{"id":12880,"date":"2020-06-23T05:50:09","date_gmt":"2020-06-23T10:50:09","guid":{"rendered":"https:\/\/www.eoption.com\/2020\/06\/23\/morning-preview-june-23-2020\/"},"modified":"2020-06-23T05:50:09","modified_gmt":"2020-06-23T10:50:09","slug":"morning-preview-june-23-2020","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/morning-preview-june-23-2020\/","title":{"rendered":"Morning Preview: June 23, 2020"},"content":{"rendered":"
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Early Look<\/o:p><\/span><\/b><\/p>\n

Tuesday, June 23, 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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231.00<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.89%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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26,184<\/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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24.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.80%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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3,135<\/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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67.50<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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0.66%<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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10,191<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Stock futures are firmly higher, adding to yesterday’s gains after a whipsaw in trading overnight. Stock futures dropped sharply and quickly Monday night after White House trade adviser Peter Navarro said the trade deal with China is “over,” and he linked the breakdown in part to Washington’s anger over Beijing’s not sounding the alarm earlier about the coronavirus outbreak. The comments initially sunk stocks futures with the S&P falling as much as 1.5%. However, Navarro later clarified that his comments had referred to the “lack of trust” in the Chinese administration. President Trump later confirmed the trade deal between the U.S. and China was “fully intact,” adding he hoped Beijing would continue to live up to the terms of the agreement. So it appears stocks remain to the upside as the tech heavy Nasdaq Composite looks to make it an 8th<\/sup> straight day of gains. In Asian markets, The Nikkei Index gained 111 points to 22,550, the Shanghai Index was up a few points to 2,970 and the Hang Seng Index jumped 396 points to 24,907. In Europe, the German DAX<\/span> is up over 330 points to 12,600, while the FTSE 100 is higher by 75 points to 6,325. European markets were buoyed by strong flash PMI<\/span> data which came in well above the prior month and showed continued improvement. The flash eurozone composite PMI<\/span> rose to a 4-month high of 47.5 in June from 31.9 in May, Markit said<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>The S&P 500 Index<\/b> gained 20.12 points<\/span>, or 0.65%, to 3,117.86<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Dow Jones Industrial Average<\/b> rose 153.50 points<\/span>, or 0.59%, to 26,024.96<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Nasdaq Composite <\/b>jumped 110.35 points<\/span>,<\/span> or 1.11%, to 10,056.47<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The Russell 2000 Index<\/b> advanced 14.33 points<\/span>, or 1.01% to 1,432.91<\/o:p><\/p>\n

 <\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>7:45 AM EST      ICSC Weekly Retail Sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>8:55 AM EST      Johnson\/Redbook Weekly Sales<\/o:p><\/p>\n

·     <\/span><\/span><\/span>9:45 AM EST      Markit US Manufacturing PMI, Jun-P…est. 50.0<\/o:p><\/p>\n

·     <\/span><\/span><\/span>9:45 AM EST      Markit US Services PMI, Jun-P…est. 48.0<\/o:p><\/p>\n

·     <\/span><\/span><\/span>10:00 AM EST    New Home Sales MoM for May…est. +2.7% to 640K<\/o:p><\/p>\n

·     <\/span><\/span><\/span>10:00 AM EST    Richmond Fed Manufacturing Index for June…est. (-2)<\/o:p><\/p>\n

·     <\/span><\/span><\/span>4:30 PM EST       API Weekly 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: AVAV<\/span>, LZB<\/span><\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Goldman Sachs Business Service, Transport & Leisure Conference, 6\/22-6\/24<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Jefferies Virtual Consumer Conference, 6\/23-6\/24<\/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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0.72<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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41.45<\/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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0.73<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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43.81<\/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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5.60<\/span><\/o:p><\/span><\/b><\/p>\n<\/td>\n

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1,772.00<\/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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0.0032<\/span><\/o:p><\/span><\/p>\n<\/td>\n

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1.1293<\/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<\/o:p><\/span><\/p>\n<\/td>\n

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107.07<\/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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+0.013<\/o:p><\/span><\/p>\n<\/td>\n

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0.721%<\/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>MLB clubs voted unanimously to move ahead with the 2020 season<\/b> under the terms of their March agreement with the Players Association. It’s up to Commissioner Rob Manfred to decide how many games are to be played. The hope is for players to report to training camp by July 1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The flash European purchasing managers index (PMI<\/span>) data<\/b>, a measure in both the services and manufacturing sector, came in at 47.5 in June, up from a final reading of 31.9 in May. On Monday, flash consumer confidence data for the eurozone and wider EU also showed a further recovery in June<\/o:p><\/p>\n

·     <\/span><\/span><\/span>As of June 14, only 4.2 million homeowners were in forbearance plans, down from 4.3 million the week prior, according to data released Monday afternoon by the Mortgage Bankers Association<\/b><\/o:p><\/p>\n

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

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

·     <\/span><\/span><\/span>American Airlines (AAL<\/span>)<\/b> 74.1M share Secondary priced at $13.50<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Cheesecake Factory (CAKE<\/span>)<\/b> files to sell 11.9M shares of common stock for holders<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Grocery Outlet (GO<\/span>)<\/b> will replace Brinker International (EAT<\/span>)<\/b> in the S&P MidCap 400 and Brinker International will replace Anixter International (AXE<\/span>) in<\/b> the S&P SmallCap 600 effective prior to the opening of trading on Thursday, June 25<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Shoe Carnival (SCVL<\/span>)<\/b> said Q2 -to-date comp sales up 28.1%, with online sales surging 470%; Brick-and-mortar comp sales 4% higher; though said it expects pressure on Q2 profit margin due to higher shipping charges accompanying more e-commerce sales<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>PG&E (PCG<\/span>)<\/b> says it is offering $4B in common stock and separately $1.23B in equity units, as expected, as part of its plan to fund its emergence from Chapter 11; the offerings are expected to price later this week and close on or about July 1<\/o:p><\/p>\n

·     <\/span><\/span><\/span>W&T Offshore (WTI<\/span>)<\/b> Q1 adjusted EPS 4c on revs $124.1M vs. est. 2c\/$130.05M; produced 53,553 barrels of oil equivalent per day, or 4.9M Boe (48% liquids), in the first quarter of 2020, near the high end of W&T’s guidance range<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Oneok (OKE<\/span>)<\/b> files automatic mixed securities shelf<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Armada Hoffler Properties (AHH<\/span>)<\/b> reports June portfolio rent collections at 87% compared to 85% for May and 84% for April.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Apyx Medical (APYX<\/span>)<\/b> said it obtained regulatory approval to market and sell its Helium Plasma Technology products in five new countries: Australia, Brazil, Israel, Taiwan and Thailand.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Sanofi SA (SNY<\/span>)<\/b> said that it will further its investment in U.S.-based Translate Bio Inc. to pursue new mRNA vaccines aimed at broadly addressing infectious diseases. Translate Bio will receive $425 million in upfront payments, consisting of a $300 million cash payment and a $125 million investment in private placement common stock at $25.59 a share.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>One Medical (ONEM<\/span>)<\/b> files to sell 7M shares of common stock for holders<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Castle Biosciences (CSTL<\/span>)<\/b> files to sell 1.5M shares of common stock<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Amgen (AMGN<\/span>)<\/b> announced it is supporting the further study of AMG 634, a phosphodiesterase type 4 inhibitor; Amgen acquired AMG 634 as part of its acquisition of Otezla from Celgene in 2019<\/o:p><\/p>\n

·     <\/span><\/span><\/span>LaMaitre Vascular (LMAT<\/span>)<\/b> has acquired NJ-based Artegraft, a processor and seller of vascular grafts derived from bovine carotid arteries, for $90.0M<\/o:p><\/p>\n

·     <\/span><\/span><\/span>The first patient has been enrolled in Sanofi’s (SNY<\/span>)<\/b> Phase 3 clinical trial of partner Principia Biopharma’s (PRNB<\/span>) <\/b>SAR442168 in patients with relapsing multiple sclerosis.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>Spirit AeroSystems (SPR<\/span>)<\/b> disclosed it received a letter from Boeing (BA<\/span>)<\/b> which directed the company to further reduce its 2020 737 production plans due to the impact of COVID-19 and accumulated inventory of Spirit’s 737 products. Spirit now expects to deliver only 72 shipsets to Boeing, compared with 125 planned earlier.<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Huntsman (HUN<\/span>)<\/b> said sales trends showed improvement from April to May, expects to see this continued improvement through June; said overall sales for the quarter expected to be down about 30%-35%; reaffirmed general outlook<\/o:p><\/p>\n

·     <\/span><\/span><\/span>JB Hunt (JBHT<\/span>)<\/b> upgraded to overweight from sector weight at KeyBanc<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Grainger (GWW<\/span>)<\/b> said it agreed to sell its distribution business in China, Grainger China, to a purchaser owned by the Grainger China management team and Sinovation Ventures.<\/o:p><\/p>\n

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

·     <\/span><\/span><\/span>T-Mobile (TMUS<\/span>)<\/b> announced the start of several public securities transactions in connection with SoftBank’s monetization of a portion of its shareholding in T-Mobile: a registered public offering of 133,548,303 shares of its common stock and TMUS intends to sell up to 30,000,000 shares of its common stock to a Delaware statutory trust<\/o:p><\/p>\n

·     <\/span><\/span><\/span>Palo Alto Networks Inc (PANW<\/span>)<\/b> CFO Kathy Bonanno is stepping down to join Google’s Cloud division, the cybersecurity firm said on Monday<\/o:p><\/p>\n

·     <\/span><\/span><\/span>K2 Cyber Security has signed a distribution agreement with SYNNEX Corporation (SNX<\/span>)<\/b> to bring the K2 Security Platform to market through the extensive network of channel partners<\/p>\n<\/div>\n

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