The PBR1000 October 2018 Breaking News Items
The US Capital Building will be the same, but what will be the mix of the people who work inside be like in the new year?
By Larry C. Paxton
October 2018 News Summary: Except for housing, the US economy continued to be robust and appears it will continue to be that way well into 2019. The US, Mexico, and Canada came together for a trade agreement to replace NAFTA, but a US/China deal made no progress, tariffs are being imposed and more threatened. Brexit, the Italian budget, new talks to be planned with N Korea, and some other international issues might have had an effect as well. The divisive and contentious US elections, compounded by the bizarre episode of confirming Brett Kavanaugh to the Supreme Court weighed in. Hurricane Michael caused extensive damage throughout the Southeast US. Corporate earnings were mixed, and suddenly bond yields took an upward arc. October was a busy month for news, and sets the stage for the US elections to be held November 6th, remember to vote!
Here are The PBR1000 corporate, stock market, and economic related breaking news items of interest with hotlinks to the sources for October 2018, starting with the last active business day:
***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
General Motors(PBR12 $GM) has offered voluntary buyout packages to about 18,000 salaried workers in N America in an effort to cut costs amid mounting pressures on the global auto business. MarketWatch PR link.
Sprint(PBR87) FY 2Q18 report shows total end of period connections on 09/30/18 at 54,547,000, is +520,000 from 09/30/17. $S PR link.
Estee Lauder(PBR216) authorizes additional 40 million shares repurchase program, increases the total authorization to 256 million shares, of which approximately 212 million have been repurchased to date. $EL PR link.
MGM Resorts(PBR270) becomes multi-year official gaming partner of the New York Jets, includes fans access to a mobile play-along predictive game “I Called It presented by Play MGM.” $MGM PR link.
Pilgrim’s Pride(PBR271) authorizes $200 million share repurchase program, expires in 12 months. $PPC PR link.
Adobe Systems(PBR377) completes $4.75 billion acquisition of 5,000 customers cloud platform for B2B marketing engagement provider Marketo. $ADBE PR link.
United Rentals(PBR408) completes $2.1 billion cash acquisition of 114 locations in 25 US states with 1,700 employees, $786 million revenue for 12 months ending 08/31/18 BlueLine Rentals. $URI PR link.
Fiserv(PBR469) completes $690 million acquisition of the debit card processing, ATM Managed Services and MoneyPass®surcharge free network of Elan Financial Services, a unit of US Bancorp(PBR117), which does around $170 million/year in revenues. $FISV PR link.
Western Union(PBR475) to launch a new payment option in select countries that allows Amazon(PBR8) international shoppers to pay in person, in local currency where available, for their online purchases. $WU PR link.
Rush Enterprises(PBR526) authorizes new $150 million share repurchase program, replaces current program which had around $13 million remaining. $RUSHB PR link.
Quad/Graphics(PBR577) to acquire print and digital media solutions provider LSC Communications(PBR631) in all stock transaction valued at $1.4 billion, to close mid 2019. $QUAD PR link.
Valmont(PBR745) authorizes $250 million share repurchase program, to go into effect upon completion of current program which has $45 million left. $VMI PR link.
Barnes Group(PBR961) completes $430 million acquisition of privately held Italy based robotic grippers, advanced end-of-arm tooling systems, sensors and other automation components designer and developer Gimatic Srl. $B PR link.
Southern Co(PBR119) PowerSecure Holdingsand its subsidiary, PowerSecure CEO Sidney Hinton retires, successor is SO Chairman/President/CEO Mark Lantrip, additional leadership named. $SO PR link.
Black Hills(PBR921) Chairman/CEO David Emery to retire as CEO on 12/31/18, be Executive Chairman until 05/01/20, President/COO Linden R. (“Linn”) Evans to be CEO successor on 01/01/19. $BKH PR link.
Marriott Intl(PBR120) President/Managing Director of Europe Amy McPherson to retire by 03/31/19. $MAR PR link.
XPO Logistics(PBR182) hires Matthew Fassler as Chief Strategy Officer, effective 11/26/18, succeeds departing Scott Malat. $XPO PR link.
Brunswick(PBR535) hires Jason Worthy as President/Fitness, succeeds departed Jaime Irick, Fitness division on track to be a spin-off. $BC PR link.
Cincinnati Bell(PBR979) Chairman Phillip R. Cox to step down prior to 2019 shareholders annual meeting, Lynn A. Wentworth elected to be successor. $CBB PR link.
The US Dept of Treasury says the US Debt Held By Public on 10/30/18 was at $15.847 trillion, Intragovernmental Holdings $5.853 trillion, Total National Debt $21.700 trillion, +0.9% from 09/28/18, +5.9% YTD, +6.2% from 10/31/17. USTreasury PR link.
The US Dept of Treasury says US 10 Year Treasury Note Yield on 10/31/18 was 3.15%, 09/28/18 was 3.05%, 08/31/18 2.86%, 10/31/172.38%. USTreasury PR link.
The US Dept of Labor says US 3Q18 Employment Cost Index for All Civilian Workers(12/2005=100) is at 134.3, 2Q18 was 133.3, 1Q18 132.5, 3Q17 130.6. USDOL PR link.
The US Energy Information Administrationsays the US Crude Oil Stocks on 10/26/18were at 426.0 million barrels of oil, +7.6% from 09/21/18, -6.8% from 10/20/17. USEIA PR link.
The Federal Reserve Bank of Chicago says the 7th District Midwest Preliminary August 2018 Economic Index is at +0.37, July 2018was also +0.37, the August 2018 Relative Economic Index is at -0.06, July 2018 was +0.35. ChiFed PR link.
ADP(PBR217) says US October 2018 Change in Non-Farm Private Sector Employment was +227,000, +29,000 from Small Businesses(1-49 employees), +96,000 from Mid-Sized Businesses(50-499 employees), +102,000 from Large Businesses(500 or more employees). “Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions.” $ADP PR link.
The American Automobile Assn says the US Average Price of Regular Gas Per Gallon on 10/31/18 was at $2.801, -2.6% from 09/28/18, +13.5% from 10/31/17. AAA PR link.
The Exchange Rate on 10/31/18 for $1 US for 1 Euro is $1.1345, -2.2% from 09/28/18, -2.6% from 10/31/17.
***Tuesday, October 30:
Walmart(PBR1) to introduce “Check Out With Me” service starting 11/01/18, will position associates in the busiest areas of its stores so customers can bypass regular checkout lines and pay for everything right in the department they are shopping. $WMT PR link.
Apple(PBR4 $AAPL) introduces new iPad Pro(starts at $799), iPad Pro PR link., all-new MacBook Air(starts at $1,199), MacBook Air PR link., and new Mac mini(starts at $799), Mac mini PR link.
GE(PBR18) releases 3Q18 report, will reduce quarterly dividend from $0.12/share to $0.01/share to retain around $3.9 billion, to reorganize Power unit into two units, a Gas unit, and a unit that includes Steam, Grid Solutions, Nuclear, and Power Conversion. $GE PR link.
Alphabet(PBR21)’s Waymo unit gets California Dept of Motor Vehicles‘ first permit in the state to begin fully driverless testing on public roads, includes day and night testing on city streets, rural roads and highways with posted speed limits of up to 65 mph, and in fog and light rain, initially in the Mountain View area. $GOOG PR link.
Facebook(PBR69) in 3Q18 report says 3Q advertising revenues grew by 33% year over year, 2.27 billion monthly active users, +10% from 3Q17. $FB PR link.
T-Mobile(PBR70) reports it had 77.2 million customers at end of 3Q18, had 75.6 million at end of 2Q18, 70.7 million at end of 3Q17. $TMUS PR link.
Merck(PBR73) gets US FDA approval for KEYTRUDA, Merck’s anti-PD-1 therapy, in combination with carboplatin and either paclitaxel or nab-paclitaxel, for the first-line treatment of patients with metastatic squamous non-small cell lung cancer (NSCLC). $MRK PR link.
Mondelez(PBR110) to launch in 11/18 an innovation hub called SnackFutures to capitalize on changing consumer trends and emerging growth opportunities in snacking around the world. $MDLZ PR link.
US Foods(PBR115) to build a 355,000 sf distribution center in McClellan, CA, to open by end of 2020, $71.6 million investment, will service independent restaurant operators across N California. $USFD PR link.
Whirlpool(PBR138) to build new 798,000 sf Factory Distribution Center next to its manufacturing facilities in Tulsa, OK, which will employ an additional 150 people, $55 million investment, to open by 12/19. $WHR PR link.
WestRock(PBR192) gets US Dept of Justice approval for $35/share, $4.9 billion, includes $1.36 billion debt, acquisition of Kapstone(PBR666), a N Americanproducer/distributor of containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft, last approval required, to close 11/02/18. $WRK PR link.
Chesapeake Energy(PBR302) to acquire WildHorse Resource Development Corporation (NYSE:WRD), an oil and gas company with operations in the Eagle Ford Shale and Austin Chalk formations in SE Texas, for around $3.977 billion cash and stock, to close 1H19. $CHK PR link.
Campbell Soup(PBR328) says hedge fund investor Third Point proposal is an attempt to seize control of the Board, their plan is a cut and paste of CPB’s plan, encourages vote for current Board at annual meeting. $CPB PR link.
YUM China(PBR385) increases share repurchase program by $850 million, balance is now $1.4 billion. $YUMC PR link.
Caesars Entertainment(PBR518) is the first gaming-entertainment company to sign deal with both an NBA and NHL team, the Philadelphia 76ers and New Jersey Devils, will open 5,000 sf premium dining facility in Prudential Center, through multi-year partnership with Harris Blitzer Sports & Entertainment. $CZR PR link.
McDermott Intl(PBR702) says storage tank business and its US pipe fabrication business are not core to the company, seeking buyers, combined revenues of $1.5 billion in 2017, has 5,350 employees. $MDR PR link.
Twitter(PBR794) in 3Q18 report says it had a 326 million monthly active users, 67 million users were in the US, advertising revenues up 29% year over year. $TWTR PR link.
Modine Manufacturing(PBR856) authorizes up to $50 million share repurchase program over next two years. $MOD PR link.
NuStar(PBR893) to sell its European terminals and related assets to Inter Pipeline for $270 million, to close in 4Q18. $NS PR link.
Take-Two Interactive(PBR898)’s Red Dead Redemption 2 has single-biggest opening weekend(Friday-Sunday) in the history of entertainment with over $725 million in worldwide retail sell-through during its first three days, and is second-highest grossing entertainment launch of all time next to Rockstar Games’ previously released title, Grand Theft Auto V, which had over $1 billion in retail sell-through in three days(started on a Tuesday). $TTWO PR link.
Schneider Natl(PBR550) President/CEO Chris Lofgren to retire after annual meeting in 04/19, EVP/COO Mark Rourke named successor. $SNDR PR link.
The US Dept of Commerce/Census says US 3Q18 Total Housing Units were at 138.6 million, Occupied were 121.4 million, Ownerswere in 78.1 million, Renters in 43.3 million, Vacant 17.2 million, Home Ownership Rate at 64.4%, 2Q18 was 64.3%, 3Q17 63.9%. USDOC PR link.
The Conference Board says US Preliminary October Consumer Confidence Index(1985=100) is at 137.9, “Consumers’ assessment of present-day conditions remains quite positive, primarily due to strong employment growth…,” September 2018 was at 135.3. TCB PR link.
S&P/CoreLogic/Case-Shiller says US August 2018 National Home Price Index(01/2000=100)is at 205.81, July 2018 was 205.35, June 2018204.42, August 2017 194.59, August 2016183.79. Case-Shiller PR link.
***Monday, October 29:
Walmart(PBR1 $WMT)’s Jet.com e-commerce site to offer Blue Apron(NYSE: APRN) meal kits in greater NYC area. Blue Apron PR link.
IBM(PBR34) to acquire global open source cloud software provider Red Hat(PBR717) for $190.00/share, $34 billion cash, to close 2H19. $IBM PR link.
Pfizer(PBR55) enters into a non-exclusive clinical development agreement with Novartis (NYSE: NVS) to investigate one or more combination therapies for the treatment of non-alcoholic steatohepatitis (NASH) liver diseases. $PFE PR link.
Northrop Grumman(PBR111) to do $1 billion accelerated share repurchase program with Goldman Sachs(PBR88), 80% by 10/31/18, balance at start of 2019. $NOC PR link.
Eli Lilly(PBR121) and Dicerna Pharmaceuticals (NASDAQ: DRNA) doing a global licensing and research collaboration focused on the discovery, development and commercialization of potential new medicines in the areas of cardio-metabolic disease, neurodegeneration and pain, will utilize Dicerna’s proprietary GalXC™ RNAi technology platform, Dicerna to receive $100 million cash up front plus $100 million investment plus up to $350 million for achieving certain milestones. $LLY PR link.
Booking(PBR223) invests $200 million and enters strategic partnership with leading online-to-offline mobile (O2O) mobile platform in 235 cities in 8 Southeast Asia countries with 8 million micro-entrepreneurs company Grab. $BKNG PR link.
VF Corp(PBR249) completes sale of its Reef®footwear brand to The Rockport Group, terms not disclosed. $VFC PR link.
MGM Resorts(PBR270) is National Hockey League‘s first sports betting partner in multi-year strategic relationship. $MGM PR link.
Campbell Soup(PBR328) launches snack or pick-me-up Well Yes!® Sipping Soups, come in five flavors in convenient grab-and-go packaging, $1.99 suggested retail price. $CPB PR link.
LifePoint Health(PBR378) shareholders approve $65.00/share, $5.6 billion acquisition by Apollo Global Mgmt(PBR765) and affiliates unit RCCH HealthCare Partners by end of 2018. $LPNT PR link.
BGC Partners(PBR668) to acquire UK based $100 million in revenues/2018 independent Lloyd’s of London insurance broker Ed Broking Group Limited, terms not disclosed. $BGC PR link.
EnerSys(PBR776) to acquire for $750 million certain assets of select entities belonging to Bellingham, WA, based global commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers provider Alpha Technologies, did $591 million for year ending 06/30/18. $ENS PR link.
SunPower(PBR878) is supplying 349 megawatts of SunPower high efficiency solar panels for the Limondale solar power plant, Australia‘s largest solar project to date, to be fully operational mid 2020. $SPWR PR link.
Hain Celestial(PBR796) hires Mark L. Schiller as President/CEO, effective 11/05/18, succeeds Chairman/President/CEO/Founder Irwin D Simon who will become Non-Executive Chairman. $HAIN PR link.
JCPenney(PBR229) hires Michael Fung as Interim CFO, succeeds Jerry Murray who will resume his responsibilities as SVP/Finance. $JCP PR link.
Tesla(PBR250) founder Elon Musk tweets that he has given up all his titles, is now ‘Nothing of Tesla,’ later tweet indicates he has retained President title. $TSLA PR link.
The US Dept of Commerce/BEA says US Preliminary September 2018 Total Personal Income Annual Rate is at $17.726 trillion, +0.2% from August 2018, +7.2% from September 2017, Personal Savings at $975.5 billion for a 6.2% Savings Rate, Effective Tax Rate at 11.7%. USDOC PR link.
FreddieMac(PBR38) October 2018 Forecastsays it expects US Gross Domestic Product annual rate to be 3.0% in 2018, 2.4% in 2019, 1.8% in 2020 as the effects of expansionary fiscal policy fade, forecasts average 2018 30 year fixed mortgage rate to be 4.5%, 20195.1%, 2020 5.6%, home prices to average+5.4% in 2018, +4.6% in 2019, 2.9% in 2020. $FMCC PR link.
On Sunday, 10/28/18, the dominate major league baseball team throughout the season Boston Red Sox wins 5-1 against the Los Angeles Dodgers to take the World Series in the 5th game. MassLive PR link.
***Friday, October 26:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 10/26/18:
DJIA ends week at 24,688.31, -2.97% from last Friday, -6.69% MTD/QTD, -0.13% YTD, -7.98% from record 26,743.50 set 09/21/18.
NASDAQ ends week at 7,167.21, -3.78% from last Friday, -10.93% MTD/QTD, +3.82% YTD, -11.62% from record 8,109.69 set 08/29/18.
SPX ends week at 2,658.69, -3.94% from last Friday, -8.76 MTD/QTD, -0.56% YTD, -9.28% from record 2,930.75 set 09/20/18.
Weekly US Stock Exchanges Summary: It was a big week for The Stock Market Bear as his big bear hugs squeezed out gains year-to-date for the DJIA and SPX. The Stock Market Bullmade a brief appearance on Thursday, but made a big retreat on Friday. It was The Stock Market Bear all the way with a 3-0 victory, the 3rd week this month.
The Week 43 YTD tally is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 16 weeks
Mixed Results: 10 weeks
Weekly News Summary: Good economic news(3Q18 GDP 3.5%, low unemployment)and corporate earnings generally exceeding predictions were offset by a technology sectorrout, uncertainties in global and US politics and trade policies. and perhaps the need for a much overdue correction after a prolonged bull market of many years.
Facebook(PBR69) removes 82 Pages, Groups and accounts for coordinated inauthentic behavior that originated in Iran and targeted people in the US and UK. $FB PR link.
Conagra Brands(PBR346) completes $68/share, $10.9 billion cash/stock, includes net debt, acquisition of Pinnacle Foods(PBR694). $CAG PR link.
Greenbrier(PBR840) and Saudi Arabia’s Saudi Railway Company form $270 million joint venture for railway projects and to supply railcars for profitable growth of the Saudi freight rail market. $GBX PR link.
AGCO(PBR335) SVP/Global Crop Cycle and Fuse Connected Services Eric Hansotia becomes COO, a newly created position, on 01/01/19. $AGCO PR link.
The US Dept of Commerce says US 3Q18 1st Estimate Gross Domestic Product was at 3.5%, 2Q18 was 4.2%, 1Q18 2.2%, 3Q17 2.8%, 3Q18 Total Annual GDP 1st Estimate is $20.659 trillion, +1.2% from 2Q18, +5.5% from 3Q17. USDOC PR link.
The U of Michigan US Final October 2018 Consumer Sentiment Index is at 98.6, “…has been higher thus far in 2018 (98.5) than in any prior year since 2000…,” September 2018 was 100.1, August 2018 96.2, October 2017 100.7. UMichigan PR link.
***Thursday, October 25:
Ford(PBR10) issuing a recall for approximately 1.5 million select 2012-18 Ford Focus vehicles equipped with 2.0-liter GDI and 2.0-liter GTDI engines for a malfunctioning canister purge valve, possible stall & restart issues, not aware of any accidents, injuries or fires as a result of this condition. $F PR link.
AIG(PBR58) Europe unit gets UK approval to split into two companies, one for the UK, another for Europe, in preparation for Brexit. $AIG PR link.
Merck(PBR73) authorizes additional $10 billion share repurchase program, has entered into a $5 billion accelerated share repurchase program under its expanded authorization. $MRK PR link.
21st Century Fox(PBR92 $FOX) Fox News unit will debut its new on-demand subscription-based service Fox Nation on 11/27/18, with Sean Hannity, Tucker Carlson, Laura Ingraham and Brit Hume to contribute programming, $5.99/mo or $64.00 /yr. MarketWatch PR link.
Thermo-Fisher Scientific(PBR138) completes $477 million cash acquistion of Becton Dickenson(PBR241)’s Advanced Bioprocessing business, does $100 million annually. $TMO PR link.
Stanley Black & Decker(PBR222) announces The Home Depot(PBR23) will be exclusive home improvement retailer for its STANLEY hand tools and storage product portfolio, and across the STANLEY FATMAX tape measure brand, both in store and online, beginning in 2019. $SWK PR link.
LKQ(PBR295) authorizes up to $500 million share repurchase program through 10/25/21. $LKQ PR link.
Mohawk Industries(PBR305) authorizes up to $500 million share repurchase program. $MHK PR link.
Campbell Soup(PBR328) Chairman Les Vinney issues letter to shareholders about upcoming annual meeting, says recent investor hedge fund Third Point nominees for board are not qualified, reiterates strategic plan of 08/30/18, including being open to selling company. $CPB PR link.
Campbell Soup(PBR328 $CPB) gets sued in New Jersey Superior Court by hedge fund investor Third Point over ‘misinformation’ in proxy fight. MarketWatch PR link.
Green Plains(PBR634) enters into a stock purchase agreement with Kerry Group to sell the Fleischmann’s Vinegar Company for $350 million cash. $GPRE PR link.
Brunswick(PBR535) Chairman/CEO Mark Schwabero to retire by 12/31/18, will be succeeded by President/Brunswick Marine Consumer Solutions and Chief Technology Officer David Foulkes, Manny Fernandez, lead independent director, will become non-executive chairman, upon Schwabero’s retirement. $BC PR link.
PriceSmart(PBR709) President/CEO Jose Luis Laparte resigns, terms being finalized, Founder/Chairman Robert Price made Executive Chairman, board member Sherry S. Bahrambeygui to serve as Interim CEO, effective immediately. $PSMT PR link.
Spectrum Brands(PBR529) promotes Randal D. Lewis to the newly created position of SVP/COO. $SPB PR link.
BGC Partners(PBR668) CFO Steven R. McMurray to resign, effective 12/15/18, EVP/COO Sean A. Windeatt to add Interim CFO to his responsibilities until new CFO on board. $BGC PR link.
TripAdvisor(PBR942) hires Lindsay Nelson as President/Core Experience (CoreX) business unit, effective 10/30/18. $TRIP PR link.
The US Dept of Labor says the US 4 Week Moving Average Initial Unemployment Insurance Claims on 10/20/18 was at 211,750, +2.7% from 09/22/18, -11.7% from 10/21/17, Insured Unemployment Rate on 10/13/18 was 1.1%, 09/15/18 was 1.2%, 10/14/17 1.4%. USDOL PR link.
FreddieMac(PBR38) says US Average 30 Year Fixed Mortgage Rate on 10/25/18 was at 4.86% with 0.5 points/fees, “…expect rates to continue to rise, which will put downward pressure on homebuying activity…,” 09/27/18 was 4.72%, 08/30/18 4.52%, 10/26/17 3.94%. $FMCC PR link.
***Wednesday, October 24:
ExxonMobil(PBR2 $XOM) lawsuit filed against it by the New York Attorney General alleging that the company misled investors regarding the risk that climate change regulations posed to its business, says former Chairman/CEO Rex Tillerson knew of misrepresentations for years.NY Attorney General PR link.
Kraft Heinz(PBR106) to sell $150 million in revenues/year Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Cadila for approximately $625 million on a debt free and cash free basis, to close in 1Q19. $KHC PR link.
Tesla(PBR250) reports first profit, $312 million net income on $6.824 billion total revenues for 3Q18, Model 3 was the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume, averaged 4,300 Model 3s/wk production. $TSLA PR link.
Ameren(PBR439) Missouri subsidiary gets certificate of convenience and necessity to acquire, after construction, a 400-megawatt facility to be located in Schuyler and Adair counties in northeast Missouri, will be largest wind facility in the state. $AEE PR link.
Wells Fargo(PBR27) says Chief Administrative Officer Hope Hardison and Chief Auditor David Julian have begun leaves of absence, will no longer be members of the company’s Operating Committee, leaves relate to previously disclosed ongoing reviews by regulatory agencies in connection with historical retail banking sales practices, makes several key leadership appointments. $WFC PR link.
The US Federal Reserve Beige Book for data from 09/01/18 through 10/15/18 says economic activity expanded across the US, with the majority of Federal Reserve Districts reporting modest to moderate growth. New York and St. Louis indicated slight growth, overall, while Dallas reported robust growth driven by strong manufacturing, retail, and nonfinancial services activity. USFed PR link.
The US Dept of Commerce/HUD says US Preliminary September 2018 New Family Homes Sold Annual Rate was at 553,000, -5.5% from August 2018, -13.2% from September 2017; the September 2018 Median Price was $377,200, -1.9% from August 2018, -0.6% from September 2017; the September 2018 New Homes Available was at 327,000, +2.8% from August 2018, +16.8% from September 2017; September 2018 Months Supply was at 7.1, August 2018 was 6.5, September 2017 5.3. USDOC PR link.
The ADP(PBR217) 3Q18 US Workforce Vitality Report says Wage Growth was at 3.5%, +0.7% from 3Q17, Wage Level at $27.81/hr, +$0.95 from 3Q17, Employment Growth at +1.7%, -0.3% from 3Q17, Turnover Rate at 65.9, +6.3% from 3Q17. $ADP PR link.
The US Federal Drug Administration approves Xofluza (baloxavir marboxil) for the treatment of acute uncomplicated influenza (flu) in patients 12 years of age and older who have been symptomatic for no more than 48 hours, first new antiviral flu treatment with a novel mechanism of action approved by the FDA in nearly 20 years, not a substitute for annual flu vaccinations, approval granted to Shionogi & Co., Ltd under Priority Review program. USFDA PR link.
***Tuesday, October 23:
Walmart(PBR1) to add millions more items to its Walmart.com shopping that will include free 2 day shipping on orders over $35 with no membership fees, returns online or at most stores, starts in 11/18. $WMT PR link.
Amazon(PBR8) Business launches new Business Prime benefits for businesses of all sizes in the US, Germany and Japan, in US includes 5% Back or 90-Day terms on eligible purchases with the new Amazon Business American Express Card. $AMZN PR link.
Verizon(PBR16) ends 3Q18 with 116,871,000 retail prepaid and post paid connections, +1.4% from 3Q17. $VZ PR link.
Kroger(PBR17) to hire 10,000+ seasonal associates coast to coast. $KR PR link.
Johnson & Johnson(PBR36) to acquire Ci:z Holdings Co(TYO: 4924), a Japanesemarketing, development and distribution company of a broad range of dermocosmetic, cosmetic and skincare products for around $51.75/share, $2 billion, tender offer to be completed in 1H19. $JNJ PR link.
Target(PBR39) offering same-day delivery through Shipt, Drive-Up service expanded to 1,000 stores, free 2-day delivery with no minimum or membership requirement on hundreds of thousands of items from 11/01/18 through 12/22/18. $TGT PR link.
Medtronic(PBR94) gets US FDA approval for Valiant Navion(TM) Thoracic Stent Graft System. $MDT PR link.
Arconic(PBR215 $ARNC) attempt to auction itself hits snag over Grenfell Tower liability.MarketWatch PR link.
Becton Dickenson(PBR241) to invest $200 million for facilities in Nebraska, create 300 jobs statewide. $BDX PR link.
Tesla(PBR250)‘s Chairman/CEO Elon Musk tweet says “To simplify production, many Tesla Model S & X interior configs, will no longer be available after Nov 1.” $TSLA PR link.
Conagra Brands(PBR346) $68/share, $10.9 billion cash/stock, includes net debt, acquisition of Pinnacle Foods(PBR694) gets Pinnacle Foods shareholders approval, to close 10/26/18. $CAG PR link.
Tapestry(PBR459)’s Coach unit commits to fur-free policy by launch of collection for Fall 2019. $TPR PR link.
Harley-Davidson(PBR470) notifies dealers of a voluntary safety recall for a hydraulic clutch assembly on all model year 2017 and 2018 Touring, Trike and CVO Touring models and certain 2017 Softail models, includes approximately 238,300 motorcycles globally, estimates total cost to be approximately $35 million, will be charged to 4Q18. $HOG PR link.
Essendant(PBR507) $12.80/share, $996 million cash, includes net debt, acquisition by Staplestender offer extended to 11/05/18, 62.5% of shares have been tendered. $ESND PR link.
Sprouts(PBR529) opens 30 stores in 2018, to open 30 more in 2019, operates 300+ stores in 19 states, planning expansion into more states. $SFM PR link.
First Solar(PBR715) to develop and build the 58 megawatt (AC) Cove Mountain Solar Projectnear Enterprise, UT, will provide 100% of power for Facebook(PBR69)’s Prineville, OR, Data Center through a power purchase agreement with PacifiCorp. $FSLR PR link.
Guess?(PBR812) to partner with I:CO®, short for I:Collect, to launch its RESOURCEDnationwide wardrobe recycling program starting 10/23/18, will expand US-wide and globally by 2020. $GES PR link.
Rollins(PBR925) to do 3 for 2 stock split, will be distributed on 12/10/18, to stockholders of record at the close of business on 11/09/18. $ROL PR link.
Activision Blizzard(PBR389) hires Johanna Faries as new Head of Product for the Call of Duty® World League eSports. $ATVI PR link.
The Federal Reserve Bank of Richmond says US Fifth District October 2018 Manufacturing Index(Annualized) is at 15%, indicates manufacturing activity expanded moderately, September 2018 was 29%, August 2018 24%, October 2017 12%. RichmondFed PR link.. The US Fifth District October 2018 Service Sector Revenue Index(Annualized) is at -1%, indicates service sector activity softened, its first negative reading since November 2013, September 2018 was 18%, August 2018 31%, October 2017 24%. RichmondFed PR link.
***Monday, October 22:
Icahn Enterprises(PBR128) to sell its majority owned railcar manufacturer subsidiary American Railcar Industries(NASDAQ: ARII) for $70.00/share, $1.75 billion, to ITE Management LP subsidiary ITE Rail Fund, to close 4Q18. $IEP PR link.
United Natural Foods(PBR283) completes $2.9 billion cash, includes debt, acquisition of SuperValu(PBR205), plans to divest SUPERVALU retail assets over time. $UNFI PR link.
Jacobs Engineering(PBR290) to sell its Energy, Chemicals and Resources (ECR)segment to WorleyParsons Limited (ASX: WOR) for $3.3 billion, consisting of $2.6 billion in cash and $700 million in WorleyParsons ordinary shares, to close 1H19. $JEC PR link.
eBay(PBR299) launches Instant Selling for consumers to instantly sell their smartphones. $EBAY PR link.
NCR(PBR414) to acquire Allentown, PA-based $63.4 million in revenue in 2018 JetPay (NASDAQ: JTPY), a provider of end-to-end payment processing and Human Capital Management solutions , for $5.05 share, around $184 million, by end of 2018. $NCR PR link.
Arthur J Gallagher(PBR441) acquires Issaquah, WA-based independent international benefits broker Richter International Consulting, terms not disclosed. $AJG PR link.
KKR(PBR679)’s Japan unit Calsonic Kansei to acquire automotive component supplier Magneti Marelli from Fiat Chrysler for $7.1 billion, creates 7th largest auto parts company in the world. $KKR PR link.
SemGroup(PBR866) completes $350 million sale of a 49% interest in Maurepas Pipeline to Alinda Capital Partners. $SEMG PR link.
Brown & Brown(PBR877) to acquire 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.
Kimberly-Clark(PBR155) Chairman/CEO Thomas Falk to become Executive Chairman on 01/01/19, President/COO Mike Hsu to become CEO. $KMB PR link.
Celgene(PBR219) hires Dr. Alise Reicin as President/Global Clinical Development, effective 11/01/18. $CELG PR link.
Medtronic(PBR94) co-founder Earl Bakken passes away at age 94. $MDT PR link.
The Federal Reserve Bank of Chicago says the US Preliminary September 2018 National Activity Index is at +0.17, “… points to a moderation of economic growth…,”August 2018was +0.27, July 2018 +0.18, September 2017+0.18. ChiFed PR link.
***Friday, October 19:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 10/19/18:
DJIA ends week at 25,444.34, +0.41% from last Friday, -3.83% MTD/QTD, +2.93% YTD, -5.16% from record 26,743.50 set 09/21/18.
NASDAQ ends week at 7,449.03, -0.64% from last Friday, -7.42% MTD/QTD, +7.90% YTD, -8.15% from record 8,109.69 set 08/29/18.
SPX ends week at 2,767.78, +0.02% from last Friday, -5.02 MTD/QTD, +3.52% YTD, -5.56% from record 2,930.75 set 09/20/18.
Weekly US Stock Exchanges Summary:Looking at the final changes for the week you would not have guessed that The Stock Market Bull and The Stock Market Bear had some major tussles during the week. In the end The Stock Market Bull barely eked out a 2-1 edge, and the dramatic week ends mixed.
The Week 42 YTD tally is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 15 weeks
Mixed Results: 10 weeks
Weekly News Summary: Economic newscontinued to be mostly positive except for housing; the FOMC indicated strongly that it plans to continue raising federal funds rates; consumer and business sentiment indiceswere positive, but slipping a slight bit. Corporate earnings reports generally exceeded expectations. Foreign issues, like the suspected killing of a Saudi Arabia/American journalist in Turkey, Brexit problems, Italian budget challenges, ongoing US/China trade relations continue to have an impact; the clean up of significant devastation from Hurricane Michael across the Southeast US has started. The US general election campaigns are acrimonious at best. A lot is on the line, and what is RealNews and FakeNews is sometimes difficult to discern when watching debates. Be prepared for last minute revelations and surprises.
Intel(PBR45)’s 9th Gen Intel® Core™ i9-9900K processor sets 16 benchmark records, including a world record, as part of extreme overclocking demonstration. $INTC PR link.
Honeywell(PBR71) in 3Q18 10-Q report revises asbestos-related liability to $2.6 billion, up from previous $1.1 billion estimate, from its Bendix Friction Materials business which was sold in 2014. $HON PR link.
Energy Transfer Equity(PBR72) completes acquisition of Energy Transfer Partners(NYSE: ETP) in simplification transaction, changes name to Energy Transfer LP, trading symbol changed from ETE to NYSE: ET. $ET PR link.
Abbott(PBR104) gets US FDA approval for the HeartMate 3™ Left Ventricular Assist Device (LVAD) as a destination therapy for patients living with advanced heart failure not eligible for a transplant who will live with their device for the rest of their lives. $ABT PR link.
PNM Resources(PBR959) to purchase 100 megawatts of solar generation from NM Renewable Development in order to continue serving the Facebook(PBR69) data center in New Mexico with 100% renewable energy. $PNM PR link.
United Natural Foods(PBR309)‘s Steve Spinner to remain Chairman/CEO upon $32.50/share, $2.9 billion cash, includes debt, acquisition of SuperValu(PBR205 $SUV), management team members named. $UNFI PR link.
21st Century Fox(PBR92) new “Fox” that will be spun-off hires Charlie Collier as CEO of Entertainment, effective 11/01/18. $FOX PR link.
AbbVie(PBR102) EVP/CFO William Chase to retire mid 2019, is appointed EVP/Finance & Administration, VP/Controller Robert Michael promoted to SVP/CFO. $ABBV PR link.
AutoZone(PBR268) Founder/Director J. R. “Pitt” Hyde III to retire in 12/18, started company in 1979. $AZO PR link.
The Natl Assn of Realtors says US Preliminary September 2018 Existing Home Sales Annual Rate was at 5,150,000, “… the lowest existing home sales level since November 2015…,” -3.4% from August 2018, -4.1% from September 2017; September 2018 Median Price was $258,100, -2.5% from August 2018, +4.2% from September 2017; Median Time On Market was 32 days. NAR PR link.
***Thursday, October 18:
Walmart(PBR1) to break ground on its first high-tech distribution center, to be located in Shafter, CA, to open fall 2020. $WMT PR link.
Valero Energy(PBR29) to acquire Valero Energy Partners LP (NYSE: VLP) for $42.25/share, $950 million cash. $VLO PR link.
DowDuPont(PBR46) concludes that non-cash impairment charges are required for 3Q18 of about $4.6 billion for goodwill and other assets associated with its agriculture reporting unit. $DWDP PR link.
DowDuPont(PBR46) files initial Form 10registration statement with the US Securities and Exchange Commission for the separation of Corteva Agriscience(TM), Agriculture Division of DowDuPont, on track to separate on 06/01/19. $DWDP PR link.
American Express(PBR80) and PayPal(PBR219) expand strategic partnership, allows US AMEX members to use Membership Rewards points for purchases on PayPal, send money via Venmo or PayPal from the AMEX Mobile app, add AMEX Cards to the PayPal wallet via mobile app or website, and other features. $AXP PR link.
AbbVie(PBR102) gets global resolution of all intellectual property-related litigation with Fresenius Kabi over its proposed biosimilar Humira®(adalimumab) product, Fresenius to pay royalties, get non-exclusive US intellectual property license rights on 09/30/23. $ABBV PR link.
Starbucks(PBR124) to fully license Starbucks operations in France, the Netherlands, Belgium and Luxemburg to its longstanding strategic partner Alsea, S.A.B. de C.V. (BMV: ALSEA), the largest independent chain restaurant operator in Latin America. $SBUX PR link.
Starbucks(PBR124) to open its 3rd Princibakery standalone location in the US, is in New York City near the theater district. $SBUX PR link.
Micron Technology(PBR145) to exercise its call option to acquire Intel(PBR45)‘s interest in joint venture IM Flash Technologies, call available on 01/01/19, to pay $1.5 billion cash, includes $1 billion debt, to close 6-12 months after call declared. $MU PR link.
Nordstrom(PBR179) hosting company-wide hiring day on 10/19/18, to hire 24,000 seasonal workers. $JWN PR link.
Tesla(PBR250) Chairman/CEO Elon Musk tweets new lower price for mid-range Model 3car, says cost is $35,000 after US/CA tax rebates, true cost $31,000 after gas savings. $TSLA PR link.
Sempra Energy(PBR261) and its Oncor unit to acquire Texas electric transmission and distribution assets of InfraREIT(NYSE: HIFR) for $21/share, $1.275 billion, to close mid 2019. $SRE PR link.
Live Nation(PBR281)’s TicketMaster unit acquires UPGRADED, a blockchain technology company servicing the live events industry, converts traditional tickets into secure interactive digital assets protected by blockchain, providing event creators with more control and visibility over ticket distribution, and protecting fans against fraudulent tickets. $LYV PR link.
Activision Blizzard(PBR389) Call of Duty®: Black Ops 4 has sold more than $500 million in sell-through worldwide in its first three days of release. $ATVI PR link.
Invesco(PBR499) to acquire Massachusetts Mutual Life Insurance‘s asset management affiliate OppenheimerFunds in stock and preferred equity transaction that will give MassMutual a 15.5% stake in Invesco, Invesco to become 13th-largest global investment manager and sixth-largest US retail investment manager with assets under management of $1.2 trillion, to close 2Q19. $IVZ PR link.
Coca-Cola(PBR82) President/EMEA Group Brian Smith to become President/COO on 01/01/19, EVP/CFO Kathy Waller to retire after 32 years with company on 03/16/19, President/Asia Pacific John Murphy to be successor on 01/01/19, VP & Chief Technology Officer of N America Nancy Quan promoted to SVP and will be company CTO on 01/01/19, to succeed Ed Hays, who is retiring on 03/31/19, SVP & CIO Barry Simpson to become to also be President/Enabling Services and have new title of Chief Information and Integrated Services Officer on 01/01/19. $KO PR link.
LifePoint Health(PBR378) announces leadership team when it becomes a private company after $65.00/share, $5.6 billion acquisition by RCCH HealthCare Partners by end of 2018. $LPNT PR link.
Vitamin Shoppe(PBR995) hires Stacey Renfro for newly constructed role of EVP/Chief Customer and Digital Experience Officer, effective 11/05/18. $VSI PR link.
The Federal Reserve Bank of Philadelphiasays that the US 3rd District October 2018 Manufacturing General Activity Indicator is at 22.2, indicates continued growth, expectations for the next six months remained optimistic, September 2018 was at 22.9, August 201811.9, October 2017 28.8. PhillyFed PR link.
The Conference Board says US Preliminary September 2018 Leading Economic Indicator(2016=100) is at 111.8, “…suggesting the US business cycle remains on a strong growth trajectory heading into 2019…,” August 2018 was 111.3, July 2018 110.9, September 2017 104.6. TCB PR link.
***Wednesday, October 17:
Amazon(PBR8) paying $15/hr or more for 100,000 seasonal jobs. $AMZN PR link.
Prudential Financial(PBR51) is pleased with the Financial Stability Oversight Council (FSOC) decision to rescind Prudential as a nonbank systemically important financial institution. $PRU PR link.
Tesla(PBR250 $TSLA) secures rights to 210 acres in Liangang, Shanghai, China for its first electric battery manufacturing plant outside the US, called Gigafactory 3, to be able to support production of 500,000 Teslas vehicles/year.Forbes PR link.
Hershey(PBR368) completes $420 million acquisition of B&G Foods(NYSE:BGS)’ Pirate Brands, including the Pirate’s Booty, Smart Puffs and Original Tings brands. $HSY PR link.
First Solar(PBR715) sells 100 Megawatt (MW)AC Willow Springs Solar Project in Kern County, CA, to annually provide enough electricity to power about 41,000 typical California homes and displace more than 77,000 metric tons of CO2 greenhouse gas emission, to DE Shaw Renewable Investments, terms not disclosed. $FSLR PR link.
Constellation Brands(PBR334) President/COO Bill Newlands will assume the role of President/CEO, current CEO Rob Sands to become Executive Chair, Executive Chair Richard Sands to become Executive Vice Chair, all on 03/01/19. $STZ PR link.
The US Dept of Commerce/HUD says US Preliminary September 2018 Number of Private Housing Permits Issued Annual Rateis at 1,241,000, -0.7% from August 2018, -1.0% from September 2017. USDOC PR link.
The Federal Open Market Committee releases minutes from its 09/25-26/18 meeting, “…members expected that further gradual increases in the target range for the federal funds rate would be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term. Members continued to judge that the risks to the economic outlook remained roughly balanced.” FOMC PR link.
***Tuesday, October 16:
Walmart(PBR1 $WMT) and Advance Auto Parts(PBR305) to begin rolling out on Walmart.com in 1H19 Advance’s extensive portfolio of aftermarket automotive parts, accessories and maintenance items. $AAP PR link.
Amazon(PBR8) introduces the all-new Kindle Paperwhite—thinner, lighter, 2x the storage, and waterproof for $129. $AMZN PR link.
Alphabet(PBR21)’s Google unit submit appeal to European Commission regarding its new Android apps rules, at the same time outlines its plans to comply with the ruling. $GOOG PR link.
Wells Fargo(PBR27) applies for investment firm license from the French Prudential Supervision and Resolution Authority, is part of WFC’s Brexit strategy. $WFC PR link.
Target(PBR39) adding nearly 250,000 sf in 500+ stores for 2,500+ new and exclusive toys, nearly double from last year, for holiday season, introducing a new toys hub on Target.com, as well as a digitally enabled kids’ gifting catalog. $TGT PR link.
Macy’s(PBR113) and Marxent partner to offer virtual reality experience in approximately 70 stores nationwide and plans to open 20 more by January 2019, reduces return rates to less than 2%, boosts customer confidence in furniture purchase and increases basket size. $M PR link.
Duke Energy(PBR114) to pilot four programs to expand electric vehicle charging options across S Carolina. $DUK PR link.
Netflix(PBR251) ends 3Q18 with 58.5 million domestic streaming subscribers, 3Q17 was 52.8 million, ends 3Q18 with 78.6 million international streaming subscribers, 3Q17 was 56.5 million. $NFLX PR link.
Boston Scientific(PBR315) completes acquisition of privately-held Augmenix for $500 million cash upfront plus $100 million for reaching sales milestones, developer of SpaceOAR® System, a therapy used to reduce common and debilitating side effects that men may experience after receiving prostate cancer radiotherapy. $BSX PR link.
Arthur J Gallagher(PBR441) acquires El Centro, CA, based property/casualty insurance and risk management services firm Tyler Insurance Agency, terms not disclosed. $AJG PR link.
Taylor Morrison Homes(PBR599) to implement a holding company reorganization, effective 10/26/18, will simplify capital and tax structure and eliminate dual share class, name & ticker symbol remain the same. $TMHC PR link.
Public Storage(PBR758) affiliate, Shurgard Self Storage SA, completes its initial global offering on Euronext Brussels: SHUR, largest owner and operator of self-storage facilities in Europe with 229 self-storage centers and approximately 12 million net rentable square feet in seven countries, PSA retains 35.2% stake. $PSA PR link.
Marvell Technology(PBR804) adds $700 million to share repurchase program, balance available is now just over $1 billion. $MRVL PR link.
The US Dept of Labor says US Preliminary August 2018 Total Private Job Openings were at 6,464,000, Government Job Openings673,000, Total Job Openings 7,137,000, +0.9% from July 2018, +18.1% from August 2017. USDOL PR link.
The US Federal Reserve says US Preliminary September 2018 Total Manufacturing Industry Capacity Utilization was at 78.1%, August 2018 was 78.1%, July 2018 77.9%, September 2017 76.1%, Capacity Utilization Growth Over Previous Year at +1.8%. USFed PR link.
The Natl Assn of Home Builders/Wells Fargo US Preliminary October 2018 Housing Market Index Sales Conditions is at 74, Future Sales Expectations 75, Prospective Buyers Traffic53, Composite Index 68, “Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment…,” September 2018 was 67, August 2018 67, October 2017 68. NAHB/WF PR link.
Boeing(PBR30) forecasts air cargo traffic will double in 20 years, a 4.2% annual growth, projects demand for 2,650 freighters over the next two decades. $BA PR link.
***Monday, October 15:
Amazon(PBR8) becomes an official retail partner for popular entrepreneur TV program “Shark Tank.” $AMZN PR link.
Alphabet(PBR21 $GOOG)’s Google unit CEO defends potential China-compliant search engine. MarketWatch PR link.
Sears(PBR169) files for Chapter 11 bankruptcy, intends to reorganize around a smaller store platform of EBITDA-positive stores, to close an additional 142 unprofitable stores near end of 2018, has received commitments for $300 million in senior priming debtor-in-possession (“DIP”) financing from its senior secured asset-based revolving lenders and is negotiating a $300 million subordinated DIP financing with ESL Investments led by Sears Chairman/CEO Edward Lampert, Sears and KMart stores to remain open, Office of the CEO formed, Lampert remains Chairman. $SHLD PR link.
Ross Stores(PBR206) opens 30 Ross Dress for Less® (“Ross”) and ten dd’s DISCOUNTS®stores across 19 different states in 09/18 and 10/18, completes store growth plans for fiscal 2018 with the addition of 99 new stores. $ROST PR link.
US Steel(PBR240) reaches tentative agreement with the United Steelworkers (USW) on successor four-year collective bargaining agreements covering approximately 14,000 USW-represented employees in the US. $X PR link.
Harris Corp(PBR436 $HRS) and L3 Technologies(PBR299) to combine in an all stock merger of equals, to be L3 Harris Technologies, Inc, will become 6th largest US defense company with 48,000 employees, $16 billion in 2018 revenues, EBIT of $2.4 billion, to be headquartered in Melbourne, FL, to close mid 2019. $LLL PR link.
Wayfair(PBR524) launches MyWay membership program, $29.99 annual fee, includes free shipping, 25% discount for in-home services, and other perks. $W PR link.
The Andersons(PBR607) to acquire the 67.5% of mover of physical commodities including grains, feed ingredients, energy products, and freight within N America and internationally affiliate Lansing Trade Group equity that it does not already own for $305 million in cash and stock, to close before 01/31/19. $ANDE PR link.
Penn Natl Gaming(PBR691) completes $32.47/share, $2.8 billion cash/stock acquisition of owner/operator of 16 gaming and entertainment facilities Pinnacle Entertainment(NASDAQ:PNK). $PENN PR link.
Boyd Gaming(PBR800) completes $575 million acquisition of four Pinnacle Entertainmentproperties which has been acquired by Penn Natl Gaming(PBR691), now operates 29 casino properties in 10 states. $BYD PR link.
Macquarie Infrastructure(PBR886) completes $900 million cash sale of 644 MW power generation facility Bayonne, NJ, based Bayonne Energy Center to an investment fund managed by Morgan Stanley(PBR63). $MIC PR link.
Kimco Realty(PBR989) expects to benefit from Sears(PBR169) bankruptcy, anticipates creating value at its 14 Sears/KMart locations by re-tenanting and redeveloping these below-market anchor spaces and activating underutilized parking fields. $KIM PR link.
Cardinal Health(PBR14) hires Victor Crawford as CEO/Pharmaceutical Segment, effective 11/12/18. $CAH PR link.
Abbott Labs(PBR104) EVP/Medical Devices Robert Ford promoted to EVP/COO. $ABT PR link.
William Cos(PBR343) hires Debbie Cowan as SVP/Chief Human Resources Officer, effective 10/29/18. $WMB PR link.
The US Dept of Treasury says US September 2018 Total Federal Government Receipts were $343.6 billion, Outlays $224.4, Total Surplus$119.1 billion; FY2018 Total Federal Government Receipts were $3.329 trillion, Total Outlays $4.108 trillion, FY2018 Total Deficit was $779.0 billion. USTreasury PR link.
The US Dept of Commerce/Census says US Preliminary August 2018 Total Manufacturer/Retailers/Wholesales Saleswere at $1.492 trillion, +0.5% from July 2018, +7.1% from August 2017; August 2018 Total Manufacturers/Retailers/Wholesales Inventories were at $1.961 trillion, +0.5% from July 2018, +4.2% from August 2017; August 2018 Inventories/Sales Ratio at 1.34, July 2018 was 1.34, August 2017 1.38. USDOC PR link.
The US Dept of Commerce/Census says US Advanced September 2018 Total Retail Saleswere $448.4 billion, Total Food Services & Drinking Places $60.6 billion, Total Sales$509.0 billion, +0.1% from August 2018, +4.7% from September 2017. USDOC PR link.
The Federal Reserve Bank of New York says the Empire State October 2018 Manufacturing General Business Conditions Index is at 21.1, indicating business activity continued to grow strongly in New York State, September 2018was 19.0, August 2018 25.6, October 201728.1. NYFed PR link.
***Friday, October 12:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 10/12/18:
DJIA ends week at 25,339.99, -4.19% from last Friday, -4.23% MTD/QTD, +2.51% YTD, -5.55% from record 26,743.50 set 09/21/18.
NASDAQ ends week at 7,496.89, -3.74% from last Friday, -6.83% MTD/QTD, +8.60% YTD, -7.56% from record 8,109.69 set 08/29/18.
SPX ends week at 2,767.13, -4.10% from last Friday, -5.04 MTD/QTD, +3.50% YTD, -5.58% from record 2,930.75 set 09/20/18.
Weekly US Stock Exchanges Summary: The Stock Market Bear had big days on Wednesday and Thursday to easily take all 3 major US exchanges for the week and for the second week in a row.
The Week 41 YTD tally is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 15 weeks
Mixed Results: 9 weeks
Weekly News Summary: There was not a lot of economic news except for CPI which continued to show positive results, US bond yields rose up significantly again and anticipated Federal Reserve funds interest rates controversies greatly impacted equities and the stock markets; US/China trade relations continued to be sour; last weekend the Senate confirmed Brett Kavanaugh as a Supreme Court Justice in a 50-48 party line vote; Hurricane Michaelslammed into the Florida panhandle and into Georgia and the Carolinas creating a lot of damage.
Walmart(PBR1) acquires intimates online retailer Bare Necessities, offers more than 100,000 SKUs from more than 160 brands, will join the Walmart US eCommerce portfolio, will operate as a separate standalone and complementary brand. $WMT PR link.
Broadcom(PBR158) $44.50/share, $18.9 billion cash acquisition of CA Technologies(PBR567)gets European Union approval, last regulatory requirement, to close transaction on 11/05/18. $AVGO PR link.
Tesla(PBR250 $TSLA)’s sales in the US are gaining on BMW and other luxury car makers.MarketWatch PR link.
Textron(PBR205) promotes Scott Ernest to President/CEO Industrial Segment, succeeds departing Kevin Holleran. $TXT PR link.
The US Dept of Labor says US Preliminary September 2018 All Import Prices were +0.5%, US All Export Prices +0.0%, All Import Prices Last 12 Months were +3.5%, All Export Prices Last 12 Months +2.7%. USDOL PR link.
The U of Michigan US Preliminary October 2018 Consumer Sentiment Index is at 99.0, “…remained at quite favorable levels and just above the average reading during 2018 (98.5)…,” September 2018 100.1, August 201896.2, October 2017 100.7. UMichigan PR link.
***Thursday, October 11:
Walmart(PBR1) and developer of interactive video technology Eko to develop original, interactive content that will include a range of offerings, from cooking shows to interactive toy catalogues, will go beyond the basic personalization available today, allowing viewers to participate in and shape stories as they are being told. $WMT PR link.
Apple(PBR4 $AAPL) to pay London, UK based Dialog Semiconductor plc (XETRA: DLG)$300 million cash for certain of its assets and over 300 employees to support chip research and development, to prepay $300 million for Dialog products to be delivered over the next three years. Dialog PR link.
Facebook(PBR69) removing 559 Pages and 251 accounts that have consistently broken its rules against spam and coordinated inauthentic behavior, many related to US midterm elections. $FB PR link.
Dollar Tree(PBR126) to hire 25,000 associates in its third annual Nationwide Hiring Eventhosted at its 15,000 Dollar Tree and Family Dollar stores across the country on Wednesday, 10/17/18. $DLTR PR link.
L Brands(PBR225) pursuing all alternatives for its La Senza business, has 126 company-owned and operated stores in N America and 188 non-company owned international stores, $250 million in 2018 revenues, $40 million loss. $LB PR link.
GameStop(PBR310) recruiting for 15,000+ retail sales positions within its more than 3,800 GameStop video game and more than 40 ThinkGeek pop culture US store locations. $GME PR link.
Royal Caribbean(PBR322) signs 12 year agreement with Southern Company(PBR119)’s Power subsidiary for 200-megawatt (MW) Reading Wind Facility, located in Osage and Lyon Counties, KS, will offset up to 12% of Royal Caribbean’s emissions beginning in 2020. $RCL PR link.
Wynn Resorts(PBR402) enters into strategic partnership with Europe-based digital sports betting operator BetBull Limited, to pursue sports betting opportunities in emerging USmarket, will make a minority equity investment of 22.5% in BetBull. $WYNN PR link.
Sonoco Products(PBR506) increases prices for all EPS, EPP, PUR and refrigeration packaging products in the US and Mexico, effective on or before 11/10/18. $SON PR link.
KKR(PBR679) completes $46/share cash $9.9 billion enterprise value acquisition of Envision Healthcare(PBR354). $KKR PR link.
RH(PBR797) authorizes up to $700 million share repurchase program. $RH PR link.
Estee Lauder(PBR216 $EL) wins suit to rid Canada based global skin care and cosmetics retailer Deciem, in which it holds a minor stake, of its founder/Co-CEO Brandon Truaxe. Forbes PR link.
YUM!(PBR458) promotes Managing Director of Pizza Hut Asia-Pacific Vipul Chawla to President/Pizza Hut International, effective 12/03/18, to succeed departing Milind Pant. $YUM PR link.
The US Dept of Labor says US Preliminary September 2018 Employee Average Current Hourly Wage is at $27.24, Average Weekly Working Hours at 34.5, Average Weekly Earnings at $939.78, +0.3% from August 2018, +3.4% from September 2017. USDOL PR link.
The US Dept of Labor says US September 2018 Consumer Price Index is at -0.1%, August 2018 was +0.2%, July 2018 +0.2%, September 2017 +0.5%, September 2018 Last 12 Months(Unadjusted) +2.3%, August 2018was +2.7%, July 2018 +2.9%, September 2017+2.2%. USDOL PR link.
***Wednesday, October 10:
CVS Health(PBR7) $207/share, $69 billion, stock/cash acquisition of Aetna(PBR48) gets US Dept of Justice approval based on completion of Aetna’s Medicare Part D unit sale to WellCare Health Plans(PBR166), to close in 4Q18. $CVS PR link.
Kroger(PBR17) and Home Chef launch weekly rotating in-store meal kits at Kroger Family of Stores in select locations, each meal serves two and starts at $8.50 per serving. $KR PR link.
Walgreens Boots Alliance(PBR19) and LabCorp(PBR283 $LH) to open at least 600 LabCorp patient service centers at Walgreens stores across the US over the next four years. $WBA PR link.
Travelers Cos(PBR98) teams up with Amazon(PBR8) to sell smart home kits, includes security cameras, water sensors, motion detectors, a smart home hub, and an Amazon Echo Dot, will result in discounted home owner insurance. $TRV PR link.
Marriott Intl(PBR120) to expand its portfolio in the UAE by more than 80 properties by 2023. $MAR PR link.
T Rowe Price(PBR520) in SEC filing discloses it owns 17.4+ million shares, for a 10.2% stake, in Tesla(PBR250 $TSLA). $TROW PR link.
Campbell Soup(PBR350) around 7% stakeholder investor firm Third Point(NYSE: TPRE) sends letter to Board saying it should not elect a new full time CEO until after the 11/29/18 shareholders meeting. $CPB PR link.
American Eagle Outfitters(PBR605) and Aerieto hire 22,000 part-time seasonal associates for the holiday season, hiring event on 10/14/18. $AEO PR link.
Green Plains(PBR634) to sell three of its ethanol plants located in Lakota, IA, Bluffton, IN, and Riga, MI, to Valero Renewable Fuels Co for $328 million, involves 280 million gallons of nameplate capacity. $GPRE PR link.
TransDigm(PBR640) to acquire Bellevue, WA, based 28 business units organized across eight platforms for specialty aerospace, defense and industrial products, 12,500 employees in more than 50 operating global locations, $2.0 billion sales/FY18 Esterline Technologies(PBR867)for $122.50/share, a 38% premium from 10/09/18 closing price, around $4.0 billion in cash, includes debt, to close 2H19. $TDG PR link.
DSW(PBR731) and Authentic Brands in new partnership to acquire several intellectual property rights from the footwear and accessories product design and development company Camuto Group for around $375 million. $DSW PR link.
Murphy Oil(PBR833) forms 80/20 deep water Gulf of Mexico joint venture with Petrobas(NYSE: PBR) subsidiary for $900 million plus additional incentives, adds approximately 41,000 net barrels of oil equivalent per day from Gulf of Mexico operations. $MUR PR link.
CVS Health(PBR7) to expand Board to include three additional AetnaPBR48) directors upon acquisition, CVS EVP/CFO Shawn M. Guertin to step away for personal and family reasons, remain with CVS to help in integration, EVP/Controller and Chief Accounting Officer Eva C. Boratto to become EVP/CFO upon closing of acquisition. $CVS PR link.
Whirlpool(PBR138) Chief Human Resources Officer David Binkley to retire on 03/01/19 after nearly 35 years with company, VP/Global Human Resources Carey Martin named successor. $WHR PR link.
Tupperware(PBR835) EVP/CFO Michael S. Poteshman to retire 03/01/19 after 25 years with company, new CFO search starts. $TUP PR link.
Square(PBR840) CFO Sarah Friar to leave in 12/18 to become CEO of Nextdoor. $SQ PR link.
The US Dept of Labor says US Preliminary September 2018 Total Final Month Demand Producer Price Index is at +0.2%, August 2018was -0.1%, July 2018 +0.0%, September 2017+0.3%; the September 2018 Total Last 12 Months Final Demand is at +2.9%, August 2018 +2.9%, July 2018 +2.8%, September 2017 +2.6%. USDOL PR link.
The US Dept of Commerce/Census says US Preliminary August 2018 Total Wholesale Sales-Durables was at $247.0 billion, Non-Durables $264.2 billion, for Total Wholesale Sales of $642.7 billion, +1.0% from July 2018, +5.3% from August 2017. USDOC PR link.
***Tuesday, October 9:
Alphabet(PBR21 $GOOG)’s Google unit appeals European Union’s $5 billion Androidantitrust fine. MarketWatch PR link.
Boeing(PBR30) completes $63/share, includes assumption of about $1.0 billion of net debt, total $4.25 billion all cash acquisition of independent provider of aviation parts and services in the aerospace industry KLX(NASDAQ: KLXI). $BA PR link.
Intel(PBR45) 8th Gen Intel® Core™ processors to be used in Alphabet(PBR21) Google unit’s new Pixel Slate, starts at $599, to be available later in 2018. $INTC PR link.
Starbucks(PBR124) major investor Pershing Square has 15.2 million shares, average cost of $51/share. $SBUX PR link.
Starbucks(PBR124) announces new benefit, US company-owned stores partners will receive 10 subsidized backup care days a year for kids and adults. $SBUX PR link.
International Paper(PBR129) authorizes $2.0 billion share repurchase program, is in addition to $430 million remaining from previous program. $IP PR link.
Cummins(PBR143) authorizes new up to $2 billion share repurchase program upon completion of its 2016 $1 billion share repurchase program. $CMI PR link.
Frontier Communications(PBR312) introduces new Gigabit service in its FiOS and Vantage Fiber markets, offering its fastest residential broadband service while also increasing its new consumer broadband offer to 200/200 megabits per second (Mbps), and adding higher speed tiers previously not offered in Indiana, Oregon and Washington (300/300 Mbps). $FTR PR link.
Conagra Brands(PBR346) offering 16,312,057 shares of its common stock at a public offering price of $35.25/share, to net $556 million, primarily to be used for $68/share, $10.9 billion cash/stock, includes net debt, acquisition of Pinnacle Foods(PBR694). $CAG PR link.
Scientific Games(PBR699) to acquire global supplier of real-time betting data and pricing for N American sporting events Don Best Sports Corporation and DBS Canada Corporation, to close 4Q18, terms not disclosed. $SGMS PR link.
MDC Holdings(PBR778) homebuilding subsidiaries, including Richmond American, have closed on their 200,000th home. $MDC PR link.
Maximus(PBR798) to acquire certain assets of General Dynamics(PBR90) Information Technology’s large-scale, citizen-engagement centers in the US Federal civilian market for $400 million cash, to close mid 11/18. $MMS PR link.
Duke Energy(PBR114) announces 6 executive rotations across the company. $DUK PR link.
Dominion Energy(PBR228) EVP/CFO Mark F. McGettrick to step down as CFO on 11/01/18, to retire on 01/01/19 after 38 years with company, SVP/Mergers & Acquisitions and Treasurer James R. “Jim” Chapman to be successor. $D PR link.
AES Corp(PBR276) hires Sanjeev Addala to the newly created position of Chief Information Digital Officer (CIDO). $AES PR link.
CoreLogic says US July 2018 Percent of Home Loans 30 or more Days Past Due was at 4.1%, June 2018 was 4.3%, May 2018 4.2%, July 2017 4.6%; July 2018 Total Percent of Homes in Foreclosure was at 0.5%, July 20170.7%. CoreLogic PR link.
***Monday, October 8:
Ford(PBR10) redesigning its marketing operations globally, names agencies, to hire 100 in-house global marketing positions, expects to yield $150 million in efficiencies annually. $F PR link.
Alphabet(PBR21)’s Google unit sunsetting Google+ app over next 10 months, modifying rules for app developers. $GOOG PR link.
Facebook(PBR69) announces $199 10-inch 1280 x 800 display Portal and $349 15-inch 1920 x 1080 pivoting display Portal+ video communication devices for the home, addresses security issues. $FB PR link.
PPG(PBR193) increasing global price an average of 10% for all automotive original equipment manufacturer products, including coatings, adhesives and sealants, effective 11/01/18. $PPG PR link.
Netflix(PBR251) to open new production hub in Albuquerque, NM, invest $1 billion over next 10 years, create up to 1000 production jobs a year. $NFLX PR link.
Sonoco Products(PBR506) raising prices 6-10% for all rigid plastic packaging in the US and Canada, effective 11/05/18, cites continued resin disruptions, strong regional demand, and increases in other materials and freight. $SON PR link.
Hyatt Hotels(PBR528) to acquire international lifestyle hotel management company Two Roads Hospitality for $480 million plus invest up to $120 million contingent on certain terms of the closing, acquisition includes management of 85 properties in 8 countries and 23 new markets. $H PR link.
Apollo Global Mgmt(PBR765) to acquire an around $1 billion portfolio of predominantly equity investments in energy assets from GE(PBR18) Capital’s Energy Financial Services unit. $APO PR link.
Rowan Cos(PBR978) to combine with UKbased Ensco plc (NYSE: ESV) in an all-stock transaction, estimated enterprise value of the combined company is $12.0 billion, to close 1H19. $RDC PR link.
Fannie Mae(PBR20) board member Hugh R. Frater appointed Interim CEO, effective 10/16/18, succeeds departing Timothy J. Mayopoulos. $FNMA PR link.
Perrigo(PBR512) President/CEO Uwe Roehrhoff steps down, Murray S. Kessler hired as President/CEO, effective immediately. $PRGO PR link.
Axalta(PBR552) CEO Terence Hahn resigns by mutual agreement with the Board following an investigation by outside counsel into conduct unrelated to financial matters that Axalta believes was inconsistent with Company policies, appoints EVP/CFO Robert Bryant appointed to additional role of Interim CEO. $AXTA PR link.
Systemax(PBR982) President/CEO Larry Reinhold to step down from management roles, remain on Board, effective 01/07/19, at which time Board member Barry Litwin will become CEO. $SYX PR link.
Walt Disney(PBR53) announces new organizational structure for its Media Networks business, to be effective upon closing of 21st Century Fox(PBR92) acquisition, Peter Rice to become Chairman, Walt Disney Television and Co-Chair, Disney Media Networks, Dana Walden to assume new role of Chairman, Disney Television Studios and ABC Entertainment, John Landgraf to serve as Chairman of FX Networks and FX Productions, Gary E. Knell to serve as Chairman of National Geographic Partners. $DIS PR link.
21st Century Fox(PBR92) soon to be spin-off FOX hires Danny O’Brien as EVP/Head of Government Relations and Hope Hicks as EVP/Chief Communications Officer. $FOX PR link.
Starbucks(PBR124) hires Patrick Grismer as EVP/CFO, effective 11/30/18, to succeed retiring Scott Maw. $SBUX PR link.
Juniper Networks(PBR509) hires Eva Andres as SVP/Chief Human Resources Officer. $JNPR PR link.
Hyatt Hotels(PBR528) CFO Patrick Grismer resigns, effective 11/02/18, to be succeeded by SVP/Finance for the Americas Joan Bottarini. $H PR link.
FannieMae(PBR20) says the US September 2018 Home Purchase Sentiment Index was at 87.7, “…perceptions of high home prices and expectations for rising mortgage rates continue to weigh on potential homebuyers,” August 2018 was 88.0, July 2018 86.5, September 2017 88.3. $FNMA PR link.
***Friday, October 5:
The PBRMarketTools US Stock Exchanges Recap for the Week Ending 10/05/18:
DJIA ends week at 26,447.05, -0.04% from last Friday/MTD/QTD, +6.99% YTD, -1.42% from record 26,743.50 set 09/21/18.
NASDAQ ends week at 7,788.45, -3.21% from last Friday/MTD/QTD, +12.82% YTD, -3.96% from record 8,109.69 set 08/29/18.
SPX ends week at 2,885.57, -0.97% from last Friday/MTD/QTD, +7.93% YTD, -1.54% from record 2,930.75 set 09/20/18.
Weekly US Stock Exchanges Summary: The Stock Market Bear took all 3 major US exchanges, with the DJIA barely creeping into Bear territory on the last day of the week.
Week 40 YTD tally is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 14 weeks
Mixed Results: 9 weeks
Weekly News Summary: Economic news was generally positive, with a few numbers lower than expected, especially for jobs; US bond yields rise significantly driving equities and the stock markets down; with a new US/Mexico/Canada tentative trade agreementthe focus is now on a US/China deal; the US international trade deficit showed a bigger gap from the previous month and YTD; after a brief FBI investigation into alleged sexual misconduct 36 years ago by Supreme Court nominee Brett Kavanaugh it appears that he will be confirmed in a close Senate party line vote on 10/06/18.
CIT Group(PBR798) exits the European rail leasing business with completion of sale of its NACCO unit in two transactions for net proceeds of $1.1 billion. $CIT PR link.
Cooper-Standard(PBR622) hires Gabrielle Corrent as VP/Strategy and Mergers & Acquisitions. $CPS PR link.
Primoris Services(PBR807) EVP/CFO Peter J. Moerbeek to step down upon release of 3Q18 report, SVP/Corporate Controller Ken Dodgen to become EVP/CFO at that time. $PRIM PR link.
CSX(PBR256) Chairman Edward J. Kelly, III to retire in 01/19, John J. Zillmer elected successor. $CSX PR link.
The US Dept of Labor says US September 2018 Total Employed was at 155,962,000, +420,000 from August 2018, +1,638,000 from September 2017, Total Unemployed at 5,964,000, -794,000 from September 2017, Unemployment Rate is at 3.7%, September 2017 was 4.2%. USDOL PR link.
The US Federal Reserve Board says US Preliminary August 2018 Total Consumer Revolving Debt was at $1.042 trillion, Total Consumer Non-Revolving Debt at $2.894 trillion, Total Consumer Debt $3.395 trillion, +0.5% from July 2018, +2.7% YTD(8 months), +4.6% from August 2017. USFed PR link.
The US Dept of Commerce says US August 2018 Total Exports were $209.4 billion, Total Imports $262.6 billion, Total Deficit $53.2 billion, Total Deficit YTD(8 months) is $391.2 billion, August 2017 Total Deficit YTD was $359.8 billion. USDOC PR link.
***Thursday, October 4:
The September 2018 Snapshot 15 Summary: The PBR1000 Top 5 Stocks By Market Capitalization (Rank, Company, PBR Ranking by Revenues, Stock Symbol, 09/28/18 Market Capitalization in Billions):
1. Apple(PBR4 AAPL), $1,110
2. Amazon(PBR8 AMZN), $982
3. Microsoft(PBR22 MSFT), $877
4. Alphabet(PBR21 GOOG), $836
5. Berkshire Hathaway(PBR3 BRKB), $535
Range: $1,110 billion to $0.04 billion
Total: $27.892 trillion, +0.23% from July 2018, +7.78% YTD(9 months), +27.97% from 12/30/16(21 months)
Average: $27.892 billion
Median: $8.32 billion
Verizon(PBR16 $VZ) extends voluntary severance offer to 44,000 employees, more than a quarter of its workforce. telecompaper PR link.
Walgreens Boots Alliance(PBR19) acquired minority interest in online beauty retailer Birchbox, to build Birchbox retail experiences within 11 select Walgreens stores & online. $WBA PR link.
Alphabet(PBR21)’s Google unit gets mentioned by US VP Pence, says it should drop its Dragonfly search engine for China because of censorship and intellectual property issues.MarketWatch PR link.
Johnson & Johnson(PBR36)’s Janssen Pharmaceuticals unit gets agreement with Arrowhead Pharmaceuticals for an exclusive, worldwide license to develop and commercialize ARO-HBV, a Phase 1/2 subcutaneous, ribonucleic acid interference (RNAi) therapy candidate being investigated for the treatment of chronic hepatitis B viral infection. $JNJ PR link.
American Express(PBR80) rebrands Gold Card, doubles membership rewards to 4x on USdining and supermarkets purchases, adds/expands other benefits. $AXP PR link.
Intl Flavors & Fragrances(PBR652) completes $106.25/share, $7.1 billion cash/stock acquisition of global flavors and natural fine ingredients producer with 70,000 products and 30,000+ customers Frutarom (TASE:FRUT). $IFF PR link.
AvalonBay Communities(PBR847) to sell 80% interest in 5 Manhattan apartment communities, 1,301 apartment homes, 58,000 sf retail space, retains a 20% interest and act as the managing member and property manager for the assets, net proceeds to be around $460 million. $AVB PR link.
Weight Watchers(PBR974) launches WellnessWins™ rewards program, recognizes members for everyday behaviors that are proven to lead to healthier habits. $WTW PR link.
Weight Watchers(PBR974) enters year-long partnership with Barclays Center and the launch of the WW Freestyle(TM) Café: BKLYN, a first-of-its-kind WW space within the arena that offers a diverse menu of healthy and delectable Mediterranean dishes as well as Cense Wine, curated by celebrity chef Cat Cora, the newest WW ambassador and first female “Iron Chef.”$WTW PR link.
Ocwen Financial(PBR991) completes $11.00/share, $360 million cash acquisition of mortgages services provider PHH Corp(NYSE: PHH), Glen A. Messina becomes President/CEO of combined company. $OCN PR link.
Lowe’s(PBR40) adds interim CFO responsbilities to SVP/Corporate Finance and Treasurer Tiffany Mason until David Denton, current EVP/CFO of CVS Health(PBR7), comes on board after CVS acquisition of Aetna(PBR48) in 4Q18. $LOW PR link.
MGM Resorts(PBR270) Chief Customer Development Officer of MGM Resorts and CEO/President of CityCenter Robert Baldwin leaving both positions by end of 2018, over 3 decades in the industry. $MGM PR link.
The US Dept of Commerce/Census says US Preliminary August 2018 Total Manufacturers New Orders for Durable Goods was at $259.6 billion, Non-Durable Goods $250.9 billion, Total New Orders $510.5 billion, +2.3% from July 2018, +10.0% from August 2017. USDOC PR link.
***Wednesday, October 3:
The September 2018 Snapshot 13 Summary: The PBR1000 Top 5 Stock Performers Since 12/30/16 (21 Months)(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 09/28/18 Stock Price, % Increase from 12/30/16):
1. Square(PBR840 SQ), $99.01, +626%
2. Weight Watchers(PBR974 WTW), $71.99, +529%
3. RH(PBR801 RH), $131.01, +327%
4. BlueLinx(PBR891 BXC, $31.49, +322%
5. Wayfair(PBR524 W), $147.67, +321%
Range: +626% to -94%
Number of Companies at 0% or Better:680/995
Average: +24.41%
Median: +14.89%
DJIA: +33.88%
NASDAQ: +49.47%
SPX: +30.16%
Tomorrow: The PBR1000 September 2018 Top 5 By Market Capitalization.
Amazon(PBR8) to start shipping $49.99 Fire TV Stick 4K and the all-new $29.99 standalone Alexa Voice Remote with Device Controlstarting 10/31/18, other options available. $AMZN PR link.
General Motors(PBR12) to get initial $750 million investment plus $2 billion over 12 years from Honda to build new Cruise autonomous vehicle. $GM PR link.
Johnson & Johnson(PBR36) completes $2.1 billion sale of its blood glucose monitoring products $1.5 billion in sales/2017 LifeScanbusiness to Platinum Equity. $JNJ PR link.
VISA(PBR154) announces agreement with Postmates, the nation’s largest on-demand delivery network, to enable real-time funds disbursement to their entire fleet of over 200,000. $V PR link.
XPO Logistics(PBR182) to deploy 5,000 intelligent robots throughout its logistics sites in N America and Europe, each robot can move a rack weighing approximately 1,000 to 3,500 lbs., bringing it to a station where a worker fulfills up to 48 orders simultaneously. $XPO PR link.
Ebay(PBR299 $EBAY) cease-and-desist letter accuses Amazon(PBR8 $AMZN) of illegally poaching its sellers. MarketWatch PR link.
Barnes & Noble(PBR616) to evaluate strategic alternatives, decision follows interest from multiple parties in making an offer to acquire the Company, including its Chairman Leonard Riggio. $BKS PR link.
Navient(PBR965 $NAVI) gets class action suit filed by the American Federation of Teacherswhich says Navient has been making numerous misrepresentations to steer borrowers away from Public Service Loan Forgiveness programs. $AFT PR link.
Becton Dickenson(PBR241) President Tom Polen gets additional COO responsibilities. $BDX PR link.
Activision Blizzard(PBR389) World of Warcraft® Executive Producer J. Allen Brack is the new president of Blizzard Entertainment succeeding Mike Morhaime who remains as a strategic adviser, appoints Chief Development Officer Ray Gresko and Blizzard Founder Allen Adham to Blizzard’s executive leadership team. $ATVI PR link.
GoDaddy(PBR866) founder Bob Parsons resigns from Board to devote his full time efforts to the array of businesses he created under the Yam WorldWide umbrella. $GDDY PR link.
ADP(PBR217) says the US Preliminary September 2018 Total Non-Farm Private Employment was +230,000, highest since February 2018, August 2018 was +168,000, July 2018 +211,000, September 2017 +84,000. $ADP PR link.
The Institute for Supply Management US Preliminary September 2018 Non-Manufacturing Index (>50%=Economy growing) is at 61.6%, August 2018 was 58.5%, July 2018 55.7%, September 2017 59.8%. ISM PR link.
The IHS Markit US September 2018 Composite Output Index is at 53.9, overall expansion was solid but eased to the weakest since January 2018, August 2018 was 54.7, July 2018 55.7, September 2017 54.8. IHS Markit PR link.
***Tuesday, October 2:
The September 2018 Snapshot 12 Summary: The PBR1000 Top 5 YTD Stock Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 09/28/18 Stock Price, % Increase from 12/29/17):
1. BlueLinx(PBR891 BXC), $31.49, +223%
2. AMD(PBR488 AMD), $30.89, +200%
3. Fossil(PBR739 FOSL), $23.28, +200%
4. Square(PBR840 SQ), $99.01, +186%
5. UNISYS(PBR747 UIS), $20.40, +150%
Range: +223% to -82%
Number of Companies at 0% or Better:545/1,000
Average: +4.33%
Median: +1.84%
DJIA: +7.04%
NASDAQ: +16.56%
SPX: +8.99%
Tomorrow: The PBR1000 Top 5 Stock Performers Since 12/31/16.
Walmart(PBR1) to acquire digitally native vertical brand focused exclusively on the $21B women’s plus-size market Eloquii, terms not disclosed, to close 4Q18. $WMT PR link.
Amazon(PBR8) raises minimum wage to $15 for all US employees, including full-time, part-time, temporary, and seasonal, effective 11/01/18. $AMZN PR link.
Kroger(PBR17) and Walgreens Boots Alliance(PBR19) to develop/test in selected 13 Walgreens stores in N Kentucky a one-stop shopping experience where customers can access products and services from both companies. $KR PR link.
Johnson Controls(PBR93) acquires assets of Laredo, TX, based residential and commercial lines ranging from timers to smart home thermostats, including Kono and Geo, LUX Products, terms not disclosed. $JCI PR link.
JCPenney(PBR229) launches Peyton and Parker(TM) in time for the holiday season, a new private brand designed for families and socially connected moms, to be available in nearly 400 stores and online on 10/19/18. $JCP PR link.
Tesla(PBR250) reports that in 3Q18 deliveries totaled 83,500 vehicles: 55,840 Model 3, 14,470 Model S, and 13,190 Model X, delivered 80+% more vehicles in 3Q18 than delivered in all of 2017. $TSLA PR link.
McCormick(PBR520) opens new global headquarters in Hunt Valley, MD, LEED Gold designed 350,000 sf building, for 1,000 employees, consolidated from 4 locations. $MKC PR link.
Taylor Morrison Homes(PBR599) completes $21.50/share, $963 million cash/stock, includes debt, acquisition of builder AV Homes(NASDAQ: AVHI), combined company has 54,000 owned and controlled lots across 19 markets. $TMHC PR link.
KKR(PBR679) completes acquisition of global 10,000+ customers and 6,000 employees digital and IT infrastructure with a broad portfolio of software solutions provider BMC Software from a private investor group led by Bain Capital Private Equity and Golden Gate Capital, terms not disclosed. $KKR PR link.
Penn Natl Gaming(PBR691) gets US Federal Trade Commission approval for $32.47/share, $2.8 billion cash/stock acquisition of owner/operator of 16 gaming and entertainment facilities Pinnacle Entertainment(NASDAQ:PNK), subject to the previously agreed divestitures of four Pinnacle properties to Boyd Gaming(PBR800), to close in early 4Q18. $PENN PR link.
Prologis(PBR767) completes sale of a high-quality portfolio of buildings and land in Europeand the US to a major Asian property company for $1.1 billion. $PLD PR link.
Guess?(PBR812) opens 50th store in Mexico, 3.400 sf in the new shopping center development, PaseoQueretaro in the state of Queretaro. $GES PR link.
JCPenney(PBR229) hires Jill Soltau as CEO, effective 10/15/18. $JCP PR link.
ServiceMaster(PBR716) names Deni Naumann interim President/Terminix Commercial, following departure of Kelly Kambs. $SERV PR link.
Automotive News says US September 2018 Total Light Vehicle Unit Sales were at 1,421,890, -4.1% from August 2018, -5.6% from September 2017, Average Transaction Pricewas $32,003, Average Incentive Outlay $3,785. Automotive News PR link.
The PurdueU/CME US September 2018 Agriculture Economy Barometer Composite Index is at 114, down because of concern for trade conflicts, especially with China, August 2018 was at 129, July 2018 117, September 2017 132. PurdueU PR link.
***Monday, October 1:
The September 2018 Snapshot 11 Summary: The PBR1000 Top 5 Month Stock Performers(Rank, Company, PBR Ranking by Revenues, Stock Symbol, 09/28/18 Stock Price, % Increase from 08/31/18):
1. Rowan Cos(PBR978 $RDC), $18.83, +34%
2. GNC(PBR796 $GNC), $4.14, +32%
3. TravelCenters(PBR452 $TA), $5.70, +31%
4. Pyxus(PBR890 $PYX), $23.00, +30%
5. Steelcase(PBR705 $SCS), $18.50, +27%
Range: +34 to -32%%
Number of Companies at 0% or Better:437/1,000
Average: -0.35%
Median: -0.83%
DJIA: +1.90%
NASDAQ: -0.78%
SPX: +0.43%
Tomorrow: The PBR1000 Top 5 Stock Performers YTD.
Click here to find out more about The PBR1000! PR link.
HP Inc(PBR56) announces the HP Spectre Folio, made of 100% chromed tan, full-grain leather, features traditional laptop position as well as tent and tablet configurations, pre-orders from 10/01/18, available starting 10/29/18, from $1,299.99. $HPQ PR link.
Honeywell(PBR71) to acquire Germany-based $120 million/year, growing at 30% annual rate, warehouse automation business Transnormfrom IK Investment Partners for around $500 million; completes spin-off of transportation systems business Garrett Motion, trading as NYSE: GTX. $HON PR link.
First Data(PBR245) completes $450 million sale of its $120 million in revenues in 2017 card processing businesses in parts of Central and Southeastern Europe to European high tech payment infrastructure and services provider SIA. $FDC PR link.
State Street(PBR262) completes $2.6 billion acquisition of privately held Burlington, MA, $300+ million in revenues/2017 300 clients investment management front office tools and solutions provider Charles Lab Development. $STT PR link.
Chipotle(PBR538) pilots new loyalty program, Chipotle Rewards, in Phoenix, AZ, Kansas City, MO/KS, and Columbus, OH, expects national launch in early 2019, emphasis on digital orders. $CMG PR link.
ServiceMaster(PBR716) completes spin-off of FrontDoor, the parent of American Home Shield, trading as NASDAQ: FTDR, ServiceMaster shareholders will own >80%. $SERV PR link.
Groupon(PBR814) to pay IBM(PBR34) $57 million to settle all patent litigation, includes a long-term patent cross-license agreement between the companies. $GRPN PR link.
Weight Watchers(PBR974) to transfer stock trading from the NYSE to NASDAQ starting 10/15/18, will keep WTW ticker symbol. $WTW PR link.
GE(PBR18) names Lead Director H. Lawrence Culp, Jr. as Chairman/CEO, effective immediately, succeeds John Flannery, Tom Horton elected Lead Director, updates guidance saying GE Power expects to take $23 billion impairment charge. $GE PR link.
Pfizer(PBR55) COO Dr. Albert Bourla to become CEO on 01/01/19, Chairman/CEO Ian Read to become Executive Chairman. $PFE PR link.
Facebook(PBR69 $FB)’s Instagram unit co-founders CEO Kevin Systrom and Mike Krieger introduce VP/Product Adam Mosseri as new head of Instagram. Instagram PR link.
Tesla(PBR250) and Chairman/CEO Elon Musk reach agreement with Securities and Exchange Commission(SEC), Musk to step down as Chairman within 45 days, an Independent Chairman to be appointed, Tesla to appoint two new independent directors to the Board, a new Board committee will oversee Musk’s communications, Tesla and Musk to each pay fine of $20 million, funds to be distributed to harmed investors. $TSLA PR link.
Diebold Nixdorf(PBR529) hires Jeffrey Rutherford as Interim CFO, succeeds departing Chris Chapman. $DBD PR link.
The US Dept of Commerce/Census says US Preliminary August 2018 Total Construction Annual Rate is at $1.318 trillion, +0.1% from July 2018, +6.5% from August 2017. USDOC PR link.
The Institute for Supply Management US September 2018 Manufacturing PMI Index(>50 economy expanding) was at 59.8%, 113th consecutive month for overall economic growth, August 2018 was 61.3%, July 201858.1%, September 2017 60.2%. ISM PR link.
The IHS Markit US September 2018 Manufacturing PMI is at 55.6, August 2018was at 54.7, July 2018 55.3, September 201753.1. IHS Markit PR link.
US reaches trade deal with Canada and Mexico. Politico PR link.
The US Trade Representative provides text of the US-Mexico-Canada Agreement. US Trade Rep PR link.
California approves nation’s toughest net-neutrality rules. MarketWatch PR link.
***Friday, September 28:
The PBRMarketTools US Stock Exchanges Recap for the Week and Month Ending 09/28/18:
DJIA ends week and month at 26,458.31, -1.57% from last Friday, +1.90% MTD, +9.01% QTD, +7.04% YTD, -1.07% from record 26,743.50 set 09/21/18.
NASDAQ ends week and month at 8,046.35, +0.74% from last Friday, -0.78% MTD, +7.14% QTD, +16.56% YTD, -0.78% from record 8,109.69 set 08/29/18.
SPX ends week and month at 2,913.98, -0.54% from last Friday, +0.43% MTD, +7.20% QTD, +8.99% YTD, -0.57% from record 2,930.75 set 09/20/18.
Weekly/Monthly US Stock Exchanges Summary: For the week the Stock Market Beartook the DJIA and SPX exchanges, but not the NASDAQ for a mixed result for the week. For the month the results were reversed with the Stock Market Bull winning the DJIA and SPXbut the Stock Market Bear taking the NASDAQfor a mixed month.
Month 9 YTD tally is:
The Stock Market Bull: 5 months
The Stock Market Bear: 2 months
Mixed Results: 2 months
Week 39 YTD tally is:
The Stock Market Bull: 17 weeks
The Stock Market Bear: 13 weeks
Mixed Results: 9 weeks
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