The PBR1000: What Surprises Will There Be In 2020?
The US has experienced unprecedented economic growth for over a decade. Can it continue into 2020? How will elections, trade negotiations, an impeachment process, threats of war, and slowing global growth impact the US? It will be an interesting year for sure!
By Larry C. Paxton
The January 2020 breaking news items of interest for The PBR1000 follow with the most current date first.
***Friday, January 31
The PBRMarketTools US Stock Exchanges Recap for Week 5 ending 01/31/20:
DJIA ends Week 5 at 28,256.03, -2.53% from last Friday, -0.99% MTD/QTD/YTD, -3.72% from record 29,348.10 set 01/17/20.
NASDAQ ends Week 5 at 9,150.94, -1.76% from last Friday, +1.99% MTD/QTD/YTD, -2.68% from record 9,402.48 set 01/23/20.
SPX ends Week 5 at 3,225.52, -2.12% from last Friday, -0.16% MTD/QTD/YTD, -3.13% from record 3,329.62 set 01/17/20.
The Week 5 and Month 1 of 2020 News Summary: The first 3 weeks of January were a carry forward from the end of 2019 with business as usual. But then the world was hit with the news about the coronavirus originating in China and being spread globally, with a warning of catastrophic consequences if left uncontained. Globally governments and businesses are wrestling with what to do, are attempting to be proactive, a state of emergency has been issued by the World Health Organization, and by many nations, including the US. The other major news item is the US Senate impeachment trial of President Trump. After 3 day opening arguments by the US House Managers and then 3 days by Counsel for the President, a 2 day Q&A period, the US Senate voted to not allow witnesses by a 49-51 tally. It appears highly likely that President Trump will be acquitted. The Democrat presidential candidates, 4 of whom are senators involved in the impeachment trial, get their first test in Iowa in the opening week of February. On the international stage the UK will officially accomplish Brexit, with results uncertain for the UK and Europe. President Trump signed the US/Mexico/Canada(USMCA) trade agreement to replace NAFTA, with promises that it will be fairer and bring manufacturing jobs back to the US. During the month the US/China Phase 1 trade agreement was signed by leaders of the countries. Overall, the US economy continued to show moderate growth, the Federal Open Market Committee kept short term federal interest rates at the 1.50-1.75%, and consumer and business surveys continued to indicate optimism for the next 6 months. In the early weeks of the month The Stock Market Bull ruled the pasture and new record highs were established. But The Stock Market Bear came out of hibernation, had a voracious appetite, and spurred on by the coronavirus scare, savagely attacked The Stock Market Bull, chased him out of the pasture and started feasting on the herd. The Stock Market Bear easily won Week 5 3-0, but the NASDAQ prevented him from also claiming the month, which ended with a 2-1 mixed result.
The Week 5 of 2020 tally YTD is:
The Stock Market Bull: 2 weeks
The Stock Market Bear: 2 weeks
Mixed Results: 1 week
The Month 1 of 2020 tally YTD is:
The Stock Market Bull: 0 months
The Stock Market Bear: 0 months
Mixed Results: 1 month
Johnson & Johnson(PBR36 $JNJ) is ordered to pay $343.99 million in California Dept of Justice case over pelvic mesh issues class action suit. CA DOJ PR link.
PG&E(PBR182) submits Chapter 11 Plan of Reorganization testimony to California state regulators and Updated Plan of Reorganization to bankruptcy court, remains on track to have its Chapter 11 Plan confirmed by 06/30/20 deadline. $PCG PR link.
JCPenney(PBR261) gets notification from the New York Stock Exchange (NYSE) saying it is no longer in compliance with NYSE continued listing criteria, requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period, has 6 months to regain compliance, JCP plans to be in compliance, may do a reverse stock split. $JCP PR link.
Leidos(PBR299) completes $1.65 billion cash acquisition of privately-owned Huntsville, AL based applied research and national security solutions company Dynetics. $LDOS PR link.
The US Dept of the Treasury says the US 01/30/20 National Debt-Public is at $17.194 trillion, Intragovernmental $6.057 trillion, Total Debt $23.251 trillion, +0.2% from 12/31/19, +5.8% from 01/31/19. USTreasury PR link.
The US Dept of Labor says the US 4Q19 Employment Cost Index-Civilian Workers(12/2005=100) is at 138.9, 3Q19 was at 138.0, 2Q19 137.0, 4Q18 135.2. USDOL PR link.
The US Dept of Commerce/BEA says the US Preliminary December 2019 Personal Income Annual Rate is at $18.922 trillion, +0.2% from November 2019, +3.9% from December 2018. USDOC PR link.
The Federal Reserve Bank of Chicago says the US 7th District Preliminary December 2019 Midwest Economy Index is at -0.44, November 2019 was at -0.48, October 2019 -0.41, December 2018 +0.09. ChiFed PR link.
The U of Michigan US Final January 2020 Consumer Sentiment Index is at 99.8, December 2019 was at 99.3, November 2019 96.8, January 2019 91.2. “The resilience of consumers is remarkable and due to record low unemployment, record gains in income and wealth, as well as near record lows in inflation and interest rates.” UMichigan PR link.
MNI Indicators says the January 2020 Chicago Business Barometer(<50 = Declining) is at 42.9, the lowest level since
December 2015, December 2019 was at 48.9, November 2019 46.3, January 2019 56.7. MNI PR link.
The American Automobile Assn says the US 01/31/20 Average Gas Price/Gallon is at $2.485, -3.8% from 12/31/19, +10.0% from 01/31/19. AAA PR link.
***Thursday, January 30
American Airlines(PBR67) and the TWU-IAM Association reached tentative agreements this week for new joint collective bargaining agreements that cover more than 31,000 Maintenance & Related and Fleet Service team members. $AAL PR link.
Raytheon(PBR106) in 4Q19 says Forcepoint now wholly owned after $588 million purchase of Vista Equity Partners’ interest, merger with United Technologies(PBR48) to close in early 2Q20. $RTN PR link.
Altria(PBR112) in 4Q19 report records a non-cash pre-tax impairment charge of $4.1 billion related to its investment in JUUL, primarily due to the increased number of legal cases pending against JUUL and the expectation that the number of legal cases against JUUL will continue to increase; Altria and JUUL revise their terms for investment in JUUL. $MO PR link.
Navistar(PBR275) receives an unsolicited proposal from TRATON SE to acquire Navistar for $35/share cash. $NAVI PR link.
Spirit AeroSystems(PBR403) to restart production slowly, ramping up deliveries throughout the year to reach a total of 216 MAX shipsets delivered to Boeing(PBR28) in 2020, does not expect to achieve a production rate of 52 shipsets per month until late 2022, production rate subject to change. $SPR PR link.
Taylor Morrison Homes(PBR592) and William Lyon Homes (NYSE: WLH) shareholders approve $21.45.share, $2.4 billion cash & stock deal for TMH to acquire WLH, closing moved up to early 02/20. $TMHC PR link.
IBM(PBR38) Chairwoman/CEO Virginia Rometty to retire from CEO role, will be Executive Chairman, SVP for Cloud and Cognitive Software Arvind Krishna to become CEO, effective 04/06/20. $IBM PR link.
The US Dept of Commerce says the US 4Q19 Gross Domestic Product Annual Rate is at +2.1%, 3Q19 was at +2.1%, 4Q18 +1.1%; the Annual GDP is at $21.340 trillion, +0.9% from 3Q19, +4.0% from 4Q18. USDOC PR link.
The US Dept of Labor says the US 4 Week Moving Average Initial Jobless Claims on 01/25/20 is at 214,500, -5.9% from 12/21/19, -2.6% from 01/26/19; Total Insured Unemployment on 01/18/20 is at 1,755,500, +3.1% from 12/14/19, +1.0% from 01/19/20; Insured Unemployment Rate remains at 1.2%. USDOL PR link.
The US Dept of Commerce/Census says the US 4Q19 Total Housing Units is at 140,074,000, +289,000 from 3Q19, +1,153,000 from 4Q18, Occupied is at 123,952,000 for a Occupancy Rate of 88.5%, Owner Occupied is at 80,676,000, for a Homeownership Rate of 65.1%, 3Q19 was at 64.8%, 4Q18 64.8%. USDOC PR link.
FreddieMac(PBR40) says the US Average 30 Year Fixed Mortgage Rate Weekly Average on 01/30/20 is at 3.51% with 0.7 points/fees, 12/26/19 was at 3.74%, 11/27/19 3.68%, 01/31/19 4.46%. “This week’s mortgage rates were the second lowest in three years, supporting homebuyer demand and leading to higher refinancing activity.” $FMCC PR link.
***Wednesday, January 29
The Happy New Year Special for The PBR1000, the highly acclaimed research tool used by shrewd investors worldwide, ends this Friday. Get it now! The PBR1000 HNY2020 Special.
Berkshire Hathaway(PBR4 $BRKA) to sell its $373.4 million in 2019 revenues BH Media Group’s business news publications and The Buffalo News to Lee Enterprises(NYSE: LEE) for $140 million in cash with Berkshire Hathaway providing approximately $576 million in long-term financing to Lee at a 9% annual rate, will be Lee’s sole lender. -Lee Enterprises $LEE PR link.
Johnson & Johnson(PBR36) has initiated a project to develop a preventive coronavirus vaccine, expects to start testing later in the year. $JNJ PR link.
UPS(PBR41) takes minority stake in electric car manufacturer Arrival, commits to purchasing 10,000 of Arrival’s vehicles – purpose built for UPS. $UPS PR link.
Facebook(PBR57 $FB) discloses it has reached a $550 million settlement in a class-action with the State of Illinois over its use of facial-recognition technology in Illinois. MarketWatch PR link.
Tesla(PBR144) releases 4Q19 report, 2019 revenues of $24.6 billion, loss of $862 million, anticipates 500,000 Model 3 & Model Y vehicles to be produced at its Fremont, CA factory in 2020. $TSLA PR link.
Tesla(PBR144 $TSLA) is expecting a one to one-and-a-half week delay in the ramp of Shanghai-built Model 3 due to a government-required factory shutdown related to the deadly coronavirus. MarketWatch PR link.
PG&E(PBR182 $PCG) still plans to emerge from Chapter 11 bankruptcy by the end of 06/30/20, California Governor Gavin Newsom threatens state take over of the nation’s largest utility. MarketWatch PR link.
Stanley Black & Decker(PBR227) to acquire specialty fasteners & components for the aerospace & defense markets manufacturer Consolidated Aerospace Manufacturing, LLC (CAM) for up to $1.5 billion, based on Boeing(PBR28) 737 MAX receiving FAA authorization to return to service and Boeing achieving certain production levels. $SWK PR link.
IDEX(PBR820) to acquire privately-held $60 million in annual revenues provider of flow measurement systems in the oil and gas industry Flow Management Devices for $125 million cash, to close in 1Q20. $IEX PR link.
The US Federal Open Market Committee maintains the target range for the federal funds rate at 1.50 to 1.75%, says “… the labor market remains strong and that economic activity has been rising at a moderate rate.” FOMC PR link.
The US Energy Information Administration says US Millions of Barrels of Crude Oil Stocks on 01/25/20 were at 431.7, 12/20/19 was at 441.4, 11/22/19 452.0, 01/25/19 445.9. EIA PR link.
***Tuesday, January 28
3M(PBR93) announces new global operating model and streamlined organizational structure, will reduce workforce by around 1,500. $MMM PR link.
C.H. Robinson(PBR184) to acquire around $109 million in 2019 revenues Prime Distribution Services, a provider of retail consolidation services in N America, from Roadrunner Transportation (NYSE: RRTS) for around $225 million cash. $CHRW PR link.
BorgWarner(PBR293) to acquire propulsions developer Delphi Technologies PLC (NYSE: DLPH) for about $3.3 billion in all stock transaction, to close in 2H20; also authorizes up to $1 billion share repurchase program over next 3 years. $BWA PR link.
Avis Budget(PBR329) adopts a 1 year short term shareholder rights plan, intended to prevent SRS Investment Management, the Company’s largest shareholder, from obtaining effective control of Avis Budget Group without paying a control premium. $CAR PR link.
Allscripts(PBR937) indirect, wholly-owned subsidiary Practice Fusion to pay around $145 million in settlements with the US Dept of Justice and Vermont Dept of Justice for violating anti-kickbacks laws. $MDRX PR link.
Clearwater Paper(PBR942) CEO Linda K. Massman to retire, SVP/General Manager of Consumer Products Division Arsen Kitch to be successor, effective 04/01/20. $CLW PR link.
The Federal Reserve Bank of Richmond says the US 5th District January 2020 Manufacturing Index(Annualized) is at +20%, December 2019 was at -5%, November 2019 -1%, January 2019 +1%. “Manufacturers were optimistic that conditions would continue to strengthen in the coming months.” RichmondFed PR link.
The Federal Reserve Bank of Richmond says the US 5th District January 2020 Service Sector Revenues Index(Annualized) is at +10%, December 2019 was at +17%, November 2019 +15%, January 2019 +9%. “Survey respondents were optimistic that activity would remain robust in the next six months.” RichmondFed PR link.
The Conference Board says the US Preliminary January 2020 Consumer Confidence Index(1985=100) is at 131.6, December 2019 was at 128.2, November 2019 126.8, January 2019 121.7. “Optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020.” TCB PR link.
The S&P/CoreLogic/Case-Shiller US Preliminary November 2019 National Home Price Index(01/2000=100) is at 212.56, October 2019 was at 212.24, September 2019 212.16, November 2018 205.33. Case-Shiller PR link.
***Monday, January 27
The new Boeing(PBR28) 777X jetliner completes successful 3 hour 51 minute first flight, will be largest and most fuel efficient twin-engine commercial jet, is expected to be delivered in 2021. $BA PR link.
Walt Disney(PBR45) temporarily closes its Shanghai park because of coronavirus concerns. $DIS PR link.
AbbVie(PBR94) and Allergan(PBR197) say Allergan to sell its brazikumab (IL-23 inhibitor) business unit to AstaZeneca (LSE/STO/NYSE: AZN) and Zenpep (pancrelipase) to Nestle (Swiss: NESN), divestitures are in conjunction with the ongoing regulatory approval process for AbbVie’s $63 billion acquisition of Allergan. $ABBV PR link.
Eli Lilly(PBR116) gets US FDA approval for Trijardy™ XR (empagliflozin/linagliptin/metformin hydrochloride extended release tablets) to lower blood sugar in adults with type 2 diabetes, along with diet and exercise. $LLY PR link.
Silgan(PBR569) to acquire France based $383 million in 2018 sales global supplier of highly engineered pumps, sprayers and foam dispensing solutions to major branded consumer goods product companies in the Beauty and Personal Care markets Albea’s for $900 million, to close in 1H20. $SLGN PR link.
Laureate Education(PBR683) will evaluate all potential options for its businesses, including sales, spin-offs or business combinations, has already initiated separate processes to explore the sale of its Peru, Mexico and Australia/New Zealand businesses. $LAUR PR link.
Columbia Sportwear(PBR769) President/CEO Tim Boyle appointed to additional role of Chairman, Andy Bryant appointed as Lead Independent Director. $COLM PR link.
The US Dept of Commerce/HUD says the US Preliminary December 2019 New Family Homes Sold Annual Rate is at 694,000, -0.4% from November 2019, +23.0% from December 2018; Median New Home Price is at $331,400, +3.3% from November 2019, +0.5% from December 2018; Months Supply is at 5.7, November 2019 was at 5.5, December 2018 7.4. USDOC PR link.
***Friday, January 24
The PBRMarketTools US Stock Exchanges Recap for Week 4 ending 01/24/20:
DJIA ends Week 4 at 28,989.73, -1.22% from last Friday, +1.58% MTD/QTD/YTD, -1.22% from record 29,348.10 set 01/17/20.
NASDAQ ends Week 4 at 9,314.91, -0.79% from last Friday, +3.82% MTD/QTD/YTD, -0.93% from record 9,402.48 set 01/23/20.
SPX ends Week 4 at 3,295.47, -1.03% from last Friday, +2.00% MTD/QTD/YTD, -1.03% from record 3,329.62 set 01/17/20.
The Week 4 of 2020 News Summary: The news for the week started out by being dominated by the US Senate Impeachment Trial of President Trump, which ended the week with the US House Managers pleading their case for the impeachment. But this news consuming event was quickly matched by the end of the week by the concern worldwide of the Coronavirus, which was first identified in China, cases have been found across the globe, and in simulations shows that an epidemic could cause the death of 75 million people. The week also started out with the World Economic Forum held in Davos, Switzerland, which had the theme of Stakeholders for a Cohesive and Sustainable World. President Trump attended, touted the US economy and committed to being part of the restoration of a trillion trees by 2050. The primary US economic news for the week was that the annual rate of existing home sales is up more than expected. It was a short week for the US stock exchanges with Monday off in observance of Dr. Martin Luther King, Jr, Day. The Impeachment Trial and Coronavirus news made it easy for The Stock Market Bear to get his first weekly win of 2020, a 3-0 victory over a helpless The Stock Market Bull.
The Week 4 of 2020 tally YTD is:
The Stock Market Bull: 2 weeks
The Stock Market Bear: 1 weeks
Mixed Results: 1 week
Marriott Vacations(PBR738) to have new nearly 300,000 sf 9 story global corporate headquarters built in Orlando, FL, will centralize core corporate support teams, to be completed in 2021. $VAC PR link.
Tempur Sealy(PBR786) to acquire 80% stake in top 10 US private-label mattress producer Sherwood Bedding for $40 million, to close in 1Q20. $TPX PR link.
Cincinnati Bell(PBR973) receives unsolicited $12.00/share cash offer, around $3 billion from an infrastructure fund, exceeds Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) $10.50/share, around $2.6 billion offer, Board has commenced discussions. $CBB PR link.
***Thursday, January 23
The Happy New Year Special for The PBR1000, a highly acclaimed research tool used by shrewd investors worldwide, is coming to an end. Check it out! The PBR1000 HNY2020 Special.
Wells Fargo(PBR29) President/CEO Charlie Scharf issues a message to all employees commenting on the US Office of Comptroller of the Currency decision to fine and jail some former employees for their involvement in the fraudulent Community Banking sales practices. $WFC PR link.
Anthem(PBR33) completes acquisition of WellCare Health Plans(PBR151)’ Missouri and Nebraska Medicaid plans per agreement of Wellcare’s acquisition by Centene(PBR50) which has been completed. $ANTM PR link.
Centene(PBR53) completes $305.39/share cash & stock, $17.3 billion acquisition of WellCare Health Plans(PBR151). $CNC PR link.
HP(PBR55) confirms receipt of Xerox(PBR308) nominations of 11 directors for Board, says it believes the nominations are a self-serving tactic by Xerox to advance its acquisition proposal that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders. $HPQ PR link.
Broadcom(PBR136) has entered into two separate multi-year statement of work agreements with Apple(PBR3) for the supply of a range of specified high-performance wireless components and modules for use in Apple products, could produce $15 billion in revenues. $AVGO PR link.
Colgate-Palmolive(PBR200) to acquire Hello Products(“Hello”), one of the fastest-growing, premium oral care brands in the US, from Tenth Avenue Holdings, to close by end of 02/20, terms not disclosed. $CL PR link.
MGM Resorts(PBR257) named an official gaming partner of the Las Vegas Raiders professional football team, founding partner of Allegiant Stadium, and An Official Home of the Raiders Pre- and Post-Game Party. $MGM PR link.
Moody’s(PBR570) to acquire anti-money laundering and know-your-customer data and due diligence services provider Regulatory DataCorp for $700 million, to close in 1Q20. $MCO PR link.
The Conference Board says the US Preliminary December 2019 Leading Economic Index(2016=100) is at 111.2, November 2019 was at 111.5, October 2019 111.4, December 2018 111.4. “… financial conditions and consumers’ outlook for the economy remain positive, which should support growth of about 2 percent through early 2020.” TCB PR link.
***Wednesday, January 22
Ford(PBR12) to take a $2.2 billion charge in 4Q19 for pension obligations, will effect net income by $1.7 billion. $F PR link.
Tesla(PBR144 $TSLA) gets clearance in Michigan to sell more electric vehicles in the state. MarketWatch PR link.
PG&E(PBR182) reaches agreement with Ad Hoc Noteholder Community that resolves all issues related to the treatment of pre-petition funded debt of the Utility, including post-petition interest amounts and make-whole premiums, under PG&E’s Chapter 11 Plan of Reorganization. $PCG PR link.
Franklin Resources(PBR476)’s Fiduciary Trust subsidiary to acquire $4 billion in assets under management The Pennsylvania Trust Company, to close by 06/30/20, terms not disclosed. $BEN PR link.
Sabre Corp(PBR617) announces plans with Accor to create the first unified technology platform for the global hospitality industry. $SABR PR link.
TeleFlex(PBR824) gets US FDA 510(k) clearance for its WattsonTM Temporary Pacing Guidewire – the first commercially available bipolar temporary pacing guidewire designed specifically for use during transcatheter aortic valve replacement (TAVR) and balloon aortic valvuloplasty (BAV). $TFX PR link.
Express(PBR877) to close approximately 100 stores by 2022, includes nine stores that have already closed in 2019, 31 by the end of January 2020, and an additional 35 by the end of January 2021. $EXPR PR link.
The Federal Reserve Bank of Chicago says the US Preliminary December 2019 Natl Activity Index is at -0.35, November 2019 was at +0.41, October 2019 -0.74, December 2018 -0.03. ChiFed PR link.
The Natl Assn of Realtors says the US Preliminary December 2019 Existing Home Sales Annual Rate is at 5,540,000, +3.6% from November 2019, +10.8% from December 2018; Median Price is at $274,500, +1.2% from November 2019, +7.8% from December 2018. NAR PR link.
The ADP(PBR220) Workforce Vitality Report says the US 4Q19 Wage Growth Annual Rate is at +3.2%, Wage Level is at $28.93/hour, +$0.22 from 3Q19, +$0.88 from 4Q18. $ADP PR link.
***Tuesday, January 21
Boeing(PBR28) is currently estimating that the ungrounding of the 737 MAX will begin during mid-2020. $BA PR link.
Target(PBR39) offering 1,800+ new swimsuit styles starting at $14.99. $TGT PR link.
Walt Disney(PBR45) moves up launch date for Disney+ streaming service in western Europe to 03/24/20, monthly subscription at $7.76. $DIS PR link.
Facebook(PBR57 $FB) to add 1,000 tech and content jobs in the UK, will result in 4,000+ workforce in the UK. MarketWatch PR link.
VF Corp(PBR229) is reviewing strategic alternatives for the occupational portion of its Work segment, consists of primarily nine brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®, review does not include Dickies® and Timberland PRO® brands. $VFC PR link.
JCPenney(PBR261 $JCP) identifies 6 stores it will be closing effective 04/24/20. MarketWatch PR link.
Uber(PBR272) sells food delivery business in India to restaurant review, restaurant discovery, food delivery and dining out transactions platform provider Zomato in an all-stock transaction, Uber retains 9.99% stake. $UBER PR link.
McDermott Intl(PBR432) to restructure through prepackaged Chapter 11 process on expedited schedule with the support of $2.81 billion debtor-in-possession financing, will equitize nearly all the Company’s funded debt, eliminating over $4.6 billion of debt, agreement to sell Lummus Technology to The Chatterjee Group and Rhône Group for $2.725 billion, subject to higher or otherwise better bids received through a court-supervised auction process. $MDR PR link.
Sabre Corp(PBR617) selects Alphabet(PBR17)’s Google Cloud for 10 year partnership to accelerate its digital transformation. $SABR PR link.
Toro(PBR709) to acquire privately-held Orrville, OH based $100 million in 2019 revenues manufacturer of articulating turf, landscape, and snow and ice management equipment for the grounds, landscape contractor, golf, municipal and rural acreage markets Venture Products for $167.5 million in cash, to close by 04/30/20. $TTC PR link.
Intel(PBR43) Chairman Andy D. Bryant has stepped down as chairman and from the Board, Board elects lead independent director Dr. Omar Ishrak to succeed Bryant as an independent chairman, effective immediately. $INTC PR link.
ServiceMaster(PBR908) exploring strategic alternatives for its ServiceMaster Brands business, including a potential sale of the segment; Nik Varty has stepped down as CEO and Board director, Chairman Naren Gursahaney named Interim CEO, effective immediately. $SERV PR link.
***Monday, January 20
***Dr. Martin Luther King, Jr, Day Observed.
***Link to Dr. King’s Biography.
***US Stock Exchanges Closed.
United Technologies(PBR48 $UTX) Collins Aerospace unit to sell its military global positioning system assets to UK based BAE Systems for $1.925 billion and Raytheon(PBR104 $RTN) to sell its airborne tactical radios business to UK based BAE Systems for $275 million, subject to the successful closure of the Raytheon-United Technologies merger scheduled for 2H20. BAE Systems PR link.
Verso Corp(PBR789) gets all regulatory approvals needed for sale of its Androscoggin mill, located in Jay, ME, and its Stevens Point mill, located in Stevens Point, WI, to Pixelle Specialty Solutions for $400 million, expects to close deal in early 02/20 after stockholders special meeting scheduled for 01/31/20. $VRS PR link.
***Friday, January 17
The PBRMarketTools US Stock Exchanges Recap for Week 3 ending 01/17/20:
DJIA ends Week 3 at a record 29,348.10, +1.82% from last Friday, +2.84% MTD/QTD/YTD, +0.00% from record 29,348.10 set 01/17/20.
NASDAQ ends Week 3 at a record 9,388.94, +2.29% from last Friday, +4.64% MTD/QTD/YTD, +0.00% from record 9,388.94 set 01/17/20.
SPX ends Week 3 at a record 3,329.62, +1.97% from last Friday, +3.06% MTD/QTD/YTD, +0.00% from record 3,329.62 set 01/17/20.
The Week 3 of 2020 News Summary: The week started off with the College Football Championship and #1 LSU winning over #3 Clemson 42-25 in the New Orleans Superdome, and LSU finishing the season unbeaten. In international trade the US and China sign Phase 1 of a new agreement. Also, the US Senate approves the US/Mexico/Canada trade agreement. Regarding US politics, the US House voted to forward the Articles of Impeachment of President Trump to the Senate, which accepted them, and swore in to be the jury of the trial which is expected to start next Tuesday. Six Democrat presidential candidates held a debate in Iowa, which will be the first primary election state. The US economy continues to grow at a modest rate according to the latest Federal Reserve Beige Book, but had mixed results throughout the week. With the signing of the US/China trade agreement and approval of the USMCA The Stock Market Bull stood tall and proud on the hill of the pasture with a 3-0 victory and finishing the week at record highs for all 3 major US stock exchanges. The Stock Market Bear decided to stay in his hibernation cave.
The Week 3 of 2020 tally YTD is:
The Stock Market Bull: 2 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 1 week
Boeing(PBR28 $BA) finds new software problem with 737 MAX, will delay key FAA flight certification from late 01/20 to 02/20 at earliest. MarketWatch PR link.
Best Buy(PBR71 $BBY) board is investigating allegations that CEO Corie Barry had an inappropriate romantic relationship with a fellow executive, who has since left the electronics retailer, Barry statement says she is cooperating. MarketWatch PR link.
The US Dept of Labor says the US Preliminary November 2019 Job Openings-Private is at 6,080,000, Government 719,000, Total 6,799,000, -7.6% from October 2019, -10.9% from November 2018. USDOL PR link.
The US Dept of Commerce/HUD says the US Preliminary December 2019 Private Housing Building Permits Issued Annual Rate is at 1,416,000, -3.9% from November 2019, +5.8% from December 2018. USDOC PR link.
The US Federal Reserve says the US Preliminary December 2019 Total Industry Production % of Capacity Utilization is at 77.0%, November 2019 was at 77.4%, October 2019 76.9%, Capacity Growth Over December 2018 +2.1%. USFed PR link.
The U of Michigan US Preliminary January 2020 Consumer Sentiment Index is at 99.1, December 2019 was at 99.3, November 2019 96.8, January 2019 91.2. “Consumers will continue to sustain the expansion due to their favorable judgements about their current and prospective financial situation… whether that strength will last another two years is uncertain, given that the election season has only begun and features fundamental changes in taxes and spending programs that directly affect consumers.” UMichigan PR link.
***Thursday, January 16
Comcast(PBR32)’s NBCUniversal unit unveils Peacock, a free premium ad-supported streaming service with subscription tiers offering more than 600 movies and 400 series, as well as compelling live and on-demand content across news, sports, late night, and reality, to launch 04/15/20. $CMCSA PR link.
Merck(PBR73) completes $20.00/share $2.7 billion cash acquisition of biopharmaceutical company focused on kinase inhibitor discovery and development for the treatment of patients with cancer and other diseases ArQule(Nasdaq: ARQL). $MRK PR link.
Coca-Cola(PBR96) is expanding its POWERADE product lineup for the first time in over a decade. $KO PR link.
Gap Inc(PBR185) no longer intends to separate Old Navy into a standalone public company. $GPS PR link.
Regis Corp(PBR998) reduces administration staff by around 290, part of restructuring plan to emphasize franchise business. $RGS PR link.
The US Dept of Labor says the US Preliminary December 2019 Monthly Import Prices are +0.3%, Exports -0.2%; Last 12 Months Imports +0.5%, Exports -0.7%. USDOL PR link.
The US Dept of Commerce/Census says the US Preliminary November 2019 Sales-Manufacturers is $502.2 billion, Retail $462.9 billion, Wholesalers $500.7 billion, Total $1,465.7 billion, +0.7% from October 2019, +1.0% from November 2018. USDOC PR link.
The US Dept of Commerce/Census says the US Advance December 2019 Sales-Retail is at $464.5 billion, Food Services & Drinking Places $65.1, Total $529.6, +0.3% from November 2019, +5.8% from December 2018. USDOC PR link.
The US Federal Reserve Bank of Philadelphia says the US 3rd District January 2020 Manufacturing General Business Indicator is at +17.0, December 2019 was at +2.4, November 2019 +8.4, January 2019 +14.8. “The survey’s future activity indexes remained at relatively high readings, suggesting continued optimism about growth for the next six months.” PhillyFed PR link.
The Natl Assn of Home Builders/Wells Fargo Preliminary January 2020 Composite Housing Market Index(>50 = Builders view conditions as good) is at 75, December 2019 was at 76, November 2019 71, January 2019 58. “Low interest rates and a healthy labor market combined with a need for additional inventory are setting the stage for further home building gains in 2020,… However, builders continue to grapple with a shortage of lots and labor, while buyers are frustrated by a lack of inventory, particularly among starter homes.” NAHB/WF PR link.
***Wednesday, January 15
Pepsi(PBR49) to achieve 100% renewable electricity of its US operations by end of 2020. $PEP PR link.
VISA(PBR131) has met its goal to use 100% renewable electricity by 2020. $V PR link.
XPO Logistics(PBR177) to review strategic alternatives, including the possible sale or spin-off of one or more of XPO’s business units. $XPO PR link.
Fortive(PBR445) says name of the new global industrial company which is expected to separate from Fortive later this year will be Vontier Corporation, will be headquartered in Raleigh, NC, will employ approximately 8,400 people worldwide, Mark D. Morelli to be President/CEO. $FTV PR link.
Boise Cascade(PBR610) COO Nate Jorgensen to become CEO and member of the Board on 03/06/20, will succeed Tom Corrick, who will be retiring from his roles as CEO and director after nearly 37 years with Boise Cascade. $BCC PR link.
Trinity Industries(PBR815) appoints Board member E. Jean Savage as President/CEO, effective 02/17/20. $TRN PR link.
The US Federal Reserve releases the Beige Book for data through 01/06/20, says, “Economic activity generally continued to expand modestly in the final six weeks of 2019… Expectations for the near-term outlook remained modestly favorable across the nation.” USFED PR link.
The US Dept of Labor says the US Preliminary December 2019 Monthly Final Demand Producer Price Index is at +0.1%, November 2019 was at +0.0%, October 2019 +0.4%, December 2018 -0.1%; Total Last 12 Months is at +1.3%, November 2019 was at +1.1%, October 2019 +1.1%, December 2018 +2.6%. USDOL PR link.
The Federal Reserve Bank of New York says the US January 2020 Empire State Manufacturing General Business Conditions Index is at +4.8, December 2019 was at +3.5, November 2019 +2.9, January 2019 +3.9. “Indexes assessing the six-month outlook suggested that optimism about future conditions remained restrained.” NYFED PR link.
***Tuesday, January 14
Amazon(PBR5 $AMZN) lifts ban on FedEx(PBR44 $FDX) Ground for third-party Prime shipments, is meetings delivery standards. MarketWatch PR link.
Alphabet(PBR17)’s Google unit to acquire Pointy, a company based in Dublin, Ireland that has helped thousands of local retailers bring their product inventory online, to close in a few weeks, terms not disclosed. $GOOG PR link.
Eli Lilly(PBR116) expands insulin affordability options with lower-priced versions of Humalog® Mix75/25™ KwikPen® and Humalog® Junior KwikPen®, 50% lower prices, to be available mid 04/20. $LLY PR link.
MGM Resorts(PBR257) to sell MGM Grand Las Vegas real estate assets for around $2.5 billion to new joint venture between MGM Growth Properties and Blackstone(PBR423) Real Estate Income Trust, MGM will do leaseback on this and Mandalay Bay which is also being acquired by the partnership, to close in 1Q20. $MGM PR link.
Express(PBR877) restructuring its corporate workforce, will impact around 10% of workforce at Columbus, OH, headquarters and New York, NY, design studio. $EXPR PR link.
The New York Times(PBR937) achieves $800 million in revenues from digital subscriptions a year ahead of time, gains 1+ million subscribers in 2019, now has over 5 million subscribers across all platforms. $NYT PR link.
Sabre Corp(PBR619) elects Karl Peterson to be Chairman, effective immediately, succeeds Larry Kellner who is stepping down to focus on being Chairman of Boeing(PBR28). $SABR PR link.
The US Dept of Labor says the US December 2019 Consumer Price Index-Urban is at +0.2%, November 2019 was at +0.3%, October 2019 +0.4%, December 2018 +0.0%, Last 12 Months +2.3%, “… the largest advance since the 3.0-percent rise in 2011…” USDOL PR link.
The US Dept of Labor says the US December 2019 Current Average Earnings/Hour is at $28.32, Average Hours Worked Per Week at 34.3, for Average Current Weekly Earnings at $971.38, +2.3% from December 2018, November 2019 was at $970.35, October 2019 967.26, December 2018 $949.79. USDOL PR link.
CoreLogic says the US October 2019 Percent of Housing Mortgages 30 Days or more Delinquent is at 3.7%, September 2019 was at 3.8%, August 2019 3.7%, October 2018 4.1%; Total Percent of Houses in Foreclosure is at 0.4%. CoreLogic PR link.
***Monday, January 13
VISA(PBR131) to acquire Plaid, an apps developer for people to securely connect to their financial accounts, for $5.3 billion, to close in 3-6 months. $V PR link.
Biogen(PBR233) to acquire from Pfizer(PBR61) PF-05251749, a novel CNS-penetrant small molecule inhibitor of casein kinase 1 (CK1), for the potential treatment of patients with behavioral and neurological symptoms across various psychiatric and neurological diseases, for $75 million upfront plus up to $635 million in potential additional development and commercialization milestone payments, as well as tiered royalties in the high single digits to sub-teens. $BIIB PR link.
Anixter(PBR356) agrees to be acquired by WESCO(PBR365) for $100.00/share, $4.5 billion cash & stock, terminates agreement to be acquired by Clayton, Dubilier & Rice, to close in 2Q20 or 3Q20. $AXE PR link.
TreeHouse Foods(PBR475) terminates sale of private label ready-to-eat cereal business to Post Holdings(PBR458) due to regulatory issues, will begin the process of re-marketing the business for sale. $THS PR link.
TreeHouse Foods(PBR475) to sell two of its in-store bakery facilities with 383 employees located in Fridley, MN, and Lodi, CA, to Rich Products, to close by 04/10/20, terms not disclosed. $THS PR link.
Woodward(PBR752) shareholders to own 55% and Hexcel(PBR866) shareholders 45% in merger of equals to create Woodward Hexcel, an integrated systems provider serving the aerospace and industrial sectors with 16,000 employees and $5.3 billion in revenues, to close in 3Q20. $WWD PR link.
Boeing(PBR28) announces David L. Calhoun has become President/CEO, succeeds interim CEO Greg Smith. $BA PR link.
Sysco(PBR54) President/CEO Tom Bené to retire from his roles on 01/31/20, Kevin Hourican hired to be President/CEO on 02/01/20, lead independent director Ed Shirley to become Executive Chair on 01/13/20, replacing Tom Bené. $SYY PR link.
Builders FirstSource(PBR386) CEO Chad Crow to retire after 20 years of service, will step down upon appointment of successor. $BLDR PR link.
The US Dept of Treasury says the US December 2019 Government Receipts are $335.8 billion, Outlays $349.1 billion, Deficit $13.3 billion, December 2018 Deficit was $13.5 billion; Receipts YTD(3 Months) are at $806.5 billion, Outlays YTD $1,163.1 billion, Deficit YTD $356.6 billion, Deficit YTD 2018 was at $318.9 billion. USTreasury PR link.
***Friday, January 10
The PBRMarketTools US Stock Exchanges Recap for Week 2 ending 01/10/20:
DJIA ends Week 2 at 28,823.77, +0.66% from last Friday, +1.00% MTD/QTD/YTD, -0.46% from record 28,956.90 set 01/09/20.
NASDAQ ends Week 2 at 9,178.86, +1.75% from last Friday, +2.30% MTD/QTD/YTD, -0.27% from record 9,203.43 set 01/09/20.
SPX ends Week 2 at 3,265.35, +0.94% from last Friday, +1.07% MTD/QTD/YTD, -0.29% from record 3,274.70 set 01/09/20.
The Week 2 of 2020 News Summary: Most of the week’s international news centered around US/Iran tensions, with Iran launching 16 missiles at US airbases in Iraq in retaliation for the US drone killing of their key general. By the end of the week it appeared that no additional military actions were going to take place. The UK Parliament okayed Boris Johnson’s Brexit plan. The US/China Phase 1 trade agreement is scheduled to be signed on 01/15/20, President Trump says Phase 2 will probably occur after US general elections in November. In US politics it appears that the US House will forward its impeachment articles of President Trump to the US Senate next week. US economic news was mixed for the week, with the jobs report on Friday being a big disappointment. The Consumer Electronics Show 2020 in Las Vegas featured a lot of new technologies being released, especially among chip manufacturers. As US/Iran tensions eased The Stock Market Bull took advantage with all 3 major US stock exchanges hitting new record highs on Thursday and in a mixed week of gains and losses came out on top with a 3-0 victory over The Stock Market Bear.
The Week 2 of 2020 tally YTD is:
The Stock Market Bull: 1 week
The Stock Market Bear: 0 weeks
Mixed Results: 1 week
Eli Lilly(PBR116) to acquire biopharmaceutical developer of new therapies for chronic skin conditions Dermira for $18.75 per share, or approximately $1.1 billion cash, to close by end of 1Q20. $LLY PR link.
Spirit AeroSystems(PBR403) laying off around 2,800 employees at its Wichita, KS, facility because of Boeing(PBR28)‘s 737 MAX production suspension, which represents 50% of revenues; plans to implement smaller workforce reductions for plants in Tulsa and McAlester, OK. $SPR PR link.
Endo Intl(PBR741) settles opioid investigation with the State of Oklahoma for $8.75 million. $ENDP PR link.
Prologis(PBR769) completes $4 billion acquisition of 37.5 million sf operating portfolio comprising 236 properties REIT firm Industrial Property Trust‘s wholly owned real estate assets. $PLD PR link.
Parsley Energy(PBR920) completes around $2.27 billion, including net debt of aound $625 million, all stock acquisition of independent oil and natural gas company Jagged Peak (NYSE: JAG). $PE PR link.
Six Flags(PBR964) says development of the Six Flags-branded parks in China has encountered continued challenges and has not progressed as expected, China partner is defaulting on payments, outcome uncertain; also, Company’s N America parks experienced lower attendance in 4Q19 versus 4Q18 due to softer than expected season pass and membership sales. $SIX PR link.
The US Dept of Labor says the US December 2019 Available Labor Force is at 164,556,000, Employed is at 158,803,000, +267,000 from November 2019, +1,978,000 from December 2018, Unemployed is at 5,753,000, -58,000 from November 2019, -533,000 from December 2018, Unemployment Rate remains at 3.5%. USDOL PR link.
The US Dept of Commerce/Census says the US Preliminary November 2019 Wholesale Sales-Durable Goods was at $238.3 billion, Non-Durable Goods $262.4 billion, Total $500.7 billion, +1.5% from October 2019, +0.8% from November 2018. USDOC PR link.
***Thursday, January 9
Verizon(PBR18) introduces Mix & Match Fios, no bundle required to get the best internet and tv rates, no annual contracts. $VZ PR link.
Target(PBR39) introduces its newest activewear and sporting goods owned brand All in Motion, includes everything from sports bras and leggings to hand weights and yoga mats. $TGT PR link.
SYNNEX(PBR156) to separate into two publicly traded companies: comprising of $19 billion/year SYNNEX Technology Solutions, a leading IT distribution, services and integrated solutions company, and $4.7 billion/year Concentrix, a leading global CX solutions company, to be completed in 2Q20. $SNX PR link.
Kinder Morgan(PBR221) has sold all of the around 25 million shares of Pembina Pipeline(TSX: PPL; NYSE: PBA) stock it received in connection with Pembina’s acquisition of the outstanding common equity of Kinder Morgan Canada Ltd for after tax proceeds of $764 million. $KMI PR link.
PVH(PBR314) to sell its Speedo N America business to Pentland Group, parent company of Speedo International Limited, for $170 million cash, to close by 04/30/20. $PVH PR link.
Anixter(PBR356) says WESCO(PBR365) $100.00/share $4.5 billion cash & stock offer is superior to Clayton, Dubilier & Rice‘s offer, per agreement CD&R now has 5 days to counter offer. $AXE PR link.
Equinix(PBR525) completes $175 million cash acquisition of three data centers that serve the Mexico City and Monterrey metro areas of Mexico from Axtel S.A.B. de C.V. (BMV: AXTELCPO). $EQIX PR link.
Meredith Corp(PBR704) acquires SwearBy, a digital platform for word of mouth recommendations designed to crowdsource and share products that women “swear by” based on their personal experiences, terms not disclosed. $MDP PR link.
Trimble(PBR712), with its 1.3+ million network of private fleet and commercial carrier customers, to acquire privately-held transportation management system provider and creator of N America’s largest connected shipping community of 21,000 shipping companies, Kuebix, to close in 1Q20, terms not disclosed. $TRMB PR link.
Popular(PBR793) authorizes up to $500 million share repurchase program for 2020. $BPOP PR link.
Ferrellgas(PBR946) to delist from the NYSE on 01/10/20, will start trading on the OTC Pink list with ticker symbol FGPR. $FGP PR link.
American Equity(PBR958) hires Anant Bhalla to be President/Board member on 01/27/20, will add CEO role on 03/01/20, will succeed John M. Matovina who will remain on the Board as non-executive Chairman. $AEL PR link.
***Wednesday, January 8
Kroger(PBR21) launches its Simple Truth® Emerge™ plant based fresh meats and grinds at more affordable prices. $KR PR link.
HP(PBR55) sends reply letter to Xerox(PBR309) says Xerox’s letter of 01/06/20 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion. $HPQ PR link.
Sprint(PBR90) to integrate Wirecard unified commerce solutions into Sprint’s Curiosity™ Internet of Things (IoT) platform to deliver the “Internet of Payments,” focus to initially be on retail segment. $S PR link.
AbbVie(PBR94) announces creation of a new global business, Allergan Aesthetics, an AbbVie company, and the proposed leadership team for the combined company, effective upon the expected 1Q20 close of the $63 billion Allergan(PBR197) acquisition. $ABBV PR link.
Macy’s(PBR115 $M) to close 28 Macy’s stores and 1 Bloomingdale’s store in the coming weeks. MarketWatch PR link.
ViacomCBS(PBR242) and Comcast(PBR32) renew their content carriage agreement that includes continued retransmission consent of 23 CBS-owned television stations in 15 major markets across the country, including CBS-owned The CW affiliates, as well as distribution of the popular entertainment and sports channels SHOWTIME®, Smithsonian Channel™, Pop TV and CBS Sports Network to Xfinity customers; also, CBS All Access, CBS’ digital subscription video on-demand and live streaming service, will be available on Comcast’s Xfinity X1 and Flex platforms later this year. $VIAC PR link.
Uber(PBR272) announces new policies for California drivers in response to the California’s AB5 law, provides more details and transparency on value of a trip, fees, and payment to driver. $UBER PR link.
Air Products(PBR333) to Invest $500 million to build, own and operate Its largest-ever hydrogen steam methane reformer, a nitrogen air separation unit and utilities facilities, and wins long-term contract to supply Gulf Coast Ammonia’s new world-scale Texas production plant. $APD PR link.
Constellation Brands(PBR335 $STZ) to spend $40 million to launch Corona hard seltzer in the spring, biggest investment it has ever made in a single brand. MarketWatch PR link.
Apollo Global Mgmt(PBR995) completes acquisition of global photo retailer Snapfish, to be combined with recent $2.7 billion acquisition Shutterfly. $APO PR link.
Institutional investors worldwide, who move millions of dollars in and out of investments, in recent years have discovered that The PBR1000 has become a must have analytics tool to help them make higher probability of success investment decisions. Get the same power at the significantly discounted Happy New Year 2020 rate today by clicking here!
The US Federal Reserve Board says the US Preliminary November 2019 Consumer Credit Outstanding-Revolving is at $1.086 trillion, Non-Revolving $3.090 trillion, Total $4.176 trillion, +0.30% from October 2019, +4.2% from end of December 2019, +4.3 from end of December 2018. clicking here!
ADP(PBR219) says the US Preliminary December 2019 Change in Employment-Small Businesses is +69,000, Medium +88,000, Large 45,000, Total +202,000, November 2019 was at +124,000, October 2019 +151,000, December 2018 +249,000; the Goods Producing Sector was +29,000, Services +173,000. $ADP PR link.
***Tuesday, January 7
The PBR25 Top Stock Buys By Analyst Recommendations As Of 12/31/19 Summary:
– Avg Recommendation: 4.72/5.00
– Avg Recommendations Range: 4.60-4.96/5.00
– Avg Number of Recommendations: 30
– Avg Number of Buy Recommendations: 25
– Range of Buy Recommendations: 15 to 43
– NYSE: 15 companies, NASDAQ: 10
– Avg Return since 12/31/14(60 mos): +174.2%
– DJIA Return since 12/31/14: +60.1%
– NASDAQ Return since 12/31/14: +89.5%
– S&P500 Return since 12/31/14: +56.9%
To find out more about The PBR25 click here!
HCA(PBR66) completes acquisition to become majority owner of parent of Galen College of Nursing, one of the largest nursing educators in the US, terms not disclosed. $HCA PR link.
T-Mobile US(PBR70) says it had 7.0 million net adds in 2019, now has 86.0 million customers. $TMUS PR link.
United Airlines(PBR75) to take a special non-cash impairment charge of $90 million in 4Q19 associated with its Hong Kong routes. $UAL PR link.
Goldman Sachs(PBR85) restructures into 4 business segments: Investment Banking, Global Markets, Asset Management and Consumer & Wealth Management, to be reflected in 4Q19 financial statements. $GS PR link.
Abbott(PBR100) gets US FDA approval for a new alternative surgical technique for Abbott’s HeartMate 3 heart pump that will allow more advanced heart failure patients to avoid open heart surgery. $ABT PR link.
Tesla(PBR142) CEO Elon Musk says Tesla will open a design and engineering center in China to design a future model to be sold world-wide but gave no further details, also launched the new Model Y SUV program. $TSLA PR link.
Broadcom(PBR149 $AVGO) to sell its Symantec’s Mountain View, CA based 300+ worldwide employees Cyber Security Services business to Accenture(NYSE: ACN), to close in 03/20, terms not disclosed. Accenture PR link.
Uber(PBR272 $UBER) and S Korea based Hyundai are teaming up to develop electric air taxis. Reuters PR link.
Ascena Retail(PBR495) gets written notice from NASDAQ saying Company successfully regained compliance with the minimum bid price requirement for continued listing on The Nasdaq Global Select Market. $ASNA PR link.
Ametek(PBR537) to sell its $160 million in annual sales Reading Alloys business to specialty materials company Kymera International, owned by affiliates of Palladium Equity Partners, for $250 million cash, to close in 1Q20. $AME PR link.
Square(PBR691) starts charging 1.5% fee for instant transfers, 1 day transfers remain free. $SQ PR link.
KKR(PBR831) has acquired eight building, 688,100 sf, Class A office campus Riata Corporate Park in Austin, TX, for around $258 million. $KKR PR link.
The US Dept of Commerce/Census says the US Preliminary November 2019 Exports-Goods is at $137.2 billion, Services $71.5 billion, Total Exports $208.7 billion; Imports-Goods is at $201.1 billion, Services $50.7 billion, Total Imports $251.8 billion; Total Deficit-Goods $63.9 billion, Total Gain-Services $20.8 billion, Total Deficit $43.1 billion; Total Deficit YTD(11 months) is at $563.0 billion, Total Deficit YTD 2018 was at $566.5 billion. USDOC PR link.
The US Dept of Commerce/Census says the US Preliminary November 2019 Manufacturers New Orders-Durables is at $242.2 billion, Non-Durables $250.8 billion, Total New Orders $493.0 billion, Change from October 2019 is -0.7%, Change from November 2018 -1.3%, Total YTD(11 months) is at $5.466 trillion, Change from November 2019 -0.5%. USDOC PR link.
The Institute for Supply Management says the US December 2019 Non-Manufacturing Index(>50% economy growing) is at 55.0%, November 2019 was at 53.9%, October 2019 54.7%, December 2018 58.0%. “… respondents are positive about the potential resolution on tariffs. Capacity constraints have eased a bit; however, respondents continue to have difficulty with labor resources.” ISM PR link.
The FannieMae(PBR22) US December 2019 Home Purchase Sentiment Index is at 91.7, November 2019 was at 91.5, October 2019 88.8, December 2018 83.5. “The HPSI’s strength supports our prediction of a healthy housing market in 2020, as well as consumers’ appetite and ability to absorb the expected increase in entry-level inventory.” $FNMA PR link.
The PurdueU/CME Group US December 2019 Ag Economy Barometer Composite Index is at 150, November 2019 was at 153, October 2019 136, December 2018 127. “Agricultural producers in December were less optimistic about current economic conditions on their farms than a month earlier but remained optimistic about future economic conditions.” PurdueU/CME Group PR link.
***Monday, January 6
Amazon(PBR5) says its Fire TV has passed more than 40 million active users globally. $AMZN PR link.
American Airlines(PBR67) announces it has reached a confidential agreement with Boeing(PBR28) on compensation for financial damages incurred in 2019 due to the grounding of the airline’s Boeing 737 MAX aircraft, a discretionary portion of the settlement to be returned to American Airlines team members through the company’s 2019 profit-sharing program. $AAL PR link.
Allergan(PBR197)’s Warner Chilcott and Watson subsidiaries to pay $300 million in settlement agreement direct and indirect purchasers of Loestrin 24 Fe and Minastrin 24 Fe. $AGN PR link.
Bed Bath & Beyond(PBR251) completes a sale-leaseback transaction with an Oak Street Real Estate Capital affilates, generating over $250 million in net proceeds. $BBBY PR link.
Molson Coors(PBR284) to cease production at its 470 employees Irwindale, CA, brewery by 09/20, signs agreement with Pabst Brewing Co giving them an option to purchase the facility, 4.8 million barrels production to be moved to Golden, CO, and Ft Worth, TX, facilities. $TAP PR link.
Xerox(PBR309) secures $24 Billion in binding financing commitments for HP(PBR55) acquisition, sends letter to HP Board requesting to begin negotiations. $XRX PR link.
Huntsman(PBR326) completes $2 billion sale of its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses located in Texas and Australia to Indorama Ventures. $HUN PR link.
Coty(PBR340) completes $600 million payment for 51% ownership in long-term partnership with Kylie Jenner to develop her Kylie Cosmetics, Kylie Skin, and other products. $COTY PR link.
Univar(PBR342) completes $195 million sale of its pest control management Environmental Sciences business to AEA Investors. $UNVR PR link.
O-I Glass(PBR419)‘s wholly owned subsidiary Paddock Enterprises voluntarily files for relief under Chapter 11 Bankruptcy to resolve all of its current and future asbestos-related claims. $OI PR link.
AMD(PBR442) announces world’s highest performance fesktop and ultrathin laptop processors at CES 2020, the AMD Ryzen™ 4000 Series Mobile Processor family, also the 64-core, 128-thread AMD Ryzen™ Threadripper™ 3990X. $AMD PR link.
YUM!(PBR482) to acquire The Habit Burger Grill(NASDAQ:HABT), with nearly 300 company-owned and franchised restaurants across the US and in China, for $14 per share in cash, around $375 million, to be completed by end of 2Q20. $YUM PR link.
Elanco Animal Health(PBR720) to divest Osurnia®, a treatment for otitis externa in dogs, to Dechra Pharmaceuticals PLC (LON: DPH) for $135 million in an all-cash deal. $ELAN PR link.
First Solar(PBR860) has agreed to pay $350 million to settle the claims brought on behalf of purchasors of the Company’s shares between 04/30/08 and 02/28/12. $FSLR PR link.
Pier 1 Imports(PBR956) says FY 3Q20 sales down 11.4% due to shorter holiday season, to reduce its store footprint by up to 450 locations, to close certain distribution centers and reduce its corporate expenses, includes reduction of corporate headcount. $PIR PR link.
Kimco Realty(PBR989) completes sale to Spirit Airlines(PBR688) of around 9 acres of land at its Dania Pointe mixed-use project in Dania Beach, FL, Spirit Airlines to develop a new global headquarters, investing up to $250 million for the creation of a corporate campus that will support more than 1,000 employees in up to 500,000 sf, construction to begin in 2021, with an anticipated transfer of employees in mid-2022. $KIM PR link.
The IHS Markit US December 2019 Composite PMI Output Index is at 52.7, November 2019 was at 52.0, October 2019 50.9, December 2018 54.4. “The missing ingredient compared to this time last year is optimism about the future, with business sentiment regarding prospects for the next twelve months running well below levels seen this time last year, and close to the lowest for at least seven years.” IHS Markit PR link.
Automotive News says US December 2019 Light Vehicle Units Sold is at 1,543,471, -5.2% from December 2018; Average Transaction Price was at $34,602, +2.0% from December 2018; Average Days On Lot was 72, December 2018 was 67. Automotive News PR link.
***Friday, January 3
The PBRMarketTools US Stock Exchanges Recap for Week 1 ending 01/03/20:
DJIA ends Week 1 at 28,634.88, -0.04% from last Friday, +0.34% MTD/QTD/YTD, -0.81% from record 28,868.80 set 01/02/20.
NASDAQ ends Week 1 at 9,020.77, +0.16% from last Friday, +0.54% MTD/QTD/YTD, -0.79% from record 9,092.19 set 01/02/20.
SPX ends Week 1 at 3,234.85, -0.16% from last Friday, +0.13% MTD/QTD/YTD, -0.71% from record 3,257.85 set 01/02/20.
The Week 1 of 2020 News Summary: The New Year for international trade starts off with a US/China Phase 1 agreement scheduled for 01/15/20. The UK Brexit from the European Union is to take place 01/31/20. N Korea is still trying to leverage its nuclear weapons to relieve it from some trade sanctions. The Mideast is volatile once again after a US strike that killed a key Iranian general in Iraq. Per the Federal Open Market Committee the US economy still seems solid with modest/moderate growth indications for the early part of the year. Even though it is winter US politics should start generating some interesting heat. The Senate Impeachment Trial of President Trump is still not scheduled, but should start in January. The Democrats have had some presidential contenders withdraw. Upcoming debates and fundraising milestones should narrow the field some more. On the first trading day of the year The Stock Market Bull confidently charged into the pasture and established new records for all 3 major US stock exchanges. But with concerns about Mideast conflicts and their effects on oil production and prices, The Stock Market Bear slashed back deeply on Friday. Week 1 ended with The Stock Market Bear winning 2-1, a mixed result, and maybe a harbinger of the year as it unfolds.
The Week 1 of 2020 tally YTD is:
The Stock Market Bull: 0 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 1 week
Tesla(PBR142) delivers 19,450 Model S/X and 92,550 Model 3, a record 112,000 vehicles in 4Q19, delivered record 367,500 vehicles in 2019, 50% more than in 2018. $TSLA PR link.
Anixter(PBR356) to consider WESCO(PBR365) latest acquisition offer of $97.00/share cash & stock. $AXE PR link.
Avon Products(PBR490) $3.7 billion acquisition by Brazil based Natura &Co (B3: NATU3) is completed, now a subsidiary. $AVP PR link.
Amerco(PBR631)’s U-Haul unit to implement a nicotine-free hiring policy in 21 states on 02/01/20, Team Members hired prior to that date will not be impacted by the policy. $UHAL PR link.
Charles River Labs(PBR856) completes $25.70/share, around $380 million cash acquisition of human-derived cellular products for the cell therapy market producer HemaCare(OTCMKTS: HEMA). $CRL PR link.
Universal Corp(PBR860) completes acquisition of Yakima Valley, WA based 200 employees FruitSmart, an independent specialty fruit and vegetable ingredient processor serving global markets, terms not disclosed. $UVV PR link.
Kaman Corp(PBR911) completes $330 million cash acquisition of design, development, and manufacturing of precision springs, seals, and contacts with $95 million in 2019 revenues Bal Seal. $KAMN PR link.
The US Federal Open Market Committee releases the minutes of its 12/10-11/19 meeting. “Participants generally expected sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes.” FOMC PR link.
The US Dept of Commerce/Census says the US Preliminary November 2019 Construction Spending Annual Rate-Residential is at $543.1 billion, Non-Residential $781.1, Total Construction Spending $1,324.1 billion, +0.6% from October 2019, +4.2% from November 2018. USDOC PR link.
The Institute for Supply Management says the US December 2019 Manufacturing PMI Index(<50% = contracting) is at 47.2%, November 2019 was at 48.1%, October 2019 48.3%, December 2018 54.1%. “Overall, inputs indicate (1) supply chains began to stress in December and (2) companies remained cautious that materials received would be consumed by the end of the fourth quarter. Prices increased for the first time since May 2019, a positive for 2020.” ISM PR link.
***Thursday, January 2
Who uses The PBR1000? Here’s a partial list:
– Institutional Investors
– Do-It-Yourself Investors
– Stock Brokers
– Financial Advisors
– Business Coaches/Consultants
– Sales Professionals
– Social Causes Organizations
Check out the Happy New Year Special 2020 to find out more!
Providing Independent News, Data, and Analysis to Empower Decisionmakers.
Lowe’s(PBR42) to hire 53,000+ full-time, part-time and seasonal associates across its more than 1,700 U.S. stores this spring. $LOW PR link.
Duke Energy(PBR114) reaches settlement with N Carolina to to excavate seven of the nine remaining coal ash basins in N Carolina, with ash moved to on-site lined landfills, estimated total cost to permanently close all ash basins in N Carolina and S Carolina is now around $8 to $9 billion, of which around $2.4 billion has been spent through 2019. $DUK PR link.
Alcoa(PBR234) to sell its 1,300-acre hazardous waste treatment business in Gum Springs, AR, to Veolia ES Technical Solutions for around $250 million, to close in 1Q20. $AA PR link.
Uber(PBR272) completes $3.1 billion acquisition of internet ride-sharing platform for the greater Middle East region Careem, is now a wholly-owned subsidiary of Uber. $UBER PR link.
Anixter(PBR356) board unanimously accepts revised $93.50/share $4.3 billion cash including net debt acquisition by Clayton, Dubilier & Rice, says proposal is superior to WESCO(PBR365) bid, to close by 09/30/20. $AXE PR link.
American Tower(PBR394) completes $1.85 billion acquisition of Eaton Towers Holding Ltd, which owns/operates approximately 5,500 communications sites across five African markets, to also acquire MTN Group’s minority stakes in each of the Company’s joint ventures in Ghana and Uganda for around $523 million. $AMT PR link.
Newmont Goldcorp(PBR402) completes the $800 million cash sale of its 50% stake in Kalgoorlie Consolidated Gold Mines (KCGM) to Australia’s Northern Star Resources Limited (ASX: NST). $NEM PR link.
Universal Forest Products(PBR565) completes name change to UFP Industries, Inc. $UFPI PR link.
Triumph Group(PBR679) completes sale of its Nashville, TN based around $125 million in revenues for year ending 03/31/19 assembly operations to an affiliate of TECT Aerospace, a manufacturer of complex aerostructure components, parts and assemblies, terms not disclosed. $TGI PR link.
Illumina(PBR686) $8.00/share, around $1.2 billion proposed acquisition of Single Molecule, Real-Time (SMRT®) genome technology developer Pacific Biosciences (NASDAQ:PACB) has been terminated by mutual agreement because of uncertainty and time of lengthy regulatory approvals. $ILMN PR link.
The Carlyle Group(PBR827) completes conversion from a publicly traded partnership to a corporation. $CG PR link.
Curtiss-Wright(PBR830) completes $132 million in cash acquisition of 901D Holdings, a designer and manufacturer of mission-critical integrated electronic systems, subsystems and ruggedized shipboard enclosure solutions supporting every major US Navy shipbuilding program. $CW PR link.
CIT Group(PBR850) completes $1 billion cash & stock acquisition of $6.8 billion in deposits, $4.5 billion of which are HOA deposits from more than 31,000 community associations nationwide, Mutual of Omaha Bank. $CIT PR link.
WW(PBR960) retains the #1 spot by US News & World Report for both “Best Diet for Weight Loss” and “Best Commercial Diet” for a tenth consecutive year. $WW PR link.
The IHS Markit US December 2019 Manufacturing PMI Index is at 52.4, November 2019 was at 52.6, October 2019 51.3, December 2018 53.8. “December data pointed to a further recovery in operating conditions across the U.S. manufacturing sector. The sustained improvement was supported by a solid rise in new business and a further upturn in production. Output expectations remained historically muted, however.” IHS Markit PR link.
***Wednesday, January 1
***Happy New Year 2020!
***US Stock Exchanges Closed.
***Tuesday, December 31
The PBRMarketTools US Stock Exchanges Recap for December 2019 ending 12/31/19:
DJIA ends December and 2019 at 28,538.44, -0.37% from last Friday, +1.74% MTD, +6.02% QTD, +22.34% YTD, -0.37% from record 28,645.26 set 12/27/19.
NASDAQ ends December and 2019 at 8,972.60, -0.38% from last Friday, +3.54% MTD, +12.17% QTD, +35.23% YTD, -0.55% from record 9,022.39 set 12/26/19.
SPX ends December and 2019 at 3,230.78, -0.29% from last Friday, +2.86% MTD, +8.53% QTD, +28.88% YTD, -0.29% from record 3,240.02 set 12/27/19.
The December 2019 tally YTD is:
The Stock Market Bull: 10 months
The Stock Market Bear: 2 months
Mixed Results: 0 months
Check out the BLOG page for the previous RECAPS and SNAPSHOTS posts.
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PBRMarketTools.com provides news, data, and analysis on 1,000 of the largest publicly held companies with primary operations in the US. The data and analysis is included in The PBR1000 Monthly Snapshots, an MS-Excel workbook with 15 snapshot worksheets, 28 rankings, and over 200 fields of data and information on each company. Click here to find out more!
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