{"id":12809,"date":"2020-06-09T06:02:14","date_gmt":"2020-06-09T11:02:14","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/09\/morning-preview-june-09-2020\/"},"modified":"2020-06-09T06:02:14","modified_gmt":"2020-06-09T11:02:14","slug":"morning-preview-june-09-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-09-2020\/","title":{"rendered":"Morning Preview: June 09, 2020"},"content":{"rendered":"
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Early Look<\/span><\/b><\/o:p><\/span><\/p>\n

Tuesday, June 9, 2020<\/span><\/b><\/o:p><\/span><\/p>\n\n\n\n\n\n\n
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Futures<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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

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Last<\/span><\/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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-299.00<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.09%<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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27,228<\/span><\/o:p><\/span><\/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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-30.50<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.93%<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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3,197<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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

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-50.50<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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

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9,834<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock are pointing to a lower open for the first time about two-weeks as markets take a breather following the staggering spike off the March lows. Markets have absolutely soared since the intraday low on March 23rd<\/sup>, as the Nasdaq Composite has round tripped to make new all time highs above the 9,900 level (off lows around 6,600), while it took the S&P 500 index only 53 sessions to recover from more than 45% declines YTD to turn back into positive territory for the year. In Asian markets, The Nikkei Index fell -87 points to 23,091, the Shanghai Index gained 18 points to settle at 2,956 and the Hang Seng Index rose 280 points to 25,057. In Europe, the German DAX is lower by nearly -250 points to 12,575, while the FTSE 100 is down over -100 points to 6,365. The global pullback overnight comes after recently better economic data (blowout upside jobs number Friday in the U.S.), massive economic and stimulus packages from the Fed and government to boost liquidity and helps businesses\/out of work employees, while the country continues to reopening their economic following the impact of the COVID-19 coronavirus impact. But at some point, the upward momentum and positive sentiment needs to be fueled by something more, and that remains the question, what is the \u201cmore\u201d given Q2 earnings are expected to be abysmal as investors are looking for the next big catalyst (trade tensions to ease with China?). Stocks are paring recent gains ahead of the Fed\u2019s two-day policy meeting that concludes tomorrow with no rate changes expected. <\/o:p><\/span><\/p>\n

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

\u00b7<\/span>    <\/span>The S&P 500 Index<\/span><\/b> <\/span>jumped 38.46 points<\/span>, or 1.20%, to 3,232.39<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>The Dow Jones Industrial Average<\/span><\/b> <\/span>rose 461.46 points<\/span>, or 1.70%, to 27,572.44<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>The Nasdaq Composite <\/span><\/b>gained 110.66 points<\/span>,<\/span> or 1.13%, to 9,924.74<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>The Russell 2000 Index<\/span><\/b> <\/span>advanced 29.74 points<\/span>, or 1.97% to 1,536.89<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

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

\u00b7<\/span>    <\/span>6:00 AM EST      NFIB Small Business Optimism for May<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>7:45 AM EST      ICSC Weekly Retail Sales<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>8:55 AM EST      Johnson\/Redbook Weekly Sales<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>10:00 AM EST    JOLTs Job Openings for April<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>10:00 AM EST    Wholesale Inventories MoM, Apr-F<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>4:30 PM EST       API Weekly Inventory Data<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

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

\u00b7<\/span>    <\/span>Earnings Before the Open: BF\/B, CONN, FCEL, GCO, HDS, LOVE, MOV, SIG<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Earnings After the Close: AMC, SHWY, FIVE, GME, LAKE, LMNR, SENS, VRNT<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

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

\u00b7<\/span>    <\/span>Deutsche Bank 11th Annual Global Industrials and Materials Virtual Summit, 6\/8-6\/9<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Deutsche Bank Global Consumer Virtual Conference, 6\/9-6\/11<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Goldman Sachs 41st Annual Global Healthcare Conference, 6\/9-6\/11<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Morgan Stanley 11th Annual Financial Virtual Conference, 6\/9-6\/10 <\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Oppenheimer virtual Software and Semiconductor Tour, 6\/8-6\/12<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Stifel 2020 Virtual Cross Sector Insight Conference, 6\/8-6\/10<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>William Blair 40th Annual Growth Stock Conference, 6\/9-6\/11<\/o:p><\/span><\/p>\n

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

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Up\/Down<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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Last<\/span><\/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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-0.95<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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37.24<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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

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-0.77<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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40.03<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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

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

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1,714.40<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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EUR\/USD<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-0.0029<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1265<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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JPY\/USD<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-0.48<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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107.95<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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10-Year Note<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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-0.049<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.825%<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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World News<\/o:p><\/span><\/b><\/p>\n

\u00b7<\/span>    <\/span>The longest expansion in U.S. history ended in February<\/span><\/b> as the economy fell into deep recession, according to the group responsible for making such declarations. The National Bureau of Economic Research on Monday said a 128-month expansion \u2014 the longest dating to 1854 \u2014 came to a halt in February. The recession also began the same month.<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>May NFIB Small Business Optimism Index<\/span><\/b> level at 94.4 vs. consensus of 92.0<\/o:p><\/span><\/p>\n

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

Consumer<\/o:p><\/span><\/i><\/b><\/p>\n

\u00b7<\/span>    <\/span>Macy\u2019s (M)<\/span><\/b> said it raised a total of $4.5B, including $3.15B in borrowings against real estate assets; expects to have sufficient liquidity to fund operations, purchase new inventory as stores reopen and repay upcoming debts in fiscal 2020 and 2021<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Vroom (VRM<\/span><\/b>) 21.25M share IPO priced at $22.00<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Conn’s (CONN)<\/span><\/b> Q1 non-GAAP EPS loss ($1.89) on revs $317.2M vs. est. loss (32c)\/$309.86; said Q1 E-commerce sales increased over 700% to $5.4M YoY<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>HD Supply (HDS)<\/span><\/b> Q1 adj EPS 67c\/$1.4B above the 52c\/$1.37B est; said preliminary net sales in May 2020 were approximately $431M, which represents a YoY average daily decline of approximately 7.3%; preliminary May YoY average daily net sales decline by business segment was 13.4% in Facilities Maintenance and 1.4% in Construction & Industrial; said will not provide Q2 or year guidance<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Calavo Growers (CVGW)<\/span><\/b> 2Q net sales $281.2Mm vs. est. $313.3Mm, adj EPS $0.40 vs. est. $0.48, saw demand in retail grocery and foodservice channels begin to improve in April with further gains thru May<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Casey\u2019s General (CASY)<\/span><\/b> Q4 EPS $1.67 on revs $1.81B vs. est. $1.79 and $1.76B; Q1 same store gallons -14.7% vs. est. -16.1%<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Scott\u2019s Miracle Grow (SMG)<\/span><\/b> raises year sales view to up 16%-18% from prior view up 6%-8%; also boosted year EPS view to $5.65-$5.85 from prior $4.95-$5.15  mainly to stronger growth in the U.S. Consumer segment, where now expects growth of 9%-11% from prior range of 1%-3%<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Wendy\u2019s (WEN)<\/span><\/b> global May comps -3.3%, qtr-to-date comps thru May -9.9%; comps turn positive last week of May, says global same-restaurant sales have improved each week thru fiscal May, says breakfast in US continued to perform very strongly in fiscal May at about 8% of US system sales; US digital sales in May about 4.5% of US systemwide sales; will discontinue intra-qtr updates related to Covid impact<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Aptiv (APTV)<\/span><\/b> files to sell $1B of ordinary shares, $1B of Convertible Preferred Shares<\/o:p><\/span><\/p>\n

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Energy<\/o:p><\/span><\/i><\/b><\/p>\n

\u00b7<\/span>    <\/span>Chesapeake Energy Corp. (CHK)<\/span><\/b> shares slipped after the close after a Bloomberg report said the nat gas provider is prepping for Chapter 11 bankruptcy filing that could give lenders control of company. Reuters first reported in April the company was preparing for potential bankruptcy filing as it grapples with an unprecedented rout in energy prices<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

Financials<\/o:p><\/span><\/i><\/b><\/p>\n

\u00b7<\/span>    <\/span>MasterCard (MA)<\/span><\/b> Q2 operating metrics update: switched volume continues to show improving trend since week ending May 7, seeing positive YoY growth since week ended May 7 in some markets that have opened; switched volume greater improvement in card present growth since May 7; cross-border volumes continue to be impacted by decline in travel and remains essentially unchanged<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>NMI Holdings (NMIH), Essent Group (ESNT), Radian Group (RDN)<\/span><\/b> and MGIC Investment (MTG)<\/b> all downgraded to Market Perform from Outperform at Keefe Bruyette, cutting the mortgage insurance sector on valuation noting while the sector is still down for the year, all four names have more than doubled from their April lows<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Spirit Realty (SRC)<\/span><\/b> 8M share Spot Secondary priced at $37.35<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

Healthcare<\/o:p><\/span><\/i><\/b><\/p>\n

\u00b7<\/span>    <\/span>Global Blood Therapeutics (GBT)<\/span><\/b> said it plans to ask the FDA to allow expanded use of its Oxbryta sickle cell treatment in children aged 4-11 years, expanding on an earlier approval for patients 12 and over.<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Hologic (HOLX)<\/span><\/b> sees 3q surgical revenue to decline 65% to 70% and sees 3q diagnostics rev up 20 to 25%<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Kindred Biosciences (KIN)<\/span><\/b> announced a plan to enhance its strategic position; will prioritize its most attractive late stage programs and substantially reduce expenses to best position it for success with the previously announced business model<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Phreesia (PHR)<\/span><\/b> Q1 EPS loss (16c) on revs $33.4M vs. est. loss (19c) and $25.91M; reports Q1 average number of provider clients 1,632 vs. 1,549 last year.<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Roche (RHHBY)<\/span><\/b> will collaborate with Suzhou, China-based Innovent Biologics (IVBIY)<\/b> on the discovery, development and commercialization of bispecific antibodies and multiple cell therapies for the treatment of blood cancers and solid tumors<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Kezar Life Sciences (KZR)<\/span><\/b> 7.59M share Spot Secondary priced at $5.50<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Replimune Group (REPL)<\/span><\/b> 2.826M share Spot Secondary priced at $23.00<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Retrophin (RTRX)<\/span><\/b> 6.5M share Spot Secondary priced at $15.50<\/o:p><\/span><\/p>\n

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Industrials & Materials<\/o:p><\/span><\/i><\/b><\/p>\n

\u00b7<\/span>    <\/span>Alcoa (AA)<\/span><\/b> said it expects aluminum demand to pick up in this year’s H2 as China’s economy rallies following the coronavirus downturn, although overcapacity will continue to pose challenges to the industry, according to its CFO<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>General Electric (GE)<\/span><\/b> said it reopened parts of existing debt offerings for the company and GE Capital for total proceeds of $3B in an effort to enhance and extend its liquidity.<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>O-I Glass (OI)<\/span><\/b> said Q2 had temporarily lower shipments and output cuts; says volume trends gradually improved over the past few weeks<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Ferroglobe (GSM)<\/span><\/b> Q1 EPS loss (22c) vs. (13c) last year and Q1 revs $311.2M vs. $447.4M last year; reports Q1 adj. EBITDA ($17.6M) vs. $3.3M last year<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Piedmont Lithium (PLL)<\/span><\/b> 1.8M share Secondary priced at $6.30<\/o:p><\/span><\/p>\n

 <\/o:p><\/span><\/p>\n

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

\u00b7<\/span>    <\/span>Coupa Software (COUP)<\/span><\/b> Q1 adjusted EPS 20c\/$119.2M vs. est. 7c\/$111.51M; sees Q2 adjusted EPS 6c-8c on revs $118M-$119M above estimates of 4c and $117.05M; raises FY21 adj. EPS view to 36c-38c from 30c-33c (est. 33c) and ups FY21 revenue view to $489M-$491M from $488M-$490M<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Stitch Fix (SFIX)<\/span><\/b> Q3 EPS loss (33c) on sales $371.7M (down -9.1% YoY) vs. est. $430.5M; Q3 adjusted Ebitda loss (-$40.3M) vs. loss $0.3M YoY; 3Q active clients 3.4 million, +9.7% YoY; expects a return to positive growth in Q4<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Okta (OKTA)<\/span><\/b> offering $1.0B in convertible senior notes<\/o:p><\/span><\/p>\n

\u00b7<\/span>    <\/span>Pluralsight (PS)<\/span><\/b> announces offering of 11.71M shares of common stock for holders<\/span><\/p>\n<\/div>\n<\/div>\n

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