>>> What to look at today - 6th of February 2020

Global stocks climbed back within 1% of an all-time high, and bond yields rose, on optimism the global economy will weather the hit from the coronavirus, sentiment that was strengthened Thursday by China’s plans for tariff cuts on U.S. imports.
An MSCI Inc. index of world stocks headed for a fourth straight day of gains, with Asian benchmarks including Japan, Hong Kong, South Korea and Australia up 2% or more. U.S. and European futures climbed. The yuan extended gains after China said it will lower levies on $75 billion of U.S. goods next week. Oil climbed above $52 a barrel in New York, while 10-year Treasury yields approached 1.68%.
US After Hours ELF +8.5%, SONO +8.2% lead earnings gainers; FNKO down sharply on guidance, CDAY, PTON and TWLO also weak on earnings

Nikkei +2.38% Hang Seng +2.57% CSI +1.55% Shanghai +1.48% Shenzen +2.52%

Eur$ 1.0999 CNH 6.9711 CNY 6.9708 JPY 109.87 GBP 1.2984 CHF 0.9735 RUB 62.75 TRY 5.9834 WTI$ 51.96 +2.38%

S&P +0.42% EuroStoxx +0.56% FTSE +0.63% Dax +0.63% SMI +0.60%

Macro :
- China Coronavirus Death Toll Rises to at Least 560 After Feb. 5
- U.S. Investor Bull-Bear Spread -1.35: AAII
- Madoff Asks for Early Release, Claiming He’s Terminally Ill
- Private Equity’s $5 Trillion Gold Rush Reels In More Outsiders

Keep an eye on :
- ABI BB : Anheuser-Busch InBev Says Fernando Tennenbaum Named CFO
- AGN NA : Transamerica Confirms Sale of Iconic San Francisco Tower to Shvo
- AIR FP : Airbus Monitoring Suppliers for Boeing 737 Max-Related Fallout
- ALD FP : ALD Intends to Name Tim Albertsen as New CEO Effective March 27
- MT NA : ArcelorMittal More Optimistic on Steel Demand Outlook for 2020
- ATEA NO : Atea Fourth Quarter Revenue Misses Lowest Estimate
- ATL IM : Italy Doesn’t Propose Changes to Toll-Road Decree Measures
- AXA NO : Axactor Offering Prices 30m Shares at NOK17.25/Share
- AXFO SS : Axfood Fourth Quarter Net Sales Meet Estimates
- BPE IM : BPER Banca FY Dividend Per Share Beats Est.; Shares Rise 2.2%
- ALCAR FP : Carmat Gets FDA Approval for Artificial Heart Feasibility Study
- CO FP : Beyond Meat to Offer Products in France via Casino Supermarkets
- CTY1S FH : Citycon Takes Control of Norway Retail Portfolio for EU145M
- DAE SW : Daetwyler Sees 2020 Ebit Margin Above 15%
- DFDS DC : DFDS 2020 Ebitda Forecast Misses Average Estimates
- DSY FP : Dassault Systemes FY 1Q Non-IFRS EPS Outlook Below Estimate
- DNB NO : DNB Fourth Quarter Net Income Beats Estimates
- DNO NO : DNO Fourth Quarter Ebitda 4.4% Below Estimates
- EQNR NO : Equinor Fourth Quarter Adjusted Net 1.7% Above Estimates
- FORTUM FH : Fortum to Assess Options for Polish, Baltic, Finnish Heating Ops
- GPRO US : GoPro 2020 Adj EPS View Midpoint Misses Est.; Shares Fall 10.6%
- HUSQB SS : Husqvarna Recovers After Results as Bullish Outlook Reassures
- IBE SM : Iberdrola Says Siemens Gamesa Stake Sale Generates EU485M Gain
- IDIA SW : Idorsia Full Year Operating Loss Narrower Than Estimates
- INGA NA : ING 4Q Underlying Pretax Profit Misses Lowest Est.
- I US : Intelsat Said to Weigh Chapter 11 Among Options on C-Band Plan, -13%
- INTER NA : Intertrust 2020 Underlying Revenue Forecast Beats Estimates
- WG/ LN : John Wood Group to Sell Industrial Services Business for $104M
- LI FP : Klepierre FY Net Current Cash Flow Climbs 6.7%; Sees 2020 Rise
- KCR FH : Konecranes Oyj Fourth Quarter EPS Misses Estimates
- LIAB SS : Lindab Fourth Quarter Net Sales 2.8% Above Estimates
- LUN DC : Lundbeck 2020 Revenue Forecast Midpoint Meets Estimates
- MVC SM : Billionaire Slim Acquires 3% Stake in Spain’s Metrovacesa
- NETC DC : Netcompany Reports FY Revenue, Ebita In Line With Estimates
- NOKIA FH : Nokia Results Beat Provides Some Relief to Tested Investors
- NDA SS : Nordea CEO: We’ve Now Completed Main Organizational Changes
- NSKOG NO : Norske Skog Fourth Quarter Ebitda NOK560 Mln
- NMC LN : NMC Health Founder Looking to Buy Out His Emirati Partners: FT
- OMV AV : OMV 4Q Clean CCS Misses Estimates; Sees 500 Kboe/d in 2020
- OBEL BB : Orange Belgium 2020 Adjusted Ebitda View Midpoint Meets Est.
- ORK NO : Orkla Fourth Quarter Adjusted Ebit Matches Estimates
- OSR GY : Osram 1Q Ebitda Exceeds Expectations, Confirms FY Forecast, Osram CFO Says Some Manufacturing Facilties in China Shut Down
- POG LN : Trotsenko Sells Stake in Petropavlovsk to Uzhuralzoloto
- PRS NO : Prosafe Fourth Quarter Revenue Misses Lowest Estimate
- PUB FP : Ad Group Publicis Keeps Guidance in Sign That Worst May Be Over
- RAA GY : Rational FY Preliminary Rev. Meets Estimate, Sees 2020 Growth
- SCR FP : Scor Says 4Q Natural Catastrophes Cost EU343M
- STLN SW : Schmolz Offers to Buy Back EU350m Senior Secured Notes
- SCMN SW : Swisscom Full Year Ebitda 1.2% Above Estimates
- GLE FP : SocGen Pledges Higher Returns After Signaling it May Miss Target
- SONO US : Sonos Climbs 10% After First Quarter EPS Beats Highest Estimate
- GLE FP : SocGen Pledges Higher Returns After Signaling It May Miss Target
- TLX GY : Talanx Prelim FY Ebit EU2.40b vs EU2b y/y; Outlook Confirmed (1)
- TGYM IM : Technogym Sells 10m Shares at EU11.45 in Accelerated Bookbuild
- TSLA US : Tesla Mania Cools With Record 21% Plunge, Snapping 60% Rally
- TOBII SS : Tobii Fourth Quarter Operating Loss SEK21 Mln
- FP FP : Total 4Q Adj. Net Income Beats Estimates at $3.17B
- UCG IM : UniCredit Fourth Quarter Loss Narrower Than Estimates
- UCG IM : UniCredit to Place 12% of Yapi Kredi Existing Shr Capital, Yapi Kredi Orders Below 2.88 Liras Per Share Risk Missing: Terms
- VOE AV : Voestalpine Third Quarter Ebit Loss Narrower Than Estimates
- VOLVB SS : Volvo Cars Increased FY 2019 Operating Profit by 0.8% Y/y

>>> Europe : Brokers Upgrades & Downgrades - 6th of February 202

>>> Up
* Melexis PT Raised to 85 euros from 74 euros at Liberum
* Novo Nordisk PT Raised to 500 kroner at Intron Health
* OTP Bank Raised to Buy at VTB Capital; PT 17,400 forint

>>> Down
* CMC Markets Cut to Add at Peel Hunt
* Griffin Mining Cut to Sell at Panmure Gordon; PT 47 pence
* Hexagon Cut to Hold at ABG; PT 560 kronor
* Indutrade Cut to Sell at ABG; PT 305 kronor
* Ingenico Group Cut to Hold at Berenberg
* JLEN LN Cut to Underperform at Jefferies
* SIG Combibloc Cut to Hold at MainFirst; PT 16 Swiss francs

>>> Initiation
* Hapag-Lloyd Rated New Underweight at JPMorgan; PT 36.41 euros
* Mithra Pharma Rated New Buy at Berenberg; PT 40 euros

>>> Call
* Klepierre Results In Line; Citi Keeps Structural Headwind View
* Mithra Pharma Given Street-High PT as Berenberg Initiates at Buy
* Nokia Shares Seen Gaining by Handelsbanken After ‘Solid’ Quarter

>>> After Hours Summary: ELF +8.5%, SONO +8.2% lead earnings gainer

After Hours Summary: ELF +8.5%, SONO +8.2% lead earnings gainers; FNKO down sharply on guidance, CDAY, PTON and TWLO also weak on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ELF +8.5%, SONO +8.2%, RAMP +6.3%, QNST +6.2%, ZNGA +4.7%, GLUU +4.5%, FORM +4.2%, NUAN +4%, ECHO +3.8%, CSGS +3.4%, ENSG +3.3%, FOXA +2.9%, IRBT +2.8%, SAVE +2.4%, COHR +2.3%, MC +2.3%, LNC +2%, CTSH +1.6%, CUZ +1.5%, TTMI +0.3%, CUB +0.1%, OHI +0.1%, RDN +0.1%, SU +0.1%, TBI +0.1%

Companies trading higher in after hours in reaction to news: ARWR +5.7% (reports interim clinical results from Phase 1/2a studies of ARO-APOC3 and ARO-ANG3; also reports earnings), JJSF +1.7% (acquires assets of BAMA ICEE), BCEL +1.2% (strategic collaboration with Merck)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FNKO -35.4% (guides lower), GPRO -13.5%, ENS -12.8%, ANGI -10.7%, MXL -10.4%, CDAY -9.4%, UHAL -9%, PTON -8.3%, MTRX -8.1%, FEYE -5%, TWO -5%, TWLO -4.8%, PAYC -3.9%, NTGR -3.5%, YUMC -2.9%, ORLY -2.8%, ICHR -1.9%, LCI -1.7%, QCOM -1.7%, GRUB -1.4%, MET -1.4%, IAC -1.3%, DHT -0.9%

Companies trading lower in after hours in reaction to news: AGTC -10.8% (stock offering)

>>> Closing Stock Market Summary

Closing Stock Market Summary

The S&P 500 rose 1.1% on Wednesday to recoup all losses related to the coronavirus and close at a record high. The Dow Jones Industrial Average (+1.7%) and Russell 2000 (+1.5%) outperformed the benchmark index. The Nasdaq Composite (+0.4%) underperformed in a rare outing, although it still closed at a new high. 

Ten of the 11 S&P 500 sectors contributed to the advance, especially the energy sector (+3.8%) after weeks of underperformance and a nice rebound in oil prices ($50.85, +1.24, +2.5%). The real estate sector (-0.1%) was the lone holdout today. 

The bullish price action was driven mostly by optimism, particularly tied to the prevailing view that the economy is fine and any negative impact resulting from the coronavirus will be minimal. Aiding this sentiment were reports that progress is being made in developing a vaccine and economic data depicting a healthy labor market and services sector. 

Specifically, the ISM Non-Manufacturing Index for January increased to 55.5% (Briefing.com consensus 55.0%) from 54.9% in December. The ADP Employment Change report showed an estimated 291,000 jobs were added to private-sector payrolls in January (Briefing.com consensus 160,000).

That's not to say that the coronavirus is behind the market, though. For instance, Walt Disney (DIS 141.37, -3.36, -2.3%), Nike (NKE 100.54, -0.84, -0.8%), and Capri Holdings (CPRI 33.31, +2.55, +8.3%) formally stated that the coronavirus will have a negative impact on financial results. The market is simply viewing the situation through a positive lens. 

In earnings news, Merck (MRK 85.83, -2.53, -2.9%) fell despite beating profit estimates. Ford Motor (F 8.31, -0.87, -9.5%) and General Motors (GM 35.03, +0.66, +1.9%) trended in opposite directions following their results

Other story stocks included Tesla (TSLA 734.70, -152.36, -17.2%), which pulled back from its parabolic rise, and Biogen (BIIB 332.87, +49.58, +17.5%), which was awarded a favorable patent decision for a multiple sclerosis drug.

U.S. Treasuries succumbed to selling interest for the second straight session. The 2-yr yield increased four basis points to 1.45%, and the 10-yr yield increased five basis points to 1.65%. The U.S. Dollar Index increased 0.3% to 98.28. 

Reviewing Wednesday's economic data:

  • The ISM Non-Manufacturing Index for January registered a 55.5% reading (consensus 55.0%) versus a downwardly revised 54.9% (from 55.0%) in December. The January reading eclipsed the December reading as the fastest pace of expansion since August 2019.
    • The key takeaway from the report is that it marked the second straight month of accelerating activity in the services sector, which is an encouraging sign that the U.S. economic expansion is poised to continue.
  • The Trade Balance report for December showed a widening in the deficit to $48.9 billion (consensus -$48.2 billion) from a downwardly revised -$43.7 billion (from -$43.1 billion). Exports were $1.6 billion more than November exports while imports were $6.8 billion more than November imports.
    • The key takeaway from the report is that the goods deficit with China decreased by $73.9 billion in 2019 to $345.6 billion, as tariff measures contributed to a $13.5 billion decrease in exports and an $87.4 billion decrease in imports.
  • The ADP Employment Change report showed an estimated 291,000 jobs were added to private-sector payrolls in January (consensus 160,000), with healthy gains across small, midsized, and large employers. In turn, there was a nice pickup in jobs added on the goods-producing side of the economy (+54,000).
  • The weekly MBA Mortgage Applications Index rose 5.0% following a 7.2% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and preliminary Q4 readings for Productivity and Unit Labor Costs on Thursday.

  • Nasdaq Composite +6.0% YTD
  • S&P 500 +3.2% YTD
  • Dow Jones Industrial Average +2.6% YTD
  • Russell 2000 +0.8% YTD