FOX Business’ Blake Burman on the Trump administration's efforts to combat the economic effect of coronavirus.
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.
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.
Amarin stock melted down Tuesday after a Nevada judge ruled generic drugmakers can knock off the biotech company's high triglycerides treatment, Vascepa. According to reports on Twitter, the judge ruled the claims Amarin tried to patent are obvious and, therefore, not patentable. The high triglycerides treatment is based on a type of fish oil.
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.
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).
It has been a rollercoaster month for investors of beleaguered airline Boeing (BA). Despite the profit potential, the analyst can't quite see his way clear to actually recommending "buying" BA stock, assigning the shares only a "neutral" rating. Questions have been raised concerning Boeing's financial health, following a request for $60 billion in federal aid to assist its ailing ecosystem.
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.
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.
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."
J. Kim became the CEO of Inovio Pharmaceuticals, Inc. (NASDAQ:INO) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. The aim of all this is to consider the appropriateness of CEO pay levels.
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.
Tesla stock has plunged as the coronavirus pandemic has led to a sharp drop in consumer spending and rising unemployment as factories are shut down worldwide. Tesla announced on March 19 that it would also close its car manufacturing plant in California. The disruption to Tesla caused by the Covid-19 pandemic could be revealed later this week if the electric-car company reports data on first quarter vehicle deliveries as expected.
California Gov. Gavin Newsom said Saturday that the federal government had sent the state “170 broken ventilators,” which can be key to treating the respiratory distress caused by COVID-19.
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.
Carnival said it also plans to raise $1.25 billion by issuing common shares and another $1.75 billion through the sale of convertible notes to improve its liquidity position. President Donald Trump asked Carnival and other major cruise line operators to stop sailing this month after a series of coronavirus outbreaks at sea raised concerns about the safety of the industry. While Carnival is still rated investment grade by Moody's Investors Service and S&P Global Ratings, its existing unsecured bonds have been trading at distressed levels in recent weeks.
The longstanding suspicion that Italy's profligate borrowing could ultimately become the whole of Europe's problem was the recurring nightmare of German finance officials throughout the 1990s. Now, as the crisis forces Giuseppe Conte's government to jettison a decade of tightly capped Italian budget deficits, the country's strategy for the future is once again built on piling up debt, sending its public borrowings swelling toward or even beyond 150% of gross domestic product. The upshot is that Italy's finances now depend wholly on the European Central Bank keeping a lid on its borrowing costs.
Corporate profit is all but certain to drop in the first quarter as the coronavirus shuts America down. But analysts still think profit will double or more at some S&P 500 companies. Double profit?
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 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.
Huawei warned on Tuesday that 2020 would be its most difficult year yet due to American trade restrictions which dealt a blow to its overseas sales in 2019, and predicted the Chinese government would retaliate against the United States. It said Beijing could hit back against U.S. measures to restrict chip sales to Huawei, by restricting sales of American products in China and by shifting to alternative suppliers in China and South Korea. "The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board," Chairman Eric Xu told reporters at the launch of Huawei's annual report.
Market forces rained on the parade of Delta Air Lines, Inc. (NYSE:DAL) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Following the latest downgrade, the current consensus, from the 16 analysts covering Delta Air Lines, is for revenues of US$36b in 2020, which would reflect a stressful 24% reduction in Delta Air Lines' sales over the past 12 months.
Unable to cough up cash to meet dividend payments at a time when businesses are reeling to keep operations going, several companies have announced suspension of dividends or pauses of stock buybacks. To compare the returns of a stock, a metric called dividend yield is used. Dividend yield is the amount of dividend paid by a company for a year, divided by its current stock price and expressed in percentage terms.
Biotech company Gilead Sciences is trying to corral Covid-19 with an experimental coronavirus treatment — an effort that has stoked renewed hopes for GILD stock. The biotech company is advancing a former Ebola virus treatment, remdesivir, in clinical studies of patients with Covid-19, a new form of coronavirus discovered last year. Meanwhile, Gilead is also trying to stake its claim in HIV treatments.
Big carriers like American Airlines are getting all the attention for the unprecedented damage that Covid-19 is causing airlines. Most of the action, though, may end up happening at the regional level.
JPMorgan's Global Quantitative and Derivatives Strategy team, led by Marko Kolanovic, has been crunching the numbers on the coronavirus pandemic, and found that the forecasts can vary wildly, with predicted economic declines ranging from 20% to 70%, depending on which data the analyst chooses to start with. The JPMorgan report does offer a ray of hope: because the hospital numbers are a lagging indicator, it is possible that the social containment measures have taken hold and brought us closer to the inflection point – and that infection rates will soon start declining. Kolanovic writes, “Taking into account the unprecedented monetary and fiscal measures being implemented, as well as unprecedented asset declines over the past month, we maintain that asset price recovery is likely and our pre-pandemic equity price target for 2020 is achievable sometime in the first half of 2021.”