After Hours Report

The S&P 500 increased 0.1% on Thursday after trading near its flat line for most of the session amid mixed economic signals. The Dow Jones Industrial Average (-0.2%), Nasdaq Composite (+0.3%), and Russell 2000 (unch) also closed little changed. 

Most sectors within the S&P 500 alternated between gains and losses throughout the day. The energy sector (+1.2%) showed relative strength amid an uptick in oil prices ($38.79/bbl, +0.86, +2.3%) despite lingering coronavirus concerns, while the real estate sector (-1.3%) showed relative weakness. 

Unfortunately, the latest unemployment data didn't strike the same level of awe that the May employment report did. Initial jobless claims for the week ending June 13 remained elevated at 1.508 million (Briefing.com consensus 1.350 million), as did continuing claims at 20.544 million for the week ending June 6. 

Conversely, there was some noticeable improvement in other data. The Philadelphia Fed Index for June unexpectedly turned positive (27.5 actual vs. -25.0 Briefing.com consensus), and the Conference Board's Leading Economic Index for May increased for the first time since January (+2.8% actual vs. +2.5% Briefing.com consensus). 

Spotify (SPOT 225.28, +25.45, +12.7%), meanwhile, was a clear winner after the company reached separate podcasting deals with Warner Bros. for its DC content and Kim Kardashian West for her work with the Innocence Project. Spotify didn't confirm its partnership with Ms. Kardashian West, but it was first reported by The Wall Street Journal. 

In other corporate news, T-Mobile US (TMUS 106.39, +3.76, +3.7%) said it's seeing a faster-than-expected recovery in retail, Biogen (BIIB 260.30, -21.16, -7.5%) lost a patent dispute for its MS drug, and Kroger (KR 31.81, -1.00, -3.1%) shares fell 3% despite the company beating top and bottom-line estimates.

U.S. Treasuries finished mixed with longer-dated tenors closing higher. The 2-yr yield was unchanged at 0.19%, while the 10-yr yield declined four basis points to 0.69%. The U.S. Dollar Index increased 0.3% to 97.47 amid relative weakness in the British pound after the Bank of England increased its asset purchase program to GBP745 billion.

Reviewing Thursday's economic data:

• Initial jobless claims for the week ending June 13 were higher than expected (and still high) at 1.508 million (Briefing.com consensus 1.350 million) versus 1.566 million in the prior week. Continuing jobless claims for the week ending June 6 decreased by 62,000 to 20.544 million.
  • The key takeaway from the initial claims report for some will be that the level of initial claims is lower than the week before, but the more meaningful takeaway for many is that initial jobless claims still running in the millions at this point isn't good at all.
• The Conference Board's Leading Economic Index (LEI) increased 2.8% in May (Briefing.com consensus 2.5%) following a downwardly revised 6.1% decline (from -4.4%) in April. It was the first increase in the LEI since January.
  • The key takeaway from the report is that it is reflective of an uptick in activity as some state economies started to reopen in May, yet the uptick is relative to a very depressed base in March and April.
• The Philadelphia Fed Index for June unexpectedly increased to 27.5 (Briefing.com consensus -25.0) from -43.1 in May.

Looking ahead, investors will receive the Current Account Balance for the first quarter on Friday. 

• Nasdaq Composite +10.8% YTD
• S&P 500 -3.6% YTD
• Dow Jones Industrial Average -8.6% YTD
• Russell 2000 -14.5% YTD

Overseas: 

• Europe: DAX -0.8%, FTSE -0.5%, CAC -0.8%
• Asia: Nikkei -0.5%, Hang Seng -0.1%, Shanghai +0.1%

Commodities: 

• Crude Oil +0.79 @ 38.75
• Nat Gas +0.02 @ 1.64
• Gold -4.80 @ 1730.80
• Silver -0.24 @ 17.54
• Copper unch @ 2.59

After-Hours Spotlight:

• American Software (AMSWA) issues mixed guidance for Q4... AMSWA down 5.3% after hours
• At Home Group (HOME) misses by $0.19, misses on revs... HOME down 1.5% after hours
• BeyondSpring (BYSI) announces public offering of ordinary shares; size not disclosed... BYSI down 16.9% after hours
• Mylan N.V. (MYL) said today's court decision clears the way for Mylan's launch of its dimethyl fumarate product upon the receipt of FDA approval. The 514 patent could have otherwise delayed generic competition until 2028... MYL up 0.9% after hours
• Repro Med Systems (KRMD) commences public offering of common stock; size not disclosed... KRMD down 12.7% after hours
• Smith & Wesson Brands (SWBI) beats by $0.23, beats on revs... SWBI down 1.3% after hours

Fair Value for Friday, June 19:

• S&P 500: 3104
• Nasdaq 100: 10000
• DJIA: 25946

Today's News Summary:

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • 1-800-FLOWERS (FLWS) raises fiscal 2020 full year guidance reflecting strong ecommerce growth through the first ten weeks of its fiscal fourth quarter
  • ABM Industries (ABM) beats by $0.31, reports revs in-line
  • Carnival (CCL) misses by $1.54, misses on revs
  • Commercial Metals (CMC) beats by $0.28, beats on revs
  • Designer Brands (DBI) misses by $1.23, reports revs in-line
  • Kroger (KR) beats by $0.08, beats on revs; expects to exceed April 1st outlook for identical sales without fuel, adjusted FIFO operating profit, adjusted EPS and adjusted free cash flow, the company is not able to forecast the extent of such upside
  • T-Mobile US (TMUS) raised Q2 postpaid net customer additions estimates reflecting a faster recovery in retail than expected
• General News:
  • US suspends trade talks with EU over digital taxes and has threatened to retaliate with tariffs on French wine, cookware, and handbags, according to the New York Times
  • Secretary of State Mike Pompeo and China pledge full transparency regarding coronavirus outbreak, according to Bloomberg
  • President Trump tweets "It was not Ambassador Lighthizer’s fault (yesterday in Committee) in that perhaps I didn’t make myself clear, but the U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China. Thank you!"
  • President Trump in Wall Street Journal interview says he believes China encouraged international spread of COVID-19; says, “There’s a chance it was intentional"
  • California Governor confirms Californians are now required to wear face coverings in public spaces - particularly indoors or when physical distancing is not possible
  • Bipartisan group of lawmakers want $120 bln in aid for restaurant industry, according to The Wall Street Journal
  • House Speaker Nancy Pelosi (D-CA) at press conference introduces infrastructure legislation will include renewable energy, rural broadband, and rebuilding schools
  • Las Vegas will require that casino patrons wear masks when playing table games, but not slot machines; vast majority of patrons have not been wearing masks for the past two weeks - CNBC
  • ABM Industries (ABM) announces resignation of CFO D. Anthony Scaglione
  • Amkor (AMKR) promotes Giel Rutten to CEO
  • Apollo Global Management (APO) announced expansion of its insurance asset management business
  • Bausch Health's (BHC) BAUSCH + LOMB ULTRA silicone hydrogel contact lenses receive regulatory approval from the National Medical Products Administration in China
  • Biogen (BIIB) follow up to reports the company had lost its patent dispute for its MS treatment Tecfidera in favor of Mylan N.V. (MYL); Biogen plans to appeal ruling
  • Copa Holdings (CPA) confirmed the Panamanian government announced the extension of air travel restrictions for all international passenger flights
  • Delta Air Lines (DAL) CEO Ed Bastian says approximately 500 employees have tested positive for COVID-19 since pandemic began and ten passed away - CNBC
  • Dicerna Pharmaceuticals (DRNA): FDA has granted rare pediatric disease designation for nedosiran, an investigational RNAi therapy being developed as a once-monthly treatment for primary hyperoxaluria
  • DISH Network (DISH) discloses amendment to asset purchase agreement with T-Mobile US and Sprint
  • Facebook (FB) takes down some posts from President Trump's campaign, according to Reuters
  • Google (GOOG): A new spyware effort targeted Google Chrome users, according to Reuters
  • Hertz Global (HTZ) determines it was in the best interests of the company to terminate the ATM Program and directed that the ATM Program be terminated
  • JetBlue Airways (JBLU) adds 30 new domestic routes and expands Mint service in Newark
  • Live Nation (LYV) aims to reduce payments to artists in 2021, according to Variety
  • Noodles & Co (NDLS) provides business update; comparable restaurant sales improving since the beginning of pandemic
  • Nordic American Tanker (NAT) sees "positive development" for the remainder of 2020 and for 2021
  • Nucor (NUE) sees Q2 EPS above consensus
  • Spotify (SPOT) reaches deal with Kim Kardashian West for podcast centering around Kardashian West's work with the Innocence Project, according to the Wall Street Journal
  • T-Mobile US (TMUS) promotes Peter Osvaldik to CFO, effective July 1
  • Trane (TT) disclosed that indirect wholly owned subsidiaries Aldrich Pump and Murray Boiler filed voluntary petitions for relief under Chapter 11 to resolve equitably and permanently all current and future asbestos-related claims
  • Turkcell (TKC): Turkey Wealth Fund to acquire 26.2% of Turkcell shares
  • Waters (WAT) announces planned departure of CEO Christopher O'Connell

• Upgrades:
  • Amedisys (AMED) upgraded to Buy from Hold at The Benchmark Company; tgt $210
  • Apartment Investment & Mgmt (AIV) upgraded to Buy from Hold at SunTrust; tgt $44
  • BMC Stock Holdings (BMCH) upgraded to Buy from Hold at The Benchmark Company; tgt $30
  • Church & Dwight (CHD) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $85
  • Cloudflare (NET) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $34
  • CNO Financial (CNO) upgraded to Buy from Neutral at Goldman; tgt raised to $19
  • MKS Instruments (MKSI) upgraded to Buy from Neutral at DA Davidson; tgt $150
  • Paylocity (PCTY) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $155
  • Pinnacle West (PNW) upgraded to Overweight from Equal Weight at Barclays; tgt $89
  • Zscaler (ZS) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $104
• Downgrades:
  • Accenture (ACN) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $200
  • American Express (AXP) downgraded to Hold from Buy at DZ Bank; tgt $108
  • Banco Santander (SAN) downgraded to Neutral from Outperform at Credit Suisse
  • Brighthouse Financial (BHF) downgraded to Neutral from Buy at Goldman; tgt lowered to $37
  • DHT (DHT) downgraded to Hold from Buy at Stifel; tgt lowered to $5
  • First Bancorp (FBNC) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $26
  • i3 Verticals (IIIV) downgraded to Neutral from Buy at BTIG Research
  • Mid-America Aptmt (MAA) downgraded to Hold from Buy at SunTrust; tgt $119
  • Principal Fincl (PFG) downgraded to Sell from Neutral at Goldman; tgt $38
  • TEN, Ltd. (TNP) downgraded to Hold from Buy at Stifel; tgt $2.50
• Others:
  • Alphatec (ATEC) initiated with an Outperform at Northland Capital; tgt $9
  • American Homes 4 Rent (AMH) initiated with a Neutral at Janney; tgt $29
  • Ballard Power (BLDP) initiated with a Hold at TD Securities
  • Brookfield Infrastructure (BIP) resumed with a Neutral at Citigroup; tgt $41
  • CoStar Group (CSGP) initiated with an Outperform at Robert W. Baird; tgt $755
  • Editas Medicine (EDIT) resumed with a Buy at SunTrust; tgt $45
  • Fanhua (FANH) resumed with an Equal-Weight at Morgan Stanley; tgt $23
  • FS KKR Capital Corp. II (FSKR) initiated with an Underweight at Wells Fargo; tgt $14
  • Health Catalyst (HCAT) initiated with a Buy at Stifel; tgt $36
  • Invitation Homes (INVH) initiated with a Buy at Janney; tgt $34
  • Neoleukin Therapeutics (NLTX) initiated with a Buy at Mizuho; tgt $21
  • NetApp (NTAP) initiated with a Hold at Deutsche Bank; tgt $43
  • Otis Worldwide (OTIS) initiated with a Buy at Argus; tgt $72
  • Pure Storage (PSTG) initiated with a Hold at Deutsche Bank; tgt $17
  • QEP Resources (QEP) initiated with a Buy at MKM Partners; tgt $3
  • Tyler Tech (TYL) initiated with an Outperform at RBC Capital Mkts; tgt $375
  • Williams-Sonoma (WSM) initiated with an Equal Weight at Wells Fargo; tgt $90

Upcoming Events:

• Econ data (Friday):
  • 08:30 ET: Q1 Current Account Balance (Briefing.com consensus -$99.8B; Prior -$109.8B)
• Earnings:
  • Monday (June 15)
    • Pre-Market: JKS
    • After-Hours: None of note
  • Tuesday (June 16)
    • Pre-Market:  LEN
    • After-Hours: HRB ORCL
  • Wednesday (June 17)
    • Pre-Market:  None of note
    • After-Hours:  ABM
  • Thursday (June 18)
    • Pre-Market:  CMC DBI KR
    • After-Hours: HOME SWBI
  • Friday (June 19)
    • Pre-Market: KMX JBL
    • After-Hours: None of note
    • Full Earnings Calendar