{"id":12814,"date":"2020-06-10T05:53:51","date_gmt":"2020-06-10T10:53:51","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/10\/morning-preview-june-10-2020\/"},"modified":"2020-06-10T05:53:51","modified_gmt":"2020-06-10T10:53:51","slug":"morning-preview-june-10-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-10-2020\/","title":{"rendered":"Morning Preview: June 10, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Wednesday, June 10, 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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-57.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.21%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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27,207<\/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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-2.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.06%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,203<\/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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19.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.20%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,970<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures are pointing to a mixed open as the S&P and Dow are trending lower early, while the Nasdaq Composite is again looking to early gains after setting new records yesterday. Stocks finished mixed on Tuesday as the Nasdaq Composite crossed the 10,000 level for the first time ever, reaching a new all-time level for a third consecutive session behind strength in large cap tech as Apple (AAPL<\/span>), Amazon (AMZN<\/span>) and Facebook (FB<\/span>) all rose more than 3% to all-time highs. However, the S&P 500 and Dow Jones Industrial Average posted losses (Dow snapped its 6-day win streak) ahead of today’s FOMC<\/span> rate announcement and Chairman Powell’s press conference as investors search for any signs of slowing support for the economy. In currency markets, the dollar declined for a ninth straight day, its longest losing streak since 2006, while Treasury prices advanced, sending the 10-year yield 7 bps lower to 0.81% and the 30-year yield down 9 bps to 1.56%. In Asian markets overnight, The Nikkei Index gained 33 points to 23,124, the Shanghai Index fell -12 points to 2,943 and the Hang Seng Index slipped 7 points to 25,049. In Europe, the German DAX<\/span> is down around -125 points to dip back under 12,500, while the FTSE 100 is down over 30 points to 6,300. All eyes on the Fed today where no rate change or new stimulus measures are expected at this time, but Fed Chairman Powell is expected to talk about COVID<\/span>, the current stimulus plans, the economy and what is plan next in his press conference following. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> dropped -25.21 points<\/span>, or 0.78%, to 3,207.18<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> fell -300.14 points<\/span>, or 1.09%, to 27,272.30<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>jumped 29.01 points<\/span>,<\/span> or 0.29%, to 9,953.75<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> declined -29.84 points<\/span>, or 1.94% to 1,507.05<\/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>8:30 AM EST      Consumer Price Index (CPI) MoM for May…est. 0.0%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Consumer Price Index (CPI) YoY for May…est. 0.0%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      CPI Core Ex: Food & Energy MoM for May…est. 0.3%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      CPI Core Ex: Food & Energy YoY for May…est. 1.3%<\/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       FOMC Rate Decision – no change in rates expected<\/o:p><\/p>\n

·     <\/span><\/span><\/span>2:00 PM EST       Monthly Budget Statement for May…est. (-$585.0B)<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Earnings Before the Open: CHS<\/span>, CRWS<\/span>, DAKT<\/span>, GES<\/span>, GHM<\/span>, RRGB<\/span>, UNFI<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: MIND<\/span>, OXM<\/span>, STRM<\/span><\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>FOMC Rate Decision – no change in rates expected<\/o:p><\/p>\n

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

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

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

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

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

·     <\/span><\/span><\/span>William Blair 40th Annual Growth Stock Conference, 6\/9-6\/11<\/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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-1.10<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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37.84<\/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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-0.94<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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40.24<\/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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2.80<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,724.70<\/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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0.0014<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1354<\/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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-0.40<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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107.36<\/span><\/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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-0.03<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.792%<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

·     <\/span><\/span><\/span>The OECD said<\/b> it expects the global economy to contract by 6% this year if a second wave of infections and containment measures can be avoided. In the U.S., the OECD sees GDP contracting 7.3% in 2020 and at an 8.5% rate if a second outbreak occurs.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>China producer price index<\/b> dropped 3.7% in May from a year earlier, extending a 3.1% decline in April, the National Bureau of Statistics said Wednesday. Economists had expected the industrial price gauge to drop 3.2%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>China’s consumer inflation<\/b> continued to moderate in May, with the consumer-price index rising 2.4% from a year earlier, compared with a 3.3% increase in April. The increase in CPI was the slowest in 14 months. Food prices rose 10.6% last month, retreating from a 14.8% increase in April, while nonfood prices increased 0.4%, the same as in April.<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>Chewy (CHWY<\/span>)<\/b> Q1 EPS loss (12c)\/$1.62B vs. est. loss (16c)\/$1.53B; Q1 Gross margin of 23.4% expanded 50 basis points year-over-year, Q1 Adjusted EBITDA of $3.4M improved 122% year-over-year; achieved a significant milestone by delivering our first ever quarter of positive adjusted EBITDA; Q1 Net sales per active customer up 4.1% at $357 and auto ship customer sales up 48.0% at $1.10B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Aptiv (APTV<\/span>)<\/b> 13.174M share Secondary priced at $75.91<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Red Robin (RRGB<\/span>)<\/b> Q1 adjusted EPS loss ($6.66)\/$306.1M vs. est. loss ($1.10)\/$333.84M; said Q1 comp restaurant rev decreased 20.8% after growing comp restaurant revenue by 3.7% through second fiscal period; charges in Q1 of 2020 included $95.4 mln of goodwill impairment; has re-opened approximately 270 dining rooms with limited capacity; suspended share repurchases, terminated prearranged stock trading plan under rule 10b5-1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NIO Inc. (NIO<\/span>)<\/b> files to sell 60M American depositary shares<\/o:p><\/p>\n

·     <\/span><\/span><\/span>GameStop (GME<\/span>)<\/b> Q1 EPS loss ($1.61)\/$1.02 vs. est. loss ($1.27)\/$1.07B; Q1 total comp store sales down (-17%); said e-Commerce sales increased 519% and rose over 1,000% during the 6-weeks following store closures; suspends 20200 guidance; expects to generate positive adjusted EBITDA for FY20<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Five Below (FIVE<\/span>)<\/b> 1Q EPS loss\/share 91c\/$200.9M vs. est. EPS loss\/share 30c\/$230M; Q1 comps -51.8% vs. est. -38.1%; not offering guidance for 2Q or FY 2020; continues to expect to open 100 to 120 net new stores in 2020<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Limoneira (LMNR<\/span>)<\/b> Q2 EPS (29c) on revs $39.6M vs. est. loss (6c)\/$38.9M; said for Q2 fresh lemon volume increased 13.5%; however, the effects of the COVID-19 pandemic dramatically reduced the pricing of lemons due to an oversupply in North America and reduction in overseas shipment<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Nomad Foods (NOMD<\/span>)<\/b> said it sees Q2 ahead of expectations, with organic revenue growth now expected to increase in the low-double digit percent range; organic revenue growth increased 14% through the first two months of Q2 and is expected to remain above historical levels during the month of June<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The American Petroleum Institute (API<\/span>)<\/b> showed a build of 8.42M barrels of oil for the week ending June 5, while gasoline inventories showed a draw of 2.91M barrels, distillate inventories show a build of 4.27M barrels, and Cushing inventories show a draw of 2.29M barrels<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The U.S. Bureau of Ocean Energy Management released the supplement to its environmental review of potentially the first U.S. large-scale offshore wind farm off the Massachusetts coast. BOEM says it will make a formal announcement about the draft environmental review “in the near future,” which will start a 45-day public comment. The document is a step forward for the long-delayed project, a joint venture between Copenhagen Infrastructure Partners and Avangrid (AGR<\/span>), <\/b>which is the U.S. arm of Iberdrola<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>AllianceBernstein L.P. (AB<\/span>)<\/b> preliminary assets under management increased to $596 billion during May 2020 from $576 billion at the end of April. The 3.5% increase was due to market appreciation, as well as firm wide net inflows<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Artisan Partners Asset Management (APAM<\/span>)<\/b> reported that its assets under management or AUM, as of May 31 totaled $114.4B. Separate accounts accounted for $60.7B of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $53.7B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Invesco Ltd. (IVZ<\/span>)<\/b> preliminary month-end assets under management (AUM) of $1,142.5 billion, an increase of 2.1% versus previous month-end. Net long-term outflows were $4.2 billion. Money market net outflows were $5.0 billion. These outflows were offset by non-management fee earning net inflows of $1.5 billion<\/o:p><\/p>\n

·     <\/span><\/span><\/span>National Instruments (NATI<\/span>)<\/b> said it sees Q2 EPS 22c-30c on revs $295M-$315M compared to est. 9c and $303.16M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Legg Mason (LM<\/span>)<\/b> preliminary assets under management of $780.2B as of May 31, 2020. This month’s AUM included long-term net inflows of $0.4B, driven by fixed income and alternative net inflows of $0.7B and $0.1B, respectively, partially offset by equity net outflows of $0.4B.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>California BanCorp (CALB<\/span>),<\/b> the parent company of California Bank of Commerce (CABC<\/span>)<\/b> announced that it is set to join the broad-market Russell 3000 Index, effective after the markets open on June 29, 2020.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>AbbVie Inc. (ABBV<\/span>)<\/b> and Genmab A\/S<\/b> said they will jointly develop and commercialize three of Genmab’s early-stage investigational bispecific antibody product candidates and form a discovery research collaboration for future differentiated antibody therapeutics for cancer.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cardiovascular Systems (CSII<\/span>)<\/b> 3.676M share Spot Secondary priced at $34.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Mesa Labs (MLAB) 600K share Secondary priced at $225.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Lakeland Industries (LAKE<\/span>)<\/b> shares rise 25%; after Q1 sales beat; Q1 EPS $1.08\/$45.6M vs. est. 15c\/$27.7M; Q1 EBITDA $12.8M, compared with $68,000 in 1Q20<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Senseonics (SENS<\/span>)<\/b> Q1 cash and cash equivalents $18.6 million; Q1 EPS loss (21c); said decrease in 1Q gross profit was primarily due to increased cost of sales as a result of impairment charges for inventory and related assets reflecting uncertainty in demand forecasts from changes made to our operational focus and current economic conditions<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Air Lease (AL<\/span>)<\/b> announced a long-term lease placement for one used Airbus A320-200 aircraft with HiSky Moldova, scheduled to deliver this July.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Brigham Minerals (MNRL<\/span>)<\/b> 6.6M share Spot Secondary priced at $13.75<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Scorpio Bulkers (SALT<\/span>)<\/b> 4.1M share Spot Secondary priced at $18.46<\/o:p><\/p>\n

·     <\/span><\/span><\/span>MSC Industrial (MSM<\/span>)<\/b> reported net sales for Q3 of $835.0M, -3.6% YoY; May net sales $269.6M vs. $253.7M YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tetra Tech (TTEK<\/span>)<\/b> sees Q3 EPS 72c-75c on revs $540M-$560M vs. est. 68c\/$567.25M; sees FY20 EPS $3.05-$3.13 vs. consensus $3.03 and guides FY20 revenue $2.3B-2.4B vs. est. $2.36B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>YRC Worldwide (YRCW<\/span>)<\/b> quarter-to-date shipments down 19.8% and worldwide quarter-to-date rev\/shipments down 4.9%<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Verint (VRNT<\/span>)<\/b> Q1 adj EPS $0.52 vs. est. $0.68 on revs $291.6Mm vs. est. $323.1Mm; says SaaS ACV +45% yr\/yr, perpetual revs down as customers delay on-premises deployments, says saw strong renewal rates and mix drive software revs; says expects results to improve throughout yr as delayed deals come back<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AMC Entertainment (AMC<\/span>)<\/b> Q1 adjusted EPS loss ($2.22) on revs $948.8M vs. est. loss ($1.52) and $951.43M; Q1 net loss of $2,176.3 mln, including $1,851.9 mln of non-cash impairment charges; cash balance as of march 31 of $299.8M; currently expect to be fully open globally in July<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Taiwan Semiconductor (TSM<\/span>)<\/b> reports May revenue of NT$93.82B, up 16.6% Y\/Y and down 2.3% M\/M.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cree (CREE<\/span>)<\/b> was downgraded to Neutral from Buy at Goldman Sachs<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Micron (MU<\/span>)<\/b> downgraded to Neutral from Outperform at Wedbush<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Pluralsight (PS<\/span>)<\/b> 11.71M share Secondary priced at $19.50<\/p>\n<\/div>\n

<\/p>\n