while the FTSE 100is down about -25 points to hold just above the 5,900 level. Worldwide there has been a pickup in new virus cases, notably in Africa, Brazil and Russia which potentially damages the positive sentiment that has taken place over the last few weeks. There are a handful of earnings results today, but the bulk of quarterly results are behind us expect for the retail sector in the next few weeks.<\/o:p><\/p>\n

Market Closing Prices Yesterday<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> jumped 48.61 points<\/span>, or 1.69%, to 2,929.80<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 455.42 points<\/span>, or 1.91%, to 24,331.32<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>surged 141.66 points<\/span>,<\/span> or 1.58%, to 9,121.32<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 46.71 points<\/span>, or 3.64% to 1,329.64<\/o:p><\/p>\n

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<\/a><\/a><\/a>Economic Calendar for Today<\/o:p><\/a><\/p>\n

·     <\/span><\/span><\/span>No Major Economic Data<\/o:p><\/p>\n

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Earnings Calendar: <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings Before the Open: AMAG<\/span>, AVYA<\/span>, BLUE<\/span>, CAH<\/span>, CEVA<\/span>, CLF<\/span>, CLR<\/span>, COTY<\/span>, CPE<\/span>, ETR<\/span>, FATE<\/span>, GBDC<\/span>, GOGO<\/span>, HALO<\/span>, ICPT<\/span>, MAR<\/span>, MYL<\/span>, OAS<\/span>, ON<\/span>, SALT<\/span>, SPG<\/span>, UAA<\/span>, VUZI<\/span>, XENT<\/span>, XHR<\/span>, ZBH<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: AEE<\/span>, AIMT<\/span>, AMBC<\/span>, BE<\/span>, CZR<\/span>, DDOG<\/span>, EB<\/span>, ERI<\/span>, ET<\/span>, ETH<\/span>, G<\/span>, GDOT<\/span>, GO<\/span>, GSKY<\/span>, HHC<\/span>, IFF<\/span>, INO<\/span>, LTHM<\/span>, MAXR<\/span>, MIME<\/span>, OMER<\/span>, RPT<\/span>, SKT<\/span>, SUN<\/span>, XOG<\/span>, YRCW<\/span><\/o:p><\/p>\n

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Macro<\/o:p><\/span><\/p>\n<\/td>\n

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Up\/Down<\/o:p><\/span><\/p>\n<\/td>\n

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Last<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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WTI Crude<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-0.48<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24.26<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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Brent<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-0.74<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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30.23<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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Gold<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-17.40<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,696.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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EUR\/USD<\/o:p><\/span><\/b><\/p>\n<\/td>\n

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-0.0016<\/o:p><\/span><\/p>\n<\/td>\n

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1.0823<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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JPY\/USD<\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.63<\/o:p><\/span><\/p>\n<\/td>\n

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107.28<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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10-Year Note<\/o:p><\/span><\/b><\/p>\n<\/td>\n

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+0.003<\/o:p><\/span><\/p>\n<\/td>\n

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0.686%<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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World News<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The global case tally for the coronavirus<\/b> that causes COVID-19 climbed to 4.1 million on Monday, according to data by Johns Hopkins University. The death toll rose to 282,947. More than 1.4 million people have recovered. The U.S. has the highest case toll at 1.33 million and the highest death toll at 79,528. Spain has the highest number of cases in Europe at 224,350 and 26,621 deaths.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Vice President Mike Pence<\/b> was self-isolating Sunday after an aide tested positive for the coronavirus last week, joining three of the nation’s top scientists in taking protective steps after possible exposure<\/o:p><\/p>\n

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Sector News Breakdown<\/o:p><\/span><\/p>\n

Consumer<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Coty Inc. (COTY<\/span>)<\/b> announced a strategic partnership with global investment firm KKR which will provide the Company with an initial investment of $750M through the sale of convertible preferred shares to KKR. Additionally, Coty and KKR signed a Memorandum of Understanding for the sale of a majority in Coty’s Professional Beauty and Retail Hair Businesses including the Wella, Clairol, OPI and ghd brands at a contemplated enterprise value of $4.3B, or 12.3x 2019 EBITDA.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Choice Hotels (CHH<\/span>)<\/b> Q1 adj. EPS 76c\/$218.2M vs. est. 72c\/$222.27M; announced that it withdrew its previously issued outlook for 2020 and will not be providing formal guidance at this time<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Elon Musk said Tesla (TSLA<\/span>)<\/b> is filing a lawsuit against Alameda County immediately. “Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas\/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in CA.”<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Juul Labs<\/b> slashed its internal valuation by 35% to roughly $13B, according to Bloomberg<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Boyd Gaming (BYD<\/span>)<\/b> mentioned positively in Barron’s noting the Las Vegas Strip has essentially been shut down since mid-march but casino operators are not all created equal, and investors looking to bet on a recovery in gambling in the age of COVID-19 should look at regional casinos<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tilly’s (TLYS<\/span>)<\/b> guided Q1 net sales $77.3M,down 40% YoY and below consensus of $99M; said it expects to reopen 26 of its stores on or about May 15, 2020, including certain stores in Arizona, Florida, Texas and Utah; the combination of furloughs and management pay cuts has reduced the Company’s cash payroll costs by approximately $1.4M per week since the beginning of April<\/o:p><\/p>\n

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Energy<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Northern Oil and Gas (NOG<\/span>)<\/b> Q1 adj EPS 4c vs. 7c YoY with 1Q avg production 43,735 boe\/d, +26% YoY and 1Q avg oil production 34,488 b\/d, +22% YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Callon Petroleum (CPE<\/span>)<\/b> Q1 adj. EPS 12c\/$289.92M vs. est. 13c\/$337.74M; announced material reductions in general and administrative costs including: 35% compensation reduction for board members, 35% reduction in CEO target cash compensation, and at least 25% reduction in target cash compensation by all other officers.<\/o:p><\/p>\n

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Financials<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Carlyle Group Inc. (CG<\/span>)<\/b> and Singapore sovereign-wealth fund GIC Pte. are backing away from a deal to take a stake in American Express Global Business Travel, Dow Jones reported. The investors were planning to buy a 20% stake in the American Express Co. (AXP<\/span>)<\/b> unit in a deal valuing the business at $5 billion, including debt, the report said https:\/\/bit.ly\/35KZWLY<\/a> <\/o:p><\/p>\n

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Healthcare<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AstraZeneca (AZN<\/span>)<\/b> and collaboration partner Merck (MRK<\/span>)<\/b> announce the FDA nod for the use of Lynparza (olaparib), combined with bevacizumab (Roche’s Avastin), as first-line maintenance treatment of adult patients with advanced epithelial ovarian, fallopian tube or primary peritoneal cancer<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Eli Lilly’s (LLY<\/span>)<\/b> Retevmo treatment is approved by the FDA for three types of tumors: non-small cell lung cancer, medullary thyroid cancer and other types of thyroid cancers<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Quidel (QDEL<\/span>)<\/b> announced that it has received Emergency Use Authorization from the U.S. FDA to market its Sofia 2 SARS Antigen FIA, a rapid point-of-care test to be used with the Sofia 2 Fluorescent Immunoassay Analyzer for the rapid detection of SARS-CoV-2<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Zimmer Biomet (ZBH<\/span>)<\/b> Q1 adj. EPS $1.70\/$1.78B vs. est. $1.35\/$1.79B; said while Q1 results have been impacted by the global spread of COVID-19 and the deferral of elective procedures, our operational performance prior to the COVID-19 disruption was trending ahead of our expectations<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Arbutus Biopharma (ABUS<\/span>)<\/b> Q1 EPS loss (25c)\/$1.49M vs. est. loss (39c); saying despite the challenges of COVID-19, they have not had to alter our objectives for 2020<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ormat Technologies (ORA<\/span>)<\/b> widens FY20 revenue guidance to $710M-$740M from $720M-$740M; expect total revenues of between $710 million and $740 million with electricity segment revenues between $550 million and $570 million<\/o:p><\/p>\n

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Industrials & Materials<\/o:p><\/p>\n

·     <\/span><\/span><\/span>President Donald Trump on Saturday said the United States will next week begin purchasing $3 billion worth of dairy, meat and produce from farmers as unemployment soars and people are forced to food lines. It was unclear whether his statement referred to a $19 billion relief plan announced by the U.S. Department of Agriculture in April – Reuters<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AngloGold Ashanti (AU<\/span>)<\/b> reports improved Q1 cash flow, though coronavirus-related shutdowns led to a fall of 11,000 ounces of gold production during the quarter; said it had bolstered liquidity to $1.1B after redeeming a 10-year $700M bond and securing additional credit facilities of $1B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Corteva (CTVA<\/span>), Nutrien (NTR<\/span>), Mosaic (MOS<\/span>),<\/b> and CF Industries (CF<\/span>)<\/b> all downgraded to underperform at Bank America stating that while 2020 had an optimistic start for agricultural chemicals, the trend has reversed significantly and notes that record corn acres, lower fuel ethanol consumption, and record soybean production in Brazil could lead to the lowest cash prices for corn and soybeans in 14 years<\/o:p><\/p>\n

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Technology, Media & Telecom<\/o:p><\/p>\n

·     <\/span><\/span><\/span>On Semiconductor (ON<\/span>)<\/b> Q1 non-GAAP EPS 10c\/$1.28B vs. est. 15c\/$1.29B; sees Q2 revenue $1.10B-$1.26B vs. est. $1.28B; Q1 GAAP and non-GAAP gross margin is expected to be 29%-31%.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>U.S. President Donald Trump’s administration is in talks with semiconductor companies about building chip factories in the United States, the Wall Street Journal reported on Sunday. The Trump administration has held talks with Intel Corp (INTC<\/span>)<\/b> and Taiwan Semiconductor (TSM<\/span>)<\/b><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Shanghai Disneyland (DIS<\/span>)<\/b> reopened Monday in a new step toward rolling back anti-coronavirus controls that shut down its economy. The park, which closed Jan. 25, will limit visitor numbers and is keeping some attractions closed in line with social distancing guidelines<\/p>\n<\/div>\n

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