The PBR1000 for February: A Roller Coaster Month?

A global pandemic that won’t go away, economies worldwide struggling, a new administration in the US with a different, or in some cases back to a previous direction, a 50/50 split in the Senate, delayed stimulus assistance, racial injustice, wealth and gender inequalities, all make for a month, or perhaps the whole year, one of unpredictable ups and downs, twists and turns. Buckle up, get ready to raise your hands high and scream as loud as you can as we ride a roller coaster in a world of uncertainties.

The February 2021 breaking news items of interest for The PBR1000 follow with the most current date first.

***Friday, February 26

The US Stock Exchanges Recap for February and Week 8 of 2021 ending 02/26/21:

DJIA ends Week 8 at 30,932.37, -1.78% from last Friday, +3.17% MTD, +1.06% QTD/YTD, -3.22% from record 31,961.86 set 02/24/21.

NASDAQ ends Week 8 at 13,192.35, -4.92% from last Friday, +0.93% MTD, +2.36% QTD/YTD, -6.41% from record 14,095.47 set 02/12/21.

SPX ends Week 8 at 3,811.15, -2.45% from last Friday, +2.61% MTD, +1.47% QTD/YTD, -3.14% from record 3,934.83 set 02/12/21.

US Stock Exchanges Week 8 of 2021 News Summary:

The Stock Market Bull was smarting from his lackluster showing in Week 7 and tried to take charge of the pasture, even achieving a new record on Wednesday on the DJIA. But The Stock Market Bear started Week 8 focused on the tech sector, viciously taking down the NASDAQ on Monday. By Friday his lust for more blood expanded into the DJIA ripping it for an over 1,000 point loss the last two days of the week. The Stock Market Bear easily gets a 3-0 victory for Week 8, but The Stock Market Bull wins February 3-0 because of his strong showing in the first couple of weeks. Here comes March and, as usual, predictions are all over the place, making us wonder if it will be another form of “March Madness!” Enjoy the game.

The February 2021 tally YTD is:

• The Stock Market Bull: 1 month
• The Stock Market Bear: 0 months
• Mixed Results: 1 month

The Week 8 of 2021 tally YTD is:

• The Stock Market Bull: 4 weeks
• The Stock Market Bear: 3 weeks
• Mixed Results: 1 week

Week 8 News Summary:

Coronavirus Pandemic: As of today, Friday, 02/26/21, at 2:22PM Eastern US, the John Hopkins University CSSE unit says there are now 113,267,921 confirmed cases globally with 2,513,380 deaths, an increase from last Friday of 62,881, which is -6,800 from last Friday. For the US it is 28,464,252 confirmed cases and 509,710 deaths, an increase from last Friday of 14,204, which is -578 from last Friday. The US has vaccinated 50,000,000+ so far in the new year and is easily exceeding 1 million vaccinations per day. It is anticipated that Johnson & Johnson’s single shot COVID-19 vaccine candidate will receive Emergency Use Authorization by the US FDA as soon as possibly today, joining Pfizer/BioNTech and Moderna with that authorization. Walgreens and CVS also announced they will be receiving doses at most of their pharmacies very soon. While there are still some manufacturing, logistical, and federal/state/local issues, the vaccination programs seem to be doing well. During the week President Biden lead a somber ceremony about having reached the 500,000 deaths mark in the US.

US Federal Government: The US House is expected to pass its $1.9 trillion stimulus package this evening. It will then be forwarded to the US Senate. The $15/hour minimum wage part has been deemed in conflict with other previously passed legal actions, and work arounds are being discussed. President Biden’s nominees for high level federal government positions are being approved by the US Senate mostly on a bipartisan basis. President Biden has signed some more executive orders re-implementing some Obamacare era items, and addressing semiconductor chip manufacturing shortages that can affect defense projects and the broader commercial industries. There have been some hearings on the January 6 insurrection attempt with a focus on what was known prior to the attack, preparations for the day, and communications between law enforcement and military groups.

US Economy: Wages showed a significant uptick, weekly initial unemployment insurance claims fell more than expected, mortgage rates increased but are still near record lows, housing prices increased, new car prices are up, the projected building of new homes was up, oil prices increased, gold as well with some fluctuations. Consumer and business surveys continued to be optimistic based on the belief that the COVID-19 crisis will be ending and businesses will get back to some kind of comparable normalcy before the pandemic. Federal Reserve Chairman Powell testified before Congress indicating that inflation concerns are not yet worrisome. Similar thoughts were reflected by other members of the Federal Reserve throughout the week. Bitcoin and other digital currencies were discussion items throughout the week as the Bitcoin price took a significant leap up. New Secretary of the Treasury and former Federal Reserve Chair Janet Yellen provided some opinions on these monetary options. Bond yields increased significantly because of inflationary fears by some key players.

Corporate Business: Annual corporate earnings reports and associated investor days were generally above expectations except for hospitality, travel, and related industries which have been hard hit. More companies announced increased dividends and restarted share buyback programs.

International News: . There was an airstrike against Iranian troops in Syria to stir up some controversies in that part of the world. The US released intelligence that says Saudi Arabia’s Crown Prince Mohammad bin Salman approved the operation to capture or kill Washington Post journalist Jamal Khashoggi. Myanmar continues to struggle with the military’s overthrow of its government. The US and European Union placed some sanctions on Russia. COVID-19 cases appear to be increasing in parts of Europe with continued concerns about variants.

Daily Corporate News:

United Airlines(PBR75 $UAL) reaches agreement with the US Dept of Justice to pay over $49 million to resolve criminal charges and civil claims relating to fraud on postal service contracts for transportation of international mail. USDOJ PR link.

Thermo Fisher Scientific(PBR113 $TMO) completes around $450 million in cash plus up to $100 million for milestone achievements acquisition of Mesa Biotech, a privately held molecular diagnostic company, includes its Accula System which has received Emergency Use Authorization (EUA) from the US FDA for SARS-CoV-2 in vitro diagnostic testing and is now available for use in patient care settings, providing results within 30 minutes, with higher accuracy than other rapid tests on the market. PR link.

Eli Lilly(PBR138 $LLY) gets $210 million US government order for a minimum of 100,000 doses of bamlanivimab (LY-CoV555) 700 mg and etesevimab (LY-CoV016) 1400 mg together for the treatment of recently diagnosed, mild to moderate COVID-19 in patients who are at high risk of progressing to severe COVID-19 and/or hospitalization, will have the option to purchase up to an additional 1,100,000 doses through 11/25/21 under the same terms. PR link.

Diamondback Energy(PBR630 $FANG) completes $375 million in cash and 10.68 million shares of the Company’s common stock acquisition of leasehold interests and related oil and gas assets of Guidon Operating LLC, a portfolio company of Blackstone Energy Partners, includes approximately 32,500 net acres in the Northern Midland Basin. PR link.

Cinemark(PBR698 $CNK) says as of 12/31/20 it had 217 domestic and 129 international theatres open to limited hours, showing library content and some new releases with some limitations on capacities, 4Q20 attendance was 6.6 million patrons, average ticket price was $7.42 and concession revenues per patron was $4.75, total attendance for 2020 was 54.3 million, net loss for 2020 was $616.8 million vs profit of $191.4 in 2019. PR link.

Daily Economic News:

The US Dept of the Treasury says on 02/24/21 the US National Debt-Public is at $21.721 trillion, Intragovernmental $6.152 trillion, 02/24/21 US Total National Debt is $27.873 trillion, 01/31/21 was at $27.829 trillion, 12/30/20 $27.747, 02/28/20 $23.410. PR link.

The US Dept of Commerce/BEA says the Preliminary January 2021 US Total Personal Income Annual Rate is at $21.454 trillion, December 2020 was at $19.499 trillion, November 2020 $19.386 trillion, January 2020 $18.973 trillion. PR link.

The US Dept of the Treasury says on 02/26/21 the US 10 Year Treasury Note Yield is at 1.44%, 01/29/21 was at 1.11%, 12/31/20 0.93%, 02/28/20 1.13%. PR link.

MNI Indicators says the Preliminary February 2021 Chicago Business Barometer(>50 economy gaining) is at 59.5, January 2021 was at 63.8, December 2020 58.7, February 2020 48.9. “Among the main five indicators, New Orders saw the largest monthly decline, followed by Production. Employment recorded the biggest gain.” PR link.

The American Automobile Assn says on 02/26/21 the US Average Regular Unleaded Gas Price is at $2.699, 01/29/21 was at $2.422, 12/31/20 $2.253, 02/29/20 $2.447. PR link.

The U of Michigan Final February 2021 Consumer Sentiment Index is at 76.8, January 2021 was at 79.0, December 2020 80.7, February 2020 101.0. “Perhaps the most attention has been garnered by rising inflationary expectations. The year ahead inflation rate was expected to be 3.3% in February, up from 3.0% last month and 2.5% in December. While consumers clearly anticipate a spurt in inflation in the year ahead, the overall evidence does not indicate the emergence of an inflationary psychology that makes the expectation of inflation a self-fulfilling prophecy.” PR link.

***Thursday, February 25

Daily Corporate News:

AT&T(PBR10 $T) and TPG to establish a new company named DIRECTV (“New DIRECTV”) that will own and operate AT&T’s US video business unit consisting of the DIRECTV, AT&T TV and U-verse video services, implies an enterprise value for the new company of $16.25 billion, AT&T to own 70%, TPG 30%, AT&T will receive $8 billion, to close in 2H21. PR link.

Costco(PBR11 $COST) is raising its starting minimum wage to $16/hr beginning next week, over half of US hourly workers make over $25/hr, according to CEO. NPR PR link.

Target(PBR36 $TGT) will double Apple(PBR3 $AAPL)’s footprint in select Target stores and expand offerings in stores and online, starting with 17 stores, will roll out more throughout 2021. PR link.

Facebook(PBR47 $FB) agrees to payment deals with 3 Australian news publishers. MarketWatch PR link.

PepsiCo(PBR50 $PEP) launches Neon Zebra, a new line of non-alcoholic cocktail mixers, each 7.5oz mini-can of Neon Zebra mixed with spirit of choice, makes two cocktails. PR link.

Merck(PBR68 $MRK) to acquire Pandion Therapeutics(Nasdaq: PAND), a clinical-stage biotechnology company developing novel therapeutics for patients living with autoimmune diseases, for $60/share cash, an equity value of around $1.85 billion, to close in 1H21. PR link.

Best Buy(PBR73) in 4Q21 conference call CEO says it has closed approximately 20 large-format locations each of the past 2 years, and expect to close a higher number this year, also have been reducing the length of the average lease term, started year with 123,000 employees, finish with 102,000, in February laid off and provided severance to approximately 5,000 in place, the majority of which were full time, at the same time are adding approximately 2,000 additional part-time positions. PR link.

Best Buy(PBR73 $BBY) authorizes new $5.0 billion share repurchase program, replaces 02/19 authorization which had $1.7 billion remaining. PR link.

3M(PBR98 $MMM) wins patent infringement case in China regarding its BCA-T (Blue Ceramic Abrasive Triangle) abrasive grain technology. PR link.

Weyerhaeuser(PBR440 $WY) to purchase 69,200 acres of high-quality timberlands in southwest Alabama from Soterra, a subsidiary of Greif(PBR576 $GEF) for approximately $149 million, to close in 2Q21. PR link.

Signet Jewelers(PBR461 $SIG) is raising its US minimum wage to $15 an hour for both full-time and part-time positions. PR link.

Hasbro(PBR560 $HAS) at virtual investor event announces restructuring, new financial reporting segments are: Consumer Products, including toys and games; Wizards of the Coast (Wizards) and Digital Gaming; and Entertainment, provides update on its products and services. PR link.

Hasbro(PBR560 $HAS) is officially renaming the MR. POTATO HEAD brand to POTATO HEAD to better reflect the full line, the iconic MR. and MRS. POTATO HEAD characters will remain MR. and MRS. POTATO HEAD. PR link.

iHeartMedia(PBR649 IHRT) restructuring into 2 reportable units, the iHeartMedia Digital Audio Group and the iHeartMedia Multiplatform Group. PR link.

Twitter(PBR676 $TWTR) provides update on new products and services plans at its Analyst Day event. PR link.

SeaWorld(PBR974 $SEAS) in 4Q20 report says attendance was 6.4 million guests, a decline of 16.3 million guests from fiscal 2019, total revenue was $431.8 million, a decline of $966.5 million from fiscal 2019, 7 of 12 parks were open at end of 4Q20. PR link.

Daily Economic News:

The US Dept of Commerce/BEA says that the 4Q20 2nd Estimated US Annual Gross Domestic Product is at +4.1%, $21.5 trillion, 3Q20 was at $21.2 trillion, 2Q20 $19.5 trillion, 4Q19 $21.7 trillion. PR link.

The US Dept of Labor says for week ending 02/20/21 the US Weekly State Initial Jobless Claims is at 730.000, 01/23/21 was at 847,000, 12/26/20 787,000, 02/22/20 219,000; for week ending 02/13/21 the US Total Insured Unemployment is at 4,419,000 with an Insured Unemployment Rate of 3.1%, 02/15/20 was at 1,724,000 with an Insured Unemployment Rate of 1.2%. PR link.

FreddieMac says on 02/25/21 the US Average 30 Year Fixed Mortgage Rate is at 2.97% with 0.6 points/fees, 01/28/21 was at 2.73%, 12/31/20 2.67%, 02/27/21 3.45%. “Optimism continues as the economy slowly regains its footing, thus affecting mortgage rates. Though rates continue to rise, they remain near historic lows. However, when combined with demand-fueled rising home prices and low inventory, these rising rates limit how competitive a potential homebuyer can be and how much house they are able to purchase.” PR link.

The US Federal Housing Finance Agency announces that borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional three-month extension of COVID-19 forbearance, allows borrowers to be in forbearance for up to 18 months. PR link.

***Wednesday, February 24

Daily Corporate News:

ExxonMobil(PBR4 $XOM) to sell most of its non-operated upstream assets in the UK central and northern North Sea for $1+ billion, has additional upside of approximately $300 million in contingent payments based on potential for increase in commodity prices. PR link.

CVS Health(PBR5 $CVS) will administer COVID-19 vaccines in six additional states, approximately 570,000 doses available across 17 states through latest allocation. PR link.

Walgreens Boots Alliance(PBR18 $WBA) to sell Pixel by Labcorp COVID-19 PCR Test Home Collection Kits over-the-counter in up to 6,000 Walgreens stores nationwide beginning in spring of this year, no prescription required, $0 if meet certain requirements, $119 otherwise. PR link.

Verizon(PBR20 $VZ) is primary winner in the US FCC‘s C-Band auction for 5G spectrum, spends $45.5 billion, AT&T(PBR10 $T) spends $23.4 billion, total spend for 5 bidders was $81.2 billion. US FCC PR link.

IBM(PBR38 $IBM) Credit subsidiary to redeem $1.75 billion of outstanding debt and deregister with the SEC, no longer requires direct access to the public capital markets. PR link.

Lowe’s(PBR44 $LOW) in 4Q20 earnings call says it plans to spend $9 billion on share repurchases this year, used $5 billion last year. The Motley Fool PR link.

Australia passes new law requiring Facebook(PBR47 $FB) and Alphabet(PBR12 $GOOG)’s Google unit to pay for news. CNN PR link.

Facebook(PBR47 $FB) blog talks about the Australia actions regarding news reporting and why FB made its decisions, says it has invested $600 million since 2018 to support the news industry, and plans at least $1 billion more over the next three years. PR link.

HP(PBR57 $HPQ) to acquire provider of gaming headsets, keyboards, mice, USB microphones, and console accessories HyperX, the gaming division of Kingston Technology Co, for $425 million, to close in 2Q21. PR link.

TJX Cos(PBR78 $TJX) in 4Q21 report says open-only comp store sales were down only 3%, exceeding plans, approximately 690 stores are temporarily closed due to government mandates in response to the COVID-19 global pandemic, vast majority are located in Europe, expects will continue to be that way for 1Q22. PR link.

AbbVie(PBR95 $ABBV) gets US FDA approval for HUMIRA® (adalimumab) for the treatment of moderately to severely active ulcerative colitis in pediatric patients 5 years of age and older. PR link.

ViacomCBS(PBR103 $VIAC) unveils strategy for Paramount+ streaming service, includes content catalog of more than 30,000 episodes, 2,500 movie titles and over 1,000 live sporting events, plus around-the-clock news coverage. PR link.

Gap Inc(PBR195 $GPS) to invest $140 million in a new state-of-the-art Customer Experience Center in Longview, TX, to meet the rising customer demand for online shopping and reach its future plans for digital growth, will create 500+ full-time jobs in by end of 2023, will grow to 1,000+ full-time jobs over the next five years, and expects to create more than 1,000 part-time and seasonal jobs by 2026. PR link.

AutoZone(PBR247 $AZO) to provide an additional $100 to employees after they complete their COVID-19 vaccination. PR link.

Bausch Health(PBR352 $BHC) reaches agreement with 7.83% shareholder Icahn Enterprises(PBR317 $IEP) and associates, increases Board by two members of Icahn’s choosing. PR link.

Quest Diagnostics(PBR387 $DGX) introduces a new COVID-19 testing service that aids in providing insight into an individual’s immune response as a result of a recent or prior infection with SARS-CoV-2 or to immune response observed in connection with COVID-19 vaccination. PR link.

Carnival Corp(PBR489 $CCL)’s Princess Cruises extends pause of certain cruises to select Alaska, New England, and Pacific Coast sailings through 2021. PR link.

Carnival Corp(PBR489 $CCL)’s Seabourn ultra-luxury cruise line is cancelling all 19 of its 2021 Alaska/British Columbia departures. PR link.

Carnival Corp(PBR489 $CCL)’s Holland America Line is extending its pause of cruise operations to now include all sailings that depart from or conclude in a Canadian port in 2021, include several Alaska, three Canada/New England and two Pacific Coastal cruises in summer and fall of this year and also includes all Land+Sea Journeys. PR link.

Carnival Corp(PBR489 $CCL) pause in operations from US ports has been extended through 05/31/21. PR link.

Iron Mountain(PBR603 $IRM) to form a joint venture with Web Werks, one of India’s top colocation data center providers, expects to invest $150 million over the next two years, anticipates being the majority investor, Web Werks operates three Tier 3, carrier-neutral data centers, in Mumbai, Pune and Delhi NCR. PR link.

Autodesk(PBR700 $ADSK) to acquire Portland, OR-based Innovyze, a global leader in water infrastructure software, for $1 billion cash, to close by 04/30/21. PR link.

Crocs(PBR987 $CROX) in 4Q20 earnings call says it sold 18.9 million pairs of shoes in 4Q20, an increase of 37.7% over 4Q19, average selling price during Q4 increased 13.7% to $21.63. The Motley Fool PR link.

Daily Economic News:

The US Dept of Commerce/HUD says the Preliminary January 2021 US New Family Homes Sold Annual Rate is at 923,000, December 2020 was at 885,000, November 2020 839,000, January 2020 774,000. PR link.

The US Energy Information Administration says that the 02/19/21 US Crude Oil Reserves in Millions of Barrels is at 463.0, 01/22/21 was at 476.7, 12/25/20 493.5, 02/21/20 443.3. PR link.

The National Retail Federation issued its annual forecast, anticipating that retail sales will grow between 6.5 percent and 8.2 percent to more than $4.33 trillion in 2021 as more individuals get vaccinated and the economy reopens. PR link.

***Tuesday, February 23

Daily Corporate News:

Wells Fargo(PBR26 $WFC) to sell its $603 billion in assets under management, 24 offices globally, and specialized investment teams supported by more than 450 investment professionals Wells Fargo Asset Management unit to GTCR and Reverence Capital Partners for $2.1 billion, to close in 2H21. PR link.

Home Depot(PBR27 $HD) on 4Q20 conference call says cordless tools are easier to use, more environmentally friendly, and have the power and runtime to get most jobs done, will be a focus for this spring. PR link.

Johnson & Johnson(PBR35 $JNJ)’s Janssen unit VP sends a letter to a US House Commerce subcommittee stating that upon approval for Emergency Use Authorization by the US FDA they should be able to provide 20 million doses of its COVID-19 vaccine candidate for use in the US, 100 million doses by 06/30/21. PR link.

Facebook(PBR47 $FB) says the Australian government has agreed to a number of changes and guarantees that address FB’s core concerns about allowing commercial deals that recognize the value its platform provides to publishers relative to the value FB receives from them, will be restoring news on Facebook over the next few days. PR link.

Estee Lauder(PBR219 $EL) to increase its investment in the Canadian-based, vertically integrated, multi-brand company, DECIEM Beauty Group from approximately 29% to approximately 76% , to close by 06/30/21, EL to purchase the remaining interests after a three-year period. PR link.

Oshkosh(PBR423 $OSK) Defense unit awarded a US Postal Service proposal, will provide between 50,000 and 165,000 vehicles over a period of 10 years, the USPS’s first large-scale fleet procurement in three decades. PR link.

Marriott Intl(PBR151 $MAR) appoints Group President, Global Development, Design and Operations Services Anthony “Tony” Capuano as CEO and member of the Board, effective immediately, follows the unexpected passing of Marriott President/CEO Arne Sorenson on 02/15/21. PR link.

Daily Economic News:

The Conference Board says the Preliminary February 2021 US Consumer Confidence Index(1985=100) is at 91.3, January 2021 was at 88.9, December 2020 87.1, February 2020 132.6. “… consumers remain cautiously optimistic, on the whole, about the outlook for the coming months. Notably, vacation intentions—particularly, plans to travel outside the U.S. and via air—saw an uptick this month, and are poised to improve further as vaccination efforts expand.” PR link.

The S&P/CoreLogic/Case-Shiller Preliminary December 2020 US National Home Price Index(01/2000=100) is at 234.40, November 2020 was at 232.41, October 2020 229.92, December 2019 212.37, December 2018 201.81. “As COVID-related restrictions began to grip the economy in early 2020, their effect on housing prices was unclear. Price growth decelerated in May and June, and then began a steady climb upward, and December’s report continues that acceleration in an emphatic manner. 2020’s 10.4% gain marks the best performance of housing prices in a calendar year since 2013…” PR link.

TrueCar forecasts February 2021 New Light Vehicle Sales-Retail to be at 967,545 units, Fleet 203,311 units, Total 1,170,856 units, January 2021 was at 1,109,578 units, December 2020 1,619,907 units, February 2020 1,373,324 units; forecasted February 2021 Average Transaction Price is at $38,075, January 2021 $37,558, December 2020 $39,089, February 2020 $35,709. PR link.

The US Federal Bank of Philadelphia says the February 2021 US 3rd District Non-Manufacturing Current General Activity Index(Region) is at +3.9, January 2021 was at -17.5, December 2020 -26.6, February 2020 +31.0. “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 February 2021 US 5th District Manufacturing Index(Annualized) is at +14%, January 2021 was also at +14%, December 2020 +19%, February 2020 -2%. “The Fifth District manufacturing activity continued to improve in February… Manufacturers were optimistic that conditions would improve in the coming months.” PR link.

The US Federal Reserve Bank of Richmond says the February 2021 US 5th District Service Sector Revenue Index(Annualized) is at -6%, January 2021 was at -3%, December 2020 -9%, February 2020 +26%. “Fifth District service sector firms reported mixed conditions in February… Survey respondents were optimistic that conditions would improve in the next six months.” PR link.

***Monday, February 22

Daily Corporate News:

Kroger(PBR22 $KR) confirmed that it was impacted by the data security incident affecting Accellion whose services were used by Kroger, as well as many other companies, for third-party secure file transfers, believes potential loss is less than 1% of customers impacted, those possibly affected are from Kroger Health and Money Services, did not affect any Kroger Family of Companies’ IT systems or any grocery store systems or data, no credit or debit card information or customer account passwords were affected. PR link.

Boeing(PBR40 $BA) recommends suspending operations for 69 in-service and 59 in storage Boeing 777’s per Pratt & Whitney engine problem over Demver, CO, US FAA is investigating and has taken that action. PR link.

CBRE(PBR122 $CBRE) to pay around $200 million and transfer its flex-space Hana unit to Industrious, a provider of private offices and suites, CBRE will have a 35% stake in Industrious, plans to acquire an additional 5% in a few months, is the largest shareholder. PR link.

Kohl’s(PBR158 $KSS) gets open letter from investor group lead by Macellum Capital Management saying Kohl’s has chronically underperformed its peers, presents 9 nominees for the Board to be elected at 2021 annual meeting. Macellum PR link.

Kohl’s(PBR158 $KSS) responds to investor group lead by Macellum Capital Management, rejects the Investor Group’s attempt to seize control of its Board and disrupt its momentum. PR link.

Goodyear Tire(PBR209 $GT) to acquire Cooper Tire & Rubber(PBR786 $CTB) for a total enterprise value of approximately $2.5 billion, $54.36/share cash and stock, to close in 2H21. PR link.

Kinder Morgan(PBR234 $KMI) and Brookfield Infrastructure Partners(NYSE: BIP; TSX: BIP.UN) to sell a 25% minority interest in their joint venture Natural Gas Pipeline Co of America to ArcLight Capital Partners for $830 million, KMI to continue to operate the pipeline, will have a 37.5% stake, as will Brookfield. PR link.

DISH(PBR244 $DISH) says it closed 4Q20 with 11.29 million pay-TV subscribers, 9.06 million retail wireless subscribers, revenues of $15.49 billion compared to $12.81 billion in 2019. PR link.

Discovery(PBR276 $DISCA) in 4Q20 report says it expects to have 12 million subscribers by the end of the month, is off to a promising start in 2021 with the successful launch of discovery+ streaming service. PR link.

Regeneron(PBR380 $REGN) and Sanofi get US FDA approval for PD-1 inhibitor Libtayo® (cemiplimab-rwlc) for the first-line treatment of certain patients with advanced non-small cell lung cancer. PR link.

M&T Bank(PBR419 $MTB) to acquire People’s United Financial(PBR853 $PBCT) in an all stock transaction for around $7.6 billion, to close in 4Q21. PR link.

Carnival Corp(PBR489 $CCL) commences an underwritten public offering of $1 billion of shares of common stock, proceeds to be used for general corporate purposes. PR link.

AMC Entertainment(PBR502 $AMC) to reopen its 13 theatres in New York City on 03/05/21, is in response to NY Governor Cuomo’s authorization. PR link.

Camping World(PBR539 $CWH) to acquire Lee’s Family Trailer in Windham, ME, will be the company’s first location in the state of Maine, will rebrand as Camping World, to close in 04/21. PR link.

KKR(PBR608 $KKR) will acquire a 60% majority stake for around $1 billion in Telefónica Chile’s existing fiber optic network, the largest fiber optic network in Chile, and make that network open access through a newly established independent Chilean company with assets managed locally, to close in 1H21. PR link.

Hologic(PBR645 $HOLX) completes $230 million acquisition of Biotheranostics, a privately held, commercial-stage company that provides molecular diagnostic tests for breast and metastatic cancers. PR link.

Daily Economic News:

The US Federal Reserve Bank of Chicago says the Preliminary January 2021 US National Activity Index is at +0.66, December 2020 was at +0.41, November 2020 +0.31, January 2020 -0.05. “Index suggests economic growth increased in January.” PR link.

The Conference Board says the Preliminary January 2021 US Leading Index(2016=100) is at 110.3, December 2020 was at 109.8, November 2020 109.4. “As the vaccination campaign against COVID-19 accelerates, labor markets and overall growth are likely to continue improving through the rest of this year … The Conference Board now expects the U.S. economy to expand by 4.4 percent in 2021, after a 3.5 percent contraction in 2020.” PR link.

***Friday, February 19

The US Stock Exchanges Recap for Week 7 of 2021 ending 02/19/21:

DJIA ends Week 7 at 31,494.32, +0.11% from last Friday, +5.04% MTD, +2.90% QTD/YTD, -0.38% from record 31,613.02 set 02/17/21.

NASDAQ ends Week 7 at 13,874.46, -1.57% from last Friday, +6.15 MTD, +7.65% QTD/YTD, -1.57% from record 14,095.47 set 02/12/21.

SPX ends Week 7 at 3,906.71, -0.71% from last Friday, +5.18% MTD, +4.01% QTD/YTD, -0.71% from record 3,934.83 set 02/12/21.

US Stock Exchanges Week 7 of 2021 News Summary:

The week started out with Presidents’ Day on Monday, a federal holiday originally meant to commemorate the birthday of the first president of the US, George Washington. It was also the day after Valentine’s Day. The US stock markets were closed and it set a rather mellow mood for Week 7. The Stock Market Bull was pretty focused on the DJIA which established new records on Tuesday and Wednesday. But The Stock Market Bear was focused the NASDAQ, which lost some ground Tuesday through Thursday and was up only slightly on Friday. To add to the weekly balance The Stock Market Bear took the S&P500 on all four days. It was the second week in a row when none of the indices had volatile days, meaning no index was up or down by at least 1% on any of the days. The bottom line is that The Stock Market Bear had a 2-1 mixed result, the first of the year, in Week 7. As usual, some prognosticators are saying that this reflects an overbought market, doomsayers are saying to expect a huge correction dip, and the eternal optimists are saying The Stock Market Bull still has a lot of pent up energy and just took a little breather this week. It has been a good month so far for The Stock Market Bull, let’s see if he manages to avoid The Stock Market Bear from ruining his Valentine month.

The Week 7 of 2021 tally YTD is:

• The Stock Market Bull: 4 weeks
• The Stock Market Bear: 2 weeks
• Mixed Results: 1 week

Week 7 News Summary:

Coronavirus Pandemic: As of today, Friday, 02/19/21, at 6:23PM Eastern US, the John Hopkins University CSSE unit says there are now 110,687,323 confirmed cases globally with 2,450,499 deaths, an increase from last Friday of 69,681, which is -17,721 from last Friday. For the US it is 27,999,565 confirmed cases and 495,506 deaths, an increase from last Friday of 14,782, which is -7,837 from last Friday. The COVID-19 vaccine companies continue to ramp up manufacturing, federal, state and local governments are becoming more efficient with scheduling appointments, the logistics seem to be working better, and an average of well over a million injections are occuring across the US each day. It appears that the program could be completed by mid-summer to early fall. However, there are concerns that COVID-19 variants might require an additional booster, but more testing is being done to verify if that is true.

US Federal Government:  President Biden continues to sign Executive Orders undoing some of the Trump-era policies, re-instating some of the Obama-era initiatives, and making some headway in introducing some new actions. In particular, he released some suggested immigrant policies which are being hotly discussed. The stimulus program seems to be gaining some momentum, but it appears that the much anticipated stimulus checks will probably be sent out in late March/early April. As expected, the second impeachment trial of former President Trump ended last Saturday with an acquittal by the US Senate, with some Republicans joining all the Democrats in voting for the action, which came up 3 votes shy of being passed. There are still some repercussions from the January 6 insurrection attempt and US House Speaker Pelosi has announced that a commission will be formed to gather the facts.

US Economy:  It was a short and light week of economic news. But the Thursday weekly initial jobless claims jumped up quite a bit, and a previous estimate was raised up considerably. Also, the Producer Price Index took a significant leap up, indicating possible inflation issues in the future. Leaders on the US Federal Reserve generally indicated that this is just one month, they still have tools available to control inflation. Mortgage rates went up a little but are still near lows. In general manufacturing results indicated continuing growth and cautious optimism in the near future.

Corporate Business:  The annual corporate earnings reports for the large majority of companies with fiscal years ending in December continue to be released and investor presentations delivered. Except for the major hospitality and travel related companies results are better than what many had anticipated during the start of the COVID-19 crisis. Many companies have increased their dividends and restarted share buyback programs.

International News: . President Biden had some more initial conversations with world leaders and has made some strong statements about China as competition. He also had a first call with Prime Minister of Israel Benjamin Netanyahu. Myanmar continues to struggle as the military continues to be in charge and sanctions are coming in worldwide. On his first day in office President Biden signed an Executive Order re-establishing the US as a member of the Paris Climate Change Accord. The mandatory 30 days waiting period has finished and the US is now officially part of that agreement. Initial discussions on rejoining the Iran nuclear agreement are also being held. In general the world continues to go the way of the COVID-19 pandemic and there are concerns about the UK and South Africa variants being more contagious and deadly, and that the latest vaccines might not provide enough protection against them.

Daily Corporate News:

Walgreens Boots Alliance(PBR18 $WBA) has provided more than 3 million COVID-19 vaccinations across long-term care facilities, as well as additional vulnerable populations prioritized by state and local jurisdictions, has also completed COVID-19 vaccine first-dose clinics in all long-term care facilities that selected Walgreens as a vaccine provider, through the US Federal Retail Pharmacy Program on 02/12/21 began in-store vaccinations in 17 states and jurisdictions, starting 02/25/21 will be allocated 480,000+ doses per week in around 25 states & jurisdictions. PR link.

Cisco(PBR66 $CSCO) completes $730 million acquisition of IMImobile PLC (AIM: IMO), a global provider of cloud communications software and services that manage business-critical interactions at scale. PR link.

MGM Resorts(PBR240 $MGM)’s BetMGM and Topgolf Entertainment Group collaborate on marketing and promotional offers through the BetMGM platform at select Topgolf venues and within WGT by Topgolf, its online golf game. PR link.

Daily Economic News:

The Natl Assn of Realtors says the Preliminary January 2021 US Existing Home Sales Annual Rate is at 1,690,000, December 2020 was at 6,650,000, November 2020 6,710,000, January 2020 5,410,000; the January 2021 Median Price(All Types of Housing) is at $303,900, December 2020 was at $309,800, November 2020 $310,800, January 2020 $266,300. “Home sales are continuing to play a part in propping up the economy… With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.” PR link.

***Thursday, February 18

Daily Corporate News:

Walmart(PBR1 $WMT) 4Q21 report shows annual revenues of nearly $560 million, approves a new $20 billion share buyback program. PR link.

Walmart(PBR1 $WMT) raising pay for 425,000 store associates in digital and stocking workgroups, starting rates moving to $13 – $19 per hour, based on the store’s location and market. PR link.

Pfizer(PBR63 $PFE) and BioNTech SE(NASDAQ: BNTX) dosed the first patients in a trial of their messenger RNA COVID-19 vaccine in 4,000 women in the latter stages of pregnancy. Bloomberg PR link.

Eli Lilly(PBR138 $LLY) and Rigel Pharmaceuticals(Nasdaq: RIGL) enter strategic collaboration to develop RIPK1 inhibitors for the potential treatment of immunological and neurodegenerative diseases, Lilly will pay an upfront cash payment to Rigel of $125 million, Rigel may also be eligible to receive up to $835 million in potential development, regulatory, and commercial milestone payments, as well as tiered royalties. PR link.

Sherwin-Williams(PBR170 $SHW) to divest Wattyl, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings with annual revenue of approximately $200 million USD and 750 employees, to global coatings company Hempel A/S; Wattyl was previously a unit of Valspar which SHW acquired in 2017, to close in 1Q21, terms not disclosed. PR link.

ODP Corp(PBR290 $ODP) has acquired BuyerQuest Holdings, has delivered a world-class eCommerce experience to procurement organizations all around the world, accelerates ODP’s technology development. PR link.

Camping World(PBR539 $CWH) to acquire two dealership locations of Flagg RV in Uxbridge, MA and West Boylston, MA, and additional land in Griswold, CT for a planned future location, terms not disclosed, to close in 04/21. PR link.

KKR(PBR608 $KKR) sells five major student housing developments with a total of 2,163 units across the UK to Greystar Real Estate Partners for around $400 million. PR link.

Twilio(PBR991 $TWLO) has commenced an underwritten public offering of $1,000,000,000 of shares of its Class A common stock. PR link.

Daily Economic News:

The US Dept of Labor says the Preliminary January 2021 US Import Prices Monthly Change is at +1.4%, December 2020 was at +1.0%, November 2020 +0.1%, Year-Over-Year +0.9%; January 2021 US Export Prices Monthly Change is at +2.5%, December 2020 was at +1.3%, November 2020 +0.7%, January 2020 +0.5%, Year-Over-Year +2.3%. PR link.

The US Dept of Commerce/HUD says the Preliminary January 2021 US New Residential Construction Building Permits Issued Annual Rate is at a 1,881,000, December 2020 was at 1,704,000, November 2020 1,635,000, January 2020 1,536,000. PR link.

FannieMae in its February Economic and Housing Outlook says fiscal stimulus, successful vaccine deployment likely to boost growth but also pose inflationary risk, raises 2021 GDP forecast from 5.3% to 6.7%, on a Q4/Q4 basis. PR link.

The US Federal Reserve Bank of Philadelphia says the February 2021 US 3rd District Manufacturing General Business Indicator is at +23.1, January 2021 was at +26.5, December 2020 +9.1, February 2020 +30.8. “Most future indexes moderated this month but continue to indicate that firms expect growth over the next six months.” PR link.

***Wednesday, February 17

Daily Corporate News:

Apple(PBR3) gets attention of European Union antitrust regulators per complaint filed by Fortnite game developer Epic Games over Apple’s App Store payment system and control over app downloads. Reuters PR link.

Ford(PBR13) says by mid-2026, 100% of its passenger vehicle range in Europe will be zero emissions capable, all-electric or plug-in hybrid; moving to all-electric by 2030, is part of its plan to invest at least $22 billion globally in electrification through 2025. PR link.

Kroger(PBR22) Health unit announces new scheduling tool to book COVID-19 vaccine appointments online, is now receiving and administering vaccines at 1,300 of its 2,200 family of pharmacies, will be able to administer an average of nearly 500,000 vaccinations per week when all locations online, also providing a vaccine support call center. PR link.

Energy Transfer(PBR58) to acquire Enable Midstream Partners(PBR748) for around $7.2 billion in an all stock deal, to close in mid-2021, has approvals of CenterPoint Energy(PBR252) and OGE Energy(PBR863) who together control 79.2% of Enable’s common stock, to close in mid-2021. PR link.

Pfizer(PBR63) and BioNTech SE (Nasdaq: BNTX) get an agreement with the European Commission to supply an additional 200 million doses of COMIRNATY®, the companies’ COVID-19 Vaccine, to the 27 European Union (EU) member states, brings total supply to the EU to 500 million doses, with delivery expected by the end of 2021, also EC has the option to request supply of an additional 100 million doses. PR link.

Tyson Foods(PBR76) to offer up to four hours pay to workers getting COVID vaccine. MarketWatch PR link.

Sherwin-Williams(PBR170) adds 15 million shares to its repurchase program authorized in 10/15, shares remaining will be part of 3:1 split at end of March, no expiration date. PR link.

MGM Resorts(PBR240) will resume 24/7 hotel operations at Mandalay Bay, Park MGM and The Mirage resorts effective 03/03/21, because of increased interest in travel to Las Vegas. PR link.

News Corp(PBR340) gets 3 year agreement with Alphabet(PBR12)’s Google unit to provide news to the Google News Showcase from its US, UK and Australia news services, includes the development of a subscription platform, the sharing of ad revenue via Google’s ad technology services, the cultivation of audio journalism and meaningful investments in innovative video journalism by Google’s YouTube unit. PR link.

Tractor Supply(PBR360) to acquire operator of 167 stores located in 11 states Orscheln Farm and Home for around $297 million cash. PR link.

Carnival Corp(PBR489)’s Italian business, Costa Cruises, restarts Mediterranean cruises with new program from 03/27/21 with Costa Smeralda and from 05/02/21 with Costa Luminosa. PR link.

Carnival Corp(PBR489)’s P&O Cruises Australia is extending its current operational pause to departures on or before 06/18/21. PR link.

Camping World(PBR539) expands in NE US with new locations in Hamburg, PA and Albany, NY, established through the acquisition of Boat-N-RV Superstore, terms not disclosed. PR link.

KKR(PBR608) to acquire Flow Control Group, a leading distributor of mission-critical flow control and industrial automation products with 10,000+ customers and 2,000+ suppliers in N America, from Bertram Capital, terms not disclosed. PR link.

Wyndham Destinations(PBR622) is now Travel+Leisure Co, ticker is changed from NYSE: WYND to NYSE: TNL, Wyndham Destinations now one of nearly 20 travel brands of the company. PR link.

Rent-A-Center(PBR795) completes $1.273 billion in cash and around 10.8 million shares of Rent-A-Center common stock currently valued at $377 million acquisition of fintech company with $1.25 billion in revenues in 2020 Acima Holdings, a leading provider of virtual lease-to-own solutions. PR link.

Daily Economic News:

The US Dept of Labor says the Preliminary January 2021 US Producer Price Index Final Demand is +1.3%, December 2020 was at +0.3%, November 2020 +0.1%, January 2020 +0.3%, Last 12 Months is at +1.7%. PR link.

The US Dept of Commerce/Census says the Preliminary December 2020 US Sales-Manufacturers is at $501.8 billion, Retailers $488.6 billion, Wholesalers $503.8 billion, for December 2020 Total Sales at $1,494.2 billion, November 2020 was at $1,482.8, October 2020 $1,482.1, December 2019 $1,458.0. PR link.

The US Dept of Commerce/Census says the Advance January 2021 US Retail Sales-Retailers is at $513.6 billion, Food Services & Drinking Places $54.6 billion, for Total Advance January 2021 Retail Sales at $568.2 billion, December 2020 was at $539.7 billion, November 2020 $545.2 billion, January 2020 $528.9 billion. PR link.

The Federal Reserve Board says the Preliminary January 2021 US Industrial Production % of Capacity is at 75.6%, December 2020 was at 74.9%, November 2020 73.9%, January 2020 76.9%. PR link.

The Natl Assn of Home Builders/Wells Fargo Preliminary February 2021 US Housing Market Composite Index is at 84, January 2021 was at 83, December 2020 86, February 2020 74. “Strong buyer demand helped offset supply chain challenges and a surge in lumber prices as builder confidence in the market for newly built single-family homes inched up one point to 84 in February…” PR link.

The US Federal Open Market Committee releases the Minutes of the 01/26-27/21 Meeting, keeps the federal funds rate at 0.00-0.25%, commits to more bond buying, says “… the Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.” PR link.

***Tuesday, February 16

Daily Corporate News:

Amazon(PBR2 $AMZN) to acquire Shopify competitor Australian based Selz, makes tools that enable businesses to more easily launch their own online stores. CNBC PR link.

Norwegian Cruise Lines(PBR447 $NCLH) extends suspension of all cruises through 05/31/21. PR link.

Palo Alto Networks(PBR679 $PANW) to acquire Bridgecrew, a developer-first cloud security company, for around $156 million. PR link.

Regal Beloit(PBR706 $RBC) and Rexnord(PBR884 $RXN) to be spun-off Process & Motion Control(PMC) segment to merge into RBC, transaction values PMC at $3.69 billion, to close in 4Q21. PR link.

Ingersoll-Rand(PBR824 $IR) to sell a majority interest in its High Pressure Solutions (HPS) Segment to private equity firm American Industrial Partners, will receive around $300 million cash, retain a 45% common equity interest in the business. PR link.

AutoNation(PBR148 $AN) per plan separates Chairman/CEO roles, elects Rick L. Burdick to serve as Chairman, Mike Jackson continues as CEO. PR link.

Marriott Intl(PBR151 $MAR) announces the unexpected death of President/CEO Arne Sorenson, was being treated for pancreatic cancer, interim management structure was put into place on 02/02/21, new CEO is expected to be appointed within the next two weeks. PR link.

La-Z-Boy(PBR941 $LZB) Chairman/President/CEO Kurt L. Darrow to retire from President/CEO roles effective 04/25/21, will then serve as non-executive Chairman until up to 04/30/22, SVP/CFO Melinda D. Whittington elected to become new President/CEO on 04/25/21. PR link.

Daily Economic News:

The US Federal Reserve Bank of New York says the February 2021 Empire State Manufacturing General Business Conditions Index is at +12.1, January 2021 was at +3.5, December 2020 +4.9, February 2020 +12.9. “The general business conditions index rose nine points to 12.1, its highest level since July of last year… Looking ahead, firms remained optimistic that conditions would improve over the next six months, and capital spending plans expanded noticeably.” PR link.

***Monday, February 15

***US Presidents’ Day.
***US Stock Exchanges Closed.

Daily Corporate News:

Alphabet(PBR12 $GOOG)’s Google unit enters into a long-term partnership with Seven West Media, one of Australia’s leading integrated media companies across broadcast, print and digital news, SWM to provide news content to the Google Showcase product which launched in Australia in early February, terms not disclosed. Seven West Media PR link.

General Motors(PBR19 $GM) expands its electric vehicle portfolio with the introduction of the new, all-electric SUV-like 2022 Bolt EUV, alongside the redesigned 2022 Bolt EV, Bolt EUV starts at $33,995, to offer Super Cruise1, the industry’s first true hands-free driver assistance system for enabled roads, Bolt EV starts at $31,995, both to be available in the summer. PR link.

US Foods(PBR110 $USFD) says on 03/01/21 all 72 Smart Foodservice® Warehouse Stores will be rebranded as US Foods CHEF’STORE®, had acquired Smart Foodservice Warehouse Stores in 04/20. PR link.

Avery Dennison(PBR413 $AVY) to acquire JDC Solutions, a privately owned manufacturer of pressure-sensitive specialty tapes, headquartered in Mount Juliet, TN, with around 75 employees and about $30 million in annual revenues, for $24 million, to close in 1Q21. PR link.

Boyd Gaming(PBR692 $BYD) announces BoydPay Digital Wallet in partnership with games developer Aristocrat Technologies, allows customers to use their smartphones to play casino games, cash out, and pay for restaurant meals, show tickets or hotel rooms, available in 3 casinos now, full roll-out planned for summer. PR link.

Intel(PBR45 $INTC) announces that Pat Gelsinger is now CEO, 8th CEO in company’s history. PR link.

***Friday, February 12

The US Stock Exchanges Recap for Week 6 of 2021 ending 02/12/21:

DJIA ends Week 6 at record 31,458.40, +1.00% from last Friday, +4.92% MTD, +2.78% QTD/YTD, +0.00% from record 31,458.40 set 02/12/21.

NASDAQ ends Week 6 at record 14,095.47, +1.73% from last Friday, +7.84 MTD, +9.37% QTD/YTD, +0.00% from record 14,095.47 set 02/12/21.

SPX ends Week 6 at record 3,934.83, +1.23% from last Friday, +5.94% MTD, +4.76% QTD/YTD, +0.00% from record 3,934.83 set 02/12/21.

US Stock Exchanges Week 6 of 2021 News Summary:

The drama of options trading on GameStop and AMC Entertainment and others made a re-entry into Earth’s atmosphere this week, much to the relief of the usual major investing heavyweights and traditional institutional and retail investors. Amid another Trump impeachment trial, coronavirus pandemic news, a new administration trying to settle in, and generally mixed corporate earnings, The Stock Market Bull once again ignored all that and took firm charge of the pasture, ending Week 6 with another convincing 3-0 victory of the major US stock indices, which all ended the week at new records. The Stock Market Bear did try to make some half-hearted efforts, but the impacts were minimal and they were just brief interruptions while The Stock Market Bull was taking some quick water breaks. It will be a long rest weekend as Week 7 will start with the US exchanges being closed on Monday in observance of Presidents Day, when we sing “Happy Birthday!” to George Washington and Abraham Lincoln. The action then resumes with the experts pondering and placing their bets on how long this Bull can keep on running.

The Week 6 of 2021 tally YTD is:

• The Stock Market Bull: 4 weeks
• The Stock Market Bear: 2 weeks
• Mixed Results: 0 weeks

Week 6 News Summary:

Coronavirus Pandemic: As of today, Friday, 02/12/21, at 6:26PM Eastern US, the John Hopkins University CSSE unit says there are now 108,154,014 confirmed cases globally with 2,380,818 deaths, an increase from last Friday of 87,402, which is -4,613 from last Friday. For the US it is 27,487,790 confirmed cases and 480,724 deaths, an increase from last Friday of 22,619, which is -34 from last Friday. The US government has ordered 100 million more doses of the Pfizer/BioNTech COVID-19 vaccine, making the total 300 million doses. It is anticipated that injections by all should be available to all by the end of April and projections seem to show vaccinations could be completed by the end of July. Manufacturing and logistical issues seem to be settling down and the daily injection rate continues to exceed 1 million/day.

US Presidency:  President Biden appears to be in firm control, made his first call to China President Jinping, addressing several important issues from trade to human rights, and indicating that he plans to continue taking strong positions to protect the US. More appointees have been nominated and approved. The major news was the impeachment trial of former President Trump with the US House Managers making their case for impeachment to the US Senate jury over 2 days by showing some graphic videos of the January 6th attack on the Capitol Building, saying that the insurrectionists were incited by President Trump’s speech just before the event and that it was planned. Trump’s defense team has countered over a 3 hour period that President Trump’s speech also asked for a peaceful demonstration, showed clips of other politicians also using strong language to encourage people to take actions that might be considered inciteful. The US Senate could vote on the impeachment during the weekend, the expectation is that there will not be enough votes to convict.

US Economy:  The Consumer Price Index showed a monthly modest increase and an annual 1.4% inflation rate over the past 12 months, below the Federal Reserve 2% target. Wholesale trade sales increased by a nice rate, the national spending deficit had a large increase and the Congressional Budget Office released a report indicating a $2.3 trillion shortfall this year and an average $1.2 trillion shortfall annually for the next 10 years. The U of Michigan Consumer Sentiment Index took a dip as consumers indicated some concerns about jobs, housing and income. The Federal Reserve released a stress test to major US banks to see how they would weather another severe test of the economy. Weekly initial jobless claims went back up a little, but continuing jobless numbers were down. Average weekly earnings continued to show modest increases and are up 7.5% over last year.

Corporate Business:  As expected annual corporate earnings continued to pour in with a mixed bag of results, showing definite impacts from the coronavirus pandemic, but with guidance often being positive assuming the pandemic ends sometime this summer or early fall. More companies have reinstated share repurchase programs, are adjusting their business models to account for the way employees work and how they are compensated, expanding use of e-commerce, and moving to Cloud-based information technologies. There were a few mergers and acquisitions deals announced, but one of the major news items was that the acquisition of China based TikTok by Oracle and Walmart has been called off indefinitely.

International News: . The Biden administration is implementing sanctions against Myanmar which is now controlled by the military which ousted its democratically elected but controversial president. As mentioned earlier, President Biden has his first direct telephone call with China President Jinping. With the new administration’s halt of building a wall along the Mexico border there now appears to be in increase of illegals crossing into the US. The Biden administration is also taking steps to reunite parents who have been deported with their children who continue to be in custody of the US government. Some initial impacts of the UK and Europe Brexit action are starting to be realized. Europe and Africa continue to struggle with COVID-19 issues, especially as variants continue to appear that appear to be more contagious and might not respond to current vaccines.

Daily Corporate News:

AT&T(PBR10 $T)’s WarnerMedia unit direct-to-consumer streaming platform HBO Max is scheduled to launch in late June in 39 territories1 across Latin America and the Caribbean, marking the first availability for the platform outside the US. PR link.

Microsoft(PBR17 $MSFT) endorses Australia‘s proposal that would require tech gatekeepers like Facebook(PBR47 $FB) and Alphabet(PBR12 $GOOG)’s Google unit to share revenue with local independent news organizations. PR link.

Pfizer(PBR63 $PFE) says the US government has exercised its option for an additional 100 million doses of the Pfizer-BioNTech COVID-19 Vaccine, brings the total number of doses to be supplied to the US government to 300 million, enough for 150 million people. PR link.

Pfizer(PBR63 $PFE) gets US FDA approval for the supplemental Biologics License Application (sBLA) for PANZYGA® (Immune Globulin Intravenous [Human] – ifas 10% Liquid Preparation) to treat adult patients with a rare neurological disease of the peripheral nerves called chronic inflammatory demyelinating polyneuropathy (CIDP). PR link.

International Paper(PBR137 $IP) to sell the Kwidzyn pulp and paper mill and supporting operations in Poland to Mayr-Melnhof Karton AG for around $812 million, employs approximately 2,300 people and has the annual capacity to produce 740,000 metric tons of folding boxboard, uncoated freesheet, specialty kraft papers, and market pulp on four machines, to close in 3Q21. PR link.

Becton Dickinson(PBR182 $BD) gets US FDA Emergency Use Authorization for a new molecular diagnostic test for both SARS-CoV-2 and Influenza A+B that can return results in two to three hours, is run on the BD MAX™ System. PR link.

Bausch Health(PBR352 $BHC) gets US SEC Schedule 13D from Icahn Enterprises(PBR317) and affiliates showing ownership stake in BHC at 7.83%. PR link.

Daily Economic News:

The U of Michigan Preliminary February 2021 Consumer Sentiment Index is at 76.2, January 2021 was at 79.0, December 2020 80.7, February 2020 101.0. “The expected strength in consumer spending in 2021 and 2022 critically depends on a significant reduction in precautionary motives, which in turn depend on progress against the pandemic as well as favorable trends in both inflation and employment.” PR link.

The US Federal Reserve Board releases hypothetical scenarios for its 2021 bank stress tests, 19 large banks are subject to the stress test. PR link.

***Thursday, February 11

Microsoft(PBR17 $MSFT) and Volkswagen Group’s Car.Software Organisation to use Microsoft’s Azure to develop Volkswagen Automotive Cloud, for automated driving functions that can be tested, deployed and operated. PR link.

Walt Disney(PBR51 $DIS) in 1Q21 report says Disney+ streaming service grew from 26.5 million subscribers at end of 2019 to 94.9 million at end of 2020. PR link.

Kraft Heinz(PBR117 $KHC) to sell its $1.1 billion in revenues in 2020 nuts business, including most products sold under the Planters brand, to Hormel Foods(PBR320 $HRL) for $3.35 billion cash, to close in 1H21. PR link.

Rite Aid(PBR141 $RAD) an inaugural participant in the Federal Retail Pharmacy Program, will receive direct federal allocations initially in five states and two jurisdictions: California, Michigan, New Jersey, Ohio, Pennsylvania, Philadelphia, and New York City, expects to receive 100 COVID-19 vaccine doses per participating store, per week at launch. PR link.

Rite Aid(PBR141 $RAD) expands its no-charge COVID-19 testing to all its 1,200+ drive-in locations in partnership with US Dept of Health and Human Services. PR link.

PayPal(PBR172 $PYPL) expects that it could have 750 million active accounts by 2025 and do $50 billion in revenues, has 377 million accounts as of end of 2020, did $21 billion. MarketWatch PR link.

Regeneron(PBR380 $REGN) gets US FDA approval for EvkeezaTM (evinacumab-dgnb) as an adjunct to other low-density lipoprotein cholesterol (LDL-C) lowering therapies to treat adult and pediatric patients aged 12 years and older. PR link.

Navistar(PBR395 $NAV) acquires a new property in San Antonio, TX, which includes existing buildings that will house support functions for its under-construction 900,000-square-foot plant which will produce Class 6-8 vehicles, including new electric-powered trucks, making total investment in the region exceed $275 million and will create over 650 jobs. PR link.

NASDAQ(PBR605 $NDAQ) completes $2.75 billion cash acquisition of 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. PR link.

The US Congressional Budget Office releases a document, The Budget and Economic Outlook: 2021 to 2031, forecasts 2021 Deficit to be a $2.3 trillion, then an average deficit of $1.2 trillion per year through 2031. Total debt held by the public at the end of 2020 was at $21.019 trillion, gross domestic product was at $21.000 trillion, estimated debt at end of 2031 is projected to be $35.304 trillion, gross domestic product $32.933 trillion. PR link.

COVID-19 Vaccines Update: Starting today, 02/11/21, 6,500 US pharmacy locations of the around 40,000 nationwide will start receiving doses of the authorized COVID-19 vaccines. CNBC PR link.

***Wednesday, February 10

Target(PBR36 $TGT) providing up to four hours of pay (two hours for each vaccine dose) to its hourly team members when they get their coronavirus vaccines, also providing free Lyft rides for US associates. PR link.

Centene(PBR42 $CNC) adds to share repurchase program, up to $1.0 billion balance available. PR link.

Best Buy(PBR73 $BBY) to cut some jobs at its big box stores as it transitions to more online sales, had furloughed about 51,000 of its workers early in April, including nearly all its part-time employees, as it closed most of its stores early in the pandemic to all but curbside pickup, started bringing back furloughed workers in June and in August raised its starting wage to $15 an hour. MarketWatch PR link.

United Airlines(PBR75 $UAL) to work with Archer Aviation to accelerate production of advanced, short-haul electric aircraft, 5 year timeframe. PR link.

Oracle(PBR80 $ORCL) and Walmart(PBR1 $WMT) acquisition of China based TikTok has been ‘shelved indefinitely,’ Biden administration doing its own security risk evaluations. CNET PR link.

AbbVie(P)BR95 $ABBV)’s Allergan unit gets US FDA approval for BOTOX® for the treatment of detrusor (bladder muscle) overactivity associated with a neurologic condition in pediatric patients 5 years of age and older who have an inadequate response to or are intolerant of anticholinergic medication. PR link.

Charles Schwab(PBR289 $SCHW) lays off around 200 more employees, follows the 1,000 laid off in October after acquisition of TD Ameritrade, still hiring around 1,400 in strategic areas critical to support its growing client base, terminated employees will get early access to all newly-opened positions. CNBC PR link.

Newmont Goldcorp(PBR315 $NEM) reports gold Mineral Reserves of 94.2 million attributable ounces for 2020 as compared to the its adjusted1 95.7 million ounces at the end of 2019, exceeded its 2020 conversion target by replacing 80% of all depletion and maintaining its industry-leading position with the largest gold reserves. PR link.

Tractor Supply(PBR360 $TSCO) to provide a one-time payment of $50 and allow time off as needed for all Team Members who elect to receive a COVID-19 vaccine, has also partnered with a third-party provider to facilitate onsite vaccination clinics at its eight distribution centers and Store Support Center upon approval and availability. PR link.

HanesBrands(PBR415 $HBI) in 4Q20 report says it is planning to exit the personal protective equipment(PPE) business, evaluating strategic opportunities for its European business, plans to focus on its Championship brand. PR link.

Beacon Roofing(PBR418 $BECN) completes $850 million divestiture of its interior products business, consisting of 81 branch locations where it distributes construction products including wallboard, acoustical ceilings, steel framing and insulation to both residential and commercial contractors, to private equity firm American Securities. PR link.

Global Payments(PBR539 $GPN) enters into a $500 million accelerated share repurchase program of its common shares, to be completed by 03/31/21, is part of current share repurchase program. PR link.

Moody’s(PBR549 $MCO) to acquire provider of N America credit data Cortera, provides data and analytics on over 36 million companies. PR link.

Petco(PBR590 $WOOF) to provide a one-time $75 payment to each partner who completes a Covid-19 vaccination program as it becomes available, for each partner that gets fully vaccinated, Petco will also contribute $25 to the Petco Partner Assistance Fund, which provides assistance to employees experiencing financial hardship. PR link.

TreeHouse Foods(PBR603 $THS) comments on JANA Partners‘ 13D filing and nomination of three directors for election to TreeHouse’s board of directors, said it has had multiple constructive discussions with JANA, says current 12 member of the Board are highly qualified, will be reviewing qualifications of JANA nominees. PR link.

Triumph Group(PBR760 $TGI) to sell its Red Oak, TX operations with 1 million sf factory space and 400 employees used for manufacturing large, complex composite and metallic structures such as wing, empennage, and fuselage assemblies, to Arlington Capital Partners, to close by 03/31/21, terms not disclosed. PR link.

Zillow(PBR788 $Z) to acquire ShowingTime.com, an online scheduling platform for home showings used in 370 Multiple Listing Services representing more than one million real estate professionals across the US and Canada, for $500 million. PR link.

The US Dept of the Treasury says the January 2021 US Federal Government Receipts are at $384.7 billion, Outlays are at $547.5 billion, for a January 2021 US Federal Government Deficit of $162.8 billion, December 2020 Deficit was $143.6 billion, November 2020 Deficit $145.3 billion, January 2020 $32.6 billion; the January 2021 Total Deficit Year-to-Date(4 months) is at $735.7 billion, January 2020 Total Deficit was at $389.2 billion. PR link.

The US Dept of Labor says the Preliminary January 2021 US Current Average Earnings Per Hour is at $29.96, Average Hours Worked Per Week at 35.0, for January 2021 Average Weekly Earnings of $1,048.60, December 2020 was at $1,037.53, November 2020 $1,030.43, January 2020 $975.15. PR link.

The US Dept of Labor says the January 2021 US Monthly Change in the Consumer Price Index(Seasonally adjusted) is at +0.3%, December 2020 was at +0.2%, November 2020 +0.2%, Last 12 Months(Unadjusted) is at +1.4%. PR link.

The US Dept of Commerce/Census says the Preliminary December 2020 US Wholesales Sales-Durables is at $245.2 billion, Non-Durables $258.6 billion, for December 2020 Total US Wholesale Sales of $503.8 billion, November 2020 was at $497.6 billion, October 2020 $496.00 billion, December 2019 $495.3 billion. PR link.

***Tuesday, February 9

PepsiCo(PBR50 $PEP) debuts Pearl Milling Company, the new name of the pancake mix and syrup varieties previously found under the Aunt Jemima brand, will start to arrive in market in 06/21. PR link.

Eli Lilly(PBR138 $LLY) gets US FDA Emergency Use Authorization for investigational bamlanivimab (LY-CoV555) 700 mg and etesevimab (LY-CoV016) 1400 mg together, is authorized for the treatment of mild to moderate COVID-19 in patients aged 12 and older who are at high risk for progressing to severe COVID-19 and/or hospitalization. PR link.

Marriott Intl(PBR151 $MAR) enters long term agreement with Sunwing Travel Group’s hotel division, Blue Diamond Resorts, which has an extensive portfolio of resort properties throughout the Caribbean, Central America and Mexico, will add 19 franchised resorts totaling nearly 7,000 rooms across six destinations and more than doubling the company’s presence in the all-inclusive segment to 33 properties by 2025. PR link.

Carrier(PBR164 $CARR) authorizes up to $350 share repurchase program. PR link.

Lithia Motors(PBR245 $LAD) has acquired two stores in the Greater Orlando, FL market from Fields Auto Group, includes a Land Rover and a Chrysler Jeep Dodge Ram location, also opening a previously awarded Infiniti location in the Downtown Los Angeles area, both events to add around $240 million in annual revenues, brings the total annualized revenue acquired to over $3.5 billion since the launch of LAD’s five-year plan to reach $50 billion in revenue and $50 of earnings per share. PR link.

Chesapeake Energy(PBR354 $CHK) emerges from Chapter 11 bankruptcy with a new Board, average daily production in 4Q20 was 435,000 barrels of oil equivalent. PR link.

Regeneron(PBR381 $REGN) and Sanofi get US FDA approval for the PD-1 inhibitor Libtayo® (cemiplimab-rwlc) as the first immunotherapy treatment indicated for patients with advanced basal cell carcinoma (BCC) previously treated with a hedgehog pathway inhibitor (HHI) or for whom an HHI is not appropriate. PR link.

Polaris Industries(PBR429 $PII)’ Indian Motorcyle unit is unleashing three new, totally reimagined Indian Chief models for its 2022 lineup in celebration of 100 years in business. PR link.

GoDaddy(PBR747 $GDDY) has completed its acquisition of Poynt, expands GoDaddy’s commerce services to help small businesses grow – both online and offline – using one platform. PR link.

CIT Group(PBR850 $CIT) and First Citizens BancShares(NASDAQ: FCNCA) shareholders approve all stock merger into First Citizens, will create the 19th largest bank in the US based on over $100 billion in assets, to close in 2Q21. PR link.

The US Dept of Labor says the Preliminary December 2020 US Job Openings-Private are at 6,048,000, Government 598,000, December 2020 Total Job Openings is at 6,646,000, November 2020 was at 6,572,000, October 2020 6,632,000, December 2019 6,553,000. Go to the PR link for Hires and Separations data. PR link.

CoreLogic says the November 2020 US Mortgages Delinquent 30 or More Days is at 5.9%, October 2020 was at 6.1%, September 2020 6.3%, November 2019 3.9%. “The consistent decline in serious delinquency since August is a sign of growing financial stability for families. In addition to ensuring that homeowners stay in their homes, the decline in delinquency means fewer distressed sales, which is both a positive for individual households and the overall housing market.” PR link.

The US Federal Housing Finance Agency announces that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until 03/31/21. Also, COVID-19 Payment Deferral for borrowers with an Enterprise-backed mortgage can now cover up to 15 months of missed payments, allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity. PR link.

**Monday, February 8

Tesla(PBR119 $TSLA) has acquired $1.5 billion in bitcoin, expect to begin accepting bitcoin as a form of payment in the near future. PR link.

Tesla(PBR119 $TSLA) to meet with China‘s market regulator and four other central government departments over customer complaints about vehicle malfunctions. NikkeiAsia PR link.

Kohl’s(PBR159 $KISS) to partner with Eddie Bauer to bring premium-quality performance outerwear and outdoor apparel for the entire family to Kohl’s customers nationwide in Fall 2021. PR link.

Voya Financial(PBR397 $VOYA) Advisers unit to be acquired by Cetera Financial Group, includes 900 independent financial professionals, around $40 billion in assets, will result in $300 million for Voya, to close 2Q21 or 3Q21. PR link.

Wynn Resorts(PBR437 $WYNN) is making available a public offering of 5,500,000 shares of its common stock, proceeds to be used for general corporate purposes. PR link.

Electronic Arts(PBR495 $EA) to acquire developer and publisher of popular mobile games GluMobile(NASDAQ: GLUU) for an enterprise value of $2.1 billion, $12.50/share cash, to close by 06/30/21. PR link.

Global Payments(PBR540 $GPN) and Alphabet(PBR12 $GOOG)’s Google unit agree to an expansive multi-year partnership to deliver innovative cloud-based products and capabilities, enabling best-in-class digital merchant customer experiences worldwide, includes Global Payments migrating its merchant acquiring technology to Google Cloud, and will provide merchant acquiring services to Google to extend its global market reach, will also be launching a series of strategic go-to-market and co-sell activities together. PR link.

Cleveland-Cliffs(PBR894 $CLF) commenced an underwritten public offering of 60,000,000 common shares, which consists of 40,000,000 currently outstanding Common Shares offered by a subsidiary of ArcelorMittal SA and 20,000,000 Common Shares offered by the Company. PR link.

Cubic Corp(PBR965 $CUB) to be acquired by an affiliate of Veritas Capital under which Veritas and Evergreen Coast Capital, an affiliate of Elliott Investment Management, will acquire Cubic for $70.00 per share in cash, around $2.8 billion, includes the assumption of debt, to close in 2Q21. PR link.

The US Federal Reserve Bank of New York says the January 2021 Monthly Survey of Consumer Expectations shows that “… households’ year-ahead spending growth expectations rose to 4.2%, the highest level recorded in more than 5 years. In contrast, earnings growth expectations have remained flat for the sixth consecutive month.” PR link.

FannieMae says the January 2021 US Home Purchase Sentiment Index is at 77.7, December 2020 was at 74.0, November 2020 80.0, January 2020 93.0. “Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale… ” PR link.

***Friday, February 5

The US Stock Exchanges Recap for Week 5 of 2021 ending 02/05/21:

DJIA ends Week 5 at 31,148.24, +3.89% from last Friday/MTD, +1.77% QTD/YTD, -0.13% from record 31,188.38 set 01/20/21. NASDAQ ends Week 5 at record 13,856.30, +6.01% from last Friday/MTD, +7.51% QTD/YTD, +0.00% from record 13,856.30 set 02/05/21. SPX ends Week 5 at record 3,886.83, +4.65% from last Friday/MTD, +3.48% QTD/YTD, +0.00% from record 3,886.83 set 02/05/21.

US Stock Exchanges Week 5 of 2021 News Summary:

The options traders saw GameStop and AMC Entertainment stock prices dive almost as dramatically as they rose the previous week. The effect and visibility has caught the attention of federal agencies and some rules changes will most likely be made soon to avoid manipulating the markets in this new era of investing. The Stock Market Bear had his way in Week 4, was pleased with himself, and apparently decided to return to hibernation. The Stock Market Bull responded with a dominating Week 5, more than recovered last week’s losses, closed Week 5 with records for the NASDAQ and S&P500, and fell just short for the DJIA. With his 3-0 victory The Stock Market Bull retakes the lead year-to-date. Week 6 ends with Valentine’s Day, we’ll see who shows the most love for investors. The Week 5 of 2021 tally YTD is: The Stock Market Bull: 3 weeks The Stock Market Bear: 2 weeks Mixed Results: 0 weeks

Week 5 News Summary:

Coronavirus Pandemic: As of today, Friday, 02/05/21, at 15:22PM Eastern US, the John Hopkins University CSSE unit says there are now 105,229,079 confirmed cases globally with 2,293,416 deaths, an increase from last Friday of 92,015, which is -7,492 from last Friday. For the US it is 26,779,193 confirmed cases and 458,105 deaths, an increase from last Friday of 22,653, which is +137 from last Friday. Johnson & Johnson has submitted a request for its COVID-19 vaccine to the US FDA for Emergency Use Authorization(EUA), the committee that reviews and makes recommendations is meeting 02/26/21. Pfizer/BioNTech and Moderna are still the only vaccines with an EUA in the US. There continue to be manufacturing and logistical issues with those vaccines, but there is optimism that they will soon be ironed out. The US daily injection rate remains above 1 million/day. US Presidential Transition:  Executive Orders signed by President Biden are undoing many of former President Trump’s Executive Orders and policies. President Biden met with Republicans for their version of a stimulus package, but President Biden has decided to push for his ‘Go Big’ $1.9 trillion plan, claiming that the Democrats have the votes to get it through and don’t need help from Republicans. So far all of President Biden’s nominations for cabinet and other high level positions that have met before Senate committees have been approved. US Economy: The economy continues to move forward at an overall modest rate. Construction spending had a nice increase of around 1% in December, surveys on manufacturing were very positive backed by new orders being up 1.1% in December. However, US employment change, while positive, was disappointing with only a net gain of around 49,000 in January reported by the US Dept of Labor. Consumer debt bounced up a bit. The International trade report showed a widening deficit gap as imports continue to exceed exports. The business surveys indicated cautious optimism based based on vaccines being available to put an end to the COVID-19 pandemic. Other factors that might affect the economy include a heavy snowfall in the Northeast part of the US. On Groundhog Day the always accurate Punxsutawney Phil predicted 6 more weeks of winter. Corporate Business: Corporate earnings reports had another big week, overall with a mixed bag of results, but again, some cautious optimism about the future. Many companies continue to right-size by reducing headcount, closing and consolidating facilities. American Airlines is planning furloughs of around 13,000 to start in April. General Motors, Ford and Harley-Davidson have announced aggressive plans to bring their electric vehicles to market. Oil and gas companies had a good week as oil prices increased, but most are also investing in alternative energy as well. Several companies indicated they are positioned well enough to resume or start share buyback programs again. International News: . Most coverage went to the overthrow of the democratically elected president by the military, creating a lot of uncertainty. In Russia President Putin’s archrival Navalny who recently returned to Russia after recovering from a nerve gas attack, was captured, put in prison, and convicted in a trial that has a sentence of 2 1/2 years in prison. Both of these actions have made news worldwide with many international leaders and figures expressing concern and considering what actions they should take. President Biden again indicated he plans to take a hard line with China.

Daily Corporate News:

Chevron(PBR16 $CVX) offers to buy the shares it does not already own of Noble Midstream Partners LP (NASDAQ: NBLX), indirectly majority-owned by Chevron, for $12.47/share in an all stock transaction. PR link.

Kroger(PBR22 $KR) will provide a one-time payment of $100 to all associates who receive the full manufacturer-recommended doses of the COVID-19 vaccine, also announces an additional $50 million investment to thank and reward associates across its 35-state footprint, including a $100 store credit and 1,000 fuel points for hourly frontline grocery, supply chain, manufacturing, pharmacy and call center associates. PR link.

Pfizer(PBR63 $PFE) gets a US Patent Term Extension certificate for breast cancer therapy IBRANCE® (palbociclib) until 03/05/27. PR link.

Bristol-Myers Squibb(PBR109 $BMY)’s Juno Therapeutics unit gets US FDA approval for Breyanzi (lisocabtagene maraleucel), a cell-based gene therapy to treat adult patients with certain types of large B-cell lymphoma. PR link.

Illinois Tool Works(PBR223 $ITW) to repurchase around $1 billion in shares in 2021. PR link.

TechnipFMC(PBR232 $FTI) to spin-off Technip Energies as an independent public company effective 02/16/21, will initially trade in the US on the OTC as an ADR. PR link.

AES Corp(PBR302 $AES) subsidiary Indianapolis Power & Light Co to acquire 197 megawatt solar project in Clinton County, IN, system to be completed in 2023, will generate enough electricity to power 30,000+ homes. PR link.

Intuit(PBR391 $INTU) CEO Sasan Goodarzi is interviewed by David Solomon of Goldman Sachs(PBR87 $GS), talks about challenges of business during the COVID-19 pandemic and other issues. PR link.

Under Armour(PBR520 $UA) has made another move to scale back its sports marketing commitments by calling time on its on-field licensing deal with the National Football League, estimated to cost UA $10-15 million, UA seeking alternative opportunities to serve athletes and ensure best return to UA. -SportsPro PR link.

Zions Bancorp(PBR708 $ZION) authorizes up to $50 million share repurchase program for 1Q21. PR link.

Greenbrier(PBR786 $GBX) to form GBX Leasing, a new leasing joint venture with The Longwood Group to develop an owned portfolio of leased railcars primarily to be built by Greenbrier, GBX Leasing will acquire approximately $200 million of newly-built and leased railcars per annum from Greenbrier. PR link.

Carrier(PBR165 $CARR) elects CEO David Gitlin to also be Chairman, succeeds Executive Chairman John Faraci who remains on the Board. PR link.

Daily Economic News:

The US Dept of Labor says the January 2021 US Number of Employed is at 150,031,000, Unemployed 10,130,000, Unemployment Rate is at 6.3%, December 2020 was at 6.7%, November 2020 6.7%, January 2020 3.5%. PR link.

The US Federal Reserve Board says the Preliminary December 2020 US Consumer Credit Outstanding-Revolving is at $975.9 billion, Non-Revolving $3,208.3 billion, Total is at $4,184.2 billion, November 2020 was at $4,174.5 billion, October 2020 $4,160.5 billion, December 2019 $4,180.7 billion. PR link.

The US Dept of Commerce/Census says the Preliminary December 2020 US Exports-Goods is at $133.5 billion, Services $56.5 billion, December 2020 Total Exports is at $190.0 billion; December 2020 US Imports-Goods is at $217.7 billion, Services $38.9 billion, December 2020 Total Imports is at $256.6 billion, December 2020 Total Deficit is at $66.6 billion, December 2020 Total YTD Deficit(12 Months) is at $678.9 billion, December 2019 Total YTD Deficit was at $576.3 billion. PR link.

***Thursday, February 4

Alphabet(PBR12)’s Google unit gets new multi-year, strategic partnership with Twitter(PBR680), Twitter will extend its work with Google and move offline analytics, data processing, and machine learning workloads to Google’s Data Cloud. MarketWatch PR link.

Ford(PBR13) raises planned investment in electric and autonomous vehicles to $29 billion, further advances turnaround of global automotive business in 4Q20. PR link.

Microsoft(PBR17) unveils new Employee Experience Platform — Microsoft Viva, for $300 billion market, will integrate with the productivity and collaboration capabilities in Microsoft 365 and Microsoft Teams. PR link.

Johnson & Johnson(PBR35) submits application to the US FDA for approval of its COVID-19 vaccine, plans to manufacturer 100 million doses for use in the US in 1H21. PR link.

Boeing(PBR40) is outsourcing 600 IT jobs to Dell(PBR34) starting in late 04/21, shed 20,000 jobs companywide in 2020 and has said it needs to cut 11,000 more this year. The Seattle Times PR link.

American Airlines(PBR69) notifies employees that on 02/05/21 it will begin to send Worker Adjustment and Retraining Notification notices to approximately 13,000 U.S.-based employees, will take effect on or after 04/01/21, in response to continuing COVID-19 pandemic on its business. PR link.

Quest Diagnostics(PBR389) increases its share repurchase program by $1 billion, balance available is now around $1.917 billion. PR link.

Ralph Lauren(PBR462) in 3Q21 report says it has identified up to 10 stores subject to potential closure through Fiscal 2022, plans to complete the consolidation of its existing North America distribution centers, plans to reinstate quarterly dividend in the 1H22 fiscal year. PR link.

Coty(PBR563) opens the Gucci Beauty flagship store on Alibaba‘s luxury and premium brands online Tmall Luxury Pavilion, digital store connects Gucci Beauty products with more than 770 million Chinese consumers. PR link.

UnitedHealth(PBR7) CEO David S. Wichmann retires, Optum unit CEO and UNH President Sir Andrew Witty named CEO, effective immediately, Dirk McMahon to become President/COO; will join Witty and CFO John Rex in CEO Office. PR link.

Merck(PBR68) Chairman/CEO Kenneth C. Frazier to retire from CEO role on 06/30/21, will continue as Executive Chairman for a period yet to be determined afterwards, EVP/Global Services and CFO Robert M. Davis to become CEO and member of the Board on 07/01/21. PR link.

The US Dept of Labor says the Revised 4Q20 US Labor Productivity Output/Hour(Business Sector) is at -5.4%, 3Q20 was at +6.5%, 2Q20 +9.6%, 4Q19 +1.4%, Preliminary 2020 is at +2.6%. PR link.

The US Dept of Commerce/Census says the Preliminary December 2020 US Manufacturers New Orders-Durables is at $246.4 billion, Non-Durables $247.1 billion, Total $493.5 billion, November 2020 was at $488.3 billion, October 2020 $482.2 billion, December 2019 $500.2 billion. PR link.

***Wednesday, February 3

Amazon(PBR2) to open a new 634,812 sf fulfillment center in Alcoa, TN, will create nearly 800 full-time jobs. PR link.

Marriott Intl(PBR151 $MAR)’s JW Marriott unit‘s 100th property, JW Marriott Tampa Water Street is now open, first JW Marriott opened in 1984 in Washington, DC. PR link.

Sherwin-Williams(PBR171 $SHW) to do a 3:1 stock split for shareholder of record at the close of business on 03/31/21, will start trading at stock-split adjusted basis on 04/01/21. PR link.

Uber(PBR222 $UBER) launches its Eat Local campaign, renewed efforts to support independent restaurant owners and operators in 2021 as the industry continues to face COVID-related challenges, committing $20 million through various initiatives including $4.5 million in microgrants. PR link.

MGM Resorts(PBR241 $MGM)’s BetMGM gets Richard Childress Racing as a partner, marks the first partnership between a NASCAR team and sports betting operator. PR link.

Express(PBR892 $EXPR) average price of shares has averaged over $1.00 over the past 30 days, regains NYSE listing compliance. PR link.

Steris(PBR741 $STE) President/CEO Walt Rosebrough to step down at company’s annual meeting on 07/29/21, COO Dan Carestio to become President/CEO at that time, is appointed to Board effective immediately. PR link.

ADP says the Preliminary January 2021 US Change In Private Sector Employment is at +174,000, +51,000 from Small Businesses, +84,000 from Mid-Sized Businesses, +39,000 from Large-Sized Businesses; Goods Producing Sector is at +19,000, Services Sector is at +156,000. PR link.

The Institute for Supply Management says the Preliminary January 2021 US Services PMI Index(>50 Economy is growing) is at 58.7%, the highest since February 2019 when it was at 58.8%, revised December 2020 was at 57.2%. PR link.

IHS Markit says the January 2021 US Composite PMI Output Index is at 58.7, December 2020 was at 55.3, November 2020 58.6, January 2020 53.3. “The improving data set the scene for a strong first quarter, and a rise in business expectations for the year ahead bodes well for the recovery to gain traction as the year proceeds. Companies have become increasingly upbeat amid news of vaccine roll-outs and hopes of further stimulus.” PR link.

***Tuesday, February 2

Amazon(PBR2) will pay more than $61.7 million to settle US Federal Trade Commission charges that it failed to pay Amazon Flex drivers the full amount of tips they received from Amazon customers over a two and a half year period. FTC PR link.

McKesson(PBR8) has revenues of $179.1 billion through 3Q21, +4% from 3Q20, takes $8.1 billion charge in 3Q21 related to the estimated liability for opioid-related claims of governmental entities, authorizes an additional $2 billion for its share repurchase program. PR link.

Boeing(PBR40) using bonds to raise $9.825 billion to help repay draws on loans. PR link.

Pfizer(PBR63) raises forecast of COVID-19 vaccine revenues from $13 billion to $15 billion based on recent study releases by AstraZeneca and Johnson & Johnson(PBR35) of their potential vaccines that showed lower efficacy. Barron’s PR link.

HCA Healthcare(PBR64) 4Q20 report says share repurchase program resumes, had been suspended in March 2020, has $2.8 billion available, authorizes $6 billion to be added. PR link.

Uber(PBR222) to acquire alcohol delivery service Drizly for around $1.1 billion, to close in 1H21. PR link.

US Steel(PBR239) has commenced an underwritten public offering of 42,000,000 shares of common stock, expects to generate $699 million in cash, to pay down debt and for general corporate purposes. PR link.

RR Donnelley(PBR456) to expand its N American production capabilities in Reynosa, Mexico, and Durham, NC, to support the trading card and collectible card game industry which has grown significantly during the COVID-19 pandemic. PR link.

Chipotle(PBR489) in 4Q20 report says digital sales grew 174.1% year over year to $2.8 billion and represented 46.2% of of its $6.0 billion in 2020 sales. PR link.

Electronic Arts(PBR495) to enter into a partnership with CLC, the leading US collegiate trademark licensing company, to return college football to its EA Sports platform, to be the exclusive developer of simulation college football video game experiences, timeframe for availability to be announced later. PR link.

Harley-Davidson(PBR510) provides The Hardwire 2021-2025 strategic plan, includes a Harley-Davidson Certified, a pre-owned motorcycle program, to strengthen commitment to electric with the creation of a dedicated division focused exclusively on leading the future of electric motorcycles. PR link.

Carlisle Cos(PBR552) authorizes new up to 5 million shares repurchase program, is in addition to around 2 million shares available on 12/31/20 from the existing program, no expiration date. PR link.

NASDAQ(PBR607) to sell its to sell its US fixed income business, Nasdaq Fixed Income, to an affiliate of Tradeweb Markets(Nasdaq: TW), value of transaction to be around $700 million, $1 billion to be added to share repurchase program upon close, expected sometime in 2021. PR link.

Amazon(PBR2) Chairman/CEO Jeff Bezos to transition to be Executive Chairman in 3Q21, President/CEO of Amazon Web Services Andy Jassy to become President/CEO at that time. PR link.

Marriott Intl(PBR151) President/CEO Arne Sorenson to temporarily reduce schedule for pancreatic cancer treatment, interim management structure put in place to oversee day-to-day operations. PR link.

Freeport-McMoRan(PBR215) Non-Executive Chairman Gerald J. Ford steps down, to retire as a director at end of his term in 06/21, CEO Richard C. Adkerson named to add Chairman role, effective immediately. PR link.

The US Dept of Commerce/Census says the 4Q20 US Total Housing Units are at 141,241,000, Owner Occupied is at 82,808,000, Renter Occupied 42,997,000, Unoccupied 15,436,000, for Homeownership Rate of 65.8%, 3Q20 was at 67.4%, 2Q20 67.9%, 4Q19 65.1%. PR link.

The PurdueU/CME Group January 2021 US Ag Economy Barometer(100=Unchanged) Composite Index is at 167, December 2020 was at 174, November 2020 167, January 2020 167. “The ongoing strength in the Current Conditions Index appears to be driven by the ongoing rally in crop prices, while the deterioration in the Futures Expectations Index seems to be motivated by longer-run concerns about policies that could impact U.S. agriculture in the future… ” PR link.

FreddieMac‘s most recent “Insight” provides an interesting analysis titled “U.S. Population Growth: Where is housing demand strongest?” PR link.

Go to The PBRMarketTools US Economic Indices Snapshots information page to find out more about the news and data we provide. US Indices Info Page.

***Monday, February 1

Apple(PBR3 $AAPL) gets more than $33 billion worth of orders for its new 6 tranche $14 billion debt deal, includes mostly bonds rated Aa1 and AA+ that mature in five to 40 years. MarketWatch PR link.

ExxonMobil(PBR4 $XOM) forms ExxonMobil Low Carbon Solutions unit to commercialize emission-reduction technology, will initially focus on carbon capture and storage, to invest $3 billion on lower emission energy solutions through 2025. PR link.

Alphabet(PBR12 $GOOG)‘s Google unit’s internal games development group for its Stadia platform to be phased out, new game titles to be provided by third party developers. PR link.

Ford(PBR13 $F) and Alphabet(PBR12 $GOOG)’s Google unit agree to 6 year partnership to create unique services and capabilities for Ford and Lincoln customers, makes Google Cloud Ford’s preferred cloud provider, establishing a new collaborative group, Team Upshift to drive innovation and implement Ford’s transformation plan. PR link.

Pfizer(PBR63 PFE) COVID-19 vaccine partner BioNTech(NASDAQ: BNTX) says it plans to manufacture 2 billion doses of our COVID-19 vaccine in 2021 by expanding the previously expected output of 1.3 billion doses by more than 50%, modification of production processes at Pfizer’s facility in Puurs, Belgium, has been successfully completed, now working with 13 European partners for expansion as well. BioNTech PR link.

Northrop Grummaun (PBR92 $NOC) completes its $3.4 billion in cash divestiture of its federal IT and mission support business, generated around $2.3 billion in revenues in 2020, to Veritas Capital. PR link.

Duke Energy(PBR116 $DUK) forms a new, wholly owned subsidiary eTransEnergy, to help large businesses and municipalities with all the planning, financing, acquisition and deployment services to electrify their fleets. PR link.

Eaton Corp(PBR147 $ETN) to acquire Cobham Mission Systems, a leading manufacturer of air-to-air refueling systems, environmental systems, and actuation primarily for defense markets, for $2.83 billion, to close in 2H21. PR link.

Carnival Corp(PBR153 $CCL)’s Princess Cruises MedallionClass Ships launches Ocean® Sportsbook, a new, real-time sports wagering option on major sports competitions like professional* and college football, basketball, baseball and hockey as well as a wide variety of other domestic and international events.to be available onboard when cruises resume. PR link.

Xerox(PBR338 $XRX) is making organizational changes to support plans to create three new businesses – Software, Financing and Innovation by 2022. PR link.

Blackstone(PBR402 $BX) to acquire Interior Logic Group Holdings, a data-driven and technology-enabled provider of interior design, supply chain and installation management solutions to several of the nation’s largest single-family homebuilders, from Littlejohn & Co for around $1.6 billion, to close in 2Q21. PR link.

KKR(PBR611 $KKR) completes acquisition of 2+ million policyholders retirement and life insurance company Global Atlantic Financial Group Ltd, had a book value of around $4.7billion at closing, will continue to operate as a separate business with its existing brands and management team. PR link.

Worthington Industries(PBR735 $WOR) has acquired Secaucus, NJ-based $68.2 million in sales in 2020 General Tools & Instruments Co, a provider of consumer products brands in niche tools and outdoor living, for $115 million. PR link.

Ingersoll-Rand(PBR826 $IR) completes $184 million cash acquisition of Springfield, MO based 160 employees with around $60 million in annual revenues Tuthill Vacuum and Blower Systems. PR link.

Emerson Electric(PBR187 $EMR) Chairman/CEO David N. Farr to retire as CEO on 02/05/21, retire as Chairman on 05/04/21, Executive President/Automation Solutions Lal Karsanbhai named CEO successor. PR link.

The US Dept of Commerce/Census says the Preliminary December 2020 US Construction Spending Annual Rate-Residential is at $700.2 billion, Non-Residential $790.2 billion, Total $1,490.4 billion, November 2020 was at $1,475.6 billion, October 2020 $1,459.0, December 2019 $1,347.3 billion. PR link.

The Institute for Supply Management says the January 2021 US Manufacturing PMI Index(>50 economy expanding) is at 58.7%, December 2020 was at 60.5%. “Manufacturing performed well for the eighth straight month, with demand, consumption and inputs registering strong growth compared to December. Labor market difficulties at panelists’ companies and their suppliers will continue to restrict the manufacturing economy expansion until the coronavirus (COVID-19) crisis abates… ” PR link.

IHS Markit says the January 2021 US Manufacturing PMI Index is at 59.2, December 2020 was at 57.1, November 2020 56.7, January 2020 51.9. “US manufacturing started 2021 on an encouragingly strong footing, with production and order books growing at the fastest rates for over six years.” PR link.

The non-partisan US Congressional Budget Office says Estimated Year-to-Year 2021 US Real Gross Domestic Product will be around +4.6%, 2021 Unemployment Rate will end at around 5.3%, 2020 Real GDP is estimated at -3.5%, Unemployment Rate at 6.8%. PR link.

***Friday, January 29

The PBRMarketTools US Stock Exchanges Recap for Week 4 of 2021 ending 01/29/21:

DJIA ends Week 4 at 29,982.62, -3.27% from last Friday, -2.04% MTD/QTD/YTD, -3.87% from record 31,188.38 set 01/20/21.

NASDAQ ends Week 4 at 13,070.69,-3.49% from last Friday, +1.42% MTD/QTD/YTD, -4.15% from record 13,635.99 set 01/25/21.

SPX ends Week 4 at 3,714.24, -3.31% from last Friday, -1.11% MTD/QTD/YTD, -3.66%% from record 3,855.36 set 01/25/21.

US Stock Exchanges Week 4 and January 2021 Summary: The start of Week 4 looked promising as The Stock Market Bull opened Monday by establishing new records on the NASDAQ and S&P500. But The Stock Market Bear had had enough and took over the rest of the final week of the month by spilling a lot of green blood. At the same time there was a war between day trader and hedge fund shorters against users and sympathizers of GameStock and AMC Entertainment, with dramatic wild rides up then down and then way up again. Many say this was instigated through the Reddit social media platform. The popular millenial trading sites like Robinhood became the primary tool used to carry out the war, and the incident is starting to be scrutinized by the federal government. The Week 4 result, however, was clearly in favor of The Stock Market Bear who racks up a 3-0 result. Before the week started it appeared that January would be an easy victory for The Stock Market Bull, but January 2021 ended with a 2-1 mixed result in favor of The Stock Market Bear. There was a lot of volatility in January. Let’s see if there is a more loving Valentine effect in February.

The Week 4 of 2021 tally YTD is:
The Stock Market Bull: 2 weeks
The Stock Market Bear: 2 weeks
Mixed Results: 0 weeks

The Month 1 of 2021 tally YTD is:
The Stock Market Bull: 0 months
The Stock Market Bear: 0 months
Mixed Results: 1 month

The Week 4 and Month of January 2021 News Summary:

Coronavirus Pandemic: As of today, Friday, 01/29/21, at 14:21PM Eastern US, the John Hopkins University CSSE unit says there are now 101,879,985 confirmed cases globally with 2,201,401 deaths, an increase from last Friday of 99,507, which is +1,882 from last Friday. For the US it is 25,874,892 confirmed cases and 435,452 deaths, an increase from last Friday of 22,516, which is +678 from last Friday. It appears that 1+ million vaccinations are being injected daily, but logistical and manufacturing issues remain. Pfizer/BioNTech and Moderna vaccines are being used. Johnson & Johnson has published preliminary results of its Phase 3 trial single dose vaccine, effectiveness comes in at a high rate, but not as high as the first two. US FDA Emergency Use Authorization needs to be approved before it can start to be used. President Biden announced that an additional 200 million doses have been ordered for use through the summer. For January the Coronavirus Pandemic seems to have picked up some steam, especially as new variants are being detected, there are a lot of logistical and supply issues for approved vaccines, but there seems to be some longterm optimism that this pandemic will come to an end.

US Presidential Transition:  President Biden has signed several executive orders, including rejoining the Paris Climate Change Accord and the World Health Organization. He also has put a halt to the Keystone XL pipeline suspended construction of the wall between the US and Mexico. Other actions include a “Buy American” incentive plan, the reopening of the Obamacare health plans, and much more. The US Senate approved some high level nominations, most notable being Janet Yellen as Secretary of the US Dept of the Treasury and Antony Blinken as Secretary of the US Dept of State. Biden’s proposed Stimulus Bill is being questioned by the Republicans who would like a separate bill for funding stimulus checks while Democrats want a broader bill that includes additional priorities. It is the first big test of a split 50/50 US Senate and sets the tone for future efforts that require cooperation. January was a transition period as the new administration took on the reigns, but it has not been the smoothest, especially in light of the attempted January 6th insurrection at the Capital Building. However, forward movement is being made, but it appears many challenges lie ahead.

US Economy: The 4Q20 Gross Domestic Product Annual Rate came in at a respectable +4%. The mid January 4 Week Average of Total Insured Unemployment fell just below 5 million, about a 450,000 decrease from mid December, but still well above the 1.7+ million in pre-pandemic mid last January. Consumer confidence surveys were up a little bit, home prices continue to rise, mortgage rates remain low, the Federal Open Market Committee met and issued a statement that the US economy has “moderated” and remains at the mercy of the pandemic. January was mostly slightly positive for economic news with a lot of anxiety building up for a post-pandemic boom.

Corporate Business: It was a big week for annual corporate earnings reports. The effects of the Coronavirus Pandemic was pretty clear, but 4Q20 results indicated some optimism for the future as many corporations continue to implement startegies to raise cash to get them through however long the pandemic lasts. There were some bright spots as well, especially in the tech world, some retailers, and financial sector.

International News: . President Biden was a little more open about taking a hard stance against China regarding trade and intellectual property issues. New Secretary of State Blinkman is starting to try to rebuild some relationships that were affected during the Trump administration, working with the Palestinians as one example. Brexit is starting to show its so far mostly negative effects in the UK and Europe. The European economy is in a recession and continues to struggle from the Coronavirus Pandemic caused lockdowns.

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