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[Markets] Dow futures see muted action Wednesday evening ahead of report that may indicate 1 out of 5 Americans are out of work U.S. stock-index futures were trading on either side of unchanged Wednesday evening after stocks closed out the regular session with sharp gains, making up some lost ground after a late-session pullback Tuesday. A weekly report on Thursday is expected to show that some 2.35 million people sought unemployment benefits in the week ended May 16, likely bringing the total number of Americans out of work during the COVID-19 pandemic to nearly 40 million on a seasonally adjusted basis. That's about one out of every five workers in the labor force. To be sure, the weekly figure represents a deceleration of the recent unsightly trend of job losses, but may still be a sobering reminder of the toll the viral pandemic has exerted on the U.S. economy over the past few months. Futures for the Dow Jones Industrial Average were up less than 0.1% at 24,527, those for the S&P 500 index were trading very nearly flat at 2,969, while Nasdaq-100 futures edged up by about 0.1% at 9,494.25. During the regular session Wednesday, the Dow advanced 369.04 points, or 1.5%, to finish at 24,575.90. The S&P 500 climbed 48.67 points, or 1.7%, to end at 2,971.61, its highest close since March 6, according to Dow Jones Market Data, while the Nasdaq Composite rose 190.67 points, or 2.1%, closing at 9,375.78, representing its highest finish since Feb. 21. In corporate news after-hours, Macy's Inc. said it has appointed Felicia Williams as its interim chief financial officer, effective June 1. Retailer L Brands Inc. reported a wider-than-expected loss in the first quarter and said it remained "committed" to spinning off its Bath & Body Works business. Meanwhile, Aurora Cannabis Inc. it was acquiring U.S. company Reliva LLC for roughly $40 million in an all-stock deal. Published:5/20/2020 6:30:16 PM
[Markets] "Trust Is Being Undermined" - Harvard Medical School Prof Questions Fauci's "Shading" Vaccine Results "Trust Is Being Undermined" - Harvard Medical School Prof Questions Fauci's "Shading" Vaccine Results Tyler Durden Wed, 05/20/2020 - 16:45

At a moment in time when narrative-following "scientists" are lauded like unquestionably omniscient supreme beings enabling dumb-as-a-rock-partisan-politicians to play omnipotent overlords without fear of blowback, the world needs more people like William Haseltine.

The last two weeks have seen markets and politicians jump exuberantly at the hope of every press release from a biotech firm that proclaims one of their pet rabbits didn't die when they fed it their latest DNA-reshaping test material (oh that is except if anyone dares say anything positive about hydroxychloroquine but that is a topic for another discussion).

Barstool Sports' Dave Portnoy said it right - when did we shift from "flatten the curve, flatten the curve, flatten the curve" to "we have to fund a cure or everyone's going to die."

And that is where we find ourselves. Every talking head proclaiming the same malarkey - we will re-open carefully, with PPE, and social distancing, and whetever else is mandated from on-high "until we find a vaccine in 12-18 months" at which point the world will be made whole again and Kumbaya...

All of which brings us back to the man of the day in our humble opinion.

Former Harvard Medical School professor and founder of the university's cancer and HIV/AIDS research departments, William Haseltine dared to speak out today about the high level of bullshit and damage that is being done to "trust" in "scientists" and even dared to break the one holy writ that shall go un-mentioned, throwing some shade a Dr.Fauci.

Reflecting on Moderna's press release this week (which was immediately followed by massive equity raises across numerous biotech firms and upgrades from the underwriters, surprise), Haseltine said:

"If a CFO had tried to get away with such an opaque and data-less statement it would have bee treated with derision and possibly an investigation."

The CNBC anchor desperately tried to guilt him into the official narrative of clinging to any hope as long as it lifts stocks - no matter its utter bullshittiness - but Haseltine destroyed her naive party line:

"we all know its an emergency, and in an emergency it's even more important to be clear on what you know and what you do not know."

Moderna did not follow the process:

"you don't know what happened, we don't know what happened, there is no data."

But, but, but... the CNBC anchorette blubbered, "are you questioning Dr. Fauci who also said that this was encouraging news?"

"Whether [Fauci] shaded what should should have been done, I think is an important question. He's obviously under enormous pressure for positive results but it was not the right thing to do if you can't see the data."

The full interview below is a must-watch by all who care about their freedom being controlled by a narrative directed by fearmongering elites in the name of "science" when the "science" is a) being ignored, b) being bastardized to meet a political need, c) being treated as if handed down on high from the man himself, or d) being manipulated explicitly.

Why this former Harvard Med School prof says Moderna's vaccine trial 'publication by press release' from CNBC.

Haseltine's interview is perfect lead into his opinion piece in todays' Washington Post:

Faith in medicine and science is based on trust. But today, in the rush to share scientific progress in combating covid-19, that trust is being undermined.

Private companies, governments and research institutes are holding news conferences to report potential breakthroughs that cannot be verified. The results are always favorable, but the full data on which the announcements are based are not immediately available for critical review. This is "publication by press release,” and it’s damaging trust in the fundamental methods of science and medicine at a time when we need it most.

The most recent example is Moderna’s claim Monday of favorable results in its vaccine trial, which it announced without revealing any of the underlying data. The announcement added billions of dollars to the value of the company, with its shares jumping almost 20 percent. Many analysts believe it contributed to a 900-point gain in the Dow Jones industrial average.

The Moderna announcement described a safety trial of its vaccine based on eight healthy participants. The claim was that in all eight people, the vaccine raised the levels of neutralizing antibodies equivalent to those found in convalescent serum of those who recovered from covid-19. What to make of that claim? Hard to say, because we have no sense of what those levels were. This is the equivalent of a chief executive of a public company announcing a favorable earnings report without supplying supporting financial data, which the Securities and Exchange Commission would never allow.

There is a legitimate question regarding what Moderna’s unsupported assertion means. The scientific and medical literature reports that some people who have recovered have little to no detectable neutralizing antibodies. There is even existing scientific literature that suggests it is possible neutralizing antibodies may not protect animals or humans from infection or reinfection by coronaviruses.

Such “publication by press release” seems to be a standard practice lately.

The National Institutes of Health announced last month that the drug remdesivir offered a clear benefit to covid-19 patients with moderate disease, shortening the length of their hospital stay by several days. But did it really? Twenty days after the announcement, the supporting data has still not been published. Without the data, no doctor treating a patient can be sure they are doing the right thing.

Another paper, published the same day, found that remdesivir had no measurable effect on patient survival or the amount of virus detectable in nasopharynx and lung secretions. What then should a practicing physician do? Follow the unsupported advice of a news announcement or a medical report published in a leading scientific journal? This is not an idle question: The NIH announcement triggered a global stampede for limited supplies of the drug.

The case is more nuanced for the vaccine developed by the Jenner Institute at Oxford University, though the mileposts remain the same: It started with a public pronouncement of favorable results from an early study, this time in monkeys, well before any data was publicly released. An NIH scientist working on a trial of the Oxford vaccine gave an interview to the New York Times, claiming the drug was a success.

But the data, released as a prepublication version more than two weeks after the story ran, didn’t quite live up to the early claim. All of the vaccinated monkeys became infected when introduced to the virus. Though there was some reduction in the amount of viral RNA detected in the lungs, there was no reduction in the nasal secretions in the vaccinated monkeys. So the positive result reported by the Oxford group turned out not to be protection from infection at all, something most would agree is what a successful vaccine would do. Instead, it lowered only the amount of virus recoverable from the vaccinated monkey’s lung.

To the Jenner Institute’s credit, it does warn visitors to its website that there have been many false reports about the progress of its vaccine trial. Still, having a scientist working on the trial paint preliminary results in such a positive manner without having yet released the full data is cause for concern.

We all understand the need to share scientific and medical data as rapidly as possible in this time of crisis. But a media announcement alone is not enough. There are ways to share the data quickly and transparently: posting manuscripts before review or acceptance on publicly available websites or working with journals to allow an early view. Publishing in this manner allows doctors and scientists to reach their own conclusion, based on the evidence available.

The media also bears responsibility. Asking experts to opine on unsubstantiated claims is not useful. Medicine and science are not matters of majority opinion; they are matters of fact supported by transparent data. This is the backbone of scientific progress and our only hope to end this pandemic. We can’t give up on our standards now.

*  *  *

So, by all means, trust in "science" but choose your "scientist" well...

Published:5/20/2020 3:59:05 PM
[Markets] Dow Soars 1,860 Points From May 14 Low; Can These 5 Stocks Crush Blue Chips In 2020? While the Dow Jones Industrial Average is doing well in May, it remains a market laggard. Watch these chip, software and consumer spending leaders. Published:5/20/2020 2:28:09 PM
[Markets] Dow's 265-point rally highlighted by gains for shares of American Express, Intel DOW UPDATE Powered by strong returns for shares of American Express and Intel, the Dow Jones Industrial Average is rallying Wednesday afternoon. The Dow (DJIA) is trading 265 points, or 1.1%, higher, as shares of American Express (AXP) and Intel (INTC) have contributed to the index's intraday rally. Published:5/20/2020 1:28:23 PM
[Markets] China ETFs stumble lower midday Wednesday as Senate passes bill that could bar listings of Chinese companies Exchange-traded funds that allow investors to bet on Chinese companies were knocked lower midday Wednesday after the U.S. Senate approved sweeping new legislation that could ultimately bar many Chinese companies from listing shares on U.S. exchanges. The Invesco China Technology ETF , which offers exposure to a basket of popular Chinese technology firms that are listed in the U.S., including the American Depositary Receipts of Baidu Inc., , was down 0.7%; those for KraneShares CSI China Internet ETF , which offers exposure to Alibaba Group Holding Ltd. and JD.com , was trading 1.4% lower, at last check, according to MarketWatch's website. The Global X MSCI China Consumer Discretionary ETF was down 1% on Wednesday, with that ETF also tracking Alibaba and JD.com. The Senate bill, if it is written into law, would The bill would require Chinese companies to establish that they aren't owned or controlled by a foreign government. Furthermore, they would be required to submit to an audit that can be reviewed by the Public Company Accounting Oversight Board, the nonprofit body that oversees audits of all U.S. companies that seek to raise money in public markets. U.S. stocks came off their highs of the session Wednesday afternoon following the passage of the bill, which comes amid increasing tensions between the U.S. and China, with representatives from the world's biggest economies fighting over Beijing's handling of the COVID-19 pandemic, which was first identified in Wuhan, China. Still, markets were holding onto solid gains, with the Dow Jones Industrial Average up 1.2%, the S&P 500 index climbing 1.4% and the technology-heavy Nasdaq Composite Index rising 1.7% Wednesday. Published:5/20/2020 12:55:07 PM
[Markets] Intel, Caterpillar share gains lead Dow's 333-point rally DOW UPDATE Buoyed by strong returns for shares of Intel and Caterpillar, the Dow Jones Industrial Average is rallying Wednesday afternoon. The Dow (DJIA) was most recently trading 333 points, or 1.4%, higher, as shares of Intel (INTC) and Caterpillar (CAT) are contributing to the index's intraday rally. Published:5/20/2020 11:25:31 AM
[Markets] Dow up nearly 400 points on gains for Caterpillar, Intel stocks DOW UPDATE Buoyed by positive momentum for shares of Caterpillar and Intel, the Dow Jones Industrial Average is rallying Wednesday morning. Shares of Caterpillar (CAT) and Intel (INTC) are contributing to the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 396 points (1. Published:5/20/2020 10:00:04 AM
[Markets] Dow rallies 311 points on gains in JPMorgan Chase, Dow Inc. shares DOW UPDATE Shares of JPMorgan Chase and Dow Inc. are posting positive momentum Wednesday morning, propelling the Dow Jones Industrial Average rally. Shares of JPMorgan Chase (JPM) and Dow Inc. (DOW) have contributed to the index's intraday rally, as the Dow (DJIA) is trading 311 points (1. Published:5/20/2020 8:54:10 AM
[Markets] Dow Jones Futures Jump Amid Earnings; Alibaba, Facebook, Netflix Above New Buy Points In Stock Market Rally The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/20/2020 6:53:53 AM
[Markets] Dow Jones Futures Hit Overnight Highs; Alibaba, Facebook, Netflix Above New Buy Points In Stock Market Rally The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/19/2020 11:52:26 PM
[Markets] Dow Jones Futures Hit Session Highs; Alibaba, Facebook, Netflix Above New Buy Points In Stock Market Rally The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/19/2020 7:51:18 PM
[Markets] Dow Jones Futures Extend Gains; Alibaba, Facebook, Netflix Above New Buy Points In Stock Market Rally The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/19/2020 7:20:48 PM
[Markets] Dow Jones Futures Turn Higher; Alibaba, Facebook, Netflix Headline 6 Stocks In Or Near Buy Zones After Stock Market Losses The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/19/2020 6:21:31 PM
[Markets] Dow Jones Futures Fall; Alibaba, Facebook, Netflix Headline 6 Stocks In Or Near Buy Zones After Stock Market Losses The Dow Jones futures were in focus late Tuesday. Six top stocks near buy points include Alibaba and Facebook. Published:5/19/2020 5:54:39 PM
[Markets] Dow stumbles 390 points lower to end down sharply as report throws cold water on Moderna's coronavirus vaccine candidate The Dow Jones Industrial Average ended sharply lower Tuesday, with losses gathering steam within the final minutes of trading, as investors pointed to a report on Moderna Inc., as one possible catalyst for the dip for the blue-chip index. Stat News in a Tuesday afternoon report attempted to throw some cold water on an upbeat study released by Moderna about its coronavirus vaccine candidate. The Stat News article said that the Moderna report on its experimental remedy for COVID-19 lacked sufficient data. The report of early success from the Moderna vaccine candidate was one of the key catalysts for markets soaring a day ago. The Dow closed down by about 391 points, or 1.6%, at 24,207, the S&P 500 index closed down 1.1% at about 2,923 and the Nasdaq Composite Index ended 0.5% lower at 9,185, giving up its gains for the day in the final half-hour of trading. Moderna shares, meanwhile, finished down by 10.4% in late Tuesday action after a 13% surge on Monday which brought it to a record close. Meanwhile, Boston Federal Reserve President Eric Rosengren during a CNBC interview cautioned that businesses reopening may be "premature" as Americans continue to contend psychologically with the COVID-19 pandemic. Rosengren suggested that demand from consumers may still be an issue as the economy attempts to restart from coronavirus-induced closures. The Fed officials comments come after Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin Tuesday morning were grilled by the Senate Banking Committee about why funding from the $2 trillion economic-relief package approved by Congress legislation remains unspent. Published:5/19/2020 3:49:32 PM
[Markets] Dow stumbles 300 points lower in final half-hour of trade as report throws cold water on Moderna vaccine candidate The Dow Jones Industrial Average on Tuesday took a leg lower within the final hour of trading, with investors pointing to a report on Moderna Inc. as one possible catalyst for the dip for the blue-chip index. Stat News in a Tuesday report attempted to throw some cold water on an upbeat study released by Moderna about one of its coronavirus vaccine candidates. The Stat News article said that the Moderna report on its experimental vaccine for COVID-19 lacked sufficient data. The report of early success from the Moderna vaccine candidate was one of the key catalysts for markets soaring a day ago. Late Tuesday, the Dow was down 312 points, or 1.3%, at 24,283, those for the S&P 500 index were off 0.8% at 2,930 and the Nasdaq Composite Index was trading 0.2% lower at 9,216. Moderna shares, meanwhile, were down by about 10% in late Tuesday action after a 13% surge on Monday which brought it to a record close. Published:5/19/2020 2:54:45 PM
[Markets] Dow Jones Lags Nasdaq, But Intel Nears Buy Point; Facebook Breakout Leads Nasdaq 100 The Dow Jones couldn't keep up with the Nasdaq Tuesday, but the blue-chip index served up some nice gainers, including Intel stock. Published:5/19/2020 2:18:37 PM
[Markets] Morgan Stanley: Monday's Huge Stock Buying Was One Giant Hedge Fund Short Squeeze Morgan Stanley: Monday's Huge Stock Buying Was One Giant Hedge Fund Short Squeeze Tyler Durden Tue, 05/19/2020 - 14:41

Yesterday morning, ahead of the torrid rally that sent the Dow Jones more than 1,000 points higher at one point, we warned that the "bulk of Wall Street institutions is once again positioned on the wrong side of today's rally."

As we showed last Friday using the latest Deutsche Bank flow data...

... both consolidated and systematic positioning was just off decade lows, while discretionary positioning - namely hedge funds and various other levered investors - continued to take down exposure going even further net short, and selling to retail investors all the way on the way up, assuming of course that Robin Hood is up on any given day.

In retrospect, it turns out that the surge higher was just too much for institutions, and as Morgan Stanley's prime brokerage desk writes today, "Monday was one of the largest days of buying we have seen in recent months, as HFs covered short positions as the market rallied higher. Equity L/S funds were the largest net buyer, with ~60% of the net activity coming from covers, and the remainder coming from long additions."

Yet while hedge funds scrambled to minimize the pain having been caught offside, the majority of the buying can be attributed to ETFs, which saw large amounts of covering as the S&P 500 closed over 3% higher DoD. Notably, HFs had added a sizable amount of ETF shorts last week as equities slid at the start of the week, but a good portion of this has now been undone when taking into account yesterday’s activity. Meanwhile, aAcross single-names, while flows were still positive, activity was slightly more divergent at the industry level.

As a result of yesterday's panicked HF activity, Equity L/S net leverage in the US increased by 3% to 45% (40th %-tile over last 12M; 14th %-tile since 2010), in line with the positive net activity / strong market performance but still relatively low considering where the market is. At the same time, weighted Equity L/S gross leverage also increased by ~2% to 189% (53rd %-tile over last 12M; 81st %-tile since 2010), and tracking the SPX tick for tick, though most of this can be attributed to MTM increases in the  underlying positions.

Finally, and has been the case for much of the artificial Fed-driven rally of the past decade, hedge funds failed to capitalized on yesterday's rally, and while the broader S&P jumped over 3%, HF performance was not nearly as strong – for L/S funds in the Americas, with one-day returns up just ~70-75bps vs. the S&P 500 +3.2%. A main driver of
this was due to the Cyclical rally, in which HFs continue to have fairly light exposure to.

And in another echo from the sins of the past decade, crowding performance was particularly painful yesterday as the longs lagged the market by ~1% and the shorts rallied 80bps more than the market, resulting in a long vs. short spread of -1.8%.

In fact, yesterday was the worst 1D spread for the crowded stocks since Mar 16th. MTD and YTD crowding spread still remains positive, aided by the crowded longs.

Published:5/19/2020 1:50:48 PM
[Markets] Dow falls nearly 100 points on losses for shares of Merck, Home Depot DOW UPDATE The Dow Jones Industrial Average is declining Tuesday afternoon with shares of Merck and Home Depot delivering the stiffest headwinds for the price-weighted average. The Dow (DJIA) was most recently trading 99 points lower (-0. Published:5/19/2020 12:19:08 PM
[Markets] Dow Jones Lags But Apple, Intel, Microsoft Lead Tech Stock Rally; Which Is In Buy Range? Stocks were mixed midday as the Dow Jones Industrial Average remained slightly underwater but the Nasdaq extended its recent rally. Published:5/19/2020 11:23:08 AM
[Markets] Dow Jones Futures Pare Losses As Walmart Earnings Offset Home Depot After Vaccine-Led Coronavirus Stock Market Rally Dow Jones futures pared losses as Walmart earnings offset mixed Home Depot earnings. The coronavirus stock market rally surged Monday on vaccine hopes. Published:5/19/2020 7:18:08 AM
[Markets] Dow Jones Futures Fall On Home Depot Earnings After Coronavirus Stock Market Rally Soars On Vaccine Hopes Dow Jones futures extended losses on Home Depot earnings. The coronavirus stock market rally surged Monday as vaccine progress raised hopes for a rapid economic recovery. Published:5/19/2020 5:47:44 AM
[Markets] Asian Stocks Advance After U.S. Rally; Oil Gains: Markets Wrap (Bloomberg) -- Asian stocks rose Tuesday, spurred by a surge on Wall Street, after early results for an experimental vaccine sparked speculation economies could snap back quickly. Oil extended gains and Treasury yields held near five-week highs.Equities rose in Tokyo, Sydney and Seoul, though the magnitude of the advance was less than in the U.S. Contracts on the S&P 500 reversed modest gains on a report that Nasdaq would tighten IPO rules, affecting some Chinese companies. The U.S. benchmark jumped the most in almost six weeks after Moderna Inc. said its vaccine tests yielded signs it can create an immune-system response in the body. Oil consolidated above $30 a barrel.The risk-on rally comes as more economies around the world and within the U.S. ease restrictions that created one of the steepest downturns since the Depression. Federal Reserve Chairman Jerome Powell is scheduled to speak on the state of the recovery Tuesday, amid expectations he’ll press for further fiscal support.“Short-lived bounces in stock prices even while markets establish new lows are not unheard of,” Ashwin Alankar, head of global asset allocation at Janus Henderson, said in a note. “Forward-looking metrics such as earnings revisions and options prices, on the other hand, sound a more cautious tone both for the economy and stock prices.”Among the headwinds for stocks is a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to China, Reuters reported that Nasdaq is set to to unveil new rules on initial public offerings that will make it more difficult for some Chinese companies to list on the exchange. That follows moves in Washington to halt investments by a retirement plan into the stocks of Chinese firms.These are some of the main moves in markets:StocksS&P 500 futures were down 0.1% as of 9:37 a.m. in Tokyo. The S&P 500 Index surged 3.2%. The Dow Jones Industrial Average climbed 3.9% and the Nasdaq Composite Index rose 2.4%.Topix index gained 1.7%.Australia’s S&P/ASX 200 Index rose 2%.South Korea’s Kospi index rose 1.9%.Hong Kong’s Hang Seng Index futures advanced 1.8% earlier.CurrenciesThe Japanese yen was at 107.41 per dollar, little changed.The offshore yuan traded at 7.1163 per dollar.The Bloomberg Dollar Spot Index was little changed after sinking 0.7%.The euro was at $1.0920.The British pound was at $1.2214, up 0.2%.BondsThe yield on 10-year Treasuries fell one basis point to 0.71% after jumping eight basis points in the previous session.Australia’s 10-year bond yield climbed six basis points to 0.97%.CommoditiesWest Texas Intermediate crude climbed 4.1% to $33.12 a barrel.Gold rose 0.1% to $1,734.75 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P. Published:5/18/2020 8:14:24 PM
[Markets] The Oil Rally Is Running On Fumes The Oil Rally Is Running On Fumes Tyler Durden Mon, 05/18/2020 - 20:38

Submitted by Nick Cunningham at Oilprice.com

Oil prices have surged to two-month highs on growing signs of a rebound in oil demand, as the easing of lockdowns spread worldwide. At its peak in April, global lockdown measures affected around 3.9 billion people. But an estimated 3.7 billion people are now living in areas that are experiencing some version of a “reopening,” according to an estimate from Raymond James. 

Data from China has stoked some bullishness in oil markets, although there are some mixed signals. Traffic is back in many Chinese cities, and there are early signs that China’s oil demand is rising back close to pre-pandemic levels around 13 million barrels per day (mb/d). 

At the same time, a new coronavirus cluster in China suddenly sparked another lockdown measure. While Wuhan and other regions may be opening up, roughly 108 million people in Jilin province just went into lockdown. It’s a sign that the fight against COVID-19 will likely be frustrated by repeated flare ups in new cases, which may ultimately lead to renewed lockdowns. 

But for now, the markets apparently want to focus on the positive. On the global vaccine front, there appears to be some progress. Moderna said on Monday that its vaccine has shown to be safe in humans and has also demonstrated promising results in stopping COVID-19. Meanwhile, AstraZeneca said it could have 30 million doses of its vaccine ready by September.

Financial equities rejoiced, with the Dow Jones up roughly 3.5 percent during midday trading. WTI surged past $30 per barrel, up at one point on Monday by more than 10 percent. 

Massive supply cuts go even further in explaining the recent jump in prices. Oil traders view the implementation of the OPEC+ cuts favorably, with the 9.7 mb/d cuts phasing in swiftly. Part of the reason is that some oil producers, including Saudi Arabia, began having difficulty finding a home for its oil, so a portion of the cuts arguably became involuntary. 

Meanwhile, weeks of catastrophically low oil prices ravaged North American oil producers over the past two months. Shut ins could reach 2 mb/d in the U.S. by June, and Canada could lose 1 mb/d. 

But a reality check is in order. WTI at $30 per barrel is suddenly seen as “bullish,” but that price level is financially unsustainable for a vast swathe of global oil supply, including most of the U.S. shale complex. 

Moreover, the physical oil market is not “out of the woods” just yet, according to Rystad Energy. “We still see a 13.7 million bpd implied liquids (crude, condensate, NGLs, others) stock builds in May-20,” the firm said in a statement. That is down by half from the peak of the glut (-26.7 mb/d in inventory builds in April), but a significant overhang remains. 

Separately, Commerzbank argued that the oil market optimism may be running a little too far. “Despite all the euphoria, however, we believe that caution is still advisable: it will probably take some years before demand recovers to its pre-crisis level,” Commerzbank wrote on Monday.

U.S. Federal Reserve Chairman Jerome Powell warned that the American economy recovery could take until the end of 2021. “It could stretch through the end of next year. We really don’t know,” Powell said over the weekend. He noted that the economy might not return to normal simply because stay-at-home-orders are in the process of going away. “For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine,” Powell added.

In addition, the price rally may also be the result of speculative positioning – the physical market is trending towards rebalancing, but the rally can also be explained by overly exuberant speculative positioning. “Retail and institutional investors are also likely to have played a key part in the latest price rise. According to the CFTC, the latter expanded their net long positions in WTI on the NYMEX to around 352,000 contracts in the week to 12 May, putting them at their highest level since September 2018,” Commerzbank added. “Thus the positive trends (for the oil price) are largely expected and already priced in.”

The lockdowns are lifting, but there is nothing to suggest that the end of the pandemic is near, or that oil supply will remain shut in. “[T]here is significant downside risk related to two events, the resurgence in COVID-19 outbreaks, and deteriorating compliance to OPEC+ cuts as demand comes back,” Rystad warned. 

Published:5/18/2020 7:42:55 PM
[Markets] Dow Jones Futures: Coronavirus Stock Market Rally Soars On Vaccine Hopes; Alibaba Clears Buy Point, Apple Near Dow Jones futures: The coronavirus stock market rally surged as vaccine progress raised hopes for a rapid economic recovery. Will real economy stocks lead? Published:5/18/2020 5:16:18 PM
[Markets] Deep Dive: Here are Monday’s best stock-market performers as airlines and cruise lines shine Only one Dow Jones Industrial Average component declined.
Published:5/18/2020 4:07:36 PM
[Markets] Dow Jones Soars 700 Points, Led By Walt Disney Stock; Top Chip Stock Shoots Higher On Upgrade The Dow Jones opened sharply higher with the Nasdaq composite and S&P; 500 Monday. An upgrade lifted shares of Nvidia ahead of Thursday's earnings report. Published:5/18/2020 9:42:12 AM
[Markets] Dow surges nearly 700 points at Monday's open amid hopeful report on Moderna's experimental coronavirus vaccine U.S. stock benchmarks surged at Monday's open after a report of early success in a vaccine for the COVID=19 pandemic helped to stir optimism on Wall Street. Meanwhile, Federal Reserve Chairman Jerome Powell said that Americans need to prepare for a tough road ahead in the aftermath of the COVID-19 pandemic but that he wouldn't bet against the domestic economy's ability to persevere through the most significant public-health crisis in more than a century. The Dow Jones Industrial Average rose 685 points, or 2.9%, at 24,361, the S&P 500 index gained 2.4% at 2,932, while the Nasdaq Composite Index advanced 1.7% at 9,165. The rally for the benchmark futures accelerated after a report on a phase-one human trial for a coronavirus vaccine produced by Moderna Inc. showed the production of antibodies to the virus in all of its 45 participants involved in the study.CNBC reported that participants in the trial received two doses of the potential vaccine via intramuscular injection in the upper arm approximately 28 days apart. "These interim Phase 1 data, while early, demonstrate that vaccination with mRNA-1273 elicits an immune response of the magnitude caused by natural infection starting with a dose as low as 25 µg," Tal Zaks, Moderna's chief medical officer, said in s statement. Bloomberg reported that the study is being conducted with the U.S. government, noting that Moderna will expand its trial. Markets had already looked set to kick off the week on a high note after the worst weekly decline in almost two months, as U.S. central bank chief Powell said the Fed would continue to support the economy and financial markets through the viral outbreak. Published:5/18/2020 8:39:45 AM
[Markets] Dow Jones Futures Signal Coronavirus Market Rally On Vaccine Hopes; Apple, Tesla Lead Tech Giants Near Buy Points Dow Jones futures signaled a strong coronavirus stock market rally on coronavirus vaccine and treatment news. Apple, Facebook, Google, AMD and Tesla are near buys points. Published:5/18/2020 7:12:35 AM
[Markets] The S&P 500 Was Stopped in Its Tracks Last Week. Here’s Why Another Drop Could Be in the Offing. The Dow Jones Industrial Average dropped 645.90 points, or 2.7%, to 23,685.42, while the S&P 500 index fell 2.3%, to 2863.70, and the Nasdaq Composite declined 1.2%, to 9014.56. It was the Dow’s and the Nasdaq’s worst week since the week ended April 3, and the S&P 500’s worst since the week ended March 20. Thanks to Covid-19, the economic data continue to be terrifying—nearly 3 million additional people filed for jobless claims, retail sales suffered the largest plunge on record, and industrial production cratered. Published:5/15/2020 7:52:14 PM
[Markets] Dow Jones Fights To Close Higher Amid Rising China Trade War Tension The Dow Jones fought to close higher on the stock market today, as investors turned their attention to potential renewed trade tensions with China. Published:5/15/2020 4:23:36 PM
[Markets] 'Asset prices remain vulnerable to significant price declines should the pandemic take an unexpected course,' says Fed The markets are vulnerable to a pullback, said the Federal Reserve in the central bank's most recent account of the health of the financial markets in the aftermath of coronavirus. "Asset prices have been volatile across many markets," the central bank wrote in its latest semi-annual report on the financial sector published at 4 p.m. Eastern Time on May 15. "Since their lows in late March and early April, risky asset prices have risen and spreads have narrowed in key markets, the Fed wrote. "Asset prices remain vulnerable to significant price declines should the pandemic take an unexpected course, the economic fallout prove more adverse, or financial system strains reemerge," policy makers explained. Fed Chairman Jerome Powell said earlier this week that a lengthy downturn could turn liquidity problems into solvency issues. The Dow Jones Industrial Average , the S&P 500 index and the Nasdaq Composite Index have all surged by more than 20% since hitting a bear-market low on March 23, with a number of high-profile investors warning that valuations may have gotten lofty amid the worst viral outbreak in more than a century. The COVID-19 pandemic has killed nearly 300,000 people globally and infected more than 4 million people, according to data compiled by Johns Hopkins University. The Fed was forced to unleash a series of unprecedented actions to limit the economic damage from forced shutdowns and closures intended to curtail the spread of the deadly pathogen. Those lockdowns, however, have likely pushed the domestic economy into one of its worst recessions since the Great Depression, with some 36.5 million people out of work over the past two months. "Uncertainty remains high and markets remain volatile relative to historical norms, suggesting the possibility of further price declines should developments prove more adverse than expected," wrote the Fed. Published:5/15/2020 3:52:24 PM
[Markets] Raytheon Technologies Corp., American Express share losses contribute to Dow's 25-point drop DOW UPDATE Behind negative returns for shares of Raytheon Technologies Corp. and American Express, the Dow Jones Industrial Average is falling Friday afternoon. Shares of Raytheon Technologies Corp. (RTX) and American Express (AXP) have contributed to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 24 points lower (-0. Published:5/15/2020 2:50:07 PM
[Markets] Dow jumps nearly 50 points on gains in Walt Disney, Home Depot stocks DOW UPDATE Led by strong returns for shares of Walt Disney and Home Depot, the Dow Jones Industrial Average is climbing Friday afternoon. Shares of Walt Disney (DIS) and Home Depot (HD) are contributing around a quarter of the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 48 points (0. Published:5/15/2020 1:20:14 PM
[Markets] Dow Jones Stumbles As Retail Sales Plunge; Stock Soars 130% On Coronavirus Drug The Dow Jones Industrial Average tumbled nearly 300 points early Friday before paring losses, amid grim economic data and U.S.-China trade concerns. Published:5/15/2020 11:19:07 AM
[Markets] Dow under pressure Friday amid worst retail sales report in more than 50 years; J.C. Penney's stock halted for news U.S. stock benchmarks opened lower on as investors parsed economic reports that further underscored the economic harm from the COVID-19 pandemic. The Dow Jones Industrial Average was trading 70 points, or 0.3%, lower at 23,555, the S&P 500 index declined 0.4% at 2,841, while the Nasdaq Composite Index retreated 0.5% at 8,897. Data on U.S. retail sales fell 16.4% in April as the economy remained all but shut down, exceeding the 12.5% drop expected, on average, by economists polled by MarketWatch. Excluding autos, sales still dropped 16.2%. Meanwhile, the New York Fed's Empire State business conditions index rose 29.7 points to -48.5 in May. Economists had expected a reading of -65, according to a survey by Econoday. A figure below 100 indicates a contraction in demand. In corporate news, J.C. Penney Co.'s shares were halted for news with many expecting that the beleaguered retailer may file for bankruptcy protection. Published:5/15/2020 9:18:57 AM
[Markets] Dow Jones Futures Fall On China Tensions After Coronavirus Stock Market Rally; JD.com, Chip Giant, Covid Test-Maker Are Earnings Movers Dow Jones futures fell on revived China tensions after Thursday's coronavirus stock market rally. Covid-19 test-maker Co-Diagnostics led earnings movers. Published:5/15/2020 6:47:50 AM
[Markets] European stocks open higher after strong Wall Street finish, Chinese data European stocks opened higher Friday, buoyed by a strong Wall Street finish as well as data showing rising Chinese industrial production. The Stoxx Europe 600 ] rose 1.1% and the U.K. FTSE 100 added 1.3%. Cruise operator Carnival surged 9% and easyJet climbed 5%. Futures on the Dow Jones Industrial Average edged up 86 points. Published:5/15/2020 2:47:44 AM
[Markets] American Express, UnitedHealth share gains lead Dow's nearly 300-point rally DOW UPDATE Shares of American Express and UnitedHealth are trading higher Thursday afternoon, leading the Dow Jones Industrial Average rally. Shares of American Express (AXP) and UnitedHealth (UNH) have contributed to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 296 points, or 1. Published:5/14/2020 3:14:00 PM
[Markets] The Dow is staging a nearly 800-point U-turn that has the index in the midst of a sharp reversal from its opening tumble The Dow Jones Industrial Average Thursday midday was trading firmly higher, reversing a sharp drop that served as a gut-check to bullish investors amid the COVID-19 pandemic. The Dow was up 308 points, or 1.3%, at 23,562, following a skid that saw it lose as many as 458 points at its intraday nadir at 22,789.62. Gains were being driven by an advance in American Express Co. and UnitedHealth Group Inc., which were helping to lead the charge. The S&P 500 index was up 0.8% at 2,843, powered by a gain in the financials sector and a rally in the energy sector . The technology laden Nasdaq Composite Index was trading up 0.4% , or 37 points, at 8,900--well off its lows at 8,705.25. Published:5/14/2020 2:45:22 PM
[Markets] Dow, S&P 500 Bounce Hard Off Lows; Take Profits In Zynex, Co-Diagnostics? The Dow Jones Industrial Average is demonstrating resilience, erasing an early 2% loss, unfazed by news of another big surge in weekly jobless claims. Published:5/14/2020 1:46:56 PM
[Markets] Dow Jones, S&P 500 Bounce Hard Off Lows; Is It Time To Take Profits In Zynex? The Dow Jones Industrial Average is demonstrating resilience, erasing an early 2% loss, unfazed by news of another big surge in weekly jobless claims. Published:5/14/2020 12:47:42 PM
[Markets] The Dow is staging a 600-point U-turn that has the index in the midst of a sharp reversal from its opening tumble The Dow Jones Industrial Average Thursday midday was trading firmly higher, reversing a sharp drop that served as a gut-check to bullish investors amid the COVID-19 pandemic. The Dow was up 140 points, or 0.6%, at 23,392, following a skid that saw it lose as many as 458 points at its intraday nadir. Gains were being driven by an advance in American Express Co. and UnitedHealth Group Inc., which were helping to lead the charge. The S&P 500 index was up 0.3% at 2,828, powered by a 1.9% gain in the financials sector and a 1% rally in the energy sector . The technology laden Nasdaq Composite Index was off 0.2% but well off its lows at 8,705.25. Published:5/14/2020 12:13:45 PM
[Markets] Dow Jones News: Cisco Stock Surges; 3M Suffers Double-Digit Sales Decline The stock market was volatile on Thursday, declining early, recovering, then declining again. The Dow Jones Industrial Average (DJINDICES: ^DJI) was down around 0.3% at 11:30 a.m. EDT. Cisco Systems (NASDAQ: CSCO) was the Dow's top performer on Thursday, boosted by a quarterly report that wasn't as bad as expected. Published:5/14/2020 11:43:53 AM
[Markets] Dow's Move Higher Fizzles Amid Grim Employment Data Stocks declined Thursday after another 3 million Americans filed for unemployment benefits in the latest week and as tensions were rising between the United States and China. The Dow Jones Industrial Average fell 81 points, or 0.35%, to 23,166, the S&P 500 declined 0.63% and the Nasdaq dropped 0.97%. The Dow made a brief move into positive territory earlier as bank stocks led by JPMorgan Chase moved higher. Published:5/14/2020 11:13:26 AM
[Markets] Dow Jones Futures Signal Another Coronavirus Stock Market Rally Sick Day Amid Heavy Jobless Claims Dow Jones futures: After the coronavirus stock market rally retreated again Wednesday, Cisco earnings beat views and Mastercard the start of "normalization." Published:5/14/2020 7:56:16 AM
[Markets] Dow Jones Futures: Another Coronavirus Stock Market Rally Sick Day? Cisco Earnings Top, Mastercard Sees 'Normalization' Dow Jones futures: After the coronavirus stock market rally retreated again Wednesday, Cisco earnings beat views and Mastercard the start of "normalization." Published:5/14/2020 5:55:53 AM
[Markets] European stocks slide at the open European stocks slumped at the open Thursday, with the Stoxx Europe 600 falling 1%, after a rough Wall Street session following the grim outlook from Federal Reserve Chairman Jerome Powell. Geopolitical tensions were apparent as the U.S. accused China of trying to steal vaccine information while France objected to one of its drugmakers, Sanofi, saying it would give U.S. priority to a coronavirus vaccine. Futures on the Dow Jones Industrial Average fell 67 points. Published:5/14/2020 2:16:14 AM
[Markets] The Last Hour of the Day Hasn’t Been Good for U.S. Stocks Lately (Bloomberg) -- U.S. stocks have been dropping toward the end of their regular session in the past couple of weeks.“Yesterday, a late day S&P sell-off continued a trend over the last two weeks of weakness in the last hour of the day,” Susquehanna Financial Group LLP’s Chris Murphy wrote in a note Wednesday. The gauge was negative over the 3 p.m. to 4 p.m. time period in New York in eight of the 11 days through Tuesday, with a daily average performance of minus 0.34%, he said, compared with a 0.07% average gain from 9:30 a.m. to 3 p.m.Read more: Noise for Sale in Giant U.S. Auctions Used to End Stock SessionsThe Smart Money Flow Index, which measures the Dow Jones Industrial Average 30 minutes into a session versus the end of the day, has been decreasing in the past few weeks, Murphy said. A trading maxim is that the action early in a session features “dumb money,” which reacts emotionally to news, while “smart money” like institutions wait until the end of the day.With the growth of passive investments and other changes in dynamics that may be less true, but the decline in the SMF Index could be a sign “smart money” is selling.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P. Published:5/14/2020 1:48:42 AM
[Markets] Dow Jones Futures: After Coronavirus Stock Market Rally Sick Day, Cisco Earnings Top, Mastercard Sees 'Normalization' Dow Jones futures: After the coronavirus stock market rally retreated again Wednesday, Cisco earnings beat views and Mastercard the start of "normalization." Published:5/13/2020 7:38:45 PM
[Markets] Stock Market Wrap-Up: These 2 Stocks Hit New All-Time Record Highs Wednesday reminded investors about the potential downside of the stock market. Market participants got a dose of economic reality from the chair of the Federal Reserve, as Jerome Powell emphasized the need for further fiscal stimulus in order to prevent what could otherwise be a prolonged period of deep economic retrenchment. After having opened near the unchanged mark, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) finished the dow with losses of as much as 2%. Published:5/13/2020 4:13:15 PM
[Markets] American Express, Exxon Mobil share losses contribute to Dow's 585-point drop DOW UPDATE The Dow Jones Industrial Average is slumping Wednesday afternoon with shares of American Express and Exxon Mobil seeing the biggest losses for the blue-chip average. Shares of American Express (AXP) and Exxon Mobil (XOM) have contributed to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 585 points lower (-2. Published:5/13/2020 2:39:19 PM
[Markets] American Express, Exxon Mobil share losses lead Dow's 450-point drop DOW UPDATE Dragged down by declines for shares of American Express and Exxon Mobil, the Dow Jones Industrial Average is in a selloff Wednesday afternoon. The Dow (DJIA) was most recently trading 459 points (1. Published:5/13/2020 1:24:02 PM
[Markets] Raytheon Technologies Corp., Exxon Mobil share losses contribute to Dow's nearly 150-point drop DOW UPDATE The Dow Jones Industrial Average is falling Wednesday morning with shares of Raytheon Technologies Corp. and Exxon Mobil facing the biggest losses for the price-weighted average. The Dow (DJIA) was most recently trading 149 points lower (-0. Published:5/13/2020 10:06:38 AM
[Markets] Dow Jones Falls On Fed Chief Powell; Is The Coronavirus Stock Market Rally Disconnected From Economic Reality? The Dow Jones futures fell as Fed chief Jerome Powell gave a cautious outlook: Is the coronavirus stock market rally divorced from economic reality? Published:5/13/2020 9:06:42 AM
[Markets] Dow Jones Futures Fall On Fed Chief Powell; Is The Coronavirus Stock Market Rally Disconnected From Economic Reality? Dow Jones futures fell as Fed chief Jerome Powell gave a cautious outlook: Is the coronavirus stock market rally divorced from economic reality? Published:5/13/2020 8:36:14 AM
[Markets] U.S. stock futures rise coming off last week's rally After starting slowly, U.S. stock index futures were shooting higher late Sunday. As of 8:30 p.m. Eastern, Dow Jones Industrial Average futures were up 126 points, or 0.5%, while S&P 500 futures and Nasdaq-100 futures were also up around the same percentages. Stocks rose Friday, and for the week the Dow advanced 2.6%, the S&P 500 ended 3.5% higher while the Nasdaq advanced 6%, as expectations for an economic bounce-back as businesses gradually reopen outweighed new data showing more than 20 million Americans lost their jobs in April amid coronavirus-related shutdowns. Published:5/10/2020 7:50:06 PM
[Markets] Stock Market Wrap-Up: Friday's Big Stock Winner Looks Like a No-Brainer Right Now The stock market has been extremely optimistic lately, even in the face of heightened uncertainty related to the global COVID-19 outbreak. The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were all higher by about 1% to 2% on Friday. PRA Group (NASDAQ: PRAA) specializes in debt collection, and it stands to see rising demand as business clients struggle to get the customers who owe them money to pay them back. Published:5/8/2020 5:02:40 PM
[Markets] Dow Jones Runs 455 Points Higher As Stock Market Shrugs Off Dismal Jobs Report The Dow Jones industrials rallied late to close near session highs Friday, as investors focused on positive news instead of dreary jobs data. Published:5/8/2020 3:40:25 PM
[Markets] Dow Jones Vaults 6,025 Points From March 23 Bottom; This Hot Stock Triggers 8-Week Hold Rule The Dow Jones Industrial Average has now lifted more than 6,000 points from its March low. AudioCodes has triggered a special holding rule. Published:5/8/2020 1:01:43 PM
[Markets] Dow Jones Futures Signal Strong Gains For Post-Coronavirus Market Rally Ahead Of Jobs Report; Will Tesla Plant Reopen Today? Dow Jones futures signal more gains in the post coronavirus stock market rally. Several stocks moved on earnings just after breaking out. Will Tesla Fremont open? Published:5/8/2020 5:29:34 AM
[Markets] U.S. Stock Futures Gain as Negotiators Vow Effort on Trade Deal (Bloomberg) -- U.S. stock index futures rose as positive developments around a U.S.-China trade deal added to optimism spurred by news on major economies moving toward reopening.Contracts on the S&P 500 rose as much as 1.5% before trading 0.9% higher as of 9:08 a.m. in London. Futures on the Nasdaq 100 Index and Dow Jones Industrial Average were also up 0.9%. China’s Vice Premier Liu He talked with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin by phone on Friday Beijing time, according to the Xinhua News Agency. The two sides pledged to cooperate on the economy and public health, the report said.“Given the recent rising tensions between the U.S. and China surrounding Covid-19, investors are likely comforted to see that both sides are still working toward implementing the phase-one deal,” said Takeo Kamai, head of execution services at CLSA Securities Japan. “Disruption in the trade front would’ve added another level of anxiety and put us right back to the central issue for the markets in 2019.”The gains in equity futures added to bullish sentiment that drove shares higher on Wall Street on Thursday. The underlying S&P 500 rallied 1.2% with speculation mounting that the worst of the economic damage from the virus has passed as more of the country reopens.The focus later Friday will be on the U.S. jobs report, which is forecast to show employers slashed about 22 million jobs in April, nearly erasing a decade of job gains in a single month.On Thursday, data showed filings for unemployment remained at historically high levels, but fell from the prior week. The tech-heavy Nasdaq Composite turned positive for the year, wiping out losses that reached as much as 24% at the depths of the pandemic-fueled sell-off.(Updates prices throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P. Published:5/8/2020 3:28:24 AM
[Markets] Dow futures rise 270 points Thursday evening as stock-market bulls brace for final test of week from Friday jobs report U.S. stock-index futures climbed higher Thursday evening in light trading as investors readied for another test of the bullish momentum that has produced gains in two of the past three sessions for the S&P 500 and the Dow, powered by rallies in energy and technology-related firms. However, the market will have to overcome Friday's jobs report, which will underscore the depth of the impact of the COVID-19 pandemic on the American economy. Thus far, the market has blown past Thursday's weekly jobless claims report, which showed that 3.2 million jobs were lost in April, bringing the total seeking jobless benefits in the U.S. over the past six weeks to 33 million, or approximately one out of every five eligible workers. Friday's nonfarm-payrolls report is expected to show that unemployment hit double-digits, with levels likely to exceed those of the 2008-09 financial crisis. Futures for the Dow Jones Industrial Average were up 273 points, or 1.2% at 24,116, those for the S&P 500 index gained 1.1% at 2,896.75, while Nasdaq-100 futures picked up 1.1% at 9,156. During Thursday's regular session, the Dow ended 211.25 points, or 0.9%, higher, at 23,875.89, off its intraday high at 24,094.62, while the S&P 500 added 32.77 points, or 1.2%, to close at 2,881.19, led by a 2.5% rally in the energy sector [s:XX: SP500.10] and a 2.2% climb in financials [s:XX: SP500.40]. The Nasdaq Composite Index wrapped up at 8,979.66, up 125.27 points, or 1.4%, notching a 0.08% year-to-date advance, erasing its losses for 2020. In corporate news, Dropbox Inc. notched its first quarterly profit since its debut as a publicly traded company in 2018, and Uber Technologies reported first-quarter results that revealed weakness in its ride-hailing business but a surge in its food-delivery segment. Published:5/7/2020 10:02:34 PM
[Markets] Boeing, Walt Disney share gains contribute to Dow's nearly 250-point rally DOW UPDATE Led by positive momentum for shares of Boeing and Walt Disney, the Dow Jones Industrial Average is rallying Thursday afternoon. Shares of Boeing (BA) and Walt Disney (DIS) are contributing about a quarter of the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 243 points higher (1. Published:5/7/2020 2:26:06 PM
[Markets] Boeing, Dow Inc. share gains contribute to Dow's 310-point rally DOW UPDATE Shares of Boeing and Dow Inc. are trading higher Thursday afternoon, propelling the Dow Jones Industrial Average rally. Shares of Boeing (BA) and Dow Inc. (DOW) have contributed about 25% of the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 310 points higher (1. Published:5/7/2020 1:27:29 PM
[Markets] 3 Reasons the Dow Is Climbing After 3 Million Americans Lost Their Jobs More than three million Americans filed for jobless insurance for the week ended May 3, and yet the Dow Jones Industrial Average had gained more than 300 points. Published:5/7/2020 11:28:03 AM
[Markets] Dow Jones Jumps 400 Points, As Jobless Surge Continues; Coronavirus Vaccine Gets Phase 2 FDA Approval The Dow Jones Industrial Average jumped 400 points midday Thursday amid climbing jobless claims, as the coronavirus stock market rally continues. Dow Jones stocks Apple and Microsoft are above new buy points, while biotech Moderna surged as much as 14% on coronavirus vaccine news. Published:5/7/2020 10:54:18 AM
[Markets] Dow Jones Jumps 350 Points, As Jobless Surge Continues; Coronavirus Vaccine Gets Phase 2 FDA Approval The Dow Jones Industrial Average jumped 350 points early Thursday amid climbing jobless claims, as the coronavirus stock market rally continues. Dow Jones stocks Apple and Microsoft are above new buy points, while biotech Moderna surged 10% on coronavirus vaccine news. Published:5/7/2020 9:26:00 AM
[Markets] Dow futures climb slightly Wednesday evening ahead of jobless claims and parade of Fed speakers U.S. stock-index futures were trading slightly higher Wednesday evening, but have been choppy, as investors prepare for a report on weekly jobless claims and a host of speakers on the Federal Reserve that might offer more insights about the state of a rapidly deteriorating economy due to national procedures in place to avert a deeper crisis from the COVID-19 pandemic. Futures for the Dow Jones Industrial Average were trading up 52 points, or 0.2%, at 23,569, at last check Wednesday at 8:15 p.m. Eastern Time. Those for the S&P 500 index were trading 0.3% higher at 2,841.25, while Nasdaq-100 futures were gaining 0.4% at 8,987.75. During Wednesday's regular session, the Dow fell 218.45 points, or 0.9%, to finish at 23,664.64. The S&P 500 shed 20.02 points, or 0.7%, to end at 2,848.42, with declines for those benchmarks coming in the last hour of trade. The Nasdaq Composite , meanwhile, climbed 45.27 points, or 0.5%, to close at 8,854.39, only 1.3% off for the year to date, as investors continue to buy technology-related betting that they will fare the best in the aftermath of the deadly epidemic. Markets have struggled during the homestretch of regular trade on Wall Street lately as investors fight to identify a catalyst to drive stocks to further gains against a backdrop of history-setting economic pain playing out and that which also lies ahead. Thursday's report on those seeking unemployment benefits is likely to show that another 3 million Americans are out of work, adding to the already 30 million figure that has been racked up over the past two months. In corporate news, shares of Peloton are likely to surge in Thursday regular trade after the exercise-equipment maker reported that quarterly sales hit $524.6 million, up 66% from the year before, thanks to a surge in sales for folks under stay-at-home policies. However, shares of Grubhub Inc. fell more than 4% in the extended session Wednesday after the company missed earnings expectations and did not issue revenue guidance amid the COVID-19 pandemic. And Costco Wholesale Corp. said late Wednesday that its April sales fell 1.8% as skyrocketing e-commerce sales didn't make up for a drop in foot traffic at its stores. In Fed speakers, Atlanta Fed President Raphael Bostic, Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker. Published:5/6/2020 7:50:31 PM
[Markets] Dow drops nearly 150 points on losses for shares of Dow Inc., Travelers DOW UPDATE Shares of Dow Inc. and Travelers are seeing declines Wednesday afternoon, sending the Dow Jones Industrial Average into negative territory. Shares of Dow Inc. (DOW) and Travelers (TRV) have contributed to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 143 points (0. Published:5/6/2020 2:49:11 PM
[Markets] Dow Jones Lower As Payroll Drop Weighs; Are Apple, Microsoft Still In Buy Zone? The Dow Jones industrials reversed lower after giving up early gains as a biggest-ever drop in payrolls overshadowed a gradual reopening of some states. Published:5/6/2020 2:18:19 PM
[Markets] The Dow Is Going Nowhere. So Why Is the Nasdaq Flying? It’s a tale of two markets, as the Dow Jones Industrial Average and S&P 500go nowhere, while the Nasdaq Composite just keeps on rising. The Dow has dipped 10.10 points, while the S&P 500 has ticked up 0.1%. The Nasdaq Composite, however, has gained 1.2%. Published:5/6/2020 1:18:38 PM
[Markets] Dow Eyes 24,000, MercadoLibre Leads Gainers; Why Beyond Meat Hit An Early Buy Point The Dow Jones Industrial Average has been holding to most of its big gains since the March bottom. Are Beyond Meat and MercadoLibre a buy? Published:5/6/2020 12:48:20 PM
[Markets] Dow Jones Fades Early Gain, But Microsoft, Apple Strong; Biotech Leader Breaks Out On Earnings The Dow Jones Industrial Average lagged Wednesday, but Walt Disney, Intel, Apple and Microsoft outperformed in the blue-chip index. Published:5/6/2020 11:57:08 AM
[Markets] Dow's 75-point jump highlighted by gains for shares of Intel, Apple Inc. DOW UPDATE Buoyed by strong returns for shares of Intel and Apple Inc., the Dow Jones Industrial Average is up Wednesday morning. Shares of Intel (INTC) and Apple Inc. (AAPL) have contributed to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 74 points higher (0. Published:5/6/2020 8:53:14 AM
[Markets] Investing Legend Sees A Second Great Depression For Stocks By 2023 Investing Legend Sees A Second Great Depression For Stocks By 2023

The name of Kiril Sokoloff, author of the weekly WILTW (What I Learned This Week) newsletter through his advisory firm 13D Global Strategy & Research, needs no introduction on this website for the simple reason that over the past few years we have often published his highly insightful excerpts (most recently one month ago with "A Corporate-Debt Reckoning Is Coming").

Which is why the latest "Lunch with the FT" feature by the FT's Rana Foroohar may be of interest to readers curious about Sokoloff's background and how over the past four decades he became one of the most closely sought after independent thinkers and strategists on Wall Street (he works out of St. Thomas in the US Virgin Islands, unaffiliated with any bank), and why his clients - which include Mukesh Ambani, Sam Zell and Raymond Kwok - are quite happy to pay thousands of dollars for a subscription.

We find 13D fascinating, and one of the world's best newsletters for many reasons by the main one is that Sokoloff's overarching philosophy - fiscally conservative, rational, measured - is congruent with ours: as the FT notes, Sokoloff "has been trying to make the financial elite see the dangers of seeking to solve the problems of debt with more debt",  something we too have been doing since 2009 but obviously to absolutely no success.

As the FT continues, "the topic is timelier than ever, given that central-bank balance sheets — already huge before Covid-19 — are headed into the stratosphere, as policymakers struggle to cope with the crisis, not to mention the popping of a debt bubble that grew for years before it."

Sokoloff is, of course, referring to this.

In any event, we'll let readers catch up on the FT's profile of the WILTW author at their leisure, but we did want to highlight one particular aspect of his interview: namely what he believes may be in store.

As Foroohar writes, in preparation for her interview "I’ve been... reading Depression-era journalist Garet Garrett’s 1932 book A Bubble That Broke the World, recommended to me by Sokoloff as a primer for our age, since it covers how central-bank actions contributed to the debt-driven run-up to the stock market crash of 1929 and the Great Depression."

More apropos, Sokoloff also sent the author a chart which compares the Dow Jones between 1918 and 1932 to the current period, a chart which we have also shown repeatedly on this website in recent weeks, months and years. Why that particular chart? Because as the FT explains, it shows that "the rise and the fall are frighteningly similar to the period from 2009 onwards."

If history is a guide, stocks have further to go before they hit bottom. That’s Sokoloff’s view, anyway. Then as now, he says, “central bankers were pushing on a string”, trying in vain to whip up a real economic recovery with monetary policy.

And here is what Sokoloff believes will what happens when, again, "central banks push on a string":

How does Sokoloff - who has traditionally been upbeat, optimistic and generally bullish - justify his outlook so apocalyptic it could be taken from a post on that tinfoil conspiracy theory website Zero Hedge? Here's how:

"The more debt you add [via monetary and even some fiscal policy], the more unproductive the debt becomes,” says Sokoloff, who is now positioned at the dining table in front of his screen. It’s not a popular view these days. Austerity is out, and MMT — the notion that a country that controls its own currency can print it freely to fund deficit spending without worry — is in. (MMT stands for “modern monetary theory” or magic money tree”, depending on your viewpoint.) But Sokoloff believes the stimulus programmes being launched in the US, Europe and many other parts of the world will very likely end in tears.

“I think we’re at the beginning of a long-term period of deflation, falling prices and the loss of pricing power. The only way out of it will be to have a long period of austerity, and to get the US savings rate up dramatically.” He points as an example to the US in the period during the second world war, when federal budget deficits were high, well over 20 per cent of GDP in some years (compared to what may be some 20 per cent-plus by the end of this year) but the personal savings rates of Americans were positively Chinese — as high as 25 per cent including income gains from the war and net exports, as opposed to 8 per cent or so before the Covid-19 crisis — boosted by wartime rationing.

One-upping Sokoloff, we have created a better chart that more clearly lays out what happens if one tacks on the Great Depression outcome to the current Dow Jones. In short, we should see the Dow dropping to the Great Depression-equivalent low of roughly 10,000.

There is good news: after its plunged to all time lows, the Dow traded in a tight range for several years before eventually blasting off to unprecedented highs. What triggered it? Why World War II of course.

Which is why any true comparisons to the Great Depression era should also consider the cataclysmic event that ended it, and look forward to a similar outcome over the next few years. 

Tyler Durden Sun, 05/03/2020 - 15:15
Published:5/3/2020 2:30:27 PM
[Markets] ‘Don’t be fooled!’ A 40% drop could hit by next year after this bear-market rally fades, veteran economist warns ‘Don’t be fooled by the recent rebound in stocks; the investment scene is beginning to resemble the 1929 market crash and the early 1930s Great Depression.’ To me, it's like 1929 when stocks first fell, then rallied before plunging anew as the Great Depression set in. In his Bloomberg piece, Shilling pointed to the 48% plunge in the Dow Jones Industrial Average from Sept. 3 to Nov. 13 back in 1929, a pullback which may have “seemed like a reasonable correction” at the time, since the blue chips had rallied 500% in the eight years leading up to it. Published:5/2/2020 10:55:19 AM
[Markets] ‘Bond King’ warns the stock market could hit new lows amid ‘social unease’ “People don’t understand the magnitude of ... the social unease ... that’s going to happen,” Gundlach explained. At last check, the S&P 500 index (SPX) ended nearly 42 points, or 1.5%, higher on Monday, while the Dow Jones Industrial Average (DJIA) and the tech-heavy Nasdaq Composite (COMP) also finished the session firmly in green territory. Published:5/2/2020 9:16:16 AM
[Markets] Buffett's Berkshire spent the coronavirus-induced stock-market rout growing cash to a record $137 billion Warren Buffett's Berkshire Hathaway spent the first quarter, a period of historic turmoil fueled by COVID-19, stockpiling cash to record proportions, public filings show. Berkshire Hathaway Inc. apparently saw its holdings of cash and equivalents balloon to a record $137.2 billion at the end of the first quarter, up from about $128 billion at year-end, suggesting that the legendary investor, viewed as a white knight of sorts on Wall Street, has stayed on the sidelines amid one of the most turbulent periods in financial markets in decades. The Dow Jones Industrial Average , the S&P 500 index and the Nasdaq Composite all tumbled into a bear-market in March, typically defined as a drop of at least 20% from a recent high, hit the lows of that rout on March 23. Since that point, however, stocks have climbed by more than 20% as the market attempted to recover from the effects of the worst pandemic in more than a 100 years--one that caused economies to fall into a recessionary state as businesses across the globe were forced to shut down to slow the spread of the deadly pathogen. Berkshire also has been hit by the epidemic that has infected more than 3.3 million people and claimed about 240,000 lives globally since the illness was first identified in December in Wuhan, China. The conglomerate reported a huge first quarter loss of $49.7 billion, or $30,653 per class A share. However, Berkshire's first-quarter operating earnings were $5.9 billion or about $3,619 per class A share. Buffett is scheduled to host a annual shareholder meeting later today at 4:45 p.m. Eastern Time, where he may offer more clues on his strategy during this public-health crisis. Published:5/2/2020 8:20:20 AM
[Markets] Here are Friday’s biggest stock-market losers, driven lower by disappointing earnings and a shrinking manufacturing sector DEEP DIVE U.S. stocks posted broad declines to start the new month, as disappointing earnings reports and a set of economic numbers soured investors’ mood. • The Dow Jones Industrial Average (DJIA) sank 622 points, or 2. Published:5/2/2020 6:50:13 AM
[Markets] Dow Jones Dives 600 Points As Stock Market Sells Off On Trump's New Threat The Dow Jones industrials plunged more than 600 points after President Trump threatened to slap tariffs on China over the coronavirus pandemic. Published:5/1/2020 12:46:05 PM
[Markets] "They're All High On Fed Fairy Dust..." "They're All High On Fed Fairy Dust..."

Authored by Michael Maharrey via SchiffGold.com,

Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus.

They’re all high on Federal Reserve fairy dust.

US GDP contracted by 4.8% in the first quarter. It was the first negative GDP reading since a 1.1% decline in the first quarter of 2014 and it was the lowest level since the 8.4% plunge in Q4 of 2008.

And the worst is yet to come.

The Q1 GDP number only captures the first couple of weeks of coronavirus-inspired government lockdowns of the economy. In fact, in January Donald Trump and others were telling us that it was the best economy in the history of the world. That was also in the first quarter.

The first-quarter GDP print came in even worse than expected. Economists were projecting a contraction of 3.5 to 4%. The precipitous and rapid plunge in economic activity not only reflects the impacts of turning off the economy in the midst of coronavirus; it also reveals just how fragile the economy was before the pandemic.

Back in January, President Trump called it the greatest economy in history. Trump continued to talk up the economy during the State of the Union address, taking credit for the “strong” economic growth. At the time, Peter Schiff said nobody should be taking credit for the condition of the US economy. In fact, economic growth wasn’t much different than it was when Obama was president.

"The only difference is we had to borrow even more money to achieve the same level of fake GDP growth that we did under Obama. The reality is nobody should be taking credit for the current US economy. The question is who deserves the blame?”

Despite the hyperbolic cheerleading, the economy was riddled with debt and was already being propped up by extraordinary Federal Reserve monetary policy. We had three rate cuts in 2019. The Fed was running repo operations to stabilizing the financial markets and the central bank had already launched quantitative easing before COVID-19, even though Jerome Powell and Company refused to call it that.

The US economy was a big, fat, ugly bubble and coronavirus was the pin that popped it.

And judging by the Q1 GDP number, the air is coming out even faster than most analysts expected. In fact, recent economic data reveals a veritable house of horrors.

And yet on the same day we get this awful GDP print, stock markets rallied. The Dow Jones was up 532 points. The S&P 500 enjoyed a 2,66% gain.

That’s because the mainstream has been led into an economic fantasyland by a trail of Federal Reserve fairy dust.

According to media reports, the primary impetus behind the stock market gains was a promising new coronavirus drug. The vas majority of people out there still seem to believe that once we “solve” coronavirus, the economy will open right back up and everything will be fine. They still believe things will just snap back to normal. As I have said multiple times, things aren’t going back to normal. They weren’t normal to begin with. As Schiff put it, the best we can hope for is recovering from a depression to a recession.

The Federal Reserve was propping up the economy in January and it continues to prop up the economy today. The only difference is it’s had to add a lot more props over the last several weeks.

Trillions of them in fact.

The Federal Reserve has pumped trillions of dollars of new money into the economy. Its balance sheet has swelled to nearly $6.6trillion. And during its meeting yesterday, Fed Chair Jerome Powell promised to press on with as much as necessary.

At least give Powell credit for at least realizing things are really bad right now.

We’re going to see economic data for the second quarter that’s worse than any data we’ve ever seen.”

And yet he remains clueless about how the very policies he is pushing have brought us to this place to begin with. Like most everybody else, he still thinks it’s all about the virus and that if we can just pump in enough stimulus, the central bank can see us through.

In its statement, the Fed promised it would continue to throw the kitchen sink at the US economy with no holds barred.

The Federal Reserve is committed to using its full range of tools to support the US economy in this challenging time.”

It also committed to leaving interest rates at zero percent as long as it takes.

The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

During the post-FOMC meeting press conference, Powell refused to speculate on just how long rates might have to stay at zero. But if the great recession gives us any indication, forever might not be a bad guess. It seems incomprehensible that the Fed could ever raise rates given the levels of debt in the economy. Remember, the central bank was already cutting rates before coronavirus.

Of course, inflating the money supply by trillions of dollars has consequences of its own. Nobody seems concerned about that either. In fact, one reporter asked Powell how he would prevent a deflationary spiral even as the Fed chair directs the most inflationary monetary policy in history. In a tweet, Schiff said the question is will the Fed be able to admit its mistakes and reverse policy in time to prevent hyperinflation?

Powell also said the US government shouldn’t worry about the national debt. In fact, he encouraged more borrowing and spending to stimulate the economy.  Schiff hit the nail on the head again, tweeting, “The problem is Powell never worried about the debt.”

By-and-large, almost everybody is wandering around in this economic fantasyland high on Fed fairy dust. They’re convinced that this is a tiny economic speed bump. They don’t realize they’ve actually driven off a cliff. But at some point, the high will wear off. People will realize that the economy isn’t going to snap back to normal when Donald Trump snaps his fingers. And they’ll start to realize the fairy dust is what’s killing them.

Tyler Durden Fri, 05/01/2020 - 12:10
Published:5/1/2020 11:15:13 AM
[Markets] Dow falls 500 points near session lows Friday amid signs of China-U.S. tension and hazy outlooks from Amazon and Apple U.S. stock benchmarks on Friday were trading sharply lower to start the first day of trading in May as uncertainty from the outlooks from Amazon.com Inc. and Apple Inc. eroded some of the optimism that helped the Dow and S&P ring up their best April gains in 82 years. The Dow Jones Industrial Average was off 490 points, or 2%, at 23,859; the S&P 500 index fell 68 points, or 2.3%, at 2,845, while the technology-laden Nasdaq Composite Index declined 2.6% at 8,659. Late Thursday, Amazon said coronavirus-related costs such as employee testing and higher wages added to expenses and would likely in the future. Meanwhile, Apple declined to provide guidance for the current quarter. Adding to the bearish tone, President Trump indicated he may consider imposing tariffs on China, for their role in handling the novel coronavirus outbreak, which was first identified in Wuhan, China. Separately, shares of Tesla were under pressure after the CEO of the electric-vehicle maker, Elon Musk, tweeted that the company's share price was too high. Published:5/1/2020 10:44:49 AM
[Markets] Chevron profit rises but sales fall, amid COVID-19-related drop in demand for commodities Chevron Corp. reported Friday first-quarter earnings that rose but revenue that fell from a year ago, as commodity prices fell sharply in March primarily because of reduced demand amid the COVID-19 pandemic. "Financial results in future periods are expected to be depressed as long as current market conditions persist," the energy giant said in a statement. The stock was little changed in premarket trading. Net income rose to $3.60 billion, or $1.93 a share, from $2.65 billion, or $1.39 a share, in the year-ago period. Sales fell 13.1% to $29.71 billion, while total revenue, which includes income from equity affiliates and other income, declined 10.5% to $31.50 billion. The FactSet consensus for earnings per share was 65 cents and for sales was $29.1 billion. Chevron said it was further reducing its 2020 capital expenditure outlook by $2 billion to $14 billion, and expects operating costs to decrease by $1 billion. The company previously announced that it was suspending stock repurchases and has completed additional asset sales. "Together these actions are consistent with our longstanding financial priorities: to protect the dividend; to prioritize capital that drives long-term value; and to maintain a strong balance sheet," said Chief Executive Michael Wirth. The stock has dropped 14.1% over the past three months through Thursday, while crude oil futures have tumbled 64.4% and the Dow Jones Industrial Average has declined 13.8%. Published:5/1/2020 6:14:45 AM
[Markets] Dow Jones Futures: Apple, Amazon, Atlassian Test Buy Points On Earnings As Coronavirus Stock Market Rally, Tesla Hit Brakes; Amgen, Gilead Near Breakouts Dow Jones futures signal more pressure for the coronavirus stock market rally as Apple and Amazon undercut buy points on earnings. Tesla extended losses. Published:4/30/2020 5:41:55 PM
[Markets] Apple expects iPhone and wearables year-over-year revenue trends to weaken in June quarter Apple Inc. expects year-over-year revenue performance for the iPhone and wearables segments to worsen in the June quarter relative to the March quarter, according to Chief Financial Officer Luca Maestri on the company's Thursday earnings call. Revenue for the iPhone category fell by 6.7% in the March quarter and revenue for the wearables segment increased 22.5%. Apple also anticipates that year-over-year revenue performance will improve in the June quarter for Macs and iPads as more people work and study remotely. Mac revenue dropped 2.9% from a year earlier in the March quarter while iPad revenue fell 10.3%. Maestri said that Apple was seeing "two distinct trends" in services and he expects "very strong recent performance" for the App Store, video, Apple Music, and cloud services to continue through the June period while services like AppleCare may remain pressured. Apple also expects a negative impact of $1.5 billion from foreign exchange in the current quarter. Apple shares were off 2.4% in after-hours trading Thursday after the company's fiscal second-quarter earnings report. The shares have fallen 9% over the past three months as the Dow Jones Industrial Average has declined 16%. Published:4/30/2020 5:11:55 PM
[Markets] Dow ends lower as Washington Post reports U.S. 'crafting' retaliation against China for coronavirus handling U.S. stocks midday Thursday took a firm leg down midday but finished off the worst levels of the session after the Washington Post reported that U.S. officials were "crafting retaliatory actions against China' as the Trump administration criticizes the world's second-largest economy for its handling of the COVID-19 pandemic. The Dow Jones Industrial Average lost 288 points, or 1.2%, at 24,346, the S&P 500 index ended off 0.9% and the Nasdaq Composite Index dropped 0.3%, with all the benchmarks closing well off their worst levels of the day. The coronavirus was first identified in Wuhan, China in December and Trump has recently railed against what he has described as the country's lack of transparency around the severity of the outbreak. Meanwhile, the New York Times reported the Trump officials have "pushed American spy agencies to hunt for evidence to support" an unsubstantiated theory that the novel strain of coronavirus was derived from a laboratory in Wuhan. The pandemic has infected more than 3 million people world-wide and claimed more than 230,000 lives, according to data compiled by Johns Hopkins University. Published:4/30/2020 4:10:24 PM
[Markets] Apple stock options pricing in a tamer-than-usual earnings report While investors prep for the unknown from Apple Inc. , ahead of the technology behemoth's COVID-19-tainted fiscal second-quarter results after Thursday's closing bell, options traders are pricing in a less volatile than reaction. An options strategy known as a straddle, a pure volatility play that involves the simultaneous buying of bullish and bearish options with at-the-month stock prices, is pricing in a one-day, post-earnings move of 4.4% in either direction. That compares with a 5.1% move in either direction on the day after earnings over the past 8 quarters, and a average 4.6% move over the past 20 quarters. Based on current stock prices--the shares are up 1.2% at $291.03 in afternoon trading--that means the stock would have to close above $303.83 on Friday or below $278.23 for buyers of the straddle to make money. Apple's stock has lost 10% over the past 3 months, while the Dow Jones Industrial Average has declined 16%. Published:4/30/2020 2:09:34 PM
[Markets] American Express, Walt Disney share losses lead Dow's 388-point fall DOW UPDATE The Dow Jones Industrial Average is in selloff mode Thursday afternoon with shares of American Express and Walt Disney facing the biggest losses for the blue-chip average. The Dow (DJIA) was most recently trading 388 points (1. Published:4/30/2020 12:11:57 PM
[Markets] Germany Delays Reopening As Coronavirus Makes A Comeback: Live Updates Germany Delays Reopening As Coronavirus Makes A Comeback: Live Updates

Summary:

  • LA becomes first US city to offer county-wide testing
  • Lagarde warns eurozone economy could shrink up to 12% in 2020
  • Russia passes 100k cases
  • Sri Lanka reimposes lockdown measures
  • Italy retakes mantle of second-deadliest outbreak in Europe from UK
  • South Korea says 'zero' cases of infection stemming from April 15 election
  • Airbus reports massive loss, signals distress
  • New data suggests 1 in 6 US nursing homes suffered COVID-19 clusters
  • 500k coronavirus tests obtained by Maryland from SK haven't yet been used
  • NYT hammers Brazil's Bolsonaro for denying outbreak
  • UN warns about virus spreading in Syria, Yemen
  • Eurozone GDP contracts 3.8%
  • UK NHS allows hospitals to remove minority workers off the front lines

*         *         *

Update (1045ET): Germany has decided to postpone the next step of its economic reopening after data monitored by public health experts showed an uptake in the infection rate, bringing it dangerously close to a critical threshold.

As we reported yesterday, Germany's infection rate spike to 0.96 from 0.70 after some more businesses were allowed to reopen on April 24. Now, Germany will delay the reopening of schools and resuming futball matches, delays that will make it harder to reopen the rest of the country's economy.

  • GERMAN FEDERAL GOVT AND STATES POSTPONE DECISION ON REOPENING SCHOOLS, KNDERGARTENS AND RESUMING BUNDESLIGA SOCCER MATCHES - FOCUS ONLINE

Germany won plaudits for its early and broad-based testing, which allowed it to keep its case numbers relatively low, and its mortality rate among the best in the world. Chancellor Angela Merkel has insisted that Germany move with "caution" while reopening its economy.

*         *         *

Update (0945ET): ECB Chief Christine Lagarde was criticized for her lack of central-banking experience when she was first tapped to take over from Mario Draghi. And since pulling the ripcord on an unprecedented easing program from the central bank, she has spent the bulk of her time in the public eye urging the squabbling EU Council to get its shit together and agree on a concrete plan.

On Thursday, Lagarde warned that the European economy faces "an economic contraction of unprecedented size and speed" and warned that the Continental economy could contract by  up to 12% for the year 2020. Lagarde made her remarks during the press conference following Thursday's meeting of the ECB Governing Council, where the central bank affirmed that it would leave its easing program mostly as it was, while launching a new pandemic refinancing vehicle for eurozone banks.

In addition to the 5%-12% contraction for the year, Lagarde warned that YoY growth for Q2 could contract 15%. She added that the central bank is prepared to extend its rescue programs for as long as they are needed. She also took a few moments to castigate the European leaders over their failure to produce an acceptable fiscal rescue package.

In other news, Russia's outbreak has broken above 100k cases as it rapidly evolves into one of the worst outbreaks in the world.  It's only the eighth country to officially count more than 100k cases.

*         *         *

German public health officials announced yesterday that Germany's infection rate had ticked higher over last week since the German government started allowing some shops to reopen, raising the possibility that Germany - Europe's undisputed leader in tamping down the outbreak - might need to reimpose the lifted lockdown measures.

Meanwhile, in Japan, local press reported yesterday that PM Shinzo Abe would extend his nationwide 'state of emergency' order for a month as the health officials discover more evidence that the virus has deeply penetrated Japanese society, despite jokes about Japanese culture, which isn't big on inter-personal contact, is itself a form of social distancing.

But on Thursday morning, tiny Sri Lanka reimposed its 24-hour lockdown after officials detected a jump in infections.

After briefly taking the No. 2 spot from Italy yesterday, the UK is once again on track to clinch the mantle of "second-most deadly outbreak in Europe" following the latest revision to the UK death toll, announced yesterday, which added thousands of home deaths to the official tally.

Looking ahead on Thursday, the number of confirmed coronavirus cases has moved above 3.1 million, while the number of deaths is nearing 210k.

As far as the curve is concerned, both the pace of new deaths...

...and new cases...

Source: FT

...has begun to slow across the US and Europe.

With the number of domestically transmitted infections down to virtually zero, South Korean officials revealed Thursday morning that the country's April 15 elections had resulted in no new coronavirus infections. And now that two weeks - the typical incubation period - have passed since since the vote, it's become clear that none of the 29 million Koreans who cast ballots had been infected.

In the US, a new report has confirmed what many experts had suspected: the number of publicly reported coronavirus cases in US nursing homes has soared.

More than 1 in 6 facilities nationwide has detected infections among residents or staff, according to new data released by states such as Michigan, Maryland, Kentucky and South Carolina.

On Wednesday evening, LA Mayor Eric Garcetti said all Los Angeles County residents will be able to obtain free coronavirus testing, even if they are not displaying symptoms, as LA becomes the first city to offer county-wide testing.

As the battle to reopen America rages, a local Louisiana newspaper has uncovered a "secret plot" being organized by Republican state legislators to overturn Gov. John Bel Edwards' decision to extend his state's emergency order until May 15. Louisiana has been one of the hardest-hit states in the country, with 593 confirmed cases and 39 deaths for every 100,000 people, while also being ground-zero for the outbreak in the federal prison system that has killed dozens of prisoners already, including a female prisoner who gave birth by C-section.

A group of Republican legislators in Louisiana is quietly working to overturn the Democratic governor’s stay-at-home order, the Advocate newspaper reported.

Emails obtained by the Advocate revealed a plan to invoke an obscure provision that would allow a majority in either chamber of the Republican-controlled state to repeal Edwards' public-health emergency. Edwards' handling of the outbreak in his state has been widely praised, including by President Trump. But the devastating hit to the state's economy, which relies heavily on tourism, have put hundreds of thousands of jobs and businesses in the state at risk.

After reporting dismal Q1 earnings on Wednesday, the CEO of European aerospace giant Airbus - the "Jewel of the European economy" as the NYT called it - warned "we are now in the midst of the gravest crisis the aerospace industry has ever known."

The company reported a net loss of 481 million euros ($520 million) for Q1, a dramatic reversal from last year. In that period, it could not deliver 60 planes, partly because airlines are seeking to put off payment.

Following yesterday's historic contraction in US Q1 GDP, the EU followed suit on Thursday and reported its sharpest economic reversal since pan-European record keeping began in 1995.

Eurostat data showed a "seasonally-adjusted" contraction of 3.8% for eurozone countries, and a 3.5% contraction for all EU member states (including those - like Switzerland and Norway - who don't use the euro). 

European shares sloughed off the GDP reading, which was widely expected, as investors in Europe and Asia focused on the positive news from a study of remdesivir.

Early in April, UN workers raised the alarm about an outbreak in war-torn Syria as the coronavirus swept across the Middle East. Now, the UN is ringing the alarm once again, warning that the virus could be spreading more or less undetected across war-torn Yemen and Syria. Specifically, a new cluster has been discovered in Yemen, adding to the country's already sizable array of problems.

We’d like to reminder our American readers that while governors have largely led their states through the outbreak, there have been several notable instances of grandstanding and perhaps undeserved PR spin. One such example arrived on Thursday as the Washington Post reported that the ~500,000 coronavirus tests obtained by Maryland Gov. Larry Hogan - something he called an “exponential, game-changing step forward” - have yet to be used.

Finally, in the UK, evidence that the virus is disproportionately deadly for NHS workers from minority backgrounds (1/5th of nurses and half of doctors in London are from minority backgrounds) has led it to allow hospitals to move minority workers off the front line to try and tamp down the "disproportionate" deaths among them.

Minorities make up nearly 3/4ths of the health care workers known to have died from the virus.

As Brazil develops into the world's newest viral "hot spot", the NYT bashed Brazilian President Jair Bolsonaro for his continued refusal to acknowledge the crisis: Nearly 500 Covid-19 deaths were reported in Brazil on Tuesday, the highest single-day death toll yet. When asked about the milestone, President Jair Bolsonaro replied: "So what? I’m sorry. What do you want me to do?"

Bolsonaro's refusal to acknowledge the outbreak's severity has left Brazil with one of the lowest testing rates in the world. But fears that the outbreak is far more widespread than official numbers suggest haven't translated to the images of brutality and chaos seen in Wuhan earlier this year.

However, some hospitals have begun reporting familiar scenes of patients crammed into hallways, as the world waits to see if the outbreak will overwhelm Brazil's health-care system.

We've been closely following the outbreak in Russia in recent days as the confirmed case total has soared, alongside a jump in deaths. And as the outbreak worsens, Russian criminal gangs are increasingly trafficking in vital medical equipment. Russian police on Thursday exchanged gunfire with members of a mafia crew suspected of trafficking in illicit ventilators during a raid in a suburb of Moscow.

The interior ministry told Dow Jones that seven people had been detained, and five placed under house arrest, for allegedly selling the "unregistered" ventilators in the Moscow suburb of Gzhel.

A Russian digital media website reported that eight suspected gangsters had been arrested while trying to sell 100 ventilators for 70 million rubles (about $96,000). President Vladimir Putin has repeatedly warned criminals against exploiting the outbreak for profits.

Tyler Durden Thu, 04/30/2020 - 10:57
Published:4/30/2020 10:09:27 AM
[Markets] Dow falls 340 points as total jobless claims hit 30 million, likely bringing unemployment to Great Depression levels U.S. stock-index benchmarks on Thursday fell at the open after a report on those seeking unemployment benefits showed another big increase, as expected. Initial jobless claims rose 3.839 million in the week running from April 19 to April 25, with experts expecting 3.5 million, according to economists polled by MarketWatch. The unprecedented surge in layoffs has likely pushed the unemployment rate above 15% to the highest levels since the Great Depression, economists estimate. Total claims are around 30 million in the latest week. The Dow Jones Industrial Average fell 344 points, or 1.4%, at 24,300, those for the S&P 500 index slipped 1.1% at 2,906, while the Nasdaq Composite Index traded off 0.6% at 8,864. Published:4/30/2020 8:41:16 AM
[Markets] Dow futures fall 270 points after weekly jobless claims rise 3.8 million, likely bringing unemployment to highest since Great Depression U.S. stock-index futures on Thursday added to losses after a report on those seeking unemployment benefits showed another big increase, as expected. Initial jobless claims rose 3.839 million in the week running from April 19 to April 25, with experts expecting 3.5 million, according to economists polled by MarketWatch. The unprecedented surge in layoffs has likely pushed the unemployment rate above 15% to the highest levels since the Great Depression, economists estimate. Total claims are around 30 million in the latest week. Futures for the Dow Jones Industrial Average fell 275 points, or 1.2%, at 24,279, those for the S&P 500 index slipped 1.1% at 2,907.25, while Nasdaq-100 futures traded off 0.5% at 8,993. Published:4/30/2020 8:17:17 AM
[Markets] Dow Jones Futures: Coronavirus Stock Market Rally Set To Continue With These 5 Tech Titans Now In Buy Zones Dow Jones futures rose on strong earnings, signaling more gains for the coronavirus stock market rally. Microsoft, Tesla, Facebook and Vertex are in buy zones. Apple too. Published:4/30/2020 6:07:38 AM
[Markets] Dow's profit falls in line with expectations, sales beat Shares of Dow Inc. slipped 0.2% in premarket trading Thursday, after the materials science company matched profit expectations but topped sales forecasts, and said it was taking further measures to strengthen its financial position amid the COVID-19 pandemic. Net income rose to $258 million, or 32 cents a share, from $208 million, or 24 cents a share, in the year-ago period. Excluding special items, adjusted EPS fell to 59 cents from 98 cents but matched the FactSet consensus. Sales fell 11.3% to $9.77 billion, amid lower local prices due to a decline in energy prices, but topped expectations of $9.71 billion. Volume fell 2%, as growth in demand for food, health and hygiene packaging; surfactants and solvents for cleaning; and coatings was more than offset by declines in polyurethanes and silicones. Dow said it was beginning to see indications of recovery from COVID-19 in China. The company is further reducing its capital expenditure target to $1.25 billion, below the 2019 target of $2.0 billion, and trimming operating expenses by $350 million. The company is idling some manufacturing units. The stock has dropped 22.7% over the past three months through Wednesday, while the Dow Jones Industrial Average has declined 14.6%. Published:4/30/2020 5:45:21 AM
[Markets] Dow Jones Futures: Tesla Leads Tech Titans In Buy Zones As Coronavirus Stock Market Rally Roars Dow Jones futures rose on strong earnings, signaling more gains for the coronavirus stock market rally. Microsoft, Tesla, Facebook and Vertex are in buy zones. Apple too. Published:4/29/2020 6:06:17 PM
[Markets] Dow Jones Futures: These 5 Tech Titans Are In Buy Zones As Coronavirus Stock Market Rally Roars Dow Jones futures rose on strong earnings, signaling more gains for the coronavirus stock market rally. Microsoft, Tesla, Facebook and Vertex are in buy zones. Apple too. Published:4/29/2020 5:35:14 PM
[Markets] Dow holds strong gain after Fed vows to use full range of tools to help prevent prolonged damage from coronavirus U.S. stock markets Wednesday afternoon after the Federal Reserve kept rates unchanged, as expected, but vowed to do whatever it takes to help the economy bounce back from the public-health crisis created by COVID-19 pandemic. The Dow Jones Industrial Average gained 570 points, or 2.3%, at 24,662, the S&P 500 index rose 2.4% at 2,944, while the Nasdaq Composite Index climbed 3.5% at 8,913. In a statement following its two-day meeting of the policy-setting Federal Open Market Committee, the central bank said: "The ongoing public health crisis will weigh heavily on economic activity, employment and inflation in the near term, and poses considerable risks to the economic outlook over the medium term," the Fed said in a statement after two-day meeting. The Fed kept its benchmark rate close to zero and repeated it would hold policy steady until the economy has weathered recent events and "is on track" to achieve full employment and price stability. That is unchanged from the March forward guidance. The Fed has already reduced a key interest rate to a range between 0% and 0.25%, and increased its balance sheet to $6.6 trillion, adding $2.2 trillion over the course of the past few weeks, as it doled out funds to help prop up the U.S. economy during the coronavirus pandemic. Published:4/29/2020 1:08:02 PM
[Markets] Boeing, American Express share gains contribute to Dow's 618-point surge DOW UPDATE Shares of Boeing and American Express are posting strong returns Wednesday afternoon, sending the Dow Jones Industrial Average soaring. Shares of Boeing (BA) and American Express (AXP) are contributing about 50% of the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 618 points, or 2. Published:4/29/2020 12:08:51 PM
[Markets] Boeing, American Express share gains contribute to Dow's nearly 550-point surge DOW UPDATE Led by positive momentum for shares of Boeing and American Express, the Dow Jones Industrial Average is soaring Wednesday morning. The Dow (DJIA) was most recently trading 548 points, or 2. Published:4/29/2020 11:02:25 AM
[Markets] Dividend Massacre In This Crisis Is Already Breaking Records, And It's Only Just Starting Dividend Massacre In This Crisis Is Already Breaking Records, And It's Only Just Starting

Submitted by Wolf Richter of Wolf Street

Dividend yield can be an irresistible siren song in the era of central-bank interest-rate and bond-yield repression: Harley Davidson’s dividend yield was over 7% until this morning – when it announced that it would slash its dividend by 95%, from 38 cents to a symbolic 2 cents to conserve cash. Going forward, the dividend yield will be close to 0%.

GM, whose dividend yield was an alluring 6.5%, announced yesterday that it would eliminate its dividend altogether to save about $2 billion in cash; and going forward, its dividend yield will be 0%. Ford had a dividend yield of over 11% before it eliminated its dividend.

Mortgage REITS have reduced or eliminated their rich dividends – and dividends is the primary reason to hold REITs. This started in late March, when AG Mortgage Investment Trust announced that it would stop paying dividends. Investco Mortgage Capital and TPG RE Finance Trust both said they would “delay” paying their previously announced dividends to preserve liquidity. In April, AGNC announced that it would reduce its dividend by 25%.

All of them had theoretical dividend yields well into the double-digits. Investco’s theoretical dividend yield – which reflects the past annual dividend payments as a percent of current share price – is over 60%.

Mall REITs are under enormous pressure, with most of their tenants shut down and many of them not paying rent. For example, Macerich announced mid-March that it would reduce its dividend from 75 cents a share to 50 cents, of which it would pay only 20% in cash and the remaining 80% in stock.

The list of big names is getting longer by the day: Boeing, the airlines, the automakers, the cruise lines, cosmetics company Estee Lauder, hospital firm HCA Healthcare, hotel chains such as Hilton Worldwide and Marriott, casino operator Las Vegas Sands, retailers of all kinds including TJX, Kohl’s, and Macy’s….

This has been a persistent drumbeat over the past few weeks: Companies are struggling to preserve cash in order to survive this crisis, and dividends vanish with an announcement that the Board of Directors has decided to make them vanish.

Through Monday morning, 81 US companies and publicly traded investment funds, such as REITs and business development companies (BDCs), have announced that they would suspended or cancel their dividends, according to S&P Global Market Intelligence, cited by the Wall Street Journal.

It has only been a little over one month when this dance started, but those 81 suspensions or cancellations are already by far higher than the announcements of dividend suspensions and cancellations in any full calendar year going back to the beginning of the data in 2001. The prior record calendar year was 2009 with 63 announcements of dividends getting suspended or canceled.

Those 81 announcements so far are already higher than the combined total of the 10 years since 2010 (55).

And it doesn’t include those that will announce dividend cuts, including Oxford Square Capital [OXSQ], a publicly-traded BDC, which announced today that its dividend (or rather “distribution”) will mostly or totally vanish when it said “that no reliance should be placed on the prospect for any particular level of distribution for those months, or for any other periods.” Upon which its shares plunged 20%.

And 135 companies have announced in 2020 through Monday morning that they would reduce their dividends. This does not include companies like Harley Davidson that have chimed in since Monday morning. Those 135 announcements of dividend reductions so far this year is already the fourth highest number of any full calendar year in the data since 2001.

The number two and three calendar years for dividend reductions were 2015 (138) and 2008 (137). The year 2020 will take out those two in a couple of days, which will make 2020 the second highest year on record.

The number one calendar year on record for the highest number of dividend reductions was in 2009, with 316 such announcements. But 2020 is still young, and the crisis has just begun.

All dividend actions so far this year through Monday amount to a cut in payouts of about $22.8 billion, according to S&P Dow Jones Indices, cited by the Wall Street Journal.

Dividends look very attractive to income investors until the dividends disappear. That dreaded press release is all it takes. And income investors wonder where is there to go as the Fed systematically represses and destroys income from other sources such as investment grade bonds, government bonds, and savings products.

Well, for those investors, there are dividend stocks that still haven’t issued that infamous press release yet, such as energy giants Exxon and Chevron, which are caught up in the global collapse of the crude oil market, powered by the global collapse of demand for crude oil. Both have already announced large-scale cuts to their capital expenditure programs. Given the plunge in their shares, dividend yield has taken on juicy proportion: Exxon’s dividend yield is 7.8% and Chevron’s is 5.7%.

Will they, like the others that once had a juicy dividend yield, eliminate their dividends to preserve cash to get through this crisis?

That’s a thorny question, given the dividend massacre that has already happened so far this year. Chevron shares are down 26% year-to-date, despite the huge rally since March 23; Exxon shares are down 37% year-to-date. These share price declines show that investors have serious doubts about the dividends. And it shows how the old saw that dividend stocks are good for bear markets is actually a high-risk gamble.

Tyler Durden Wed, 04/29/2020 - 06:40
Published:4/29/2020 6:01:06 AM
[Markets] GE's stock drops after profit, FCF miss expectations but revenue beats Shares of General Electric Co. dropped 1.2% in premarket trading Wednesday, after the industrial conglomerate missed first-quarter adjusted profit and free cash flow expectation, as the COVID-19 pandemic had a "significant financial impact," but beat on revenue. Net income rose to $6.16 billion, or 70 cents a share, from $3.55 billion, or 41 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to 5 cents from 13 cents, missing the FactSet consensus of 8 cents. Total revenue fell 8% to $20.52 billion, above the FactSet consensus of $20.38 billion. Industrial free cash flow (FCF) was negative $2.21 billion, compared with guidance provided March of about negative $2 billion. GE said the COVID-19 pandemic reduced FCF by about $1 billion and hurt industrial profit by about $800 million. Within GE's business segments, revenue misses by Power and Aviation were offset by beats in Healthcare and Renewable Energy. GE Capital swung to a loss of $194 million from earnings of $171 million. GE's stock has dropped 47.5% over the past three months through Tuesday, while the Dow Jones Industrial Average has lost 16.1%. Published:4/29/2020 5:40:30 AM
[Markets] U.S. Index Futures Jump as Asia Stocks in Bull Zone Ahead of Fed (Bloomberg) -- U.S. equity-index futures advanced, helped by a late rally in Alphabet Inc. and Asian stocks heading for bull-market territory, ahead of a policy decision by the Federal Reserve.Contracts on the S&P 500 Index climbed 1% as of 11:32 a.m. in Tokyo, while futures advanced 1.2% on the Nasdaq 100 Index and 0.8% on the Dow Jones Industrial Average. Alphabet shares surged in after-hours trading after the company reported first-quarter revenue that beat analyst expectations.The MSCI Asia Pacific Index rose 0.7%, pushing its rebound from a March 23 low to more than 20% and set to enter a bull market.The U.S. central bank’s Federal Open Market Committee two-day meeting concludes Wednesday. Federal Reserve Chair Jerome Powell is seen facing a big decision about giving more guidance on the future path of interest rates.“Traders are expecting a significant rewrite in today’s FOMC policy statement when the Fed will, in unambiguous terms, send clear messaging that extraordinary policy settings will remain in place for as long as it takes,” Stephen Innes, chief global market strategist at AxiCorp, wrote in a note.The Nasdaq Composite Index snapped a two-day gain Tuesday, pulled down by Facebook Inc., Amazon.com Inc. and Netflix Inc. as data showed U.S. consumer confidence dropped in April to the lowest since 2014. The S&P 500 fell 0.5%, even as most stocks rose.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P. Published:4/28/2020 10:30:07 PM
[Markets] American Express, Dow Inc. share gains lead the way, but Dow flat DOW UPDATE Shares of American Express and Dow Inc. are trading higher Tuesday afternoon, propelling the Dow Jones Industrial Average into positive territory. Shares of American Express (AXP) and Dow Inc. Published:4/28/2020 2:59:07 PM
[Markets] Dow Jones Pares Gains As Stock Indexes Remain Mixed In Late Trading The Dow Jones posted slight gains on the stock market today as more states arranged to relax coronavirus-quarantine measures. Published:4/28/2020 2:27:22 PM
[Markets] Merck Sees Coronavirus Impact Lasting Two Quarters — And Shares Tumble Merck stock tumbled Tuesday after the Dow Jones component said the impact from the coronavirus pandemic should last two fiscal quarters. But first-quarter earnings and sales topped views. Published:4/28/2020 1:29:42 PM
[Markets] Dow Inc., American Express share gains contribute to Dow's nearly 75-point climb DOW UPDATE Shares of Dow Inc. and American Express are trading higher Tuesday afternoon, sending the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 74 points higher (0. Published:4/28/2020 12:27:53 PM
[Markets] Dow Jones 378-Point Intraday Gain Fades, But 3M A Bright Spot; Netflix, Tesla Weigh On Nasdaq Sellers were in the Nasdaq Tuesday, but the Dow Jones held a modest gain, helped by strength in 3M stock. Published:4/28/2020 11:29:27 AM
[Markets] Dow flat despite losses for shares of Merck, Intel DOW UPDATE Shares of Merck and Intel are retreating Tuesday morning, dragging the Dow Jones Industrial Average into negative territory. The Dow (DJIA) was most recently trading 5 points (0.0%) lower, as shares of Merck (MRK) and Intel (INTC) are contributing to the blue-chip gauge's intraday decline. Published:4/28/2020 11:02:32 AM
[Markets] Dow's 337-point rally highlighted by gains for Boeing, 3M stocks DOW UPDATE The Dow Jones Industrial Average is rallying Tuesday morning with shares of Boeing and 3M delivering the strongest returns for the price-weighted average. The Dow (DJIA) was most recently trading 337 points higher (1. Published:4/28/2020 8:56:43 AM
[Markets] Dow Jones In The Red As Two Key Blue Chips Weigh; Coronavirus Stocks Rally Key market indexes were narrowly mixed midday Friday, with the Dow Jones Industrial Average underwater after giving up an early 200-point gain. Published:4/24/2020 11:31:55 AM
[Markets] The Dow’s Gains Fade Away as More Grim Economic News Lands The major U.S. stock indexes slipped back to near the break-even line following the release of more downbeat economic data. In mid morning, the Dow Jones Industrial Average was up 27 points, or 0.2%, while the S&P 500 was up 0.3% and the Nasdaq Composite was 0.2% higher. Corporate earnings news, and the latest fallout from the coronavirus pandemic, continued to move individual stocks. Published:4/24/2020 9:31:35 AM
[Markets] Dow set to rise to within range of 50-day moving average, S&P 500 set to get back above it The Dow Jones Industrial Average is about 455 points away (1.9%) from its widely followed 50-day moving average, which it has closed below since the COVID-19-related selloff took shape in late February. Many chart watchers use the 50-day moving average (DMA) to gauge the short-term trend. The Dow has remained in range of the 50-DMA since April 17, the Dow closed at 24,242.49 versus and the 50-DMA came in at 24,558.42. The 50-DMA extends to about 23,970 on Friday, according to FactSet. Meanwhile, the S&P 500 is even closer to its 50-DMA, as it extends to about 2,807 on Friday, or 0.3% above Thursday's close. The S&P 500 had closed slightly above its 50-DMA on April 17, when it closed at 2,874.56 and the 50-DMA was at 2,863.09. Dow futures were up 184 points while S&P 500 futures were up 0.9%. Published:4/24/2020 8:31:54 AM
[Markets] Travelers' stock slips after Raymond James gets bearish in the wake of earnings miss Shares of Travelers Companies Inc. fell 0.4% in premarket trading Friday, after Raymond James analyst Gregory Peters turned bearish on the insurer, citing higher uncertainties in core lines related to the coronavirus pandemic. Peters cut his rating to underperform from neutral in the wake of first-quarter results out earlier in the week in which profit and revenue fell below expectations. Peters highlighted charges Travelers recorded for a negative impact to earned premiums, because of a reduction in audit premiums receivable; increased expenses from a bad debt provision for billing relief and modestly higher claims and claims adjustment expenses. "Management singled out several lines of business that could experience continued headwinds from COVID-19 including Workers' Comp. (WC), Management Liability/D&O, Surety, and Business Interruption," Peters wrote in a note to clients. The stock has lost 25.5% over the past three months through Thursday, while the SPDR S&P Insurance ETF has lost 31.1% and the Dow Jones Industrial Average has dropped 18.9%. Published:4/24/2020 8:01:36 AM
[Markets] Dow Jones Futures Turn Higher Despite Intel, Google News After Coronavirus Stock Market Rally Stalls On Gilead Drug Dow Jones futures rose despite Intel earnings and Google spending curbs. Gilead remdesivir news stalled Thursday's coronavirus stock market rally. Published:4/24/2020 6:31:51 AM
[Markets] Dow Jones Edges Higher As Pace Of Job Losses Slow; Oil Prices Recover The Dow Jones Industrial Average closed slightly higher Thursday. U.S. stocks rose across the board early, while awaiting a House vote on a federal stimulus bill. Published:4/23/2020 4:28:53 PM
[Markets] Dow jumps 200 points on gains for Exxon Mobil, UnitedHealth shares DOW UPDATE Behind strong returns for shares of Exxon Mobil and UnitedHealth, the Dow Jones Industrial Average is trading up Thursday afternoon. The Dow (DJIA) is trading 203 points, or 0.9%, higher, as shares of Exxon Mobil (XOM) and UnitedHealth (UNH) are contributing around one third of the blue-chip gauge's intraday rally. Published:4/23/2020 2:29:29 PM
[Markets] Dow Jones Lags Russell 2000, Gold Stocks And Oil Up Big; A New Entry For Zoom Video? The Dow Jones Industrial Average and other key indexes saw a brief stumble midday on news from Gilead's remdesivir treatment vs. Covid-19. Oil rocketed up. Published:4/23/2020 12:50:02 PM
[Markets] Boeing, Exxon Mobil share gains contribute to Dow's 112-point climb DOW UPDATE Shares of Boeing and Exxon Mobil are seeing strong returns Thursday afternoon, lifting the Dow Jones Industrial Average into positive territory. The Dow (DJIA) is trading 112 points, or 0.5%, higher, as shares of Boeing (BA) and Exxon Mobil (XOM) have contributed to the index's intraday rally. Published:4/23/2020 11:56:49 AM
[Markets] Dow Jones Futures: Coronavirus Stock Market Rally Powers Back; Apple Leads 5 Stocks Near Buy Points, But Watch Out For This Dow Jones futures: The coronavirus market rally had a strong session, pushing Apple, Tesla and Intel toward buy points. But this looms as a big risk. Published:4/22/2020 4:53:39 PM
[Markets] Dow soars 461 points on gains in shares of Intel, McDonald's DOW UPDATE Shares of Intel and McDonald's are posting strong returns Wednesday afternoon, sending the Dow Jones Industrial Average soaring. The Dow (DJIA) is trading 461 points higher (2.0%), as shares of Intel (INTC) and McDonald's (MCD) have contributed around a third of the index's intraday rally. Published:4/22/2020 1:23:45 PM
[Markets] Dow Jones Rallies As Coronavirus Bill, Oil Price Surge Fuel Stock Market Gains The Dow Jones Industrial Average rallied more than 450 points midday, after the Senate approved another coronavirus relief bill and oil rebounded a bit. Published:4/22/2020 1:00:06 PM
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