{"id":12687,"date":"2020-05-12T06:04:05","date_gmt":"2020-05-12T11:04:05","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/12\/morning-preview-may-12-2020\/"},"modified":"2020-05-12T06:04:05","modified_gmt":"2020-05-12T11:04:05","slug":"morning-preview-may-12-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-may-12-2020\/","title":{"rendered":"Morning Preview: May 12, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Tuesday, May 12, 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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53.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.22%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24,177<\/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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4.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.15%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,927<\/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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16.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.18%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,295<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures in the U.S. are pointing to a modestly higher open alongside a rebound in European markets amid data showing new coronavirus cases slowed and as many US<\/span> states and global economic slowly reopen following the forced shutdown to slow the coronavirus pandemic. Also helping stocks more help from the Fed which announced a new lending facility, as they will begin purchasing corporate bond exchange-traded funds on Tuesday, as most of the purchases would be in exchange-traded funds with exposure to U.S. investment-grade corporate bonds. In Asian markets, The Nikkei Index slipped -24points to 20,366, the Shanghai Index dipped 3-points to 2,891 and the Hang Seng Index dropped -356 points to 24,245. In Europe, the German DAX<\/span> is flat at the 10,820 level, while the FTSE 100 is up around 40 points to 5,975. Regrading trade, President Trump said he opposed renegotiating the U.S.-China phase one deal, while Beijing announced a new list of 79 American products eligible for waivers from retaliatory tariffs. A busy day ahead for economic data, while earnings begins to slow. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 0.52 points<\/span>, or 0.02%, to 2,930.32<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> fell -109.33 points<\/span>, or 0.45%, to 24.221.99<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>jumped 71.02 points<\/span>,<\/span> or 0.78%, to 9,192.34<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> declined -8.40 points<\/span>, or 0.63% to 1,321.24<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>6:00 AM EST      NFIB Small Business Optimism for April<\/o:p><\/p>\n

·     <\/span><\/span><\/span>7:45 AM EST      ICSC Weekly Retail Sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Consumer Price Index (CPI) MoM for April…est. (-0.8%)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      CPI Ex; Food & Energy MoM for April…est. (-0.2%)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Consumer Price Index (CPI) YoY for April…est. 0.4%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      CPI Ex; Food & Energy YoY for April…est. 1.7%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:55 AM EST      Johnson\/Redbook Weekly Sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>2:00 PM EST       Monthly Budget Statement for April…est. (-$737B)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>4:30 PM EST       API Weekly Inventory Data<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Earnings Before the Open: BTAI<\/span>, CVLT<\/span>, DT<\/span>, DUK<\/span>, FLOW<\/span>, IR<\/span>, MAC<\/span>, MBI<\/span>, NVST<\/span>, VSH<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: ADPT<\/span>, ALGT<\/span>, AVD<\/span>, EGHT<\/span>, GEVO<\/span>, INFN<\/span>, PBPB<\/span>, PLYA<\/span>, RLJ<\/span>, RXN<\/span>, VREX<\/span><\/o:p><\/p>\n

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Other Key Events: <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fed’s Bullard speaks on the economic outlook at 9:00 AM EST<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fed’s Harker discusses the impact of COVID-19 at 10:00 AM EST<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fed’s Mester takes part in moderated Q&A<\/o:p><\/p>\n

·     <\/span><\/span><\/span>JPMorgan Industrial Conference, 5\/11-5\/13, in New York<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The American Society of Gene & Cell Therapy (ASGCT) 2020 Annual Meeting will be taking place virtually next week 5\/12-5\/15<\/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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1.29<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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25.42<\/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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0.88<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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30.51<\/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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12.40<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,710.60<\/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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0.0019<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.0826<\/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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-0.21<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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107.45<\/span><\/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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+0.011<\/o:p><\/span><\/p>\n<\/td>\n

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0.72%<\/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 Federal Reserve’s new lending facility will begin purchasing corporate bond exchange-traded funds on Tuesday, the New York Fed announced. The Fed said most of the purchases would be in exchange-traded funds with exposure to U.S. investment-grade corporate bonds, but some of the purchases will be of ETFs whose primary exposure is to U.S. high-yield corporate bonds.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The NFIB Small Business Optimism Index (NFIB<\/span>)<\/b> for April was reported at 90.9, topping the 84.8 consensus and came in above last month 96.4 in March.<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>Caesars (CZR<\/span>)<\/b> Q1 EPS loss (36c)\/$1.83B vs. est. loss (18c)\/$2.04B; reports non-GAAP hold adjusted EBITDA decreased 50.0% to $279M; announce plans to resume operations at some properties<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ethan Allen (ETH<\/span>)<\/b> Q3 EPS 2c\/$149.8M vs. est. 6c\/$152.09M; noted Q3 results were negatively impacted as a result of the lower order backlog entering the quarter from our transition to a membership model combined with disruptions due to COVID-19; said for Q3 saw strong growth in orders for the first two months until the significant disruption in March; 3Q gross margin 56.1% vs. 55.3% YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Grocery Outlet (GO<\/span>)<\/b> Q1 adjusted EPS 36c\/$760.3M vs. est. 25c\/$755.59M; Q1 comparable store sales increased by 17.4% compared to a 4.2% increase in the same period last year; Q1 Ebitda $57M; does not provide year guidance<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Scientific Games (SGMS<\/span>)<\/b> Q1 EPS loss ($1.69)\/$725M vs. est. loss (11c)\/$792.58M; said took significant action to improve quarterly cash flows by over $150 million, preserve liquidity of nearly $1 billion and position the Company to take advantage of opportunities to strengthen the business as the industry begins to recover<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Toyota (TM<\/span>)<\/b> said it expects operating profit to drop 80% ¥500B ($4.66B) for the year through March 2021 as the coronavirus deals the automaker “a bigger shock than the 2008 global financial crisis.”<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Ameren (AEE<\/span>)<\/b> Q1 EPS 59c\/$1.44B vs. est. 71c\/$1.61B; affirms FY20 earnings guidance of $3.60-$3.60 vs. est. $3.44<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Energy Transfer (ET<\/span>)<\/b> Q1 EPS 32c\/$11.63B vs. est. 33c\/$13.43B; Q1 adjusted EBITDA for the three months ended March 31, 2020 was $2.64 billion, a decrease of $100 million compared to the three months ended March 31, 2019, primarily due to crude oil, NGL and refined products inventory valuation adjustments totaling $213 million in the first quarter of 2020; buts year cap-ex by $400M to $3.6B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Chevron (CVX<\/span>)<\/b> downgraded to Neutral from Buy at UBS<\/o:p><\/p>\n

·     <\/span><\/span><\/span>CenterPoint Energy (CNP<\/span>)<\/b> was downgraded to neutral from buy at Goldman Sachs<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Duke Energy (DUK<\/span>)<\/b> Q1 adjusted EPS $1.14\/$5.95B vs. est. $1.19\/$6.34B; affirms FY20 adjusted EPS view $5.05-$5.45 vs. est. $5.16<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>AllianceBernstein L.P. (AB<\/span>)<\/b> said preliminary assets under management increased to $576 billion during April 2020 from $542 billion at the end of March. The 6.3% increase was due to market appreciation, as well as firm wide net inflows<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Franklin Resources (BEN<\/span>)<\/b> preliminary month-end assets under management of $599.4 billion at April 30, 2020, compared to $580.3 billion at March 31, 2020. The increase in assets under management was due to strong market performance and significant improvement in net outflows. <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Equinix (EQIX<\/span>)<\/b> 2.25M share Secondary priced at $665.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Lexington Realty (LXP<\/span>)<\/b> 15M share Spot Secondary priced at $9.60<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Green Dot (GDOT<\/span>)<\/b> Q1 EPS $1.13\/$346.5M vs. est. 95c\/$323.83M; Q1 adjusted EBITDA was $92.1 million, or 26.6% of non-GAAP total operating revenues, down from $119.0 million, or 36.5% of non-GAAP total operating revenues last year; withdraws year outlook; reports gross dollar volume $14.3B vs. $13.0B last year<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Simon Property (SPG<\/span>)<\/b> 1Q FFO\/shr $2.78 vs est $2.90, says encouraged by consumer response to some re-openings, say 77 retail properties currently reopened and 12 designer, international premium outlets reopened; sales intends to maintain cash dividend, sees distributing at least 100% of REIT taxable income<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Genfit’s (GNFT<\/span>)<\/b> shares plunge after a Phase 3 clinical trial, RESOLVE-IT, evaluating its elafibranor in adults with nonalcoholic steatohepatitis (NASH) failed to achieve the primary endpoint; did not sufficiently separate from placebo as measured by the proportion of patients achieving NASH resolution<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Akebia (AKBA<\/span>)<\/b> 11M share Spot Secondary priced at $12.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AtriCure (ATRC<\/span>)<\/b> 3.98M share Secondary priced at $44.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Protagonist Therapeutics (PTGX<\/span>)<\/b> 7M share Secondary priced at $14.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Sutro Biopharma (STRO<\/span>)<\/b> 11M share Spot Secondary priced at $7.75<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Durect (DRRX<\/span>)<\/b> said it is working with the FDA on the design of a double-blind, placebo-controlled, multi-center, proof-of-concept Phase 2 study to evaluate the safety and efficacy of DUR-928 in approximately 80 COVID-19 patients with acute liver or kidney injury.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Endologix (ELGX<\/span>)<\/b> announced that it has completed enrollment in the EVAS2 Confirmatory Clinical Study to Evaluate the Nellix EndoVascular Aneurysm Sealing System<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ensign Group (ENSG<\/span>)<\/b> 1Q adj EPS $0.77 vs. est. $0.60 on revs $589.6Mm vs. est. $582.2Mm; still sees FY revs $2.42-2.45B vs. est. $2.43B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>GW Pharmaceuticals (GWPH<\/span>)<\/b> Q1 EPS loss (2c)\/$120.6M vs. est. loss (7c)\/$108.36M; Q1 cash equivalents $500.9M for quarter<\/o:p><\/p>\n

·     <\/span><\/span><\/span>MyoKardia (MYOK<\/span>)<\/b> files to sell $450M in common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Novavax (NVAX<\/span>)<\/b> 1Q loss\/share 58C vs. est. loss\/share 69C on revs $3.4Mm vs. est. $2.42Mm; said the Coalition for Epidemic Preparedness Innovations will invest up to $384 million in the development of NVX-CoV2373, its vaccine candidate for SARS-CoV-2, the coronavirus that causes COVID-19.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Sangamo (SGMO<\/span>)<\/b> Q1 EPS loss (37c)\/$13.1M vs. est. loss (29c)\/$22.74M; said Q1 cash, cash equivalents and marketable securities were $363.1 million as of March 31, 2020, compared to $384.3 million as of December 31, 2019.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tilray (TLRY<\/span>)<\/b> Q1 EPS loss ($1.73)\/$52.1M vs. est. $50.62M; said for Q1 took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Amcor (AMCR<\/span>)<\/b> Q3 EPS 44c on revs $1.06B; said it now sees FY 2020 adj EPS growth in constant FX of 11-12% vs prior view 7%-10% (implies a constant currency EPS range of 64.6c-65.2c)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Livent (LTHM<\/span>)<\/b> Q1 EPS 2c on revs $68.5M, down -30% YoY vs. est. 4c\/$89.2M; 1Q adjusted Ebitda $9.4 million, -66% YoY; expects near-term demand to be negatively impacted by the production stoppages we have seen at OEM facilities globally<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ArcelorMittal (MT<\/span>)<\/b> 80.9M share Secondary priced at $9.27<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ingersoll-Rand (IR<\/span>)<\/b> Q1 adjusted EPS 25c\/$1.3B vs. est. 27c\/$1.24B; said it expects to deliver approximately 35% of the $250 million synergy target in 2020<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Thyssenkrupp<\/b> shares fell 11% after it reported a widening and worse-than-forecast loss for its fiscal second quarter as sales from continuing operations fell 6% and orders dropped 10%. It said a fiscal third-quarter operating loss of “€1 billion cannot be ruled out.”<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Rexford Industrial (REXR<\/span>)<\/b> 6.25M share Spot Secondary priced at $39.85<\/o:p><\/p>\n

·     <\/span><\/span><\/span>YRC Worldwide (YRCW<\/span>)<\/b> Q1 EPS 13c\/$1.15B vs. est. loss (57c)\/$1.14B; on a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $34.1 million in 1Q20, compared to $30.1 million in the prior year comparable quarter (up 13% YoY)<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Cornerstone OnDemand (CSOD<\/span>)<\/b> Q1 adjusted EPS 23c\/$150.1M vs. est. 24c\/$147.66M; now expect to realize $50 million in run-rate synergies as we exit 2020, as compared to our prior guidance of $35 million over twenty-four months<\/o:p><\/p>\n

·     <\/span><\/span><\/span>DataDog (DDOG<\/span>)<\/b> 1Q adj EPS $0.06 vs. est. ($0.02) on revs $131.2Mm vs. est. $117.6Mm; sees 2Q EPS $0.00-0.01 vs. est. ($0.02), sees 2Q revs $134-136Mm vs. est. $125.5Mm; guides FY adj EPS $0.02-0.06 vs. est. ($0.06), sees FY revs $555-565Mm<\/o:p><\/p>\n

·     <\/span><\/span><\/span>II-VI (IIVI<\/span>)<\/b> shares rise 20%; 3Q adj EPS $0.47 vs. est. $0.13 on revs $627Mm vs. est. $571Mm; guides 4Q EPS $0.50-0.70 vs. est. $0.38, sees 4Q revs $650-700Mm vs. est. $627Mm<\/o:p><\/p>\n

·     <\/span><\/span><\/span>j2 Global (JCOM<\/span>)<\/b> Q1 adjusted EPS $1.40\/$332.4M vs. est. $1.39\/$331.98M; is withdrawing its previously issued financial guidance for fiscal 2020; anticipate Q2 2020 revenues to be slightly down versus Q2 2019 and Adjusted EBITDA and Adjusted non-GAAP EPS to be down single digit percentages versus Q2 2019<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Mimecast (MIME<\/span>)<\/b> 4Q adj EPS $0.15 vs. est. $0.12 on revs $114.2Mm vs. est. $112.4Mm; sees 1Q revs $112.8-113.8Mm vs. est. $115.5Mm, sees 1Q adj EBITDA $23.5-24.5Mm; guides 2021 adj EBITDA $94-96Mm<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Q2 Holdings (QTWO<\/span>)<\/b> files to sell $275M in common stock<\/p>\n<\/div>\n

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