Mar.25 -- German Finance Minister Olaf Scholz says the country is considering "timely and targeted" stimulus to revive economic growth once the coronavirus epidemic subsides during an interview with Bloomberg's Matt Miller on "Balance of Power."
My study of past bear markets revealed a number of themes, each of which points to the March low being broken in coming weeks or months. While the market's rally since its March 23 low has been explosive, it's not unprecedented. Since the Dow Jones Industrial Average (DJIA) was created in the late 1800s, there have been 38 other occasions where it rallied just as much (or more) in just as short a period — and all of them occurred during the Great Depression.
Long term, I'm hopeful; short term, I'm uncertain,” he told the business channel. The disease, which was first identified in Wuhan, China, in December and has infected nearly 1.5 million people worldwide, has forced the shutdown of personal and business activity, including the NBA, in an attempt to curb the spread of the contagion. Cuban's comments came as S&P 500 index (SPX) technically entered a bull market, having now risen 20% from the recent low put in on March 23.
Contribution from major producers including the U.S. and Canada could boost efforts to revive prices after the OPEC+ historic agreement failed to push crude higher on Thursday. Oil's spectacular price crash this year has threatened the stability of oil-dependent nations, forced major companies such as Exxon Mobil Corp. to rein in spending and risked the very existence of small independents. OPEC and its allies have been put under intense pressure by President Donald Trump and American lawmakers, who fear thousands of job losses in the U.S. shale patch.
The NBA Dallas Mavericks owner said that while he is "hopeful" for the long-term, the market could see another coronavirus-caused slump in the short-term. As for his stock bets, he continues to hold Netflix Inc. (NASDAQ: NFLX) and Amazon.com Inc. (NASDAQ: AMZN). "If I'm wrong and the market keeps on going up, my core holdings, Netflix and Amazon, are going to continue to do well," the Broadcast.com founder said at the CNBC show.
Denver-based Whiting Petroleum Corp. (NYSE: WLL) brought the first major exploration and production bankruptcy of the latest down cycle to Houston. The oil and gas industry is contending with twin pressures from both the supply side and demand side of the industry, and while analysts think there are likely many more bankruptcies to come this year, Whiting marks the front of the pack. Whiting is bringing $7.64 billion in assets and $3.61 billion in debt to the Southern District of Texas Bankruptcy Court, according to the bankruptcy filing.
Executive Summary: Three weeks ago I predicted that the U.S. death toll from COVID-19 would reach 20,000 by April 15th. In this article I will tell you what you should expect next. Article: I saw this coronavirus pandemic coming back in February.
Investors have a golden opportunity to grow their “buying power” by scooping up high-quality companies. That's according to Dev Kantesaria, who founded hedge fund company Valley Forge Capital Management in 2007. The best protection in a downdraft like this is to own the highest-quality businesses on the planet,” he said in an interview.
Fundstrat Global Advisors Managing Partner & Head of Research Tom Lee of joins Yahoo Finance's Zack Guzman to discuss the market outlook as coronavirus cases in the U.S. surpass 450,000.
As some auto insurance companies start giving refunds and credits to commuters stuck at home during the coronavirus outbreak, there's an easy way drivers with other carriers can catch the same break — just pick up the phone and ask. Insurers including Allstate and Liberty Mutual are issuing 15% refunds on premiums, according to announcements earlier this week. Berkshire Hathaway Inc.'s Geico insurance said Tuesday it will give a 15% credit as policies come up for renewal between now and October, and American Family Insurance is issuing a onetime $50 refund per covered vehicle.
We see light at the end of the tunnel because we believe that sooner or later the medical community will make breakthroughs, and because the fiscal and monetary response around the world, especially in the U.S., where we're overweight stocks, has been pretty aggressive and forceful — That's the bullish view Ardagna shared with Bloomberg News in an interview Wednesday. Right now is a good time to get back into markets and take advantage of the decline in equity markets to position for the rebound,” Ardagna added. Her comments follow the advice of Goldman's investment strategy group from mid-March, which advised clients to gradually add risk assets after the big pullbacks.
With Saudi Arabia and Russia agreeing on the contours of an unprecedented plan to slash crude output, President Donald Trump is on the verge of getting the global oil deal he wanted -- without taking steps to ratchet down U.S. production. The tentative agreement -- which would be the largest-ever oil output cut agreed on by OPEC+ ministers -- is coming without the U.S. mandating curbs on its own crude production. And if Trump agreed to anything in phone calls with the Saudis and Russians in recent days, those deals haven't been made public yet.
OPEC leaders and Russia agreed Thursday to a two-month crude production cut of 10 million barrels a day following an emergency teleconference urged by U.S. President Donald Trump. As part of that 10 million, Saudi Arabia, the cartel's de-facto leader and the world's second-largest producer, will cut 3.3 million barrels a day from its output, which was set to reach 12.3 million. Russia, the world's No. 3 producer, will cut production by 2 million barrels a day.
Oil prices reversed sharply lower after Russia and Saudi Arabia reportedly reached an agreement to reduce oil production by 10 million barrels per day, not 20 million bpd as reported earlier. Iran's oil minister reportedly said that OPEC+ agreed to cut oil production by 10 million bpd for two months starting May 1, according to Reuters. Each country's quotas will come from their baseline production from October 2018, except for Saudi Arabia and Russia whose baseline is 11 million bpd.
With the S&P 500 surging more than 10% for the week ending April 9 to wrap up its best weekly gain since 1974, investors might be giving more credence to the belief that the worst of the stock market rout is over. If history is any indication, according to Fundstrat Global Advisors Managing Partner Tom Lee, stocks could be setting up for an even more “fierce recovery.” Looking at the last 10 such occurrences stretching back over the past two centuries, Lee points out striking symmetries between the time to recover losses and how quickly stocks moved from top to bottom.
During a question-and-answer session on social-media platform Reddit, the founder of hedge fund Bridgewater Associates underscored a point that he's made in the past, but one that has more resonance as the infectious disease that was first identified in Wuhan, China in December wreaks havoc on global economies and forces central banks and governments to unfurl an array of unprecedented fiscal and monetary stimulus efforts. This money printing and government borrowing, Dalio, argued in a July article on LinkedIn, has sowed the seeds for coming inflation, a major shift from the persistently low inflation that has marked the past two decades.
The Federal Reserve unveiled plans to provide up to $2.3 trillion in loans to support local businesses and governments, as the U.S. economy continues to work through the disruptions from the novel coronavirus. The central bank also released more details on its anticipated Main Street Lending Program, which it says will support up to $600 billion in loans tied to small- and mid-sized businesses. As businesses continue to reel from the coronavirus-induced closures across the country, the Fed's efforts are aimed at maintaining the flow of credit to Main Street and to the local municipalities facing dramatic funding gaps with an effective freeze on tax revenue.
It's a scenario that could be detrimental to anyone's finances, especially if they're nearing retirement. At least 1.2 million people age 55 and older were unemployed in March, up from just about 1 million in February, according to seasonally adjusted figures from the Bureau of Labor Statistics. The unemployment rate, which is the number of people in the workforce divided by the number of those who are unemployed, for this demographic was 3.3, up from 2.6 the month before.
Pfizer stock jumped Thursday after the pharma giant identified a potential coronavirus treatment and inked a deal with BioNTech for a vaccine. Early studies show the experimental coronavirus treatment, an antiviral drug, could prevent the SARS-CoV-2 virus from replicating. That would stop Covid-19 from taking hold.
Marathon Petroleum Corp. will idle its Gallup, New Mexico, refinery and related assets April 15, the company said. It's the first U.S. facility to shut as the coronavirus pandemic empties skies of passenger planes and the roads of cars. Major U.S. refiners, including Marathon, Valero Energy Corp. and Phillips 66, have lowered rates at their facilities to be at or near minimum levels as storage tanks fill up with fuel they can't sell.
Top oil producers started a crucial meeting on Thursday to discuss a possible cut in output after a collapse in demand due to the coronavirus and a Saudi-Russian price war caused the market to crash. The video conference meeting began shortly after 1440 GMT between OPEC, its OPEC+ allies including Russia and other key non-members. Oil prices rose sharply as the meeting opened, extending earlier big gains, but then fell back again later to post more modest gains as nervous traders took profits in volatile business.
In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. With this in mind, let's take a look at the recent hedge fund activity surrounding Aurora Cannabis Inc. (NASDAQ:ACB).
It comes from Bank of America Merrill Lynch, which sees big-cap S&P 500 (SPX) in better shape to maintain dividends than in 2008/09, when investors saw a 24% peak-to-trough decline in those payouts. “During the financial crisis, S&P 500 EPS fell 50% and more than 80 companies cut their dividends, with the biggest cuts in financials (which contributed a quarter of index dividends),” says a team of strategists led by Savita Subramanian. Fast forward to the present, and technology and financials are the biggest contributors to index dividends, she says, and the plus is that both have fewer earnings-per-share fluctuations, payouts that are well below average and clean balance sheets.
Mortgage rates largely remained unchanged over the past week, but their ups and downs since the beginning of the year have created challenges for those looking to get a loan to buy a home. The 30-year fixed-rate mortgage remained flat at an average of 3.33% during the week ending April 9, Freddie Mac (FMCC) reported Thursday. The 5-year Treasury-indexed hybrid adjustable rate mortgage also stayed the same over this last week, averaging 3.4%.