Early Look

Tuesday, March 3, 2020

Futures	Up/Down	%	Last
DJ Industrials	133.00	0.50%	26,601
S&P 500	10.50	0.34%	3,075
Nasdaq	51.50	0.58%	8,842

 

 

Stock futures are firmly higher, looking to add to yesterday’s impressive gains as the Dow Jones Industrial Average scored its biggest one day point gain ever and one-day percentage gain in nearly 11 years on Monday, as stocks bounced back sharply from the previous week’s selloff fueled by expectations that policy makers will move to cushion the impact of the COVID-19 outbreak on the global economy. Last week, the Dow fell 12.4%, the S&P 500 lost 11.5% and the Nasdaq shed 10.5%, representing their worst weekly skids since 2008. Last week’s decline saw all three equity indexes fall into correction territory, widely defined as a drop of at least 10% from a recent peak, as fears of the spreading coronavirus outbreak rattled investors. Expectations the Federal Reserve and other central banks will move to ease policy were credited with helping to fuel a rebound in global equities on Monday, though analysts cautioned that conditions were likely to remain volatile. In Asian markets overnight, The Nikkei Index fell -261 points to 21,082, the Shanghai Index gained about 22 points to 2,992 and the Hang Seng Index slipped -6 points to 26,284. In Europe, the German DAX is higher by 260 points (2.25%) to 12,125, while the FTSE 100is surging over 130 points (over 2%) to near the 6,800 level. Outside of the virus impact, attention turns to Super Tuesday as the Democratic elections take place for thirteen states that could help clear the path for at least one Democratic Presidential nomination.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 136.01 points, or 4.60%, to 3,090.23

·     The Dow Jones Industrial Average rose 1,293.96 points, or 5.09%, to 26,703.32

·     The Nasdaq Composite spiked 384.80 points, or 4.49%, to 8,952.17

·     The Russell 2000 Index advanced 42.06 points, or 2.85% to 1,518.49

 

Events Calendar for Today

·     7:45 AM EST      ICSC Weekly Retail Sales

·     8:55 AM EST      Johnson/Redbook Weekly Sales

·     4:30 PM EST       API Weekly Inventory Data

·     6:30 PM EST       Fed’s Evans in moderated Q&A

 

Earnings Calendar:

·     Earnings Before the Open: AFI, AZO, BNED, CHFS, IGT, KSS, MYE, SCM, TGT

·     Earnings After the Close: AMBA, AVAV, BNFT, CNR, CYTK, FOXF, HIIQ, HRZN, JWN, ROST, URBN, VEC, VEEV, VVUS, VYGR, YEXT

 

Other Key Events:

·     Monthly auto sales data for February

·     Citigroup Global Property Conference, 3/2-3/4, in Hollywood, FL

·     Credit Suisse 25th Annual Energy Summit, 3/1-3/4, in Vasil, CO

·     Cowen 40th Annual Healthcare Conference, 3/1-3/4, in Boston, MA

·     KeyBanc 15th Annual Emerging Technology Summit, 3/3-3/4, in San Francisco, CA

·     Morgan Stanley Global Energy & Power Conference, 3/2-3/4, in New York

·     Morgan Stanley Tech, Media & Telecom Conference, 3/2-3/5, in San Francisco, CA

·     Raymond James Annual Institutional Investors Conference, 3/2-3/4, in Orlando, FL

 

 

Macro	Up/Down	Last
WTI Crude	1.51	48.26
Brent	1.40	53.30
Gold	8.10	1,602.90
EUR/USD	-0.0026	1.1108
JPY/USD	-0.39	107.94
10-Year Note	-0.02	1.141%

 

 

World News

·     The Reserve Bank of Australia cut the official cash rate by 0.25% points to a record low of 0.5%

·     Tokyo’s contract to host the Olympics might allow for the Games to be delayed until later this year, but organizers are focused on ensuring that they go ahead as planned despite the coronavirus epidemic, a Japanese minister said. – Reuters

·     The death toll from coronavirus in Italy jumped to 52 from 34 the day before and the total number of confirmed cases in Europe’s worst affected country climbed past the 2,000 mark.

·     France has 191 confirmed cases of coronavirus, the head of the public health service, Jerome Salomon, said on Monday, raising the total from 130 a day earlier

 

Sector News Breakdown

Consumer

·     Target Corp. (TGT) Q4 adj EPS $1.69 on sales $23.40B vs. est. $1.66 and $23.44B; Q4 adj Ebitda $1..87B vs. est. $1.82B; sees Q1 comp sales low single digit increase after Q4 rose 1.5% vs. est. 1.4%; guides FY EPS $6.70-$7.00 vs. est. $6.94 and sees FY comp sales increase of low single digits

·     Inter Parfums (IPAR) 4Q EPS $0.26 vs. est. $0.25 on net sales $177.8Mm; says 2020 likely in-line with 2019 if the impact is limited to the first few months of the year

 

Energy, Industrials & Materials

·     Ferro (FOE) Q4 adjusted EPS 17c vs. est. 26c and reports Q4 revenue $245.9M vs. est. $365.86M

·     Intrepid Potash (IPI) Q4 adj EPS 2c (in-line) and adj Ebitda down -30% YoY to $12.4M and revs $48.44M

 

Financials

·     Visa (V) said in an 8K overnight that cross- border growth rates have deteriorated week by week since the coronavirus outbreak in China, and trends through February 28, 2020 do not yet fully reflect the impact of the coronavirus spreading outside of Asia. As such, we anticipate that this deteriorating trend has not bottomed out yet; sees Q2 revenue growth 2.5-3.5 percentage points lower than prior view

·     Genworth Financial (GNW) shares rose over 23% after it and China Oceanwide Holdings Group Co announced that they have agreed in principle with the New York State Department of Financial Services on conditions that are expected to facilitate a re-approval by the NYDFS of the proposed acquisition of control by Oceanwide of Genworth’s New York-domiciled insurance company, Genworth Life Insurance Company of New York.

·     GreenSky (GSKY) Q4 EPS 12c/$133.8M vs. est. 11c/$135.6M; Q4 Adjusted EBITDA was $35.3M, or 26% of revenue, compared to $32.6M, or 30% of revenue for Q4 of last year.

·     StoneCo (STNE) Q4 adjusted net income of R$275.0M (US$61.5M), up 76% Y/Y and adjusted net margin of 35.1%jumped 570 basis points Y/Y; Q4 net addition of active clients was 66.2K; total active clients were 495.1K, up 84% Y/Y; Q4 total revenue and income of R$782.9M, up 48% Y/Y.

 

Healthcare

·     Qiagen (QGEN) to be acquired by Thermo Fisher Scientific (TMO) for 39 euros per share in cash, which is a 23% premium to Monday’s close in a deal valued at $11.5 billion, including the assumption of $1.4 billion of debt https://on.mktw.net/3arvaJp

·     Allscripts (MDRX) 4Q adjusted EPS 17c vs. est. 18c; Q4 revs $451.5M vs. est. $458.4M; sees 2020 bookings $900 million to $1 billion after Q4 bookings $312M, -41% YoY

·     BeiGene (BGNE) Q4 EPS loss ($6.39) vs. est. loss ($4.80) and reports Q4 revenue $56.89M vs. est. $60.22M; says despite challenges to our business in China caused by the coronavirus outbreak (COVID-19), our team has continued to advance our programs and serve our patients

·     eHealth (EHTH) files to sell 1.5M shares of common stock

·     Livongo Health (LVGO) 4Q adj EPS $0.02 vs. est. loss ($0.05) on revs $50.4Mm vs. est. $49.3Mm, adj EBITDA $1.6Mm vs. est. loss $5.23Mm; guides 1Q revs $60-62Mm vs. est. $57.4Mm, sees 1Q adj EBITDA loss $4.5-5.5Mm vs. est. loss $8.78Mm; sees 2020 revs $280-290Mm vs. est. $277.6Mm, sees 2020 EBITDA loss $20-22Mm vs. est. loss $25.1Mm

·     Omeros Corporation (OMER) reports an update on clinical data from its pivotal trial of narsoplimab in the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy (HSCT-TMA), markedly exceeding the FDA-agreed threshold for the primary efficacy endpoint; Q4 EPS loss (58c) on revs $33.4M vs. est. loss (50c)/$31.57M

·     PTC Therapeutics (PTCT) Q4 EPS loss ($1.37) on revs $96.5M vs. est. $95.24M

·     Tilray (TLRY) Q4 EPS loss ($2.14) on revs $46.94M vs. est. loss (35c) and $55.38M; 4Q adjusted Ebitda loss $35.3M, +98% YoY vs. est. loss $21.8M; net loss for the year was $321.2 million, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018

·     uniQure N.V. (QURE) announced that they have signed an exclusive research collaboration and license agreement with Gen-X, with an option for uniQure to acquire Gen-X, to identify novel synthetic promoters for use in gene therapy products

 

Technology, Media & Telecom

·     Boingo Wireless (WIFI) Q4 EPS loss (12c) vs. est. loss (11c) and reports Q4 revenue $64.1M vs. est. $69.74M; Q4 adjusted EBITDA of $19.8M decreased 14.5% compared to $23.2M last year; says engaged advisors to assess opportunities after saying has multiple inquiries on potential transaction/company suspends financial guidance until further notice

·     Impinj (PI) Q4 adj EPS 3c on revenue $40.8M vs. est. 1c and $38.1M; sees Q1 adjusted EPS (11c)-2c on revs $37M-$41M vs. est. loss (9c) and $36.05M

·     Microchip (MCHP) said it sees Q4 net sales to be flat sequentially, withdraws EPS guidance due to potential impact of the coronavirus (prior guidance was for up 2% to 9%)

·     Talend SA (TLND) said it would not be able to submit a timely annual report because it needs to revise its financial statements