US stock futures traded higher on Tuesday, with easing restrictions on economic activity in parts of the US and Europe having inspired fragile confidence and hopes of a global economic recovery.
In recent developments; Hong Kong said it will ease curbs on social gatherings and schools. California, the first state to shut down, will begin to loosen its lockdown restrictions this Friday. Both Italy and Spain began to reopen their economies after a two-month closure.
These moves to open the US came as deaths from the virus neared 69,000, while infections in the US grew to 1.18 million.
Ahead, in today's economic calendar, Tuesday includes; International Trade for March at 8:30am EST, followed by ISM Non-Manufacturing Index data for April at 10am EST.
Earnings reports are expected today from; Walt Disney (DIS), Fiat Chrysler Automobiles (FCAU), Beyond Meat (BYND), DuPont (DD), Allstate (ALL), Activision Blizzard (ATVI), Electronic Arts (EA), Mattel (MAT), Pinterest (PINS), AMC Networks (AMCX) and Occidental Petroleum (OXY).
TODAY'S TOP HEADLINES
Coronavirus: US Officials Warn of New Virus Surge as States Reopen. (The WSJ)
US researchers and officials warned about the possibility of a new surge in coronavirus cases as more states and countries begin to reopen their economies and relax social-distancing rules.
Today's Economical Announcements.
08:30AM - ★★☆ - Exports (Previous: 207.50B)
08:30AM - ★★☆ - Imports (Previous: 247.50B)
10:00AM - ★★★ - ISM Non-Manuf. PMI (Apr) (Previous: 52.5)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
L Brands (LB): [NEWS] Agreed to end its $525 million deal to sell a 55% stake in its Victoria’s Secret unit to private equity firm Sycamore Partners. Sycamore had sued to terminate the deal, saying L Brands had breached the terms by closing nearly all Victoria’s Secret locations without its permission. The agreement settles all pending litigation and neither side will pay a termination fee.
Chegg (CHGG): [EARNINGS] Beat estimates on both the top and bottom lines for its latest quarter, with the online education company also giving an upbeat current-quarter forecast on the surge in in-home learning.
Tenet Healthcare (THC): [NEWS] Said the Covid-19 pandemic would have a significant impact on its current quarter results, with the hospital operator seeing patient visits to its hospitals decline significantly during the second half of March. Patient volumes have been hit by deferrals of elective procedures.
Hertz (HTZ): [NEWS] Hired an additional adviser to help with a planned bankruptcy filing for the car rental company, according to The Wall Street Journal. Hertz is said to have hired FTI Consulting, and is also working with law firm White & Case and investment bank Moelis.
Avis Budget (CAR): [EARNINGS] Lost $1.33 per share for its latest quarter, less than the $1.84 per share loss that analysts were anticipating. The car rental company’s revenue was also below estimates, and it expects a continued revenue decline until a gradual recovery begins in June.
Starbucks (SBUX): [NEWS] Plans to reopen more than 85% of its U.S. stores by the end of the week, although service will be limited to pickup, delivery, and drive-thru.
Restaurant Brands (QSR): [NEWS] Bill Ackman’s Pershing Square has a 9.6% stake in the parent of Popeyes, Tim Hortons, and Burger King. Ackman feels the stock is undervalued but told CNBC he is supportive of the company’s management.
Alaska Air (ALK): [EARNINGS] Reported a quarterly loss of 82 cents per share, smaller than the $1.13 per share loss anticipated by Wall Street. Revenue was slightly below forecasts, with Alaska Air saying demand was more than 90% below normal.
Pfizer (PFE): [NEWS] The drugmaker and partner BioNTech (BTNX) have begun the first US trial of their experimental coronavirus vaccine. If successful, the vaccine could potentially be ready for U.S. distribution by the end of the year.
DuPont (DD): [EARNINGS] Earned 84 cents per share for the first quarter, above the 75 cents a share consensus estimates and at the high end of the company’s guidance of 82 to 84 cents a share given on April 20. DuPont also slashed capital spending plans by $500 million and raised its cost-savings target for this year to $180 million.
Mallinckrodt (MNK): [EARNINGS] Reported quarterly earnings of $1.64 per share for its latest quarter, beating the consensus estimate of $1.43 a share. Revenue was below forecasts, however, and Mallinckrodt said the next few quarters will be “challenging” due to the impact of Covid-19.
Regeneron Pharmaceuticals (REGN): [EARNINGS] Reported quarterly profit of $6.60 per share compared to a consensus estimate of $6.13 a share. Revenue beat Wall Street forecasts as well, boosted by increased demand for its eye drug Eylea.
Marathon Petroleum (MPC): [EARNINGS] Reported a quarterly loss of 16 cents per share, smaller than the 31 cents a share loss projected by the Street. Revenue came in above estimates, although Marathon said the Covid-19 pandemic is significantly impacting demand for the transportation fuels that it produces.
Fiat Chrysler (FCAU): [EARNINGS] Reported a larger-than-expected loss for the first quarter and missed revenue estimates as well. The automaker also said it was unable to provide guidance due to uncertainties surrounding the coronavirus outbreak, and that it remains committed to its planned merger with Peugeot parent PSA Groupe.
AMC Networks (AMCX): [EARNINGS] Reported quarterly earnings of $1.47 per share, missing the consensus estimate of $1.84 a share. Revenue missed forecasts as well, however AMC said it does not expect Covid-19 to impact its liquidity position or ability to pay debt. The company continues to generate significant levels of free cash flow.
AIG (AIG): [EARNINGS] Reported quarterly earnings of 11 cents per share, well below the consensus estimate of 72 cents a share. Revenue beat forecasts. AIG withdrew its previously issued guidance, and the insurance company said that Covid-19 would represent the largest-ever catastrophe loss for the industry.
Shake Shack (SHAK): [EARNINGS] Reported quarterly earnings of 2 cents per share, beating the consensus estimate of a breakeven quarter. The restaurant chain’s revenue was shy of forecasts, however, and Shake Shack said it cannot reasonably estimate the impact of the coronavirus outbreak. It did add that demand is showing signs of rebounding.
Wayfair (W): [EARNINGS] Lost $2.30 per share for its latest quarter, 30 cents a share less than analysts had been expecting. Revenue beat estimates. Wayfair reported 2.1 million active customers, 29% above year-ago levels.
AmerisourceBergen (ABC): [NEWS] Has reportedly approached Walgreens (WBA) about a possible deal for its drug wholesaling unit. Reuters reports that the drug distributor would be willing to pay about $6 billion for the business.
GAINERS: CODX, PINS, SGEN, AVTR
DECLINERS: SBGI, LYFT, CHWY, TSN, TAP, CINF
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