{"id":12812,"date":"2020-06-09T09:48:06","date_gmt":"2020-06-09T14:48:06","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/09\/mid-morning-look-june-09-2020\/"},"modified":"2020-06-09T09:48:06","modified_gmt":"2020-06-09T14:48:06","slug":"mid-morning-look-june-09-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/mid-morning-look-june-09-2020\/","title":{"rendered":"Mid-Morning Look: June 09, 2020"},"content":{"rendered":"
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Mid-Morning Look<\/o:p><\/span><\/b><\/p>\n

Tuesday, June 09, 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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-284.34<\/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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27,288<\/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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-30.93<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.96%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,201<\/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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-13.63<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.13%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,912<\/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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-32.20<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2.10%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,504<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

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U.S. equities are taking a breather following the historic rebound off the March lows, as many of the names and sectors that have flourished over the last few weeks amid optimism of a full economic recovery are seeing profit taking. Shares of energy, travel, financials, leisure, consumer among the top decliners after having surged recently with states reopening their economies and businesses. The Nasdaq Composite pulls back after setting all-time highs back-to-back sessions, rising above the 9,900 level on Monday (though the Nasdaq 100 index edged higher). The Dow Jones Industrial Average down for the first time in seven days, as Boeing (BA<\/span>) pulls back (coming into today, Boeing has added 580 Dow points in June alone thus far amid rising demand hopes for air travel). The move up for stocks (and it has been an aggressive “V<\/span>” shaped recovery in just over 50-days) has not been fundamental based as earnings for the upcoming quarter is expected to by abysmal given the impact of the COVID-19 related shutdown\/lockdowns of businesses, and more a focus on the stimulus measures from the government and hopes the impact will be short lived. In an interesting data point on twitter today, “40% of S<\/span>&P 500 members have RSIs above 70 – that is the highest level in the history of the data.” <\/o:p><\/p>\n

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Treasuries, Currencies and Commodities<\/o:p><\/p>\n

·     <\/span><\/span><\/span>In currency markets, the dollar rolling again, extending recent losses as the dollar index erases overnight gains to fall -0.25% around 96.35 (the euro jumps to 1.134). Commodity prices mixed as oil prices add to yesterday losses as much of the recent market drivers and positive news baked into prices that touched 3-month highs Friday as OPEC+ delivered the expected extension of production cuts for another month while prices have risen on the economic reopen hopes and improving demand. Gold prices bounce over 1% as risk appetite took a back seat with cautious investors awaiting clarity on the state of the economy and further stimulus from the U.S. Federal Reserve’s policy meeting. Treasury market’s rally as the yield on the benchmark 10-year Treasury yield down over 7 bps to 0.8% with stocks pulling back (10-year down off Friday high of 0.95%). <\/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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WTI Crude<\/span><\/b><\/o:p><\/span><\/p>\n<\/td>\n

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

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37.88<\/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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-0.39<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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40.41<\/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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22.30<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,727.40<\/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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0.0046<\/o:p><\/span><\/p>\n<\/td>\n

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1.134<\/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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-0.61<\/o:p><\/span><\/p>\n<\/td>\n

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107.82<\/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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-0.071<\/o:p><\/span><\/p>\n<\/td>\n

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0.803%<\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n

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

·     <\/span><\/span><\/span>Retailers; Macy’s (M<\/span>)<\/b> shares rose after saying it raised a total of $4.5B, including $3.15B in borrowings against real estate assets and expects to have sufficient liquidity to fund operations, purchase new inventory while also issued prelim earnings update in-line with co’s estimates; TIF<\/span><\/b> reports comparable sales fell 43% in FQ1 on a constant-currency basis, even with e-commerce sales up 43% during the quarter and gross margin fell to 55.6% of sales vs. 61.7% a year ago; SFIX <\/span><\/b>shares slip after printing a miss for FQ3, with revenue 11% below the Street and Gross Margins also missing views and did not provide guidance; SIG<\/span><\/b> reports comparable sales fell -38.9% in FQ1 vs. -35.4% consensus while comp sales were down -39.0% in North America and were off -37.5% at international locations and gross margin fell to 23.9% of sales vs. 34.9% a year ago; NKE <\/span><\/b>tgt raised ahead of earnings later this month at Guggenheim to $115 from $100; other movers on earnings included GCO<\/span>, CASY<\/span>, CONN<\/span><\/b> which slipped along with broader pullback in retail; DKS <\/span><\/b>was upgraded to outperform at Oppenheimer with $52 tgt<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Consumer finance and lending; TRU<\/span><\/b> said it sees qtr revenue declines in line with upside outlook; MA<\/span><\/b> said switched volume continues to improve since the week ended May 7 with volume transactions down -7% in the week ended May 28 vs. a 12% decline for the week ended May 7 and the 20% drop for the full month of April; MGI<\/span><\/b> says 100% YoY digital transaction growth in May, significant growth from Q1 of 2020 and MoneyGram online delivered 107% year-over-year transaction growth in May<\/o:p><\/p>\n

·     <\/span><\/span><\/span>E&P sector; CHK<\/span><\/b> shares dropped 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; in research, Bank America upgraded OXY<\/span><\/b> to buy, while downgraded CVX<\/span><\/b> and CXO<\/span><\/b> to neutral; in E&P space, MKM Partners downgraded MTDR<\/span><\/b> and CLR<\/span><\/b> downgraded saying we are now looking at the space reflecting just under our long dated view and stocks are stretched<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Internet; EBAY<\/span><\/b> upgraded at Wells Fargo saying the review of omnichannel retailer commentary and EBAY’s upward 2Q guidance revision last week indicate to us continued strength, if not acceleration, in digital commerce from March into April and May; WIX<\/span><\/b> upgraded to overweight with $250 tgt at KeyBanc saying surging online content and commerce initiatives likely improve the adoption and reach of the Wix platform; REAL <\/span><\/b>reported gross merchandise value declined about 44% year over year from mid-March through mid-April and said GMV declined approximately 33% Y\/y, and May GMV declined approximately 19% Y\/y<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>COUP<\/span><\/b> +2%; after another beat and raise quarter, which showed impressive execution in a challenging macro backdrop while one analyst noted implied guidance for Q2 organic billings growth of 14% y\/y, or 23% ex the Q1 pull forward, is consistent with Q1 billings guidance<\/o:p><\/p>\n

·     <\/span><\/span><\/span>DXCM<\/span><\/b> +4%; tgt raised to $430 from $360 at Cowen while Raymond James also positive mention on the diabetes sector, calling it one of the most attractive themes in MedTech<\/o:p><\/p>\n

·     <\/span><\/span><\/span>LOVE<\/span><\/b> +27%; after Q1 revs rise 33% to $54.4M driven by an increase in internet sales while Q1 comparable sales increase 50% and posts a smaller net loss of $8.3M, smaller than last year’s $9.1M loss<\/o:p><\/p>\n

·     <\/span><\/span><\/span>M <\/span><\/b>+3%; after saying it raised a total of $4.5B, including $3.15B in borrowings against real estate assets and expects to have sufficient liquidity to fund operations, purchase new inventory while also issued prelim earnings update<\/o:p><\/p>\n

·     <\/span><\/span><\/span>OPGN<\/span><\/b> +5%; said its Unyvero Panel for pneumonia identified bacterial co-infections in hospitalized patients with COVID-19 pneumonia in five hours, compared with bacterial culture that can take up to several days<\/o:p><\/p>\n

·     <\/span><\/span><\/span>REAL<\/span><\/b> +2%; reported gross merchandise value declined about 44% year over year from mid-March through mid-April and said GMV declined approximately 33% Y\/y, and May GMV declined approximately 19% Y\/y<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SMG <\/span><\/b>+2%; raises year sales view to up 16%-18% from prior view up 6%-8%; boosts year EPS view to $5.65-$5.85 from prior $4.95-$5.15 mainly to stronger growth in the U.S. Consumer segment<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SWAV <\/span><\/b>+3%; after CMS issued new codes for peripheral IVL procedures taking place in the hospital outpatient and in-patient settings<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>CHK<\/span><\/b> -50%; 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<\/o:p><\/p>\n

·     <\/span><\/span><\/span>JWN<\/span><\/b> -8%; another sector broadly lower after recent surge as retail falls on mixed earnings in space (SIG<\/span>, CONN<\/span><\/b>) and general profit taking (PVH<\/span>, FOSL<\/span><\/b>)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>OXY<\/span><\/b> -12%; as energy stocks pullback after yesterday’s surge with weakness in MRO<\/span>, APA<\/span>, NBL<\/span>, FANG<\/span><\/b> all falling<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SFIX<\/span><\/b> -6%; after printing a miss for FQ3, with revenue 11% below the Street and Gross Margins also missing views and did not provide guidance<\/o:p><\/p>\n

·     <\/span><\/span><\/span>UAL<\/span>, RCL<\/span>, NCLH<\/span><\/b> among names falling over 10% early in profit taking move after mass run up in in airlines and cruise lines (paring losses now)<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Blackstone Mortgage (BXMT<\/span>) 10M share Spot Secondary priced at $28.20<\/o:p><\/p>\n

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

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

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

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

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

·     <\/span><\/span><\/span>Vroom (VRM<\/span>) 21.25M share IPO priced at $22.00<\/p>\n<\/div>\n

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