>>> What to look at today - 27th of March 2020

U.S. equity futures dropped after the first three-day rally in American stocks since mid-February, while Treasuries advanced as investors take stock of strengthening stimulus efforts across the globe.
S&P 500 futures retreated after the index surged over 6% Thursday. European contracts fluctuated. The dollar headed for its biggest weekly fall since 2009, with central banks sharply boosting the provision of greenbacks. Asia-Pacific equities had a mixed showing, ranging from a 4%-plus jump in Tokyo to an over 4% slide in Sydney. India’s bonds and currency jumped after monetary policy makers slashed rates in an emergency move. The yen strengthened.
US After Hours SPWH +14.1%, GME +13.4%, KBH +9.3% up on earnings; PRGS -8.2% and LULU -2.3% down on earnings

Nikkei +2.17% Hang Seng +0.45% CSI +0.82% Shqnghqi +0.72% Shenzen +0.31%

Eur$1.1063 CNH 7.0886 CNY 7.0560 JPY 108.40 GBP 1.2273 CHF 0.9603 TRY 6.4095 RUB 77.30 WTI$ 23.08 +2.12%

S&P -0.76% Nasdaq -1% EuroStoxx -0.54@ Dax -0.67@ FTSE -1.15% SMI+0.1%

Macro :
- EU Leaders Struggle to Find Way Forward With Economy Tanking (1)
- Mnuchin: Aim to Keep Markets Open, May Consider Shorter Hours
- U.K. Offers Self-Employed $11 Billion in Coronavirus Cash
- European Airlines Win Relief on Airport Slots Amid Travel Slump
- Germany Seeks to Massively Expand Coronavirus Testing: Bild
- The Airlines Most at Risk as Virus Strikes $252 Billion Blow (3)

Keep an eye on :
- ADS GY : Lululemon Fourth Quarter EPS Beats Estimates, Slips After Holding Off on Offering Full-Year Forecast
- ADP FP : French Constitutional Court Confirms ADP Referendum Failure: AFP
- AENA SM : Aena Scraps 2020 Business Forecasts And Traffic Estimates
- AI FP : Air Liquide’s Sale of Disinfectant Unit Hit by Tighter Financing
- AI FP : Air Liquide Increases Production of Essential Medical Gases
- ATMA LN : Atlas Mara Says Still in Discussion With Equity Group
- BCP PL : Banco Comercial Cancels 2019 Dividend Payment Due to Pandemic
- BVI FP : Bureau Veritas Pulls 2020 Guidance, Can’t Quantify Virus Impact
- CABK SM : Abanca Acquires 40% in Nueva Pescanova for EU115M: Confidencial
- CABK SM : *CAIXABANK TO REDUCE DIVIDEND TO EU0.07/SHARE FROM EU0.15/SHARE
- DAI GY : Daimler Seeking Over $11 Billion Credit Line to Navigate Crisis
- DBK GY : Deutsche Bank Says It Will Pause Job Cuts Amid Pandemic
- ERF FP : Eurofins Technologies Launches Testing Solutions for the Detection of SARS-CoV-2 on Environmental Surfaces
- EL FP : EssilorLuxottica Pulls 2020 Forecast, Closes French Sites
- FCA IM : Carmakers Stir Workers’ Ire With Plan to Restart Plants in April
- FCT IM : Fincantieri to Extend Suspension of Production
- FRA GY : Frankfurt Airport to Feel Pandemic Into 2021, CEO Tells FAZ
- GRNG SS : Gränges Withdraws Dividend Proposal, Postpones Annual Meeting
- GLO FP : GL Events Scraps Dividend, Cuts Spending on Coronavirus Crisis
- HMB SS : H&M Seeks to Break U.K. Retail Leases if No Sales Rebound: FT
- HAL NA : HAL Full Year Net Income EU666 Mln; Shares Rise 3.1%
- HWDN LN ; Howden Joinery Suspends Buyback, Withdraws Final Div for 2019
- HUH1V FH : Huhtamaki Withdraws Outlook for 2020, Changes Payout Proposal
- IRE IM : Iren Starts New Tranche of Share Buyback for Up to EU25m
- KGX GY ! Kion Group Retracts 2020 Outlook, Proposes Minimum Dividend
- KCR FH : Konecranes Withdraws 2020 Guidance Amid ‘Deteriorating’ Demand
- LHN SW : LafargeHolcim Pulls 2020 Guidance, Confirms Dividend Proposal
- MRW LN : Wm Morrison Has Two Directors Quit Over Governance Concerns: FT
- NMC LN : NMC Chairman Tompkins Steps Down; Replaced by Faisal Belhoul
- TYRES FH : Nokian Renkaat Withdraws Guidance, Changes Payout Proposal
- PSM GY : ProSiebenSat.1 Media CFO Beaujean Replaces Conze as CEO
- PUB FP : Publicis Won’t Give Guidance Until Further Notice
- QIA GY : Qiagen Rises as CEO Discusses Shipping Virus Test Kits on CNBC
- RTN LN ; Restaurant Group’s Chiquito Chain Set for Administration: Times
- SAN FP : Sanofi, Translate Bio to Collaborate on Covid-19 Vaccine
- SAP GY : SAP, Software AG, Wirecard Would Make Attractive Targets: DZ
- SOW GY : SAP, Software AG, Wirecard Would Make Attractive Targets: DZ (1)
- SINCH SS : Sinch to Offer 4m Shrs
- AM3D GY : SLM Solutions Issues Convertible Bonds to Increase Liquidity
- SOF BB : Sofina Full Year Net Income EU1.20 Bln, +39% Y/y
- TC1 GY : Tele Columbus FY Normalized Ebitda EU239.5 Mln, +1.5% Y/y
- TIETO FH : TietoEvry Withdraws Guidance for 2020 Due to Coronavirus
- TRYG DC :
- UCG IM : UniCredit Continuing Union Talks Over 6,000 Planned Job Cuts
- RIN FP : Vilmorin Suspends 2019-2020 Objectives Due to Coronavirus
- VOW3 GY : VW CEO Says Production Shutdown Zaps $2.2 Billion Per Week
- VOW3 GY : VW Outlook to Negative by S&P
- WeDoctor IPO : WeDoctor Is Said to Pick JPMorgan, Credit Suisse, CMB for IPO
- WDI GY : SAP, Software AG, Wirecard Would Make Attractive Targets: DZ
- ZEQL DC : Zealand Pharma Reports Private Placement, Directed Share Issue

>>> Europe : Brokers Upgrades & Downgrades - 27th of March 2020

>>> Up
* AB Foods Raised to Buy at Berenberg; PT 2,180 pence
* Acea Raised to Buy at Equita; PT 17.50 euros
* Ahold Delhaize Raised to Outperform at Bernstein
* Ahold Delhaize Raised to Hold at Berenberg; PT 19.60 euros
* Balfour Beatty Raised to Buy at Jefferies; PT 260 pence
* Bravida Raised to Buy at Handelsbanken; PT 80 kronor
* Caverion Oyj Raised to Buy at SEB Equities; PT 6.40 euros
* Credito Emiliano Raised to Buy at Equita; PT 5.40 euros
* CRH Raised to Overweight at Morgan Stanley; PT 27 euros
* Deutsche Telekom Raised to Hold at Berenberg
* Diploma Raised to Overweight at JPMorgan; PT 1,760 pence
* DSM Raised to Add at Baader Helvea; PT 107 euros
* Elisa Oyj Raised to Buy at Berenberg
* Ericsson Raised to Buy at Handelsbanken; PT 90 kronor
* Eutelsat Raised to Buy at HSBC; PT 12.50 euros
* Fraport Raised to Hold at Berenberg; PT 47 euros
* GrandVision Raised to Buy at Berenberg; PT 28.42 euros
* H&M Raised to Hold at Berenberg; PT 120 kronor
* Hera Raised to Buy at Equita; PT 3.80 euros
* Inditex Raised to Hold at Berenberg; PT 22 euros
* Ingenico Group Raised to Buy at HSBC; PT 132 euros
* Intesa Sanpaolo Raised to Buy at Equita; PT 2.40 euros
* Kone Oyj Raised to Hold at Berenberg; PT 45 euros
* Maersk Raised to Neutral at JPMorgan; PT 5,778 kroner
* Merck KGaA Raised to Buy at Equita; PT 130 euros
* Norma Raised to Buy at Pareto Securities; PT 24 euros
* Poste Italiane Raised to Buy at Equita; PT 10.70 euros
* Recordati Raised to Buy at Equita; PT 41.50 euros
* Reply Raised to Buy at Equita; PT 64 euros
* Terna Raised to Buy at Equita; PT 6.30 euros
* Valmet Oyj Raised to Buy at SEB Equities; PT 20 euros
* Wallenius Wilhelmsen Raised to Buy at Pareto Securities
* Wizz Air Raised to Buy at Berenberg; PT 3,200 pence
* Yara Raised to Buy at Equita; PT 450 kroner
* Zurich Airport Raised to Overweight at Barclays
* Zurich Airport Raised to Buy at Berenberg; PT 148 Swiss francs

>>> Down
* Aeroports de Paris Cut to Underweight at Barclays; PT 85 euros
* Air France-KLM Cut to Hold at Berenberg; PT 7 euros
* BASF Cut to Add at AlphaValue
* Bureau Veritas Cut to Hold at Deutsche Bank; PT 19 euros
* Citycon Oyj Cut to Sell at SEB Equities; PT 4.90 euros
* Dustin Cut to Hold at Handelsbanken; PT 50 kronor
* Fila Cut to Hold at Equita; PT 10.30 euros
* Hamburger Hafen Cut to Reduce at AlphaValue
* Henkel Cut to Reduce at AlphaValue
* Intertek Cut to Hold at Deutsche Bank; PT 4,900 pence
* ITV Cut to Neutral at Exane; PT 108 pence
* Kier Cut to Underperform at Jefferies; PT 70 pence
* Kuehne + Nagel Cut to Neutral at JPMorgan
* Lufthansa Cut to Hold at Berenberg; PT 12 euros
* M6 Cut to Neutral at Exane; PT 12 euros
* Nexi Cut to Hold at HSBC; PT 13 euros
* Openjobmetis Cut to Hold at Equita; PT 7.10 euros
* Repsol Cut to Hold at Equita; PT 11.50 euros
* SGS Cut to Hold at Deutsche Bank; PT 2,250 Swiss francs
* Solvay Cut to Hold at Equita; PT 70 euros
* Tele2 Cut to Hold at Berenberg
* Telia Cut to Sell at Berenberg
* TF1 Cut to Neutral at Exane; PT 6.50 euros
* Umicore Cut to Hold at Equita; PT 42 euros
* UniCredit Cut to Hold at Equita; PT 14.30 euros
* Vodafone Cut to Hold at Berenberg
* Vonovia Cut to Reduce at AlphaValue

>>> Initiation
* S4 Capital Rated New Buy at Jefferies; PT 200 pence
* Vetoquinol Reinstated Strong Buy at Portzamparc; PT 60 euros

>>> Call
* Ericsson Raised; Virus Hasn´t Stopped 5G Rollout, SHB Says

Reuters : Number of coronavirus cases in Germany rises to 42,288: RKI

Number of coronavirus cases in Germany rises to 42,288: RKI

BERLIN (Reuters) - The number of confirmed cases of coronavirus in Germany has risen to 42,288 and 253 people have died of the disease, statistics from the Robert Koch Institute for infectious diseases showed on Friday.

Cases rose by 5,780 compared with the previous day while the death toll climbed by 55, the tally showed.

>>> US After Hours Summary: SPWH +14.1%, GME +13.4%, KBH +9.3% up

After Hours Summary: SPWH +14.1%, GME +13.4%, KBH +9.3% up on earnings; PRGS -8.2% and LULU -2.3% down on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SPWH +14.1%, GME +13.4%, KBH +9.3%, SMG +4.9% (guides MarQ revs above consensus; seeing good demand for edible gardening, professional growing and pest control), HTHT +3%, JEF +0.5%

Companies trading higher in after hours in reaction to news: SAVE +4.1% (provides COVID-19 update; also identified a material weakness in internal controls), HTZ +3.5% (provides COVID-19 business update), UAL +3.4% (details credit agreement), UAA +2.8% (provides COVID-19 financing update), JCAP +1.2% (provides liquidity and business updates; increases credit facility), RDFN +1.1% (Chairman sends letter to shareholders re liquidity and current inventory), UTX +1.1% (DOJ announces divestitures needed to allow merger with RTN), GM +1% (informs employees of salary cuts/deferrals -- CNBC; also, Reuters report that co will extend a shutdown of its North American plants), RTN +1% (DOJ announces divestitures needed to allow merger with UTX), HLT +0.1% (suspends share buybacks and dividend payments)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: PRGS -8.2%, AFYA -4.3%, LULU -2.3%, IGMS -2.3%, SAIC -0.9%, OXM -0.7%

Companies trading lower in after hours in reaction to news: AI -19.9% (provides update; will not declare Q1 common dividend), BGCP -14.1% (provides operational update in light of COVID-19; reduces dividend), VMW -3.7% (withdraws guidance), GPS -1.5% (withdraws FY20 guidance, suspends dividend for remainder of FY20), EQT -1% (suspends dividend), DELL -0.4% (withdraws full year guidance), TEL -0.2% (notes potential material impact from COVID-19), HRB -0.1% (provides update on COVID-19 impact; comments on impact of tax filing deadline extensions)

WSJ ; Dow Escapes Bear Market With a 6% Rally

Dow Escapes Bear Market With a 6% Rally
The blue-chip index is now up 20% from its low, qualifying as a new bull market


U.S. stocks soared higher Thursday, even after data showed the ranks of unemployed Americans surged in the past week, signaling that investors remain hopeful that a $2 trillion stimulus package can help save the country’s weakening economy.

The Dow Jones Industrial Average climbed 6.2%, putting the blue-chip index more than 20% above its recent low, a move that starts a new bull market and marks the shortest bear market in the index’s history. The S&P 500 gained 6.1%, and tech-heavy Nasdaq Composite added 5.6%.
Investors had been jittery leading up to the release of the latest unemployment benefits data, unsure of how severely the coronavirus pandemic had ripped through the U.S. labor force. Futures tied to U.S. stocks had declined steeply earlier in the morning, yet pared their losses after it was announced that an unprecedented 3.28 million workers filed for unemployment benefits—five times the previous record high.

The surge in all three indexes after the opening bell marked the third time this week that U.S. stocks opened higher, following a month of steep losses and wild turbulence as the fallout from coronavirus worsened. And even as Thursday’s jobless claims revealed that the economic toll of the outbreak is as severe as anticipated, some investors were already looking ahead to the ultimate passage of the largest fiscal stimulus package in the U.S. in recent memory.

The Senate on Wednesday approved the relief plan, which would provide direct payments to Americans and loans to large and small companies, among other measures. The House is expected to consider the bill Friday. If approved, it would head to President Trump.

“Investors believe data like today will make it more likely that the House will pass the stimulus bill,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab & Co. “The deeper and the worse the numbers are in the near term, the more possibility there is for a [fiscal] response, which powers the rebound on the other side.”

If the Dow industrials are to reach a bull market Thursday, it would occur just three days after the index reached its recent low. The S&P 500 and the Nasdaq still remain far from a possible bull market.

Gains throughout Thursday morning were broad, with all 11 sectors of the S&P 500 up for the day. Dow heavyweight Boeing Com pany surged 13% on news that the aerospace giant could receive billions of dollars of assistance from the stimulus deal.

The S&P 500’s energy sector also continued to see sharp gains Thursday. Marathon Oil surged 11%, Exxon Mobil jumped 2.8%, and Chevron gained 8.5%. Stocks in the sector had been particularly battered by weeks of market downturn, pushed lower, in part, by evidence that the pandemic is leading to an unprecedented decline in energy demand.

Still, oil prices slid Thursday. Brent crude, the global gauge of oil prices, dropped 2.7% to $29.19.

Even as investors looked ahead to the stimulus bill, there’s no guarantee that it will be enough to blunt the economic fallout from the coronavirus outbreak. Nearly 70,000 people have been infected by the virus, and more than 1,000 have died. The U.S. now trails only China and Italy in the number of confirmed cases, even as emergency measures to contain the outbreak has shuttered businesses and sidelined workers.
“The reality is that there’s still a lot of uncertainty to the degree to which the virus disrupts economic activity. Markets are digesting that,’’ said Anthony Rayner, a multiasset fund manager at Premier Miton. “There’s almost a point where the more policy makers do, whether it’s monetary or fiscal, the more people panic in a way.”

Federal Reserve Chairman Jerome Powell said Thursday morning that he expected economic activity to decline “pretty substantially” in the second quarter, following estimates from economists last week that U.S. GDP could shrink during the period far worse than it did in the Great Recession.

The central bank is taking unprecedented action to help ensure economic activity can resume as soon as the coronavirus pandemic is under control, Mr. Powell added in a rare television interview on NBC’s Today show.

Still, some market observers cautioned Thursday that the U.S. stocks rally could likely be temporary—especially as more economic data emerge. Analysts also expect a sharp decline in corporate earnings in the month ahead.

“The market is showing a little bit of relief, but frankly, that doesn’t mean that it’s going to persist,” said Solita Marcelli, deputy chief investment officer for the Americas at UBS Global Wealth Management. “We still have a lot of things that are unknown.”

Investors moved into government bonds Thursday, causing the benchmark on the 10-year U.S. Treasury to retreat to 0.826%, from 0.854% Wednesday.

Outside of the U.S., the pan-continental Stoxx Europe 600 rallied 2.6% after declining for part of the day. The European Central Bank “broke new ground,” said Florian Hense, an economist at Berenberg Bank in a note, after it gave itself more flexibility on its additional €750 billion ($821 billion) bond-purchase program.

Meanwhile, most major stock markets in the Asia-Pacific region closed lower. Japan’s Nikkei 225 lost 4.5%. Singapore’s FTSE Straits Times Index shed 1% after the country forecast that the economy could contract by up to 4% in 2020 in its first full-year recession since 2001.

>>> US Close Dow +6.38% S&P +6.24% Nasdaq +5.60% Russell +6.30%

Closing Stock Market Summary

The S&P 500 extended its weekly rally by 6.2% on Thursday after the Senate approved the $2 trillion fiscal stimulus package for the economy, which saw a record surge in weekly jobless claims. The Dow Jones Industrial Average rose 6.4%, the Nasdaq Composite rose 5.6%, and the Russell 2000 rose 6.3%. 

Initial claims for the week ending March 21 increased by 3.001 million to 3.283 million (Briefing.com consensus 525,000), which was above most expectations but also unsurprising given the slew of economic shutdowns aimed at slowing the rate of coronavirus infections. For the market, and Congress, it quantified how bad the situation has been for American workers.  

House Speaker Pelosi (D-CA) said the stimulus bill will be passed tomorrow by voice vote with "strong bipartisan support" despite some speculation that objecting members would request a roll call vote, which would further delay its passage. The impending fiscal relief, then, provided investors some reassurance while doing some quarter-end rebalancing. 

The S&P 500 closed at session highs and up 20.0% from its Monday intraday low. All 11 S&P 500 sectors posted strong gains today between 4.3% (consumer discretionary) and 8.4% (utilities). Oil prices ($22.60, -1.93, -7.9%) were unable to catch a bid, though, partly due the oil industry not being included in this stimulus bill.   

Prior to the open, Fed Chair Powell reiterated in an NBC "Today Show" interview that the Fed isn't going run out of ammunition and will continue to provide credit to places that need it. The reminder that the Fed will be on the market's side in the foreseeable future was another positive consideration for the market. 

In corporate news, semiconductor stocks drew support from Micron's (MU 44.79, +2.29, +5.4%) encouraging quarterly results and guidance. Henry Schein (HSIC 53.56, +3.53, +7.1%) was among the latest companies contributing to the fight against COVID-19 with an antibody rapid blood test for health care professionals.

U.S. Treasuries finished the session on a higher note, as the record number of unemployment claims reminded bond investors of the negative macro environment. The 2-yr yield declined four basis points to 0.26%, and the 10-yr yield declined five basis points to 0.81%. The U.S. Dollar Index fell back below 100.00, finishing 1.6% lower at 99.43. 

Reviewing Thursday's economic data:

  • Initial claims for the week ending March 21 increased by 3,001,000 to 3,283,000. That is the highest seasonally adjusted number for initial claims by many miles. The prior record was 695,000 in October 1982. Continuing claims for the week ending March 14 increased by 101,000 to 1,803,000, but that number will skyrocket next week as well.
    • The key takeaway from the report is that it underscores for everyone how much worse the current economic situation is than anything else experienced in this modern age. It is a stark reflection that this time is different.
  • The third estimate for Q4 GDP showed a 2.1% annualized rate of growth that was in-line with the second estimate and the consensus estimate. Similarly, the GDP Price Deflator was left unchanged at 1.3%, as expected.
    • The key takeaway from the report is that it is inconsequential at this juncture. That would be the effective takeaway in normal times (we're less than a week away from the end of Q1), but things are no longer normal as the first quarter is ending with the U.S. economy in shutdown mode to help stop the spread of COVID-19.
  • The advance goods trade deficit totaled $59.89 bln in February after a $65.9 bln deficit in January. Advance retail inventories decreased 0.3% in February after decreasing 0.1% in January. Advance wholesale inventories decreased 0.5% in February after decreasing 0.5% in January.

Looking ahead, investors will receive Personal Income and Spending for February, PCE Prices for February, and the final University of Michigan Index of Consumer Sentiment for March on Friday.

  • Nasdaq Composite: -13.1%
  • S&P 500: -18.6%
  • Dow Jones Industrial Average: -21.0%
  • Russell 2000: -29.3