US stock futures surged alongside European share prices on Friday; indicating a rebound following their worst selloff since mid-March.
The S&P 500 (-5.76%) declined it's most since March 16 on Thursday, on signs of market overheating and concerns over a second virus wave.
Treasury Secretary, Steven Mnuchin, said that the US shouldn’t shut down the economy again, even in the event of rising confirmed cases.
Going forward; a fear of missing out, optimism about the technology sector’s prospects and a wall of cheap money unleashed by policy makers could be back in play today, in the event of a risk-on rebound.
Today’s economic calendar includes; Import and Export Prices for May at 8:30am EST, followed by Consumer Expectations and Sentiment for June at 10am EST.
TODAY'S TOP HEADLINES
US: Covid-19 Hospitalizations Surge in Some States. (The WSJ)
Some US states that were largely spared during the early days of the Covid-19 pandemic are now seeing record hospitalizations, causing some experts to fear that loosened restrictions and the approach of summer led many Americans to begin letting down their guard.
Today's Economical Announcements.
08:30AM - ★★☆ - Export Price Index (May) (Previous: -3.3%)
10:00AM - ★★☆ - Michigan Consumer Expect. (Jun) (Previous: 65.9)
10:00AM - ★★☆ - Michigan Consumer Senti. (Jun) (Previous: 72.3)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Dave & Buster’s (PLAY): [EARNINGS] Reported a quarterly loss of $1.37 per share, compared to forecasts of 85 cents a share loss. The restaurant chain’s revenue also missed estimates, hurt by a 56% drop prompted by virus-related closures.
Adobe (ADBE): [EARNINGS] Beat estimates by 12 cents a share, with quarterly earnings of $2.45 per share. The software provider’s revenue was slightly below Wall Street forecasts. The bottom line got a boost from the jump in employees working from home, but Adobe gave lighter-than-expected current-quarter earnings and revenue guidance.
Southwest Airlines (LUV): [UPGRADE] Credit Suisse upgraded the airline’s stock to “outperform” from “neutral.” The firm feels Southwest is well-positioned to benefit from a comeback in leisure travel, thanks to a “best-in-class” balance sheet.
Perspecta (PRSP): [NEWS] Activist investor Jana Partners took a 5.9% stake in Perspecta, according to a Securities and Exchange Commission filing. Jana said it would talk to management about changes that could lead to a sale. Perspecta is a provider of information technology services for government clients.
Boeing (BA): [NEWS] Has pulled back on its restart of production for the 737 Max jet, according to The Wall Street Journal. The paper said the jet maker has told key supplier Spirit AeroSystems (SPR) to freeze recently restarted production of parts, amid the virus-induced slump in travel demand.
Lululemon (LULU): [EARNINGS] Reported quarterly earnings of 22 cents per share, 1 cent a share below estimates. The athletic apparel maker’s revenue also came in below forecasts amid virus-related store closures. It was Lululemon’s first earnings miss in three years, although it managed to offset some of its lost store sales with a 70% rise in digital revenue.
PVH (PVH): [EARNINGS] Lost an adjusted $3.03 per share for its latest quarter, wider than the expected loss of $1.67 per share. The parent of Calvin Klein and other apparel brands saw revenue come in slightly below analysts’ forecasts, as many of its stores closed during the quarter. PVH said it expects its revenue decline to be even more pronounced for the current quarter.
Caterpillar (CAT): [DOWNGRADE] BMO Capital downgraded the heavy equipment maker to “market perform” from “outperform,” saying financial constraints for both corporate and government customers would “overwhelm the myriad internal improvements” at Caterpillar.
Tesla (TSLA): [DOWNGRADE] Downgraded to “underweight” from “equal-weight” at Morgan Stanley, which notes several factors including the automaker’s need for more capital, near term demand pressure, and tech competition.
Hertz (HTZ): [NEWS] Asked a bankruptcy court judge to approve the sale of nearly 247 million new shares, with the car rental company’s lawyers saying recent market prices for the stock “potentially present a unique opportunity.”
Party City (PRTY): [EARNINGS] Reported a quarterly loss of 28 cents per share, compared to analysts’ predictions of a 19 cents a share loss. Revenue also fell short of forecasts, with comparable-store sales falling a greater-than-expected 17.1%. Party City sales were hit by pandemic-related store closures, with the company noting that comparable sales trends had been improving through the end of February. The stock is getting a boost after the company announced a $100 million bond deal that could cut its debt by 25%.
DECLINERS: SGRY, MYGN, RRGB, SGMS, UNFI, VRNT
Avidity Biosciences (RNA) (Price: 18) (Est. Vol: $259.2M)
AZEK Company (AZEK) (Price: 23) (Est. Vol: $764.8M)
Burning Rock (BNR) (Low: 13.50, High: 15.50) (Est. Vol: $195.7M)
Generation Bio (GBIO) (Price: 19) (Est. Vol: $200.0M)
Vaxcyte (PCVX) (Price: 16) (Est. Vol: $250.0M)
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