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The market 'looks the most like the crash of 1929,' he says.
President Donald Trump prepares Americans for more difficult days ahead as the coronavirus (COVID-19) death toll continues to escalate.What Happened At the daily White House coronavirus briefing, Trump described himself as a "cheerleader for our country" but struck a somber note speaking about possible fatalities. White House officials are predicting the death toll from COVID-19 could range from 100,000-240,000 Americans.Recognizing the devastating effect of COVID-19, Trump said, "When you look at night, the kind of death that has been caused by this invisible enemy, it's incredible."Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Why It Matters According to the Johns Hopkins Coronavirus Resource Center, as of Wednesday, the United States had 189,624 COVID-19 cases, which is more than any other country in the world. The hardest-hit state has been New York. New York City alone has seen 43,119 cases and more than 1,096 deaths.The outbreak in New York may not peak for three weeks, according to the state's Governor Andrew Cuomo.Nationally, the fatalities are set to peak over the next two weeks, according to Dr. Deborah Birx, coordinator for the White House coronavirus task force and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, as reported by CNBC.See more from Benzinga * Trump Signs Coronavirus Relief Bill, ECB Injects 1B In Liquidity, Japan Considers Cash Payouts * Health Care Dominates Sanders-Biden Debate, Promises Of Female Vice President Made * US Stocks, Dollar Decline After Trump Announces Suspension Of Travel From Europe(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This represents some good news, not only for the global economy but for those of us elsewhere in the world still awaiting peak coronavirus contagion and an economic recovery beyond it.
We don’t know when this bear market will end. But when it does, Fisher Investments believes the rebound will likely be much like the past: swift, and surprising to most. Continue reading...
Movers Indices • S&P 500 ETF (NYSE:SPY) rose 2.18% to $259.53.• Nasdaq ETF (NASDAQ:QQQ) rose 3.02% to $190.90.• Dow Jones Industrial Average ETF (NYSE:DIA) increased 2.14% to $221.24.• FTSE/Xinhua China 25 ETF (NYSE:FXI) rose 2.74% to $37.07.• FTSE Europe ETF (NYSE:VGK) increased 0.86% to $42.98.Commodities • United States Oil ETF (NYSE:USO) fell 4.36% to $4.28.• Gold ETF (NYSE:GLD) increased 0.09% to $152.42.Bonds • 20+ Yr Treasury Bond ETF (NASDAQ:TLT) increased 0.85% to $169.13.Industries • Retail ETF (NYSE:XRT) decreased 0.03% to $30.03.• Energy (NYSE:XLE) increased 0.62% to $28.50.• Technology (NYSE:XLK) rose 3.61% to $81.49.• Financial (NYSE:XLF) rose 0.86% to $21.18.Stocks Higher • Johnson & Johnson (NYSE:JNJ) increased 6.98% to $131.88.• BioNTech (NASDAQ:BNTX) increased 13.42% to $62.38.• Owens & Minor (NYSE:OMI) rose 32.73% to $7.30.Stocks Lower • ING Groep (NYSE:ING) decreased 9.27% to $5.48.• Groupon (NASDAQ:GRPN) decreased 21.88% to $1.Top News • Benzinga Pro's Stock To Watch For Mon., Mar. 30, 2020: Johnson & Johnson (JNJ) https://www.benzinga.com/pre-market-outlook/20/03/15693692/benzinga-pros-stock-to-watch-for-mon-mar-30-2020-johnson-johnson-jnj• Carly Fiorina Blasts Corporate Bailout Funding In $2T Coronavirus Relief Bill https://www.benzinga.com/general/politics/20/03/15690587/carly-fiorina-blasts-corporate-bailouts-funding-in-2t-coronavirus-relief-bill• Mercedes F1 Develops Breathing Aid That Eliminates Need For Ventilators https://www.benzinga.com/news/20/03/15691133/mercedes-f1-develops-breathing-aid-that-eliminates-need-for-ventilators• 31 Stocks Moving in Monday's Pre-Market Session https://www.benzinga.com/news/20/03/15692662/31-stocks-moving-in-mondays-pre-market-session• Mark Zuckerberg And Priscilla Chan Donate $25M To Gates Foundation Coronavirus Accelerator https://www.benzinga.com/news/20/03/15690761/mark-zuckerberg-and-priscilla-chan-donate-25m-to-gates-foundation-coronavirus-acceleratorUpcoming Earnings • CUI Global (NASDAQ:CUI) will release earnings today for Q4. Last year, for the same quarter, they reported an EPS of -$0.1 and revenue of $26,952,000. Analysts predict the revenue to be around $5,950,000 and the EPS to be at -$0.11.Earnings Recap • Cal-Maine Foods (NASDAQ:CALM) reported earnings today for Q3, higher than consensus estimates. They reported an earnings per share of $0.28, and sales of 345,588,000. Last year, for the same quarter, they reported an EPS of $0.82 and revenue of $383,992,000.See more from Benzinga * Cal-Maine Foods: Q3 Earnings Insights * 5 Communication Services Stocks Moving In Monday's Pre-Market Session * 18 Healthcare Stocks Moving In Monday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This week's surveys of purchasing managers from around the world may show the level of economic damage from COVID-19. Also U.S. unemployment claims, are expect to climb again.
After several sharp days of rallying, investors were greeted with harsh losses in the stock market today.The SPDR S&P 500 ETF (NYSEARCA:SPY) opened lower by about 3% and fell almost 4% at its lows. However, the market regained its footing for most of the afternoon, as investors awaited the House result for the $2.2 trillion stimulus bill -- the CARE Act.The House vote passed, putting it up to President Donald Trump to push through. With less than an hour to go in the regular trading session, Trump tweeted that he "will be signing" it at 4 p.m. ET in the Oval Office.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhich he did. CARE Passes, Now What?Where we go from here will be interesting now. Do investors view this as a "sell-the-news" event? It's not as if we didn't know about the $2.2 trillion plan until Friday afternoon. It's been in the news all week, as the Senate gave the green light and sent it to the House. Or will investors view this as the "missing piece" and one less unknown cleared up about the current situation, giving them confidence to continue bidding up equities? * 10 Undervalued Stocks Crashing on the Coronavirus Pandemic With the CBOE Volatility Index (VIX) still north of $60, we'll find out soon enough.Passing the CARE act will provide relief across the board. Money will be dispersed to hospitals, citizens, small and midsize businesses and corporations. It comes as the U.S. becomes the most infected country in terms of confirmed coronavirus cases.The U.S. started the month with only 75 confirmed cases and is now just shy of 100,000 cases. With the numbers continuing to grow rapidly, it's having a catastrophic impact on virtually everything and everyone.Many retailers are stepping up to help the fight against the coronavirus outbreak. Companies such as Canada Goose (NYSE:GOOS), Gap (NYSE:GPS), HanesBrands (NYSE:HBI) and Ralph Lauren (NYSE:RL) are beginning to produce face masks, scrubs and gowns for the growing shortage at most hospitals. Target (NYSE:TGT), Lowes (NYSE:LOW) and Home Depot (NYSE:HD) are pulling their weight too, as they redirect supply to healthcare workers. Movers in the Stock Market TodayCruise ship companies are hurting, with many left out of the stimulus package. That's despite President Trump wanting to help major cruise lines. Companies such as Carnival Cruise (NYSE:CCL), Norwegian Cruise Line (NYSE:NCLH) and Royal Caribbean (NYSE:RCL) don't meet the criteria for help as the companies are not incorporated in the U.S.General Motors (NYSE:GM) dealt out tough news to its 69,000 salaried employees. The automaker will cut 20% of their salaries starting April 1st. There is a slight bright side though, as employees will be repaid with no interest in a lump sum no later than March 15, 2021. About 6,500 other employees who can't work from home will be taking a paid leave of absence collecting 75% of their pay and keeping their health care benefits. Even CEO Mary Barra will be taking a 30% salary cut along with other GM executives. GM's reopen date for its North American plants is still TBD.ICYMI -- Ford (NYSE:F) plans to start re-opening its North American plants next month, while GM recently tapped $16 billion from its credit lines.Tesla's (NASDAQ:TSLA) Nevada battery plant -- Gigafactory 1 -- will be cutting about 75% of its on-site workers. This comes after the company's battery partner, Panasonic said it will decrease operations because of the coronavirus. Tesla will also be suspending production of its New York solar roof tile factory as it begins producing ventilators. The company's Fremont factory has already temporarily suspended production.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 * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Stock Market Today: The $2 Trillion Stimulus Check Is In the Mail appeared first on InvestorPlace.
In an effort to curb the economic damage already done by the coronavirus, U.S. Rep. Rashida Tlaib (D-Michigan) has proposed a $2-trillion solution -- and awakened a 2013 hashtag in the process. The MintTheCoin campaign is trending as idled workers demand a complex response to unemployment triggered by the pandemic. Tlaib's Proposal The Automatic BOOST to Communities Act would equip everyone under U.S. authority -- children, non-citizens, U.S. territory residents and Americans living abroad -- with a debit card initially loaded with $2,000. Each month, the cards would be reloaded with $1,000 until one year after the coronavirus outbreak ends. The program would be funded by the U.S. Treasury, which would direct the Mint to print two $1-trillion platinum coins under Congressional authority. The Federal Reserve would then purchase the coins in exchange for credit of $2 trillion in reserves, and the Treasury would offer the reserve funds to the Bureau of the Fiscal Service. The Bureau would then disperse the money with debit cards.This complex mechanism would prevent the government from having to raise its debt ceiling."In the long term, the card infrastructure should be converted into a permanent, Treasury administered digital public currency wallet system, to serve as a privacy-respecting 'eCash' complement to universal Fed Accounts and/or Postal Bank Accounts for All," Tlaib's bill said."This proposal should be accompanied by progressive tax reform to ensure that emergency relief provisioning does not exacerbate income or wealth inequality in the long-term."Congressional peers have since proposed tweaks to Tlaib's bill, including digital distribution.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.The Campaign Tlaib resuscitated an old hashtag for her proposal campaign.> Let's pass the ABCAct MintTheCoin and get these debit cards to everyone. Stop messing around with people's lives.> > -- Rashida Tlaib (@RashidaTlaib) March 25, 2020Back in 2013, Rep. Jerry Nadler (D-New York) proposed a similar plan to get around the national debt ceiling and prevent the U.S. from defaulting on its debt. Nadler introduced a bill to mint a $1-trillion platinum coin.At that time, critics said the expansion of money supply would cause sharp inflation and worsen a downturn. Congress ultimately rejected the proposal and instead raised the debt ceiling.This time around, the campaign still has its critics.> The MintTheCoin geniuses basically want to double the monetary base overnight. And they also have no idea what doubling the monetary base means.> > What could go wrong, right> > So so sick. Someone please stop this mayhem> > -- Quoth the Raven (@QTRResearch) March 22, 2020But it has also picked up public support.> This is leadership and compassion. MintTheCoin https://t.co/JWZnNds5k2> > -- David Buettner (@badivad) March 22, 2020> Canada is now giving all citizens $2,000/month for four months. America can and should also. Make UniversalUBI first on your list. MintTheCoin @SpeakerPelosi @SenSchumer @BernieSanders @RashidaTlaib @AOC> > --U.S. Rep Rashida Tlaib. Benzinga file photo by Dustin Blitchok.See more from Benzinga * Powell Expects Atypical Downturn As Liquidity, Credit Dries Up, But Says 'Nothing Fundamentally Wrong With Our Economy' * 4 'Doomsday' Predictions For The Coronavirus Market * Mark Cuban Calls COVID-19 Outbreak The 'Ultimate Definition' Of A Black Swan Event(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
While a $2 trillion stimulus package would certainly go a long way toward getting the U.S. economy "unstuck," it???s unclear yet whether this would be enough to prime the pump to move industries back into positions of strength.
This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Bret Kenwell's choice for the contest is the SPDR Innovative Technology Fund (NYSEARCA:XITK).Finding the best ETFs for 2020 has been particularly difficult after the coronavirus from China curve ball. My pick for the contest, the SPDR Innovative Technology Fund (NYSEARCA:XITK), was off to a strong start, rallying more than 13% in the first six weeks of the year. However, like many names, XITK has been crushed.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe exchange-traded fund fell 36% from peak to trough and is currently down about 13.4% year to date. However, amid those depressing losses sits a couple pieces of good news.While the peak-to-trough decline in the ETF is ugly, it wasn't out of line with the S&P 500. In fact, it was roughly in-line with the 35.6% high-to-low drawdown we saw in the SPDR S&P 500 ETF (NYSEARCA:SPY).Second, the SPY rallied just 5.6% to its 2020 high, before being smashed as volatility rose. In other words, it rose half the amount that the XITK ETF did before suffering a similar decline. Lastly, with the XITK down a lackluster 13.4% year to date, the SPY still lags that performance by 1,000 basis points, currently down 23.4%.So, it's not all bad news. A Closer Look at XITKOne reason this ETF is holding up so well? Zoom Video (NASDAQ:ZM).ZM stock has exploded higher, rallying more than 100% so far in 2020. That's the No. 1 holding in the XITK ETF at the moment, although it only has a weighting of 2.4%. * 7 U.S. Stocks to Buy on Coronavirus Weakness Other top holdings include Netflix (NASDAQ:NFLX), Shopify (NYSE:SHOP) and Slack (NYSE:WORK).Some of these stocks are benefiting from the coronavirus outbreak. Those under stay-at-home and quarantine orders have little to do but stream video (like Netflix). Meanwhile, Slack continues to see users flock to its platform as teams work remotely. But not all of the ETF's holdings have managed to avoid pain.Still, five of the top ten holds in the XITK are positive over the last three months. Only one -- Amazon (NASDAQ:AMZN) -- can make a similar claim in the SPY.But here's the most encouraging observation to me: This growth-stock ETF should be badly lagging the S&P 500. It shouldn't be in-line with it and it certainly shouldn't be outperforming it right now. I don't want to get too optimistic here, but so far, we are only suffering SPY-equivalent losses on the downside, while reaping more upside when stocks are rallying.I'm not sure when or where the stock market will ultimately bottom. For all we know, maybe it already did. In any event, to see such solid performance out of XITK gives me confidence that when COVID-19 blows over and the market gets back into "rally mode," this ETF is going to fly higher. Is It Still One of the Best ETFs for 2020? Click to Enlarge Source: Chart courtesy of StockCharts.comAfter peeling back some of the layers on this ETF, we've found some more interesting data points. For instance, over the past year, the ETF is down less than 5%. That compares to a near-12% decline in the SPY during the same timeframe.Despite its rapid fall from the highs, XITK has dominated the SPY on multiple fronts. The most glaring is the 56.1% return over the last three years vs. a return of just 5.3% for the SPY ETF. Further, the XITK has superior returns over the last one month, three months, six months and since its inception in January 2016.The XITK ETF is now a four-star rated ETF by MorningStar, while commanding a risk-rating of just "moderate." Admittedly, it has "above-average" risk, but it also has "high" returns. That's clear from some of the data points above.The most recent ETF report writes, "although this fund employed greater risk during the last 3 years than other funds in its category, it has been compensated for that risk with a positive Alpha [outperforming its benchmark] and Sharpe Ratio of 1.11."At the end of the day, it's my observation that the XITK has led to outsized returns while maintaining reasonable drawdowns compared to the S&P 500. As a result, I am looking for an eventual rebound in the fund. If we can get a sharp economic rebound in the third and fourth quarter, the ETF could certainly be one of the best performing ETFs of 2020.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post Best ETFs for 2020: SPDR Innovative Technology Fund Still Has Room to Run appeared first on InvestorPlace.
A recession is the scariest creature in the average investor's closet of anxieties. Even though the last recession ended more than a decade ago, people fear recessions because they can mean lower home prices, lower stock prices - and no job.Any number of things can cause, or exacerbate, a recession: an exogenous shock, such as today's COVID-19 crisis (which now has even Federal Reserve chairman Jerome Powell admitting that we might currently be in a recession) or the Arab oil embargo of 1973; soaring interest rates; or ill-conceived legislation, such as the Smoot-Hawley Tariff Act of 1930.Recessions are parts of the warp and woof of a dynamic economy, albeit unpleasant ones. If you're prepared for a recession, there will be plenty of opportunities when the recession ends. Thus, the more you know about recessions, the better. Here are 10 must-know facts about recessions. SEE ALSO: Where Is the Stock Market Headed? 14 Wall Street Pros Sound Off