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(Bloomberg) -- Mission Advancement Corp., a company co-sponsored by former NFL quarterback-turned activist Colin Kaepernick, was little changed and thinly traded in its debut after boosting its initial public offering to raise $300 million.Shares of the blank-check firm, which boasts of a board made up entirely of “Black, Indigenous and people of color,” were flat at $10.01 Wednesday in New York. The market’s bland reception of the special purpose acquisition company gave it a market value of less than $400 million.The company, which is in part run by Jahm Najafi, who heads private-equity firm Najafi Companies, sold 30 million units for $10 apiece Tuesday. The pair will focus on diversity issues and racial justice and aim to acquire a consumer company with an enterprise value around $1 billion.A representative for Mission didn’t reply to a request for comment.Wednesday’s debut for Kaepernick’s SPAC, marked the second former-professional athlete-backed blank check company to go public in the last 10 days. Former Yankee all-star Alex Rodriguez’s Slam Corp. rose 5.1% in its first day of trading on Feb. 23, but has since trimmed gains to just 0.9%.For comparison, A-Rod’s SPAC had roughly 24.5 million shares traded in its first session compared to 13.9 million for Kaepernick’s.(Updates share movement throughout, adds trading volume in final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The early price action suggests the direction of the gold market into the close on Thursday will be determined by trader reaction to $1711.70.
(Bloomberg) -- The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as investors grappled with concern over stretched valuations.A selloff in high-flying giants such as Apple Inc. and Amazon.com Inc. outweighed gains in banks and energy producers. The Nasdaq 100 slumped to a two-month low, bringing its losses from a February peak to about 8%. The S&P 500 extended its slide into a second day, while the Dow Jones Industrial Average outperformed. Benchmark U.S. government yields approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008. Traders also assessed data pointing to a slow and uneven economic recovery from the depths of the pandemic.The rout in Treasuries has rattled nerves across the globe amid warnings of excessive optimism among equity investors after the S&P 500 surged 70% in 11 months, notching the best start for a bull market in nine decades. While there haven’t been any signs of panic, concerns over lofty valuations have emerged. The stock benchmark’s earnings yield was about 1.7 percentage points above 10-year rates: the smallest advantage in three years.“Volatility has picked up a little bit, we’ve had bigger up days and down days,” said James Ragan, director of wealth management research at D.A. Davidson. “The focus is still on rising interest rates and how that’s impacting valuations on some of the higher multiple sectors.”Data Wednesday showed that growth at U.S. service providers slowed to a nine-month low in February, when severe winter weather gripped much of the nation and limited activity. Meanwhile, the number of employees at U.S. businesses rose by less than expected, underscoring the jobs market’s struggle to recover despite a decline in Covid-19 infections in recent weeks.The U.S. economy expanded modestly in the first two months of the year and sentiment among business owners is picking up as vaccinations bolster the prospects for growth, according to the Federal Reserve’s Beige Book. President Joe Biden has agreed to moderate Democrats’ demands to narrow eligibility for stimulus checks, but party leaders in the Senate are resisting a push to trim extra unemployment benefits as they try to consolidate support for the $1.9 trillion relief-bill, a Democratic aide said.Elsewhere, oil jumped on a government report showing a record drop in domestic fuel inventories in the aftermath of a deep freeze that shuttered refineries in the U.S. South.Some key events to watch this week:OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.These are some of the moves in markets:StocksThe S&P 500 slid 1.3% as of 4 p.m. New York time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index increased 1.1%.The MSCI Emerging Market Index advanced 1.4%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.3%.The euro decreased 0.2% to $1.2066.The Japanese yen depreciated 0.3% to 106.97 per dollar.BondsThe yield on 10-year Treasuries jumped eight basis points to 1.47%.Germany’s 10-year yield climbed six basis points to -0.29%.Britain’s 10-year yield rose nine basis points to 0.779%.CommoditiesWest Texas Intermediate crude advanced 2.6% to $61.28 a barrel.Gold slid 1.4% to $1,714.77 an ounce.Silver fell 2.3% to $26.16 per ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The Bank of Japan’s head-scratching surge this week came to a halt on Friday, as the stock erased intraday gains to fall by its limit.The shares sank 19%, the most since December 1991, after rising by the daily limit in each of the four previous sessions.The volatile moves in the shares, or subscription certificates as the BOJ refers to them, has baffled market participants. While the BOJ is unusual in being a listed central bank, the stock pays a tiny dividend and holds no voting rights. In fact, the central bank doesn’t even hold shareholders’ meetings. The stock traded at an all-time low just in January.Usually little noticed or commented on, the central bank’s stock became a topic of conversation in parliament on Friday, where BOJ Governor Haruhiko Kuroda was delivering his semi-annual report on currency and monetary control.“The Bank of Japan’s subscription certificates are completely different from the normal shares of listed companies,” Kuroda said in response to a question about the long-term decline in the stock price during his time as governor. Unlike a normal stock, he said, the share price doesn’t reflect profits or the state of its balance sheet. “The price is not the responsibility of the bank.”Speculative MovesWhile technically a listed entity on the Tokyo Stock Exchange’s Jasdaq, the nature of the stock and its speculative moves are a long-standing mystery of Japan’s financial markets. A speculative surge was also witnessed in late 2012 and early 2013, when optimism over the Abenomics program of former Prime Minister Shinzo Abe was at its peak.“This isn’t a stock you can evaluate based on fundamentals,” Tomoichiro Kubota, a senior market analyst at Matsui Securities Co., said. “Seeing the BOJ stock dive like today, it looks like the upward climb is done for now.”The government holds a 55% stake, while individual investors have 40%. The subscription certificates can’t be bought at online securities firms, as they weren’t subject to the 2009 digitalization of traditional paper stock certificates. It’s the only issue for which Japan Securities Clearing Corp., the entity that clears transactions for all equities in the country, still requires physical delivery of paper certificates, which remain valid even now.This week’s short-lived rally comes after the Nikkei 225 Stock Average briefly touched its highest levels since the bubble era of the 1980s. In those days, when the benchmark traded at around 70 times earnings, some investors collected BOJ’s stock and framed their certificates as a collectible which were then worth 745,000 yen ($6,874) apiece.The moves have come ahead of a closely-watched policy review by the central bank on March 19, which may lead to changes in how it buys exchange-traded funds -- because as well as being listed, the BOJ is itself the largest single owner of Japanese shares.(Updates with closing price, quote in the seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- A record plunge in gasoline stockpiles last week is threatening to raise pump prices across America above $3 a gallon for the first time in six years.Inventories fell by 13.6 million barrels -- the most in weekly data that goes back to 1990 -- after a deep freeze paralyzed much of the Gulf Coast refining sector, according to the U.S. Energy Information Administration. Demand for the fuel meanwhile rose by the most since May.Even before the cold blast crimped gasoline production, restraint from OPEC and the U.S. shale patch had sent crude futures -- and in turn fuel prices -- skyrocketing. The higher costs are hitting just as demand is rebounding with states lifting pandemic restrictions and coronavirus vaccines becoming more widely available.If more gasoline supplies aren’t added to the market soon, prices at the pump could average $3 a gallon this summer for the first time since 2014, said Patrick DeHaan, head of a petroleum analysts at GasBuddy in a tweet. The national average was at $2.74 a gallon Wednesday, according to AAA.It may take at least another week to completely restart everything shut by the storm. Six of 16 refineries in Texas shut because of the winter storm have restarted all impacted units and are in the process of ramping up production.The margin of profit on refining crude oil into gasoline and diesel, known as the crack spread, is trending near its highest since February of 2020, with the exception of the day crude futures fell below zero. Gasoline futures in New York are nearing $2 per gallon for the first time since May 2019 after surging almost 40% so far this year.“We might see some localized shortages, and gas prices could go up,” said Trisha Curtis, chief executive officer of oil analysis firm PetroNerds in Denver. “We would expect production to return with refining margins still climbing.” Many refineries were running below capacity during the pandemic to avoid swelling inventories with unused product. Refinery utilization may increase as refineries ramp back up ahead of the summer holiday.“Folks are going to the national parks and the state parks for road trips now,” Horace Hobbs, chief economist at refiner Phillips 66, said this week at the CeraWeek virtual energy conference. “That uses a lot of gasoline.”(Updates with current gasoline price in the fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Major oil sands producers in Western Canada will idle almost half a million barrels a day of production next month, helping tighten global supplies as oil prices surge.Canadian Natural Resources Ltd.’s plans to conduct 30 days of maintenance at its Horizon oil sands upgrader in April will curtail roughly 250,000 barrels a day of light synthetic crude output, company President Tim McKay said in an interview Thursday. Work on the Horizon upgrader coincides with maintenance at other cites.Suncor Energy Inc. plans a major overhaul of its U2 crude upgrader, cutting output by 130,000 barrels a day over the entire second quarter. Syncrude Canada Ltd. will curb 70,000 barrels a day during the quarter because of maintenance in a unit.The supply cuts out of Northern Alberta, following a surprise OPEC+ decision to not increase output next month, could add more support to the recent rally in crude prices. OPEC+ had been debating whether to restore as much as 1.5 million barrels a day of output in April but decided to wait.The Saudi-led alliance closely monitors other major oil producers as it seeks to manage the entire global market, and surging production in North America was its biggest headache in recent years -- especially from U.S. shale but also from Canada.“The U.S., Saudi Arabia, Russia, Canada, Brazil and other well endowed countries with hydrocarbon reserves -- we need to work with each other, collaboratively,” Saudi Energy Minister Prince Abdulaziz bin Salman said after the group’s meeting on Thursday.Read More: Saudis Bet ‘Drill, Baby, Drill’ Is Over in Push for Pricier OilCanada’s contribution to balancing the market with less production, much like slowing output in the U.S., is not a deliberate market-management strategy but significant nonetheless.Even though the output cuts are short-term, the battered oil-sands industry shouldn’t be a concern for the Saudis in the long run either, judging from McKay’s outlook for the industry.“I can’t see much growth in the oil sands happening because there is going to be less demand in the future,” he said. “The first step is we have to get our carbon footprint down.”After years of rising output turned Canada into the world’s fourth-largest crude producer, expansion projects have nearly halted on the heels of two market crashes since 2014.Adding to its struggles, Canada’s oil industry is being shunned by some investors such as Norway’s $1.3 trillion wealth fund amid concern that the higher carbon emissions associated with oil sands extraction will worsen climate change. These forces help make future growth in the oil sands unlikely, said McKay, whose company is among the largest producers in the country.Oil sands upgraders turn the heavy bitumen produced in oil sands mines into light synthetic crude that’s similar to benchmarks West Texas Intermediate and Brent. Syncrude Sweet Premium for April gained 60 cents on Thursday to $1.50 a barrel premium to WTI, the strongest price since May, NE2 Group data show.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Some households are collecting a big pile of federal money in 2021.
The president has agreed to a compromise making millions ineligible for the third checks.
(Bloomberg) -- A new exchange-traded fund seeking to ride the companies most loved by investors online has found plenty of its own positive sentiment in its first day of trading.About $438 million worth of shares in the VanEck Vectors Social Sentiment ETF (ticker BUZZ) changed hands on Thursday, making it the third best ETF debut on record, according to data compiled by Bloomberg.“Normally, this kind of blow-the-roof-off volume for the first day is for ETFs that open up a new asset class like gold or Bitcoin,” said Eric Balchunas, ETF analyst for Bloomberg Intelligence.The fund, which has been promoted by Barstool Sports Inc. founder Dave Portnoy, follows an index that uses AI to scan online sources like blogs and social media to identify the 75 most favorably mentioned equities.Because of its criteria for inclusion, the hottest names among the day-trading crowd like GameStop Corp. and AMC Entertainment Holdings Inc. don’t actually make it into the gauge. Its top holdings currently are Ford Motor Co., Twitter Inc. and DraftKings Inc.Nonetheless, the rapid uptake suggests VanEck has succeeded in tapping into the increasingly powerful retail investing cohort.“Given the explosion of individual, younger retail traders, it makes sense to see a pile of volume,” said Dave Lutz, macro strategist at JonesTrading. “Whether it is the WSB crowd embracing Dave Portnoy’s marketing of the ETF, or institutions playing it to bet on the direction of the trend (or hedge) -- we won’t know for a bit. I suspect it’s a bit of both.”The fund opened at $24.40. It was down 1% at $24.15 at 12:02 p.m.(Updates with latest figures, analyst comments.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Despite the recent selloff in electric-vehicle stocks like Tesla and Nio, there is still intense investor interest in the sector, with demand for electric-vehicles expected to climb dramatically over the next decades.
Congress is nearing passage of the third economic stimulus check it will send out to you and other taxpayers as part of its Covid-19 relief bill.
Virgin Galactic Holdings Inc. Chairman Chamath Palihapitiya sold off a chunk of his shares this week, and played a part of the plunge in prices.
A firm hired to monitor Texas' power markets says the region's grid manager overpriced electricity over two days during last month's energy crisis, resulting in $16 billion in overcharges.
Powell and his policymakers have until March 17 to regain control of monetary policy or they could face a creditability issue.
(Bloomberg) -- Paraguay will refrain from lifting borrowing costs from record lows until policy makers are sure the recovery has taken hold and even then the path to neutral rates “will be a gradual process,” according to its central bank chief.“Given that inflation expectations are anchored, that gives us sufficient room to continue supporting the economy,” Jose Cantero said in a video interview on Thursday.Inflation, now at 2.5%, isn’t expected to approach the central bank’s 4% target until well into 2022, he said. Analysts surveyed by the central bank last month expect policy makers will lift the benchmark rate to 1.25% from the current 0.75% by year-end and 1.75% in 2022. Cantero declined to comment on what the central bank considers a neutral rate level.Cantero, like his counterparts worldwide, is facing the critical issue of how to time the withdrawal of loose monetary policy. Fiscal stimulus and optimism fueled by the rollout of vaccines has revived investor jitters about inflation and sent U.S. Treasury yields soaring. Paraguay’s biggest trading partner, Brazil, is expected to tighten later this month.The central bank under Cantero cut its key rate by 325 basis points in the space of just four months, the biggest cumulative easing last year among South American countries with inflation targeting regimes, and freed up liquidity of roughly $3.8 billion, or 11% of gross domestic product, including loans to the Treasury and lower deposit reserve requirements. Congress also authorized the government to borrow $1.6 billion to spend on the pandemic.Paraguay responded to the crisis “like an investment grade country“ and its economy probably shrank less than 1% in 2020, Cantero said. Major credit rating companies have Paraguay one notch below investment grade.On The MendParaguay’s still limited integration with the global economy is an advantage during the current bout of financial market volatility triggered by rising U.S. bond yields, Cantero said.“Our economy is back on its feet and on track to grow 4%,” Cantero said. The central bank expects construction, manufacturing and retail will underpin the recovery this year, he added.The landlocked farming and ranching nation could grow at its fastest pace since 2017 this year thanks to that flood of stimulus and a rebound in commodities prices. The government’s decision to lift many lockdown measures last year also helped boost the economy, though at the cost of higher infection rates.Latin America is one of the region’s hardest hit by the pandemic, and many countries are struggling to obtain enough vaccines. Paraguay has received just 4,000 doses for its 7 million people and local media has reported shortages of critical drugs and medical supplies in public hospitals.In its Article IV consultation with Paraguay, the IMF warned against withdrawing fiscal support prematurely in case the pandemic worsens or bad weather harms the economy.The central bank flagged Covid-19 as a risk to the economy in its Feb. 22 policy meeting, where it kept its key rate at 0.75% for an eighth consecutive month.That growth outlook is helping Paraguay’s currency outperform South American peers. The Guarani gained almost 0.2% to close at 6,669 per U.S. dollar Thursday, for a year-to-date gain of 3.6%, according to data compiled by Bloomberg.(Updates with IMF comment about fiscal stimulus, risks in 11th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Now might be "a golden opportunity" to own the "secular tech winners" for the next 12 to 18 months, according to Wedbush analyst Daniel Ives.
Mortgage rates have risen past a psychological benchmark for the first time since they fell to historic lows during the pandemic. The average rate on a 30-year fixed-rate mortgage increased to 3.02% this past week, according to Freddie Mac’s Primary Mortgage Market Survey—the first time since July that the rate has risen above 3%. “Since reaching a low point in January, mortgage rates have risen by more than 30 basis points,” wrote Freddie Mac’s chief economist, in a release.
(Bloomberg) -- Endo International Plc is trying to get more breathing room on its debt as it contests with ongoing opioid and patent litigation and an expected drop in earnings.The drug company said it will issue new debt to refinance its $3.3 billion loan coming due in 2024, leaving the same guarantees and collateral in place while pushing out the due date, according to a statement Thursday. The financing, if completed, is not expected to increase Endo’s total debt load.The company is in talks for a $2.295 billion first-lien term loan managed by JPMorgan Chase & Co., for which commitments are due March 11, according to people familiar with the matter. Endo is also planning to borrow $1 billion in other senior secured first-lien debt, said the people, who asked not to be identified as the details are private.Endo is one of several pharmaceutical companies accused of downplaying opioids’ risks and over-selling their benefits, and finds itself tangled in expensive, ongoing litigation. With competitors like Purdue Pharma LP and Mallinckrodt Plc, manufacturers may pay a total of $20 billion in a settlement with states and other municipalities, according to Bloomberg Intelligence analyst Holly Froum.Endo, which had been reportedly trying to pull out of talks with other drug-makers and distributors seeking an industry-wide settlement, may pay less than $3 billion, Froum said. The company reached a prior agreement with New York related to the marketing of its Opana painkiller, which limits the state’s claims in an upcoming court trial, Froum said.The company “remains engaged in settlement discussions” and “is open to a reasonable resolution,” said Chief Legal Officer Matthew Maletta. If that’s not possible, Endo is prepared to defend itself in trial, he said in emailed comments.Reworking DebtsDublin-based Endo has been cutting costs and reworking its balance sheet amid the lawsuits and a generic drug business that has pressured earnings. It faces further uncertainty around patent litigation tied to its low-blood-pressure drug Vasostrict, which has a trial set for July.The refinancing makes Endo’s debt maturities over the next four years more manageable with existing and future cash flow, Moody’s Investors Service said in a report Thursday. The transaction will also extend a portion of its revolver expiration to March 2026, the rater said.Endo ended 2020 with $1.2 billion of unrestricted cash and is anticipating a decline in revenue and earnings this year driven by its generics unit. It’s now focused on growing Ebitda, or earnings before interest, tax, depreciation and amortization, Chief Financial Officer Mark Bradley said at a conference hosted by JPMorgan Chase & Co. this week.“We hope that by doing that, we also delever,” Bradley said. “Then we would look at buying back debt to the extent it makes sense.”Endo launched a $2.85 billion debt exchange in May to give itself more time to focus on a turnaround, pushing out its balance sheet by around five years. Its first-lien bonds due 2027 trade near 108 cents on the dollar, while the unsecured notes due 2028 are hovering around 86 cents, according to Trace.(Updates with company comment in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
GameStop shares closed up 6.4% at $131.93 after earlier hitting $147.87, their highest since a surge in the heavily shorted stock late last month. One analyst and some Twitter users pointed to a cryptic tweet by Ryan Cohen, a major shareholder of GameStop and founder of e-commerce firm Chewy.com, as a plausible reason for the move, although Reuters could not independently determine causation. The late afternoon rally in GameStop began roughly around the time that Cohen tweeted what appeared to be a screenshot with the puppet dog advertising mascot of Pets.com, a famous casualty of the dotcom bubble two decades ago.
Tesla Inc (NASDAQ: TSLA) could create a “positive momentum” if its sold its Bitcoin (CRYPTO: BTC) holdings and initiated a buyback of its stock, according to Gary Black, a private investor and former CEO of Aegon Asset Management. What Happened: Black aired his views on social media Thursday in a series of tweets. “Imagine the positive momentum [Tesla] would create if they announced the sale of their [Bitcoin] position, and authorized a [Tesla] stock buyback instead.” wrote Black. See also: How to Invest in Tesla Stock The investor acknowledged that the prospect was “unlikely” but shareholders would support such a move. Investors who say #btc has less risk than govt bonds or gold haven’t done their research. Govt bonds have ~2% risk, defined as monthly volatility of returns. Gold ~3% risk. US equities ~6% risk. #btc has ~20% risk, further out on the risk curve than almost any other asset class. pic.twitter.com/OjMyWYU0Oa — Gary Black (@garyblack00) March 4, 2021 According to Black, if you asked 100 institutional investors in the Elon Musk-led company if they would prefer to invest $1.5 billion of excess cash in BTC or in Tesla stock, 95/100 would choose the stock. Why It Matters: Black isn’t the only analyst crying foul over Tesla’s investment in BTC. Last month, GLJ Research analyst Gordon Johnson said the automaker had “run out of viable internal uses” of its capital. “We see this as a sign of desperation from a CEO whose company is facing real competition for the first time ever,” wrote Johnson. Tesla had purchased .5 billion worth of BTC in February, amid increased institutional support for the cryptocurrency. Jack Dorsey-led Square Inc (NASDAQ: SQ) and Tesla combined have spent over billion to buy 151,919 BTC. Those coins are worth almost $7.19 billion as of press time when BTC traded 6.99% lower at $47,347.62. MicroStrategy Incorporated (NASDAQ: MSTR) meanwhile holds 90,531 BTC, purchased at an average price of $2.171 billion, as of late February now worth about almost $4.286 billion. Price Action: Tesla shares fell 3.43% in after-hours trading on Thursday to $600.10 after closing 4.86% lower at $621.44. Click here to check out Benzinga’s EV Hub for the latest electric vehicles news. Latest Ratings for TSLA DateFirmActionFromTo Feb 2021Morgan StanleyMaintainsOverweight Feb 2021Piper SandlerMaintainsOverweight Jan 2021Deutsche BankMaintainsBuy View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaAnalyst Who Predicted ,000 Bitcoin Sees Key Metric Indicating 'March To 0,000'How Square's Purchase of Jay Z's Tidal Could Popularize Blockchain© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.