Fly Intel: Top five weekend stock stories » 20:0904/0504/05/20
GILD, BA, FB, TWTR, GOOG, GOOGL, UAL, CMCSA, CMCSK, T, VZ, ABT, CVX, HRL, JNJ, KMB, MDT, PG, TROW
Catch up on the…
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. Gilead Sciences (GILD) said it is donating 1.5M doses of its experimental anti-coronavirus drug remdesivir, which could treat 140,000 patients. In an open letter, Chairman and CEO Daniel O'Day said that the drug will be offered for compassionate use, expanded access and clinical trials, and will treat patients with severe symptoms. "Our existing supply, including finished product ready for distribution as well as investigational medicine in the final stages of production, amounts to 1.5 million individual doses. Depending on the optimal duration of treatment, which is something we are studying in clinical trials, this supply could equate to well over 140,000 treatment courses for patients. [...] Gilead is providing the entirety of this existing supply at no cost, to treat patients with the most severe symptoms of COVID-19. The 1.5 million individual doses are available for compassionate use, expanded access and clinical trials and will be donated for broader distribution following any potential future regulatory authorizations. These doses are for treating patients with severe symptoms, through daily intravenous infusions in a hospital setting. Having a potential treatment in our hands comes with significant responsibility." 2. Boeing (BA) announced that it is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. "These actions are being taken in light of the company's continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities," the plane maker said in a statement Sunday night. 3. Across the media landscape, advertising is disappearing, one more casualty of the global economic shutdown, and new technology won't be a savior as this is an equal-opportunity problem across print, TV, digital, radio, and outdoor advertising, Eric Savitz wrote in this week's edition of Barron's. Even the most prominent ad buyers lack reasons, and often the means, to buy ads, the author notes, while many of the small and medium-size businesses that buy online ads are struggling to stay solvent. Both Facebook (FB) and Twitter (TWTR) have already warned that they will take a hit from the downturn, and Alphabet's Google (GOOGL) no doubt is seeing the same effects, but so far hasn't discussed the matter, the publication adds. 4. United Airlines (UAL) is cutting nearly 90% of its New York-area flying, as public health officials predicted that the city will reach the peak of its novel coronavirus outbreak in the coming days, The Wall Street Journal's Alison Sider reported. The airline said the reductions set to remain in place for at least three weeks will mean substantially fewer employees will need to show up each day, though workers will continue to receive pay and benefits, the author noted. 5. Comcast (CMCSA), AT&T (T), Verizon (VZ), Abbott Laboratories (ABT), Chevron (CVX), Hormel Foods (HRL), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), Medtronic (MDT), Procter & Gamble (PG), and T. Rowe Price (TROW) saw positive mentions in this week's edition of Barron's.
Boeing extends Seattle production suspension due to COVID-19 » 18:1004/0504/05/20
Boeing announced that it…
Boeing announced that it is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. "These actions are being taken in light of the company's continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities," the plane maker said in a statement Sunday night. During the suspension, Boeing said it will continue to implement additional health and safety measures at its facilities to protect employees. These measures include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas and staggering shift times to reduce the flow of employees arriving and departing work, among many other improvements. It added, "As the suspension of operations continues, Boeing will monitor government guidance and actions on COVID-19 and associated impact on all company operations. Boeing sites that remain open are being monitored and assessed on a daily basis."
United cuts NY flights as city hunkers down, WSJ reports » 14:3204/0504/05/20
United Airlines is…
United Airlines is cutting nearly 90% of its New York-area flying, as public health officials predicted that the city will reach the peak of its novel coronavirus outbreak in the coming days, The Wall Street Journal's Alison Sider reports. The airline said the reductions set to remain in place for at least three weeks will mean substantially fewer employees will need to show up each day, though workers will continue to receive pay and benefits, the author notes. Reference Link
Southwest applies for U.S. grant to cover employee costs, Bloomberg says » 18:3704/0304/03/20
The company is seeking…
The company is seeking talks on aid terms over the next few days and is evaluating all sources of capital, Bloomberg reports.
Constellation Brands CEO: People buy brands they trust in tough times » 18:2904/0304/03/20
STZ, STZ.B, CGC
In an interview on…
In an interview on CNBC's Mad Money, Bill Newlands said, "We have a lot of brands people trust, and that is what they go to in tough times. The work we're doing is all about branding." He noted that seltzer is "off to a great start," and they are "very excited" about its success. Newlands is seeing channel shifting, more buying online. He thinks Modelo is "just scratching the surface" in terms of its potential. He finished by noting, "We had our best year ever in cash flow. March has been great, but its unchartered waters."
United Airlines cuts ~80% of capacity for April, sees larger cuts in May » 18:1604/0304/03/20
In a regulatory filing,…
In a regulatory filing, the company said, "United Airlines has continued to experience a material decline in demand for both international and domestic travel resulting from the spread of coronavirus. As of March 31, 2020, over 270 million people in the United States in at least 33 states, the District of Columbia and Puerto Rico were under instructions to stay home or "shelter in place," and to avoid any non-essential travel. The company has cut approximately 80% of its capacity for April, with passenger load factors expected to fall into the teens or single digits during that time frame, and currently expects to make even larger capacity cuts in May 2020. The company plans to proactively evaluate and cancel flights on a rolling 90-day basis until it sees signs of a recovery in demand. As of the date of this report, the company is estimating a loss of revenue of over $100 million per day in March 2020 compared to the prior period, and the company is estimating for planning purposes a reduction in revenue of at least 30% for the fourth quarter of 2020 compared to the prior period."
Avolon cancels order for 75 Boeing MAX aircraft, 4 Airbus jets, Reuters reports » 18:0204/0304/03/20
Avolon said it has…
Avolon said it has terminated an order for 75 Boeing (BA) MAX jets that were scheduled to be delivered by 2023 as it adjusts its order book to the sector disruption caused by the COVID-19 pandemic, Reuters reports. The company also cancelled commitments for four Airbus (EADSY) A330neo planes and deferred delivery dates for an additional 25 narrowbody jets to 2024 and beyond, the report notes. Reference Link
Berkshire Hathaway sells 12.9M Delta shares, 2.3M Southwest shares » 17:5504/0304/03/20
BRK.A, BRK.B, DAL, LUV
In two regulatory…
In two regulatory filings, Warren Buffett's Berkshire Hathaway (BRK.A) disclosed the sale of 12.9M common shares of Delta Air lines (DAL) and about 2.3M common shares of Southwest (LUV). Berkshire sold the Delta shares at a price range of $22.9646-$25.2729 per share on April 1 and April 2, and the firm sold the Southwest shares at a price range of $31.376-$33.9675 per shrae on April 1 and April 2.
United Airlines estimates 30% decline in Q4 revenue, CNBC reports 17:5104/0304/03/20
United Airlines partners with NYC to provide free flights for medical volunteers » 16:1004/0304/03/20
United Airlines is…
United Airlines is partnering with New York City to provide free round-trip flights for medical volunteers who want to help in the frontline fight against the COVID-19 crisis. The airline is working closely with the Mayor's Fund to Advance New York City and a network of medical volunteer organizations, including The Society of Critical Care Medicine, to coordinate travel for doctors, nurses and other medical professionals from across the country to help treat patients. "Our healthcare workers are heroes, and they need reinforcements," said New York City Mayor Bill de Blasio. "This generous partnership with United Airlines will ensure medical professionals from across the country can come to New York City to help us in our hour of need." United plans to expand this program to additional areas in the Tri-State region and beyond to allow more volunteers to offer their vitally important services in the places that need them most, the company said.