{"id":12748,"date":"2020-05-27T05:53:35","date_gmt":"2020-05-27T10:53:35","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/05\/27\/morning-preview-may-27-2020\/"},"modified":"2020-05-27T05:53:35","modified_gmt":"2020-05-27T10:53:35","slug":"morning-preview-may-27-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-may-27-2020\/","title":{"rendered":"Morning Preview: May 27, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Wednesday, May 27, 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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365.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.46%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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25,367<\/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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38.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.29%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,033<\/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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96.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.03%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,503<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures are pointing to another strong open, adding to Tuesday’s big rally where the S&P 500 topped its 200-day moving average for the first time since early March on continued optimism about economies reopening and the potential development of a coronavirus vaccine. Helping fuel the rally remains hopes of yet more government relief after Senate Majority Leader Mitch McConnell said Congress will “probably” have to pass another coronavirus relief bill and will decide whether to do so in the coming weeks. Meanwhile, the European Commission is due to present its proposal for a bailout package, potentially backing efforts by France and Germany for a 500 billion-euro ($547 billion) fund to aid recovery efforts. In Asian markets, The Nikkei Index gained 148 points to settle at 21,419, the Shanghai Index dipped -9 points to 2,836 and the Hang Seng Index fell -83 points to 23,301. In Europe, the German DAX<\/span> is up about 190 points to trade near 11,700, while the FTSE 100 is higher by 80 points to 6,150. For the time being, the ratcheting trade tensions between the U.S. and China move to the back burner as an ongoing recovery in coronavirus pandemic hardest hit sectors such as airlines, cruise lines, theme parks, restaurants and the like have seen the biggest gains to start the week along with financials. Markets also ignoring the late day comments Tuesday that the U.S. was considering a range of sanctions to punish Beijing for its crackdown on Hong Kong. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 36.32 points<\/span>, or 1.23%, to 2,991.77<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 529.95 points,<\/span> or 2.17%, to 24,995.11<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>gained 15.63 points<\/span>,<\/span> or 0.17%, to 9,340.22<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 37.54 points<\/span>, or 2.77% to 1,393.07<\/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>10:00 AM EST    Richmond Fed Manufacturing Index for May<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>2:00 PM EST       Fed Beige Book Released<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Earnings Before the Open: CMCO<\/span>, IMBI<\/span>, PLAB<\/span>, RL<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: ADSK<\/span>, BGFV<\/span>, BOX<\/span>, COHR<\/span>, HPQ<\/span>, NTAP<\/span>, NTNX<\/span>, SMTC<\/span>, SPTN<\/span>, TOL<\/span>, UHAL<\/span><\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Fed’s Bullard discusses the economy during the pandemic 12:30 PM EST<\/o:p><\/p>\n

·     <\/span><\/span><\/span>KeyBanc Industrials and Materials Virtual Conference, 5\/26-5\/29<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cowen Technology, Media and Telecom Conference, 5\/27-5\/28<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Deutsche Bank Global Financial Services Conference,5\/26-5\/27<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Oppenheimer MedTech Virtual Day<\/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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-0.12<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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34.23<\/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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-0.25<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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35.92<\/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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-9.90<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,718.30<\/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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0.0044<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1026<\/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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0.12<\/o:p><\/span><\/p>\n<\/td>\n

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107.66<\/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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+0.001<\/o:p><\/span><\/p>\n<\/td>\n

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0.698%<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

·     <\/span><\/span><\/span>Tesla Inc. (TSLA<\/span>)<\/b> has cut prices of its electric vehicles by as much as 6% in North America following a decline in auto demand in the region during weeks of lockdown that have now started to ease; also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X SUV’s; the starting price for its Model S sedan is now $74,990, down from $79,990 and its Model X SUVs are now priced at $79,990, from $84,990, and the lowest-priced Model 3 sedan is $2,000 cheaper at $37,990.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cavco Industries (CVCO<\/span>)<\/b> Q4 EPS $1.29\/$255.3M vs. est. $1.64\/$2415M; says the increase was from improved home sales volume, including homes sold from the new Destiny acquisition, changes in product mix and higher home selling prices compared to the prior year<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Jack in the Box (JACK<\/span>)<\/b> upgraded to Neutral from Sell at Goldman Sachs and raised the price target to $66, up from $42<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SpaceX’s <\/b>Crew Dragon beat Boeing’s (BA<\/span>)<\/b> Starliner to the finish line for today’s 4:33 p.m. liftoff in a chance to become the first private company to fly humans into orbit. “All the teams are go,” said NASA’s Kathy Lueders, as odds of acceptable launch weather improved to 60%.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tractor Supply (TSCO<\/span>)<\/b> guides Q2 EPS $2.45-$2.65 vs. est. $1.77 and sees Q2 sales up 24 -29% and comp sales growth of 20%-25%; raises frontline team member compensation permanently and adds new benefits for part-time team members<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Columbus McKinnon (CMCO<\/span>)<\/b> Q4 adjusted EPS 58c\/$189.5M vs. est. 46c\/$186.59M; guides Q1 revenue $130M-$140M vs. est. $149.23M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Heico (HEI<\/span>)<\/b> Q2 adj EPS 55c on sales $591.7M (up 6.2% YoY) vs. est. 40c and $440M; businesses that operate within commercial aerospace industry have been materially impacted in qtr; says continue to forecast positive cash flow from operations for remainder of FY20<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Bank of Montreal (BMO<\/span>)<\/b> Q2 adj EPS C$1.04 vs. C$2.30 last year and reports Q2 revenue C$5.46B vs. C$5.65B last year; said Q2 CET1 capital ratio 11%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>StoneCo Ltd (STNE<\/span>)<\/b> shares surge over 30% after posting $37.6B total payment volume in Q1 despite COVID-19, up 42.1% in 2019 and Q11 revenue stands at $716.8M, a 33.8% increase year-over-year while warns it expects greatest impact from COVID-19 in Q2<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Essent Group (ESNT<\/span>)<\/b> will replace Patterson-UTI Energy (PTEN<\/span>)<\/b> in the S&P MidCap 400, and Patterson-UTI Energy will replace Noble Corporation (NE<\/span>)<\/b> in the S&P SmallCap 600 effective prior to the open of trading on Monday, June 1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Repay Holdings (RPAY<\/span>)<\/b> files to sell 8M shares of Class A common stock<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Atara Biotherapeutics (ATRA<\/span>)<\/b> 12.63M share Secondary priced at $11.32<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Regeneron (REGN<\/span>)<\/b> 11.83M share Secondary priced at $515.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>TransMedics (TMDX<\/span>)<\/b> 5M share Secondary priced at $14.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Coherus BioSciences (CHRS<\/span>)<\/b> will replace Opus Bank (OPB<\/span>)<\/b> in the S&P SmallCap 600 effective prior to the open of trading on Monday, June 1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Argenx (ARGX<\/span>)<\/b> announces offering of $500M of ordinary shares<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NuVasive (NUVA<\/span>)<\/b> announces $400M senior notes offering due 2023<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Amazon (AMZN<\/span>)<\/b> is in advanced talks to acquire Zoox Inc. in a move that would expand the company’s reach in autonomous vehicle technology, WSJ reports<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Disney (DIS<\/span>)<\/b> and Sea World (SEAS<\/span>)<\/b> will present re-opening plans to the Orange County (Fla) Economic Recovery Task Force at a virtual meeting Wednesday morning<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fiverr (FVRR<\/span>)<\/b> files to sell $100M of ordinary shares<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Keysight (KEYS<\/span>)<\/b> Q2 EPS 78c vs. est. $1.13 and revenue $895M vs. est. $1.01B; 2Q orders $1.09 billion, -2.9% YoY; said sees Q3 earnings, revenue, margin “in line with or better than” Q2<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ooma (OOMA<\/span>)<\/b> Q1 EPS 11c\/$40.31M vs. est. 2c\/$39.84M; delivered 54% year-over-year subscription revenue growth for Ooma Business; sees Q2 EPS 6c-9c on revs $40M-$40.5M vs. est. 3c\/$40.76M; sees FY21 EPS 21c-30c on revs $161M-$164M vs. est. 11c\/$165.8M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ViaSat (VSAT<\/span>)<\/b> Q4 non-GAAP EPS 32c\/$591.7M vs. est. 24c\/$598.5M; reports Q4 sales backlog $1.871B; said underlying demand for whole of FY2021 remains strong; said continue to see increased demand for fixed broadband, anticipate further growth in net subscribers during Q1 FY2021<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Photronics (PLAB<\/span>)<\/b> Q2 EPS 10c\/$142.8M vs. est. 14c\/$147.63M; sees Q3 EPS 11c-17c on revs $145M-$155M vs. est. 16c\/$154.27M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AT&T’s (T<\/span>)<\/b> WarnerMedia is launching HBO Max streaming service on Wednesday, taking on Netflix (NFLX<\/span>), Disney (DIS<\/span>)<\/b> and Amazon (AMZN<\/span>)<\/b> amid increased demand for streaming during coronavirus lockdowns<\/p>\n<\/div>\n

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