Oil Prices Slip On Concerns Over Demand Recovery

Johnson & Johnson To Acquire Momenta Pharmaceuticals – Quick Facts

Johnson & Johnson (JNJ) has entered into a definitive agreement to acquire Momenta Pharmaceuticals, in an all cash deal for approximately $6.5 billion. Vigor Sub, Inc., a newly formed wholly-owned subsidiary of Johnson & Johnson, will commence a tender offer to purchase all outstanding shares of Momenta for $52.50 per share. The deal will include full global rights to nipocalimab, a clinically validated anti-FcRn antibody.

“This acquisition broadens Janssen’s leadership in autoimmune diseases and provides us with a major catalyst for sustained growth. Autoantibody-driven diseases are often serious, and patients are underserved by current treatment options,” said Jennifer Taubert, Executive Vice President, Worldwide Chairman, Pharmaceuticals, Johnson & Johnson.

Following completion of the deal, Momenta’s common stock will no longer be listed for trading on the NASDAQ Global Select Market. While the closing of the transaction is expected to be modestly dilutive, Johnson & Johnson maintained its current 2020 adjusted EPS guidance range.

EARNINGS SUMMARY: Details of The TJX Companies, Inc. Q2 Earnings Report

Below are the earnings highlights for The TJX Companies, Inc. (TJX):

-Earnings: -$214.22 million in Q2 vs. $758.96 million in the same period last year.
-EPS: -$0.18 in Q2 vs. $0.62 in the same period last year.
-Analysts projected -$0.10 per share
-Revenue: $6.67 billion in Q2 vs. $9.78 billion in the same period last year.

New Coronavirus Cases Continue To Fall In US

New coronavirus cases continue to fall in the United States. However, deaths from the viral disease returned to the 1000-plus level after a brief lull.

New cases began to fall sharply since Sunday, and to sub-40000 levels in the next two days, giving indication that infection rate is falling in most states.

With 39,440 new cases, the total number of infected cases in the country rose to 5482602, as per Johns Hopkins University’s latest data. This is the lowest number of new cases reported in the United States since June 29.

1,275 coronavirus deaths were reported nationally in the last 24 hours, taking the total to 171823. This is more than double the casualty rate reported on Monday.

Several states where the disease was spiraling in recent weeks are heaving a sigh of relief this week.

From above 10000 levels, new cases in California came down to 4636 on Tuesday. Likewise, there is a fall in the daily number of deaths in the state.

Similar is the trend in Florida, where new cases came down to 3838, just one third of the daily cases seen a week ago. But a steep hike of 219 deaths was reported in the state on Tuesday.

New cases fell to 2826 and deaths to 67 in Georgia.

Deaths in Texas returned to double digits on Monday while significant decrease was recorded in new cases.

Meanwhile, as students return to college campuses across the country, the University of Notre Dame and North Carolina State University have decided to move to online classes over coronavirus concerns.

Target Corp. Q2 adjusted earnings Beat Estimates

Target Corp. (TGT) announced earnings for its second quarter that rose from last year.

The company’s earnings totaled $1.69 billion, or $3.35 per share. This compares with $0.94 billion, or $1.82 per share, in last year’s second quarter.

Analysts had expected the company to earn $1.62 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 24.9% to $22.70 billion from $18.18 billion last year.

Target Corp. earnings at a glance:

-EPS (Q2): $3.38 vs. $1.82 last year.
-Analysts Estimate: $1.62
-Revenue (Q2): $22.70 Bln vs. $18.18 Bln last year.

Sharps Compliance Corp. Bottom Line Rises In Q4

Sharps Compliance Corp. (SMED) announced earnings for its fourth quarter that rose from last year.

The company’s bottom line totaled $2.17 million, or $0.13 per share. This compares with $0.49 million, or $0.03 per share, in last year’s fourth quarter.

The company’s revenue for the quarter rose 3.3% to $12.57 million from $12.17 million last year.

Sharps Compliance Corp. earnings at a glance:

-Earnings (Q4): $2.17 Mln. vs. $0.49 Mln. last year.
-EPS (Q4): $0.13 vs. $0.03 last year.
-Revenue (Q4): $12.57 Mln vs. $12.17 Mln last year.

Oil Prices Slip On Concerns Over Demand Recovery

Oil prices were moving lower on Wednesday on concerns about U.S. fuel demand and amid caution ahead of a key producer countries’ ministerial meeting later in the day.

Benchmark Brent crude dropped 34 cents, or 0.8 percent, to $45.12 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 32 cents, or 0.7 percent, at $42.80 a barrel.

As global coronavirus infections surpass 22 million, there are concerns that U.S. fuel demand may not recover quickly.

In addition, a stalemate in the U.S. Congress over the provisions of the next coronavirus stimulus bill and rising U.S.-China tensions diminished hopes that easing lockdowns would lead to a quick economic recovery from the pandemic.

On the supply front, the American Petroleum Institute (API) reported on Tuesday a bigger-than-expected drawdown in U.S. crude stocks.

API reported a decrease of 4.264 million barrels of crude oil inventories for the week ending Aug. 14, more than analysts’ expectations for a 2.7 million-barrel drawdown.

Investors keep an eye on a key producer countries’ ministerial meeting later in the day, which will focus on compliance with oil cuts meant to support oil prices amid the coronavirus pandemic.