Telecom operators will invest as much as $275 billion nationwide over seven years to build out 5G networks. Here's how this could enable the creation of 'smart cities' through new dynamic mapping technologies.
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.
Fidelity Investments, one of the world's largest asset managers, on Tuesday closed three money market funds to new investors to protect the return of existing shareholders after the Federal Reserve this month cut short-term interest rates to near zero. Restricting the money flow into the three funds will help reduce the number of new Treasury securities paying lower yields that Fidelity will need to purchase and thereby halt the dilution of existing shareholder returns. "Newer issues generally have lower yields than the funds' current holdings, and as such they would affect the funds' ability to continue to deliver positive net yields to shareholders," Boston-based Fidelity said in a statement.
How bad has it been for the U.S. stock market in the first three months of 2020? Indeed, it has been punishing for investors, as the market went into a coronavirus-sparked free fall that has the 124-year-old Dow Jones Industrial Average registering its worst quarterly loss since the fourth quarter of 1987. The three-month skid represented the steepest first-quarter drop, from January through the end of March, in the index's history, according to Dow Jones Market Data.
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.
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 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 March lows that the S&P 500 Index reached are likely to be surpassed in April as economic uncertainty further riles investors and stocks probably won't match recent highs for a long time, according to bond manager Jeffrey Gundlach. I think we're going to get something that resembles that panicky feeling again during the month of April,” Gundlach, chief investment officer for DoubleLine Capital, said Tuesday during a webcast on the market and economic impact of the coronavirus pandemic. The S&P 500 fell 12.5% in March, its worst monthly performance since October 2008.
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 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.
At 11:08 a.m. a trader bought 1,100 Nvidia call options with a $275 strike price expiring on May 15 at the ask price of $22.40. The trade represented a $2.46 million bullish bet.
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 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.
Market capitalization: $127 billion Dividend yield: 3.4% Payout ratio: 75% The best dividend stocks to buy are often ones that can both afford to pay shareholders a meaningful quarterly dividend -- preferably a sustainable and growing one -- and offer a shot at solid capital gains. Medifast, which sells healthy meals as a part of company-designed weight-loss programs, checks both boxes. As the payout ratio indicates, it only pays out about half its earnings to finance its dividend, using the rest to grow its business.
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.
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).
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 worst Dow Jones Industrial Average performers in the first-quarter include Boeing, Dow, Exxon Mobil, Chevron, and United Technologies, while the overall index notched 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.
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.
With the CBOE Volatility Index well off its highs, the stock market has rebounded back to life. After falling more than 36% from peak to trough in just a few weeks, the S&P 500 is up 20% from its lows. By technical definition, that's the minimum to qualify for a new bull market.
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.
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 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.
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.
Over the near-term, it's worth staying defensive in the stock market because it still needs time to repair the recent technical damage, but I wouldn't get too negative. The coronavirus numbers will likely continue higher but that doesn't mean the stock market has to go lower. In other words, the stock market is a discounting mechanism.
Amarin stock lost more than two-thirds of its value 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.