The PBR1000 for August: Proceed with Confidence!
The Coronavirus Pandemic continues to present challenges to the US and the world as political, business, and health leaders try to figure out the best ways to open up their economies as safely as possible.
The August 2020 breaking news items of interest for The PBR1000 follow with the most current date first.
***Monday, August 31
The PBRMarketTools US Stock Exchanges Recap for August 2020 ending 08/31/20:
DJIA ends August 2020 at 28,430.05, -0.78% from last Friday, +7.57% MTD, +10.14% QTD, -0.38% YTD, -3.79% from record 29,551.42 set 02/12/20.
NASDAQ ends August 2020 at record 11,775.46, +0.68% from last Friday, +9.59% MTD, +17.07% QTD, +31.24% YTD, +0.00% from record 11,775.46 set 08/31/20.
SPX ends August 2020 at 3,500.31, -0.22% from last Friday, +7.01% MTD, +12.90% QTD, +12.90% YTD, -0.22% from record 3,508.01 set 08/28/20.
The August 2020 News Summary: It was another month where the Coronavirus Pandemic continue to lead or affect the news, but there were some challengers late in the month. The Coronavirus Pandemic tallies as of today at 01:28PM Eastern US by the John Hopkins University CSSE unit is now 25,325,617 confirmed cases globally with 848,030 deaths, an increase of 172,448 from last month. For the US it’s 6,020,186 confirmed cases and 183,399 deaths, an increase of 30,459 from last month. During the month there were advances in potential vaccines and test kits. Organizations of all types grappled with trying to open up, from commercial businesses to schools and universities and professional sports teams with varying success. Technology and technology infrastructure showed they have some bright spots but still have a ways to go to be reliable. People seemed mostly accepting that masking is an acceptable and polite strategy when out in the public. In international trade news the US and China appear to be getting back together to discuss some issues, even with the threatened shutdown of the popular China based TikTok platform in the US, which apparently some US high tech companies are possibly interested in acquiring. Japan’s Prime Minister Abe surprised the international community when he announced he is stepping down for health reasons. A big political and trade announcement was that the United Arab Emirates and Israel have agreed to establish diplomatic relations, a first between an Islamic country and the Jewish state. US corporate earnings were mixed during August, with the transportation sector airlines and cruises taking some hits while retailers did better than expected. US economic news continued to show the effects of the downturn. Indices that are more recent, however, showed some robust growth, especially those related to housing. Jobs are coming back, but the pace has apparently slowed. Surveys of consumers and businesses generally indicated short term concerns but cautious long term optimism. The Federal Reserve revised the way it makes decisions based on Gross Domestic Product such that the short term interest rates will probably remain very low over the next few years. Sadly, highly publicized shootings of black men by police created a lot of civil unrest and some destructive violence across some major cities of the US over the past month. The 2020 US Presidential Race took the next step as both the Democrats and Republicans held their conventions, mostly in an online format. Debates are next, 3 presidential, 1 vice presidential, starting September 29th. For the stock markets it was the best August in many years. The Stock Market Bull overwhelmingly won the month 3-0 and now has a string of 5 months in a row. The Stock Market Bear made an occasional trip onto the pasture but was unable to establish any kind of momentum. The biggest stock news included the 4:1 Apple and 5:1 Tesla stock splits on the last day of August, Apple exceeding $2 trillion in market capitalization, the NASDAQ and S&P500 hitting records, and the DJIA recovering to around even YTD. This sets the stage for the last month of the 3rd quarter, and it’s anyone’s guess about what will happen. Enjoy the ride!
The 8th Month of 2020 tally YTD is:
The Stock Market Bull: 5 months
The Stock Market Bear: 2 months
Mixed Results: 1 month
Amazon(PBR2 $AMZN) gets US Federal Aviation Authority approval to deliver packages by drones, 3rd company approved, UPS(PBR43 $UPS) and an Alphabet(PBR11 $GOOG) Google unit received approvals in 2019. MarketWatch PR link.
Apple(PBR4 $AAPL) 4:1 stock split is effective at start of trading today.
United Airlines(PBR74 $UAL) is permanently getting rid of change fees on all standard Economy and Premium cabin tickets for travel within the US, effective immediately; starting on 01/01/21, any United customer can fly standby for free on a flight departing the day of their travel regardless of the type of ticket or class of service. PR link.
Tesla(PBR118 $TSLA) 5:1 stock split is in effect at start of trading today.
Carnival Corp(PBR153 $CCL) reschedules several of its Seabourn ultra-luxury cruises into 2021. PR link.
PayPal(PBR176 $PYPL) announces “Pay in 4,” a short-term installment offering for customers in the US, can help merchants drive conversion, revenue and customer loyalty without taking on additional risk or paying any additional fees, while enabling consumers to make a purchase and pay over four, interest-free installments, for purchases between $30 and $600 paid over a six-week period. PR link.
Mylan(PBR271) and Biocon Logistics India launch Semglee™ (insulin glargine injection) in vial and pre-filled pen presentations, approved to help control high blood sugar in adult and pediatric patients with type 1 diabetes and adults with type 2 diabetes, listed at a 65% discounted list price, the lowest available for a long-acting insulin glargine on the market. PR link.
Bausch Health(PBR353 $BHC) to reduce its debt by $100 million using cash generated from operations. PR link.
Genworth Financial(PBR374) has determined that the sale to China Oceanwide for $5.43/share, $2.7 billion cash close by 09/30/20 is on track, China Oceanwide has demonstrated it should be able to get the financing it needs. PR link.
AMC Entertainment(PBR502 $AMC) to sell its 9 theaters in Latvia, Lithuania and Estonia to UP Invest, owner of a Baltics cinema group, for $77 million. PR link.
KKR(PBR610 $KKR) to sell its enterprise software vendor delivering cloud-enabled services to more than 20,000 customers globally Epicor Software unit to Clayton, Dubilier & Rice for $4.7 billion. PR link.
The US Dept of the Treasury says the 08/27/20 US National Debt-Public is at $20.728 trillion, Intragovernmental $5.909 trillion, Total Debt $26.637, 07/30/20 was at $26.525 trillion, 06/30/20 $26.477 trillion, 08/31/19 $22.467 trillion. US Treasury PR link.
The US Federal Reserve Bank of Chicago says the Preliminary July 2020 US 7th District Midwest Economic Index is at -3.60, June 2020 was at -9.45. “Index suggests Midwest growth increased, but remained well below trend through July.” ChiFed PR link.
The MNI August 2020 Chicago Business Barometer(>50 Gaining) is at 51.2, July 2020 was at 51.9, June 2020 36.6, August 2019 50.4. “This was the second straight reading above the 50-mark after having sat below it for a full year, as firms stated that business activity picked up further in August.” MNI PR link.
The American Automobile Assn says the Average Price Per Gallon of Gas on 08/31/20 is at $2.233, 07/31/20 was at $2.189, 06/30/20 $2.178, 08/30/19 $2.580. AAA PR link.
***Friday, August 28
The PBRMarketTools US Stock Exchanges Recap for Week 35 ending 08/28/20:
DJIA ends Week 35 at 28,653.87, +2.59% from last Friday, +8.42% MTD, +11.01% QTD, +0.40% YTD, -3.04% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 35 at record 11,695.63, +3.39% from last Friday, +8.84% MTD, +16.27% QTD, +30.35% YTD, +0.00% from record 11,695.63 set 08/28/20.
SPX ends Week 35 at record 3,508.01, +3.26% from last Friday, +7.24% MTD, +13.15% QTD, +8.58% YTD, +0.00% from record 3,508.01 set 08/28/20.
The Week 35 News Summary: There was a variety of news items that took stage during the week, most of them influenced by the continuing Coronavirus Pandemic. For example, Abbott Labs got US FDA Emergency Use Authorization for its nasal swab test that is easy to administer, takes only 15 minutes to produce a reliable result and costs $5. The US government immediately placed an order of $750 million for 150 million of the tests. There was not much news on vaccines, other than some are in advanced phases of testing and there is general belief that a vaccine should be available by the end of this year or early 2021. States and communities continue to start school years with a mix of caution because of the virus and technology infrastructure issues. The Coronavirus Pandemic tallies as of today at 01:28PM Eastern US by the John Hopkins University CSSE unit is now 24,565,091 confirmed cases globally with 833,508 deaths, an increase of 37,413 from last week. For the US it’s 5,902,374 confirmed cases and 181,435 deaths, an increase of 6,231 from last week. On the international trade front the US and China appear to be back at the table again. Japan’s Prime Minister Abe is stepping down for health reasons, which could cause some concerns. The big news in economics is the Federal Reserve modifying its benchmark for controlling interest rates by deciding that an average of a 2% inflation rate will be the standard, not that a 2% inflation rate is achieved. This pretty much secures that interest rates will be low for several years to come. The US advance trade deficit indicates a bigger gap for goods in recent months. A joint venture of Walmart and Microsoft appear to have serious interest in acquiring the US rights for China’s TikTok app as US President Trump continues to threaten to shut it down by September 15th. Corporate earnings continue to be mixed, with many sectors indicating they are recovering quite nicely. However, the airlines and cruise sectors are struggling, with several big hitters saying they will have significant layoffs unless there is another government Payroll Protection Program, which could not happen until September at the earliest because of the traditional August Congressional recess. Which brings us to the political arena. After last weeks’ Democrat Convention it was the Republicans turn this week. As expected, speaker after speaker gave glowing testimonies on how President Trump, despite severe headwinds caused by the Democrats, has kept all his campaign promises, made the US great again, made it prosperous, has responded to the China caused Coronavirus Pandemic better than anybody could have, is the most wonderful and compassionate man to be in the White House in history. On the other hand, Joe Biden is a 47 year career do nothing politician who has a feel good story, appears to be a nice guy who has used his office to fill the pockets of family and friends behind the scenes, and can be easily manipulated by the evil socialist left of the Democrat Party who wants to enslave US citizens from birth to grave through their subversive high tax we-know-what’s-best-for-you policies. The battle lines are drawn, enjoy the excessive TV and media ads that will take over your life until November 3rd. Both conventions featured fireworks. Expect a different more intense style of fireworks as the debates take center stage starting September 29th. On a sad note, there was another controversial shooting in the back of a black man by police in Kenosha, Wisconsin, that once again has fomented anger and caused rioting in major cities across the US. Mother nature doesn’t want to be left out and is making news as well. Hundreds of wildfires are being battled in California. Record strength Hurricane Laura smashed into Louisiana causing significant damage and continues to do so as it crosses the South. To make matters even more interesting, there is a very small probability, around 0.5%, that an asteroid discovered in 2018 will strike the earth the day before the US election. Once again, the US stock exchanges could care less about all that is happening. The Stock Market Bull convincingly took Week 35 3-0, taking 13 out of 15 daily sessions across the 3 major US stock exchanges, leaving The Stock Market Bear winless the last 5 weeks in a row. Week 35 ended with records by the S&P500 and NASDAQ, and with the DJIA finally being on the plus side year-to-date and within reach of a new record as well. Take a breath and enjoy the last weekend of a busy and strange August!
The Week 35 of 2020 tally YTD is:
The Stock Market Bull: 18 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 4 weeks
Apple(PBR4 $AAPL) pulls Epic Games’ App Store developer account, removing all of its games beyond ‘Fortnite.’ MarketWatch PR link.
Coca-Cola(PBR83 $KO) to establish new operating units and global beverage category leads, supported by new platform services organization, announces voluntary separation program for 4,000 in US, Canada & Puerto Rico. PR link.
Gilead Sciences(PBR133 $GILD) gets US FDA expanded Emergency Use Authorization for use of the investigational antiviral Veklury® (remdesivir) to treat all hospitalized patients with COVID-19. PR link.
Carnival Corp(PBR152 $CCL) cancels its Germany based AIDA cruises for September, will resume cruise operations with fall and winter voyages with first to start 11/06/19, 7 day voyage to the Canary Islands. PR link.
Stryker Corp(PBR211 $SYK) has extended its $30.75/share cash tender offer, with an equity value of around $4.0 billion, for all outstanding ordinary shares of Wright Medical Group N.V. (NASDAQ: WMGI) to 09/30/20. PR link.
Asbury Automotive(PBR411 $ABG) completes $1 billion cash acquisition, excluding vehicle inventory, of certain assets of Park Place Dealerships, includes 12 new vehicle franchises, all of which are located in the attractive Dallas/Fort Worth market: 3 Mercedes-Benz, 3 Sprinter, 2 Lexus, 1 Jaguar, 1 Land Rover, 1 Porsche, and 1 Volvo, also includes the Park Place auction and two collision centers, to add $1.7 billion in annual revenues. PR link.
Huntsman(PBR429 $HUN) to sell approximately 42.5 million of the shares it holds in Venator Materials PLC for approximately $100 million cash, includes a 30-month option for the sale of the remaining approximate 9.5 million shares it holds at $2.15/share. PR link.
Herbalife(PBR542 $HLF) agrees to pay the US Securities and Exchange Commission and US Dept of Justice $123 million for violating the books and records and internal controls provisions of the Foreign Corrupt Practices Act for its operations in China. PR link.
The US Dept of Commerce/BEA says the Preliminary July 2020 US Personal Income Annual Rate is at $20.043 trillion, June 2020 was at $19.972 trillion, May 2020 $20.177, July 2019 $18.613 trillion. More details like Personal Savings is at the link. USDOC PR link.
The U of Michigan Final August 2020 Consumer Survey Index is at 74.1, July 2020 was at 72.5, June 2020 78.1, August 2019 89.8. “Although strong gains in consumer spending from the 2nd quarter lows can be anticipated, those gains will significantly slow by year-end without some additional fiscal spending programs to diminish the hardships faced by unemployed workers, small businesses, as well as support for state and local governments.” UMichigan PR link.
***Thursday, August 27
Walmart(PBR1) issues statement that a partnership with Microsoft(PBR20) to buy the US version of China based TikTok could be beneficial to reach and serve omnichannel customers as well as grow its third-party marketplace and advertising businesses. $WMT PR link.
Amazon(PBR2) introduces Amazon Halo and Amazon Halo Band, uses artificial intelligence and machine learning to offer customers a new way to discover, adopt, and maintain personalized wellness habits, Amazon Halo with the Amazon Halo Band and 6 months of Halo membership available in US for a special price of $64.99. $AMZN PR link.
United Airlines(PBR74 $UAL) says up to 2,850 pilots will be cut this fall unless it gets more federal aid. MarketWatch PR link.
Dollar General(PBR105) resumed its share repurchase program in 2Q20, repurchased 3.2 million shares for $602 million. $DG PR link.
Dollar Tree(PBR125) in 2Q20 report says it continues to expect the completion of 500 new store openings (consisting of 325 Dollar Tree and 175 Family Dollar) and 750 Family Dollar 2H20 store renovations in fiscal 2020. $DLTR PR link.
Emerson Electric(PBR170) to acquire Minneapolis, MN based, 1,000 global employees operations technology software provider Open Systems Intl for $1.6 billion cash, will aid in digitization of the electric power grid. $EMR PR link.
SunPower(PBR919) completes separation into two independent complementary, strategically-aligned and publicly-traded companies – SunPower, who is now repositioned as a US Downstream Pure-Play Solar Company, and Singapore based solar panels producer Maxeon Solar Technologies(NASDAQ: MAXN). $SPWR PR link.
WW(PBR971) has collaborated with Amazon(PBR2) for the launch of Amazon Halo, a health and wellness membership and wearable device that uses technology to provide personal wellness insights. $WW PR link.
GoPro(PBR989) launches new live streaming service for its 400,000 GoPro Plus Subscribers. $GPRO PR link.
The US Federal Open Market Committee unanimously approves updates to its Statement on Longer-Run Goals and Monetary Policy Strategy, will be informed by its “assessments of the shortfalls of employment from its maximum level.” The original document referred to “deviations from its maximum level.” It also adjusted its strategy for achieving its longer-run inflation goal of 2 percent by noting that it “seeks to achieve inflation that averages 2 percent over time.” See document for additional information. FOMC PR link.
The US Federal Housing Finance Agency announces that FannieMae and FreddieMac will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions from 08/31/20 until at least 12/31/20. FHFA PR link.
The US Dept of Commerce/BEA says the 2nd Revision 2Q20 Real Gross Domestic Product Annual Rate is a Revised -31.7% from -32.9%, 1Q20 was at -5.0%, 4Q19 +2.1%, 2Q19 +2.0%. USDOC PR link.
The US Dept of Labor says the US Initial Unemployment Insurance Claims for the Week Ending 08/22/20 is at 1,006,000, for 07/25/20 it was at 1,434,000, 06/20/20 1,480,000, 08/24/20 215,000; Total Insured Unemployment on 08/15/20 is at 14,535,000, on 07/18/20 it was at 17,018,000, 06/13/20 19,522,000, 08/17/19 1,699,000. USDOL PR link.
FreddieMac says the US Average 30 Year Fixed Home Mortgage Rate for the Week Ending 08/27/20 is at 2.91% with 0.8 points/fees, 07/30/20 was at 2.99%, 06/25/20 3.13%, 08/29/19 3.58%. FreddieMac PR link.
***Wednesday, August 26
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Abbott Labs(PBR99) gets US FDA Emergency Use Authorization for its BinaxNOW™ COVID-19 Ag Card rapid test for detection of COVID-19 infection, about the size of a credit card, no equipment needed, to be administered by a healthcare provider and at qualified point-of-care sites, results in 15 minutes, will sell for $5, ramping to 50 million tests a month at the beginning of October. $ABT PR link.
Carnival Corp(PBR152) extends pause for all departures from Australia through 12/12/20. $CCL PR link.
BorgWarner(PBR304 $BWA) charged by US Securities and Exchange Commission for failing to report over $700 million in liabilities associated with future asbestos claims from 2012 to 2016. US SEC PR link.
Dycom(PBR688) authorizes new $100 million share repurchase program, expires in 18 months. $DY PR link.
Meredith Corp(PBR714) launches online Daily Paws, a new brand designed to inspire, entertain, empower and educate America’s growing number of pet parents at every stage of their journey, reaches 70% of all pet owners, including 80 million dog owners and more than 40 million cat owners in the US. $MDP PR link.
Rollins(PBR895) CEO Gary Rollins appointed to also be Chairman. $ROL PR link.
The US Energy Information Administration says the US Crude Oil Stockpile on 08/21/20 is at 507.8 million barrels of oil, 07/24/20 was at 526.0, 06/19/20 540.7, 08/23/19 427.8. USEIA PR link.
***Tuesday, August 25
The PBRMarketTools profile for global aerospace and defense technology innovator L3Harris Technologies(NYSE: $LHX) is updated, ranked 428 by revenues on The PBR1000. More on the LHX Spotlight page.
Facebook(PBR46 $FB) agrees to pay France $125 million to settle dispute over 10 years of back taxes. MarketWatch PR link.
Cisco(PBR62) to acquire privately held Campbell, CA based AI noise removal and speech enhancement technology provider BabbleLabs, will be incorporated into Cisco’s Webex video meeting applications, to close by 10/31/20, terms not disclosed. $CSCO PR link.
American Airlines(PBR68) in letter to employees says the US Payroll Support Program(PSP) expires after 09/30/20, says since start of coronavirus pandemic 12,500 employees have left the company or retired, 11,000 have offered to be on leave of absence starting 10/01/20, and 19,000 will have to be involuntarily furloughed or separated effective 10/01/20 unless PSP is extended. $AAL PR link.
Carnival Corp(PBR152) extends pause on its Cunard line voyages from November to starting in March 2021. $CCL PR link.
Carnival Corp(PBR152)‘s Italian Costa cruises will carry out COVID-19 swab tests to all guests before boarding. $CCL PR link.
Cognizant(PBR189) to acquire Tin Roof Software, a privately-held custom software and digital product development services company headquartered in Atlanta, GA, is a member of the Inc Magazine 5000, terms not disclosed. $CTSH PR link.
Ally Financial(PBR260)’s Ally Lending unit enters partnership with Vyze, Mastercard(PBR187)‘s leading alternative financing platform for retailers. $ALLY PR link.
Navistar(PBR274) has delivered its 5,000th International® LT® Series on-highway tractor to JB Hunt(PBR335), just three-and-a-half years after purchasing its first LT. $NAV PR link.
Bed Bath & Beyond(PBR276) has implemented a significant workforce reduction of approximately 2,800 roles from across its corporate headquarters and retail banner stores, effective immediately, will fund a number of growth initiatives to enhance the omni-always shopping experience in store and online. $BBBY PR link.
Michaels Cos(PBR532) launches MichaelsPro™, a new program focused on serving small businesses and ‘Makerpreneurs’ across the country, offers value prices for bulk buyers. $MIK PR link.
Tiffany(PBR589) extends outside date of $135/share, $16.2 billion acquisition by LVMH Moet Hennessey-Louis Vuitton to 11/24/20. $TIF PR link.
Fitbit(PBR969) announces Fitbit Sense health smartwatch, includes world’s first electrodermal activity (EDA) sensor on a smartwatch to help manage stress, along with advanced heart rate tracking technology, new ECG app,2 and an on-wrist skin temperature sensor, also launches Versa 3, adding GPS and a speaker; brings enhanced design and Active Zone Minutes (AZM) to Inspire 2. $FIT PR link.
The US Dept of Commerce/HUD says the Preliminary July 2020 US New Family Homes Sold Annual Rate is at 901,000, June 2020 was at 791,000, May 2020 687,000, July 2019 661,000; Preliminary July 2020 US Median New Home Price is at $330,600, June 2020 was at $337,000, May 2020 $312,900, July 2019 $308,300. USDOC PR link.
The Conference Board says the Preliminary August 2020 Consumer Confidence Index(1985=100) is at 84.8, July 2020 was at 91.7, June 2020 98.3, August 2019 134.2. “Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.” TCB PR link.
The S&P CoreLogic Case-Shiller June 2020 US National Home Price Index(Jan2000=100) is at 219.82, May 2020 was at 218.60, April 2020 217.32, June 2019 210.78. Case-Shiller PR link.
The Federal Reserve Bank of Philadelphia says the August 2020 US 3rd District Non-Manufacturing Current General Activity Index is at +1.6, July 2020 was at +0.7, June 2020 -3.6, August 2019 +8.5. “The respondents expect overall improvement in conditions over the next six months, as both future activity indexes remained positive.” PhillyFed PR link.
The US Federal Reserve Bank of Richmond says the August 2020 US 5th District Manufacturing Index(Annualized) is at +18%, July 2020 was at +10%, June 2020 +0%, August 2019 +1%. “Manufacturers were optimistic that conditions would continue to improve.” RichmondFed PR link.
The US Federal Reserve Bank of Richmond says the August 2020 US 5th District Service Sector Revenue Index(Annualized) is at +2%, July 2020 was at -14%, June 2020 -27%, August 2019 +6%. “Service sector firms reported a decrease in capital spending and a slight softening of business conditions in August. However, they expected to see improving conditions in the coming months.” RichmondFed PR link.
The Federal Housing Finance Agency directs FreddieMac and FannieMae to delay the implementation date of their Adverse Market Refinance Fee from 09/01/20 to 12/01/20, will also exempt refinance loans with loan balances below $125,000, nearly half of which are comprised of lower income borrowers at or below 80% of area median income. Affordable refinance products, Home Ready and Home Possible, are also exempt. FHFA PR link.
***Monday, August 24
Blackstone(PBR403) to acquire Japan based Takeda Consumer Healthcare Company, a subsidiary of Takeda Pharmaceutical, terms not disclosed. $BX PR link.
Palo Alto Networks(PBR764) to acquire The Crypsis Group, a leading incident response, risk management and digital forensics consulting firm, for $265 million cash. $PANW PR link.
Pyxus(PBR929) completes financial restructuring and emerges from Chapter 11 with its debt reduced by more than $400 million and maturities extended. $PYXSQ PR link.
The US Federal Reserve Bank of Chicago says the Preliminary July 2020 US National Activity Index is at +1.18, June 2020 was at +5.33, May 2020 +4.24, July 2019 -0.24. ChiFed PR link.
The US Food and Drug Administration issues Emergency Use Authorization for convalescent plasma as potential promising COVID–19 treatment in hospitalized patients, says the known and potential benefits of the product outweigh the known and potential risks. USFDA PR link.
The S&P Dow Jones Indices announces changes in the Dow Jones Industrial Average(DJIA) components, Salesforce(PBR186) to replace ExxonMobil(PBR3), Amgen(PBR128) to replace Pfizer(PBR63), Honeywell(PBR85) to replace Raytheon Technologies(PBR39) on 08/31/20. S&P Dow Jones Indices PR link.
***Friday, August 21
The PBRMarketTools US Stock Exchanges Recap for Week 34 ending 08/21/20:
DJIA ends Week 34 at 27,930.33, -0.00% from last Friday, +5.68% MTD, +8.20% QTD, -2.13% YTD, -5.49% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 34 at record 11,311.80, +2.65% from last Friday, +5.27% MTD, +12.46% QTD, +26.07% YTD, +0.00% from record 11,311.80 set 08/21/20.
SPX ends Week 34 at record 3,397.16, +0.72% from last Friday, +3.85% MTD, +9.58% QTD, +5.15% YTD, +0.00% from record 3,397.16 set 08/21/20.
The Week 34 News Summary: Counts continue to rise during the Coronavirus Pandemic, but there were some positive signs for vaccines to become available by the end of 2020 and start of 2021 as some vaccine candidates go into the next set of phase studies, some of which could be completed by the end of October. Vaccine manufacturing facilities are getting ramped up as the worldwide demand will be in the billions of doses. In the meantime people are still being encouraged, in some cases by law, to wear masks. Schools are opening up to mixed reviews as most are starting the school year using remote learning technologies. In some cases it appears to be going smoothly but there are also many glitches as bandwidth demand is overwhelming some systems. As could easily be predicted, in general it seems that teachers, support staff and systems, students, and parents are enduring some stressful times as they try to acclimate to a much different than normal situation for the start of a new school year. The Coronavirus Pandemic tallies as of today at 02:28PM Eastern US by the John Hopkins University CSSE unit is now 22,803,344 confirmed cases globally with 796,095 deaths. For the US it’s 5,615,998 confirmed cases and 175,204 deaths. On the international trade front there are some rumors that the US and China will soon begin talks again on at least some trade issues while US President Trump continues to threaten Chinese companies with delistings on the US stock exchanges and threatening to shut down popular social media sites that are Chinese based. US corporate earnings reports continue to be a mixed bag with tech stocks doing well, but other sectors being mixed. US economic news was good for construction and existing home sales, but weekly initial jobless claims went back over 1,000,000 and the Federal Open Market Committee minutes from its July meeting showcased concerns about an anticipated slowing recovery. A big news item for the week was the Democrat National Convention run via livestreaming. It just seemed unnatural at best, but they muddled through. The theme was pretty consistent by all keynote speakers that the country is a mess, President Trump is an incompetent, nasty, corrupt and horrible person and must be removed. As would be expected, Joe Biden and Kamala Harris are smart, brilliant, dedicated family and responsible passionate people who are morally compassed and the right ones to lead us to make things just wonderful again. It will be interesting to see how the Republican National Convention responds and what happens during the upcoming debates. We predict fireworks. The US stock markets could have cared less about any of this. Apple hit a $2 trillion market value, Tesla went over $2,000/share, the NASDAQ and S&P500 hit record highs to end Week 34. However, The Stock Market Bear seemed focused on the DJIA which lost ground the first 3 days of the week. The Stock Market Bull tried to overcome that, had a big Friday, but ended up $0.70 short of being ahead of last week’s close. Week 34 ends with a mixed result, with The Stock Market Bull having a 2-1 edge. The summer is still providing a lot of heat and the probability of volatility remains high. Stay cool, be safe, invest wisely, use The PBR25!
The Week 34 of 2020 tally YTD is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 4 weeks
***Thursday, August 20
IBM(PBR38)‘s says one of its newest 27-qubit quantum computer achieves a Quantum Volume 64, has made 28 quantum computers available over past 4 years with 8 systems at Quantum Volume 32, has 115 clients. $IBM PR link.
Pfizer(PBR63) and and BioNTech SE (Nasdaq: BNTX) share additional positive Phase 1 safety and immunogenicity data from their ongoing US study of the BNT162 mRNA-based vaccine program against SARS-CoV-2, which has advanced into Phase 2/3 evaluation. $PFE PR link.
American Airlines(PBR68) to suspend service to 15 markets effective 10/07/20 as CARES Act service commitment expires. $AAL PR link.
Estee Lauder(PBR212) in 4Q20 report estimates a net reduction of approximately 1,500 to 2,000 positions globally, primarily point of sale employees and some staff, about 3% of all employees, and closure of between 10-15% of its freestanding stores globally. $EL PR link.
Newmont Goldcorp(PBR317) announces Mexico’s Peñasquito and Cedros community agreement has been ratified, Peñasquito is a world-class asset with over 8 million ounces of gold reserves and approximately 26 million ounces in gold equivalent ounce reserves, may allow the Company to extend value delivery for decades to come. $NEM PR link.
Xerox(PBR338) gets additional stake from Carl Icahn and Icahn Enterprises(PBR319), purchases nearly 730,000 shares, now has over 27 million shares, holds 10%+ stake. $XRX PR link.
Clorox(PBR457) announces that all Clorox and Clorox Scentiva branded Disinfecting Wipes and Disinfecting Wet Mopping Cloths received approval from the US Environmental Protection Agency (EPA) for kill claims against SARS-Cov-2, the novel coronavirus that causes COVID-19, on hard non-porous surfaces. $CLX PR link.
YUM!(PBR490)’s Taco Bell unit is introducing its new restaurant concept, “Taco Bell Go Mobile,” will start opening in 1Q21, smaller restaurant size, dual drive-thru lanes, integration with Taco Bell mobile app for faster service. $YUM PR link.
Tempur Sealy(PBR728) to open its 30th North American manufacturing facility in 1Q21, expected to open on the West Coast and result in three new manufacturing facilities opening within a six-month period. $TPX PR link.
The US Federal Reserve Bank of Philadelphia says the August 2020 US 3rd District Manufacturing General Activity Indicator is at +17.2, July 2020 was at +24.1, June 2020 +27.5, August 2019 +13.1. “Responses … suggest continued recovery for the region’s manufacturing sector… The survey’s future indexes suggest that respondents continue to expect growth in manufacturing activity over the next six months.” PhillyFed PR link.
The Conference Board says the Preliminary July 2020 US Leading Economic Index(2016=100) is at 104.4, June 2020 was at 103.0, May 2020 100.0, July 2019 112.2. “Despite the recent gains in the LEI, which remain fairly broad-based, the initial post-pandemic recovery appears to be losing steam. The LEI suggests that the pace of economic growth will weaken substantially during the final months of 2020.” TCB PR link.
Blackstone(PBR403)‘s investment strategest Byron Wien shares economic insights from his annual summer lunch series, which was held virtually this year. $BX PR link.
***Wednesday, August 19
The PBRMarketTools profile for conventions, casino and resort services provider Las Vegas Sands(NYSE: $LVS) has been updated, ranked 229 by revenues on The PBR1000. More on the LVS Spotlight page.
Apple(PBR4 $AAPL) is the first US company to reach $2 trillion in market capitalization value, was under $1 trillion after the stock market plunged over fears of the coronavirus on 03/23/20. NY Times PR link.
Johnson & Johnson(PBR35) to acquire discoverer and developer of novel therapies for immune-mediated diseases Momenta Pharmaceuticals through an all cash tender offer of $52.50/share, a 70%+ premium, around $6.5 billion, to close in 2H20. $JNJ PR link.
Intel(PBR45) initiates $10 billion accelerated share repurchase agreements, will have repurchased a total of approximately $17.6 billion in shares as part of the planned $20 billion share repurchases announced in 10/19. $INTC PR link.
Occidental Petroleum(PBR148) to divest its Wyoming, Colorado, and Utah Land Grant assets to Orion Mine Finance (Orion) for approximately $1.33 billion, has a footprint of approximately 4.5 million mineral acres and 1 million fee surface acres, to close in 4Q20. $OXY PR link.
Gap Inc(PBR197 $GPS) is closing the flagship location at 890 Market Street and its store in the Embarcadero Center this month in response to coronavirus pandemic. SFGATE PR link.
Mylan(PBR271) launches of the first US FDA-approved therapeutically equivalent, substitutable generic of Biogen(PBR220)‘s Tecfidera® capsules, which generated $3.79 billion in sales for 12 months ending 06/30/20. Dimethyl fumarate delayed release capsules 120 mg and 240 mg are indicated for the treatment of relapsing forms of multiple sclerosis (MS), and are the first generic of any MS treatment in an oral solid dosage form available to patients in the US. $MYL PR link.
Regeneron(PBR384) and Roche collaborate to significantly increase global supply of REGN-COV2 investigational antibody cocktail for COVID-19, Regeneron will distribute REGN-COV2 in the US and Roche will be responsible for distribution outside the US. $REGN PR link.
KBR(PBR485) to acquire 1,750+ employees 22 offices across the US Chantilly, VA-based Centauri, a leading independent provider of high-end space, directed energy and other advanced technology solutions, from private equity firm Arlington Capital for around $800 million cash, to close 4Q20. $KBR PR link.
Prologis(PBR691) to train 25,000 individuals for in-demand logistics jobs by 2025. $PLD PR link.
The US Federal Open Market Committee releases the Minutes of its 07/28-29/20 meeting, “Participants observed that uncertainty surrounding the economic outlook remained very elevated, with the path of the economy highly dependent on the course of the virus and the public sector’s response to it.” FOMC PR link.
***Tuesday, August 18
Boeing(PBR40 $BA) plans new buyout offer to staffers to increase job cuts in commercial airplanes. $BA Seattle Times link.
Delta(PBR66) is partnering with CVS Health(PBR5) to accelerate employee COVID-19 testing with a rapid-response option for flight crews, includes test results in 15 minutes. $DAL PR link.
Thermo Fisher Scientific(PBR112 $TMO) TaqPath COVID-19 Combo Kit users get US FDA alert about two issues that increase the risk of false positive results, recommends upgrades and updates provided by TMO. US FDA PR link.
Gilead Sciences(PBR133) to make a $125 million upfront payment and $20 million equity investment in Tango Therapeutics to expand their strategic oncology collaboration, will have rights to opt-in to up to 15 targets for up to $410 per program in total payments. $GILD PR link.
Carnival Corp(PBR152)’s Holland America Line opens bookings for 2022 Grand World Voyage and 2021 Grand Africa Voyage. $CCL PR link.
Carnival Corp(PBR152) announces a maiden season for Diamond Princess, sailing to South America and Antarctica in fall 2021 and spring 2022, replacing Sapphire Princess on the same deployment from December through March. $CCL PR link.
Keurig Dr Pepper(PBR278)‘s largest shareholder Maple Holding, which is majority owned by JAB Holdings NV, is selling 45 million common shares, around 3.2% of all common shares, in a secondary offering for $29.15/share, Maple and JAB will own around 49.5% of KDP common shares after the offering is completed. $KDP PR link.
RR Donnelley(PBR394) amends stockholder rights plan to extend the final expiration date from 08/28/20 to 08/28/21. $RRD PR link.
Take-Two Interactive(PBR729) to acquire privately held 70 employees based in NY City mobile games developer Playdots for $195 million in cash and stock, to close in 3Q20. $TTWO PR link.
Rollins(PBR895) Chairman R. Randall Rollins passes away at 88, succession plans to be announced later. $ROL PR link.
The US Dept of Commerce/HUD says the Preliminary July 2020 US Private Housing Permits Issued Annual Rate is at 1,495,000, June 2020 was at 1,258,000, May 2020 1,216,000, July 2019 1,366,000. USDOC PR link.
***Monday, August 17
American Express(PBR73) to acquire Atlanta, GA based data and technology company providing small business cash flow solutions Kabbage, pre-existing loan portfolio is not included, terms not disclosed, to close by end of 2020. $AXP PR link.
Dominion Energy(PBR194) has acquired the 62.5-megawatt (AC) Madison Solar generating facility, located on 660 acres, in Orange County, VA, from Cypress Creek Renewables, expected to enter service 2Q22, Falls Church, VA-based Northrop Grumman(PBR91) will take the electricity generated as well as the renewable energy credits, under long-term agreements. $D PR link.
DaVita Healthcare(PBR269) has commenced a modified “Dutch auction” tender offer for shares of its common stock for an aggregate purchase price of up to $1.0 billion at a price per share of not less than $77.00 and not more than $88.00, tender offer expires at 12:00 midnight, New York City time, at the end of the day on 09/14/20. $DVA PR link.
Assurant(PBR307) has acquired 1,500+ repair technicians Fixt, a provider of on-demand mobile device support and repair, terms not disclosed. $AIZ PR link.
Intercontinental Exchange(PBR442) has priced an underwritten public offering of $6.5 billion in new senior notes, proceeds to be used for $11 billion acquisition of Pleasanton, CA based 1,700 employees cloud-based platform provider for the mortgage finance industry Ellie Mae. $ICE PR link.
Skechers(PBR522) announces new Skechers x Dr. Seuss collection, captures Dr. Seuss’s fantastical stories, starting with the world-famous characters and designs from his timeless classic, The Cat in the Hat. $SKX PR link.
Domino’s Pizza(PBR660) to fill more than 20,000 positions, including delivery experts, pizza makers, customer service representatives, managers, and assistant managers, as well as supply chain centers across the US who are actively hiring production and warehouse team members, as well as CDL drivers. $DPZ PR link.
Fitbit(PBR969) says its Fitbit Premium, its paid membership service that gives guidance to help you move more, manage stress, sleep better and eat well, has reached more than 500,000 paid subscribers in less than a year since launch. $FIT PR link.
Sanmina(PBR366) CEO Hartmut Liebel has left the company, Co-Founder/Executive Chairman Jure Sola reassumes Chairman/CEO role. $SANM PR link.
The Natl Assn of Home Builders says the Preliminary August 2020 Housing Market Composite Index is at a record tying 78, July 2020 was at 72, June 2020 58, August 2019 67. “… the V-shaped recovery for housing has produced a staggering increase for lumber prices, which have more than doubled since mid-April. Such cost increases could dampen momentum in the housing market this fall, despite historically low interest rates.” NAHB PR link.
The Federal Reserve Bank of New York says the August 2020 US Empire State Manufacturing General Business Conditions Index is at +3.7, July 2020 was at +17.2, June 2020 -0.2, August 2019 +4.2. “Firms remained optimistic that conditions would improve over the next six months, though optimism fell for a second consecutive month.” NYFed PR link.
***Friday, August 14
The PBRMarketTools US Stock Exchanges Recap for Week 33 ending 08/14/20:
DJIA ends Week 33 at 27,931.02, +1.81% from last Friday, +5.69% MTD, +8.21% QTD, -2.13% YTD, -5.48% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 33 at 11,019.30, +0.08% from last Friday, +2.55% MTD, +9.55% QTD, +22.81% YTD, -0.80% from record 11,108.07 set 08/06/20.
SPX ends Week 33 at 3,372.85, +0.64% from last Friday, +3.11% MTD, +8.79% QTD, +4.40% YTD, -0.39% from record 3,386.15 set 02/19/20.
The Week 33 News Summary: The Coronavirus Pandemic continues to wreak havoc as counts continue to go up. Various strategies by the US and state governments continue to have mixed results, no clear direction, except that many health professionals are sounding alarms as the fall flu season starts to be anticipated. There is a lot of public angst over the opening up of schools. Most universities have cancelled fall sports, suggesting they possibly become one time spring sports this school year. The Coronavirus Pandemic tallies as of today at 01:27PM Eastern US by the John Hopkins University CSSE unit is now 21,025,016 confirmed cases globally with 761,612 deaths. For the US it’s 5,292,711 confirmed cases and 168,154 deaths. Governments worldwide are now placing orders for hundreds of millions of vaccine doses from pharmaceutical companies whose initial to final phase tests are indicating a promising candidates for preventive vaccines. Testing kits and therapies for those who have been diagnosed with COVID-19 are in various developmental stages as well. US international trade news is dominated by the US/China issues, most recently over the controversial TikTok social media platform. At this time no meetings are being scheduled and little being spilled to the press. In other international news the US has brokered a normalization of relations between the United Arab Emirates and Israel, the first between Muslim and Jewish countries. Corporate earnings continue to show the effect of the coronavirus on most businesses. US economic indicators continue to move up, but not as fast as most would like. Initial jobless claims remain high, but hiring is up, too. The US Houses of Congress are paralyzed along partisan lines as they play jockeying political games to come up with a new stimulus plan. Presumptive Democrat presidential candidate Joe Biden announced Kamala Harris as his vice-president candidate, and now the contentious US presidential race is gathering steam and fire. Again the stock market seemed impervious to any news. The Stock Market Bull had a good start in the ring of Week 33, but The Stock Market Bear also came to fight and threw some good punches. It came down to Friday and The Stock Market Bull lost some points in the final round, but had enough from the early lead to hang on for a no knockout 3-0 victory, and he starts a new streak with two win weeks in a row. Do you like being a predictor of future events? Good luck as we navigate the rest of an uncertain 2020.
The Week 33 of 2020 tally YTD is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 3 weeks
McKesson(PBR8) will expand its existing partnership with the Centers for Disease Control (CDC) to support the US government’s Operation Warp Speed team as a centralized distributor of future COVID-19 vaccines and ancillary supplies needed to administer vaccinations, vaccines and related supplies will be delivered to point-of-care sites across the country at the US government’s direction. $MCK PR link.
Facebook(PBR46) now allowing Page owners to create an online event, set a price, promote the event, collect payment and host the event, all from the Facebook app. $FB PR link.
AutoZone(PBR256) plans to hire more than 20,000 new AutoZoners nationwide to meet the growing demands of its Retail and Commercial customers at its more than 5,800 stores throughout the US. $AZO PR link.
Cinemark(PBR699) begins phased reopening of its theatres on Friday, 08/14/20 and continues through Friday, 08/28/20, all theatres will reopen with enhanced clean and safety protocols. $CNK PR link.
Guess?(PBR799) Co-Founder/Non-Executive Chairman Maurice Marciano injured in a bicycle accident, will be in rehabilitation and therapy for an extended period of time, decides to step down, will remain on the Board, Lead Independent Director Alex Yemenidjian appointed Non-Executive Chairman. $GES PR link.
The US Dept of Labor says the Preliminary 2Q20 US Labor Productivity Output/Hr-Business Sector is at +6.6%, 1Q20 was at +0.0%, 4Q19 +1.4%, 2Q19 +2.2%. USDOL PR link.
The US Federal Reserve says the July 2020 Manufacturing % of Capacity is at 70.6%, June 2020 was at 68.5%, May 2020 64.8%, July 2019 77.4%. USFed PR link.
The US Dept of Commerce/Census says the Preliminary June 2020 Sales-Manufacturers is at $457.3 billion, Retailers $479.5 billion, Wholesalers $457.3 billion, Total Sales $1,394.0 billion, May 2020 was at $1,285.8 billion, April 2020 $1,185.0 billion, June 2019 $1,457.0 billion. USDOC PR link.
The US Dept of Commerce/Census says the Advance July 2020 Retailer Sales is at $483.5 billion, Food Services & Drinking Places $52.5 billion, Total Sales $536.0 billion, June 2020 was at $529.4 billion, May 2020 $488.2 billion, July 2019 $521.7 billion. USDOC PR link.
The U of Michigan Preliminary August 2020 US Consumer Sentiment Index is at 72.8, July 2020 was at 72.5, June 2020 78.1, August 2019 89.8. “Bad economic times are anticipated to persist not only during the year ahead, but the majority of consumers expect no return to a period of uninterrupted growth over the next five years.” UMichigan PR link.
***Thursday, August 13
Kroger(PBR22): An interesting Talks at GS conversation with Rodney McMullen, Chairman/CEO of the largest retail grocer in the US, ranked 22 by revenues and 222 by market capitalization on PBRMarketTools’ The PBR1000. McMullen interview page.
Apple(PBR4 $AAPL) is being sued by popular Fortnite game developer Epic Games for dropping Fortnite on its Apple App Store, cites Apple’s anti-competitive restrictions on mobile device marketplaces. Epic Games PR link.
Alphabet(PBR11 $GOOG)’s Google unit follows Apple(PBR2 $AAPL)‘s lead, removes Epic Games‘ popular Fortnite game from its app store for violating its sales rules. TheVerge PR link.
Kroger(PBR22) Health unit launches COVIDCare Plus to help American companies restart and maintain their business operations, includes use of Kroger Health’s FDA-authorized COVID-19 Test Home Collection Kit which combines self-collection testing with virtual supervision by a licensed healthcare professional with results in 24-48 hours. $KR PR link.
Thermo Fisher Scientific(PBR112) $12.7 billion tender offer cash acquisition of global provider of molecular diagnostics and sample preparation technologies QIAGEN NV(NYSE: QGEN; Frankfurt Prime Standard: QIA) has lapsed and deal is terminated, TMO to receive $95 million expense reimbursement from QGEN. $TMO PR link.
Carnival Corp(PBR152)’s Costa Cruises to restart its operations from Italian ports starting on 09/06/20, will be available for Italian guests only, itineraries to be to Italian ports only. $CCL PR link.
Uber(PBR225 $UBER) and Lyft(PBR661 $LYFT) 10-day extension request to delay yesterday’s court decision requiring they designate its California drivers as employees instead of independent contractors is denied, an appeal to the state court is planned. MarketWatch PR link.
Hertz(PBR314 $HTZ) former Chairman/CEO Mark Frissora has agreed to settle US SEC charges and repay Hertz nearly $2 million in incentive-based compensation for aiding and abetting the company in its filing of inaccurate financial statements and disclosures. US SEC PR link.
AMC Entertainment(PBR501) to reopen its doors at 100 theatres on 08/20/20 by celebrating 100 years of operations with “Movies in 2020 at 1920 Prices,” one day only, 15 cents for all movies all day, using current social distancing and public health rules. $AMC PR link.
Roper Technologies(PBR507) to acquire cloud-based property & casualty insurance software developer, with more than 20,000 agencies and 1,000 insurance carriers users, Vertafore in an all-cash transaction valued at approximately $5.35 billion. $ROP PR link.
The US Dept of Labor says the Preliminary July 2020 US Monthly Import Price Index is +0.7%, June 2020 was +1.4%, May 2020 +0.7%, July 2019 +0.0%, Last 12 Months -3.3%; July 2020 US Monthly Export Price Index is at +0.8%, June 2020 was +1.2%, May 2020 +0.0%, July 2019 +0.2%, Last 12 Months -4.4%. USDOL PR link.
***Wednesday, August 12
The PBRMarketTools profile for major integrated midstream energy asset network provider Enterprise Products(NYSE: $EPD) has been updated, ranked 97 by revenues on The PBR1000. More on the EPD Spotlight page.
Amazon(PBR2) announces Amazon Accelerate, a new virtual conference for small business partners, a virtual 3 day event 09/01-03/20 with 60+ sessions. $AMZN PR link.
Chevron(PBR15) makes an investment in Zap Energy, a Seattle-based start-up company developing a next-generation modular nuclear reactor with an innovative approach to advancing cost-effective, flexible, and commercially scalable fusion. $CVX PR link.
Microsoft(PBR20) introduces 2 screen mobile device Surface Duo, starts at $1,399, accepting pre-orders, to be available 09/10/20. $MSFT PR link.
Phillips 66(PBR30) to reconfigure its San Francisco Refinery in Rodeo, CA, to produce renewable fuels, would no longer produce fuels from crude oil, but instead would make fuels from used cooking oil, fats, greases and soybean oils, would produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. $PSX PR link.
Lowe’s(PBR44) to open 50 cross dock delivery terminals, seven bulk distribution centers and four e-commerce fulfillment centers over the next 18 months, will open the West Coast e-commerce fulfillment center in Mira Loma, CA in 10/20, part of $1.7 billion investment announced in 2018 to expand its distribution network through 2023, will create nearly 5,000 jobs in initial expansion. $LOW PR link.
Uber(PBR225 $UBER) and Lyft(PBR661 $LYFT) say they may shut down in California if forced to classify drivers as employees. MarketWatch PR link.
XCEL Energy(PBR263) announces its vision to drive toward powering 1.5 million electric vehicles, 20% of all vehicles, in its service areas by 2030. $XEL PR link.
Baxter(PBR272) gets US FDA Emergency Use Authorization for its HF20 Set and ST Set used in continuous renal replacement therapy (CRRT) during the COVID-19 crisis. $BAX PR link.
Royal Caribbean(PBR283) has secured a binding commitment from Morgan Stanley for a $700 million term loan facility, may draw on the facility at any time prior to 08/12/21, once drawn, the loan will bear interest at L + 3.75% and will mature 364 days from funding. $RCL PR link.
Altice USA(PBR315) to repurchase around 6.9 million Class A shares of remaining stake of around 17.3 million shares being sold by BC Partners. $ATUS PR link.
Icahn Enterprises(PBR318) sells 14.7 million shares of its Herbalife(PBR541) holdings, earned a return of around 200%, is still largest shareholder with 20.5 million shares, continues to strongly believe in HLF. $IEP PR link.
Simon Property(PBR479) and Authentic Brands venture agrees to buy bankrupt clothier Brooks Brothers for $325 million, requires bankruptcy court approval, agree to keep 125 of 200 stores open. $SPG PR link.
Southwestern Energy(PBR738) to acquire Montage Resources Corporation (NYSE: MR) in an all stock transaction, MR shareholders will receive 1.8656 shares of SWN for each MR share, SWN to sell 55 million shares of common stock to reduce MR debt, to close in 4Q20. $SWN PR link.
ViacomCBS(PBR104) Chairman Emeritus Sumner Redstone dies at 97. $VIAC PR link.
The US Dept of the Treasury says the July 2020 US Federal Government Receipts are $563.5 billion, Outlays $626.5 billion, Total Deficit $63.0 billion, June 2020 Total Deficit was at $864.1 billion, May 2020 Total Deficit $398.8 billion, July 2019 Total Deficit $119.7 billion; July 2020 Total Deficit Fiscal YTD(10 Months) is at $2.807 trillion, July 2019 was at $866.8 billion. USTreasury PR link.
The US Dept of Labor says the Preliminary July 2020 US Employee Current Average Earnings/Hour is at $29.39. Average Hours Worked/Week is at 34.5, Average Weekly Earnings are at $1,013.96, June 2020 was at $1,014.47, May 2020 $1,030.59, July 2019 $962.12. USDOL PR link.
The US Dept of Labor says the July 2020 US Consumer Price Index-Urban is at +0.6%, June 2020 was at +0.6%, May 2020 -0.1%, July 2019 +0.3%; July 2020 Last 12 Months(Unadjusted) is at +1.0%, June 2020 was at +0.6%, May 2020 +0.1%, July 2019 +1.8%. USDOL PR link.
***Tuesday, August 11
Kroger(PBR22) to expand Kroger Ship to offer an extended ship-to-home assortment through a marketplace offering of third-party sellers powered by Mirakl, the leading software platform enabling B2C and B2B digital marketplaces, more than 50,000 items to be added, to launch in Fall 2020. $KR PR link.
Tesla(PBR117) to do a 5:1 stock split for stockholders of record on 08/21/20 after close on 08/28/20. $TSLA PR link.
Qualcomm(PBR120 $QCOM) gets 3-0 ruling against the US Federal Trade Commission by the US Court of Appeals for the Ninth Circuit which said that Qualcomm didn’t breach antitrust laws because the company isn’t required to license rival semiconductor suppliers. Barron’s PR link.
Carnival Corp(PBR152)’s P&O Cruises has extended its pause in operations until 11/12/20 and also cancelled two long /itineraries due to depart in January 2021. $CCL PR link.
Carnival Corp(PBR152)’s Costa Cruises is planning to restart its operations from Italian ports gradually on 09/06/20. $CCL PR link.
Carnival Corp(PBR152)’s Holland America Line extends its pause on cruise operations to all departures through 12/15/20. $CCL PR link.
AFLAC(PBR139) authorizes purchase of up to 100 million shares of its common stock, is in addition to the 21.9 million shares as of 06/30/20 remaining under the 08/0817 authorization, total number of shares availableis around 121.9 million. $AFL PR link.
HD Supply(PBR462) to sell its Construction & Industrial–White Cap business, a leading distributor of specialty concrete and construction products and services in N America serving professional contractors, to an affiliate of Clayton, Dubilier & Rice for $2.9 billion in cash, to close in 10/20. $HDS PR link.
The US Dept of Labor says the Preliminary July 2020 US Producer Price Index is at +0.6%, June 2020 was at -0.2%, May 2020 +0.4%, July 2019 +0.3%; July 2020 Last 12 Months(Unadjusted) is at -0.4%, June 2020 was at -0.8%, May 2020 -0.8%, July 2019 +1.6%. USDOL PR link.
CoreLogic says the May 2020 US Housing Mortgages 30 Or More Days Late is at 7.3%, April 2020 was at 6.1%, March 2020 3.6%, May 2019 3.6%. “Barring additional intervention from the Federal and State governments, we are likely to see meaningful spikes in delinquencies over the short to medium term.” CoreLogic PR link.
***Monday, August 10
The PBR1000 July 2020 Stocks & Commodities Snapshots Summary blog has been posted, includes US stock exchanges analysis, Top 5 Stock Performers in 4 categories. July 2020 Stocks & Commodities Snapshots page.
The PBRMarketTools profile for major financial services provider Citigroup(NYSE: $C) has been updated, ranked 32 by revenues on The PBR1000. More on the Citigroup Spotlight page.
Facebook(PBR46 $FB) unveils a new group, Facebook Financial, to pursue payments and commerce opportunities and put David Marcus, co-creator of its Libra cryptocurrency project, in charge of the initiative. Bloomberg PR link.
Carnival Corp(PBR152) is planning to resume AIDA Cruises from German ports starting 09/06/20, all other cruises on hold until 09/30/20. $CCL PR link.
Carnival Corp(PBR152) pauses its Seabourn ultra-luxury cruises, through 11/25/20 for Encore, 12/20/20 for Ovation, and 05/24/21 for Sojourn World Cruise 2021. $CCL PR link.
PPL Corp(PBR389) to sell its UK utility business in order to position PPL as a purely US-focused utility holding company. $PPL PR link.
IAC(PBR554) announces its accumulation of a 12% interest in global hospitality and entertainment company MGM Resorts(PBR241) for about $1 billion, IAC sees digital opportunity within MGM’s offline businesses and hopes to strongly contribute to the growth of online gaming. $IAC PR link.
Eastman Kodak(PBR983) appoints a special committee of independent directors to oversee an internal review of recent activity by the Company and related parties in connection with the announcement of a potential $765 million loan by the US International Development Finance Corporation to support the launch of Kodak Pharmaceuticals. $KODK PR link.
The US Dept of Labor says the Preliminary June 2020 US Job Openings-Private is at 5,246,000, Government 643,000, Total 5,889,000, May 2020 was at 5,371,000, April 2020 4,996,000, June 2019 7,185,000. USDOL PR link.
***Friday, August 7
The PBRMarketTools US Stock Exchanges Recap for Week 32 ending 08/07/20:
DJIA ends Week 32 at 27,433.48, +3.80% from last Friday/MTD, +6.28% QTD, -3.87% YTD, -7.17% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 32 at 11,010.98, +2.47% from last Friday/MTD, +9.47% QTD, +22.72% YTD, -0.87% from record 11,108.07 set 08/06/20.
SPX ends Week 32 at 3,351.28, +2.45% from last Friday/MTD, +8.10% QTD, +3.73% YTD, -1.03% from record 3,386.15 set 02/19/20.
The Week 32 News Summary: Optimism continues to grow that a vaccine for COVID-19 is getting closer to reality as some pharmaceutical companies have entered Phase 3 testing. The US government has backed this up by pre-ordering hundreds of millions of doses conditioned on US FDA approvals. Numbers continue to grow, is increasing in some states, decreasing in others. The Coronavirus pandemic tallies as of today at 01:35PM Eastern US by the John Hopkins University CSSE unit is now 19,193,661 confirmed cases globally with 716,735 deaths. For the US it’s 4,918,927 confirmed cases and 160,737 deaths. International trade issues, specifically for the US and China, kicked up a notch as US President Trump signed Executive Orders to close down popular China-based digital apps TikTok and WeChat in late September. Microsoft is currently negotiating to acquire TikTok. It was a big week for 2Q20 corporate earnings reports, which were mostly mixed because of the effects of the coronavirus pandemic. US economic news was also mixed with jobs reports showing growth, but at a slower pace. Manufacturing sentiment was up, but services sentiment mixed. Congress ended the week with continued wrangling over what the new US economic stimulus program should be, and millions of workers are now without unemployment benefits. The stock market didn’t seem to care much about the news as The Stock Market Bull had an almost perfect week for all 3 major US stock exchanges. The Stock Market Bear inflicted a very minor gash wound courtesy of the NASDAQ on Friday, but the previous four sessions had all been record breakers. The Stock Market Bull sweeps Week 32 with a convincing 3-0 victory amid continuing concerns about the economy re-opening in a robust way.
The Week 32 of 2020 tally YTD is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 3 weeks
Pfizer(PBR63) gets multi-year deal with Gilead Sciences(PBR133) to manufacture and supply Gilead’s investigational antiviral remdesivir, as one of multiple external manufacturing organizations supporting efforts to scale up supply of the investigational treatment for COVID-19. $PFE PR link.
Wayfair(PBR336) in 2Q20 report says it has 26.0 million active cutomers, up 46% from last year, 18.9 million orders delivered in 2Q20, +106.2% from last year, average order was $227. $W PR link.
The US Dept of Labor says the US July 2020 Total Employed is at 143,532,000, June 2020 was at 142,182,000, May 2020 137,242,000, July 2019 157,346,000; July 2020 Unemployment Rate is at 10.2%, June 2020 was at 11.1%, May 2020 13.3%, July 2019 3.7%. USDOL PR link.
The US Federal Reserve Board says the Preliminary June 2020 US Consumer Credit Outstanding-Revolving is at $992.4 billion, Non-Revolving $3,132.5 billion, Total $4,124.9 billion, May 2020 was at $4,115.9 billion, April 2020 $4,130.2, June 2019 $4,088.5 billion. USFed PR link.
The US Dept of Commerce/Census says the Preliminary June 2020 US Wholesale Sales-Durable Goods is at $225.2 billion, Non-Durable Goods $232.1 billion, Total $457.3 billion, May 2020 was at $420.5 billion, April 2020 $397.6 billion, June 2019 $499.7 billion. USDOC PR link.
FannieMae says the July 2020 US Home Purchase Sentiment Index is at 74.2, June 2020 was at 76.5, May 2020 67.5, July 2019 93.7. “Supply constraints appear to be applying upward pressure to consumers’ home price expectations, which in turn has contributed to both a sharp reversal in optimism about whether it is a good time to buy a home and further improvement in home-selling sentiment… In the months ahead, we continue to expect consumer sentiment to be closely linked to the country’s progress in containing the spread of the virus.” FNMA PR link.
***Thursday, August 6
The monthly The PBR25 Top Buy Stocks has been emailed to Subscribers, with the new Top Buy Stock suggesting a nice 54% 12 month return based on 19 analyst estimates, and all 25 stocks averaging a generous 34% return. More on The PBR25 info page.
T-Mobile US(PBR70) in 2Q20 report says it had 1,245,000 total net additions, tops in the industry, since merger with Sprint now has 98+ million customers, overtakes AT&T(PBR9) as #2 wireless carrier. $TMUS PR link.
Capital One(PBR92 $COF) is issued an enforecement action by the US Federal Reserve regarding the March 2019 security breach of 100+ million cardholders, is requiring COF to enhance its risk-management program and related governance and controls. USFed PR link.
MGM Resorts(PBR241) launches “Viva Las Office” home-away-from-the-home office experience in Las Vegas, NV, at Bellagio and ARIA properties, 3 tier 3-5 day packages starting at $100/night. $MGM PR link.
Quanta Services(PBR251) authorizes new $500 million share repurchase program, expires 06/30/23, $87 million remains available through 08/31/21 from previous $500 million authorization. $PWR PR link.
Mylan(PBR271) in 2Q20 report reiterates plan to combine with Pfizer(PBR59)’s Upjohn division, to be called Viatris, to close in 4Q20. $MYL PR link.
Bausch Health(PBR354) to spin-off its Bausch + Lomb eye health products unit as a separate public company, to separate financial reporting in 1Q21. $BHC PR link.
Intercontinental Exchange(PBR442) to acquire Pleasanton, CA based 1,700 employees cloud-based platform provider for the mortgage finance industry Ellie Mae® from private equity firm Thoma Bravo for $11 billion, to close by early 4Q20. $ICE PR link.
ServiceMaster(PBR885) hires Brett T. Ponton to be next CEO, effective on or before 10/01/20, will succeed Interim CEO Naren Gursahaney who will remain Chairman. $SERV PR link.
***Wednesday, August 5
The PBRMarketTools profile for major global automotive manufacturer General Motors(NYSE: $GM) has been updated, ranked 17 by revenues on The PBR1000. More on the General Motors Spotlight page.
Amazon(PBR2) to launch a new, state-of-the-art 600,000+ sf Amazon fulfillment center in Temple Terrace, FL, is anticipated to open in 2021, will create 750 new, full-time jobs. $AMZN PR link.
Amazon(PBR2 $AMZN) finally wins approval from UK regulator to gobble up minority stake in UK based Deliveroo. MarketWatch PR link.
Johnson & Johnson(PBR35)’s Janssen Pharmaceutical unit gets $1+ billion order from US government for 100 million doses of Janssen’s SARS-CoV-2 investigational vaccine, Ad26.COV2.S, for use in the US following approval or Emergency Use Authorization by the US Food and Drug Administration, vaccine will be provided at a global not-for-profit basis for emergency pandemic use, US government has option for an additional 200 million doses. $JNJ PR link.
Dollar General(PBR105) to add one traditional distribution center in Walton, KY, and three DG Fresh cold storage facilities in Bowling Green, KY; Ardmore, OK and West Sacramento, CA, is expected to create 600 new career opportunities. $DG PR link.
Blackstone(PBR403) to acquire online family history provider with 3 million subscribers and $1+ billion in annual revenues Ancestry® from Silver Lake, GIC, Spectrum Equity, Permira, and other equity holders for a total enterprise value of $4.7 billion. $BX PR link.
The New York Times(PBR925) in its 2Q20 report says it added 493,000 net new subscriptions to its core news product and 176,000 additions to other digital products, for a total of 669,000 net new digital subscription additions, at the end of 2Q20 had 5.7 million total digital-only subscriptions and 6.5 million total subscriptions. $NYT PR link.
ADP says the Preliminary July 2020 US Change In Non-Farm Private Employment is at +167,000, June 2020 was at +4,314,000, May 2020 +3,341,000, July 2019 +150,000. ADP PR link.
The US Dept of Commerce/Census says the Preliminary June 2020 US Exports-Goods is at $102.9 billion, Services $55.4 billion, Total Exports $158.3 billion; June 2020 US Imports-Goods is at $175.0 billion, Services $33.9 billion, Total Imports $208.9 billion; Total June 2020 Deficit is at $50.6 billion, Total June 2019 Deficit was at $51.0 billion; Total Deficit YTD(6 months) is at $274.0 billion, Total Deficit YTD 2019 was at $348.3 billion. USDOC PR link.
The Institute for Supply Management says the July 2020 US Services PMI Index(>50%=Economy growing) is at 58.1%, June 2020 was at 57.1%, May 2020 45.4%, July 2019 53.7%. “Respondents remain concerned about the pandemic; however, they are mostly optimistic about business conditions and the economy as businesses continue to reopen. Sentiment varies across industries, as they are impacted differently…” ISM PR link.
IHS Markit says the July 2020 US Composite PMI Output Index is at 50.3, June 2020 was at 47.9, May 2020 37.0, July 2019 52.6. “… businesses have on balance become more optimistic about recovery in the year ahead, and took on extra staff to ensure capacity is sufficient to meet future growth. However, whether this optimism can be sustained and result in faster growth will of course depend on infection rates falling.” IHS Markit PR link.
***Tuesday, August 4
Home Depot(PBR27) to open 3 distribution centers in Georgia over the next 18 months, projected to bring approximately 1,000 additional jobs to the Atlanta area, including full-time and part-time positions. $HD PR link.
Walt Disney(PBR49 $DIS) shakes up streaming approach after losing nearly $5 billion due to pandemic, to release “Mulan” on Disney+ as a pay-per-view option for $30. MarketWatch PR link.
Booking(PBR207) to reduce Booking.com’s global workforce by up to approximately 25% as a result of the impact of the COVID-19 pandemic on Booking.com and the travel industry. $BKNG PR link.
Lithia Motors(PBR245) adds four John Eagle Dealerships located in Dallas and Austin, TX, to add $500 million in revenues per year. $LAD PR link.
Cedar Fair(PBR964) says it will not be re-opening the following California theme parks in 2020: Great America, Carowinds, Kings Dominion and Valleyfair and Gilroy Gardens which it does not own, but operates, closing all but two remaining parks after Labor Day, modified schedules, 2020 season passholders to be extended to 2021. $FUN PR link.
WW(PBR971) in 2Q20 report says end of period subscribers were up 9% year-over-year to 5.0 million subscribers, 3.9 million digital subscribers, 1.1 million digital plus studio subscribers. $WW PR link.
Ford(PBR12) President/CEO Jim Hackett to retire, COO Jim Farley to become President/CEO on 10/01/20. $F PR link.
Modine Manufacturing(PBR902) President/CEO/Director Thomas Burke stepping down, effective immediately, VP Finance/CFO Mick Lucareli appointed Interim CEO, new CEO search starts. $MOD PR link.
The US Dept of Commerce/Census says the Preliminary June 2020 US Manufacturers New Orders-Durables is at $207.2 billion, Non-Durables $230.0, Total $437.2 billion, May 2020 was at $411.7 billion, April 2020 $382.3 billion, June 2019 $493.3 billion. USDOC PR link.
The PurdueU/CME Group July 2020 US Ag Economy Barometer Composite Index(100=Unchanged) is at 118, June 2020 was at 117, May 2020 103, July 2019 153. “Although the barometer changed little from June to July, farmers indicated they were noticeably more optimistic about current conditions and a bit less optimistic about the future than a month earlier.” PurdueU/CME Group PR link.
***Monday, August 3
Apple(PBR4 $AAPL) faces $1.4 billion virtual assistant patent infringement suit from Chinese AI company. MarketWatch PR link.
Alphabet(PBR11)’s Google unit launches its Pixel 4a Smartphone, same features as Pixel 4 with some modifications and a lower starting price at $349, will be introducing Pixel 4a(5G), starting at $499, and Pixel 5 in the fall. $GOOG PR link.
Alphabet(PBR11)’s Google unit to invest $450 million for 6.6% equity in ADT(NYSE: ADT) to create next generation of home security using GOOG’s Nest hardware and services and ADT’s installation, service and monitoring network, to close in 3Q20. $GOOG PR link.
Microsoft(PBR20) to continue discussions on potential China based ByteDance’s popular TikTok purchase in the US, says it will complete these discussions no later than 08/15/20. $MSFT PR link.
Marathon Petroleum(PBR21) to sell its Speedway convenience retail stores unit to 7-Eleven for $21 billion in cash, includes a 15-year fuel supply agreement with MPC for approximately 7.7 billion gallons per year associated with the Speedway business, to close in 1Q21. $MPC PR link.
Merck(PBR66) completes acquisition of the worldwide rights to VECOXAN® (diclazuril), an oral suspension for the prevention of coccidiosis in calves and lambs, from Elanco Animal Health(PBR733), terms not disclosed. $MRK PR link.
Members of the COVID R&D Alliance AbbVie(PBR94), Amgen(PBR128), and Takeda Pharmaceutical(NYSE: TAK) announced the first patients enrolled in the I-SPY COVID Trial (Investigation of Serial Studies to Predict Your COVID Therapeutic Response with Biomarker Integration and Adaptive Learning) clinical trial. $AMGN PR link.
Eli Lilly(PBR138) announces the initiation of BLAZE-2, a Phase 3 trial studying LY-CoV555 for the prevention of SARS-CoV-2 infection and COVID-19 in residents and staff at long-term care facilities in the US. $LLY PR link.
Bed Bath & Beyond(PBR276) completes $245 million sale of PersonalizationMall.com to 1-800-FLOWERS.COM(Nasdaq: FLWS). $BBBY PR link.
Brown-Forman(PBR601) completes sale of Early Times, Canadian Mist, and Collingwood brands, and the Canadian Mist production assets, to Sazerac Company, terms not disclosed. $BFB PR link.
Elanco Animal Health(PBR734) completes $6.89 billion acquisition of the animal health business of Bayer AG(ETR: BAYN), 70% cash, 30% equity. $ELAN PR link.
Tailored Brands(PBR772) has entered into a restructuring support agreement (“RSA”) with more than 75% of its senior lenders, has filed voluntary Chapter 11 petitions with US Bankruptcy Court, to reduce its corporate headcount, rationalize its store fleet, and reduce and realign its store organization and supply chain infrastructure and organization to best serve its go-forward store footprint and e-commerce business. $TLRD PR link.
Vornado Realty Trust(PBR907) is leasing the 730,000 sf iconic Beaux Arts New York City landmark Farley Building to Facebook(PBR46), is adjacent to Penn Station and across the street from Madison Square Garden. $VNO PR link.
Tyson(PBR76) CEO Noel White to become Executive Vice Chairman, President Dean Banks to become President/CEO effective 10/03/20. $TSN PR link.
Avnet(PBR162) CEO Bill Amelio is moving on from CEO and director roles, Global President Electronic Components Phil Gallagher appointed Interim CEO. $AVT PR link.
Clorox(PBR457) President Linda Rendle to become CEO effective 09/14/20, succeeds Benno Dorer who will remain Chairman. $CLX PR link.
The US Dept of Commerce/Census says the Preliminary June 2020 US Construction Spending Annual Rate-Residential is at $542.3 billion, Non-Residential $812.9 billion, Total $1,355.2 billion, May 2020 was at $1,364.7 billion, April 2020 1,387.9 billion, June 2019 $1,285.3 billion. USDOC PR link.
The Institute for Supply Management Report On Business says the Preliminary July 2020 US Manufacturing PMI is at 54.2%, June 2020 was at 52.6%, May 2020 43.1%m July 2019 51.2%. “In July, manufacturing continued its recovery after the disruption caused by the coronavirus (COVID-19) pandemic. Panel sentiment was generally optimistic (two positive comments for every one cautious comment), continuing a trend from June.” ISM PR link.
IHS Markit says the July 2020 US Manufacturing PMI Index is at 50.9, June 2020 was at 49.8, May 2020 39.8, July 2019 50.4. “Although indicating the strongest expansion of the manufacturing sector since January, the IHS Markit PMI remains worryingly weak. Much of the recent improvement in output appears to be driven merely by factories restarting work rather than reflecting an upswing in demand.” IHS Markit PR link.
***Friday, July 31
The PBRMarketTools US Stock Exchanges Recap for July and Week 31 ending 07/31/20:
DJIA ends July and Week 31 at 26,428.32, -0..16% from last Friday, +2.38% MTD/QTD, -7.39% YTD, -10.57% from record 29,551.42 set 02/12/20.
NASDAQ ends July and Week 31 at 10,745.27, +3.69% from last Friday, +6.82% MTD/QTD, +19.76% YTD, -0.20% from record 10,767.09 set 07/20/20.
SPX ends July and Week 31 at 3,271.12, +1.73% from last Friday, +5.51% MTD/QTD, +1.25% YTD, -3.40% from record 3,386.15 set 02/19/20.
The Week 31 of 2020 tally YTD is:
The Stock Market Bull: 15 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 3 weeks
The Monthly 2020 tally YTD(7 Months) is:
The Stock Market Bull: 4 months
The Stock Market Bear: 2 months
Mixed Results: 1 month
Check out the BLOG page for the previous RECAPS and SNAPSHOTS posts.
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