Welcome to the 2nd Half of 2019 for The PBR1000!
Summer vacations are oftentimes spent taking thrill rides at theme parks. Alternately, you can simply invest in the stock market to experience roller coaster financial thrills.
By Larry C. Paxton
The July 2019 breaking news items of interest for The PBR1000 follow with the most current date first.
***Wednesday, July 31:
The PBRMarketTools US Stock Exchanges Recap for July 2019 ending 07/31/19:
DJIA ends July 2019 at 26,864.27, -1.21% from last Friday, +0.99% MTD/QTD, +15.16% YTD, -1.81% from record 27,359.16 set 07/15/19.
NASDAQ ends July 2019 at 8,175.42, -1.86% from last Friday, +2.11% MTD/QTD, +23.21% YTD, -1.86% from record 8,330.21 set 07/26/19.
SPX ends July 2019 at 2,980.38, -1.50% from last Friday, +1.31% MTD/QTD, +18.89% YTD, -1.50% from record 3,025.86 set 07/26/19.
The July 2019 News Summary: The stage for July was set at the end of June when US President Trump met with China President Xi Jinping at the G20 Summit in Osaka, Japan. While there were no decisions, trade negotiations were on and off during July, the next meetings scheduled for September. President Trump also had an historic meeting with N Korea President Kim Jong-un at the DMZ, briefly entered into N Korea, and had a much longer chat than expected with Kim Jong-un afterwards. But at the end of July N Korea fired some short range rockets labelled as a kind of protest against scheduled joint US/S Korea and allies military exercises. Iran apparently attacked some oil ships, and they have exceeded the enriched nuclear material levels agreed to in a treaty the US withdrew from. UK Prime Minister Theresa May was unable to negotiate an acceptable Brexit agreement, stepped down, and the controversial and flamboyant Boris Johnson is the new PM, making Brexit his top priority. The European Central Bank signaled future funds rate cuts. The US celebrated the 243rd anniversary of Independence Day on July 4th. The US Women’s Soccer team won the World Cup. Tropical Storm Barry struck Louisiana and other Southern states, but damage was not as extensive as had been anticipated. The month started out with a strong US jobs report. 2Q19 corporate earningsreports started and are mixed with Boeing being hit by the continuing issues with its 737 MAX airplane. Robert Mueller appeared before a couple of congressional committees for hearings on his report concerning Russian interference in the 2016 presidential election and possible collusion by the Trump campaign, with no additional clarity. Capital One was hit with a large hack that is causing identity theft concerns. The Democrat Party sponsored 2 debates with 10 presidential candidates each, Joe Biden continues to be the front runner. On the last day of the month the Federal Open Market Committee approved a 0.25% cut in the federal funds rate, and each of the major US stock exchanges took >1% drop. The Gross Domestic Product Annual Rate came in at +2.1%, indicating slower growth. The 3 major US Stock Exchanges all hit records during the month, and even with the significant drop on the last day The Stock Market Bull prevailed over The Stock Market Bear to take his 6th 3-0 monthly victory over only 1 monthly loss.
The July 2019 YTD(7 months) tally is:
The Stock Market Bull: 6 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
Amazon(PBR5) Fashion unit launches Personal Shopper by Prime Wardrobe for Prime members, Customers complete a survey about their style and fit preferences and any additional specifics they want – then, Amazon Fashion’s stylist team will do the shopping for them, Customers get to preview their picks and select which items they want to ship and try in the comfort of their homes, $4.99/month. $AMZN PR link.
MetLife(PBR43) authorizes new $2 billion share repurchase program, $20 million left from previous $2 billion program. $MET PR link.
Wellcare Health Plans(PBR151) to hire 300+ full-time positions to support N Carolina‘s transition to Medicaid managed care. $WCG PR link.
FIS(PBR353) completes enterprise value of $43 billion stock and cash acquisition of payment technology company Worldpay(PBR584). $FIS PR link.
WellTower(PBR544) has acquired five purpose-built, private pay seniors housing properties recently developed and managed by Sunrise Senior Living for $285 million, located in Washington DC, San Francisco, and San Diego metro areas, Sunrise will continue to manage the communities. $WELL PR link.
WellTower(PBR544) has acquired a six-community portfolio located in the Denver and Boulder metropolitan statistical areas for $308 million in partnership with Colorado-based Balfour Senior Living. $WELL PR link.
WellTower(PBR544) to acquire a 43-acre, 6-building, 270,000 square foot medical office campus in Berkeley Heights, NJ for $140 million, campus will be master leased by Summit Medical Group. $WELL PR link.
WellTower(PBR544) partner Benchmark Senior Living has recapitalized the Benchmark Senior Living 4,137-unit seniors housing portfolio in 48 assisted living properties located in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont for $1.8 billion, Welltower now has fully exited the portfolio. $WELL PR link.
WellTower(PBR544) has expanded its relationship with Discovery Senior Livingthrough an off-market acquisition of three infill seniors housing campuses in the Dallas-Fort Worth and San Antonio metropolitan areas, transaction includes Welltower signing for a $1 billion exclusive development agreement. $WELL PR link.
Penn Natl Gaming(PBR656) enters into multi-year agreements with leading sports betting operators DraftKings, PointsBet, theScore and The Stars Group for online sports betting and iGaming market access across the Company’s portfolio. $PENN PR link.
Albemarle(PBR681) will acquire 60% ownership of Mineral Resources Limited(ASX: MIN)Wodgina hard rock lithium mine in Western Australia and form a 60-40 joint venture with MRL to operate the mine and battery grade lithium hydroxide production facilities, original agreement was a 50% and 50/50 deal. $ALB PR link.
Carlyle Group(PBR828) to convert to a Full C-Corporation effective 01/01/20. $CG PR link.
The Cheesecake Factory(PBR844) to acquire Phoenix, AZ based Fox Restaurant Conceptsand the remaining interest in North Italia for $308 million cash plus an additional $45 million due ratably over the next four years, to close in 3Q19. $CAKE PR link.
Molson Coors(PBR283) President/CEO Mark Hunter to retire effective 09/27/19, US unit MillerCoors President/CEO Gavin Hattersley named successor. $TAP PR link.
The Federal Open Market Committeecompletes its meeting and issues a statement saying, “In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent.” FOMC PR link.
The US Dept of Labor says the US 2Q19 Civilian Workers-All Cost Index(12/2005=100)is at 137.0, 1Q19 was at 136.2, 4Q18 135.2, 2Q18 133.3. USDOL PR link.
ADP(PBR235) says the US Preliminary July 2019 Change In Employment was at +156,000, +11,000 from Small Businesses(1-49 employees), +67,000 from Mid-Sized Businesses(50-499), and 78,000 from Large-Sized Businesses(500 or more), +9,000 were from the Goods-Producing Sector, +146,000 from the Services-Provider Sector. $ADP PR link.
The US Dept of Treasury says that the US 07/30/19 National Public Debt is at $16.214 trillion, Intragovernmental Holdings Debt $5.809 trillion, Total US Debt $22.023 trillion, +0.2% YTD, +3.3% from 07/31/18. USTreasury PR link.
The US Dept of Treasury says the US 10 Year Treasury Note Yield on 07/31/19 is 2.02%, 06/28/19 was at 2.00%, 05/31/19 2.14%, 07/31/18 2.96%. USTreasury PR link.
The US Energy Information Administrationsays US Millions of Barrels of Crude Oil Stocks on 07/26/19 were at 436.5, 06/21/19 was at 469.6, 05/24/19 476.5, 07/20/18 404.9. EIA PR link.
The Federal Reserve Bank of Chicago says the US 7th District Preliminary June 2019 Midwest Economy Index is at -0.31, May 2019 was at -0.22. ChiFed PR link.
The MNI July 2019 Chicago Business Barometer(<50=economy declining) is at 44.4, June 2019 was at 49.7, May 2019 54.2, July 2018 65.5. “Sentiment faded further with firms facing weakness across the board. Global risks, trade tensions, slowdown in demand and sombre growth expectations, all jeopardize business conditions. Firms are not panicking yet …” MNI PR link.
The American Automobile Assn says the US Regular Average Gas Price Per Gallon on 07/31/19 is at $2.721, 06/28/19 was at $2.708, 05/31/19 $2.825, 07/31/18 $2.862. AAA PR link.
The US Dollar Price for a Euro Dollar at the close of 07/31/19 is at $1.1052, 06/28/19 was at $1.1372, 05/31/19 $1.1171, 07/31/18 $1.1698. MarketWatch PR link.
***Tuesday, July 30:
Amazon(PBR5) to open its 15th Pennsylvanian operations facility in Pittsburgh, facility will have 1+ million sf, will create more than 800 new, full-time jobs starting at $15 an hour. $AMZN PR link.
BB&T(PBR239) shareholders approve merger with SunTrust Banks(PBR294) and name of new company to be Truist Financial Corporation. In a separate release SunTrust shareholders also approve merger. To close late 3Q19 to early 4Q19. $BBT PR link.
Berry Global(PBR379) completes sale of its Seal for Life business, with annual sales of around $120 million, to Arsenal Capital Partners for approximately $330 million. $BERY PR link.
Brown-Forman(PBR586) and Bacardi to end UK cooperation agreement in 04/20. $BFB PR link.
Wyndham Destinations(PBR618) to sell its Wyndham Vacations Rentals business to Vacasa, N America’s largest vacation rental management platform, for around $162 million, to close in Fall of 2019. $WYND PR link.
NuStar(PBR897) completes around $250 million sale of its storage terminal facility located at St. Eustatius in the Caribbean to Prostar Capital. $NS PR link.
Newell Brands(PBR344) hires Ravi Saligram as CEO and member of the Board, effective 10/02/19. $NWL PR link.
The US Dept of Commerce/BEA says the US Preliminary June 2019 Personal Income Annual Rate is at $18.676 trillion, +0.5% from May 2019, +5.4% from June 2018, June 2019 Personal Taxes were at a $2.221 trillion rate, an 11.9% Effective Tax Rate, Disposable Personal Income was at a $16.455 trillion rate, Personal Outlays $15.119 trillion rate, for a Personal Savings of $1.336 trillion rate, for a Personal Savings Rate of 8.1%. USDOC PR link.
The S&P CoreLogic Case-Shiller US May 2019 National Home Price Index(01/2000=100) is at 209.66, April 2019 was at 207.91, March 2019 206.02, May 2018 202.70. Case-Shiller PR link.
The Conference Board says the US July 2019 Consumer Confidence Index(1985=100) is at 135.7, June 2019 was at 124.3. “Consumers are once again optimistic about current and prospective business and labor market conditions. In addition, their expectations regarding their financial outlook also improved. These high levels of confidence should continue to support robust spending in the near-term despite slower growth in GDP.” TCB PR link.
***Monday, July 29:
Pfizer(PBR59)’s Upjohn division to be spunoff and combine with Mylan(PBR270) to form a separate to be named US based independent public company with around $20 billion in 2020 revenues, to close in mid 2020. $PFE PR link.
Bristol-Myers Squibb(PBR131) gets European Commission unconditional approval for $74 billion acquisition of global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases Celgene(PBR203), waiting for additional regulatory approvals, on track to close late 2019/early 2020. $BMY PR link.
CBS(PBR212) and Altice USA(PBR318) reach new comprehensive, multi-year content carriage agreement, covers retransmission consent for CBS-owned stations and the carriage of SHOWTIME™, CBS Sports Network, Pop TV and Smithsonian Channel™ on Altice’s Optimum and Suddenlink cable systems. $CBS PR link.
Parker Hannifin(PBR213) to acquire privately held Kent, WA based designer and manufacturer of high temperature, high pressure air and exhaust management solutions for aircraft and engines, with annual sales of approximately $450 million and 1,600 team members across three US locations Exotic Metals Forming Co, for $1.725 billion cash, to close by 10/31/19. $PH PR link.
Fiserv(PBR478) completes all stock transaction for equity value of around $22 billion, $22.74/share acquisition of First Data(PBR322). $FISV PR link.
Greenbrier(PBR812) completes $430 million acquisition of manufacturing business of St Charles, MO-based American Railcar Industries from ITE Management LP. $GBX PR link.
Mylan(PBR270) CEO Heather Bresch to retire upon closing of Pfizer(PBR59) Upjohn division and Mylan merger, with company since 1992. $MYL PR link.
Thor Industries(PBR360) names Andy Graves as Chairman, effective 08/01/19, will be 1st independent Chairman. $THO PR link.
***Friday, July 26:
The PBRMarketTools US Stock Exchanges Recap for Week 30 of 2019 ending 07/26/19:
DJIA ends Week 30 at 27,192.45, +0.14% from last Friday, +2.23% MTD/QTD, +16.57% YTD, -0.16% from record 27,332.03 set 07/12/19.
NASDAQ ends Week 30 at record 8,330.21, +2.26% from last Friday, +4.05% MTD/QTD, +25.54% YTD, +0.00% from record 8,330.21 set 07/26/19.
SPX ends Week 30 at record 3,025.86, +1.65% from last Friday, +2.86% MTD/QTD, +20.70% YTD, +0.00% from record 3,025.86 set 07/26/19.
The Week 30 News Summary: It appears that US/China trade negotiations are going to be starting up again, the UK makes Boris Johnsonits new Prime Minister based on his promise to get the UK out of the European Union, and the European Union Central Bank has signaled it might be cutting interest rates. In the US Robert Mueller was interrogated by two House committees regarding his work on alleged Russian collusion in the 2016 presidential election and possible obstruction by the Trump campaign, with little new information revealed, but more hearings and litigation likely. Congress seems close to passing a bill that would raise the debt ceiling and fund the government through the 2020 election. The US economy has slowed somewhat with the advance 2Q19 annual GDP growth rate released and calculated at 2.1%. Corporate earnings were somewhat mixed, with Boeing taking a big dip from more delays on the 737 MAX airplane, but it was a good week for tech stock with NASDAQ and the SPX ending the week with record closes as The Stock Market Bull came out of last week’s slumber to inflict a big gore wound in The Stock Market Bear and get a resounding 3-0 victory in Week 30.
The Week 30 YTD tally is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 8 weeks
Mixed Results: 6 weeks
T-Mobile US(PBR68) gets US Dept of Justiceapproval for $59 billion all stock acquisition of Sprint(PBR85) per divesting of Sprint’s prepaid businesses and Sprint’s 800 MHz spectrum assets to DISH(PBR228) for $5 billion, expects additional regulatory approvals in 3Q19, to close in 4Q19. $TMUS PR link.
Ferrellgas(PBR880) gets non-compliance listing notice from the NYSE, stock price ended previous month at under $1.00 per share, has 6 months to come into compliance. $FGP PR link.
Dean Foods(PBR384) hires Eric Beringause as President/CEO and member of the Board, effective 07/29/19, to succeed Ralph Scozzafava who has stepped down as CEO and resigned from the Board. $DF PR link.
The US Dept of Commerce/BEA says the US Preliminary 2Q19 Gross Domestic Product Annual Rate is at +2.1%, $21.338 trillion, +1.1% from 1Q19, +4.0% from 2Q18. USDOC PR link.
***Thursday, July 25:
Apple(PBR3 $AAPL) to acquire majority of Intel(PBR42)’s smartphone modem business, includes approximately 2,200 employees along with intellectual property, equipment and leases, transaction valued at $1 billion, to close 4Q19. $INTC PR link.
Charles Schwab(PBR305) to acquire assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts for $1.8 billion in cash, also agreed to enter into a long-term referral agreement, effective at closing of the acquisition, that would make Schwab the exclusive wealth management and brokerage provider for USAA members, to close during 2020. $SCHW PR link.
Colony Capital(PBR793) has acquired nearly $20 billion of digital infrastructure global manager Digital Bridge Holdings for $325 million, Digital founder/CEO Marc C. Ganzi to become Colony CEO in next 18-24 months, to succeed Tom Barrack, who will return to being Executive Chairman. $CLNY PR link.
Targa Resources(PBR292) President Matthew J. Meloy to become CEO and member of the Board on 03/01/20, current CEO Joe Bob Perkins to remain on management team and be Executive Chairman, to succeed retiring Executive Chairman James W. Whalen. $TRGP PR link.
YUM!(PBR485) hires Mark King as Taco Bell Division CEO and promotes Artie Starrs to Pizza Hut Division CEO, both effective 08/05/19. $YUM PR link.
Vertex Pharmaceuticals(PBR721)Chairman/President/CEO Jeffrey Leiden, MD, PhD, to become Executive Chairman on 04/01/20, Chief Medical Officer Reshma Kewalramani, MD will become President/CEO and member of the Board at that time. $VRTX PR link.
MGIC Investment(PBR996) President/CEO Patrick Sinks named Vice Chairman, EVP/CFO Timothy Mattke named CEO and elected to the Board, Salvatore Miosi appointed President/COO, Nathaniel Colson appointed EVP/CFO, all effective immediately. $MTG PR link.
The US Dept of Labor says the US Initial Unemployment Insurance Claims 4 Week Moving Average on 07/20/19 is at 213,000, -3.7% from 06/22/19, -2.3% from 07/21/18; Total Insured Unemployment 4 Week Moving Average on 07/13/19 is at 1,697,250, +0.6% from 06/15/19, -2.8% from 07/14/18. USDOL PR link.
The US Dept of Commerce/Census says the US 2Q19 Total Housing Units is at 139,497,000, +366,000 from 1Q19, +1,152,000 from 2Q18, 122,453,000 are Occupied, 78,515,000 by Owners, 43,938,000 by Renters, Occupancy Rate is 87.2%, Homeownership Rate is 64.1%. USDOC PR link.
FreddieMac(PBR39) says the US Average 30 Year Fixed Home Mortgage Rate on 07/25/19is at 3.75% with 0.5 points/fees, the rate was 3.73% on 06/27/19, 3.99% on 05/30/19, 4.54% on 07/26/18. $FMCC PR link.
***Wednesday, July 24:
Facebook(PBR55) in 2Q19 report says it had 2.41 billion monthly active users as of 06/30/19, an increase of 8% year-over-year, to pay $5.0 billion fine per agreement with the US Securities and Exchange Commission for its platform and user data practices, mobile advertising revenue represented approximately 94% of advertising revenue. $FB PR link.
Facebook(PBR55 $FB) to pay $100 million for misleading investors about the risks it faced from misuse of user data per settlement with the US Securities and Exchange Commission. SEC PR link.
Honeywell(PBR71) has acquired privately held TruTrak Flight Systems, a developer and provider of autopilots for experimental, light-sport and certified aircraft, has 15,000+ installations, terms not disclosed. $HON PR link.
Tenet Healthcare(PBR165) concludes strategic review that started in 12/17, to pursue a tax-free spin-off of its Conifer Health Solutions business as a separate, independent publicly traded company, to be completed by 2Q21. $THC PR link.
American Electric Power(PBR187) completes acquisition of 75%, or 227 megawatts, of the Santa Rita East Wind Project, located about 70 miles west of San Angelo,TX, from Invenergy Renewables, who retains 25% stake, increases AEP’s contracted renewables portfolio to 1,302 megawatts, terms not disclosed. $AEP PR link.
Booking(PBR210)’s OpenTable online restaurant reservations service is partnering with Caviar, Grubhub and Uber Eats to offer delivery and pick-up options at thousands of restaurants on OpenTable’s newly updated iOS app. $BKNG PR link.
Live Nation(PBR282) to acquire controlling interest in OCESA Entretenimiento, promotes more than 3,100 events for nearly 6 million fans annually across Mexico and Colombia, terms not disclosed. $LYV PR link.
Moody’s(PBR571) has acquired a majority stake in Berkeley, CA based Four Twenty Seven, a provider of data, intelligence, and analysis related to physical climate risks, has detailed data covering over 2,000 listed companies, one million global corporate facilities, 320 REITs, 3,000 US counties, and 196 countries, terms not disclosed. $MCO PR link.
The US Dept of Commerce/HUD says the US Preliminary June 2019 New Family Home Sales Annual Rate is at 646,000 units, +7.0% from May 2019, +4.5% from June 2018; June 2019 Median New Family Home Price is at $310,400, +2.3% from May 2019, -0.0% from June 2018. USDOC PR link.
ADP(PBR235) in its US 2Q19 Workforce Vitality Report says Wage Growth was at +4.0%, +0.2% from 1Q19, +1.0% from 2Q18; 2Q19 Wage Level was at $28.54, +$0.14 from 1Q19, +$1.08 from 2Q18. $ADP PR link.
***Tuesday, July 23:
UPS(PBR40) to expand services, including network of pickup and dropoff locations to 21,000 in the US, 40,000 globally, to start 7 day service on 01/01/20, has applied to the US FAA to operate a newly established UPS subsidiary UPS Flight Forward to do drone deliveries. $UPS PR link.
Starbucks(PBR114) to expand 11 market rollout to make Starbucks® Delivers available throughout the US in early 2020 through an agreement with Uber(PBR269)’s Uber Eats as the preferred delivery provider of Starbucks® items. $SBUX PR link.
Bed Bath & Beyond(PBR250) reduces corporate staff by around 7%, including elimination of the President/COO position. $BBBY PR link.
Realogy(PBR469) in collaboration with Amazon(PBR5) launches new homebuying program across its real estate brands called TurnKey, available initially in 15 US cities, includes free Amazon Move-In Benefit, valued from $1,000 to $5,000* in complimentary products and Amazon Home Services courtesy of Realogy. $RLGY PR link.
Harley-Davidson(PBR483) 6 months vehicle retail sales are at 120,997 units, was 129,514 units in 2018, motorcycles shipped from its Thailand operations to the EU to receive more favorable tariff treatment than if they were shipped from the US. $HOG PR link.
Brunswick(PBR520) to realize a reduction of approximately $50 million in annual run-rate costs, due in large part to a 9% reduction in its global salaried workforce. $BC PR link.
Skechers(PBR549) launches “Shaq by Skechers” basketball footwear for kids through its Skechers Kids brand. $SKX PR link.
Quad/Graphics(PBR596) $1.4 billion all shares acquisition of LSC Communications(PBR631)is terminated by mutual agreement because of costly and time consuming regulatory lawsuits, Quad will pay LSC a reverse termination fee of $45 million. $QUAD PR link.
Newmont Goldcorp(PBR404) EVP/COO Tom Palmer to succeed Gary Goldberg as President/CEO on 10/01/19. $NEM PR link.
The US Dept of Justice’s Antitrust Divisionannounces it is reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers. DOJ PR link.
The Federal Reserve Bank of Richmond says the 5th District July 2019 Manufacturing Composite Index(Annualized) is at -12%, June 2019 was at +2%, May 2019 +7%, July 2018 +21%. “… respondents were optimistic that conditions would improve in the coming months.” RichmondFed PR link.
The Federal Reserve Bank of Richmond says the 5th District July 2019 Service Sector Revenue Index(Annualized) is at +11%, June 2019 was at +16%, May 2019 +3%, July 2018 +24%. “Firms … reported growth in spending and were optimistic that business would stay strong in the next six months.” RichmondFed PR link.
The Natl Assn of Realtors says the US Preliminary June 2019 Existing Home Sales Annual Rate is at 5,270,000, -1.7% from May 2019, -2.2% from June 2018; June 2019 Median Existing Home Price is at $285,700, +2.9% from May 2019, +4.3% from June 2018. NAR PR link.
***Monday, July 22:
Amazon(PBR5) to open two new Ohio fulfillment centers, one in Akron and the other in Rossford, creating more than 2,500 full-time jobs. AMZN PR link.
Amazon(PBR5) signs international best-selling author Dean Koontz for a five-book deal, the first one to be out in Spring 2020, and a collection of six short thrillers, to be available 11/12/19 for free for Prime and Kindle Unlimited customers. $AMZN PR link.
Microsoft(PBR25) in multi-year deal to invest $1 billion in OpenAI to jointly build new Azure AI supercomputing technologies, OpenAI will port its services to run on Microsoft Azure, which it will use to create new AI technologies and deliver on the promise of artificial general intelligence, Microsoft will become OpenAI’s preferred partner for commercializing new AI technologies. $MSFT PR link.
Starbucks(PBR114) to license technology to San Francisco, CA, and Seattle, WA based Brightloom – formerly eatsa – taking equity stake and seat on the tech company’s board of directors, Brightloom will make available cloud-based software solutions to Starbucks global license partners. $SBUX PR link.
Starbucks(PBR114) and Nestlé launch Starbucks Creamers, the first time the Starbucks brand has entered the refrigerated creamer category, a growing US category, which is projected to top $7.8 billion by 2023 in the US. $SBUX PR link.
Occidental(PBR159) sends letter to shareholders in response to Icahn Enterprises(PBR288) effort to replace 4 directors on the Board and to vote on the $38 billion acquisition of Anadarko(PBR233). $OXY PR link.
Ross Stores(PBR205) announces the recent opening of 22 Ross Dress for Less® (“Ross”) and six dd’s DISCOUNTS® stores across 10 different states in June and July, part of plans to add approximately 100 stores in 2019, with 75 Ross and 25 dd’s DISCOUNTS locations. $ROST PR link.
Davita Healthcare(PBR266) commences modified “Dutch auction” tender offer for up to $1.2 billion of its common stock at a share price between $53.50 and $61.50, expires at the end of the day on 08/16/19. $DVA PR link.
TransDigm(PBR633) to sell its France based global supplier of highly-engineered interconnect solutions for harsh environments serving customers primarily in aerospace, defense and space end markets $363 million in revenues for year ending 06/30/19 Souriau-Sunbank Connection Technologies unit to Eaton Corp(PBR138) for around $920 million, was part of Esterline Technologies acquisition completed in 03/19. $TDG PR link.
Equifax(PBR675) announces $671 million resolution, includes settlement agreements that would resolve the multi-district consumer class action litigation, as well as investigations by the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), the Attorneys General of 48 states, Puerto Rico and the District of Columbia, and the New York Department of Financial Services (NYDFS). $EFX PR link.
Vail Resorts(PBR888) to acquire $60 million revenues in 12 months ending 07/31/19 Peak Resorts(NASDAQ: SKIS) in all stock deal for $11.00/share, around $264 million, will add 17 US ski areas to its network, to close in Fall 2019. $MTN PR link.
AutoNation(PBR140) promotes CFO Cheryl Miller to President/CEO and a director, effective immediately, is the first female CEO of a publicly traded automotive retailer, succeeds Carl Liebert who is leaving after 4 months per mutual agreement with the Board. $AN PR link.
TD Ameritrade(PBR500) President/CEO Tim Hockey to leave upon appointment of a successor, and no later than in 02/20. $AMTD PR link.
The Federal Reserve Bank of Chicago says the US Preliminary June 2019 National Activity Index is at -0.02, May 2019 was at -0.03, April 2019 -0.73, June 2018 +0.44. “Index points to economic growth near historical trend in June.” ChiFed PR link.
***Friday, July 19:
The PBRMarketTools US Stock Exchanges Recap for Week 29 of 2019 ending 07/19/19:
DJIA ends Week 29 at 27,154.20, -0.65% from last Friday, +2.08% MTD/QTD, +16.40% YTD, -0.75% from record 27,332.03 set 07/12/19.
NASDAQ ends Week 29 at 8,146.49, -1.18% from last Friday, +1.75% MTD/QTD, +22.78% YTD, -1.35% from record 8,244.14 set 07/12/19.
SPX ends Week 29 at 2,976.61, -1.23% from last Friday, +1.18% MTD/QTD, +18.74% YTD, -1.25% from record 3,013.77 set 07/12/19.
The Week 29 News Summary: Since before the first of 2019 the primary issue impacting the US stock exchanges has been US/China tradeissues, with the bottom line being little or no progress being made to date as both sides continue to play a “who blinks first” game. In the US the economic news was somewhat mixed, with the Federal Reserve’s Beige Booksummary indicating continued modest but slowing growth and the Federal Reserve signaling a possible half point drop in the federal funds short term interest rate at the end of the month. First half corporate earnings started to be released with mixed results. The Stock Market Bull charged into Week 29 with new records for all 3 major US stock exchanges on Monday, then took a long slumber in the pasture for the rest of the week, maybe from the hard work, stress and pressure it takes to keep winning. The Stock Market Bear has his way and ends Week 29 with a 3-0 record.
The Week 29 YTD tally is:
The Stock Market Bull: 15 weeks
The Stock Market Bear: 8 weeks
Mixed Results: 6 weeks
Schlumberger(PBR89) appoints COO Olivier Le Peuch to CEO and member of the Board, effective 08/01/19, succeeds Paal Kibsgaard, who will retire as Chairman/CEO and from the Board after more than 22 years of service to the Company, Mark G. Papa, a current non-independent director, will become non-executive Chairman. $SLB PR link.
Pier 1 Imports(PBR954) creates Office of the CEO, includes Interim CEO Cheryl Bachelder, newly hired President Doug Diemoz, newly hired EVP/CFO Bob Riesbeck, and EVP/Chief Legal and Compliance Officer and Corporate Secretary Robert Bostrom. $PIR PR link.
SeaWorld(PBR973) Chairman Yoshikazu Maruyama steps down because of other commitments, will remain a Director, Director Scott Ross unanimously elected non-executive Chairman. $SEAS PR link.
The U of Michigan US Preliminary July 2019 Consumer Sentiment Index is at 98.4, June 2019 was at 98.2, May 2019 100.0, July 2018 97.9. “Consumer sentiment remained largely unchanged in early July from June, remaining at quite favorable levels since the start of 2017.” UMichigan PR link.
***Thursday, July 18:
Boeing(PBR28) to record an after-tax charge of $4.9 billion ($8.74 per share) in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays, charge will result in a $5.6 billion reduction of revenue and pre-tax earnings in the quarter. $BA PR link.
Qualcomm(PBR130) to appeal $272 million fine from European Commission’s Directorate General for Competition, after a 10-year investigation, issued a finding that Qualcomm engaged in predatory pricing practices for some sales of three cellular baseband chipsets to two customers during a few calendar quarters between 2009 and 2011. $QCOM PR link.
iHeartMedia(PBR454) moves from OTC, starts trading as NASDAQ: IHRT. $IHRT PR link.
IDEX(PBR819) acquires Sweden based Velcora Holding AB and its Roplan and Steridose businesses from FSN Capital Partners for around $137 million. $IEX PR link.
Hovnanian(PBR892) receives notification from the New York Stock Exchange that Hovnanian is not in compliance with the continued listing standard, market capitlization has averaged $49.5 million over past 30 days, needs to be at $50 million, will submit a plan to show it can be in compliance within the 18 month cure period. $HOV PR link.
Red Robin(PBR979) confirms receipt of a second unsolicited conditional proposal from activist investor Vintage Capital Managementto acquire all of the outstanding common shares of Red Robin for $40.00 per share in cash. $RRGB PR link.
Chico’s FAS(PBR875) has new organizational structure, appoints Board member and interim CEO Bonnie Brooks to President/CEO. $CHS PR link.
The Federal Reserve Bank of Philadelphiasays the 3rd District July 2019 Manufacturing General Business Indicator is at +21.8, June 2019 was at +0.3, May 2019 +16.6, July 2018 +24.3. “Most of the survey’s future activity indexes increased, suggesting improved optimism about growth for the next six months.” PhillyFed PR link.
The Conference Board says the US Preliminary June 2019 Leading Economic Index(2016=100) is at 111.5, May 2019 was at 111.8, April 2019, June 2018 110.2. “For the first time since late 2007, the yield spread made a small negative contribution. As the US economy enters its eleventh year of expansion, the longest in US history, the LEI suggests growth is likely to remain slow in the second half of the year.” TCB PR link.
***Wednesday, July 17:
Amazon(PBR5) members worldwide buy more than 175 million items throughout Prime Day, surpasses Black Friday and Cyber Mondaycombined. $AMZN PR link.
Amazon(PBR5) to be investigated by The European Commission to assess whether Amazon’s use of sensitive data from independent retailers who sell on its marketplace is in breach of EU competition rules. $AMZN PR link.
CVS Health(PBR8) starts clinical trial designed to evaluate the safety and efficacy of the HemoCare Hemodialysis System for administration of home hemodialysis. $CVS PR link.
Merck(PBR70) gets US FDA approval for RECARBRIO™ (imipenem, cilastatin, and relebactam) for the treatment of adults with Complicated Urinary Tract and Complicated Intra-Abdominal Bacterial Infections shere limited or no alternative treatment options are available. $MRK PR link.
Kohl’s(PBR152) is hiring for 500 stores for back-to-school positions, 3,000 associates for all stores nationwide. $KSS PR link.
Netflix(PBR192) 2Q19 US streaming subscibers are at 60.10 million members, down from 1Q19 60.23 million, 2Q19 international streaming subscribers at 91.46 million, 1Q19 was 88.63 million, forecasting gains in 3Q19. $NFLX PR link.
Corning(PBR268) authorizes new $5 billion share repurchase program. $GLW PR link.
The US Dept of Commerce/HUD says the US Preliminary June 2019 Building Permits Issued Annual Rate-Private Housing is at 1,220,000 units, -6.1% from May 2019, -5.6% from June 2018. USDOC PR link.
The US Federal Reserve releases the Beige Book for data through 07/08/19. “The outlook generally was positive for the coming months, with expectations of continued modest growth, despite widespread concerns about the possible negative impact of trade-related uncertainty.” USFed PR link.
***Tuesday, July 16:
McDonald’s(PBR122) adds DoorDash as US McDelivery Partner, starting with Houston, TX, area pilot on 07/29/19. $MCD PR link.
BB&T(PBR239) and SunTrust Banks(PBR294)to become Truist Financial Corporation upon merger, Truist Bank Community Benefits Plan will lend or invest $60 billion to low- and moderate-income (LMI) borrowers and in LMI communities over a three-year period from 2020 to 2022. $BBT PR link.
Moody’s(PBR571) to sell its global knowledge process outsourcing services provider Moody’s Analytics’ Knowledge Services (MAKS)business to European private equity firm Equistone Partners Europe Limited, $300 million proceeds to be used for stock repurchase program, to close by 12/31/19. $MCO PR link.
Prologis(PBR768) to acquire 37.5 million sf operating portfolio comprising 236 properties REIT firm Industrial Property Trust‘s wholly owned real estate assets for approximately $3.99 billion cash, including the assumption and repayment of debt, to close by 03/31/20. $PLD PR link.
Adtalem Education(PBR985) President/CEO Lisa Wardell elected to additional role of Chairman, succeeds James White who remains on the Board. $ATGE PR link.
The US Dept of Labor says the US Preliminary June 2019 Import Prices are -0.9%, May 2019 was +0.0%, April 2019 +0.2%, June 2018 +0.0%, Last 12 Months -2.0%; US Preliminary June 2019 Export Prices are -0.7%, May 2019 were -0.2%, April 2019 +0.1%, June 2018 +0.2%, Last 12 Months -1.6%. USDOL PR link.
The US Dept of Commerce/Census says the US Preliminary May 2019 Total Sales-Manufacturers was at $504.3 billion, Retailers$453.7 billion, Wholesalers $503.4, Total Sales$1.461 trillion, +0.2% from April 2019, +1.5% from May 2018. USDOC PR link.
The US Dept of Commerce/Census says the US Advance June 2019 Retail Trade-Retail is at $455.4 billion, Food Services and Drinking Places $64.5 billion, Total Retail $519.9 billion, +0.4% from May 2019, +3.4% from June 2018. USDOC PR link.
The US Federal Reserve says the US Preliminary June 2019 Total Manufacturing Industry % of Capacity Utilization is at 77.9%, May 2019 was at 78.1%, April 2019 77.9%, June 2018 77.8%, June 2019 Capacity Growth Over Previous Year is at +2.1%. USFED PR link.
The Natl Assn of Home Builders/Wells Fargo US Preliminary July 2019 Housing Market Composite Index(>50=more builders view conditions as good than poor) is at 65, June 2019 was at 64, May 2019 66, July 2018 68. “Builders report solid demand for single-family homes. However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes… ” NAHB/WF PR link.
***Monday, July 15:
American Airlines(PBR65) says it remains confident the Boeing(PBR28) 737 MAX airplane will be recertified by the end of the year, cancelling all flights on the MAX through 11/02/19, 115 flights/day affected. $AAL PR link.
AbbVie(PBR91) has acquired Seattle, WA based privately held biopharmaceutical company focused on novel approaches to target the STING (STimulator of INterferon Genes) pathway for the treatment of cancer Mavupharma, terms not disclosed. $ABBV PR link.
Gilead Sciences(PBR132) and Galapagos NV (Euronext & NASDAQ: GLPG) enter into 10 year global research and development collaboration, Gilead to make $3.95 billion upfront payment and $1.1 billion equity investment. $GILD PR link.
Vistra Energy(PBR330) completes $378 million plus the assumption of net debt of approximately $108 million acquisition of Canada based residential electricity provider Crius Energy Trust (TSX: KWH.UN). $VST PR link.
Blackstone(PBR424) to acquire San Francisco, CA based performance marketing platform for in-app video advertisements on mobile devices provider Vungle, used by publishers of more than 60,000 mobile apps worldwide, to close by end of 2019, terms not disclosed. $BX PR link.
Crane(PBR686) is ceasing its efforts to acquire CIRCOR International(NYSE: CIR) and will not extend its $48 per share tender offer scheduled to expire on 07/19/19. $CR PR link.
Thor Industries(PBR360) Co-Founder Peter Orthwein to resign as Executive Chairman on 07/31/19, will remain on Board with title Chairman Emeritus, new Chairman to be selected by 07/31/19. $THO PR link.
The Federal Reserve Bank of New York says the Empire State July 2019 Manufacturing Index is at +4.3, June 2019 was at -8.6, May 2019 +17.8, July 2018 +22.0. “Indexes assessing the six-month outlook indicated that firms were fairly optimistic about future conditions.” NYFED PR link.
FTI Consulting(PBR885) expects US online retail sales of $575 billion in 2019, a 12.3% increase over $513 billion in 2018, compares to a 14.2% increase in 2018, when the market grew from $450 billion and topped $500 billion for the first time, and a 15.6% increase in 2017, Amazon(PBR5) to have 43% market share in 2019, to top 50% in 2024. $FCN PR link.
***Friday, July 12:
The PBRMarketTools US Stock Exchanges Recap for Week 28 of 2019 ending 07/12/19:
DJIA ends Week 28 at record 27,332.03, +1.52% from last Friday, +2.75% MTD/QTD, +17.17% YTD, +0.00% from record 27,332.03 set 07/12/19.
NASDAQ ends Week 28 at record 8,244.14, +1.01% from last Friday, +2.97% MTD/QTD, +24.25% YTD, +0.00% from record 8,244.14 set 07/12/19.
SPX ends Week 28 at record 3,013.77, +0.78% from last Friday, +2.45% MTD/QTD, +20.22% YTD, +0.00% from record 3,013.77 set 07/12/19.
The Week 28 News Summary: There was very little mention and apparently no movement involving international trade during the week. Most of the early week’s news revolved around the US Women’s Soccer Team winning the World Cup. But then economic news took front and center midweek with Federal Reserve Chairman Powell testifying before Congress during which he strongly signaled that short term federal funds rates were likely to be cut at the end of July meeting. The Stock Market Bear had a good Monday because it was felt by many that the good employment report from the previous week probably made a rate cut unlikely. But with Chairman Powell’s statement it was like the running of the bulls in Pamplona, Spain, and The Stock Market Bull took over big time, winning Week 28 3-0, with all 3 major US stock exchanges closing at record highs.
The Week 28 YTD tally is:
The Stock Market Bull: 15 weeks
The Stock Market Bear: 7 weeks
Mixed Results: 6 weeks
Ford(PBR12) and Volkswagen AG, which is investing $2.6 billion, are expanding their global alliance to include electric vehicles, and will collaborate with self-driving system developer Argo AI to introduce autonomous vehicle technology in the US and Europe. $F PR link.
Starbucks(PBR114) opens its first Starbucks Now express retail format store in China, located in the financial district of Beijing, integrates Starbucks physical and digital customer and delivery drivers touchpoints. $SBUX PR link.
AFLAC(PBR136) to acquire Tampa, FL-based 120 employees Argus Holdings, LLC and its subsidiary Argus Dental & Vision, services nearly one million dental and vision members, providing benefits management solutions to Medicare Advantage, Medicaid, and Children’s Health Insurance Program (CHIP) carriers, to close in 4Q19, terms not disclosed. $AFL PR link.
Campbell Soup(PBR340), as part of its plan to divest its international businesses, to sell its Denmark based 400 employees $157 million revenues in the last 12 months baked snacks unit Kelsen Group to a Belgian based Ferrero affiliated company for $300 million, to close in 1Q20. $CPB PR link.
Hillenbrand(PBR927) to acquire Milacron Holdings(NYSE: MCRN), which manufactures, distributes, and services engineered and customized systems in the approximately $30 billion plastics technology and processing industry, as well as fluid technologies and processing systems, for about $2 billion cash and stock, includes net debt of approximately $686 million, to close in 1Q20. $HI PR link.
Tower Intl(PBR952) to be acquired by private equity firm KPS Capital Partners portfolio company Autokiniton Global Group, a leading North American supplier of metal-formed components and complex assemblies to the automotive industry, for $31/share, around $900 million cash, a 70% premium to Tower’s 07/11/19 closing stock price, includes debt and pension related liabilities, to close by 10/31/19. $TOWR PR link.
Fred’s(PBR983 $FRED) to close another 129 retail stores, has closed over 300 stores, will have 80 left. MarketWatch PR link.
The US Dept of Labor says the US Preliminary June 2019 Producer Price Index Total Final Monthly Demand was +0.1%, May 2019 was +0.1%, April 2019 +0.2%, June 2018 +0.3%; June 2019 Total Last 12 Months was at +1.7%, May 2019 +1.8%, April 2019 +2.2%, June 2018 +3.3%. USDOL PR link.
***Thursday, July 11:
Amazon(PBR5) to invest $700 million for upskill training for 100,000 of its US employees, a third of its US employees, by 2025. $AMZN PR link.
Kroger(PBR20) and Ocado (LSE: OCDO), one of the world’s largest dedicated online grocery retailers, to build its 2nd of 20 planned new high-tech customer fulfillment centers, to be in Forest Park, GA, a $55 million investment, will create 400+ new jobs, to be operational in 2021. $KR PR link.
Colgate-Palmolive(PBR198) to acquire the global anti-aging skin care brand focused primarily on facial care Laboratoires Filorga Cosmétiques (Filorga) Skin Care Business for an equity purchase price of approximately $1.690 billion, to close in 3Q19. $CL PR link.
Agilent Technologies(PBR533) to acquire privately-owned global designer, manufacturer and distributor of life science instrumentation BioTek Instruments for $1.165 billion, to close by 10/31/19. $A PR link.
Crane(PBR688 $CR) cash tender offer to to acquire CIRCOR International(NYSE: CIR) from $45/share to $48/share is rejected by CIRCOR, says it substantially undervalues the company and is low-value, highly conditional and opportunistic. CIRCOR PR link.
Kennametal(PBR840) to close facilities in Essen and Lichtenau as well as its distribution center in Neunkirchen, all in Germany, also to close its manufacturing facility in Irwin, PA, part of restructuring program, is also planning modernization investments in other Kennametal locations in Germany. $KMT PR link.
Babcock & Wilcox(PBR1000) to do 1:10 reverse stock split, effective at market opening on 07/24/19, will allow BW to regain compliance with the NYSE’s continued minimum price per share listing standards, common stock symbol to remain BW. $BW PR link.
Gilead Sciences(PBR132) hires Christi Shaw as CEO of its Santa Monica, CA based cancer immunotherapies biopharmaceutical company Kite. $GILD PR link.
The US Dept of Treasury says the June 2019 Federal Government Receipts were $334.0 billion, Outlays $342.4 billion, for a Deficit of $8.5 billion; YTD(9 months) Receipts were $2.609 trillion, YTD Outlays $3.356 trillion, YTD Deficit $747.1 billion, June 2018 YTD Deficitwas $607.1 billion. USTreasury PR link.
The US Dept of Labor says the US Preliminary June 2019 Average Current Earnings/Hour is at $27.90, Average Hours Worked/Week at 34.4, for an Average Weekly Wage of $959.76, +0.2% from May 2019, +2.8% from June 2018. USDOL PR link.
The US Dept of Labor says the US June 2019 Consumer Price Index-All Items is at +0.1%, May 2019 was at +0.1%, April +0.3%, June 2018 +0.1%, Last 12 Months(Unadjusted) +1.6%. USDOL PR link.
***Wednesday, July 10:
Arthur J Gallagher(PBR428) acquires Bartonville, TX based BluePeak Advisors, assists health plans, employers, pharmacy benefit managers, pharmaceutical companies and other health care alliance companies with Medicare and Medicaid operational and compliance issues across the US, terms not disclosed. $AJG PR link.
American Eagle Outfitters(PBR610) authorizes additional 30 million shares repurchase program, balance is now around 37.4 million shares, expires 02/03/24, stock price closed at $16.70 on 07/10/19. $AEO PR link.
Brinker Intl(PBR713) enters into a letter of intent to acquire 116 Chili’s® Grill & Bar restaurants, with annual revenues of around $300 million, from its 14-year franchisee, ERJ Dining, terms not disclosed, to close by 09/30/19. $EAT PR link.
Hill-Rom(PBR760) to sell certain surgical consumable products and related assets to an affiliate of Audax Private Equity for $170 million cash, to close by 09/30/19. $HRC PR link.
KKR(PBR834) to sell majority stake in Europe based 50,000 employees in 35 countries and enterprise value of around $2.7 billion Webhelp to Groupe Bruxelles Lambert, to close in 4Q19. $KKR PR link.
The US Dept of Commerce/Census says the US Preliminary May 2019 Wholesale Sales-Durables was at $242.0 billion, Non-Durables$261.4 billion, Total $503.4 billion, +0.1% from April 2019, +0.4% from May 2018. USDOC PR link.
The Federal Open Market Committee Minutes for the 06/18-19/19 Meeting are released. “With regard to the outlook for monetary policy beyond this meeting, nearly all participants had revised down their assessment of the appropriate path for the federal funds rate over the projection period in their SEP submissions, and some had marked down their estimates of the longer-run normal level of the funds rate as well.” FOMC PR link.
***Tuesday, July 9:
Apple(PBR3) upgrades MacBook Air with student price of $999 and MacBook Pro for student price of $1,199. $AAPL PR link.
Alphabet(PBR15)’s Google Cloud unit to acquire provider of scalable, enterprise file storage for the cloud Elastifile, terms not disclosed. $GOOG PR link.
IBM(PBR37) completes $190.00/share, $34 billion acquisition of global open source cloud software provider Red Hat(PBR686). $IBM PR link.
Cisco(PBR61) to acquire designer and manufacturer of high-speed, optical interconnect technologies Acacia Communications for $70.00/share, around $2.6 billion cash, to close by 07/31/20. $CSCO PR link.
T-Mobile US(PBR68 $TMUS) to replace Red Hat(PBR686), acquired today by IBM(PBR37), on the S&P 500 Index starting 07/15/19. S&P Dow Jones Indices PR link.
Macy’s(PBR113) collaborates with Dick’s Sporting Goods(PBR350) and Scotts Miracle-Gro(PBR796) to unveil its second experiential concept: Outdoor STORY within 36 Macy’s stores, through 09/19. $M PR link.
Marriott Intl(PBR146) to be fined $124 million for the Starwood data breach announced on 11/30/18 according to the UK Information Commissioner’s Office, Marriott to respond and vigorously defend its position. $MAR PR link.
Alliance Data(PBR380) authorizes new $1.1 billion share repurchase program through 06/30/20, previous authorization has been used up. $ADS PR link.
Tetra Tech(PBR744) completes 55 pence/share acquisition of UK-based 30 locations globally 1,600 employees consulting and engineering firm focused on water, environment and infrastructure services WYG plc(LSE: WYG). $TTEK PR link.
Northrop Grumman(PBR101) elects President/CEO Kathy J. Warden to also be its Chairman, effective 08/01/19, Chairman Wes Bush to retire from Board on 07/31/19. $NOC PR link.
The US Dept of Labor says the US Preliminary May 2019 Total Job Openings-Private were at 6,640,000, Government 683,000, Total7,323,000, -0.7% from April 2019, +2.8% from May 2018. USDOJ PR link.
CoreLogic says the US April 2019 Housing Mortgages 30 or More Days Delinquent was at 3.6%, March 2019 was at 4.0%, April 2018 4.3%. “The continued improvement in overall mortgage performance bodes well for the health of the U.S. market in 2019.” CoreLogic PR link.
***Monday, July 8:
CBRE(PBR141) acquires longtime 100 professionals, 5.5 million sf portfolio, greater Omaha, NE, affiliate CBRE/MEGA, terms not disclosed. $CBRE PR link.
Group 1 Automotive(PBR261) enters New Mexico market with acquisition of only BMW/MINI dealerships in the state in Albuquerque and Santa Fe, includes BMW Motorrad franchises, its first dealership for motorcycles. $GPI PR link.
TreeHouse Foods(PBR479) to sell its Snacks Division, to generate around $670 million in revenues in 2019, to 17,000 employees in 150 locations worldwide Atlas Holdings for $90 million. $THS PR link.
Perrigo(PBR541) completes divestiture of its Animal Health business to PetIQ (NASDAQ: PETQ) for $185 million. $PRGO PR link.
Ashland(PBR641) sale of its Composites business and butanediol facility in Marl, Germany, to INEOS Enterprises for $1.1 billion to close in late summer 2019, has been amended to exclude maleic business. $ASH PR link.
Crane(PBR688) increases cash tender offer to to acquire CIRCOR International(NYSE: CIR)from $45/share to $48/share, a 57% premium over the undisturbed market close on 05/20/19, extends the Offer and withdrawal rights until midnight, New York City time, on 07/19/19. $CR PR link.
Vista Outdoor(PBR883) sells its Savage Arms and Stevens firearms brands to a financial buyer for $170 million. $VSTO PR link.
The US Federal Reserve says the US Preliminary May 2019 Total Consumer Debt-Revolving is at $1.072 trillion, Non-Revolving$3.016 trillion, Total $4.088 trillion, +0.4% from April 2019, +2.0% YTD(5 months), +5.0% from May 2018. USFed PR link.
FannieMae(PBR21) says the US June 2019 Home Purchase Sentiment Index is at 91.5, May 2019 was at 92.0, April 2019 88.3, June 2018 90.7. “Growing expectations that mortgage rates will remain steady suggest improved stability for housing affordability and helped keep the HPSI relatively flat this month, despite modest declines in other components…” $FNMA PR link.
***Friday, July 5:
The PBRMarketTools US Stock Exchanges Recap for Week 27 of 2019 ending 07/05/19:
DJIA ends Week 27 at 26,922.12, +1.21% from last Friday/MTD/QTD, +15.41% YTD, -0.16% from record 26,966.00 set 07/03/19.
NASDAQ ends Week 27 at 8,161.79, +1.94% from last Friday/MTD/QTD, +23.01% YTD, -0.10% from record 8,170.23 set 07/03/19.
SPX ends Week 27 at 2,990.41, +1.65% from last Friday/MTD/QTD, +19.29% YTD, -0.18% from record 2,995.82 set 07/03/19.
The Week 27 YTD tally is:
The Stock Market Bull: 14 weeks
The Stock Market Bear: 7 weeks
Mixed Results: 6 weeks
The Week 27 News Summary: On the international front President Trump and China’s Chairman Xi agreed to re-open trade talks, President Trump met N Korea’s leader Kim Jong-un at the N/S Korea DMZ, briefly crossed into N Korea, than had a casual conversation in S Korea, during which they agreed to re-open talks about eliminating N Korea’s nuclear weapons. ADP issued a weak jobs report, but on Friday the US Dept of Labor issued a much stronger jobs report. As a result there are concerns the Federal Reserve may not cut short term federal funds rates. Thursday was a day off for the US stock exchanges in celebration of Independence Day. President Trump presided over a gathering honoring the various US Armed Forces. The Stock Market Bull had such a strong start to the week, including records on all 3 major US exchanges on 07/03/19, that he took not only Thursday off, but Friday as well, and The Stock Market Bear took advantage. But The Stock Market Bull easily won Week 27 3-0 to start the 2nd half of 2019.
Carlyle Group(PBR830) and Bain Capital Private Equity joint venture to launch a voluntary public takeover offer to all shareholders of OSRAM Licht AG, a global lighting technology group, offering a wide portfolio of lighting and photonics products deployed in automotive, industry, mobile and infrastructure end market applications, for around $39.80/share, a 27.7% premium over the last month, $3.87 billion equity value, Management and Supervisory Board of OSRAM fully support the offer. $CG PR link.
The US Dept of Labor says the US June 2019 Civilian Employment is at 157,005,000, +247,000 from May 2019, +1,413,000 from June 2018. June 2019 Unemployment is at 5,975,000 people, +88,000 from May 2019, -561.000 from June 2018, June 2019 Unemployment Rate is at 3.7%, May 2019 was at 3.6%, June 2018 4.0%. USDOL PR link.
***Thursday, July 4:
***US Independence Day.
***US Stock Exchanges Closed.
***”We hold these truths to be self-evident…”
***Remembering the hopes and dreams
***of our forefathers.
***Wednesday, July 3:
CBRE(PBR141)’s Trammell Crow unit to acquire London, UK based multifamily residential properties developer with $1.66 billion in projects in the pipeline Telford Homes Plc (AIM:TEF) for $4.41/share, $336.9 million cash, to close in 3Q19. $CBRE PR link.
Beacon Roofing(PBR450) hires Julian G. Francis as President /CEO and to Its Board, to be effective on or about 09/01/19. $BECN PR link.
The US Dept of Commerce says the US Preliminary May 2019 International Trade Exports were at $210.6 billion, Imports $266.2 billion, for a May 2019 Deficit of $55.6 billion, April 2019 was at $51.3 billion, May 2018 $44.3 billion; YTD(5 months) Exports were at $1.045 trillion, YTD Imports $1.307 trillion, YTD Deficit$261.5 billion, May 2018 YTD Deficit was $246.3 billion. USDOC PR link.
The US Dept of Commerce says the US Preliminary May 2019 Manufacturers New Orders-Durable Goods was at $243.5 billion, Non-Durable Goods $250.1 billion, Total$493.6 billion, -0.7% from April 2019, -1.0% from May 2018; Total New Orders 2019 YTD(5 months) is at $2.491 trillion, +1.1% from 2018 YTD. USDOC PR link.
ADP(PBR235) says the US Preliminary June 2019 Change in Private Sector Employmentwas -23,000 from Small Businesses(1-49 employees), +60,000 from Mid-Size Businesses(50-499), and +65,000 from Large Businesses(500 or more), Total +102,000, +148.8% from May 2019, -53.9% from June 2018. $ADP PR link.
The Institute for Supply Management says the US June 2019 Non-Manufacturing Index(>50% economy growing) is at 55.1%, May 2019 was at 56.9%, April 2019 55.5%, June 2018 58.7%. “Although the non-manufacturing sector’s growth rate dipped in June, the sector continues to reflect strength. The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs.” ISM PR link.
IHS Markit says the US June 2019 Composite PMI Output Index is at 51.5, May 2019 was at 50.9, April 2019 53.0, June 2018 56.2. IHS Markit PR link.
Automotive News says US June 2019 Light Vehicle Sales were at 1,513,574 vehicles, -2.6% from June 2018; Average Transaction Pricewas at $34,036, +3.1% from June 2018. Automotive News PR link.
***Tuesday, July 2:
NGL Energy(PBR119) completes $890 million acquisition of all of the assets of Mesquite Disposals Unlimited, combines them with NGL’s Water Solutions business. $NGL PR link.
UGI Corp(PBR388) Energy Services subsidiary to acquire Columbia Midstream Group of a subsidiary of TC Energy Corporation (NYSE: TRP) for around $1.275 billion, operations primarily in the Appalachian Basin, to close in 4Q19. $UGI PR link.
Alliance Data(PBR380) completes $4.4 billion sale of its 8,000 associates in 87 offices worldwide brand marketing Epsilon business to France based global marketing, communication, and digital transformation provider Publicis Groupe. $ADS PR link.
NCR(PBR414) has acquired online and mobile banking for the Large Financial Institution market provider D3 Technology, terms not disclosed. $NCR PR link.
Perrigo(PBR541) completes $750 million acquisition of privately-held largest private label oral care company globally with 650 employees and $287 million in revenues in 2018 Ranir Global Holdings. $PRGO PR link.
The PurdueU/CME Group June 2019 Ag Economy Barometer Composite Index is at 126, May 2019 was at 101, April 2019 115, June 2018 143. PurdueU PR link.
***Monday, July 1:
Bristol-Myers Squibb(PBR131) completes $1.6 billion sale of French pharmaceutical company UPSA consumer health business to Japan based Taisho Pharmaceutical Co. $BMY PR link.
Whirlpool(PBR143) completes $1.08 billion sale of its manufacturer of hermetic compressors for refrigeration Embraco to Kyoto, Japan-based Nidec Corporation. $WHR PR link.
Performance Food(PBR169) to acquire Rosemont, IL based $6+ billion in annual net revenues second largest privately held US foodservice distributor Reinhart Foodservicefrom Reyes Holdings for $2.0 billion, to close by end of 2019. $PFGC PR link.
Applied Materials(PBR174) to acquire Tokyo, Japan based provider of high-productivity batch processing systems and services for memory, foundry and logic Kokusai Electric from from global investment firm KKR(PBR834) for $2.2 billion cash, to close within 12 months. $AMAT PR link.
Jones Lang LaSalle(PBR184) completes $49.16/share stock & cash deal with enterprise value of $2 billion acquisition of commercial real estate capital markets intermediary provider HFF(NYSE: HF). $JLL PR link.
Coty(PBR326) announces 4 year Turnaround Plan to drive substantial improvement in Consumer Beauty while also further optimizing Luxury and Professional Beauty, changes on the executive team effective 01/01/20, $600 restructuring charge over the 4 years. $COTY PR link.
Genworth Financial(PBR339) sale to China Oceanwide for $5.43/share, $2.7 billion cash close extended from 06/30/19 to 11/30/19, the 11th waiver, to get additional US, China, Canada and other regulatory approvals, also looking at possible sale of Genworth MI Canada to speed up the approval process. $GNW PR link.
Frontier Communications(PBR345) adopts a shareholder rights plan designed to protect the availability of Frontier’s net operating loss carryforwards. $FTR PR link.
Berry Global(PBR379) completes $6.5 billion acquisition, includes $2.2 billion debt, of RPC Group plc, creates a leading global supplier of valued-added protective solutions and one of the world’s largest plastic packaging companies with $13 billion in annual revenues. $BERY PR link.
H&R Block(PBR711) completes $405 million acquisition of Toronto, Ontario based 400,000 small businesses globally monthly financial solutions platform provider Wave Financial. $HRB PR link.
Blackstone(PBR424) completes conversion from a publicly traded partnership to a corporation. $BX PR link.
Cedar Fair(PBR977) completes $261 million acquisition of Schlitterbahn Waterparks and Resorts in New Braunfels, TX, and Galveston, TX, includes right to acquire an additional 40 acre property in Kansas City, KS, for $6 million cash for future development. $FUN PR link.
The US Dept of Commerce/Census says the US Preliminary May 2019 Construction Spending Annual Rate-Residential is at $505.4 billion, Non-Residential $788.5, Total Construction Spending $1.294 trillion, -0.8% from April 2019, -2.3% from May 2018. USDOC PR link.
The Institute for Supply Management says the US June 2019 Manufacturing PMI Index(>50=Economy expanding) is at 51.7%, May 2019 was at 52.1%, April 2019 52.8%, June 2018 60.2%. “Respondents expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed… ” ISM PR link.
IHS Markit says the US June 2019 Manufacturing PMI Index is at 50.6, May 2019 was at 50.5, April 2019 52.6, June 2018 55.4. IHS Markit PR link.
***Friday, June 28:
The PBRMarketTools US Stock Exchanges Recap for the End of June and Week 26 of 2019 ending 06/28/19:
DJIA ends June 2019 and Week 26 at 26,599.96, -0.45% from last Friday, +7.19% MTD, +2.59% QTD, +14.03% YTD, -0.85% from record 26,828.39 set 10/03/18.
NASDAQ ends June 2019 and Week 26 at 8,006.24, -0.32% from last Friday, +7.42% MTD, +3.58% QTD, +20.66% YTD, -1.93% from record 8,164.00 set 05/03/19.
SPX ends June 2019 and Week 26 at 2,941.76, -0.29% from last Friday, +6.89% MTD, +3.79% QTD, +17.35% YTD, -0.42% from record 2,954.18 set 06/20/19.
The Week 26 YTD tally is:
The Stock Market Bull: 13 weeks
The Stock Market Bear: 7 weeks
Mixed Results: 6 weeks
The Month 6 YTD tally is:
The Stock Market Bull: 5 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
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PBRMarketTools.com provides news, data, and analysis on 1,000 of the largest publicly held companies with primary operations in the US. The data and analysis is included in The PBR1000 Monthly Snapshots, an MS-Excel workbook with 15 snapshot worksheets, 27 rankings, and over 200 fields of data and information on each company. Click here to find out more!
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