{"id":12692,"date":"2020-05-13T05:57:40","date_gmt":"2020-05-13T10:57:40","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/13\/morning-preview-may-13-2020\/"},"modified":"2020-05-13T05:57:40","modified_gmt":"2020-05-13T10:57:40","slug":"morning-preview-may-13-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-may-13-2020\/","title":{"rendered":"Morning Preview: May 13, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Wednesday, May 13, 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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135.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.57%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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23,709<\/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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14.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.51%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,867<\/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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59.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.66%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,137<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stocks futures are edging higher in the U.S., looking to recover following the late day swoon that saw major averages fall as much as 2% late Tuesday, as investors review corporate earnings and weigh the prospects of the country easing the lockdown. Stocks took a nose dive midday yesterday and never recovered after Dr. Anthony Fauci warned lawmakers that a premature lifting of lockdowns could lead to additional outbreaks of COVID<\/span>-19, which has so far killed 80,000 Americans and devastated the U.S. economy. In Asian markets, The Nikkei Index fell -99 points to 20,267, the Shanghai Index gained 6 points to 2,898 and the Hang Seng Index dropped -65 points to 24,180. In Europe, the German DAX<\/span> is down 140 points to 10,680, while the FTSE 100 is down roughly 1% to 5,940. Economic data today expected to show a sharp decline in producer prices, with limited earnings results on the calendar. Markets will closely watch Fed Chairman Powell who is speaking at 9:00 AM<\/span> this morning. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> plunged -60.20 points<\/span>, or 2.05%, to 2,870.12<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> fell -457.21 points<\/span>, or 1.89%, to 23,764.78<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>dropped -189.79 points<\/span>,<\/span> or 2.06%, to 9,002.55<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> declined -45.70 points<\/span>, or 3.46% to 1,275.54<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>7:00 AM EST      MBA Mortgage Applications Data<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Producer Price Index (PPI) MoM for April…est. (-0.5%)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      PPI Ex; Food & Energy MoM for April…est. (-0.1%)<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>8:30 AM EST      PPI Ex; Food & Energy YoY for April…est. 0.8%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>10:30 AM EST    Weekly DOE Inventory Data<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Earnings Before the Open: AGTC<\/span>, EFOI<\/span>, NEON<\/span>, PGTI<\/span>, SDGR<\/span>, VERU<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: BIOC<\/span>, CSCO<\/span>, FLO<\/span>, JACK<\/span>, OII<\/span>, ONEM<\/span>, SDC<\/span>, STE<\/span>, VRTU<\/span><\/o:p><\/p>\n

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Other Key Events: <\/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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-0.22<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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25.56<\/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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-0.30<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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29.68<\/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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1.20<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,708.00<\/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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0.0005<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.0853<\/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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-0.11<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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107.03<\/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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-0.002<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.662%<\/span><\/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 British economy shrank 2% in Q1<\/b> from the previous three-month; the decline is the biggest since the global financial crisis in 2008; in March alone, the British economy shrank by 5.8%.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The global case tally for the coronavirus<\/b> that causes COVID-19 climbed to 4.26 million on Wednesday, according to data by Johns Hopkins University. The death toll rose to 291,981. More than 1.49 million people have recovered. The U.S. has the highest case toll at 1.37 million and the highest death toll at 82,387<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>Allegiant Travel (ALGT<\/span>)<\/b> Q1 EPS $2.05\/$409.2M vs. est. 90c\/$429.4M; airline only fully diluted earnings per share, adjusted for tax, of $1.89 vs. $3.98 a year ago; sees Q3 daily cash burn of about $1.5M; said more than 25% of workers take leaves or pay cuts<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Container Store (TCS<\/span>)<\/b> preliminary Q4 revenue $241.3M vs. est. $249.95M; comparable store sales are estimated to decrease 3.6% with Custom Closets sales expected to increase 1.5%, positively contributing approximately 80 basis points to comparable store sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Potbelly (PBPB<\/span>)<\/b> Q1 EPS loss (32c)\/$87.6M vs. est. loss (23c)\/$89.64M; said Q1 company-operated comparable store sales decreased 10.1% but were up 2.5% during the first 10 weeks of the quarter<\/o:p><\/p>\n

·     <\/span><\/span><\/span>United Natural Foods (UNFI<\/span>)<\/b> sees Q3 adjusted EPS $1.40 well above consensus 58c and sees Q3 revenue $6.67B vs. est. $6.35B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Wyndham Hotels & Resorts Inc. (WH<\/span>)<\/b> cuts its regular quarterly cash dividend to 8c from 32c<\/o:p><\/p>\n

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Energy, Industrials and Materials<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The American Petroleum Institute (API<\/span>)<\/b> reported that U.S. crude supplies rose by 7.6M barrels for the week ended May 8, showed gasoline stockpiles edged down by 1.9M barrels, while distillate inventories climbed by 4.7M barrels.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Evergy (EVRG<\/span>)<\/b> is anticipated to begin a formal sale process next month following pressure from Elliott Management to bolster its operations or sell itself, Bloomberg reported late yesterday https:\/\/bloom.bg\/3cueBhb<\/a> <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ingersoll Rand (IR<\/span>)<\/b> downgraded to hold from buy at Deutsche Bank<\/o:p><\/p>\n

·     <\/span><\/span><\/span>A.P. Moeller-Maersk A\/S<\/b> posted better-than-expected Q1 earnings as cost cuts and higher freight rates helped offset a slump in demand from the Covid-19 pandemic, but warned that second-quarter volumes could fall 20%-25%; Q1 revenue rose 0.3% to $9.57 billion, against $9.4 billion expected, while Ebitda of $1.52 billion beat Maersk’s own guidance of $1.4 billion.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Rexnord (RXN<\/span>)<\/b> Q4 adjusted EPS 55c\/$547M vs. est. 50c\/$538.13M; sees Q1 revenue declining 18%-23% vs. est. $420.86M; and total segment Adjusted EBITDA margin to range between 21% and 23%, and our corporate expenses to approximate $7 million<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>BlackRock (BLK<\/span>)<\/b> 28.753M share Secondary priced at $420<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The U.S. Small Business Administration<\/b> says it has approved $191.4 billion in loans out of the $320 billion that Congress authorized in the second round of the Paycheck Protection Program.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Commonwealth Bank of Australia (CMWAY) announced it has entered into an agreement to sell a 55% interest in Colonial First State to KKR (KKR<\/span>)<\/b> for A$1.7B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Houlihan Lokey (HLI<\/span>)<\/b> Q4 adjusted EPS 96c\/$303M vs. est. 77c\/$289.09M; is withdrawing its prior fiscal FY20 guidance based on the strength of its FY20 year-to-date financial performance<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Becton Dickinson & Co. (BDX<\/span>)<\/b> said it was offering the sale of $1.5 billion in 10-year and 30-year notes, as the medical technology company looks to repay $1 billion in debt due this year<\/o:p><\/p>\n

·     <\/span><\/span><\/span>MyoKardia (MYOK<\/span>)<\/b> priced 5.25M shares at $105 per share<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ShockWave Medical (SWAV<\/span>)<\/b> Q1 EPS loss (59c)\/$15.2M vs. est. loss (49c)\/$14.17M; withdraws its previously announced guidance due to COVID<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Thermo Fisher (TMO<\/span>)<\/b> announced that the U.S. FDA has further expanded emergency use authorization for its multiplex real-time PCR test intended for the qualitative detection of nucleic acid from SARS-CoV-2<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Insulet (PODD<\/span>)<\/b> 2.37M share Spot Secondary priced at $211<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The WSJ reports advertisers like GM<\/span>, PEP<\/span><\/b> and GIS <\/b>are seeking to take advantage of options that became available May 1 to cancel up to 50% of third-quarter TV spending, negative news for owners of cable networks such as CMCSA<\/span>, VIAC<\/span>, DIS<\/span><\/b><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cambium Networks (CMBM<\/span>)<\/b> Q1 EPS 5c\/$60.43M vs. est. loss (2c)\/$55.97M; sees Q2 EPS 0c-5c on revs $51M-$56M vs. est. 5c\/$58.03M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8×8, Inc. (EGHT<\/span>)<\/b> Q4 EPS loss (12c)\/$121.5M vs. est. loss (14c)\/$119.33M; said they closed a record 42 new customer deals in Q4 with ARR greater than $100,000; deals represented 34% of new bookings for the quarter<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Infinera (INFN<\/span>)<\/b> Q1 EPS loss (27c)\/$331.4M vs. est. loss (18c)\/$318.31M; sees Q2 revenue $320M, plus\/minus $10M vs. est. $326.31M; Q2 non-GAAP gross margin is expected to be 33% +\/- 200 bps<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SYNNEX (SNX<\/span>)<\/b> CFO says increased liquidity without raising additional capital; said believe that our strong balance sheet will enhance our ability to successfully navigate through this challenging market backdrop; guides Q2 EPS $0-$1.00 vs. est. ($3.94)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ViacomCBS (VIAC<\/span>)<\/b> has agreed to sell $2B in debt, a move alongside an upsized $2B cash tender for existing debt.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Roku (ROKU<\/span>)<\/b> files to sell up to 4M shares of stock<\/p>\n<\/div>\n

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