|Day's Range||7.40 - 7.40|
Stocks pared overnight losses and opened slightly higher Friday morning after Gilead Sciences announced that its remdesivir treatment reduced the risk of death for Covid-19 patients, based on new data from the company. Gilead shares opened higher by about 2%.
Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.What Happened? On this day in 1832, President Andrew Jackson vetoed a bill to extend the federal charter of the Bank of the United States -- a move that eventually led to economic hardship.What Else Was Going On In The World? The 24 states of the union housed about 7.4 residents per square mile. Postage delivery cost just 25 cents for shipments over 400 miles, and butter cost about 21 cents per pound.The Collapse Begins: The BUS, which had been rechartered from Alexander Hamilton's first centralized bank, effectively lost its control over federal banking and its role in managing currency supply and interest rates."Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence, it would be more formidable and dangerous than the naval and military power of the enemy," Jackson said at the time.State-chartered banks were then empowered to issue currency, and the resulting bevy of bills soon caused price inflation, an economic bubble and, eventually, the panic of 1837.After the bubble burst in 1836, more than 600 banks failed, and unemployment spiked to 25%.See more from Benzinga * Weekly Jobless Report Improves As More US Businesses Reopen * 'Whoa': May Jobs Report Much Stronger Than Expected, Unemployment Rate Falls To 13.3% * US Initial Jobless Claims Fall Week-Over-Week, Coronavirus 'Continues To Weigh On Businesses Of All Sizes'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The SPDR S&P 500 ETF Trust (NYSE: SPY) has come roaring back in recent months, gaining more than 40% from its March lows on expectations that the economy will bounce back from the COVID-19 shutdowns in the second half of 2020 and into 2021.Unfortunately for investors, Seabreeze Partners President Doug Kass recently said that the economic fallout from COVID-19 could last for much longer than the market seems to realize."In aggregate terms, COVID-19 will likely have a sustained impact on the domestic economy -- in reduced production and profitability -- for several years, and in some industries, forever," Kass wrote.13 Reasons Why In fact, in his bear-case recovery scenario, Kass said many severely impacted industries may only ever recover between 80% and 85% of their prior peak business. Here are 13 reasons why Kass is concerned about the economic recovery. * Labor-intensive industries gutted by the outbreak, including retail, education and restaurants, may simply never fully recover completely from COVID-19 given the secular challenges they face. * Tangential industries that revolve around office space, shopping malls and other businesses that may never fully recover will also likely see their recoveries capped at around 80% of prior peaks. * Unemployment and underemployment will exacerbate the growing income and wealth gaps, which will have negative social and economic implications. * Less revenue means federal and local governments will be forced to cut services and jobs. * Tax rates will likely rise as governments look to offset lower revenue bases. * Corporations have added $2.5 trillion to their outstanding $16 trillion in non-financial debt in 2020, setting the stage for lackluster capital spending in the next several years. * The virus has created new costs of doing business for surviving companies to keep customers and employees safe, which will eat into margins and profits. * "Zombie" companies that are hanging on by a thread due to government stimulus and near-zero interest rates are competing aggressively with more healthy companies on costs, driving profitability downward as they take longer and longer to die. * Small businesses, which have historically been the largest job creators, have been hit hardest by the shutdowns. * Permanent job losses will be larger than expected and will eat into consumption. * The financial stress of the COVID-19 outbreak will lead surviving companies to be more cautious with their balance sheets, carrying more of a capital buffer and taking less risks on growth and investing. * Prolonged low interest rates puts pressure on pension funds and banks. * Rising political divisiveness over the handling of the outbreak and the economic fallout could increase partisanship and decrease the probability of constructive fiscal policy.Benzinga's Take The conditions Kass describes certainly seem to represent a worst-case outlook for investors, but they are certainly concerns worth monitoring given that the S&P 500 seems to already be pricing in a strong recovery in 2021 and beyond. Kass said there is real risk S&P 500 earnings may not exceed 2019 levels until 2023.Do you agree with this take? Email email@example.com with your thoughts.Related Links:5 Keys To Investing In The Second Half Of 2020 US Companies In 'Much Better Shape' Than Wall Street Thinks: Here's WhySee more from Benzinga * 5 Keys To Investing In The Second Half Of 2020 * US Companies In 'Much Better Shape' Than Wall Street Thinks: Here's Why * 2 Reasons Spiking COVID-19 Cases Doesn't Mean You Should Be Dumping Stocks(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As air travel begins to resume and parts of the globe cautiously begin to re-open, travel freedom and mobility has rapidly changed for many citizens in the time of the coronavirus. Premium Passports Lose Their Shine: The Henley Passport Index ranks passport power based on the number of destinations their holders can enter without a visa. An extraordinary shift in passport power has occurred due to temporary pandemic-related bans.Japan Holds No. 1 Spot: Without taking the various travel bans and restrictions into account, Japan continues to hold the No. 1 spot on the Henley Passport Index. Singapore remains in second place, while Germany and South Korea rank jointly in third. Both Japan and South Korea have been included on the EU's list of safe countries, while Singapore has been excluded.This means Singaporean passport holders have far less travel freedom than their closest competitors on the index, which is based on exclusive data from the International Air Transport Association. EU Bans American Visitors: Prior to the COVID-19 pandemic, the U.S. passport usually ranked within the top 10 on the Henley Passport Index in the sixth or seventh place, with American citizens able to access 185 destinations around the world without an advance visa. Last week, the EU released a list of countries whose residents would be allowed entry into the bloc after July 1 based on coronavirus-related health and safety criteria.The list includes Australia, Canada, Japan and South Korea, all of which have traditionally scored highly on the Henley Passport Index.The Henley Passport Index says that, in a move perceived as a stinging rebuke for its poor handling of the pandemic, the U.S. has been excluded from the list, as were Brazil and Russia.This could eventually change if the countries come to grips with the COVID-19 pandemic and manage to control the spread, or a vaccine is found. U.S. nationals now have roughly the same level of travel freedom as citizens of Uruguay , which is included on the EU's list of welcome countries and ranks 28th on the Henley index. In another striking inversion, the U.S's dramatic decline in passport power means that Americans find themselves with a similar level of travel freedom usually available to citizens of Mexico, which is 25th on the index. "As we have already seen, the pandemic's impact on travel freedom has been more drastic and long lasting than initially anticipated," says Christian Kaelin, chairman of investment migration firm Henley and Partners. The EU's recent decision will have far-reaching effects, he says. International Mobility Restricted: The Henley Passport Index says that as premium passports lose their privileges, experts suggest that the crisis is likely to make international mobility more restricted and unpredictable in the longer term."Even as countries open their borders, it is expected that numerous governments will use epidemiological concerns as a justification for imposing new immigration restrictions and nationality-targeted travel bans that will mainly be aimed at citizens of developing countries," says Yossi Harpaz, assistant professor of sociology at Tel Aviv University."The passports of both developing and developed nations stand to decrease in value, at least temporarily. In such uncertain times, global demand for dual citizenship and investor visas is expected to increase."See more from Benzinga * Martini Tax: US Considering .1B In New Tariffs On UK, European Goods * Bank Of England Boosts Bond Buying By 4B, Maintains Bank Rate * UK Formally Confirms To EU That It Won't Extend Brexit Transition(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Avenue Capital Group CEO and Milwaukee Bucks Co-Owner, Marc Lasry, joins 'Influencers with Andy Serwer' to discuss the NBA restart.
In this week's episode of Influencers, Andy is joined by Avenue Capital Group CEO and Milwaukee Bucks Co-Owner, Marc Lasry, as they discuss the pandemic's impact on the global economy, why he's throwing his support behind Joe Biden, and the return of the NBA.
Avenue Capital Group CEO and legendary investor, Marc Lasry, joins 'Influencers with Andy Serwer' to discuss the 2020 Presidential race.
Top news and what to watch in the markets on Wednesday, July 8, 2020.
Avenue Capital Group CEO and legendary investor, Marc Lasry, joins 'Influencers with Andy Serwer' to discuss the pandemic's impact on the global economy.
'Bought at the right price, both gold bullion and gold-related equities may offer investors the potential for attractive returns while mitigating downside risk' Continue reading...
Yahoo Finance's Ines Ferre speaks with hispanic small business owners about their struggle to stay afloat with COVID-19 lockdown measures still in place.
The Organisation for Economic Co-operation and Development is calling on countries to extend unemployment benefits in the face of a jobs crisis "far worse" than 2008.
Scooter Braun, Ithaca Holdings Chairman & SB Projects Founder, joins 'Influencers with Andy Serwer'