International Trade Issues Heat Up In August 2019 for The PBR1000
Go/Stop/Caution US/China trade negotiations have affected companies like The PBR1000 and stock markets throughout 2019, the US has still not ratified the US/Mexico/Canada agreement, UK’s Brexit attempts have had an effect as well. Let’s hope for more green lights for the rest of 2019.
By Larry C. Paxton
The August 2019 breaking news items of interest for The PBR1000 follow with the most current date first.
***Friday, August 30:
The PBRMarketTools US Stock Exchanges Recap for Week 35 and the month of August ending 08/30/19:
DJIA ends Week 35 and August at 26,403.28, +3.02% from last Friday, -1.72% MTD, -0.74% QTD, +13.19% YTD, -3.49% from record 27,359.16 set 07/15/19.
NASDAQ ends Week 35 and August at 7,962.88, +2.72% from last Friday, –2.60% MTD, -0.54% QTD, +20.01% YTD, -4.41% from record 8,330.21 set 07/26/19.
SPX ends Week 35 and August at 2,926.46, +2.79% from last Friday, -1.81% MTD, -0.52% QTD, +16.74% YTD, -3.29% from record 3,025.86 set 07/26/19.
The Week 35 and August News Summary: On the international front the G-7 meeting in France concluded with a US/Japan deal and signals by both the US and China that eased trade tensions. The UK continues to struggle on Brexit issues with the October 31 deadline approaching. For the month US/China trade dominated the news, and mostly in a negative way as both sides announced tariffs to go into effect, but mellowed out in the last week. Throughout the month the US economic data continued to indicate modest to moderate growth, but slowing as well, and whispers of recession being imminent increased a little bit. Corporate earnings were mostly mixed with a few pleasant surprises. After a 4 wild weeks run by The Stock Market Bear it was time for The Stock Market Bull to regain the pasture, winning Week 35 easily, but having to concede August to The Stock Market Bear.
The Week 35 of 2019 tally YTD is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 12 weeks
Mixed Results: 6 weeks
The Monthly 2019 YTD(8 months through August) tally is:
The Stock Market Bull: 6 months
The Stock Market Bear: 2 months
Mixed Results: 0 months
AT&T(PBR9 $T) says it’s reached tentative 5 year agreements with the Communications Workers of America District 3 union representing about 20,000 workers in nine states in the Southeast. MarketWatch PR link.
NGL Energy(PBR120) authorizes up to $150 million share repurchase program through 09/30/21. $NGL PR link.
Allergan(PBR196) to pay $1.9 million to Summit County, OH and $3.1 million to Cuyahoga County, OH as part of settlement of trial scheduled in 10/19 in the federal opioid multidistrict litigation. $AGN PR link.
Alcoa(PBR234) reaches a tentative agreement with the United Steelworkers on a new 4-year labor agreement for approximately 1,700 active employees at five US locations. $AA PR link.
Insight(PBR412) completes $35/share $581 million cash and debt acquisition of IT products and services provider PCM(NASDAQ: PCMI). $NSIT PR link.
Arthur J Gallagher(PBR428) acquires Mission Viejo, CA based medical, dental, vision, life, AD&D and disability insurance plans to university postdoctoral scholars and visiting scholars, as well as health insurance plans to university students benefits broker and consultant Garnett-Powers & Associates Insurance Services, terms not disclosed. $AJG PR link.
The US Dept of Commerce/BEA says US Preliminary July 2019 Total Personal Income Annual Rate is at $18.703 trillion, +0.1% from June 2019, +6.3% from July 2018, Personal Savings Annual Rate is at $1.269 trillion, for a +7.7% Savings Rate. USDOC PR link.
The US Dept of Treasury says the US National Debt on 08/29/19 was Debt Held By Public$16.570 trillion, Intragovernmental $5.897 trillion, Total $22.467 trillion, +2.0% from 07/31/19, +2.2% from 12/28/18, +4.7% from 08/31/18. USTreasury PR link.
The U of Michigan says the US Final August 2019 Consumer Survey Index is at 89.8, July 2019 was at 98.4, June 2019 98.2, 96.2. “While the overall level of sentiment is still consistent with modest gains in consumption, the data nonetheless increased the likelihood that consumers could be pushed off the “tariff cliff” in the months ahead.” UMichigan PR link.
The Federal Reserve Bank of Chicago says the US 7th District Preliminary July 2019 Midwest Economic Index is at -0.27, June 2019 is at -0.30. ChiFed PR link.
MNI/ISM says the Chicago August 2019 Business Barometer(>50=economy gaining) is at 50.4, July 2019 was at 44.4, June 2019 49.7, August 2018 63.6. “The survey still suggests a softer overall tone in business activity despite the August pick-up in sentiment, as the three-month average fell again, dipping to 48.2.” MNI/ISM PR link.
The American Automobile Assn says the US Regular Gas Average Price on 08/30/19 is at $2.58/gallon, -5.2% from 07/31/19, -9.1% from 08/31/19. AAA PR link.
***Thursday, August 29:
Walt Disney(PBR52) sells its 80% equity interest in the YES Network to newly formed investor group of Yankee Global Enterprises and Sinclair Broadcast(PBR720), among others, for $3.47 billion, deal part of consent decree with the US Dept of Justice that allowed Disney’s acquisition of 21st Century Fox. $DIS PR link.
Tech Data(PBR83) adds $200 million to share repurchase program, balance is now around $275 million. $TECD PR link.
AbbVie(PBR92) discontinues research and development program of Rovalpituzumab Tesirine (Rova-T) as a first-line maintenance therapy for advanced small-cell lung cancer. $ABBV PR link.
Deere & Co(PBR82) President/COO John C. May becomes member of the Board, to become CEO on 11/04/19, to succeed Chairman/CEO Samuel R. Allen, who will remain Chairman. $DE PR link.
The US Dept of Commerce/BEA says the US 2Q19 2nd Estimate of Gross Domestic Product Annual Rate of Growth is at +2.0%, $21.339 trillion, +1.1% from 1Q19, +4.0% from 2Q18. USDOC PR link.
The US Dept of Labor says the US 08/24/19 Initial Unemployment Insurance Claims 4 Week Moving Average is at 214,250, +0.7% from 07/20/19, +1.1% from 08/25/18; The 08/17/19 Total Insured Unemployment 4 Week Moving Average is at 1,697,250, +0.0% from 07/13/19, -2.0% from 08/18/18; Insured Unemployment Rate remains at 1.2%. USDOL PR link.
FreddieMac(PBR39) says the US Average 30 Year Fixed Home Mortgage Rate on 08/29/19is at 3.58% with 0.5 points/fees, on 07/25/19 it was 3.75% , on 06/27/19 3.73%, on 08/31/18 4.52%. $FMCC PR link.
***Wednesday, August 28:
Facebook(PBR56) provides updates on policies and requirements for ads about social issues, elections or politics in the US. $FB PR link.
American Airlines(PBR66) to hire 400+ new Tech Ops team members for its Tulsa, OK commercial aviation base maintenance facility, the largest in the world. $AAL PR link.
Tesla(PBR140) launches Tesla Insurance in California, plans to expand to other states in the future, provides Tesla owners with up to 20% lower rates, and in some cases as much as 30%. $TSLA PR link.
Marriott Intl(PBR147) to replace tiny, single-use toiletry bottles of shampoo, conditioner and bath gel in guestroom showers with larger, pump-topped bottles in all properties by 12/20, to prevent about 500 million tiny bottles annually from going to landfills. $MAR PR link.
Pilgrim’s Pride(PBR282) to acquire around $1.2 billion in annual sales, 6,000 employees, largest pig producer in the UK with 12 fresh and value-added operations Tulip Limited from Danish Crown for $354 million cash. $PPC PR link.
Coty(PBR326) and Younique have agreed to part, Coty will sell its controlling stake to Younique’s original founders, terms not disclosed. $COTY PR link.
Hain Celestial(PBR818) completes sale of $200 million in revenues anticipated in FY2019 premium basmati and specialty rice brand Tilda® to EBRO FOODS S.A. for $342 million cash. $HAIN PR link.
Fitbit(PBR958) launches Fitbit Premium, a new health and fitness app subscription service, $9.99/mo or $79.99 annually, also announces Fitbit Versa 2 smartwatch and Fitbit Aria Air, a Bluetooth smart scale. $FIT PR link.
Medtronic(PBR95) Chairman/CEO Omar Ishrak to retire as CEO on 04/26/20, will become Executive Chairman, EVP Restorative Therapies Geoff Martha appointed corporate president, to become member of the Board on 11/01/19, become CEO on 04/27/20. $MDT PR link.
The US Energy Information Administrationsays the US 08/23/19 Crude Oil Stocks are at 427.8 million barrels, -2.0% from 07/26/19, +5.4% from 08/24/18. EIA PR link.
TrueCar’s ALG unit says US August 2019 New Auto Sales to be at around 1,602,276 vehicles, +8.1% from August 2018, Average Transaction Price is $34,278, Average Incentive Outlay$3,825, Used Vehicle Sales expected to reach 3,350,362 down 0.2% year-over-year and flat from 07/19. TrueCar PR link.
***Tuesday, August 27:
Costco(PBR14 $COST) overwhelmed by massive crowds during its first opening in China in Shanghai. MarketWatch PR link.
Philip Morris(PBR36) confirms it is in discussions with Altria(PBR112) regarding a potential all-stock merger of equals. $PM PR link.
Lithia Motors(PBR255) has acquired Hazelton, PA auto dealership Hazelton Honda, anticipates annual revenues of around $50 million, terms not disclosed. $LAD PR link.
Alaska Air(PBR363) and two unions ratify new five year agreements covering 5,200 employees. $ALK PR link.
Hershey(PBR381) to expand snack bar portfolio with acquisition of maker of a line of low-sugar, high-protein nutrition bars ONE Brands for $397 million, to close in 4Q19. $HSY PR link.
Deluxe Corp(PBR889) appoints Cheryl Mayberry McKissack to be Non-Executive Chair, effective 08/22/19, succeeds Martyn Redgrave who remains on the Board. $DLX PR link.
The Federal Reserve Bank of Richmond says the US 5th District August 2019 Manufacturing Index(Annualized) is at +1%, July 2019 was at -12%, June 2019 +2%, August 2018 +21%. “Firms reported increasing capital expenditures and inventories, but the measure of local business conditions was slightly negative. Manufacturers were, however, optimistic that conditions would improve in the next six months.” RichmondFed PR link.
The Federal Reserve Bank of Richmond says the US 5th District August 2019 Service Sector Revenue Index(Annualized) is at +6%, July 2019 was at +11%, June 2019 +16%, August 2018 +26%. “Respondents … reported growth in the average workweek but continued to struggle to find workers with the necessary skills. They expected this difficulty to persist in the near future.” RichmondFed PR link.
The Conference Board says the US Preliminary August 2019 Consumer Confidence Index(1985=100) is at 135.1, July 2019 was at 135.8, June 2019 124.3, August 2018 134.7. “… While other parts of the economy may show some weakening, consumers have remained confident and willing to spend. However, if the recent escalation in trade and tariff tensions persists, it could potentially dampen consumers’ optimism regarding the short-term economic outlook.” TCB PR link.
The S&P CoreLogic Case-Shiller US Preliminary June 2019 National Home Price Index(01/2000=100) is at 210.71, May 2019 was at 209.49, April 2019 207.85, June 2018 204.31. “The U.S. National Home Price NSA Index YOY price change in June 2019 of 3.1% is exactly half of what it was in June 2018. While housing has clearly cooled off from 2018, home price gains in most cities remain positive in low single digits. Therefore, it is likely that current rates of change will generally be sustained barring an economic downturn.” Case-Shiller PR link.
***Monday, August 26:
Johnson & Johnson(PBR35) to appeal Oklahoma‘s $572 million civil judgment, says its Janssen unit did not cause the opioid crisis in Oklahoma. $JNJ PR link.
Target(PBR38) and Walt Disney(PBR52) to launch 25 Disney stores within select Target stores nationwide on 10/04/19, with 40 additional locations opening by 10/31/20, an all-new, Disney focused digital experience is available on Target.com today. $TGT PR link.
Cisco(PBR62) to acquire Salt Lake City, UT privately-held contact center predictive analytics developer and provider CloudCherry, terms not disclosed, to close by 01/31/20. $CSCO PR link.
Oracle(PBR78 $ORCL) files new appeal over Pentagon’s $10B JEDI cloud contract RFP process. TechCrunch PR link.
Eli Lilly(PBR116) gets US FDA approval for Taltz® (ixekizumab) injection 80 mg/mL for the treatment of adults with active ankylosing spondylitis (AS), also known as radiographic axial spondyloarthritis (r-axSpA), affects 1.6 million people in the US. $LLY PR link.
Bristol-Myers Squibb(PBR132) says that Celgene(PBR203), in connection with its $74 billion merger agreement with Bristol-Myers Squibb and to satisfy US regulatory requirements, to sell its global rights to OTEZLA® (apremilast) to Amgen(PBR123) for $13.4 billion cash. $BMY PR link.
TechnipFMC(PBR334) to spinoff as two separate independent companies, 15,000 employees SpinCo, a downstream global energy company headquartered in Paris, France, and 22,000 employees RemainCo energy technology and services provider headquartered in the UK and Houston, TX, to be completed in 1H20. $FTI PR link.
Agilent Technologies(PBR532) completes $1.165 billion acquisition of privately-owned global designer, manufacturer and distributor of life science instrumentation BioTek Instruments. $A PR link.
Pitney Bowes(PBR661) to sell its Software Solutions business to Syncsort for $700 million in cash, to close by 12/31/19. $PBI PR link.
Verisk Analytics(PBR830) to acquire UK based Daily Mail and General Trust(Lon:DMGT)‘s global provider of real-time data and intelligence for commodity and energy markets Genscapefor $364 million cash. $VRSK PR link.
Kaman Corp(PBR911) completes $700 million cash sale of its 2,200 employees $1.1 billion in revenues in 2018 Distribution segment to affiliates of Littlejohn & Co. $KAMN PR link.
AT&T(PBR9)‘s biggest business unit, AT&T Communications, CEO John Donovan to retire effective 10/01/19, successor to be named later. $T PR link.
Aramark(PBR195) Chairman/President/CEO Eric Foss retires, to remain in advisory capacity until 10/02/19, Lead Independent Director Stephen Sadove named non-Executive Chairman, Office of the CEO formed, successor search starts. $ARMK PR link.
LAM Research(PBR279) Chairman Stephen G. Newberry to retire on 11/04/19, lead independent director Abhijit Y. Talwalkar to be successor. $LRCX PR link.
The US Federal Reserve Bank of Chicagosays the US Preliminary July 2019 National Activity Index is at -0.36, June 2019 was at +0.03, May 2019 -0.10, July 2018 +0.27. ChiFed PR link.
***Friday, August 23:
The PBRMarketTools US Stock Exchanges Recap for Week 34 ending 08/23/19:
DJIA ends Week 34 at 25,628.90, -0.99% from last Friday, -4.60% MTD, -3.65% QTD, +9.87% YTD, -6.32% from record 27,359.16 set 07/15/19.
NASDAQ ends Week 34 at 7,751.77, -1.83% from last Friday, -5.18% MTD, -3.18% QTD, +16.83% YTD, -6.94% from record 8,330.21 set 07/26/19.
SPX ends Week 34 at 2,847.11, -1.44% from last Friday, -4.47% MTD, -3.22% QTD, +13.57% YTD, -5.91% from record 3,025.86 set 07/26/19.
The Week 34 News Summary: The same old story continues as the big news of the week again was US/China trade issues as both China and the US threatened or imposed additional tariffs on each other. The US economy continues to be good, as indicated in the FOMC minutes released during the week, but the word “recession” keeps popping up more and more, while the global economy continues to shift down, and will be a discussion item at the G-7 meeting that starts this weekend in France. Corporate earnings were again mixed. Through Thursday it looked like it was going to finally be a week for The Stock Market Bull, but Friday’s tariffs war changed all that and sent the stock exchanges into a near death spiral much to The Stock Market Bear‘s delight as he claims another 3-0 victory, his 4th week in a row.
The Week 34 of 2019 tally YTD is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 12 weeks
Mixed Results: 6 weeks
Dick’s Sporting Goods(PBR352 $DKS)removed hunting category, including guns, from 125 more stores. MarketWatch PR link.
Insperity(PBR628) adds 700,000 shares to share repurchase program, around 1,519,000 shares now available. $NSP PR link.
Tractor Supply(PBR377) extends employment contract by 1 year for CEO Greg Sandfort who will continue to serve as CEO until a successor is appointed and will assist in the transition. $TSCO PR link.
The US Dept of Commerce/HUD says the US Preliminary July 2019 New Family Home Sales Annual Rate is at 635,000 units, -12.8% from June 2019, +4.3% from July 2018; July 2019 Median New Home Sales Price is at $312,800, +2.2% from June 2019, -4.5% from July 2018. USDOC PR link.
***Thursday, August 22:
World Fuel(PBR77) to acquire Universal Weather and Aviation’s Houston, TX based 5,000 locations UVair® fuel business for around $170 million, to close by 12/31/19. $INT PR link.
Raytheon(PBR106) to build a 200,000 sf facility supporting 500 new high-tech jobs at its Space and Airborne Systems headquarters in McKinney, TX, construction will be completed in late 2020. $RTN PR link.
Las Vegas Sands(PBR228) decides not to pursue Osaka, Japan integrated resorts, will focus on Tokyo and Yokohama for new developments. $LVS PR link.
MGM Resorts(PBR256) reaffirms its commitment to an integrated resort in Osaka, Japan. $MGM PR link.
Univar(PBR343) to change its corporate name to Univar Solutions Inc, effective 09/01/19, will retain UNVR ticker symbol. $UNVR PR link.
Hasbro(PBR552) to acquire Canada based global independent studio that specialises in the development, acquisition, production, financing, distribution and sales of entertainment content, including popular pre-teen characters Peppa Pig and PJ Masks, Entertainment One Ltd(LSE: ETO) for around $4.0 billion cash, a 31% premium, to close in 4Q19. $HAS PR link.
Bristow Group(PBR966) files ammended Chapter 11 plan of reorganization, Court has approved the proposed Superpriority Secured Debtor-in-Possession Credit Agreement for an aggregate principal amount of $150 million, plans to emerge from Chapter 11 in 4Q19. $BRSWQ PR link.
HP Inc(PBR54) President/CEO Dion Weisler stepping down and returning to Australia due to family health issues, effective 10/31/19, President of HP’s Imaging, Printing and Solutions Enrique Lores appointed President/CEO, effective 11/01/19. $HPQ PR link.
The Conference Board US Preliminary July 2019 Leading Economic Index(2016=100) is at 112.2, June 2019 was at 111.7, May 2019 111.8, July 2018 110.9. “While the LEI suggests the US economy will continue to expand in the second half of 2019, it is likely to do so at a moderate pace.” TCB PR link.
***Wednesday, August 21:
Amazon(PBR5) opens new 84,000 sf office in downtown Portland, OR, for its Portland Tech Hub, to create 400 new high tech jobs. $AMZN PR link.
JPMorgan Chase(PBR26 $JPM) to incorporate Chase Pay app in more merchant websites and apps, to close stand-alone Chase Pay app in early 2020. MarketWatch PR link.
Kinder Morgan(PBR220) to sell the US portion of the Cochin Pipeline to Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) for $2.5 billion in cash/stock deal. $KMI PR link.
O’Reilly Automotive(PBR321) to acquire Guadalajara, Mexico based 1,100 employees automotive aftermarket parts in Mexico, operating five distribution centers, 20 Orma Autopartes stores and serving over 2,000 independent jobber locations in 28 Mexican states specialty retailer Mayasa, all stock transaction, to close in 4Q19. $ORLY PR link.
Vistra Energy(PBR330) to retire 4 coal-fueled power power plants in Illinois to meet the requirements of the recently approved revisions to the Multi-Pollutant Standard rule imposed by the Illinois Pollution Control Board, 300 jobs to be eliminated. $VST PR link.
UGI Corp(PBR388) completes $35.33/share, $2.45 billion acquisition of the remaining 74% of shares it did not own of largest US retail propane marketer AmeriGas Partners(NYSE: APU). $UGI PR link.
Columbia Sportwear(PBR765) purchases 3 buildings for $33 million near its Portland, OR, headquarters, 200,000 sf, 1 building to be available in 06/20, the other two in 06/21. $COLM PR link.
Splunk(PBR922) to acquire SignalFx, an SaaS provider in real-time monitoring and metrics for cloud infrastructure, microservices and applications, for $1.05 billion, 60% cash, 40% stock, to close by 01/31/20. $SPLK PR link.
Fitbit(PBR958) will be collaborating with Singapore’s Health Promotion Board on a healthy population project in support of Singapore’s Smart Nation initiative. $FIT PR link.
PerkinElmer(PBR767) Chairman/CEO Robert F. Friel to retire after 20+ years with the company on 12/29/19, President/COO Prahlad Singh appointed to the Board, effective immediately, to also become CEO on 12/30/19, lead director Alexis Michas to become Non-Executive Chairman. $PKI PR link.
The Federal Reserve Open Market Committee released the minutes from its 07/30-31/19 meeting, says, “Both total and core inflation were projected to move up slightly next year, as the low readings early this year were expected to be transitory, but nevertheless to continue to run below 2 percent.” FOMC PR link.
The US Dept of Labor/BLS says that the revised the Current Employment Statistics (CES) survey employment estimates indicate that 501,000 fewer non-farm jobs were created since March 2019 than previously reported, final report to be released in 02/20. USDOL PR link.
The Natl Assn of Realtors says the US Preliminary July 2019 Existing Home Sales Annual Rate is at 5,420,000 units, +2.5% from June 2019, +0.6% from July 2018, Median Sale Price is $280,800, -1.7% from June 2019, +4.3% from July 2018, Housing Inventory is at 1,920,000, Housing Inventory Available at 4.2 months. NAR PR link.
***Tuesday, August 20:
Walmart(PBR1 $WMT) sues Tesla(PBR140 $TSLA) over solar-panel rooftop fires.Morningstar PR link.
Facebook(PBR56) announces smartphone users can see and control the data that apps and websites share with Facebook. $FB PR link.
Tesla(PBR140) CEO Elon Musk tweets that a new residential solar roof rent option is available, starts at $50/mo, no longterm contract, can cancel at any time. $TSLA PR link.
Jacobs Engineering(PBR205) to acquire UK based 2,000 employees, $285 million in revenues/2019 program management technical and consulting services in areas such as decommissioning, nuclear new build and operational support in the civil nuclear and defense segments provider John Wood Group’s Nuclear business for an enterprise value of around $300 million, to close by 03/31/20. $JEC PR link.
Uber(PBR270 $UBER) to establish a new US General and Administrative Hub that will house various corporate functions in Dallas, TX, will create 3,000 new jobs and more than $75 million in capital investment, will also receive a Texas Enterprise Fund (TEF) grant of $24,000,000. Office of Texas Governor PR link.
Vistra Energy(PBR330) to acquire Dallas, TX based Ambit Energy with its approximately 1.1 million residential electricity customer equivalents in 17 states for $475 million plus net working capital in an all-cash transaction, to close by 12/31/19. $VST PR link.
Hasbro(PBR552) to begin phasing out plastic from new product packaging, including plastic elements like polybags, elastic bands, shrink wrap, window sheets and blister packs, beginning in 2020, ambition is to eliminate virtually all plastic in packaging for new products by the end of 2022. $HAS PR link.
Sabre Corp(PBR621) to challenge the US Dept of Justice lawsuit seeking to block the $360 million acquisition of Farelogix, reiterates benefits. $SABR PR link.
ScanSource(PBR623) wants to divest certain nondigital distribution businesses in Europe, UK, Mexico, Colombia, Chile, Peru and the Miami-based export operations, had net sales of $623 million for FY2019, have around 490 employees in these area, will focus on US, Canada and Brazil. $SCSC PR link.
Endo Intl(PBR739) to pay $10 million and provide up to $1 million of its Vasostrict® and Adrenalin® products free of charge in agreement with 2 Ohio counties to resolve Track 1 opioid cases, settlement will include no admission of wrongdoing, fault or liability of any kind by the Endo Entities, is based on the avoidance of litigation risk and associated costs. $ENDP PR link.
Plexus(PBR749) authorizes new up to $50 million share repurchase program, expires 09/30/20. $PLXS PR link.
***Monday, August 19:
Walmart(PBR1) partners with Buzzfeed’s Tastyservice, customers can add the entire ingredient list from a menu of 4,000 Tasty videos to their Walmart Online Grocery carts with one click, can then place their order for pickup or home delivery. $WMT PR link.
Amazon(PBR5) to open a new 1+ million sf fulfillment center in West Jordan, UT creating more than 800 full-time jobs starting at $15 an hour with comprehensive benefits, already has 2,000+ employees in Utah. $AMZN PR link.
Target(PBR38) introduces its newest largest owned Food & Beverage brand Good & Gather, will offer a wide range of food and beverage products that prioritize taste, quality ingredients and ease, at a great value, to be available starting 09/15/19. $TGT PR link.
Lowe’s(PBR41) to carry more than 10,000 licensed NFL-branded merchandise items on Lowes.com/NFL, will also have NFL items in select stores. $LOW PR link.
Walt Disney(PBR52) to launch its streaming service Disney+ on 11/12/19 in the US, Canada, and Netherlands, in Australia & New Zealandon 11/19/19, offering Disney+, ESPN+ and Hulu bundle for $12.99/month. $DIS PR link.
Capital One(PBR93) to acquire Tysons Corner, VA based 30 employees investment banking firm focused on serving growth-oriented aerospace/defense, government services and technology companies KippsDeSanto & Co, to close in 3Q19, terms not disclosed. $COF PR link.
Avnet(PBR158) authorizes an additional $500 million share repurchase program, balance available is now $675 million. $AVT PR link.
PG&E(PBR178 $PCG) to face California court trial over its possible liability over the 2017 Tubbs fire. MarketWatch PR link.
Boston Scientific(PBR311) completes $4.2 billion cash acquisition of UK based BTG plc(LSE: BTG), which develops and commercializes products used in minimally-invasive procedures targeting cancer and vascular diseases, as well as specialty pharmaceuticals. $BSX PR link.
Boston Scientific(PBR311) gets US FDA approval of its ImageReady™ MRI labeling for the Vercise Gevia™ Deep Brain Stimulation (DBS) System to be used in a full-body magnetic resonance imaging (MRI) environment which with the Vercise Cartesia™ Directional Lead, is designed to treat the symptoms of Parkinson’s Disease. $BSX PR link.
PolyOne(PBR659) to sell its global provider of formulated PVC and polypropylene based solutions with around $700 million in annual sales Performance Products and Solutions(PP&S) business to SK Capital Partners for $775 million in cash, to close in 4Q19. $POL PR link.
Tailored Brands(PBR693) completes $62 million all cash sale of its corporate apparel business, which had net sales of $235.4 million in fiscal 2018, to a group led by the existing corporate apparel UK executive team. $TLRD PR link.
***Friday, August 16:
The PBRMarketTools US Stock Exchanges Recap for Week 33 ending 08/16/19:
DJIA ends Week 33 at 25,886.01, -0.1.53% from last Friday, -3.64% MTD, -2.68% QTD, +10.97% YTD, -5.38% from record 27,359.16 set 07/15/19.
NASDAQ ends Week 33 at 7,895.99, -0.79% from last Friday, -3.42% MTD, -1.38% QTD, +19.00% YTD, -5.21% from record 8,330.21 set 07/26/19.
SPX ends Week 33 at 2,888.68, -1.03% from last Friday, -3.08% MTD, -1.80% QTD, +15.23% YTD, -4.53% from record 3,025.86 set 07/26/19.
The Week 33 News Summary: The week started off ugly as the US and China exchanged tariffs and currency manipulation threats and actions. Second quarter corporate earningscontinued to be mixed. The US economic indicators still indicate a downward trend of modest and slowing growth. Some have been using the “recession” word to much alarm. As a result the US stock market had 4 volatile days of plus or minus 1% or more with Tuesday being the most dramatic with a 3% plunge for all 3 indices. The Stock Market Bull received some significant injuries in the week as The Stock Market Bear viciously slashed and gashed his way to his 3rd week in a row, and most convincing, 3-0 win.
The Week 33 of 2019 tally YTD is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 11 weeks
Mixed Results: 6 weeks
GE(PBR19) responds to allegations by Harry Markopolos that GE financials contain fraudulent data, says such claims are meritlous, that he did not talk to company, has conflicting interest with a hedge fund with incentives to drive GE stock price down. $GE PR link.
AbbVie(PBR92) gets US FDA approval for RINVOQ™ (upadacitinib), a 15 mg, once-daily oral Janus kinase (JAK) inhibitor, for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate (MTX-IR). $ABBV PR link.
Celgene(PBR204) gets US FDA approval for INREBIC® (fedratinib) for the treatment of adult patients with intermediate-2 or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis. $CELG PR link.
Edwards Lifesciences(PBR644) gets US FDA approval to expand use of the Edwards SAPIEN 3 and SAPIEN 3 Ultra transcatheter heart valve systems to the treatment of severe, symptomatic aortic stenosis (AS) patients who are determined to be at low risk of open-heart surgery. $EW PR link.
The US Dept of Commerce/HUD says the US Preliminary July 2019 New Residential Construction Building Permits Issued Annual Rate is at 1,336,000, +8.4% from June 2019, +1.5% from July 2018. USDOC PR link.
The U of Michigan says the US Preliminary August 2019 Consumer Sentiment Index is at 92.1, July 2019 was at 98.4, June 2019 98.2, December 2018 98.3, August 2018 96.2. “… the August survey indicated some concerns about the future pace of income and job gains. It is likely that consumers will reduce their pace of spending while keeping the economy out of recession at least through mid 2020.” UMichigan PR link.
***Thursday, August 15:
UPS(PBR40) venture capital arm, UPS Ventures, makes a minority investment in autonomous driving company TuSimple, are testing self-driving tractor trailers on a route in Arizona to determine whether the vehicles can improve service and efficiency in the UPS® network. $UPS PR link.
JCPenney(PBR261) will soon be offering in 30 stores a sought-after selection of secondhand women’s clothing and handbags from thredUP, the world’s largest online consignment store featuring like-new styles from leading designers and brands. $JCP PR link.
Leidos(PBR302) completes acquisition of Malvern, PA based nearly 200 staff members independent medical evaluations, medical record reviews, and medical and vocational case management for insurance carriers, employers, law firms, third party administrators, and state and local government provider IMX Medical Management Services and its affiliated businesses, terms not disclosed. $LDOS PR link.
E*Trade(PBR752) CEO/Board member Karl A. Roessner is leaving, will remain as an employee of the Company in an advisory capacity until 12/31/19, COO Michael A. Pizzi appointed CEO and member of the Board, effective 08/15/19. $EFTC PR link.
The US Dept of Labor says US Preliminary 2Q19 Labor Productivity Output/Hour Annual Rate-All Persons is at +2.6%, 1Q19 was at +3.6%, 4Q18 +0.0%, 2Q18 +2.4%. USDOL PR link.
The US Federal Reserve says the US Preliminary July 2019 Total Industrial Production % of Capacity is at 77.5%, June 2019 was at 77.8%, May 77.8%, July 2018 78.8%, Capacity Growth Over Previous Year+2.2%. USFed PR link.
The US Dept of Commerce/Census says the US Preliminary June 2019 Sales-Manufactures was at $506.2 billion, Retailers$455.4 billion, Wholesalers $498.5 billion, Total Sales $1.460 trillion, +0.1% from May 2019, +1.3% from June 2018. USDOC PR link.
The US Dept of Commerce/Census says that the US Advance July 2019 Retail Sales-Retailis at $458.3 billion, Food Services & Drinking Places $65.2 billion, Total Retail Sales $523.5 billion, +0.7% from June 2019, +3.4% from July 2018. USDOC PR link.
The Federal Reserve Bank of New York says the Empire State August 2019 Manufacturing General Business Conditions Index is at +4.8, July 2019 was at +4.3, June 2019 -8.6, August 2018 +24.3. NYFed PR link.
The Federal Reserve Bank of Philadelphia says the 3rd District August 2019 Manufacturing General Activity Indicator is at +16.8, July 2019 was at +21.8, June 2019 +0.3, August 2018 +13.0. PhillyFed PR link.
The Natl Assn of Home Builders/Wells Fargo US August 2019 Housing Market Sentiment Composite Index is at 66, July 2019 was at 65, June 2019 64, August 2018 was at 67. “Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots …” NAHB PR link.
The Economic Policy Institute says CEOs are paid 278 times more than the average U.S. worker. MarketWatch PR link.
***Wednesday, August 14:
The US Dept of Labor says the US Preliminary July 2019 Import Prices were +0.2%, Import Prices Last 12 Months -1.8%, Export Prices+0.2%, Export Prices Last 12 Months -0.9%. USDOL PR link.
***Tuesday, August 13:
Kraft Heinz(PBR108) says in 2Q19 report it is eliminating 400 positions in restructuring effort(pg 24). $KHC PR link.
CBS(PBR213) and Viacom(PBR242) to combine in an all-stock merger, will create a combined company named ViacomCBS with more than $28 billion in revenue, CBS President/CEO Bob Bakish to be ViacomCBS President/CEO, to close by 12/31/19. $CBS PR link.
Advance Auto Parts(PBR318) in 2Q19 report authorizes new $400 million share repurchase program, replaces previous 08/18 authorization for $600 million. $AAP PR link.
Genworth Financial(PBR354) to sell its majority interest in Genworth MI Canada, the largest private sector residential mortgage insurer in Canada, to Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN) for net cash proceeds of $1.8 billion, to close by 12/31/19, should increase the likelihood of subsequently completing the acquisition of Genworth by China Oceanwide Holdings Group by 12/31/19. $GNW PR link.
CIT Group(PBR849) to acquire $6.8 billion in deposits, $4.5 billion of which are HOA deposits from more than 31,000 community associations nationwide, Mutual of Omaha Bank, for $1 billion cash and stock, to close in 1Q20. $CIT PR link.
Qualcomm(PBR131) appoints Mark McLaughlin as Chairman, effective immediately, succeeds Jeff Henderson who remains a Board member. $QCOM PR link.
The US Dept of Labor says the US Preliminary July 2019 Employee Current Average Earnings Per Hour is at $27.98, Average Hours Worked Per Week is at 34.3, Average Current Weekly Earnings are at $959.71, -0.0% from June 2019, +2.6% from July 2018. USDOL PR link.
The US Dept of Labor says the US July 2019 Consumer Price Index-All Items is at +0.3%, June 2019 was at +0.1%, May 2019 +0.1%, July 2018 +0.2%, Last 12 Months +1.8%. USDOL PR link.
The Federal Reserve Bank of New York Center for Microeconomic Data says the US 2Q19 Total Household Debt-Housing Debt is at $9.81 trillion, Non-Housing Debt $4.06 trillion, Total $13.87 trillion, the twentieth consecutive quarter with an increase, and the total is now $1.2 trillion higher, in nominal terms, than the previous peak of $12.68 trillion in the 3Q08. NYFED PR link.
CoreLogic says the US May 2019 Housing Mortgages 30 Days or More Delinquent is at 3.6%, April 2019 was at 3.6%, March 2019 4.0%, May 2018 4.2%. “The 30-plus delinquency rate, the most comprehensive measure of mortgage performance, is at an over 10-year low.” CoreLogic PR link.
***Monday, August 12:
Verizon(PBR18) Media unit to sell its media network powered by a massive community of independent creators and home to 475 million blogs Tumblr service to WordPress parent Automattic, terms not disclosed. $VZ PR link.
Tyson(PBR75) to rebuild fire damaged Kansas beef plant and pay fulltime workers during construction. $TSN PR link.
Universal Forest Products(PBR564) to change its name to UFP Industries, Inc, effective 01/01/20, to restructure from geography emphasis to markets served emphasis, better reflects its wider user base, will retain UFPI stock symbol. $UFPI PR link.
Rite Aid(PBR138) hires Heyward Donigan as CEO and member of the Board, effective immediately, succeeds CEO John Standley who steps down as planned. $RAD PR link.
SpartanNash(PBR371) accepts resignation of President/CEO and Board member Dave Staples, Chairman and former CEO(2008-2017) Dennis Eidson appointed to the additional roles of Interim President/CEO, effective immediately; has made the decision to exit its Indianapolis-based $20 million revenues/year Fresh Kitchenoperations to improve operating earnings and EBITDA results within the Food Distribution segment. $SPTN PR link.
YUM!(PBR485) President/COO David Gibbs to become CEO on 01/01/20, member of the Board on 11/01/19, will succeed Greg Creed who is retiring at end of 2019 after 25 years with YUM! $YUM PR link.
The US Dept of the Treasury says the US July 2019 Federal Government Receipts were $251.3 billion, Outlays $371.0 billion, Deficit$119.7 billion; the US July 2019 Federal Government Receipts YTD(10 months) are at $2.860 trillion, Outlays YTD $3.727 trillion, Deficit YTD $866.8 billion; US July 2018 Federal Government Deficit YTD was $684.0 billion. USTreasury PR link.
***Friday, August 9:
The PBRMarketTools US Stock Exchanges Recap for Week 32 ending 08/09/19:
DJIA ends Week 32 at 26,287.44, -0.75% from last Friday, -2.15% MTD, -1.17% QTD, +12.69% YTD, -3.92% from record 27,359.16 set 07/15/19.
NASDAQ ends Week 32 at 7,959.14, -0.56% from last Friday, -2.65% MTD, -0.59% QTD, +19.95% YTD, -4.45% from record 8,330.21 set 07/26/19.
SPX ends Week 32 at 2,918.65, -0.46% from last Friday, -2.07% MTD, -0.79% QTD, +16.43% YTD, -3.54% from record 3,025.86 set 07/26/19.
The Week 32 News Summary: Over the weekend the US was rocked by more senseless gun violence with shootings in El Paso, TX, and then Dayton, OH, following a shooting a week earlier at the Gilroy Garlic Festival in California. Controversial visits to Dayton and El Paso by President Trump and the First Lady followed, with President Trump saying a solution needs to be found, and might include background checks. The US/China trade warstook a turn down as China devalued its currency to offset the tariffs threatened by President Trump, who also indicated at the end of the week that scheduled trade talks next week might not occur, that he was not in a hurry to make a trade deal. As 2nd quarter corporate earnings reports wind down the results are very mixed. Economic reports like wholesale trade and the Producer Price Index continue to indicate a modestly growing economy at this time. The Stock Market Bear had his best day in a long time on Monday with all 3 major US exchanges finishing around 3% off from the previous Friday. But The Stock Market Bull countered aggressively Tuesday through Thursday to get back even, but was too exhausted to complete the comeback on Friday. The Stock Market Bear wins Week 32, his second week in a row, 3-0.
The Week 32 of 2019 tally YTD is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 10 weeks
Mixed Results: 6 weeks
Gilead Sciences(PBR133) gets China National Medical Products Administration (NMPA)approval for Biktarvy® (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF), a once-daily single tablet regimen (STR) for the treatment of HIV-1infection, 150,000 new HIV-1 cases reported in China in 2018. $GILD PR link.
PG&E(PBR178) in 2Q19 report says it has taken an additional $3.9 billion pre-tax charge for estimated third-party claims related to the 2017 Northern California wildfires and the 2018 Camp fire. $PCG PR link.
Sears(PBR180 $SHLDQ) parent Transform Holdings(aka the new Sears) to close an additional 26 Sears and Kmart stores, liquidation sales to start 08/15/19. MarketWatch PR link.
Netflix(PBR194 $NFLX) snags ‘Game of Thrones’ creators David Benioff and D.B. Weiss away from HBO in $200-$300 million mega-deal to create and develop series and movies exclusively for the streaming giant.MarketWatch PR link.
JCPenney(PBR261) confirms receipt of NYSE listing non-compliance for stock price being under $1.00 per share for 30 or more days, has 6 months to remedy, might do a reverse stock split at next shareholders annual meeting. $JCP PR link.
Diplomat Pharmacy(PBR497) is reviewing strategic alternatives to increase shareholder value, includes possible sale or merger. $DPLO PR link.
The US Dept of Labor says the US Preliminary July 2019 Producer Price Index for Final Demand-Goods is +0.4%, Services -0.1%, Total Final Demand +0.2%, June 2019 was at +0.1%, May 2019 +0.1%, July 2018 +0.1%, Last 12 Months +1.7%. USDOL PR link.
***Thursday, August 8:
The July 2019 Snapshot 15 Summary: The PBR1000 Top 5 By Market Capitalization (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 07/31/19 Market Capitalization):
1. Microsoft, PBR25, $MSFT, $1,075 billion
2. Apple, PBR3, $AAPL, $961 billion
3. Amazon.com, PBR5, $AMZN, $939 billion
4. Alphabet, PBR15, $GOOG, $851 billion
5. Facebook, PBR56, $FB, $562 billion
Range: $1,075 billion to $0.00 billion
Total: $28.524 trillion, +3.23% from 06/28/19, +20.72% from 12/31/18, +10.08% from 12/29/17
Average: $28.524 billion
Median: $8.09 billion
Archer-Daniels-Midland(PBR48) extends current 100,000,000 shares repurchase program from 12/31/19 expiration to 12/31/24, adds an additional 100,000,000 shares to the program. $ADM PR link.
American Airlines(PBR66) announces first entrance to Africa with flights to Morocco starting in 05/20, expands other international flights into Eastern Europe. $AAL PR link.
Starbucks(PBR115) and global partner Nestleannounce a new premium coffee experience for Chinese consumers with the introduction of Starbucks At Home and “We Proudly Serve Starbucks® Coffee” integrated business solutions in Foodservice channels, includes 21 products, including whole bean and roast and ground packaged coffees, as well as the first-ever jointly developed Starbucks capsules. $SBUX PR link.
Broadcom(PBR146) to acquire the enterprise security business of Symantec(PBR541) for $10.7 billion in cash, to close by 1Q20. $AVGO PR link.
Occidental(PBR160) completes $55 billion acquisition of Anadarko(PBR233), includes $17 billion of debt. $OXY PR link.
Graphic Packaging(PBR472) to make $600 million investment in a new coated recycled board (CRB) machine in the Midwest with annual capacity of approximately 500,000 tons. $GPK PR link.
Conduent(PBR505) in 2Q19 report says it will conduct both a strategic and operational review of the company and each line of business; CEO search process suspended in conjunction with the review. $CNDT PR link.
Roper Technologies(PBR518) to acquire cloud-based software solutions provider for the life insurance and annuity industries serving over 500,000 agents iPipeline for $1.625 billion cash, to close in 3Q19. $ROP PR link.
Laureate Education(PBR683) authorizes new up to $150 million stock repurchase program of its Class A common stock, expects to complete by 06/30/20. $LAUR PR link.
La-Z-Boy(PBR934) to close its Redlands, CA, upholstery manufacturing facility in 10/19 and move production to available capacity at its other N American facilities, will impact 350 employees; will transition the leather cut-and-sew operation from its Newton, MS upholstery manufacturing plant to its other N American-based cut-and-sew facility, will affect 105 of 525 employees at that location. $LZB PR link.
Vitamin Shoppe(PBR995) to be acquired by Liberty Tax(OTC PINK: TAXA) for $6.50/share, $208 million cash, a 43% premium to its closing share price on 08/07/19, to be completed in 4Q19. $VSI PR link.
The US Dept of Commerce/Census says the US Preliminary June 2019 Wholesale Sales-Durable Goods was at $241.2 billion, Non-Durable Goods $257.3 billion, Total $498.5 billion, -0.3% from May 2019, -0.2% from June 2018. USDOC PR link.
***Wednesday, August 7:
The July 2019 Snapshot 12 Summary: The PBR1000 Top 5 Stock Price Performers Since 12/29/17(19 Months)(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 07/31/19 Stock Price, % Increase from 12/31/18):
1. AMD, PBR444, $AMD, $30.45, +196%
2. Chipotle, PBR536, $CMG, $795.53, +175%
3. Rent-A-Center, PBR794, $RCII, $27.03, +144%
4. FTI Consulting, PBR884, $FCN, $104.45, +143%
5. Square, PBR691, $SQ, $80.41, +132%
Range: +196% to -99%
Number of Companies at 0% or Better:482/993
Average: +7.12%(PBR399)
Median: -1.59%(PBR496)
DJIA: +8.68%
NASDAQ: +18.43%
SPX: +11.47%
Tomorrow: The PBR1000 July 2019 Top 5 By Market Capitalization.
Walmart(PBR1 $WMT) considering strategic options for its Modcloth unit acquired in 2017.Glossy PR link.
FedEx(PBR43 $FDX) to end ground deliveries for Amazon(PBR5), contract ends after 08/31/19. MarketWatch PR link.
Nike(PBR79) has acquired Celect, a leading retail predictive analytics and demand sensing firm based in Boston, MA, terms not disclosed. $NKE PR link.
Salesforce(PBR238) to acquire cloud based field service management solutions developer and provider ClickSoftware for around $1.35 billion, to close by 10/31/19. $CRM PR link.
Huntsman(PBR328) to sell its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses located in Texas and Australia to Indorama Ventures for $2.076 billion, to close by 12/31/19. $HUN PR link.
AMC Entertainment(PBR499) crosses 900,000 members paying $19.95-$23.95/month, depending on state, for its AMC Stubs A-Listprogram. $AMC PR link.
IAC(PBR589) in 2Q19 letter to shareholders says it is considering spinning its two large publicly traded subsidiaries, MTCH and ANGI, evaluating options, also is largest investor with $250 million large minority investment in new global marketplace called Turo, a car sharing service provider. $IAC PR link.
TransDigm(PBR631) to sell its Esterline Interface Technologies group of businesses, part of 03/19 acquisition of Esterline Technologies, to an affiliate of KPS Capital Partners for approximately $190 million,to close in 1Q20. $TDG PR link.
Barnes & Noble(PBR659) $6.50/share, around $683 million acquisition by UK affiliates of Elliott Management is completed. $BKS PR link.
Groupon(PBR795) launches Groupon Select, a $4.99/mo membership program, benefits include an extra 25% off local deals in your neighborhood, an extra 15% off plus free shipping on all Groupon Goods orders and an extra 10% off travel, live events and tickets. $GRPN PR link.
Blue Apron($APRN) to end pilot partnership with Walmart(PBR1 $WMT)’s Jet.com but continue with WW(PBR957 $WW)(fka Weight Watchers). MarketWatch PR link.
Conduent(PBR505) President/COO Cliff Skelton appointed interim CEO, effective immediately, succeeds Ashok Vemuri per plan announced 05/08/19. $CNDT PR link.
The US Federal Reserve System says the US Preliminary June 2019 Consumer Credit Outstanding-Revolving is at $1.072 trillion, Non-Revolving $3.031 trillion, Total $4.102 trillion, +0.4% from May 2019, +2.3% YTD(7 Months), +5.3% from June 2018. USFED PR link.
FannieMae(PBR21) says the US July 2019 Home Purchase Sentiment Index is at 93.7, June 2019 was at 91.5, May 2019 92.0, July 2018 86.5. “Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges…” $FNMA PR link.
***Tuesday, August 5:
The July 2019 Snapshot 12 Summary: The PBR1000 Top 5 Stock Price Performers YTD(7 Months)(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 07/31/19 Stock Price, % Increase from 12/31/18):
1. Diebold Nixdorf, PBR554, $DBD, $13.91, +459%
2. Snap, PBR990, $SNAP, $16.80, +205%
3. Avon Products, PBR492, $AVP, $4.25, +180%
4. SunPower, PBR936, $SPWR, $11.69, +135%
5. FannieMae, PBR21, $FNMA, $2.28, +115%
Range: +459% to -99%
Number of Companies at 0% or Better:777/994
Average: +19.92%(#440)
Median: +17.19%(#497)
DJIA: +15.16%
NASDAQ: +23.21%
SPX: +18.89%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/29/17(19 Months).
Amazon(PBR5) expanding test of Amazon Scout self-driving delivery cooler sized 6 wheel vehicle currently available near Amazon’s Seattle headquarters to include Irvine, CA. $AMZN PR link.
Amazon(PBR5) starts new and current Prime Student members subscription to Amazon Music Unlimited to get more than 50 million songs plus thousands of curated playlists and stations at the new price of $0.99/month. $AMZN PR link.
Walt Disney(PBR52 $DIS) sets high bar with new $12.99 streaming bundle for Disney+, ESPN+ and Hulu, to be available 11/12/19.MarketWatch PR link.
Cisco(PBR62) to acquire privately held Mountain View, CA based meeting transcription, voice search, and meeting highlights/action items, with robust data privacy provider Voicea, terms not disclosed. $CSCO PR link.
Aramark(PBR195) authorizes up to $200 million share repurchase program, expires 07/31/22. $AMRK PR link.
Aramark(PBR195) acquires privately-held Good Uncle, an app-based on-demand food delivery service that brings freshly prepared, restaurant quality meals to conveniently located pick-up points around college campuses, terms not disclosed. $ARMK PR link.
MasterCard(PBR208) to acquire the clearing and instant payment services, and e-billing solutions businesses of European paytech company Nets’ Corporate Services unit for approximately $3.19 billion, to close in 1H20. $MA PR link.
CBS(PBR213) and Nextstar Media(PBR770)sign multi-year agreement that renews CBS network affiliations for Nexstar stations in fifteen markets that reach approximately 5% of the US audience and nearly six million households. $CBS PR link.
Viacom(PBR242) to acquire Paws, Inc., the entity holding global intellectual property rights to the Garfield and the U.S. Acres franchises, including corresponding rights related to content, consumer products, and location-based experiences, to close in the upcoming weeks. $VIA PR link.
Fox Corp(PBR304) Entertainment division has acquired Emmy® Award-winning animation studio production company Bento Box Entertainment, developer of “Bob’s Burgers. $FOX PR link.
Fifth Third Bancorp(PBR375) will raise its minimum wage to $18/hour for approximately 4,900 employees beginning 10/28/19, previously raised minimum wage from $12/hour to $15/hour in 01/18. $FITB PR link.
Kelly Services(PBR495) President/CEO George Corona to retire on 09/30/19, will remain on the Board, EVP Peter Quigley to become President/CEO and Board member on 10/01/19. $KELYA PR link.
The US Dept of Labor says the US Preliminary June 2019 Job Openings-Private were at 6,629,000, Government 719,000, Total7,348,000, -0.5% from May 2019, -0.6% from June 2018. USDOL PR link.
The PurdueU/CME Group US July 2019 Ag Economy Barometer Composite Index is at 153, June 2019 was at 126, May 2019 101, July 2018 117. “… the big driver of the overall sentiment improvement was producers’ improved perspective on current conditions.” PurdueU/CME PR link.
***Monday, August 5:
The July 2019 Snapshot 11 Summary: The PBR1000 Top 5 Month Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 07/31/19 Stock Price, % Increase from 06/28/19):
1. Tower Intl, PBR951, $TOWR, $30.80, +58%
2. Dean Foods, PBR384, $DF, $1.45, +58%
3. Diebold Nixdorf, PBR554, $DBD, $13.91, +52%
4. Quad/Graphics, PBR595, $QUAD, $11.31, +43%
5. GNC, PBR839, $GNC, $2.08, +39%
Range: +58% to -73%
Number of Companies at 0% or Better:550/1,000
Average: +0.84%(#482)
Median: +0.69%(#500)
DJIA: +0.99%
NASDAQ: +2.11%
SPX: +1.31%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/31/18(7 Months).
Hewlett Packard Enterprises(PBR97) has acquired the business assets of MapR, a leading data platform for artificial intelligence and analytics applications powered by scale-out, multi-cloud and multi-protocol file system technology, terms not disclosed. $HPE PR link.
Textron(PBR226) is reviewing strategic alternatives for its Bonn, Germany based Kautex business unit, which produces fuel systems and other functional components, operates over 30 plants in 14 countries and generated over $2.3 billion in revenue in 2018, options include a sale, tax-free spin-off or other transaction. $TXT PR link.
Fox Corp(PBR304) to acquire 67% of equity in provider of a differentiated and personalized experience for consumers to compare instant, accurate pre-qualified rates from multiple financial institutions across student loans, personal loans and mortgages Credible Labs(ASX: CRD) for around $265 million, will commit an additional $75 million of growth capital over 2 years, to close in 4Q19. $FOX PR link.
LPL Financial(PBR519) completes acquisition of 33 advisors, $3 billion in client assets, Allen & Company of Florida, terms not disclosed. $LPLA PR link.
Gannett(PBR745) to be acquired by New Media Investment Group(NYSE: NEWM) for $12.06/share cash and stock, around an 18% premium, around $1.35 billion, New Media’s current Chairman/CEO Michael Reed to be lead executive, Gannett’s newly appointed CEO Paul Bascobert will become CEO of the combined company’s operating subsidiary. $GCI PR link.
The Institute for Supply Management says the US July 2019 Non-Manufacturing Index(>50%=Economy growing) is at 53.7%, June 2019 was at 55.1%, May 2019 56.9%, July 2018 56.7%. “Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy.” ISM PR link.
The IHS Markit US July 2019 Composite PMI Output Index is at 52.6, June 2019 was at 51.5, May 2019 50.9, July 2018 55.7. “The rise was led by service providers who registered a faster increase in output, with manufacturers only recording a slight upturn in production.” IHS Markit PR link.
TD Ameritrade(PBR500) reviews its July 2019 Investor Movement Index(IMX) for the record month. $AMTD PR link.
***Friday, August 2:
The PBRMarketTools US Stock Exchanges Recap for Week 31 ending 08/02/19:
DJIA ends Week 31 at 26,485.01, -2.60% from last Friday, -1.41% MTD, -0.43% QTD, +13.54% YTD, -3.20% from record 27,359.16 set 07/15/19.
NASDAQ ends Week 31 at 8,004.07, -3.92% from last Friday, -2.10% MTD, -0.03% QTD, +20.63% YTD, -3.92% from record 8,330.21 set 07/26/19.
SPX ends Week 31 at 2,932.05, -3.10% from last Friday, -1.62% MTD, -0.33% QTD, +16.96% YTD, -3.10% from record 3,025.86 set 07/26/19.
The Week 31 News Summary: At the beginning of the week most attention was focused on the US Federal Reserve. On Wednesday they knocked 0.25% off the federal short term funds rate. International trade was also a hot issue as the US/China talks appear to not have made much progress, they plan to meet again in September. N Korea lobbed some missiles into the sea as a protest against planned US/S Korea military exercises. In US politics the Democrats held their second round of debates featuring 20 wannabe challengers to President Trump, former VP Joe Biden continues to be the leader. Capital One announced that information on 100 million US people had been hacked. Corporate earnings were mostly mixed. The US economyis growing modestly, but jobs and wage growth are bright spots. The Stock Market Bearseverely clawed The Stock Market Bull, especially after the funds rate cut, and eagerly takes Week 31 3-0.
The Week 31 of 2019 tally YTD is:
The Stock Market Bull: 16 weeks
The Stock Market Bear: 9 weeks
Mixed Results: 6 weeks
Manpower(PBR134) authorizes new 6 million shares share repurchase program, is in addition to the share repurchase program authorized in 08/18, of which approximately 1.9 million shares remained available on 06/30/19. $MAN PR link.
YUM(PBR485 $YUM) Pizza Hut unit will close hundreds of locations to focus on carry out and delivery. MarketWatch PR link.
Hill-Rom(PBR758) to acquire Irvine, CA based $10 million in revenues/year Breathe Technologies, Inc, developer and manufacturer of a patented wearable, non-invasive ventilation technology that supports improved patient mobility, for $130 million cash. $HRC PR link.
Bristow Group(PBR966) files Chapter 11 plan of reorganization and a related disclosure statement with the US Bankruptcy Court, reaffirms plan to emerge from Chapter 11 Bankruptcy in 4Q19. $BRSWQ PR link.
The US Dept of Labor says that the US July 2019 Available Work Force is at 163,351,000, Employed at 157,288,000, +223,000 from June 2019, +1,264,000 from July 2018, Unemployedat 6,123,000, +147,000 from June 2019, -122,000 from July 2018, Unemployment Rateis at 3.7%, June 2019 was at 3.7%, July 2018 was at 3.8%. USDOL PR link.
The US Dept of Commerce says the US June 2019 Exports-Goods were at $137.1 billion, Services $69.2 billion, Total Exports $206.3 billion, June 2019 Imports-Goods were at $212.2 billion, Services $49.2 billion, Total Imports $261.4 billion, June 2019 Deficit $55.1 billion, June 2019 Deficit YTD(6 months) is at $316.3 billion, June 2018 Deficit YTD was $293.7 billion. USDOC PR link.
The US Dept of Commerce/Census says the US Preliminary June 2019 Manufacturing New Orders-Durable Goods were at $245.4 billion, Non-Durable Goods $248.4 billion, Total Manufacturing Orders $493.8 billion, +0.6% from May 2019, -1.6% from June 2018, June 2019 Total YTD(6 months) is at $2.982 trillion, +0.6% from June 2018 Total YTD. USDOC PR link.
The U of Michigan US Final July 2019 Consumer Sentiment Index is at 98.4, June 2019 was at 98.2, May 2019 100.0, July 2018 97.9. “… consumers do not anticipate a rapid acceleration in income growth rates, nor do they expect significant changes in inflation and unemployment rates. Consumers have not ignored mounting policy uncertainties as they have begun to take precautionary measures to increase savings and reduce debt.” UMichigan PR link.
***Thursday, August 1:
DuPont(PBR34) in 2Q19 report says it has authorized a $2 billion share repurchase program, $250 million repurchased to date. $DD PR link.
Target(PBR38) is celebrating the 20th anniversary of its first designer partnership, bringing back nearly 300 original, iconic items from 20 past designer partnerships, scheduled for Fall 2019. $TGT PR link.
Lowe’s(PBR41 $LOW) eliminating thousands of jobs, to outsource jobs of maintenance and assembly workers to third-party companies. MSN PR link.
3M(PBR90) completes $230 million sale of its 500 employees gas and flame detection business to Teledyne(PBR747). $MMM PR link.
3M(PBR90) says over 5,000 lawsuits against the 3M™ Bair Hugger™ system have been dismissed in Minnesota federal court, decision does not dismiss two similar cases filed in state courts in Missouri and Texas. $MMM PR link.
Salesforce(PBR236) completes $15.7 billion all-stock acquisition of self-service analytics platform provider Tableau Software(NYSE: DATA). $CRM PR link.
Icahn Enterprises(PBR289) completes around $550 million sale of its 77% stake in majority-owned subsidiary Ferrous Resources Limitedto a wholly-owned subsidiary of Brazil based Vale SA. $IEP PR link.
Campbell Soup(PBR340) to sell its Australia brand Arnott’s, $885 million in the latest 12 months and approximately 3,800 employees, and certain of Campbell’s International operations to KKR(PBR832) for $2.2 billion cash, to close in 1H20. $CPB PR link.
Dick’s Sporting Goods(PBR351) launches its own apparel brand, DSG, available at its stores and its online site only. $DKS PR link.
UGI Corp(PBR389) Energy Services subsidiary completes around $1.275 billion acquisition of Columbia Midstream Group of a subsidiary of TC Energy Corporation (NYSE: TRP). $UGI PR link.
TreeHouse Foods(PBR479) completes $90 million sale of its Snacks Division, to generate around $670 million in revenues in 2019, to 17,000 employees in 150 locations worldwide Atlas Holdings. $THS PR link.
Western Union(PBR489) in 2Q19 report says implementing a new Global Strategy designed to drive improved efficiency, profitability, and long-term revenue growth, will include headcount reduction of approximately 10% and a consolidation of corporate and business offices. $WU PR link.
Terex(PBR521) has completed the sale of its Demag® Mobile Cranes business to Tadano Ltd for an enterprise value of approximately $215 million. $TEX PR link.
SAIC(PBR546) COO Nazzic S Keene is now CEO as planned, succeeds Tony Moraco who has retired. $SAIC PR link.
Penn Natl Gaming(PBR656)‘s Tim Wilmott to retire as CEO and Board member effective 12/31/19, President/COO Jay Snowden to be successor on 01/01/20. $PENN PR link.
GoDaddy(PBR795) CEO Scott Wagner is stepping down for health reasons, effective 09/04/19, Aman Bhutani hired as successor. $GDDY PR link.
The US Dept of Commerce/Census says the US Preliminary June 2019 Construction Spending Annual Rate-Residential is at $513.2 billion, Non-Residential was at $773.8 billion, Total $1.287 trillion, -1.3% from May 2019, -2.1% from June 2018. USDOC PR link.
The Institute for Supply Management says the US July 2019 Manufacturing PMI Index(>50%=economy expanding) is at 51.2%, June 2019 was at 51.7%, May 2019 52.1%, July 2018 58.1%. “Respondents expressed less concern about U.S.-China trade turbulence, but trade remains a significant issue. More respondents noted supply chain adjustments as a result of moving manufacturing from China. Overall, sentiment this month is evenly mixed…” ISM PR link.
The IHS Markit US July 2019 Manufacturing PMI is at 50.4, June 2019 was at 50.6, May 2019 50.5, July 2018 55.3. “The latest reading signalled a fractional improvement in the health of the manufacturing sector, but also indicated the slowest overall expansion since the height of the financial crisis in September 2009.”IHS Markit PR link.
***Wednesday, July 31:
The PBRMarketTools US Stock Exchanges Recap for July 2019 ending 07/31/19:
DJIA ends July 2019 at 26,864.27, -1.21% from last Friday, +0.99% MTD/QTD, +15.16% YTD, -1.81% from record 27,359.16 set 07/15/19.
NASDAQ ends July 2019 at 8,175.42, -1.86% from last Friday, +2.11% MTD/QTD, +23.21% YTD, -1.86% from record 8,330.21 set 07/26/19.
SPX ends July 2019 at 2,980.38, -1.50% from last Friday, +1.31% MTD/QTD, +18.89% YTD, -1.50% from record 3,025.86 set 07/26/19.
The July 2019 YTD(7 months) tally is:
The Stock Market Bull: 6 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
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