8/7/2020
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What a Trip
A handful of travel companies reported quarterly earnings last night which shed more light on the crippling effects of the Coronavirus to the industry as a whole during the nightmarish first half of 2020. Shares of Booking.com (BKNG) are on the rise after losing less than expected despite seeing a 91% drop in gross travel bookings compared to last year. Trip Advisor (TRIP) also saw their 2nd quarter revenue crater by 86% with little improvement being seen in the beginning stages of the 3rd quarter as tepid summer travel wraps up. Rideshare pioneer, Uber (UBER) saw bookings fall by a painful 75% y/y as airport travel was brought to a standstill with travel restrictions mounting. Marriott International (MAR) will be next in line Monday morning to examine how the largest hotel chain in the world fared with its over 7,000 properties in 131 countries.
Deep Freeze!
Shares of United Parcel Service (UPS) have been unstoppable as of late with an epic 34% return coming just since the beginning of July. The company has recently shared plans to build a large-scale freezer farm in Louisville, Ky. In anticipation of future vaccine deliveries which could be in the hundreds of millions. The 500+ Freezers will reportedly hold nearly 50,000 vials each at temperatures near -80 Celsius should a vaccine be found and approved for use. Competitors are also taking similar action as the stakes rise. Shares of UPS have just secured a fresh year high earlier this week at $146 following last week’s smashing earnings report but appears unchanged ahead of today's opening bell.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.43%, near 3330.25
U.S. Crude Oil futures (/CL) -0.64%, near $41.69 a barrel
CBOE Volatility Index (VIX) +3.53%, near 23.44
U.S. Gold Futures (/GC) -0.02%, near $2069 an ounce
Major Economic Reports:
7:30 am CT – Employment Situation
9:00 am CT – Wholesale Trade
12:00 pm CT – Baker-Hughes Rig Count
Notable Earnings
Friday:
A.M. – CCO, CIR, CSIQ, KIM, MGA, NBL, NWN, OPY, PAR, RAND, TILE
P.M.– FF, RDN, SMICY, TRIP
Monday:
A.M. – CGC, GOLD, MAR, RCL, SAGE, SEAS, WKHS
P.M. –INO, NTR, OXY, TRLY, YPF
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**BOLD above indicates important and potential market-moving news and information
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8/6/2020
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A shopping we will go, a shopping we will go….
Costco Wholesale Corporation (COST) reported net sales for July jumping 14.1% to $13.04 billion from $11.43 billion in July 2019. Sales also rose 8.8% for the 48-week period ending on August 2nd, coming in at $149.66 billion to the $137.56 billion generated during the 48 weeks ending on Aug 2, 2019. Comparable sales saw increases across the board in all regions but rose most in non-Canadian international areas at 15.9% and least in Canada at 10.4%. The warehouse operator, one of the companies whose services were deemed essential and remained open during the coronavirus pandemic, had initially seen a surge in demand as customers stockpiled and cleaned out shelves. The company is scheduled to report fiscal fourth-quarter results Sept. 24, with expected quarterly sales of $50.95 billion. Shares of Costco are up over 1.5% in premarket.
The itsy-bitsy marketplace that is no longer itsy-bitsy
Etsy (ETSY) reported a quarterly profit of $0.75 per share, up from $0.14 a share the same time last year and well ahead of the $0.39 consensus estimate on revenue of $428.76 million. The online marketplace saw nearly 19 million new and re-activated buyers with many of them buying and selling pandemic face masks, driving shares up more than 300% off their March lows, including more than 30% over the last six trading sessions alone. Masks accounted for 14% of the overall gross merchandise sales over the quarter, while non-mask sales grew 93% year-over-year, accelerating from 79% growth during April. 4 million people came to Etsy for masks alone, buying nothing else and 112,000 different sellers made money by selling those masks on the platform. Shares of Etsy are down modestly in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.03%, near 3317
U.S. Crude Oil futures (/CL) +0.30%, near $42.30 a barrel
CBOE Volatility Index (VIX) +1.0%, near 23.20
U.S. Gold Futures (/GC) +0.85%, near $2066 an ounce
Major Economic Reports:
6:30 am CT – Challenger Job-Cut Report
7:30 am CT – Jobless Claims
9:30 am CT – EIA Natural Gas Report
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Notable Earnings
Thursday:
A.M. – AG, BDX, BHC, BMY, CAH, CNP, CRON, ENDP, HFC, HIMX, LNG, MYL, NBEV, NCLH, PENN, PZZA, VIA, WKHS, YETI, ZTS
P.M.– AAOI, AMC, BKNG, CLVS, CZR, DBX, DDOG, EDIT, EOG, ERI, FSLR, GPRO, GRPN, HLF, HTZ, ILMN, LVGO, MELI, MNKD, NKTR, OLED, RIOT, RVLV, SP, STMP, TMUS, TRIP, TTD, UVER, YELP, Z
Friday:
A.M. – CCO, CIR, CSIQ, KIM, MGA, NBL, NWN, OPY, PAR, RAND, TILE
P.M.– FF, RDN, SMICY, TRIP
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**BOLD above indicates important and potential market-moving news and information
8/5/2020
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Looking for Friday
This morning’s ADP jobs report came in much lighter than expected at only 167K jobs created over the month of July vs. 1.2 million jobs anticipated. All but 1,000 jobs came from the services sector with business and professional services ramping up. Healthcare and education also saw an uptick as a new school year is just around the corner. Manufacturing and construction essentially cancelled each other out with a loss coming in the latter. In comparison, June generated a solid 4.314 million jobs, but still remained well short of the 19.7 million jobs lost in March and April due to the lockdown. The more critical non-farms payroll number is scheduled for this Friday morning from the Labor Department with a 1.48 million target set in order to validate that employees are beginning to return to work after the government assistance lifeline ran out at the end of July. The unemployment rate is still slated in double digits at 10.5% with hourly earnings expected to drop by -0.5%.
It’s Hip to Be Square
The payment processor Square (SQ) saw a whopping 64% jump in quarterly revenue as volumes were up nearly 300% compared to the same time last year. Online checkouts have been huge for the company as the back-end for over 30 million digital customers. The company only generated an earnings result of $0.18 per share which was slightly less than $0.21 posted last year due to accounting adjustments but revenue skyrocketed to $1.92 billion which was a stark comparison to the $1.13 billion expected by analysts. Shares are trading 9.2% higher in the prem-market after seeing $22.8 Billion in gross payment volume over the 3-month period ending in June which indicated robust activity.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.45%, near 3315.25
U.S. Crude Oil futures (/CL) +3.98%, near 43.34 a barrel
CBOE Volatility Index (VIX) -1.77%, near 23.34
U.S. Gold Futures (/GC) +1.5%, near $2051 an ounce
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications
7:15 am CT – ADP Employment Report
7:30 am CT – International Trade
7:30 am CT – Treasury Refunding Announcement
8:45 am CT – PMI Services Index
9:00 am CT – ISM Non-Manufacturing Index
9:30 am CT – EIA Petroleum Status Report
10:00 am CT – 3-Yr Note, 10-Yr Note & 30-Yr Bond Announcement
Notable Earnings
Wednesday:
A.M. – ABC, APT, CPRI, CVS, HL, HUM, LL, MNRA, NRG, REGN, SSYS, TEVA, W
P.M. – ACAD, CTL, CVNA, DDD, ET, ETSY, FIT, FSLY, IMMU, INFN, MET, MNST, MRO, NTES, NVAX, OLN, OPK, PTON, ROKU, SPWR, SQ, SRPT, WDC, WLL, ZNGA
Thursday:
A.M. – AG, BDX, BHC, BMY, CAH, CNP, CRON, ENDP, HFC, HIMX, LNG, MYL, NBEV, NCLH, PENN, PZZA, VIA, WKHS, YETI, ZTS
P.M.– AAOI, AMC, BKNG, CLVS, CZR, DBX, DDOG, EDIT, EOG, ERI, FSLR, GPRO, GRPN, HLF, HTZ, ILMN, LVGO, MELI, MNKD, NKTR, OLED, RIOT, RVLV, SP, STMP, TMUS, TRIP, TTD, UVER, YELP, Z
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**BOLD above indicates important and potential market-moving news and information
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8/4/2020
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Spaced Out
Virgin Galactic Holdings (SPCE) reported worse than expected earnings yesterday after the close. The space-tourism company reported a $62.5 million loss, or $0.30 a share for the second quarter, while analysts were looking for a $0.28 loss per share. The company also reported that it expects to sell an additional 20.5 million shares in an offering, which would bring in an additional $500 million if executed near the current stock price. As a side note, Virgin Galactic will fly its founder Richard Branson into space in 2021, but that was not enough to keep the shares airborne. SPCE is trading 9% lower in the pre-market.
AIG Feeling the Impact
Property casualty insurance giant, American International Group (AIG) reported slightly better than expected earnings but had substantial costs associated to the pandemic and the sale of its stake in Fortitude Group Holdings LLC. The company reported $674 million in catastrophe losses before taxes. This included $458 million in pandemic related losses and $126 million of losses associated to the nationwide protests. AIG is currently trading 3% lower in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.34%, near 3277
U.S. Crude Oil futures (/CL) -1.2%, near $40.50 a barrel
CBOE Volatility Index (VIX) +1.1%, near 24.55
U.S. Gold Futures (/GC) +0.35%, near $1993 an ounce
Major Economic Reports:
7:00 am CT – Motor Vehicle Sales
7:55 am CT – Redbook
9:00 am CT – Factory Orders
Notable Earnings
Tuesday:
A.M. – AGN, AMRN, BP, CHK, CYBR, EMR, KKR, MNK
P.M. – ANET, ATVI, BYND, DIS, DVN, FOXA, GPOR, MCHP, MTCH, NKLA, PAA, PXD, TWLO, WW, WYNN
Wednesday:
A.M. – ABC, APT, CPRI, CVS, HL, HUM, LL, MNRA, NRG, REGN, SSYS, TEVA, W
P.M. – ACAD, CTL, CVNA, DDD, ET, ETSY, FIT, FSLY, IMMU, INFN, MET, MNST, MRO, NTES, NVAX, OLN, OPK, PTON, ROKU, SPWR, SQ, SRPT, WDC, WLL, ZNGA
*Follow us on Twitter @TradeWise
**BOLD above indicates important and potential market-moving news and information
TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com
8/3/2020
The Week Ahead
Tic Tack Dough!
Microsoft (MSFT) has stated that is committed to buy short-form video app TikTok. The software giant said that its CEO, Satya Nadella, has discussed the situation with President Trump, who has threatened to ban the service in U.S. over security concerns. Microsoft intends to acquire the TikTok service in the U.S., Canada, Australia and New Zealand from the Chinese internet company ByteDance. If a deal is made, Microsoft said it may invite other American investors to acquire minority shares and would assure that U.S. Tik Tok user data would be located withith the United States, and data stored elsewhere would be deleted after it has been moved. Microsoft (MSFT) is up more than 2% in the premarket.
Wash, rinse and repeat
Clorox (CLX) saw a surge in sales in its fiscal fourth quarter as consumers scooped up their products during the COVID-19 pandemic, while predicting slower growth in the current year. The maker of household cleaning products who struck partnerships with businesses that were battered by the pandemic, had earnings of $2.41 per share for the quarter. This bettered last year’s $1.88 per share and came in ahead of the consensus estimate of $2.01 per share. The company posted revenues of $1.98 billion for the quarter, which was up from $1.63 billion a year earlier. The company expects sales for fiscal 2021 to be flat to slightly up from previous period, assuming continued demand for cleaning and disinfecting products, minimal disruptions to the supply chain, and continuing pressure discretionary spending amid the pandemic. Shares of Clorox are down 2.5% in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.6%, near 3282
U.S. Crude Oil futures (/CL) +0.6%, near $40.50 a barrel
CBOE Volatility Index (VIX) +2.0%, near 24.95
U.S. Gold Futures (/GC) -0.05%, near $1985 an ounce
Economic Releases (8/3-8/7):
Monday:
8:45 am CT – PMI Manufacturing Index
9:00 am CT – Construction Spending
9:00 am CT – ISM Mfg Index
10:00 am CT – Export Inspections
Tuesday:
7:00 am CT – Motor Vehicle Sales
7:55 am CT – Redbook
9:00 am CT – Factory Orders
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:15 am CT – ADP Employment Report
7:30 am CT – International Trade
7:30 am CT – Treasury Refunding Announcement
8:45 am CT – PMI Services Index
9:00 am CT – ISM Non-Manufacturing Index
9:30 am CT – EIA Petroleum Status Report
10:00 am CT – 3-Yr Note, 10-Yr Note & 30-Yr Bond Announcement
Thursday:
6:30 am CT – Challenger Job-Cut Report
7:30 am CT – Jobless Claims
9:30 am CT – EIA Natural Gas Report
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Friday:
7:30 am CT – Employment Situation
9:00 am CT – Wholesale Trade
12:00 pm CT – Baker-Hughes Rig Count
Major Earnings for the Upcoming Week (8/3-8/7):
Monday:
A.M. – CLX, MCK, MPC, TSN
P.M. – AIG, CLR, CRUS, KLAC, LBTYA, LBTYK, MOS, RNG, RRC, SPCE, THC, TTWO, WMB
Tuesday:
A.M. – AGN, AMRN, BP, CHK, CYBR, EMR, KKR, MNK
P.M. – ANET, ATVI, BYND, DIS, DVN, FOXA, GPOR, MCHP, MTCH, NKLA, PAA, PXD, TWLO, WW, WYNN
Wednesday:
A.M. – ABC, APT, CPRI, CVS, HL, HUM, LL, MNRA, NRG, REGN, SSYS, TEVA, W
P.M. – ACAD, CTL, CVNA, DDD, ET, ETSY, FIT, FSLY, IMMU, INFN, MET, MNST, MRO, NTES, NVAX, OLN, OPK, PTON, ROKU, SPWR, SQ, SRPT, WDC, WLL, ZNGA
Thursday:
A.M. – AG, BDX, BHC, BMY, CAH, CNP, CRON, ENDP, HFC, HIMX, LNG, MYL, NBEV, NCLH, PENN, PZZA, VIA, WKHS, YETI, ZTS
P.M.– AAOI, AMC, BKNG, CLVS, CZR, DBX, DDOG, EDIT, EOG, ERI, FSLR, GPRO, GRPN, HLF, HTZ, ILMN, LVGO, MELI, MNKD, NKTR, OLED, RIOT, RVLV, SP, STMP, TMUS, TRIP, TTD, UVER, YELP, Z
Friday:
A.M. – CCO, CIR, CSIQ, KIM, MGA, NBL, NWN, OPY, PAR, RAND, TILE
P.M.– FF, RDN, SMICY, TRIP
*Follow us on Twitter @TradeWise
*BOLD above indicates important and potential market-moving news and information
TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com
