{"id":12834,"date":"2020-06-15T05:52:11","date_gmt":"2020-06-15T10:52:11","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/15\/morning-preview-june-15-2020\/"},"modified":"2020-06-15T05:52:11","modified_gmt":"2020-06-15T10:52:11","slug":"morning-preview-june-15-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-15-2020\/","title":{"rendered":"Morning Preview: June 15, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Monday, June 15, 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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-544.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2.14%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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24,854<\/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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-56.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1.85%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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2,967<\/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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1.42%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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9,495<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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After the S&P 500, Dow and Nasdaq suffered their worst weekly returns since the ending of March 20, major averages are pointing to sizeable losses to start the new week, as fears rise over a “second-wave” of the coronavirus weigh heavily on market sentiment. For last week, the S&P unofficially fell 4.78%, the Dow unofficially lost 5.55%, and the Nasdaq Comp shed 2.3%. Losses piling up again as well overseas as The Nikkei Index dropped -774 points (3.47%) to 21,530, the Shanghai Index dropped -29 points to 2,890 and the Hang Seng Index fell -524 points (2.16%) to 23,776. In Europe, the German DAX<\/span> is lower by over -100 points to 11,804, while the FTSE 100 is down around -50 points to 6,050. Also heading lower is crude oil, which slipped to around $35 per barrel and the 10-year Treasury yield, which fell 4 bps to 0.66%, though defensive gold prices are also tumbling. Rising infections in several U.S<\/span>> states such as Arizona, California, Florida and Texas, as well as a new outbreak in Beijing, sent investors scurrying from risky assets. China has reported 49 new confirmed coronavirus cases as the capital Beijing re-instituted measures to contain a new outbreak. Of the new cases, 36 were reported Monday in Beijing, traced to a wholesale market that supplies much of the city’s meat and vegetables. The new cases reported over the weekend mark China’s highest daily total of coronavirus cases in two months.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 39.21 points<\/span>, or 1.31%, to 3,041.31<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 477.37 points<\/span>, or 1.90%, to 25,605.54<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>climbed 96.08 points<\/span>,<\/span> or 1.01%, to 9,588.81<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 31.46 points<\/span>, or 2.32% to 1,387.68<\/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      Empire Manufacturing for June<\/o:p><\/p>\n

·     <\/span><\/span><\/span>4:00 PM EST       Net Long-term TIC flows for April<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Earnings Before the Open: TSQ<\/span><\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: LMB<\/span>, VOXX<\/span><\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>American Diabetes Assoc Virtual Conference, 6\/12-6\/16<\/o:p><\/p>\n

·     <\/span><\/span><\/span>FBN Securities Silicon Valley Tech Virtual Tour, 6\/15-6\/16<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Jefferies 42nd Annual Nasdaq Investors Conference, 6\/15-6\/17<\/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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-0.57<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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35.69<\/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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-0.28<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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38.45<\/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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-21.80<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,715.50<\/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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-0.0004<\/o:p><\/span><\/p>\n<\/td>\n

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1.1252<\/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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-0.02<\/o:p><\/span><\/p>\n<\/td>\n

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107.36<\/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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-0.027<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.677%<\/span><\/o:p><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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S&P Index Changes effective Monday June 22nd<\/sup> <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tyler Technologies Inc. (TYL<\/span>),<\/b> Bio-Rad Laboratories Inc. (BIO<\/span>)<\/b> and Teledyne Technologies Inc. (TDY<\/span>) <\/b>will move to the S&P 500, replacing Harley- Davidson Inc. (HOG<\/span>), Nordstrom Inc. (JWN<\/span>)<\/b> and Alliance Data Systems Corp. (ADS<\/span>)<\/b> all of which will move to the S&P MidCap 400.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>S&P SmallCap 600 constituents Strategic Education Inc. (STRA<\/span>), Qualys Inc. (QLYS<\/span>)<\/b> and Glacier Bancorp Inc. (GBCI<\/span>) will <\/b>move to the S&P MidCap 400, replacing Bed Bath & Beyond Inc. (BBBY<\/span>), Matador Resources Co. (MTDR<\/span>)<\/b> and Allscripts Healthcare Solutions Inc. MDRX)<\/b> all of which will move to the S&P SmallCap 600.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Middleby Corp. (MIDD<\/span>), Quidel Corp. (QDEL<\/span>), Hexcel Inc. (HXL<\/span>)<\/b> and Univar Solutions Inc. (UNVR<\/span>)<\/b> will join the S&P MidCap 400. S&P MidCap 400 constituents NOW Inc. (DNOW<\/span>), Cheesecake Factory Inc. (CAKE<\/span>),<\/b> and Resideo Technologies Inc. (REZI<\/span>)<\/b> will move to the S&P SmallCap 600. Dillard’s Inc. (DDS) will be removed from the S&P MidCap 400 as it is no longer representative of the mid-cap market space.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tailored Brands Inc. (TLRD<\/span>), CBL & Associates Properties Inc. (CBL<\/span>), HighPoint Resources Corp. (HPR<\/span>)<\/b> and Tetra Technologies Inc. (TTI<\/span>)<\/b> will be removed from the S&P SmallCap 600 as they are no longer representative of the small-cap market space<\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>For Hertz (HTZ<\/span>),<\/b> the NYSE announces date of review of decision to remove HTZ from list; review will be held on October 15, 2020 before committee of board of directors of exchange; Hertz gets approval to sell up to $1 billion in stock, seizing on a wave of intense, speculative interest in its shares since it declared bankruptcy late last month<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Campbell Soup (CPB<\/span>), Conagra (CAG<\/span>),<\/b> and General Mills (GIS<\/span>)<\/b> remain some of the most appealing of the packaged-food plays, according to Barron’s this weekend saying eating at home may not end even when coronavirus-related lockdowns do<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Hennes & Mauritz AB (H<\/span>&M)<\/b> said Q2 sales fell 50% on year, a smaller drop than expected, as coronavirus restrictions began to ease; sales in the quarter ended May 31 fell to 28.66 billion Swedish kronor ($3.07 billion) vs. est. SEK27.7 billion.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>24 Hour Fitness Worldwide Inc.<\/b> declared for bankruptcy Monday, citing the “disproportionate impact” of the COVID-19 pandemic. The gym chain said it expects to secure about $250 million in debtor-in-possession financing<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tesla (TSLA<\/span>), Nio (NIO<\/span>):<\/b> The number of publicly accessible charging points for electric vehicles jumped 60% in 2019 to reach 862,118, the IEA wrote in its annual Global EV Outlook<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>BP Plc (BP<\/span>)<\/b> will take an estimated $13B-$17.5B in impairments and write-downs in the second quarter after revising its long-term price assumptions.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>3M (MMM<\/span>) <\/b>said May sales are down 20% to $2.2B<\/o:p><\/p>\n

·     <\/span><\/span><\/span>KBR (KBR<\/span>)<\/b> was awarded $570.3M NASA contract to develop and execute spaceflight operations at Marshall Space Flight Center in Alabama. With this award, KBR has earned a sizeable footprint at Marshall providing highly technical, mission-focused, high-impact services.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Extraction Oil & Gas (XOG<\/span>)<\/b> announced that the company has voluntarily filed for petitions for relief under chapter 11 of the U.S. Bankruptcy Code<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Capital One (COF<\/span>)<\/b> reports May net charge-offs 4.49% vs. 4.93% last month and reports May 30-plus day performing delinquencies 3.15% vs. 3.58% last month<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Barclay’s downgrades French banks Société Generale (GLE<\/span>.FP)<\/b> and BNP Paribas (BNP<\/span>.FP)<\/b> to underweight from equal weight on consumer credit exposures saying consumer businesses are the key-driver of nearer-term impairments. It believes impairments from these books could cut BNP and SocGen next year’s consensus earnings estimates by 30% and 34% respectively<\/o:p><\/p>\n

·     <\/span><\/span><\/span>American Express (AXP<\/span>)<\/b> said the People’s Bank of China gave the credit card company final approval for a network clearing license to be run by a joint venture. The American Express joint venture will be the first foreign credit card company to launch onshore operations in China.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Progressive (PGR<\/span>)<\/b> positive mention in Barron’s this weekend saying the stock could rally about 30%, noting the insurance company has been able to grow earnings at an impressive pace in part because of its tight control over its combined ratio. <\/o:p><\/p>\n

·     <\/span><\/span><\/span>Goldman Sachs (GS<\/span>)<\/b> with a positive mention in Barron’s saying it’s an inexpensive stock and says it shouldn’t be overlooked; says a push to expand consumer banking and the bank’s relationships with corporate clients comes while the core trading business is thriving.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>U.S. hospitals are predicted to lose<\/b> more than $200 billion in revenue by June 30, according to a report by the American Hospital Association. The industry group estimates the total revenue hit from the pandemic at about $50 billion a month among health-care facilities since March as many states over the last two months ordered all non-essential surgeries postponed (shares of UHS<\/span>, CYH<\/span>, THC<\/span>, HCA<\/span><\/b> are among so of the publicly traded hospitals)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AstraZeneca (AZN<\/span>)<\/b> has reached an agreement with Europe’s Inclusive Vaccines Alliance, or IVA, spearheaded by Germany, France, Italy and the Netherlands, to supply up to 400M doses of the University of Oxford’s COVID-19 vaccine, with deliveries starting by the end of 2020<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Medtronic (MDT<\/span>)<\/b> announces a $337M investment from funds managed by Blackstone Life Sciences (and other co-investors) aimed at supporting R&D programs in its Diabetes Group.; the capital, to be disbursed over several years, will fund four undisclosed diabetes R&D programs<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Dr. Reddy’s Laboratories Ltd. (RDY<\/span>)<\/b> entered into a non-exclusive licensing agreement with Gilead Sciences Inc. (GILD<\/span>) <\/b>giving it the right to register, manufacture and sell Remdesivir, which is being developed as a potential treatment for Covid-19<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Roche (RHHBY<\/span>)<\/b> unit Genentech and U.S. commercialization partner AbbVie (ABBV<\/span>)<\/b> announce positive results from a Phase 3 clinical trial, VIALE-A, evaluating Venclexta (venetoclax) and chemo agent azacitidine in previously untreated AML patient’s ineligible for intensive chemo<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Syros Pharmaceuticals (SYRS<\/span>)<\/b> files $300M mixed securities shelf<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>DocuSign (DOCU<\/span>)<\/b> will be replacing United Airlines (UAL<\/span>)<\/b> in NASDAQ-100 Index, NASDAQ-100 Equal Weighted Index beginning June 22; DocuSign will also join Nasdaq-100 Technology Index<\/o:p><\/p>\n

·     <\/span><\/span><\/span>AT&T (T<\/span>)<\/b> is mulling the sale of its Warner Bros. gaming division for about $4B to help service its nearly $200B in debt, CNBC reported late Friday; Take-Two Interactive (TTWO<\/span>), Electronic Arts (EA<\/span>) <\/b>and Activision Blizzard (ATVI<\/span>)<\/b> have all expressed interest in buying the unit as per the report<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Nokia (NOK<\/span>)<\/b> is partnering with Broadcom (AVGO<\/span>)<\/b> to develop chips for its 5G equipment. By the end of 2020, Nokia aims to have the custom chips in more than 35% of its 5G shipments and to reach a rate of 100% by the end of 2022.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Intel (INTC<\/span>)<\/b> upgraded to Overweight from Sector Weight at KeyBanc<\/p>\n<\/div>\n

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