The PBR1000: Sweetheart Deals In February?
The PBR1000 in the Sweetheart Month of February 2020 will continue to test how much investors love their equities investments.
By Larry C. Paxton
The February 2020 breaking news items of interest for The PBR1000 follow with the most current date first.
***Friday, February 28
The PBRMarketTools US Stock Exchanges Recap for Week 9 and February ending 02/28/20:
DJIA ends Week 9 and February at 25,409.36, -12.36% from last Friday, -10.07 MTD, -10.96% QTD/YTD, -14.02% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 9 and February at 8,567.37, -10.54% from last Friday, -6.38% MTD, -4.52% QTD/YTD, -12.73% from record 9,817.18 set 02/19/20.
SPX ends Week 9 and February at at 2,954.22, -11.49% from last Friday, -8.41 MTD, -8.56% QTD/YTD, -12.76% from record 3,386.15 set 02/19/20.
The Week 9 and February of 2020 News Summary: The primary focus globally has escalated to be just the novel coronavirus respiratory disease, still mostly in China, but increasing numbers in other countries of the world. Containment is still uncertain, the economic impact still unmeasurable to any degree of accuracy. In the US President Trump gave a speech and took questions at a press conference, and appointed Vice President Pence to lead the effort to continue to contain coronavirus. President Trump also had a state visit to India, the largest democracy in the world, negotiated for a new treaty, and announced India’s purchase of $3 billion of US military goods. In the US economic indices continue to be mostly positive, but most surveys and analyses are based on results prior to the increased news about the coronavirus. The same can be said for US corporate earnings reports, which were mostly positive, but many provided guidance with caveats about future earnings based on, once again, coronavirus. The Stock Market Bull was noticeably absent during the week, The Stock Market Bear, aka SARS CoV-2, prevailed significantly every day to take a big win 3-0 for Week 9 and for February.
The Week 9 of 2020 tally YTD is:
The Stock Market Bull: 4 weeks
The Stock Market Bear: 4 weeks
Mixed Results: 1 week
The Month of February 2020 tally YTD is:
The Stock Market Bull: 0 months
The Stock Market Bear: 1 month
Mixed Results: 1 month
Taylor Morrison Homes(PBR592) authorizes up to $100 million for renewal of its stock repurchase program, expires 12/31/20. $TMHC PR link.
IDEX(PBR819) completes $125 million cash acquisition of privately-held $60 million in annual revenues provider of flow measurement systems in the oil and gas industry Flow Management Devices. $IEX PR link.
W.R. Grace(PBR903) increases its share repurchase authorization to $250 million, includes approximately $83 million remaining under its previously-announced program. $GRA PR link.
Cincinnati Bell(PBR973) amends agreement to be acquired by Brookfield Infrastructure(NYSE: BIP) from $10.50/share to $12.50/share, around $2.745 billion cash, includes debt, to close by 12/31/20. $CBB PR link.
Harley-Davidson(PBR478) President/CEO/Director Matthew Levatich steps down from all his roles after 26 years with the company, Board member Jochen Zeitz appointed as Acting President and CEO, also appointed Chairman and will continue that role when a new CEO is onboard, former Chairman Michael Cave is now Presiding Director. $HOG PR link.
Arch Coal(PBR822) CEO John W. Eaves to retire at annual meeting on 04/30/20, become Executive Chairman, succeeds James N. Chapman who will become Lead Indpendent Director, President/COO Paul A. Lang to become President/CEO, becomes member of the Board. $ARCH PR link.
The US Dept of Treasury says the US Government Natl Debt-Public on 02/27/20 is at $17.388 trillion, Intragovernmental Holdings $6.035 trillion, for Total US Government Debt of $23.423 trillion, +0.9% from 01/31/20, +5.9% from 02/28/19. USTreasury PR link.
The US Dept of Commerce/BEA says the Preliminary January 2020 Personal Income Annual Rate is at $18.981 trillion, +0.6% from December 2019, +4.0% from January 2019. USDOC PR link.
The American Automobile Assn says the US Average Price/Gallon of Gas on 02/29/20 is at $2.447, on 01/31/20 it was at $2.485, 12/31/19 $2.583, 02/28/19 $2.413. AAA PR link.
The MNI February 2020 Chicago Business Barometer(<50 is declining) is at 49.0, January 2020 was at 42.9, December 2019 48.9, February 2019 64.7. “The index moved
closer to the 50-no-change-threshold, shifting the
three-month average up to 46.7.” MNI PR link.
The U of Michigan Final February 2020 Consumer Sentiment Index is at 101.0, January 2020 was at 99.8, December 2019 99.3, February 2019 93.8. “… the domestic spread of the (corona)virus could have a significant impact on consumer spending. Importantly, the early indications suggested only a very modest impact as the Sentiment Index among consumers who mentioned the coronavirus was still quite high (just over 90.0).” UMichigan PR link.
***Thursday, February 26
Wells Fargo(PBR29 $WFC) ordered to pay $35 million by the US Securities and Exchange Commission for for failing reasonably to supervise investment advisers and registered representatives who recommended single-inverse ETF investments to retail investors, and for lacking adequate compliance policies and procedures. SEC PR link.
Dell(PBR34) authorizes new up to $1 billion share buyback program, expires in 24 months. $DELL PR link.
Facebook(PBR57) cancels its annual F8 developer conference over coronavirus concerns. -CNet $FB PR link.
PG&E(PBR181 $PCG) gets slapped with increase from $1.7 billion to $2.1 billion fine by California Public Utilities Commission for igniting a series of deadly wildfires. MarketWatch PR link.
Bed Bath & Beyond(PBR250) announces strategic restructuring program to simplify operations and reset cost structure, expects to reduce workforce by around 500. $BBBY PR link.
Zoetis(PBR471) gets US FDA approval for Simparica TrioTM (sarolaner, moxidectin, and pyrantel chewable tablets), the first once-monthly, chewable tablet in the US that delivers all-in-one protection from heartworm disease, ticks and fleas, roundworms and hookworms in dogs. $ZTS PR link.
Gardner Denver(PBR788 $GDI) will replace Cimarex Energy(PBR839 $XEC) in the S&P 500, and Cimarex Energy will replace Chesapeake Energy(PBR298 $CHK) in the S&P MidCap 400 effective prior to the open of trading on 03/03/20.
Verso Corp(PBR789) authorizes up to $250 million share repurchase program. $VRS PR link.
The US Dept of Commerce/BEA says the 4Q19 2nd Estimate Gross Domestic Product remains at +2.1%, $21.727 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 Unemployment Insurance Claims for 02/22/20 is at 209,750, 01/25/20 was at 214,500, 12/21/19 219,750, 02/23/19 229,000. USDOL PR link.
FreddieMac(PBR40) says the US 30 Year Fixed Mortgage Rate Average on 02/27/20 is at 3.45% with 0.7 fees & points, 01/29/20 was at 3.51%, 12/26/19 3.74%, 2/28/19 4.35%. $FMCC PR link.
***Wednesday, February 26
Chesapeake Energy(PBR298 $CHK) in 4Q20 earnings conference call says it will be filing for a reverse stock split in a few weeks. MotleyFool PR link.
Charles Schwab(PBR302) to acquire independent investment manager of fixed income separately managed accounts with $10.5 billion in assets under management Wasmer, Schroeder & Company, LLC in an all cash purchase, terms not disclosed. $SCHW PR link.
Insight(PBR409) authorizes up to $50 million share repurchase program, to retire the repurchased shares. $NSIT PR link.
Blackstone(PBR421 $BX) has purchased 28,000 student beds – along with a further 4,000 in the pipeline – for £4.7 billion ($6.1 billion) from Goldman Sachs(PBR85) in the UK’s largest ever private real estate transaction. MarketWatch PR link.
TreeHouse Foods(PBR473) to restructure from 3 divisions(Baked Goods, Beverages and Meal Solutions), to two divisions, Snacking & Beverages and Meal Preparation. $THS PR link.
Peabody Energy(PBR490) plan to own 66.5% Arch Coal(PBR826 $ARCH) 33.5% in joint venture to combine the companies’ Powder River Basin and Colorado coal assets gets negative split decision by the US Federal Trade Commission, Peabody/Arch will take the case to federal courts. $BTU PR link.
Brink’s(PBR659) to acquire for around $860 million the majority of the cash operations of UK-based $800 million in revenues in 2019 G4S plc (LSE: GFS), a global security and cash management company, acquisition to be accomplished in phases and be completed by 12/31/20. $BCO PR link.
Thermo-Fisher Scientific(PBR118) President/CEO Marc Casper elected to additional role of Chairman, effective immediately, succeeds Jim Manzi who remains on the Board. $TMO PR link.
Huntington Ingalls(PBR364) Chairman retired Adm. Thomas B. Fargo to retire from the board after the next annual meeting of shareholders on 04/28/20, retired Adm. Kirkland H. Donald elected to be successor. $HII PR link.
PPL Corp(PBR381) Chairman/CEO William H Spence to retire as CEO effective 06/01/20, will become Non-Executive Chairman, President/COO Vincent Sorgi to become President/CEO on 06/01/20. $PPL PR link.
The US Dept of Commerce/HUD says the Preliminary January 2020 New Family Home Sales Annual Rate is at 764,000 units, +7.9% from December 2019, +18.6% from January 2019; Median Price is at $348,200, +7.4% from December 2019, +14.0% from January 2019; New Homes Available are at 324,000; Months Supply is at 5.1. USDOC PR link.
The US Energy Information Administration says the US Crude Oil Stocks on 02/21/20 are at 443.3 million barrels of oil, +2.7% from 01/24/20, -0.6% from 02/22/19. USEIA PR link.
The National Retail Federation says consumers continue to drive economy, forecasts retail sales will grow 3.5 percent to 4.1 percent. NRF PR link.
***Tuesday, February 25
Comcast(PBR32) has acquired the free, live and on-demand streaming entertainment, news, sports and more, organized in a channel guide, and features over 190 different genre-grouped channels XUMO, based in Irvine, CA, terms not disclosed. $CMCSA PR link.
Mondelez(PBR109) to acquire a significant majority interest in $500 million in revenues/2019 Give & Go, a N American provider of fully-finished sweet baked goods and owners of the famous “two-bite”® brand and the “Create-A-Treat”® brand known for cookie and gingerbread house decorating kits, to close in 2Q20. $MDLZ PR link.
Principal Financial(PBR215) authorizes up to $900 million common stock repurchase program, as of 12/31/19, approximately $168 million remained under prior authorization. $PFG PR link.
Walt Disney(PBR45) Chairman/CEO Bob Iger steps down as CEO, becomes Executive Chairman through 12/31/21, will also direct creative endeavors, Chairman/Disney Parks, Experiences and Products Bob Chapek named CEO, both effective immediately. $DIS PR link.
MasterCard(PBR206) President/CEO Ajay Banga to become Executive Chairman on 01/01/21, Chief Product Officer Michael Miebach to become President on 03/01/20, also become CEO and Board member on 01/01/21. $MA PR link.
Arconic(PBR225) CEO John Plant to be Executive Chairman/Co-CEO of spinoff Howmet Aerospace upon separation on 04/01/20 through 03/31/23, President/Arconic Engineered Structures Tolga Oal to be other Co-CEO. $ARNC PR link.
Salesforce(PBR236) Co-CEO Keith Block steps down, remaining as Advisor to the CEO, Marc Benioff now both Chairman and only CEO. $CRM PR link.
The US Federal Reserve Bank of Richmond says the February 2020 US 5th District Manufacturing Index(Annualized) is at -2%, January 2020 was at +20%, December 2019 -5%, February 2019 +14%. “… the index for local business conditions remained positive, and manufacturers were optimistic that activity would improve in the coming months.” RichmondFed PR link.
The US Federal Reserve Bank of Richmond says the February 2020 US 5th District Service Sector Revenue Index(Annualized) is at +26%, January 2020 was at +10%, December 2019 +17%, February 2019 +16%. “Survey participants were optimistic that activity would be strong in the next six months.” RichmondFed PR link.
The Conference Board Preliminary February 2020 Consumer Confidence Index(1985=100) is at 130.7, January 2020 was at 130.4, December 2019 128.2, February 2019 131.4. “Consumers’ short-term expectations improved, and when coupled with solid employment growth, should be enough to continue to support spending and economic growth in the near term.” TCB PR link.
The S&P CoreLogic Case-Shiller December 2019 US National Composite Home Price Index(01/2000=100) is at 212.59, November 2019 was at 212.42, October 2019 212.20, December 2018 204.90. Case-Shiller PR link.
***Monday, February 24
Intel(PBR43) makes several hardware and software announcements for 5G networks infrastructure, including the launch of the new Intel Atom® P5900, a 10nm system-on-chip (SoC) for wireless base stations. $INTC PR link.
HP(PBR55) increases its total share repurchase authorization to $15 billion, up from the $5 billion share repurchase authorization announced in 10/19, says revised Xerox(PBR308) proposal, announced on 02/10/20, meaningfully undervalues HP, creates significant risk, and compromises HP’s future, HP is reaching out to Xerox to explore if there is a combination that creates value for HP shareholders that is additive to HP’s strategic and financial plan. $HPQ PR link.
Cisco(PBR62) launches SecureX, says it unifies visibility, identifies unknown threats, and automates workflows to strengthen customers’ security across network, endpoint, cloud, and applications, is a ‘radical simplification,’ will be included in every Cisco security product. $CSCO PR link.
Intuit(PBR426) to acquire consumer technology platform with more than 100 million members in the US, Canada and UK and around $1 billion in revenues in 2019 Credit Karma for around $7.1 billion cash and stock, to close in 2H20. $INTU PR link.
Perrigo(PBR538) and partner Catalent Pharma Solutions get US FDA approval for generic albuterol sulfate inhalation aerosol, the first AB-rated generic version of Teva Respiratory’s ProAir® HFA, indicated in patients 4 years of age and older for the treatment or prevention of bronchospasm with reversible obstructive airway disease and for the prevention of exercise-induced bronchospasm. $PRGO PR link.
Perrigo(PBR538) to acquire the oral care assets of High Ridge Brands for $113 million in cash in bankruptcy sale, assets include leading children’s oral care value brand, Firefly®, in addition to the REACH® and Dr. Fresh® brands, to close in 1Q20. $PRGO PR link.
Avis Budget(PBR329) enters into a new cooperation agreement with largest shareholder SRS Investment Management, will result in SRS providing 3 people for the 9 member Board. $CAR PR link.
The US Federal Reserve Bank of Chicago says the Preliminary January 2020 US National Activity Index is at -0.25, December 2019 was at -0.51, November 2019 +0.49, January 2019 -0.07. “Index points to an uptick in economic growth in January.” ChiFed PR link.
***Friday, February 21
The PBRMarketTools US Stock Exchanges Recap for Week 8 ending 02/21/20:
DJIA ends Week 8 at 28,992.41, -1.38% from last Friday, +2.61 MTD, +1.59% QTD/YTD, -1.89% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 8 at 9,576.59, -1.59% from last Friday, +4.65% MTD, +6.73% QTD/YTD, -2.45% from record 9,817.18 set 02/19/20.
SPX ends Week 8 at at 3,337.75, -1.25% from last Friday, +3.48 MTD, +3.31% QTD/YTD, -1.43% from record 3,386.15 set 02/19/20.
The Week 8 of 2020 News Summary: The major international story continues to be the acute respiratory disease coronavirus, aka COVID-19, which is still primarily in China and has spread to some other countries as well, though still in much smaller numbers. As Chinese and world health organizations grapple with the issue the economies of countries that have major trade with China are starting to be impacted. In the US this is starting to show up in some of the 4Q19 earnings reports and guidance for 2020 comments. However, the US economy still looks very good to this point, US corporate earnings reports were still mostly positive, and business and consumer surveys continued to reflect optimism. In US politics the Democrats had a debate in Nevada, the first to include new candidate multi-billionaire Michael Bloomberg, who was immediately attacked for his trying to buy the nomination. It was a 4 day trading week with US Presidents Day being observed on Monday. The Stock Market Bull had a great day on Wednesday with the NASDAQ and SPX having record days. But The Stock Market Bear gorged himself on Thursday and Friday on the coronavirus news to take Week 8 3-0.
The Week 8 of 2020 tally YTD is:
The Stock Market Bull: 4 weeks
The Stock Market Bear: 3 weeks
Mixed Results: 1 week
Wells Fargo(PBR29) in settlement with the US Dept of Justice and the US Securities and Exchange Commission has agreed to make payments totaling $3 billion for the Company’s historical Community Bank sales practices and related disclosures. $WFC PR link.
Eli Lilly(PBR116) gets US FDA approval for Trulicity® (dulaglutide) for the reduction of major adverse cardiovascular events (MACE) in adults with type 2 diabetes who have established cardiovascular (CV) disease or multiple cardiovascular risk factors. $LLY PR link.
Cleveland-Cliffs(PBR841) $3.36/share $1.1 billion acquisition of producer of flat-rolled carbon, stainless and electrical steel products AK Steel(PBR424) gets last regulatory approval from the Mexican Competition Commission, scheduled to close on 03/13/20 when shareholders of both companies vote on the deal. $CLF PR link.
AVX(PBR931) to be acquired by 72% shareholder Kyocera Corp through all stock purchase of the 28% of common shares it does not own for $21.75/share, to close by 03/31/20. $AVX PR link.
The Natl Assn or Realtors says the January 2020 US Existing Homes Sales Annual Rate is at 5,460,000, -1.4% from December 2019, +9.6% from January 2019; Median Price is at $266,300, -3.0% from December 2019, +6.8% from January 2019; Median Days on Market is at 43 Days; Available inventory is at 1,420,000, a 3.1 Months Supply. NAR PR link.
***Thursday, February 20
HP(PBR55) adopts a limited duration shareholder rights plan to discourage proposals from companies like Xerox(PBR308) without first negotiating with the Board. $HPQ PR link.
Morgan Stanley(PBR63) to acquire online brokerage E*Trade(PBR753) for $58.74/share, around $13 billion all stock, to close in 4Q20. $MS PR link.
T-Mobile US(PBR70) acquisition of Sprint(PBR90) amended, Softbank to get 11.00 Sprint shares per T-Mobile share, up from 9.75, will result in Deutsche Telekom and SoftBank to hold approximately 43% and 24%, respectively, of the fully diluted New T-Mobile shares, with the remaining approximately 33% held by public shareholders, trying to close deal by 04/01/20. $TMUS PR link.
Eli Lilly(PBR116) completes $18.75/share around $1.1 billion cash acquisition of biopharmaceutical developer of new therapies for chronic skin conditions Dermira. $LLY PR link.
L Brands(PBR237) selling 55% interest in Victoria’s Secret unit to Sycamore Partners for $525 million, will retain 45% minority stake, positions its Bath & Body Works unit as a highly profitable, standalone public company, upon closing Chairman/CEO Leslie Wexner to step down from his roles, remain a member of the Board as Chairman Emeritus, COO of Bath & Body Works Andrew Meslow to become CEO of L Brands. $LB PR link.
Hormel Foods(PBR320) to acquire family-owned pit-smoked meats company based in Henderson, TX witn $140 million in annual revenues Sadler’s Smokehouse for $270 million cash, to close in 03/20. $HRL PR link.
Huntsman(PBR324) completes $350 million cash acquisition of $230 million in annual revenues Icynene-Lapolla, a leading N American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from FFL Partners. $HUN PR link.
Wolverine World Wide(PBR858) to receive a payment of $55 million from 3M(PBR93) for Wolverine’s efforts to address PFAS remediation to ensure long-term water quality and continued environmental remediation per US District Court Consent Decree with the State of Michigan, Plainfield Charter Township, and Algoma Township. $WWW PR link.
The US Federal Reserve Bank of Philadelphia says the February 2020 US 3rd District Manufacturing General Activity Indicator is at +36.7, January 2020 was at +17.0, December 2019 +2.4, February 2019 -0.7. “… highest reading since February 2017… future indexes indicate that respondents continue to expect growth in manufacturing activity over the next six months.” PhillyFed PR link.
The Conference Board says the January 2020 US Leading Economic Index(2016=100) is at 112.1, December 2019 was at 111.3, November 2019 111.6, January 2019 111.4. “The strong pickup in the January US LEI was driven by a sharp drop in initial unemployment insurance claims, increasing housing permits, consumers’ outlook on the economy and financial indicators… the COVID-19 outbreak may impact manufacturing supply chains in the US in the coming months.” TCB PR link.
***Wednesday, February 19
Lithia Motors(PBR255) acquires two Lexus stores in Sacramento and Roseville, CA, generate $160 million in annual revenues, terms not disclosed. $LAD PR link.
Fiserv(PBR472) completes $510 million in net after-tax proceeds sale of 60% stake in its Investment Services Business to Motive Partners, Fiserv retains a 40% equity interest in the business. $FISV PR link.
Harley-Davidson(PBR478) authorizes an additional 10 million shares for its repurchase program, which had 8.2 million shares available at the end of 2019. $HOG PR link.
Ascena Retail(PBR492) has completed the wind down of its Dressbarn brand operations, closing over 650 stores, eliminates over $300 million of lease liability. $ASNA PR link.
Scientific Games(PBR680) has developed, and Kentucky Horse Racing Commission has approved, their first generation of Historical Horse Racing machines, announces 3-way partnership with Churchill Downs and Ainsworth Game Technology. $SGMS PR link.
Endo Intl(PBR739) EVP/CFO Blaise Coleman to become President/CEO and member of the Board effective 03/06/20, succeeds Paul Campanelli who will remain Chairman. $ENDP PR link.
The US Dept of Labor says the US Preliminary January 2020 Total Monthly Demand Producer Price Index is at +0.5%, December 2019 was at +0.2%, November 2019 -0.1%, January 2019 -0.3%. USDOL PR link.
The US Dept of Commerce/Labor says the US Preliminary January 2020 Building Permits Issued-Private Housing is at 1,551,000 annual rate, December 2019 was at 1,420,000, November 2019 1,474,000, January 2019 1,316,000. USDOL PR link.
The US Federal Open Market Committee releases the minutes from the 01/28-29/20 meeting, says “Members agreed to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent. Members judged that the current stance of monetary policy was appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective.” FOMC PR link.
***Tuesday, February 18
Check out The PBR1000 Spotlight on salesforce.com, #9 on the current The PBR25! $CRM PR link.
Walmart(PBR1 $WMT) expects to save $60 million annually on shopping bags. MarketWatch PR link.
Dell(PBR34) to sell its risk, security and fraud teams provider RSA to a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners for $2.075 billion cash, to close in 6-9 months. $DELL PR link.
Fluor(PBR160) in 4Q19 report says it has reversed its decision to sell substantially all of its Government business, has gained confidence in its solid liquidity position and its viable options for generating cash flow. $FLR PR link.
Bed Bath & Beyond(PBR250) to sell its PersonalizationMall.com business to 1-800-FLOWERS.COM for $252 million. $BBBY PR link.
Group 1 Automotive(PBR262) increases share repurchase authorization by $52.4 million to $100 million. $GPI PR link.
Baxter(PBR279) completes $350 million cash acquisition of $100 million in annual revenues provider of adhesion prevention products, hemostats and sealants Seprafilm Adhesion Barrier and related assets from Sanofi. $BAX PR link.
Ally Financial(PBR294) to acquire privately held Woodbury, NY based $4.7 billion in assets non-prime credit card and consumer finance lender with a full-spectrum unsecured servicing platform and robust merchant services capability provider CardWorks for $2.65 billion cash and stock, to close in 3Q20. $ALLY PR link.
Anixter(PBR354) shareholders to vote on 04/09/20 on being acquired by WESCO(PBR365) for $100.00/share, $4.5 billion cash & stock. $AXE PR link.
Franklin Resources(PBR476) to acquire $806 billion in assets on 01/31/20 Legg Mason(PBR746) for $50.00/share cash, will also assume about $2 billion of Legg Mason’s outstanding debt, to close in 3Q20. $BEN PR link.
Groupon(PBR798) in 4Q19 report says it is proposing a reverse stock split of common stock at a ratio of between 1-for-10 and 1-for-12, to be voted on at shareholders annual meeting in 06/20. $GRPN PR link.
SL Green Realty(PBR986) to sell its 315 West 33rd Street New York City property and an adjacent undeveloped parcel of land for a gross valuation of $446.5 million, or approximately $906 square foot, to an affiliate of Brookfield Asset Management, to close in 2Q20. $SLG PR link.
DuPont(PBR35) CEO Marc Doyle and CFO Jeanmarie Desmond are leaving the company, Executive Chairman and former CEO Ed Breen adds CEO role, new CFO appointed. $DD PR link.
Dow(PBR52) CEO Jim Fitterling expected to be appointed to additional role of Chairman after annual stockholders meeting on 04/09/20. $DOW PR link.
Facebook(PBR57 $FB) CEO Mark Zuckerberg and CFO Sheryl Sandberg should be “removed from control” of Facebook for its policy on political ads according to financier George Soros in a letter to the editor of the Financial Times. MarketWatch PR link.
The US Federal Reserve Bank of New York says the US February 2020 Empire State Manufacturing General Business Conditions Index is at +12.9, January 2020 was at +4.8, December 2019 +3.3, February 2019 +10.3. “Optimism about the six-month outlook continued to be somewhat subdued, and capital spending plans remained firm.” NYFed PR link.
The Natl Assn of Home Builders Preliminary February 2020 US Housing Market Composite Index(>50=more builders view conditions as good than poor) is at 74, January 2020 was at 75, December 2019 76, February 2019 62. “Steady job growth, rising wages and low interest rates are fueling demand but builders are still grappling with increasing construction and development costs…” NAHB/WF PR link.
***Monday, February 17
***US Federal Holiday.
***US Presidents Day.
***US Stock Exchanges Closed.
Apple(PBR3) revises down 1Q20 revenue forecast, experiencing a slower return to normal conditions in China from coronavirus issues than anticipated, worldwide iPhone supply will be temporarily constrained as China factories reopen, demand for its products within China has been affected by store closures. $AAPL PR link.
General Motors(PBR14) restructuring international operations, to wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021, will focus on the GM specialty vehicle business for that market; to purchase GM’s Rayong vehicle manufacturing facility in Thailand; and to withdraw Chevrolet from the domestic market in Thailand by the end of 2020. $GM PR link.
Dean Foods(PBR383) to sell 44 of its fluid and frozen facilities and the real estate, inventory, equipment, and all other assets necessary to operate such facilities to the Dairy Farmers of America cooperative in a “stalking horse” agreement, needs to be approved by Bankruptcy Court scheduled for 03/12/20, any other bids would be due by 03/31/20. $DFODQ PR link.
Triumph Group(PBR678) combines its Integrated Systems and Product Support business units into one “Triumph Systems & Support” business effective immediately, as part of restructuring. $TGI PR link.
Pier 1 Imports(PBR957) has entered into a Plan Support Agreement with a majority of its term loan lenders and is pursuing a sale of the Company, has commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court, to complete the previously announced closure of up to 450 store locations, which includes the closure of all its stores in Canada. $PIR PR link.
***Friday, February 14
The PBRMarketTools US Stock Exchanges Recap for Week 7 ending 02/14/20:
DJIA ends Week 7 at 29,398.08, +1.02% from last Friday, +4.04 MTD, +3.01% QTD/YTD, -0.52% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 7 at record 9,731.18, +2.21% from last Friday, 6.34% MTD, +8.45% QTD/YTD, +0.00% from record 9,731.18 set 02/14/20.
SPX ends Week 7 at record at 3,380.16, +1.58% from last Friday, +4.79 MTD, +9.62% QTD/YTD, +0.00% from record 3,380.16 set 02/14/20.
The Week 7 of 2020 News Summary:
The coronavirus, now also known as COV-19, was the overwhelming top news maker again this week as numbers of people affected and associated deaths continue to climb, but remains largely confined to China, which has calmed the world a little bit as it accepts that the outbreak in mostly isolated. Most economists say there will be an impact globally, and continue to try to measure what the affect has been so far and will be overall. US economic news was a little mixed on the good side. Jobs continue to be available, employee turnover is low, wages are up a little bit, and mortgage rates continue to be very reasonable. US corporate earnings continue to be mostly better than anticipated as 2019 annual reports keep pouring in. US politics was active as the first primary, New Hampshire, was pursued heavily by the Democrat candidates, and resulted in a narrow margin win by Bernie Sanders. Nevada and S Carolina are the next stops as the election cycle accelerates. The US stock exchanges responded positively the whole week. The Stock Market Bear made a brief appearance on Thursday, but The Stock Market Bull easily prevailed the other days and takes a Week 7 3-0 victory romp in the pasture.
The Week 7 of 2020 tally YTD is:
The Stock Market Bull: 4 weeks
The Stock Market Bear: 2 weeks
Mixed Results: 1 week
MGM Resorts(PBR257) completes around $4.6 billion sale of MGM Grand Las Vegas and Mandalay Bay real estate assets to new joint venture between MGM Growth Properties and Blackstone(PBR423) Real Estate Income Trust, MGM Resorts has entered into a long-term triple net master lease for both properties, and will continue to manage, operate and be responsible for all aspects of the properties on a day-to-day basis, with the joint venture owning the properties and receiving rent payments. MGM PR link.
The US Dept of Labor says the US Preliminary January 2020 Monthly Imports Prices are at +0.0, Exports +0.7%; Last 12 Months Imports are at +0.3%, Exports +0.5%. USDOL PR link.
The US Dept of Commerce/Census says the US Preliminary December 2019 Total Sales-Manufacturers are at $504.1 billion, Retail $462.6 billion, Wholesalers $494.4 billion, Total Sales $1.461 trillion, -0.1% from November 2019, +1.7% from December 2018. USDOC PR link.
The US Dept of Commerce/Census says the US Advance January 2020 Sales-Retail are at $463.3 billion, Food Services & Drinking Places $66.5 billion, Total $529.8 billion, +0.3% from December 2019, +4.4% from January 2019. USDOC PR link.
The US Federal Reserve says the US Preliminary January 2020 Industrial Production Capacity Utilization is at 76.8%, December 2019 was at 77.1%, November 2019 77.5%, January 2019 79.0%. USFed PR link.
The Natl Assn of Home Builders/Wells Fargo says the US Preliminary January 2020 Housing Market Composite Index(>50%=more builders view conditions as good than poor} is at 75%, December 2019 was at 76%, November 2019 71%, January 19 was at 58%. NAHB/WB PR link.
The U of Michigan US Preliminary February 2020 Consumer Sentiment Index is at 100.9, January 2020 was at 99.8, December 2019 99.3, February 2019 93.8. UMichigan PR link.
***Thursday, February 13
Microsoft(PBR19 $MSFT) US federal government $10 billion cloud services JEDI contract gets temporary restraining order by federal judge per lawsuit filed by Amazon(PBR5 $AMZN) who alleged the yearslong evaluation process included “clear deficiencies, errors and unmistakable bias.” MarketWatch PR link.
Boeing(PBR28) reaches a tentative agreement with the Society of Professional Engineering Employees in Aerospace (SPEEA) on a new four-year contract extension that would run through 2026 covering approximately 18,000 engineering and technical employees, nearly all of whom are in Washington and Oregon, SPEEA membership to vote 02/24-03/09/20. $BA PR link.
Tyson(PBR72 $TSN) says pork exports to China soared nearly 600% in first quarter after swine fever outbreak, expects chicken exports to China to double, in restructuring will cut 500 jobs. MarketWatch PR link.
Tesla(PBR144) to offer approximately $2 billion of common stock, to use net proceeds to further strengthen its balance sheet, as well as for general corporate purposes. $TSLA PR link.
Kohl’s(PBR155 $KSS) restructuring program results in 250 job cuts, including regional store leaders and merchant team members, not closing any stores or corporate offices and is continuing to hire in key areas. MarketWatch PR link.
Molson Coors(PBR285 $TAP) is jumping into the hard seltzer category with Vizzy launch in 03/20. MarketWatch PR link.
eBay(PBR286) completes $4.05 billion cash sale of its StubHub unit to worldwide ticket marketplace for live sport, music and entertainment events viagogo. $EBAY PR link.
Newmont Goldcorp(PBR401) says it has gold Mineral Reserves of 100.2 million attributable ounces for 2019 compared to 65.4 million ounces at the end of 2018. $NEM PR link.
Wayfair(PBR428 $W) has cut about 3% of its global workforce, or about 550 jobs, as part of a restructuring, continues to hire for many roles. MarketWatch PR link.
Moody’s(PBR570) completes $700 million acquisition of anti-money laundering and know-your-customer data and due diligence services provider Regulatory DataCorp. $MCO PR link.
Tempur Sealy(PBR786) increases share repurchase program by over $190 million, new balance available is $300 million, expects to purchase at least $50 million of its common stock per quarter in the near term. $TPX PR link.
The US Dept of Labor says the US January 2020 Consumer Price Index-All Items is at +0.1%, December 2019 was at +0.2%, November 2019 +0.2%, January 2019 +0.0%, The Last 12 Months(Unadjusted) is at +2.5%. USDOL PR link.
The US Dept of Labor says the US Preliminary January 2020 Current Average Earnings/Hour is at $28.44, Average Hours Worked/Week is at 34.3, Current Average Weekly Earnings is at $975.49, +0.3% from December 2019, +2.5% from January 2019. USDOL PR link.
***Wednesday, February 12
Here’s the link for a brief summary on global data centers firm Equinix(PBR524), ranked 16th on The PBR25 Top Buy Stocks list on 02/04/20. $EQIX Spotlight link.
Bausch Health(PBR358) to reduce debt by $100 million using cash generated from operations. $BHC PR link.
NVR(PBR404) authorizes $300 million share repurchase program. $NVR PR link.
Worthington Industries(PBR631) to consolidate its oil and gas equipment manufacturing operation in Wooster, OH into its existing facility in Bremen, OH, to be completed by 05/31/20, 122 employees affected have option to transfer. $WOR PR link.
Elanco Animal Health(PBR719) to divest the European Economic Area and UK rights to the de-wormers for dogs and cats Drontal® and Profender® product families from Bayer AG’s (ETR: BAYN) animal health business, to French pharmaceutical company Vetoquinol SA (EURONEXT: VETO), for $140 million cash, further advances Elanco’s efforts to gain European Commission clearance for the acquisition of Bayer AG’s global animal health business. $ELAN PR link.
C.H. Robinson(PBR184) Executive Chairman John Wiehoff to retire at the 05/07/20 annual meeting, successor to be named at a later date. $CHRW PR link.
MGM Resorts(PBR257) Chairman/CEO Jim Murren to step down from both roles before the end of his contract, will stay on until successor appointed, CEO search committee formed. $MGM PR link.
HNI Corp(PBR857) President/CEO Jeff Lorenger elected to also be Chairman, effective immediately, succeeds Larry Porcellato who has been appointed Lead Director. $HNI PR link.
The US Dept of Treasury says the US January 2020 Federal Government Receipts were $372.3 billion, Outlays $404.9 billion, for Deficit of $32.6 billion; January 2019 Surplus was $8.7 billion; January 2020 YTD(4 months) Total Deficit is at $389.2 billion, January 2019 YTD Total Deficit was $310.3 billion. USTreasury PR link.
***Tuesday, February 11
Home Depot(PBR27) to hire 80,000 associates for spring. $HD PR link.
Johnson & Johnson(PBR36)’s Janssen unit to collaborate with the US Dept of Health & Human Services to accelerate development of a potential novel coronavirus vaccine. $JNJ PR link.
T-Mobile US(PBR70) $59 billion all stock acquisition of Sprint(PBR90) gets favorable decision in Federal Court in New York, remains subject to possible additional court proceedings, could close as early as 04/01/20. $TMUS PR link.
Cleveland-Cliffs(PBR843) $3.36/share $1.1 billion acquisition of producer of flat-rolled carbon, stainless and electrical steel products AK Steel(PBR424) is now scheduled to close on 03/13/20. $CLF PR link.
SeaWorld(PBR974) agrees to pay $65.0 million settlement for claims alleging violations of the US Securities and Exchange Commission, does not include an admission of fault, court must still approve. $SEAS PR link.
Beacon Roofing(PBR408) Chairman Robert R. Buck retires from the position, remains a director on the Board, Philip W. Knisely appointed as new Chairman. $BECN PR link.
The US Federal Trade Commission issues Special Orders to Alphabet(PBR17)(including Google), Amazon(PBR5), Apple(PBR3), Facebook(PBR57), and Microsoft(PBR19) to provide information and documents on the terms, scope, structure, and purpose of transactions that each company consummated between 01/01/10 and 12/31/19. USFTC PR link.
The US Dept of Labor says the US Preliminary December 2019 Job Openings-Private are at 5,739,000, Government 684,000, Total 6,423,000, -5.4% from November 2019, -14.1% from December 2018. USDOL PR link.
CoreLogic says the US November 2019 Housing Mortgages 30 Days or More Delinquent are at 3.9%, October 2019 was at 3.7%, September 2019 3.8%, November 2018 4.1%. “Overall delinquency rates remain at 20-year lows spurred on by tight underwriting standards following the onset of the Great Recession, a robust and accelerating economic cycle the past five years and the increasing underlying health of the housing economy… ” CoreLogic PR link.
***Monday, February 10
UPS(PBR41) and the Independent Pilots Association, which represents the company’s 2,959 flight crewmembers, reach a tentative agreement on a two-year contract extension, will go into effect 09/01/21, become amendable 09/01/23, if ratified. $UPS PR link.
ViacomCBS(PBR214)’s CBS Sports unit and sports book operator William Hill form a strategic partnership that makes William Hill the Official Sports Book and Wagering Data Provider across all CBS Sports platforms, will tip off with initial integrations in 03/20 on CBS Sports digital platforms, with a full rollout planned for the fantasy football season. $VIAC PR link.
Xerox(PBR308) to launch a tender offer on or around 03/02/20 for all of the outstanding shares of common stock of HP(PBR55) for $24.00/share, $18.40 in cash and 0.149 Xerox shares for each HP share. $XRX PR link.
Simon Property(PBR484) to acquire 80% of owners, managers and/or leasors of 26 super-regional shopping centers in the US and Asia Taubman Centers(NYSE: TCO) for $52.50/share cash, around $3.6 billion, Taubman family retains 20% ownership, to close mid-2020. $SPG PR link.
Equifax(PBR670) CEO Mark W. Begor issues a statement of thanks to the FBI for the US Dept of Justice’s indictment of four individual members of the People’s Liberation Army, the armed forces of the People’s Republic of China, in connection with the theft of consumer data in 2017. $EFX PR link.
Verso Corp(PBR790) has completed the $400 million sale of its Androscoggin Mill, located in Jay, ME, and its Stevens Point Mill, located in Stevens Point, WI, to Pixelle Specialty Solutions. $VRS PR link.
Genesco(PBR865) to move its current Nashville, TN, corporate headquarters into a new 310,000 sf facility in Nashville in early 2021. $GCO PR link.
Edgewell Personal Care(PBR873) terminates $1.37 billion cash/stock acquisition of New York, NY-based 900 employees razor products provider Harry’s because of recent US Federal Trade Commission lawsuit. $EPC PR link.
GATX(PBR976) to sell its American Steamship Company business, the operator of the largest fleet of US-flagged vessels on the Great Lakes, to Rand Logistics for $260 million. $GATX PR link.
Avis Budget(PBR329) appoints Bernardo Hees to the Board and as Independent Chairman, effective immediately, succeeds Leonard Coleman who remains a Board director. $CAR PR link.
***Friday, February 7
The PBRMarketTools US Stock Exchanges Recap for Week 6 ending 02/07/20:
DJIA ends Week 6 at 29,102.51, +3.00% from last Friday/MTD, +1.98% QTD/YTD, -0.94% from record 29,379.77 set 02/06/20.
NASDAQ ends Week 6 at 9,520.51, +4.04% from last Friday/MTD, +6.11% QTD/YTD, -0.54% from record 9,572.15 set 02/07/20.
SPX ends Week 6 at 3,327.71, +3.17% from last Friday/MTD, +3.00% QTD/YTD, -0.54% from record 3,345.78 set 02/06/20.
The Week 6 of 2020 News Summary:
The major international news story continues to be the continuing increase of cases of and deaths from the coronavirus in China and concern for its spread throughout the world. In China many businesses have been shut down, including most multinational companies. Airlines have cut or reduced flights as well. Arrival destinations from China and some cruise ships are quarantined as well. Medical science is trying to catch up with vaccines and tests, but it will take some time for those to catch up. In other news, China is going to cut tariffs by 50% on $75 billion of US goods. The US economy continues to show strength, with a surprising robust set of jobs reports to end the week. 4Q19 corporate earnings reports are better than expected as well. 1Q20 should, however, be affected by the coronavirus threat. In US politics the US Senate impeachment trial came to an end and, as expected, President Trump was acquitted of the two charges leveled against him by the US House, with the vote along political party lines. Tuesday night President Trump gave the annual State of the Union address to rave reviews or disgust, once again along party lines. The 2020 presidential election started in earnest with caucuses in Iowa, but technology glitches prevented it from proclaiming a winner on a timely basis, but preliminary results for the Democratic party being a bit of surprise. Candidate Michael Bloomberg was not a part of this initial test for candidates, but is spending big time in the Super Tuesday states. The Stock Market Bear seemed to have come down with something like the coronavirus and disappeared for the first 4 days of Week 6, but came charging back on Friday. The Stock Market Bull easily prevailed for the week, however, with new closing highs recorded on all 3 major US exchanges on Thursday. Next week is up for grabs.
The Week 6 of 2020 tally YTD is:
The Stock Market Bull: 3 weeks
The Stock Market Bear: 2 weeks
Mixed Results: 1 week
Fidelity Natl Financial(PBR388) to acquire annuity and life insurance products provider FGL Holdings (NYSE: FG) for $12.50/share, around $2.7 billion, to close by end of 3Q20. $FNF PR link.
HanesBrands(PBR424) authorizes new up to 40 million shares repurchase program, no expiration date, replaces previous authorization approved in 04/16. $HBI PR link.
Penn Natl Gaming(PBR650) gets its first pro league agreement with multi-year partnership to become the first authorized gaming operator of NASCAR in the US, also extends Kansas Speedway race title sponsorship through 2026. $PENN PR link.
Stericycle(PBR661) to sell its 2,000 employees Domestic Environmental Solutions business, excluding the healthcare customer and unused consumer pharmaceutical take-back services, to Harsco(PBR943) for $462.5 million in cash, to close in 1Q20. $SRCL PR link.
The US Dept of Labor says the US January 2020 Employed is at 158,714,000, -89,000 from December 2019, +2,087,000 from January 2019; Unemployed is at 5,892,000, +139,000 from December 2019, -623,000 from January 2019; Unemployment Rate is at 3.6%, December 2019 was at 3.5%, January 2019 4.0%. USDOL PR link.
The US Federal Reserve says the US Preliminary December 2019 Consumer Credit Outstanding-Revolving is at $1.098 trillion, Non-Revolving $3.099 trillion, Total $4.197 trillion, +0.5% from November 2019, +4.7% from December 2018. USFed PR link.
The US Dept of Commerce/Census says the US Preliminary December 2019 Wholesale Sales-Durable Goods are at $232.7 billion, Non-Durable Goods $261.6 billion, Total $494.3 billion. USDOC PR link.
The FannieMae(PBR22) US January 2020 Home Purchase Sentiment Index is at 93.0, December 2019 was at 91.7, November 2019 91.5, January 2019 84.7. “Low rates continue to be a key driver of consumer optimism about both current homebuying and home-selling conditions. Favorable views on job security and personal financial expectations reflect the strength of the labor market, which we believe will continue to bolster housing demand.” $FNMA PR link.
***Thursday, February 6
The PBR25 Buy Stocks By Analyst Recommendations as of 01/31/20 has been released. Check out the summary!
Amazon(PBR5) to open first fulfillment center in Iowa, to be located in Bondurant, 645,000 sf facility, to create 1,000 new full-time jobs, to launch in late 2020. $AMZN PR link.
Johnson & Johnson(PBR36 $JNJ) ordered to pay $750 million in punitive damages to four people who said their use of the company’s talcum powders caused a rare cancer, New Jersey judge plans to reduce amount to around $187 million, JNJ plans to appeal. MarketWatch PR link.
Nike(PBR81) transitioning its Nike Brand business in Brazil, Argentina, Chile and Uruguay to strategic distributor partnerships, will recognize a one-time, non-recurring charge related to foreign exchange of approximately $425 million. $NKE PR link.
Lear Corp(PBR148) authorizes increase in share repurchase authorization to $1.5 billion, had $1.2 billion balance at end of 2019, extends expiration date to 12/31/22. $LEA PR link.
Arconic(PBR226) Board approves completion of separation into two independent, publicly traded companies, existing company will be renamed Howmet Aerospace Inc, to change ticker from ARNC to HWM, Arconic Rolled Products Corporation to be named Arconic Corporation with ticker ARNC, to be effective on 04/01/20. $ARNC PR link.
JCPenney(PBR261) announces a new assortment of jeans with a complete reimagination of its women oriented a.n.a brand, focused on denim customers, includes size-inclusive selection for all body shapes and sizes. $JCP PR link.
Intercontinental Exchange(PBR454) says following its earnings call it has decided to cease exploring strategic opportunities with eBay(PBR286). $ICE PR link.
Agilent Technologies(PBR517) to receive $22.5 million from Twist Bioscience in intellectual property litigation settlement. $A PR link.
Taylor Morrison Homes(PBR593) completes $21.45/share, $2.5 billion cash & stock acquisition of William Lyon Homes (NYSE: WLH), creates 5th largest US homebuilder. $TMHC PR link.
Brink’s(PBR660) authorizes a $250 million shares repurchase program, expires 12/31/21, replaces previous authorization. $BCO PR link.
Twitter(PBR726) in 4Q19 report says average monetizable daily active usage reached 152 million, +21% year-over-year, has first $1+billion in revenues quarter. $TWTR PR link.
UNISYS(PBR764) to sell its 1,900 employees $689 million in revenues for year ending 09/30/29 US Federal business to SAIC(PBR545) for $1.2 billion, to close in 1H20. $UIS PR link.
The New York Times(PBR938) in 4Q19 says it now has 5,251,000 digital subscribers, gained 1+ million subscribers in 2019. $NYT PR link.
The US Dept of Labor says the US Preliminary 4Q19 Labor Productivity Output/Hour Annual Rate-Business Sector is at +1.1%, 3Q19 was at -0.2%, 2Q19 +2.8%, 4Q18 +0.0%. USDOL PR link.
***Wednesday, February 5
Merck(PBR73) to spin-off products from its Women’s Health, trusted Legacy Brands, and Biosimilars businesses into a new, yet-to-be-named, independent, publicly traded company with 10,000+ employees, to close in 1H21. $MRK PR link.
YUM China(PBR353) launches the “Restaurant Management Team (RMT) Family Care Fund” to provide additional health protection for family members of restaurant management employee, will start in 07/20 and cover an estimated 86,000 parents, spouses and children of more than 31,000 RMT employees. $YUMC PR link.
Ametek(PBR535) acquires Orange, CA based $40 million in annual sales high-reliability, ruggedized uninterruptible power systems provider IntelliPower for around $115 million. $AME PR link.
Barnes Group(PBR963) completes divestiture of its $60 million in annual revenues developer and producer of retaining rings, fasteners, snap rings Seeger-Orbis to the Kajo Neukirchen Group. $B PR link.
Peabody Energy(PBR487) and largest shareholder Elliott Management names 3 members of Elliott to the Board, as well as 1 to be mutually agreed upon in the future, to be effective at the 05/20 annual meeting. $BTU PR link.
Albermarle(PBR676) Chairman/CEO Luke Kissam to retire from his roles, effective 06/20, for health reasons. $ALB PR link.
The US Dept of Commerce/Census says the US Preliminary December 2019 Exports-Goods are at $137.7 billion, Services $71.9 billion, Total Exports $209.6 billion; Imports-Goods are at $207.5 billion, Services $51.1 billion, Total Imports $258.6 billion; Deficit-Goods is at $69.8 billion, Surplus-Services $20.8 billion, Total Deficit $49.0 billion, December 2018 Total Deficit was $60.8 billion; Total 2019 Exports were $2.500 trillion, Imports $3.117 trillion, Total Deficit $616.9 billion, 2018 Total Deficit was $627.3 billion. USDOC PR link.
ADP(PBR220) says the US January 2020 Change In Employment is at +291,000, +94,000 from Small Businesses, +128,000 Mid-Sized Businesses, +69,000 Large Businesses; +54,000 came from the Goods Producing Sector, +237,000 from the Services Sector. $ADP PR link.
The Institute for Supply Management says the US January 2020 Non-Manufacturing Index(>50%=Economy Expanding) is at 55.5%, December 2019 was at 55.0%, November 2019 53.9%, January 2019 56.7%. “The respondents remain mostly positive about business conditions and the overall economy. Respondents continue to have difficulty with labor resources.” ISM PR link.
The IHS Markit US January 2020 Manufacturing & Services Composite PMI Output Index is at 53.3, December 2019 was at 52.7, November 2019 52.0, January 2019 54.4. “Business activity rose at the fastest pace since last March in January amid a sharper expansion in service sector output.” IHS Markit PR link.
***Tuesday, February 4
The January 2020 PBR US Economic Indices Snapshot has been released. USI info.
Amazon(PBR5) opens new 48,000 square foot office for Alexa tech teams located in downtown Santa Barbara, CA, plans to create 150 new tech jobs. $AMZN PR link.
Walt Disney(PBR45) announces new Disney+ streaming service has signed up 28.6 million subscribers since its start on 11/12/19. $DIS PR link.
Macy’s(PBR115) announces 3 year Polaris strategy, includes launch of next phase of successful Macy’s Star Rewards loyalty program, plans to build four $1 billion power private brands, closing approximately 125 stores in lower tier malls within three years, and exploring new off-mall formats, establishes single corporate headquarters and relocates digital business to New York City. $M PR link.
eBay(PBR286 $EBAY) gets letter from activist investor Starboard Value saying the Classifieds unit must be sold off and a more aggressive operating plan put in place. Starboard Value PR link.
eBay(PBR286) responds to Starboard Value letter, says it will review the letter, reviews actions taken in recent years. $EBAY PR link.
Leidos(PBR299) to acquire the L3Harris Technologies(PBR459) Security Detection and Automation businesses, have 1,200 employees, for $1 billion cash, to close by end of 2Q20. $LDOS PR link.
Huntington Ingalls(PBR371) to acquire Kongsberg Maritime’s wholly owned indirect subsidiary Pocasset, MA based advanced marine robotics technology provider Hydroid for $350 million, to close in 2Q20. $HII PR link.
Scientific Games(PBR681) confirms it has expanded its partnership with Flutter Entertainment to cover online and mobile sports betting and iGaming content offering with FanDuel in the US. $SGMS PR link.
Prologis(PBR768) completes $12.6 billion all stock acquisition of US logistics REIT Liberty Property Trust (NYSE: LPT). $PLD PR link.
Wendy’s(PBR954) introduces new breakfast menu, options include fresh, hand-cracked eggs on every sandwich, and savory Applewood smoked bacon, starts 03/02/20. $WEN PR link.
Oshkosh(PBR357) director Stephen D. Newlin appointed independent Chairman, succeeds Craig P. Omtvedt who remains on the Board. $OSK PR link.
The US Dept of Commerce/Census says the US Preliminary December 2019 Manufacturers New Orders-Durable Goods is at $245.6 billion, Non-Durable Goods $253.8 billion, Total $499.4 billion, +1.8% from November 2019, -0.1% from December 2018. USDOC PR link.
The PurdueU/CME Group US January 2020 Ag Economy Composite Index is at 167, December 2019 was at 150, November 2019 153, December 2018 127. “Virtually all of the rise in this month’s barometer was attributable to a sharp rise in optimism about future conditions in agriculture… coincided with President Trump’s signing of the Phase One Trade Agreement between the U.S. and China on January 15th.” PurdueU/CME Group PR link.
***Monday, February 3
AECOM(PBR156) completes $2.405 billion sale of its Management Services business to affiliates of American Securities LLC and Lindsay Goldberg LLC, AECOM to focus on its higher-returning and lower-risk Professional Services business. $ACM PR link.
Alcoa(PBR235) completes $250 million sale of its 1,300-acre hazardous waste treatment business in Gum Springs, AR, to Veolia ES Technical Solutions. $AA PR link.
Brookdale Senior Living(PBR522) completes 3 transactions with Healthpeak Properties(PBR915), including sale of 14 community venture, acquisition of 18 previously leased communities, and restructure of remaining 24-community lease. $BKD PR link.
Edgewell Personal Care(PBR873) $1.37 billion cash/stock acquisition of New York, NY-based 900 employees razor products provider Harry’s is challenged by the US Federal Trade Commission, Edgewell says it will respond in due course. $EPC PR link.
Regis Corp(PBR998) will sell its 55% interest in Empire Education Group, an operator of accredited cosmetology schools, in exchange for de minimis cash compensation, an exclusive private label supply agreement, and an employer of choice arrangement. $RGS PR link.
Sonoco Products(PBR502) President/CEO/Director Robert C. Tiede retires from all roles, SVP Paper/Industrial Converted Products Howard Coker elected President/CEO/Director, effective immediately. $SON PR link.
Intuitive Surgical(PBR636) Chairman Lonnie M. Smith to retire at annual meeting in 04/20, independent lead director Dr. Craig H. Barratt to be successor. $ISRG PR link.
The US Dept of Commerce/Census says the US Preliminary December 2019 Construction Spending Annual Rate-Residential is at $548.0 billion, Non-Residential $779.6, Total $1,327.7 billion, -0.2% from November 2019, +5.0% from December 2018. USDOC PR link.
The Institute for Supply Management says the US Preliminary January 2020 Manufacturing PMI Index(>50%=Economy Expanding) is at 50.9%, December 2019 was at 47.2%, November 2019 48.1%, January 2019 56.6%. “The PMI® returned to expansion territory for the first time since July 2019… Overall, sentiment this month is moderately positive regarding near-term growth..,” ISM PR link.
The IHS Markit US January 2020 Manufacturing PMI Index is at 51.9, December 2019 was at 52.4, November 2019 52.6, January 2019 54.9. “U.S. manufacturing firms indicated a slower overall improvement in operating conditions in January, in part stemming from a renewed drop in export orders.” IHS Markit PR link.
***Sunday, February 2
Super Bowl LIV: The Kansas City Chiefs come from behind to win over the San Francisco 49ers 31-20 at Hard Rock Stadium in Miami, Florida. Highlights.
***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 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 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 1 week
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