{"id":12716,"date":"2020-05-19T06:01:32","date_gmt":"2020-05-19T11:01:32","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/19\/morning-preview-may-19-2020\/"},"modified":"2020-05-19T06:01:32","modified_gmt":"2020-05-19T11:01:32","slug":"morning-preview-may-19-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-may-19-2020\/","title":{"rendered":"Morning Preview: May 19, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Tuesday, May 19, 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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-81.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.33%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24,426<\/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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-9.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.31%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,939<\/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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-3.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.03%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,322<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stocks futures are down slightly, pulling back after massive gains on Monday where the S&P 500 closed at a 10-week high following encouraging early-stage data for a potential coronavirus vaccine and on the promise of more stimulus to lift an economy beaten down by the pandemic. Biotech Moderna Inc (MRNA<\/span>) gained after the company said its experimental COVID<\/span>-19 vaccine showed promising results in a small early-stage trial. After yesterday’s gains the S&P 500 has rallied more than 30% from its March lows while the Nasdaq-100 index is less than 5% from its all-time highs. Attention this morning will turn to testimony from Federal Reserve Board Chairman Jerome Powell and Treasury Secretary Steven Mnuchin, who will testify before the Senate Banking Committee regarding the Cares Act (Coronavirus Aid, Relief, and Economic Security Act). Fed Chair Jerome Powell will testify today at 10:00 AM EST before the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate. In Asian markets, The Nikkei Index gained 299 pointsto20,433, the Shanghai Index rose 23 points to 2,898 and the Hang Seng Index rose 453 points to 24,388. In Europe, the German DAX<\/span> is lower by over -80 points to 10,970, while the FTSE 100 is down about -40 points to hold just above the 6,000 level. Monday brought strong gains following a France\/German proposal for a EU500 billion recovery fund, as well as a promising trial of a COVID<\/span>-19 vaccine. Earnings results in retail this morning with HD<\/span>, WMT<\/span>, AAP<\/span> and KSS<\/span> among them.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 90.21 points<\/span>, or 3.15%, to 2,953.91<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 911.95 points<\/span>, or 3.85%, to 24,597.37<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>surged 220.27 points<\/span>,<\/span> or 2.44%, to 9.234.83<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 76.70 points<\/span>, or 6.10% to 1,333.69<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>8:30 AM EST      Housing Starts MoM for April…est. down (26%) to 900K<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Building Permits MoM for April…est. down (26%) to 1.0M<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>10:00 AM EST    Fed Chairman Powell testifies before Senate Banking Committee<\/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: AAP<\/span>, DY<\/span>, EXP<\/span>, HD<\/span>, KSS<\/span>, WMT<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: NTN<\/span>, RRR<\/span>, TRNS<\/span>, URBN<\/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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0.55<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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32.37<\/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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-0.05<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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34.76<\/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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2.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,736.90<\/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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0.0043<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.0956<\/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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0.26<\/o:p><\/span><\/p>\n<\/td>\n

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107.60<\/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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-0.016<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.709%<\/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 global case tally for the coronavirus<\/b> that causes COVID-19 climbed to 4.82 million on Tuesday, according to data by Johns Hopkins University. The death toll rose to 318,833. More than 1.8 million people have recovered. The U.S. has the highest case toll at 1.51 million and the highest death toll at 90,369. Russia has 299,941 cases and 2,837 deaths<\/o:p><\/p>\n

·     <\/span><\/span><\/span>German economic expectations rose<\/b> sharply in May, increasing for the second month in a row, the ZEW economic research institute said as the measure of economic expectations rose to 51.0 in May from 28.2 in April,<\/o:p><\/p>\n

·     <\/span><\/span><\/span>California Governor Gavin Newsom<\/b> announced a dramatic relaxation of health standards to reopen the state, a move that could allow nearly every county to proceed more quickly, and he offered the possibility of pro sports returning, without fans, by early June.<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>Home Depot (HD<\/span>)<\/b> Q1 EPS $2.08 on sales $28.26B vs. est. $2.27\/$27.63B; Q1 U.S. comp sales rose 7.5% vs. est. 5.8% and vs. 3.3% YoY; and overall Q1 comp sales rose 6.4% vs. est. 4.5%; 1Q average ticket sales $74.70, +11% YoY and 1Q customer transactions -3.9% vs. +3.80% YoY; company incurred a total of approximately $850 million of pre-tax expense as a result of actions to support associates<\/o:p><\/a><\/p>\n

·     <\/span><\/span><\/span>Advance Auto Parts (AAP<\/span>)<\/b> Q1 adjusted EPS 91c\/$2.7B vs. est. $1.73\/$2.74B; Q1 comp store sales fell (9.3%) vs. est. (-8.8%); not providing guidance at this time; through first four weeks of q2, comparable store sales improved significantly each week<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Beazer Homes (BZH<\/span>)<\/b> files up to $500M mixed securities shelf<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Eagle Materials (EXP<\/span>)<\/b> Q4 adjusted EPS $1.28\/$315.44M vs. est. 88c\/$285.44M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Allegiant (ALGT<\/span>)<\/b> reported Fuel Costs per gallon for Apr. of 98c, -56% YoY; April capacity -86.8% vs. +16.1% YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Boyd Gaming (BYD<\/span>)<\/b> announced plans to resume operations at seven properties in Louisiana and Mississippi, pending receipt of final regulatory approvals<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fastly (FSLY<\/span>)<\/b> announces offering of 6M shares of Class A common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>GameStop Corp. (GME<\/span>)<\/b> released a letter to shareholders, offering an update on its Reboot Plan to reduce costs and debt amid criticism from shareholder activists; said it exited FY2019 with approximately $500M in cash after generating $62.3M in adjusted operating income, despite a challenging sales environment<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Kirkland’s (KIRK<\/span>)<\/b> said if the company’s 405 stores, 301 are now open to customer traffic and another 95 stores offer contactless curbside pickup. The company is unable to predict when all of its stores can reopen to customer traffic, but it will continue to follow the guidance of the CDC, as well as local and state government officials.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Registrations of new passenger cars<\/b> in the European Union posted a year-on-year decline of 76.3% in April<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Trivago (TRVG<\/span>)<\/b> Q1 revs EU139.8M vs. est. EU147Ml Q1 adj Ebitda loss (EU0.6M) vs. est. loss (EU0.44M); expect our full year revenue to be less than half of our full year 2019 revenue and to experience a significant adjusted Ebitda loss<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Dycom Industries (DY<\/span>)<\/b> Q1 adj EPS 36c\/$814.3M vs. est. 6c\/$753.2M; had cash and equivalents of $643.9m at April 25; is not providing guidance at this time<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Southwest Air (LUV<\/span>)<\/b> reported load factor for April of 8% with prelim April capacity -58%; said they experienced modest improvement in Bookings in June; has Cash & Short-Term Investments of About $13.0B; said April prelim operating revs fell 90% to 95% and sees May operating revs down 85% to 90%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Helmerich & Payne (HP<\/span>)<\/b> will replace J.C. Penney Company (JCP<\/span>) <\/b>in the S&P SmallCap 600<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Physicians Realty Trust (DOC<\/span>)<\/b> will replace West Pharmaceutical Services (WST<\/span>)<\/b> in the S&P MidCap 400<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>LPL Financial (LPLA<\/span>)<\/b> reported total brokerage and advisory assets for April of +7.2% vs. +7.20% YoY while April brokerage, advisory assets $718.0 billion, +2.7% YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Nasdaq Inc. (NDAQ<\/span>)<\/b> plans to impose stricter regulation that may make it harder for some Chinese companies to list on its platform, Reuters reported. Among the new rules, Nasdaq would require companies from some countries to raise $25 million in their initial public offering or 25% of the value of the company’s market capitalization after it makes a public debut<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Bluebird Bio (BLUE<\/span>)<\/b> 9.09M share Secondary priced at $55.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Gamida Cell (GMDA<\/span>)<\/b> 13.333M share Secondary priced at $4.50<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Gossamer Bio (GOSS<\/span>)<\/b> 9.434M share Secondary priced at $13.25<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Krystal Biotech (KRYS<\/span>)<\/b> 2.3M share Secondary priced at $55.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Moderna (MRNA) 17.6M share Spot Secondary priced at $76.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SmileDirectClub (SDC<\/span>)<\/b> announced that it has filed a lawsuit seeking approximately $2.8 billion from NBC Universal Media (CMCSA) and reporter Vicky Nguyen for “knowingly and intentionally making factually inaccurate, misleading and defamatory claims about the Company<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Clovis (CLVS<\/span>)<\/b> 11.09M share Spot Secondary priced at $8.05<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Turning Point Therapeutics (TPTX<\/span>)<\/b> 5.42M share Secondary priced at $60.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>West Pharmaceutical Services (WST<\/span>)<\/b> will replace Helmerich & Payne (HP) in the S&P 500<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Baidu (BIDU<\/span>)<\/b> Q1 EPS $1.25\/$3.18B vs. est. 57c\/$3.10B; 1Q adjusted Ebitda 2.85 billion yuan, +58% YoY and 1Q cash and other 146.7 billion yuan, +2.2% YoY; Q1 Baidu App daily active users, or DAUs, reached 222 million, up 28% YoY, in March 2020; iQIYI subscribers reached 118.9 million, up 23% YoY; expects revenues to be between RMB 25.0B ($3.5B) and RMB 27.3B ($3.9B), representing a growth rate of -5% to 4% year over year<\/o:p><\/p>\n

·     <\/span><\/span><\/span>IQIYI (IQ<\/span>)<\/b> guides Q2 revs of 7.25b yuan-7.67b yuan vs. est.7.60b yuan after 1Q revenue 7.65b yuan vs est. 7.31b yuan; 1Q total subscribers 119m, +11% q\/q<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Bilibili (BILI<\/span>)<\/b> Q1 adjusted EPS loss (20c)\/$327M vs. est. loss (16c)\/$308.62M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Sea Limited (SE<\/span>)<\/b> announces proposed $1B offering of convertible notes<\/p>\n<\/div>\n

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