US equity futures were mixed this morning, ahead of American jobs data which will offer insights into the recovery of the world’s largest
economy amid rising confirmed virus infection rates across the nation.
Consensus forecasts expect weekly jobless claims to fall this week, for the thirteenth consecutive week, however to remain above 1 million.
More than 48 million Americans have filed for unemployment benefits since March, when the pandemic began, as states issued lock-downs.
In recent developments, the US reported 58,000 new virus cases on Wednesday; this figure was down slightly from the previous day's.
Separately, China’s stock market charged ahead for an eighth session in a row. The benchmark Asian index is up 15% since the start of July.
Ahead, today's economic calendar includes; Weekly Jobless Claims for the week ended July 4 at 8:30am EST; 1.375 million claims expected.
In earnings; Walgreens Boots Alliance (WBA) reported earlier today.
TODAY'S TOP HEADLINES
Coronavirus: Record Spikes In Hong Kong And Tokyo. (Bloomberg)
The virus is flaring again in parts of Asia, with Hong Kong and Tokyo reporting spikes in infections days after Melbourne locked down again.
Today's Economical Announcements.
08:30AM - ★★★ - Weekly Jobless Claims (Previous: 1,427,000)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Walgreens Boots Alliance (WBA): [EARNINGS] Reported weaker-than-expected results for its fiscal third quarter. Walgreens reported earnings per share of 83 cents, well below a FactSet estimate of $1.19 per share. The company’s fiscal-year earnings guidance also disappointed.
Carnival (CCL): [NEWS] The company’s German subsidiary, AIDA Cruises, said it will restart vacation trips in August.
Six Flags (SIX): [UPGRADE] Janney upgraded the amusement-park company to “buy” from “neutral,” noting the stock’s valuation is attractive at current levels. The analyst also highlighted Six Flags’ exposure to some of the biggest U.S. markets as a positive.
Cisco Systems (CSCO): [UPGRADE] Morgan Stanley upgraded Cisco to “overweight” from “equal weight,” and hiked its 12-month price target on the stock to $54 per share, noting the company’s earnings multiple discounts to the S&P 500 is at a 10-year high. “While macro does weigh on Cisco currently we think the valuation gap should close to a more normal 3-4x as earnings prove more resilient than investor expectations,” Morgan Stanley said.
BioXcel Therapeutics (BTAI): [NEWS] The biopharmaceutical company and Massachusetts General Hospital reached a deal in which the hospital will provide a BioXcel investigational drug to coronavirus patients that may require calming.
Alibaba (BABA): [RATING] Needham initiated coverage of the Chinese e-commerce giant with a “buy” rating and a price target of $275 per share. The firm cited Alibaba’s “well-established ecosystem” and “strategic position in the e-commerce value chain” as reasons for the rating and price target, which implies a 12-month upside of 6.7%.
DocuSign (DOCU): [REVIEW] Wedbush hiked its price target on DocuSign to $240 per share from $165 per share. The new price target implies an upside of 16.3% from Wednesday’s close of $206.35 over the next 12 months. “We continue to believe DOCU’s deal flow is holding up well/stronger than expected in this Covid-19 pandemic environment which bodes well for strong underlying metrics/headline numbers during FY2Q,” a Wedbush analyst said.
Regeneron (REGN): [UPGRADE] Upgraded to “buy” from “hold” at SunTrust, who also raised its 12-month price target on the stock to $750 a share from $400 a share. The analyst said Regeneron’s base business has “demonstrated strength in a Covid environment.” Regeneron traded 1.2% higher in the premarket.
Square (SQ): [DOWNGRADE] Cowen downgraded the stock to “market perform” from “outperform.” The analyst noted Square’s run-up of more than 200% since mid-March is “too much, too fast” and that the stock has priced in all the good news from its Cash App business.
GAINERS: TMHC, PRTS, KKR, RVLV, WORK, VSLR, RUN, TGTX
DECLINERS: LEVI, RDUS, MSM, MOS, ALL, ALXN
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