Market Weekly: June 7 – 13 2020

Viewing 15 posts - 1 through 15 (of 23 total)
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  • #23877

    [i][b][color=purple]Where have we been and where are we…… and wish all great week ahead
    Even in midst of many uncertainties — STOCKS are soaring & one should be cautious
    Still COVID-19 is “drying up” statistically in USA with approach of summer & social distancing
    My “dream” patch of world’s hottest peppers are now planted
    and even saw brand new fawn walk for 1st time after birth
    so not all is bad in USA — and may God bless us in 2nd half of year for better times 8)[/color][/b][/i]

    [article]2094[/article]

    #23878

    3rd STORM of season is about 50mph & HEAVY RAIN/FLOOD – with tornado risks

    GROUND ZERO

    #23881
    Helmholtz Watson
    Participant

    NBER says US recession began in February

    The US National Bureau of Economic Research says the American economy fell into recession in February to end an expansion that started in June 2009.

    It was the longest expansion in US history at 128 months.

    In determining the date of the monthly peak, the committee considers a number of indicators of employment and production. The committee normally views the payroll employment measure, which is based on a large survey of employers, as the most reliable comprehensive estimate of employment. This series reached a clear peak in February.

    #23882
    Helmholtz Watson
    Participant

    World Bank: Global economic output to fall -5.2% v +2.5% forecast in January

    World Bank says global economic output to fall -5.2% due to coronavirus
    Growth decline compares unfavorably to the forecast of 2.5% growth expectations in January
    global output to rebound to 4.2%, but elevated uncertainty over Covid 19 would lead to downgrades in forecasts
    On per capita GDP basis, 2020 recession will be deepest since 1945 – 46 global contraction after the end of World War II
    advanced economies to see -7% contraction in 2020 and +3.9% growth in 2021
    forecast 2020 contractions of -6.1% for US and Japan. -9.1% for euro area
    China to maintain positive growth of +1% in 2020
    India to contract -3.2%
    Brazil to contract -8.0%
    global economy could shrink 8% of coronavirus lockdowns are extended by another 3 months with advanced economies contracting -10%
    further policy actions to support growth likely needed later this year

    #23883
    Helmholtz Watson
    Participant

    [color=red][size=5][b]Stitch Fix Q3 Misses

    EPS $(0.33) Misses $(0.16) Estimate, Sales $371.73M Miss $406.66M Estimate

    After hours 23.00 −1.92 (7.70%)[/b][/size][/color]

    #23884
    Helmholtz Watson
    Participant

    Coupa Software $COUP Q3 reported earnings

    EPS -$0.23 beat expectations of -$0.56
    Rev $119.21M bea expectations of $111.84M

    Falls on guidance

    After hours $209.67 −11.11 (-5.03%)

    #23885
    Helmholtz Watson
    Participant

    [size=5][color=orange][b]S&P index erases the year’s declines at 3230.78. high was 3233.13 today

    High to low fall was -35.41% from 3393.52 to the March low at 2191.86 up over 47% from the low.
    [/b][/color][/size]

    #23886

    [color=limegreen][size=6][b]Dow 27,572.44 461.46 1.70%
    S&P 500 3,232.39 38.46 1.20%
    Nasdaq 9,924.74 110.66 1.13%
    GlobalDow 2,992.29 41.18 1.40%
    Gold 1,705.10 22.10 1.31%
    Oil 38.15 -1.40 -3.54%[/b][/size][/color]

    May PEACE & LOVE conquer the bad times & make 2nd half of 2020 better 8)

    #23887
    Helmholtz Watson
    Participant

    $M Macy’s. Raises Approximately $4.5 Billion in Financing

    June 8, 2020

    Macy’s, Inc. (NYSE:M) today announced the closing on approximately $4.5 billion of new financing, including its previously announced $1.3 billion of 8.375% senior secured notes, as well as a new $3.15 billion asset-based credit agreement. In addition, the company has amended and substantially reduced the credit commitments of its existing $1.5 billion unsecured credit agreement. The company intends to use the proceeds of the notes offering, along with cash on hand, to repay the outstanding borrowings under the existing $1.5 billion unsecured credit agreement.

    With the closing of these financing, the company expects to have sufficient liquidity to address the needs of the business, including funding operations and the purchase of new inventory for upcoming merchandising seasons, resolving its accrued payables obligations, and repaying upcoming debt maturities in fiscal 2020 and fiscal 2021.

    “We are pleased with the strong demand from new investors in our notes issuance, which allowed us to tighten pricing and increase the size of the offering. The high quality of our real estate portfolio positioned us well to execute this offering. Additionally, the continued commitment from our bank group allowed us to more than double the size of our existing revolving credit facility. Together, the notes offering and asset-based credit agreement provide Macy’s, Inc. with approximately $4.5 billion of borrowings and commitments, giving us sufficient flexibility and liquidity to navigate our current environment and fund our business for the foreseeable future,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Combined with our ongoing Polaris initiatives, we are confident this liquidity will ensure Macy’s, Inc. remains a strong company to work for, invest in and partner with.”

    Closing of Senior Secured Notes Offering

    Macy’s, Inc. today closed on its previously announced 8.375% senior secured notes offering of $1.3 billion. The notes will mature in June 2025. The notes were issued by Macy’s, Inc. and are secured on a first-priority basis by (i) a first mortgage/deed of trust in certain real property of subsidiaries of Macy’s that were transferred to subsidiaries of Macy’s Propco Holdings, LLC, a newly created direct, wholly-owned subsidiary of Macy’s (“Propco”) and (ii) a pledge by Propco of the equity interests in its subsidiaries that own such transferred real property. The notes are, jointly and severally, unconditionally guaranteed on a secured basis by Propco and its subsidiaries and unconditionally guaranteed on an unsecured basis by Macy’s Retail Holdings, LLC., a direct, wholly owned subsidiary of Macy’s, Inc.

    Closing of New Asset-Based Credit Agreement

    In addition, the company today closed on a new $3.15 billion asset-based credit agreement. The asset-based credit agreement will mature in May 2024 and includes a short-term facility of $300 million that will mature in December 2020. The asset-based credit agreement also contains an accordion feature that will enable the company to request increases in the size of the facility up to an additional aggregate principal amount of $750 million. The new asset-based credit agreement is secured by all assets and common equity of the newly formed Macy’s Inventory Funding LLC, which has purchased the vast majority of the company’s inventory, and which is the borrower under the new asset-based credit agreement.

    Amendment of Existing Revolving Credit Agreement

    In conjunction with these financing activities, the company has substantially amended its existing $1.5 billion unsecured revolving credit agreement to reduce the available credit commitment and modify the agreement’s covenants. The amended revolving credit agreement provides the company with unsecured revolving credit of up to $75 million.

    Advisors

    The company was advised on these transactions by Lazard, Kirkland & Ellis and Jones Day. Additionally, Eastdil Secured served as the company’s real estate advisor.

    Credit Suisse and JP Morgan served as joint physical book runners on the company’s senior secured notes issuance. Bank of America and Goldman Sachs served as book runners on the notes issuance.

    Bank of America is serving as the Administrative Agent and Lead Arranger on the company’s asset-based credit agreement.

    This news release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

    About Macy’s, Inc.

    Macy’s, Inc. (NYSE: M) is one of the nation’s premier omni-channel fashion retailers, with fiscal 2019 sales of $24.6 billion. The company comprises three retail brands, Macy’s, Bloomingdale’s and Bluemercury. Macy’s, Inc. is headquartered in New York, New York.

    Forward-Looking Statements

    All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including the finalization of Macy’s financial statements as of and for the 13 weeks ended May 2, 2020, including the actual amount of the impairment charges that it expects to incur for the period, the effects of the novel coronavirus (COVID-19) on customer demand, its supply chain as well as its consolidated results of operation, financial position and cash flows, Macy’s ability to obtain additional financing on commercially acceptable terms or at all, Macy’s ability to successfully implement its Polaris strategy, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet, catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer debt, possible systems failures and/or security breaches, the potential for the incurrence of charges in connection with the impairment of intangible assets, including goodwill, Macy’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended February 1, 2020 and “COVID-19 Risk Factor” in the Company’s Current Report on Form 8-K filed on May 26, 2020. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20200608005715/en/

    #23888
    Helmholtz Watson
    Participant

    [color=green][b]Market Summary > Macy’s Inc
    NYSE: M
    9.55 USD +0.78 (+8.89%)
    Closed: Jun 8, 2020
    After hours 10.25 +0.70 (+7.33%)[/b][/color]

    #23890

    [color=green][size=5][b]NASDAQ 10,000 — wow – even in midst of pandemic
    Hopefully it’ll be a “V” or even “Checkmark” type recovery ahead

    The Nasdaq touched an intraday high Tuesday at 9,999.74“[/b][/size][/color]

    [size=5][color=red][i]Still be CAUTIOUS in days ahead
    any BEARISHNESS could quickly harvest recent stock profits :woohoo:[/i][/color][/size]

    #23891

    [color=green][size=5][b]10,002.50 – ALL TIME HIGH for NASDAQ
    Tech companies are suffering less than brick-and-mortar
    UN-BULL-EVIL-ABLE — and hopefully things hold 🙂
    or lots of sheep will be sheered :woohoo:

    Hopeful second HALF of 2020 is much improved for all 8) [/b][/size][/color]

    #23892

    [color=purple][i][b]PERFECT STORM conditions as COLD FRONT merges with TS Cristobal remnants
    It was SNOWING in WY this morning :woohoo: — and TORCON risks increase once 2 storms combine
    The COLD front will take out TS and ramp up in intensity (as noted in Edmund Mitzg.)
    Gale force winds are projected in northern USA & we’ll get fringes of “C” storm in SW VA :ohmy: [/b][/i][/color]

    #23894

    [size=5][b][color=red]Dow 27,272.30 -300.14 -1.09%
    S&P 500 3,207.18 -25.21 -0.78%[/color]
    Nasdaq 9,953.75 29.01 0.29%
    GlobalDow 2,962.38 -28.25 -0.94%
    Gold 1,720.40 15.30 0.90%
    Oil 38.79 0.60 1.57%[/b][/size]

    Thankful the herd and I live “out in the country” 8)

    #23895

    [size=5][i]And some bonus tunes from SUMMER of love 1967
    Elaine ‘spanky’ McFarlane’ has voice of angel 8)[/i][/size]

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