{"id":12775,"date":"2020-06-02T05:52:44","date_gmt":"2020-06-02T10:52:44","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/02\/morning-preview-june-02-2020\/"},"modified":"2020-06-02T05:52:44","modified_gmt":"2020-06-02T10:52:44","slug":"morning-preview-june-02-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-02-2020\/","title":{"rendered":"Morning Preview: June 02, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Tuesday, June 2, 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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173.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.68%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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25,636<\/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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17.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.58%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,071<\/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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57.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.59%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,652<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Global stock markets are broadly higher, paced by strong gains in Europe as Germany’s DAX<\/span> reopened after a three-day break (led by auto gains), as the main focus remains the longer-term prospects of the easing of lockdowns across the world. In Asian markets, The Nikkei Index jumped 263 points to 22,325, the Shanghai Index rose 5 points to settle at 2,921 and the Hang Seng Index gained 263 points to 23,995. In Europe, the German DAX<\/span> is surging by over 400 points (3.73%) as it outperforms other European markets to move above the 12,000 level, while the FTSE 100 is up over 60 points to 6,230. The Stoxx Europe 600 coming into Tuesday had closed higher for five of the last six sessions. Futures dropped initially overnight following President Trump’s promise to deploy the military if states and cities fail to slow the violence swelling across the nation. Stocks edged higher on Monday, snapping back after initial losses earlier in the session as the potential for an economic rebound overshadowed unrest in American cities that has sparked chaos and curfews following the death of George Floyd, a black man who was killed by police in Minneapolis last week. At the same time, markets continue to monitor the China-U.S. trade tensions after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods. The other focus remains the efforts in the U.S., and much of the world as businesses and states reopen around with hope the worst of the COVID-19 pandemic is behind us. Stocks built on last week’s gains when the Dow booked a weekly gain of 3.8%, while the S&P 500 finished 3% higher and the Nasdaq Composite Index ended the period 1.8% higher. In May overall, the Dow logged a 4.3% gain, the S&P 500 climbed 4.5%, while the Nasdaq marked a 6.8% return on the month. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 11.42 points<\/span>, or 0.38%, to 3,055.73<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 91.91 points<\/span>, or 0.36%, to 25,475.02<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>jumped 62.18 points<\/span>,<\/span> or 0.66%, to 9,552.05<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 11.34 points<\/span>, or 0.81% to 1,405.37<\/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>8:55 AM EST      Johnson\/Redbook Weekly Sales<\/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: BBW<\/span>, CBRL<\/span>, DCI<\/span>, DKS<\/span>, LE<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: AMBA<\/span>, APPS<\/span>, CRWD<\/span>, EVRI<\/span>, HQY<\/span>, MDLA<\/span>, ZM<\/span><\/o:p><\/p>\n

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 <\/o:p><\/span><\/p>\n\n\n\n\n\n\n\n\n\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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0.94<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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36.38<\/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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1.07<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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39.39<\/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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-2.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,748.30<\/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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0.0036<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1172<\/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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0.16<\/o:p><\/span><\/p>\n<\/td>\n

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107.75<\/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<\/o:p><\/span><\/p>\n<\/td>\n

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0.675%<\/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>German automakers Daimler (DDIAF<\/span>), BMW, Volkswagen<\/b> rising in Europe after Germany’s Ministry of Economics has proposed a 5 billion-euro ($5.6 billion) buyer bonus scheme as part of an impending stimulus package in an effort to boost car sales – Reuters reported<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Southwest Airlines (LUV<\/span>)<\/b> is offering buyout packages and paid leave; saying flying capacity to be down 30%; CEO Gary Kelly says the offers are an effort to “ensure survival” for LUV. A union official says that the offers were well received by pilots – Reuters<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Starbucks (SBUX<\/span>)<\/b> says expects lower sales at US stores at least until the Fall; company says employees will have a week to decide whether to take reduced hours or unpaid leave<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Taylor Morrison Home (TMHC<\/span>)<\/b> reported a 17% rise in net sales for the month of May, resulting in a sales pace per community of 2.7, a pace equal to or greater than what delivered in May for the last three consecutive years.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>HollyFrontier (HFC<\/span>)<\/b> plans to ramp up production at its El Dorado refinery in Kansas to 125K bbl\/day in the coming days as per Reuters<\/o:p><\/p>\n

·     <\/span><\/span><\/span>EnerSys (ENS<\/span>)<\/b> Q4 EPS $1.11\/$781.8M vs. est. $1.18\/$771.59M; said they estimate the disruption from the fire resulted in $30M of lost sales to Q3<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Chart Industries (GTLS<\/span>)<\/b> reported April 2020 net cash provided by operating activities for continuing operations of $15.5 million; free cash flow after including capital expenditures of $12.6 million driven by strong earnings, cash collections and supplier terms extensions; booked orders with 67 new customers in April and May<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ProPetro (PUMP<\/span>)<\/b> prelim Q1 revs $394.1M (down -28% YoY) vs. est. $390.56M; said as activity declined, we acted quickly to reduce our costs while continuing to provide safe and efficient service to our customers<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NGL Energy (NGL<\/span>)<\/b> posts Q4 loss from continuing operations of $223.7M vs. profit of $56.8M a year earlier; records a non-cash goodwill impairment charge of $250M in its Water Solutions segment; Q4 revenue falls 21% to $1.68B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>CenterPoint Energy (CNP<\/span>)<\/b> files to sell 41.98M shares of common stock for holders<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>MoneyGram (MGI<\/span>)<\/b> shares surged 30% after the close after Bloomberg reported that Western Union (WU<\/span>)<\/b> recently made a takeover offer for the rival money transfer company. A deal would bring together two of the largest U.S. providers of money transfer services https:\/\/bit.ly\/3cqijaX<\/a> <\/o:p><\/p>\n

·     <\/span><\/span><\/span>AvalonBay (AVB<\/span>)<\/b> reports May average physical occupancy 94.4% vs. 95.3% in April and reports May Like-Term Effective Rent Change down 3.5% vs. down 0.2% in April<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Federal Realty Investment Trust (FRT<\/span>)<\/b> says ~54% of total May 2020 billed recurring rents have been collected to date, ahead of pace for the April 2020 collections at April month-end; 57% of total April 2020 billed recurring rents have been collected to date<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Highwoods Properties (HIW<\/span>)<\/b> provided an update on the financial impact of the COVID-19 pandemic; said after collecting 99% of its contractually required rents for the month of April, the company has collected 99% of its contractually required rents for the month of May<\/o:p><\/p>\n

·     <\/span><\/span><\/span>QTS Realty Trust (QTS<\/span>)<\/b> 4.4M share Spot Secondary priced at $64.90<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Regency Centers (REG<\/span>)<\/b> collects 68% of April base rent and 58% of May base rent on pro-rata basis; as of May 31, 2020, ~75% of Regency’s tenants were open<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Invitation Homes (INVH<\/span>)<\/b> announces offering of 14.5M shares of common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>State Street (STT<\/span>)<\/b> files $7B mixed securities shelf<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Visa (V<\/span>)<\/b> said total U.S. payments volume fell 5% in May from 18 % in April, while QTD payment volume was down by 11%. May cross-border volume excluding intra-Europe transactions tumbles 45%, while global processed transactions fell 12%. Travel related cross-border volumes declined 78% in May<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Adaptimmune (ADAP<\/span>)<\/b> 20M share Secondary priced at $11.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Allogene Therapeutics (ALLO<\/span>)<\/b> 11.7M share Secondary priced at $47.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Guardant Health (GH<\/span>)<\/b> 11.5M share Spot Secondary priced at $84.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Kaleido Biosciences (KLDO<\/span>)<\/b> 4.75M share Spot Secondary priced at $7.50<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Pfizer (PFE<\/span>)<\/b> says it will invest up to $500 million in biotechnology companies as part of its new Pfizer Breakthrough Growth Initiative.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Intellia Therapeutics (NTLA<\/span>)<\/b> announces $75M common stock offering<\/o:p><\/p>\n

·     <\/span><\/span><\/span>OraSure (OSUR<\/span>)<\/b> announces offering of 8M shares of common stock<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>AudioCodes (AUDC<\/span>)<\/b> files automatic mixed securities shelf; announces offering of 2.6M ordinary shares<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Slack (WORK<\/span>)<\/b> initiated with an Outperform at Cowen and $45 price target saying the shift to remote work has given Slack a major booster shot to its market opportunity that will accelerate adoption and lift the company’s total addressable market<\/p>\n<\/div>\n

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