US equity futures climbed higher on Monday, as governments across the globe, including in the United States, moved to tentatively ease their coronavirus-lockdown restrictions.
Data over the weekend had shown coronavirus deaths to have slowed the most in more than a month in Spain, Italy and France, as all three countries signaled moves to gradually reopen.
In the US, the federal government and various states are looking at reopening their economies, which states such as Georgia, Oklahoma
and South Carolina having already allowed some businesses to reopen.
"I think as we begin to reopen the economy in May and June you're going to really see the economy bounce back in July, August" said Treasury Secretary, Steven Mnuchin, on "Fox News Sunday".
These developments look to support the S&P 500 into a second day of gains, after the S&P 500 ended last week down (Perf Week: -1.28%), although extended its intraday gap up on Friday (+1.39%).
Ahead, earnings reports are expected today from; F5 Networks (FFIV), Keurig Dr Pepper (KDP) and National Oilwell Varco (NOV).
TODAY'S TOP HEADLINES
Coronavirus: Some States Ease Lockdowns. (The WSJ)
China reported three new coronavirus cases, a record daily low, while some US states began easing lockdowns, as the total number of global infections approached 3 million.
Today's Economical Announcements.
00:00AM - ☆☆☆ - N/A (Previous: N/A)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Check Point Software (CHKP): [EARNINGS] Reported adjusted quarterly earnings of $1.42 per share, 4 cents above estimates, with revenue also beating Wall Street forecasts. The company’s results were boosted by increased demand for network security as more people work from home during the coronavirus outbreak.
Tesla (TSLA): [NEWS] Has asked dozens of workers to return to work at its Fremont, California, plant on Wednesday, according to internal memos seen by CNBC. That comes even though health orders related to the Covid-19 outbreak have not yet been changed or relaxed.
Diamond Offshore (DO): [NEWS] Filed for Chapter 11 bankruptcy protection, after saying demand for its drilling services had “dropped precipitously” amid the significant drop in oil demand. Diamond Offshore is 53% owned by Loews.
Hertz Global (HTZ): [DOWNGRADE] Downgraded to “underweight” from “equal weight” at Barclays, cutting the price target to $2 per share from $10. Barclays is concerned about a capital call by investors in the car rental company.
Wayfair (W): [DOWNGRADE] Downgraded to “hold” from “buy” at Stifel Nicolaus, citing valuation for the online home goods seller’s shares. Wayfair shares dipped as low as $21.70 on March 19, before surging and closing Friday at $122.41 per share.
Boeing (BA): [NEWS] Has pulled out of its deal to pay $4.2 billion for an 80% stake in the commercial jet business of Brazil’s Embraer. Boeing said the two sides had failed to agree on final terms by a deadline, but Embraer accused Boeing of wrongfully terminating the deal.
Caterpillar (CAT): [DOWNGRADE] Downgraded to “underweight” from “equal-weight” at Morgan Stanley, which sees a risk from a possible multi-year downturn in non-residential construction, among other factors.
Revlon (REV): [NEWS] Has lined up an additional $100 million in financing to help it navigate financial difficulties prompted by the coronavirus outbreak. However, Reuters reports that Revlon’s overall restructuring plan is running into objections from some of the cosmetics maker’s lenders, with Revlon needing votes from holders of more than half of its outstanding debt to move forward.
Regeneron Pharmaceuticals (REGN): [NEWS] Shut down parts of its study of the arthritis drug Kevzara as a Covid-19 treatment. The company says the drug did not benefit hospitalized Covid-19 patients who were not on ventilators. The study, however, will continue for patients who do require a ventilator or other oxygen support.
Beyond Meat (BYND): [DOWNGRADE] UBS downgraded the plant-based burger maker’s stock to “sell” from “neutral”, noting the stock’s 142% jump from its March low and saying that the rebound does not price in the impact of the economic risks related to Covid-19.
AutoNation (AN): [NEWS] Will return $77 million it received in forgivable loans from the Paycheck Protection Program. The car retailer said it had intended to use the funds entirely for payroll, but decided to return the money after the Small Business Administration issued new guidelines for the program.
Armstrong World Industries (AWI): [EARNINGS] Missed estimates by 1 cent with adjusted quarterly earnings of $1.10 per share, with revenue slightly below forecasts as well. Armstrong is withdrawing 2020 financial guidance as the coronavirus pandemic slows demand, and said it is reducing spending, suspending hiring, and suspending its share repurchase program.
GAINERS: INO, CVM, W, BYND
DECLINERS: EHTH, MC, AMN
WE WILL SHOW YOU THE WAY!