• U.S. Stock Futures Swing Back to Gains After China Repo Rate Cut
    Bloomberg

    U.S. Stock Futures Swing Back to Gains After China Repo Rate Cut

    (Bloomberg) -- U.S. stock futures wiped out earlier losses to turn positive, as traders reacted to China’s rate cut on seven-day reverse repurchase agreements on Monday. As part of the stimulus, the People’s Bank of China injected 50 billion yuan ($7.1 billion) into the banking system.Contacts on the S&P 500 expiring in June rose 1.1% at 3:11 p.m. in Tokyo on Monday, erasing a drop that exceeded 3%. China’s central bank cut the interest rate it charges on loans to banks by 20 basis points, the biggest amount since 2015 as authorities ramp up their response to cushion an economic slowdown.U.S. Futures have “started picking up following China’s extensive cut of 20bps to 7 day repo rate, providing some support for the market,” said Jingyi Pan, market strategist at IG Asia Pte.In addition to the PBOC action, some also attributed the rally to a variety of other measures. “First, Trump puts health before economy but does not completely lock down NY,” said Jeroen Blokland a money manager at Robeco in Rotterdam. “Australia also emphasized that governments will do what ever it takes to limit the impact of the virus. Finally with VIX still extremely high, big swings are more common now.”Dramatic swings have been the rule in global markets for five weeks as investors tried to price in an outbreak that has shut down economies, put millions out of work and made it all but certain corporate earnings will drop. The S&P 500 is trading at just under 17 times combined profits in the last year, down from 22 times last month.“We have to get used to the fact that we will have some high volatility and we will have multiple retests of lows before we find one.,” said Ed Campbell, portfolio manager and managing director at QMA. “We’re pricing in a recession. That doesn’t mean there isn’t more downside from here. Bottoming is a process.”Whether valuations account for the prospect of a global recession is the question traders must answer. Stocks last traded at similar multiples four years into the bull market that ended earlier this month. They bottomed out at about 12 in the years after the financial crisis, a level that would require another 22% drop to reach based on existing 2020 earnings estimates.Analyst forecasts on individual stocks compiled by Bloomberg indicate S&P 500 companies will earn $161.20 a share this year, about 0.3% above the $160.60 posted for 2019. The 2020 projection is down from $174.40 just before markets rolled over in the middle of February.Gains in futures would be halted at 2,657.50 and declines at 2,403.50 by Chicago Mercantile Exchange volatility limits.Quarter-end strains could add to the nervousness on Monday and Tuesday as financial firms rein in collateral lending to shore up balance sheets. The MSCI gauge of global equities is down about 23% since the start of the year, on course for its worst quarter since the end of 2008.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.

  • Goldman Sachs Picks 2 Stocks to Buy (and 1 to Sell)
    TipRanks

    Goldman Sachs Picks 2 Stocks to Buy (and 1 to Sell)

    If anyone thought last week’s three days of positive trading indicated a trend reversal, or even more implausibly, an end to the recently launched bear market, they were rudely awakened on Friday. Markets tumbled as the US overtook previous pandemic hotspots China and Italy with the unwanted statistic of having the highest number of coronavirus infections on record. It appears, then, that the new bear market will be around for a while, along with the accompanying bouts of volatility. How long will it last? Impossible to tell, but the new reality means estimates and forecasts have been getting readjusted all over the Street, and investment firm Goldman Sachs has joined the fray. With COVID-19 restructuring the market, 5-star analyst from the firm, Heather Bellini, has been analyzing the tech names under the firm’s coverage and has reached new conclusions for a number of them. We ran three through TipRanks’ database to determine the rest of the Street’s sentiment. We found out that despite some reservations at Goldman Sachs towards one specific company, all are Buy-rated, with potential for at least 40% upside in the year ahead. Here are the details. Workday Inc (WDAY) Let’s start off with Workday, a large-cap software company. With a focus on the HCM (human capital management) market, the Pleasanton, California-based company offers cloud-based finance, HR, and planning system solutions mostly for medium and large sized enterprises. Despite surging in last week’s market renaissance, WDAY stock is down by 17% year-to-date. In fact, take another step back and the share price has retreated by 39% since notching an all-time high last July. So, what’s the problem? There is no problem, says Bellini. The 5-star analyst adds Workday to a list that meets all her current investing criteria. Bellini argues that in the current “challenged IT spending environment”, the company is well set up. As budgets get slashed, Workday’s potent combination of recurring subscription revenue, which amounted to 85% in FY20, and low churn with a 95% gross retention rate, makes it resilient in such times. Also playing into her bullish thesis, Bellini notes Workday’s expanding product portfolio could achieve further penetration with its “planning and analytics” add ons. The analyst said, “We continue to favor market leaders with a higher mix of recurring revenues and secular tailwinds from digital transformation initiatives and rising cloud adoption. To that end, while we do not think Workday will be insulated from COVID-19 and any corresponding impact to overall IT spend, we believe the company remains well positioned in its core HCM market where win rates remain high and well positioned to capitalize from growing cloud adoption within financials which continues to grow as a percentage of the overall mix.” Bellini reiterates a Buy rating on WDAY, but the price target is slashed from $223 to $158 on account of “contraction in peer multiples and increased macroeconomic risk.” Expect returns in the shape of 16%, should Bellini’s forecast play out in the coming months. (To watch Bellini’s track record, click here) Looking at the consensus breakdown, 13 Buys, 6 Holds and 1 Sell coalesce into a Moderate Buy consensus rating. The average price target is $200.25 and indicates potential upside of 47%. (See Workday stock analysis on TipRanks)Anaplan Inc (PLAN) Staying in cloud services, we move on to Anaplan. The company operates in a similar niche to Workday, helping companies streamline operations and make better business decisions through its “connected planning” offerings. With a market cap of $4.4 billion, the mid-cap is significantly smaller than WDAY, and has also taken a heavier beating in the pandemic-stricken climate. PLAN stock is down by a massive 38% year-to-date. It is worth bearing in mind, though, that following Anaplan’s IPO in late 2018, its share price surged last year by a market trouncing 125%. Clearly, the growth-oriented SaaS company has fans on the Street. Bellini is among them. Despite lowering year-over-year revenue growth estimates for CY20 from 34% to 22%, the 5-star analyst sees the company’s software as “best in class” and reckons churn will remain low due to “the strategic nature of its software”. The numbers are encouraging, too. In the company’s latest quarterly statement, total revenue grew by 42% to reach $98.2 million – including a 50% year-over-year increase in subscription revenue totaling $89.5 million. Bellini further added, “We continue to view Anaplan as well positioned despite an expected impact of COVID-19 on its results this year. We see its planning software as helping companies to become more well run and increase their agility as they benefit from a connected planning process. With a growing number of global systems integrators expanding their practices on its software, we see its ability to bounce back from expected spending dislocations faster than many others.” Bottom line, what is the implication for investors? Bellini maintains a Buy rating, but the price target is reduced from $68 to $51. From current levels, the potential upside is still a plentiful 56%. As for the rest of the Street, PLAN’s Moderate Buy consensus rating is based on 5 Buys and 3 Hold ratings. With an average price target of $51.25, the analysts foresee upside of 56%. (See Anaplan price targets and analyst ratings on TipRanks)Dropbox Inc (DBX) Compared to the two previous names on Bellini’s list, Dropbox stock has fared far better in regards to the coronavirus’ eviscerating effect. While tech stocks have plunged all around it, DBX’s share price has weathered the storm so far, with a year-to-date loss of less than 1%. Looking further back, though, since its IPO in May 2018, DBX stock has been in decline. Does its current resilience in the face of the coronavirus indicate a bottom has been met? Not according to Bellini. At Goldman, DBX gets a downgrade from Neutral to Sell along with a price target haircut – trimmed from $23 to $17. The negative sentiment is based on “contraction in peer multiples, increased macroeconomic risk and heightened competition”, and the new target implies further downside of 4%. There are a number of reasons Bellini cites as back up for the negative thesis. For starters, Dropbox is heavily reliant on SMBs (small to medium sized businesses). These are the companies that will be most heavily affected by the viral outbreak. Individual plans make up 65% of Dropbox’s paying users and 60% of ARR (annual recurring revenue.) Last May’s 20% price hike won’t help matters, either, as smaller businesses could move to cheaper offerings such as Microsoft’s OneDrive (bundled in with Office365), or another rival in an increasingly competitive landscape with lower priced alternatives. Bellini concluded, “While the new Dropbox does create the possibility to drive incremental subscriber adds alongside the ability to advertise potential upsell and cross-sell opportunities, efforts remain in early innings and we believe this ultimately expands the potential set of competitors in an increasingly crowded landscape. Since the February market peak, DBX has traded 3%-plus versus an average 16% decline across our coverage universe, and we believe risk/reward skewed to the downside from current levels. What does the Street have in mind for the file hosting specialist? 5 Buys, 2 Holds and 2 Sells all add up to a Moderate Buy consensus rating. Other Street analysts differ from Goldman not only in rating criteria, but in price targets, too, as the average price target hits $25.57, and implies potential upside of 44% in the coming months. (See Dropbox price targets and analyst ratings on TipRanks)

  • JPMorgan Says the Market Rout Is Probably Past Its Worst Now
    Bloomberg

    JPMorgan Says the Market Rout Is Probably Past Its Worst Now

    (Bloomberg) -- Strategists at JPMorgan Chase & Co. have concluded that most risk assets -- a universe that typically includes stocks and credit -- have seen their low points for the recession that’s gripped economies around the world.Conditions that JPMorgan had set for market stabilization and revival have largely been met, with recession-like pricing, a reversal in investor positioning and extraordinary fiscal stimulus, strategists led by John Normand wrote in a note Friday. Coronavirus infection rates remain a “wild card,” as they remain high even if they’re “slowing” in the U.S. and Europe.“Risky markets should remain volatile as long as infection rates create uncertainty about the depth and duration of the Covid recession, but enough has changed fundamentally and technically to justify adding risk selectively,” Normand wrote. “Most risky markets have probably made their lows for this recession, except perhaps oil and some EM currencies beset by debt-sustainability issues.”Most risk assets should trade higher in the second quarter of the year, Normand said. He recommends that investors average into oversold markets, particularly those where central banks are buying directly. (Averaging into markets entails spreading out the purchases over time rather than diving in in one go.)Not everyone sees the bottom as necessarily in.Goldman Sachs Group Inc.’s David Kostin reiterated in a note Friday that he expects the market to turn lower in coming weeks. He cited a checklist for a sustained rally similar to Normand’s -- of slowing viral spread, evidence that fiscal and monetary policy stimulus is working, and a bottoming in investor positioning and flows.Gavekal Research Ltd.’s Anatole Kaletsky said in a note Monday that it’s too early to buy equities, citing reasons including “surprisingly complacent” investor sentiment and historical data showing bear markets almost never end on a single massive sell-off without retesting the bottom.Off the LowThe MSCI All Country World Index tumbled some 34% from its February record high to its recent low on March 23. As of early London trading Monday, it had recouped more than quarter of that loss.Normand said his approach dovetails with the recommendations in the past week from bottom-up analysts at JPMorgan to add exposure in U.S. and European credit, peripheral European sovereigns, and U.S. and European inflation breakevens.On the stocks side, things are somewhat more nuanced. JPMorgan’s multi-asset portfolio has been overweight equities all year, though partially hedged with short positions in credit and long ones in the U.S. dollar.“Thus, future adjustments would be in terms of magnitude and funding source rather than in overall tilt,” Normand said. He added that the firm’s global equity strategists “believe that the risk-reward for equities remains skewed to the downside” because relief rallies will be faded.Normand cautions that not all apparently cheap markets should be bought, as there is still a risk-reward spectrum. Developed-market bonds should be used to fund allocations to cheap credit and equities, but bond sell-offs should also be used as opportunities to buy duration as insurance against the next shock.Credit generally has higher risk-adjusted returns than equities, so in volatility-adjusted terms may be superior in the market bottoming process over the coming weeks, Normand said.(Adds Gavekal view in seventh 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.

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  • You can be ‘practically stealing’ quality stocks now, according to Jefferies
    MarketWatch

    You can be ‘practically stealing’ quality stocks now, according to Jefferies

    The bank’s analysts identified companies with strong fundamentals that are attractive because of ‘indiscriminate selling.’

  • Getting crushed in this market? One look at Warren Buffett’s portfolio and you might feel a lot better about yours
    MarketWatch

    Getting crushed in this market? One look at Warren Buffett’s portfolio and you might feel a lot better about yours

    Warren Buffett said earlier this month that he hadn’t seen anything like the coronavirus pandemic. “If you stick around long enough, you’ll see everything in markets,” he told Yahoo Finance. “And it may have taken me to 89 years of age to throw this one into the experience.” It’s only gotten worse from there.

  • Oil Plummets to 17-Year Low as Broken Market Drowns in Crude
    Bloomberg

    Oil Plummets to 17-Year Low as Broken Market Drowns in Crude

    (Bloomberg) -- Oil slumped to a 17-year low as coronavirus lockdowns cascaded through the world’s largest economies, leaving the market overwhelmed by cratering demand and a ballooning surplus of crude.Futures in London fell as much as 7.6% to the lowest since November 2002, while New York crude briefly dipped below $20 a barrel. Physical oil markets are struggling to store fuel, hit by a double whammy of virus restrictions eroding demand and a damaging war for market share between Saudi Arabia and Russia that has prices on track for the worst quarter on record.The kingdom said on Friday that it hadn’t had any contact with Moscow about output cuts or enlarging the OPEC+ alliance of producers. Russia also doubled down, with Deputy Energy Minister Pavel Sorokin saying oil at $25 a barrel is unpleasant, but not a catastrophe for the nation’s producers.“Demand concerns are critical but well known, what really took the market down were the signals we got from Saudi Arabia and Russia that they intend to continue their current path,” said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. “Market hopes of a deal have come undone.”OPEC nations aren’t giving support to a request from the group’s president for emergency consultations over tanking prices, according to a delegate. Algeria, which holds the cartel’s rotating presidency, has urged the secretariat to convene a panel but the call has failed to gather the majority backing necessary to go ahead. Riyadh is among those opposing the idea.The world normally uses 100 million barrels of oil day, but forecasters predict as much as a quarter of that has disappeared in just a few weeks. The plunge in consumption is without precedent since a steady flow of oil became essential to the global economy more than a century ago. The great crash of 1929, the twin oil shocks of the 1970s and the global financial crisis don’t come close.Brent crude for May declined $1.45, or 5.8%, to $23.48 a barrel on the ICE Futures Europe exchange as of 7:21 a.m. in London after falling to $23.03 earlier. The contract is also set for the worst month on record, down about 54% in March, and 64% lower this quarter.The six-month spread for Brent was at a contango of more than $13 a barrel after closing at the widest gap since late 2008 on Friday. The prompt timespread was also at more than a $3 contango.West Texas Intermediate slid 82 cents, or 3.8%, to $20.69 a barrel on the New York Mercantile Exchange after falling to $19.92 in early trading. The contract is down 54% this month and about 66% this quarter.Global oil demand is in freefall and consumption may decline by as much as 20 million barrels a day, according to the International Energy Administration. That is forcing producers worldwide to slash output, while independent trader Trafigura Group expects as much as 1 billion barrels to be sent into storage tanks in the coming months.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.

  • Financial Times

    Recession pushes Hong Kong shoppers to sell their luxury goods

    Rachel, a 30-year-old flight attendant in Hong Kong, used to carry a suitcase back home packed with luxury goods that she purchased on every trip to Europe. Now her full-time job is also at risk as the coronavirus outbreak has grounded flights, and her employer — like many other airlines — has asked all staff to take unpaid leave. This leaves Rachel, who requested that her full name not be used, no choice but to sell part of her luxury collection for some quick cash.

  • Man who scored big wins during the 2008 financial crisis says the stock market could be ‘near a bottom’ if U.S. gets a coronavirus recovery plan
    MarketWatch

    Man who scored big wins during the 2008 financial crisis says the stock market could be ‘near a bottom’ if U.S. gets a coronavirus recovery plan

    Hedge-fund manager David Tepper says there is nothing wrong with “nibbling” at stocks that have experienced a brutal selloff in the past month, amid growing fears centered on the economic impact of the coronavirus pandemic.

  • Stocks Decline; Dollar Snaps Four-Day Retreat: Markets Wrap
    Bloomberg

    Stocks Decline; Dollar Snaps Four-Day Retreat: Markets Wrap

    (Bloomberg) -- European and Asian stocks declined on Monday while U.S. equity futures fluctuated as investors weighed a weekend full of negative coronavirus news against the stimulus measures that triggered a bounce in risk assets last week. The dollar gained and oil fell.The Stoxx Europe 600 Index slid led by energy shares as crude slumped again, dropping briefly below $20 a barrel in New York. For the first Monday in four weeks futures on the S&P 500 Index have yet to go limit-down, though headlines in the past few days have not been supportive. President Donald Trump has abruptly abandoned his ambition to return life to normal in the U.S. by Easter and said his “social distancing” guidelines would remain until at least April 30. Asian shares pared earlier declines but most benchmarks fell. Australian equities were the notable exception, surging by a record thanks to new stimulus measures. The dollar was on course to snap a four-session losing streak while the yen edged down and the pound and euro dropped. Treasuries fluctuated.Investors are beginning the week digesting the news that the world’s biggest economy will stay crippled for longer after Trump heeded advice from the government’s top doctors that re-opening the U.S. in two weeks risks greater death as the coronavirus outbreak accelerates. He said in a Rose Garden news conference that he hoped the country would reach “the bottom of the hill” by about June 1.“Markets are still in uncharted territory,” said Medha Samant, director of investment at Fidelity International. “When you look at the stages of this pandemic, you’ve gone into escalation,” she said. “The epicenter has shifted to the U.S.”In the latest stimulus moves, China’s central bank lowered short-term funding rates and injected cash into its financial system, Australia announced a job-support program and limited public gatherings to just two people, while Singapore unveiled an unprecedenting easing in policy.“The assumption that we can turn a switch in a month or two and everything is going to be okay is a faulty opinion,” David Kotok, chief investment officer at Cumberland Advisors Inc., told Bloomberg TV. “We are waiting to see the closer timetable of treatment, testing, and vaccine -- that’s very important to us.”Meanwhile, emerging currencies including South Africa’s rand and Mexico’s peso tumbled amid concerns about debt downgrades.Quarter-end strains could add to investor nervousness on Monday and Tuesday as financial firms rein in collateral lending to shore up balance sheets, while Japanese banks face their fiscal year-end. The MSCI gauge of global equities is down about 23% since the start of the year, on course for its worst quarter since the end of 2008.These are the main moves in markets:StocksFutures on the S&P 500 Index advanced 0.2% as of 8:13 a.m. London time.The Stoxx Europe 600 Index decreased 0.6%.The MSCI Asia Pacific Index dipped 0.8%.CurrenciesThe euro decreased 0.6% to $1.1078.The British pound dipped 0.7% to $1.2371.The Japanese yen fell 0.1% to 108.05 per dollar.BondsThe yield on 10-year Treasuries climbed less than one basis point to 0.68%.Germany’s 10-year yield decreased three basis points to -0.51%.Britain’s 10-year yield declined five basis points to 0.321%.CommoditiesGold fell 0.6% to $1,618.89 an ounce.West Texas Intermediate crude decreased 4.6% to $20.52 a barrel.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.

  • How a $100 Billion South Korean Insurer Became a Penny Stock
    Bloomberg

    How a $100 Billion South Korean Insurer Became a Penny Stock

    (Bloomberg) -- Insurers the world over have been walloped by evaporating investment returns, but those in South Korea have been hit particularly hard. Just consider this: The nation’s second-largest life insurer became a penny stock this month.Hanwha Life Insurance Co. has fallen 64% over the past year, and its shares touched the equivalent of about 71 cents on March 23. Its price-to-book value is just 0.1 times, a fraction the 0.8 average for European insurers or 0.9 among U.S. counterparts, according to data compiled by Bloomberg.The latest slump in markets, which has seen the South Korean won tumble -- casting a cloud on Hanwha’s tactic of investing heavily overseas -- has layered pain on top of a pre-existing condition. Hanwha, along with its peers, sold a welter of long-term, fixed-rate products to retail investors two decades ago that are now proving costly to maintain.Those legacy liabilities from the late 1990s to 2001, offering average annual returns of 6%, represent about 40% of Korean insurers’ products, according to Financial Supervisory Service data obtained by opposition lawmaker Kim Sung-won. That’s putting a major squeeze on Hanwha amid the world’s worst market rout since the global financial crisis.Hanwha has invested 29% of its total 121 trillion won ($100 billion) in assets outside of South Korea, the most in the industry and close to the 30% maximum allowed. That hasn’t work out so well. It posted a net loss of 39.7 billion won for the fourth quarter, the worst in nine years.“The reason why Hanwha is particularly worse than its rivals is that it recently increased overseas investments and made more losses in hedging for foreign-currency” risk, said Im Joon-hwan, senior research fellow at Korea Insurance Research Institute. “It’s not cheap for Korean insurers to hedge on currencies in the nation’s foreign-currency market. It’s not easy to find talent with good hedging skills.”Risk PanelAs with insurers everywhere, Korean firms have been challenged to find long-maturity assets that match their lengthy liabilities, yet still provide a decent nominal return.Hanwha said in its financial report on 2019, released earlier this month, that it’s working to minimize risks from a mis-match between its insurance products and its investment portfolios. It’s boosting longer-term assets such as Korean government bonds and managing sales of products with floating rates, the company said. It also has a risk-management committee that oversees a strategy for asset-liability management, the report said.The Bank of Korea’s move this month to cut its benchmark interest rate to a record low of 0.75%, and adopt a version of quantitative easing, threatens to make that management all the harder.Asset ShortageParticularly when South Korea only has about $175 billion of government bonds outstanding with maturities of more than 10 years, according to the latest Finance Ministry data. That’s not much for a $1 trillion insurance industry competing with pension funds and foreign investors for assets with duration.Another major hurdle is a change in global accounting rules, known as IFRS 17, that will come into effect in 2023 and requires all insurers to value liabilities at current interest rates rather than initial rates. In this low-rate environment, that means higher liabilities.“They may have to issue new shares in a large scale to comply with the new accounting rule of IFRS 17,” said Choi Kwang-wook, chief executive officer at J&J Investments Co. in Seoul. “I’m bearish on Korean insurers’ stocks, especially life insurers.”As if they needed another headache, insurers are also having to cope with indebted Korean households increasingly scrimping on insurance. The Korea Insurance Research Institute sees sales of new life insurance products dropping for a fourth straight year in 2020.For some market watchers, and local media, the troubles of Hanwha and its peers are reminiscent of a crisis in neighboring Japan two decades back. Seven Japanese life insurers ended up going bust after struggling to pay guaranteed returns on policies sold years before.“The extremely low price-book ratios -- almost zero -- mean investors think Korean insurers” are effectively worthless, according to Im.(Updates stock move in second 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 do this now, you might be able to double your retirement portfolio
    MarketWatch

    If you do this now, you might be able to double your retirement portfolio

    The coronavirus crisis has created an extraordinary buying opportunity in emerging market stocks for anyone hoping to save for their retirement, say two independent investment houses. Buy a broad portfolio of inexpensive “value” stocks in developing markets such as China, South Korea, Russia, Brazil, India and you’ve got a good chance of doubling your money or better over the next five to seven years, say number crunchers at investment advisory firm Research Affiliates in Newport Beach, Calif., and at the blue chip money managers GMO in Boston. “Value” stocks are those that are inexpensive in relation to business fundamentals such as company revenues, assets and earnings.

  • More Pain Ahead for US Investors Until Coronavirus Curve Starts Flattening
    FX Empire

    More Pain Ahead for US Investors Until Coronavirus Curve Starts Flattening

    At this time, we stand by our forecast for a minimum 50% to 61.8% correction of the entire rally from 2009 to 2020. That’s the value area that will start bringing in the real buyers and not just the reactionary buyers.

  • Asian markets extend losses as toll from pandemic surges
    MarketWatch

    Asian markets extend losses as toll from pandemic surges

    Asian shares started the week with fresh losses as countries reported surging numbers of infections from the coronavirus that has prompted shutdowns of travel and business in many parts of the world.

  • Mortgage rates fall sharply as the Federal Reserve brings stability to the mortgage market
    MarketWatch

    Mortgage rates fall sharply as the Federal Reserve brings stability to the mortgage market

    Mortgage rates seesawed lower this week after the Federal Reserve stepped in to provide some assurance to lenders who were at a loss as to how to price home loans amid the disruptions caused by the coronavirus emergency. Meanwhile, the 15-year fixed-rate mortgage fell 14 basis points to 2.92%. The trajectory for the 5-year Treasury-indexed hybrid adjustable-rate mortgage was quite different, however.

  • The Fed is going to buy ETFs. What does it mean?
    MarketWatch

    The Fed is going to buy ETFs. What does it mean?

    The Federal Reserve on Monday announced a fresh round of stimulus designed to calm markets and buffer the hit to the economy from the coronavirus pandemic. Among other steps, the Fed said it would buy exchange-traded funds that track the corporate bond market, a first for the U.S. central bank. “This will provide much-needed liquidity to the bond market and to ETFs,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA.

  • No, your 401(k) isn’t doomed. Yes, you can use this crazy market to help turn it around
    MarketWatch

    No, your 401(k) isn’t doomed. Yes, you can use this crazy market to help turn it around

    Consider: If you’re like most regular U.S. investors, you have most or even all of your stock market investments tied to just one index: The S&P 500 (SPY) which tracks the 500 biggest companies in America. It’s the biggest index in the world, and the one that most mutual funds follow when they offer a plain vanilla “U.S. stock market fund.” In the past month the S&P 500—even counting the latest rally—has fallen 17%.

  • Barron's Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More
    Benzinga

    Barron's Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More

    * This weekend's Barron's offers 25 tech stock picks for a coronavirus world. * Other featured articles look at whether drug makers should be more coronavirus-focused, stocks to buy for the long run and which dividends are safer. * Also, the prospects for a Japanese conglomerate, the top electric vehicle maker, real estate investment trusts and more."Tech Stocks to Buy Amid the Chaos" by Eric J. Savitz points out that the coronavirus sell-off is creating opportunities across the tech landscape. Five experts share their top picks, including Microsoft Corporation (NASDAQ: MSFT) and some of the FAANG stocks.Josh Nathan-Kazis's "Big Pharma and Biotech Need to Do More to Fight Against Covid-19" asks whether drug makers from Pfizer Inc. (NYSE: PFE) to Gilead Sciences, Inc. (NASDAQ: GILD) should be doing nothing else now but focusing on halting the coronavirus.In "Forget the Politics, It's Time to Buy Stocks," Jack Hough looks at why investors who can stay in the market for a decade should buy now, diversify and not worry about finding a bottom. See why Boeing Co (NYSE: BA) and others could be worth holding for the long run.Japanese conglomerate SoftBank has holdings worth almost triple its current stock price. So says "Hear Me Out: There's Still Value in SoftBank Group" by Eric J. Savitz. Among those holdings are stakes in Sprint Corp (NYSE: S) and Uber Technologies Inc (NYSE: UBER).In Lawrence C. Strauss's "Dividends Are in Danger. Here Are Some Safer Plays," see whether Nordstrom, Inc. (NYSE: JWN) is among the opportunities to find equity income right now mentioned by a global strategist featured in the article.See Also: Leon Cooperman, Others Weigh In On Whether The Stock Market Has Hit Bottom"12 Stocks Multifactor-Screened for Extra Safety" by Al Root discusses how many stocks may look like bargains, but looks can be deceiving. Barron's suggestions for navigating troubled waters include Intel Corporation (NASDAQ: INTC) and Merck & Co., Inc. (NYSE: MRK).All real estate investment trusts should not be evaluated the same, according to Lawrence C. Strauss's "Residential REITs Will Weather the Crisis Better Than Malls." Are Equity Residential (NYSE: EQR) or Simon Property Group Inc (NYSE: SPG) worth considering now?In "Buy Tesla Stock. A Comeback Will Happen Eventually," Al Root shows why a pair of Wall Street analysts are feeling optimistic about Tesla Inc (NASDAQ: TSLA) stock despite the announced factory closures and the cash burn.See more from Benzinga * Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Nike, Target And More * Barron's Picks And Pans: Big Tech Picks, Bank Stocks Large and Small And More * Bulls And Bears Of The Week: Amazon, Boeing, Coca-Cola And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • He said it in 1987 and in 2008 — now he’s saying it again: You’ll never see better bargains in the stock market
    MarketWatch

    He said it in 1987 and in 2008 — now he’s saying it again: You’ll never see better bargains in the stock market

    John Rogers, chairman of Ariel Investments, cited Sir John Templeton, urging investors to take advantage of the stock market’s recent plunge.

  • Financial Times

    Jefferies CFO dies of coronavirus complications

    Jefferies chief financial officer Peg Broadbent has become the first senior Wall Street figure known to have died from coronavirus complications. The New York-based investment bank announced his death on Sunday morning and named Teri Gendron, chief financial officer of Jefferies Financial Group, as his interim successor. “We are heartbroken and grieve that our friend and colleague, Peg Broadbent, has passed away from coronavirus complications,” Jefferies' chief executive Rich Handler and president Brian Friedman said in a joint statement.

  • Ackman says Pershing Square no longer has hedges on stocks
    Reuters

    Ackman says Pershing Square no longer has hedges on stocks

    Pershing Square earned roughly $2.6 billion by hedging its stock portfolio in early March through credit protection on investment grade and high yield credit indices. "Today, we are unhedged, and we no longer own any insurance", Ackman said in a Twitter thread https://bit.ly/2xsAEFA, adding that he continues to believe the sooner the entire United States is shut down, the more lives will be saved and the sooner the economy will recover.

  • Financial Times

    US crude oil price falls below $20

    US crude oil prices fell below $20 a barrel shortly after trading reopened on Sunday, close to their lowest level in 18 years, as traders bet production would have to shut to cope with the collapse in demand from the coronavirus pandemic. The US benchmark, known as West Texas Intermediate or WTI, hit a low of $19.92 a barrel, losing more than 6 per cent. Oil prices have fallen by more than half in the past month as widespread lockdowns in Europe and North America have slashed oil demand, with analysts forecasting as much as a quarter of normal global consumption could be lost.