>>> TradeGate Pre-MArket Indications

DAX:
  • Wirecard (WDI TH) +2.9%
    • Adyen Clinches Wirecard Clients During Online Shopping Boom
  • Allianz (ALV TH) -1.4%
  • Infineon (IFX TH) -1.4%
  • Daimler (DAI TH) -1.5%
  • Deutsche Bank (DBK TH) -1.6%
  • Continental AG (CON TH) -2%
MDAX:
  • Delivery Hero (DHER TH) +2.1%
    • Delivery Hero to Replace Wirecard in Germany’s DAX Index
  • TAG Immobilien (TEG TH) +1.2%
    • TAG Immobilien to Launch New Bond Offering, Invitation to Sell
    • TAG Immobilien Maintains Full Year FFO EU168 Mln to EU170 Mln
  • HelloFresh (HFG TH) -1.1%
  • Qiagen (QIA TH) -1.4%
  • Lufthansa (LHA TH) -1.5%
  • Evotec SE (EVT TH) -1.6%
    • Centogene, Evotec Expand Collaboration Into Gaucher Disease
  • Commerzbank (CBK TH) -2.2%
SDAX:
  • Steinhoff (SNH TH) +1.3%
  • LPKF (LPK TH) +0.2%
    • LPKF Will Replace Wirecard in TecDAX Index
  • ADVA Optical (ADV TH) -1%
  • Nordex (NDX1 TH) -2%
  • Deutsche PBB (PBB TH) -2.1%

>>> Europe : brokers Upgrades & Downgrades - 20th of August 2020

>>> Up
* Apax Global Alpha Raised to Buy at Jefferies
* Greencore Group Raised to Overweight at Barclays; PT 140 pence
* Maersk Raised to Buy at Handelsbanken; PT 11,000 kroner
* Naturgy Raised to Neutral at Goldman; PT 17 euros
* Royal Unibrew PT Raised to 740 kroner at Jefferies
* Siemens Gamesa Raised to Buy at SocGen; PT 28 euros
* SSE Raised to Buy at HSBC; PT 1,470 pence

>>> Down
* Alior Cut to Hold at SocGen; PT 17 zloty
* Instalco AB Cut to Hold at SEB Equities; PT 170 kronor
* Lanxess Cut to Add at Baader Helvea; PT 55 euros
* M&G Cut to Hold at Deutsche Bank; PT 195 pence
* New Work SE Cut to Sell at Berenberg; PT 220 euros
* Wacker Chemie Cut to Add at Baader Helvea; PT 92 euros

>>> Initiation
* ABB Rated New Sell at Berenberg; PT 20 Swiss francs
* Adevinta Rated New Equal-Weight at Morgan Stanley
* Brockhaus Capital Management Rated New Buy at Citi
* Brockhaus Capital Management Rated New Buy at Jefferies
* Cranswick Rated New Underweight at Barclays; PT 3,500 pence
* Eaton Corp Rated New Hold at Berenberg; PT $110
* Emerson Electric Rated New Buy at Berenberg; PT $83
* Games Workshop Rated New Buy at Panmure Gordon; PT 12,000 pence
* Legrand Rated New Buy at Berenberg; PT 80 euros
* Newron Pharma Rated New Add at Baader Helvea
* Qiagen Reinstated Overweight at JPMorgan; PT $60
* Rexel Rated New Buy at Berenberg; PT 15 euros
* Rockwell Automation Rated New Buy at Berenberg; PT $270
* Schneider Electric Rated New Buy at Berenberg; PT 120 euros
* Siemens Rated New Buy at Berenberg; PT 140 euros
* Thermo Fisher Reinstated Overweight at JPMorgan; PT $460

>>> Call
* Equinor’s Energy Transition Strategy Looks Most Compelling: RBC
* LVMH’s Portfolio is Built for Tough Times Like These, RBC Says
* M&G Cut at Deutsche Bank on ‘Less Engaging’ Underlying Picture

>>> What to look at today - 20th of August 2020

Asian stocks as well as U.S. and European futures came under pressure Thursday after Federal Reserve minutes signaled tempered optimism about second-half growth and as Sino-American tensions simmered. The dollar held on to a rebound.
Stocks fell in Japan, China and Australia, with Hong Kong and South Korean shares underperforming. A drop in S&P 500 futures signaled Wednesday’s weakness may continue after the Fed noted the health crisis would “weigh heavily” on economic activity and repeated its view that the recovery path depends on virus containment. The greenback built on gains that came after a five-day selloff. Gold pared an overnight fall. Treasury yields ticked lower.
US After Hours LB +5%, SNPS +4% gain while NDSN -2%, NVDA -1% decline following earnings/guidance

Nikkei -1.01% Hang Seng -2.14% CSI -1.27% Shanghai -1.18% Shenzen -1.13%

Eur$ 1.1840 CNH 6.9195 CNY 6.9240 JPY 106.10 GBP 1.3087 CHF 0.9149 RUB 73.3582 WTI4 42.49 -1%

S&P -0.58% NAsdaq -0.56% EuroStoxx -1.39% Ftse -1.25% Dax -1.41% SMI

Macro :
- U.S. Investor Bull-Bear Spread -12: AAII
- Europe’s Air Traffic Recovery Has Stalled: Eurocontrol Report

Keep an eye on :
- AC FP : Accor Considering Merger Plan With IHG Since June: Figaro
- ADE NO : Adevinta’s Ebay Deal Discounted by Market, Morgan Stanley Says
- ADYEN NA : Adyen Clinches Wirecard Clients During Online Shopping Boom
- ALO FP : Alstom’s Purchase of Bombardier Unit Gets Australia’s Clearance
- AUSS NO : Austevoll Seafood Second Quarter Ebit Misses Estimates
- BCVN SW : BC Vaudoise First Half Operating Profit CHF179.0 Mln, -14% Y/y
- B2H NO : B2Holding Second Quarter Net Income Misses Estimates
- BAMNB NA : BAM 1H Adjusted Pretax Loss EU133.6 Mln Vs. Loss EU27.2 Mln Y/y
- BOKA NA : Boskalis Second Quarter Order Book EU4.66 Bln
- EVD GY : CTS Eventim Second Quarter Revenue EU13.9 Mln, -97% Y/y
- CPI LN : Capita Rebounds With Focus on Education Software Unit Sale
- CLNKB SS : CELLINK Offering Prices 5.9m Shares at SEK160/Share
- DHER GY : Delivery Hero to Replace Wirecard in Germany’s DAX Index
- EDP PL : EDP Says Banco Comercial Holds 1.9% Stake After Capital Increase
- EVT GY : Centogene, Evotec Expand Collaboration Into Gaucher Disease
- FACC AV : FACC Sees Full Year Ebit Loss EU55 Mln to EU65 Mln
- HLNG NO : Hoegh LNG Second Quarter Ebitda Beats Highest Estimate
- IGR LN : IG Design CEO Sells 2,369,334 Shares, at 460p a Piece
- KIN BB : Kinepolis First Half Adjusted Ebitda EU16.4 Mln, -77% Y/y
- KOJAMO FH : Kojamo Second Quarter Revenue Misses Lowest Estimate
- KUD SW : Kudelski Sees Full Year Ebitda $45 Mln to $55 Mln
- LEAS BB : Leasinvest First Half EPRA EPS EU2.21 Vs. EU3.73 Y/y
- LSG NO : Leroy Second Quarter Adjusted Ebit Misses Lowest Estimate
- DRLCO DC : Maersk Drilling Gets One-Well $21.6 Mln Contract From Aker
- NETC DC : Netcompany Second Quarter Adjusted Ebita Beats Highest Estimate
- NLFSK DC : Nilfisk 2Q Revenue 3.2% Below Est; Outlook Still Suspended (1)
- NOS PL : NOS’s Controlling Partnership to Dissolve; Sonae Adds to Stake
- PRS NO : Prosafe Second Quarter Ebitda Loss $10.1 Mln
- SFZN SW : Siegfried First Half Sales Meet Estimates
- SWMA SS : Swedish Match Misrepresented Its Oral Nicotine, Lawmakers Say
- TEG GY : TAG Immobilien to Launch New Bond Offering, Invitation to Sell
- TEG GY : TAG Immobilien Maintains Full Year FFO EU168 Mln to EU170 Mln
- TIT IM : Telecom Italia to Keep Single-Grid Majority: CEO to Repubblica
- UQA AV : Uniqa Second Quarter Pretax Profit EU69.4 Mln
- WDI GY : Singapore Director Faces Two More Charges in Wirecard-Tied Case
- WDI GY : Delivery Hero to Replace Wirecard in Germany’s DAX Index

>>> US Close Dow -0.31% S&P -0.44% Nasdaq -0.57% Russell -0.47%

Closing Stock Market Summary

The S&P 500 declined 0.4% on Wednesday, as investors presumably took some profits after the benchmark index set a new all-time high and Apple (AAPL 462.83, +0.58, +0.1%) reached a $2 trillion market capitalization. The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.6%. The Russell 2000 gained 0.2%. 

All 11 S&P 500 sectors closed in negative territory as selling accelerated into the close. The real estate (-2.0%), energy (-1.2%), consumer staples (-0.7%), and consumer discretionary (-0.7%) sectors weighed on the market, while the financials sector (-0.1%) finished just below its flat line. 

The day started in a slow grind higher amid an absence of new macro catalysts, which was good for the positive momentum in Apple and, in effect, the major indices. The S&P 500 was only up 0.3% at its high, and a hair below the 3400 level, before turning negative shortly after the FOMC Minutes were released at 2:00 p.m. ET. 

Nothing surprising was stated in the minutes, but officials remained concerned about the economy and possibility of a protracted recovery; members discussing yield caps thought yield caps and targets would provide only modest benefits in the current environment. The latter acknowledgement supported the selling pressure in the Treasury market that left yields little changed. 

The 2-yr yield was flat at 0.14%, and the 10-yr yield was flat at 0.67%. The U.S. Dollar Index rebounded 0.8% to 92.99, while gold futures pulled back 2.1% to $1970.10/oz. WTI crude futures were flat at $42.90/bbl.

In retail earnings, Target (TGT 154.22, +17.32, +12.7%) and Lowe's (LOW 158.28, +0.37, +0.2%) reported strong earnings results, but Target's 12% gain set it apart. TJX Cos. (TJX 54.36, -3.09, -5.4%) fell 5% after reporting a larger-than-expected quarterly loss. 

Separately, Johnson & Johnson (JNJ 150.39, +0.30, +0.2%) agreed to acquire Momenta Pharma (MNTA 52.12, +21.31, +69.2%) for about $6.5 billion in cash, or a 70% premium to yesterday's closing price.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 3.3% following a 6.8% increase in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for July, and the Philadelphia Fed Index for August on Thursday.

  • Nasdaq Composite +24.2% YTD
  • S&P 500 +4.5% YTD
  • Dow Jones Industrial Average -3.0% YTD
  • Russell 2000 -5.8% YTD

>>> US After Hours Summary: LB +5%, SNPS +4% gain while NDSN -2%,

After Hours Summary: LB +5%, SNPS +4% gain while NDSN -2%, NVDA -1% decline following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: LB +5.1%, SNPS +4.2% (also appointed Sassine Ghazi as COO)

Companies trading higher in after hours in reaction to news: AMC +7.2% (following CEO interview on CNBC), INTC +3.7% (initiated $10 bln accelerated share repurchase agreements), IGT +2.9% (announced long-term sports betting agreement with Boyd Gaming [BYD]), ORC +1.8% (raised monthly dividend), WGO +1.6% (announced 9% dividend increase; lightly traded)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NDSN -2.0%, NVDA -1.1%

Companies trading lower in after hours in reaction to news: AVTR -3.8% (announced secondary offering of 38.5 mln common shares), PRPL -1.9% (announced retirements of co-founders)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • VIPS -12.7%, ATGE -10.5%, JKHY -6%, CREE -4.6%, ALC -4.6%, A -2.9%

Other news:

  • SRNE -10.7% (terminates CFO immediately)
  • SABR -8.7% (stock offering)
  • ALBO -7.4% (clinical trial results did not achieve proof-of-concept for other key NASH measures)
  • PLYM -6.6% (upsizes and prices offering of 7,500,000 shares of its common stock at $12.85 per share)
  • KMDA -5.4% (Kamada and Kedrion Biopharma announce results from a U.S. post-marketing pediatric trial of KEDRAB)
  • GILD -4.7% (receives Complete Response Letter from FDA for Filgotinib)
  • BIIB -1.3% (FDA approves Mylan's generic version of BIIB's Tecfidera)

Analyst comments:

  • CREE -4.6% (downgraded to Mkt Perform from Mkt Outperform at JMP Securities)
  • KSS -1.5% (downgraded to Underperform from Hold at Gordon Haskett)
  • ETRN -1.4% (downgraded to Underperform from Neutral at BofA Securities)
  • PPL -0.5% (downgraded to Neutral from Buy at Mizuho)