5/29/2020
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We are all ‘masked’ in a supermarket
Costco (COST) reported higher sales for the its latest quarter, but its growth wasn’t as fast as competitors that were able to stay open during the coronavirus pandemic. Comparable sales rose 7.8% during the quarter, while Walmart (WMT) and Target (TGT) both had comparable sales increases of over 10% for the quarter. The warehouse chain's monthly comparable sales fell in April for the first time in over a decade as social distancing rules limited visits and more shoppers stayed home. Costco also put limits on certain items and restricted how many shoppers could enter a store. During the quarter, 4% fewer shoppers visited, as coronavirus stockpiling of cleaning supplies and toilet paper cooled. The company is still facing some challenges as some shoppers don’t want to go to stores. This helped expand e-commerce sales by 66%, while the mask requirements at the physical warehouses drew the ire many customers. Shares of Costco are down 1.6% in the premarket.
May the force be with you
Saleforce.com (CRM) reported quarterly earnings of $0.70 per share, beating consensus analyst estimates by a penny, which was a 6% increase over EPS of $0.66 from a year earlier. Revenue climbed 30% to $4.87 billion beating the consensus estimate of $4.85 billion, which was a 30% increase over sales of $3.74 billion the same period last year. The enterprise software maker's earnings boost was helped by a huge investment gain from its stake in Zoom Video Communication (ZM), which has been on a rapid uptrend since the Coronavirus pandemic started. The San Francisco company bought $100 million of Zoom stock during the IPO last April, which is now valued around $450 million. Salesforce is lowering their second quarter earnings guidance to $0.67 against a $0.75 estimate and lowering sales estimates by 3%. Shares of Salesforce are down 3% in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.40%, near 3026
U.S. Crude Oil futures (/CL) *2.00%, near $33.00 a barrel
CBOE Volatility Index (VIX) +3.0%, near 29.50
U.S. Gold Futures (/GC) 1.0%, near $1746 an ounce
Major Economic Reports:
7:30 am CT – International Trade in Goods
7:30 am CT – Personal Income and Outlays
7:30 am CT – Retail Inventories (Advance)
7:30 am CT – Wholesale Inventories (Advance)
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
10:00 am CT – Federal Reserve Chairman Jerome Powell Speech
12:00 pm CT – Baker-Hughes Rig Count
Notable Earnings
Friday:
A.M. – BIG, BI, SOL
P.M. – N/A
Monday:
A.M. – ATHM, HHR, NGL
P.M.– EWS, PRCP, PUMP
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5/28/2020
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*
Checking Facts
The ongoing battle between President Donald Trump and Twitter (TWTR) escalated after President Trump announced he would sign an executive order that would reduce the liability protections that the major social media platforms enjoy. Things heated up after the company took the unprecedented step to put fact check links on two of his tweets. As of this writing, shares of TWTR are trading almost 5% lower in the pre-market.
Scrubbed
The planned launch of two NASA astronauts aboard a SpaceX rocket, was scrubbed yesterday afternoon due to foul weather near the launch site in Florida. The bad weather included a tornado warning that occurred within 20 minutes of the planned launch. The mission was set to be the first human launch from U.S. soil since 2011. The next attempt is scheduled for Saturday.
HBO Max…Min
The launch of AT&T’s (T) HBO Max streaming service went live yesterday without a presence on two of the largest streaming services. HBO was unable to reach a deal with Amazon (AMZN) and Roku (ROKU) which control over 70% of the streaming device market. In addition, there were five million Amazon Prime customers that access HBO through the its Prime Video Channels platform but were unable to access HBO Max even though it was being offered free to all 33 million existing HBO subscribers.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.4%, near 3047
U.S. Crude Oil futures (/CL) unchanged, near $32.80 a barrel
CBOE Volatility Index (VIX) +1.9%, near 28.15
U.S. Gold Futures (/GC) +0.8%, near $1741 an ounce
Major Economic Reports:
7:30 am CT – Corporate Profits
7:30 am CT – Durable Goods Orders
7:30 am CT – GDP
7:30 am CT – Jobless Claims
9:00 am CT – Pending Home Sales Index
9:30 am CT – EIA Natural Gas Report
10:00 am CT– EIA Petroleum Status Report
10:00 am CT– Kansas City Fed Manufacturing Index
2:00 pm CT – Fed Reserve’s Harker Speaks
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Notable Earnings
Thursday:
A.M. – ANF, BURL, CM, CSIQ, DBI, DG, DLTR, GLNG, MOMO, NGL, NIO, SHOO, TD, TECDM
P.M.– ADVM, AFYA, COST, CRM, DELL, DXC, GME, GPS, JWN, MRVL, OKTA, OLLI, PAGS, PSTG, RRGB, SPWH, TCOM, ULTA, VEEV, WSM, YEXT, ZS
Friday:
A.M. – BIG, BI, SOL
P.M.– N/A
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**BOLD above indicates important and potential market-moving news and information
5/27/2020
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Making Dough Again
Papa John’s Pizza (PZZA) saw a 33% jump in monthly same-stores sales from this same time in April as the ease and safety of pizza delivery is reportedly producing record sales numbers for a 2nd straight month. Shares of PZZA had been down for 6 straight sessions before a 4% bump in pre-market came off the good news. Competitor, Dominoe's Pizza (DPZ) also shared encouraging data after seeing a 14% jump in same store sales since April. At its peak, 2400 of Dominoe's stores world-wide were closed temporarily due to the pandemic.
Here’s the Plan
Disney (DIS) is set to lay out their detailed plans to local government officials today in order to begin to gradually re-open their mecca of theme parks and resorts in Florida which have been closed since late mid-March. Both the Mayor and the state’s Governor will eventually be required to sign off on the plan before the green light is given. SeaWorld (SEAS) will also be presenting their proposal at the same meeting. Universal Studios was already granted approval just last week and is slated to begin reopening on June 5th with strict social distancing guidelines in place. Orlando attracted over 75 million tourists to the state of Florida in 2019 and is key to the state’s economic success. Shares of DIS are up over 2% in hopes of Mickey’s swift return.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.88%, near 3021
U.S. Crude Oil futures (/CL) -2.1%, near $33.60 a barrel
CBOE Volatility Index (VIX) -2.7%, near 27.26
U.S. Gold Futures (/GC) -1.13%, near $1708 an ounce
Major Economic Reports:
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:00 am CT – Bank Reserve Settlement
7:55 am CT – Redbook
9:00 am CT – Richmond Fed Manufacturing Index
9:00 am CT – State Street Investor Confidence Index
12:00 pm CT – 5-Yr Note Auction
1:00 pm CT – Beige Book
Notable Earnings
Wednesday:
A.M. – BMO, BZUN, CPRI, GOOS, RL, RY, TGI, TTM
P.M. – ADSK, BEST, BOX, HPQ, NTAP, NTNX, PLT, PVH, SPTN, TOL, WDAY
Thursday:
A.M. – ANF, BURL, CM, CSIQ, DBI, DG, DLTR, GLNG, MOMO, NGL, NIO, SHOO, TD, TECDM
P.M.– ADVM, AFYA, COST, CRM, DELL, DXC, GME, GPS, JWN, MRVL, OKTA, OLLI, PAGS, PSTG, RRGB, SPWH, TCOM, ULTA, VEEV, WSM, YEXT, ZS
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**BOLD above indicates important and potential market-moving news and information
5/26/2020
The Week Ahead
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One shot away
Biotech company Novavax (NVAX) has started its first human study of its experimental coronavirus vaccine. The company said it expects initial results on its phase 1 portion of the trial in July, which will be conducted in Australia. The second phase, which will be conducted in multiple countries, will assess the immunity, safety and COVID-19 disease reduction in a broader age range. The Maryland-based company’s coronavirus vaccine candidate follows another biotech company Moderna's (MRNA) vaccine trial, where last week the company reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies. Novavax and Moderna joins Pfizer (PFE) and Inovio (INO) as the first four to enter their coronavirus vaccine candidates into human trials in the U.S. Other companies, including Johnson & Johnson (JNJ), are also working on developing their own vaccine candidates. Shares of Novavax are up 16% in premarket.
Is it time to fly the friendly sky’s again?
Airline stocks are getting a boost this morning in premarket trading as U.S. booking trends continue to improve off their historic lows. Also, in the mix, several European nations have set plans to lift travel bans in June on a nation-by-nation basis. Spain said it will lift the mandatory two-week quarantine for travelers arriving from overseas starting July 1. Airline companies will start using coronavirus safety protocols to lure back anxious passengers such as United Airlines (UAL), who will use sneeze guards at check-in counters. United also will be partnering up with Clorox (CLX) for enhanced cleaning of their jets. JetBlue (JBLU) will block middle seats on Airbus planes, while other airlines will enhance their cleaning procedures using disinfectants that are effective against viruses. Shares of United, JetBlue, Delta (DAL) and American Airlines (AAL) are all up more than 5% in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +2.0%, near 3013
U.S. Crude Oil futures (/CL) 3.4%, near $34.35 a barrel
CBOE Volatility Index (VIX) -1.8%, near 27.60
U.S. Gold Futures (/GC) -0.7%, near $1723 an ounce
Economic Releases (5/26-5/29):
Monday:
Memorial Day
Banking and U.S. Markets Closed
Tuesday:
7:30 am CT – Chicago Fed National Activity Index
8:00 am CT – FHFA House Price Index
8:00 am CT – S&P Corelogic Case-Shiller HPI
9:00 am CT – Consumer Confidence
9:00 am CT – New Home Sales
9:30 am CT – Dallas Fed Mfg Survey
10:00 am CT – Export Inspections
2:00 pm CT – Crop Progress
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:00 am CT – Bank Reserve Settlement
7:55 am CT – Redbook
9:00 am CT – Richmond Fed Manufacturing Index
9:00 am CT – State Street Investor Confidence Index
12:00 pm CT – 5-Yr Note Auction
1:00 pm CT – Beige Book
Thursday:
7:30 am CT – Corporate Profits
7:30 am CT – Durable Goods Orders
7:30 am CT – GDP
7:30 am CT – Jobless Claims
9:00 am CT – Pending Home Sales Index
9:30 am CT – EIA Natural Gas Report
10:00 am CT – EIA Petroleum Status Report
12:00 pm CT – Kansas City Fed Manufacturing Index
12:00 pm CT – 7-Yr Note Auction
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Friday:
7:30 am CT – International Trade in Goods
7:30 am CT – Personal Income and Outlays
7:30 am CT – Retail Inventories (Advance)
7:30 am CT – Wholesale Inventories (Advance)
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
10:00 am CT – Federal Reserve Chairman Jerome Powell Speech
12:00 pm CT – Baker-Hughes Rig Count
Major Earnings for the Upcoming Week (5/26-5/29):
Monday:
Memorial Day
Banking and U.S. Markets Closed
Tuesday:
A.M. – ATHM, AZO, BAH, BNS, DOYU, DUO, HIBB, LL, MBT, MMYT, PLAN,
P.M. – HEI, IVR, KEYS, STNE, WUBA,
Wednesday:
A.M. – BMO, BZUN, CPRI, GOOS, RL, RY, TGI, TTM
P.M. – ADSK, BEST, BOX, HPQ, NTAP, NTNX, PLT, PVH, SPTN, TOL, WDAY
Thursday:
A.M. – ANF, BURL, CM, CSIQ, DBI, DG, DLTR, GLNG, MOMO, NGL, NIO, SHOO, TD, TECDM
P.M.– ADVM, AFYA, COST, CRM, DELL, DXC, GME, GPS, JWN, MRVL, OKTA, OLLI, PAGS, PSTG, RRGB, SPWH, TCOM, ULTA, VEEV, WSM, YEXT, ZS
Friday:
A.M. – BIG, BI, SOL
P.M.– N/A
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
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
