{"id":12846,"date":"2020-06-17T05:55:34","date_gmt":"2020-06-17T10:55:34","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/17\/morning-preview-june-17-2020\/"},"modified":"2020-06-17T05:55:34","modified_gmt":"2020-06-17T10:55:34","slug":"morning-preview-june-17-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-17-2020\/","title":{"rendered":"Morning Preview: June 17, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Wednesday, June 17, 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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135.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.52%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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26,328<\/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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14.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.46%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,132<\/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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53.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.53%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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10,014<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures are looking higher, on track for its third straight day of gains as recent moves and comments by the Fed, along with reports in Europe of a potential treatment for COVID<\/span>-19 (dexamethasone) and improving economic data has been enough for major averages to recoup much of last week’s losses. In Asian markets, The Nikkei Index fell -126 points to 22,455, the Shanghai Index inched higher 4 points to 2,935 and the Hang Seng Index rose 137 points to 24,481. In Europe, the German DAX<\/span> is up a few points to 12,330, while the FTSE 100 is up around 20 points to 6,265. The recent positive catalysts have overshadowed several days of concern fueled by an increase of new infections of the coronavirus and its impact on the global economy. Fed Chairman Powell told Congress yesterday in his semi-annual testimony that the path to recovery remained uncertain, and he’ll testify for a second day today before the House Financial Services Committee. Shares of Oracle (ORCL<\/span>) dipped overnight after quarterly results disappointed while cruise lines under pressure early after Norwegian (NCLH<\/span>) said that its cruises will not return until at least October. <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> jumped 58.15 points<\/span>, or 1.90%, to 3,124.74<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 526.82 points<\/span>, or 2.04%, to 26,289.98<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>gained 169.84 points<\/span>,<\/span> or 1.75%, to 9,895.87<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 32.65 points<\/span>, or 2.30% to 1,452.26<\/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      Housing Starts MoM for May<\/o:p><\/p>\n

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

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

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

·     <\/span><\/span><\/span>Earnings Before the Open: none<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Earnings After the Close: ABM<\/span>, AINC<\/span><\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>JMP Securities Life Sciences Conference, 6\/17-6\/18<\/o:p><\/p>\n

·     <\/span><\/span><\/span>JPMorgan 2020 Energy, Power & Renewables Conference, 6\/16-6\/17<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Oppenheimer 20th Annual Consumer Conference, 6\/16-6\/17<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Raymond James Human Health Innovation Conference, 6\/16-6\/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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-0.38<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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38.00<\/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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-0.23<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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40.73<\/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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-15.90<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,720.60<\/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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-0.0023<\/o:p><\/span><\/p>\n<\/td>\n

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1.1241<\/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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0.04<\/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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-0.001<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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0.751%<\/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>DraftKings (DKNG<\/span>)<\/b> announces offering of 33M shares of Class A common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Eldorado Resorts (ERI<\/span>)<\/b> 18M share Secondary priced at $39.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>VICI Properties (VICI<\/span>)<\/b> 26M share Secondary priced at $22.15<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Chegg (CHGG<\/span>)<\/b> announces $500M securities buyback program<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Norwegian Cruise Lines Holdings Ltd. (NCLH<\/span>)<\/b> shares fell -12% after the company said that its cruises will not return until at least October. The cruise line had previously cancelled departures through July due to the COVID-19 pandemic, but announced Tuesday afternoon that all lines would be on hold through the end of September, and select destinations would not disembark until at least November (watch shares of CCL<\/b> and RCL<\/b> as well)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Southwest Airlines (LUV<\/span>)<\/b> sees June capacity down 40%-50%, operating revs down 70%-75%while raises June capacity to down -50%-40% from prior down -55%-45%<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The American Petroleum Institute (API<\/span>)<\/b> reports that crude inventories rose 3.86M barrels last week, and gasoline inventories rose 4.27M barrels, distillate inventories show a build of 919K barrels, and Cushing inventories show a draw of 3.29M barrels.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ConocoPhillips (COP<\/span>)<\/b> said it expects to resume normal production operations at Alaska’s North Slope next month after curtailing some output because of weak oil prices.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Devon Energy (DVN<\/span>)<\/b> has shut-in ~10K bbl\/day of oil production, but it still expects to end the year with output flat with 2019 levels, CEO said at the J.P. Morgan energy conference.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Tellurian (TELL<\/span>)<\/b> will delay its target date to begin construction of its proposed Driftwood liquefied natural gas export terminal in Louisiana until H1 2021, its CEO said at the JPM conference<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>H&R Block (HRB<\/span>)<\/b> reported revenue for the fourth quarter of $1.81 billion, -22% YoY (vs. est. $1.74B) while Q4 operating expenses fell -3.3% YoY to $1.14 billion and 4Q EPS from continuing operations $2.39 vs. $4.32 YoY; says have adequate liquidity to meet op cash needs thru start of 2021 tax season<\/o:p><\/p>\n

·     <\/span><\/span><\/span>LPL Financial (LPLA<\/span>)<\/b> reported total brokerage and advisory assets for May of +3.9% vs. -3.10% YoY; May brokerage, advisory assets $745.9 billion, +10% YoY<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Lenders nearly quadrupled the amount set aside for anticipated losses in Q1, according to the FDIC’s latest Quarterly Banking Profile<\/b>, which showed U.S. banking industry profits tumbling nearly 70% to $18.5B amid the coronavirus pandemic.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Amarin (AMRN<\/span>)<\/b> has settled its patent infringement dispute with Apotex<\/b> over the latter’s marketing application seeking approval to sell a generic version of Vascepa (icosapent ethyl) in the U.S. Under the terms of the settlement agreement, Apotex may not sell its generic product until August 9, 2029<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Chembio (CEMI<\/span>)<\/b> shares fall -50% after the FDA revoked the emergency use authorization of its DPP COVID-19 IgM\/IgG System, its SARS-CoV-2 antibody test, citing concerns with accuracy. Data submitted by the company and results from an independent evaluation of the test showed a higher-than-expected rate of false results that was higher than the device’s labeling.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Aveo Pharmaceuticals (AVEO<\/span>)<\/b> 8.5M share Secondary priced at $5.25<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Constellation Pharmaceuticals (CNST<\/span>)<\/b> 5.5M share Secondary priced at $35.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>ShockWave Medical (SWAV<\/span>)<\/b> 1.7M share Secondary priced at $45.75<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Fulgent Genetics, Inc. (FLGT<\/span>)<\/b> announced that it has launched an at-home testing solution for the Coronavirus Disease (COVID-19). The company has received Emergency Use Authorization (EUA) from the US Food and Drug Administration (FDA) for use in the United States<\/o:p><\/p>\n

·     <\/span><\/span><\/span>NeuroBo Pharmaceuticals (NRBO<\/span>)<\/b> joins the broad-market Russell 3000 and Microcap indexes, effective after the US market opens on June 29.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The FDA granted Fast Track designation for Ipsen’s (IPSEY<\/span>)<\/b> investigational use of liposomal irinotecan (ONIVYDE) in combination with 5-fluorouracil\/leucovorin (5-FU\/LV) and oxaliplatin (OX), together known as NALIRIFOX<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Axon (AAXN<\/span>)<\/b> 3M share Secondary priced at $92.00<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Kinross Gold (KGC<\/span>)<\/b> files $1B mixed securities shelf<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Ingersoll-Rand (IR<\/span>)<\/b> announces offering of 12.1M shares of common stock for holder<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Nordson (NDSN<\/span>)<\/b> downgraded to Sector Weight from overweight on rich valuation at KeyBanc<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Oracle (ORCL<\/span>)<\/b> Q4 adj EPS $1.20 vs. est. $1.15 on revs $10.44B, down -6.3% YoY vs. est. $10.72B; 4Q service revenue down -11% YoY to $735M and 4Q hardware revenue down -9.4% YoY to $901M; 4Q adjusted operating margin 49% vs. 47% y\/y; 4Q adjusted cloud services and license support revenue $6.85 billion, estimate $6.92 billion; sees Q1 EPS 85c-89c vs. est. 85c and sees Q1 revenue down 1% to up 1%<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Groupon (GRPN<\/span>)<\/b> Q1 adj EPS loss ($1.63) on sales $374.2M vs. est. loss ($1.94) and $381.5M; Q1 adjusted Ebitda loss $22.5M vs. profit $47.0 million YoY; Q1 marketing expense $60.1 million; sees 2Q adj. Ebitda loss $20M to $45M; said ended Q1 with $667M in cash, which included$150 million of outstanding borrowings under our revolving credit facility<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Qualcomm (QCOM<\/span>)<\/b> unveiled its next 5G chipset, the Snapdragon 690, marking the first product in its 6-series chips to get support for the next-generation networking standard. The chip will offer 20% better CPU performance and 60% faster graphics rendering compared to the Snapdragon 675<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Black Knight (BKI<\/span>)<\/b> 5.6M share Spot Secondary priced at $70.25<\/p>\n<\/div>\n

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