Jonathan Corpina, Senior Managing Partner at Meridian Equity Partners and NYSE Equity Trader, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how NYSE floor traders are faring amid the coronavirus outbreak.
The company said the suspensions were the result of initial recommendations from a special committee appointed to investigate issues in its consolidated financial statements for the fiscal year ended Dec. 31. An initial investigation showed that total sales tied to fabricated transactions from the second quarter of 2019 to the fourth were about 2.2 billion yuan ($310.02 million), Luckin said. The special committee had indicated to the board that COO Jian Liu and several employees reporting to him had engaged in the misconduct, the company disclosed in a filing, adding that the internal investigation was at a preliminary stage.
It seems President Trump is as deluded as ever with his grand statements -- perhaps not reckoning the sheer stroke of genius on the part of Saudi Arabia and Russia to actually corner the U.S. via crippling its shale oil industry. Oil prices are down 60% from the highs in February 2020 as price has been hit not only by around 25 million barrels per day of demand lost but also by the surge of around 3 mbpd, as Saudi Arabia finally gave up on being the lone player supporting this market to help U.S. shale and other players grab their lost market share. The oil market has been in perennial oversupply for the past two years, with only Saudi Arabia and Russia supporting the price by taking about 2 mbpd out of the market, helping the U.S. shale companies to keep pumping and raking in more revenue.
There aren't a lot of investors who can say they warned clients about the coronavirus crisis and eventual 30% stock market collapse, but hedge fund founder Dan Niles is certainly one of them. In a February letter obtained by Yahoo Finance sent to clients of his long-short Satori Fund, Niles warned he was becoming “increasingly worried” that central bank accommodativeness was overshadowing the impact that COVID-19 would have on the global economy. After adjusting his position before the S&P 500 fell by more than 30%, his Satori Fund finished the first quarter in the green.
Like the big cats on the Netflix sensation Tiger King, refinances are roaring — while mortgage rates slink back near their lowest levels in history. As homeowners grab low rates by the tail to cut their monthly house payments, mortgage refinances have rebounded, a trade group says. For every $100,000 borrowed through a 30-year mortgage in 2020, you pay about $60 a month less than you would with a loan that was taken out 2019 when rates were higher, LendingTree chief economist Tendayi Kapfidze said recently.
As dozens of companies have cut or suspended dividends in recent weeks to preserve cash amid the uncertain impact of the coronavirus pandemic on the economy, the deteriorating payout picture has become a familiar refrain in this column. Barron's started with the S&P 500 Dividend Aristocrats, which have raised their dividends for at least 25 straight years, for ideas. The group has 64 members, and with the help of FactSet data, we whittled it down to eight that appear to have some bulwark to maintain their dividends, as the accompanying table shows.
Luckin Coffee Inc. (lk) shares sank 81% in Thursday trading after it formed a special committee of three independent directors to investigate "misconduct, including fabricating certain transactions" that spanned the second through fourth quarters of 2019 and involves RMB2.2 billion (about $310.1 million). Jian Liu, chief operating officer at Luckin Coffee and a director of the company, has been suspended along with other staff implicated in the misconduct. Luckin Coffee may also take legal action against those involved.
The question that came up most is whether investors should sell their stocks now and buy them back later when they decline further. The spread of coronavirus and the resulting economic damage is expected to worsen. As it does, the thinking goes, stocks will continue to decline.
Market forces rained on the parade of Arconic Inc. (NYSE:ARNC) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Following the latest downgrade, the current consensus, from the six analysts covering Arconic, is for revenues of US$6.0b in 2020, which would reflect a concerning 58% reduction in Arconic's sales over the past 12 months.
Luckin Coffee Inc. , a China-based rival to Starbucks , said Thursday that it has launched an investigation into "fabricated sales" reports that could have totaled more than $300 million. Nasdaq-listed Luckin said it's assessing the impact of the investigation into the fake sales, which is traces back to the second quarter of 2019 and is linked to its chief operating officer, on its current financial statements. "The information identified at this preliminary stage of the Internal Investigation indicates that the aggregate sales amount associated with the fabricated transactions from the second quarter of 2019 to the fourth quarter of 2019 amount to around RMB2.2 billion ($310 million)," the company said in a filing with the U.S. Securities and Exchange Commission.
Reuters sources say the carrier is in talks with unions to suspend around 32,000 staff. The BBC says the number could go as high as 36,000. That after BA cut flying capacity by 75% in April and May.
Already, it looks as if the U.S. is moving towards a temporary moratorium on mortgage payments. Fannie Mae and Freddie Mac unveiled an emergency program which provides a two-month deferral of mortgage payments for any homeowner who claims to be facing a hardship because of the virus. Many of you may sense that the virus has undermined what you thought was still a fairly strong housing market around the country.
a href="https://www.marketwatch.com/investing/stock/ftnt" (FTNT) 2.2% -16% -6% 52% 12/31/2019 Computer Communications IPG Photonics Corp.
The husband of Georgia Sen. Kelly Loeffler recently acquired as much as $415,000 in stock in DuPont de Nemours, a chemical company that manufactures protective equipment in exceedingly high demand because of the coronavirus pandemic. The transaction, detailed in a mandatory disclosure the Republican filed late Tuesday, comes as senators in both parties have faced questions about the stock transactions they made in the weeks before the coronavirus upended the U.S. economy, wiping out jobs and personal wealth. Senate Intelligence Committee Chairman Richard Burr, R-N.C., whose sales of as much as $1.7 million in stocks have come under the most scrutiny, requested an ethics review of his actions in the days before markets dropped in February.
Unfortunately for some shareholders, the Wells Fargo (NYSE:WFC) share price has dived 34% in the last thirty days. All else being equal, a share price drop should make a stock more attractive to potential investors. In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious).
Dow Jones futures rose early Thursday, along with S&P 500 futures and Nasdaq futures, with another huge jobless claims figures on tap. The Dow Jones and other major indexes tumbled Wednesday as new coronavirus cases in the U.S. and worldwide hit record highs yet again. A stock market rally attempt continues, but for now it's still a coronavirus bear market.
In the first three weeks of March, Walgreens' comparable sales rose about 26%, Chief Financial Officer James Kehoe said on a call Thursday with Wall Street analysts, adding that health and grocery sales surged while discretionary categories like beauty slumped. Earlier Thursday, Walgreens posted better-than-expected results for its second quarter but cautioned that the Covid-19 pandemic makes the future uncertain.
Retirees don't need to worry about taking the required minimum distribution from their retirement accounts this year. The government waived that rule as part of the $2 trillion stimulus package meant to provide financial relief to Americans. Normally, retirees who have not yet started withdrawing from their retirement plans, including traditional IRAs and 401(k) plans, must take a required minimum distribution from their accounts when they turn 72 years old.
Dev Kantesaria, Valley Forge Capital Management Founder, joins Yahoo Finance's Alexis Christoforous, Brian Sozzi and Heidi Chung to discuss how the markets are faring amid coronavirus.
Boeing Co (NYSE: BA) shares traded lower by another 11.8% on Wednesday as the stock market experienced yet another volatile trading session. At 9:30 a.m., a trader bought 1,465 Boeing call options with a $170 strike price expiring on Sept. 18 near the ask price at $21. At 1:01 p.m., a trader bought 509 Boeing put options with a $100 strike price expiring on April 17 near the ask price at $4.651.
Kicking off the second quarter of 2020, all three of the major U.S. stock indexes dropped more than 4% yesterday in response to an update from the Trump administration. Late on March 31, the President stated the next two weeks will be “painful," with health officials predicting a significant spike in COVID-19-related deaths. As U.S. stock futures tick up on April 2, investors are worried the volatility is here to stay, and new economic data hasn't calmed these fears.
The optimism that permeated equity markets last week when U.S. stocks posted their biggest gains since the 1930s has once again given way to a feeling of despair, with the S&P 500 Index falling 6% over the course of two days. Yes, moves by fiscal and monetary authorities have shored up the all-important “plumbing” of the financial markets, but that is looking more and more like an act of triage than a catalyst to recovery. No one at this point in the pandemic crisis can confidently say how deep and long-lasting the coming recession will be, and that's keeping markets stuck in their own form of purgatory.
One would be that the deal trashed Oxy's relationship with shareholders and saddled it with too much debt, leading to chronic underperformance and, when disaster struck, a massive dividend cut. Ms. Hollub enhanced the value of Occidental's portfolio of assets through the Anadarko acquisition, which strengthened Occidental's long-term value proposition.
China-based Luckin Coffee, the fastest growing growing coffee brand in the world, has dazzled VCs, public market investors and frankly us over the years with its dizzyingly high growth, expanding from a handful of stores and delivery kiosks to tens of thousands in a just a few years, quickly outpacing Starbucks' aggressive expansion in the world's second largest economy. In a filing with the SEC this morning, the company's board announced that it has initiated an internal investigation into the activities of its former COO Jian Liu, who may have inflated revenues by the company by an early estimate of more than $300 million (RMB2.2 billion). Legal firm Kirkland & Ellis is the board's counsel in its internal investigation.
Deutsche Bank's Ross Seymore has been reviewing the impact of COVID-19 on the semiconductor industry, and it has become apparent that due to supply chain disruption and “eventual demand delay and destruction,” the sector as a whole will suffer in the near to mid-term. There are certain companies, though, that following the downturn, currently “yield an attractive risk/reward. Qualcomm (QCOM) is among those.
Cruise operator (CCL) is paying a steep price for a big new dose of debt financing. The company said Thursday morning that it has priced private offerings of $4 billion of senior secured notes with a coupon of 11.5%. It also is raising $1.75 billion in convertible notes at 5.75%.