Stock futures pointed to big losses on Wednesday as the markets remained highly volatile as a big reversal in Treasury yields in response to a potential $1 trillion stimulus package worries investors.
U.S. senators are calling for investigations of record profit margins for beef processors like Tyson Foods and Cargill, after ranchers complained surging meat prices due to coronavirus hoarding did not translate into higher cattle prices. Futures prices for cattle have tumbled during the outbreak, worrying farmers as the U.S. economy heads into a downturn and fueling questions about whether the market run by CME Group is an effective tool for risk management. Senator Charles Grassley of Iowa wrote on Twitter that U.S. Department of Agriculture, Department of Justice and Commodity Futures Trading Commission probes may be needed to determine why ranchers did not benefit from soaring meat demand.
A small business in Pennsylvania says orders to close “non-essential” establishments and force workers to stay home to stop the spread of the coronavirus are violating the rights of the company and its employees. Schulmerich Bells, a Hatfield, Pa. maker of handbells for musicians, filed a class-action lawsuit alleging that the way the state imposed its closure orders is wrongly taking away business and wages — and it's happening during the 85-year-old company's most important time of year. “It shocks the conscience, and is arbitrary and capricious, to allow employees — and the small businesses that employ them — to privately bear without compensation the cost of the COVID-19 closure orders, orders which were issued for the public purpose of slowing the spread of the novel coronavirus across Pennsylvania,” the Philadelphia federal lawsuit said.
The last thing beat-up investors want to see right now is an often dreaded technical formation in the markets. Yet, that's where we are after the S&P 500 has rallied hard off the lows achieved a week ago. For the first time in over a year, the S&P 500 is seeing its 50-day moving average cross below its 200-day moving average (see Yahoo Finance chart below) points out SunDial Capital Research.
The U.S. continued to lead the world in number of cases of COVID-19 on Tuesday, as state governors continued to complain about inadequate testing and predict that the worst is yet to come. The governors of New York, Montana, Ohio, Washington and Virginia have said they are struggling with containment efforts because of a shortage of testing kits and that message was repeated on a call with President Donald Trump on Monday, according to media reports. Trump said he had not “heard about testing in weeks,” suggesting the issue was no longer a problem, according to media reports, including the New York Times.
Hedge funds may soon provide a backstop for rapidly declining stock prices. Analysts at Jefferies project that hedge funds will soon return in force to their “tried and true” names after the equity markets suffered a brutal first quarter—one that rivaled drops seen during the Great Depression. There's even some evidence of hedge funds already nibbling in recent days, accounting for some of the gains the market has seen over last week.
The market is utterly underestimating how much of a shock the coronavirus is going to be to the economy. And I think for the next 12 months, the U.S. consumer is only going to spend his money or her money on [nondiscretionary] goods. So, within that basket, I think you have to let Apple go.
If after seeing Amarin (AMRN) stock tumble 35% over the past year, you consoled yourself with the knowledge that "at least it can't get any worse" -- surprise! On Monday, a judge for the United States District Court for the District of Nevada ruled against Amarin and in favor of two generic drug manufacturers seeking to produce drugs based on Amarin's Vascepa hypertriglyceridemia treatment, invalidating six Amarin patents in the process. Of course, Amarin quickly promised to "vigorously pursue all available remedies, including an appeal of the Court's decision and a preliminary injunction pending appeal to ... prevent launch of generic versions of VASCEPA in the United States."
With that in mind, Goldman Sachs analysts have been coming the markets for buy-side options, and in a series of reports on tech-related stocks have highlighted three under-the-radar choices. Tenable has been growing rapidly over the past several years, is among the fastest-growing companies in our coverage universe, and remains a critical provider for continuous monitoring, which is an important compliance-related focal point.
The real estate investment trust wrote in a March 25 memo obtained by CNBC that the rental income it receives from tenants is "essential" for it to meet its own financial obligations, like paying lenders on mortgages and utility expenses. The Taubman memo reportedly said "all tenants will be expected" to stay true to their original lease obligations, despite financial difficulties related to the coronavirus. So far, restaurant chain Cheesecake Factory Inc (NASDAQ: CAKE) is the most notable national mall tenant to confirm it won't pay rent in April, although the company said it is in various stages of discussions with its landlords.
Real estate billionaire Tom Barrack, Colony Capital's chairman, founder and chief executive officer, talks about the state of the commercial mortgage market and if the Federal Reserve is doing enough to help it. He speaks to Erik Schatzker on "Bloomberg Markets."
a href="https://www.marketwatch.com/investing/stock/gis" (GIS) 3.62% 1.49 177.3% Evergy Inc.
The kingdom has loaded several of the supertankers it hired earlier this month to boost its ability to increase exports, according to ship-tracking data. In addition, Riyadh has used the last few weeks to shuttle large amounts of crude into storage in Egypt, a stepping stone to the European market. The movements suggest that Riyadh is ramping up its oil production toward its target of supplying a record 12.3 million barrels a day in April, up from about 9.7 million in February, despite American pressure to end the price war.
The Chinese startup that has reshaped the coffee sector here, wiping away Starbucks' dominance in the country, is leaping into an untraditional foray — one that is sure to perpetuate questions about its long-term strategy. Nasdaq-listed Luckin Coffee (LK) came out of nowhere in 2017 and swiftly ate into Starbucks' (SBUX) domination of China sales, with its intuitive mobile app, ubiquitous grab-and-go stores, and discounts so deep that they have frustrated some investors. One conspicuous example of Luckin's cutthroat strategy was the building of hundreds of its stores within mere meters of existing Starbucks locations, often right next door.
As crude oil prices have tanked, depressed by the coronavirus pandemic and the market-share war between Saudi Arabia and Russia, at least a dozen service stations in the Golden State were charging more than $4 as of Monday, according to the tracker GasBuddy. One unnamed location in Santa Clara, near the heart of Silicon Valley, was demanding the most that GasBuddy's research found in the state: $4.79. According to AAA, only Hawaii had higher average prices than California, at $3.36 versus $3.06.
Russ Koesterich, BlackRock Global Allocation Fund Portfolio Manager, joins Yahoo Finance's On The Move to weigh in on the global markets hitting record lows since the 2008 recession.
Chip Reed is a mutual fund manager who winces at the widespread pain and suffering caused by the coronavirus stock market crash. But he also sees the coronavirus crash as setting the table for the sort of rally mutual fund shareholders dream of. "The pain isn't lost on anybody," said Reed, a manager of $11.7 billion Eaton Vance Atlanta Capital SMID-Cap Fund (EISMX).
To accomplish this, companies are increasingly turning to a handful upstarts in the aptly named workforce collaboration software category. Three tools that particularly stand out come from Zoom Video Communications Inc., Slack Technologies, Inc. and Smartsheet Inc. What these companies have in common is they are upstarts, their products are arguably best-in-class for what they do and they've all seen their shares jump amid the widening coronavirus crisis. Zoom is further along in the brand-awareness process.
Tesla did not immediately respond to a request for comment on how many ventilators it has to offer, or how the company will prioritize requests. Governments across the globe have appealed to automakers and aerospace companies help procure or make ventilators and other medical equipment amid a fast-spreading coronavirus outbreak, which has infected more than 777,000 people globally and killed over 37,500.
Billionaire trader Steven A. Cohen is cautioning the staff of his investment firm, Point72 Asset Management, to remain cautious amid markets that have recovered slightly from coronavirus-driven lows. "Markets don't come back in a straight line; after an earthquake there are tremors," Cohen wrote to staff on Friday in an internal memo seen by Reuters. Cohen also wrote that his $16 billion firm's returns are "essentially flat for the year," a result that "speaks to how well our investment professionals have managed risk in such a challenging environment."
In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. Hedge funds are taking a bullish view.
The stimulus bill signed into law Friday keeps any companies that borrow from the government from paying dividends to shareholders for at least a year after the loan is repaid — even as bond yields have collapsed to to near all-time lows. The provisions of the CARE Act likely exacerbate a trend of companies trying to keep as much cash on hand as possible as the economic downturn worsens. The Goldman strategists estimate dividends for S&P 500 stocks will decline 25% to $44 per share in 2020, and note 12 companies, ranging from Apache Corp. (APA) to Old Dominion Freight Line (ODFL), have already reduced or suspended their shareholder payouts.
Hope for a quick rebound in oil prices has faded, and now some analysts are extending their forecasts for extremely low prices beyond 2021. On Tuesday, Brent crude futures, the international benchmark, were up a penny to $22.77. West Texas Intermediate rose 2.2% to $20.53, after briefly falling below $20 on Monday.
That's Jeremy Siegel, a professor of finance at the University of Pennsylvania's Wharton School of Business, expressing some optimism Monday about the outlook for a stock market that may be starting to reassert a bullish stance after a punishing month. During a phone interview on CNBC, the professor said he thinks the stock market may have put in its bottom last week. On Monday, the Dow Jones Industrial Average (DJIA) booked a more than 690-point gain, rising by 3.2% to end the session at 22,327, while the S&P 500 index (SPX) rose 3.4% to 2,626.
The worst Dow Jones Industrial Average performers in the first-quarter include Boeing, Dow, Exxon Mobil, Chevron, and United Technologies, while the overall index is on track for its worst Q1 ever. The Dow Jones aerospace giant spent 2019 reeling from the grounding of its Boeing 737 Max jets after two deadly crashes. The troubled aircraft has been grounded for over a year with hopes that deliveries will start in May. But Boeing is now grappling with evaporating air-travel demand, which has forced airlines to slash routes during the coronavirus pandemic.
U.S. President Donald Trump's bid to end the oil war between Russia and Saudi Arabia is breeding cautious hopes in Moscow of a possible way out of the damaging stand-off, potentially reversing some of the collapse in crude prices. The fact that it was Trump who placed the call to Vladimir Putin Monday, reversing his earlier stance welcoming the drop in oil prices, was seen in Moscow as a positive sign, according to three people familiar with the matter. Trump's move to appeal for Russian help in stopping the oil rout could allow Putin to appear in a stronger position even if he needs to make some concessions, according to Andrey Kortunov, director of the Kremlin-founded Russian International...