Today's noteworthy downgrades include: Acuity Brands (AYI) downgraded to Buy from Conviction Buy at Goldman... American Airlines (AAL) downgraded to Market Perform at Raymond James... American Axle (AXL) downgraded to Equal Weight from Overweight at Barclays... Delta Air Lines (DAL) downgraded on muted pricing recovery at Raymond James... Owens Corning (OC) downgraded to Neutral from Outperform at Macquarie... Rio Tinto (RIO) downgraded to Neutral from Outperform at Exane BNP Paribas... United Continental (UAL) downgraded on muted pricing recovery at Raymond James.

Strengthening the balance sheet remains a top priority for American. In the first quarter, the company reduced total debt by nearly $950 million and has now achieved more than $12 billion, or over 80%, of its goal of reducing total debt by $15 billion by the end of 2025.

The company said, :American is running the best operation in its history because of a steadfast commitment to operational excellence and strong collaboration across the entire airline. The company produced its best-ever first-quarter completion factor and improved its mishandled baggage rate year over year. American achieved these results despite air traffic control challenges and significant weather events across its network during the quarter."

Reports Q1 revenue $12.6B, consensus $12.6B. "The American Airlines team continues to build a reliable, efficient and resilient airline," said American's CEO Robert Isom. "While we aren't satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet."

Notable companies reporting before tomorrow's open, with earnings consensus, include Merck (MRK), consensus $1.87... Caterpillar (CAT), consensus $5.14... Comcast (CMSCA), consensus 99c... Honeywell (HON), consensus $2.17... Bristol-Myers (BMY), consensus ($4.44)... Altria (MO), consensus $1.15... Keurig Dr. Pepper (KDP), consensus 35c... GE Vernova (GEV), consensus (37c)... Royal Caribbean (RCL), consensus $1.33... Tractor Supply (TSCO), consensus $1.72... Mobileye (MBLY), consensus (6c)... Textron (TXT), consensus $1.23... LabCorp (LH), consensus $3.48... Southwest Airlines (LUV), consensus (34c)... American Airlines (AAL), consensus (29c)... Harley-Davidson (HOG), consensus $1.51.

Sees Q2 EBIT margin 20%. Sees FY24 effective tax rate 24%-26%.

Sees FY24 interest expense $70M-$80M; effective tax rate on adjusted earnings 24%-26%; capital additions $550M; and depreciation and amortization $550M.

Midland Exploration announced the execution of an amended option agreement on April 22, 2024 with Rio Tinto Exploration Canada and the addition of the Wookie project to the option agreement signed with RTEC in June 2023. The Wookie project is located in Eeyou Istchee James Bay area. The amended option agreement now consists of eleven projects totalling 2,208 claims covering a surface of about 1,139 square kilometres. These projects include Galinee, Corvette, Mythril East, Chisaayuu, Moria, Shire, Komo, Warp, Sulu, Picard and Wookie. Highlights: Addition of the Wookie project to the option agreement with RTEC; Additional $1,5M of expenditures for the initial 50% and $4,0M for 70% interest, with additional $100,000 cash payment upon execution and another $250,000 over a 4-year period. Under the amended Option Agreement, RTEC may acquire an initial 50% interest in the Properties over a period of five years, subject to the following conditions: Additional cash payment of $100,000 within 45 days of the amendment execution and additional cash payment of $250,000 over a 4-year period. Additional exploration expenditures of $1,500,000 for a new total of $16,000,000, including a firm commitment to spend not less than $2,000,000 in the first 18 months following the lifting of the wildfire restrictions in Quebec last August 2023. After acquiring an initial 50% interest, RTEC will have the option to increase its interest in the Properties to 70% over a period of five years following the exercise of the First Option, subject to the following conditions: Additional exploration expenditures of $4,000,000 for a new total of $54,000,000. The Properties are wholly-owned by Midland and all located within he Eeyou Istchee James Bay region, Quebec. RTEC will act as project operator under the Option Agreement during the First Option period and the Second Option period. The signing of the amended option agreement follows a new evaluation of the lithium potential of the Wookie project and its favorable geological context. The Wookie project is located within the La Grande geological subprovince of the lithium-rich Eeyou Istchee James Bay region, which hosts most of the lithium deposits, including deposits such as Corvette, James Bay Lithium, Whabouchi, and Adina. among others. The Wookie project consists of 188 claims and is located about 40 kilometres north-northwest of the James Bay Lithium deposit. The Wookie project is underlain by a lower Amphibolite facies metamorphosed bedrock, recognized to be the most favorable metamorphic facies for lithium pegmatites worldwide. Furthermore, most of the lithium deposits in the Eeyou Istchee James Bay area are found in pegmatites emplaced within mafic volcanic or intrusive rocks units. The Wookie project covers more than twenty square kilometers of mafic volcanic rocks that have not been extensively explored for lithium. Finally, several historical Quebec government rock samples of pegmatites collected close to the project have returned anomalous tantalum, cesium and rubidium values. While these samples were not analyzed for lithium, this element suite is strongly suggestive of favorable LCT pegmatites. The favorable environment is strengthened by the discovery of a spodumene pegmatite that returned up to 3.9% Li2O by Quebec Precious Metals Corporation near the Wookie project