Futures rose Sunday. The choppy market rally is riskier for active investors than the coroanavirus stock market crash. AMD, Nvidia, Amazon and Microsoft are stocks to watch.
Wells Fargo's news will stun millions of small business owners and nonprofits that had planned to file applications for the SBA Paycheck Protection Program this week.
What should you do with your stimulus check? Robert Kiyosaki, the best-selling author of “Rich Dad, Poor Dad,” offered a bit of advice to his 1.3 million followers on Twitter for when that cash finally arrives.
Boris Schlossberg of BK Asset Management says there are MUCH better choices than Apple in this climate.
The government has introduced several temporary changes that could help people shore up their finances and manage their retirement accounts.
Less than a month after a polarizing CNBC interview, hedge fund billionaire Bill Ackman is starting to feel differently about the near-term future of the market and the coronavirus (COVID-19) pandemic."I am beginning to get optimistic," Ackman began in a series of tweet Sunday afternoon. "Cases appear to be peaking in NY. Almost the entire country is in shutdown. Hydroxychloriquine and antibiotics appear to help. There is increasing evidence that the asymptomatic infection rate could be as much as 50X higher than expected."If this is true, the severity and death rate could be much lower than anticipated, and we could be closer to herd immunity than projected."Ackman cited the fact that nationwide health institutions are doing everything they can to combat the spread of the coronavirus: "One could imagine a world in the next few months where everyone is tested and all but the immune compromised go back to a socially distanced but more normal life," he said in another tweet.See Also: Bill Ackman Bet On Market Plummet, Turned M Into .6BChange Of HeartOn March 18, the founder of Pershing Square Capital said on CNBC that at the rate the coronavirus is spreading, the American economy will enter a "depression-era period."In February, Ackman's Pershing Square funds purchased credit default swaps (CDS) on various investment grade and high yield credit default swap indices. Pershing Square completed the exit from Ackman's bets against the market on March 23 and generated $2.6 billion compared with premiums paid and commissions totaling $27 million.> so are you saying that you're optimistic, placed some secret trade and you'll be on @CNBC first thing tomorrow to pump and dump?> > -- email@example.com (@Jason) April 5, 2020The S&P 500 kicked off the second quarter on a low note last week as investors remain uncertain about how long the economic shutdown will last. Futures were trading modestly higher at time of publication Sunday night."Massive stimulus is being injected globally to backfill the economy and bridge us through the crisis," Ackman said in another tweet on Sunday. "Most corporations, banks and consumers entered the crisis reasonably well capitalized. Rates are extremely low. There is no housing or commercial real estate overhang."While it is hard to be positive when we know that tens of thousands more will die and many more will get severely sick, I have no choice but to be more optimistic about the intermediate future based on the data and facts I have seen recently. I hope I am right.'See Also: 2008 Playbook Suggests Current Period Is Calm Before The Storm For Stocks> One of the biggest economic risks is rebooting small businesses once this is over. The Administration and the Congress appear committed to supporting small businesses. We will have to do more to solve this problem.> > -- Bill Ackman (@BillAckman) April 5, 2020Image source: CNBC appearanceSee more from Benzinga * Trump Extends Coronavirus Social Distancing Guidelines To April 30 * 'Dusting Off The Financial Crisis Playbook:' Dow Futures Point To Drop After Fed Announces Emergency Rate Cut(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Saudi Arabia and Russia are close to a deal on oil output cuts to reduce a global glut, a top Russian oil negotiator said on Monday, but details such as how to share out production curbs remained unclear ahead of talks planned for later this week. A supply deal between OPEC, Russia and other producers, a group known as OPEC+, that had propped up oil prices for three years collapsed in March, while the coronavirus hammered demand. Riyadh and Moscow blamed each other for the failure and launched a battle for market share, sending oil prices to their lowest in two decades that has strained budgets of oil producing nations and hurt higher-cost producers in the United States.
After dozens of companies suspended or cut their dividends in recent weeks amid the coronavirus-driven business slowdown, some analysts believe dozens more are vulnerable across a variety of sectors in the days ahead.
Back in the days of British rule in India, Delhi was overrun with cobras. Frustrated colonial officials put a bounty on them, paying out for every snake head the locals could deliver. The possibly apocryphal tale was made famous by German economist Horst Siebert in his book The Cobra Effect, on how poor policies can lead to negative unintended consequences.
Many tech stocks have held up relatively well during the coronavirus crisis. Mark Grant of B. Riley FBR says long-term investors can make money ‘with a little patience.’
Get ready for some incredible price moves in the metals markets and congrats to all the Gold and Silver bugs out there. Our analysis says our patience and accumulation of physical metals will soon pay off in a big way.
Hedge-fund manager Dan Niles, in a note cited by Yahoo Finance this week, warned his clients way back in February that he was getting “increasingly worried” investors weren’t ready for the impact the spread of the coronavirus could have on the U.S. economy. He’s not any more optimistic now then he was back then.
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.
Luckin Coffee on Sunday apologised and pledged to strengthen controls after an internal investigation found hundreds of millions of dollars of alleged fake sales last year, wiping about 75 per cent off the company’s market value. Lu Zhengyao, the company’s chairman, said on social media that he was “ashamed” and “accepted all questions and criticisms”, while promising to do his best to recover the losses. Mr Lu backed the start-up in 2017 as it aimed to take on Starbucks in China and remains one of its largest shareholders.
Financial pain for U.S. households triggered by the coronavirus pandemic is starting to show, according to a new survey.
Almost three months have passed since COVID-19 began its spread beyond China’s borders, and the market remains in free fall. Capping off another volatile week, stocks fell on Friday April 3 in response to disappointing U.S. economic data, offsetting gains posted in the previous session. Based on a new report from the Labor Department, the U.S. economy saw 701,000 jobs erased in March, much more than economists originally expected as the figure doesn’t even include the 10 million unemployment filings that occurred after March 14. In addition, New York Governor Andrew Cuomo announced on Friday that the state had experienced the biggest jump in COVID-19-related deaths the day before, sending the market plummeting even further. For those investors feeling hopeless right now, there’s a bright spot on the horizon. Several companies have stepped up to the plate, developing innovative solutions to fight off the deadly virus. According to some Wall Street pros, these new technologies represent a possible inflection point in the war against COVID-19, and could even help drive the stock market’s recovery. Taking all of this into consideration, we used TipRanks’ database to get more information on three stocks at the frontline of the COVID-19 battle. The investing platform revealed that all of these Buy-rated tickers have been flagged by some analysts for their technology’s huge potential. Let’s get started. Abbott Laboratories (ABT) In the fight against COVID-19, Abbott’s tests to identify the virus have helped healthcare providers make significant headway. Along with its molecular test that is already being used in labs throughout the U.S., the company revealed on April 3 that the FDA granted emergency use authorization (EUA) for a rapid coronavirus testing system. As the product can detect positive results in five minutes and negative results in 13 minutes, much faster than any other available COVID-19 tests, Wall Street focus has locked in on ABT. Weighing in for Barclays, analyst Kristen Stewart believes the test will be performed on the ID NOW platform, an isothermal nucleic acid amplification technology, and thus offers advantages that go beyond its speed. “The system is easy to use with minimal training. The tests are CLIA waived, which is an advantage and allows for the placement in physician offices and urgent care offices. We estimate there are at least 15,000 systems in the United States, placed throughout physician offices, urgent care offices, and other healthcare facilities,” Stewart explained. As for the total opportunity, Stewart doesn’t dispute that Abbott’s manufacturing capacity, which she thinks would be the rate limiting factor as there is significant demand for the test, remains unclear. “The pricing would likely be under the non-CDC pricing ~$51 level, perhaps in the $35-$45 range. We hope Abbott would supply these details when it announces approval,” the analyst noted. That being said, 4 million of its molecular tests can be conducted each month on its m2000 systems, with ABT charging about $30 per test. As a result, Stewart kept an Overweight call and $98 price target on the stock. Should this target be met, a twelve-month gain of 23% could be in the cards. (To watch Stewart’s track record, click here) Turning now to other Wall Street analysts, the bulls have it. With 8 Buy ratings and 3 Holds assigned in the last three months, the consensus rating comes in as a Moderate Buy. The $97.89 average price target implies only slightly less upside potential than Stewart’s forecast. (See Abbott stock analysis on TipRanks)Johnson & Johnson (JNJ) Next up is a consumer goods and healthcare heavyweight, Johnson & Johnson, which is developing a vaccine against COVID-19. After the company identified a lead candidate, one analyst thinks JNJ is one of the names capable of fueling the stock market’s turnaround. With a lead experimental vaccine candidate selected, Kristen Stewart, who also covers ABT, points out that at the latest, JNJ can kick off Phase 1 human clinical studies by September 2020. According to management, the first doses of the vaccine could be available under Emergency Use Authorization (EUA) in early 2021. Adding to the good news, JNJ has significantly expanded its partnership with the Biomedical Advanced Research and Development Authority (BARDA), with both entities pledging more than $1 billion to co-fund the vaccine’s development and clinical testing. If that wasn’t enough, Stewart notes “BARDA and JNJ have provided additional funding to allow expansion of ongoing work to identify anti-viral treatments against COVID-19.” However, while JNJ has ramped up the scaling of manufacturing capacity and has a target of supplying more than 1 billion vaccine doses, there is a risk that the candidate won’t eventually receive approval. Having said that, Stewart argues the real goal is to develop an affordable vaccine “on a not-for-profit basis for emergency pandemic use.” She added, “Thus we would anticipate the cost it would charge for the vaccine would recoup the cost of development, cost of scaling up the manufacturing, and cost of production. Thus, we would not look at the vaccine as being a windfall or major positive from a financial perspective. We believe J&J is doing the right thing and adhering to the company’s long-running Credo.” Despite the fact that its medical device business could take a hit as elective procedures are delayed, its COVID-19 vaccine candidate, balanced portfolio, strong balance sheet and dividend, yielding 2.8% and paying out $3.80 per share annually, reaffirm Stewart’s confidence. Bearing this in mind, she maintained a Buy rating and $173 price target. This implies shares could surge 29% in the next year. What does the rest of the Street have to say? Out of 9 recent reviews, 8 were bullish, making the consensus rating a Strong Buy. In addition, the $157.22 average price target brings the upside potential to 17%. (See Johnson & Johnson stock analysis on TipRanks) Gilead Sciences (GILD) Biotech Gilead Sciences has grabbed headlines left and right thanks to its experimental COVID-19 treatment, remdesivir. With the company now stating it will donate 1.5 million doses of the drug, which could treat 140,000 patients, it’s no wonder some analysts are standing firmly behind GILD. Shares are up 20% year-to-date, but Jeffries’ Michael Yee believes its growth story is still heating up. Looking at the big picture, he argues, “GILD remains a defensive positioning stock particularly in this macro environment. We appreciate short-term trading has been mostly dictated around market volatility risk-on/off and expectations on remdesivir for COVID-19 data starting in April.” That being said, there’s more to this biotech’s “improving story”. The company has placed a significant focus on expansion, with its recent M&A activity including a $5 billion deal with immuno-oncology company Forty Seven. Additionally, its second quarter Phase 3 filgotinib UC data readout could send shares on an upward trajectory as well as improve sentiment surrounding the drug’s differentiation from AbbVie. Yee already thinks that the pbo-adjusted remission rates imply that filgotinib is “competitive with other UC drugs.” Expounding on this, he stated, “While we expect investors to make cross-trial comparisons, we caution comparing directly to other UC datasets is imprecise due to differing baseline characteristics such as proportion of biologic naive/experienced and slightly different endpoints of the Mayo score. However -- recent commentary from GILD suggests positive confidence around results and good activity in both biologic naive and experienced.” With an August PDUFA date for filgotinib in RA, Yee does, however, acknowledge that a class label Black Box could be given as a result of uncertainty related to degree of bleeding difference between various JAK drugs. It’s also still unclear if filgotinib will be approved at the 200mg dose. Commenting on the second issue, Yee said, “In any case, it's reasonable to approve 200mg particularly if the MANTA interim look is OK but FDA is a conservative bunch. Also, even if not, we point out ABBV was only approved at the low dose in RA as well so it would not be a totally critical issue.” To this end, Yee reiterated a Buy recommendation and $89 price target, indicating 14% upside potential. (To watch Yee’s track record, click here) Looking at the consensus breakdown, 10 Buys, 9 Holds and 2 Sells add up to a Moderate Buy consensus rating. At $76.88, the average price target puts the downside potential at 2%. (See Gilead stock analysis on TipRanks)To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Jim Rogers has been sounding the bear alarm for a while, and now that the market seems to be cooperating, the Rogers Holdings chairman is turning up the volume.
Oil major ExxonMobil has not changed its capex strategy where others have, and as a result of the price collapse, the supermajor now has to take on a lot of additional debt
(Bloomberg) -- Repsol SA is the latest oil major to head to Europe’s debt market for fresh financing, with other large borrowers piling in as measures of credit stress ease for the first time in four days.Eight issuers including Sanofi and LafargeHolcim Ltd will raise at least 6.5 billion euros ($7 billion) on Monday, with Repsol following BP Plc, Royal Dutch Shell Plc and OMV AG in to the market. The strong start to a holiday-shortened week for sales comes as a gauge of European credit risk fell after Germany saw the lowest number of new coronavirus cases in six days and U.S. President Donald Trump said he sees signs the pandemic is beginning to level off in the U.S.“One usually should expect a seasonal slowdown in activity, yet with most people in lockdown, it rather feels like a week of business as usual,” said Armin Peter, global head of debt syndicate at UBS Group AG.Steady salesRepsol International Finance BV is offering two euro notes on Monday, including a 10-year tranche marketed at about 275 basis points above midswaps, according to a person with knowledge of the sale, who asked not to be identified citing internal company policy. That compares to spreads of 190 and 280 basis-points that better-rated peers Shell and BP paid to sell 12-year euro notes on April 2, according to data compiled by Bloomberg.Paris-based Sanofi is tapping two existing euro-denominated notes, while sovereigns Ireland and Slovenia are set to follow Latvia in to the euro market after hiring banks for sales. Latvia is raising euro debt today for the second time in as many weeks as it seeks to secure funding for stimulus efforts to counter the coronavirus outbreak.Monday’s deals may set the tone for the rest of the week, as market participants surveyed by Bloomberg News don’t expect the usual Easter slowdown in activity this year, with borrowers keen to get deals done while they can.“We expect primary to remain busy this week despite what would usually be the calm Easter holiday period,” Commerzbank AG strategists wrote in a note to clients. “Risks remain elevated, and unlike in other market phases the surge in issuance merely reflects issuers’ desperation to collect liquidity during an issuance window of uncertain length which could also close again quite abruptly.”In Asia, Warren Buffett’s Berkshire Hathaway Inc. is set to join the record bonanza of corporate debt sales with a multi-tranche sale of yen-denominated bonds maturing in as long as 40 years later this week. The conglomerate is offering 10-year notes with a spread of 100-110 basis points, about double the 50 basis points it paid to sell similar-maturity notes in September.The deals come as corporate credit risk begins to nudge lower after ballooning during March. Spreads on euro-denominated high-grade company bonds have also ticked lower after surging 124 basis points last month, according to a Bloomberg Barclays index. The Markit iTraxx Asia ex-Japan index of credit-default swaps declined about 3 basis points Monday, according to traders.Paying upBorrowers have been undeterred by a spike in financing costs sparked by the coronavirus pandemic, with risks still abounding as U.K. Prime Minister Boris Johnson was hospitalized after failing to recover from the virus. The number of confirmed global cases is nearing 1.3 million, with the death toll topping 69,000, according to Johns Hopkins data.Many firms are building cash buffers to tide them over as the pandemic makes global recession certain, and others are expanding reserves for acquisitions. Worldwide debt sales blasted past a record $200 billion last week, with Oracle Corp. pricing a $20 billion offering and T-Mobile US Inc. raising $19 billion to help finance the acquisition of Sprint Corp.“Issuers continue to have to pay up for the privilege of bringing new deals,” said Tomas Hirst, a strategist at CreditSights Inc.EuropeCorporates are leading at least 6.5 billion euros ($6.5bn) of Monday sales, with Repsol, Sanofi, LafargeHolcim and Naturgy Finance all offering high-grade euro notesBlackrock strategists say the outlook for credit has improved due to the unprecedented central bank action to tackle coronavirus, and it sees room for outperformance in corporate debtStill, the ECB’s latest QE bazooka is proving a double-edged sword for the market: companies are flocking to raise new debt, but the supply gut is keeping bond spreads elevatedPeugeot maker PSA is the latest auto-sector name to raise financing, as it signed a 3 billion-euro 12-month deal, adding to an undrawn credit line of the same sizeEngine maker Rolls-Royce got a new 1.5 billion-pound ($1.8 billion) credit line, after drawing down 2.5 billion pounds of revolving facilities last monthAsiaBerkshire Hathaway’s multi-tranche yen bond is its first sale in the region since September, when it raised 430 billion yen (about $4 billion) across six tranches in the biggest yen offering by a non-Japanese borrowerBerkshire’s sale may be welcome news for institutional investors in Japan desperate for yield and safer credits. The country’s Government Pension Investment Fund said last week it will allocate 25% of its assets into overseas debt while cutting holdings of Japanese bonds. Read more about that hereRepublic of Indonesia is offering a three-part note sale and will use the proceeds to part-fund its Covid-19 relief and recovery effortsThe Markit iTraxx Asia ex-Japan index of credit-default swaps declined about 3 basis points Monday. Meanwhile Asian investment-grade dollar bond spreads were little changed after widening for a seventh straight week through Friday, according to a Bloomberg Barclays indexTrading volumes were light and liquidity in the market appears thinU.S.U.S. equity futures are rising on Monday, as stocks jumped in both Europe and Asia after the reported death tolls in some of the world’s coronavirus hot spots showed signs of easing over the weekendIt follows a subdued Friday for activity after a grim payrolls reportActivity is set to be front-loaded this week because of Friday’s public holiday, with Mitsubishi UFJ Lease & Finance in the market today with a two-part dollar dealFor more, click here for the Credit Daybook AmericasFor 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.
Cohen also said his $16 billion firm has effectively managed risk so far this year with performance that is “essentially flat” despite the gutting market downturn. The note follows a conference call with President Trump last week that, according to Reuters, focused on the U.S. economy and the Federal Reserve. Dan Loeb of Third Point LLC, Stephen Schwarzman of Blackstone Group, Robert Smith of Vista Equity Partners, Paul Tudor Jones of Tudor Investment Corp and Ken Griffin of Citadel were also reportedly on the call.
On CNBC's "Fast Money," Guy Adami said he agrees with Goldman Sachs' upgrade on Twitter Inc (NYSE: TWTR) as the stock should benefit from increased traffic during the crisis. He is concerned about the ad spending, but he thinks that traders who want to play the market can buy some at the current price level.Dan Nathan sees Twitter as a valuable utility for the users, but the company is not growing sales at a rate one might expect for a growth company valued this way. If it drops to high to mid teens, the stock would be amazingly cheap, said Nathan.See Also: Tesla Analysts Dissect 'Surprisingly Strong' Q1 Deliveries DataTim Seymour spoke about AT&T Inc. (NYSE: T). He thinks the stock traded lower Friday as investors listened to the downgrade from MoffettNathanson, which now has a $23 price target for the stock. Seymour explained the company wanted to become more cyclical, but it has done so in the recession and now, investors are concerned about its debt. He has a long position in the name and he added the company now has a lower financing costs.Steve Grasso would be a seller of Tesla Inc (NASDAQ: TSLA) because going forward delivery numbers are going to be disappointed. Nathan is concerned people won't be able to afford Tesla's cars during the recession. He thinks the stock should be trading lower.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
President Donald Trump triggered a massive surge in crude prices last week when he called on Russia and Saudi Arabia to cut production, but cracks in any potential deal are starting to appear.
What is a dividend and which companies have the best-yielding dividends? Read on for a primer on how best to approach this method of investing.
Less than a month after making a contrarian bet by buying Delta Air Lines on its coronavirus-inspired downward drop, Warren Buffett's Berkshire Hathaway has sold part of its stake.
Luckin Coffee Inc said on Sunday it will maintain normal operations at its stores and apologised to the public, days after it announced an internal investigation had shown its chief operating officer and other employees fabricated sales deals. Shares of Luckin, which competes in China with Starbucks Corp, sank as much as 81% on Thursday in New York after it said the investigation had found that fabricated sales from the second quarter of 2019 to the fourth were about 2.2 billion yuan ($310 million). "Regarding the suspected financial fraud and the extremely bad impact it has caused, Luckin Coffee hereby sincerely apologizes to the public," the company said in a post on its official Weibo account.