Early Look
Thursday, July 2, 2020
Futures |
Up/Down |
% |
Last |
DJ Industrials |
233.00 |
0.91% |
25,808 |
S&P 500 |
19.50 |
0.61% |
3,122 |
Nasdaq |
39.50 |
0.39% |
10,308 |
Stock futures are on track for another strong day, with U.S. futures pointing higher on rising COVID-19 vaccine hopes and as markets look to the jobs data at 8:30 AM, where over 3M jobs are expected to have been added in the most recent month as the economy continues to recover from the global pandemic related closures. Amid this abbreviated trading week (markets are closed tomorrow in observance of Independence Day), stocks have found solid footing, with the NASDAQ closing yesterday at a new record high (intraday record high stands higher at 10,221), on upbeat economic data and positive results from a clinical trial of a potential coronavirus vaccine from PFE and BNTX). Large cap tech helped pace the advance yesterday with shares of AMZN, TSLA, FB and NFLX all surging. The ISM Manufacturing report came in at a 14-month high on Thursday while the private sector added 2.37 million jobs ahead of today’s nonfarm payroll report. Stocks have pushed higher despite the biggest single-day jump in COVID-19 cases being reported yesterday, including all-time highs in at least five states. In Asian markets, The Nikkei Index rose 24 points to 22,145, the Shanghai Index jumped 64 points (2.13%) to settle the week at 3,090 (nearing its 52-week high 0f 3,127 on 1/14) and the Hang Seng Index surged after being closed the day prior, up 697 points (2.85%) to settle at 25,124. In Europe, the German DAX is higher by over 20-points (1.7%) to 12,470, while the FTSE 100 is higher by over 40 points to move back above the 6,200 level.
Market Closing Prices Yesterday
· The S&P 500 Index gained 15.57 points, or 0.50%, to 3,115.86
· The Dow Jones Industrial Average fell -77.91 points, or 0.30%, to 26,734.97
· The Nasdaq Composite climbed 95.86 points, or 0.95%, to 10,1554.63
· The Russell 2000 Index declined -14.05 points, or 0.97% to 1,427.31
· 8:30 AM EST Change in Nonfarm Payrolls for June…est. 3.029M
· 8:30 AM EST Change in Private Payrolls for June…est. 3.0M
· 8:30 AM EST Change in Manufacturing Payrolls for June…est. 438K
· 8:30 AM EST Unemployment Rate for June…est. 12.5%
· 8:30 AM EST Average Hourly Earnings for June…est. (-0.8%)
· 8:30 AM EST Weekly Jobless Claims…est. 1.35M
· 8:30 AM EST Continuing Claims…est. 19.0M
· 8:30 AM EST Trade Balance for May…est. (-$53.2B)
· 10:00 AM EST Factory Orders for May…est. 8.6%
· 10:00 AM EST Durable Goods Orders, May-F…est. 15.8%
· 10:30 AM EST Weekly EIA Natural Gas Inventory Data
Macro |
Up/Down |
Last |
WTI Crude |
0.28 |
40.10 |
Brent |
0.32 |
42.35 |
Gold |
4.40 |
1,784.30 |
EUR/USD |
0.0035 |
1.1286 |
JPY/USD |
0.02 |
107.49 |
10-Year Note |
-0.001 |
0.674% |
World News
· The U.S. House of Representatives passed legislation extending the timeline into next month for small businesses to apply for the Paycheck Protection Program, building on a surprise vote in the Senate the day before – WSJ
Sector News Breakdown
Consumer
· McDonald’s Corp. (MCD) is pausing the reopening of dine-in service in the U.S. as coronavirus cases continue to spread across states; MCD said it would wait three weeks before any new U.S. restaurants add dine-in service to its drive-through, takeout and delivery operations.
· National Beverage (FIZZ) Q4 EPS 77c on revs $262.4M vs. est. 60c/$246.27M
· Lemonade (LMND) 11M share IPO priced at $29.00
· Nio (NIO) reports deliveries grew 190.8% Y/Y in Q2 to 10,331 vehicles, exceeding quarterly guidance; says they delivered 3,740 vehicles in June (+179.1% Y/Y), consisting of 2,476 ES6s and 1,264 ES8s.
· Dollar Tree (DLTR) says it will be extending the $2.00 per hour premium for hourly-paid store and distribution associates for hours worked over the one-week period ending July 11,
· Nu Skin Enterprises, Inc. (NUS) guided Q2 revenue of $603M-$608M, above its prior view of $520M-$550M and est. $540.8M
Energy
· Envision Solar (EVSI) 1.212M share Secondary priced at $8.25
· Michigan judge allowed Enbridge (ENB) to partially restart its dual oil and gas pipeline below Lakes Michigan and Huron (line 5), nearly a week after shutting it down after an inspection that found damage
· Baker Hughes (BKR) announced International rig count for June declined 357 Y/Y to 781 and down 24 sequentially
· PG&E (PCG) said it has emerged from Chapter 11 and bankruptcy protection and announces a newly constituted board of directors.
Financials
· Goldman Sachs (GS) files for potential mixed shelf offering; size not disclosed
Healthcare
· Accolade (ACCD) 10.02M share IPO priced at $22.00
· Livongo Health (LVGO) downgraded to Neutral from Buy at Goldman Sachs
· McKesson (MCK) realigns organizational structure to four reportable segments beginning 2Q21
Industrials & Materials
· Culp Inc. (CULP) 4Q EPS ($2.26) vs. est. ($0.35), says business has improved materially since end of FY20, says mattress fabrics, upholstery fabrics segment seen better-than-expected increases in orders, shipments, output for first 8 weeks of FY21
· Leidos (LDOS) announced a new blanket purchase agreement with the U.S. Customs and Border Protection to provide software development services and related equipment as the single-award agreement has a one-year base period, four one-year option periods valued at $960M.
· The Association of American Railroads reports carloads in June fell 22.4% Y/Y to 794,256 to recover from the trough formed in the past few months. For the week ended June 27, total carloads were 201,502 carloads, down 22.9% compared with the same week in 2019
· Document Security (DSS) 1.03M share Spot Secondary priced at $6.25
Technology, Media & Telecom
· FormFactor (FORM) guides Q2 revs $157M-$161M above the est. $145.1M saying they experienced no major disruptions in either manufacturing or supplier’s logistics chains, and as a result, expect to report revenue higher than what we had originally anticipated
· Akamai (AKAM) upgraded to Outperform from Market Perform at Cowen
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.