The PBR1000 Experiences Some Confusion In May 2019
International relations and actions from US/China trade to Brexit created some big question marks about how The PBR1000 and all businesses should proceed.
By Larry C. Paxton
The Month of May News Summary: Markets continued to show strong reactions to the ups and downs of the US/China trade negotiations, which at month end seemed to be at an impasse. This has been compounded by President Trump announcing in the last week a 5% tariffs on all Mexican goods, to grow by 5% per month until a maximum of 25%, as an incentive for Mexico to stop and contain the flow of illegal immigrants from Central America into the US. Another factor is the failure of the UK to make a Brexit deal, which has resulted in the step down of the prime minister and forcing new elections. The US economy continues to show growth by most measures, but at a slowing pace, but consumers continue to feel optimistic about the future. US politics are stirring up more noise and controversy as the 2020 US elections are starting to take stage, sparked by President Trump’s non-traditional way of governing and managing the Executive Branch. The Mueller Report on possible Russian collusion has created more controversy. The uncertainties got a big hug from The Stock Market Bear who knocked The Stock Market Bull into near unconsciousness as stock prices backtracked to the end of January levels. The Stock Market Bear easily takes the month, the 4th 3-0 week in a row, and gets his first monthly win of 2019.
Here are The PBR1000 corporate, stock market, and economic related breaking news items of interest with hotlinks to the sources for May 2019, starting with the last active business day:
***Friday, May 31:
The PBRMarketTools US Stock Exchanges Recap for the End of May and Week 22 of 2019 ending 05/31/19:
DJIA ends month and week at 24,815.04, -3.01% from last Friday, -6.69% MTD, -4.30% QTD, +6.38% YTD, -7.50% from record 26,828.39 set 10/03/18.
NASDAQ ends month and week at 7,453.15, -2.41% from last Friday, -7.93% MTD, -3.57% QTD, +12.33% YTD, -8.71% from record 8,164.00 set 05/03/19.
SPX ends month and week at 2,752.06, -2.62% from last Friday, -6.58% MTD, -2.91% QTD, +9.78% YTD, -6.58% from record 2,945.83 set 04/30/19.
The Week 22 YTD tally is:
The Stock Market Bull: 10 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 6 weeks
The Month 5 YTD tally is:
The Stock Market Bull: 4 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
PVH(PBR314) completes $88 million acquisition of its longtime Australian partner Gazal Corporation it does not already own, gives PVH full control of its brands in Australia, did around $185 million in sales in 2018. $PVH PR link.
The US Dept of Commerce/BEA says US Preliminary April 2019 Personal Income Annual Rate is at $18.099 trillion, +0.5% from March 2019, +3.9% from April 2018. USDOC PR link.
The Federal Reserve Bank of Chicago says the 7th District Preliminary April 2019 Midwest Economy Index is at -0.04, March 2019 was at +0.21, February 2019 +0.29, April 2018 +0.49. ChiFed PR link.
The MNI May 2019 Chicago Business Barometer(>50 is Gaining) is at 54.2, April 2019 was at 52.6, March 2019 58.7, May 2018 62.7. MNI PR link.
The U of Michigan US Final May 2019 Consumer Sentiment Index is at 100.0, April 2019 was at 97.2, March 2019 98.4, May 2018 98.0. UMichigan PR link.
***Thursday, May 30:
General Motors(PBR13) to invest $24 million to expand its Fort Wayne Assembly plant in Indiana to further increase production of the all-new full size Chevrolet Silverado 1500 and GMC Sierra 1500 pickups – especially crew cab models, has invested over $1.2 billion in plant since 2015. $GM PR link.
FedEx(PBR46) Ground delivers 7 days/week during the holiday peak season, beginning in 01/20 will continue year-round for the majority of the US population. $FDX PR link.
Icahn Enterprises(PBR288 $IEP)‘s Carl Icahn sues Occidental(PBR158) over ‘hugely overpriced’ Anadarko(PBR233) deal, looking to replace Board, has a 5% stake in OXY. MarketWatch PR link.
Fifth Third Bancorp(PBR373) files application with the Office of the Comptroller of the Currency to convert from an Ohio state-chartered bank to a national bank. $FITB PR link.
American Tower(PBR394) to acquire Eaton Towers Holding Ltd, which owns/operates approximately 5,500 communications sites across five African markets, for $1.85 billion, includes Eaton debt, to close by 12/31/19. $AMT PR link.
The US Dept of Commerce/BEA says the US 2nd Estimate for the 1Q19 Gross Domestic Product is revised from 3.2% to 3.1%, $21.049 trillion, +0.9% from 4Q18, +5.0% from 1Q18. USDOC PR link.
The US Dept of Labor says the US Initial Unemployment Claims 4 Week Average for Week Ending 05/25/19 is at 216,750, +5.2% from 04/20/19, -2.5% from 05/26/18; the Total Insured Unemployment 4 Week Moving Average Ending 05/18/19 is at 1,672,500, -0.9% from 04/13/19, -4.1% from 05/19/18; Insured Unemployment Rate is at 1.2%. USDOL PR link.
The US Energy Information Administrationsays US Crude Oil Stocks for the Week Ending 05/24/19 were at 476.5 Million Barrels, +3.5% from 04/19/19, +9.7% from 05/25/18. EIA PR link.
FreddieMac(PBR39) says the US Average 30 Year Fixed Home Mortgage Rate on 05/30/19was at 3.99% with 0.5 points/fees, 04/25/19 was at 4.20%, 03/28/19 4.06%, 05/31/19 4.56%. $FMCC PR link.
***Wednesday, May 29:
DowDuPont(PBR34) says it expects non-cash impairment charges primarily related to goodwill of $800 million to $1.3 billion for quarter ending 06/30/19 due to recent separations of its business units. $DWDP PR link.
Devon Energy(PBR285) to sell its Canadian business to Canadian Natural Resources Limited for $2.8 billion, to close by end of 2Q19. $DVN PR link.
Frontier Communications(PBR343) to sell its 350,000 residential and commercial customers $619 million in revenues operations and all associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital, LLC in partnership with Searchlight Capital Partners for $1.352 billion cash. $FTR PR link.
Blackstone(PBR423) is selling 40 million of its nearly 180 million shares of its 34.3% stake in Invitation Homes(NYSE: INVH) for around $1 billion, will retain 26.7% stake after sale. $BX PR link.
AMC Entertainment(PBR494) now has more that 20 million households with the AMC Stubsprogram, a 700% increase since its relaunch in the summer of 2016. $AMC PR link.
Abercrombie & Fitch(PBR665) has closed 2 flagship stores, to close New York City, NY, Milan, Italy, and Fukuoka, Japan locations by 1Q20, remains on track to deliver approximately 85 new experiences through new stores, remodels and right-sizes this year. $ANF PR link.
Regis Corp(PBR985) gets agreement for the sale and conversion of an additional 190 company-owned salons to its asset-light franchise portfolio substantially located in the state of Ohio and surrounding areas to the Super C Group. $RGS PR link.
The US Federal Reserve Bank of Richmondsays the 5th District May 2019 Manufacturing Index(Annualized) is at +5%, April 2019 was at +3%, March 2019 +10%, May 2018 +17%. “Firms reported growth in spending and positive overall business conditions and remained optimistic about growth in the coming months.” RichmondFed PR link.
The US Federal Reserve Bank of Richmondsays the 5th District May 2019 Service Sector Revenue Index(Annualized) is at +1%, April 2019 was at +26%, March 2019 +5%, May 2018 +16%. “… service sector activity softened in May… However, respondents were optimistic that growth would improve in the next six months.” RichmondFed PR link.
***Tuesday, May 28:
Wynn Resorts(PBR429) issues statement on Massachusetts Gaming Board decision that it remains suitable by clear and convincing evidence, disagrees with decision that President/CEO Matt Maddox violated company policy, but will not appeal and has paid personal and company fines imposed to avoid delays of the 5 star Encore Boston Harbor gaming resorts opening on 06/23/19. $WYNN PR link.
AMD(PBR440) announces 3rd Gen AMD Ryzen desktop processor, unveils RDNA, the next foundational gaming architecture designed to drive the future of PC gaming, console, and cloud. $AMD PR link.
Hub Group(PBR643) authorizes up to $100 million share repurchase program. $HUBG PR link.
Global Payments(PBR680) and TSYS(PBR607) to combine in an all-stock merger of equals for equity value of around $21.5 billion, will be named Global Payments, to close in 4Q19. $GPN PR link.
Meredith Corp(PBR836) sells intellectual property rights of Sports Illustrated to Authentic Brands Group for $110 million, has 120 million consumers reach, Meredith will pay ABG a licensing fee to operate the Sports Illustrated print magazine and SI.com for a minimum of two years. $MDP PR link.
SeaWorld(PBR981) to purchase approximately 5.6 million shares from an affiliate of Pacific Alliance Group; Hill Path Capital to purchase approximately 13.2 million shares from PAG and increases equity stake to approximately 34.5%. $SEAS PR link.
Avis Budget(PBR329) President/CEO Larry De Shon to step down, will remain until successor appointed, will continue to be employed until 12/31/19. $CAR PR link.
The Conference Board says the US Preliminary May 2019 Consumer Confidence Index is at 134.1, April 2019 was at 129.2, March 2019 124.2, May 2018 128.8. “… Consumers expect the economy to continue growing at a solid pace in the short-term, and despite weak retail sales in April, these high levels of confidence suggest no significant pullback in consumer spending in the months ahead.” TCB PR link.
The S&P/CoreLogic/Case-Shiller US Preliminary March 2019 National Home Price Index(01/2000=100) is at 206.23, February 2019 was at 204.90, January 2019 204.57, March 2018 198.83. Case-Shiller PR link.
***Monday, May 27:
***US Memorial Day.
***Remembering Those Who Died In Battle
So That Our Freedoms
Can Continue To Live.
***US Stock Exchanges Closed.
***Friday, May 24:
The PBRMarketTools US Stock Exchanges Recap for Week 21 of 2019 ending 05/24/19:
DJIA ends week at 25,585.69, -0.69% from last Friday, -3.79% MTD, -1.32% QTD, +9.68% YTD, -4.63% from record 26,828.39 set 10/03/18.
NASDAQ ends week at 7,637.01, -2.29% from last Friday, -5.66% MTD, -1.19% QTD, +15.10% YTD, -6.46% from record 8,164.00 set 05/03/19.
SPX ends week at 2,826.06, -1.17% from last Friday, -4.07% MTD, -0.29% QTD, +12.73% YTD, -4.07% from record 2,945.83 set 04/30/19.
The Week 21 News Summary: The concern over US/China trade continues and currently there is no resolution or end in sight. The US is rattling its saber as it deploys Navy ships near Iran and suggests it might be sending troops to the region in response to Iran’s nuclear program and involvement in terrorism. UK Prime Minister May finally gives in and resigns over her inability to get a Brexit deal. The US economy is starting to show more signs of a growth slowdown. The FOMC minutes from its latest meeting indicate a wait and see attitude towards short term federal funds interest rates. The tech and energy sectors took some heavy hits during the week with Qualcomm getting slammed with an antitrust judgment which it will appeal. Corporate earnings were mixed, with retail chains continuing to struggle as they adapt to an eCommerce world. The Stock Market Bear easily wins Week 21 3-0, its third straight weekly win, taking 3 out of 5 days. The Stock Market Bull seems a little bit dazed, confused, and uncertain, even though it maintains a strong lead year-to-date.
The Week 21 YTD tally is:
The Stock Market Bull: 10 weeks
The Stock Market Bear: 5 weeks
Mixed Results: 6 weeks
The Federal Reserve Board in its March 2019 paper Introducing the Distributional Financial Accounts of the United States says on page 26, “In 2018, the top 10% of U.S. households controlled 70 percent of total household wealth, up from 60 percent in 1989. The share of the top 1% of the wealth distribution increased from 23 percent to nearly 32 percent from 1989 to 2018.” USFed PR link.
***Thursday, May 23:
DowDuPont(PBR34) to do 1:3 reverse stock split on 06/01/19, is intended to increase the market price of DowDuPont’s common stock in connection with the company’s intended distribution of all of the shares of common stock of its wholly owned subsidiary, Corteva, Inc, will change name to DuPont de Nemours, Inc., start trading on 06/03/19 as NYSE: DD. $DWDP PR link.
Facebook(PBR55) releases 3rd Community Standards Update, says 5% of monthly accounts are fake, disabled 1.2 billion accounts in 4Q18, 2.19 billion in 1Q19. $FB PR link.
Hartford Financial(PBR157) completes $70/share, $2.2 billion cash acquisition of Stamford, CT, based 30 locations 820 employees globally The Navigators Group(NASDAQ:NAVG), a global specialty underwriter. $HIG PR link.
Freeport-McMoRan(PBR162) to sell its cobalt refinery in Kokkola, Finland and related cobalt cathode precursor business to Umicore for around $150 million, to close by end of 4Q19. $FCX PR link.
VF Corp(PBR254) completes spinoff of independent public company Kontoor Brands, will hold VF’s Jeans(Wrangler® and Lee® brands) and VF Outlet businesses in the denim category, trading as NYSE: KTB. $VFC PR link.
YUM!(PBR482)’s Taco Bell unit gets franchise partner Burman Hospitality Private Limited (BHPL) of India to sign Master Franchise Agreement, commits to developing 600 restaurants on the sub-continent in the next 10 years, to employ around 20,000. $YUM PR link.
Mattel(PBR554) extends global licensing agreement with Warner Bros. Consumer Products, will continue to be the toy licensee for DC in the girls, preschool, vehicles, games and novelty toy categories, includes new content for “DC Super Hero Girls.” $MAT PR link.
Dentsply Sirona(PBR601) to move its principal executive offices from York, PA, to Charlotte, NC, builds on reorganization plan to centralize its sales and service infrastructure in Charlotte. $XRAY PR link.
Penn Natl Gaming(PBR678) completes around $300 million cash acquisition of downtown Detroit, MI, operations of Greektown Casino-Hotel, enters into a triple net lease agreement with VICI Properties(NYSE: VICI) with an initial annual rent of approximately $55.6 million and an initial term of 15 years. $PENN PR link.
Navient(PBR963) elects Linda Mills as Chairman, effective 06/06/19 at the annual meeting, to succeed Bill Diefenderfer III who did not stand for re-election to the Board. $NAVI PR link.
The US Dept of Commerce/HUD says US Preliminary April 2019 New Family Home Sales Annual Rate is at 673,000 units, -6.9% from March 2019, +7.0% from April 2018; the April 2019 Median New Home Price is at $342,200, +11.9% from March 2019, +8.8% from April 2018. USDOC PR link.
***Wednesday, May 22:
UPS(PBR40) to purchase 170 million gallon equivalents of renewable natural gas (RNG) through 2026 from Clean Energy Fuels Corp(NASDAQ: CLNE), is the largest commitment for use of RNG to date by any company in the US. $UPS PR link.
Eli Lilly(PBR115)’s Insulin Lispro Injection is now available for a 50% lower list price than its identical medicine, Humalog® U-100. $LLY PR link.
Qualcomm(PBR130 $QCOM) unlawfully suppressed competition in the market for cellphone chips and used its dominant position to exact excessive licensing fees, a US District Court judge ruled in a decision that could challenge the company’s business model and shake up the smartphone industry. In a separate announcement Qualcomm said it will appeal the decision. MarketWatch PR link.
Tesla(PBR139 $TSLA)‘s recent lane changing feature on Navigate on Autopilot update critiqued by Consumer Reports, says it cut off cars without leaving enough space and even passed other cars in ways that violate state laws. Consumer Reports PR link.
MGM Resorts(PBR255 $MGM) breaks off talks to buy Wynn Resorts(PBR429) $2.6 billion Encore Boston casino, only allowed one casino in state of Massachussets, Wynn to complete construction and operate the facility. MarketWatch PR link.
Sempra Energy(PBR258) in final stages of agreement with largest oil & gas company in the world, Saudi Aramco, for 20-year liquefied natural gas (LNG) sale-and-purchase agreement for 5 million tonnes per annum from its Phase 1 Port Arthur, TX, LNG export project. $SRE PR link.
Avon Products(PBR486) to be acquired by Brazil based Natura &Co (B3: NATU3) for an enterprise value of about $3.7 billion, will create a beauty products company with 40,000+ associates in 100 countries and $10 billion in annual sales, to close in early 2020. $AVP PR link.
The Federal Open Market Committee releases the Minutes for the 04/30-05/01/19 meeting. “… The projection for U.S. economic activity … was revised up on net. Real GDP growth was forecast to slow in the near term from its solid first-quarter pace, as sizable contributions from inventory investment and net exports were not expected to persist. The projection for real GDP growth over the medium term was revised up, primarily reflecting a lower assumed path for interest rates, a slightly higher trajectory for equity prices, and somewhat less appreciation of the broad real dollar….” FOMC PR link.
***Tuesday, May 21:
Alphabet(PBR15)’s Google unit has suspended business with China based Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing per US directive blacklisting Huawei. $GOOG PR link.
Kroger(PBR20) announces an exclusive grocery retail partnership agreement in the US with TerraCycle‘s circular e-commerce platform Loop, advancing Kroger’s zero-waste vision by reducing single-use plastics in the environment. $KR PR link.
Merck(PBR70) to acquire privately held cancer therapies developer Peloton Therapeutics for upfront payment of $1.05 billion plus up to $1.15 billion for milestone achievements, to close in 3Q19. $MRK PR link.
Tesla(PBR139 $TSLA) cuts Model S price by $3,000, now starts at $71,250, Model X price by $2,000, starts at $71,950, decreases offset price increases from a month ago when Tesla offered longer battery range and added a new drive system and suspension; Model 3 price was raised by $400 last week, now starts at $35,400.MarketWatch PR link.
Tesla(PBR139) CEO Elon Musk exercises option, acquires 175,000 common shares at $31.17/share, now has 34.1+ million common shares, 5.1 million from derivatives. $TSLA PR link.
Kohl’s(PBR154) announces a new collaboration with globally-renowned designer Jason Wu to create an exclusive, limited-edition women’s apparel capsule at Kohl’s stores and Kohls.com this holiday season, to be available in 11/19. $KSS PR link.
Arthur J Gallagher(PBR445) has acquired Parsippany, NJ-based RPA Insurance Services and Innovative Coverage Concepts, provides insurance and risk management services to the Restaurant and Hospitality industry, terms not disclosed. $AJG PR link.
Brunswick(PBR513) completes acquisition of 20,000+ members, nearly 2,200 boat fleet, 170 locations in the US, Canada and Europe Freedom Boat Club, terms not disclosed. $BC PR link.
Urban Outfitters(PBR626) to launch during summer 2019 Nuuly, a women’s apparel, monthly subscription rental service of its own brands, third party labels and one-of-a-kind vintage pieces, $88/month for one 6 item box valued at around $800 retail, includes option to buy. $URBN PR link.
Crane(PBR741) presents unsolicited proposal to acquire Circor International(NYSE: CIR) for $45.00/share cash, a 47% premium over the closing price on 05/20/19, an enterprise value of about $1.7 billion; previous offer presented on 04/30/19 had been rejected. $CR PR link.
Express(PBR861) hires Tim Baxter as CEO, effective 06/17/19, will succeed Interim CEO Matthew Moellering who will remain EVP/COO. $EXPR PR link.
The Natl Assn of Realtors says US Preliminary April 2019 Existing Home Sales Annual Rate is at 5,190,000 homes, -0.4% from March 2019, -4.4% from April 2018; the April 2019 Median Sales Price was at $267,300, +3.0% from March 2019, +3.6% from April 2018; April 2019 Median Time on Market was 24 days, March 2019 was 36 days, April 2018 26 days. NAR PR link.
***Monday, May 20:
Ford(PBR12 $F) to eliminate around 7,000 global salaried positions, about 10% of its workforce, by 08/31/19 as part of its Smart Redesign program. Automotive News PR link.
TMobile(PBR68) and Sprint(PBR85) agree to concessions, $59 billion all stock merger gets letter of approval from US Federal Communications Commission Chairman Ajit Pai, additional regulatory approvals needed to close transaction. $TMUS PR link.
Arconic(PBR222) authorizes an additional $500 billion for its $1 billion share repurchase program, has completed a $700 million accelerated share repurchase in April 2019, authorized a $200 million accelerated share repurchase on 05/02/19, balance available is now $600 million. $ARNC PR link.
DISH(PBR227) to acquire Echostar(PBR890)’s Broadcast Satellite Service (BSS) Businessfor 22.9 million DISH shares, around $800 million, to close in 2H19. $DISH PR link.
Ascena Retail(PBR436) to commence a wind down of Dressbarn’s operations. $ASNA PR link.
Tetra Tech(PBR712) to acquire UK-based 30 locations globally 1,600 employees consulting and engineering firm focused on water, environment and infrastructure services WYG plc(LSE: WYG) for 55 pence/share. $TTEK PR link.
Varian Medical(PBR716) to acquire privately held $43.5 million in revenues in FY19 university-level, comprehensive treatment for cancer patients provider Cancer Treatment Services International for $283 million, to close in around 2 weeks. $VAR PR link.
Marvell Technology(PBR809) to acquire Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GLOBALFOUNDRIES, for $650 million plus up to an additional $90 million for milestone achievements. $MRVL PR link.
Legg Mason(PBR688) increases Board from 10 to 12 members, appoints activist investor firm Trian Fund co-founders Nelson Peltz and Ed Garden to the Board, will add another director at annual meeting, Trian currently has a 4.5% stake in the company. $LM PR link.
The Federal Reserve Bank of Chicago says the US Preliminary April 2019 National Activity Index is at -0.45, March 2019 was at +0.05, February 2019 -0.57, April 2018 +0.42. ChiFed PR link.
***Friday, May 17:
The PBRMarketTools US Stock Exchanges Recap for Week 20 of 2019 ending 05/17/19:
DJIA ends week at 25,764.00, -0.69% from last Friday, -3.12% MTD, -0.64% QTD, +10.44% YTD, -3.97% from record 26,828.39 set 10/03/18.
NASDAQ ends week at 7,816.28, -1.27% from last Friday, -3.45% MTD, +1.13% QTD, +17.80% YTD, -4.26% from record 8,164.00 set 05/03/19.
SPX ends week at 2,859.53, -0.76% from last Friday, -2.93% MTD, +0.89% QTD, +14.07% YTD, -2.93% from record 2,945.83 set 04/30/19.
The Week 20 News Summary: As in past weeks US/China trade negotiations continue to draw the most attention, new tariffs have gone into effect, and it is difficult to ascertain when issues will be resolved and how long the tariffs will be in effect. Economic news was mostly good. Corporate earnings were mostly positive. The Stock Market Bear viciously took a huge chunk out of the markets on Monday, but The Stock Market Bull arrived and nearly retook the lead after 3 days. The Stock Market Bear returned on Friday, took Week 20 with a 3-0 record and his second week in a row outright victory.
The Week 20 YTD tally is:
The Stock Market Bull: 10 weeks
The Stock Market Bear: 4 weeks
Mixed Results: 6 weeks
Amazon(PBR5 $AMZN) is lead investor in $575 million funding round for UK delivery service Deliveroo. Deliveroo PR link.
Hewlett Packard Enterprises(PBR96) to acquire acquire Cray(NASDAQ: CRAY) for $35.00 per share in cash, around $1.3 billion, net of cash, to close by 01/31/20. $HPE PR link.
Tesla(PBR139 $TSLA) gets notice by the Natl Transportation Safety Board saying that in the Tesla Model 3 fatal accident with a semi-trailer on 03/01/19 in Florida the autopilot system was operating for 10 seconds before the crash. Transport Topics PR link.
Tesla(PBR139) completes $218 million acquisition of developer and manufacturer of ultracapacitors applied to the manufacturing of batteries Maxwell Technologies(NASDAQ: MXWL). $TSLA PR link.
Live Nation(PBR279) has acquired Los Angeles, CA-based venue operator and 1,200+ concerts/year promoter Spaceland Presents, terms not disclosed. $LYV PR link.
Brunswick(PBR513) to acquire 20,000+ members, nearly 2,200 boat fleet, 170 locations in the US, Canada and Europe Freedom Boat Club, to close in 2Q19, terms not disclosed. $BC PR link.
The Conference Board says the US Preliminary April 2019 Leading Economic Index(2016=100) is at 112.1, March 2019 was at 111.9, February 111.6. “Third Consecutive Increase; Economic Expansion to Continue in Near Term.” TCB PR link.
The U of Michigan Preliminary May 2019 Consumer Sentiment Index is at 102.4, April 2019 was at 97.2, March 2019 98.4, May 2018 98.0. “Consumers viewed prospects for the overall economy much more favorably, with the economic outlook for the near and longer term reaching their highest levels since 2004. The gains were recorded mostly before the trade negotiations with China collapsed and China responded with their own tariffs.” UMichigan PR link.
***Thursday, May 16:
Microsoft(PBR25) and Sony Corporationagree to partner on new innovations to enhance customer experiences in their direct-to-consumer entertainment platforms and AI solutions. $MSFT PR link.
Goldman Sachs(PBR82) to acquire $25 billion of assets under management and over 220 financial advisors serving 22,000 clients in over 90 offices across the US United Capital Financial Partners for $750 million in cash, to close in 3Q19. $GS PR link.
PG&E(PBR176) issues statement saying CAL FIRE has determined that PG&E electrical transmission lines near Pulga were a cause of the Camp Fire, accepts this determination, will continue to cooperate with all agencies involved. $PCG PR link.
Ingersoll-Rand(PBR196) completes $1.45 billion acquisition of $400 million in revenues in 2018, 1,000 employees, 7 global manufacturing locations, fluid management systems with world class brands including Milton Roy®, LMI®, Haskel®, BuTech®, Dosatron®, YZ Systems®, Williams® and Hartell® provider Precision Flow Systems from funds advised by BC Partners Advisors L.P. and The Carlyle Group(PBR616). $IR PR link.
MGM Resorts(PBR254) in 1Q19 report says it expects to be liable for up to $800 million for the 10/01/17 mass shooting at the Mandalay Bay in Las Vegas, $751 million to be covered by insurance. $MGM PR link.
PulteGroup(PBR336) adds $500 million to share repurchase program, balance available is now $762 million. $PHM PR link.
Colfax(PBR668) to sell its Air and Gas Handling business to KPS Capital Partners for an enterprise value of $1.80 billion, to close in 2H19. $CFX PR link.
Chico’s FAS(PBR830) Board unanimously rejects unsolicited proposal to be acquired by Sycamore Partners for $3.50/share, says proposal substantially undervalues Chico’s FAS. $CHS PR link.
Fred’s(PBR907) to close 104 underperforming stores in the Southeast US, liquidation sales to start today, closures to by completed by 06/30/19. $FRED PR link.
Fluor(PBR155) names Interim CEO Carlos Hernandez as CEO and appoints him to the Board. $FLR PR link.
The US Dept of Commerce/HUD says US Preliminary April 2019 New Residential Construction Private Housing Building Permits Issued Annual Rate was at 1,296,000, +0.6% from March 2019, -5.0% from April 2018. USDOC PR link.
The Federal Reserve Bank of Philadelphiasays the 3rd District May 2019 Manufacturing General Activity Index is at +16.6, April 2019 was at +8.5, March 2019 +13.7, May 2018 +32.3. “Responses … suggest continued growth for the region’s manufacturing sector… The firms continued to be cautiously optimistic about growth over the next six months.” PhillyFed PR link.
***Wednesday, May 15:
Amazon(PBR5 $AMZN) breaks ground on $1.5 billion air services hub at the Cincinnati/Northern Kentucky International Airport, to open by 2021, employ 2,000. Cincinnati Business Courier PR link.
Bank of America(PBR24) raises minimum hourly wage to $17, to be $20 by 05/21. $BAC PR link.
WellTower(PBR538) completes $1.25 billion acquisition of Class A medical office and outpatient facilities portfolio comprised of 55 buildings from CNL Healthcare Properties. $WELL PR link.
The US Federal Reserve says that US Preliminary April 2019 Total Manufacturing Capacity Utilization is at 77.9%, March 2019 was at 78.5%, February 2019 78.5%, April 2018 78.2%, Growth Over Previous Year is at +2.0%. USFed PR link.
The US Dept of Commerce/Census says US Preliminary March 2019 Manufacturing Saleswere at $509.7 billion, Retail $453.0 billion, Wholesalers $507.4 billion, Total Sales $1.470 trillion, +1.6% from February 2019, +3.7% from March 2018. USDOC PR link.
The US Dept of Commerce/Census says US Advance April 2019 Retail Sales were at $451.9 billion, Food Services & Drinking Places $61.5 billion, Total Retail Sales $513.4 billion, -0.2% from March 2019, +3.1% from April 2018. USDOC PR link.
The Federal Reserve Bank of New York says the Empire State May 2019 Manufacturing General Business Conditions Index is at +17.8, April 2019 was at +10.1, March 2019 +3.7, May 2018 +20.6. NYFed PR link.
The Natl Assn of Home Builders says the US May 2019 Housing Market Composite Index is at 66, April 2019 was at 63, March 2019 62, May 2018 70. NAHB PR link.
***Tuesday, May 14:
Walmart(PBR1) is rolling out a no member fee free NextDay delivery service from its eCommerce site, starting in Phoenix and Las Vegas, then Southern California, to be available to 75% of US population by end of year. $WMT PR link.
Walt Disney(PBR51) will assume full operational control of Hulu in agreement with Comcast(PBR32 $CMCSA), includes option to buy Comcast interest as early as 2024 for minimum equity value of $27.5 billion. $DIS PR link.
NGL Energy(PBR170) to acquire all of the assets of Mesquite Disposals Unlimited for approximately $890 million on a cash-free, debt-free basis and combine them with NGL’s Water Solutions business, to close in 07/19. $NGL PR link.
The US Dept of Labor says US Preliminary April 2019 Import Prices were +0.2%, March 2019 was +0.6%, February 2019 +1.0%, April 2018 +0.5%, Year-To-Year -0.2%; April 2019 Export Prices were +0.2%, March 2019 +0.6%, February 2019 +0.7%, April 2018 +0.5%, Year-To-Year +0.3%. USDOL PR link.
CoreLogic says the US February 2019 Home Mortgages 30 or More Days Delinquent was at 4.0%, January 2019 was 4.0%, December 2018 4.1%, February 2018 4.8%. “The persistently impressive economic expansion continues to drive down housing market distress, with delinquencies and foreclosures hitting near two-decade lows… the future of U.S. housing and mortgage markets look bright even if short term indicators suggest cooling.” CoreLogic PR link.
***Monday, May 13:
Apple(PBR3 $AAPL) can be sued by iPhone owners because Apple Store is a monopolistic retailer for iPhone apps, says the US Supreme Court in a 5-4 opinion. SCOTUS PR link.
Amazon(PBR5) to expand its US Delivery Service Partner program through its current employees, commits to funding startup costs, up to $10,000, and the equivalent of the former employee’s gross salary for three months to start their own delivery business. $AMZN PR link.
Facebook(PBR55) raising minimum wage for contractors from $15/hour to $20/hour in San Francisco Bay area, New York City, Washington DC, and $18/hour in Seattle, to be implemented by mid 2020, content reviewers minimums to be raised up to $22/hour. $FB PR link.
Discovery(PBR287) has acquired 4.8 million readers, 4.8 million digital uniques per month Golf Digest, an official marketing partner of the PGA TOUR since 2006, from Condé Nast, terms not disclosed. $DISCA PR link.
Bristow Group(PBR959) files voluntary Chapter 11 Bankruptcy, obtained $75 million in new financing and receives commitment for an additional $75 million Debtor-In-Possession financing. $BRS PR link.
GoPro(PBR994) moving US bound production from China to Guadalajara, Mexico, in 06/19, non-US production to remain in China. $GPRO PR link.
Bed Bath & Beyond(PBR246) CEO Steve Temares has stepped down and resigned from the Board, Board member Mary Winston appointed Interim CEO, effective immediately, CEO search committee formed. $BBBY PR link.
Lincoln Electric(PBR767) former Chairman/President/CEO John M. Stropki, Jr., passes away, was with company 41 years, was 7th CEO from 2004 to 2012. $LECO PR link.
Avista(PBR958) Chairman/CEO Scott L. Morris to retire, effective 03/01/20, President Dennis P. Vermillion elected CEO effective 10/01/19, Morris to remain Executive Chairman until retirement. $AVA PR link.
The People’s Republic of China increases tariffs up to 25% on $60 billion of US imports. PRC PR link.
***Friday, May 10:
The PBRMarketTools US Stock Exchanges Recap for Week 19 of 2019 ending 05/10/19:
DJIA ends week at 25,942.37, -2.12% from last Friday, -2.45% MTD, +0.05% QTD, +11.21% YTD, -3.30% from record 26,828.39 set 10/03/18.
NASDAQ ends week at 7,916.94, -3.03% from last Friday, -2.20% MTD, +2.43% QTD, +19.32% YTD, -3.03% from record 8,164.00 set 05/03/19.
SPX ends week at 2,881.40, -2.18% from last Friday, -2.19% MTD, +1.66% QTD, +14.94% YTD, -2.19% from record 2,945.83 set 04/30/19.
The Week 19 News Summary: It was another week of political issues affecting the stock markets. The US/China trade negotiations had the primary impact, with China changing some critical verbage. US President Trump responded by imposing the additional tariffs he initially threatened for March 1st. Sanctions on Iran added some more ammunition. Quarterly corporate earnings continued to be mostly mixed. Boeing‘s issues with its 737 MAX had a big impact. The overall US economy continues to be good, but not quite as strong. Job openings were at record levels, the Consumer Price Index indicated that inflation is still low.The Stock Market Bull takes a rest and The Stock Market Bear viciously charges in to get its first 3-0 overwhelming victory since Week 12.
The Week 19 YTD tally is:
The Stock Market Bull: 10 weeks
The Stock Market Bear: 3 weeks
Mixed Results: 6 weeks
Buckeye Partners(PBR623) agrees to be acquired by IFM Investors for $41.50/share cash, valued at $10.3 billion enterprise value and $6.5 billion equity value, to close 4Q19. $BPL PR link.
Chico’s FAS(PBR830) to review an unsolicited proposal to be acquired by Sycamore Partnersfor $3.50/share, had previously rejected a Sycamore Partners proposal for $4.30/share. $CHS PR link.
NuStar(PBR902) to sell its storage terminal facility located at St. Eustatius in the Caribbean to Prostar Capital for approximately $250 million, to close by late 2Q19. $NS PR link.
The US Dept of Treasury says US April 2019 Federal Government Receipts were at $535.5 billion, Outlays $375.2 billion, for a Surplus of $160.3 billion, April 2018 was a Surplus of $214.3 billion; YTD(7 months) Receipts are $2.043 trillion, YTD Outlays $2.574 trillion, for a YTD Deficit of $530.9 billion, April 2018 YTD Deficit was $385.4 billion. USTreasury PR link.
The US Dept of Labor says the US April 2019 Consumer Price Index-All Items was at +0.3%, March 2019 was at +0.4%, February 2019+0.2%, April 2018 +0.2%, Last 12 Months(Unadjusted) is at +2.9%. USDOL PR link.
The US Dept of Labor says US Preliminary April 2019 Current Average Earnings/Hourwere at $27.77, Average Hours Worked/Weekwas at 34.4, Total Average Current Weekly Earnings were at $955.29, -0.1% from March 2019, +2.9% from April 2018. USDOL PR link.
***Thursday, May 9:
The April 2019 Snapshot 13 Summary: The PBR1000 Top 5 Since 12/29/17(16 months) Performers(Rank, Company, PBR1000 Ranking by Revenues, Stock Symbol, 04/30/19 Stock Price, % Increase from 12/29/17):
1. AMD, PBR489, $AMD, $27.63, +169%
2. BlueLinx, PBR900, $BXC, $25.72, +164%
3.Chipotle, PBR536, $CMG, $688.04, +138%
4. Rent-A-Center, PBR755, $RCII, $24.93, +125%
5. Crocs, PBR1000, $CROX, $27.85, +120%
Range: +169% to -97%
Number of Companies at 0% or Better:494/998
Average: +6.20%
Median: -0.44%%
DJIA: +7.58%
NASDAQ: +17.27%
SPX: +10.18%
Tomorrow: The PBRMarketTools US Weekly Stock Exchanges Recap.
Chevron(PBR11) will not make a counterproposal to acquire Anadarko(PBR231), Anadarko required to to pay $1 billion termination fee, Chevron to increase its share repurchase program 25% to $5 billion/year. $CVX PR link.
Synchrony Financial(PBR165) approves up to $4 billion share repurchase program. $SYF PR link.
Anadarko(PBR231) agrees to be acquired by Occidental Petroleum(PBR158) for $76.00/share comprised of $59.00 in cash and 0.2934 shares of Occidental common stock per share of Anadarko(PBR231) common stock, around $38 billion deal, to close 2H19, has paid $1 billion merger termination fee to Chevron(PBR11). $APC PR link.
Boston Scientific(PBR306) to acquire privately-held Superion® Indirect Decompression System developer Vertiflex for $465 million plus additional milestones achieved payments, anticipates $60 million in revenues in 2019, to close late 2Q19. $BSX PR link.
Tractor Supply(PBR369) increases existing share repurchase program by $1.5 billion, balance is around $1.9 billion. $TSCO PR link.
Tapestry(PBR469) authorizes up to $1 billion share repurchase program. $TPR PR link.
Western Union(PBR478) completes sale of its Speedpay US domestic bill pay business to ACI Worldwide for approximately $750 million cash. $WU PR link.
Perrigo(PBR509) to acquire privately-held largest private label oral care company globally with 650 employees and $287 million in revenues in 2018 Ranir Global Holdings in a transaction valued at $750 million, to close in 3Q19. $PRGO PR link.
Party City(PBR808) announces new source of helium contract for next 2 1/2 years, to close 45 of its 870 locations throughout 2019. $PRTY PR link.
Allison Transmission(PBR836) acquires nearly 5 million shares from Ashe Capital Management, authorizes additional $1 billion for its share repurchase program, total authorized now $3 billion. $ALSN PR link.
Edgewell Personal Care(PBR843) to acquire New York, NY-based 900 employees razor products provider Harry’s in a cash/stock transaction, values Harry’s at $1.37 billion, to close by 1Q20 end. $EPC PR link.
Old Republic Intl(PBR465) Chairman/CEO Aldo Zucaro to retire as CEO after 25 years, will remain Chairman, President/COO Craig Smiddy to become President/CEO, effective 10/01/19. $ORI PR link.
Symantec(PBR519) President/CEO and Board member Greg Clark steps down, effective immediately, Board member Rick Hill appointed Interim President/CEO, new CEO search starts. $SYMC PR link.
The US Dept of Labor says US Preliminary April 2019 Producer Price Index Total Monthly Final Demand is +0.2%, March 2019 was +0.6%, February 2019 +0.1%, April 2018+0.1%; April 2019 Last 12 Months Total Demand is at +2.2%, March 2019 was at +2.0%, February 2019 +2.3%, April 2018+2.6%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary March 2019 Wholesale Sales-Durable Goods was at $245.0 billion, Non-Durable Goods $262.4 billion, Total $507.4 billion, +2.3% from February 2019, +3.9% from March 2018. USDOC PR link.
The US Dept of Commerce says US March 2019 Total Exports-Goods were at $141.7 billion, Services $70.3 billion, Total Exports$212.0 billion, March 2019 Total Imports-Goods were at $214.1 billion, Services $47.8 billion, Total Imports $261.9, Total March 2019 Trade Deficit $49.9 billion, March 2019 Total Deficit YTD(3 Months) is at $150.4 billion, March 2018 Total Deficit YTD was at $156.3 billion. USDOC PR link.
***Wednesday, May 8:
The April 2019 Snapshot 12 Summary: The PBR1000 Top 5 YTD(4 months) Performers(Rank, Company, PBR1000 Ranking by Revenues, Stock Symbol, 04/30/19 Stock Price, % Increase from 12/31/18):
1. Diebold Nixdorf, PBR529, $DBD, $10.09, +305%
2. Pier 1 Imports, PBR908, $PIR, $0.91, +194%
3. Sears Holdings, PBR178, $SHLDQ, $0.69, +156%
4. iHeartMedia, PBR439, $IHRGQ, $1.07, +143%
5. FannieMae, PBR21, $FNMA, $2.48, +134%
Range: +305% to -85%
Number of Companies at 0% or Better:874/999
Average: +18.83%
Median: +17.83%
DJIA: +14.00%
NASDAQ: +22.01%
SPX: +17.51%
Tomorrow: The PBR1000 Top 5 Stock Performers since 12/29/17(16 months).
General Motors(PBR13) in discussions with Workhorse Group(NASDAQ: WKHS) and an affiliated, newly formed entity to sell the company’s Lordstown Complex in Lordstown, OH, Workhorse would hold a minority interest in the new entity. $GM PR link.
Fox Corp(PBR299)’s Sports unit and Stars Group to launch FOX Bet, the first-of-its kind national media and sports wagering partnership in the US. $FOX PR link.
United Rentals(PBR360) President/COO Matthew Flannery becomes President/CEO, succeeds CEO Michael Kneeland who is now Chairman of the Board. $URI PR link.
MDU Resources(PBR541) Vice Chairman Dennis W. Johnson becomes Chairman, succeeds Harry J. Pearce who did not stand for re-election to the Board. $MDU PR link.
***Tuesday, May 7:
The April 2019 Snapshot 11 Summary: The PBR1000 Top 5 Month Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 04/30/19 Stock Price, % Increase from 03/29/19):
1. Anadarko, PBR231, $APC, $72.85, +60%
2. Qualcomm, PBR130, $QCOM, $86.13, +51%
3. Frontier Communications, PBR333, $FTR, $2.85, +43%
4. Hovnanian, PBR875, $HOV, $15.22, +39%
5. Sonic Auto, PBR303, $SAH, $20.23, +37%
Range: +60% to -54%
Number of Companies at 0% or Better:718/1,000
Average: +3.99%
Median: +3.64%
DJIA: +2.56%
NASDAQ: +4.74%
SPX: +3.93%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/31/18(4 Months).
Walmart(PBR1) introduces its first online pet pharmacy for prescription medications; to offer a more wholesome assortment of pet foods; and is expanding in-store veterinary clinics. $WMT PR link.
General Motors(PBR13 $GM) driverless car Cruise unit gets $1.5 billion in investments led by T Rowe Price(PBR518), values unit at $19 billion. MarketWatch PR link.
Alphabet(PBR15)’s Waymo unit deploy 10 Waymo vehicles in Phoenix on Lyft over the next few months. $GOOG PR link.
DowDuPont(PBR34) spin-off of Corteva Agriscience as an independent public company to be effective 06/01/19, to begin trading the regular way as NYSE: CTVA on 06/03/19. $DWDP PR link.
Tesla(PBR139) CEO Elon Musk purchased $25 million of Tesla common stock at $243.00/share on 05/02/19 per SEC filing. $TSLA PR link.
Anadarko(PBR231) Board determines revised proposal from Occidental Petroleum(PBR158 $OXY) constitutes a “Superior Proposal” to the Chevron(PBR11 $CVX) Merger Agreement, Chevron can make a counter proposal, Anadarko would pay Chevron a $1 billion termination fee if it cancels the agreement. $APC PR link.
AMD(PBR437) in collaboration with the US Dept of Energy, Oak Ridge National Laboratory and Cray to develop what is expected to be the world’s fastest exascale-class supercomputer, scheduled to be delivered to ORNL in 2021. $AMD PR link.
WABCO(PBR668) sets 06/27/19 for special stockholders meeting to vote on acquisition by privately held global leader in driveline and chassis technologies ZF Friedrichshafen AG for $136.50/share, equity value of $7+ billion. $WBC PR link.
Bristow Group(PBR959) gets notified by the New York Stock Exchange of its noncompliance with continued listing standards because the average closing price of its common stock over a prior 30 consecutive trading day period had fallen below $1.00 per share, has 6 months to get back in compliance. $BRS PR link.
The US Federal Reserve says US Preliminary March 2019 Consumer Credit Outstanding-Revolving was at $1.057 trillion, Non-Revolving$2.995 trillion, Total $4.052 trillion, +0.3% from February 2019, +1.1% YTD(3 months), +4.9% from March 2018. USFed PR link.
The US Dept of Labor says US Preliminary March 2019 Job Openings-Private was at 6,800,000, Government 688,000, Total7,488,000, +4.8% from February 2019, +8.6% from March 2018. USDOL PR link.
FannieMae(PBR21) says the US April 2019 Home Purchase Sentiment Index is at 88.3, March 2019 was at 89.8, February 2019 84.3, April 2018 91.7. “… increasing expectations among consumers that mortgage rates will continue to be favorable for some time will likely gain additional support following last week’s Fed meeting – and may also be reducing their urgency to buy.” $FNMA PR link.
The PurdueU/CME US April 2019 Ag Barometer was at 115, March 2019 was at 133, February 2019 136, April 2018 125. “Weakening perceptions of both current economic conditions and expectations for the future drove the index lower.” PurdueU/CME PR link.
***Monday, May 6:
Kraft Heinz(PBR107) to restate annual financial statements for 2016 and 2017 and quarterly statements through 09/18 per investigation by its audit committee. $KHC PR link.
Occidental Petroleum(PBR158) presents revised proposal to acquire Anadarko(PBR231), $76.00/share comprised of $59.00 in cash and 0.2934 shares of Occidental common stock per share of Anadarko(PBR231) common stock, still around a $38 billion deal with more cash. $OXY PR link.
Occidental Petroleum(PBR158) to sell Anadarko(PBR231)’s Algeria, Ghana, Mozambique and South Africa assets to Total SA(NYSE: TOT) for $8.8 billion contingent upon Occidental completing its acquisition of Anadarko. $OXY PR link.
Ascena Retail(PBR428) completes sale of majority interest in its subsidiary, Maurices Incto an affiliate of OpCapita for $300 million. $ASNA PR link.
Brunswick(PBR534) to sell its Fitness business to private investment firm KPS Capital Partners for around $490 million cash. $BC PR link.
Park Hotels(PBR736) to acquire upper-upscale 20 hotels with an aggregate of 6,288 rooms in eight states and the District of Columbia Chesapeake Lodging Trust(NYSE:CHSP) for $31.00/share, $2.7 billion cash and stock, to close 2H19. $PK PR link.
Sinclair Broadcast(PBR748) to acquire $3.8 billion in 2018 revenues from 74 million subscribers 21 regional sports networks, and Fox College Sports, from Walt Disney(PBR51)at a valuation of $10.6 billion. $SBGI PR link.
Affiliated Managers Group(PBR828)President/CFO Jay Horgen to become President/CEO effective after annual shareholders meeting, current CEO Nathanial Dalton to become Senior Advisor and remain on the Board. $AMG PR link.
US/China Trade: US President Trump tweets he will increase tariffs from 10% to 25% on $200 billion in Chinese produced goods effective Friday, 05/10/19, unless trade negotiations speed up. MarketWatch PR link.
***Friday, May 3:
The PBRMarketTools US Stock Exchanges Recap for Week 18 of 2019 ending 05/03/19:
DJIA ends week at 26,504.95, -0.14% from last Friday, -0.33% MTD, +2.22% QTD, +13.62% YTD, -1.21% from record 26,828.39 set 10/03/18.
NASDAQ ends week at record 8,164.00, +0.22% from last Friday, +0.85% MTD, +5.62% QTD, +23.04% YTD, +0.00% from record 8,164.00 set 05/03/19.
SPX ends week at 2,945.64, +0.20% from last Friday, -0.01% MTD, +3.92% QTD, +17.50% YTD, -0.01% from record 2,945.83 set 04/30/19.
The Week 18 News Summary: It was another week of mixed corporate earnings reports. The Federal Open Market Committee kept the short term federal funds interest rate at 2.25-2.50%, despite some political pressure to lower it. The jobs reports were more robust than anticipated. US/China trade negotiations continued but progress was difficult to ascertain. The Stock Market Bear took advantage of the FOMC report and appeared to have a lock on his first win since Week 12, but with the jobs report, The Stock Market Bull took charge to win Week 18 with his 4th in a row 2-1 mixed result.
The Week 18 YTD tally is:
The Stock Market Bull: 10 weeks
The Stock Market Bear: 2 weeks
Mixed Results: 6 weeks
ExxonMobil(PBR2) gets Guyana government and regulatory approvals for Liza Phase 2, remains on track for mid-2022, producing up to 220,000 barrels of oil per day, Liza 1 on track to achieve first oil by 1Q20, will produce up to 120,000 barrels of oil per day at peak rates, Exxon is 45% partner in project, Hess(PBR482)30%. $XOM PR link.
Marriott Intl(PBR146) President/CEO Arne Sorenson diagnosed with stage 2 pancreatic cancer, to start chemotheraphy treatments next week, anticipates surgery by year end, will remain in his role during treatments. $MAR PR link.
The US Dept of Labor says US April 2019 Total Civilian Force Employed is at 156,645,000, -103,000 from March 2019, +1,429,000 from April 2018, Unemployed at 5,825,000, -387,000 from March 2019, -510,000 from April 2018, Unemployment Rate is at 3.6%, was 3.9% in April 2018. USDOL PR link.
The Institute for Supply Management says the US April 2019 Non-Manufacturing Index(>50%=Economy Growing) is at 55.5%, March 2019 was at 56.1%, February 2019 59.7%, April 2018 57.2%. “… The non-manufacturing sector has experienced an uptick in business activity, but in general, there has been a leveling off. Respondents are still mostly optimistic about overall business conditions, but concerns remain about employment resources.” ISM PR link.
IHS Markit says the US April 2019 Composite PMI Output Index is at 53.0, March 2019 was at 54.6, February 2019 55.5, April 2018 54.9. “… business optimism about the year ahead has slumped to its lowest since mid-2016, reflecting widespread reports from companies that weaker economic growth will likely further dampen business activity in coming months.” IHS Markit PR link.
***Thursday, May 2:
ExxonMobil(PBR2) to proceed with a $2 billion investment to expand its Baytown, TX chemical plant, will create approximately 2,000 jobs during construction and contribute to the approximate 15 percent return the company expects from its chemical investments. $XOM PR link.
McKesson(PBR7) in settlement agreement to pay $14.5 million to the State of West Virginiathis year and an additional $4.5 million per year for the next five years with the funds to be used in support of state initiatives to combat the opioid epidemic, including rehabilitation, job training, mental health and other important efforts. $MCK PR link.
3M(PBR89) to acquire global medical technology company focused on advanced wound care and specialty surgical applications marketed under the KCI brand $1.5 billion in sales in 2018 Acelity from a consortium of Apax Partners for $6.7 billion, includes debt, to close in 2H19. $MMM PR link.
Tesla(PBR139) announces offerings of $650 million of common stock and $1,350 million aggregate principal amount of convertible senior notes due in 2024 in concurrent underwritten registered public offerings, also granted the underwriters a 30-day option to purchase up to an additional 15% of each offering, CEO Elon Musk will participate by purchasing $10 million of common stock. $TSLA PR link.
Booking(PBR210) to acquire Washington DC-based SaaS technology guest management platform for restaurants and other businesses developer Venga, will align closely with Booking Holdings’ brand OpenTable to further improve offerings for its 51,000+ restaurant partners, terms not disclosed. $BKNG PR link.
Post Holdings(PBR444) to acquire the private label ready-to-eat (“RTE”) $260 million in 2018 revenues cereal business of TreeHouse Foods(PBR461), to close in 3Q19, terms not disclosed. $POST PR link.
Bemis(PBR579) shareholders approve $57.75/share, $6.8 billion all stock transaction acquisition by Australia based Amcor Limited (ASX: AMC), to close around 05/15/19. $BMS PR link.
ITT Corp(PBR778) completes around $91 million acquisition of designer and manufacturer of centrifugal and axial flow pumps with around $69 million in sales in 2018 Rheinhütte Pumpen Group from Aliaxis Group SA. $ITT PR link.
Fluor(PBR155) CEO David T. Seaton steps down and no longer a member of the Board, will help with transition, was with company 34 years, former Chairman/CEO Alan L. Boeckmann named Executive Chairman, Chief Legal Officer/Secretary Carlos M. Hernandez named Interim CEO. $FLR PR link.
Church & Dwight(PBR605) President/CEO Matthew Farrell to add Chairman role after 2019 annual meeting, current Chairman James R. Craigie to remain on the Board. $CHD PR link.
The US Dept of Labor says US Preliminary 1Q19 Business Sector Labor Productivity Output/Hour was +3.7%, 4Q18 was at +1.2%, 3Q18 +1.5%, 1Q18 +0.9%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary March 2019 Manufacturers New Orders-Durable Goods was at $258.0 billion, Non-Durable Goods $250.2 billion, Total$508.2 billion, +1.9% from February 2019, +2.0% from March 2018, Total Year-To-Date(3 Months) $1.507 trillion, +2.6% from March 2018. USDOC PR link.
***Wednesday, May 1:
Chevron(PBR11) USA affiliate completes $350 million acquisition from Petrobas of the 466 acre complex Pasadena Refining System, includes the refinery in Texas and PRSI Trading. $CVX PR link.
Thermo-Fisher Scientific(PBR118) completes $1.7 billion cash acquisition of nearly 600 employees in Massachussets and Florida and anticipated 2019 revenues of $250 million viral vector manufacturing for gene and cell therapies provider Brammer Bio. $TMO PR link.
Newell Brands(PBR328) completes sale of its $640 million in sales in 2018 custom-designed plastic, nylons, monofilament, and zinc products manufacturer Process Solutions business to One Rock Capital Partners for $500 million after tax, and sale of its $123 million in sales in 2018 Rainbow® indoor environments products developer and manufacturer Rexair to global private equity firm Rhone Capital, to receive approximately $735 million of after-tax proceeds from these deals. $NWL PR link.
Sealed Air(PBR538) to acquire Streetsboro, OH-based 1,200 employees $290 million in 2018 sales automated bagging systems manufacturer Automated Packaging Systems for $510 million, to close in early 3Q19. $SEE PR link.
Ascena Retail(PBR428) Chairman/CEO David Jaffe retires, effective immediately, remains on the Board, President/CEO ascena brands Gary Muto named company CEO, Carrie Teffner named Interim Executive Chair. $ASNA PR link.
ServiceMaster(PBR719) appoints Naren Gursahaney as Chairman, succeeds Mark Tomkins who remains on the Board. $SERV PR link.
The US Federal Open Market Committeeissues statement saying it is keeping the short term federal funds rate at 2.25-2.50%. “… the labor market remains strong and that economic activity rose at a solid rate…” FOMC PR link.
The US Dept of Commerce/Census says US Preliminary March 2019 New Construction Spending Annual Rate is at $1.282 trillion, -0.9% from February 2019, -0.8% from March 2018. USDOC PR link.
The ISM US Preliminary April 2019 Manufacturing PMI Index(>50% economy expanding) is at 52.8%, 120th consecutive month of growth, March 2019 was at 55.3%. “Comments from the panel reflect continued expanding business strength, but at the softest levels since the fourth quarter of 2016…” ISM PR link.
The IHS Markit US April 2019 Manufacturing PMI is at 52.6, March 2019 was at 52.4, February 2019 53.0, April 2018 56.5. “Although the PMI ticked higher in April, the survey remains consistent with manufacturing acting as a drag on the economy at the start of the second quarter, albeit with the rate of contraction easing…” IHS Markit PR link.
ADP(PBR233) says US Preliminary April 2019 Change in Private Sector Jobs was +275,000, +77,000 from Small Businesses(1-49 employees), +145,000 from Mid-Sized Businesses(50-499), +53,000 from Large Businesses(500 or more). Highest increase since July 2018 with +284,000. $ADP PR link.
Automotive News says US April 2019 Light Vehicle Sales was at 1,091,930 units, -2.2% from April 2018; Average Transaction Pricewas at $34,319, +2.9% from April 2018, Average Time On Lot Before Retail Sale was at 72 days. Automotive News PR link.
***Tuesday, April 30:
The PBRMarketTools US Stock Exchanges Recap for April 2019 ending 04/30/19:
DJIA ends April at 26,592.91, +0.19% from last Friday, +2.56% MTD/QTD, +14.00% YTD, -0.88% from record 26,828.39 set 10/03/18.
NASDAQ ends April at 8,095.39, -0.63% from last Friday, +4.74% MTD/QTD, +22.01% YTD, -0.81% from record 8,161.85 set 04/29/19.
SPX ends April at record 2,945.83, +0.20% from last Friday, +3.93% MTD/QTD, +17.51% YTD, +0.0% from record 2,945.83 set 04/30/19.
The Month 4 YTD tally is:
The Stock Market Bull: 4 months
The Stock Market Bear: 0 months
Mixed Results: 0 months
Check out the BLOG page for the previous news and RECAPS and SNAPSHOTS posts.
Click here to follow The PBR1000 news on Twitter!
PBRMarketTools.com provides news, data, and analysis on 1,000 of the largest publicly held companies with primary operations in the US. The data and analysis is included in The PBR1000 Monthly Snapshots, an MS-Excel workbook with 15 snapshot worksheets, 27 rankings, and over 200 fields of data and information on each company. Click here to find out more!
(Graphic courtesy of FreeDigitalPhotos.net, Danilo Rizzutti.)
Copyright © 2019, All Rights Reserved, Pax Business Resources, LLC
