Hammerstone’s Early Look

By admin | 05/12/2020

Tuesday, May 12, 2020

Stock futures in the U.S. are pointing to a modestly higher open alongside a rebound in European markets amid data showing new coronavirus cases slowed and as many US states and global economic slowly reopen following the forced shutdown to slow the coronavirus pandemic. Also helping stocks more help from the Fed which announced a new lending facility, as they will begin purchasing corporate bond exchange-traded funds on Tuesday, as most of the purchases would be in exchange-traded funds with exposure to U.S. investment-grade corporate bonds. In Asian markets, The Nikkei Index slipped -24points to 20,366, the Shanghai Index dipped 3-points to 2,891 and the Hang Seng Index dropped -356 points to 24,245. In Europe, the German DAX is flat at the 10,820 level, while the FTSE 100 is up around 40 points to 5,975. Regrading trade, President Trump said he opposed renegotiating the U.S.-China phase one deal, while Beijing announced a new list of 79 American products eligible for waivers from retaliatory tariffs. A busy day ahead for economic data, while earnings begins to slow.

Market Closing Prices Yesterday

• The S&P 500 Index gained 0.52 points, or 0.02%, to 2,930.32
• The Dow Jones Industrial Average fell -109.33 points, or 0.45%, to 24.221.99
• The Nasdaq Composite jumped 71.02 points, or 0.78%, to 9,192.34
• The Russell 2000 Index declined -8.40 points, or 0.63% to 1,321.24

Economic Calendar for Today

• 6:00 AM EST       NFIB Small Business Optimism for April
• 7:45 AM EST       ICSC Weekly Retail Sales
• 8:30 AM EST       Consumer Price Index (CPI) MoM for April…est. (-0.8%)
• 8:30 AM EST       CPI Ex; Food & Energy MoM for April…est. (-0.2%)
• 8:30 AM EST       Consumer Price Index (CPI) YoY for April…est. 0.4%
• 8:30 AM EST       CPI Ex; Food & Energy YoY for April…est. 1.7%
• 8:55 AM EST       Johnson/Redbook Weekly Sales
• 2:00 PM EST        Monthly Budget Statement for April…est. (-$737B)
• 4:30 PM EST        API Weekly Inventory Data

Earnings Calendar:

• Earnings Before the Open: BTAI, CVLT, DT, DUK, FLOW, IR, MAC, MBI, NVST, VSH
• Earnings After the Close: ADPT, ALGT, AVD, EGHT, GEVO, INFN, PBPB, PLYA, RLJ, RXN, VREX

Other Key Events:

• Fed’s Bullard speaks on the economic outlook at 9:00 AM EST
• Fed’s Harker discusses the impact of COVID-19 at 10:00 AM EST
• Fed’s Mester takes part in moderated Q&A
• JPMorgan Industrial Conference, 5/11-5/13, in New York
• The American Society of Gene & Cell Therapy (ASGCT) 2020 Annual Meeting will be taking place virtually next week 5/12-5/15

World News

• The Federal Reserve’s new lending facility will begin purchasing corporate bond exchange-traded funds on Tuesday, the New York Fed announced. The Fed said most of the purchases would be in exchange-traded funds with exposure to U.S. investment-grade corporate bonds, but some of the purchases will be of ETFs whose primary exposure is to U.S. high-yield corporate bonds.
• The NFIB Small Business Optimism Index (NFIB) for April was reported at 90.9, topping the 84.8 consensus and came in above last month 96.4 in March.

Sector News Breakdown

Consumer

• Caesars (CZR) Q1 EPS loss (36c)/$1.83B vs. est. loss (18c)/$2.04B; reports non-GAAP hold adjusted EBITDA decreased 50.0% to $279M; announce plans to resume operations at some properties
• Ethan Allen (ETH) Q3 EPS 2c/$149.8M vs. est. 6c/$152.09M; noted Q3 results were negatively impacted as a result of the lower order backlog entering the quarter from our transition to a membership model combined with disruptions due to COVID-19; said for Q3 saw strong growth in orders for the first two months until the significant disruption in March; 3Q gross margin 56.1% vs. 55.3% YoY
• Grocery Outlet (GO) Q1 adjusted EPS 36c/$760.3M vs. est. 25c/$755.59M; Q1 comparable store sales increased by 17.4% compared to a 4.2% increase in the same period last year; Q1 Ebitda $57M; does not provide year guidance
• Scientific Games (SGMS) Q1 EPS loss ($1.69)/$725M vs. est. loss (11c)/$792.58M; said took significant action to improve quarterly cash flows by over $150 million, preserve liquidity of nearly $1 billion and position the Company to take advantage of opportunities to strengthen the business as the industry begins to recover
• Toyota (TM) said it expects operating profit to drop 80% ¥500B ($4.66B) for the year through March 2021 as the coronavirus deals the automaker “a bigger shock than the 2008 global financial crisis.”

Energy

• Ameren (AEE) Q1 EPS 59c/$1.44B vs. est. 71c/$1.61B; affirms FY20 earnings guidance of $3.60-$3.60 vs. est. $3.44
• Energy Transfer (ET) Q1 EPS 32c/$11.63B vs. est. 33c/$13.43B; Q1 adjusted EBITDA for the three months ended March 31, 2020 was $2.64 billion, a decrease of $100 million compared to the three months ended March 31, 2019, primarily due to crude oil, NGL and refined products inventory valuation adjustments totaling $213 million in the first quarter of 2020; buts year cap-ex by $400M to $3.6B
• Chevron (CVX) downgraded to Neutral from Buy at UBS
• CenterPoint Energy (CNP) was downgraded to neutral from buy at Goldman Sachs
• Duke Energy (DUK) Q1 adjusted EPS $1.14/$5.95B vs. est. $1.19/$6.34B; affirms FY20 adjusted EPS view $5.05-$5.45 vs. est. $5.16

Financials

• AllianceBernstein L.P. (AB) said preliminary assets under management increased to $576 billion during April 2020 from $542 billion at the end of March. The 6.3% increase was due to market appreciation, as well as firm wide net inflows
• Franklin Resources (BEN) preliminary month-end assets under management of $599.4 billion at April 30, 2020, compared to $580.3 billion at March 31, 2020. The increase in assets under management was due to strong market performance and significant improvement in net outflows.
• Equinix (EQIX)25M share Secondary priced at $665.00
• Lexington Realty (LXP) 15M share Spot Secondary priced at $9.60
• Green Dot (GDOT) Q1 EPS $1.13/$346.5M vs. est. 95c/$323.83M; Q1 adjusted EBITDA was $92.1 million, or 26.6% of non-GAAP total operating revenues, down from $119.0 million, or 36.5% of non-GAAP total operating revenues last year; withdraws year outlook; reports gross dollar volume $14.3B vs. $13.0B last year
• Simon Property (SPG) 1Q FFO/shr $2.78 vs est $2.90, says encouraged by consumer response to some re-openings, say 77 retail properties currently reopened and 12 designer, international premium outlets reopened; sales intends to maintain cash dividend, sees distributing at least 100% of REIT taxable income

Healthcare

• Genfit’s (GNFT) shares plunge after a Phase 3 clinical trial, RESOLVE-IT, evaluating its elafibranor in adults with nonalcoholic steatohepatitis (NASH) failed to achieve the primary endpoint; did not sufficiently separate from placebo as measured by the proportion of patients achieving NASH resolution
• Akebia (AKBA) 11M share Spot Secondary priced at $12.00
• AtriCure (ATRC)98M share Secondary priced at $44.00
• Protagonist Therapeutics (PTGX) 7M share Secondary priced at $14.00
• Sutro Biopharma (STRO) 11M share Spot Secondary priced at $7.75
• Durect (DRRX) said it is working with the FDA on the design of a double-blind, placebo-controlled, multi-center, proof-of-concept Phase 2 study to evaluate the safety and efficacy of DUR-928 in approximately 80 COVID-19 patients with acute liver or kidney injury.
• Endologix (ELGX) announced that it has completed enrollment in the EVAS2 Confirmatory Clinical Study to Evaluate the Nellix EndoVascular Aneurysm Sealing System
• Ensign Group (ENSG) 1Q adj EPS $0.77 vs. est. $0.60 on revs $589.6Mm vs. est. $582.2Mm; still sees FY revs $2.42-2.45B vs. est. $2.43B
• GW Pharmaceuticals (GWPH) Q1 EPS loss (2c)/$120.6M vs. est. loss (7c)/$108.36M; Q1 cash equivalents $500.9M for quarter
• MyoKardia (MYOK) files to sell $450M in common stock
• Novavax (NVAX) 1Q loss/share 58C vs. est. loss/share 69C on revs $3.4Mm vs. est. $2.42Mm; said the Coalition for Epidemic Preparedness Innovations will invest up to $384 million in the development of NVX-CoV2373, its vaccine candidate for SARS-CoV-2, the coronavirus that causes COVID-19.
• Sangamo (SGMO) Q1 EPS loss (37c)/$13.1M vs. est. loss (29c)/$22.74M; said Q1 cash, cash equivalents and marketable securities were $363.1 million as of March 31, 2020, compared to $384.3 million as of December 31, 2019.
• Tilray (TLRY) Q1 EPS loss ($1.73)/$52.1M vs. est. $50.62M; said for Q1 took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates

Industrials & Materials

• Amcor (AMCR) Q3 EPS 44c on revs $1.06B; said it now sees FY 2020 adj EPS growth in constant FX of 11-12% vs prior view 7%-10% (implies a constant currency EPS range of 64.6c-65.2c)
• Livent (LTHM) Q1 EPS 2c on revs $68.5M, down -30% YoY vs. est. 4c/$89.2M; 1Q adjusted Ebitda $9.4 million, -66% YoY; expects near-term demand to be negatively impacted by the production stoppages we have seen at OEM facilities globally
• ArcelorMittal (MT)9M share Secondary priced at $9.27
• Ingersoll-Rand (IR) Q1 adjusted EPS 25c/$1.3B vs. est. 27c/$1.24B; said it expects to deliver approximately 35% of the $250 million synergy target in 2020
• Thyssenkrupp shares fell 11% after it reported a widening and worse-than-forecast loss for its fiscal second quarter as sales from continuing operations fell 6% and orders dropped 10%. It said a fiscal third-quarter operating loss of “€1 billion cannot be ruled out.”
• Rexford Industrial (REXR)25M share Spot Secondary priced at $39.85
• YRC Worldwide (YRCW) Q1 EPS 13c/$1.15B vs. est. loss (57c)/$1.14B; on a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $34.1 million in 1Q20, compared to $30.1 million in the prior year comparable quarter (up 13% YoY)

Technology, Media & Telecom

• Cornerstone OnDemand (CSOD) Q1 adjusted EPS 23c/$150.1M vs. est. 24c/$147.66M; now expect to realize $50 million in run-rate synergies as we exit 2020, as compared to our prior guidance of $35 million over twenty-four months
• DataDog (DDOG) 1Q adj EPS $0.06 vs. est. ($0.02) on revs $131.2Mm vs. est. $117.6Mm; sees 2Q EPS $0.00-0.01 vs. est. ($0.02), sees 2Q revs $134-136Mm vs. est. $125.5Mm; guides FY adj EPS $0.02-0.06 vs. est. ($0.06), sees FY revs $555-565Mm
• II-VI (IIVI) shares rise 20%; 3Q adj EPS $0.47 vs. est. $0.13 on revs $627Mm vs. est. $571Mm; guides 4Q EPS $0.50-0.70 vs. est. $0.38, sees 4Q revs $650-700Mm vs. est. $627Mm
• j2 Global (JCOM) Q1 adjusted EPS $1.40/$332.4M vs. est. $1.39/$331.98M; is withdrawing its previously issued financial guidance for fiscal 2020; anticipate Q2 2020 revenues to be slightly down versus Q2 2019 and Adjusted EBITDA and Adjusted non-GAAP EPS to be down single digit percentages versus Q2 2019
• Mimecast (MIME) 4Q adj EPS $0.15 vs. est. $0.12 on revs $114.2Mm vs. est. $112.4Mm; sees 1Q revs $112.8-113.8Mm vs. est. $115.5Mm, sees 1Q adj EBITDA $23.5-24.5Mm; guides 2021 adj EBITDA $94-96Mm
• Q2 Holdings (QTWO) files to sell $275M in common stock

Want a free trial to The Hammerstone Report 4x Daily ? Sign-up for a trial today at https://www.hammerstonemarkets.com/

Please be sure to check out The Hammerstone Pro Feed; News and Analysis for the Informed Trader at https://www.hammerstonemarkets.com/pro-trader/#get-started

***DISCLAIMER/LIMITATION OF LIABILITY: Catena Media Financials US, Inc, (D.B.A. Hammerstone Markets) (the “Report”) provides information and data and does NOT provide any individual investment advice or money management assistance and does NOT attempt to influence the sale or purchase of securities. The Report is intended for informational purposes only and does not claim to be actionable for investment decisions. The information contained in the Report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. The Report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. The Report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation, and particular needs of any individual subscriber, person, or entity. This e-mail and any attachment(s) are believed to be free from virus. However it is the responsibility of the recipient to ensure that they are virus free. We do not accept any liability for any loss or damage arising in any way from the receipt, opening or use of this e-mail and any attachment(s). Nothing on the Hammerstone Platform is a recommendation that you purchase, sell or hold any security or other investment, or that you pursue any investment style or strategy.

Tags: breaking news, Business, equities, equity trading, finance, finance and economy, financial news, invest, investments, market strategy, markets, News, NYSE, stock market, Stock news, Stocks, traders, trading, trial for free, Wall Street