With a Republican controlled Senate and a Democratic controlled House the new US Congress will have many challenges to create legislation to keep America moving forward.
By Larry C. Paxton
The January 2019 The PBR1000 News Summary: The biggest news was the US Federal Government partial shutdown, which finished late on 01/25/19 after 35 days with 800,000 government workers furloughed. Economists generally agree that the global economy is entering a slowdown phase. The US economy showed some slowing down signs as well, but is still growing at a healthy rate. The FOMC keeps short term federal funds rates the same and strikes a dovish tone. New US/China trade talks have eased concerns a little bit and there is some optimism. Corporate earnings were generally good.
***Thursday, January 31:
The PBRMarketTools US Stock Exchanges Recap for January 2019 Ending 01/31/19:
DJIA ends January 2019 at 24,999.67, +1.06% from last Friday, +7.17% MTD/QTD/YTD, -6.82% from record 26,743.50 set 09/21/18.
NASDAQ ends January 2019 at 7,281.74, +1.63% from last Friday, +9.74% MTD/QTD/YTD, -10.21% from record 8,109.69 set 08/29/18.
SPX ends January 2019 at 2,704.10, +1.48% from last Friday, +7.87% MTD/QTD/YTD, -7.73% from record 2,930.75 set 09/20/18.
The January 2019 US Stock Exchanges Summary: There were a few days in January 2019 when The Stock Market Bear would take a big chunk out of the US stock exchanges. However, those were always isolated 1 day events because The Stock Market Bull would quickly counter with a big charge of his own and string together a few nice positive days. The Stock Market Bull convincingly wins January 3-0 in a pretty dramatic comeback from December 2018.
The Month 1 YTD tally is:
The Stock Market Bull: 1 month
The Stock Market Bear: 0 months
Mixed Results: 0 months
American Airlines(PBR62) to hire 250+ aviation maintenance technicians(AMTs) across around 30 cities by mid 2019, currently has 9,000+ AMTs. $AAL PR link.
Sprint(PBR85) says it had 54,495,000 connections on 12/31/18, down from 54,581,000 on 12/31/17. $S PR link.
Enterprise Products(PBR97) authorizes multi-year $2 billion common unit buyback program. $EPD PR link.
Blackstone(PBR386) Infrastructure Partners affiliates to acquire 100% of the membership interests in Tallgrass Energy, LP (NYSE: TGE)’s general partner, as well as an approximately 44% economic interest in Tallgrass, for total cash consideration of approximately $3.3 billion. $BX PR link.
Essendant(PBR506) $12.80/share, $996 million cash, includes net debt, acquisition through Staples tender offer is completed. $ESND PR link.
Mattel(PBR515) announces a worldwide licensing agreement between its Barbie brand and National Geographic to create a product line and content centered around exploration, science, conservation and research, features career dolls and playsets highlighting occupations in which women are underrepresented. $MAT PR link.
Platform Specialty(PBR607) completes $4.2 billion cash sale of its Arysta LifeScience unit to UPL Corporation, renaming itself to Element Solutions Inc effective 02/01/19, trading symbol to change to NYSE: ESI, Rakesh Sachdev retires as CEO, remains on the Board, EVP/Operations & Strategy Benjamin Gliklich becomes CEO, Scot Benson promoted to President/COO. $PAH PR link.
Graham Holdings(PBR775) has acquired Lexus of Rockville and Honda of Tysons Corner, from Sonic Automotive(PBR288), terms not disclosed. $GHC PR link.
Intel(PBR44) appoints CFO/Interim CEO Bob Swan as CEO, VP/Finance Todd Underwood named interim CFO. $INTC PR link.. Intel(PBR44) CEO Bob Swan sends first letter to employees, customers and partners, Subject: Driving Intel Forward. $INTC PR link.
Alcoa(PBR250) hires John Slaven as EVP/Chief Strategy Officer. $AA PR link.
Symantec(PBR519) EVP/CFO Nicholas Noviello to step down upon appointment of successor, to pursue other opportunities. $SYMC PR link.
The US Dept of Labor says US Initial Unemployment Insurance Claims 4 Week Moving Average for Week Ending 01/26/19was at 220,250, +1.0% from 12/22/18, -5.9% from 01/27/18, Total Insured Unemployment 4 Week Moving Average for Week Ending 01/19/19 was at 1,737,750, +3.7% from 12/15/18, -9.9% from 12/15/18, Insured Unemployment Rate is at 1.4%. USDOL PR link.
The US Dept of Labor says the US 4Q18 Employment Cost Index for All Workers(12/2005=100) is at 135.2, +0.7% from 3Q18, +2.9% from 4Q17. USDOL PR link.
The US Dept of Commerce/HUD says the US Preliminary November 2018 New Family Homes Sold Annual Rate was at 657,000 units, +16.9% from October 2018, -7.7% from November 2017, Median Price was at $302,400, Houses Available were 330,000, Months Supply was 6.0. HUD PR link.
FreddieMac(PBR37) says the US Average 30 Year Fixed Mortgage Rate on 01/31/19 is at 4.46% with 0.5 points/fees, 12/27/18 was 4.55%, 11/29/18 4.81%, 12/28/17 3.99%. $FMCC PR link.
The Federal Reserve Bank of Chicago says the US 7th District Preliminary December 2018 Midwest Economy Index is at +0.17, November 2018 was at +0.11. ChiFed PR link.
The MNI Chicago Business Barometerdropped to 56.7 in January 2019, down 7.1 points from December 2018’s downwardly adjusted 63.8. MNI PR link.
***Wednesday, January 30:
Walmart(PBR1) enters new, long-term partnership with sports fan brand Fanatics, opens on Walmart.com the Fan Shop by Fanatics for officially licensed apparel and other items. $WMT PR link.
Apple(PBR2 $AAPL) being investigated by NY Attorney General and Governor for FaceTimeprivacy breach. NY AG PR link.
Apple(PBR2) Music available to subscribers on free wifi on domestic American Airlines(PBR62 $AAL) flights. $AAPL PR link.
Apple(PBR2 $AAPL) bans Facebook(PBR67 $FB)’s Research app that paid users $20/month for root network access to all data passing through their phone. TechCrunch PR link.
AT&T(PBR10) says it had 2.8 million from the US and 1.0 million from Mexicon net new adds to its wireless service, helped offset losses from legacy wireline services, wireless equipment, domestic video and Vrio. $T PR link.
Chevron(PBR13) US subsidiary to acquire from Petrobas the Pasadena Refining System, includes the refinery in Texas and PRSI Trading, for $350 million. $CVX PR link.
Facebook(PBR67) in 4Q18 report says around 2.7 billion people now use Facebook, Instagram, WhatsApp, or Messenger each month, 2018 revenues at $55.013 billion, +38% from 2017. $FB PR link.
T-Mobile(PBR68) and Sprint(PBR85) upon completion of merger to develop 5 new T-Mobile Customer Experience Centers, will create an average of 1,000 jobs per location. $TMUS PR link.
Kraft Heinz(PBR104) completes $625 million sale of its $150 million in revenues/year Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Cadila. $KHC PR link.
Mylan(PBR246 $MYL) gets US FDA approvalfor first generic for of Advair Diskus (fluticasone propionate and salmeterol inhalation powder) for the twice-daily treatment of asthma in patients aged four years and older and maintenance treatment of airflow obstruction and reducing exacerbations in patients with chronic obstructive pulmonary disease (COPD). US FDA PR link.
Tesla(PBR248) in 4Q18 & 2018 report shows profit for 2nd quarter in a row, sold nearly 140,000 Model 3’s, expects to produce 7,000 Model 3’s on a sustained basis by end of 2019, deployed 1.04 GWh of energy storage in 2018, nearly triple from 2017. $TSLA PR link.
Charles Schwab(PBR328) authorizes new $4 billion share repurchase program. $SCHW PR link.
DCP Midstream(PBR332) to sell to NGL Energy(PBR160 $NGL) its wholesale propane business, generally consisting of seven natural gas liquids terminals in the Eastern US, terms not disclosed. $DCP PR link.
Genworth Financial(PBR339) sale to China Oceanwide for $5.43/share, $2.7 billion cash close extended from 01/31/19 to 03/15/19 to get additional US, China, Canada and other regulatory approvals. $GNW PR link.
Avon Products(PBR469) pursuing a structural reset of its inventory processes, including a 15% reduction in inventory levels and 25% reduction in Stock Keeping Units (SKUs) and a 10% reduction in its global headcount. $AVP PR link.
Michaels Cos(PBR488) to close all of its 36 Pat Catan’s arts and crafts stores, to rebrand up to 12 of the closed Pat Catan’s stores and reopen them under the Michaels banner in FY 4Q18. $MIK PR link.
Mattel(PBR515) Films to partner with Warner Bros Pictures do develop Hot Wheels live-action motion picture. $MAT PR link.
CACI Intl(PBR537) and affiliates to acquire to acquire real-time spectrum management, C4ISR, and cyber products and solutions to the Intelligence Community (IC) and Department of Defense (DoD) provider LGS Innovations, has acquired rapid design and manufacturing of rugged signals intelligence (SIGINT), electronic warfare (EW), and cyber operations products and solutions experts Mastodon Design, for a combined total of $975 million. $CACI PR link.
Cabot Corp(PBR675) to sell its Specialty Fluids business to a wholly owned Hong Kong subsidiary of Sinomine Resource Group Cofor $135 million. $CBT PR link.
Marathon Oil(PBR551) President/CEO Lee Tillman appointed to also be Chairman per retirement of Dennis Reilley as Chairman for 6 years and Board member for 17 years. $MRO PR link.
Edison Intl(PBR237) promotes Caroline Choi to SVP/Corporate Affairs, effective 02/04/19, succeeds retiring Gaddi Vasquez. $EIX PR link.
Tesla(PBR248 $TSLA) CFO Deepak Ahuja plans to retire from Tesla sometime in 2019, VP Finance Zach Kirkhorn to be successor. Yahoo Finance PR link.
The Federal Open Market Committee releases the 01/29-30/19 Meeting Statement, says information received since last meeting in December 2018 “… indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate … survey-based measures of longer-term inflation expectations are little changed … to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent.” FOMC PR link.
ADP(PBR216) says US Preliminary January 2019 Change In Employment is +213,000 jobs, 63,000 from Small Businesses(1-49 employees), 84,000 from Mid-Sized Businesses(50-499 employees), 66,000 from Large Businesses(500+ employees); 68,000 jobs were from the Goods Producing Sector, 145,000 from the Services Sector. $ADP PR link.
The US Energy Information Administrationsays that US Crude Oil Stocks on 01/24/19were at 445.9 million barrels of oil, +1.0% from 12/21/18, +6.6% from 01/26/19. EIA PR link.
***Tuesday, January 29:
ExxonMobil(PBR3) starts construction on a new unit at its Beaumont, TX refinery that will increase crude refining capacity by more than 65%, or 250,000 barrels per day. $XOM PR link.
Verizon(PBR17) says it had 1.2 million wireless retail postpaid net additions, including 653,000 phone net additions and 873,000 postpaid smartphone net additions in 4Q18. $VZ PR link.
HCA(PBR59) increases share buyback program by up to $2 billion. $HCA PR link.
Tenet Healthcare(PBR142) completes sale of its last 3 Chicago area acute care hospitals to TWG Partners, will be managed by Pipeline Health. $THC PR link.
VISA(PBR143) extends partnership with US Natl Football League as Official Payment Services Technology Partner through the 2025 season, plans to collaborate on the first cashless Super Bowl in the future. $V PR link.
Kohl’s(PBR151) and WW(fka Weight Watchers)(PBR974) will pilot a variety of health and wellness offerings to help customers and Kohl’s associates on their wellness journeys, including the debut of its first in-store WW Studio, the introduction of WW Healthy KitchenTM products at select Kohl’s stores and on Kohls.com, as well as subsidized WW FreestyleTM program memberships for Kohl’s associates through Kohl’s Healthy Rewards. $KSS PR link.
PG&E(PBR163) files for reorganization under Chapter 11 with the US Bankruptcy Court for the Northern District of California, also files for $5.5 billion in debtor-in-possession (DIP) financing to be provided by a consortium of banks, appoints a Chief Restructuring Officer and a Deputy CRO. $PCG PR link.
MGM Resorts(PBR267) completes $850 million acquisition of Empire City Casino in Yonkers, NY, MGM Growth Properties(NYSE: MGP)acquires the developed real property from MGM Resorts for $625 million, leases back to an MGM Resorts subsidiary. http://bit.ly/PCGia29$MGM PR link.
GameStop(PBR310) has concluded its previously announced efforts to pursue a sale of the company, continuing search for new CEO. $GME PR link.
Arthur J Gallagher(PBR445) acquires Baton Rouge, LA-based employee benefit consultant and retail property/casualty broker The Chapman Group, terms not disclosed. $AJG PR link.
Harley-Davidson(PBR472) in 4Q18 report says it sold 228,051 motorcycles in 2018, 242,788 motorcycles were sold in 2017, -6.1%, 2018 revenues were $4.696 billion, 2017 was $4.915 billion. $HOG PR link.
Boston Properties(PBR774) and TMG Partners to co-develop Platform 16, an urban campus in downtown San Jose, CA, will be 1.1 million sf Class A office space on 5.4 acres adjacent to Google‘s 8 million sf transit station and Diridon Station, to be completed in early 2021. $BXP PR link.
Modine Manufacturing(PBR858) exploring strategic alternatives for its Automotive business, represents 25% of its $2.1 billion annual revenues. $MOD PR link.
First Horizon National(PBR953) adds $250 million to share repurchase program, now has $400 million available. $FHN PR link.
Rowan Cos(PBR978) shareholders to receive 2.750 shares of Ensco for each share of Rowan per amended agreement, represents an approximately 24.2% increase compared to the 2.215 of the 10/07/18 all-stock proposal for $12 billion enterprise value of combined company, some primary shareholders express support. $RDC PR link.
FreddieMac(PBR37) elects Sara Mathew as Non-Executive Chairman, to succeed retiring Christopher S. Lynch who has reached the 10 year limit tenure. $FMCC PR link.
Kroger(PBR18) promotes Stuart W. Aitken to the newly-created role of SVP/Alternative Business, effective 02/03/19. $KR PR link.
Kroger(PBR18) EVP/Chief Information Officer Chris Hjelm to retire 08/01/19, will remain EVP until retirement, Yael Cosset promoted to SVP/CIO, effective 05/01/19. $KR PR link.
Tech Data(PBR77) promotes Jaideep Malhotra to President, Asia Pacific and Global Computing Components. $TECD PR link.
The S&P CoreLogic Case-Shiller US November 2018 National Home Price Index(Jan2000=100) is at 205.85, October 2018 was at 205.74, September 2018 205.77, November 2017 195.70, November 2016184.37. “The pace of price increases are being dampened by declining sales of existing homes and weaker affordability …” Case-Shiller PR link.
The Conference Board says the US Preliminary January 2019 Consumer Confidence Index(1985=100) is at 120.2, December 2018 was at 126.6. “… it appears that this month’s decline is more the result of a temporary shock(the US government partial shutdown) than a precursor to a significant slowdown in the coming months.” TCB PR link.
***Monday, January 28:
AbbVie(PBR99) gets US FDA approval for the use of IMBRUVICA® (ibrutinib) in combination with obinutuzumab (GAZYVA®) for adult patients with previously untreated chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL), first chemotherapy-free, anti-CD20 combination to treat CLL and SLL patients who have not yet started therapy. $ABBV PR link.
Thermo-Fisher Scientific(PBR137) to sell its 1,200 employees $350 million in annual revenues microscope slides, instruments and consumables provider Anatomical Pathology to PHC Holdings Corporation for approximately $1.14 billion in cash. $TMO PR link.
Sempra Energy(PBR259) to sell its equity interests in its South American businesses by end of 2019, part of plan to focus on N Americabusiness. $SRE PR link.
Wynn Resorts(PBR400) reaches settlement agreement with Nevada Gaming Commissionregarding allegations by certain employees against founder and previous CEO Steve Wynn, says settlement is an important remedial step. $WYNN PR link.
Wynn Resorts(PBR400) gets settlement agreement on a dispute involving trade dress and copyright infringement claims surrounding the design of the $4 billion Resorts World Las Vegas project. $WYNN PR link.
Arthur J Gallagher(PBR445) acquires Urbandale, IA-based Partners Advantage Insurance Services and AMZ Financial Insurance Services, wholly owned subsidiaries of Inversion Holding Company, rank among the largest independent life insurance wholesale brokerage operations in the country, terms not disclosed. $AJG PR link.
Caesars Entertainment(PBR517) to open modern 11 story 266 rooms 4 star hotel Caesars Republic Scottsdale, its first non-gaming hotel in the US, to be developed by HCW Development and operated by Aimbridge Hospitality, part of plan to expand its brands and loyalty network through its licensing strategy. $CZR PR link.
Spectrum Brands(PBR689) completes $1.25 billion sale of its Global Auto Care business to Energizer Holdings(NYSE: ENR). $SPB PR link.
Guess?(PBR814) CEO Victor Herrero leaving the company, effective 02/02/19, Chairman Maurice Marciano to also be interim CEO, former President/COO Carlos Alberini to rejoin Guess? as CEO effective upon his separation from current employer, Paul Marciano to remain Chief Creative Officer. $GES PR link.
Sanmina(PBR396) CFO David Anderson to retire from company after 17 years of service, will continue as CFO until successor named. $SANM PR link.
YUM!(PBR461) President/CFO David Gibbs gets COO responsibilities as well, new CFO search starts. $YUM PR link.
WW(Weight Watchers)(PBR974) hires Amy Weinblum as Chief Business Development Officer. $WTW PR link.
The Federal Reserve Bank of Chicago says the US Preliminary December 2018 National Activity Index is at +0.27, November 2018 was at +0.21, October 2018 +0.01, December 2017+0.19. ChiFed PR link.
The Congressional Budget Office in its 2019-2029 Budget and Economic Outlook forecasts a federal budget deficit of around $900 billion in 2019, $1+ trillion per year starting in 2022, 4.1-4.7% of Gross Domestic Product(GDP), projects GDP to be around +2.3% in 2019, 2018 estimated at +3.1%. CBO PR link.
The Congressional Budget Office estimates that the partial shutdown delayed $18 billion in federal spending and suspended some federal services, thus lowering the projected level of real GDP in the first quarter of 2019 by $8 billion (in 2019 dollars), or 0.2 percent. CBO PR link.
***Friday, January 25:
***Day 35 of the US Federal Government partial shutdown.
The PBRMarketTools US Stock Exchanges Recap for Week 4 ending 01/25/19:
DJIA ends the week at 24,737.20, +0.12% from last Friday, +6.04% MTD/QTD/YTD, -7.79% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 7,164.86, +0.11% from last Friday, +7.98% MTD/QTD/YTD, -11.65% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,664.76, -0.22% from last Friday, +6.30% MTD/QTD/YTD, -9.08% from record 2,930.75 set 09/20/18.
The Week 4 US Stock Exchanges Recap:
It was a 4 day trade week as Monday was Martin Luther King, Jr, Day. On Tuesday The Stock Market Bear dramatically charged into the fray with hardly any resistance. But The Stock Market Bull took over from there in more modest style, but over 3 days overtook most of the Tuesday losses and in a week that could have gone either way, finished Week 4 with a 2-1 record, the first Mixed Results Week of 2019.
The Week 4 YTD tally is:
The Stock Market Bull: 3 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 1 week
The Week 4 News Summary: The week ended with the record 35 day US Federal Government partial shutdown coming to an end with Congress and President Trump agreeing to open it up through February 15 to finish negotiations on funding, especially for US border security. There was little meaningful economic news because very few government statistics were made available. However, Natl Assn of Realtors data indicated a drop in the annual rate of existing home sales, and The Conference Board Leading Economic Indextook a very slight dip. There are concerns about a global economic slowdown, the European Commission Bank left rates unchanged and probably will for some time. US corporate earnings were generally okay with a lot of mixed results as well. The next round of US/China trade negotiations are being planned with mostly muted optimism.
GE(PBR19) and Wabtec(PBR595 $WAB)amend agreement for $11.1 billion deal for GE to spin-off GE Transportation unit which will then merge into Wabtec, will now result in 49.2% ownership by GE and GE shareholders, 50.8% by Wabtec, to close by 02/28/19. $GE PR link.
Facebook(PBR67 $FB) orchestrated a multiyear effort that duped children and their parents out of money, in some cases hundreds or even thousands of dollars, and then often refused to give the money back, according to unsealed court documents. Reveal PR link.
DXC Technology(PBR113) to acquire the 570 employees with 4,000 clients service business of EG A/S, one of the leading integrators of Microsoft Dynamics 365 in the Nordic region, to close by 03/31/19, terms nod disclosed. $DXC PR link.
Ingredion(PBR441 $INGR) on the hunt for acquisitions in Europe and Asia-Pacific as the maker of sugar substitute stevia and other ingredients looks to capitalize on rising consumer demand for healthy and natural products. MarketWatch PR link.
GATX(PBR966) authorizes new $300 million share repurchase program. $GATX PR link.
GE(PBR19) hires L. Kevin Cox as SVP/Chief Human Relations Officer, succeeds Raghu Krishnamoorthy who is retiring after 25 years with the company. $GE PR link.
AMD(PBR489) to unify all sales operations under SVP/Chief Sales Officer Darren Grasby, hires Sandeep Chennakeshu into a new position as EVP/Computing and Graphics, SVP/General Manager Datacenter and Embedded Solutions Group Forrest Norrod will now have responsibility for all AMD datacenter products across both CPUs and GPUs, promotes Mark Papermaster to EVP/Chief Technology Officer. $AMD PR link.
***Thursday, January 24:
***Day 34 of the US Federal Government partial shutdown.
Walmart(PBR1) hires 1,400 truck drivers in 2018, to hire hundreds more in 2019, raising driver pay beginning in 02/19, drivers will earn on average $87,500 a year and with an all-in rate close to 89 cents per mile. $WMT PR link.
Apple(PBR2 $AAPL) has cut over 200 employees from Project Titan, its stealthy autonomous vehicle initiative. CNBC PR link.
Facebook(PBR67 $FB) CEO Mark Zuckerberg defends Facebook’s business as ‘still evolving and improving.’ MarketWatch PR link.
Progressive(PBR101) expects to hire more than 10,000 people in 2019, includes IT and analyst roles, corporate functions, customer care and claims roles, largest hiring forecast in Progressive’s history. $PGR PR link.
PG&E(PBR163) equipment did not cause 2017 Tubbs wildfire, CAL FIRE concludes, still faces extensive litigation, significant potential liabilities and a deteriorating financial situation. $PCG PR link.
General Mills(PBR179) announces voluntary national recall of five-pound bags of its Gold Medal Unbleached Flour with a better if used by date of 04/20/20, potential presence of Salmonella. $GIS PR link.
MGM Resorts(PBR267) forms ad-hoc Board committee to evaluate its real estate portfolio. $MGM PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 01/30/19, 73.4% of shares have been tendered. $ESND PR link.
Platform Specialty(PBR607) gets final regulatory approval to sell its Arysta LifeScience unit to UPL Corporation for $4.2 billion cash, expects to close on 01/31/19. $PAH PR link.
Adobe Systems(PBR377) EVP/General Manager of Digital Experience Brad Rencher will be leaving the company, to stay on as a special advisor while new leader identified over new business structure. $ADBE PR link.
The Conference Board says the US Preliminary December 2018 Leading Economic Index(2016=100) is at 111.7, November 2018 was at 111.8, October 2018111.6, December 2017 107.2. “While the effects of the government shutdown are not yet reflected here, the LEI suggests that the economy could decelerate towards 2 percent growth by the end of 2019.” TCB PR link.
***Wednesday, January 23:
***Day 33 of the US Federal Government partial shutdown.
Facebook(PBR67) taking new steps in how it handles Page content that goes against its policies, adding Page Quality tab for Page managers, updates its Recidivism Policy. $FB PR link.
PG&E(PBR163 $PCG) in a court filing says it’s committed to system upgrades and wildfire mitigation, but it contends that a criminal case being handled by U.S. District Judge William Alsup is not the right forum to address such measures, judge’s proposals would cost $150 billion, significantly increase utility rates. MarketWatch PR link.
Synchrony Financial(PBR169) gets extension to continue to manage and service the credit card programs for Walmart(PBR1)’s Sam’s Club members across the retailer’s nearly 600 clubs, sale of Walmart loan portfolio currently serviced by Synchrony expected to transfer late in the 3Q19 or early 4Q19, and Walmart has agreed to dismiss its lawsuit against Synchrony. $SYF PR link.
Tesla(PBR248 $TSLA) has reduced Model S and Model X production hours, says changes a result of dropping cheaper versions of its Model S and Model X vehicle as well as of “improving efficiencies” in its production lines. MarketWatch PR link.
LAM Research(PBR262) authorizes up to $5 billion share repurchase program with no expiration date. $LRCX PR link.
Nielson Holdings(PBR413) has restarted a process to sell itself amid fresh interest from Blackstone Group(PBR386), anticipating $10 billion bid on 01/25/19. $NLSN PR link.
Bemis(PBR579) $57.75/share, $6.8 billion all stock transaction acquisition by Australia based Amcor Limited (ASX: AMC) delayed by US Federal Government partial shutdown, anticipates transaction to close in 2Q19. $BMS PR link.
Hologic(PBR679) gets US FDA clearance for its Aptima® Mycoplasma genitalium assay, the first and only FDA-cleared test to detect this under-recognized but increasingly common sexually transmitted infection (STI). $HOLX PR link.
Autodesk(PBR865) completes $275 million acquisition of bid management, risk analysis and other preconstruction solutions with a network of more than 700,000 construction professionals provider BuildConnect. $ADSK PR link.
Avista(PBR957) $53/share, $5.3 billion cash acquisition by Ontario, Canada, based electrical utility Hydro One terminated by mutual agreement after acquisition denial by the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission. $AVA PR link.
Cardinal Health(PBR15) hires Brian Rice EVP/Chief Information Officer and Customer Support Services. $CAH PR link.
Jones Lang LaSalle(PBR348) promotes Mary Bilbrey to Global Chief HR Officer, succeeds Trish Maxson who maintains her roles as Chief Administrative Officer and interim CFO. $JLL PR link.
Under Armour(PBR512) hires Tchernavia Rocker as its new Chief People and Culture Officer, effective in 02/19. $UA PR link.
Vertex Pharmaceuticals(PBR790) terminates COO/Interim CFO Ian Smith for personal behavior issues, SVP/Controller & Chief Accounting Officer Paul Silva appointed interim CFO. $VRTX PR link.
Pier 1 Imports(PBR905) hires Robert Bostrom, 66, as EVP/Chief Legal and Compliance Officer and Corporate Secretary, succeeds Michael Carter who retired in 09/18. $PIR PR link.
The Federal Reserve Bank of Richmond says 5th District January 2019 Manufacturing Index(Annualized) is at -2%, December 2018was at -8%, November 2018 +14%, January 2018 +14%. “… manufacturing activity was soft in January … manufacturers remained optimistic that conditions would improve in the coming months.” RichmondFed PR link.
The Federal Reserve Bank of Richmond says 5th District January 2019 Service Sector Revenue Index(Annualized) is at +6%, December 2018 was at +10%, November 2018+5%, January 2018 +20%. “… service sector activity continued to grow modestly in January … Respondents expected to see continued growth in revenues and demand but weak local conditions in the next six months.” RichmondFed PR link.
ADP(PBR216) says US 4Q18 Wage Growthwas at 3.4%, 4Q17 was at 3.1%, 4Q18 Wage Level was at $28.06, 4Q17 was at $27.13, 4Q18 Employment Growth was at 1.7%, 4Q17 was at 2.1%, 4Q18 Turnover Rate was at 67.5%, 4Q17was at 60.8%. $ADP PR link.
***Tuesday, January 22:
***Day 32 of the US Federal Government partial shutdown.
Walgreens Boots Alliance(PBR16 $WBA) to pay $269 million to settle charges of federal health-care programs overbilling. MarketWatch PR link.
Lowe’s(PBR39) becomes official Home Improvement Retail Sponsor of the NFL, exclusive, multi-year sponsorship grants Lowe’s the ability to market and activate on a national and local level throughout the year, including at key events such as the Super Bowl, NFL Draft, NFL Combine, NFL Kickoff and in support of the NFL’s Salute to Service. $LOW PR link.
UPS(PBR41) Latch smart access devices service for drivers to make in-building deliveries to multi-unit buildings securely and conveniently for residents who are not at home in New York and San Francisco service being expanded to Atlanta, Chicago, Los Angeles, Houston, Dallas, Washington D.C., Philadelphia, Boston, Miami and Seattle. $UPS PR link.
Oracle(PBR73 $ORCL) accused of underpaying women, minorities by more than $400 million per filing made in a two-year-old case that is being pursued by a part of the US Labor Departmentthat examines the pay practices of government contractors. MarketWatch PR link.
Starbucks(PBR112) Delivers service in partnership with Uber Eats begins pilot today in San Francisco, will expand to Boston, Chicago, Los Angeles, New York and Washington, DC, begins after successful test in Miami, planning upcoming pilot in UK as well. $SBUX PR link.
Carnival Corp(PBR158) Princess Cruises unit to activate 3 additional Princess MedallionClass ships in 2019. $CCL PR link.
PG&E(PBR163) files Debtor-In-Possession(DIP) Commitment Letter, to get $5.5 billion from banking institutions, reiterates plan to file for Chapter 11 bankruptcy, anticipates 2 years before emerges from bankruptcy. $PCG PR link.
Textron(PBR205) Specialized Vehicles unit and Bass Pro’s White River Marine Group TRACKER unit to partner to manufacture in the US a new line of high-performance all-terrain vehicles (ATVs) and side-by-sides, the TRACKER OFF ROAD, to debut in the spring. $TXT PR link.
Arconic(PBR220) to no longer pursue a potential sale of the company, did not receive a proposal for a full-company transaction, will continue sale process of its Building and Construction Systems business. $ARNC PR link.
Viacom(PBR221) to acquire 12 million monthly active users free streaming television service in US Pluto TV for $340 million, to close 1Q19. $VIA PR link.
MasterCard(PBR232 $MA) gets fined around $650 million by the European Commission for for obstructing merchants’ access to cross-border card payment services. European Commission PR link.
Netflix(PBR249 $NFLX) is the first streaming service to join the Motion Picture Association of America(MPAA), other members include Disney, Paramount, Sony, Fox, Universal, and Warner Bros. http://bit.ly/NFLXia22MPAA PR link.
eBay(PBR298 $EBAY) receives letter from 4% stakeholder activist investor Elliott Management, outlines its plans to increase eBay value, includes separating StubHub and Classified Ads from the business, focusing on core Marketplace business. Elliott Management PR link.
iHeartMedia(PBR444) gets approval for Plan for Reorganization by US Bankruptcy Court, expects to complete its restructuring process in1H19, will reduce its debt from $16.1 billion to $5.75 billion and will separate Clear Channel Outdoor Holdings from iHeartMedia, creating two independent public companies. $IHRTQ PR link.
H&R Block(PBR686) remains exclusive tax software provider at Walmart(PBR1), includes free extended download, available at stores and online. $HRB PR link.
USG Corp(PBR682) President/CEO Jennifer Scanlon to leave USG following closing of Knauf merger, other leaving executives named. $USG PR link.
Express(PBR856) President/CEO David Kornberg departs, EVP/COO Matthew Moellering to add Interim President/CEO role to his responsibilities. $EXPR PR link.
Itron(PBR868) President/CEO Philip Mezey to retire from his positions and Board by 08/31/19, to serve as an advisor through 12/31/19. $ITRI PR link.
Service Corp Intl(PBR697) President/COO Michael R. Webb to retire, effective 03/31/19, after 26 years with the company, Chairman/CEO Thomas L. Ryan to add President role, SVP/Operations Sumner J. Waring, III, to become COO. $SCI PR link.
The Natl Assn of Realtors says US Preliminary December 2018 Existing Home Sales Annual Rate is at 4,990,000 units, -6.4% from November 2018, -10.3% from December 2017; December 2018 Total Housing Inventory is at 1,550,000 units, -10.9% from November 2018, +6.2% from December 2017; December 2018 Median Housing Price at $253,600, -1.6% from November 2018, +2.9% from December 2017. NAR PR link.
FannieMae(PBR20) projects economic growth to slow to 2.2% in 2019, down from last year’s estimated pace of 3.1%, as financial conditions threaten to deteriorate further and fiscal stimulus is expected to fade. $FNMA PR link.
***Monday, January 21:
***Observance: Martin Luther King, Jr., Day
US Federal Government Holiday
US Stock Exchanges Closed.
***Day 31 of the US Federal Government partial shutdown.
Alphabet(PBR21 $GOOG)’s Google unit gets fined $57 million by France’s National Data Protection Commission (CNIL) in accordance with the General Data Protection Regulation (GDPR), for lack of transparency, inadequate information and lack of valid consent regarding the ads personalization. CNIL PR link.
Russia opens civil proceedings against Facebook(PBR67 $FB) and Twitter(PBR802 $TWTR), says the two social networks did not explain how and when they would comply with legislation requiring them to store Russian users’ personal data on servers in Russia. CNBC PR link.
Tesla(PBR248 $TSLA) gets green light to start delivering Model 3 in Europe. Bloomberg PR link.
The International Monetary Fund article: A Weakening Global Expansion Amid Growing Risks. “… projects global growth at 3.5% in 2019 and 3.6% in 2020, 0.2% and 0.1% below last October’s projections. … downward revisions are modest; however, we believe the risks to more significant downward corrections are rising.” IMF PR link.
***Friday, January 18:
***Day 28 of the US Federal Government partial shutdown.
The PBRMarketTools US Stock Exchanges Recap for the week ending 01/18/19:
DJIA ends the week at 24,706.35, +2.96% from last Friday, +5.91% MTD/QTD/YTD, -7.91% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 7,157.23, +2.66% from last Friday, +7.87% MTD/QTD/YTD, -11.74% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,670.71, +2.87% from last Friday, +6.54% MTD/QTD/YTD, -8.87% from record 2,930.75 set 09/20/18.
US Stock Exchanges Recap: The Stock Market Bear took Monday for a streak of two days, but The Stock Market Bull then charged into the pasture and took command in a big way the rest of the week and convincingly wins Week 3 3-0 to keep his perfect record intact so far in 2019.
The Week 3 YTD tally is:
The Stock Market Bull: 3 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 0 weeks
The Week 3 News Summary: The US Federal Government partial shutdown is now a record 28 days old with no end in sight. The US Federal Reserve Board released the Beige Book with mostly positive remarks about the economy from the 12 districts, though there did seem to be some moderation. The leaders and influencers in the US Federal Open Market Committee have generally agreed that the number of federal funds interest rate increases might be fewer than originally anticipated this year. Corporate earnings were mixed with the major banks and retailers reporting. Towards the end of the week the US/China trade discussions were starting to get some very positive results. Index fund pioneer John Bogledied this week. The UK Brexit plan was rejected by Parliament but Prime Minister Maysurvived a no-confidence vote.
CVS Health(PBR7) and Walmart(PBR1) reach multi-year agreement for Walmart to continue participating in the CVS Caremark pharmacy benefit management (PBM) commercial and Managed Medicaid retail pharmacy networks. $CVS PR link.
Amazon(PBR8) says more than 50,000 small and medium-sized businesses exceeded $500,000 in sales in Amazon’s stores in 2018. $AMZN PR link.
FedEx(PBR42) voluntary buyout program for US-based employees is expected to total $450 million to $575 million, should predominantly occur in fiscal year 4Q19, similar programs being considered for employees in international regions. $FDX PR link.
Starbucks(PBR112) Mexico opens its second store operated exclusively by older citizens. $SBUX PR link.
Eli Lilly(PBR120) says Phase 3 study of LARTRUVO® (olaratumab), in combination with doxorubicin in patients with advanced or metastatic soft tissue sarcoma (STS), did not confirm the clinical benefit, expects to take 1Q19 charge of $70-90 million pre-tax, $0.10 per share after tax. $LLY PR link.
MasterCard(PBR232) issues updated rules for vendors providing free trials for their products and services that can turn into unwanted ongoing subscriptions. $MA PR link.
Tesla(PBR248) CEO Elon Musk says needs to get cost of Model 3 down to around $35,000 from current variants that cost around $44,000 to make it available to a wider customer base, needs to increase production, but will have to lay off around 7% of workforce, mentions new vehicles becoming available and the Solar Roof product. $TSLA PR link.
Salesforce(PBR273) to open 430,000 sf 4 building campus, Salesforce Tower Dublin, in Dublin, Ireland, in 2021, to add 1,500 employees over 5 years. $CRM PR link.
Arthur J Gallagher(PBR445) acquires Shreveport, LA-based managing general agency Interstate Insurance Underwriters, terms not disclosed. $AJG PR link.
Whirlpool(PBR133) hires Gilles Morel as EVP and President/Europe, Middle East and Africa Region (EMEA), headquartered in Milan, Italy, effective 04/01/19. $WHR PR link.
Flowserve(PBR621) hires Dr. Tauseef Salma as VP/Marketing & Technology. $FLS PR link.
The US Federal Reserve Board says US Preliminary December 2018 Industrial Production Capacity-Total Industry was at 78.7%, November 2018 was 78.6%, October 2018 78.4%, December 2017 77.3%, Capacity Growth Over the Last Year +2.1%. USFed PR link.
The U of Michigan US Preliminary January 2019 Consumer Sentiment Index is at 90.7, December 2018 was at 98.3, November 201897.5, January 2018 95.7. “The loss was due to a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policies.” UMichigan PR link.
US/China Trade Relations: China Offers a Path to Eliminate U.S. Trade Imbalance, Sources Say. Bloomberg News PR link.
Fannie Mae(PBR20 $FNMA) and Freddie Mac(PBR37 $FMCC) regulator Federal Housing Finance Agency discussing plan to end conservatorship. MarketWatch PR link.
Human Resources: Manpower(PBR136)releases report, “Humans Wanted, Robots Need You: Record Number of Employers Globally Plan to Increase or Maintain Headcount as a Result of Automation.” $MAN PR link.
***Thursday, January 17:
***Day 27 of the US Federal Government partial shutdown.
Walmart(PBR1) adds Point Pickup, Skipcart, AxleHire and Roadie to help expand Online Grocery Delivery option in over 100 metro areas across four states with further expansion planned in the coming weeks, available in 800 stores, adding 800 more in 2019. $WMT PR link.
Apple(PBR2 $AAPL) CEO Tim Cook in op-ed for Time magazine says regulatory action is needed to restore ‘full faith’ in tech. Time PR link.
Target(PBR38) expanding its private label baby brand Cloud Island, offering over 30 items including toiletries, diapers, and more, ranging in price from $0.99 to $21.99, most under $10.00.$TGT PR link.
UPS(PBR41) new 258,000 sf package delivery facility in northwest Houston’s Willowbrookarea has created 575 new full- and part-time jobs. $UPS PR link.
Facebook(PBR67) says it removed multiple Pages, groups and accounts that engaged in coordinated inauthentic behavior on Facebook and Instagram, two operations originated in Russia, and one was active in a variety of countries while the other was specific to Ukraine. $FB PR link.
PG&E(PBR163 $PCG) gets open letter from shareholder BlueMountain Capital Management “… to challenge the Board’s plan for a damaging, avoidable, and unnecessary bankruptcy. There is overwhelming evidence that PG&E is solvent.” BlueMountain PR link.
Sears(PBR168) confirms Chairman Eddie Lampert and his ESL Holdings win auction to acquire assets, including 425 “Go Forward” stores, for $5.2 billion, court approval date set for 02/01/19, if approved would close transaction around 02/08/19. $SHLDQ PR link.
Sears(PBR168 $SHLDQ) creditors contend that Chairman Eddie Lampert has painted himself as the savior of the company, but has instead made a series of moves over the years that have benefited himself and his hedge fund ESL, files lawsuit challenging his winning $5.2 billion bid for assets and 425 stores. Associated Press PR link.
Jacobs Engineering(PBR190) authorizes new $1 billion up to 3 years share repurchase program. $JEC PR link.
Tesla(PBR248) CEO Elon Musk tweets that the customer referral program will end on 02/01/19, adding too much cost to cars, especially the Model 3. $TSLA PR link.
Netflix(PBR249) grew 2018 revenues by 35% to $16 billion, doubled operating profits to $1.6 billion, finished 2018 with 139 million paying memberships, up 9 million for 4Q18, up 29 million for the year. $NFLX PR link.
AMC Entertainment(PBR503) starts 2019 with over 18 million AMC Stubs Memberhouseholds, around 46 million people. $AMC PR link.
Fossil Group(PBR738) to sell to Alphabet(PBR21)’s Google unit intellectual property (IP) related to a smartwatch technology currently under development by Fossil Group for $40 million, includes a portion of Fossil Group’s research and development team currently supporting the transferring IP will join Google. $FOSL PR link.
Square(PBR845) launches Square Card, a free business debit Mastercard(PBR232), offering sellers a 2.75% instant discount on purchases made at other Square sellers. $SQ PR link.
Dun & Bradstreet(PBR914) $145.00/share, $6.9 billion cash acquisition by Star Parent Group gets UK Financial Conduct Authorityapproval, 15 day marking period starts, to close transaction by 02/11/19. $DNB PR link.
CBS(PBR214 $CBS) former Chairman/CEO Les Moonves, who left CBS over sex harassment charges, fights for $120 million in severance. MarketWatch PR link.
Lithia Motors(PBR285) hires David Stork as its first Chief Legal Officer. $LAD PR link.
Celanese(PBR446) hires Lynne Puckett as SVP/General Counsel, effective 02/13/19. $CE PR link.
PolyOne(PBR677) promotes Walter Ripple to new position of VP/Sustainability, company also has joined the Alliance to End Plastic Waste as a founding member. $POL PR link.
The Federal Reserve Bank of Philadelphiasays the 3rd District Preliminary January 2019 Manufacturing General Activity Indicator is at +17.0, December 2018 was at +9.1, November 2018 +11.9, January 2018 +24.8. “Manufacturing activity in the region continued to grow … survey’s broad indicators remained positive, although their movements were mixed again … firms reported growth in the underlying demand for their products and are generally optimistic about future growth and employment.” PhillyFed PR link.
The Natl Assn of Home Builders/Wells Fargosay that the US Preliminary January 2019 Housing Market Composite Index is at 58, December 2018 was at 56, November 2018 60, January 2018 72. NAHB/WF PR link.
The US Dept of Commerce US December 2018 Monthly New Residential Constructionreport scheduled for today is not available because of the US Federal Government partial shutdown.
***Wednesday, January 16:
***Day 26 of the US Federal Government partial shutdown.
Ford(PBR11) to introduce over 20 new Ford and Lincoln products in N America over the next 24 months, over 30 in China by 2021, strategy centers on high-growth product segments, electrified propulsion, autonomous vehicles, mobility services, operational fitness and high-performance culture. $F PR link.
Microsoft(PBR22) commits $500 million to tackle affordable housing crisis in Puget Sound, Washington State, region. $MSFT PR link.
Marriott Intl(PBR119) announces Marriott Bonvoy, the new loyalty brand replacing the current loyalty brands – Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest (SPG), launches 02/13/19, will have 120 million members, will also launch Bonvoy Moments, will feature approximately 120,000 experiences in 1,000 destinations. $MAR PR link.
Sears(PBR168 $SHLDQ) Chairman Eddie Lampert and his ESL Holdings raise bid to acquire Sears from $5 billion to $5.2 billion, would keep 425 stores open, 45,000 people employed, approval to go before bankruptcy judge in a few days. Reuters PR link.
NRG Energy(PBR269)’s $1 billion sale of its South Central business to Cleco Corporate Holdings gets approval by the Louisiana Public Service Commission, last regulatory approval needed, to close in 02/19. $NRG PR link.
GameStop(PBR310) completes $700 million sale of its Spring Mobile business, which owns and operates 1,289 AT&T wireless stores, to Prime Communications. $GME PR link.
KeyCorp(PBR397)’s KeyBank unit to acquire Laurel Road‘s digital lending business, has more than $4 billion in student loan originations since 2013. $KEY PR link.
Signet Jewelers(PBR436) to pay $10 million to the US Bureau of Consumer Financial Protection (“CFPB”) and $1 million to the Attorney General for the State of New York for in-store credit practices, promotions, and payment protection product by its Sterling Jewelers wholly owned subsidiary. $SIG PR link.
TravelCenters(PBR454) to purchase 20 travel centers from Hospitality Properties Trust (NASDAQ: HPT) for $308.2 million, will continue to lease 179 properties under its five leases with HPT, reduces annual rent by $43.1 million. $TA PR link.
Fiserv(PBR471) to acquire First Data(PBR243)in all stock transaction for equity value of around $22 billion, $22.74/share, Fiserv PresidentCEO Jeffery Yabuk will serve as Chairman/CEO of the combined company. First Data Chairman/CEO Frank Bisignano will assume the role of President/COO and be a member of the Board, to close 2H19. $FISV PR link.
TeleFlex(PBR853) to move from S&P MidCap 400 to S&P 500, will replace PG&E(PBR163)which is being removed because of its upcoming Chapter 11 Bankruptcy filing. $TFX PR link.
Lennar(PBR227) promotes Fred Rothman to COO, will continue to oversee the East Homebuilding Region, succeeds Jon Jaffe who remains President. $LEN PR link.
The US Federal Reserve Board releases the Beige Book for data collected on or before 01/07/19. “Economic activity increased in most of the U.S., with eight of twelve Federal Reserve Districts reporting modest to moderate growth … Outlooks generally remained positive, but many Districts reported that contacts had become less optimistic in response to increased financial market volatility, rising short-term interest rates, falling energy prices, and elevated trade and political uncertainty.” USFed PR link.
The US Dept of Labor says US Preliminary December 2018 Monthly Import Prices Indexwas -1.0%, November 2018 was at -1.9%, October 2018 +0.5%, December 2017 +0.2%; December 2018 Monthly Export Prices Indexwas -0.6%, November 2018 was at -0.8%, October 2018 +0.5%, December 2017 +0.1%; Last 12 Months Import Prices Index is at -0.6%, Export Prices Index +1.1%. USDOL PR link.
The US Dept of Commerce US November 2018 Manufacturing and Trade Sales and Inventories report and the US Dept of Commerce US Advance December 2018 Monthly Retail Trade report scheduled for today are not available because of the US Federal Government partial shutdown.
***Tuesday, January 15:
***Day 25 of the US Federal Government partial shutdown.
CVS Health(PBR7) says Walmart(PBR1 $WMT) has opted to leave the CVS Caremark pharmacy benefit management (PBM) commercial and Managed Medicaid retail pharmacy networks, does not impact Walmart’s participation in the CVS Caremark Medicare Part D pharmacy network, Walmart’s Sam’s Club division remains in the CVS Caremark pharmacy networks, not expected to have a material impact on the financial results of CVS in 2019. $CVS PR link.
Ford(PBR11) and Germany’s Volkswagen AGto form an alliance to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022, to investigate collaboration on autonomous vehicles, mobility services and electric vehicles. $F PR link.
Microsoft(PBR22) and Walgreens Boots Alliance(PBR16) to join forces to develop new health care delivery models, technology and retail innovations to advance and improve the future of health care. $MSFT PR link.
American Airlines(PBR62) marks 10th anniversary of the “Miracle on the Hudson” of US Airways Flight 1549, with all 150 passengers and 5 crew members surviving “the most successful ditching in aviation history.” $AAL PR link.
Facebook(PBR67) to invest $300 million over 3 years in supporting local journalists and newsrooms with their newsgathering needs in the immediate future; and helping local news organizations build sustainable business models, through both Facebook product and partnership work. $FB PR link.
Netflix(PBR249) raising Standard price from $10.99/month to $12.99/month. $NFLX PR link.
Netflix(PBR249 $NFLX) gets $25+ million federal lawsuit from Vermont based ChooseCofor infringement of its trademarks in “Black Mirror: Bandersnatch” episode which refers to “Choose Your Own Adventure” book. ChooseCo PR link.
Edwards Lifesciences(PBR645) to make one time $180 million payment to Boston Scientific(PBR315) to settle all outstanding patent disputes between the companies in all venues around the world. $EW PR link.
Humana(PBR53) hires William Shrank, MD, MSHS, as new Chief Medical Officer, effective 04/01/19, succeeds retiring Roy A. Beveridge, MD. $HUM PR link.
FMC(PBR723) promotes Michael F. Reilly to EVP/General Counsel and Secretary, effective 04/01/19, succeeds retiring Andrea E. Utecht. $FMC PR link.
Apollo Global Mgmt(PBR771) Lead Partner and COO (Credit) Anthony Civale and CFO Martin Kelly to serve as Co-COOs of Apollo, Kelly will continue in his role as CFO. $APO PR link.
Meredith Corp(PBR839) Executive Chairman Steve Lacey to retire on 03/31/19, will continue to serve as Chairman of the Board in a non-executive capacity. $MDP PR link.
The US Dept of Labor says the US Preliminary December 2018 Producer Price Index Total Final Demand was at -0.2%, November 2018was at +0.1%, October 2018 +0.6%, December 2017 +0.0%; Last 12 Months Final Demandwas +2.5%. USDOL PR link.
The Federal Reserve Bank of New York says the Empire State January 2019 Current Manufacturing General Business Conditionsare at 3.9, December 2018 was at 11.5, November 2018 21.4, January 2018 18.6. “Business activity grew slightly in New York State … lowest reading since mid-2017 …” NYFed PR link.
***Monday, January 14:
***Day 24 of the US Federal Government partial shutdown.
Comcast(PBR32 $CMCSA)’s NBCUniversalunit to launch a streaming service in 2020, will be a free, ad-supported product to anyone that subscribes to a pay-TV service. $12/mo for non-pay TV subscribers, 3-5 minutes of ads/hour, expects to make $5 per month per subscriber from advertising revenues. CNBC PR link.
Micron Technology(PBR93) exercising its right to purchase Intel’s interest in the parties’ joint venture, IM Flash Technologies, for around $1.5 billion, to occur in next 6-12 months. $MU PR link.
Abbott(PBR100) gets US FDA approval for the Amplatzer Piccolo™ Occluder, the world’s first medical device that can be implanted in the tiniest babies (weighing as little as two pounds) using a minimally invasive procedure to treat patent ductus arteriosus, a congenital heart defect. $ABT PR link.
Starbucks(PBR112) opens 20,000 sf Starbucks Dewata Coffee Sanctuary in Bali, Indonesia, experiential themed, largest Starbucks facility in SE Asia. $SBUX PR link.
Marriott Intl(PBR119) expanding its experiential hotel brand Moxy Hotels in the Southeastern US with the recent opening of Moxy Chattanooga Downtown and the anticipated openings of Moxy Atlanta Midtown, Moxy Memphis Downtown, Moxy Nashville Vanderbilt at Hillsboro Village, Moxy Nashville Downtown and Moxy Louisville. $MAR PR link.
PG&E(PBR163) provides 15-day advance notice that it and its wholly owned subsidiary Pacific Gas and Electric Company currently intend to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about 01/29/19, does not expect any impact to electric or natural gas service for its customers, committed to assisting the communities affected by wildfires in N California. $PCG PR link.
Newmont Mining(PBR374) to purchase all shares of global gold producer Goldcorp(NYSE: GC) for $12/share, $10 billion equity value, to be called Newmont Goldcorp, to close 2Q19. $NEM PR link.
SAIC(PBR541) completes $40.44/share, $2.5 billion all stock acquisition of systems engineering and integration services primarily for the US government provider Engility Holdings(NYSE: EGL). $SAIC PR link.
Gannett(PBR691) gets unsolicited $12/share cash, around $1.4 billion, offer to be acquired by MNG Enterprises, Board reviewing offer. $GCI PR link.
Par Pacific(PBR801) completes $358 million plus net working capital acquisition of privately held Tacoma, WA, based downstream business with a 42,000 bpd refinery, a marine terminal, a unit train-capable rail loading terminal, and 2.9 MMbbls of refined product and crude oil storage US Oil & Refining Co. $PARR PR link.
Pier 1 Imports(PBR905) gets NYSE notification that stack has traded under $1.00 for 30 consecutive days, has 6 months to remedy, considering possible reverse stock split. $PIR PR link.
PG&E(PBR163) CEO Geisha Williams steps down, EVP/General Counsel John Simon named interim CEO, search for new CEO starts. $PCG PR link.
FreddieMac(PBR37) EVP Ricardo A. Anzaldua has been appointed EVP/General Counsel and Corporate Secretary, succeeds retiring William H. McDavid. $FMCC PR link.
Halliburton(PBR141) promotes Mark Richard to be President/Western Hemisphere, to succeed Jim Brown, effective 02/01/19. $HAL PR link.
JCPenney(PBR231) EVP/Private Brands and Supply Chain Mike Robbins named EVP/Chief Stores and Supply Chain Officer, hires Truett Horne as Chief Transformation Officer, provides update on search for 5 executives. $JCP PR link.
Steel Dynamics(PBR301) hires Miquel Alvarez as SVP/Southwest U.S. and Mexico, Glenn Pushis to become SVP/Special Projects, Christopher Graham to be SVP/Long Products Steel Group, James Anderson to become SVP/Steel Fabrication and President/New Millennium Building Systems, all effective 02/01/19. $STLD PR link.
Patterson Cos(PBR478) hires Eric Shirley as President/Dental unit effective 02/04/19. $PDCO PR link.
Perrigo(PBR510) hires James Dillard as EVP/Chief Scientific Officer. $PRGO PR link.
A.O. Smith(PBR706) promotes Charles T. Lauber to CFO, effective 05/01/19, to succeed retiring John Kita. $AOS PR link.
Louisiana-Pacific Corp(PBR748) hires Alan Haughie as EVP/CFO, succeeds interim CFO Mike Kinney who returns to being Treasurer & Investor Relations Director. $LPX PR link.
TrueCar’s ALG forecasts US 2019 New Light Vehicle Sales at 17,049,661 units, -1.3% from 2018, Average Transaction Price of $34,096, +2.0% from 2018, Incentive Spending/Unit at $3,857, +3.1% from 2018. TrueCar PR link.
***Friday, January 11:
The PBRMarketTools US Stock Exchanges Recap for the week ending 01/11/19:
DJIA ends the week at 23,995.95, +2.40% from last Friday, +2.87% MTD/QTD/YTD, -10.56% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 6,971.48, +3.45% from last Friday, +5.07% MTD/QTD/YTD, -14.04% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,596.26, +2.54% from last Friday, +3.57% MTD/QTD/YTD, -11.41% from record 2,930.75 set 09/20/18.
US Stock Exchanges Recap: The Stock Market Bull took Monday through Thursday, then gave The Stock Market Bear some time on Friday. The Stock Market Bull easily wins 3-0 in Week 2 of 2019.
The Week 2 YTD tally is:
The Stock Market Bull: 2 weeks
The Stock Market Bear: 0 weeks
Mixed Results: 0 weeks
The Week 2 News Summary: The US Federal Government shutdown reaches day 21, a new record, as the impasse continues between President Trump’s demand for $5.7 billionthat includes funds for building a wall along the Southern US border and the Democrats, who now control the House, who think it should be a separate negotiation after the shutdown is stopped. The members of the Federal Reserveseem to be moderating their stance on more federal funds interest rate hikes. US/China trade negotiations are reported as being productive and moving forward. Limited economic datacontinues to show a good economy. Corporate updates and earnings reports are mixed, retailers especially struggled with in-store revenues, with most being down.
AT&T(PBR10 $T), T-Mobile(PBR68 $TMUS), and Verizon(PBR17 $VZ) to cease the sale of real-time location sharing to third parties amid growing pressure from federal lawmakers. Business Insider PR link.
Certain Alphabet(PBR21 $GOOG) board members and directors receive lawsuit by non-employee shareholder on behalf of investors and the company for breaching their fiduciary duty in an alleged multi-year scheme to cover up sexual harassment and discrimination. MarketWatch PR link.
Citigroup(PBR31) and activist investor ValueAct Capital enter into Information Sharing and Engagement Agreement, enables ValueAct to have access to confidential information about the company and engage with members of Citi’s management team and Board of Directors on areas such as strategy, governance and operational planning matters. $C PR link.
Carlisle Cos(PBR576) completes $197 million cash acquisition of Elk Grove Village, IL-based manufacturer and distributor of architectural metal roof panels, steel and aluminum flat sheets and coils, wall panels, perimeter roof edge systems and related accessories for commercial, residential, institutional, industrial and agricultural markets Petersen Aluminum Corporation. $CSL PR link.
Chico’s FAS(PBR827) to rebalance the mix between its physical store presence with its digital network and to close at least 250 stores in the US over a 3 year period. $CHS PR link.
Ferrellgas(PBR862) receives NYSE notice of non-compliance with stock price average below $1.00 for 30 days, company plans to remedy, current price is $1.25/share. $FGP PR link.
Hovnanian(PBR872) receives NYSE notice of non-compliance that its stock price closed and averaged less than $1.00 over past 30 days, has 6 months to remedy, plans to ask stockholders for reverse stock split at annual meeting on 03/19/19. $HOV PR link.
General Dynamics(PBR89) SVP/Planning and Development Robert W. Helm will assume the role of special advisor to the CEO. VP/Strategic Initiatives Thomas W. Kirchmaier will become SVP/Planning, Communications and Trade Compliance, both effective 04/01/19; Elizabeth “Betsy” L. Schmid continues as VP/Government Relations. $GD PR link.
Coty(PBR305) hires Pierre-André Terisse as CFO, CEO Pierre Laubies will assume leadership for the formulation and implementation of the strategic vision for the Consumer Beauty division, will be supported by Gianni Pieraccioni who joins Coty as COO of Consumer Beauty, Luc Volatier hired as Chief Global Supply Officer, Chief Corporate Affairs Officer Esra Erkal-Paler to leave for another opportunity, function to be absorbed within Coty. $COTY PR link.
The US Dept of Labor says US Preliminary December 2018 Current Average Earnings/Hour(Table A-1) were at $27.48, Average Hours Worked/Week at 34.5, for Total Average Weekly Earnings at $948.06, +0.7% from November 2018, +3.2% from December 2017. USDOL PR link.
The US Dept of Labor says the US December 2018 Consumer Price Index-Urban(Table A) is at -0.1%, November 2018 was at +0.0%, October 2018 +0.3%, December 2017 +0.2%, Last 12 Months(Unadjusted) +1.9%. USDOL PR link.
The US Dept of Treasury US December 2018 Monthly Treasury Report report scheduled for today is not available because of the US Federal Government partial shutdown.
***Thursday, January 10:
The December 2018 Snapshot 15 Summary:
The PBR1000 Top 5 by Market Capitalization(Rank, Company, PBR Ranking by Revenues, Stock Symbol, Market Capitalization in billions):
1. Microsoft(PBR22 $MSFT), $771B
2. Apple(PBR2 $AAPL), $741B
3. Amazon(PBR8 $AMZN), $723B
4. Alphabet(PBR21 $GOOG), $721B
5. Berkshire Hathaway(PBR4 $BRK.B), $500B
Range: $771 billion to $0.01 billion
The PBR1000 Total: $23.636 trillion, -9.75% from 11/30/18, -8.62% from 12/29/17, +8.65% from 12/30/16
Average: $23.636 billion
Median: $6.81 billion
To get all 15 Snapshots and 27 rankings on The PBR1000 go to the Subscribe page.
Amazon(PBR8)’s IMDb subsidiary launches Freedive – a free streaming video channel featuring hit Movies and TV
shows. $AMZN PR link.
Ford(PBR11 $F) unveils major Europeanrestructuring, expected to include thousands of job cuts, plant closures and the scrapping of low-profit models. MarketWatch PR link.
Valero Energy(PBR29) completes $42.25/share, $950 million cash acquisition ofValero Energy Partners LP (NYSE: VLP). $VLO PR link.
Boeing(PBR30) gets Brazil government approval to acquire 80% stake for $4.2 billion in joint venture with Brazil based Embraer(B3: EMBR3, NYSE: ERJ), to close by 12/31/19. $BA PR link.
Oracle(PBR73) expands partnership with the San Francisco Giants baseball team, gets naming rights to the stadium, AT&T Park now named Oracle Park. $ORCL PR link.
Kohl’s(PBR151) to close 4 four lower performing stores in 2019, open 4 smaller format stores, will keep stores count at 1,158, to consolidate Customer Service and Operations centers from 3 to 2, offer voluntary retirement program to hourly associates age 55+ with at least 15 full years of service. $KSS PR link.
Sears(PBR168 $SHLDQ) Chairman Eddie Lampert and his ESL Holdings hedge funds and affiliates make new offer for to acquire Sears. MarketWatch PR link.
BlackRock(PBR233 $BLK) to lay off 500 employees globally amid market volatility.Institutional Investor PR link.
Tesla(PBR248)‘s Founder/CEO Elon Musk tweets that the lower priced 75 kWh version of the Model S & X must be ordered by Sunday night. $TSLA PR link.
Tenneco(PBR309) completes $160 million acquisition of Sweden based premium suspension systems and components for the automotive and motorsport industries developer Öhlins Racing AB, closing precedes the planned separation of Tenneco into two independent, publicly traded companies through a tax-free spin-off to shareholders that will establish an Aftermarket and Ride Performance company and a Powertrain Technology company, to be completed in 2H19. $TEN PR link.
PVH(PBR320)’s Calvin Klein wholly owned subsidiary relaunching the CALVIN KLEIN 205W39NYC business under a new name, design approach and creative direction, closing its 654 Madison Avenue store in spring 2019, adopting a digital first approach, to streamline its N America operations. $PVH PR link.
Activision Blizzard(PBR389) turns over full publishing rights and responsibilities for the Destiny franchise to Bungie Inc, will no longer be reporting financials on the unit. $ATVI PR link.
Host Hotels(PBR485) completes $302 million sale of Westin New York Grand Central hotel. $HST PR link.
KLA-Tencor(PBR580) changing its name to KLA Corporation, is rebranding and adopting the tagline Keep Looking Ahead™, to indicate KLA’s optimistic view of technology’s impact on the world. $KLAC PR link.
American Eagle Outfitters(PBR605) has launched new interactive fitting room experience in several flagship stores around the US, including Boston, Las Vegas and San Francisco. $AEO PR link.
G-III Apparel(PBR731) repurchases 723,000 shares at an average price of $28.09/share, 4.28 million shares remaining under its authorized share repurchase program. $GIII PR link.
SemGroup(PBR866) to own 51% and KKR(PBR673) to own 49% of the new Canadian company, SemCAMS Midstream ULC; SemGroup’s contribution of SemCAMS’ shares and assets to SemCAMS Midstream valued at $860 million. $SEMG PR link.
QEP Resources(PBR932) completes $735 million sale of its natural gas and oil producing properties, undeveloped acreage and associated gas gathering and treating systems in the NW Louisiana Haynesville/Cotton Valley area to an Aethon Energy affiliate. $QEP PR link.
PepsiCo(PBR43) CEO Ramon Laguarta elected to also be Chairman, effective 02/01/19, when former CEO Indra K. Nooyi retires as Chairman. $PEP PR link.
Target(PBR38) CFO Cathy Smith to retire upon naming of new CFO, Chief HR Officer Stephanie Lundquist named President/Food & Beverage, SVP/HR Melissa Kremer promoted to Chief HR Officer, SVP/Communications Katie Boylan named Chief Communications Officer, Chief Information Officer Mike McNamara to also lead Enterprise Data Analytics and Business Intelligence team, Chief Marketing Officer Rick Gomez named Chief Marketing and Digital Officer. $TGT PR link.
Cummins(PBR143) CFO Pat Ward retiring on 03/31/19 after nearly 31 years with the company, Mark Smith to be successor. $CMI PR link.
Cooper-Standard(PBR627) EVP/COO Keith Stephenson to retire on 04/02/19, Patrick Clark appointed SVP/Chief Global Engineering and Product Strategy Officer, Christopher E. Couch to be SVP/Chief Innovation Officer, Hans O. Helmrich to be SVP/Chief Global Manufacturing Officer. $CPS PR link.
Domino’s Pizza(PBR731) hires Stu Levy as EVP/Supply Chain, effective 01/21/19. $DPZ PR link.
The US Dept of Commerce/Census US Preliminary November 2018 Monthly Wholesale Trade report scheduled for today is not available because of the US Federal Government partial shutdown.
***Wednesday, January 9:
December 2018 Snapshot 13 Summary: The PBR1000 Top 5 Stock Performers since 12/30/16(24 months) (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 12/31/18 Stock Price, % Increase from 12/30/16):
1. Square(PBR845 $SQ), $56.09, +312%
2. RH(PBR803 $RH), $119.82, +290%
3. Crocs(PBR1000 $CROX), $25.98, +279%
4. Weight Watchers(PBR974 $WTW), $38.55, +237%
5. BlueLinx(PBR896 $BXC), $24.71, +231%
Range: +312% to -98%
Number of Companies at 0% or Better:455/993
Average: +7.03%
Median: -2.79%
DJIA: +18.04%
NASDAQ: +23.26%
SPX: +11.97%
Tomorrow: The PBR1000 December 2018 Top 5 Stocks by Market Capitalization.
Ford(PBR11) introduces its all-new 2020 Explorer – a complete redesign of America’s all-time best-selling SUV – that now features the broadest model lineup ever, more power and space, and smart new technologies to help tackle life’s adventures. $F PR link.
Kraft Heinz(PBR104) Kraft Natural Cheesenow made from milk without the artificial growth hormone rbST. $KHC PR link.
AMD(PBR489) unveils AMD Radeon™ VII, the world’s first 7nm gaming graphics card, designed for gamers, creators and enthusiasts who demand ultra-high quality visuals, uncompromising performance and immersive gaming experiences, expected to be available 02/07/19, for $699. $AMD PR link.
Sprouts(PBR528) to open 9 new stores in 2Q19, part of 30 new stores planned for 2019. $SFM PR link.
Penn Natl Gaming(PBR689) authorizes new $200 million share repurchase program, expires 12/31/20. $PENN PR link.
Square(PBR845) launches the Square In-App Payments Software Development Kit (SDK), enabling developers and sellers to process payments with Square within their consumer-facing mobile apps for the first time. $SQ PR link.
Systemax(PBR980) President/CEO Larry Reinhold steps down from management roles as planned, remains on Board, Board member Barry Litwin becomes CEO. $SYX PR link.
Wells Fargo(PBR27) hires Saul Van Beurden as its head of Technology, effective in 04/19. $WFC PR link.
Activision Blizzard(PBR389) Call of Duty® GM Rob Kostich Named President of Activision; King CFO and Chief Strategy Officer Humam Sakhnini named President of King Digital Entertainment; and company CFO Dennis Durkin adds role of President of Emerging Businesses, J. Allen Brack continues as President of Blizzard Entertainment. $ATVI PR link.
Adtalem Education(PBR983) SVP/General Counsel Stephen Beard promoted to COO and General Counsel. $ATGE PR link.
The Federal Open Market Committee releases minutes from the December 18-19 meeting. “The information received … indicated that labor market conditions continued to strengthen in recent months and that real GDP growth was strong. Consumer price inflation, as measured by the 12-month percentage change in the price index for personal consumption expenditures (PCE), was 2 percent in October. Survey-based measures of longer-run inflation expectations were little changed on balance.” FOMC PR link.
***Tuesday, January 8:
The December 2018 Snapshot 12 Summary: The PBR1000 Top 5 YTD(12 months) Stock Performers (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 12/31/18 Stock Price, % Increase from 12/29/17):
1. BlueLinx(PBR896 BXC), $24.71, +153%
2. Crocs(PBR1000 $CROX), $25.98, +106%
3. Fossil(PBR738 $FOSL), $15.73, +102%
4. AMD(PBR489 $AMD), $18.46, +80%
5. Herbalife(PBR544, $HLF), $58.95, +74%
Range: +153% to -93%
Number of Companies at 0% or Better:276/1,000
Average: -10.55%
Median: -15.38%
DJIA: -5.63%
NASDAQ: -3.88%
SPX: -6.24%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/30/16(24 months).
Tesla(PBR248) new Board member Larry Ellison, Executive Chairman, Chief Tech Officer, and Founder Oracle(PBR74), discloses ownership of 3 million shares of Tesla common stock. $TSLA PR link.
AES Corp(PBR272) and Hawaii’s Kaua’i Island Utility Cooperative (KIUC) inaugurates the Lāwa’i Solar and Energy Storage Project, the largest operational solar and storage system in the world, consists of a 28 MW solar photovoltaic (PV) and a 100 MWh five-hour duration energy storage system. $AES PR link.
Avon Products(PBR469) to sell all shares of Avon’s Beauty manufacturing operation in Guangzhou, China, to Asia’s LG Household & Health Care Ltd subsidiary TheFaceShop, for net proceeds of $44 million, will also enter into a manufacturing and supply agreement. $AVP PR link.
Mattel(PBR515) and Warner Bros. Pictures Group to partner to bring the Barbie franchiseto theaters in its first ever live-action feature film, starring Academy Award-nominated actress Margot Robbie as Barbie, first production of Mattel Films. $MAT PR link.
Rollins(PBR928) to acquire Clark Pest Control of Stockton located in Lodi, CA, 26 locations in California, 8th largest pest control company in the US, terms not disclosed. $ROL PR link.
MetLife(PBR46) President/US Business & EMEA Michel A. Khalaf to become President/CEO on 05/01/19, will succeed retiring Steven A. Kandarian, who is also Chairman, and will be succeeded by Glenn Hubbard as Non-Executive Chairman. $MET PR link.
United Rentals(PBR407) President/COO Matthew Flannery to become President/CEO, CEO Michael Kneeland to become Non-Executive Chairman, to succeed Chairman Jenne Britell, effective at annual meeting on 05/08/19. $URI PR link.
Herbalife(PBR547) Executive Chairman Michael Johnson reassumes CEO role on interim basis with resignation of Richard Goudis, expects new CEO to appointed from current senior leadership team. $HLF PR link.
PG&E(PBR163)‘s utility subsidiary VP/Electric Distribution Operations Michael Lewis elected SVP/Electric Operations, succeeds retiring Patrick Hogan. $PCG PR link.
MGM Resorts(PBR267) hires former Nevada Governor Brian Sandoval as President/Global Gaming Development. $MGM PR link.
Autoliv(PBR276) CFO Mats Backman to accept a similar position for another company, will remain up to 07/08/19, VP Corporate Control Christian Hanke appointed interim CFO as search for new CFO starts. $ALV PR link.
SunPower(PBR891) hires Jeff Waters as CEO of the SunPower Technologies business unit, announces that EVP/Operations Bill Mulligan will transition out of his role over the course of 2019. $SPWR PR link.
La-Z-Boy(PBR940) hires Stephen Krull as VP/General Counsel and Corporate Secretary, succeeds Rand Tucker who is retiring after 19 years with the company. $LZB PR link.
The US Dept of Labor says US Preliminary November 2018 Total Private Job Openingswere at 6,266,000, Total Government Job Openings 622,000, Total Job Openings6,888,000, -3.4% from October 2018, +16.1% from November 2017. See link for Hires and Separations data. USDOL PR link.
The US Federal Reserve says US Preliminary November 2018 Total Consumer Revolving Debt was at $1.042 trillion, Non-Revolving Debt$2.937 trillion, Total Consumer Debt $3.979 trillion, +0.6% from October 2018, +3.4% YTD, +4.1% from November 2017. USFed PR link.
CoreLogic says the US October 2018 30 Days Or More Mortgages Delinquencies Rate was at 4.1%, October 2017 was at 5.1%, October 2018 Number of Houses in Foreclosure was at 0.5%, October 2017 was at 0.6%. “… overall delinquency rates are at or new historic lows.” CoreLogic PR link.
The Fannie Mae(PBR20) US December 2018 Home Purchase Sentiment Index is 83.5, November 2018 was 86.2, October 2018 85.7, December 2017 85.8. “The decrease can be attributed primarily to a 12-percentage point decrease in the net share of Americans who said it is a good time to buy a home.” $FNMA PR link.
The Purdue U/CME Group US December 2018 Ag Economy Barometer Composite Index(100=Unchanged) is at 127, November 2018 was at 134, October 2018 136, December 2017 126. “Ag producer sentiment weakened modestly in December …” Purdue U/CME Group PR link.
The US International Trade report from the US Dept of Commerce/Census scheduled for today is not available because of the US Federal Government partial shutdown.
***Monday, January 7:
The December 2018 Snapshot 11 Summary: The PBR1000 Top 5 Month Stock Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 12/31/18 Stock Price, % Increase from 11/30/18):
1. Rent-A-Center, PBR754, $RCII, $16.19, +10%
2. Newmont Mining, PBR374, $NEM, $34.65, +7%
3. Broadcom, PBR138, $AVGO, $254.28, +7%
4. Genesco, PBR720, $GCO, $44.30, +6%
5. Magellan Health, PBR464, MGLN, $56.89, +4%
Range: +10% to -78%
Number of Companies at 0% or Better:44/1,000
Average: -9.38%
Median: -11.03%
DJIA: -8.66%
NASDAQ: 9.48%
SPX: -9.18%
Tomorrow: The PBR1000 Top 5 Stock Performers YTD.
Kroger(PBR18) and Microsoft(PBR22) to partner to develop and market a Retail as a Service(RaaS), will pilot in Monroe, OH, and Redmond, WA, includes a shelving system that uses digital displays, instead of traditional paper tags, to indicate everything from prices and promotions to nutritional and dietary information. $KR PR link.
DXC Technology(PBR113) to acquire Zug, Switzerland based $911 million in revenues over past 4 quarters 13,000 employees global technology services and consulting partner Luxoft Holding(NYSE: LXFT) for $59.00/share, $2 billion cash, to close by 06/30/19. $DXC PR link.
Eli Lilly(PBR120) to acquire biopharmaceutical developer and commercializer of highly selective medicines for patients with genomically defined cancers Loxo Oncology(NASDAQ: LOXO) for $235.00/share, $8.0 billion cash, to close in 1Q19. $LLY PR link.
Nucor(PBR146) to invest $1.35 billion in new state-of-the-art steel plate mill in the US Midwest, to be in production in 2022, capable of producing 1.2 million tons per year of steel plate products, to create around 400 full-time jobs. $NUE PR link.
PPG(PBR195) to acquire Klingenberg, Germany based global automotive coatings manufacturer with 450 employees Hemmelrath, terms not disclosed. $PPG PR link.
MasterCard(PBR233) dropping its name from its iconic brand mark in select contexts, the interlocking red and yellow circles, referred to as the Mastercard Symbol, will now stand on its own across cards using the red and yellow brand mark, acceptance marks at retail locations both in the physical and digital worlds. $MA PR link.
Tesla(PBR248) CEO Elon Musk tweets about breaking ground at Shanghai, China, for its first non-US gigafactory, to finish initial construction in the summer, be in production for Model 3/Y vehicles by year end for the China market. $TSLA PR link.
NVIDIA(PBR295) announces GeForce® RTX 2060, a Turing architecture GPU, used in digital gaming systems, features a major upgrade of the core streaming multiprocessor to more efficiently handle the compute-heavy workloads of modern games, retails for $349. $NVDA PR link.
YUM!(PBR461)’s Pizza Hut subsidiary expanding beer delivery to nearly 300 restaurants ahead of Super Bowl LIII, to grow beer delivery capabilities to 1,000 restaurants across new markets by Summer 2019. $YUM PR link.
Pentair(PBR511) to acquire water conditioners, water filters, drinking-water purifiers, ozone and ultraviolet disinfection systems, reverse osmosis systems and acid neutralizers for the residential and commercial water treatment industry provider Aquion for $160 million cash, to close in 1Q19. $PNR PR link.
Pentair(PBR511) to acquire residential whole home water treatment systems provider Pelican Water Systems for $120 million cash, to close in 1Q19. $PNR PR link.
Mattel(PBR515) announces worldwide licensing agreement with BTS (acronym for Bangtan Sonyeondan or “Beyond the Scene”), the seven-member South Korean boy band, will create dolls, collectible figures, games, and more. $MAT PR link.
Brink’s(PBR665) completes $130 million acquisition of Brazil based $78 million/year cash-in-transit, money processing and ATM services provider Rodoban. $BCO PR link.
ResMed(PBR817) completes $225 million acquisition of private Madison, WI, based digital therapeutics for people living with chronic obstructive pulmonary disease (COPD) and asthma provider Propeller Health. $RMD PR link.
QEP Resources(PBR931) reviewing preliminary proposal from activist investor Elliott Management to be acquired for $8.75/share, $2.1 billion cash. $QEP PR link.
AutoNation(PBR130) restructures from three regions to two, promotes Jim Bender to EVP/Sales, EVP/COO Lance Iserman and EVP/Chief Technology Officer Tom Conophy are leaving, EVP/Franchise Network, Merger & Acquisitions, and Corporate Real Estate Donna Parlapiano has retired, EVP/Chief Human Resource Officer Dennis Berger to leave effective 01/31/19. $AN PR link.
Union Pacific(PBR134) hires Jim Vena as COO. $UNP PR link.
CBRE(PBR203) CFO/Chief Investment Officer Jim Groch to transition to be full-time Global Group President and Chief Investment Officer, CFO search starts. $CBRE PR link.
CBS(PBR214) promotes Susan Zirinsky to President/Sr Executive Producer of the CBS News unit, to be effective in 03/19. $CBS PR link.
Ameren(PBR439) SVP/General Counsel & Secretary Gregory L. Nelson to retire 08/01/19, after over 23 years of service. $RMD PR link.
Gannett(PBR691) promotes Kevin Gentzel to President/USA TODAY NETWORK Marketing Solutions, replaces leaving Sharon Rowlands, Chief Product Officer Kris Barton gets expanded role and now reports to President/CEO. $GCI PR link.
Hain Celestial(PBR799) hires Chris Boever as Chief Customer Officer and Robert Gulliver as Chief Human Resources Officer. $HAIN PR link.
Meredith Corp(PBR839) hires Catherine Levene as Chief Strategy Officer. $MDP PR link.
Vitamin Shoppe(PBR995) hires Andrew Laudato as EVP/Chief Technology Officer. $VSI PR link.
The Institute for Supply Management says the US December 2018 Non-Manufacturing Index(>50% Economy growing) is at 57.6%, November 2018 was at 60.7%, October 201860.3%, December 2017 56.0%. “This represents continued growth in the non-manufacturing sector, at a slower rate… Respondents are mostly optimistic about overall business conditions.” ISM PR link.
The US Manufacturer’s Shipments, Orders, and Inventories report from the US Dept of Commerce/Census scheduled for today is not available because of the US Federal Government partial shutdown.
***Friday, January 4:
The PBRMarketTools US Stock Exchanges Recap for the week ending 01/04/19:
DJIA ends the week at 23,433.16, +1.61% from last Friday, +0.45% MTD/QTD/YTD, -12.66% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 6,738.86, +2.34% from last Friday, +1.56% MTD/QTD/YTD, -16.90% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,531.94, +1.86% from last Friday, +1.00% MTD/QTD/YTD, -13.61% from record 2,930.75 set 09/20/18.
US Stock Exchanges Recap: The Stock Market Bull took Monday convincingly, Tuesday was closed for the New Year observance, then quietly took Wednesday. The Stock Market Bear rushed in with a big win on Thursday. But on Friday The Stock Market Bull returned to the pasture and aggressively chased The Stock Market Bear away to win Week 1 of 2019 with a 3-0 victory.
The Week 1 YTD tally is:
The Stock Market Bull: 1 week
The Stock Market Bear: 0 weeks
Mixed Results: 0 weeks
The Week 1 News Summary: President Trumpremained insistent that the US Federal Government partial shutdown will continue until he receives a funding bill that includes $5 billion for wall building along the Southern US border with Mexico. The House, now controlled by the Democrats, are at the same time insistent that no wall building will be funded. Federal Reserve Chairman Powell took a rather dovish stance about further federal funds rate increases, partially influenced by the general view of economists that there will be a global economic slowdown in 2019, partly confirmed by Apple’s revised guidance that forecasts a significant drop in revenue primarily from China. Limited data is coming out because of the shutdown, but the US Dept of Labor December 2018 Total Non-Farm Payroll Employment was made available and significantly exceeded expectations. US/China trade tensions moderated as new meetings are scheduled for next week.
Ford(PBR11) issues recall for around 953,000 vehicles in 4th round for defective Takata inflators, says not aware of any injuries associated with the passenger side frontal inflators included in this safety recall. $F PR link.
Lowe’s(PBR40) to hire more than 65,000 associates this year to improve customer service and product availability, includes 50,000+ seasonal positions, nearly 10,000 permanent positions for Merchandising Service Team, 6,000 full-time assistant store managers and department supervisors, 2,000+ technology positions. $LOW PR link.
Kraft Heinz(PBR105) completes $200 million acquisition of $50 million in sales in 2018 Primal Nutrition, LLC, makers of Primal Kitchen branded products, including Mayonnaise, Salad Dressings and Avocado Oil, with growing product lines in Healthy Snacks and other categories. $KHC PR link.
Marriott Intl(PBR120) updates its 11/30/18 press release regarding the Starwood database security incident, numbers affected lowered, Starwood system now shut down. $MAR PR link.
Rite Aid(PBR132) gets non-compliance letterfrom the NYSE, stock price has been below $1.00 over last 30 trading days, has 6 months to come into compliance, intends to cure the share price non-compliance, is considering a reverse stock split. $RAD PR link.
Diebold Nixdorf(PBR530) appoints interim CFO Jeffrey Rutherford to permanent CFO, hires Julian Sparkes as SVP/Chief Digital Officer, and Hermann Wimmer SVP/Global Retail. $DBD PR link.
The US Dept of Labor says US Preliminary December 2018 Total Non-Farm Payroll Employment was at 156,945,000, +142,000 from November 2018, +2,880,000 from December 2017, December 2018 Unemployedwas at 6,295,000, +277,000 from November 2018, -276,000 from December 2017, December 2018 Unemployment Rate is 3.9%, November 2018 was 3.7%, December 20174.1%. USDOL PR link.
The IHS Markit US December 2018 Composite Output Index is at 54.4, November 2018 was 54.7, October 54.9, December 2017 54.1. IHS Markit PR link.
The New Family Home Sales report from the US Dept of Commerce/HUD scheduled for today is not available because of the US Federal Government partial shutdown.
***Thursday, January 3:
General Motors(PBR12 $GM) Cruise Automation unit and DoorDash in partnership to test the first food deliveries using autonomous vehicles in San Francisco, CA, starting in 03/19. DoorDash PR link.
Alphabet(PBR21$GOOG)‘s life science tech unit Verily raises $1 billion from investors. Reuters PR link.
Mr Cooper(NASDAQ: COOP) to acquire servicing rights underlying $24 billion in GSE mortgages, enter into a subservicing contract for an additional $24 billion in mortgages, and purchase the Seterus mortgage servicing platform and assume certain related assets from IBM(PBR34 $IBM). $COOP PR link.
Bristol-Myers Squibb(PBR139) to acquire global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases Celgene(PBR220) in cash and stock transaction with an equity value of approximately $74 billion, $102.43/share, to close in 3Q19. $BMY PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 01/09/19, 70.2% of shares have been tendered. $ESND PR link.
Caesars Entertainment(PBR518) selected by the National Football League as the first ever official casino sponsor in a multi-year agreement, for the Casino category only and does not include sports betting, daily fantasy or hotels/resorts. $CZR PR link.
KKR(PBR675) to invest $1 billion in longterm partnership with Altavair AirFinance to create a global portfolio of leased commercial aircraft, includes KKR acquiring a 50% interest in Altavair. $KKR PR link.
Southwest Airlines(PBR136) pioneer, a maverick, and an innovator Founder/Chairman Emeritus Herbert D. Kelleher passes away at age 87. $LUV PR link.
Owens Corning(PBR425) President/COO Brian D. Chambers elected to become CEO, effective 04/18/19, to succeed Chairman/CEO Mike Thaman who will become Executive Chairman. $OC PR link.
General Motors(PBR12) appoints Mark Reuss as President, effective immediately. $GM PR link.
SYNNEX(PBR165) hires Michael Urban as President/Worldwide Technology Solutions Distribution, to be effective in 02/19. $SNX PR link.
Concho Resources(PBR777) Will Giraud is now EVP/COO, President/CFO Jack Harper remains President, Brenda Schroer becomes SVP/CFO, other executive appointments announced. $CXO PR link.
Square(PBR840) hires Amrita Ahuja as CFO, effective by 01/31/19. $SQ PR link.
Bio-Rad(PBR853) EVP/CFO Christine A. Tsingos to retire effective 04/30/19, search for new CFO starts. $BIO PR link.
AAR Corp(PBR913) hires Sean Gillen as VP/CFO, succeeds Michael Milligan. $AIR PR link.
ADP(PBR217) says US Preliminary December 2018 Nonfarm Private Sector Employmentincreased by 271,000, 89,000 from small businesses(1-49 employees), 129,000 from mid sized businesses(50-499 employees), and 54,000 from large businesses(500 or more employees); 47,000 jobs were from Goods Producing Sector, 224,000 jobs from Service Providing Sector. “Businesses continue to add aggressively to their payrolls despite the stock market slump and the trade war. Favorable December weather also helped lift
the job market…” $ADP PR link.
The Institute for Supply Management says the US December 2018 Manufacturing PMI Index(>50% is expanding) is at 54.1%, November 2018 was at 59.3%, October 201857.7%, December 2017 59.3%. “Comments from the panel reflect continued expanding business strength, but at much lower levels.” ISM PR link.
Automotive News reports that US December 2018 Light Vehicle Sales were at 1,542,930, +2.9% from December 2017, Average Transaction Price was $37,577, +1.3% from December 2017, Seasonally Adjusted Annual Sales Rate is 17,300,000 vehicles. “Despite recent market turbulence, the data we have in hand suggests an economy that remains on solid footing heading into the new year,” Ford Chief Economist Emily Kolinski Morris. Automotive News PR link.
The Construction Spending report from the US Dept of Commerce scheduled for today is not available because of the US Federal Government partial shutdown.
***Wednesday, January 2:
Apple(PBR2) CEO Tim Cook letter to investors revises 1Q19 projections down to $84 billion in sales, cites production issues and lower iPhonesales in China. $AAPL PR link.
AT&T(PBR10) completes $1.1 billion sale to transfer data center colocation operations and assets to Brookfield Infrastructure in new strategic alliance, will become an active sales channel for the business, be the anchor tenant of the colocation operations. $T PR link.
Southern Co(PBR119) completes $6.475 billion, includes debt, sale of its Florida assets Gulf Power Company, Florida City Gas and the entities holding Southern Power’s interests in Plant Oleander and Plant Stanton to NextEra Energy(PBR162). $SO PR link.
Dominion Energy(PBR228) completes $14.6 billion, includes $6.7 billion debt, merger of SCANA(PBR547), Dominion Energy forms Southeast Energy Group to include SCANA operations, names SVP/Chief Information Officer P. Rodney Blevins as its President/CEO, other executives named. $D PR link.
Tesla(PBR249) delivers 90,700 vehicles in 4Q18, includes 63,150 Model 3’s, 13,500 Model S’s, and 14,050 Model X’s, delivered 245,240 vehicles in 2018, reduces prices of Model 3, Model S and Model X vehicles sold in the US by $2,000 to help offset reduction in electric vehicle federal credit. $TSLA PR link.
Sempra Energy(PBR260) subsidiary to sell its non-utility US natural gas storage facilities to an affiliate of ArcLight Capital Partners for $332 million cash. $SRE PR link.
Celanese(PBR444) acquires Next Polymers Ltd., one of India’s largest engineering thermoplastics (ETP) compounders, terms not disclosed. $CE PR link.
Chipotle(PBR536) launches Lifestyle Bowls, includes a Paleo Salad Bowl, Keto Salad Bowl, Whole30® Salad Bowl and Double Protein Bowl. $CMG PR link.
WellTower(PBR560) to acquire a Class A medical office and outpatient facilities portfolio comprised of 55 buildings from CNL Healthcare Properties for $1.25 billion, to close 1H19. $WELL PR link.
Iron Mountain(PBR598) acquires Philippinesbased 8 locations 1,000 clients records and data management services, along with document management and secure destruction provider Lane Archive Technologies Limited, terms not disclosed. $IRM PR link.
The Andersons(PBR614) completes $324 million cash and stock acquisition of 67.5% equity that it did not already own of mover of physical commodities including grains, feed ingredients, energy products, and freight within N America and internationally affiliate Lansing Trade Group. $ANDE PR link.
PolyOne(PBR680) acquires Fiber-Line, a global leader in customized engineered fibers and composite materials, for $120 million. $POL PR link.
Penn Natl Gaming(PBR689) completes $115 million acquisition of operations of Margaritaville Resort Casino in Bossier City, LA. $PENN PR link.
Spectrum Brands(PBR691) completes $1.25 billion sale of its Global Auto Care business to Energizer Holdings(NYSE: ENR). $SPB PR link.
Columbia Sportswear(PBR788) completes buyout of the remaining 40% interest in Columbia Sportswear Commercial (Shanghai) Company, the joint venture in China with a subsidiary of Swire Pacific Limited (SEHK:00019) (SEHK:00087). $COLM PR link.
TEGNA(PBR884) completes $105 million acquisition of local stations WTOL, the CBS affiliate in Toledo, OH, and KWES, the NBC affiliate in Odessa-Midland, TX, from Gray Television. $TGNA PR link.
Allscripts(PBR900) nets around $525 million after taxes for sale of its interests in behavioral health, human services and post-acute care technologies provider Netsmart Technologies. $MDRX PR link.
Synovus Financial(PBR949) completes $2.9 billion all stock acquisition of FCB Financial Holdings, Inc. (NYSE: FCB), owner of Florida Community Bank (FCB), Florida’s largest community bank. $SNV PR link.
Halliburton(PBR141) President/CEO Jeff Miller adds Chairman role after retirement of Executive Chairman Dave Lesar. $HAL PR link.
Nordstrom(PBR179) says Co-President Blake Nordstrom has unexpectedly passed away, Pete and Eric Nordstrom to continue leadership as Co-Presidents. $JWN PR link.
Netflix(PBR250) hires Spencer Neumann as CFO, succeeds David Wells. $NFLX PR link.
Activision Blizzard(PBR389) Chief Corporate Officer and former CFO Dennis Durkin reappointed CFO following termination of Spencer Neumann for cause. $ATVI PR link.
Beacon Roofing(PBR553) promotes Chief Commercial Officer C. Eric Swank to COO. $BECN PR link.
Camping World(PBR563) CFO Thomas Wolfe appointed President/Good Sam unit, hires Melvin Flanigan to be CFO, makes other management changes in reorganization. $CWH PR link.
Red Robin(PBR965) hires Lynn Schweinfurth as EVP/CFO, effective 01/28/19, succeeds Guy Constant who will become EVP/COO. $RRGB PR link.
The IHS Markit US December 2018 Manufacturing PMI Index is at 53.8, November 2018 was 55.3, October 2018 55.7, December 2017 55.1. “… suggested a weaker, but still strong, improvement in operating conditions across the goods producing sector.” IHS Markit PR link.
New Family Home Sales and US Net International Investment Position reports scheduled for today are not available because of the US Federal Government partial shutdown.
***Tuesday, January 1:
***Happy New Year!
***US Stock Exchanges Closed.***
***Monday, December 31:
The PBRMarketTools US Stock Exchanges Recap for the Month and Year Ending 12/31/18:
DJIA ends the month and year at 23,327.46, +1.15% from last Friday, -8.66% MTD, -11.83% QTD, -5.63% YTD, -13.05% from record 26,743.50 set 09/21/18.
NASDAQ ends the month and year at 6,635.28, +0.77% from last Friday, -9.48% MTD, -17.54% QTD, -3.88% YTD, -18.18% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,506.85, +0.85% from last Friday, -9.18% MTD, -13.97% QTD, -6.24% YTD, -14.46% from record 2,930.75 set 09/20/18.
The Stock Market Bull was standing tall at the end of November, ahead of The Stock Market Bear in weekly, monthly, and year-to-date victories and looking forward to a nice December bump. But The Stock Market Bearcharged into the month viciously clawing and gnashing away at the exchanges. At the end of the month the results were devastating with all exchanges finishing down for the year and in correction territory compared to record highs achieved just a few months before. The Stock Market Bear easily wins December 3-0 in dominating style and takes the year 2018 as well.
The Month 12 YTD tally is:
The Stock Market Bull: 6 months
The Stock Market Bear: 4 months
Mixed Results: 2 months
The Year 2018: The Stock Market Bear wins the year in a ruthless and dramatic come from behind in December.
Check out the BLOG page for the previous RECAPS and SNAPSHOTS posts.
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PBRMarketTools.com provides news, data, and analysis on 1,000 of the largest publicly held companies with primary operations in the US. The data and analysis is included in The PBR1000 Monthly Snapshots, an MS-Excel workbook with 15 snapshot worksheets, 27 rankings, and over 200 fields of data and information on each company. Click here to find out more!
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