{"id":12819,"date":"2020-06-11T05:53:47","date_gmt":"2020-06-11T10:53:47","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/11\/morning-preview-june-11-2020\/"},"modified":"2020-06-11T05:53:47","modified_gmt":"2020-06-11T10:53:47","slug":"morning-preview-june-11-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-11-2020\/","title":{"rendered":"Morning Preview: June 11, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Thursday, June 11, 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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-561.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2.09%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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26,271<\/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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-54.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.70%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,121<\/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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-137.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.37%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,935<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures are down sharply, tracking Asian and European markets lower a day after the Dow Jones Industrial Average fell 280 points, a second straight day of declines while the tech heavy Nasdaq closed above the 10,000 level for the first time, led by all-time highs for large cap giants AAPL<\/span>, AMZN<\/span>, NVDA<\/span>, MSFT<\/span> and FB<\/span>. Stocks rallied initially after the Fed said it’ll keep buying bonds and keep interest rates near zero at least until 2022, which prompted the risk on spike, but markets slowly melted into the close as Fed Chairman Powell struck a somber tone on the jobs situation saying “there remains “a lot of work” to do with millions still out of jobs. Powell also said, “My assumption is that there will be a significant chunk, well, well into the millions of people who don’t get to go back to their old jobs and there may not be a job in that industry for them for some time. It could be some years before we get back to those people finding jobs.” The caution expressed in the jobs outlook along with a recent resurgence in COVI9-19 infection rates in several US<\/span> states that have recently reopened, is renewing concerns of a potential second wave. In Asian markets, The Nikkei Index plunged -652 points (2.82%) to 22,472, the Shanghai Index fell -22 points to 2,920 and the Hang Seng Index dropped -569 points (2.27%) to 24,480. In Europe, the German DAX<\/span> is down about -250 points to 12,275, while the FTSE 100 is down roughly -125 points to 6,200. Safe haven assets are rising early, with solid gains for gold and Treasury prices (as the yield on the 10-year falls below 0.7%). The other focus today remains the weekly jobless claims report as another 1.5M are expected to file first time unemployment claims and roughly 20M are expected to continue receiving unemployment (data at 8:30 AM EST). <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> dropped -17.04 points<\/span>, or 0.53%, to 3,190.14<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> fell -282.31 points<\/span>, or 1.04%, to 26,989.99<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>gained 66.59 points<\/span>,<\/span> or 0.67%, to 10,020.35<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> declined -39.66 points<\/span>, or 2.63% to 1,467.39<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>8:30 AM EST      Weekly Jobless Claims…est. 1.55M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Continuing Claims…est. 20.0M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Producer Price Index (PPI) MoM for May…est. 0.1%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Producer Price Index (PPI) YoY for May…est. (-0.1%)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      PPI Core Ex: Food & Energy MoM for May…est. (-1.2%)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      PPI Core Ex: Food & Energy YoY for May…est. 0.4%<\/o:p><\/p>\n

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

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

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

·     <\/span><\/span><\/span>Earnings Before the Open: ADXS<\/span>, JW<\/span>\/A<\/span>, PLCE<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: ADBE<\/span>, PLAY<\/span>, PVH<\/span>, SEAC<\/span><\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>FBN Silicon Valley Tech Virtual Tour, 6\/11-6\/12<\/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>Oppenheimer virtual Software and Semiconductor Tour, 6\/8-6\/12<\/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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38.50<\/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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40.66<\/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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19.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,740.20<\/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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0.0007<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1381<\/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<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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106.96<\/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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-0.029<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.696%<\/span><\/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>Uber (UBER<\/span>)<\/b> and Lyft Inc. (LYFT<\/span>):<\/b> the California Public Utilities Commission said in an order that ride-hail drivers are employees under AB5, the state’s new gig-work law. “For now, transportation network companies’ drivers are presumed to be employees and the Commission must ensure that TNCs comply with those requirements that are applicable to the employees of an entity subject to the Commission’s jurisdiction<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Nio (NIO<\/span>)<\/b> priced 72M American depositary shares, each representing one Class A ordinary share of the company, at $5.95 per ADS<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Target (TGT<\/span>)<\/b> raises dividend by 3% to 68c per share from 66c per share<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cannae Holdings (CNNE<\/span>)<\/b> 11M share Spot Secondary priced at $37.50<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Jack in the Box (JACK<\/span>)<\/b> system says same-store sales have accelerated into 3Q, rising approximately 5% through the first eight weeks ended June 7; expects to return to its typical quarterly reporting calendar and does not intend to issue further interim updates<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Oxford Industries (OXM<\/span>)<\/b> Q1 adj EPS loss ($1.12) on sales $160.34M vs. est. loss (27c) and $172.54M; Q1 e-commerce sales grew 12% over q1 last year & positive momentum has continued into Q2; expect to have almost all locations open by end of June; confident it has ample liquidity to satisfy ongoing cash requirements in fiscal 2020 & for foreseeable future; Q1 inventory increased 8% to $169M vs. $157M in prior year period<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tailored Brands (TLRD<\/span>)<\/b> sees Q1 revenue $286.7M, says Q1 gross margin was $29.7M, while as a percent of sales, gross margin was 10.4%; excluding occupancy costs, gross margin was $130.8M, or 45.6% of sales, down from 56.4% last year on an adjusted basis<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Pacific Gas and Electric (PCG<\/span>)<\/b> announced the latest overhaul of its board of directors in another step toward the nation’s largest utility ending its bankruptcy. The board includes 11 new directors who will oversee the decisions made by PG&E management<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Oneok (OKE<\/span>)<\/b> downgraded to neutral from buy at Bank America saying the stock looked fairly valued after rising more than 170% off the lows<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Caterpillar (CAT<\/span>)<\/b> plans to keep some of its plants shut for longer than expected with demand languishing, Bloomberg reported<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Deutsche Lufthansa<\/b> will cut 22,000 full-time jobs, the airline said Thursday according to media reports. Half of the job losses will be in Germany as it said that it would operate 100 fewer aircraft following the coronavirus crisis<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Banks dropped sharply on Wednesday, erasing a good part of the recent rally, as the reality of Fed keeping rates low through at least 2022 combines with likely high default rates, anemic loan growth, low net interest income sunk shares of WFC<\/span>, USB<\/span>, C<\/span>, JPM<\/span><\/b><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Annaly Capital (NLY<\/span>)<\/b> cuts quarterly dividend to 22c from 25c per share<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Manning & Napier (MN<\/span>)<\/b> reports preliminary AUM $18.6B as of May 31; compared with $18B at April 30, and $17.1B at March 31.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>PennyMac Financial (PFSI<\/span>)<\/b> increases stock repurchase authorization to $500M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Virtus Investment (VRTS<\/span>)<\/b> reported preliminary long-term and total AUM as of May 31, 2020 of $103.9B & $105.3B respectively<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>CareDx (CDNA<\/span>)<\/b> 3.91M share Secondary priced at $32.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Catalent (CTLT<\/span>)<\/b> announces offering of $550M of common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Avidity Biosciences (RNA<\/span>)<\/b> IPO deal size raised to 12M from 10M shares with price range to $17.00-$18.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ChemoCentryx (CCXI<\/span>)<\/b> 5.2M share Spot Secondary priced at $58.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Clovis Oncology (CLVS<\/span>)<\/b> announces completion of target enrollment in the ATHENA trial, a phase 3 maintenance treatment study in front-line, newly-diagnosed advanced ovarian cancer; topline data for Rubraca monotherapy arm vs placebo expected 2h 2021; intended to support a supplemental new drug application filing (sNDA); topline data from Rubraca and Opdivo in combination vs Rubraca monotherapy expected one year or more later<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Bristol Myers (BMY<\/span>)<\/b> announced that Opdivo, or nivolumab, was approved by the FDA for the treatment of patients with unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma, or ESCC, after prior fluoropyrimidine- and platinum-based chemotherapy<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Mymetics’ (MYMX<\/span>)<\/b> subsidiary to receive access to the European vaccine infrastructure TRANSVAC2 services for the evaluation and development of virosome-based vaccines against COVID-19.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Sorrento Therapeutics (SRNE<\/span>)<\/b> shares rise following its announcement that an application for Emergency Use Authorization (EUA) is under FDA review for company’s COVI-TRACK in vitro diagnostic test kit for the independent detection of IgG and IgM antibodies<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Zynex (ZYXI<\/span>)<\/b> is moving into the S&P SmallCap 600 index, replacing KEMET (KEM<\/span>)<\/b> in the index, with Yageo Corp. close to closing its deal to acquire KEMET<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>GrubHub (GRUB<\/span>)<\/b> has reached an agreement to be acquired by Just Eat Takeaway.com in an all stock deal valued at $75.15 a share, or a total of $7.3 billion. The acquisition will create the world’s largest online food delivery company outside China as measured by revenues and gross merchandise value. https:\/\/on.mktw.net\/2AUbAZR<\/a> <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Bill.com (BILL<\/span>)<\/b> 7.2M share Secondary priced at $74.25<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Vicor (VICR<\/span>)<\/b> 1.54M share spot secondary priced at $65.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Disneyland Resort (DIS<\/span>)<\/b> to begin phased reopening July 9, theme parks to open July 17<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Mimecast Limited (MIME<\/span>)<\/b> to join the Russell 3000 index after market opens June 29th<\/sup><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Zendesk (ZEN<\/span>)<\/b> plans to offer $1B of convertible senior notes due 2025 in a private offering.<\/p>\n<\/div>\n

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