"We need you to start dumping your milk," said his contact from Dairy Farmers of America (DFA), the largest U.S. dairy cooperative. Despite strong demand for basic foods like dairy products amid the coronavirus pandemic, the milk supply chain has seen a host of disruptions that are preventing dairy farmers from getting their products to market. Mass closures of restaurants and schools have forced a sudden shift from those wholesale food-service markets to retail grocery stores, creating logistical and packaging nightmares for plants processing milk, butter and cheese.
Investment bank Goldman Sachs has been analyzing the market performance, and has a mixed outlook for the year – not necessarily bad news for the long term, but an acknowledgement that we’re not completely certain what the economic cycle has in store. David Kostin, Goldman Sachs' chief U.S. equity strategist, predicts that the market has not found its true bottom yet, and has to meet three conditions before it can. Kostin notes that the current peak-to-trough time, of just 23 trading days, is an order of magnitude faster than the median – which stands at 17 months. But there is hope on the horizon: Kostin also believes that the S&P can finish out the year at 3,000.The three conditions Kostin sees as essential to a true market bottom are: A slow in the viral spread in the US, allowing investors to understand the actual economic impact; evidence that policy actions by the Federal Reserve and Congress are showing success in limiting the damage; and a bottoming out in both investor sentiment and positioning.Once the bottom is reached, Kostin sees a quick rebound in the offing. With that in mind, Goldman's stock analysts remind investors that compelling opportunities can still be found. Using TipRanks database, we were able to pinpoint 3 stocks that are Buy-rated and backed by the analysts from Goldman Sachs as well as the rest of the Street. To top it all off, each stands to see over 35% gains in the next year. Columbia Property Trust (CXP)We’ll start in commercial real estate, with an REIT focused on urban office properties. Columbia Property Trust holds some 6.8 million square feet of office space in New York, San Francisco, and Washington DC, with smaller investments in Los Angeles and Boston. Three of these cities – NY, LA, and San Fran – are hard-hit by coronavirus or the lockdown policies implemented to halt its spread. That should hurt a commercial landlord, but Columbia also has over 6 years remaining on its average lease, and those long remaining terms, along with a high occupancy rate of 97%, help to insulate the company from immediate difficulties.A solid end to 2019 also put Columbia in a fair position to meet the current downturn. The company met the earnings forecast, showing 34 cents per share, while the $68.73 million revenues beat the estimates by 3.1%. The earnings were more than enough to keep up the 21-cent quarterly dividend. The payout ratio, at 61%, is low for the sector – but also shows that the company can easily afford its dividend. At 7.6%, the yield is excellent, far ahead of both the average yield on the S&P 500 and the yield on Treasury notes.5-star analyst Richard Skidmore, covering CXP for Goldman Sachs, sees the stock with a clear near-term path to weather the current storm. Skidmore writes, “CXP has approximately 2% of its portfolio expiring in 2020, so we see limited downside risk resulting from the current environment. We expect growth to accelerate in 2021/2022 driven by expiration renewals… From a liquidity perspective, CXP has $314mn available under its revolving credit facility, so we believe CXP has adequate liquidity to fund its operations…”Skidmore backs his Buy rating on the stock with a $16 price target, indicative of a 44% upside potential. (To watch Skidmore’s track record, click here)Overall, CXP shares have a Strong Buy from the analyst consensus, based on 3 Buy ratings and 1 Hold. The stock is selling for a low $11.10, and the $21.25 average price target suggest room for 91% upside growth in the coming 12 months. (See Columbia stock analysis on TipRanks)Celanese Corporation (CE)Next up, we’ll switch to the chemical industry, where Texas-based Celanese holds a global niche. The company produces acetyl products, a vital molecular compound with applications in a wide range of industries. Celanese is also the largest producer of vinyl acetate monomer, a vital component of industrial polymers and adhesives.The coronavirus pandemic, by forcing workplace closures to halt the viral spread, has halted operations and put serious pressure on the company. This comes on the heels of a disappointing fourth quarter, in which demand fell and earnings and revenues both missed the estimates. EPS, at $1.99 cents, was down 16% year-over-year, and revenues declined 15% over the same period.On a positive note, Celanese boasted $179 million in free cash flow for the quarter, well ahead of the $144 million in capital expenditure. The company was easily able to maintain its 62-cent quarterly dividend, with a moderate payout ratio of 31%. At $2.48, the annualized payment gives a yield of 3.6%.Goldman Sachs 5-star analyst Robert Koort has been covering CE shares, and sees them in an advantageous position right now – enough that he upgraded his stance on the stock from Neutral to Buy. His $95 price target implies an upside potential of 38%. (To watch Koort’s track record, click here)Defending his position on CE, Koort writes, “…the company has shown an ability to maintain meaningful free cash generation during previous economic downturns. Additionally, a signiﬁcantly improved and less capital intensive business mix, and strategic acquisitions have driven structurally higher cash generation capabilities through the cycle, as evidenced by steep increases and relative stability in FCF generation over the last 7 years.”It appears consensus sentiment matches well with Koort's bullish stance, with TipRanks analytics showing CE as a Buy. Based on 17 analysts tracked in the last 3 months, 10 rate the stock a "buy," while 7 suggest "hold." The 12-month average price target stands at $104.36, marking a 52% upside from where the stock is currently trading. (See Celanese stock analysis on TipRanks.)Univar Solutions (UNVR)Last on our list is another player in the chemical industry. Univar is an ingredients distributor, providing an enormous range of chemicals, solvents, and additives needed by industrial chemical manufacturers in completing their formulations. The company bills itself as the one-stop-shop in supplying the major chemical manufacturers, and its $9.3 billion in 2019 revenue, up 8% year-over-year, underlines the importance of that niche.Q4 revenues were in-line with the 2019 total. At $2.2 billion, the quarterly total showed 9% year-over-year growth. EPS, however, was down; the 29 cents reported fell 4 cents from the year-ago number. Like Celanese above, however, Univar finished 2019 with plenty of cash on hand. The company reported some $330.3 million available, a 172% increase.This is another stock reviewed by GS’s Robert Koort. Like CE above, Koort gives UNVR an upgrade, raising his outlook to a Buy. Koort gives the stock a $15 price target, showing confidence in a 51% upside for the coming year. (To watch Koort’s track record, click here)Commenting on Univar, Koort wrote, “When looking at prior periods of economic weakness, distributors have broadly proven to perform relatively in-line with the market… we believe the stock has underperformed driven by several factors. First, during the last quarterly earnings call UNVR provided disappointing FCF guidance… We see this dynamic improving as the FCF guidance for 2020 assumed a back-end loaded improvement in sales. Should the macro environment falter… this could result in improving FCF...”UNVR shares are heavily discounted after the market’s recent slide, selling for just $9.89 now. The average price target is $24.88, and implies a powerful growth potential: 152% for the coming year. The stock gets a Moderate Buy rating from the analyst consensus, based on a 3 to 2 split of Buys versus Holds. (See Univar’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
There's no point in delving too deeply into the super obvious, which is that Delta Air Lines (NYSE:DAL) and industry peers have been hammered by the coronavirus. That goes for most of the travel and hospitality space as well. Even after its recent bounce, DAL stock is still 53% from its 52-week high.Source: NextNewMedia / Shutterstock.com At what point does all of this panic become an opportunity?For Delta and other airlines, that's a very difficult question to answer because the situation continues to evolve. There are many unknowns and moving parts with the coronavirus and the airline sector.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 30 Stocks on a Deathwatch How will the former ultimately impact the economy? How will the latter look after federal aid relief? Airlines vs. CoronavirusIt's not a secret to investors that the coronavirus has depressed global and domestic air travel. With President Donald Trump recently extending the social distancing guidelines until April 30 and with the U.S. now having the most COVID-19 cases, it's unlikely consumers will be flocking to the airport anytime soon.Airlines have become easy for the public to attack. Because the industry spent so much of its free cash flow on buybacks (with some reports as high as 96%), it's understandable why many don't want them to be bailed out. Critics should be aware that, while the industry spent billions on buybacks, virtually no business was preparing for such a slowdown in such a short amount of time. Unlike a regular recession, the global economy did not ease on the brakes -- it slammed on the brakes with both feet.That sudden disappearance of cash flow is dealing a swift blow to many companies, Delta included.At the end of the day, air travel isn't going away. The industry will receive federal aid as a part of the $2.2 trillion stimulus plan signed on March 27. The move should ensure that the industry stays upright in these difficult times and ultimately removes some risk for the group. Valuing Delta Stock Click to Enlarge Source: Chart courtesy of Statista Source from Bureau of Transportation Statistics DAL stock has always commanded a low valuation on a price-to-earnings (P/E) basis. The same goes for United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) and others. You can see that in a situation like this, a low P/E doesn't do much to help. But you can also see where that low P/E doesn't tell the whole story, especially when "E" -- earnings -- goes tumbling.Get this. 30 days ago, analysts expected Delta to earn $7.42 per share in 2020. Now? That estimate is down to just 19 cents for the year. Obviously it's too early to determine what COVID-19's impact will be on this year's financials. But the decline in estimates is rather incredible. It shows just how fast the economic landscape has changed in the past month and how much exposure Delta has.When -- not if -- we get back to regular life, the airlines will still have planes in the sky. Luckily, DAL stock is one of the highest quality companies in the space. Generally, Southwest Airlines (NYSE:LUV) has the best financials across the board. However, Delta was a close second in many categories.The company churns out several billion dollars in net income per year and has solid free cash flow. In fiscal 2019, Delta generated $3.48 billion in free cash flow. Of course, with profitability and free cash flow plunging, liabilities and cash burn become the next concern.Management said that Delta is burning about $50 million a day and saw negative net bookings in the short term. The bad news is that Delta's best free cash flow quarter comes during the second quarter (which we're about to enter). Q2 is the airline's second-best quarter for revenue, which slightly trails Q3.The hope is that by Q3, we're seeing a solid rebound in economic activity. Many are even hopeful that that rebound begins at some point in Q2. But either way, it's clear that one of Delta's best quarters will take a huge hit. Trading DAL Stock Click to Enlarge Source: Chart courtesy of StockCharts.comInvestors looking to scoop up airline stocks need to understand that the industry is likely to remain volatile. We don't know if DAL stock or others will revisit the recent lows. The worst-case scenario is seemingly off the table with the $2.2 trillion stimulus package in play, although business is still going to suffer in the short term.Does that mean we may revisit $20 again? Long-term investors would like it. From a technical perspective, I would love a chance near $14, although I'm not sure it will come to fruition.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post At What Point Is Delta Stock a Screaming Buy? appeared first on InvestorPlace.
Many Americans will get government checks to help them weather money challenges from the coronavirus outbreak. Here’s what you need to know.
Rates have dropped this week and are giving homeowners new opportunities to save.
I’m not so much a bear as a realist and not buying into the notion that this is a temporary dip followed by a huge rebound. Voluminous job losses and bankruptcies could lead to permanent wealth deviation.
Raytheon Technologies debuted on the Dow Jones Industrial Average Friday after the closing of its massive merger.
Oil prices rose ahead of President Trump's meeting with U.S. oil executives Friday and OPEC's emergency meeting on output cuts Monday.
At times like this it must be a relief to have some of your retirement portfolio managed by Warren Buffett. Granted, Buffett and Berkshire Hathaway Vice Chairman Charlie Munger aren’t the spring chickens they were during the dot-com crash or the global financial crisis, when they were spry youngsters in their 70s and early 80s. The company press office says Buffett is not planning to speak in public before May.
(Bloomberg) -- One of this year’s top macro hedge funds is cautioning investors that the market pain is only beginning.Said Haidar, a New York-based investor, said he expects an ebb and flow in both public health measures and market performance as the coronavirus wreaks havoc for months to come. He said money managers are far too optimistic about how quickly the world can return to normal because he’s less certain effective vaccines or anti-viral drugs will materialize any time soon.“I don’t know that these bear market rallies are sustainable,” he said in an interview on Tuesday. “I suspect we might see new lows. Although markets may not go straight down for three weeks, there are still a lot of troubling signs.”Haidar helped steer one of the standout portfolios of the first quarter as assets around the globe tumbled into bear markets. His $900 million Haidar Jupiter Fund jumped 51% in the first three months of the year, according to a letter to investors seen by Bloomberg. Haidar declined prior to the interview to comment on his fund’s performance.One of his top concerns is that many Covid-19 cases are going undetected in the developing world, masking the full extent of the public health problem. South Africa, India and Turkey look particularly exposed, according to Haidar.The hedge fund manager said emerging-market assets will probably underperform their more industrialized counterparts in the coming months, while U.S. markets fair better than Europe. His highest conviction trades include developed-nation bonds, the Swiss franc and the Japanese yen.“You have to be cautious,” Haidar said. “Everyone in the market is looking for a quick magic bullet. In the end, this will be solved by public health measures, but they might get relaxed and then slammed back on.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- With just one tweet, U.S. President Donald Trump conjured up the prospect of a global oil alliance to rescue the industry from the worst shock in history. The question is whether it evaporates just as quickly.After the president’s social-media intervention on Thursday, oil traders are frantically assessing whether Saudi Arabia, Russia and possibly even the U.S. -- the world’s three biggest producers -- are poised to strike a once-unthinkable grand bargain to cut daily supplies in unison by 10 million to 15 million barrels.It’s unclear whether it’s feasible -- or even legal -- for such a coalition to come together. Or indeed whether it would be enough to tame the tsunami of unwanted crude now bearing down on world markets, which could be two to three times bigger than the cut touted by Trump.“It’s too little, too late,” said Ed Morse, head of commodities research at Citigroup Inc. “Cuts are required immediately, and unless they happen, the price is going to go down significantly and force them to happen.”There’s no doubt that the industry could benefit from some intervention. With global oil demand slashed roughly a third by the coronavirus pandemic, a gusher of surplus crude threatens to overwhelm the world’s storage tanks in a matter of months. The meltdown is exacerbated by the dispute between Moscow and Riyadh, prompting the Gulf kingdom to push unprecedented volumes of crude at customers in a tussle for market share.Texas Two-StepTrump’s claim that the two belligerents are ready to end their price war pushed the Brent crude price up by 21% on Thursday. The Saudis partially backed up their U.S. ally with a call for all producers to meet and stabilize the market. The global benchmark climbed further on Friday as OPEC+ prepared to hold an online meeting to discuss their plans next week.Yet the kingdom stopped well short of promising production cuts and maintained its insistence that any deal would require cooperation not just from fellow members of the Organization of Petroleum Exporting Countries and their former ally in the Kremlin, but from all major producers including the U.S. itself. Russia was quick to deny any agreement had been reached.Texas, home to the nation’s shale-oil revolution, has shown some willingness to join in, with the head of the state’s regulator and some companies saying they should participate in production curbs.Trump’s tweet contained no such pledge. Still, a meeting between the president and several CEOs from oil majors scheduled for Friday is further fanning speculation that the White House is receptive to an even wider form of collaboration.Difficult DealThe deal between Riyadh and Moscow that created the OPEC+ group was a long time coming. It was only after two years of rock-bottom oil prices and several false starts that the alliance came together in late 2016. Even then, they were slow to boost crude prices and the group was dogged by accusations that some countries -- including Russia -- were reneging on their promises.Rebuilding the same alliance and adding even more producers into the pact would be a major challenge.“The more people are at the table, the more difficult it is to get a deal,” said Pierre Andurand, whose Andurand Commodities Discretionary Enhanced Fund soared more than 140% last month through bearish bets on crude. “I find it difficult to believe that a deal like that could be agreed quickly.”Even if political and industry leaders in the U.S. backed collaboration with OPEC in principle, operators in the U.S. shale patch would somehow need to parcel out their share of any collective cutback. American anti-trust laws, unless they were changed, would make any such effort fraught with legal risks.Nor is it certain that the Saudis and Russia are ready to heal their split. The two fell out last month when Riyadh failed to convince Moscow to cut production in response to the demand slump caused by the virus. Angered by the splintering of the coalition they’d led for three years, the kingdom responded with an aggressive supply surge to a record 12 million barrels a day and deep price cuts aimed at Russia’s traditional markets.The Saudis still appear to be adamant that all producers must play their part in eliminating the supply surplus. Russia, meanwhile, is holding to the view -- in public at least -- that production curbs are futile compared with the scale of demand destruction inflicted by widespread lockdowns to slow the virus.“It’s very clear that Saudi Arabia is maintaining its position,” Amrita Sen, chief oil analyst at consultants Energy Aspects Ltd. said in a Bloomberg TV interview. “It will cut only if everyone else cuts.”(An earlier version corrected the name of a fund in the 12th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The generous U.S. unemployment benefits rolled out to blunt the economic harm caused by the coronavirus could have an unintended effect: it may actually be an incentive for companies to choose layoffs rather than keep staff on their books. The number of Americans filing for unemployment benefits last week shot up to more than 6 million, a record high, Labor Department data on Thursday showed. The CARES Act passed by Congress a week ago was designed to keep businesses and workers from economic freefall.
Stock markets fell 4.4% yesterday, marking the third session in a row of losses. The declines haven’t erased the gains from last week’s bullish trading, but they put a damper on investors’ enthusiasm. There’s a feeling of gloom; President Trump has said that the country and economy are in for a hard two weeks in the first half of April as the coronavirus epidemic peaks in the States, and he walked back his previously stated hope to see the country ‘get back to work’ by mid-month. No one is certain what the near-term holds, except that times are hard.It’s in times like these that investors, when they buy, start looking that much harder at dividend stocks. With share prices dropping, and interest rates cut to near zero, stock dividends are the surest form of asset returns available today – and those low share prices have brought down the initial cost of entry.Investment bank Wells Fargo has been following the markets, and the bank’s stock analysts are coming to the plain conclusion: get into dividends now. In a series of reports released in February and March, the firm's stock researchers outline some low-cost, high-return dividend stocks that investors need to consider – and also one that may be too risky to try. We’ve pulled the details from the TipRanks database, so let’s find out what makes these stock moves so compelling.Oaktree Specialty Lending (OCSL)We’ll start in the financial sector, appropriate when the financial world seems to be crumbling around us. But there is hope. Oaktree focuses on specialty finance, offering customized credit and loan solutions for companies that lack access to more traditional capital markets. The company generates its income through fees and interest on its loan products, which include first and second liens, unsecured loans, and preferred equity. With traditional markets staggering under the weight of the lockdowns and quarantines, Oaktree may find a wider field of action later this year.Earlier this year, just before the coronavirus outbreak hit the US, Oaktree announced a capital drive of its own, raising $300 million in 3.5% notes, which will come due in 2025. The notes were used to reduce outstanding debt while lowering the rates, and providentially gave Oaktree a sound footing just as the market disruptions hit. Shortly afterward, OCSL reported Q1 fiscal 2020 earnings, showing $14.1 million in net income, or 10 cents per share. This was down from Q4, and missed the EPS forecast by 17%.Income was enough to maintain the dividend, however, at 10 cents per quarter. The annual payment, 40 cents, gives the stock a yield of 11.8%, far higher than the 2% average dividend yield found on the broader markets. OCLS has a reliable dividend history, and adjusts the payment when needed to ensure that the company can afford the dividend.Wells Fargo analyst Finian O’Shea wrote on the stock shortly before the earnings report, saying, “OCSL continues to exit legacy positions at par or greater, which likely improves its fundamentals every quarter that passes. While we still see the case for a discount because it chooses to under-earn, we are very positive on the stock at these levels.”O’Shea stands by this opinion, giving the stock a Buy rating with a $6 price target indicating an upside potential of 86%. (To watch O’Shea’s track record, click here)OCSL’s Moderate Buy analyst consensus rating is based on 2 recent reviews, both of which agree that the stock is a buy-side proposition. Shares are priced at a heavy discount, $3.10, and the $5.80 average price target suggests an 81% upside potential for the coming 12 months. (See Oaktree stock analysis on TipRanks)TPG Specialty Lending (TSLX)Next up is another specialty finance company, TPG. TPG’s customer base is middle market companies, and like Oaktree above, its corporate customers have limited access to the capital markets. TGP offers credit, financing, and funding solutions for complex business models. Underlining the importance of the niche, TSLX rose 27% in calendar year 2019.The company had a good financial quarter to finish 2019, too. EPS beat expectations by 8.5%, coming in at 51 cents and at the top line, revenues were 3.6% over expectations, at $66.5 million. On a sour note, both numbers were down year-over-year. Despite that yoy drop, TSLX kept up its dividend – the company pays out 6 dividends annually, and has a history of adjusting those payments to ensure reliability. The current payment, due this month, is 25 cents per quarter.Annualized, TSLX’s dividend comes out to $1.64, giving a yield of 12.4%. This is more than 6x higher than the average stock dividend. And it simply blows away Treasury bonds, which have dipped below 1% as the Fed has cut rates to the bone in an effort to ameliorate the financial damage of the current economic shutdowns.Finian O’Shea, quoted above, reviewed this stock as well, and rated it as a clear Buying proposition. He put a $23.50 price target on the shares, implying an upside of nearly 80%. (To watch O’Shea’s track record, click here)In his comments, O’Shea sees this stock as a conservative, defensive play. He wrote, “We’ll reiterate the view that the value-add provided though highly structured and idiosyncratic deals is still under-appreciated, and perhaps highlighted by TSLX’ best-in-class-peers now showing non-accruals. Moreover, we see that TSLX should receive a richer valuation for preserving a defensive and opportunistic financial position at this market stage.”TPG has 5 Buy ratings and just 1 Hold, giving the stock a Strong Buy from the analyst consensus. The stock is selling for $13.15, and the average price target of $23.13 is indicative of a 76% upside potential for the coming year. (See TPG’s stock analysis at TipRanks)Ventas, Inc. (VTR)Last on our list is Ventas, which Wells Fargo says to steer clear of. This company is a real estate investment trust, focused on health care facility properties in the US, Canada, and the UK. The company holds a varied portfolio, including medical offices, nursing homes, acute and special care centers, surgical centers, and medical labs. The portfolio is valued at more than $25 billion.You’d think that a company focused on health care properties would not be badly hurt in the current epidemic environment, but Ventas shares are down heavily in the current market downturn, having lost 61%. This comes despite the company edging over the estimates in its last quarterly report, when it showed 93 cents per share Funds from Operations and $996 million total revenue. Company management, however, is lowering its forward guidance, as it is not certain that tenants will be able to meet rent obligations as the economy comes to a halt. Health care facilities are working harder than ever – but their medical operations expenses are growing faster as they try to cope with the coronavirus, and those medical operations may be seen as a higher priority than rent. It is part of the spreading ripple of consequences the epidemic has set in motion.VTR is maintaining its divided, as REIT’s are required by law to return earnings to shareholders. The current payment is 79.25 cents quarterly, or $3.17 annually. This makes the yield 13.8%, the highest of the stocks on this list. The question for investors is, Does this yield offset the likely future risk?Todd Stender, covering the stock for Wells Fargo, says to Sell this stock, and he has lowered the price target from$56 to $29. He writes of the company, “The company did indicate that through February, its senior housing and companywide results were in line with its previous expectations; however, mgmt. felt it was prudent at this point to remove 2020 guidance not knowing how long this situation may last. The company has also shifted focus to the balance sheet and is becoming a bit more defensive given the level of uncertainty by tapping $2.75B from its $3.0B line of credit for added liquidity and flexibility.”Even though he rates the stock a Sell, Stender’s lower price target still suggests about 20% upside. This REIT may still bring a return, but as with the dividend yield, it’s not known if that return potential is enough to balance the likely near-term risks. (To watch Stender’s track record, click here)This stock’s analyst consensus rating is a Hold, based on a single Buy against 4 Holds and 3 Sells. Shares are currently trading for $22.95, and the average price target of $42.57 suggests a premium of 80% from that trading level. (See Ventas stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Today, we’re going to show you what the longer-term Adaptive Fibonacci Price Modeling system is suggesting for the S&P; and NASDAQ.
A mega-merger almost a year in the making is now complete. Defense contractor Raytheon Corp. finalized its merger with United Technologies Corp. Friday to officially form Raytheon Technologies Corp. (NYSE: RTX), per a filing with the Securities and Exchange Commission. The deal, which had been in the works since the companies announced their proposed “merger of equals” in June, creates one of the world's largest aerospace and defense companies with 195,000 employees and roughly $74 billion in 2019 net sales.
Jim Cramer said on CNBC's "Mad Money Lightning Round" AbbVie Inc (NYSE: ABBV) traded lower on COVID-19, but he likes its dividend yield and it remains a great stock. It's a big position for his charitable trust fund.Clarivate Analytics PLC (NYSE: CCC) is a research company, but Cramer hadn't thought of it as a COVID-19 play. He needs to do more research to see if it is worth buying on that.Cramer is a buyer of Domino's Pizza, Inc. (NYSE: DPZ). He believes the company has a great delivery, which makes it a terrific investment.There is too much supply in the oil and gas pipelines sector, thinks Cramer. He doesn't like pipelines and natural gas anymore and he doesn't like Kinder Morgan Inc (NYSE: KMI).See more from Benzinga * RNC Genter Capital CEO Likes Tech, Health Care, Financials In Volatile Market(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
United said it's losing more than $100 million in sales a day, and American extended its flight cuts into the summer.
Oil's collapse has become more of a demand issue, making a potential deal between Russia and Saudi Arabia less impactful, says oil analyst and editor of The Schork Report Stephen Schork.
Both options take money out of the portfolio, but one may be better than the other for your situation.
J.P. Morgan telecom analyst Philip Cusick cut his rating on AT&T to Neutral from Overweight. Goldman Sachs telecom analyst Brett Feldman added Verizon to the firm’s “conviction list.”
(Bloomberg) -- A federal program to issue rebates to consumers toward new vehicles could provide a much-needed jolt to the U.S. auto industry that’s seen plants idled and showrooms emptied by the coronavirus, according to the Obama administration official who oversaw the program known as “cash for clunkers.”Ray LaHood oversaw the program officially named Cars Allowance Rebate System as U.S. Transportation Secretary in 2009. In an interview, he backed a Ford Motor Co. executive’s suggestion that a sequel to the program could be helpful if the industry, lawmakers and the Trump administration agree that auto demand needs a boost once the virus begins to abate.“It was a lifeline to the car dealers whose showrooms were looking pretty bleak without any customers, and I think if you talk to anybody in the automobile industry it was the beginning of the lifeline for the automobile industry from the Obama administration,” LaHood said Thursday. “If they can model something differently to suit the current-day situation, I’m for that.”Carmakers, suppliers and dealers have grown increasingly nervous about their near-term prospects as the virus has ground the industry to a halt and spurred discussion about possible need for government support. New vehicles sold at the slowest pace in a decade in March as government directives closed broad swaths of the economy to thwart the spread of the virus. Nearly every U.S. auto factory has been idled and executives will be hard pressed to restart them until consumers begin to buy cars again.AutoNation Inc, the largest U.S. dealership chain, said Friday that new- and used-car sales plunged 50% in the last two weeks of March and prompted the company to put 7,000 employees on unpaid leave. The retailer slashed executive pay, halving compensation for its chairman and chief executive officer. It also froze hiring and will cut advertising and other capital expenditures.Ford has begun internal deliberations about potential forms of government stimulus, including a clunkers-style program that the industry may need, and those talks are expected to soon involve the federal government, Mark LaNeve, the automaker’s U.S. sales chief, said Thursday.“We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” LaNeve said by phone. “We’re in discussions about what would be the most appropriate.”The 2009 program gave consumers a federal rebate of up to $4,500 toward trading in an older, less fuel-efficient car. LaHood said the program not only provided a much-needed boost to the auto industry but put cleaner cars on the road and scrapped gas guzzlers.Consumers quickly exhausted the initial $1 billion in funds allocated by Congress, which provided $2 billion more. That $3 billion triggered more than $13 billion in auto purchases in just a few months, Morgan Stanley analyst Adam Jonas wrote in a March 13 report in which he called such a rebate program a potentially powerful tool to stimulate the sector.So far though, policymakers haven’t openly discussed specific forms of industry aid. Automakers have so far urged lawmakers and the Trump administration to pursue broad means of economic support, stopping short of calling for aid specific to the auto sector.U.S. Representative Debbie Dingell, a Michigan Democrat whose district is home to Ford’s headquarters, said a vehicle scrappage or purchase incentive has been discussed as a possible form of relief for the industry, but consensus hasn’t been reached yet in Washington.“It’s out there as an idea along with many other ideas,” Dingell said. “We’re working with the entire ecosystem of automakers, workers, their unions, suppliers, dealers and consumers.”(Adds biggest U.S. dealership chain announcing unpaid leave for employees in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
'[If] you are an entrepreneur, if you’re a small business operator, you need to be cognizant and you need to apply ASAP,' Mark Cuban says.
"Who would own bonds?" is what you ask during an endless S&P; 500 bull. But now in the throes of the coronavirus stock market crash, "Why didn't you?"
Tesla (NASDAQ: TSLA) CEO Elon Musk's rocket company SpaceX is banning employees from using video conferencing app Zoom Video Communications (NASDAQ: ZM), citing "significant privacy and security concerns," Reuters reported Wednesday. On Monday, the New York Times reported that the office of the New York Attorney General is probing Zoom's data privacy and security practices.In a letter to Zoom, the AG's office asked the telecommunications company what security measures it has taken in light of the increased traffic on its network, according to the Times.Zoom Video shares were down 10.44% at $122.70 at the time of publication Thursday. The stock has a 52-week high of $164.94 and a 52-week low of $59.94.Related Links:Zoom Shares Drop As New York Attorney General Looks Into Company's Privacy, Security PracticesZoom Video Falls Despite Q4 Earnings Beat, Strong GuidancePhoto courtesy of SpaceX. See more from Benzinga * Why Zoom Video's Stock Is Trading Higher Today * Why Zoom Video's Stock Is Trading Higher Today * Zoom Video Falls Despite Q4 Earnings Beat, Strong Guidance(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ron Johnson, who is the former CEO of J.C. Penney and architect of Apple's retail stores, gives his take on the future of department stores during coronavirus.