International Trade Issues Continue To Dominate The PBR1000 News
There are a lot of puzzle pieces to put together for a good strategy in today’s business environment. Don’t lose any of the pieces!
By Larry C. Paxton
The June 2019 breaking news items of interest for The PBR1000 follow with the most current date first.
***Friday, June 28:
The PBRMarketTools US Stock Exchanges Recap for the End of June and Week 26 of 2019 ending 06/28/19:
DJIA ends June 2019 and Week 26 at 26,599.96, -0.45% from last Friday, +7.19% MTD, +2.59% QTD, +14.03% YTD, -0.85% from record 26,828.39 set 10/03/18.
NASDAQ ends June 2019 and Week 26 at 8,006.24, -0.32% from last Friday, +7.42% MTD, +3.58% QTD, +20.66% YTD, -1.93% from record 8,164.00 set 05/03/19.
SPX ends June 2019 and Week 26 at 2,941.76, -0.29% from last Friday, +6.89% MTD, +3.79% QTD, +17.35% YTD, -0.42% from record 2,954.18 set 06/20/19.
The June 2019 and Week 26 News Summary:The first half of 2019 ends with the primary news focused around international trade, including the ongoing US/China negotiations, issues with the USMCA to replace NAFTA, which the Mexican government approved and the Canadians are expected to approve, the UK Brexit concerns which is resulting in a new prime minister to be elected, and new Iran sanctions as the result of its shooting down a US drone. The US economy continues to grow at a moderate pace with some signs of more slowing because of the threat of tariffs on China and possibly other countries. The FOMC kept short term federal interest rates at 2.25-2.50% and seems leaning towards a possible cut at the next meeting to boost the economy. For Week 26 the drama has been the anticipation of President Trump’s participation at the G-20 summit in Japan, especially his planned meeting with China’s Premier Xi, more sanctions on Iran and sword rattling on both sides, Federal Reserve Chairman Powell’s comments on the US economy and possible direction of Fed policy, and the start of the 2020 presidential election with the 2 nights of debates of the 20 Democrat candidates that qualified. For Week 26 The Stock Market Bear enjoyed the turmoil and just nicked a full 3-0 victory. However, June 2019 was the best stock market result in June over the past 80 years, with ending levels at about the same as for the end of April 2019, before the May 2019 meltdown, so The Stock Market Bullwins the month with a convincing 3-0 result.
The Week 26 YTD tally is:
The Stock Market Bull: 13 weeks
The Stock Market Bear: 7 weeks
Mixed Results: 6 weeks
The Month 6 YTD tally is:
The Stock Market Bull: 5 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
Thermo-Fisher Scientific(PBR117) completes its around $1.14 billion cash sale of its 1,200 employees $350 million in annual revenues microscope slides, instruments and consumables provider Anatomical Pathology to PHC Holdings Corporation. $TMO PR link.
Cummins(PBR121) to acquire fuel cell systems provider Hydrogenics Corporation (NASDAQ: HYGS: TSX: HYG) for $15.00/share in cash, other than shares already owned by The Hydrogen Company, representing an enterprise value of approximately $290 million, to close in 3Q19. $CMI PR link.
Cabot Corp(PBR675) completes the $135 million sale of its Specialty Fluids business to a wholly owned Hong Kong subsidiary of Sinomine Resource Group Co. $CBT PR link.
SunCoke Energy(PBR964) completes all stock acquisition of SunCoke Energy Partners(NYSE: SXCP). $SXC PR link.
Bristow Group(PBR966) has entered into an amended and restated restructuring support agreement with certain of the Company’s secured and unsecured noteholders, who have committed, as part of the transaction, to fund a new debtor-in-possession facility. $BRSWQ PR link.
Cedar Fair(PBR977) completes $150 million acquisition from the City of Santa Clara, CA, of 112 acres upon which its California’s Great America amusement park, acquired in 2006, is located. $FUN PR link.
The US Dept of the Treasury says the US 06/26/19 National Debt-Public is at $16.162 trillion, Intragovernmental Holdings $5.864, Total National Debt $22.026 trillion, +0.0% from 05/31/19, +0.2% YTD(6 months), +3.9% since 05/31/18. USTreasury PR link.
The US Dept of Commerce/BEA says the US Preliminary May 2019 Personal Income Annual Rate is at $18.184 trillion, +0.5% from April 2019, +4.1% from May 2018; the May 2019 Effective Tax Rate is 11.85%, April 2019 was 11.82%, May 2018 11.65%. USDOC PR link.
The US Federal Reserve Bank of Chicagosays the US 7th District Preliminary May 2019 Midwest Economy Index is at -0.28, April 2019 was at -0.02, March 2019 +0.21, May 2018 +0.41. ChiFed PR link.
The MNI June 2019 Chicago Business Barometer(<50 = economy declining) is at 49.7, May 2019 was at 54.2, April 2019 52.6, June 2018 64.1. “… the first sub-50 reading since January 2017… In coming months, our survey will provide further evidence as to whether the diminished business confidence is temporary amid tariffs woes or more structural calling for some counter measures…” MNI PR link.
The U of Michigan US Final June 2019 Consumer Sentiment Index is at 98.2, May 2019 was at 100.0, April 2019 97.2, June 2018 98.2. “While more negative trade news will act to decrease consumer spending, the persistent overall strength in consumer confidence is still consistent with growth of real personal consumption expenditures by 2.5% during the next twelve months.” UMich PR link.
The American Automobile Assn says the Average Price for a Gallon of Regular Gas on 06/28/19 is at $2.708, on 05/31/19 it was at $2.825, 04/30/19 $2.882, 06/29/18 $2.853. AAA PR link.
***Thursday, June 27:
Amazon(PBR5) launches its Counter service in the US, a new network of staffed pickup points that gives customers the option to pick up their Amazon packages in-store at a partner location at no extra cost, starting in over 100 Rite Aid(PBR137) stores, to be in 1,500 Rite Aid locations by the end of 2019. $AMZN PR link.
Capital One(PBR92) to purchase up to $2.2 billion of common stock through 2Q20. $COF PR link.
Devon Energy(PBR286) completes its $2.8 billion sale of its Canadian business to Canadian Natural Resources Limited, expects to divest its Barnett Shale gas assets in north Texas by end of 2019. $DVN PR link.
Wayfair(PBR429 $W) gets protest from some employees regarding its decision to sell beds and other items that will furnish detention centers for migrants at the southern border.MarketWatch PR link.
Brunswick(PBR520) completes $490 million cash sale of its Fitness business to private investment firm KPS Capital Partners, will now focus solely on its marine platform. $BC PR link.
WABCO(PBR630) shareholders approve $136.50/share, $7+billion acquisition by privately held global leader in driveline and chassis technologies ZF Friedrichshafen AG, to close in early 2020. $WBC PR link.
CDK Global(PBR855) plans to divest its Digital Marketing Business, to focus on the building momentum in the core auto software business and to accelerate growth in fiscal 2020. $CDK PR link.
Chico’s FAS(PBR875) Board unanimously rejects revised unsolicited proposal from Sycamore Partners to acquire the Company for $3.00/share in cash, substantially undervalues Chico’s FAS. $CHS PR link.
The US Dept of Commerce/BEA says the US 1Q19 3rd Estimate Gross Domestic Productremains at 3.1%, $21.060 trillion, +0.9% from 4Q18, +5.1% from 1Q18. USDOC PR link.
The US Dept of Labor says the US Initial Unemployment Claims 4 Week Moving Average for Week Ending 06/22/19 was at 221,250, +2.1% from 05/25/19, -0.3% from 06/23/19; Total Insured Unemployment 4 Week Moving Average for Week Ending 06/15/19 was at 1,686,750, +0.9% from 05/18/19, -1.9% from 06/16/19; Insured Unemployment Rate remains at 1.2%. USDOL PR link.
FreddieMac(PBR39) says the US Average 30 Year Fixed Mortgage Rate on 06/27/19 was at 3.73% with 0.5 points/fees, 05/30/19 was at 3.99%, 04/25/19 4.20%, 06/28/18 4.55%. $FMCC PR link.
***Wednesday, June 26:
Danaher(PBR155) to spinoff 3 Dental segment business units to form separate 12,000 employees independent public company Envista, to be completed in 2H19. $DHR PR link.
Occidental(PBR159) gets SEC filing by Icahn Enterprises(PBR288) requesting replacement of 4 Board members, amendment to Charter and Bylaws to give shareholders the right to vote on the $38 billion acquisition of Anadarko(PBR233). $OXY PR link.
Kaman Corp(PBR912) to sell its 2,200 employees $1.1 billion in revenues in 2018 Distribution segment to affiliates of Littlejohn & Co for $700 million cash, to close 3Q19. $KAMN PR link.
Newell Brands(PBR343) EVP/CFO Christopher Peterson to also be Interim CEO, effective 06/28/19, to succeed President/CEO Michael Polk who is retiring as planned on 06/30/19, search for external hire as permanent CEO continues. $NWL PR link.
The US Dept of Commerce/BEA says the US Preliminary 1Q19 International Position-Assets is at $27.138 trillion, Liabilities $37.067 trillion, for a Deficit of $9.929 trillion, +3.9% from 4Q18, +26.8% from 1Q18. USDOC PR link.
The US Energy Information Administrationsays that the US Crude Oil Stocks on 06/21/19were at 469.6 Million Barrels of Oil, -1.5% from 05/24/19, +12.7% from 06/22/18. EIA PR link.
***Tuesday, June 25:
Amazon(PBR5) schedules Amazon Prime Day 2019 for July 15 and 16, will feature more than one million deals globally. $AMZN PR link.
GE(PBR19) and the Coordinated Bargaining Committee (CBC) of GE unions, representing 11 unions with around 6,600 members, concluded negotiations with a new proposed four-year collective bargaining agreement by the Company, to be ratified on 07/03/19. $GE PR link.
FedEx(PBR46) files suit in US District Court seeking to enjoin the US Dept of Commerce from enforcing prohibitions contained in the Export Administration Regulations (“EAR”)against FedEx which believes that the EAR violate common carriers’ rights to due process under the Fifth Amendment of the US Constitution as they unreasonably hold common carriers strictly liable for shipments that may violate the EAR without requiring evidence that the carriers had knowledge of any violations. $FDX PR link.
AbbVie(PBR91) to acquire Dublin, Ireland-based developer, manufacturer and commercializer of branded pharmaceutical, device, biologic, surgical and regenerative medicine products Allergan(PBR194) for $188.24/share cash/stock, a 45% premium from the 06/24/19 closing price, equity value of around $63 billion, to close by early 2020. $ABBV PR link.
Chipotle(PBR536) launches new crew bonus program that gives hourly employees the opportunity to earn up to an extra month’s pay each year. $CMG PR link.
Crane(PBR688) says CIRCOR International(NYSE: CIR) revised business plan claims are highly unrealistic and illustrates why Crane’s superior, all-cash offer of $45 per share represents the best option for CIRCOR shareholders. $CR PR link.
The US Dept of Commerce/HUD says the US Preliminary May 2019 New Family Home Sales Annual Rate is at 629,000 units, -7.4% from April 2019, -3.2% from May 2018; May 2019 Median Home Price is at $308,000, -8.1% from April 2019, -2.7% from May 2018; May 2019 New Homes Available is at 333,000, +0.3% from April 2019, +10.3% from May 2018. USDOC PR link.
The US Federal Reserve Bank of Richmond says the US 5th District June 2019 Manufacturing Index is at +3%, May 2019 was at +5%, April 2019 +3%, June 2018 +21%. “Most firms reported some improvement in local business conditions, and they were optimistic that they would see growth in the next six months.” RichmondFed PR link.
The US Federal Reserve Bank of Richmond says the US 5th District June 2019 Service Sector Revenue Index is at +17%, May 2019 was at +1%, April 2019 +26%, June 2018 +19%. “Respondents were optimistic that growth would continue in the coming months.” RichmondFed PR link.
The S&P CoreLogic Case-Shiller Preliminary April 2019 National Home Price Index(01/2000=100) is at 207.97, March 2019 was at 206.06, February 2019 204.75, April 2018 200.85. Case-Shiller PR link.
The Conference Board says the US Preliminary June 2019 Consumer Confidence Index(1985=100) is at 121.5, May 2019 was at 131.3, April 2019 129.2, June 2018 127.1. “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence. Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.” TCB PR link.
***Monday, June 24:
Bristol-Myers Squibb(PBR131) planning the divestiture of OTEZLA® (apremilast) per concerns by the US Federal Trade Commission, to close $74 billion acquisition of global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases Celgene(PBR220) by early 1Q20. $BMY PR link.
Wellcare Health Plans(PBR151) $305.39/share cash & stock, $17.3 billion acquisition by Centene(PBR50) approved by shareholders of both organizations, on track to close 1H20. $WCG PR link.
Allergan(PBR194) gets US FDA clearance for its magnetic muscle stimulation technology CoolTone device for improvement of abdominal tone, strengthening of the abdominal muscles, and development for firmer abdomen, also for strengthening, toning and firming of buttocks and thighs. $AGN PR link.
Reinsurance Group of America(PBR256)completes $2.9 billion annuity reinsurance transaction with Horace Mann Life Insurance Company, a subsidiary of Horace Mann Educators Corporation (NYSE: HMN). $RGA PR link.
Caesars Entertainment(PBR356) to be acquired by Eldorado Resorts(NASDAQ: ERI)for $12.75/share, for $17.3 billion cash/stock, includes assumption of Caesars outstanding net debt, will create the largest US gaming company, will retain the Caesars name, to close in 1H20. $CZR PR link.
Insight(PBR413) to acquire IT products and services ptovider PCM(NASDAQ: PCMI) for $35/share, a 36% premium to its 1-month average as of 06/21/19, enterprise value of $581 million, includes cash and debt. $NSIT PR link.
Crane(PBR688 $CR) cash tender offer to acquire CIRCOR International(NYSE: CIR) for $45/share, a 47% premium over the market close on 05/20/19, is unanimously rejected by CIRCOR Board, says undervalues company and is low-value, highly conditional and opportunistic and not in the best interests of CIRCOR shareholders. Circor PR link.
Axalta(PBR546) Chairman Charlie Shaver resigns after 6 years, effective 06/30/19, current Independent Presiding Director Mark Garrett appointed Chairman. $AXTA PR link.
The US Federal Reserve Bank of Chicagosays the US Preliminary May 2019 National Activity Index is at -0.05, April 2019 was at -0.48, March 2019 +0.02, May 2018 -0.41. ChiFed PR link.
***Friday, June 21:
The PBRMarketTools US Stock Exchanges Recap for Week 25 of 2019 ending 06/21/19:
DJIA ends Week 25 at 26,719.13, +2.41% from last Friday, +7.67% MTD, +3.05% QTD, +14.54% YTD, -0.41% from record 26,828.39 set 10/03/18.
NASDAQ ends Week 25 at 8,031.71, +3.01% from last Friday, +7.76% MTD, +3.91% QTD, +21.05% YTD, -1.62% from record 8,164.00 set 05/03/19.
SPX ends Week 25 at 2,950.46, +2.20% from last Friday, +7.21% MTD, +4.09% QTD, +17.70% YTD, -0.13% from record 2,954.18 set 06/20/19.
The Week 25 News Summary: The biggest economic news of the week was the Federal Open Market Committee keeping short term federal funds interest rates at 2.25-2.50% and signaling possible rate cuts in the near future. Economic indices were mostly mixed and indicating slower growth. Trade issues also dominated the news as it was announced US President Trump and China’s Chairman Xi will be having extended discussions during the upcoming G-20 summit. Also, Mexico became the first country to approve the new USMCA trade agreement that replaces NAFTA. Canada’s Prime Minister Trudeau made a special trip to the US to talk to US lawmakers to encourage them to do the same. Iran shot down a US drone increasing tensions in the Mideast. The US stock exchanges had another big week, the S&P500 broke its closing record and the DJIA is very close. The Stock Market Bull overwhelmed The Stock Market Bear for the week, easily winning 3-0, but took Friday off. The Stock Market Bear responded with a timid appearance.
The Week 25 YTD tally is:
The Stock Market Bull: 13 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 6 weeks
Fred’s(PBR983) to close another 49 stores, following announcements of 263 closures the past 2 months. MarketWatch PR link.
The US Federal Reserve says “the US’s largest and most complex banks have strong capital levels that would allow them to stay well above their minimum requirements after being tested against a severe hypothetical recession… the most severe hypothetical scenario projects $410 billion in total losses for the 18 participating bank holding companies. This scenario featured a global recession with the U.S. unemployment rate rising by more than 6 percentage points to 10 percent, accompanied by a large decline in real estate prices and elevated stress in corporate loan markets.” USFed PR link.
The Natl Assn of Realtors says US Preliminary May 2019 Existing Home Sales Annual Rate is at 5,340,000, +2.5% from April 2019, -1.1% from May 2018; May 2019 Median Home Sale Price is $277,700, +3.9% from April 2019, +4.8% from May 2018; May 2019 Median Days On Market was 26, April 2019 was 24, May 2018 was 26. NAR PR link.
***Thursday, June 20:
Walmart(PBR1 $WMT) agrees to pay more than $144 million to US Security and Exchange Commission and approximately $138 million to the US Dept of Justice for a combined total of more than $282 million for violating the Foreign Corrupt Practices Act (FCPA) by failing to operate a sufficient anti-corruption compliance program for more than a decade. SEC PR link.
Amazon(PBR5) unveils its Off-to-College store, students can browse a wide range of essentials with low prices for their dorm, classes and extracurricular activities in one place. $AMZN PR link.
CVS Health(PBR8 $CVS) files lawsuit against Amazon(PBR5) claiming it is seeking to disrupt the pharmacy industry with its newly acquired subsidiary PillPack. Barron’s PR link.
Alphabet(PBR15)’s Waymo unit enters into an exclusive partnership with Renault and Nissanon behalf of The Alliance to explore driverless mobility services for passengers and deliveries in France and Japan. $GOOG PR link.
AECOM(PBR153 $ACM) 4.0% stakeholder activist investor Starboard Value sends letter saying Management Services spinoff is potentially a positive development, is just one piece of a broader set of opportunities to unlock significant value, believes AECOM is deeply undervalued, provides some ideas. Starboard Value PR link.
Chipotle(PBR536) providing catering, includes three different build you own options. $CMG PR link.
Quad/Graphics(PBR596 $QUAD) $1.4 billion all shares acquisition of print and digital media solutions provider LSC Communications(PBR631) receives lawsuit to block the deal by the US Dept of Justice, says necessary to preserve competition in the markets for magazine, catalog, and book printing services in the US. DOJ PR link.
Quad/Graphics(PBR596) intends to vigorously defend its proposed $1.4 billion all shares acquisition of LSC Communications(PBR631)in response to the US Dept of Justice lawsuit seeking to block the acquisition. $QUAD PR link.
Sprouts(PBR515) hires Jack Sinclair as CEO, effective 06/24/19; Brad Lukow, CFO and interim co-CEO, has resigned to pursue other opportunities. $SFM PR link.
The US Dept of Commerce/BEA says US Preliminary 1Q19 Exports of Goods and Services was at $945.9 billion, Imports were at $1.076 trillion, for a Deficit of $130.4 billion, -9.4% from 4Q18, +14.4 from 1Q18. USDOC PR link.
The US Federal Reserve Bank of Philadelphiasays the 3rd District June 2019 Manufacturing General Activity Indicator is at +0.3, May 2019 was at +16.6, April 2019 +8.5, June 2018 +20.8. “Most of the survey’s future activity indexes improved but continue to reflect muted optimism for the remainder of the year.” PhillyFed PR link.
The Conference Board says the US Preliminary May 2019 Leading Economic Index(2016=100) is at 111.8, April 2019 was at 111.8, March 2019 111.7, May 2018 109.4. “… the LEI clearly points to a moderation in growth towards 2 percent by year end.” TCB PR link.
***Wednesday, June 19:
UnitedHealth(PBR6 $UNH) agrees to US Federal Trade Commission approval for $4.3 billion acquisition of DaVitaHealth(PBR302 $DVA)’s DaVita Medical Group contingent upon divesting DaVita Medical Group’s healthcare provider organization in the Las Vegas Area (known as HealthCare Partners of Nevada) to Utah-based healthcare provider and insurer Intermountain Healthcare. FTC PR link.
Alphabet(PBR15) rejects shareholder plan to break up company and other proposals during annual shareholders meeting. $GOOG PR link.
Mondelez(PBR108) to acquire a majority interest in San Diego, CA-based pioneer in the fast-growing refrigerated nutrition bars segment Perfect Snacks®, had $70 million in revenues in 2018, terms not disclosed. $MDLZ PR link.
Gilead Sciences(PB132) to make upfront payment of $45 million and up to $2.3 billion in total additional payments based milestone achievements to Nurix Therapeutics in strategic partnership to discover, develop and commercialize a pipeline of innovative targeted protein degradation drugs for patients with cancer and other challenging diseases. $GILD PR link.
PG&E(PBR176) reaches agreements to resolve the wildfire claims held by 18 local public entities (cities, counties, districts and public agencies) impacted by the 2015 Butte Fire, 2017 Northern California wildfires and 2018 Camp Fire, will pay $1 billion as part of a Chapter 11 Plan of Reorganization. $PCG PR link.
ON Semiconductor(PBR476) completes $24.50/share, $1.07 billion all cash acquisition of high performance Wi-Fi solutions developer Quantenna Communications(NASDAQ: QTNA). $ON PR link.
Harley-Davidson(PBR483) to expand access into Asia through a collaboration with Qianjiang Motorcycle Co, to launch a smaller, more accessible Harley-Davidson motorcycle for sale in Harley-Davidson dealerships in China by the end of 2020. $HOG PR link.
Peabody Energy(PBR490) to own 66.5% Arch Coal(PBR826 $ARCH) 33.5% in joint venture to combine the companies’ Powder River Basin and Colorado assets, expected to unlock synergies with a pre-tax net present value of approximately $820 million. $BTU PR link.
Mattel(PBR562 $MAT) ‘…cannot be salvaged’ according to MGA Entertainment CEO, is abandoning pursuit of a merger deal.MarketWatch PR link.
Tempur Sealy(PBR787) to add around 700 US positions to meet growing demand for its Tempur-Pedic, Stearns & Foster and Sealy mattresses and bedding products. $TPX PR link.
Chico’s FAS(PBR875) receives a revised unsolicited proposal from Sycamore Partners to acquire the Company for $3.00/share in cash, will review, rejected previous higher offer of $3.50/share. $CHS PR link.
Pier 1 Imports(PBR954) shareholders approve a 1:20 reverse stock split, to be effective at start of trading 06/20/19. $PIR PR link.
The Federal Open Market Committee releases statement from 06/18-19/19 meeting, says “the labor market remains strong and that economic activity is rising at a moderate rate … decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent… continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased.” FOMC PR link.
***Tuesday, June 18:
Walmart(PBR1) offering online upgrades for Apple and Samsung devices using AT&T wireless services, will be expanding wireless providers, expanding wireless experts in 600 more stores by the holidays, will then be in over 3,000 Walmart stores. $WMT PR link.
Alphabet(PBR15)’s Google unit announces an additional $1 billion investment for 20,000 houses for middle/low income families across the San Francisco Bay Area, includes repurposing Google land and providing incentives for housing developers, 10 year project. $GOOG PR link.
Boeing(PBR28) gets letter of intent at Paris Air Show from International Airlines Group to buy 200 737 MAX aircraft, $24+ billion deal, per list prices. $BA PR link.
Facebook(PBR55) to launch in 2020 its global cryptocurrency, called Libra, through its newly formed Calibra subsidiary, will include a digital wallet and use blockchain technology. $FB PR link.
Cognizant(PBR188) to acquire Cork, Ireland based privately held life sciences manufacturing technology services company with 800+ employees in 16 global locations Zenith Technologies, terms not disclosed. $CTSH PR link.
Kellogg(PBR230) announces reorganization plan which primarily impacts the North America segment in anticipation of the divestiture of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses to Ferrero International SA by the end of 07/19, will take a $35 million pre-tax charge. $K PR link.
NVIDIA(PBR257) selected by Sweden based Volvo Group for using the NVIDIA DRIVE end-to-end autonomous driving platform to train, test and deploy self-driving AI vehicles, targeting public transport, freight transport, refuse and recycling collection, construction, mining, forestry and more. $NVDA PR link.
The Mosaic Co(PBR316) to close Plant Cityphosphates manufacturing facility in Hillsborough County, FL, not cost effective, has been idled since late 2017, will recognize a non-cash charge of up to $390 million in 2Q19. $MOS PR link.
News Corp(PBR332) is actively evaluating strategic options for its News America Marketing business, including a possible sale, has comprehensive in store marketing media options in over 60,000 stores in the US and Canada, and reaches households across the country with circulation of more than 60 million through nearly 2,000 publications. $NWS PR link.
Fifth Third Bancorp(PBR374) announces dividend payments, authorizes new up to 100 million shares for repurchase program, had 22 million left from previous authorization. $FITB PR link.
Lamb Weston(PBR675) opens $250 million 300,000 sf frozen french fries manufacturing expansion in Hermiston, OR, adds 150 jobs, will make nearly 750 million pounds of frozen french fries annually. $LW PR link.
Tempur Sealy(PBR787) signs new long-term supply agreements with Mattress Firm and Big Lots in the US and Beter Bed Holding in Europe, anticipates $400 million in additional annual revenues once implemented. $TPX PR link.
GoPro(PBR994) enhances $4.99/mo PLUS subscription service, includes damaged camera replacement, unlimited cloud storage, 50% off mounts and accessories, VIP support. $GPRO PR link.
The US Dept of Labor says the US 1Q19 Average Wages/Salaries Per Hour-All Workers was at $25.22, Benefits Per Hourwere at $11.55, for a Total Average Hourly Compensation of $36.77, +1.2% from 4Q18, +1.2% from 1Q18. USDOL PR link.
The US Dept of Commerce says the US Preliminary May 2019 New Residential Construction Permits Issued Annual Rate is at 1,294,000, +0.3% from April 2019, -0.5% from May 2018. USDOC PR link.
***Monday, June 17:
AT&T(PBR9) is the winning bidder at $980 million for spectrum licenses covering more than 98% of the U.S. population following the close of FCC Auction 102, will bolster its mobile 5G strategy. $T PR link.
Pfizer(PBR59) to acquire commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases Array BioPharma(NASDAQ: ARRY) for $48/share in cash, for a total enterprise value of around $11.4 billion, to close 2H19. $PFE PR link.
AECOM(PBR153) to spinoff its 25,000 employees with $3.7 billion in revenues in fiscal year 2018 Management Services segment into a public standalone government services company, to be completed in 2H20 fiscal year. $ACM PR link.
Williams Cos(PBR337) completes formation of $3.8 billion venture partnership with the Canada Pension Plan Investment Board, receives approximately $1.33 billion in exchange for a 35% interest in a combined Utica East Ohio Midstream-Ohio Valley Midstream joint venture. $WMB PR link.
Campbell Soup(PBR338) completes $510 million sale of its producer of organic beverages, dressings and carrots Bolthouse Farms to a Butterfly Equity affiliate, a Los Angeles-based private equity firm specializing in the food sector. $CPB PR link.
Domino’s Pizza(PBR672) and robotics company Nuro are partnering on autonomous pizza delivery using the custom unmanned vehicle known as the R2 later this year for select Houston, TX, Domino’s customers who place orders online. $DPZ PR link.
Crane(PBR687) commences cash tender offer to acquire CIRCOR International(NYSE: CIR)for $45/share, a 47% premium over the market close on 05/20/19, to expire at 5:00PM New York City time, on 07/16/19. $CR PR link.
Varian Medical(PBR747) completes $283 million acquisition of privately held $43.5 million in revenues in FY19 university-level, comprehensive treatment for cancer patients provider Cancer Treatment Services International. $VAR PR link.
Middleby(PBR780) acquires Santa Ana, CA-based Ss Brewtech, a professional craft brewing and beverage equipment provider, founded in 2013, has $20 million in annual revenues, will operate as an autonomous business unit, terms not disclosed. $MIDD PR link.
Meredith Corp(PBR860) facilitates a closed sale of Sports illustrated by agreeing to operate the SI media assets for a transition period for up to two years under a licensing agreement with ABG. $MDP PR link.
The Federal Reserve Bank of New York says the Empire State June 2019 Manufacturing General Business Conditions Index is at -8.6, May 2019 was at +17.8, April +10.2, June 2018 +24.4. “Indexes assessing the six-month outlook indicated that firms were less optimistic about future conditions than they were last month.” NYFed PR link.
The Natl Assn of Home Builders Preliminary June 2019 Housing Market Composite Indexis at 64, May 2019 was at 66, April 2019 63, June 2018 68. Headline: “Builder Confidence Solid in June Amidst Growing Economic Uncertainty” NAHB PR link.
Boeing(PBR28) outlook values the aerospace and defense market at $8.7 trillion over the next decade, up from $8.1 trillion a year ago. $BA PR link.
***Friday, June 14:
The PBRMarketTools US Stock Exchanges Recap for Week 24 of 2019 ending 06/14/19:
DJIA ends Week 24 at 26,089.61, +0.41% from last Friday, +5.14% MTD, +0.62% QTD, +11.84% YTD, -2.75% from record 26,828.39 set 10/03/18.
NASDAQ ends Week 24 at 7,796.66, +0.70% from last Friday, +4.61% MTD, +0.87% QTD, +17.50% YTD, -4.50% from record 8,164.00 set 05/03/19.
SPX ends Week 24 at 2,886.98, +0.47% from last Friday, +4.90% MTD, +1.86% QTD, +15.16% YTD, -2.00% from record 2,945.83 set 04/30/19.
The Week 24 News Summary: With the Mexican government taking on more responsibilities for Central America immigrants the threatened US tariffs on Mexican goodsdid not materialize, but there continues to be tension between the US and China as trade talks seemed to have stalled. Oil pricesfluctuated after attacks on 2 oil tankers, allegedly by Iran. The US economy continues to show strength from the latest jobs, producer price index, wages, consumer price index, import/export prices, industrial production, and manufacturers sales & inventories reports, but there was a wider gap than usual between federal government receipts and outlays. The technology sector had a good week. The Stock Market Bull continues to recover from the significant May losses with his 2nd week in a row 3-0 victory over The Stock Market Bear, who was also very active and actually took 3 of the 5 trading days.
The Week 24 YTD tally is:
The Stock Market Bull: 12 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 6 weeks
Abercrombie & Fitch(PBR656) authorizes new share repurchase program of up to 5 million Class A Common shares, now has about 7.6 million shares available, or over 10% of its total shares outstanding. $ANF PR link.
Synopsys(PBR715) replenishes its existing stock repurchase authorization to $500 million. $SNPS PR link.
The US Dept of Commerce/Census says the US Preliminary April 2019 Manufacturers Sales were at $504.1 billion, Retail Sales$454.8 billion, Wholesalers Sales $503.1 billion, Total Sales $1.462 trillion, -0.2% from March 2019, +2.3% from April 2018. USDOC PR link.
The US Dept of Commerce/Census says the US Advance May 2019 Retail Sales-Retail is at $457.2 billion, Food Services & Drinking Places $61.8 billion, Total Retail Sales $519.0 billion, +0.5% from April 2019, +3.2% from May 2018. USDOC PR link.
The US Federal Reserve says the US Preliminary May 2019 Manufacturing Total Industry % of Capacity is at 78.1%, April 2019 was at 77.9%, March 2019 78.4%, May 2018 77.5%. USFed PR link.
The U of Michigan US Preliminary June 2019 Consumer Sentiment Index is at 97.9, May 2019 was at 100.0, April 2019 97.2, June 2018 98.2. UMichigan PR link.
***Thursday, June 13:
ExxonMobil(PBR2) and Saudi Arabia based 50/50 partner SABIC to proceed with the construction of a chemical facility and a 1.8 million metric ton ethane steam cracker, the largest in the world, in San Patricio County, TX, construction to start in 3Q19, in production by 2022. $XOM PR link.
Tyson(PBR74) introduces its first plant-based and blended products, along with its new Raised & Rooted® brand. $TSN PR link.
Twitter(PBR729) removes nearly 4,800 accounts with Iran government connections. $TWTR PR link.
Verso Corp(PBR790) adopts a limited duration stockholder rights plan as it continues to seek a new CEO and review strategic alternatives. $VRS PR link.
KKR(PBR833) to sell its global copper foils and flexible copper clad laminates predominantly used in li-ion batteries for electric vehicle applications producer KCF Technologies unit to SK Group affiliate for $1 billion. $KKR PR link.
Cedar Fair(PBR976) to acquire Schlitterbahn Waterparks and Resorts in New Braunfels, TX, and Galveston, TX, for $261 million, along with the right to acquire an additional 40 acre property in Kansas City, KS, for $6 million cash for future development. $FUN PR link.
Red Robin(PBR978) gets letter from activist investor Vintage Capital critical of current directions and decisions, offers to buy RRGB for $40/share, recommends replacing current Board. $RRGB PR link.
Red Robin(PBR978) says it is surprised by comments on filing by activist shareholder Vintage Capital because of discussions they had had and did not recommend any CEO candidates, reviews its current status regarding a CEO search and corporate directions. $RRGB PR link.
Regis Corp(PBR986) announces the profitable sale and transfer of 96 of its California-based Supercuts® salons to the Moxie Management Group, a portfolio company of a Spanos Barber Jesse & Co managed fund. $RGS PR link.
The US Dept of Labor says the US Preliminary May 2019 All Import Prices Index is at -0.3%, Exports -0.1%; the May 2019 Year-to-Year Import Prices Index is at -1.5%, Exports -0.7%. USDOL PR link.
***Wednesday, June 12:
Ford(PBR12) announces a field service action to correct a suspension issue in certain model year 2011 through 2017 Explorer vehicles, expects to take $180 million charge from its N America business unit in 2Q19. $F PR link.
Facebook(PBR55 $FB) opens engineering center in London dedicated to eliminating harmful content, will add more than 500 tech jobs before the end of the year. MarketWatch PR link.
Jacobs Engineering(PBR204) completes $11.25 per share in cash, with enterprise value, net of tax assets, of approximately $815 million, including an estimated $272 million of net debt, national security provider of advanced engineering and technology solutions for the Intelligence, Cyber and Counterterrorism communities KeyW. $JEC PR link.
BB&T(PBR239) and SunTrust Banks(PBR287)$66 billion merger stock deal to close by end of 4Q19, new name with be Truist. $BBT PR link.
Groupon(PBR798) announces a US distribution partnership with GasBuddy for consumers to earn GasBack rewards for Groupon purchases. $GRPN PR link.
KKR(PBR833) to launch voluntary public tender offer for Germany based media and technology company active in more than 40 countries Axel Springer SE for around $70.55/share, a 40% premium, around $7.6 billion. $KKR PR link.
KKR(PBR833) doubles its investment with additional $250 million commitment to investor of small balance real estate loans throughout the US and the UK, including single-family rental loans and commercial and residential bridge loans, Toorak Capital Partners, which recently completed more than $2.5 billion in investments across more than 8,000 loans in 45 states and the U.K., more than doubling the company’s $1 billion milestone of total loans purchased at this time last year. $KKR PR link.
The US Dept of Treasury says that the US May 2019 Federal Government Receipts were $232.1 billion, Outlays $439.8 billion, for a May 2019 Deficit of $207.8 billion, the May 2018 Deficit was $146.8 billion; The May 2019 YTD Federal Government Receipts(8 Months) is at $2.275 trillion, YTD Outlays $3.014 trillion, for a YTD Deficit of $738.6 billion, the May 2018 YTD Deficit was at $532.2 billion. USTreasury PR link.
The US Dept of Labor says the US Preliminary May 2019 Consumer Price Index-All Items is at +0.1%, April 2019 was at +0.3%, March 2019 +0.4%, May 2018 +0.2%, Last 12 Months +1.8%. USDOL PR link.
The US Dept of Labor says the US Preliminary May 2019 Current Average Earnings/Hour is at $27.83, Average Hours Worked Per Week is at 34.4, Total Average Weekly Earnings are at $957.35, +0.2% from April 2019, +2.8% from May 2018. USDOL PR link.
***Tuesday, June 11:
Amazon(PBR5 $AMZN) to shut down its Amazon Restaurants food delivery service in the 20 US cities it serves on 06/24/19, will also shut down its Daily Dish, a workplace lunch delivery service that launched in 2016, on 06/14/19. GeekWire PR link.
Facebook(PBR55) introduces Study from Facebook, an app for market research, will compensate users. $FB PR link.
Facebook(PBR55 $FB) is building a giant solar farm in Texas for its first direct investment in renewable energy, $416 million project.MarketWatch PR link.
3M(PBR90) to take $160 million pre-tax 2Q19 charge for deconsolidation of its Venezuelan subsidiary, which was effective 05/31/19. $MMM PR link.
Tesla(PBR140) CEO Elon Musk at annual shareholder meeting says the is no demand problem for Tesla vehicles, spoke about the Model Y, Tesla’s next vehicle, the gigafactory under construction in China and a future one in Europe, and promised another Tesla acquisition to ease the company’s entry into insurance.MarketWatch PR link.
VISA(PBR149) announces the commercial launch of the Visa B2B Connect network, giving financial institutions an ability to quickly and securely process high-value corporate cross-border payments globally. $V PR link.
Boston Scientific(PBR310) completes $465 million plus additional milestones achieved payments acquisition of privately-held Superion® Indirect Decompression System developer Vertiflex, anticipates $60 million in revenues in 2019. $BSX PR link.
H&R Block(PBR710) to acquire Toronto, Ontario based 400,000 small businesses globally monthly financial solutions platform provider Wave Financial for $405 million cash, to close in the next few months. $HRB PR link.
Brinker Intl(PBR712) gives DoorDash exclusive agreement to be delivery service for its 1,000+ Chili’s restaurant locations. $EAT PR link.
TEGNA(PBR866) to acquire Indianapolis, IN, NBC television affiliate WTHR, the Columbus, OH, CBS television affiliate WBNS and its sports radio station WBNS, from the Dispatch Broadcast Group, for $535 million in cash, to close 3Q19. $TGNA PR link.
The US Dept of Labor says the US Preliminary May 2019 Producer Price Index Final Demand-Goods was -0.2%, Services +0.3%, Total Final Demand +0.1%, April 2019 was +0.2%, March 2019 +0.6%, May 2018 +0.4%, Last 12 Months +1.8%. USDOL PR link.
CoreLogic says the US March 2019 Housing Loans 30 Days or More Delinquents was at 4.0%, February 2019 was at 4.0%, January 2019 4.0%, March 2018 4.3%, the March 2019 Housing Mortgages in Foreclosure were at 0.4%, March 2018 was at 0.6%. “… the continued improvement in overall mortgage performance bodes well for the health of the U.S. market in 2019.” CoreLogic PR link.
Manpower(PBR135) says US employers are reporting the strongest nationwide hiring intentions in 13 years at +21%, according to the 3Q19 ManpowerGroup Employment Outlook Survey. $MAN PR link.
***Monday, June 10:
Phillips 66(PBR23) and Plains All American Pipeline(PBR87) form 50/50 joint venture Red Oak Pipeline to provide crude oil transportation service from Cushing, OK, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, TX, initial service planned for 1Q21, to cost around $2.5 billion. $PSX PR link.
Target(PBR38) expands family benefits policies for both fulltime and parttime workers, including backup care, new paid family leave, doubling adoption and surragacy reimbursement. $TGT PR link.
Intel(PBR42) to acquire Santa Clara, CA-based Barefoot Networks, provides expertise for cloud network architectures, P4-programmable high-speed data paths, switch silicon development, P4 compilers, driver software, network telemetry and computational networking, to close in 3Q19, terms not disclosed. $INTC PR link.
Merck(PBR70) to acquire privately held therapeutics targeting the latent TGFβ complex for the treatment of cancer, fibrosis and autoimmune diseases biopharmaceutical company Tilos Therapeutics for up to $773 million, includes upfront payment and contingent milestone achievements. $MRK PR link.
Raytheon(PBR105) and United Technologies(PBR45) to combine in merger of equals in all stock transaction, UTX shareholders will own 57% of stock, Raytheon shareholders 43%, will be named Raytheon Technologies, to be headquartered in Boston area, will have pro forma 2019 revenues of $74 billion, to close in 2H20 after UTX completes spinoffs of Carrier and Otis business units. $RTN PR link.
Thermo-Fisher Scientific(PBR118) $925 million acquisition of manufacturer of instrumentation and software used to enhance and extend the operation and performance of electron microscopes Gatan, a wholly owned subsidiary of Roper Technologies(PBR530) is terminated by mutual agreement, unable to get UK regulatory approval. $TMO PR link.
Broadcom(PBR146) gets 2 year agreement to provide Apple(PBR3) with specified, radio-frequency front end components and modules for Apple’s smartphones, tablets and watches, and to maintain and allocate to them sufficient manufacturing capacity and other resources to make these products. $AVGO PR link.
Salesforce(PBR236) to acquire self-service analytics platform provider Tableau Software(NYSE: DATA) in a $15.7 billion all-stock deal, to close by 10/31/19. $CRM PR link.
GameStop(PBR310) to launch a “modified Dutch auction” tender offer to purchase up to 12,000,000 shares of its Class A common stock for not greater than $6.00 and not less than $5.20 per share, to start 06/11/19, expires 07/10/19. $GME PR link.
Apollo Global Mgmt(PBR995) to acquire photo personalization provider Shutterfly(NASDAQ: SFLY) for $51.00/share, around $2.7 billion cash, to close by early 4Q19, will combine it with its Snapfish acquisition, which will close at the same time. $APO PR link.
PVH(PBR314) promotes Cheryl Abel-Hodges to CEO of its Calvin Klein unit, succeeds leaving Steve Shiffman. $PVH PR link.
The US Dept of Labor says the US Preliminary April 2019 Job Openings-Private was at 6,726,000, Government 723,000, Total Openings 7,449,000, -0.3% from March 2019, +4.8% from April 2018. USDOL PR link.
***Friday, June 7:
The PBRMarketTools US Stock Exchanges Recap for Week 23 of 2019 ending 06/07/19:
DJIA ends Week 23 at 25,983.94, +4.71% from last Friday/MTD, +0.21% QTD, +11.39% YTD, -3.15% from record 26,828.39 set 10/03/18.
NASDAQ ends Week 23 at 7,742.10, +3.88% from last Friday/MTD, +0.17% QTD, +16.68% YTD, -5.17% from record 8,164.00 set 05/03/19.
SPX ends Week 23 at 2,873.34, +4.41% from last Friday/MTD, +1.37% QTD, +14.62% YTD, -2.46% from record 2,945.83 set 04/30/19.
The Week 23 News Summary: Despite the continuing focus on the inability on the US and China to come up with a trade deal and none currently in sight, the new 5% tariffs increasing monthly to 25% threatened against Mexico for not helping stem the tide of illegal immigration from Central American countries into the US, and a lackluster US jobs report, the stock exchanges recovered significantly from the losses inflicted in May. A big part of that was the strong possibility of the Federal Reserve cutting short term interest rates, continued low unemployment, a moderate growth report indicated by the Beige Book, a rebound by the tech sector, and maybe because US President Trump was in Europe for the week for the commemoration of the 75th Anniversary of D-Day. The Stock Market Bull had an overwhelming 3-0 win, his first outright weekly victory since 04/05/19, his best week of the year. The Stock Market Bear after some action on Monday decided to leave and become part of a circus disappearing act.
The Week 23 YTD tally is:
The Stock Market Bull: 11 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 6 weeks
Walmart(PBR1) to offer Walmart InHome Delivery starting in the Fall 2019, in Kansas City, MO, Pittsburgh, PA, and Vero Beach, FL, includes in home delivery of groceries and placing them in the refrigerator. $WMT PR link.
FedEx(PBR46) makes strategic decision to not renew the FedEx Express US domestic contract with Amazon(PBR5), will focus on serving the broader e-commerce market, does not affect other contracts with Amazon, represented 1.3% of revenues in 2018. $FDX PR link.
Biogen(PBR239) completes $25.50/share $800 million acquisition of London, UK-based clinical-stage gene therapy company focused on adeno-associated virus (AAV) treatments for inherited retinal disorders Nightstar Therapeutics(NST; Nasdaq: NITE). $BIIB PR link.
Barnes & Noble(PBR647) to be acquired by affiliates of Elliott Management for $6.50/share, around $683 million, to become a private company, CEO will be James Daunt, CEO of UK bookstore chain Waterstones which was acquired by Elliott Management in 06/18, to close in 3Q19. $BKS PR link.
Vertex Pharmaceuticals(PBR721) to expand collaboration with CRISPR Therapeutics (NASDAQ: CRSP) with $175 million upfront payment and up to $1 billion in additional milestone and royalty payments, will acquire Exonics Therapeutics for $245 million as part of a $1 billion deal based on milestone achievements, enhances its gene editing capabilities to develop therapies for Duchenne Muscular Dystrophy (DMD) and Myotonic Dystrophy Type 1 (DM1). $VRTX PR link.
American Equity(PBR945) says it is no longer in discussions regarding a potential transaction, was not in the best interest of shareholders. $AEL PR link.
Alliance Data(PBR379) President/CEO/Board member Ed Heffernan has resigned, Epsilon acquisition has been completed, President of Card Services unit Melisa Miller named President/CEO and member of the Board effective immediately, other senior executive changes announced. $ADS PR link.
The US Dept of Labor says the US May 2019 Employed Workers is at 156,758,000, +113,000 from April 2019, +1,219,000 from May 2018, May 2019 Unemployed is at 5,888,000, +63,000 from April 2019, -240,000 from May 2018, May 2019 Unemployment Rate stays at 3.6%, was 3.8% in May 2018. USDOL PR link.
The US Federal Reserve Board says the US Preliminary April 2019 Total Consumer Debt-Revolving was at $1.065 trillion, Non-Revolving$3.005 trillion, April 2019 Total Consumer Debt$4.070 trillion, +0.4% from March 2019, +1.5% YTD(4 months), +5.1% from April 2018. USFed PR link.
The US Dept of Commerce/Census says the US Preliminary April 2019 Wholesale Sales-Durables was at $240.4 billion, Non-Durables$262.7 billion, Total $503.1 billion, -0.4% from March 2019, +2.7% from April 2018. USDOC PR link.
The FannieMae(PBR21) US May 2019 Home Purchase Sentiment Index is at 92.0, April 2019 was at 88.3, March 2019 89.8, May 2018 92.3. Headline: “Americans’ Confidence in Housing Nears Survey High, Despite Moderating Optimism About Wage Growth and Job Security.” $FNMA PR link.
***Thursday, June 6:
Ford(PBR12) British subsidiary to take $650 million pre-tax charge mostly in 2019 to exit the Ford Bridgend Engine Plant in South Wales, will cease production during 2020. $F PR link.
Alphabet(PBR15)’s Google unit to acquire unified platform for business intelligence, data applications and embedded analytics Looker for $2.6 billion cash, will become part of Google Cloud. $GOOG PR link.
Alphabet(PBR15)’s Google unit announces first collection of games for its Stadia service, Stadia Founder’s Edition discounted from $300 to $129.99 on a pre-order basis, to launch in 14 countries including the US in 11/19. $GOOG PR link.
Anthem(PBR33) to acquire Beacon Health Options, the largest independently held behavioral health organization in the US, serving 36+ million individuals across all 50 states, from Bain Capital Private Equity and Diamond Castle Holding, terms not disclosed, to close in 4Q19. $ANTM PR link.
Altice USA(PBR310) completes $200 million acquisition of digital-first, live business, general news and college network focused on young professional and millennial audiences with over 400 million video views a month company Cheddar. $ATUS PR link.
Fastenal(PBR528) industrial vending program for nuts, bolts, and screws achieves 100,000-plus active devices across 25 countries. $FAST PR link.
Meredith Corp(PBR849)’s Entertainment Weekly to become a monthly starting in 08/19, to increase investment in EW.com and digital, social, video and experiential platforms. $MDP PR link.
The US Dept of Labor says US Revised 1Q19 Labor Productivity Output/Hr-All Employees-Business Sector is at +3.5%, 4Q18 was at +1.2%, 3Q18 +1.5%, 1Q18 +0.9%. USDOL PR link.
The US Dept of Commerce says US April 2019 Exports-Goods was at $136.9 billion, Services$69.9 billion, Total Exports $206.8 billion, Imports-Goods was at $208.7 billion, Services$49.0, Total Imports $257.7 billion, Total Deficitwas $50.9 billion, Total Deficit YTD(4 months)is at $205.5 billion, Total Deficit YTD(4 months) in 2018 was $202.0 billion. USDOC PR link.
***Wednesday, June 5:
Amazon(PBR5) Re: MARS conference news items regarding StyleSnap, warehousing/robotics, and drone delivery services. $AMZN PR link.
3M(PBR89) to sell its 500 employees gas and flame detection business to Teledyne(PBR747)for $230 million, to close 2H19. $MMM PR link.
Eli Lilly(PBR115) gets US FDA approval for Emgality® (galcanezumab-gnlm) injection (300 mg) for the treatment of episodic cluster headache in adults, the first and only calcitonin gene-related peptide (CGRP) antibody approved by the FDA for two distinct headache disorders. $LLY PR link.
Tesla(PBR139 $TSLA) is estimated to have sold nearly 3 times as many electric cars as its rivals, according to Morgan Stanley research.MarketWatch PR link.
Carnival Corp(PBR160 $CCL) and its Princess Cruises unit ordered to pay $20 million fine for plastics and garbage dumping in the ocean per US Dept of Justice suit, follows $40 million fine in 04/17 for oil dumping. DOJ PR link.
Bristol-Myers Squibb(PBR131) announces senior management leadership team after $74 billion acquisition of global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases Celgene(PBR220), to close in 3Q19. $BMY PR link.
LabCorp(PBR267) Chairman/President/CEO David P. King to step down as President/CEO on 10/31/19, will become Executive Chairman on 11/01/19, Board member Adam H. Schechter to become President/CEO. $LH PR link.
Casey’s General Stores(PBR354) hires Darren Rebelez to become President/CEO on 06/24/19, succeeds Terry Handley who is retiring after 38 years with Casey’s. $CASY PR link.
Red Robin(PBR965) adopts a short-term shareholder rights plan as it completes its ongoing CEO search and executes on its strategic plan. $RRGB PR link.
The US Securities and Exchange Commissionadopts a package of rulemakings and interpretations designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal requirements and mandated disclosures in line with reasonable investor expectations, while preserving access (in terms of choice and cost) to a variety of investment services and products. SEC PR link.
The US Federal Reserve releases its Beige Book based on information from the Federal Reserve Banks through 05/24/19, says, “Economic activity expanded at a modest pace overall from April through mid-May, a slight improvement over the previous period.” TheFed PR link.
ADP(PBR235) says the US Preliminary May 2019 Change in Employment is at +27,000, -52,000 from Small Businesses(1-49 employees), +11,000 from Mid-Sized Businesses(50-499 employees), +68,000 from Large Businesses(500 and more employees), -43,000 from Goods Producing Sector, +71,000 from the Services-Providing Sector. $ADP PR link.
The Institute for Supply Management says the US May 2019 Non-Manufacturing Index(>50% indicates economy is growing) is at 56.9%, April 2019 was at 55.5%, March 2019 56.1%, May 2018 58.9%. “The non-manufacturing sector continues to experience a slight uptick in business activity, but it is still leveling off overall. Respondents are mostly optimistic about overall business conditions, but concerns remain about tariffs and employment resources.” ISM PR link.
The IHS Markit US May 2019 Composite PMI Output Index is at 50.9, April 2019 was at 53.0, March 2019 54.6, May 2018 56.6. “… business confidence dipped to its lowest since June 2016 amid concerns about global trade tensions and less robust demand conditions.” IHS Markit PR link.
***Tuesday, June 4:
Walmart(PBR1) expanding its Live Better Ueducation benefit to include new technology degrees and certificates for $1 a day and offering high school students a bridge into the workforce, including access to all its learning programs. $WMT PR link.
Apple(PBR3 $AAPL) is being sued by two app developers claiming that Apple engaged in anticompetitive conduct by only allowing the downloading of iPhone apps through Apple’s official App Store. Apple also requires developers to price their apps in tiers ending in 99 cents and takes up to a 30% commission from developers on the sale of apps. Reuters PR link.
CVS Health(PBR8) expects to open 1,500 HealthHUBs by end of 2021 as part of strategy to accelerate growth. $CVS PR link.
Group 1 Automotive(PBR261) does nationwide launch of AcceleRide®, its new online automotive purchase platform, includes online inventory of over 38,000+ new and pre-owned vehicles, currently live at 79 dealerships, will be available at all 116 Group 1 US dealerships by the end of the summer. $GPI PR link.
Newell Brands(PBR341) to sell its $112 million in revenues in 2018 The United States Playing Card Company to Cartamundi Group, a leading manufacturer and distributor of playing cards and board games, terms not disclosed, to close in 2H19. $NWL PR link.
Michaels Cos(PBR504) partnering with Cricutfor upcoming availability of Infusible Ink™, an all-new system of Cricut products that brings commercial-level, permanent heat-transfer effects to the consumer do-it-yourself (DIY) space, to be available from 06/21/19 through 10/01/19. $MIK PR link.
Sprouts(PBR511) announces 06/11/19 National Hiring Day from 9AM-7PM, to hire around 1,500 across 300 stores. $SFM PR link.
Continental Resources(PBR541) authorizes initial $1 billion share buyback program, starts 2Q19, expires end of 2020. $CLR PR link.
Mattel(PBR558) announces international licensing agreement with Hello Kitty brand builder Sanrio to design and develop a wide array of toys, dolls, playsets, games, puzzles, baby gear, plush, vehicles and other products inspired by Hello Kitty & Friends and Hello Kitty Cafe, as well as a range of characters in the Sanrio portfolio, to be available in the Fall of 2020. $MAT PR link.
Tupperware(PBR862) announces “No Time to Waste” vision, to significantly reduce plastic and food waste by 2025 through its global network of 3 million Sales Force, 12,000 associates and suppliers. $TUP PR link.
CACI(PBR564) President/CEO Ken Asbury to retire and resign from the Board effective 06/30/19, COO John Mengucci to be successor on 07/01/19. $CACI PR link.
The US Dept of Commerce/Census says the US Preliminary April 2019 New Orders-Durable Goods is at $248.6 billion, Non-Durable Goods $250.7, Total $499.3 billion, -0.8% from March 2019, +0.6% from April 2018; Total YTD is at $1.200 trillion, +1.7% from April 2018. USDOC PR link.
The PurdueU/CME Group says the US May 2019 Ag Economy Barometer was at 101, April 2019 was at 115, March 2019 133, May 2018 141. PurdueU PR link.
***Monday, June 3:
Apple(PBR3) at its World Wide Developers Conference 2019 unveils several new products and developer tools. $AAPL PR link.
Humana(PBR54) says it will not make a proposal to combine with Centene(PBR50) as an alternative to Centene’s proposed acquisition of WellCare Health Plans(PBR168). $HUM PR link.
Tyson(PBR74) completes $340 million acquisition of Thailand and Europeanoperations of BRF SA, includes four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the UK. $TSN PR link.
Altria(PBR111) will invest $372 million for an 80% ownership interest in certain companies of Switzerland based Burger Group that will commercialize oral tobacco-derived nicotine pouch product on! worldwide. $MO PR link.
Tesla(PBR139 $TSLA) likely to build Model Y at California plant, Elon Musk says. MarketWatch PR link.
Sears(PBR168) parent Transform Holdings(aka the new Sears) will acquire the outstanding shares of Sears Hometown(PBR917) not owned by ESL Investments and its affiliates for $2.25/share cash, to close in SHOS 3Q19 fiscal year. $SHLDQ PR link.
Las Vegas Sands(PBR226) completes $1.3 billion sale of its Sands Bethlehem property in Pennsylvania to an affiliate of Poarch Band of Creek Indians of Alabama. $LVS PR link.
LabCorp(PBR267)’s Covance Drug Development segment has completed the acquisition of Envigo’s nonclinical contract research services business, Envigo’s Research Models and Services business has completed the acquisition of LabCorp’s Covance Research Products business, results in net payment by LabCorp of $485 million, will increase LabCorp’s revenue by an incremental $156 million/year. $LH PR link.
PVH(PBR314)’s Calvin Klein subsidiary and G-III(PBR759) have entered into a license agreement with an initial term of five years for the design, production and distribution of Calvin Klein Jeans women’s jeanswear collections in the US and Canada, is in addition to the other women’s Calvin Klein businesses that are already licensed to G-III by CKI. $PVH PR link.
Quest Diagnostics(PBR390 $DGX) says 11.9 million patients may be affected by latest data breach through its outsourced collections vendor. MarketWatch PR link.
Blackstone(PBR423) to acquire assets from three of GLP’s US funds for $18.7 billion, totals 179 million square feet of urban, infill logistics assets, nearly doubling the size of Blackstone’s existing US industrial footprint. $BX PR link.
AMD(PBR440) gets multi-year royalties agreement to license custom graphics IP based on the recently announced, highly-scalable RDNA graphics architecture to Samsung for use in mobile devices, including smartphones, and other products. $AMD PR link.
Ventas(PBR636) to acquire a Class A portfolio of 31 purpose-built seniors housing communities and four in-progress developments in Quebec market through an 85/15 percent equity partnership with Le Groupe Maurice, portfolio is valued at $1.8 billion, to close in 3Q19. $VTR PR link.
ASGN(PBR675) authorizes up to $250 million share repurchase program, expires in 2 years. $ASGN PR link.
Laureate Education(PBR682) completes sale of its universities in Spain and Portugal to global private equity firm Permira Funds for around $908 million net proceeds. $LAUR PR link.
Tronox(PBR921) authorizes up to $100 million share repurchase program. $TROX PR link.
United Technologies(PBR45) appoints David L. Gitlin as President/CEO of its 55,000 employees Carrier unit and Judith F. Marks as President/CEO of its 68,000 employees Otisunit, effective immediately, both units to be spunoff as stand-alone public companies. $UTX PR link.
The US Dept of Commerce/Census says the US Preliminary April 2019 Total Construction Spending Annual Rate-Residential is at $505.9 billion, Non-Residential $792.6 billion, Total$1.299 trillion, -0.1% from March 2019, -1.2% from April 2018. USDOC PR link.
The ISM Preliminary May 2019 Manufacturing PMI Index(>50% means economy expanding)was at 52.1%, April 2019 was at 52.8%, March 2019 55.3%, May 2018 58.7%. “Respondents expressed concern with the escalation in the U.S.-China trade standoff, but overall sentiment remained predominantly positive. The PMI® continues to reflect slowing expansion …” ISM PR link.
IHS Markit says the US May 2019 Manufacturing PMI Index is at 50.5, April 2019 was at 52.6, March 2019 52.4, May 2018 56.4. “The headline PMI fell to its lowest level since September 2009 as output growth eased and new orders fell for the first time since August 2009.” IHS Markit PR link.
***Friday, May 31:
The PBRMarketTools US Stock Exchanges Recap for the End of May and Week 22 of 2019 ending 05/31/19:
DJIA ends month and week at 24,815.04, -3.01% from last Friday, -6.69% MTD, -4.30% QTD, +6.38% YTD, -7.50% from record 26,828.39 set 10/03/18.
NASDAQ ends month and week at 7,453.15, -2.41% from last Friday, -7.93% MTD, -3.57% QTD, +12.33% YTD, -8.71% from record 8,164.00 set 05/03/19.
SPX ends month and week at 2,752.06, -2.62% from last Friday, -6.58% MTD, -2.91% QTD, +9.78% YTD, -6.58% from record 2,945.83 set 04/30/19.
The Month 5 YTD tally is:
The Stock Market Bull: 4 months
The Stock Market Bear: 1 month
Mixed Results: 0 months
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