{"id":12741,"date":"2020-05-22T09:43:53","date_gmt":"2020-05-22T14:43:53","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/22\/mid-morning-look-may-22-2020\/"},"modified":"2020-05-22T09:43:53","modified_gmt":"2020-05-22T14:43:53","slug":"mid-morning-look-may-22-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/mid-morning-look-may-22-2020\/","title":{"rendered":"Mid-Morning Look: May 22, 2020"},"content":{"rendered":"
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Mid-Morning Look<\/o:p><\/span><\/b><\/p>\n

Friday, May 22, 2020<\/span><\/b><\/o:p><\/span><\/b><\/p>\n\n\n\n\n\n\n\n\n
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Index<\/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

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

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-68.03<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.28%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24,406<\/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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-4.08<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.14%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,944<\/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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-4.49<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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

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9,280<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-7.04<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.52%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,340<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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U.S. equities open lower on the day, but major averages are still on track to register roughly 3% gains for the week on vaccine hopes for COVID<\/span>-19, more dovish and accommodative commentary by various Fed speakers, rising oil prices and solid earnings results from large cap retail (TGT<\/span>, WMT<\/span>, LOW<\/span>), Stocks prices moved lower on Friday amid profit taking and against deteriorating U.S.-China relations over Beijing’s move to impose a national-security law in Hong Kong. The Hang Seng index dropped over 5% on the controversial new security law in Hong Kong and no China GDP forecast fueled the concerns over U.S.-China relations. President Donald Trump told reporters on Thursday that the U.S. would react “strongly” toward those moves on Hong Kong. Oil prices are lower, on track to snap its 6-day winning streak amid rising U.S.-China tensions, and profit taking after signs of improving demand sent prices to their best levels in 10-weeks yesterday. Tech stocks outperform amid better earnings results from chip maker NVDA<\/span> (new record highs), and software companies SPLK<\/span>, PANW<\/span>, while retailers are mixed following various earnings results (FL<\/span>, ROST<\/span>, DECK<\/span>). Treasury prices are little changed while gold prices gain on the China tensions and expected further stimulus from the government. <\/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

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 <\/o:p><\/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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-1.57<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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32.35<\/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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-1.82<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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34.24<\/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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15.10<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,737.00<\/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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-0.005<\/o:p><\/span><\/p>\n<\/td>\n

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1.090<\/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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-0.06<\/o:p><\/span><\/p>\n<\/td>\n

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107.56<\/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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-0.017<\/o:p><\/span><\/p>\n<\/td>\n

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0.654%<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Sector Movers Today<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Home improvement, Housing & Building Products; BBBY<\/span><\/b> said that it plans to reopen 600 stores, including 500 across North America, and bring back about 11,000 furloughed workers by June 13; MLM <\/span><\/b>was upgraded to overweight at JPMorgan and increased estimates and tgts on building products across the board (VMC<\/span>, SUM<\/span>, EXP<\/span><\/b>) on the back of better than expected 1Q results as see attractive upside at least in the short-term as 2Q will likely not be as bad as previously expected and considering the attractive valuations for group<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Consumer Staples; USFD <\/span><\/b>active after KKR reports 9.5% stake which was acquired on April 21 via a $500M purchase of 500k shares of the company’s convertible preferred stock; ELF <\/span><\/b>Q4 net sales increased 13% to $74.7M topping the $67M estimate (on better earnings), helped by product launches and online demand and said is grabbing more shelf space at WMT<\/span><\/b>; COTY<\/span><\/b> announces launch of Kylie Skin at European premium beauty retailer Douglas, offering six products<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Medical equipment and devices; Agilent (A<\/span>)<\/b> posted a Q2 profit beat with in-line revenue and said it is well-positioned to “face the challenges” of the COVID-19 pandemic and the company was poised to focus on “growth, a resilient business model, and strong balance sheet; ABT<\/span><\/b> said interim analysis of a study in urgent care clinics indicates its Covid-19 rapid test, ID NOW, performs best in patients tested earlier after their symptoms start to show; BSX<\/span><\/b> 25.55M share Spot Secondary priced at $34.25; NARI<\/span><\/b> 8.203M share IPO priced at $19.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Internet; BABA<\/span><\/b> reported beat in quarter with revenues of CNY114.31B vs. est. CNY107.45B. Adj. EBITDA came in at CNY25.44B vs. cons CNY21.93B\/guides FY revs to CNY650bn vs. cons CNY658bn\/said although the pandemic negatively impacted most domestic core commerce business starting in late January, they have seen a steady recovery since March; NTES <\/span><\/b>said it seeks June 11th Hong Kong listing and JD<\/span><\/b> seeks June 18th<\/o:p><\/p>\n

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Stock GAINERS<\/o:p><\/span><\/p>\n

·     <\/span><\/span><\/span>A <\/span><\/b>+6%; posted a Q2 profit beat with in-line revenue and said it is well-positioned to “face the challenges” of the COVID-19 pandemic<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AMT<\/span><\/b> +3%; and CCI<\/span><\/b> were both upgraded to outperform from perform in at Oppenheimer as expect a strong rebound in tower activity<\/o:p><\/p>\n

·     <\/span><\/span><\/span>DE <\/span><\/b>+1%; posted better than expected margins for the quarter on better earnings and revenues while sees FY net income $1.6B, below the $2.1B estimate and lowers shipment volumes in Agriculture and Turf<\/o:p><\/p>\n

·     <\/span><\/span><\/span>DECK <\/span><\/b>+8%; after topping estimates on both lines of its FQ4 report while sales were down 4.5% and gross margin slipped 10 bps to 51.5% of sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ELF<\/span><\/b> +11%; Q4 net sales increased 13% to $74.7M topping the $67M estimate (on better earnings), and said is grabbing more shelf space at Walmart<\/o:p><\/p>\n

·     <\/span><\/span><\/span>MRNA<\/span><\/b> +3%; after the NIH’s Anthony Fauci said on NPR that he expects the full results of a Phase 1 study of the biotech’s experimental Covid-19 vaccine within weeks<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NAVB<\/span><\/b> +115% after saying preliminary results from its Phase 2B study support the hypothesis that Tc99m tilmanocept imaging can provide an early indicator of treatment response in patients with active rheumatoid arthritis<\/o:p><\/p>\n

·     <\/span><\/span><\/span>PANW<\/span><\/b> +5%; as Q3 results outperform Street estimates and raises FY adjusted profit forecast to $4.78-$4.81 vs previous projection of $4.55 to $4.65<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SPLK <\/span><\/b>+8%; reported solid F1Q results with +52% y\/y ARR growth very strong, though 1Q revenue fell short of expectations, as shift to cloud bookings and shorter-term duration weighed<\/o:p><\/p>\n

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Stock LAGGARDS<\/o:p><\/span><\/p>\n

·     <\/span><\/span><\/span>ACB<\/span><\/b> -8%; downgraded to Underperform at Jefferies despite a relatively positive Q3 with the re-rating seen post numbers neither justified nor sustainable in their view<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AMRN<\/span><\/b> -2%; after competitor Hikma Pharmaceuticals said its unit gained U.S. FDA approval for a generic version of Amarin’s fish-oil based heart drug Vascepa<\/o:p><\/p>\n

·     <\/span><\/span><\/span>HPE<\/span><\/b> -9%; Q2 results were below consensus on both revenues (-16% YoY) and EPS (-47%) and the company did not provide guidance or a view on the prevailing demand environment<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ICPT<\/span><\/b> -13%; after the FDA has requested additional information related to its NDA for obeticholic acid, which it said will likely extend the review beyond the agency’s June 26 target action date<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ROKU<\/span><\/b> -3%; downgraded to Equal Weight from Overweight at Stephens with a $105 price target, slashed from $155, citing concerns about its partnership with Chinese electronics maker TCL<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SNDX<\/span><\/b> -15%; after announced disappointing results for its Phase 3 E2112 trial investigating Entinostat in HR \/HER2- breast cancer as the trial did not show an improvement in overall survival (OS<\/span>) with the addition of Entinostat to exemestane<\/o:p><\/p>\n

·     <\/span><\/span><\/span>WYNN<\/span><\/b> -5%; along with weakness in MGM<\/span>, LVS<\/span>, PENN<\/span><\/b> as casino names pare recent gains<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Boston Scientific (BSX<\/span>) 25.55M share Spot Secondary priced at $34.25<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ContraFect (CFRX<\/span>) 11.798M share Spot Secondary priced at $4.45<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Dynavax (DVAX<\/span>) 14M share Spot Secondary priced at $5.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Hoth Therapeutics (HOTH<\/span>) 1.8M share Spot Secondary priced at $2.75<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Inari Medical (NARI<\/span>) 8.203M share IPO priced at $19.00<\/p>\n<\/div>\n

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