{"id":12825,"date":"2020-06-12T06:00:04","date_gmt":"2020-06-12T11:00:04","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/12\/morning-preview-june-12-2020\/"},"modified":"2020-06-12T06:00:04","modified_gmt":"2020-06-12T11:00:04","slug":"morning-preview-june-12-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-12-2020\/","title":{"rendered":"Morning Preview: June 12, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Friday, June 12, 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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497.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.99%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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25,528<\/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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50.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.69%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,050<\/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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140.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.46%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,743<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stock futures are pointing to a sharply higher open, attempting to rebound after stocks sunk on Thursday the most since mid-March amid signs of a re-acceleration of cases of COVID<\/span>-19 in several U.S. states that have reopened, and as investors digested Wednesday’s sobering economic outlook from Federal Reserve Chairman Jerome Powell. The Nasdaq Composite slumped over 5% or about 527.62 points at 9,492.73, one day after charting a record above 10,000, while the S&P 500 suffers worst drop since March 16 with nearly 6% decline. In Asian markets, The Nikkei Index fell -167 points to 22,305, the Shanghai Index was little changed, down1-point to 2,919 and the Hang Seng Index dropped -178 points to 24,310. In Europe, the German DAX<\/span> is higher by 170 points to 12,140, while the FTSE 100 is up around 80 points to move above 6,150. With so much cash sitting on the sidelines, and as some investors may have missed the massive 40% spike off the March lows, it appears people are putting to money to work overnight as they bet on the economic recovery. Yesterday, U.S. Treasury Secretary Steven Mnuchin said testing and tracing are improving and officials understand more about how to contain the outbreak while also noting the U.S. economy will not be shut down again. Oil prices are steady and gold up modestly after yesterday’s surge, while Treasury yields rise for the first time in over a week, but still shown sharply on the week.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> plunged -188.04 points<\/span>, or 5.89%, to 3,002.10<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> fell -1,861.82 points<\/span>, or 6.90%, to 25,128.17<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>dropped -527.62 points<\/span>,<\/span> or 5.27%, to 9,492.73<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> declined -111.17 points<\/span>, or 7.58% to 1,356.22<\/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      Import Prices MoM for May<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:30 AM EST      Export Prices MoM for May<\/o:p><\/p>\n

·     <\/span><\/span><\/span>10:00 AM EST    University of Michigan Sentiment, June-P<\/o:p><\/p>\n

·     <\/span><\/span><\/span>12:00 PM EST    Household Change in Net Worth for Q1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>1:00 PM EST       Baker Hughes Weekly Rig Count <\/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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0.10<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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36.44<\/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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0.19<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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38.74<\/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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1.60<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,741.40<\/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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0.0013<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1312<\/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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0.55<\/o:p><\/span><\/p>\n<\/td>\n

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107.42<\/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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+0.042<\/o:p><\/span><\/p>\n<\/td>\n

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0.711%<\/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 UK GDP contracted a record 20.4% in April, the largest monthly fall on record, as businesses and<\/b> workers reeled under a lockdown designed to control the coronavirus pandemic<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>Dave & Busters (PLAY<\/span>)<\/b> Q1 EPS loss ($1.37) on sales $159.8M vs. est. loss (93c) and $167.8M; Q1 comp sales fell (-58.6%) in-line with estimates; suspends quarterly dividends and share repurchases; Q1 number of stores increased 8% to 137 from 127<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Lululemon (LULU<\/span>)<\/b> Q1 EPS 22c on revs $652M vs. est. 23c and $690.9M; not providing guidance for the year; 1Q direct-to-consumer revenue ex-FX +70% vs. +35% YoY with 1Q gross margin 51.3% vs. 53.9% YoY and Q1 operating margin 5% vs. 16.5% YoY; sees sufficient resources to meet liquidity needs<\/o:p><\/p>\n

·     <\/span><\/span><\/span>PVH Corp. (PVH<\/span>)<\/b> Q1 adj EPS loss ($3.03) on sales $1.34 B vs. est. loss ($1.60) and $1.36B; sees over 85% of global stores to reopen by mid-June; sees revenue decline in Q2 to be more pronounced than Q1; had $962M of pre-tax noncash impairment charges during Q1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Churchill Downs (CHDN<\/span>)<\/b> announced plans to resume operations at five casino properties in Florida, Pennsylvania, Louisiana, Maryland and Ohio from June 12 to June 19<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Hertz Global (HTZ<\/span>)<\/b> said it wants to sell up to $1B in shares while the market cap Hertz is currently around $359M. The company is asking a bankruptcy judge to approve a deal with Jefferies to allow the potential sale of 246.8M unissued shares<\/o:p><\/p>\n

·     <\/span><\/span><\/span>General Motors (GM<\/span>)<\/b> upgraded to Buy from Neutral at Goldman Sachs<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The AZEK Company (AZEK<\/span>)<\/b> 33.25M share IPO priced at $23.00<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Oneok (OKE<\/span>)<\/b> 26M share Secondary priced at $32.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Caterpillar (CAT<\/span>)<\/b> downgraded to Market Perform from Outperform at BMO Capital<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Triumph Group (TGI<\/span>)<\/b> files $600M mixed securities shelf<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Mosaic Company (MOS<\/span>) <\/b>reports potash sales volumes rose 8.7% to 810k tonnes and revs declined -13.7% to $176M in May<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Avidity Biosciences (RNA<\/span>)<\/b> 14.4M share IPO priced at $18.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Agios Pharmaceuticals (AGIO<\/span>)<\/b> announces that clinical proof-of-concept has been established based on a preliminary analysis in Phase 1 trial of mitapivat (AG-348) for sickle cell disease<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Leap Therapeutics’ (LPTX<\/span>)<\/b> DKN-01 for the treatment of gastric and gastroesophageal junction cancer has granted orphan drug designation by the FDA<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Centene Corp. (CNC<\/span>)<\/b> raised its full-year earnings guidance to reflect its current expectations for membership, revenue and medical utilization trends during the coronavirus pandemic; sees year EPS of $3.06 to $3.20 and adjusted EPS of $4.76 to $4.96 and expects full-year revenue to range from $109.5 billion to $111.9 billion (est. $4.72 and revs $110.7 billion)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Burning Rock Biotech (BNR<\/span>)<\/b> 13.5M share IPO priced at $16.50<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Editas Medicine (EDIT<\/span>) <\/b>announced results from a pre-clinical, proof-of-concept study of EDIT-301<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Generation Bio (GBIO<\/span>)<\/b> 10.5M share IPO priced at $19.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Vaxcyte (PCVX<\/span>)<\/b> 15.6M share IPO priced at $16.00<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Adobe (ADBE<\/span>)<\/b> Q2 EPS $2.45 on revs $3.13B vs. est. $2.33 and $3.16B; withdraws annual FY20 targets; sees 3Q adj EPS about $2.40 vs. est. $2.46, and sees 3Q revs about $4.15B vs. est. $3.27B; Digital Media segment revenue was $2.23B, which represents 18% YoY growth, while Creative revenue grew to $1.87B and Document Cloud revenue was $360M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SeaChange (SEAC<\/span>)<\/b> Q1 EPS loss (14c) on revs $6.92M vs. est. loss (16c) and $7.5M; to give FY 2021 outlook when it has more visibility<\/o:p><\/p>\n

·     <\/span><\/span><\/span>SiTime (SITM<\/span>)<\/b> 3.5M share Secondary priced at $32.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NXP Semiconductors (NXPI<\/span>)<\/b> and TSMC (TSM<\/span>)<\/b> announced a collaboration agreement to adopt TSMC’s 5-nanometer, or 5nm, technology for NXP’s next generation, high-performance automotive platform<\/p>\n<\/div>\n

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