Morning Preview: April 24, 2020

Auto PostDaily Market Report

Early Look

Friday, April 24, 2020





DJ Industrials




S&P 500










U.S. stock futures are edging higher, looking to end the week on a solid note after ending yesterday’s trading little changed in a see-saw session, giving up strong early gains to close near their lowest levels of the day. Stocks got a boost overnight with President Trump scheduled set to sign legislation extending an additional $484B in financial aid to small businesses and hospitals after Congress passed it last night. Stocks pulled back midday yesterday after the Financial Times reported that Gilead’s (GILD) remdesivir “flopped” in its first randomized clinical trial as a potential treatment for COVID-19, according to data leaked by the WHO. Prior to that, stocks had managed to overcome another round of bleak economic data as investors mostly ignored initial jobless claims that rose by another 4.4M to bring the unemployment rate to ~20% and PMI data that showed a record drop-in business activity. Along with a big week of earnings helping stocks rally (though next week even busier with over 140 S&P companies expected to report) market participants have been watching which States are in the process of lifting their strict stay at home policies. According to VP Mike Pence, 16 states have unveiled plans to lift coronavirus restrictions, though Trump might extend social distancing guidelines to early summer. Energy was the big winner on Thursday after June WTI crude oil closed +19.7% to $16.50 per barrel after jumping 20% yesterday; however, oil is still down over 30% for the week. In Asian markets, The Nikkei Index fell -167 points to 19,262, the Shanghai Index dropped -30 points to settle at 2,808 and the Hang Seng Index lost -145 points to 23,831. In Europe, the German DAX is lower by -90 points to 10,420, while the FTSE 100 is down about -50 points to 5,770. Stocks have continued to fight back all week despite coronavirus cases rising as the global case tally for the coronavirus that causes COVID-19 climbed to 2.72 million on Tuesday, according to Johns Hopkins University. The death toll rose to 191,228. At least 745,092 people have recovered. The U.S. has the highest case toll in the world at 869,172 and the highest death toll at 49,963.

Market Closing Prices Yesterday

·     The S&P 500 Index slipped -1.51 points, or 0.05%, to 2,797.80

·     The Dow Jones Industrial Average rose 39.44 points, or 0.17%, to 23,515.26

·     The Nasdaq Composite dipped -0.63 points, or 0.01%, to 8,494.75

·     The Russell 2000 Index advanced 12.54 points, or 1.04% to 1,214.06


Economic Calendar for Today

·     8:30 AM EST      Durable Goods Orders, Mar-P…est. (-12%)

·     8:30 AM EST      Durable Goods Ex: Transportation, Mar-P…est. (-6.3%)

·     10:00 AM EST    University of Michigan Confidence, Apr-F…est. 68.0

·     1:00 PM EST       Baker Hughes Weekly Rig Count


Earnings Calendar:

·     Earnings Before the Open: AXP, B, CIVB, FHB, GNTX, GWB, POR, SNV, VZ






WTI Crude















10-Year Note





World News

·     The Federal Reserve’s balance sheet expanded to a record $6.6 trillion in the week ended April 22, an increase of $205 billion from the prior week, the central bank said Thursday, Holdings of U.S. Treasuries rose by $120.5 billion to $3.9 trillion. The central bank’s holdings of mortgage-backed securities rose $54 billion to $1.6 trillion.

·     U.K. consumer confidence steadied in early April but remained at its lowest level in over a decade, as the GfK’s consumer confidence barometer was unchanged at minus 34 in the first two weeks of April after it recorded its largest ever decline last month.

·     U.K. retail sales dropped 5.8% in the 12 months ending March, in the worst ever fall as many stores stopped trading on March 23 due to the lockdown from the pandemic outbreak

·     Global case tally for the coronavirus that causes COVID-19 climbed to 2.72 million on Tuesday, according to Johns Hopkins University. The death toll rose to 191,228. At least 745,092 people have recovered. The U.S. has the highest case toll in the world at 869,172 and the highest death toll at 49,963. Spain has the highest number of cases in Europe at 213,024 and 22,157 deaths. Italy has 189,973 cases and 25,549 deaths, the highest number of fatalities in Europe. France has 159,467 cases and 21,889 deaths, while Germany has 153,129 cases and just 5,575 deaths. The U.K. has 139,246 cases and 18,791 deaths


Sector News Breakdown


·     Skechers (SKX) reports Q1 adjusted EPS 39c/$1.24B vs. est. 39c/$1.22B; sales decreased 2.7% as a result of a 6.8% decrease in its international business which was partially offset by a 2.9% increase in the Company’s domestic business; not providing guidance

·     Robert Half (RHI) Q1 EPS 79c/$1.51B vs. est. 77c/$1.45B; suspends guidance amid COVID-19 uncertainty

·     Tesla (TSLA) is raising prices for two China-made Model 3 variants after China cut subsidies on electric vehicles. Starting prices on the Standard Range Model 3 sedans are now 303,550 yuan, up from 299,050, while Long Range Model 3 cars (set to be rolled out in June) are now priced at 344,050 yuan vs. 339,050 earlier.

·     TRI Pointe (TPH) Q1 EPS 24c/$595.46M vs. est. 16c/$568.96M; reports Q1 new home deliveries of 958 homes compared to 814 homes, up 18% and Q1 average sales price of homes delivered of $621,000 compared to $605,000, an increase of 3%

·     Veoneer (VNE) said it will exit the brake control business to a well-established automotive supplier following a strategic review; expects to achieve total reductions of negative cash flow of more than $80M for 2020 and 2021



·     Continental Resources (CLR) declared force majeure on at least one of its contracts to deliver oil to a fuel producer this Tuesday, the day after crude futures settled negative for the first time in history, Bloomberg reported

·     DMC Global (BOOM) Q1 EPS 35c/$73.6M vs. est. 40c/$73.72M; Consolidated sales were $73.6M, down 15% sequentially and down 27% versus the first quarter of 2019 which relates to lower demand for well perforating systems from DynaEnergetics, DMC’s oilfield products business

·     FirstEnergy (FE) Q1 adjusted EPS 66c/$2.7B vs. est. 63c/$2.89B; affirms long-term growth rate projections; backs FY20 adjusted EPS view $2.40-$2.60 vs. est. $2.49



·     E-Trade (ETFC) Q1 EPS 72c/$707M vs. est. 91c/$721.6M; Daily Average Revenue Trades (DARTs) of 652,000 and derivative DARTs of 186,000 both Company records; average margin receivables of $9.4 billion; end-of-period margin receivables of $7.3 billion; net new accounts of 363,000, a Company record and net new retail and advisor services assets of $17.9 billion

·     People’s United Financial (PBCT) rises after Q1 operating EPS of 33c topped the 30c estimate; and Q1 revenue of $527.5M beats the $500M est. and was up from $514.5M in Q4; Q1 provision for credit losses of $33.5M, includes a $22.9M increase reflecting the application of current expected credit loss accounting and the impact of COVID-19

·     SVB Financial (SIVB) Q1 EPS $2.55 vs. est. $3.56 (and $5.44 YoY); reports Q1 provision for credit losses $243.5M vs. $17.4M in Q4; said Q1 net loan charge-offs were $29.1M vs. $14.4M in Q4; Q1 NII up 2.3% YoY to $527.5M; withdraws outlook for the year

·     Everest Re Group (RE) said it expects Q1 combined ratio below 100% for consolidated reinsurance and insurance operations, including an incurred but not reported provision for an estimate of $150M in pretax net first party losses for expected claims related to the pandemic



·     eHealth (EHTH) Q1 adjusted EPS 39c/$106.4M above est. 22c/$87.66M; cuts FY20 adjusted EPS view to $3.41-$3.90 from $3.56-$4.09 (est. $3.79) while raises FY20 revenue view to $600M-$640M from $580M-$620M (est. $609.12M); raises FY20 adjusted EBITDA view to $125M-$140M from $120M-$135M

·     Edwards Lifesciences (EW) Q1 adjusted EPS $1.51/$1.1B vs. est. $1.33/$1.08B; lowers FY adjusted EPS to $4.75-$5.25, from $6.15-$6.40 and FY sales down to $4.0B-$4.5B from $4.6B-$5B; 1Q gross margin 76.5%

·     Merit Medical (MMSI) Q1 EPS 38c/$243.53M vs. est. 26c/$233.23M; said sales in many of Merit’s end markets have declined due, in large part, to the imposed limitations of procedures required for the focus on COVID-19 treatment


Industrials & Materials

·     Boeing (BA) is expected to announce a significant production cut to the 787 Dreamliner program when it reports earnings next week, according to reports – says the company plans to lower monthly output to a single-digit level from the 14 per month that were being churned out at the beginning of the year.

·     IDEX (IEX) reports Q1 EPS $1.33/$594.5M vs. est. $1.30/$597.5M; sees Q2 revenue down 15%-25% vs. consensus $549.08M while withdraws financial guidance for the year

·     Terex (TEX) said it has begun a comprehensive cost reduction program to help support its financial position during this time of uncertainty which include: temporarily lowering the salaries of the CEO by 50%, the Executive Leadership Team by 20%, and other team members between 5% to 10%. Temporarily furloughing and permanently reducing our team member population, where necessary, to maintain a right sized skilled workforce for the commercial demand of our products.


Technology, Media & Telecom

·     Intel Corp. (INTC) Q1 EPS $1.45 on revs $19.8B vs. est. $1.28 and $18.83B; dividend remains unchanged and withdraws guidance for the year; 1Q adjusted gross margin 62.1% vs. 58.3% YoY; 1Q Data Center Group revenue jumped 43% YoY to $7B; guides Q2 EPS $1.10 on revs $18.5B vs. est. $1.19 and $18.08B

·     Google (GOOGL) is slashing its second-half marketing budgets by as much as half, CNBC reported saying that will include a hiring freeze for full-time employees and contractors

·     Limelight Networks (LLNW) Q1 EPS 0c/$57.0M vs. est. 0c/$54.65M; Q1 Adjusted EBITDA was $5.6 million vs. negative $0.6 million for the first quarter of 2019; backs FY20 EPS 0c-10c and revs $225M-$235M vs. est. 6c/$229.9M

·     LogMeln (LOGM) Q1 EPS 1.21/$322.4M vs. est. $1.19/$321.17M

·     WWE (WWE) Q1 EPS 31c/$291M vs. est. 25c/$266.52M; said Q1 adjusted OIBDA (ex: stock compensation) increased to $77.3M from $12.4M in the prior year quarter and adjusted OIBDA margin increased to 27% from 7%; suspends buyback and drew $200M from revolving credit line

·     CyberOptics (CYBE) Q1 EPS 11c/$16.4M vs. est. 1c/$15.51M; sees Q2 revenue $15.5M-$17.5M vs. est. $15.76M

·     Zoom Video (ZM) too replace Willis Towers Watson (WLTW) in the Nasdaq 100 Index on April 30th (WLTW is being acquired by AON)


Market commentary provided by Catena Media Financials US, LLC, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

Live Trading

Open an Account

Paper Trading