Friday Morning Reads

Friday Morning Reads





Nasdaq futures increased 0.27%, S&P futures inched up 0.14% and Dow futures are basically flat as investors continue to sort through data on how the coronavirus outbreak is spreading. In Asia, the major markets except for Tokyo and Mumbai rose. In Europe, the FTSE 100 is down 0.3%, Stoxx Europe 600 has slipped 0.1% and the DAX is roughly flat. Crude oil is up 1.3% to $52.10, while gold and the U.S. Dollar Index are all little changed.

Raytheon gets SEC subpoena

The SEC is investigating potentially improper payments made from contracts in the Middle East since 2014, Raytheon (NYSE:RTN) disclosed in its 10-K filing. The probe relates to payments made by the company or its Thales-Raytheon Systems joint venture with European defense electronics firm Thales (OTCPK:THLEF). Raytheon doesn’t expect the results of the inquiry to have a materially negative effect on results.

IEA sees oil demand declining for first time in a decade

The International Energy Agency slashed its forecast for global oil demand growth in 2020 by 365,000 barrels per day to 825,000 barrels per day, the lowest level since 2011, as the coronavirus dampens demand in China’s oil-hungry economy. In its latest monthly outlook, the IEA sees global oil demand shrinking by 435,000 barrels per day in Q1, which would be the first quarterly contraction since the global financial crisis in 2009.
Go deeper: See Energy Select Sector SPDR ETF’s (XLEprice momentum.

Tesla prices $2B offering

Tesla’s (NASDAQ:TSLA) capital raise is said to price at $767 per share, according to Bloomberg. That’s about a 4.6% discount to Thursday's close of $804. The car and battery maker planned to offer about $2B in stock along with a $300M underwriter option.

Tesla acknowledges 'health epidemics' as risk in filing

Although at the end of January the company played down the effect the coronavirus will have on its operations, Tesla’s (TSLA) 2019 10-K filing said the epidemic’s effect on global supply chains is unknown if the epidemic persists for an extended period of time. In the filings’ risk factors section, it said expenses and delays “could have a material adverse impact on our business, operating results and financial condition.”

Royal Caribbean tallies virus 2020 EPS effect

The cruise line has canceled a total of 18 sailings in southeast Asia and modified several itineraries, causing an estimated impact on its FY2020 financial performance of about 65 cents per share. Royal Caribbean (NYSE:RCL) said if the company were to cancel all of its remaining sailings in Asia through the end of April — which is not currently planned — it would hurt 2020 financial performance by an additional 55 cents per share.

Roku jumps after Q4 sales take off

Roku (NASDAQ:ROKU) advanced 8% in premarket trading after a solid Q4 revenue rose 49% to $411.2M, beating consensus by $18.5M. Its operating loss of $17.4M narrowed from $26.5M in the year-ago quarter. And the company added a record 4.6M incremental active accounts, ending the year with 36.9M.
Go deeper: See Roku’s history of earnings surprises.

New Facebook app dings Pinterest

Pinterest (NYSE:PINS) fell 2.6% in after-hours trading Thursday after Facebook (NASDAQ:FB) quietly released a potential rival app. Hobbi is an app for saving and sharing photos of activities such as cooking and home improvement. The app is available in the iOS App Store in Colombia, Belgium, Spain and Ukraine, The Information reports.

What else is happening...

China urges U.S. to halt suppressing Chinese companies.

Nissan (OTCPK:NSANY-9.6% after cutting profit forecast, dividend.

Twitter (NYSE:TWTRset to open first APAC engineering center.

Pulse Biosciences (NASDAQ:PLSEdiscloses NSE letter from FDA.

Agnico Eagle Mines (NYSE:AEMcuts 2020 production guidance.

Thursday's Key Earnings
Nvidia (NASDAQ:NVDA+7.3% PM on earnings beat, data center strength.
Roku (ROKU+8% PM on revenue jump in holiday season.
Arista Networks (NYSE:ANET-8.5% PM on Q4 revenue drop.
Sierra Wireless (NASDAQ:SWIR-8.4% PM on worse-than-expected loss.
Yelp (NYSE:YELP-8.2% PM as revenue turnaround falls short in Q4.
Mattel (NASDAQ:MAT+2.7% PM on profit beat.
Expedia (NASDAQ:EXPE+11.7% PM on earnings beat, guidance.
Agnico Eagle (AEM-1.5% PM on 2020 production guidance cut.
Cognex (NASDAQ:CGNX-4.6% PM on mixed Q4, downside outlook.
DexCom (NASDAQ:DXCM+6.2% PM on Q4 beat.
Datadog (NASDAQ:DDOG-4.3% PM despite earnings beat, upside outlook.
Chemours (NYSE:CC+6% PM on better-than-expected quarter.
Republic Services (NYSE:RSG) flat AH on mixed Q4.
GoDaddy (NYSE:GDDY+5.8% PM on Q4 beat, strong ARPU.
Cloudflare (NYSE:NET+2.1% PM on earnings beat.

Today's Markets
In Asia, Japan -0.59%. Hong Kong +0.31%. China +0.38%. India -0.50%.
In Europe, at midday, London +0.08%. Paris -0.18%. Frankfurt +0.13%.
Futures at 6:20, Dow +0.06%. S&P +0.14%. Nasdaq +0.27%. Crude +1.23% to $52.05. Gold +0.03% to $1,579.20. Bitcoin +0.63% to $10,222.
Ten-year Treasury Yield -2.2 bps to 1.595%.

Today's Economic Calendar
8:30 Retail Sales
8:30 Import/Export Prices
9:15 Industrial Production
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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