The PBR1000 for November: Who Will Live Here In January?
This is the most recognizable home in the US, and in a bizarre year of many twists, turns and controversies this month of November will determine who gets to live in it for the next 4 years.
The November 2020 breaking news items of interest for The PBR1000 follow with the most current date first.
***Monday, November 30
The PBRMarketTools US Stock Exchanges Recap for November ending 11/30/20: DJIA ends November at 29,638.64, -0.91% from last Friday, +11.84% MTD, +6.68% QTD, +3.86% YTD, -1.36% from record 30,046.24 set 11/24/20. NASDAQ ends November at 12,198.74, -0.06% from last Friday, +11.80% MTD, +9.23% QTD, +35.46% YTD, -0.06% from record 12,205.85 set 11/27/20. SPX ends November at 3,621.63, -0.46% from last Friday, +10.75% MTD, +7.69% QTD, +12.10% YTD, -0.46% from record 3,638.35 set 11/27/20.
The November 2020 News Summary: At the start of the month the big headlines revolved around the US Presidential election, who would control the US Senate, and how the US House might change. On November 3rd citizens cast their votes. That night it appeared the election could go either way. This continued for a few days until finally it was clear that former VP Joe Biden had over 50% of the popular vote and the electoral votes needed by very slim margins in a few key states. This has resulted in several lawsuits filed and some recounts. The bottom line is that the Biden/Harris ticket is generally regarded as the winner. After some delays waiting for results of the lawsuits and recounts Joe Biden was officially declared President-Elect, and the transition process has begun. However, President Trump still feels there was significant voter fraud, continues the battle, and has not yet conceded, but has said he will accept the Electoral College results. For the US Senate the Republicans lost a seat to the Democrats. The result is that the US Senate has 50 Republicans, 46 Democrats, and 2 Independents who generally caucus with Democrats. The remaining 2 seats are from the State of Georgia where two special runoff elections are scheduled for January 5, 2021. At this time it would appear that the Republicans will probably win at least 1 seat, and maintain the slimmest of margins to maintain control in the US Senate. But there is still plenty of time and it is estimated that around $1 billion will be spent on the campaigns. For the US House the Democrats will maintain their majority, currently with 222 members(218 needed for a majority), the Republicans 207, with 6 seats still not decided or runoffs are scheduled. The feared civil unrest has been very minimal, the voter fraud allegations seem to be lacking evidence, and the general population seems ready to accept the Biden/Harris victory and move on. As the politics were generally settled down by the end of the month the Coronavirus Pandemic was escalating. As of today, Monday, 11/30/20, at 7:27PM Eastern US, the John Hopkins University CSSE unit says there are now 63,189,103 confirmed cases globally with 1,466,762 deaths, a monthly increase of 280,337. For the US it is 13,536,216 confirmed cases and 267,987 deaths, a monthly increase of 38,631. During the month Pfizer, Moderna, and AstraZeneca announced that their candidate vaccines have proven effective in Phase 3 studies and have applied for or are planning to apply for Emergency Use Authorization with the US Federal Drug Administration. If approved the vaccines could become available in late December/early 2021. The end of the month increases of cases requiring hospitalization are stretching healthcare facilities and team members, and there are concerns that cooler temperatures and traditional Thanksgiving and Christmas gatherings could create some super-spreader events. International trade issues still remain, especially between the US and China, nothing has been publicly stated on any progress. The UK is now trying to put together a trade deal with the European Union, a result of Brexit, but there are a lot of complications and details to work out. US economic news indicated a fragile moderate improvement as US businesses try to remain open. But weekly unemployment insurance claims have risen a little bit, but overall number of people on employment benefits are dropping. Benefits could almost disappear completely the day after Christmas unless Congress steps in and extends some programs. There is still a hope that the Congress might be able to pass a stimulus bill as well before the end of the year. With the general election over, the announcement of successful vaccine tests and the economy still showing it is recovering at a moderate pace the 3 major US stock exchanges exploded to have their best month in many decades, surpassing +10% for each. New record highs were established in each one. There were some significant ups and downs on a daily basis, but in the end The Stock Market Bull easily prevailed 3-0 in November, and guarantees that he will take the year in months won over The Stock Market Bear, who is now 2 months down. Stay safe, be alert, and have a blessed holiday season as much as is possible as a the strange and memorable year of 2020 finally comes to an end.
The YTD tally through November 2020 is:
The Stock Market Bull: 6 months
The Stock Market Bear: 4 months
Mixed Results: 1 month
ExxonMobil(PBR3 $XOM) says it expects capital and exploration investments of $16-$19 billion in 2021; $20 billion to $25 billion annually to 2025; certain dry gas assets removed from development plan; after-tax impairment of $17 billion to $20 billion. PR link.
Facebook(PBR47 $FB) to acquire omnichannel CRM platform that brings customer conversations from various channels together into a single-screen view provider Kustomer, terms not disclosed. PR link.
PPG(PBR205 $PPG) to acquire privately held Greensboro, NC-based 1,000 employees $600 million in revenues/2020 Ennis-Flint, a global manufacturer of coatings with a broad portfolio of pavement marking products, including paint, thermoplastics and other advanced traffic technologies, for approximately $1.15 billion, to close within the next few months. PR link.
Jacobs Engineering(PBR244 $J) to acquire a 65% majority stake in PA Consulting for enterprise value of $2.4 billion, remaining 35% to be owned by PA employees, PA has over 3,200 specialists globally in defence and security, consumer and manufacturing, government, health and life sciences, transport, energy and utilities, and financial services; to close by 03/31/21. PR link.
Alcoa(PBR297 $AA) to sell its rolling mill business, held by Alcoa Warwick, to Kaiser Aluminum for around $670 million, has 1,170 employees, produces 310,000 metric tons of flat rolled aluminum annually, to close in 1Q21. PR link.
Blackstone(PBR404 $BX) to acquire San Francisco, CA-based DCI, a pioneer in quantitative credit investing with approximately $7.5 billion in AUM across the global investment grade, high yield and emerging corporate credit markets, terms not disclosed. PR link.
S&P Global(PBR437 $SPGI) to acquire critical information, analytics and solutions for the major industries and markets that drive economies worldwide provider IHS Markit (NYSE: INFO) in an all stock transaction that values IHS Market at $44 billion, includes $4.8 billion in debt, to close in 2H2021. PR link.
ServiceNow(PBR674 $NOW) to acquire Element AI, will bring expertise in applying modern AI to text and language, chat, images, search, question response, and summarization and will accelerate AI innovation natively in the Now Platform, to close in early 2021, terms not disclosed. PR link.
Modine Manufacturing(PBR900 $MOD) hires Neil D. Brinker as President/CEO, effective 12/01/20, succeeds Interim CEO Mick Lucareli who will remain CFO. PR link.
The US Dept of the Treasury says the 11/26/20 National Debt-Public is at $21.2 trillion, Intragovernmental $6.1 trillion, Total US Debt $27.3 trillion, 10/29/20 was at $27.1 trillion, 09/30/20 $27.0 trillion, 11/29/19 $23.8 trillion. PR link.
The US Federal Reserve Bank of Chicago says the Preliminary October 2020 US 7th District Midwest Economy Index is at +3.15, September 2020 was at +4.34, August 2020 +1.55, October 2019 -0.52. “Index suggests slower, but still well-above-trend Midwest growth through October.” PR link.
Market News International says the November 2020 MNI Chicago Business Barometer (>50=economy expanding) is at 58.2, October 2020 was at 61.1, September 2020 62.4, November 2019 46.3. “The index now stands at the lowest level since August but remains in expansion.” PR link.
The American Automobile Assn says the 11/30/20 US Average for a Gallon of Gas is at $2.127, on 10/30/20 it was at $2.142, 09/30/20 $2.188, 11/29/19 $2.587. PR link.
***Friday, November 27
The PBRMarketTools US Stock Exchanges Recap for Week 48 of 2020 ending 11/27/20:
DJIA ends Week 48 at 29,010.37, +2.21% from last Friday, +12.86% MTD, +7.66% QTD, +4.81% YTD, -0.45% from record 30,046.24 set 11/24/20.
NASDAQ ends Week 48 at record 12,205.85, +2.96% from last Friday, +11.86% MTD, +9.30% QTD, +36.03% YTD, +0.00% from record 12,205.85 set 11/27/20.
SPX ends Week 48 at record 3,638.35, +2.27% from last Friday, +11.27% MTD, +8.19% QTD, +12.62% YTD, +0.00% from record 3,638.35 set 11/27/20.
The Week 48 of 2020 News Summary: The Coronavirus Pandemic was the top story this week, with concerns that there continues to be an uptick in cases and deaths worldwide. As of today, Friday, 11/27/20, at 11:26AM Eastern US, the John Hopkins University CSSE unit says there are now 61,319,899 confirmed cases globally with 1,438,508 deaths, a weekly increase of 69,762, which is +13,873 from last Friday. For the US it is 12,949,862 confirmed cases and 264,037 deaths, a weekly increase of 10,155, which is -340 from last Friday. These are still high weekly numbers and healthcare facilities and team members are being stretched thin. On Monday AstraZeneca joined the list of candidate vaccines, Moderna and Pfizer are already manufacturing their candidates with the idea that the US FDA will grant them Emergency Use Authorization status. UPS is also ramping up its production of dry ice in preparation to ship and deliver vaccines that require significant cooling. There are more vaccine candidates worldwide in Phase 2 and 3 testing, and there is some optimism that vaccines will be available by year end or very early 2021. The US political news is starting to cool down and also ramp up. The US General Services Administration officially designated Joe Biden as President-Elect, transitioning is now being funded and implemented. President-Elect Biden is starting to announce some appointments, the most interesting one so far being former Federal Reserve Chair Janet Yellen as Secretary of the Treasury. President Trump has still not conceded the election, but lawsuits have not gone his way, some are still pending, and he has now stated that he will accept the Electoral College results. Opinions are now being expressed about how a Joe Biden presidency will affect international relations and trade, especially with China. The US economy continues to show growth, but at a moderate or nearly flat rate now, with concerns about the newest wave of the virus. Weekly Initial Jobless Claims were up again, but new home sales continue to be very strong. The US Federal Open Market Committee released the minutes of its 11/04-05/20 meeting, which also indicated a viewpoint of moderate growth with a concern about how the virus could affect the economy and how the lack of a stimulus program from Congress might further the delay of a full recovery and adversely affect millions of people. There is still a chance Congress could do something before the end of the year. The Stock Market Bull came out charging and confident the first 2 days of the week, The Stock Market Bear made a modest comeback on Wednesday, Thursday was a day off for US Thanksgiving, and Black Friday was an early close day with The Stock Market Bull taking a small edge on all 3 major exchanges. The DJIA established a new record on Tuesday and closed at over 30,000. NASDAQ and The S&P 500 closed the week at new records as well. After two weeks of close mixed results The Stock Market Bull is a clear 3-0 victor in Week 48 and clinches at least a tie for weeks won in 2020. Next Tuesday starts the final month of the year and there seems to be some optimism as vaccines become available to combat the pandemic and the US Presidential race dust hopefully continues to settle down more peacefully than some had expected. Time to cuddle up to your favorite device to do some online Christmas shopping for your loved ones!
The Week 48 of 2020 tally YTD is:
The Stock Market Bull: 23 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 7 weeks
Walt Disney(PBR49 $DIS) in its 10-K filing says “… the employment of approximately 32,000 employees primarily at Parks, Experiences and Products will terminate in the first half of fiscal 2021. Additionally, as of October 3, 2020, approximately 37,000 employees who are not scheduled for employment termination were on furlough as a result of COVID-19’s impact on our businesses.” PR link.
Delta Air(PBR66 $DAL), the Aeroporti di Roma and Hartsfield-Jackson Atlanta International Airport have joined in a first-of-its-kind trans-Atlantic COVID-19 testing program that will enable quarantine-free entry into Italy, to do trial starting 12/19/20. PR link.
Biogen(PBR219 $BIIB) and Sage Therapeutics(Nasdaq: SAGE) doing a global collaboration and license agreement to jointly develop and commercialize zuranolone (SAGE-217) for major depressive disorder (MDD), postpartum depression (PPD) and other psychiatric disorders and SAGE-324 for essential tremor and other neurological disorders; Sage will receive an upfront payment of $875 million and a $650 million equity investment in Sage, plus up to around $1.6 billion in potential milestone payments. PR link.
Ascena Retail(PBR500 $ASNAQ) has entered into an asset purchase agreement to sell its Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands assets to an affiliate of Sycamore Partners for $540 million, committed to also retaining a substantial portion of the retail stores and associates affiliated with these brands. PR link.
Tiffany(PBR590 $TIF) to hold a virtual special stockholder meeting on 12/30/20 to vote on amended and restated $135/share $16.2 billion acquisition by LVMH. PR link.
***Thursday, November 26
***US Thanksgiving Day.
***US Stock Exchanges Closed.
***Giving Thanks for our liberties, freedoms,
***food, shelter, and sharing the love
***of family and friends.
***Wednesday, November 25
ExxonMobil(PBR3 $XOM) says up to 300 positions will be impacted by the end of 2021 across Canadian affiliates, result of reorganizations, work-process changes, and impact of the COVID-19 pandemic. PR link.
ViacomCBS(PBR104 $VIAC) to sell the publishing business Simon & Schuster to Penguin Random House for $2.175 billion in cash, to close in 2021. PR link.
Marriott Intl(PBR151 $MAR) signs agreement with Magellan Development Group to introduce its iconic St. Regis Hotels & Resorts brand to Chicago, project is anticipated to include 191 hotel rooms and 393 branded residences within the 101-story building, is expected to welcome its first residents in 12/20 and hotel guests by 07/21. PR link.
JCPenney(PBR291 $JCPNQ) gets US Bankruptcy Court confirmation for Plan of Reorganization to create separate property holding companies comprising 160 of the Company’s real estate assets and all of its owned distribution centers, which will be owned and operated by JCPenney’s DIP and First Lien Lenders, to emerge from Chapter 11 in 1H21. PR link.
Intuit(PBR394 $INTU) gets US Dept of Justice approval for $7.1 billion in cash and stock acquisition of $1 billion in revenues Credit Karma, a consumer technology platform with more than 110 million members in the US, Canada and UK, Credit Karma to divest its Credit Karma Tax business to Square(PBR563) after acquisition is completed, to close after additional regulatory approvals. PR link.
T Rowe Price(PBR488 $TROW) plans to establish T. Rowe Price Investment Management as a separate US-based SEC-registered investment adviser, will have its own investment platform and veteran leadership, with more than 100 associates, including at least 85 investment professionals, plans to be in place in 2Q22. PR link.
Cleveland-Cliffs(PBR896 $CLF) gets US Federal Trade Commission clearance for around $1.4 billion acquisition of ArcelorMittal USA, on track to close in 12/20, will make Cleveland-Cliffs the largest flat-rolled steel producer in N America, with combined shipments of approximately 17 million net tons in 2019, will also be the largest iron ore pellet producer in N America, with 28 million long tons of annual capacity. PR link.
The US Dept of Commerce/BEA says the 3Q20 2nd Estimate US Gross Domestic Product Annual Rate of Change remains at +33.1%, the 3Q20 2nd Estimate Total GDP Annual Rate is at $21.2 trillion, 2Q20 was at $19.5 trillion, 1Q20 $21.6 trillion, 3Q19 $21.5 trillion. PR link.
The US Federal Open Market Committee releases the Minutes of its 11/04-05/20 meeting, in a wide ranging assessment says, among many observations, that “The staff continued to observe that the uncertainty related to the future course of the pandemic and its consequences for the economy was high. The staff also continued to view the risks to the economic outlook as tilted to the downside, with the latest data suggesting an increased probability of a resurgence in the disease.” PR link.
The US Dept of Labor says the 11/21/20 US 4 Week Moving Average Initial Unemployment Insurance Claims is at 748,500, 10/24/20 was at 787,750, 09/19/20 878,250, 11/23/19 219,750; the 11/14/20 4 Week Moving Average Total Insured Unemployment is at 6,615,250, 10/17/20 was at 9,053,250, 09/12/20 13,040,750, 11/16/19 1,680,500; 11/14/20 Insured Unemployment Rate is at 4.1%, 10/17/20 was at 5.3%, 09/12/20 8.6%, 11/16/29 1.1%. PR link.
The US Dept of Commerce/BEA says the Preliminary October 2020 US Total Personal Income Annual Rate is at $19.726 trillion, September 2020 was at $19.856 trillion, August 2020 $19.709 trillion, October 2019 $18.764 trillion. PR link.
The US Dept of Commerce/HUD says the Preliminary October 2020 US New Family Homes Sold Annual Rate is at 999,000 units, September 2020 was at 1,002,000, August 2020 1,001,000, October 2019 706,000; the October 2020 Median Price is at $330,600, September 2020 was at $331,600, August 2020 $321,300, October 2019 $322,400. PR link.
FreddieMac says the 11/25/20 US Weekly Average 30 Year Fixed Mortgage Rate is at 2.72% with 0.7 fees/points, 10/29/20 was at 2.81%, 09/24/20 2.90%, 11/27/19 3.68%. “Mortgage rates remain at record lows and while that has fueled a refinance boom, it’s been driven mainly by higher income borrowers. With about 20 million borrowers eligible to refinance, lower-and middle-income borrowers are leaving money on the table by not taking advantage of low rates.” PR link.
The US Energy Information Administration says the 11/20/20 US Crude Oil Stocks Inventories in Millions of Barrels are at 488.7, 10/23/20 was at 492.4, 09/25/20 492.4, 11/22/19 452.0. PR link.
The U of Michigan says the Final November 2020 US Consumer Sentiment Index is at 76.9, October 2020 was at 81.8, September 2020 80.4, November 2019 96.8. “… the November data were less optimistic than last month due to the resurgence in covid infections and deaths as well as partisan shifts due to the outcome of the presidential election… A delay in federal aid until next year would allow great harm and permanent damage to occur to many firms, local governments, and households.” PR link.
***Tuesday, November 24
JPMorgan Chase(PBR24 $JPM) agrees to pay a $250 million Civil Money Penalty to the US Comptroller of the Currency regarding past deficiencies in internal controls and internal audit for certain fiduciary activities, JPM has remediated the deficiencies. PR link.
Home Depot(PBR27 $HD) agrees to pay $17.5 million settlement with the attorneys general of 46 states and Washington DC over 2014 data breach that exposed the payment card information of approximately 40 million consumers nationwide. MA Atty General Office PR link.
UPS(PBR43 $UPS) Healthcare unit to aid in the massive distribution efforts for COVID-19 vaccines in the coming months, enhancements include producing up to 1,200 lbs. of dry ice per hour in its US facilities to support the storage and transportation of cold chain products, such as frozen vaccines, in accordance with manufacturer storage requirements, also allows UPS to make dry ice available for US and Canadian hospitals, clinics and other points of care requiring dry ice to store vaccines locally. PR link.
Carnival Corp(PBR153 $CCL)’s P&O Cruises has extended the pause in operations into April 2021 in response to the current uncertainty around European ports of call. PR link.
MGM Resorts(PBR241 $MGM)’s BetMGM sports betting and digital gaming business is selected by the NFL Pittsburgh Steelers as its first Gaming Partner, features fan-focused assets such as presenting sponsorship of the Steelers Kickoff pregame show, as well as team broadcast programming, digital marketing assets, and in-stadium promotions and signage. PR link.
Keurig Dr Pepper(PBR278 $KDP) to acquire from The Red River Beverage Group and The Made-Rite Co the manufacturing, sales and distribution rights to key KDP owned and licensed brands in 37 counties in east Texas and northern Louisiana, reaching 1.5 million consumers, moves iconic brands such as Canada Dry, A&W, 7UP, Sunkist, Snapple, CORE, and Bai into KDP’s company- owned direct-store-delivery (DSD) operations, beginning 02/21. PR link.
McCormick(PBR513 $MKC) to acquire the parent company of Cholula Hot Sauce®, a premium hot sauce brand that delivers authentic Mexican flavor with annual sales of around $96 million, from L Catterton, for $800 million in cash, to close by 12/31/20. PR link.
Camping World(PBR541 $CWH) to acquire Paul Sherry RV located in Piqua, OH, will re-brand as Camping World, terms not disclosed. PR link.
Dick’s Sporting Goods(PBR350 $DKS) Chairman/CEO Edward Stack to transition to Executive Chairman and remain Chief Merchant on 02/01/21, President Lauren Hobart to become President/CEO. PR link.
The Conference Board says the Preliminary November 2020 US Consumer Confidence Index(1985=100) is at 96.1, October 2020 was at 101.4, September 2020 101.3, November 2019 126.8. “Heading into 2021, consumers do not foresee the economy, nor the labor market, gaining strength. In addition, the resurgence of COVID-19 is further increasing uncertainty and exacerbating concerns about the outlook.” PR link.
The S&P CoreLogic Case-Shiller September 2020 US National Home Price Index(Jan2000=100) is at 226.80, August 2020 was at 224.20, July 2020 221.52, September 2019 212.05. “This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.” PR link.
The US Federal Reserve Bank of Philadelphia says the November 2020 Non-Manufacturing Current General Activity Index is at -15.9, October 2020 was at +16.0, September 2020 +8.0, November 2019 +20.5. “The future activity indexes suggest that respondents expect improvement at their firms and in the region over the next six months.” PR link.
The US Federal Reserve Bank of Richmond says the November 2020 US 5th District Manufacturing Index is at +15%, October 2020 was at +29%, September 2020 +21%, November 2019 -1%. “Manufacturers reported improvement in local business conditions, but the spending indexes softened somewhat. Survey participants were optimistic about the future, expecting growth to continue in the coming months.” PR link.
The Federal Reserve Bank of Richmond says the November 2020 US 5th District Service Sector Revenue Index is at +13%, October 2020 was at +19%, September 2020 +6%, November 2019 +15%. “Firms reported improving local business conditions and increased capital spending. Survey participants were generally optimistic that demand would continue to grow, but many also expressed concern that revenues may soften in the next six months.” PR link.
TrueCar and ALG forecast November 2020 US New Auto Units Sales-Retail to be at 1,099,808, Fleet 143,823, for Total New Auto Sales Units at 1,243,631, October 2020 was at 1,361,858, September 2020 1,221,091, November 2019 1,413,464; November 2020 Average Transaction Price is at $38,024, October 2020 was at $37,186, September 2020 36,541, November 2019 $36,317. “We expect many consumers who have not been financially affected by the pandemic to make their vehicle purchases this month, especially with fewer people traveling this holiday season and with inventory rebounding.” PR link.
***Monday, November 23
General Motors(PBR19 $GM) is told by the US Natl Highway Traffic Safety Administration to recall and repair nearly 6 million big pickup trucks and SUVs equipped with potentially dangerous Takata air bag inflators, will cost the automaker an estimated $1.2 billion, about one third of its net income this year. MarketWatch PR link.
GE(PBR33 $GE) has acquired Swedish startup Prismatic Sensors AB, specializes in photon counting detectors, has the potential to significantly increase clinical performance for oncology, cardiology, neurology, and many other clinical CT applications, GE had been a minority investor, terms not disclosed. PR link.
Merck(PBR67 $MRK) to acquire privately held clinical-stage biopharmaceutical company OncoImmune for upfront payment of $425 million cash plus sales-based payments and payments contingent on the successful achievement of certain regulatory milestones, recently announced positive top-line findings from an interim efficacy analysis of a Phase 3 study evaluating its lead therapeutic candidate CD24Fc for the treatment of patients with severe and critical COVID-19, to close by 12/31/20. PR link.
Bristol-Myers Squibb(PBR109 $BMY) to pay Schrodinger(NASDAQ: SDGR) $55 million upfront and up to $2.7 billion in preclinical, development, regulatory and sales-based milestone payments, for its physics-based software platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at lower cost compared to traditional methods. PR link.
BlackRock(PBR215 $BLK) to acquire Aperio, a pioneer in customizing tax-optimized index equity separately managed accounts (SMAs) to reflect each client’s unique risk, tax, and personal values preferences, with $36+ billion assets under management, from Golden Gate Capital and Aperio employees, for $1.05 billion in cash, to close in 1Q21. PR link.
Regeneron(PBR384 $REGN) gets US FDA Emergency Use Authorization for Casirivimab and imdevimab administered together for the treatment of mild to moderate COVID-19 in adults, as well as in pediatric patients at least 12 years of age and weighing at least 40 kg, who have received positive results of direct SARS-CoV-2 viral testing and are at high risk for progressing to severe COVID-19 and/or hospitalization. PR link.
Kemper(PBR535 $KMPR) to acquire Downers Grove, IL based network of 500 independent agents and 110+ captive agents specialty private passenger auto insurance in 5 states provider American Access Casualty Company for $370 million cash, to close in 1Q21. PR link.
Avnet(PBR176 $AVT) Interim CEO Phil Gallagher appointed CEO and member of the Board, effective immediately. PR link.
The US Federal Reserve Bank of Chicago says the Preliminary October 2020 US National Activity Index is at +0.83, September 2020 was at +0.32, August 2020 +1.10, October 2019 -0.41. “Index suggests economic growth increased in October.” PR link.
***Friday, November 20
The PBRMarketTools US Stock Exchanges Recap for Week 47 of 2020 ending 11/20/20:
DJIA ends Week 47 at 29,263.48, -0.73% from last Friday, +10.42% MTD, +5.33% QTD, +2.54% YTD, -2.29% from record 29,950.44 set 11/16/20.
NASDAQ ends Week 47 at 11,854.97, +0.22% from last Friday, +8.65% MTD, +6.16% QTD, +32.12% YTD, -1.67% from record 12,056.44 set 09/02/20.
SPX ends Week 47 at 3,557.54, -0.77% from last Friday, +8.79% MTD, +5.78% QTD, +10.11% YTD, -1.91% from record 3,585.15 set 11/13/20.
The Week 47 of 2020 News Summary: After a week off the Coronavirus Pandemic returned to be the primary headline for the week, especially in the US where there was a significant uptick in cases and deaths. As of today, Friday, 11/20/20, at 2:25PM Eastern US, the John Hopkins University CSSE unit says there are now 57,365,049 confirmed cases globally with 1,368,746 deaths, an increase of 55,889, which is -17,072 from last Friday. For the US it is 11,854,203 confirmed cases and 253,882 deaths, an increase of 10,495, which is +2,649 from last Friday. While the rate of increase is alarming to some, the good news is that Moderna announced its COVID-19 candidate was 95% effective in a Phase 3 trial, and does not need to be in significantly colder storage like the Pfizer/BioNTech vaccine. Pfizer/BioNTech released the final results from their Phase 3 also showing 95% effectiveness, and filed an Emergency Use Authorization with the US FDA, which will take a few weeks to get through its process. With the uptick in cases more cities and states are implementing more restrictions such as more use of masks, curfews and group sizes, and in some cases lockdowns. There are concerns as an estimated 50 million people in the US plan to travel for Thanksgiving gatherings, temperatures are starting to cool, and the US is now in its annual flu season. President-elect Biden is also stirring up some news as his transition teams are not getting much support or information about COVID-19 efforts and plans from the Trump administration which still refuses to acknowledge the Biden victory and are contesting results in some of the key voting states. The uptick is causing concerns by hospitals as they try to prepare and cope with a possible flood of new cases that could max out available rooms and resources. Assuming vaccines get proper regulatory approval it still appears that the earliest they will be available in significant numbers is late December into January. As indicated, the US political news is still a little foggy with legal filings piling up by the Trump legal team, usually ending up with the motions being rejected for lack of convincing evidence. In general the public seems to have accepted a Biden/Harris victory, but there are still a large contingent insisting there is a significant voter fraud conspiracy. President Trump has still not conceded the race, much to the chagrin of many. US economic news was mostly positive for the week, but with the virus uptick there is also some uneasiness. But mortgage rates hit a new low, existing home sales increased more than expected, but weekly initial unemployment claims took a jump up. Unemployment benefits will take a big hit the day after Christmas unless some new legislation is passed by the Congress. Secretary of the Treasury Mnuchin announced the closing of some significant stimulus funding that has not been used much, with a backlash from federal Reserve leaders saying they are still needed as a tool in case things get worse. There are signs that a stimulus package could still be on the table when Congress reconvenes after the Thanksgiving break, and funding for government programs also needs to be addressed very quickly. President Trump late Friday also introduced some new rules that should reduce the prices of prescription drugs. The Stock Market Bull had a good Monday in the pasture, with the DJIA closing at a new record high. But The Stock Market Bear knocked the Bull down on Tuesday and Wednesday wiping out the gains. The Stock Market Bull rebounded on Thursday to retake the lead, the Bear struck back on Friday, but was not quite strong enough to get all 3 exchanges. Week 47 ends with The Stock Market Bear taking a 2-1 mixed result, a reversal of last week’s mixed result in favor of the Bull. Next week is US Thanksgiving Week, it will be shortened trading week, Congress is in recess, so it’s hard to predict what will happen. Be careful, stay safe and be thankful for the many blessings we have, even in these difficult times.
The Week 47 of 2020 tally YTD is:
The Stock Market Bull: 22 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 7 weeks
Pfizer(PBR62 $PFE) and BioNTech SE(Nasdaq: BNTX) submitting Emergency Use Authorization for US FDA approval of their mRNA vaccine candidate, BNT162b2 against SARS-CoV-2, which will potentially enable use of the vaccine in high-risk populations in the US by the middle to end of 12/20, submitting requests in other countries as well. PR link.
VISA(PBR132 $V) completes acquisition of strategic partner since 2018 YellowPepper, a fintech pioneer with proprietary technology and partnerships supporting leading financial institutions and startups in Latin America and the Caribbean. PR link.
Eli Lilly(PBR140 $LLY) to make an up front payment of $100 million plus a $35 million equity investment in Precision BioSciences(Nasdaq: DTIL) which is also eligible to receive up to $420 million in potential development and commercialization milestones in a research collaboration and exclusive license agreement to utilize Precision’s proprietary ARCUS® genome editing platform for the research and development of potential in vivo therapies for genetic disorders, with an initial focus on Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets. PR link.
Carnival Corp(PBR153 $CCL)’s Princess Cruises pauses all cruises sailing through 03/31/21, all cruises longer than 7 days sailing in and out of US ports through 11/01/21, for all cruises departing in and out of Japan through 06/25/21, announces similar plans for its Holland America and Seabourn brands in other press releases. PR link.
First Horizon National(PBR856 $FHN) to simplify its corporate name to First Horizon Corporation, effective on Monday 11/30/20, will continue trading as NYSE: FHN. PR link.
***Thursday, November 19
Verizon(PBR20 $VZ) Media and BuzzFeed form a new strategic partnership across content and advertising, the acquisition of HuffPost by BuzzFeed, and an investment that will make Verizon Media a minority shareholder in BuzzFeed, terms not disclosed. PR link.
IBM(PBR38 $IBM) CEO Arvind Krishna discusses IBM’s emphasis on cloud and AI technologies in an interview with David Solomon of Goldman Sachs(PBR87) on a recent episode of Talks at GS. PR link.
Eli Lilly(PBR140 $LLY) gets US FDA Emergency Use Authorization for the distribution and emergency use of baricitinib to be used in combination with remdesivir in hospitalized adult and pediatric patients two years of age or older with suspected or laboratory confirmed COVID-19 who require supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation (ECMO). PR link.
Fiserv(PBR303 $FISV) authorizes repurchase of 60 million of its common stock, is in addition to existing authorization. PR link.
NASDAQ(PBR607 $NDAQ) to acquire St. John’s, Newfoundland and Labrador based cloud based anti-financial crime management solutions provider with 2,000+ N American financial institutions customers Verafin, which expects to have $140 million in revenues in 2021, for $2.75 billion cash, to close in 1Q21. PR link.
The Conference Board says the Preliminary October 2020 US Leading Economic Index(2016=100) is at 108.2, September 2020 was at 107.5, August 2020 106.8, October 2019 111.5. “… the leading index has been decelerating in recent months, which suggests growth will moderate significantly in the final months of 2020, slowing down from the unusually rapid pace in Q3… Furthermore, downside risks to growth from a second wave of COVID-19 and high unemployment persist. While The Conference Board projects the US economy will expand in Q4, the pace of growth is unlikely to exceed 2.2 percent (annual rate).” PR link.
The Natl Assn of Realtors says the Preliminary October 2020 US Existing Home Sales Annual Rate is at 6,850,000, September 2020 was at 6,570,000, August 2020 5,980,000, October 2019 5,410,000; October 2020 Median Price is at $313,000, September 2020 $311,800, August 2020 $310,600, October 2019 $270,900. “The surge in sales in recent months has now offset the spring market losses… With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.” PR link.
The US Federal Reserve Bank of Philadelphia says the November 2020 US 3rd District Manufacturing General Activity Indicator is at +26.3, October 2020 was at +32.3, September 2020 +15.0, November 2019 +8.4. “The survey’s future indexes also moderated this month but suggest that growth is expected to continue over the next six months.” PR link.
***Wednesday, November 18
Alphabet(PBR11 $GOOG)’s Google unit to expand use of its mobile app Google Pay service, more features, working with trusted financial institutions to create Plex, a new mobile-first bank account integrated into Google Pay. PR link.
Boeing(PBR40 $BA) gets US Federal Aviation Administration approval for return to service of the Boeing 737 MAX; FAA must still approve 737 MAX pilot training program revisions for each US airline operating the MAX, provide certifications for MAX aircraft built since grounding, parked MAX aircraft must take required maintenance steps to prepare for flying. US FAA PR link.
Boeing(PBR40 $BA) responds to US Federal Aviation Administration’s approval for Boeing to resume 737 MAX operations, steps it will take to get the 737 MAX into service. PR link.
Pfizer(PBR62 $PFE) and BioNTech SE (Nasdaq: BNTX) say the final efficacy analysis in their ongoing Phase 3 study of their mRNA-based COVID-19 vaccine candidate, BNT162b2, met all of the study’s primary efficacy endpoints, data indicates a vaccine efficacy rate of 95% (p<0.0001) in participants without prior SARS-CoV-2 infection, plan to submit a request within days to the US FDA for an Emergency Use Authorization. PR link.
Best Buy(PBR72 $BBY) partners with Instacart for same day delivery of consumer electronics nationwide, Instacart is also introducing its new Certified Delivery feature. PR link.
Carnival Corp(PBR153 $CCL) notifies guests and travel agents that it has cancelled additional cruises from all US homeports through 01/31/21, some through 02/28/21, and a few through 03/26/21. PR link.
Ryder(PBR343 $R) to provide $30 million in bonuses to nearly 30,000 of its frontline employees in N America in appreciation for their extraordinary efforts during the pandemic. PR link.
JetBlue(PBR377 $JBLU)‘s Terminal 5 at JFK Airport in New York to have NYC Test & Trace Corps and Port Authority to provide free COVID-19 Test Kits, can do 600 tests/day to New Yorkers booked on return flights, up to 48 hour results turnaround, 6 month pilot program. PR link.
Norwegian Cruise Lines(PBR451 $NCLH) has priced its underwritten public offering of 40,000,000 ordinary shares for $20.80/share, net proceeds raised to be used for general corporate purposes. PR link.
KB Home(PBR576 $KBH) marks milestone of over 11,000 solar-powered homes delivered in exclusive partnership with SunPower(PBR920 $SPWR). PR link.
PG&E(PBR184 $PCG) appoints Patti Poppe as CEO, effective 01/04/21, succeeds Interim CEO Bill Smith, Poppe is currently President/CEO of CMS Energy(PBR427). PR link.
Oshkosh(PBR362 $OSK) CEO Wilson Jones to retire as CEO and Board member effective 04/02/21, President/COO John C Pfeifer to be successor as President/CEO. PR link.
CMS Energy(PBR427 $CMS) President/CEO Patti Poppe is stepping down effective 12/01/20, to become CEO of PG&E(PBR184 $PGC), EVP/Operations Garrick Rochow is named successor. PR link.
Hanover Insurance(PBR542 $THG) elects current Board vice chair Cynthia L. Egan as Chair, effective December 12/01/20, succeeds P Kevin Condron who is reaching mandatory retirement age. PR link.
Triumph Group(PBR765 $TGI) President/CEO Daniel Crowley gets new 5 year employment agreement through 11/17/25, elects Crowley to also be Chairman, effective immediately, General Ralph “Ed” Eberhart to remain on Board as Lead Independent Director. PR link.
The US Dept of Commerce/HUD says the Preliminary October 2020 US New Residential Construction Building Permits Issued Annual Rate-Private Housing is at 1,545,000, September 2020 was at 1,545,000, August 2020 1,476,000, October 2019 1,503,000. PR link.
***Tuesday, November 17
PBRMarketTools profiles ActivisionBlizzard, Inc(NASDAQ: $ATVI), creator of epic interactive gaming and entertainment experiences, ranked 449 by revenues on The PBR1000. More on the ATVI Summary page.
Amazon(PBR2 $AMZN) introduces Amazon Pharmacy, a new Amazon store that allows customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App, customers can add their insurance information, manage prescriptions, and choose payment options, unlimited 2-day free delivery for Amazon Prime members; also can pay without insurance, as well as at over 50,000 other participating pharmacies nationwide, savings up to 80% on generics, 40% on brand name medications. PR link.
American Airlines(PBR68 $AAL), British Airways, and oneworld launch an optional coronavirus (COVID-19) medical-based testing trial on select flights from cities in the US to London Heathrow (LHR), in a combined effort to scientifically demonstrate how COVID-19 testing can reopen international travel and remove the need for passengers to quarantine on arrival, 3 free tests involved. PR link.
Bristol-Myers Squibb(PBR109 $BMY) completes around $13.1 billion in cash acquisition of MyoKardia, which is now a wholly owned subsidiary, is a clinical-stage biopharmaceutical company discovering and developing targeted therapies for the treatment of serious cardiovascular diseases. PR link.
Lithia Motors(PBR245 $LAD) has acquired Sterling Luxury Group (Sterling Motorcars) in Loudoun County Virginia, includes BMW and Mini of Sterling, as well as RollsRoyce Motor Cars, Lamborghini and McLaren brands, to add $225 million in annualized revenue, first location for Lithia in VA, terms not disclosed. PR link.
Keurig Dr Pepper(PBR278 $KDP) shareholders JAB subsidiary Maple Holdings and Mondelez(PBR111 $MDLZ) to sell 60 million shares, MDLZ will then have an 8.4% stake in KDP, JAB and affiliates to own 34% of common stock, KDP public float will be around 58%, was 13% at completion of Keurig and Dr Pepper Snapple merger in 2018. PR link.
Boston Scientific(PBR289 $BSX) has initiated a global, voluntary recall of all unused inventory of the LOTUS Edge™ Aortic Valve System due to complexities associated with the product delivery system, no safety issue for patients who currently have an implanted LOTUS Edge valve, company is retiring the entire LOTUS product platform immediately because of delivery intricacies, will focus on its ACURATE neo2™ Aortic Valve System. PR link.
Polaris Industries(PBR431 $PII) Chairman/CEO Scott Wine to leave effective 12/31/20 to take another CEO position, transition plans to be announced at a later date. PR link.
The US Dept of Labor says the Preliminary October 2020 US Monthly Change in Import Prices is at -0.1%, September 2020 was at +0.2%, August 2020 +0.8%, October 2019 -0.4%; October 2020 Export Prices is at +0.2%, September 2020 +0.6%, August 2020 +0.5%, October 2019 +0.0%; October 2020 Year-to-Year Change-Imports is at -1.0%, Exports -1.6%. PR link.
The US Federal Reserve Board says the Preliminary October 2020 US Manufacturing % of Capacity is at 72.8%, September 2020 was at 72.0%, August 2020 72.2%, October 2019 77.0%, Capacity Growth Over the Previous Year is at +0.2%. PR link.
The US Dept of Commerce/Census says the Preliminary September 2020 US Sales-Manufacturers is at $482.8 billion, Retailers $496.2 billion, Wholesalers $486.0 billion, Total September 2020 Sales is at $1,465.1 billion, August 2020 was at $1,456.0 billion, July 2020 $1,443.5 billion, September 2019 $1,452.8 billion. PR link.
The US Dept of Commerce/Census says the Advance October 2020 US Sales-Retailers is at $497.7 billion, Food Services & Drinking Places $55.6 billion, for October 2020 Total Retail Sales at $553.3 billion, September 2020 was at $551.9 billion, August 2020 $543.4 billion, October 2019 $523.6 billion. PR link.
The Natl Assn of Home Builders/Wells Fargo say the Preliminary November 2020 US Housing Market Composite Index is at a record 90, October 2020 was at 85, September 2020 83, November 2019 71. “Historically low mortgage rates, favorable demographics and an ongoing suburban shift for home buyer preferences have spurred demand and increased new home sales by nearly 17 percent in 2020 on a year-to-date basis. Though builders continue to sign sales contracts at a solid pace, lot and material availability is holding back some building activity. Looking ahead to next year, regulatory policy risk will be a key concern given these supply-side constraints.” PR link.
***Monday, November 16
Amazon(PBR2 $AMZN) says Black Friday holiday deals will start on 11/20/20 and go through 11/27/20. PR link.
Home Depot(PBR27 $HD) to acquire HD Supply Holdings(PBR464 $HDS), a leading national distributor of maintenance, repair and operations (MRO) products in the multifamily and hospitality end markets, for $56/share, total enterprise value of around $8 billion, tender offer to close by 01/31/21. PR link.
Johnson & Johnson(PBR35 $JNJ) Covid vaccine candidate gets another $1+ billion funding boost from the US government, about $604 million to be used by JNJ, $454 million by BARDA, for the Phase 3 Ensemble trial to evaluate the efficacy of JNJ’s vaccine candidate as a single-dose. Bloomberg PR link.
Pfizer(PBR62 $PFE) completes its Upjohn division merger with Mylan(PBR271 $MYL), combined company now Viatris, PFE shareholders own 57%, MYL shareholders 43%, to start trading as NASDAQ: VTRS on 11/17/20. PR link.
Performance Food(PBR116 $PFGC)’s Foodservice division launches its Green Origin™ brand, a proprietary line of plant-based protein products, portfolio includes plant-based burgers, grinds, breakfast sausages, and nuggets, will have one of the largest plant-based Exclusive Brand portfolios in the industry. PR link.
Tesla(PBR119 $TSLA) to join the S&P500 effective 12/21/20. SPGlobal PR link.
PNC Financial(PBR174 $PNC) to acquire $104 billion in assets Houston, TX based 637 branches commercial and retail banking services provider BBVA USA Bancshares for $11.6 billion cash, to close in mid 2021. PR link.
Simon Property(PBR481 $SPG) in modified agreement to acquire 80% ownership interest in Taubman Centers(NYSE: TCO) for $43.00/share cash, around $2.95 billion, Taubman family to own remaining 20%, includes 26 super-regional shopping centers in the US and Asia, to close in late 2020/early 2021. PR link.
Simon Property(PBR481 $SPG) apparently foreclosing on 4 malls with mortgage debt totaling $410.9 million, another $963.4 million in mortgage debt considered to be at risk. MarketWatch PR link.
Camping World(PBR541 $CWH) to acquire the Outlet Recreation dealership based in West Fargo, ND, its first location in N Dakota, to close in 12/20, terms not disclosed. PR link.
KKR(PBR(PBR610 $KKR) to acquire 65% stake in Seiyu, a nationwide supermarket chain in Japan with more than 300 retail units, Japan based technology company Rakuten to acquire 20%, and Walmart(PBR1 $WMT) to retain 15% ownership, values Seiyu at around $1.6 billion. PR link.
Cinemark(PBR698 $CNK) gets multi-year agreement with Comcast(PBR28 $CMCSA)’s Universal Filmed Entertainment Group division, includes at least three full weekends (17 days) of theatrical exclusivity for all Universal Pictures and Focus Features theatrical releases, then studio has the option to make its titles available across premium video on demand (PVOD) platforms, becomes 5 full weekends(31 days) if bookings exceed $50 million for a title. PR link.
WW(PBR973 $WW) introduces myWW+ which offers a more holistic approach to weight loss and wellness that focuses on food, activity, mindset and sleep. PR link.
Suburban Propane(PBR983 $SPH) elects Matthew J. Chanin as its new Chairman effective 01/01/21, succeeds Harold R. Logan, Jr, who remains on the Board. PR link.
The Federal Reserve Bank of New York says the November 2020 Empire State Manufacturing General Business Conditions Index is at +6.3, October 2020 was at +10.5, September 2020 +17.0, November 2019 +2.5. “Looking ahead, firms remained optimistic that conditions would improve over the next six months.” PR link.
***Friday, November 13
The PBRMarketTools US Stock Exchanges Recap for Week 46 of 2020 ending 11/13/20:
DJIA ends Week 46 at 29,479.81, +4.08% from last Friday, +11.24% MTD, +6.11% QTD, +3.30% YTD, -0.24% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 46 at 11,829.29, -0.55% from last Friday, +8.41% MTD, +5.93% QTD, +31.84% YTD, -1.88% from record 12,056.44 set 09/02/20.
SPX ends Week 46 at record 3,585.15, +2.16% from last Friday, +9.64% MTD, +6.61% QTD, +10.97% YTD, +0.00% from record 3,585.15 set 11/13/20.
The Week 46 of 2020 News Summary: Most of the news early in the week was about the results of the US Presidential election, who won, and forecasts of what will happen next. One of the major forces in the elections was the Coronavirus Pandemic, which saw a significant uptick during the week, hitting new records every day for new positive tests. Here’s an update on cases: As of today, Friday, 11/13/20, at 1:25PM Eastern US, the John Hopkins University CSSE unit says there are now 53,166,374 confirmed cases globally with 1,312,857 deaths, an increase of 72,961, which is +19,490 from last Friday. For the US it is 10,675,820 confirmed cases and 243,387 deaths, an increase of 7,846, which is +1,661 from last Friday. This signals a significant uptick as hotspots grow around the world. National lockdowns are taking place and in the US some local restrictions, such as curfews, are being implemented. Pfizer and BioNTech announced their candidate investigational vaccine for COVID-19 has proven 90% effective in current tests, it plans to request US FDA Emergency Use Authorization by the end of the month. The US government’s “Operation Warp Speed” has reached agreements with most major US pharmaceutical retail chains to provide vaccination services when the vaccine/s becomes available. It appears the initial vaccines could be available at the beginning of 2021, the priority would be healthcare workers and significantly vulnerable people, then the general population, probably around the April timeframe right now. Results from other vaccine candidates should be available soon. With the news that former VP Joe Biden is now generally conceded to be the US President-Elect there are now some conjectures about what his policy regarding the pandemic will be, and opinions vary at this time. Professional and some college sports are now in session, playing in empty stadiums and arenas with primarily a virtual audience watching. There are concerns about possible spreading of the virus as temperatures cool, and the Thanksgiving and Christmas holidays take place with concerns about family, friends, and colleagues congregating for traditional get-togethers and becoming possible super-spreader events. There were a couple of news items of note regarding international trade. China’s TikTok was given an extension from being forcibly closed down in the US as it continues to negotiate with potential US buyers for the US operations. President Trump also signed an executive order disallowing US investments in Chinese companies providing products and services to China military operations. In other parts of the world there continue to be concerns about UK’s Brexit from the European Union. As mentioned before, the aftermath of the US elections provided a lot of news. It is generally conceded, though still not officially, that former VP Joe Biden is US President-Elect. He has achieved just over 50% of the popular vote, and won enough key states by narrow margins to clinch the electoral votes needed to be elected by the Electoral College. President Trump has not conceded yet and his team has filed lawsuits in several of those states insisting that there has been significant voter fraud. Most of the initial cases have been thrown out for insufficient evidence. The US House will continue to be lead by the Democrats, but with a smaller margin. The US Senate will most likely be Republican led but depends on 2 Senate seat runoffs from the State of Georgia in December. President-Elect Biden has activated his transition team. It is taking the initial steps to prepare to take over the reins of the Executive Branch at noon on January 20, 2021. Vice-President Elect Kamala Harris is also active, will be the first woman VP and person of color, providing inspiration in a variety of ways to women and young girls. In climate news tropical storm Eta hit Florida twice, leaving a lot of outages and flooding. The US economy continues to advance, though apparently a bit more slowly. Weekly and Total Insured Unemployment continues to drop. The Consumer Price Index was unchanged, the Producer Price Index was up a little bit, there was a significant uptick in the national deficit in the first fiscal month of 2021 as outlays significantly outpaced receipts, wages were up slightly, job openings had a small increase, it appears there will soon be an increase in mortgage delinquencies, and mortgage rates increased a bit. There was hope for a new stimulus program after the election but the Senate and House still have not been able to come to an agreement and the timetable is now uncertain, despite many economists advising that it is needed now before more severe damage can be done. On the other hand, some economists have said this a remarkably fast economic recovery, especially compared to 2008. The Stock Market Bear seemed to be focused on the NASDAQ this week as a selloff in tech stocks prevailed. He also dominated all 3 exchanges on Thursday. But The Stock Market Bull made a strong charge on Friday, the DJIA hit a new intraday high, and the S&P 500 closed at a new record high. The Stock Market Bull gets a 2-1 mixed result in Week 46. With the uptick in COVID-19 cases, President Trump not yet conceding defeat but President-Elect Biden’s transition team starting, a near dead economic stimulus plan stuck in Congress, and the holiday season looming, it should be an interesting Week 47 coming up. Place your bets, or maybe not, accordingly.
The Week 46 of 2020 tally YTD is:
The Stock Market Bull: 22 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 6 weeks
Merck(PBR67) gets its first US FDA approval for KEYTRUDA in a breast cancer setting. PR link.
Agilent Technologies(PBR529 $A) gets US FDA approval for the use of PD-L1 IHC 22C3 pharmDx as an aid in identifying patients with triple-negative breast cancer (TNBC) for treatment with Merck(PBR67)‘s KEYTRUDA® (pembrolizumab). PR link.
Southwestern Energy(PBR739 $SWN) completes acquisition of Montage Resources Corp(NYSE: MR) in an all stock transaction, MR shareholders receive 1.8656 shares of SWN for each MR Share. PR link.
Tailored Brands(PBR771 $TLRD) gets US Bankruptcy Court confirmation of company’s Plan of Reorganization, expects to emerge from Chapter 11 by end of November. PR link.
Meredith Corp(PBR776 $MDP)’s Martha Steward Living celebrates its 30th anniversary with its December Christmas issue, on newstands 11/20/20. PR link.
The US Dept of Labor says the Preliminary October 2020 US Producer Price Index-Total Monthly Final Demand is at +0.3%, September 2020 was at +0.4%, August 2020 +0.3%, October 2019 +0.3%; Last 12 Months(Unadjusted) is at +0.5%. PR link.
The U of Michigan Preliminary November 2020 Consumer Sentiment Index is at 77.0, October 2020 was at 81.8, September 2020 80.4, November 2019 96.8. “The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline.” PR link.
***Thursday, November 12
Walmart(PBR1) expands its pet offerings, including Walmart Pet Insurance in collaboration with PetPlan and convenient pet care services like dog-walking and pet sitting through partnership with Rover. PR link.
Ford(PBR12) reveals the 2022 E-Transit all electric cargo van, arrives in late 2021, starts at under $45,000. PR link.
Altria(PBR115) to convert its non-voting shares in JUUL Labs to voting shares, does not currently intend to exercise its additional governance rights obtained upon conversion, including the right to elect directors to JUUL’s board, or to vote its JUUL shares other than as a passive investor, pending the outcome of the US Federal Trade Commission litigation. PR link.
Bed Bath & Beyond(PBR276) completes its around $250 million sale of its non-core assets Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center located in Florence, NJ. PR link.
Chipotle(PBR492) Chairman/CEO Brian Niccol is interviewed on Talks at GS. PR link.
Camping World(PBR541) to acquire the four existing dealership locations of Noble RV, in Owatonna, Madelia, Oronoco (Rochester area) and Jordan (Minneapolis area), Minnesota, to close in 12/20. PR link.
Chewy(PBR547) is expanding its Pharmacy (Rx) business to now offer compounded medications that are customized to the specific needs of pets. PR link.
The US Dept of Health and Human Services announces US government’s partnerships with large chain pharmacies and networks that represent independent pharmacies and regional chains to administer COVID-19 vaccines with no out-of-pocket costs when they become available, part of “Operation Warp Speed” effort. PR link.
The US Dept of the Treasury says the October 2020 US Federal Government Receipts are at $237.7 billion, Outlays are at $521.8 billion, October 2020 Total Deficit is at $284.1 billion, October 2019 Deficit was at $134.5 billion. October is the first month of the federal government fiscal year. PR link.
The US Dept of Labor says the October 2020 Consumer Price Index-Urban-All Items is at +0.0%, September 2020 was at +0.2%, August 2020 +0.4%, October 2019 +0.2%, October 2020 Last 12 Months(Unadjusted) is at +1.2%, September 2020 was at +1.4%, August 2020 +1.3%, October 2019 +1.8%. PR link.
The US Dept of Labor says the Preliminary October 2020 US Current Average Earnings Per Hour is at $29.50, Average Hours Worked Per Week are at 34.8, for Total Average Weekly Earnings of $1,026.60, September 2020 was at $1,025.21, August 2020 $1,021.92, October 2019 $971.46. PR link.
***Wednesday, November 11
***US Veterans Day: Remembering and
***Thanking Those Who Served
***To Help Preserve Our Freedoms.
Cardinal Health(PBR14 $CAH) gets agreement with the US Center for Disease Control & Prevention(CDC) to act as a network administrator in Phase 2 of the Federal Pharmacy Partnership Strategy for COVID-19, which will enable retail independent, small chains and long-term care pharmacy customers to participate in the vaccination effort. PR link.
Pfizer(PBR62 $PFE) and BioNTech SE(NASDAQ: BNTX) get agreement with the European Commission to supply 200 million doses of their investigational BNT162b2 mRNA-based vaccine candidate against SARS-CoV-2 to European Union (EU) Member States, with an option for the European Commission to request an additional 100 million doses, deliveries anticipated to start by the end of 2020, subject to clinical success and regulatory authorization. PR link.
ConocoPhillips(PBR86 $COP) announces a new gas condensate discovery in production license 1009 located 22 miles northwest of the Heidrun Field and 150 miles from the coast of Norway in the Norwegian Sea, ConocoPhillips Skandinavia AS is operator of the license with 65% working interest. PR link.
Cummins(PBR128 $CMI) and Navistar(PBR274 $NAV) will work together on the development of a class 8 truck powered by hydrogen fuel cells, project will be funded in part through an award from the US Dept of Energy’s Office of Energy Efficiency and Renewable Energy. PR link.
Stryker Corp(PBR210 $SYK) completes 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), a recognized leader in the upper extremities (shoulder, elbow, wrist and hand), lower extremities (foot and ankle) and biologics market segments. PR link.
Chipotle(PBR492 $CMG) to open its first digital-only restaurant, the Chipotle Digital Kitchen, located just outside of the gates to the military academy in Highland Falls, NY, will open this Saturday for pick-up and delivery only. PR link.
Ascena Retail(PBR501 $ASNAQ) Justice brand brand assets and certain liabilities are acquired for approximately $90 million by brand management company Bluestar Alliance through an auction under the supervision the US Bankruptcy Court. PR link.
Palo Alto Networks(PBR679 $PANW) to acquire Expanse, a leader in attack surface management, for approximately $670 million to be paid in cash and stock and approximately $130 million in replacement equity awards, to close by 01/31/21. PR link.
TRI Pointe(PBR730 $TPH) authorizes new up to $250 million share repurchase program, expires 12/31/21. PR link.
Apollo Global Mgmt(PBR758 $APO) to acquire all the outstanding shares of Toronto based operator of 25 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick, and Nova Scotia Great Canadian Gaming Corp for around $52/share in a transaction with a total enterprise valuation of around $4.4 billion, to close in 2Q21. PR link.
Meredith Corp(PBR776 $MDP) Chairman Stephen Lacy retiring from the Board after 16 years, President/CEO Thomas Harty is elected to add Chairman role, Board member Elizabeth Tallett elected Lead Independent Director. PR link.
***Tuesday, November 10
Amazon(PBR2 $AMZN) gets notice from the European Commission regarding its preliminary view that Amazon has breached EU antitrust rules by distorting competition in online retail markets, also opened a second formal antitrust investigation into the possible preferential treatment of Amazon’s own retail offers and those of marketplace sellers that use Amazon’s logistics and delivery services. European Commission PR link.
Apple(PBR4 $AAPL) introduces a new MacBook Air, 13-inch MacBook Pro, and Mac mini powered by M1, Apple’s breakthrough chip for the Mac. PR link.
Ford(PBR12 $F) says Kansas City Assembly Plant will build the all-new E-Transit van, part of a more than $3.2 billion investment in Ford’s N American manufacturing facilities to produce a series of new electric vehicles for commercial and retail customers. PR link.
Target(PBR36 $TGT) and Ulta Beauty(PBR402 $ULTA) form strategic, long-term partnership with Ulta Beauty at Target, the “shop-in-shop” concept, to debut at 100+ Target locations starting in 2021. PR link.
United Airlines(PBR74 $UAL) to return to JFK NY Airport after 5 years, to offer nonstop transcontinental flights from NY to Los Angeles(LAX) and San Francisco(SFO) starting 02/01/21. PR link.
Uber(PBR224 $UBER) gets Antitrust Division of the US Dept of Justice approval with some conditions for $2.65 billion acquisition of Postmates delivery service, Postmates stockholders need to approve, to close in 4Q20. PR link.
DISH(PBR243 $DISH) says that its Slingbox servers would be permanently disabled 24 months after 11/09/20, is not related to its Sling-TV streaming service. appleinsider PR link.
Lithia Motors(PBR245 $LAD) has acquired $1.4 billion in revenue from 9 locations in S California and Phoenix, AZ and 800 associates, and brands Mercedes, Audi, Lexus, Toyota & Hyundai, from the Keyes Automotive Group, terms not disclosed. PR link.
YUM!(PBR491 $YUM)’s Pizza Hut unit is partnering with Beyond Meat(NASDAQ: BYND) to become the first national pizza company to offer a plant-based meat pizza coast-to-coast. Beyond Meat PR link.
AMC Entertainment(PBR503 $AMC) launches private rental theatres following a 4 week beta test, rental fee includes the price of tickets for up to 20 people, no minimum food and drink purchase requirement, from $99 to $349 depending on movie. PR link.
Take-Two Interactive(PBR728 $TTWO) to acquire UK based publisher and game developer Codemasters Group Holdings PLC for $6.82/share cash & stock, for an implied equity value of around $994 million, to close in 1Q21. PR link.
Wendy’s(PBR939 $WEN) Restaurants of Canada moves into the growing ghost kitchen space through a partnership with REEF’s Neighborhood Kitchens in Toronto, first move of several to come, as ghost kitchens are an important component of Wendy’s non-traditional growth strategy. PR link.
The US Dept of Labor says the Preliminary September 2020 US Job Openings-Private is at 5,740,000, Government 695,000, September 2020 Total Job Openings is at 6,435,000, August 2020 was at 6,352,000, July 2020 6,697,000, September 2019 7,0460,000. PR link.
CoreLogic says the August 2020 US House Mortgages 30 or More Days Delinquent is at 6.6%, July 2020 was at 6.6%, June 2020 7.1%, August 2019 3.7%. “… back-mortgage payments continue to add up for those unable to exit forbearance periods early. Looming unpaid mortgage payments, paired with sharp declines in income for many families, point to a potential wave of home sales triggered by financial distress in 2021 as forbearance periods end.” PR link.
***Monday, November 9
General Motors(PBR18 $GM) to add 3,000 new tech jobs to boost virtual testing and software expertise positions across engineering, IT and design, includes initiatives to increase diversity and inclusion and contribute to GM’s electric vehicles and customer experience priorities, hiring through 1Q21. PR link.
Pfizer(PBR62 $PFE) and BioNTech SE(Nasdaq: BNTX) say their mRNA-based vaccine candidate, BNT162b2, against SARS-CoV-2 has demonstrated evidence of efficacy against COVID-19 in participants without prior evidence of SARS-CoV-2 infection, based on the first interim efficacy analysis conducted on 11/08/20 by an external, independent Data Monitoring Committee (DMC) from the Phase 3 clinical study. PR link.
United Airlines(PBR74 $UAL) is adding more than 1,400 domestic flights during the week of Thanksgiving and is monitoring bookings in real-time to swap in larger aircraft when needed to accommodate last-minute demand. PR link.
Eli Lilly(PBR140 $LLY) gets US FDA Emergency Use Authorization for investigational neutralizing antibody bamlanivimab (LY-CoV555) 700 mg Bamlanivimab, is authorized for the treatment of mild to moderate COVID-19 in adults and pediatric patients 12 years and older with a positive COVID-19 test, who are at high risk for progressing to severe COVID-19 and/or hospitalization. PR link.
Rite Aid(PBR143 $RAD) launches RxEvolution strategy, to provide fusion of traditional medicine and alternative remedies to help people not just get healthy, but get thriving, includes a new brand identity (logo), whole health merchandise, a refreshed digital experience, and its new Store of the Future store prototype currently piloting in select markets. PR link.
McDonald’s(PBR150 $MCD) to introduce its new Crispy Chicken Sandwich in 2021, tested its first plant-based burger in select restaurants in Canada starting in 2019, to offer its own McPlant plant-based patty served on a warm, sesame seed bun with all the classic toppings starting in 2021 in locations that want to try it. PR link.
Adobe Systems(PBR275 $ADBE) to acquire work management platform for marketers provider with 3,000 customers with 1 million users Workfront for $1.5 billion, to close by end of 02/21. PR link.
JCPenney(PBR291 $JCPNQ) receives court approval for asset purchase agreement with Brookfield Asset Management, Simon Property(PBR481 $SPG) and first lien lenders, to close in late 11/20. PR link.
VF Corp(PBR294 $VFC) to acquire privately-owned $500 million in annual revenues global streetwear brand Supreme by acquiring stakes of The Carlyle Group(PBR682 $CG) and Goode Partners, to close by 12/31/20, terms not disclosed. PR link.
Casey’s General Stores(PBR332 $CASY) to acquire Buchanan Energy, owner of Bucky’s Convenience Stores, in an all-cash net transaction for $500 million, includes 94 retail stores and 79 dealer locations, as well as multiple parcels of real estate, brings Casey’s footprint to 2,300+ stores, to close by 12/31/20. PR link.
Blackstone(PBR404 $BX) to acquire specialty mechanical, electrical and controls services company focused on designing, building, and servicing complex systems in mission-critical facilities 2,200 professionals and engineers firm Therma Holdings LLC from Gemspring Holdings, to close in 4Q20, terms not disclosed. PR link.
Alaska Air(PBR348 $ALK) CEO Brad Tilden to retire on 03/31/21, will remain Chairman, President and Board member Ben Minicucci named CEO successor. PR link.
FannieMae says the October 2020 US Home Purchase Sentiment Index is at +81.7, September 2020 was at +81.0, August 2020 +77.5, October 2019 88.8. “To date, the HPSI has recovered over 60 percent of its COVID-19 pandemic loss, reflecting the bright spot that the mortgage market has been in the economy. However, the continuing evolution of the pandemic and the 2020 election outcomes may have longer lasting and unexpected impacts on consumer sentiment, as we saw following the 2016 elections…” PR link.
***Friday, November 6
The PBRMarketTools US Stock Exchanges Recap for Week 45 of 2020 ending 11/06/20:
DJIA ends Week 45 at 28,323.40, +6.87% from last Friday/MTD, +1.95% QTD, –0.75% YTD, -4.16% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 45 at 11,895.23, +9.01% from last Friday/MTD, +6.52% QTD, +32.57% YTD, -1.34% from record 12,056.44 set 09/02/20.
SPX ends Week 45 at 3,509.44, +7.32% from last Friday/MTD,
4.35% QTD, +8.63% YTD, -1.99% from record 3,580.84 set 09/02/20.
The Week 45 of 2020 News Summary: The Coronavirus Pandemic continues to be part of most major news items. Here are the latest tallies: As of today, Friday, 11/06/20, at 1:24PM Eastern US, the John Hopkins University CSSE unit says there are now 49,129,021 confirmed cases globally with 1,239,896 deaths, an increase of 53,471, which is +7,999 from last Friday. For the US it is 9,678,326 confirmed cases and 235,541 deaths, an increase of 6,185, which is +557 from last Friday. Britain joins Germany and France by imposing some lockdowns. There has not been much news about vaccines still in Phase 3 testing, but updated data is expected in the next week or so. In the US there were reports indicating that over 100,000 new people have declared infected in each of the past few days. US, state and local governments are assessing what they should do and some are taking actions to balance safety and yet keep their economies afloat. There was not much news on the international trade front, it was very quiet as countries to continue to focus on their own local pandemic issues and assess how the US general elections results will affect them. In US economic news jobs continue to move up. The ADP private sector reports and the US government statistics show an increase in employment, the unemployment rate dropped to 6.9%. The Federal Open Market Committee met this week, kept US government short term interest rates at 0.00-0.25% and says the economy is recovering, but at a slower rate, and strongly suggests that another stimulus program authorized by the US Congress would be a big help, especially for the unemployed and those living in poverty. It was another week for corporate earnings, which were generally positive. Businesses continue to re-open in creative ways, but still have hard decisions to make, especially for those in the hospitality industries. For example, cruise lines continue to cancel cruises, theme parks are not coming close to their attendance numbers from last year, hotels and restaurants are generally open now but with a wide range of limited capacity and more restrictions. Of course, the big news this week was the US general elections. Voting was on November 3rd, a record number of mailed in ballots have slowed the counting process, but at this time it looks like former VP Joe Biden will win over President Trump by a very narrow margin. With over 140 million votes counted the margin to win the Electoral College could go either way by less than 100,000 of the public votes. The House of Representatives will remain under control of the Democrats by a smaller margin than before as Republicans get a net gain. Similarly, control of Senate will probably remain with the Republicans by a very slim 1 or 2 vote margin, depending on runoff Senate elections in the state of Georgia. President Trump is not giving up easily. His legal teams are filing court motions demanding recounts in states where he narrowly lost. The stock markets responded with great joy that the end of the US President election will be over shortly. The Stock Market Bull made a miraculous recovery from a near death experience in Week 44, in Week 45 recovers all losses leaving The Stock Market Bear dazed and wondering, “What happened?” What will happen in Week 46? The easiest way is to analyze all the data, news, and analytics, then flip a coin to verify your answer!
The Week 45 of 2020 tally YTD is:
The Stock Market Bull: 22 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 5 weeks
Walmart(PBR1) to sell its 92 stores with over 9,000 employees business in Argentina to Grupo de Narváez, a Latin American group, terms not disclosed. PR link.
Carnival Corp(PBR153) temporary suspends its Costa Deliziosa cruises to Greece from 11/07/20 to 12/26/20. PR link.
Take-Two Interactive(PBR728) confirms it is in discussions to acquire UK based publisher and game developer Codemasters Group Holdings PLC, for $4.82/share cash and stock. PR link.
CVS Health(PBR5) President/CEO Larry J. Merlo to step down from the roles on 02/01/21, remain on the Board until its next annual meeting, EVP & President/Aetna unit Karen S. Lynch is named successor. PR link.
The US Dept of Labor says the October 2020 US Employed is at 149,806,000, September 2020 was at 147,563,000, August 2020 147,288,000, October 2019 158,544,000; October 2020 Unemployment Rate is at 6.9%, September 2020 was at 7.9%, August 2020 8.4%, October 2019 3.6%. PR link.
The US Federal Reserve Board says the Preliminary September 2020 US Consumer Credit Outstanding-Revolving is at $988.6 billion, Non-Revolving $3,172.7 billion, Total Credit Outstanding $4,161.3 billion, August 2020 was at $4,145.1, July 2020 $4,152.0 billion, July 2020 $4,152.0 billion, September 2019 $4,138.2 billion. PR link.
The US Dept of Commerce/Census says the Preliminary September 2020 US Wholesale Sales-Durables is at $238.8 billion, Non-Durables $247.3 billion, Total Wholesale Sales is at $486.1 billion, August 2020 was at $485.7 billion, July 2020 $479.9, September 2019 $497.6 billion. PR link.
***Thursday, November 5
Cigna(PBR13 $CI) in 3Q20 report says it now has 189.7 million total customer relationships, had 169.7 million in 3Q19. PR link.
Walt Disney(PBR49 $DIS)’s ESPN unit to lay off 300 staffers and to scrap 200 open positions in response to ongoing COVID-19 pandemic. TheWrap PR link.
Merck(PBR67 $MRK) to acquire privately held clinical-stage biopharmaceutical company developer of cancer therapies targeting receptor tyrosine kinase-like orphan receptor 1 (ROR1) VelosBio for $2.75 billion in cash, to close by end of 2020. PR link.
T-Mobile US(PBR70 $TMUS) in 3Q20 report says it had 2,035,000 total net additions, now has over 100 million total customers. PR link.
VISA(PBR132 $V) responds to the US Dept of Justice filing a lawsuit against the $5.3 billion acquisition of Plaid, says Plaid is not a competing payments service, plans to defend acquisition vigorously. PR link.
American Electric Power(PBR201 $AEP) to retire the Pirkey Plant (580 MW) in Hallsville, TX, in 2023 and cease using coal at the Welsh Plant (1,053 MW), in Pittsburg, TX, in 2028, removes 1,633 megawatts (MW) of coal-fueled generation from its fleet by the end of 2028, other conversion plans announced. PR link.
Molson Coors(PBR293 $TAP) completes $150 million sale its Irwindale, CA., brewery property to Pabst subsidiary Irwindale Brew Yard who is studying the feasibility of reopening the facility, Molson Coors has already transitioned the production from Irwindale to its breweries in Golden, CO, and Fort Worth, TX. PR link.
American Tower(PBR398 $AMT) to acquire InSite Wireless Group, which owns, operates and manages approximately 3,000 communications sites, primarily in the US and Canada, for $3.5 billion, includes debt, to close by end of 2020. PR link.
Electronic Arts(PBR496 $EA), the National Hockey League (NHL), and the NHL Players Association (NHLPA) announce a multi-year renewal to their partnership, will allow EA SPORTS™ to accelerate authentic and innovative hockey simulation experiences for millions of players worldwide. PR link.
Electronic Arts(PBR496 $EA) and UFC announced a multi-year renewal of their partnership to continue to deliver authentic, innovative, and thrilling mixed martial arts (MMA) games to millions of players worldwide. PR link.
IAC(PBR556 $IAC) 3Q20 Letter to Shareholders outlines plan to possibly spinoff its Vimeo unit to shareholders, provides turnkey tools for livestreaming, screen recording, video creation, collaboration, distribution, storage, and monetization, has raised $150 million from outside investors, values Vimeo at $2.75 billion. PR link.
iHeartMedia(PBR649 $IHRT) gets US Federal Communications Commission approval to increase its authorized aggregate foreign ownership from 25% to 100%. PR link.
Laureate Education(PBR702 $LAUR) closes on its sale of its Australian and New Zealand operations(Torrens University and Think Education in Australia and Media Design School in New Zealand) to Strategic Education(NASDAQ: STRA) for $642.7 million. PR link.
Terminix(PBR883 $TMX) reaches a settlement with the Alabama Attorney General regarding its Mobile Bay Formosan termite business practices, will set up a $25 million state-sponsored consumer fund, pay $19 million to Alabama Attorney General, expects future termite damage claim expenses above historical norms to be between $140 to $150 million from 2020 to 2029, which includes settlement amounts. PR link.
SeaWorld(PBR975 $SEAS) says in 3Q20 report that it had 1.6 million guests, had 8.2 million guests in 3Q19, result of COVID-19 pandemic, has 10 of 12 parks open at end of September 2020. PR link.
The Federal Open Market Committee releases a statement from its meetings held 11/04-05/20, keeps federal short term interest rates at 0.00-0.25%, says “The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy will depend significantly on the course of the virus.” PR link.
The US Dept of Labor says the Preliminary 3Q20 US Labor Productivity Output/Hour-Business Sector is at +6.4%, 2Q20 was at +9.6%, 1Q20 +0.0%, 3Q19 +0.2%. PR link.
***Wednesday, November 4
T-Mobile US(PBR70) to pay a $200 million fine to the US to resolve a Federal Communications Commission (FCC) investigation into its subsidiary Sprint for failing to comply with rules on a low-income subsidy program called Lifeline. Reuters PR link.
Uber(PBR224), Lyft(PBR660) see California ballot win as national model, ride-service drivers to remain independent contractors instead of employees entitled to benefits. Automotive News PR link.
ADP says the Preliminary October 2020 US Change In Non-Farm Private Employment-Small Business is at +114,000, Mid-Sized Business +135,000, Large Business +116,000, Total +365,000, September 2020 was at +753,000, August 2020 +482,000, October 2019 +73,000. PR link.
The US Dept of Commerce/Census says the Preliminary September 2020 US Exports-Goods are at $122.8 billion, Services $53.6 billion, Total Exports $176.4 billion; September 2020 US Imports-Goods are at $203.5 billion, Services $36.8 billion, Total Imports $240.3 billion; September 2020 Deficit is at $63.9 billion, August 2020 Deficit was at $67.0 billion, July 2020 Deficit $63.4 billion, September 2019 Deficit $47.8 billion; Total Deficit 2020 YTD(9 months) is at $485.6 billion, Total Deficit 2019 YTD was at $446.8 billion. PR link.
The Institute for Supply Management says the October 2020 US Services PMI Index(>50% economy is growing) is at 56.6%, September 2020 was at 57.8%, August 2020 56.9%, October 2019 54.7%. “Respondents’ comments are cautiously optimistic about business conditions and the economy. There is a degree of uncertainty due to the pandemic, capacity constraints, logistics and the elections…” PR link.
IHS Markit says the October 2020 US Composite PMI Output Index is at 56.3, September 2020 was at 54.3, August 2020 54.6, October 2019 50.9. “…future business optimism showed a record surge, pulling prospects for the year ahead up to the highest for more than two years. Hopes of a brighter outlook were pinned on a vaccine ending the COVID-19 pandemic over the coming year and additional stimulus supporting the economy in the meantime.” PR link.
***Tuesday, November 3
***US General Elections, Vote!***
Nike(PBR82 $NKE) issues updated letter to state and local regulators in Oregon that it is reducing its Oregon based corporate headquarters workforce by around 700 positions by 01/08/21. PR link.
SYNNEX(PBR126 $SNX) Board approves separation into 2 independent companies, separation will occur through a pro rata distribution of all Concentrix stock to SYNNEX stockholders, Concentrix to start trading on NASDAQ on 12/01/20 with ticker CNXC, will be a technology-enabled global business services company starting with around $4.7 billion in annual revenues. PR link.
Huntsman(PBR430 $HUN) completes $285 million sale of its India based Do-It-Yourself (DIY) consumer adhesives business, part of the Advanced Materials division, to Pidilite Industries Ltd. PR link.
Twitter(PBR675 $TWTR) Management Structure Committee expressed its confidence in management and recommended that the current structure remain in place with Jack Dorsey as CEO, says its previously-authorized share repurchase program will commence this quarter. PR link.
The US Dept of Commerce/Census says the Preliminary September 2020 US Factory New Orders-Durables is at $237.4 billion, Non-Durables $237.6 billion, Total Factory New Orders $475.0 billion, August 2020 was at $469.8 billion, July 2020 $466.9 billion, September 2019 $495.6 billion. PR link.
The PurdueU/CME Group October 2020 US Ag Economy Barometer Composite Index is at a record 183, September 2020 was at 156, August 2020 144, October 2019 136. “The late summer/fall rally in commodity prices, combined with government program payments arising from the second round of the Coronavirus Food Assistance Program (CFAP 2), appeared to be the primary drivers behind the sentiment improvement.” PR link.
***Monday, November 2
AT&T(PBR9 $T) completes $1.95 billion sale of its wireless and wireline operations in Puerto Rico and the US Virgin Islands to Liberty Latin America, includes 1+ million wireless subscribers; and contracts, retains DIRECTV and certain global business customer relationships and FirstNet responsibilities and relationships. PR link.
Walgreens Boots Alliance(PBR19 $WBA) and McKesson(PBR8 $MCK) completes formation of the joint venture combining their respective pharmaceutical wholesale businesses in Germany, Alliance Healthcare Deutschland (AHD) and GEHE Pharma Handel (GEHE), WBA holds a 70% controlling equity interest, MCK holds the remaining 30% interest. PR link.
Starbucks(PBR108 $SBUX) plans to open an outlet in Laos as it expands its network of more than 10,000 stores in Asian countries. Associated Press PR link.
AFLAC(PBR141 $AFL)‘s Columbus and New York subsidiaries have completed under $200 million acquisition of Zurich N America‘s US Corporate Life and Pensions (Group Benefits) business, had reinsured annualized premium of approximately $120 million. PR link.
Carnival Corp(PBR153 $CCL) is extending its five N American cruise line’s existing pause in operations through December 2020. PR link.
NextEra Energy(PBR164 $NEE) to sell a 90% interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets and a 100% interest in a 100-MW solar-plus-storage project for approximately $1.3 billion to NextEra Energy Partners, LP (NYSE: NEP) and a consortium of private infrastructure investors led by KKR(PBR610 $KKR), proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities, including NEE’s more than 15,000-MW renewables backlog. PR link.
Dominion Energy(PBR194 $D) has closed on the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway(PBR6 $BRK.B) Energy unit for approximately $2.7 billion in cash and the transfer of approximately $5.3 billion of related indebtedness, operations include more than 5,500 miles of interstate gas transmission pipelines, about 775 billion cubic feet (Bcf) of gas storage that the company operates and an operating 25 percent stake in Cove Point; sale of the company’s interests in the Questar Pipelines to Berkshire to be completed in early 2021. PR link.
Estee Lauder(PBR222 $EL) says most of its retail stores worldwide were open by the end of its fiscal year 1Q21, September, 30% of sales were from online orders. PR link.
Boston Scientific(PBR289 $BSX) gets US FDA approval of the Ranger™ Drug-Coated Balloon, developed for the treatment of patients with peripheral artery disease (PAD) in the superficial femoral artery (SFA) and proximal popliteal artery (PPA). PR link.
Dana(PBR354 $DAN) to purchase a portion of the $300 million/year thermal-management business of Modine Manufacturing(PBR901 $MOD)‘s automotive segment for $1, to close in 1H21. PR link.
Nielsen Holdings(PBR448 $NLSN) to sell its consumer packaged goods manufacturers and retailers data and insights provider Nielsen Global Connect business to private equity firm Advent International in partnership with James “Jim” Peck, former TransUnion CEO for $2.7 billion, to close in 2Q21. PR link.
Norwegian Cruise Lines(PBR451 $NCLH) extends its suspension of global cruise voyages for its three cruise brands to include all voyages embarking in December 2020. PR link.
RR Donnelley(PBR457 $RRD) completes its $225 million in cash sale of its $530 million in revenues for year ending 06/30/20 DLS Worldwide Logistics business to TFI International(NYSE and TSX: TFII). PR link.
Camping World(PBR541 $CWH) authorizes an up to $100 stock repurchase program, expires 10/31/22. PR link.
Perrigo(PBR549 $PRGO) completes acquisition of three Eastern European OTC skincare and hair loss treatment brands, Emolium®, Iwostin® and Loxon® from Sanofi, terms not disclosed. PR link.
Laureate Education(PBR702 $LAUR) to sell its Brazilian operations, 11 higher education institutions with 267,000+ students, to Ânima Holding SA(B3: ANIM3) for around $765 million, to close in 2Q21, Anima to pay Ser the termination fee for Ser’s purchase agreement with Laureate. PR link.
Curtiss-Wright(PBR821 $CW) completes $400 million acquisition of privately held Portland, OR based 145 employees tactical communications solutions for battlefield network management provider PacStar. PR link.
Fluor(PBR220 $FLR) CEO Carlos Hernandez to retire his position and from the Board at the end of 2020, Board member and former Fluor executive David Constable appointed to be CEO effective 01/01/21. PR link.
The US Dept of Commerce/Census says the Preliminary September 2020 US Construction Spending Annual Rate-Residential is at $619.8 billion, Non-Residential $794.3 billion, Total $1,414.0 billion, August 2020 was at $1,410.4 billion, July 2020 $1,399.0 billion, September 2019 $1,315.2 billion. PR link.
The Institute for Supply Management/ says the US October 2020 Manufacturing PMI Index(>50% economy expanding) is at 59.3%, September 2020 was at 55.4%, August 2020 56.0%, October 2019 48.3%. “The manufacturing economy continued its recovery in October. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories; with every month, they are becoming more proficient at expanding output. Panel sentiment was optimistic (two positive comments for every cautious comment), a slight decrease compared to September.” PR link.
IHS Markit says the October 2020 US PMI Manufacturing Index is at 53.4, September 2020 was at 53.2, August 2020 53.1, October 2019 51.3. “With clues being sought as to whether the economy can sustain its recovery after rebounding from lockdowns, the rise in the PMI in October is encouraging news. It’s inevitable that the pace of economic expansion will weaken after the surge seen in the third quarter, but the strength of the PMI hints at a recovery for which the underlying trend continues to strengthen at the start of the fourth quarter.” PR link.
TrueCar and ALG say the October 2020 Forecast for US Total Monthly New Car Sales is at 1,307,998, Average Incentive Outlay is at $3,869, Average Transaction Price $37,018, Average New Car Loan Rate 5.7%. PR link.
***Friday, October 30
The PBRMarketTools US Stock Exchanges Recap for October and Week 44 of 2020 ending 10/30/20:
DJIA ends October and Week 44 at 26,501.60, -6.47% from last Friday, -4.61% MTD/QTD, -7.14% YTD, -10.32% from record 29,551.42 set 02/12/20.
NASDAQ ends October and Week 44 at 10,911.59, -5.51% from last Friday, -2.29% MTD/QTD, +21.61% YTD, -9.50% from record 12,056.44 set 09/02/20.
SPX ends October and Week 44 at 3,269.96, -5.64% from last Friday, -2.77% MTD/QTD, +1.21% YTD, -8.68% from record 3,580.84 set 09/02/20.
The Week 44 of 2020 tally YTD is:
The Stock Market Bull: 21 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 5 weeks
The October 2020 tally YTD is:
The Stock Market Bull: 5 months
The Stock Market Bear: 4 months
Mixed Results: 1 months
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