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Week of Jul 06, 2020
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Jul 10, 2020 - Market Blog

7/10/2020

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If You Build it?

The recently revealed Producer Price Index (PPI) in the U.S. just fell again unexpectedly this morning by a seasonally adjusted -0.2% vs a 0.4% reading anticipated. The measurement is now down 0.8% on a trailing 12-month total as the mounting effects from the pandemic continue to make for a challenging environment amid producers. Machinery and wholesale auto selling became the main drag in the report with a 7.3% drop while hospital care edged higher by 0.8%. Today’s dissapointment marks three of the past four months of declines in the core statistic as demand for finished products still leaves much to be desired.

Major Haircut

Mohawk Industries (MHK) saw one of their worst sessions in history unfold yesterday, tumbling by over 20% after allegations of fraudulent reporting re-surfaced. A class action suit filed by the Public Employees’ Retirement System of Mississippi specifically accuses the flooring and carpeting company of “channel stuffing” at the end of each quarter to inflate production numbers. Several former employees have backed the claim regarding the shady practice all the way back in 2017. Year to date, MHK Industries has cratered 45% despite strong gains in the sector overall with Covid-19 already reducing demand reportedly. The company is scheduled to report earnings at the end of July and shares are barely changed ahead of the open.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.08%, near 3144

U.S. Crude Oil futures (/CL) +.05%, near $39.64 a barrel

CBOE Volatility Index (VIX) +0.21%, near 29.32

U.S. Gold Futures (/GC) +0.67%, near $1815 an ounce

Major Economic Reports:

7:30 am CT – PPI-FD

12:00 pm CT – Baker-Hughes Rig Count

1:00 pm CT – Treasury Budget

Notable Earnings

Friday:

A.M. – GBX

P.M. – SJR

Monday:

A.M. – PEP

P.M. – N/A

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**BOLD above indicates important and potential market-moving news and information

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Jul 09, 2020 - Market Blog

7/9/2020

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Some at Boots Sent Walking

Pharmacy chain, Walgreens Boots Alliance (WBA) reported worse than expected earnings this morning but beat sales expectations. The company reported fiscal third quarter adjusted earnings of $0.83 per share, which came in below consensus estimates of $1.22. Sales increased by 0.1% to $34.6 billion, which topped estimates of $34.3 billion. WBA will boost its quarterly dividend by 2.2% to $0.4675 per share and is halting its share buyback program. As part of a reorganization of its Boots business in the U.K., Walgreens will be cutting 4,000 jobs in the United Kingdom. The shares are currently trading 5% lower in the pre-market.

Jobless Claims

Weekly jobless claims came in at 1.31 million, which was down from the prior week’s revised number of 1.41 million, and below this week’s estimate of 1.375 million. Weekly jobless benefit applications have held between 1 and 2 million since late May. Continuing claims were lower at 18.06 million, which was below the prior revised figure of 18.76 million. The figures are moving lower, but the levels are still extremely high. In a possible look into the future, United Airlines Holding (UAL) announced yesterday that it told 36,000 employees, or half of its U.S. workforce that they could be furloughed beginning on October 1^st due to a pandemic induced slump in business.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.15%, near 3168

U.S. Crude Oil futures (/CL) -0.80%, near $40.60 a barrel

CBOE Volatility Index (VIX) -1.10%, near 27.75

U.S. Gold Futures (/GC) unchanged, near $1820 an ounce

Major Economic Reports:

7:30 am CT – Jobless Claims

7:30 am CT – Export Sales

9:00 am CT – Wholesale Trade

9:30 am CT – EIA Natural Gas Report

12:00 pm CT – 30-Yr Bond Auction

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

Notable Earnings

Thursday:

A.M. – AZZ, HELE, WBA

P.M.– FC, PSMT, SLP, WDFC

Friday:

A.M. – GBX

P.M.– SJR

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**BOLD above indicates important and potential market-moving news and information

Jul 08, 2020 - Market Blog

7/8/2020

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One stop shopping for everything

Walmart’s (WMT) has announced that it will launch their answer to Amazon Prime later this month. The big-box giant plans to roll out a subscriptions-based service called Walmart+, but it has not revealed all the details of the strategy. What is being revealed however is that the membership will cost $98 per year and include same-day delivery of groceries, fuel discounts at Walmart gas stations and other perks. Amongst the other perks that are being reported are a Scan & Go business what would allow shoppers to check out in Walmart stores without waiting in line and a Walmart+ branded credit card which will be introduced at some point after the launch. Shares of Walmart are currently up $1 near $128 a share in premarket trading after rallying over $8 yesterday.

Jeans are fading in a pandemic

Apparel companies have been hit by the pandemic, and Levi Strauss & Co (LEVI) is not exception, with the jeans maker’s stock falling after hours following its worse-than-expected second-quarter earnings report where it announced it would lay off 15% of its workforce. The fashion brand’s revenue dropped 62% in the quarter while reporting a fiscal Q2 loss of $0.48 per share, compared with adjusted income of $0.17 per share a year earlier. Estimates were for a loss of $0.46 per share. The San Francisco clothing company plans to reduce its non-retail, non-manufacturing workforce by about 700 positions to generate annualized savings of $100 million. It has also decided not to pay a dividend for Q3 and will reassesses dividend payments for Q4, after paying $0.08 per share dividend in Q2. Levi shares are down 4% in the premarket.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.10%, near 3140

U.S. Crude Oil futures (/CL) +0.20%, near $40.70 a barrel

CBOE Volatility Index (VIX) -1.50%, near 29.00

U.S. Gold Futures (/GC) +0.35%, near $1816 an ounce

Major Economic Reports:

6:00 am CT – MBA Mortgage Applications

7:00 am CT – Bank Reserve Settlement

9:30 am CT – EIA Petroleum Status Report

12:00 pm CT – 10-Yr Note Auction

Notable Earnings

Wednesday:

A.M. – MSM, SMPL

P.M. – BBBY, SAR

Thursday:

A.M. – AZZ, HELE, WBA

P.M.– FC, PSMT, SLP, WDFC

*Follow us on Twitter @TradeWise

**BOLD above indicates important and potential market-moving news and information

Jul 07, 2020 - Market Blog

7/7/2020

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Shak Attack

Shake Shak (SHAK) just shared bleak monthly same-store sales figures which fell by a whopping 49% in a y/y comparison. The popular burger chain is only expecting Q2 sales to barely reach $100 million which is drastically less than in recent quarters due to repercussions of Coronavirus shutdowns. Shak will be opening an additional 15 stores In South China over the next decade as their popularity continues to expand globally. The company is still seeing a weekly cash burn of $200,000 to maintain operations with $184 million still in reserves. Shares are down over 4% near $51 off the news and have fluctuated within a wide range from $30 to $60 just over the last 100 days.

Warning in the Cockpit

United Airlines (UAL) just warned that several employees may be receiving “Warn Notices” over the near term which would earmark them as the likely first round of layoff candidates expected in early October. The company is required to keep employees on the payroll through September as part of a deal after taking bail-out money from the Government early on in the pandemic. The latest resurgence of cases in many parts of the country have severely crushed travel hopes to help the airlines as they were thinking they were almost through one of the toughest times in their history. United had just shared that they were opening 25,000 flights in August which is now coming under question. Shares of UAL are currently down $1 near $34.25 compared to yesterday's close.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) -0.61%, near 3152

U.S. Crude Oil futures (/CL) -0.66%, near $40.36 a barrel

CBOE Volatility Index (VIX) +1.8%, near 28.44

U.S. Gold Futures (/GC) -0.38%, near $1787 an ounce

Major Economic Reports:

7:55 am CT – Redbook

9:00 am CT – JOLTS

Notable Earnings

Tuesday:

A.M. – ASPU, PAYX

P.M. – LEVI, SGH

Wednesday:

A.M. – MSM, SMPL

P.M. – BBBY, SAR

*Follow us on Twitter @TradeWise

**BOLD above indicates important and potential market-moving news and information

Jul 06, 2020 - The Week Ahead

7/6/2020

The Week Ahead

Uber buying Postmates

In the latest food delivery consolidation move, ride sharing giant, Uber Technologies (UBER) will be buying U.S. food delivery company Postmates Inc. for approximately $2.65 billion in stock. This helps boost the company’s Uber Eats division, which already has a strong international presence. The deal comes after a failed bid to purchase Grubhub Inc. (GRUB) amid the pandemic, which has severely hampered its rides business. Uber plans to continue running the Postmates app following the closing of the deal, which is expected in the first quarter of 2021. UBER is currently trading 0.8% higher in the pre-market.

China Boost

U.S. stock futures (/ES) are trading over 1% higher this morning after Chinese state media made bullish statements which sent the Shanghai Composite Index 5.7% higher. Europe has been pulled along with the Stoxx Europe 600 gaining 1.3%. The state-owned China Securities Journal made statements that said fostering a “healthy bull market” was important.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +1.1%, near 3165

U.S. Crude Oil futures (/CL) -1.00%, near $40.20 a barrel

CBOE Volatility Index (VIX) -4.3%, near 26.50

U.S. Gold Futures (/GC) +0.3%, near $1796 an ounce

Economic Releases (7/6-7/11):

Monday:

8:45 am CT – PMI Services Index

9:00 am CT – ISM Non-Mfg Index

11:30 am CT – TD Ameritrade IMX

Tuesday:

7:55 am CT – Redbook

9:00 am CT – JOLTS

Wednesday:

6:00 am CT – MBA Mortgage Applications

7:00 am CT – Bank Reserve Settlement

9:30 am CT – EIA Petroleum Status Report

12:00 pm CT – 10-Yr Note Auction

Thursday:

7:30 am CT – Jobless Claims

7:30 am CT – Export Sales

9:00 am CT – Wholesale Trade

9:30 am CT – EIA Natural Gas Report

12:00 pm CT – 30-Yr Bond Auction

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

Friday:

7:30 am CT – PPI-FD

12:00 pm CT – Baker-Hughes Rig Count

1:00 pm CT – Treasury Budget

Major Earnings for the Upcoming Week (7/6-7/11):

Monday:

A.M. – N/A

P.M. – LOOP, MKD

Tuesday:

A.M. – ASPU, PAYX

P.M. – LEVI, SGH

Wednesday:

A.M. – MSM, SMPL

P.M. – BBBY, SAR

Thursday:

A.M. – AZZ, HELE, WBA

P.M.– FC, PSMT, SLP, WDFC

Friday:

A.M. – GBX

P.M.– SJR

*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

Showing Week of Jun 29, 2020

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Jul 02, 2020 - Market Blog

7/2/2020

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You get a car, you get a car…..

Tesla (TSLA) shares are higher in the premarket this morning, extending its lead as the world’s most valuable carmaker. The Palo Alto, CA based maker of electric cars posted far stronger-than-expected quarterly deliveries. The company delivered 90,650 vehicles in the second quarter, well ahead of the consensus of 72,000. The quarterly production figures included 75,946 Model 3 or Model Y vehicles and 6,326 Model S or Model X vehicles. At this same time last year, the company delivered 95,200 cars. The Elon Musk led carmaker is up over 9% in premarket trading, valuing the company at over $220 billion, well ahead of Toyota’s $202 billion and nearly four times the combined value of Ford Motor (F) and General Motors (GM).

Takin Care of Business

Stock futures (/ES) are trading higher this morning as nonfarm payrolls jumped by 4.8 million in June and the unemployment rate falls to 11.1%. The U.S. economy continues to re-open from the coronavirus pandemic, particularly in service-related industries. The consensus was for an increase of 2.9 million new jobs created and a jobless rate of 12.4%. Before the coronavirus drove the U.S. into a deep recession, the jobless rate was hovering around a 5-year low of 3.5%. The report was released a day earlier than usual due to the market being closed tomorrow for the July Fourth holiday weekend. The June jobs report came following a massive upside surprise in May, during which the economy unexpectedly added payrolls, when a loss of more than 7 million jobs had been expected.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +1.27%, near 3142

U.S. Crude Oil futures (/CL) +0.80%, near $40.15 a barrel

CBOE Volatility Index (VIX) -6.0%, near 26.90

U.S. Gold Futures (/GC) -0.35%, near $1773 an ounce

Major Economic Reports:

7:30 am CT – Employment Situation

7:30 am CT – International Trade

7:30 am CT – Jobless Claims

9:00 am CT – Factory Orders

9:30 am CT – EIA Natural Gas Report

10:00 am CT – 3-Yr Note, 10-Yr Note and 30-Yr Bond Announcement

12:00 pm CT – Baker Hughes Rig Count

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

Notable Earnings

Thursday:

A.M. – KFY, LNN

P.M.– NONE

Friday:

BANKS AND STOCK MARKET CLOSED

*Follow us on Twitter @TradeWise

**BOLD above indicates important and potential market-moving news and information

Jul 01, 2020 - Market Blog

7/1/2020

Option Trade Ideas for your Inbox! New Subscribers can Get 2 Free Strategies for 60 days by emailing support@tradewise.com or calling 877.733.6786*

Working Things Out

June continued to see an uptick in employment with a 2.369 million surge in private payrolls according to ADP. Although a strong number, it was below analysts’ expectation of 2.5 million. Both hospitality and small businesses took the lead with nearly one million jobs added to both sectors. May’s numbers also saw its revision jump to over 3 million jobs as the economy began to reopen. Tomorrow will highlight even more of the labor picture with both weekly unemployment claims expected around 1.38 million and the monthly employment rate which will be shooting for 12.4% and 3.03 million new jobs added over the last month.

All Boxed In

Shares of FedEx (FDX) the world’s largest package delivery service are on the run higher this morning after the company beat quarterly estimates by over $1 a share at $2.53 as the company showed they were positioned well during the crisis and are seeing a rapid recovery in demand. This was still a 50% drop from the same quarter last year. Online sales were their saving grace as consumers ordered from the safety of their homes vs. venturing out amid closures. The company chose to withhold consensus estimates going forward like other counterparts. With a 10% jump occurring ahead of the open, the new price action will put the carrier back to positive territory for 2020.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.37%, near 3101.25

U.S. Crude Oil futures (/CL) +1.22%, near $39.74 a barrel

CBOE Volatility Index (VIX) -2.66%, near 29.55

U.S. Gold Futures (/GC) -0.72%, near $1787 an ounce

Major Economic Reports:

7:30 am CT – Employment Situation

7:30 am CT – International Trade

7:30 am CT – Jobless Claims

9:00 am CT – Factory Orders

9:30 am CT – EIA Natural Gas Report

10:00 am CT – 3-Yr Note, 10-Yr Note and 30-Yr Bond Announcement

12:00 pm CT – Baker Hughes Rig Count

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

Notable Earnings

Wednesday:

A.M. – CPRI, GIS, M, NNVC, SCHN, STZ, UNF

P.M. – CULP

Thursday:

A.M. – KFY, LNN

P.M.– N/A

*Follow us on Twitter @TradeWise

**BOLD above indicates important and potential market-moving news and information

Jun 30, 2020 - Market Blog

6/30/2020

Option Trade Ideas for your Inbox! Get 2 Free Strategies for 60 days email support@tradewise.com or call877.733.6786*

Peloton looks in the Mirror and sees Lululemon

Athleticwear maker, Lululemon Athletica (LULU) announced yesterday after the close that it was buying at home fitness startup, Mirror for $500 million. Mirror sells a $1500 tech enabled mirror that allows customers to participate in live fitness classes at home. This helps the purveyor of high-priced yoga pants to participate in the pandemic inspired at home fitness craze that stationary bike maker, Peloton (PTON) has helped popularize. Mirror launched in September 2018 and LULU said it is on pace to generate $100 million in sales in 2020.

Headed for the exits

German sportswear maker, Puma is just the latest to say it was going to pause all paid advertising on Facebook (FB) and Instagram through July. Some other big companies that have made the same move in the last 24 hours are: Microsoft (MSFT), Adidas, Reebok, Ford (F), Best Buy (BBY), Clorox (CLX), and Conagra (CAG). In the credit ETF space, two of the largest high yield/junk bond ETFs, HYG and JNK saw large outflows yesterday. JNK had a record one day withdrawal of $1.05 billion. Just something to keep an eye on.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) -0.37%, near 3037

U.S. Crude Oil futures (/CL) -1.7%, near $39 a barrel

CBOE Volatility Index (VIX) +1.8%, near 32.35

U.S. Gold Futures (/GC) -0.2%, near $1777 an ounce

Major Economic Reports:

7:55 am CT – Redbook

8:00 am CT – S&P Corelogic Case-Shiller HPI

8:45 am CT – Chicago PMI

9:00 am CT – Consumer Confidence

11:30 am CT- Fed Chair Powell Testimony

2:00 pm CT – Farm Prices

Notable Earnings

Tuesday:

A.M. – AYI, BSET, CAG, MEI

P.M. – CDMO, FDX, MLHR, SCS

Wednesday:

A.M. – CPRI, GIS, M, NNVC, SCHN, STZ, UNF

P.M. – CULP

Option Trade Ideas for your Inbox! Get 2 Free Strategies for 60 days email support@tradewise.com or call 877.733.6786*

*Follow us on Twitter @TradeWise

**BOLD above indicates important and potential market-moving news and information

Jun 29, 2020 - The Week Ahead

6/29/2020

The Week Ahead

Max Out

Shares of Dow-component Boeing (BA) are up over 5% in premarket trading as certification flights for the Boeing 737 MAX are set to begin Today. Boeing’s 737 MAX has been grounded since March 2019 after two crashes involving the aircraft line in Indonesia and Ethiopia killed 346 people. The commercial jetliner manufacturer initially hoped the plane would fly again before the end of 2019, but the effort hit several roadblocks, including a new software issue that was discovered back in February.

No more social media for you

Starbucks (SBUX) and Coca-Cola (KO) both announced pauses in social media ads, in the latest actions against hate speech on platforms like: Facebook (FB) and Twitter (TWTR). Similar actions were announced by clothing company Levi Strauss (LEVI) and chocolate maker Hershey (HSY). The companies are halting ads on Facebook and other social media outlets to protest social media’s lack of action towards hate speech and racism on their platforms. Facebook (FB) raked in nearly $70 billion in ad revenue worldwide in 2019. Shares of Facebook and Twitter are both down in premarket trading.

Last Call

U.S. stock futures (/ES) are also trading higher this morning despite a spike in coronavirus cases across the nation as the over 45,000 cases were reported last Friday, bringing the country’s seven-day average up more than 41% from the prior week. On Saturday, Florida reported a one-day record number of cases spiking to 9,636 following up with an additional 8,577 cases on Sunday. Those figures were released after the state once again banned drinking at bars as of Friday.

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.28%, near 3015

U.S. Crude Oil futures (/CL) +1.00%, near $38.90 a barrel

CBOE Volatility Index (VIX) -4.00%, near 33.30

U.S. Gold Futures (/GC) -0.03%, near $1780 an ounce

Economic Releases (6/29-7/3):

Monday:

9:00 am CT – Pending Home Sales Index

9:30 am CT – Dallas Fed Mfg Survey

Tuesday:

7:55 am CT – Redbook

8:00 am CT – S&P Corelogic Case-Shiller HPI

8:45 am CT – Chicago PMI

9:00 am CT – Consumer Confidence

2:00 pm CT – Farm Prices

Wednesday:

6:00 am CT – MBA Mortgage Applications

6:30 am CT – Challenger Job-Cut Report

7:15 am CT – ADP Employment Report

8:45 am CT – PMI Manufacturing Index

9:00 am CT – Construction Spending

9:00 am CT – ISM Mfg Index

9:30 am CT – EIA Petroleum Status Report

1:00 pm CT – FOMC Minutes

Thursday:

7:30 am CT – Employment Situation

7:30 am CT – International Trade

7:30 am CT – Jobless Claims

9:00 am CT – Factory Orders

9:30 am CT – EIA Natural Gas Report

10:00 am CT – 3-Yr Note, 10-Yr Note and 30-Yr Bond Announcement

12:00 pm CT – Baker Hughes Rig Count

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

Friday:

FOURTH OFJULY

BANKS AND STOCK MARKET CLOSED

Major Earnings for the Upcoming Week (6/29-7/3):

Monday:

A.M. – N/A

P.M. – MLHR, MU

Tuesday:

A.M. – AYI, BSET, CAG, MEI

P.M. – CDMO, FDX, MLHR, SCS

Wednesday:

A.M. – CPRI, GIS, M, NNVC, SCHN, STZ, UNF

P.M. – CULP

Thursday:

A.M. – KFY, LNN

P.M.– NONE

Friday:

FOURTH OFJULY

BANKS AND STOCK MARKET CLOSED

*Follow us on Twitter @TradeWise

*BOLD above indicates important and potential market-moving news and information

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Showing Week of Jun 29, 2020