The PBR1000 November 2018 Breaking News Items
With the new USMCA replacing NAFTA, US/China trade negotiations, sanctions on Iran, and Brexit, international issues are a big item of interest for many in The PBR1000.
By Larry C. Paxton
November 2018 News Summary: The US economy continued to do very well overall, but corporate earnings were mixed, tech and energy stocks took a dive, while retailers had a record Black Friday and then Cyber Monday. The contentious US elections split Congress between a more Republican controlled Senate counterbalanced by a Democrats controlled House, California wildfires caused great devastation, illegal immigration is causing a lot of anxiety as the much awaited Caravan through Mexico arrives at the US borders, sanctions were imposed on Iran, US/China trade negotiations seesaw, the leaders of the US, Mexico, and Canada sign the new USMCA agreement that will replace NAFTA if their government bodies approve, the UK Brexit negotiations with Europe are not going all that well, the 41st President of the US, George HW Bush, passes away.
Here are The PBR1000 corporate, stock market, and economic related breaking news items of interest with hotlinks to the sources for November 2018, starting with the last active business day:
***Friday, November 30:
***George HW Bush, 41st President of the United States(1989-1993), passes away at the age of 94. White House bio link.
***
The PBRMarketTools US Stock Exchanges Recap for the Week and Month Ending 11/30/18:
DJIA ends the week and month at 25,538.46, +5.16% from last Friday, +1.68% MTD, -3.48% QTD, +3.31% YTD, -4.81% from record 26,743.50 set 09/21/18.
NASDAQ ends the week and month at 7,330.54, +5.64% from last Friday, +0.34% MTD, -8.90% QTD, +6.19% YTD, -9.61% from record 8,109.69 set 08/29/18.
SPX ends the week and month at 2,760.16, +4.85% from last Friday, +1.79% MTD, -5.28% QTD, +3.24% YTD, -5.82% from record 2,930.75 set 09/20/18.
The Stock Market Bull returned with a vengence after the embarrassing loss last week to The Stock Market Bear, and more than made up for the difference. With a resounding 3-0 victory The Stock Market Bull wins both the week and month.
The Month 11 YTD tally is:
The Stock Market Bull: 6 months
The Stock Market Bear: 3 months
Mixed Results: 2 months
The Week 48 YTD tally is:
The Stock Market Bull: 20 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 10 weeks
The Week 48 News Summary: The US economy continues to be robust as shown by the Thanksgiving Thursday through Cyber Monday holiday shopping period breaking records, especially from online sales. The Federal Open Market Committee minutes also indicated a strong economy, and comments by Federal Reserve Chairman Powell indicated a possible softening on federal short term interest rate increases. Tech and healthcare stocksrallied during the week, corporate earnings and guidance were somewhat mixed, some major acquisitions were completed, US/China trade tensions eased a bit, the new US/Mexico/Canada trade agreement was signed by its leaders and now needs to be ratified by those countries. The devastating California wildfires have been contained. The US elections are over, along with a lot of the acrimony that accompanied that process, but there are a lot of political ramifications and continued bitterness between political leaders as Presidential tweets continue to fuel the fires, contrasted by comments about the controversial migrant caravan arriving at US borders and the more peaceful annual lighting of the nation’s Christmas tree in Washington DC, which offers us some hope for peaceful times.
McKesson(PBR5) to relocate its corporate headquarters from San Francisco, CA, to Las Colinas, TX, effective 04/01/19, expanding upon its presence in the Dallas area. $MCK PR link.
Boeing(PBR30) delivers 2,000th airplane to a China operator, a 737 MAX for Xiamen Airlines, one in four Boeing-made commercial jets now goes to a Chinese operator. $BA PR link.
Proctor & Gamble(PBR41) completes $4.1 billion acquisition of Consumer Health business of Merck KGaA, Darmstadt, Germany, expands over-the-counter products, replaces and improves upon the highly successful PGT Healthcare joint venture P&G had with Teva Pharmaceutical Industries (NYSE: TEVA), which was terminated 07/01/18. $PG PR link.
Tyson(PBR76) completes $2.16 billion acquisition of West Chester, PA, based 11,000 employees, $2.5 billion in revenues/year global chicken, beef, fish and pork supplier Keystone Foods from Marfrig Global Foods. $TSN PR link.
AbbVie(PBR102) grants Pfizer(PBR55) a non-exclusive license to AbbVie’s intellectual property relating to HUMIRA, US license begins on 11/20/23, European Union upon regulatory approvals there. $ABBV PR link.
Marriott Intl(PBR120) investigation indicates that there has been unauthorized access since 2014 to personal data for approximately 500 million guests who made a reservation at a Starwood property. $MAR PR link.
Tesla(PBR250 $TSLA) has achieved its goal of producing 1,000 Model 3 vehicles in a day, which would result in 7,000 units per week, but it is now focusing on maintaining that production rate and reducing costs. Electrek PR link.
Salesforce(PBR275) to expand regional headquarters with Salesforce Tower Chicago, to add over 1,000 jobs over 5 years, 57 story facility on the Chicago River, to be completed in 2023. $CRM PR link.
BGC Partners(PBR668) completes spinoff of real estate services provider Newmark Group(NASDAQ: NMRK). $BGC PR link.
Hexcel(PBR872) to acquire privately held Amesbury, MA, based 170 employees $50 million in revenues expected in 2018 custom RF/EMI and microwave absorbing composite materials for military, aerospace and industrial applications supplier ARC Technologies for $160 million. $HXL PR link.
NuStar(PBR894) completes $270 million sale of its European terminals and related assets to Inter Pipeline. $NS PR link.
SL Green Realty(PBR950) authorizes an additional $500 million share repurchase program, authorization is now at $2.5 billion. $SLG PR link.
The US Dept of Treasury says the US 11/29/18 National Debt Held by Public was at $15.985 trillion, by Intragovernmental Holdings $5.833 trillion, Total US Debt $21.818 trillion, +0.5% from 10/31/18, +6.5% YTD(11 months), +6.0% from 11/30/17. USTreasury PR link.
The US Dept of Treasury says the US 10 Year Treasury Note Yield Close on 11/30/18 was at 3.01%, 10/31/18 was 3.15%, 09/28/18 3.05%, 11/30/17 2.42%. USTreasury PR link.
The Federal Reserve Bank of Chicago says the US 7th District Preliminary October 2018 Midwest Economy Index is at +0.23, September 2018 was +0.31, August 2018+0.37, October 2017 +0.10. ChiFed PR link.
The American Automobile Assn says the US National Average Price Per Gallon for Regular Gas on 11/30/18 was $2.493, 10/31/18 was $2.801, 09/28/18 $2.875, 11/30/17 $2.495. AAA PR link.
The Gold Closing Price Per Ounce on 11/30/18 was $1,227.80, +0.7% from 10/31/18, -5.9% since 12/31/17, -3.83% from 10/31/17. MarketWatch PR link.
The Euro closed at $1.1320 US on 11/30/18, it was $1.1345 on 10/31/18, $1.1605 on 09/28/18, $1.1904 on 11/30/17. MarketWatch PR link.
***Thursday, November 29:
Kraft Heinz(PBR106) to acquire Primal Nutrition, LLC, makers of Primal Kitchenbranded products, including Mayonnaise, Salad Dressings and Avocado Oil, with growing product lines in Healthy Snacks and other categories, for approximately $200 million, expects $50 million in sales in 2018, to be completed in early 2019. $KHC PR link.
AmTrust Financial(PBR446) $14.75/share cash acquisition for 45% stake not owned by the Evergreen Parent made up of Stone Capital and the Karfunkel- Zyzskind Family, represents $2.95 billion total equity value, has been completed, now a private company. $AFSI PR link.
Sprouts(PBR529) CEO Amin Maredia leaving company effective 12/30/18, President/COO Jim Nielsen and CFO Brad Lukow will serve as the co-interim CEOs until a permanent successor has been named. $SFM PR link.
General Motors(PBR12) appoints Dan Ammann as CEO of Cruise, Cruise co-founder Kyle Vogt will partner with Ammann to set strategic direction and lead technology development for commercializing autonomous vehicle technology as Cruise President/Chief Technology Officer, both effective 01/01/19. $GM PR link.
CDW(PBR185) hires Elizabeth H. Connelly as Chief Human Resources Officer and SVP/CoWorker Services, effective by end of 2018. $CDW PR link.
Symantec(PBR519) President/COO Michael Fey resigns, CEO Greg Clark adds President role, Art Gilliland hired as EVP and GM Enterprise Products, Marc Andrews continues as SVP/Worldwide Sales. $SYMC PR link.
Abercrombie & Fitch(PBR643)‘s Brand President of Hollister, Kristin Scott, appointed to new position of President/Global Brands. $ANF PR link.
OGE Energy(PBR835) hires Ken Miller as VP/Regulatory and State Government Affairs, effective 01/02/19. $OGE PR link.
The Federal Open Market Committee releases the minutes from the 11/07-08/18 meeting, says that “… labor market conditions continued to strengthen in recent months and that real gross domestic product (GDP) rose at a strong rate in the third quarter, similar to its pace in the first half of the year. Consumer price inflation, as measured by the 12-month percentage change in the price index for personal consumption expenditures (PCE), was 2.0 percent in September. Survey-based measures of longer-run inflation expectations were little changed on balance.” FOMC PR link.
The US Dept of Labor says US Initial Unemployment Claims 4 Week Moving Average for the Week Ending 11/24/18 was at 223,250, +5.4% from 10/20/18, -7.8% from 11/25/17; Total Insured Unemployment 4 Week Moving Average for the Week Ending 11/17/18 was at 1,667,750, +1.3% from 10/13/18, -12.7% from 11/18/17. USDOL PR link.
The US Dept of Commerce/BEA says US Preliminary October 2018 Total Personal Income Annual Rate was at $17.776 trillion, +0.5% from September 2018, +7.1% from October 2017, October 2018 Total Personal Savings are at $967.8 billion, 6.2% Savings Rate, 11.7% Effective Tax Rate. USDOC PR link.
FreddieMac(PBR38) says the US Average 30 Year Fixed Mortgage Rate on 11/29/18 was at 4.81% with 0.5 fees/points, was 4.86% on 10/25/18, 3.90% on 11/30/17. $FMCC PR link.
The NonProfit Times reports that #GivingTuesday raised $380 million online, a 27% increase from last years’ $300 million, 3.6+ million donors averaged $105.55, has surpassed $1 billion since starting in 2012. TNPT PR link.
***Wednesday, November 28:
CVS Health(PBR7) completes $212/share, $70 billion, stock/cash acquisition of Aetna(PBR48). $CVS PR link.
Amazon(PBR8) Web Services announces 13 new machine learning services and capabilities, including a custom chip for machine learning inference, and a 1/18 scale autonomous race car for developers. $AMZN PR link.
Humana(PBR54) will repurchase $750 million of its common stock through an accelerated stock repurchase agreement with Goldman Sachs(PBR88), part of current $3.0 billion program, revising its net membership growth estimate for its individual Medicare Advantageproducts for year ending 12/31/19 to 350,000 to 400,000 members, compared to its initial estimate of 250,000 to 300,000 members. $HUM PR link.
Facebook(PBR69) news service Today In is now in over 400 US cities, connects people to local news and information about their community. $FB PR link.
Qualcomm(PBR125) launches $100 million Artificial Intelligence fund, will focus on startups that share the vision of on-device AI becoming more powerful and widespread, with an emphasis on those developing new technology for autonomous cars, robotics and machine learning platforms and makes an initial investment in face, body, and object recognition startup AnyVision. $QCOM PR link.
Newell Brands(PBR194) will voluntarily transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq Global Select Market (“Nasdaq”) effective 12/10/18 after market close, ticker symbol to remain NWL. $NWL PR link.
Quest Diagnostics(PBR356) to build a flagship laboratory in Clifton, NJ, 250,000 sf facility to be largest of its 20 laboratories, will employ 1,100+ people, to be operational in early 2021. $DGX PR link.
Green Plains(PBR634) completes $350 million sale of its Fleischmann’s Vinegar Co to Kerry Group. $GPRE PR link.
TripAdvisor(PBR942) partners with DoorDashfor online food ordering and then delivery in over 1,800 N America cities. $TRIP PR link.
Tenet Healthcare(PBR141) hires Saumya (“Saum”) Sutaria, MD, as COO, effective 01/06/19, succeeds Eric Evans, President of Hospital Operations, who is leaving at end of 2018. $THC PR link.
Principal Financial(PBR206) SVP/COO International Renee Schaaf to become President/Retirement and Income Solutions effective 03/01/19, to succeed retiring Nora Everett. $PFG PR link.
Magellan Health(PBR461)’s Healthcaredivision CEO Sam K. Srivastava’s employment will be terminated without cause on 12/28/18, Chairman Barry Smith will add CEO role to his responsibilities. $MGLN PR link.
Devon Energy(PBR209) elects Duane C. Radtke as its new Vice-Chairman, Chairman John Richels not standing for re-election in 06/19 and to retire. $DVN PR link.
The US Dept of Commerce says US 2nd Estimate 3Q18 of Gross Domestic Product Annual Rate remains at 3.5%, $20.660 trillion, +1.2% from 2Q18, +5.5% from 3Q17. USDOC PR link.
The US Dept of Commerce/HUD says US Preliminary October 2018 New Family Homes Sold Annual Rate is at 544,000 units, -8.9% from September 2018, -12.0% from October 2017; October 2018 Median Price is at $309,700, -3.6% from September 2018, -3.1% from October 2017; October 2018 New Houses Available at 336,000 units, +4.3% from September 2018, +17.5% from October 2017; October 2018 Months Supply at 8.1 months, September 2018 was at 7.2 months, October 2017 5.9 months. USDOC PR link.
The Federal Reserve Bank of Richmond says the 5th District November 2018 Manufacturing Index(Annualized) is at 14%, October 2018was 15%, September 2018 29%, November 2017 30%, “… manufacturing activity grew moderately in November, … Firms were optimistic, expecting growth to continue in the next six months.” Richmond Fed PR link.
The Federal Reserve Bank of Richmond says the 5th District November 2018 Service Sector Revenues Index(Annualized) is at 5%, October 2018 was -1%, September 2018 18%, November 2017 30%, “… service sector activity grew slightly in November, … Firms were optimistic, expecting growth to continue in the next six months.” Richmond Fed PR link.
The US Energy Information Administrationsays US Crude Oil Stocks on 11/23/18 were at 450.5 Millions of Barrels, +5.8% from 10/26/18, -0.7% from 11/24/18. USEIA PR link.
***Tuesday, November 27:
Alphabet(PBR21 $GOOG)’s Google unit to be notified by the European Consumer Organisation(ECO) that seven consumer organisations from across Europe have announced that they will file complaints against Google with their national data protection authorities for breaching the General Data Protection Regulation (GDPR) in relation to how the company tracks its users’ location. ECO PR link.
Dominion Energy(PBR228) and Smithfield Foods to form a joint venture called Align Renewable Natural Gas (RNG)℠ that will capture methane emissions from hog farms and convert them into clean renewable energy for residential home heating and power for local businesses, first projects to be in N Carolina, Virginia, and Utah. $D PR link.
MGM Resorts(PBR270) becomes Major League Baseball‘s first-ever Official Gaming Partner and Official Entertainment Partner in multi-year partnership. $MGM PR link.
Altice USA(PBR307) completes combination of its Suddenlink (Cequel) and Optimum (Cablevision) businesses under a single credit silo to further simplify its structure and operations. $ATUS PR link.
Alliance Data(PBR357) is exploring strategic alternatives, including possible sale, for its Epsilon® business, including its digital media arm Conversant®, a global marketing innovator with $2.2 billion of revenue for the trailing 12 months ending 09/30/18. $ADS PR link.
Quad/Graphics(PBR577) to acquire Minneapolis, MN, based 500+ employees Periscope, one of the US top five independent creative agencies by annual revenue, for $132.5 million, to close in early 2019. $QUAD PR link.
Par Pacific(PBR801) to acquire 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 for $358 million plus net working capital, to close in 01/19. $PARR PR link.
Western Digital(PBR141) CFO/Chief Strategy Officer and President/Western Digital Capital Mark Long to step down from his current role to pursue opportunities as a private equity investor, will remain CFO until his departure on 06/01/19 or until a permanent successor is appointed. $WDC PR link.
Mohawk Industries(PBR303) CFO Frank H. Boykin to retire in 2019 after 25 years with the company, successor search starts. $MHK PR link.
The US Federal Housing Finance Agencyannounces that in 2019 in most of the US the maximum conforming loan limits for one-unit properties will be $484,350, an increase from $453,100 in 2018 for mortgages to be acquired by FannieMae(PBR20 $FNMA) and FreddieMac(PBR38 $FMCC). FHFA PR link.
The Conference Board says the US Preliminary November 2018 Consumer Confidence Index(1985=100) is at 135.7, October 2018 was at 137.9, September 2018135.3, November 2017 128.6. “Despite a small decline in November, Consumer Confidence remains at historically strong levels…” TCB PR link.
The S&P CoreLogic Case-Shiller US National September 2018 Home Price Index(01/2000=100) is at 205.82, August 2018was 205.66, July 2018 205.29, September 2017195.07. Case-Shiller PR link.
FreddieMac(PBR38) forecasts 2018 GDP at 3%, 2019 GDP at 2.4%, 2020 GDP at 1.8%; forecasts 2018 total home sales at 6.02 million, 6.08 million in 2019, 6.20 million in 2020; also forecasts home prices and mortgage originations. $FMCC PR link.
Adobe Systems(PBR377 $ADBE)’s Analyticsunit says Cyber Monday 2018 was the biggest US online shopping day in history, generated $7.9 billion in retail sales, up 20% from last year, surpasses Black Friday 2018‘s $6.2 billion in sales, up 24% from 2017. MarketWatch PR link.
***Monday, November 26:
General Motors(PBR12) reorganizing its global product development staffs by prioritizing future vehicle investments in its next-generation battery-electric architectures, realigning of its manufacturing capacity by ‘unallocating’ 5 plants in the US/Canada, 1 in S Korea, and 2 in other parts of the world, and a reducing salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives. $GM PR link.
United Technologies(PBR50) completes $140/share, $30 billion cash/stock acquisition of avionics, flight controls, aircraft interior and data connectivity solutions provider Rockwell Collins(PBR399), to spinoff $12.3 billion in revenues in 2017 people-moving products, including elevators, escalators and moving walkways global manufacturer Otis Elevatorand to spinoff $17.8 billion in 2017 revenues HVAC, refrigeration, building automation, fire safety and security products global provider Carrier as independent public companies in 2020. $UTX PR link.
Bristol-Myers Squibb(PBR139) says Phase 3 CheckMate -451 study did not meet its primary endpoint of overall survival (OS) with Opdivo (nivolumab) 1 mg/kg in combination with Yervoy (ipilimumab) 3 mg/kg versus placebo as a maintenance therapy for patients with extensive-stage small cell lung cancer. $BMY PR link.
PayPal(PBR219 $PYPL)’s $2.2 billion acquisition of Europe and Latin Americapayments company iZettle on 09/20/18 raises antitrust concerns in the UK. MarketWatch PR link.
Tesla(PBR250 $TSLA) CEO Elon Musk in interview on ‘Axios on HBO’ says Tesla was weeks from dying earlier this year. MarketWatch PR link.
Steel Dynamics(PBR301) to invest $1.7+ billion to construct a new state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill, will create 600 jobs, to be located in the Southwest US to also serve Mexico market, site not yet determined, to begin construction in 2020, in production in 2H21. $STLD PR link.
Campbell Soup(PBR328) to add 2 new independent directors from nominees slate of Third Point (NYSE: TPRE) which also agrees to a 12-month standstill and certain support commitments. $CPB PR link.
Arthur J Gallagher(PBR441) acquires California based retail property/casualty and employee benefits agency and consultant specializing in commercial and agribusiness provider Buckman-Mitchell, terms not disclosed. $AJG PR link.
Arthur J Gallagher(PBR441) acquires Long Beach, CA, based US retail property/casualty broker R.T. Beers & Company Insurance Services, terms not disclosed. $AJG PR link.
SCANA(PBR545) and S Carolina Electric & Gas Co settle class action lawsuit with attorney general and plaintiffs related to VC Summer Nuclear costs, agree to a credit of up to $2 billion in future electric rate relief, a cash payment of $115 million, transfer of SCE&G owned real estate or sales proceeds of certain real estate holdings. $SCG PR link.
MEDNAX(PBR648) acquires private radiology physician group based in Boynton Beach, FL, Bethesda Radiology Associates, terms not disclosed, 9th radiology practice acquired this year, now reading more than 11.7 million studies through its more than 750 board-certified or eligible radiologists across the US. $MD PR link.
PayChex(PBR655) to acquire W Palm Beach, FL, based 1,100 employees 8,400 clients largest US privately owned professional employer organization Oasis Outsourcing Acquisition Corp for $1.2 billion cash. $PAYX PR link.
Southwest Gas(PBR781) wholly-owned subsidiary Centuri Construction Group to acquire 80% stake in recurring maintenance, refurbishment, upgrade, and installation services for electrical transmission and distribution infrastructure throughout the Gulf Coast and Mid-Atlantic regions provider Linetec Servicesfor $336 million, includes option to acquire remaining 20%, to close by end of 2018. $SWX PR link.
Cleveland-Cliffs(PBR819) authorizes up to $200 million share buyback program, expires 12/31/19. $CLF PR link.
Nelnet(PBR988) Business Solutions division acquires Cognition Financial‘s division Tuition Management Systems, provides tuition payment plans, billing services, payment technology solutions, and refund management to educational institutions, terms not disclosed. $NNI PR link.
Newell Brands(PBR194) hires Christopher Peterson as EVP/CFO, effective 12/03/18, succeeds retiring Ralph Nicoletti. $NWL PR link.
Ocwen Financial(PBR991) hires Timothy J. Yanoti as EVP/Chief Growth Officer and appoints Albert J. Celini as SVP/Chief Risk and Compliance Officer. $OCN PR link.
The Federal Reserve Bank of Chicago says the US Preliminary October 2018 National Activity Index is at +0.24, September 2018 was +0.14, August 2018 +0.53, October 2017+0.84. ChiFed PR link.
***Friday, November 23:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 11/23/18:
DJIA ends the week at 24,285.95, -4.44% from last Friday, -3.30% MTD, -8.21% QTD, -1.75% YTD, -9.48% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 6,938.98, -4.26% from last Friday, -5.02% MTD, -13.76% QTD, +0.52% YTD, -14.44% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,632.56, -3.79% from last Friday, -2.92% MTD, -9.66% QTD, -1.54% YTD, -10.17% from record 2,930.75 set 09/20/18.
With a great roar The Stock Market Beardragged a big Thanksgiving feast of plummeting stocks into his den as The Stock Market Bulllooked dazed and confused. The Stock Market Bear takes the week big time 3-0 in Week 47and threatens to take the year as well.
The Week 47 YTD tally is:
The Stock Market Bull: 19 weeks
The Stock Market Bear: 18 weeks
Mixed Results: 10 weeks
Week 47 News Summary: In a Thanksgiving 3 1/2 day business week tech stocks took big losses again and oil prices dropped down significantly impacting energy stocks. Economic indices for the week slipped a little bit as well but still the US economy remains robust. Quarterly corporate earnings reports were mixed, with many showing revenue gains but declining profits. California wildfires continued to do a lot of damage but rains seem to be quenching them. The UK Brexit deal is entering its final stages of negotiation with a lot of uncertainty.
United Technologies(PBR50) receives the final regulatory approval, from China’s State Administration for Market Regulation, needed to close its $140/share, $30 billion cash/stock acquisition of avionics, flight controls, aircraft interior and data connectivity solutions provider Rockwell Collins(PBR399), to close within 3 business days. $UTX PR link.
Tesla(PBR250 $TSLA) cuts Model X and Model S cars prices 12-26% in China to absorb hit from trade war tariffs. Reuters PR link.
The US Global Change Research Program, a program of the US federal government, releases its Fourth National Climate Assessment, Volume II, says “Earth’s climate is now changing faster than at any point in the history of modern civilization, primarily as a result of human activities… are already being felt in the United States and are projected to intensify in the future…” USGCRP PR link.
Adobe(PBR377) Analytics says online retail sales on Thanksgiving day jump 28% from last year to $3.7 billion. MarketWatch PR link.
***Thursday, November 22:
*** US Thanksgiving Day. US stock exchanges closed. Remembering and giving Thanks for the Pilgrims whose sacrifices and pursuit of ideals set the stage for the freedoms we enjoy today. ***
***Wednesday, November 21:
Facebook(PBR69)‘s outgoing Head of Communications and Policy Elliot Schrage shares more details about their hiring Definers, a Washington, DC PR firm, and other firms to research Russian interferene and later its response to George Soros saying that Facebook is a “menace to society.” $FB PR link.
AbbVie(PBR102) gets US FDA accelerated approval for VENCLEXTA® (venetoclax) for treatment of newly-diagnosed acute myeloid leukemia patients ineligible for intensive chemotherapy. $ABBV PR link.
GameStop(PBR310) to sell its Spring Mobilebusiness, which owns and operates 1,289 AT&Twireless stores, to Prime Communications for $700 million, to close in 4Q18. $GME PR link.
Taylor Morrison Homes(PBR599) extends current share repurchase program to 12/31/19, increases amount available by $100 million, balance is now $113 million. $TMHC PR link.
Albemarle(PBR697) signs Exclusivity Agreement with Australia based Mineral Resources(ASX: MIN) for potential creation of a 50/50 joint venture to own and operate the Wodgina hard rock lithium mine and develop an integrated lithium hydroxide operation at the resource site, mine life is over 30 years, investment to be $1.15 billion each, to close in 4Q18. $ALB PR link.
Scientific Games(PBR699) launches eInstantand Digital Games with Norsk Tipping, Norway’s national lottery operator and longtime partner. $SGMS PR link.
Spirit AeroSystems(PBR370) EVP/CFO Sanjay Kapoor to retire in 1Q19, successor search starts. $SPR PR link.
Axalta(PBR552)‘s SVP/General Counsel and Corporate / Government Affairs and Corporate Secretary Michael Flinn leaving to pursue another opportunity; Tabitha Oman, VP/Deputy General Counsel and Chief Compliance Officer, is appointed Interim General Counsel. $AXTA PR link.
The Conference Board says the US Preliminary October 2018 Leading Economic Index(2016=100) is at 112.1, September 2018was 112.0, August 2018 111.4, October 2017106.1, “The index still points to robust economic growth in early 2019, but the rapid pace of growth may already have peaked…” TCB PR link.
The U of Michigan Final October 2018 Consumer Sentiment Index is at 97.5, September 2018 was at 98.6, August 2018100.1, October 2017 100.7, “Consumer sentiment has remained largely unchanged at very favorable levels during 2018, with the November reading nearly at the center of the eleven month range from 95.7 to 101.4…” UMichigan PR link.
The Natl Assn of Realtors says US Preliminary October 2018 Existing Home Sales Annual Rate is at 5,220,000, +1.4% from September 2018, -5.1% from October 2017; October 2018 Median Home Sales Price was $255,400, -1.0% from September 2018, +3.8% from October 2017. “…increasing housing inventory has brought more buyers to the market…”
NAR PR link.
***Tuesday, November 20:
Lowe’s(PBR40) in 3Q18 report says it intends to exit retail operations in Mexico, exit non-core units Alacrity Renovation Services, and Iris Smart Home, actions are in addition to the previously announced decisions to exit its Orchard Supply Hardware operations, and close 20 underperforming stores in the US and 31 stores and other locations in Canada. $LOW PR link.
Office Depot(PBR281) authorizes new $100 million share buyback program starting 01/01/19, expires 12/31/19, $41 million remaining from current plan which expires 12/31/18. $ODP PR link.
Ryder(PBR375) orders 1,000 medium-duty electric panel vans by Chanje Energy, to be used by FedEx(PBR42) Express for commercial and residential pick-up and delivery services in the US, to be deployed throughout Californiaover the next two years. $R PR link.
Arthur J Gallagher(PBR441) acquires Los Angeles, CA-based insurance and risk management coverages and services to life science, technology, financial institution, REIT and hedge fund clients around the world provider JP Tech Insurance Services, terms not disclosed. $AJG PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 11/29/18, 64.4% of shares have been tendered. $ESND PR link.
Autodesk(PBR864) to acquire San Francisco, CA-based cloud real-time collaboration construction productivity software provider PlanGrid for $875 million net of cash. $ADSK PR link.
Navient(PBR965) President/CEO Jack Remondi says an Associated Press article ignores facts to make false, sensational and harmful accusations that discourage borrowers from working with their servicers, article includes hotlinks to documents. $NAVI PR link.
L Brands(PBR225) in 3Q18 report says it has hired John Mehas as CEO of its Victoria’s Secret Lingerie, effective early 2019, succeeds departed Jan Singer. $LB PR link.
Dominion Energy(PBR228) hires Adam Lee as VP/Chief Security Officer effective 12/01/18. $D PR link.
The US Dept of Commerce/HUD says US Preliminary October 2018 Private Housing Building Permits Issued Annual Rate was at 1,263,000, -0.6% from September 2018, -6.0% from October 2017. USDOC PR link.
***Monday, November 19:
Kroger(PBR17) to partner with UK-based Ocado (LSE: OCDO), one of the world’s largest dedicated online grocery retailers, will invest $55 million in Cincinnati, OH, region to build a 335,000 sf facility, the “shed,” for a customer fulfillment center, will create 410+ jobs, 1st of 20 facilities planned. $KR PR link.
Walt Disney(PBR53 $DIS) $38/share, $71.3 billion acquisition of certain 21st Century Fox(PBR92) assets approved without conditions by China. MarketWatch PR link.
Community Health Systems(PBR152) to sell 4 S Carolina hospitals to the Medical University Hospital Authority in Charleston, SC, part of divestiture plan announced in 3Q18 report, terms not disclosed. $CYH PR link.
Dominion Energy(PBR228) and SCANA(PBR545) $7.9 billion all stock transaction, $14.6 billion with debt, merger gets N Carolina Utilities Commission approval, last needed approval is by S Carolina, expected by 12/21/18. $D PR link.
Colfax(PBR673) to acquire global orthopedic devices, software and services provider DJO Global from private equity funds managed by Blackstone(PBR385) for $3.15 billion in cash, to close in 1Q19. $CFX PR link.
Cimarex Energy(PBR873) to acquire Delaware pure-play Resolute Energy Corporation (NYSE: REN) for $35/share, $1.6 billion cash & stock, includes long term debt of $710 million, adds 21,100 acres to Reeves County, TX, holdings, to close by end of 1Q19. $XEC PR link.
QEP Resources(PBR928) to sell natural gas and oil producing properties, undeveloped acreage and associated gas gathering and treating systems in the NW Louisiana Haynesville/Cotton Valley area for $735.0 million to an Aethon Energy affiliate, to close in 01/19. $QEP PR link.
Babcock & Wilcox(PBR941) CEO Leslie Kass leaving, hires Kenny Young as CEO, effective immediately, Lou Salamone appointed EVP/Finance and to be CFO soon, Henry E. Bartoli to serve as Chief Strategy Officer and remain a director. $BW PR link.
GE(PBR18) hires its former Vice Chairman John Rice as Chairman of the new GE Gas Power unit, President of Power Services Scott Strazik to serve as CEO, GE Power CEO Russell Stokes to be CEO of GE Power Portfolio. $GE PR link.
Thor Industries(PBR337) hires Mark Trinske as VP/Investor Relations. $THO PR link.
M&T Bank(PBR452) hires Christopher E. Kay as EVP & Head of Consumer Banking, Business Banking and Marketing. $MTB PR link.
National Fuel Gas(PBR939) Chief Information Officer Ann M. Wegrzyn to retire on 02/01/19 after 33 years with the company, Martin A. Krebs hired as successor. $NFG PR link.
Willis Towers Watson(PBR338) Chairman James McCann will complete his current term, will remain on the Board, Victor Ganzi to become Chairman on 01/01/19. $WLTW PR link.
YUM!(PBR458) Non-Executive Chairman Robert D. Walter retires, Target(PBR39) Chairman/CEO Brian C. Cornell is successor. $YUM PR link.
The Natl Assn of Home Builders/Wells Fargo US Preliminary November 2018 Housing Market Composite Index is a 60, October 2018was 68, September 2018 67, November 201769. “Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said NAHB Chairman Randy Noel. NAHB PR link.
***Friday, November 16:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 11/16/18:
DJIA ends the week at 25,413.22, -2.22% from last Friday, +1.18% MTD, -3.95% QTD, +2.81% YTD, -5.27% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 7,247.87, -2.15% from last Friday, -0.79% MTD, -9.92% QTD, +4.99% YTD, -10.63% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,736.27, -1.61% from last Friday, +0.90% MTD, -6.10% QTD, +2.34% YTD, -6.64% from record 2,930.75 set 09/20/18.
The Stock Market Bear took some big bites out of the exchanges Monday through Wednesday, then The Stock Market Bull managed a slight comeback on Thursday and Friday. The Stock Market Bear easily prevailed taking the week 3-0 in Week 46.
The Week 46 YTD tally is:
The Stock Market Bull: 19 weeks
The Stock Market Bear: 17 weeks
Mixed Results: 10 weeks
Week 46 News Summary: The expected rebound from the US general election did not happen. Tech stocks got hammered, corporate earnings and guidance was often not reassuring, oil prices dropped after OPEC mixed messages, the UK Brexit plan doesn’t seem satisfactory for anyone, California wildfires have taken several lives and destroyed a lot of property, at the end of the week US/China trade tensions seemed to ease but N Korea is becoming a concern again, President Trump’s relationship with the press got a lot of attention, there are rumors of significant White House staff shakeups, there is a lot of uncertainty about what Congress can achieve with split houses and questions on leadership, especially for the Democrats, Florida electionprocedures and recounts are concerning, the immigrant caravans traveling through Mexico are starting to arrive at the US borders amid a lot of uncertainty on both sides as US military units arrive. On the other hand, economic reportscontinue to show a strong US economy, but there are some question marks about the global economy.
LifePoint Health(PBR378) $65.00/share, $5.6 billion acquisition by Apollo Global Mgmt(PBR765) and affiliates unit RCCH HealthCare Partners is completed. $LPNT PR link.
Brown & Brown(PBR877) completes acquisition of Minneapolis, MN, 700 risk management and employee benefits professionals in 32 locations across 21 states $200 million/year US insurance broker Hays Companies, terms not disclosed. $BRO PR link.
AutoZone(PBR268) promotes Mitch Major to SVP/Supply Chain, Customer Satisfaction. $AZO PR link.
BOK Financial(PBR926) promotes Derek Martin to EVP/Consumer Banking division, effective 11/30/18, succeeds Pat Piper who is retiring after 37 years with the company. $BOKF PR link.
The US Federal Reserve says US Preliminary October 2018 Industrial Production Total Index(2012=100) is at 109.1, September 2018was 109.0, August 2018 108.8, October 2017104.8. USFed PR link.
***Thursday, November 15:
October 2018 Snapshot 15 Summary: The PBR1000 Top 5 by Market Capitalization(Rank, Company, PBR Ranking by Revenues, Stock Symbol, Market Capitalization in billions):
1. Apple(PBR4), $AAPL, $1,030B
2. Microsoft(PBR22), $MSFT, $796B
3. Amazon(PBR8), $AMZN, $748B
4. Alphabet(PBR21), $GOOG, $725B
5. Berkshire Hathaway(PBR3), $BRK.B, $502B
Range: $1,030 billion to $0.03 billion
The PBR1000 Total: $25.611 trillion
Average: $25.611 billion
Median: $7.55 billion
Intel(PBR45) increases share buypack program by $15 billion, had $4.7 billion remaining under its existing repurchase authorization as of 09/29/18. $INTC PR link.
Sears(PBR169 $SHLD) gets bankruptcy judge approval to sell at least 400 of its best-performing stores to avoid liquidation, Chairman Edward Lampert’s hedge fund, ESL Investment, is expected to make a stalking-horse offer.MarketWatch PR link.
PayPal(PBR219) completes $400 million acquisition of global payout platform provider Hyperwallet. $PYPL PR link.
Tesla(PBR250 $TSLA) cuts prices on its residential solar systems by as much as 25% to lift lagging sales, has streamlined its sales and marketing organization. Reuters PR link.
Tenneco(PBR308) to acquire Sweden based premium suspension systems and components for the automotive and motorsport industries developer Öhlins Racing AB for $160 million, to close in 1Q19. $TEN PR link.
ON Semiconductor(PBR474) authorizes new 4 year up to $1.5 billion share repurchase program. $ON PR link.
Post Holdings(PBR494) plans to pursue an initial public offering of a company comprised of its Active Nutrition business, markets and distributes ready-to-drink protein and other beverages, protein powders, nutrition bars and other nutritional supplements under the Premier Protein, Dymatize, PowerBar, Supreme Protein and Joint Juice brands, CEO named, to be completed in 2H19. $POST PR link.
Spectrum Brands(PBR529) to sell its Global Auto Care business to Energizer Holdings(NYSE: ENR) for $1.25 billion, to close 2Q19; amends acquisition agreement with Energizer for sale of its Global Battery and Lighting Business, to address a proposed remedy that Energizer has submitted to the European Commission for review, includes a potential downward adjustment to the purchase price of up to $200 million. $SPB PR link.
SAIC(PBR540) $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) to be voted on by stockholders of both companies on 01/11/19. $SAIC PR link.
Green Plains(PBR634) completes $328 million sale of three of its ethanol plants located in Lakota, IA, Bluffton, IN, and Riga, MI, to Valero Renewable Fuels Co, involves 280 million gallons of nameplate capacity. $GPRE PR link.
Ashland(PBR679) to sell Composites business and butanediol facility in Marl, Germany, to INEOS Enterprises for $1.1 billion. $ASH PR link.
Wabash Natl(PBR903) increases share repurchase program by up to $100 million, balance available is up to $105 billion, expires at end of 02/22. $WNC PR link.
Anadarko(PBR246) EVP/CFO Bob Gwin is now President, Benjamin M. Fink is now EVP/CFO, other leadership changes announced. $APC PR link.
Whiting Petroleum(PBR953) hires Chip Rimer as COO. $WLL PR link.
The US Dept of Labor says US Preliminary October 2018 Import Prices were +0.5%, Export Prices +0.4%, Import Prices Last 12 Months +3.5%, Exports +3.1%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary September 2018 Sales for Manufacturers were at $509.8 billion, Retailers$447.1 billion, Wholesalers $511.2, Total Sales$1,468.0 billion, +0.4% from August 2018, +6.62% from September 2017. USDOC PR link.
The US Dept of Commerce/Census says US Advance October 2018 Retail Sales were at $451.1 billion, Food Services & Drinking Places $60.4 billion, for Total Retail Sales of $511.5 billion, +0.8% from September 2018, +4.6% from October 2017. USDOC PR link.
The NY Federal Reserve Bank says the Empire State November 2018 Manufacturing General Business Conditions Index is at 23.3, “Business activity continued to grow at a solid clip in NY State … firms remained fairly optimistic about the six-month outlook.” October 2018 was 21.1, September 2018 19.0, November 201720.9. NYFed PR link.
The Federal Reserve Bank of Philadelphiasays 3rd District November 2018 Manufacturing General Activity Indicator was +12.9, “The survey’s broad indicators … remained positive but fell from their readings last month … firms remained generally optimistic about future growth.” October 2018 was at +22.2, September 2018 +22.9, November 2017+24.3. PhillyFed PR link.
***Wednesday, November 14:
October 2018 Snapshot 13 Summary: The PBR1000 Top 5 Stock Performers since 12/30/16(22 months) (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 10/31/18 Stock Price, % Increase from 12/30/16):
1. Weight Watchers(PBR974 $WTW), $66.10, +477%
2. Square(PBR841 $SQ), $73.45, +439%
3. RH(PBR802 $RH), $115.71, +277%
4. Systemax(PBR980 $SYX), $32.31, +268%
5. BlueLinx(PBR891 $BXC), $23.55, +215%
Range: +477% to -96%
Number of Companies at 0% or Better:580/993
Average: +14.76%
Median: +6.72%
DJIA: +27.09%
NASDAQ: +35.72%
SPX: +21.12%
Tomorrow: The PBR1000 October 2018 Top 5 Stocks by Market Capitalization.
Walmart(PBR1) partnering with Ford(PBR10) to explore delivery with autonomous vehicle technology, initial pilot program is in Miami-Dade County, FL. $WMT PR link.
Sprint(PBR87) launches buy online with pick up at 7,500 FedEx(PBR42) locations in Walgreens Boots Alliance(PBR19) stores. $S PR link.
Performance Food(PBR159) authorizes up to $250 million share repurchase program, no expiration date. $PFGC PR link.
Kellogg(PBR222) debuts new HI! Happy Insidecereal, supports digestive wellness with prebiotics, probiotics, and fiber, 34.5 oz resealable bags at Costco and Boxed for $12.99 and 6 count cups pack on Amazon for $13.99. $K PR link.
Owens-Illinois(PBR394) increases share repurchase program by $313 million, balance available is now $600 million. $OI PR link.
Markel(PBR449) completes acquisition of $12 billion in managed assets global insurance-linked securities manager Nephila, will continue to operate as a separate business unit, terms not disclosed. $MKL PR link.
Sabre Corp(PBR630) to acquire Miami, FL, based $40 million in revenues in 2018 Farelogixfor $360 million, to close by early 2019. $SABR PR link.
Penn Natl Gaming(PBR691) to acquire downtown Detroit, MI, operations of Greektown Casino-Hotel for around $300 million, will enter into a triple net lease agreement with VICI Properties(NYSE: VICI) with an initial annual rent of approximately $55.6 million and an initial term of 15 years. $PENN PR link.
ResMed(PBR815) completes $750 million acquisition of privately held $122 million in 2018 pro forma revenues US long-term post-acute care software developer, serving more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty company MatrixCare. $RMD PR link.
L Brands(PBR225 $LB) Victoria’s Secret unit CEO Jan Singer has resigned after 2 years with the company. MarketWatch PR link.
Kansas City Southern(PBR777) SVP/Chief Legal Officer Jim Wochner to retire 03/31/19, Adam J. Godderz to be successor as General Counsel and Corporate Secretary. $KSU PR link.
Wabash Natl(PBR903) promotes Kristin Glazner SVP/Chief Human Resources Officer. $WNC PR link.
The US Dept of Labor says US October 2018 Consumer Price Index(All Items) was +0.3%, Food was -0.1%, Energy +2.4%, All Items Less Food & Energy +0.2%, Last 12 Months(All Items, Unadjusted) +2.5%, September 2018was +2.3%, August 2018 +2.7%, October 2017+2.0%. USDOL PR link.
The US Dept of Labor says US Preliminary October 2018 Current Average Earnings Per Hour is at $27.30, Average Hours Worked Per Week at 34.5, for Average Current Weekly Earnings of $941.85, +0.5% from September 2018, +3.4% from October 2017. USDOL PR link.
***Tuesday, November 13:
October 2018 Snapshot 12 Summary: The PBR1000 Top 5 YTD(10 months) Stock Performers (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 10/31/18 Stock Price, % Increase from 12/29/17):
1. Fossil(PBR738 $FOSL), $21.71, +179%
2. BlueLinx(PBR891 $BXC), $23.55, +141%
3. UNISYS(PBR747 $UIS), $18.41, +126%
4. Endo Intl(PBR645 $ENDP), $16.94, +119%
5. Square(PBR841 $SQ), $73.45, +112%
Range: +179% to -90%
Number of Companies at 0% or Better:383/1,000
Average: -3.96%
Median: -5.38%
DJIA: +1.60%
NASDAQ: +5.83%
SPX: +1.43%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/30/18(22 months).
Amazon(PBR8) selects New York City and Arlington, VA, for its 2 new headquarters, will invest $5 billion, will create 25,000+ jobs at each location, average wage over $150,000/year per local/state incentives. Also selects Nashville, TN, for its for a new Center of Excellence for its Operations business, will create 5,000+ jobs, average wage over $150,000/year. $AMZN PR link.
GE(PBR18) to sell 92 million shares of Baker Hughes, a GE company(NYSE: BHGE) Class A Common stock as a secondary offering, valued at around $4 billion, part of accelerated separation plan. $GE PR link.
GE(PBR18) to form a joint venture with Baker Hughes, a GE company (NYSE: BHGE) to provide aeroderivative engine services and product management for use in the oil and gas and industrial spaces. $GE PR link.
Citigroup(PBR32 $C) to move 1,100 workers out of Long Island City tower to free up space for Amazon(PBR8) HQ2 move. MarketWatch PR link.
3M(PBR89) authorizes up to $10 billion share repurchase program, no expiration date, replaces existing program. $MMM PR link.
Johnson Controls(PBR93) to sell its $8 billion in revenues in fiscal year 2018 Power Solutionsbusiness to Brookfield Business Partners(NYSE:BBU) and associates for $13.2 billion cash, to close by 06/30/19. $JCI PR link.
Starbucks(PBR124 $SBUX) cutting 350 corporate jobs, about 5% of the company’s global, non-retail workforce. -MarketWatch PR link.
HollyFrontier(PBR201) to acquire global white oils, petrolatums and waxes supplier Sonneborn US Holdings and Sonneborn Coӧperatief UAfor $655 million, to close in 2019. $HFC PR link.
DR Horton(PBR211) acquires Westport Homesfor $190 million, includes approximately 3,500 lots, 400 homes in inventory and 550 homes in sales order backlog, the majority of which relate to Westport’s Indianapolis and Columbusoperations. $DHI PR link.
Baxter(PBR272) authorizes additional $2 billion for share repurchase program, balance is now around $3.4 billion. $BAX PR link.
O’Reilly Automotive(PBR318) authorizes $1 billion share repurchase program over 3 years. $ORLY PR link.
Pioneer Natural Resources(PBR477) to sell its pressure pumping assets to ProPetro in $400 million cash/stock deal, ProPetro to provide Pioneer with pressure pumping and related services for up to 10 years. $PXD PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 11/19/18, 63.78% of shares have been tendered. $ESND PR link.
Brunswick(PBR535) files Form 10 registration statement with US SEC to spinoff its Fitnessdivision as independent public company with over $1 billion in revenues in 2017 Life Fitness Holdings. $BC PR link.
BGC Partners(PBR668) to complete spinoff of real estate services provider Newmark Group(NASDAQ: NMRK) on 11/30/18. $BGC PR link.
Kimco Realty(PBR989) provides update on its Pentagon Centre projects, includes nearly 700 luxury apartments next to new Amazon(PBR8) Arlington, VA, based headquarters. $KIM PR link.
CEO Interview: GE(PBR19 $GE)Chairman/CEO Larry Culp, former CEO of Danaher(PBR154 $DHR), joined the GE Board in April, and became GE Chairman/CEO in September 2018. GE has a lot of issues. After just a few weeks on the job why does he think he can solve the problems, what are his plans? An interesting 20 minute video interview by CNBCon 11/12/18. CNBC PR link.
Mohawk Industries(PBR303) promotes Paul De Cock to President/Flooring North America segment, succeeds departing Brian Carson. $MHK PR link.
JetBlue(PBR389) promotes Brandon Nelson to General Counsel and Corporate Secretary. $JBLU PR link.
The US Dept of Treasury says US October 2018 Federal Government Receipts were $252.7 billion(October 2017 was $235.3 billion), Outlays $353.2 billion(October 2017 was $298.6 billion), Total October 2018 Deficit was $100.5 billion(October 2017 was $63.2). USTreasury PR link.
CoreLogic says US August 2018 Housing Mortgages 30 or More Days Delinquent were at 4.0%, July 2018 was 4.1%, June 2018 4.3%, August 2017 4.6%, Total Homes in Foreclosure remains at 0.5%. CoreLogic PR link.
***Monday, November 12:
***US Federal Government Holiday in observance of Veterans Day.
US Stock Markets Open. ***
October 2018 Snapshot 11 Summary: The PBR1000 Top 5 Month Stock Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 10/31/18 Stock Price, % Increase from 09/28/18):
1. Fred’s(PBR898 $FRED), $2.74, +34%
2. Esterline Tech(PBR869 $ESL), $117.36, +29%
3. Tesla Motors(PBR250 $TSLA), $337.32, +27%
4. Red Hat(PBR717 $RHT), $171.64, +26%
5. Twitter(PBR801 $TWTR), $34.75, +22%
Range: +34% to -62%
Number of Companies at 0% or Better:158/1,000
Average: -8.00%
Median: -8.33%
DJIA: -5.07%
NASDAQ: -9.20%
SPX: -6.94%
Tomorrow: The PBR1000 Top 5 Stock Performers YTD.
UPS(PBR42 $UPS) Freight new 5 year contract with the Intl Brotherhood of Teamsters is ratified by 77% to 23% by union members, covers around 11,600 workers, averts a national strike. Teamsters PR link.
21st Century Fox(PBR92 $FOX)’s Fox Business Network subsidiary is debuting a new weekly primetime show with The Wall Street Journal‘s editor at large, Gerry Baker, entitled “WSJ at Large with Gerry Baker,” will feature discussions with leaders in business, finance, politics and tech, will air on Fridays at 9:30 pm ET starting 11/30/18. MarketWatch PR link.
Viacom(PBR218)’s MTV unit acquires SnowGlobe Music Festival, the annual three-day event takes place December 29-31 in S Lake Tahoe, CA, has more than 20,000 fans each day with a mix of musical performances, live action sports, and interactive art exhibitions, plans to expand SnowGlobe to additional dates and locations worldwide and to launch other new events as well. $VIA PR link.
Kellogg(PBR222) to consolidate its N America US Morning Foods, Snacks and Frozen Foods businesses into one unit, is exploring the sale of its cookies business (including Keebler, Famous Amos, Mother’s and Murray brands), and fruit snacks business (including Stretch Island brand). $K PR link.
eBay(PBR299) announces partnerships with service providers Handy, Porch and InstallerNet, which will allow shoppers to easily book installation services. $EBAY PR link.
Brown & Brown(PBR877) has acquired most of the assets of Massachusetts based $9.5 million in revenues/year property and casualty insurance products and services to commercial customers in the real estate, habitational, restaurant, and transportation industries provider Rodman Insurance Agency, terms not disclosed. $BRO PR link.
Eastman Kodak(PBR944) to sell its Flexographic Packaging Division to Montagu Private Equity for $390 million, includes $50 million of incentives, to close in 1H19. $KODK PR link.
athenahealth(PBR992) to be acquired by Veritas Capita and Evergreen Coast Capitalfor $135/share, 12% premium from 11/09/18 closing price, $5.7 billion cash, has approval of activist investor Elliott Management, to close 1Q19. $ATHN PR link.
CEO Interview: Ford(PBR10 $F) CEO Jim Hackett is interviewed by Freakonomics, podcast from 11/07/18. Freakonomics PR link.
Coty(PBR305) CEO Camillo Pane resigns for family reasons, hires Pierre Laubies as successor, effective immediately, Peter Harf takes over Chairman role from Bart Becht and Erhard Schoewel appointed Lead Independent Director. $COTY PR link.
Halliburton(PBR142) CFO Chris Weber is leaving, VP/Investor Relations Lance Loeffler named as successor. $HAL PR link.
Tenneco(PBR308) hires Ron Hundzinski as EVP/Finance, effective 01/01/19, expected to become EVP/CFO upon spinoff of the new aftermarket ride performance company in 2019. $TEN PR link.
PolyOne(PBR680) hires Christopher L. Pederson as SVP & President/Specialty Engineered Materials. $POL PR link.
***Friday, November 9:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 11/09/18:
DJIA ends the week at 25,989.30, +2.84% from last Friday, +3.48% MTD, -1.77% QTD, +5.14% YTD, -3.13% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 7,406.90, +0.68% from last Friday, +1.38% MTD, -7.95% QTD, +7.29% YTD, -8.67% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,781.01, +2.13% from last Friday, +2.55% MTD, -4.56% QTD, +4.02% YTD, -5.11% from record 2,930.75 set 09/20/18.
The Stock Market Bull took charge the first 3 days of the week, then The Stock Market Bullcrept in to take the last couple of days. But it was not enough and The Stock Market Bull takes his second consecutive week 3-0 in Week 45.
The Week 45 YTD tally is:
The Stock Market Bull: 19 weeks
The Stock Market Bear: 16 weeks
Mixed Results: 10 weeks
Week 45 News Summary: The US general election was center stage Tuesday. The Democrats took over the majority in the House of Representatives with many races close and not quite the ‘Blue Wave’ some had predicted. The Republicans added to their majority in the Senate. The US economy continued to be strong and the FOMC kept short term federal interest rates at the current 2.00-2.25% level, but the Producer Price Index came in higher than expected. Corporate earnings were mixed. Attorney General Jeff Sessions resigned per President Trump’s request. Sanctions on Irantook effect. More troops are on the Southwest border in anticipation of the arrival of caravans of asylum seekers traveling through Mexico. President Trump signed an executive ordermaking it difficult for illegal immigrants to claim asylum. The killing of 12 people at a bar in Thousand Oaks, CA, has stirred up gun issues controversies again.
Apple(PBR4 $AAPL) to expand its product offerings on Amazon(PBR8 $AMZN) in new deal. CNBC PR link.
Walt Disney(PBR53) to launch new direct-to-consumer streaming service Disney+ in late 2019, projects include a Lucasfilm second Star Wars live-action series and a Marvel Studiosseries based on Loki, the god of mischief. $DIS PR link.
Facebook(PBR69 $FB) to quadruple its EMEA headquarters space to 870,000 sf in Dublin, Ireland, for an additional 5,000 people, to be ready in 2022. Independent.ie PR link.
Honeywell(PBR71) completes around $500 million acquisition of Germany-based $120 million/year, growing at 30% annual rate, warehouse automation business Transnormfrom IK Investment Partners. $HON PR link.
Merck(PBR73) gets US FDA approval for KEYTRUDA, Merck’s anti-PD-1 therapy, for the treatment of patients with hepatocellular carcinoma. $MRK PR link.
Cummins(PBR143)’ Charleston Turbo Planthas produced its 5 millionth turbocharger, has 50 jobs available across all shifts. $CMI PR link.
Sears(PBR169) to close 40 Sears/Kmart storesin 02/19, liquidation sales to start late next week, is in addition to 142 stores to be closed announced 10/15/18. $SHLD PR link.
Stryker Corp(PBR233) completes $27.50/share, total equity value of about $1.4 billion acquisition of nearly $300 million in annual sales complex spine and minimally invasive solutions for surgeons provider K2M Group Holdings(NASDAQ: KTWO). $SYK PR link.
Theravance Biopharma(NASDAQ: TBPH) and Mylan(PBR247) get US FDA approval for the New Drug Application for YUPELRITM (revefenacin) inhalation solution for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). $MYL PR link.
Meredith Corp(PBR836) to sell its FORTUNEmedia brand for $150 million cash to businessman Chatchaval Jiaravanon, to close by end of 2018. $MDP PR link.
Bristow Group(PBR961) to acquire privately held Aurora, OR based $281 million in revenues in 2018 Columbia Helicopters for $560 million, will become a subsidiary, to close by end of 4Q18. $BRS PR link.
Bristow Group(PBR961) CEO Jonathan E. Baliff to retire upon completion of $560 million acquisition of Columbia Helicopters, Vice-Chairman Thomas N. Amonett appointed interim President, new CEO search starts. $BRS PR link.
Marriott Intl(PBR120)‘s Liam Brown, President, Select Brands and Owner and Franchise Services, North America, take on the role of President and Managing Director of Europe, succeeds Amy McPherson who is retiring in early 2019. $MAR PR link.
The US Dept of Labor says US Preliminary October 2018 Total Final Monthly Demand Producer Price Index is at +0.6%, September 2018 was +0.2%, August 2018 -0.1%, October 2017 +0.4%; October 2018 Last 12 Months Total Final Monthly Demand Producer Price Index is at +2.9%, September 2018 was +2.6%, August 2018 +2.8%, October 2017 +2.8%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary September 2018 Durable Goods Wholesale Sales were at $246.7 billion, Non-Durable Goods Sales $264.5 billion, Total Wholesale Sales $511.2 billion, +0.2% from August 2018, +7.8% from September 2017. USDOC PR link.
The U of Michigan Preliminary November 2018 Consumer Sentiment Index is at 98.3, “… Sentiment Index remained higher thus far in 2018 (98.4) than in any prior year since 2000…,” October 2018 was 98.6, September 2018100.1, November 2017 98.5. UMichigan PR link.
Federal judge blocks long-delayed Keystone XLpipeline permit for environmental review. MarketWatch PR link.
***Thursday, November 8:
Alphabet(PBR21)’s Google unit CEO Sundar Pichai sends email letter to employees, to provide more transparency on how they handle concerns, announces action plan with emphasis on sexual harassment issues. $GOOG PR link.
Proctor & Gamble(PBR41) to restructure into six industry-based Sector Business Units(SBU)for the largest geographic markets starting 07/01/19, remaining markets under another SBU. $PG PR link.
American Express(PBR80) launches new Business Gold Card, 4X Membership Rewards® points on the top two categories where their business spends the most each month, 25% airline bonus, built-in Pay Over Time* with interest feature. $AXP PR link.
Johnson Controls(PBR93) authorizes additional $1 billion for its share repurchase program, balance is now $1.9 billion. $JCI PR link.
DXC Technology(PBR114) approves $2 billion incremental share repurchase authorization, balance is now $3.3 billion. $DXC PR link.
PNC Financial(PBR172) receives approval from the Federal Reserve to repurchase up to an additional $900 million in common shares through the end of 2Q19, is in addition to the share repurchase programs of up to $2.0 billion previously approved. $PNC PR link.
Anadarko(PBR246) to sell substantially all of its remaining midstream assets for $4.015 billion to Western Gas Partners, LP (NYSE: WES), with $2.0075 billion cash proceeds, and the balance to be paid in new Western Gas equity, to close 1Q19. $APC PR link.
Tesla(PBR250 $TSLA) former employee Salil Parulekar charged by a federal grand jury of embezzling roughly $9.3 million from Tesla in 2016-2017 according to the US Attorney’s Office for the Northern District of California. USDOJ N CA PR link.
Netflix(PBR251) unveils 17 new Asian original productions from Japan, Taiwan, Thailand, India and South Korea, projects join 100 new and returning originals across eight countries in Asia through 2019. $NFLX PR link.
Arthur J Gallagher(PBR441) acquires Alexandria, VA-based affinity member benefit programs for more than 600 professional and trade associations across the US and Canada provider Meridian One Corporation, terms not disclosed. $AJG PR link.
CommScope(PBR534) to acquire broadband, video and wireless technology provider ARRIS Intl(PBR408 $ARRS) for $31.75/share, around $7.4 billion cash, includes repayment of debt, to close in 1H19. Carlyle Group(PBR613 $CG), a former CommScope owner, is reestablishing a minority ownership position in the company through a $1 billion equity investment, equal to approximately 16% of CommScope’s outstanding shares. $COMM PR link.
Brink’s(PBR669) gets multi-year agreement with Canada’s Canopy Growth Corporation (NYSE:CGC; TSX:WEED) to provide secure logistics and cash management services for Canopy Growth’s domestic and international cannabis operations. $BCO PR link.
Graco(PBR954) to expand its David A. Koch Center facility in Rogers, MN, is the worldwide headquarters for its Contractor Equipment Division, project will add 480,000 sf to the existing 316,000 sf manufacturing, office and product development facility, to break ground later this month, project to be completed by the end of 2019. $GGG PR link.
Adtalem Education(PBR983) authorizes up to $300 million share repurchase program, expires 12/31/21, takes effect upon completion of current program in early 2019. $ATGE PR link.
Owens & Minor(PBR308) elects Robert C. Sledd as Chairman and Interim President/CEO, succeeds P. Cody Phipps, new CEO search starts. $OMI PR link.
W.R. Grace(PBR914) President/COO Hudson La Force elected President/CEO, succeeds Chairman/CEO Fred Festa who is now Non-Executive Chairman. $GRA PR link.
Moody’s(PBR570) appoints David Platt to the new position of Chief Strategy Officer, effective 11/14/18. $MCO PR link.
Tesla(PBR250) appoints independent director since 2014 Robyn Denholm as Chair of the Board, currently CFO and Head of Strategy at Telstra, Australia’s largest telecommunications company, will be leaving in 6 months to be at Tesla full-time. $TSLA PR link.
The US Federal Open Market Committee says the labor market has continued to strengthen and that economic activity has been rising at a strong rate, inflation at around 2% target, Indicators of longer-term inflation expectations are little changed, on balance, maintains the target range for the federal funds rate at 2.00 to 2.25%. FOMC PR link.
***Wednesday, November 7:
The US 2018 General Elections Recap: The US House of Representatives swings to the Democrats, the US Senate retains and expands on its Republican majority.
Amazon(PBR8) launches Amazon Music for Mexico, Unlimited Individual Plan at MXN$99/month, or MXN$990/year for Prime members only, additional plans available. $AMZN PR link.
Citigroup(PBR32 $C)’s Citibank NA to pay $38.7 million fine to the US Securities and Exchange Commission to settle charges of improper handling of “pre-released” American Depositary Receipts(US securities that represent foreign shares of a foreign company).SEC PR link.
Tyson Foods(PBR76 $TSN) CEO Noel White says he is looking to expand Tyson internationally to help stabilize its business and reduce exposure to US agricultural-market swings. MarketWatch PR link.
Starbucks(PBR124) strategic initiatives in Japan include Uber Eats Japan delivery service, digital payments options, to open Starbucks Reserve Roastery in Tokyo on 02/28/19, to open 100 stores in 2019, have 1,700 stores by end of 2021. $SBUX PR link.
AutoNation(PBR131) is first American Automobile Assn(AAA) nationally Approved Auto Repair (AAR) program partner, with over 220 facilities approved under the program. $AN PR link.
Newell Brands(PBR194) to sell its $556 million in revenues in 2017 fishing gear provider Pure Fishing unit to Sycamore Partners for $1.3 billion and its $768 million in 2017 revenues yearbooks, publications, jewelry and consumer goods that serve the K-12 educational, college and professional sports segments provider Jostens unit to Platinum Equity for $1.3 billion, both to close in 4Q18. $NWL PR link.
Axalta(PBR552) opens its 175,000 sf Global Innovation Center, the largest coatings research and development (R&D) center in the world in Philadelphia’s historic Navy Yard. $AXTA PR link.
Flowers Foods(PBR594) to acquire privately held, gluten-free baking company Johnstown, CO, based $70-80 million in revenues anticipated in 2019 Canyon Bakehouse for around $205 million, to close in 4Q18. $FLO PR link.
Monster Beverage(PBR653 $MNST) reveals that beverage giant and partner Coca-Cola(PBR82 $KO) could compete with Monster if it can win an arbitration fight. MarketWatch PR link.
GNC(PBR790) closes deal to get Harbin Pharmaceutical Group(Hayao) $300 million investment, will be funded in three separate tranches: (i) an initial $100 million investment to be made by 11/09/18 (the “Initial Closing”) and will get 2 seats on the GNC Board, (ii) an additional $50 million investment to be made by 12/28/18 and (iii) a final approximately $150 million investment to be made by 02/13/19. $GNC PR link.
Dun & Bradstreet(PBR907) $145.00/share, $6.9 billion cash acquisition by Star Parent Group approved by DNB shareholders, to close by 03/31/19. $DNB PR link.
QEP Resources(PBR928) affiliate to sell Williston Basin Assets for up to $1.725 billion to subsidiary of Vantage Acquisition Operating Co(NASDAQ: VEAC), to close in 1H19. $QEP PR link.
Colony Capital(PBR735) President/CEO Richard Saltzman resigns after mutual agreement with Board, remains non-executive Chairman of subsidiaries both Colony Credit Real Estate Inc. (NYSE: CLNC) and NorthStar Realty Europe (NYSE: NRE), Executive Chairman Thomas J. Barrack, Jr, adds CEO role, which he held when he founded privately held Colony until going public in 2014. $CLNY PR link.
PPL Corp(PBR371)’s Western Power Distribution subsidiary CEO Robert A. Symons passes away due to illness, WPD Operations Director Philip Swift named successor. $PPL PR link.
Worldpay(PBR585) promotes COO/Executive Director Mark Heimbouch to President/COO. $WP PR link.
Wynn Resorts(PBR402) Chairman D. Boone Wayson retiring from the Board, Vice Chairman Philip G. Satre elected successor. $WYNN PR link.
HNI Corp(PBR835) Chairman Stan A. Askren, formerly President/CEO, to retire as planned on 12/31/18, lead director Larry B. Porcellato to become Chairman on 01/01/19. $HNI PR link.
The US Federal Reserve says US Preliminary September 2018 Consumer Debt-Revolvingwas at $1.041 trillion, Non-Revolving $2.909 trillion, Total Consumer Debt $3.950 trillion, +0.3% from August 2018, +3.1% YTD(9 months), +4.8% from September 2017. USFed PR link.
The FannieMae(PBR20) US October 2018 Home Purchase Sentiment Index is at 85.7, September 2018 was 87.7, August 2018 88.0, October 2017 85.2. $FNMA PR link.
***Tuesday, November 6:
US General Midterms Election Day, Vote!
CVS Health(PBR7) in 3Q18 report says its $207/share, $69 billion, stock/cash acquisition of Aetna(PBR48) is meeting all regulatory issues, to close transaction before Thanksgiving. $CVS PR link.
GE(PBR18) to sell its digital engine for energy efficient & productive environments Current unit to American Industrial Partners, a NY-based private equity firm, to close in early 2019, terms not disclosed. $GE PR link.
Walt Disney(PBR53 $DIS) $38/share, $71.3 billion acquisition of certain 21st Century Fox(PBR92) assets approved by the European Commission conditional upon Disney divesting its interest in all factual channels it controls in the European Economic Area through its joint venture with Hearst in A+E Television Networks. European Commission PR link.
AIG(PBR58) completes acquisition of privately held York, PA, 500 associates serving 30,000 insureds full-service broker and insurance services provider Glatfelter Insurance Group, terms not disclosed. $AIG PR link.
Kraft Heinz(PBR106) to sell its Canadiannatural cheese business to Parmalat for approximately $1.23 billion, includes sale of natural cheese brands Cracker Barrel, P’tit Quebec and aMOOza! in the Canadian market, to close in 1H19. $KHC PR link.
Starbucks(PBR124) “Starbucks Delivers” in China delivery service, launched in partnership with Ele.Me, is now available across more than 1,100 stores in 17 Chinese cities, with full-service coverage in Beijing and Shanghai. $SBUX PR link.
Qualcomm(PBR125 $QCOM) dealt a potentially major setback in FTC antitrust case, ruling could threaten chip maker’s business model. MarketWatch PR link.
Bristol-Myers Squibb(PBR139) gets US FDA approval for Empliciti (elotuzumab) injection for intravenous use in combination with pomalidomide and dexamethasone (EPd) for the treatment of adult patients with multiple myeloma. $BMY PR link.
XCEL Energy(PBR241) to acquire Minnesotabased 760-megawatt natural gas power plant Mankato Energy Center from Southern Co(PBR119) Power subsidiary for $650 million, to close mid 2019. $XEL PR link.
Natl Oilwell Varco(PBR377) authorizes up to $500 million share repurchase program. $NOV PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 11/12/18, 63.2% of shares have been tendered. $ESND PR link.
DSW(PBR731) and Authentic Brands complete around $375 million acquisition of several intellectual property rights from the footwear and accessories product design and development company Camuto Group. $DSW PR link.
E*Trade(PBR811) completes around $109 million acquisition of approximately one million retail brokerage accounts with $15.4 billion in total customer assets, including $1.6 billion in customer cash, from Capital One(PBR93). $ETFC PR link.
Valero Energy(PBR29) EVP/General Counsel Jay Browning to retire effective 01/01/19, Jason Fraser to be successor. $VLO PR link.
CenturyLink(PBR160) promotes interim CFO Neel Dev to EVP/CFO. $CTL PR link.
Tapestry(PBR459) CFO Kevin Wills to depart for another opportunity at end of 02/19, successor search starts. $TPR PR link.
The US Dept of Labor says US Preliminary September 2018 Job Openings-Private were at 6,407,000, Government 602,000, Total Job Openings 7,009,000, -3.9% from August 2018, +12.5% from September 2017. USDOL PR link.
The PurdueU/CME Group says the US October 2018 Composite Agriculture Barometer is at 136, “This month’s recovery in the barometer was underpinned by improved perceptions of both current conditions and future expectations …,” September 2018 was 114, August 2018129, October 2017 135. PurdueU/CME Group PR link.
***Monday, November 5:
Amazon(PBR8) providing customers with free shipping with no minimum purchase amount on orders that will arrive in time for the Christmas holiday starting 11/05/18, Amazon Primemembers get free same-day service on over 3 million items. $AMZN PR link.
Verizon(PBR16) announces a new operating structure focused on three customer-facing areas: Consumer, Business and Verizon Media Group / Oath, effective 01/01/19. $VZ PR link.
Lowe’s(PBR40) to wind-down underperforming stores, 20 in the US, 31 in Canada, by 02/01/19. $LOW PR link.
FedEx(PBR42) to increase FedEx Express, FedEx Ground and FedEx Freight, subsidiaries of FedEx Corp., by an average of 4.9% for US domestic, US export and US import services effective 01/17/19. FedEx Freight shipping rates will increase by an average of 5.9%. $FDX PR link.
Broadcom(PBR158) completes $44.50/share, $18.9 billion cash acquisition of CA Technologies(PBR567). $AVGO PR link.
Activision Blizzard(PBR389)’s Hearthstone®, a free-to-play digital collectible card game, hits 100-million-player mark. $ATVI PR link.
Citizens Financial(PBR418) to purchase $6.6 billion of assets under management and approximately $900 million of assets under administration wealth management firm Clarfeld Financial Advisors, terms not disclosed. $CFG PR link.
Assurant(PBR424) authorizes new $600 million share repurchase program, to start upon completion of $176 million remaining from current authorization. $AIZ PR link.
AMC Entertainment(PBR504) now has over 17 million AMC Stubs members, had 2.5 members 2 1/2 years ago, to exceed 500,000 $19.95/mo AMC Stubs A-List members in next week, started program 4 1/2 months ago. $AMC PR link.
Hub Group(PBR583) to acquire 280 employees consolidation services to consumer packaged goods companies selling into the N Americanretail market and truck brokerage services provider CaseStack for $255 million cash, to close by early 12/18. $HUBG PR link.
ResMed(PBR815) to acquire privately held $122 million in 2018 pro forma revenues US long-term post-acute care software developer, serving more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty company MatrixCare for $750 million, to close by end of 2Q19. $RMD PR link.
The Cheesecake Factory(PBR827 $CAKE) will complete its acquisition in 2H19 of the North Italia eatery chain from Phoenix-based Fox Restaurant Concepts. Dallas Business Journal PR link.
SeaWorld(PBR984) 3Q18 report says 9 months attendance up 1.4 million to 18.0 million, +8.7%, over 3Q17. $SEAS PR link.
Greif(PBR627) hires Bala V. Sathyanarayanan as SVP/Chief Human Resources Officer. $GEF PR link.
Tupperware(PBR835) SVP/Controller Nick Poucher appointed to the newly created role of SVP/Business Transformation. $TUP PR link.
The Children’s Place(PBR887) executives Pamela Wallack and Anurup Pruthi have left, President/CEO Jane Elfers to add Product responsibilities to her role, COO Mike Scarpa to also be CFO. $PLCE PR link.
Pier 1 Imports(PBR916) hires Donna Noce Colaco to newly created role of Chief Customer Officer, effective 12/03/18. $PIR PR link.
National Fuel Gas(PBR939)‘ President/National Fuel Gas Distribution Corp Carl M. Carlotti to retire on 02/01/19 after 34+ years with the company, VP/Business Development Donna L. DeCarolis to be successor. $NFG PR link.
Citigroup(PBR32) Chairman Michael O’Neill will retire 01/01/19, John C. Dugan selected to be successor. $C PR link.
The Institute for Supply Management says its US October 2018 Non-Manufacturing Index(>50=economy growing) is at 60.3%, “The non-manufacturing sector has again reflected strong growth despite a slight cooling off after a record month in September. There are continued concerns about capacity, logistics and tariffs. The respondents are positive about current business conditions and the economy.”
September 2018 was 61.6%, August 201858.5%, October 2017 60.1%. $ISM PR link.
IHS Markit says the US October 2018 Composite PMI Index Output was at 54.9, “… upturn was supported by robust expansions in both the manufacturing and service sectors…,” September 2018 was 53.9, August 2018 54.7, October 2017 55.2. IHS Markit PR link.
***Friday, November 2:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 11/02/18:
DJIA ends the week at 25,270.83, +2.36% from last Friday, +0.62% MTD, -4.49% QTD, +2.23% YTD, -5.81% from record 26,743.50 set 09/21/18.
NASDAQ ends the week at 7,356.99, +2.65% from last Friday, +0.70% MTD, -8.57% QTD, +6.57% YTD, -9.28% from record 8,109.69 set 08/29/18.
SPX ends the week at 2,723.06, +2.42% from last Friday, +0.42% MTD, -6.55% QTD, +1.85% YTD, -7.09% from record 2,930.75 set 09/20/18.
The Stock Market Bear took Monday and Friday in Week 44, but The Stock Market Bullhad the run in the pasture Tuesday through Thursday, and ends the week dominating the major US exchanges and, after no outright wins in October, takes the first week in November 3-0 to keep a narrow lead YTD.
The Week 44 YTD tally is:
The Stock Market Bull: 18 weeks
The Stock Market Bear: 16 weeks
Mixed Results: 10 weeks
Week 44 News Summary: The big news for the economy was jobs growth, which exceeded expectations. China/US trade negotiations and Brexit issues concerns lessened a little bit. Corporate earnings were somewhat mixed. The last full week before US general electionscontinued to be contentious, with the shootings at a Pittsburgh synagogue last weekend and the immigrant caravan continuing to make its way through Mexico to the US and President Trump’s response of adding troops to the border creating a lot of political discussion.
Amazon(PBR8) to open California’s 14th Inland Empire fulfillment center, to be located in Beaumont, CA, 4 stories tall, 640,000 sf, will create more than 1,000 full-time jobs. $AMZN PR link.
Kroger(PBR17) partners with Geoffrey’s Toy Box, which previously had an exclusive partnership with Toys “R” Us, for 35 children’s toys, ranging in price from $19.99 to $49.99, features exclusive toys from Animal Zone®, Imaginarium®, Journey Girls®, Edu Science®, You & Me®, and Just Like Home®, to be in 600 Kroger family of stores for the holidays. $KR PR link.
Fannie Mae(PBR20) has net income of $4.0 billion in 3Q18, will pay US Treasury $4.0 billion dividend by 12/31/18, through 3Q18 has paid $171.8 billion in dividends. $FNMA PR link.
WestRock(PBR192) completes $35/share, $4.9 billion, includes $1.36 billion debt, acquisition of Kapstone(PBR672), a N American producer/distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. $WRK PR link.
Tesla(PBR250 $TSLA) founder Elon Musk in interview with Recode says Tesla will be cashflow positive ‘all quarters going forward…’ Recode PR link.
Arthur J Gallagher(PBR441) acquires Auburn, MA-based John R. Sharry, Inc., dba Group Benefits Strategies, serves self-funded and fully insured municipalities and businesses throughout New England, and has developed group benefit plans for clients ranging in size from 100 to up to 10,000 employees. $AJG PR link.
Vistra Energy(PBR481) adds $1.25 billion to share repurchase program, expects to use it over next 12-18 months. $VST PR link.
Buckeye Partners(PBR623) after strategic review to sell its entire equity interest in VTTI B.V. for $975 million cash, to sell a package of non-integrated domestic pipeline and terminal assets for $450 million cash, both to close by end of 2018. $BPL PR link.
CME Group(PBR626) completes $14.10/share share and cash acquisition of UK based OTC provider NEX. $CME PR link.
Alexion Pharmaceuticals(PBR639) completes $400 million upfront plus up to $800 million for milestone achievements acquisition of Syntimmune, a clinical-stage biotechnology company developing antibody therapeutics targeting the neonatal Fc receptor (FcRn). $ALXN PR link.
GE(PBR18) SEC filing provides details on separation agreement with former CEO John Flannery, includes $4.25 million severance pay to be paid in 12 monthly installments, plus stock vesting options for which he is eligible, and other benefits after 32 years with the company. $GE PR link.
Booking(PBR223) hires Matt Swann as Chief Technology Officer. $BKNG PR link.
AES Corp(PBR276) EVP/CFO Tom O’Flynn to step down as CFO, focus on raising third-party capital to systematically and cost effectively help finance AES’ attractive growth opportunities, current Deputy CFO Gustavo Pimenta to become CFO, both effective 01/01/19. http://bit.ly/BKNGhk02$AES PR link.
Rockwell Automation(PBR427) SVP/Global Sales and Marketing John McDermott to retire from company effective 03/31/19, VP John Genovesi to assume the new role of SVP/Enterprise Accounts and Software, President/Europe, Middle East and Africa (EMEA) Thomas Donato will assume role of SVP/Sales and Marketing, both effective 01/01/19. $ROK PR link.
Dana(PBR380) hires Shelley Bridarolli as SVP/Human Resources, effective 11/26/18. $DAN PR link.
The US Dept of Labor says US October 2018 Total Employed was at 156,562,000, +600,000 from September 2018, +2,716,000 from October 2017, October 2018 Unemployed was at 6,075,000, October 2018 Unemployment Rate is 3.7%, September 2018 was 3.7%, August 2018 3.9%, October 2017 4.1%. USDOL PR link.
The US Dept of Commerce says US Preliminary September 2018 Exports for Goods was $141.9 billion, Services $70.7 billion, Total Exports for Goods & Services$212.6 billion, Imports for Goods was $219.1 billion, Services $47.5 billion, Total Imports for Goods & Services $266.6 billion, Total Deficit Goods $77.2 billion, Total Surplus Services
$23.2 billion, Total Deficit for Goods & Services $54.0 billion, Total September 2017 Deficit Goods & Services $44.4 billion, Total Deficit 2018 YTD(9 months) $445.2 billion, Total Deficit 2017 YTD(9 months) $404.2 billion. USDOC PR link.
The US Dept of Commerce/Census says US Preliminary September 2018 Total Manufacturing New Orders for Durable Goods was $262.0 billion, Non-Durable Goods$253.3 billion, Total New Orders $515.3 billion, +0.6% from August 2018, +7.9% from September 2017, Total Orders September 2018 YTD(9 months) $4.492 trillion, +7.6% from September 2017 YTD. USDOC PR link.
***Thursday, November 1:
Amazon(PBR8) launches Amazon Future Engineer, a comprehensive childhood-to-career program to inspire, educate, and train children and young adults from underserved and low-income communities to pursue careers in computer science. $AMZN PR link.
Alphabet(PBR21 $GOOG)’s Google Walkout:Employees Stage Protest Over Handling of Sexual Harassment. NY Times PR link.
Target(PBR39) reveals Black Friday Deals, new “Skip-the-Line” mobile checkout technology, to be open on Thanksgiving Dayfrom 5PM-1AM, open Friday at 7AM. $TGT PR link.
DowDuPont(PBR46) in 3Q18 report says it has authorized a $3 billion share buyback program, expects to complete by the first intended spin. $DWDP PR link.
MetLife(PBR47) authorizes new $2 billion share repurchase program, will have $2.5 billion available with current authorization. $MET PR link.
Icahn Enterprises(PBR128 $IEP) and affiliates sue Dell Technologies, says company has “refused to provide much basic information” related to its plans to go public again via a complex plan. MarketWatch PR link.
Whirlpool(PBR138) to become official kitchen and laundry appliance of Walt Disney World® Resort and Disneyland® Resort. $WHR PR link.
Micron Technology(PBR145) responds positively to news of the US Dept of Justiceindictments relating to theft of Micron trade secrets by former employees. $MU PR link.
Kohl’s(PBR149) to offer $15 Kohl’s Cash for every $50 spent during certain times of the holidays, to open at 5PM on Thanksgiving Day. $KSS PR link.
Sears(PBR169) signs several licensing agreements to broaden the assortment and reach of its Kenmore and DieHard brands at US retailers. $SHLD PR link.
JCPenney(PBR229) customers can shop select Black Friday deals at JCPenney.com beginning 11/18/18, stores to open at 2PM on Thanksgiving Day, coupons for early shoppers. $JCP PR link.
Tesla(PBR250)‘s Elon Musk tweets Summonoption to have your Tesla drive to your location, to be available in 6 weeks, software upgrade. $TSLA PR link.
Tesla(PBR250 $TSLA) investor group calls for board overhaul, more oversight of Elon Musk.MarketWatch PR link.
Constellation Brands(PBR334) completes $4 billion investment in cannibis focused Canopy Growth Corp(TSX: WEED, NYSE: CGC), has 37% common shares stake and will have 2 members on the Board. $STZ PR link.
AMC Networks(PBR726) completes $6.25/share, $274 million cash acquisition of digital channel company RLJ Entertainment(NASDAQ: RLJE), to become an independent subsidiary, has 800,000 subscribers from its British/international oriented Acorn TVand Urban Movie Channel(UMC) with emphasis on African American and urban audiences. $AMCX PR link.
Meredith Corp(PBR836) completes $190 million cash sale of TIME media brand reaching 175 million consumers monthly to Salesforce(PBR275) Chairman/Co-CEO/Founder Marc Benioff and wife Lynne. $MDP PR link.
Newfield Exploration(PBR904) to be acquired by N American energy producer Encana(TSX, NYSE: ECA) in all stock deal valued at $5.5 billion, includes $2.2 billion debt, to close 1Q19. $NFX PR link.
The New York Times(PBR923) ends 3Q18 with 3.095 million total digital subscriptions, +24.4% from 3Q17. $NYT PR link.
McKesson(PBR5) Chairman/CEO John H. Hammergren to retire, effective 03/31/19, President/COO Brian Tyler to become President/CEO on 04/01/18, Edward Mueller to become independent Chairman. $MCK PR link.
Reliance Steel & Aluminum(PBR297)President/CEO Gregg J. Mollins to retire at end of 2018, EVP/COO James D. Hoffman named successor. $RS PR link.
Caesars Entertainment(PBR518)President/CEO Mark Frissora to leave company on 02/08/19. $CZR PR link.
Worthington Industries(PBR635) promotes Joseph Hayek to VP/CFO, President/CFO Andy Rose remains President. $WOR PR link.
Triumph Group(PBR687) hires Frank Dubey as EVP/Integrated Systems, effective 11/26/18, succeeds retiring Tom Holzthum. $TGI PR link.
DowDuPont(PBR46) announces Boards of Directors of the three future independent companies: Dow, DuPont, and Corteva. $DWDP PR link.
The US Dept of Labor says US Preliminary 3Q18 Business Sector Labor Output/Hourwas +1.9%, 2Q18 was +3.6%, 1Q18 +0.6%, 3Q17 +2.8%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary September 2018 Residential Construction Spending Annual Rate is at $562.3 billion, Non-Residential Construction Spending Annual Rate $767.1 billion, for Total Construction Spending Annual Rate of $1.329 trillion, +0.1% from August 2018, +7.2% from September 2017. USDOC PR link.
The Institute for Supply Management says its US October 2018 Manufacturing PMI Index(>50%=economy growing) is at 57.7%, September 2018 was 59.8%, August 201861.3%, October 2017 58.5%. ISM PR link.
IHS Markit says US October 2018 Manufacturing PMI Index was at 55.7, “…signalled a further pick up in growth momentum and a strong improvement in the health of the manufacturing sector…,” September 2018 was at 55.6, August 201854.7, October 2017 54.6. IHS Markit PR link.
Automotive News says US October 2018 New Light Vehicle Sales were at 1,345,299 units, -5.4% from September 2018, +0.6% from October 2017; Average Transaction Price(JD Power) was $32,947, +3.0% from September 2018, +1.5% from October 2017. Automotive News PR link.
FTI Consulting(PBR894) projects 2018 holiday retail sales to grow by 5.8% over 2017, 60% store driven, 40% online. $FCN PR link.
Adobe Systems(PBR377) forecasts US 2018 Holiday On-Line Sales to be $124.1 billion, a 14.8% increase from 2017, provides information on best shopping days and items. $ADBE PR link.
***Wednesday, October 31:
The PBRMarketTools US Stock Exchanges Recap for the Month of October Ending 10/31/18:
DJIA ends October at 25,115.76, +1.73% from last Friday, -5.07% MTD/QTD, +1.60% YTD, -6.38% from record 26,743.50 set 09/21/18.
NASDAQ ends October at 7,305.90, +1.94% from last Friday, -9.20% MTD/QTD, +5.83% YTD, -9.91% from record 8,109.69 set 08/29/18.
SPX ends October at 2,711.74, +2.00% from last Friday, -6.94 MTD/QTD, -+1.43% YTD, -7.47% from record 2,930.75 set 09/20/18.
October US Stock Exchanges Summary:‘Volatile’ is the word for October as stock exchanges had nearly half their days swing up or down by at least 1%, and mostly down. In the end The Stock Market Bear had a large margin 3-0 victoryfor the month.
The Month 10 YTD tally is:
The Stock Market Bull: 5 months
The Stock Market Bear: 3 months
Mixed Results: 2 months
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