President Trump says governors have the right to order respirators and masks from private supply chains instead of waiting for the federal government to send them to their states.
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.
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.
Dow Jones futures rose late Wednesday, along with S&P 500 futures and Nasdaq futures. 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.
On the face of it, the idea of Saudi Arabia and Russia starting an oil price war in the middle of a global pandemic is as dumb as it gets. From a game theory perspective, it is a masterstroke. Analysts have called the breakdown of Opec+ and the lifting of the supply cuts that kept the oil market balanced in the last two years anything from a spectacular blunder to collective suicide.
Earlier, China said the U.S. was trying to shift the blame for its own outbreak after American intelligence officials concluded Beijing concealed infections. A county in central China was locked down again after a flare-up in cases, pointing to the difficulty of sustained containment. Spanish jobless claims rose by a record, and filings for U.S. unemployment benefits are set to top 3 million again.
Global oil prices rallied Thursday, while U.S. energy stocks look poised to lead Wall Street higher at the opening bell, after President Donald Trump planned a White House summit to address a market he said was 'ravaged' by the coronavirus pandemic. Trump will meeting U.S. oil executives Friday in Washington amid an historic collapse in global crude prices, which have fallen more than 60% so far this year as production increases, slowing demand and the coronavirus pandemic combine to hammer an industry already staggering under billions in debt and generational changes in investor ethics. The President also said he would broker a deal between Saudi Arabia and Russia, the world's second and third largest producers, that would end the ongoing price war that followed the collapse of OPEC's three year production cut agreement last month in Vienna.
Crude futures surged on Thursday, after President Donald Trump expressed optimism that a damaging price war between Saudi Arabia and Russia can be resolved and after a report China is building its stockpiles. The first quarter has been punishing for financial markets, with oil especially punished by a Russia-Saudi price war that is flooding the market with supply and demand destruction from the global economic shutdown due to the coronavirus outbreak. Global benchmark Brent slid 65.6% for the quarter—the largest quarterly decline based on records dating to June 1988.
U.S. equity futures rose on Thursday and European stocks edged up as investors caught their breath following a rough start to the second quarter for risk assets. Oil surged after China unveiled plans to boost its reserves. Futures on the main U.S. equity benchmarks all climbed in the wake of another session of steep declines.
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.
Charts Please click here for an annotated chart of the Dow Jones Industrial Average ETF (DIA) which represents popular stock market index the Dow Jones Industrial Average (DJIA) Please click here for a chart of S&P 500 ETF (SPY) which tracks the S&P 500 Index (SPX) Note the following: • The first chart, which is monthly, gives investors a long-term perspective. The second chart, which is daily, gives a short-term perspective. The first chart shows what I call the mother of support zones for the stock market.
The centrepiece of the financing is a $4bn offering of five-year senior secured bonds priced at just under par with an annual coupon of 11.5 per cent. That juicy implied return attracted enough investors for Carnival to increase the offering from a mooted $3bn. Carnival's physical assets — its fleet — are valued on its balance sheet at nearly $40bn. Carnival business has ceased to exist in the short term.
A filing has revealed that beleaguered airline American Airlines (AAL) has now accessed a total of $2.73 billion from three revolving credit facilities in order to cope with the coronavirus fallout. At the same time, Stifel Nicolaus analyst Joseph DeNardi downgraded his rating on AAL stock from Hold to Sell. Shares have plunged 63% year-to-date, with a 31% drop in just the last five days, and DeNardi believes the outlook for AAL is particularly worrying.
The world's biggest importer is taking advantage of a 60% plunge this year to snatch up cheaper barrels for its stockpiles, a source of considerable speculation in the oil market because of the government's reluctance to release information about their formation, size or use. Beijing has asked government agencies to quickly coordinate filling tanks, the people said, asking not to be identified because the matter is confidential. The initial target is to hold government stockpiles equivalent to 90 days of net imports, which could eventually be expanded to as much as 180 days when including commercial reserves.
Shopify's withdrawal of FY20 guidance suggests that near-term visibility is low, similar to other Internet stocks in our coverage” comments RBC Capital analyst Mark Mahaney. Nonetheless, he has retained his buy rating on the stock. Long-term, however, we believe that Shopify will be a beneficiary as we expect this COVID disruption to lead to a sustained pickup in online shopping activity, with Shopify a major beneficiary” the analyst explains.
Satori Fund Founder & Portfolio Manager Dan Niles joins Yahoo Finance's Zack Guzman and Brian Cheung to discuss his outlook for 2020, after calling the coronavirus market collapse.
The U.S. death toll from the coronavirus that causes COVID-19 rose above 4,000 on Wednesday and financial markets sold off again, after President Donald Trump warned Americans to brace for two painful weeks as the numbers continue to climb. The White House revealed models that suggest the number of deaths could rise to 100,000 to 240,000 deaths, even if current containment measures are observed. Dr. Deborah Birx, the coordinator of the White House coronavirus task force, said those numbers could be greatly reduced if everyone does their part: “We really believe we can do a lot better than that,” Birx said.
General Electric Co. (GE) has finalized the $21.4 billion sale of its biopharma business to Danaher Corp. DHR). The sale to Danaher Corp gives GE net proceeds of $20 billion, after accounting for taxes, fees and factored receivable balances, GE said in a statement.
That dividend annualizes to $1.40, and like LADR above makes for a high payout ratio of 90%. Suncor has raised its dividend payment three times in the past three years, and has a reliable payment history stretching back to 2011. The real attraction in SU's dividend, however, is the yield.
The current rebound in markets may continue for a while following a bout of extreme pessimism, but another rout is imminent, according to the chairman of Rogers Holdings Inc. That's because of a triple whammy of coronavirus-fulled economic damage, high debt levels and interest rates that are low, which will hurt when they rise. “I expect in the next couple of years we're going to have the worst bear market in my lifetime,” Rogers said in a phone interview. Rogers, who co-founded the Quantum Fund with George Soros in the 1970s, had said a bear market was imminent back in 2018.
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.
During an interview with CNBC Wednesday, Federal Housing Finance Agency Director Mark Calabria warned that the U.S. mortgage industry could face significant strain in the form of delinquencies and foreclosures if the coronavirus emergency lasts for six months or longer. This fundamentally comes down to how long an event this is,” Calabria said. If this only goes on for two to three months and we see pop back in the economy and people are hired back to their old jobs by and large, then I think this will be something the industry can get through without too much stress,” he added.
In 2008, amid the last recession, and again in 2010, Buffett signed off both his annual letters to shareholders saying that he and Charlie Munger — his longtime business partner and the 96-year-old vice chairman of Berkshire — were “lucky beyond our dreams” in part for being born in the U.S. Berkshire's own investments are like a cross-section of the U.S. economy, with large stakes in airlines, banks, grocery stores and makers of consumer goods — even tech giants Amazon.com Inc. and Apple Inc. About $70 billion of value has been erased from its stock portfolio since mid-February (though we don't yet know what Buffett bought and sold during the first quarter).
The precious metals market has been providing us with myriads of signs recently. What if we told you that the final bottom for the precious metals sector (but not for the stock market) could be seen as early as… next week? The first reason is the rising support line that's based on the previous closing prices.
Carnival (ccl)(uk:ccl) shares dropped 8% in London as the cruise operator priced the stock offering at $8 a share, vs. a close on Monday of $8.80. Carnival said it is decreasing its common stock offering to approximately $500 million from the previously announced $1.25 billion, while increasing its senior debt offering to $4 billion from the previously announced $3 billion. Carnival also is selling $1.75 billion in convertible notes.