Daily Market Briefing

Stocks Appear to be in the Process of Bottoming

February 25, 2020: (1:00 pm U.S. Eastern Time): After falling substantially on Monday, February 24 and again today, stock prices, in general, appear to be in the process of bottoming, with all of the major U.S. stock market indices holding today above key price-support levels and price-momentum statistics indicating that those indices declined today to substantial oversold levels. Meanwhile, the readings on numerous economic indicators from around the globe suggest that stock prices in most regions of the world will trend higher over at least the next few months. Therefore, we're advising persons who subscribe to our financial market research and advisory journals to increase their allocations to equity securities.

Headline News

February 19-25, 2020

  • Americans' economic sentiment improved for fourth consecutive month during February, according to surveys conducted by The Conference Board.
  • U.S. existing home sales declined, on a seasonally-adjusted basis, by 1.3% during January.
  • Philadelphia area manufacturing activity rose during first half of February to highest level since February 2017.
  • Japan's index of leading economic indicators rose during December, the latest month for which data are available, for first time since August 2018.
  • Eurozone institutional investors became a bit less optimistic during fist two weeks of February regarding the near-term future direction of the Eurozone economy.
  • Eurozone and Japan manufacturing activity to likely decline for 13th and 10th consecutive months during February according to mid-February surveys of manufacturing executives.
  • United Kingdom manufacturing activity to likely increase for second consecutive month during February.
  • United Kingdom retail sales rose during January for first time since July 2019.

Significant Developments

U.S. Economic Developments

U.S. Political Developments

U.S. and China Sign Phase One Trade Agreement

01/15/20: President Trump and China’s Vice Premier Liu signed today phase one of a new trade agreement between the United States and China. As part of the agreement, China agreed to increase its imports from the United States to approximately $200 billion annually,...

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Earnings Announcements

International Economic Developments

International Political Developments

Company and Stock News

February 24, 2020 Company and Stock News

  • Intuit Inc. (INTU) agreed to acquire Credit Karma, a privately-held provider of personal credit information with approximately 100 million members in the U.S., Canada and U.K., for approximately $7.1 billion in cash and Intuit’s stock.
  • e.l.f. Beauty, Inc. (ELF) acquired W3LL PEOPLE, a privately-held provider of beauty products, for $27 million in cash.
  • Several news outlets reported that Sony Corporation (SNE) unveiled its first 5G mobile phone, the Xperia 1 II, which includes .5mm headphone jack, a 12-megapixel triple-camera array and support for wireless charging.
  • Hospitality Trust (HT) entered into binding sales contracts to sell its Blue Moon Hotel on Miami Beach and its Duane Street Hotel in New York City for $30.0 million and $20.0 million, respectively, and to sell its 50% ownership interest in the Courtyard South Boston and Holiday Inn Express South Boston for $94.0 million.

Stock of Week

Mimecast Limited (MIME)

Mimecast Limited (MIME) is a global provider of cloud-based cyber-attack protection applications for business email, which is the number-one threat to businesses regarding their computer-based data. The company's customers include Barracuda Networks, Alphabet, Microsoft and Symantec Corporation. According to Mimecast’s management, none of the company’s competitors offer the fully-unified and integrated email protection application that it provides.

Composite Fundamental Rating Product Sales & EPS Growth (Qtrly) Profit Margins Financial Liquidity Long-term Debt Institution Buys to Sells
B- A A+ C B- C C

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Investors Monitor 20

Company NameTickerIndustryComposite RatingInvestors Monitor Grade
ProductSales & EPS GrowthProfit MarginsFinancial LiquidityLong-term DebtInstitution Buys to Sells
Alarm.Com HoldingsALRMHome SecurityB-ABCA+CB
Applied OptoelectronicsAAOIFiber OpticsA-A+A+B+A+A+B+
Arista NetworksANETNetwork AppsA+AA+AA+A+A
Control4 CorporationCTRLHome DevicesB-ACCA+A+A
Floor & Décor HoldingsFNDHome FlooringB-AA+CB-C-B+
General ElectricGEConglomerateBAC+B-A+CA
GrubHubGRUBMobile OrdersB+A+AB+A+BC
Malibu BoatsMBUUBoat Mfg.C+ACB-B-C-D
Masimo CorpMASIMedical DevicesA-ABAA+A+B
Micron Technology MUSemiconductorsA-A+AA+A+A+D
Momo Inc. MOMOSocial MediaA+AA+A+A+A+D
Ollie's Bargain Outlet OLLIDiscount StoresB+B+AB+A+AC+
Qualys QLYSInternet SecurityA-AAB+A+A+C
SolarEdge TechnologiesSEDGSolar PanelsA+AAAA+AA
The Trade DeskTTDAdvertisingB+AAC+A+A+B
WalmartWMTRetail StoresB-A+C+CC+A-C+
Weibo CorporationWBSocial MediaA+AA+A-A+A+A
Winnebago IndustriesWGORV Mfg.C-ACCC+DC

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