The PBR1000: Another Version of March Madness
The coronavirus respiratory disease has grabbed the attention of the world, interrupted global supply chains, and is affecting bottomlines of international companies. Governmental and Corporate responses have remained relatively calm, but stock exchanges appear to be in a panic. Who will prevail?
By Larry C. Paxton
The March 2020 breaking news items of interest for The PBR1000 follow with the most current date first.
***Tuesday, March 31
The PBRMarketTools US Stock Exchanges Recap for the month of March ending 03/31/20:
DJIA ends March at 21,917.16, +1.30% from last Friday, -13.74% MTD, -23.20% QTD/YTD, -25.83% from record 29,551.42 set 02/12/20.
NASDAQ ends March at 7,700.10, +2.64% from last Friday, -10.12% MTD, -14.18% QTD/YTD, -21.57% from record 9,817.18 set 02/19/20.
SPX ends March at 2,584.59, +1.70% from last Friday, -12.51% MTD, -20.00% QTD/YTD, -23.67% from record 3,386.15 set 02/19/20.
The March 2020 News Summary: The news of the month was dominated by the COVID-19 virus pandemic. Stock exchanges worldwide have taken a significant dip. World and US economic data, which usually lags 1-3 months, is starting to show some of the impact. Supply chains are becoming disrupted. There is a run at grocery stores on almost all items, essential and non-essential. In the US manufacturing of face masks and much needed ventilators is ramping up. New York City has been especially hard hit, as well as California and the State of Washington. People are being strongly encouraged, and in some states it has been mandated, to stay at home and avoid contact with others as much as possible. A massive national $2 trillion coronavirus stimulus bill was created, passed and was signed into law quickly and with bipartisan support, another $2 trillion is being suggested for infrastructure issues. In China the rate of new cases has started dropping dramatically, in the US the forecast is that April will be the big month. The Stock Market Bear and his friend COVID-19 had several big feast days during the month. The Stock Market Bull tried to fight back and did have a few significant recovery days, but it was not nearly enough. The Stock Market Bear is undefeated so far in 2020, seems to have the momentum and appears energized to possibly do more of the same in April. Expert opinions vary, many of whom have their own agendas. Stay safe, do your research and due diligence, and wish you all the best in April!
The Month of March 2020 tally YTD is:
The Stock Market Bull: 0 months
The Stock Market Bear: 2 months
Mixed Results: 1 month
Macy’s(PBR118 $M) to move from S&P 500 to the S&P SmallCap 600 on 04/03/20.
Danaher(PBR176) completes $21.4 billion cash acquisition of Biopharma business of bioprocessing technologies and solutions provider GE(PBR19) Life Sciences unit, will be called Cytiva and will be a standalone operating company within Danaher’s Life Sciences segment. $DHR PR link.
Truist Financial(PBR215) completes acquisition of Truist Center, formerly Hearst Tower, in Charlotte, NC, for $455.5 million. $TFC PR link.
News Corp(PBR307) to sell its News America Marketing business to private equity firm Charlesbank Capital Partners for up to $235 million, will have option to retain up to 15% equity in the business, to close by 06/30/20. $NWS PR link.
Newmont Goldcorp(PBR315) completes $375 million sale of its Red Lake complex in Ontario, Canada, to Evolution Mining. $NEM PR link.
Xerox(PBR336) says current global COVID-19 health care crisis is not conducive to pursue an acquisition of HP(PBR55), is withdrawing its tender offer and will no longer seek to nominate it suggested board members. https://bit.ly/XRXtc31$DHR PR link.
Tailored Brands(PBR749) re-opens its fulfillment centers, stores remain closed, to make 50,000 cotton washable facemasks at its New Bedford, MA, factory. https://bit.ly/TLRDtc31b$DHR PR link.
Tailored Brands(PBR749) adopts a short-term shareholder rights plan. https://bit.ly/TLRDtc31$DHR PR link.
The International Olympic Committee announces that the Tokyo 2020 Olympics dates have been moved to 07/23/21-08/08/21, will still be called the Tokyo 2020 Olympics. IOC PR link.
The US Dept of Treasury says the US National Debt-Public on 03/30/20 is at $17.555 trillion, Intragovernmental $6.010 trillion, Total Debt $23.565 trillion, +0.7% from 02/28/20, +1.6% from 12/31/19, +7.0% from 03/29/19. USTreasury PR link.
The US Dept of Treasury says the US 10 Year Treasury Note Yield on 03/31/20 is at 0.70%, 02/28/20 was at 1.13%, 01/31/20 1.99%, 03/29/19 2.41%. USTreasury PR link.
The US Dept of Commerce/BEA says the Preliminary 4Q19 US Net International Assets are at $29.318 trillion, Liabilities $40.309 trillion, Net International Investment Position is at -$10.991 trillion, +0.1% from 3Q19, +15.0% from 4Q18. USDOC PR link.
The US Federal Reserve Bank of Chicago says the Preliminary February 2020 7th District Midwest Economic Index is at -0.08, January 2020 was at -0.35, December 2019 -.51, February 2019 +0.04. “The data through February were unlikely to have been affected much by the Covid-19 outbreak.” ChiFed PR link.
The S&P CoreLogic Case-Shiller January 2020 US National Home Price Index(01/2000=100) is at 212.43, December 2019 was at 212.39, November 2019 212.31, December 2017 195.97 December 2016 184.50. The 20 City and 10 City are at the link and will be on The PBRMarketTools March 2020 US Indices Snapshots. Case-Shiller PR link.
The Conference Board says the Preliminary March 2020 US Consumer Confidence Index(1985=100) is at 120.0, February 2020 was at 132.6, January 2020 130.4, March 2019 124.2. “… the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction – rather than a temporary shock – and further declines are sure to follow.” TCB PR link.
The American Automobile Assn says the US Average Price for a Gallon of Regular Gas on 03/31/20 is at $1.997, 02/29/20 was at $2.447, 01/31/20 $2.485, 03/29/19 $2.691. “The national average for a gallon of regular gasoline dropped below $2 for the first time in four years… AAA expects gas prices to push cheaper, with the national price average hitting $1.75 or less in April… The decline is due to COVID-19’s chilling effect on the global economy and the crude oil price war between Saudi Arabia and Russia.” AAA PR link.
***Monday, March 30
Dow(PBR74) to expand hand sanitizer production at additional sites in North America, Europe and Latin America, will produce equivalent of 880,000 8 oz bottles per week, will be donated to local health systems and government agencies. $DOW PR link.
PBF Energy(PBR119) to sell off five hydrogen plants to Air Products(PBR341) for $530 million cash, to close in 04/20. $PBF PR link.
Spirit Airlines(PBR630) adopts a limited duration stockholder rights agreement in response to coronavirus pandemic. $SAVE PR link.
Hillenbrand(PBR922) completes around $224 million cash sale of its Cimcool business to DuBois Chemicals. $HI PR link.
BNY Mellon(PBR196) appoints Todd Gibbons as CEO, had been serving as Interim CEO. $BK PR link.
***Friday, March 27
The PBRMarketTools US Stock Exchanges Recap for Week 13 ending 03/27/20:
DJIA ends Week 13 at 21,636.78, +12.84% from last Friday, -14.85% MTD, -24.18% QTD/YTD, -26.78% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 13 at 7,502.38, +9.05% from last Friday, -12.43% MTD, -16.39% QTD/YTD, -23.58% from record 9,817.18 set 02/19/20.
SPX ends Week 13 at 2,541.47, +10.26% from last Friday, -13.97% MTD, -21.34% QTD/YTD, -24.95% from record 3,386.15 set 02/19/20.
The Week 13 News Summary: It’s all about the COVID-19 virus. Cumulative confirmed worldwide cases are at nearly 600,000 and deaths at over 26,000. The US now has the most active cases with just under 100,000 reported. In response, in a quick and bipartisan effort, both houses of Congress passed a $2+ trillion stimulus bill which President Trump has signed. Companies are forging strategic partnerships for the rapid production of ventilators, masks, and other medical supplies. But many companies have announced layoffs and furloughs, resulting in a record initial unemployment claims of over 3 million people in the past week, significantly over the around 220,000 from previous weeks. Other US economic news was good, but still preliminary and just before the outbreak was labelled a pandemic. President Trump has indicated an ambitious plan, which health officials have strongly denounced, to get the country to start producing again, with a timeline of Easter, which is just a couple of weeks away. The US stock exchanges were again wildly volatile both up and down. But at the end of Week 13 The Stock Market Bull was the clear victor with a 3-0 mark after a 3 days strong rally, but with The Stock Market Bear still way ahead year-to-date, and still with a strong appetite to dine on more cash, according to several respected pundits.
The Week 13 of 2020 tally YTD is:
The Stock Market Bull: 6 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 1 week
Sysco(PBR55) furloughed workers in the US because of the coronavirus pandemic may have opportunities to temporarily work at Kroger(PBR22) stores in partnership agreement. $SYY PR link.
Pfizer(PBR59)’s Upjohn division and Mylan(PBR273) plan to combine as Viatris by around mid-2020 now anticipated to close 2H20 because of coronavirus pandemic. $PFE PR link.
Abbott(PBR99) gets US FDA Emergency Use Authorization (EUA) for the fastest available molecular point-of-care test for the detection of novel coronavirus (COVID-19), delivering positive results in as little as five minutes and negative results in 13 minutes. $ABT PR link.
The US Dept of Commerce/BEA says the Preliminary February 2020 Personal Income Annual Rate is $19.095 trillion, +0.6% from January 2020, +4.0% from February 2019. More on Table 1 of the link. USDOC PR link.
The U of Michigan Final March 2020 Consumer Sentiment Index is at 89.1, February 2020 was at 101.0, January 2020 99.8, March 2019 98.4. “… Stabilizing confidence at its month’s end level will be difficult given surging unemployment and falling household incomes. The extent of additional declines in April will depend on the success in curtailing the spread of the virus and how quickly households receive funds to relieve their financial hardships.” UMichigan PR link.
The John Hopkins University Center for Systems Science and Engineering provides the latest counts on COVID-19 virus. On 03/27/20 11:54:13 Eastern the worldwide counts were 586,140 cumulative confirmed cases, 26,865 deaths. JHU-CSSE PR link.
***Thursday, March 26
Ford(PBR12) is aiming to restart production at select plants in N America as early as 04/06/20. $F PR link.
Bristol-Myers Squibb(PBR108) gets US FDA approval for ZEPOSIA® (ozanimod) 0.92 mg for the treatment of adults with relapsing forms of multiple sclerosis (RMS). $BMY PR link.
Weyerhaeuser(PBR440) completes $145 million cash sale of its 630,000 acres of timberland in Montana to a private timberland investment company. $WY PR link.
Chipotle(PBR489) announces The 2020 Chipotle Challenger Series with new online competition for e-sports fans, will connect fans across the country with their favorite gaming and celebrity personalities for a chance to win $50,000 and free Chipotle for a year. $CMG PR link.
The US Dept of Labor says the US Initial Unemployment Insurance Claims for the Week Ending 03/21/20 is at 3,283,000, 02/22/20 was at 219,000, 01/25/20 216,000, 03/23/19 211,000. The large increase is primarily due to layoffs from the COVID-19 virus pandemic. USDOL PR link.
The US Dept of Commerce/BEA says the 4Q19-3rd Estimate Gross Domestic Product is at +2.1%, same as 2nd Estimate, 4Q19 Annual GDP Rate is at $21.729 trillion, +0.87% from 3Q19, +3.98% from 4Q18. USDOC PR link.
FreddieMac(PBR40) says the US Weekly Average 30 Year Fixed Mortgage Rate on 03/26/20 is at 3.50% with 0.7 points/fees, was 3.45% on 02/27/20, 3.51% 01/29/20, 4.06% 03/28/19. “… the combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets.” $FMCC PR link.
***Wednesday, March 25
Fluor(PBR166) adopts a limited duration stockholder rights agreement. $FLR PR link.
Occidental Petroleum(PBR149) enters into an agreement with Carl C. Icahn and affiliates to add three new Icahn designated directors to Occidental’s Board. $OXY PR link.
Groupon(PBR797) President/N America Aaron Cooper appointed Interim CEO, succeeds Rich Williams who remains as an employee. https://bit.ly/GRPNtc25$F PR link.
The US Energy Information Administration says the 03/20/20 US Millions of Barrels of Crude Oil Stocks are at 455.4, 02/21/20 was at 443.3, 01/24/20 431.7, 03/22/20 442.3. USEIA PR link.
***Tuesday, March 24
Ford(PBR12) is working with 3M(PBR98), GE(PBR33), and the United Auto Workers to speed production of respirators for healthcare workers, ventilators for coronavirus patients. $F PR link.
Mondelez(PBR110) in response to COVID-19 pandemic to hire 1,000 frontline US employees to ensure the uninterrupted functioning of its US distribution and sales network in the coming months. $MDLZ PR link.
Occidental Petroleum(PBR149) elects its former CEO Steve Chazen as Non-Executive Chairman. $OXY PR link.
The US Dept of Commerce/HUD says the Preliminary February 2020 New Family Home Sales Annual Rate is at 765,000, January 2020 was at 800,000, December 2019 724,000, February 2019 669,000; Median Home Price is at $345,900, +6.3% from January 2020, +7.8% from February 2019. USDOC PR link.
The US Federal Reserve Bank of Philadelphia says the March 2020 3rd District Non-Manufacturing Current General Activity Index is at -35.1, February 2020 was at +31.0, January 2020 +13.4, March 2019 +20.5. “The survey’s indexes for general activity at the firm level, sales/revenues, new orders, and full-time employment all fell sharply and into negative territory this month, coinciding with developments related to the coronavirus.” PhillyFed PR link.
The US Federal Reserve Bank of Richmond says the March 2020 5th District Manufacturing Index(Annualized) is at +2%, February 2020 was at -2%, January 2020 +20%, March 2019 +10%. “Survey respondents were pessimistic, expecting weaker business conditions and a drop in shipments and new orders in the coming months.” RichmondFed PR link.
The US Federal Reserve Bank of Richmond says the March 2020 5th District Service Sector Revenue Index(Annualized) is at +1%, February 2020 was at +26%, January 2020 +10%, March 2019 +5%. “Survey respondents were pessimistic, expecting business conditions to worsen in the next six months.” RichmondFed PR link.
***Monday, March 23
PBRMarketTools.com welcomes pioneer TV streaming service Roku to The PBR1000, ranked 993 by revenues. More details at the Roku Spotlight page.
CVS Health(PBR5) to provide $150-500 in bonuses, add benefits and hire 50,000 in response to pandemic. $CVS PR link.
GE(PBR33) in response to COVID-19 pandemic to reduce around 10% of its US GE Aviation workforce, furlough around 50% maintenance, repair and overhaul employees for 90 days. $GE PR link.
PG&E(PBR184) has resolved all state charges related to the 2018 Camp Fire through a plea agreement with the Butte County District Attorney, will pay maximum fine of $4 million and fund efforts to restore access to water for the next five years for residents impacted by the loss of the Miocene Canal. $PCG PR link.
MGM Resorts(PBR242) Chairman/CEO Jim Murren steps down per his announcement in 02/20, President/COO Bill Hornbuckle appointed interim CEO, Board member Paul Salem named Chairman. https://bit.ly/MGMtc23$HI PR link.
The US Federal Reserve Bank of Chicago says the Preliminary February 2020 US National Activity Index is at +0.16, January 2020 was at -0.33, December 2019 -0.46, February 2019 -0.60. “Index suggests economic growth picked up in February… The data through February were unlikely to have been affected much by the COVID-19 outbreak.” ChiFed PR link.
***Friday, March 20
The PBRMarketTools US Stock Exchanges Recap for Week 12 ending 03/20/20:
DJIA ends Week 12 at 19,173.98, -17.30% from last Friday, -24.54% MTD, -32.81% QTD/YTD, -35.12% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 12 at 6,879.52, -12.64% from last Friday, -19.70% MTD, -23.33% QTD/YTD, -29.92% from record 9,817.18 set 02/19/20.
SPX ends Week 12 at 2,304.92, -14.98% from last Friday, -21.98% MTD, -28.66% QTD/YTD, -31.93% from record 3,386.15 set 02/19/20.
The Week 12 News Summary: The world continues to be inundated with the COVID-19 pandemic related news, including school and business closures, strong “stay at home” messaging, only pick-up or delivery at restaurants if they are not closed, panic buying in grocery stores, and dramatic government efforts to figure out a way to spend their way out of what could be economic catastrophes. The escalation of news, government actions and resulting consumer behaviors will make for some interesting studies in the future. Health authorities continue to sound the alarm, contrarians are saying this is way overblown, especially when compared to past outbreaks. Time will bring out the truth. US economic news continues to be mostly positive, but is still based on results prior to the COVID-19 scare. For example, existing home sales had a big upturn in February. Last Sunday the Federal Open Market Committee in response to the COVID-19 scare dropped the key federal funds rate a full percent to 0.00% to 0.25%. US politics never stops and presidential candidate Democrat Joe Biden continues to outrun his competition with endorsements from dropouts in what is now a 2 person race. Either The Stock Market Bull is a victim of COVID-19 or is practicing the “stay at home” strategy to avoid it. The Stock Market Bear took big advantage of this and gorged on a large chunk of cash from the markets and overwhelmingly wins a volatile Week 12 3-0. Some say he has overindulged and can’t sustain it. Next week we will find out how big his appetite is.
The Week 12 of 2020 tally YTD is:
The Stock Market Bull: 5 weeks
The Stock Market Bear: 6 weeks
Mixed Results: 1 week
Hillenbrand(PBR922) to sell its Cimcool business to DuBois Chemicals for around $224 million cash, to close on 03/30/20. $HI PR link.
The Natl Assn of Realtors says the February 2020 US Existing Home Sales Annual Rate is at 5,770,000, +6.5% from January 2020, +7.2% from February 2019; Median Home Price is at $270,100, +1.4% from January 2020, +8.0% from February 2019. NAR PR link.
***Thursday, March 19
Walmart(PBR1) to give $300 for US full-time hourly associates and $150 for part-time hourly associates as a special cash bonus on 04/02/20 for people employed by 03/01/20, also plans to hire 150,000 more people. $WMT PR link.
Fluor(PBR166) gets non-compliance letter from the NYSE for not filing 10-k on timely basis, has 6 months to remedy. $FLR PR link.
eBay(PBR287) says letter from minority investor Starboard nominating 4 more people for the Board is unwarranted, unreasonable and detrimental to the company. $EBAY PR link.
Acadia Healthcare(PBR724) puts effort to sell UK business on hold because of COVID-19 crisis. $ACHC PR link.
Cigna(PBR13 $CI) moves up from 24 to 22 on the mid-March 2020 update to The PBR25 Top Buy Recommendations with a 4.65/5.00 rating based on 26 analyst recommendations. For more go to The PBR25 information page.
The US Dept of Labor says the 4Q19 US Average Wages & Salaries-All Workers is at $25.47, Benefits $11.63, Total $37.10, +0.2% from 3Q19, +2.2% from 4Q18. USDOL PR link.
The US Dept of Commerce/BEA says the Preliminary 4Q19 US Exports(Goods, Services, Income Receipts) is at $936.1 billion, Imports(Goods, Services, Income Payments) is at $1.046 trillion, Deficit is at $109.8 billion, -12.4% from 3Q19, -23.7% from 4Q18. USDOC PR link.
The Federal Reserve Bank of Philadelphia says the March 2020 3rd District Manufacturing General Activity Indicator is at -12.7, February 2020 was at +36.7, January 2020 +17.0, March 2019 +14.9. Responses to the March Manufacturing Business Outlook Survey indicated a notable weakening in manufacturing activity… The survey’s future indexes suggest that respondents expect declines to be short-lived, inasmuch as they continue to expect growth in manufacturing activity over a horizon of six months.” PhillyFed PR link.
The Conference Board says the Preliminary February 2020 US Leading Economic Index(2016=100) is at 112.1, January 2020 was at 112.0, December 2019 111.3, February 2019 111.5. “The U.S. LEI rose slightly in February, but it doesn’t reflect the impact of the COVID-19 pandemic which began to hit the U.S. economy in full by early March.” TCB PR link.
***Wednesday, March 18
Abbott(PBR99) gets US FDA Emergency Use Authorization (EUA) for the company’s molecular test for novel coronavirus (COVID-19), scaling up production at its US manufacturing location to reach capacity for 1 million tests per week by end of 03/20. $ABT PR link.
Starbucks(PBR107) authorizes up to 40 million shares repurchase program, is in addition to the approximately 16 million shares that remained available as of 12/29/19 under the previous authorization. $SBUX PR link.
YUM!(PBR488) completes $14/share cash, around $375 million, acquisition of The Habit Burger Grill(NASDAQ:HABT), with nearly 300 company-owned and franchised restaurants across the US and in China. $YUM PR link.
Granite Construction(PBR681) gets NYSE letter saying by not filing its 10-K annual report with the SEC it is not in compliance, has 6 months to file 10-K. $GVA PR link.
Maximus(PBR748) authorizes the expansion of purchases of MAXIMUS common stock of up to an aggregate of $200 million, which includes the remaining balance from the 2018 authorization of $37.2 million as of 03/17/20. $MMS PR link.
The US Federal Housing Finance Administration directs FannieMae(PBR23) and FreddieMac(PBR41) to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency, is in addition to previously directed payment forbearance to borrowers for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus. FHFA PR link.
The US Dept of Commerce/HUD says the Preliminary February 2020 New Residential Construction-Building Permits Issued Annual Rate is at 1,464,000, -5.6% from January 2020, +13.8% from February 2019. Go to link for Housing Starts and Housing Completions. USDOC PR link.
***Tuesday, March 17
Facebook(PBR46) to offer $100 million in cash grants, ad credits to 30,000 small businesses in 30+ countries due to coronavirus. $FB PR link.
AbbVie(PBR94) and Allergan(PBR197) sign a consent decree agreement with the US Federal Trade Commission (FTC) agreeing to divest brazikumab, an investigational IL-23 inhibitor in development for autoimmune diseases, to AstraZeneca and Zenpep, a treatment for exocrine pancreatic insufficiency due to cystic fibrosis and other conditions, to Nestle who will also be acquiring Viokace, another pancreatic enzyme preparation, as part of the same transaction; AbbVie $63 billion acquisition of Allergan now expected to close in 05/20. $ABBV PR link.
Fox Corp(PBR269) to acquire Tubi, a leader in the fast-growing free ad-supported streaming category, for approximately $440 million in net cash, to close by 06/30/20. $FOX PR link.
The US Dept of Labor says the Preliminary January 2020 Jobs Openings-Private are at 6,208,000, Government 755,000, Total Openings 6,963,000, +6.3% from December 2019, -7.4% from January 2019. For Hires and Separations go to the link. USDOL PR link.
The US Dept of Commerce/Census says the Preliminary February 2020 US Sales-Manufacturers is $501.8 billion, Retailers $464.8 billion, Wholesalers $504.6 billion, Total $1.471 trillion, +0.6% from January 2020, +2.1% from February 2019. USDOC PR link.
The US Dept of Commerce/Census says the Advance February 2020 US Sales-Retail is at $462.3 billion, Food Services & Drinking Places $65.8 billion, Total $528.1 billion, -0.5% from January 2020, +4.4% from February 2019. USDOC PR link.
The US Federal Reserve says the Preliminary February 2020 US Manufacturing % of Capacity is at 77.0%, January 2020 was at 76.6%, December 2019 77.1%, February 2019 78.5%, Capacity Growth Over Previous Year is at 2.0%. USFed PR link.
The Natl Assn of Home Builders/Wells Fargo say the Preliminary March 2020 US Housing Market Composite Index(>50=more builders view conditions as good than poor) is at 72, February 2020 was at 74, January 2020 75, March 2019 62. “Builder confidence remains solid, although sales expectations for the next six months dropped four points on economic uncertainty stemming from the coronavirus…” NAHB PR link.
***Monday, March 16
Amazon(PBR2) to hire 100,000 for full/part time positions across the US for fulfillment and delivery services because of increased orders during the coronavirus pandemic. $AMZN PR link.
Apple(PBR4 $AAPL) fined $1.3 billion by France over competition concerns. MarketWatch PR link.
Thermo Fisher Scientific(PBR112) gets US FDA emergency use authorization (EUA) for its diagnostic test that can be used immediately by CLIA high-complexity laboratories in the US to detect nucleic acid from SARS-CoV-2, the virus that causes COVID-19, and not for any other viruses or pathogens, total test time takes 4 hours. $TMO PR link.
McDonald’s(PBR150 $MCD) shifts to take-out only mode over coronavirus. MarketWatch PR link.
Kohl’s(PBR159) to offer Lands’ End(PBR961 $LE)‘s entire assortment of women’s, men’s, kids, and home merchandise on Kohls.com, directly fulfilled and shipped by Lands’ End, and to offer LE seasonal merchandise in 150 stores, both beginning fall 2020. $KSS PR link.
PG&E(PBR184 $PCG) wins court approval of $23 billion bankruptcy financing package. MarketWatch PR link.
Lockheed(PBR56) elects James D. Taiclet, 59, as President/CEO, effective 06/15/20, succeeds Chairman/President/CEO Marillyn A. Hewson who will become Executive Chairman. $LMT PR link.
The US Federal Open Market Committee in a special meeting on 03/15/20 lowers the federal funds rate from 1.00-1.25% to 0.00-0.25% in response to concerns about the COVID-19 pandemic. FOMC PR link.
The Federal Reserve Bank of New York says the March 2020 Empire State Manufacturing General Business Conditions Index is at -21.5, February 2020 was at +12.9, January 2020 +4.8, March 2019 +5.1. “Optimism about the six-month outlook fell sharply, with firms less optimistic than they have been since 2009.” NYFed PR link.
***Friday, March 13
The PBRMarketTools US Stock Exchanges Recap for Week 11 ending 03/13/20:
DJIA ends Week 11 at 23,185.62, -10.36% from last Friday, -8.75% MTD, -18.76% QTD/YTD, -21.54% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 11 at 7,874.85, -8.17% from last Friday, -8.08% MTD, -12.23% QTD/YTD, -19.78% from record 9,817.18 set 02/19/20.
SPX ends Week 11 at 2,711.02, -8.79% from last Friday, -8.23% MTD, -16.09% QTD/YTD, -19.94% from record 3,386.15 set 02/19/20.
The Week 11 News Summary: Across the globe the COVID-19 respiratory illness news dominated as it has for several weeks now. Key cultural events are being cancelled or postponed. The World Health Organization has labelled it a pandemic. The data is starting to come in and initial impacts on the global economy are starting to be measured. It doesn’t look pretty. At the same time oil prices are dipping because of the potential oil glut caused by the rift between Saudi Arabia and Russia. Former US Vice President Joe Biden is clearly ahead as the challenger to Donald Trump for the US presidency, but Bernie Sanders continues to push back, but now looks like his bid is coming up short. The stock exchanges reacted with scary high and low fluctuations. In the end The Stock Market Bear easily outbullied The Stock Market Bull to easily take Week 11 with a 3-0 victory.
The Week 11 of 2020 tally YTD is:
The Stock Market Bull: 5 weeks
The Stock Market Bear: 5 weeks
Mixed Results: 1 week
Microsoft(PBR20 $MSFT) $10 billion cloud-computing award by the US Dept of Defense over Amazon(PBR2 $AMZN)‘s bid to be reconsidered over next 120 days. MarketWatch PR link.
Occidental Petroleum(PBR149) adopts limited duration stockholder rights plan, expires in 1 year, to be voted on at annual meeting. $OXY PR link.
Xerox(PBR336) puts its tender offer to acquire HP(PBR55) on hold because of coronavirus pandemic. https://bit.ly/XRXtc13$ORCL PR link.
Huntsman(PBR427) to acquire CVC Thermoset Specialties, a N American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets, from Emerald Performance Materials LLC which is majority owned by affiliates of American Securities, for around $300 million cash, to close mid 2020. https://bit.ly/HUNtc13$ORCL PR link.
Cleveland-Cliffs(PBR841) completes $3.36/share $1.1 billion acquisition of producer of flat-rolled carbon, stainless and electrical steel products AK Steel(PBR424). http://bit.ly/CLFtc13$ORCL PR link.
Cincinnati Bell(PBR968) to be acquired by Macquarie Infrastructure(PBR933) for $15.50/share cash, around $2.9 billion, includes debt, to close in 1H21. https://bit.ly/CBBtc13$ORCL PR link.
Microsoft(PBR20) co-founder Bill Gates steps down as a board member of Microsoft and Berkshire Hathaway(PBR6) to dedicate more time to his philanthropic priorities, will remain a technical advisor for Microsoft’s CEO Satya Nadella and other leaders. https://bit.ly/MSFTtc13b$ORCL PR link.
Verso Corp(PBR786) CEO Adam St. John elected to also be President, effective immediately. https://bit.ly/VRStc13$ORCL PR link.
The US Dept of Labor says the Preliminary February 2020 US Import Prices Index is at -0.5%, January 2020 was at +0.1%, December 2019 +0.2%, February 2020 +1.0%; the US Export Prices Index is at -1.1%, January 2020 was at +0.6%, December 2019 -0.2%, February 2019 +0.6%; Last 12 Months-Imports is at -1.2%, Exports -1.3%. USDOL PR link.
The U of Michigan Preliminary March 2020 Consumer Sentiment Index is at 95.9, February 2020 was at 101.0, January 2020 99.8, March 2019 98.4. “… the initial response to the pandemic has not generated the type of economic panic among consumers that was present in the runup to the Great Recession. Nonetheless, the data suggest that additional declines in confidence are still likely to occur as the spread of the virus continues to accelerate.”
UMichigan PR link.
***Thursday, March 12
Oracle(PBR78) increases share buyback program by $15.0 billion. $ORCL PR link.
Devon Energy(PBR289) $770 million sale of the Barnett Shale to Banpu Kalnin Ventures is scheduled to close on 04/15/20. $DVN PR link.
McDermott Intl(PBR432) gets US Bankruptcy Court approval for Plan of Reorganization and for sale of its Lummus Technology unit to a joint partnership between The Chatterjee Group and Rhône Capital for $2.725 billion, expects to emerge from Chapter 11 bankruptcy in 2Q20 with more cash than debt. $MDR PR link.
UPS(PBR42) Chairman/CEO David Abney to become Executive Chairman on 06/01/20 and will retire from the Board on 09/30/20 when William Johnson, UPS Lead Independent Director will become Non-Executive Chairman; Board member Carol Tome to be hired as new CEO. $UPS PR link.
Party City(PBR829) CEO Jim Harrison to become Vice Chairman on 04/01/20, President/PCHI and CEO/Party City Retail Group Brad Weston is named as CEO successor. $PRTY PR link.
Tupperware(PBR880) hires Miguel Fernandez as President/CEO, effective 04/06/20, succeeds Interim CEO Chris O’Leary who returns to the Board, Rich Goudis appointed Executive Vice Chairman, effective 03/12/20. $TUP PR link.
The US Federal Reserve Z1 Report says the Preliminary 4Q19 US Networth of Households & Non-Profits is at $118.368 trillion, +2.7% from 3Q19, +10.4% from 4Q18. USFed PR link.
The US Dept of Labor says the Preliminary February 2020 Total Monthly Final Demand Producer Price Index is at -0.6%, January 2020 was at +0.5%, December 2019 +0.2%, February 2019 +0.2%; Total Last 12 Months is at +1.3%, January 2020 was at +2.1%, December 2019 +1.3%, February 2019 +1.9%. USDOL PR link.
***Wednesday, March 11
Pepsi(PBR50) to acquire Rockstar Energy Beverages, the popular energy drink maker, for $3.85 billion, to close in 1H20. $PEP PR link.
HanesBrands(PBR424) CEO Gerald W. Evans Jr to retire, effective 01/02/21, new CEO search starts. $HBI PR link.
The US Dept of Labor says the February 2020 US Monthly Change in the Consumer Price Index is at +0.1%, January 2020 was at +0.1%, December 2019 +0.2%, February 2019 +0.2%; Last 12 Months Change is at +2.3%. USDOL PR link.
The US Dept of Labor says the Preliminary February 2020 Employee Current Average Earnings Per Hour is at $28.52, Average Hours Worked Per Week is at 34.4, Current Average Weekly Earnings is at $981.09, +0.6% from January 2020, +3.0% from February 2019. USDOL PR link.
The US Dept of Treasury says the February 2020 US Fed Govt Receipts are at $188.0 billion, Outlays $423.3 billion, Deficit $235.3 billion, YTD Receipts(5 Months) are at $1.367 trillion, YTD Outlays $1.991 trillion, YTD Deficit $624.5 billion, February 2019 was at $544.2 billion. USTreasury PR link.
The World Health Organization characterizes COVID-19 as a pandemic. WHO PR link.
The US Natl Collegiate Athletic Assn announces Division I men’s and women’s basketball tournaments will be limited to essential staff, family attendance due to COVID-19 concerns. NCAA PR link.
The Natl Basketball Assn suspends season play until further notice as a precaution per a positive COVID-19 test by a player. NBA PR link.
***Tuesday, March 10
CVS Health(PBR5) Pharmacy unit to acquire Schnuck Markets‘ retail and specialty pharmacy businesses, 110 locations in the Midwest, terms not disclosed, to close in 2Q20. $CVS PR link.
McKesson(PBR8) completes split-off of its interest in Change Healthcare(NASDAQ: CHNG). $MCK PR link.
Wells Fargo(PBR26 $WFC) CEO Charles Scharf tells the US House Financial Services Committee that the bank’s cultural issues won’t be fixed until 2021. MarketWatch PR link.
DXC Technology(PBR155) to sell its US State and Local Health and Human Services business to Veritas Capital for $5.0 billion in cash, to close by end of 2020. $DXC PR link.
PG&E(PBR183 $PCG) says it has settled dispute with FEMA over California wildfire money. MarketWatch PR link.
Royal Caribbean(PBR323) is bolstering its liquity as a precaution to the COVID-19 outbreak, increases revolving credit capacity by $550 million, reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. $RCL PR link.
Dick’s Sporting Goods(PBR350) to close an additional 440 hunt departments in its stores in 2020. $DKS PR link.
Cracker Barrel(PBR719) authorizes up to $25 million share repurchase program, expires 03/05/21. $CBRL PR link.
Take-Two Interactive(PBR793)’s 2K publishing unit gets multi-year partnership deal with the US Natl Football League, encompasses multiple future non-simulation football video game experiences. $TTWO PR link.
Cleveland-Cliffs(PBR842) $3.36/share $1.1 billion acquisition of producer of flat-rolled carbon, stainless and electrical steel products AK Steel(PBR424) gets approval by shareholders of both companies, transaction to be completed 03/13/20. $CLF PR link.
CoreLogic says the December 2019 % of Homes Mortgages 30 or more Days Delinquent is at 3.7%, November 2019 was at 3.9%, October 2019 3.7%, December 2018 4.1%. “Despite recent stress in some areas of the country, mortgage delinquency rates continue to stay at near-record lows.” CoreLogic PR link.
***Monday, March 9
Ross Stores(PBR205) opened 19 Ross Dress for Less® and 7 dd’s DISCOUNTS® stores across 9 different states in February and March, part of plans to add approximately 100 new stores – 75 Ross and 25 dd’s DISCOUNTS locations – during fiscal 2020. $ROST PR link.
Jacobs(PBR243) completes $325 million acquisition of 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. $J PR link.
Willis Towers Watson(PBR346) to be acquired by UK based Aon plc(NYSE: AON) in all stock transaction, will create an $80 billion equity value company, to close in 1H21. $WLTW PR link.
Fifth Third Bancorp(PBR373) gets hit with civil lawsuit by the US Consumer Financial Protection Bureau saying it open fake accounts, denies allegations, says controls are designed to prevent and detect unauthorized account openings, looks forward to court proceedings. $FITB PR link.
Burlington Stores(PBR435 $BURL) to shut down e-commerce site, represented only 0.5% of sales, aims to open net 54 new stores in fiscal year 2020. MarketWatch PR link.
Twitter(PBR727) announces that Silver Lake will make a $1 billion investment in Twitter, will be used in an up to $2 billion share repurchase program; also enters into an agreement with 4% stakeholder Elliott Management to add 2 of its designees to the board. $TWTR PR link.
Wells Fargo(PBR26) Chairman Elizabeth Duke has resigned from the Board, Charles Noski appointed Chairman. $WFC PR link.
FannieMae(PBR23) says the February 2020 Home Purchase Sentiment Index is at 92.5, January 2020 was at 93.0, December 2019 91.7, February 2019 84.3. “The HPSI remained relatively steady in February, reflecting another month of robust consumer sentiment consistent with strong housing market data to start the year… the late February stock market decline, precipitated in part by evolving expectations of the potential economic impact of the coronavirus, is not fully reflected in this month’s results due to the timing of our survey data collection, which ended February 22.” $FNMA PR link.
***Friday, March 6
The PBRMarketTools US Stock Exchanges Recap for Week 10 ending 03/06/20:
DJIA ends Week 10 at 25,864.78, +1.79% from last Friday/MTD, -9.37% QTD/YTD, -12.48% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 10 at 8,575.62, +0.10% from last Friday/MTD,
-4.42% QTD/YTD, -12.65% from record 9,817.18 set 02/19/20.
SPX ends Week 10 at 2,972.37, +0.61% from last Friday/MTD, -8.00% QTD/YTD, -12.22% from record 3,386.15 set 02/19/20.
The Week 10 News Summary: The novel coronavirus respiratory disease continues to be the news headliner as it is detected in additional countries. While still not labelled as pandemic, the news reporting would almost have you believe otherwise. At the end of the week US President Trump signed an $8.3 billion emergency bill to fund coronavirus research and development. On the US political front the Democrat Party surprisingly narrowed the list of presidential candidates on Super Tuesday when former Vice President Joe Biden took 10 out of 14 states. Senator Bernie Sanders is now a distant 2nd. The other leading candidates have dropped out. The US Federal Open Market Committee surprised everyone with a drastic 0.50% drop in the federal funds rate which is now 1.00-1.25%. It is in response to coronavirus and there have been mixed reactions to the move. US economic indices are still showing modest to moderate growth, but they also did not include much coronavirus effect yet. The jobs reports were especially strong. The Stock Market Bull was in charge on Monday and Wednesday, The Stock Market Bear on Tuesday and Thursday. On Friday at the opening of the stock exchanges it appeared that the Bear would end up victorious, but The Stock Market Bull quietly took enough away that he narrowly took the week. Perhaps The Stock Market Bear took an afternoon nap in his lounger.
The Week 10 of 2020 tally YTD is:
The Stock Market Bull: 5 weeks
The Stock Market Bear: 4 weeks
Mixed Results: 1 week
US Foods(PBR119) to acquire 70 small-format cash and carry stores across the US Northwest that serve small and mid-sized restaurants and other food business customers with $1.1 billion in revenues in 2019 Smart Foodservice Warehouse Stores from Apollo Global Mgmt(PBR995) for $970 million cash. $USFD PR link.
Briggs & Stratton(PBR920) strategic repositioning includes a sharp focus on its global expertise in power application, a simpler organization through strategic divestitures, and a streamlined overall business to drive improved capital returns. $BGG PR link.
Cincinnati Bell(PBR973) says new bid to be acquired by Macquarie Infrastructure(PBR933) for $15.50/share cash is a superior offer, Brookfield Infrastructure says it will not put in a counter offer, CBB to enter agreememt with Macquarie on 03/13/20. $CBB PR link.
Chipotle(PBR533) Founder/Executive Chairman Steve Ells steps down from position and Board, CEO Brian Niccol appointed to additional role of Chairman, effectively immediately. $CMG PR link.
The US Dept of Labor says the February 2020 US Total Employed is at 158,759,000, +45,000 from January 2020, +1,810,000 from February 2019, Total Unemployed is at 5,787,000, -105,000 from January 2020, -448,000 from February 2019, Unemployment Rate is at 3.5%, February 2019 was at 3.8%. USDOL PR link.
The US Federal Reserve says the Preliminary January 2020 Consumer Credit Outstanding Annual Rate-Revolving is at $$1.090 trillion, Non-Revolving $3,113 trillion, Total $4.203 trillion, +0.3% from December 2019, +4.4% from January 2019. USFed PR link.
The US Dept of Commerce/Census says the Preliminary January 2020 US Wholesale Sales-Durable Goods is at $238.0 billion, Non-Durable Goods $266.5 billion, Total $504.5 billion, +1.6% from December 2019, +2.2% from January 2019. For Wholesale Inventories click on the PR link. USDOC PR link.
The US Dept of Commerce/Census says the Preliminary January 2020 US Exports-Goods is at $136.4 billion, Services $72.2 billion, Total Exports $208.6; US Imports-Goods is at $203.4 billion, Services $50.5 billion, Total Imports $253.9 billion; Deficit-Goods is at $67.0 billion, Surplus-Services $21.7 billion, Total Deficit $45.3 billion, December 2019 Total Deficit was $48.6 billion, November 2019 Total Deficit $43.8 billion, January 2019 Total Deficit was $53.8 billion. USDOC PR link.
***Thursday, March 5
HP(PBR55) rejects Xerox(PBR308 $XRX)‘s latest proposal to be acquired for $24.00/share cash & stock, says Xerox offer meaningfully undervalues HP and disproportionately benefits Xerox shareholders. $HPQ PR link.
Allergan(PBR198) gets US FDA approval for New Drug Application (NDA) for DURYSTA™ (bimatoprost implant) 10 mcg for intracameral administration, becomes the first intracameral, biodegradable sustained-release implant indicated to reduce intraocular pressure (IOP) in patients with open-angle glaucoma (OAG) or ocular hypertension (OHT). $AGN PR link.
Newmont Goldcorp(PBR400) completes $260 million sale of its 19.9% equity stake in Continental Gold, was part of a contractual arrangement to support Zijin Mining Group’s acquisition of Continental. $NEM PR link.
Chipotle(PBR533) is increasing its Paid Parental Leave for Restaurant Support Center and eligible field employees to 12 weeks for birth moms and four weeks for new dads and individuals adopting children; also testing unlimited paid time off (PTO) for Restaurant Support Center Directors and above as well as Executive Team Directors and Team Directors in 2020. $CMG PR link.
Tailored Brands(PBR696) completes $115 million sale of its Joseph Abboud trademarks to WHP Global, has also entered into a licensing agreement with WHP for the exclusive rights to sell and rent Joseph Abboud branded apparel and related merchandise in the US and Canada. $TLRD PR link.
La-Z-Boy(PBR939) to acquire the business that operates six independently owned La-Z-Boy Furniture Galleries® stores, with approximately $30 million in annual retail volume, and one warehouse in the Seattle, WA market, is a result of the planned retirement of independent dealers, to close in 06/20, terms not disclosed. $LZB PR link.
JPMorgan Chase(PBR24) colleagues, shareholders & clients sent letter saying Chairman/CEO Jamie Dimon had succeessful emergency heart operation, is doing well, Co-Presidents & COO’s to lead company during Dimon’s recuperation. $JPM PR link.
Gap Inc(PBR186)’s Old Navy unit CEO Sonia Syngal to become Gap CEO and Board member on 03/23/20. $GPS PR link.
Western Digital(PBR187) hires David Goeckeler as CEO and member of the Board, effective 03/09/20. $WDC PR link.
The US Dept of Labor says the 4Q19 US Business Sector Labor Productivity Output/Hour Percent Change From Previous Quarter Annual Rate is at +1.0%, 3Q19 was -0.4%, 2Q19 +2.9%, 1Q19 +3.9%, 2019 Annual Rate is +1.9%, 2018 was +1.4%, 2017 +1.4%. USDOL PR link.
The US Dept of Commerce/Census says the Preliminary January 2020 Manufacturers New Sales-Durables is $246.0 billion, Non-Durables $251.9 billion, Total $497.9 billion, -0.5% from December 2019 and -0.5% from January 2019. See the report for Shipments and Inventories. USDOC PR link.
***Wednesday, March 4
General Motors(PBR17) reveals its Ultium battery with energy options ranging from 50 to 200 kWh, which could enable a GM-estimated range up to 400 miles or more on a full charge with 0 to 60 mph acceleration as low as 3 seconds. Motors designed in-house will support front-wheel drive, rear-wheel drive, all-wheel drive and performance all-wheel drive applications. Chevrolet, Cadillac, GMC and Buick will all be launching new EVs starting late 2020. $GM PR link.
AMD(PBR442) with Lawrence Livermore National Laboratory (LLNL) and Hewlett Packard Enterprises(PBR103) announce El Capitan, the upcoming exascale class supercomputer at LLNL, will be powered by next generation AMD EPYC™ CPUs, AMD Radeon™ Instinct GPUs and open source AMD ROCm heterogeneous computing software, will exceed 2 exaflops, expected to be more powerful than today’s 200 fastest supercomputers combined, will support National Nuclear Security Administration requirements for its primary mission of ensuring the safety, security and reliability of the nation’s nuclear stockpile, to be available in early 2023. $AMD PR link.
Align Technology(PBR894) to acquire privately held global leader in the dental CAD/CAM software market exocad Global Holdings GmbH for around $415 million cash, to close in 2Q20. $ALGN PR link.
Cincinnati Bell(PBR973) acquisition by Brookfield Infrastructure and its institutional partners amended, raised from $12.50/share to $13.50/share cash, $2.797 billion, including debt, selected over similar bid from Macquarie Infrastructure(PBR933), to close by end of 2020. $CBB PR link.
Advance Auto Parts(PBR317) Independent Chair Jeffrey Smith will not stand for re-election at the 05/20 annual meeting of shareholders, Eugene Lee, Jr expected to be appointed successor. $AAP PR link.
The US Federal Reserve releases its Beige Book for data through 02/24/20, says, “Economic activity expanded at a modest to moderate rate over the past several weeks, according to the majority of Federal Reserve Districts… Outlooks for the near-term were mostly for modest growth with the coronavirus and the upcoming presidential election cited as potential risks.” USFed PR link.
ADP(PBR219) says the Preliminary February 2020 US Change In Non-Farm Private Employment is +183,000, +24,000 from Small Businesses(1-49 employees), +26,000 from Medium-Sized Businesses(50-499), +133,000 from Large Businesses(500 and more); +11,000 are from the Goods Producing Sector, +172,000 from the Services Sector. $ADP PR link.
The Institute for Supply Management says the February 2020 US Non-Manufacturing Index(>50 is economy is growing) is at 57.9%, January 2020 was at 55.5%, December 2019 55.0%, February 2019 59.7%. “Most respondents are concerned about the coronavirus and its supply chain impact. They also continue to have difficulty with labor resources. They do remain positive about business conditions and the overall economy.” ISM PR link.
IHS Markit says the February 2020 US Composite PMI Output Index is at 49.6, January 2020 was at 53.3, December 2019 52.7, February 2019 55.5. “Political and economic uncertainty, the coronavirus outbreak and financial market turmoil all risk building into a cocktail of risk aversion that has severely heightened downside risks to the economy in coming months.” IHS Markit PR link.
***Tuesday, March 3
Ford(PBR12) announces that its best-selling cargo van in the world, the Ford Transit, is going digital, with an all-electric version coming for the 2022 model year, will be manufactured in the US. $F PR link.
Chevron(PBR15) expects to return to shareholders $75-80 billion over the next five years through disciplined capital spending, improved cost efficiency, and continued cash flow growth. $CVX PR link.
Lockheed(PBR61) delivers 500th F-35 aircraft, surpasses 250,000 flight hours. $LMT PR link.
Honeywell(PBR74) on track to release a quantum computer with a quantum volume of at least 64, twice that of the next alternative in the industry, to be available in mid-2020. $HON PR link.
AbbVie(PBR94) $63 billion acquisition of Allergan(PBR197) gets European Commission‘s final approval, US Federal Trade Commission decision is expected in early 2Q20. $ABBV PR link.
Eli Lilly(PBR116) says it sees no interuption in the production and distribution of its medicines, including all forms of insulin, due to coronavirus spread concerns, most manufacturing and raw supplies do not come from China. $LLY PR link.
Thermo Fisher Scientific(PBR118) to acquire Netherlands based global provider of molecular diagnostics and sample preparation technologies QIAGEN NV(NYSE: QGEN; Frankfurt Prime Standard: QIA) for around $11.5 billion, includes $1.2 billion in debt, to close in 1H21. $TMO PR link.
Equinix(PBR489) completes $335 million acquisition of bare metal automation platform provider Packet. $EQIX PR link.
OneMain(PBR538) authorizes an up to $100 million share repurchase program with no expiration date. $OMF PR link.
East West Bancorp(PBR916) authorizes an up to $500 million share repurchase program, is inclusive of the Company’s $100 million stock repurchase authorization currently outstanding. $EWBC PR link.
Deere & Co(PBR79) Chairman Samuel R. Allen to retire 05/01/20 after a 45 year career, CEO John May to add Chairman role at that time. $DE PR link.
The US Federal Open Market Committee in an emergency session regarding the potential economic impact of the potential spread of the coronavirus disease authorizes a 0.50% reduction rate in the federal funds rate, which is now 1.00%-1.25%, FOMC PR link.
The PurdueU/CME Group February 2020 Ag Economy Barometer Composite Index is at 168, a new high, January 2020 was at 167, December 2019 150, February 2019 136. “Producers were more optimistic about current conditions on their farms and in U.S. agriculture and retained most of the improvement in expectations for the future that they exhibited in January.” PurdueU/CME Group PR link.
***Monday, March 2
Apple(PBR4 $AAPL) to pay up to $500 million to settle US lawsuit for quietly slowing down older iPhones as it launched new models, to induce owners to buy replacement phones or batteries, will be $25 per iPhone, Apple denies wrongdoing. yahoo finance PR link.
Alphabet(PBR11 $GOOG) self-driving unit Waymo raises $2.25 billion from investors. MarketWatch PR link.
Anthem(PBR31) completes acquisition of 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. $ANTM PR link.
Gilead Sciences(PBR139) to acquire Forty Seven for $95.50/share cash, $4.9 billion, will strengthen Gilead’s immuno-oncology research and development portfolio, to close in 2Q20. $GILD PR link.
Ingersoll-Rand(PBR200) completes spinoff its Industrial segment to IR shareholders, combine it with Gardner Denver(PBR758), will be called Ingersoll-Rand, retain IR ticker; remainder of IR Climate company renamed Trane Technologies plc, starts trading on NYSE with symbol TT, received $1.9 billion. $IR PR link.
JCPenney(PBR260) will expand Style on the Go Curbside Pickup services to 50 additional locations across the US. $JCP PR link.
Xerox(PBR308) launches a tender offer to acquire all outstanding shares of HP(PBR55) for $24.00/share, comprising $18.40 in cash and 0.149 Xerox shares for each HP share. $XRX PR link.
Constellation Brands(PBR334) completes sale of its Ballast Point brand and a number of its associated production facilities and brewpubs, excluding Constellation’s Craft & Specialty operations in Daleville, VA, to Chicagoland-based Kings & Convicts Brewing Co. $STZ PR link.
Avery Dennison(PBR404) completes $252 million acquisition of Amsterdam, Netherlands based around 900 employees Smartrac’s Transponder (RFID Inlay) Division. $AVY PR link.
Toro(PBR710) completes $167.5 million in cash acquisition of privately-held Orrville, OH based $100 million in 2019 revenues manufacturer of articulating turf, landscape, and snow and ice management equipment for the grounds, landscape contractor, golf, municipal and rural acreage markets Venture Products. $TTC PR link.
GE(PBR33) Chairman/CEO Larry Culp issues statement on passing of former Chairman/CEO John F. Welch, Jr. $GE PR link.
The US Dept of Commerce/Census says the Preliminary January 2020 Construction Spending Annual Rate-Residential is at $562.3 billion, Non-Residential $807.0 billion, Total $1.369 trillion, +1.8% from December 2019, +6.6% from January 2019. USDOC PR link.
The Institute for Supply Management says the Preliminary February 2020 US Manufacturing PMI Index(>50% economy expanding) is at 50.1%, January 2020 was at 50.9%, December 2019 47.8%, February 2019 54.2%. “… Overall, sentiment this month is marginally positive regarding near-term growth…” ISM PR link.
IHS Markit says the February 2020 US Manufacturing PMI Index is at 50.7, January 2020 was at 51.9, December 2019 52.4, February 2019 53.0. IHS Markit PR link.
***Friday, February 28
The PBRMarketTools US Stock Exchanges Recap for Week 9 and February ending 02/28/20:
DJIA ends Week 9 and February at 25,409.36, -12.36% from last Friday, -10.07 MTD, -10.96% QTD/YTD, -14.02% from record 29,551.42 set 02/12/20.
NASDAQ ends Week 9 and February at 8,567.37, -10.54% from last Friday, -6.38% MTD, -4.52% QTD/YTD, -12.73% from record 9,817.18 set 02/19/20.
SPX ends Week 9 and February at at 2,954.22, -11.49% from last Friday, -8.41 MTD, -8.56% QTD/YTD, -12.76% from record 3,386.15 set 02/19/20.
The Week 9 and February of 2020 News Summary: The primary focus globally has escalated to be just the novel coronavirus respiratory disease, still mostly in China, but increasing numbers in other countries of the world. Containment is still uncertain, the economic impact still unmeasurable to any degree of accuracy. In the US President Trump gave a speech and took questions at a press conference, and appointed Vice President Pence to lead the effort to continue to contain coronavirus. President Trump also had a state visit to India, the largest democracy in the world, negotiated for a new treaty, and announced India’s purchase of $3 billion of US military goods. In the US economic indices continue to be mostly positive, but most surveys and analyses are based on results prior to the increased news about the coronavirus. The same can be said for US corporate earnings reports, which were mostly positive, but many provided guidance with caveats about future earnings based on, once again, coronavirus. The Stock Market Bull was noticeably absent during the week, The Stock Market Bear, aka SARS CoV-2, prevailed significantly every day to take a big win 3-0 for Week 9 and for February.
The Week 9 of 2020 tally YTD is:
The Stock Market Bull: 4 weeks
The Stock Market Bear: 4 weeks
Mixed Results: 1 week
The Month of February 2020 tally YTD is:
The Stock Market Bull: 0 months
The Stock Market Bear: 1 month
Mixed Results: 1 month
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