Options Wonderland

[3xBuBu]

Dow closes nearly 500 points higher as stocks make partial rebound from worst day in three months

https://www.marketwatch.com/story/dow-futures-surge-nearly-600-points-friday-as-stock-market-attempts-to-rebound-from-worst-day-since-mid-march-2020-06-12?mod=home-page

Rising U.S. coronavirus cases raise questions about speed of economic recovery

On Thursday all three indexes saw their sharpest one-day drops since March 16. The S&P 500 and the Dow finished at their lowest levels since May 26, while the Nasdaq ended at its lowest since May 29, according to Dow Jones Market Data.

For the week, the Dow lost 5.55%, the S&P 500 fell 4.8%, and the Nasdaq was off 2.33%.

Some analysts characterize the rebound Friday from Thursday’s slump as unlikely to be sustainable.

Investors are assessing the state of the stock-market’s 10-week rally, a day after equity indexes registered a bruising decline prompted by fears of a resurgence in the coronavirus pandemic in the U.S. and a bleak economic outlook from the head of the Federal Reserve.

Indeed, the International Monetary Fund’s Gita Gopinath said that the global economy is recovering more slowly than expected and faces “significant scarring,” Bloomberg News reported. In a video released Friday but recorded June 4, Gopinath said the IMF will release updated growth projections on June 24 that will likely be worse than April projections for a global contraction of 3%, if the disease lingers.

Fears of an emerging second wave of the epidemic in the U.S. persist, with half a dozen states, including Texas and Arizona, facing rising infections of COVID-19. Arizona, Utah and New Mexico all posted rises in new cases of 40% or higher, while Florida, Arkansas, South Carolina and North Carolina saw cases rise by more than 30% for the week ended June 7, on a rolling seven-day basis, according to Reuters.

Richmond Federal Reserve Bank President Tom Barkin on Friday, during a webcast panel discussion sponsored by the Virginia Tech Office of Economic Development, said that the pandemic could have effects that last beyond the next couple of months and cautioned that some of the millions of jobs that have been lost during the viral outbreak may never return, echoing similar remarks made by Fed Chairman Jerome Powell on Wednesday.
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[3xBuBu]

Dow plunging more than 1,800 points

https://www.cnbc.com/2020/06/10/stock-market-futures-open-to-close-news.html


Stocks suffered their biggest one-day pull-back in three months on Thursday as traders grew concerned about the number of coronavirus cases increasing in some states that are reopening up from lockdowns.

The Dow Jones Industrial Average plunged 1,861.82 points, or 6.9%, to close at 25,128.17. The S&P 500 slid 5.7% to 3,002.10 while the Nasdaq Composite dropped 5.3%. to end the day at 9,492.73. The major averages posted their worst day since March 16, when they all dropped more than 11%. The S&P 500 also logged in its first three-day losing streak since early March.

TVIX up 65% today!



Steven Mnuchin Says White House Considering Second Round of Stimulus Payments

https://ih.advfn.com/stock-market/stock-news/82644535/steven-mnuchin-says-white-house-considering-second

Mr. Mnuchin said he had discussed with President Trump the idea of additional stimulus payments, though no decision had been made yet on whether to advocate for them in the next bill.

"It's something that we're very seriously considering," he told reporters during an online question-and-answer session Thursday.

Congress provided an initial round of onetime payments of $1,200 for most adults and $500 for children under age 17 as part of the Cares Act enacted in March. The Internal Revenue Service said it has distributed payments to all eligible Americans for whom it has sufficient information, totaling $267 billion.

That money helped households fill holes in their budgets and propped up consumer spending as the economy struggled in April and May. The House of Representatives voted for a second round of payments last month as part of its $3.5 trillion economic-relief package. Those payments would be larger, offering $1,200 each for up to three children instead of $500. The Democratic proposal also covers groups left out of the first round of payments, such as college students, adult dependents and households that include undocumented immigrants.

Mr. Mnuchin also said it is extremely unlikely that parts of the U.S. economy will need to shut down again, despite a surge in coronavirus cases in some parts of the country. Mr. Mnuchin said he expected officials will make sufficient medical progress between now and the end of the year, including more widespread testing and effective viral treatments, that will support safe reopening of the economy.

"Could there be some rare, extreme scenario that occurs that, based upon medical advice, the president does" close down the economy, he said. "I think that's extremely unlikely."

The Trump administration and lawmakers are weighing how much additional support to provide in the months ahead, a decision that depends on how quickly the U.S. economy snaps back this summer. Recent data, including an encouraging May jobs report and steadily falling initial jobless claims, suggest an upturn has already started, though many economists expect a long, slow recovery.

Mr. Mnuchin emphasized that economic relief in the next measure should be targeted at industries and businesses that face a more difficult recovery. But his comments suggest the administration is sympathetic to the idea of more aid for struggling workers and families, despite concerns from some Republicans over additional spending that would push deficits even higher.

Congress has already provided about $3.3 trillion of spending and tax breaks, including the stimulus payments, emergency small-business loans and enhanced unemployment benefits.

Mr. Mnuchin said it was premature to speculate on the overall size of the next relief package.

[3xBuBu]

Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases, AP reported Wednesday.

https://www.cnbc.com/2020/06/10/stock-market-futures-open-to-close-news.html

On Wednesday, investors assessed the Federal Reserve’s updates on the economy and monetary policy. The policymakers voted unanimously to keep interest rates unchanged and indicated no rate increases through 2022.


“The Fed understands we are just in the beginning phases of the economic recovery and making rash changes to policy or forward guidance is premature at this time,” Charlie Ripley, senior investment strategist for Allianz Investment Management, said in an email.

The Fed also said it will at least maintain the current pace of bond purchases for the coming months. Additionally, it expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.

Investors are awaiting the new jobless claim data for the week ending June 6, which is set to come out at 8:30 a.m. ET on Thursday. Economists polled by Dow Jones expect filings for unemployment insurance claims to total 1.595 million last week, which is down from 1.775 million in the week before.


https://www.cnn.com/2020/06/10/politics/donald-trump-gallup-approval/index.html

Trump's job approval in the new Gallup data is at 39%, which is bad but not the big story. That big story is the fact that Trump's new numbers represent a double-digit tumble from a Gallup poll just two weeks ago in which his approval stood at 49%.

But Gallup's numbers are far from an outlier. The latest CNN poll, released earlier this week, put Trump's approval at 38% -- down from 45% in May. An NPR/PBS/Marist poll put Trump's job approval at 42%. (Those national numbers are reflected in swing state polling too. Recent polls in Ohio, Arizona, Texas and Michigan, among others, show significant problems for Trump in a head-to-head matchup with presumptive Democratic nominee Joe Biden.)


https://www.cnn.com/2020/06/10/politics/trump-campaign-cnn-poll/index.html

President Donald Trump's reelection campaign sent a cease-and-desist letter to CNN demanding a retraction and apology for a recent poll that showed him behind presumptive Democratic presidential nominee Joe Biden.

The demand contained numerous incorrect and misleading claims and was immediately rejected by the network.
"To my knowledge, this is the first time in its 40-year history that CNN had been threatened with legal action because an American politician or campaign did not like CNN's polling results," David Vigilante, CNN's executive vice president and general counsel, wrote in a letter to the Trump campaign.

https://www.cnn.com/2020/06/10/politics/georgia-voting-issues-black-voters/index.html

Black voters in Georgia say the state's primary meltdown was no accident

Tuesday's meltdown of the voting system in Georgia -- a potential presidential battleground in November -- has sparked widespread concerns about voter disenfranchisement and charges by activists that Republican state officials engaged in efforts to suppress the vote in predominantly African American communities.

The troubles in Georgia were most harshly felt in heavily African American counties in and around Atlanta, where some defective machines set off scrambles for provisional ballots, which were in short supply. There were also widespread cases of voters across the state reporting that their absentee ballots showed up late -- or not at all -- for a primary election twice-delayed by the coronavirus pandemic.

[3xBuBu]

OPEC and Russia Agree to Extend Oil Production Cuts
The original deal would have allowed increases starting next month. The new pact reflects producers’ concerns that the oil market could fall apart again.

https://www.nytimes.com/2020/06/06/business/energy-environment/opec-russia-oil-coronavirus.html

[EquityMonster83]

MCS similar play to MGM but calls are cheaper.

[EquityMonster83]

MCS 7/17 $17.50C now $1.30. Should continue to climb as more things open up.

[3xBuBu]

DJIA up 1000 mid-day, May sees biggest jobs increase ever of 2.5 million as economy starts to recover from coronavirus

https://www.cnbc.com/2020/06/05/jobs-report-may-2020.html

Employment stunningly rose by 2.5 million in May and the jobless rate declined to 13.3%, according to data Friday from the Labor Department that was far better than economists had been expecting and indicated that an economic turnaround could be close at hand.

Economists surveyed by Dow Jones had been expecting payrolls to drop by 8.33 million and the unemployment rate to rise to 19.5% from April’s 14.7%. If Wall Street expectations had been accurate, it would have been the worst figure since the Great Depression.

As it turned out, May’s numbers showed the U.S. may well be on the road to recovery after its fastest plunge in history.

President Donald Trump expressed pleasure at the report, directing two tweets to CNBC.

he May gain was by far the biggest one-month jobs surge in U.S. history since at least 1939. The only previous month to register more than a million jobs was September 1983, at 1.1 million.

“The glimmer of hope in that [April] report, as awful as it was, was that 78% of the people who lost their jobs believed that loss would be temporary,” Clemons said. “It turns out that optimism seems to have been warranted. As the economy responded and people went back to work, the jobs were still there.”




https://www.wsj.com/articles/americas-employment-crisis-has-turned-the-corner-11591374083?mod=djemheard_t
America’s Employment Crisis Has Turned the Corner
There are all kinds of reasons to doubt the accuracy of Friday’s jobs report. That doesn’t mean it should be ignored.

[EquityMonster83]

AVCTW warrants are $11.50 call options expiring in 2024.

AVCT just merged with Computex Technology Solutions. $85 million in revenue in 2019. Increasing revenue yoy. This should be trading at $400 million market cap. Instead trading at $35 million market cap.

AVCT
Sec report. https://www.sec.gov/Archives/edgar/data/1704760/000121390020009113/ea120594ex99-3_american.htm

Merger. https://www.nasdaq.com/press-release/avct-fuels-next-stage-of-growth-with-executive-hire-computex-realignment-2020-05-14 ;
Institutional investors started adding AVCT in May. One almost owns 5,000,000 shares. Another owns 2,000,000. https://fintel.io/sob/us/avct ;

[EquityMonster83]

MCS 7/17 $17.50C now 0.95. Lots of room to move up still.

[EquityMonster83]

MDLA 7/17 $30C for $0.90. Beat earnings and revenue and down. Should get back to $30 no problem by 7/17 and the calls are cheap.

[3xBuBu]

‘Bankrupt in Just Two Weeks’—Individual Investors Get Burned by Collapse of Complex Securities

https://www.wsj.com/articles/bankrupt-in-just-two-weeksindividual-investors-get-burned-by-collapse-of-complex-securities-11591020059?mod=trending_now_1

When William Mark decided to get back into investing after the 2008 financial crisis, he looked past stocks and bonds. Needing to play catch-up with his retirement portfolio, the piping engineer decided to bet on a complicated product he hoped would deliver double-digit annual returns.

He eventually put 800,000 into the investments. When the coronavirus pandemic came, he lost almost every penny!

[EquityMonster83]

MCS 7/17 $17.50C for $0.35. Currently $13.78. With things starting to open up again, this could run soon. 2019 range was $32-$42.

[3xBuBu]

China's Shift Away From Hard Growth Targets Hits Domestically and Globally

https://ih.advfn.com/stock-market/stock-news/82568359/chinas-shift-away-from-hard-growth-targets-hits-do

By ditching a formal economic growth target for this year, China's leaders are acknowledging continued global uncertainty amid the coronavirus pandemic.

But the move could also mark the beginning of the end for a key performance metric that has long undergirded policy decisions for Chinese government officials.

The world economy is likely to feel the impact as Beijing accelerates its shift away from a decadeslong fixation on achieving a specific, rapid pace of economic expansion to a focus on other goals, though at a slower growth rate. This transition will drag on China's demand for the world's services, finished goods and natural resources.

Premier Li Keqiang said in May that China would forgo this year's annual growth target. Over the course of the past two and a half decades of blistering growth -- including eight years in double digits and 6.1% last year -- the annual target for gross domestic output growth served as an explicit manifestation of the implicit bargain between Beijing and the public: acquiescence on many political and social issues in exchange for rising prosperity.

As growth has tapered off and as public demands for other improvements have grown, Chinese officials have in recent years been expected to fulfill an increasingly wide range of goals, including ensuring social stability, keeping debt in check, eliminating poverty and cleaning up the environment.

But Beijing still demanded regional officials achieve a growth benchmark, which encouraged them to prioritize certain kinds of policies: attracting investment and encouraging real-estate development and infrastructure.

Without a growth target, these officials will, for the first time in decades, be judged by criteria that don't include maximizing growth.

At least for the rest of this year, chief among those new benchmarks will be their ability to keep coronavirus infection counts at or near zero -- a demand that could require restrictions on work, travel and other activities that fuel economic growth.

As Mr. Li himself acknowledged Thursday at a press conference, referring to the tasks of spurring the economy and containing the pandemic: "I'm afraid there's a level of conflict of interest between these two goals."

When six new infections were confirmed recently at a housing complex in the city of Wuhan -- suggesting the coronavirus's possible re-emergence in the pandemic's initial epicenter -- local authorities fired the official in charge of the complex and ordered testing of the city's 11 million people.

Similarly, when several dozen cases were confirmed in China's northeast earlier in May, authorities promptly locked down the area, ordered residents to stay home and replaced officials. One of China's vice premiers hurried over from Beijing to chide local cadres for acting too slowly.

That new incentive structure -- out with the growth target, in with pandemic prevention -- portends a broader shift in the senior leadership's thinking on the centrality of economic growth.

Recently, officials in some underperforming provinces haven't been removed or appeared overly concerned after missing GDP targets for several consecutive years, notes Houze Song, a research fellow at the Chicago-based Paulson Institute's MacroPolo think tank.

"The marginalization of the GDP target seems to be a trend," Mr. Song said. Dropping it for 2020 "makes it more likely that in future years they will abandon the GDP target," he said -- for good.

Beginning with the introduction of a new unemployment survey in 2018, jobs have been a particular focus for China's stability-minded leaders, arguably outweighing the importance of the GDP figure, says Andrew Fennell, lead analyst for Hong Kong and China at Fitch Ratings.

Scrapping the GDP target this year, he said, "is a recognition of realities, but it's also a culmination of changes in the incentive structure."

China's top leader, Xi Jinping, told delegates to China's rubber-stamp legislature earlier in May that, if not for the pandemic, the annual growth target would have been around 6%. But with the pandemic, he said, according to state media reports, "some things are simply beyond our control."

"The global economy is doomed to fall into recession," Mr. Xi was quoted saying. "The focus should not be placed on the GDP growth rate."

In line with the apparent comfort with slower growth, Beijing announced a much milder stimulus effort than the large-scale fiscal and monetary packages that characterized its response to downturns in 2008 and 2015.

Economists say, given the job-creation targets and the fiscal budget deficit, Beijing is implying growth of less than 2% this year.

Of course, growth still matters. The two economic priorities Beijing is touting this year instead of a specific GDP goal -- ensuring employment and eliminating absolute poverty -- depend, to a large degree, on rising output.

"You can't achieve all those things without some level of growth," says Mr. Fennell of Fitch Ratings.

But Mr. Li, the premier, told reporters Thursday that China was less interested in a particular growth rate than in what he called "higher-quality development."

"We believe development still holds the key and is the foundation for resolving all of the problems in China today," he said.

[3xBuBu]

As tensions between the U.S. and China accelerate, some investor fears were assuaged after President Donald Trump made no mention of tariffs or sanctions during his press conference on Friday

https://www.cnbc.com/2020/05/29/stock-market-today-live.html

Rising tensions between Washington and Beijing could become an increasing headwind for stocks, particularly the technology sector, which is most exposed on a revenue basis and through its supply chain.

The U.S. joined with other nations to condemn China’s new security rules for Hong Kong, which Beijing sees as an attempt to quell protesters.

The stock market’s internal rotation into beaten down names, like airlines and small caps, is expected to continue to be a theme in the week ahead as the economy continues to reopen.

The stock market has been mostly discounting unprecedented weakness in economic data, but the May employment report will still be of major interest Friday. Economists expect it to show another shocking loss of jobs, this time roughly 8.5 million after the 20.5 million lost in April. The unemployment rate is expected to jump to a staggering 19.8% from 14.7% in April, according to Refinitiv.



Trump issued the order Thursday after Twitter put a fact-check label one of his tweets criticizing mail-in election ballots. The president accused Twitter of political activism.

Twitter, Facebook and Alphabet all protested the move, which hit Twitter’s stock hardest.

Emanuel said technology’ is at risk in China since companies like Apple have large revenue exposure in addition to supply chain issues.

[3xBuBu]

Better Buy: Zoom Video Communications vs. Microsoft

ZM ER next week after the market closes on Tuesday, June 2.
https://www.fool.com/investing/2020/05/29/better-buy-zoom-video-communication-vs-microsoft.aspx?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

Since last year's IPO, Zoom Video Communications (NASDAQ:ZM), the new kid on the tech block, has seen its share price rise to levels that rival the stock price of veteran tech titan Microsoft (NASDAQ:MSFT). The popularity of Zoom's videoconferencing platform powers its success.

Microsoft also offers a rapidly growing videoconferencing product, although it's ancillary to the company's core business. This speaks to the demand for videoconferencing in today's connected world, particularly after the coronavirus pandemic required working and schooling from home.

Zoom's success
Zoom's growth has been stellar on all fronts. It has lived up to its name, as revenue zoomed from $60.8 million in 2017 to $622.7 million for this most recent fiscal year, which ended Jan. 31.

Microsoft's strengths
Microsoft, like Zoom, is experiencing tremendous growth across its lines of business. Its Teams videoconferencing unit saw daily active users grow from 44 million in March to over 75 million a month later.

But shelter-at-home requirements didn't just lead to a boom for videoconferencing. Businesses and other institutions require the IT infrastructure to support remote workers, which helped Microsoft achieve 15% year-over-year revenue growth to $35 billion in the company's third quarter (which ended March 31).

Microsoft's cloud computing solutions are what drive the company's revenue today. Organizations in all industries are shifting technology infrastructure to the cloud using vendors such as Microsoft. The cloud computing market tripled in the past three years and is estimated to grow to $163 billion by 2021.

[3xBuBu]

rump announced he would begin taking steps to revoke Hong Kong’s favored trade status with the United States

https://www.cnbc.com/2020/05/29/trump-taking-action-to-eliminate-special-treatment-for-hong-kong.html

The shift in Hong Kong’s status immediately jeopardizes several aspects of the former British colony’s relationship with the United States, which has so far meant that Hong Kong has been spared punishing tariffs that are a hallmark of Trump’s trade war with Beijing.

But Trump did not provide details about precisely which steps would be taken or in what order, and a White House spokesman declined to comment when CNBC asked for additional clarification on the expected moves.

Trump also said he was ready to take action to mandate that Chinese and other foreign companies listed on U.S. financial exchanges abide by American accounting and audit standards.

Trump has not said whether he will sign the bill, which is currently making its way through Congress.

But the president did say Friday that he would instruct his “presidential working group on financial markets to study the different practices of Chinese companies listed on the U.S. financial markets, with a goal of protecting American investors.”

[3xBuBu]

Dow drops 100 points on U.S.-China tensions
https://www.cnbc.com/2020/05/27/us-stock-futures-flat-after-reopen-rally-puts-dow-back-above-25000.html

Trump’s announcement came after China’s National People’s Congress approved a national security bill for Hong Kong. The bill will bypass Hong Kong’s legislature, raising concerns over the longevity of Hong Kong’s “one party, two systems” principle, which allows additional freedoms mainland China does not have.

“If the HK response involves broad sanctions against individuals or entities, that would be a larger issue and not something the [market] could easily dismiss,” said Adam Crisafulli of Vital Knowledge, in a note. Stock valuations are “too high in general and leaves no room for error while investors aren’t paying enough attention to rising US-China tensions.”


China approves controversial national security bill for Hong Kong

Total initial unemployment claim over last 10 weeks

[EquityMonster83]

ZM 5/29 $150P

[3xBuBu]

Amazon Will Take Robot Cars to a Whole New Level

https://finance.yahoo.com/news/amazon-robot-cars-whole-level-154304006.html

Amazon.com Inc.’s interest in acquiring a self-driving car pioneer is the prime example (pun intended) of how expectations for driverless vehicles have been recalibrated.

The e-commerce giant is in advanced talks to buy Zoox Inc. for less than the $3.2 billion at which it was valued in 2018, the Wall Street Journal reported on Tuesday. Given the California-based startup’s approach to autonomous cars, its fate is particularly instructive.

In a very crowded field, Zoox was practically alone in aiming to build a whole new kind of electric-powered vehicle, and to operate the fleet itself. Peers such as Alphabet Inc.’s Waymo, General Motors Co.’s Cruise unit, Ford Motor Co. and Volkswagen AG’s joint venture Argo AI, and Aurora Innovations Inc. have focused solely on developing the self-driving technology that could subsequently be fitted into vehicles.

Zoox wanted to be Tesla Inc., Waymo and Uber Technologies Inc. all rolled into one.

Back in 2015, that seemed like an attractive proposition. If the triple threat to the automotive industry was autonomous technology, electric drivetrains and ride-hailing, why not embrace all three? After all, there were expectations that by 2020 robotaxis would ferry you around the world’s metropolises. Capital flowed into self-driving car startups, typified by the $1 billion GM spent acquiring Cruise in 2016.

Those dreams, needless to say, have failed to materialize. Companies that had aimed to jump straight to the fourth of five levels of autonomy have quietly downshifted. (The first level of self-driving encompasses driver-assistance functions such as cruise control, and the fifth is full automation.) Bloomberg New Energy Finance doesn’t expect vehicles with Level Four automation to start gaining traction until 2034. Even then, they will likely represent just 831,000 of the 95 million-unit global car market that year.

What’s more, the expense of developing, building and operating a fleet of self-driving cars would be considerable. Even deep-pocketed Alphabet and GM have sought outside investment for their efforts. Established carmakers are meanwhile focusing their capital on electric cars, a more imminent threat. And owning and operating a fleet is expensive too. Zoox had a tough sell to investors: In 15 years’ time, it might have been an attractive business.

Which brings us to Amazon. Even if robotaxis aren’t coming any time soon, there are alternative applications for autonomous technology that fall squarely in the Seattle-based firm’s wheelhouse, namely, logistics. Given Amazon’s shipping costs are set to hit $90 billion a year, tech from Zoox could help save $20 billion in shipping costs, according to Morgan Stanley analysts. Its solutions could be used across warehousing and distribution. Buying Zoox could take Amazon's other moves in this field — an existing investment in Aurora and experiments with self-driving truck specialist Embark and electric vanmaker Rivian — to a whole new level.

Amazon has become the fantasy acquirer for any number of companies seeking a soft landing: theater chains, brick-and-mortar retailers, food deliverers, mobile carriers, real estate brokers, dental suppliers, film studios and plenty more besides.

Sometimes, just sometimes, those deals make sense. Zoox is one of them.

[3xBuBu]

Macy's, Gap, and Other Retailers' Stocks Are Up Today

https://www.fool.com/investing/2020/05/27/why-macys-gap-and-other-retailers-stocks-are-up-to.aspx

Shares of several brick-and-mortar retailers were trading higher on Wednesday morning as the broader market rallied for a second day on rising optimism about the post-pandemic economy.

Here's where things stood for these four companies' stocks as of 10:45 a.m. EDT, relative to their closing prices on Tuesday.

Designer Brands (NYSE:DBI) was up 5.2%.
Gap (NYSE:GPS) was up 5.5%.
Kohl's (NYSE:KSS) was up 5.5%.
Macy's (NYSE:M) was up 8.4%.

The broader U.S. markets were trading higher on Wednesday morning amid signs that the White House and Congress may be moving toward an agreement on additional measures to bolster the U.S. economy amid historically high unemployment. Stocks of companies that have been hit the hardest by the effects of the coronavirus pandemic, including airlines, travel stocks, and retailers, were among the best performers.

There was no company-specific news driving any of these four retailers' stocks on Wednesday. But Macy's drew considerable interest from consumer-discretionary investors on Tuesday, when it announced a refinancing plan that should give it sufficient liquidity to weather the downturn while continuing its restructuring efforts.

Macy's said on Tuesday that it is offering $1.1 billion in senior notes secured by some of its real estate assets. It will use the proceeds of that offering, plus some additional cash on hand, to pay off its $1.5 billion revolving credit line. Once that debt is retired, it said, it will enter into an agreement for a new $3 billion credit line secured by the majority of its inventory.

That plan is arguably good news for the entire retail sector. While the department store giant had to pledge assets to secure funds, the deal shows that the credit markets remain open to retailers -- even retailers like Macy's, which had been struggling before the onset of the pandemic.

Meanwhile, Kohl's reported last week that it lost $541 million in the fiscal quarter that ended on May 2, a worse result than Wall Street had expected, but said that it is continuing to reopen stores and that its online sales had held up better than expected while its brick-and-mortar locations were closed.

Now what
While Kohl's reported earnings last week, investors can look forward to updates from the other three companies in the not-too-distant future. Gap will report its fiscal first-quarter results after the market closes on June 4, Macy's will report next on July 1, and while Designer Brands hasn't yet announced a date for its fiscal first-quarter report, it's expected to arrive within the next couple of weeks.

Designer Brands (NYSE:DBI)

[3xBuBu]

NYSE To Delist Bankrupt Hertz

https://finance.yahoo.com/news/nyse-delist-bankrupt-hertz-report-125643945.html

The New York Stock Exchange initiated proceedings to delist Hertz Global Holdings Inc (NYSE: HTZ) on Tuesday following the car rental chain's bankruptcy filing, according to Reuters.

Coronavirus Fuels Hertz Bankruptcy Filing

Economic damage from the coronavirus forced Hertz to file for Chapter 11 bankruptcy Friday after nearly a month of speculation. Between Feb. 20 and May 26, as the pandemic stalled airport business, Hertz’s stock fell from $20.29 to $2.84.

“The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company's revenue and future bookings,” the company said in a Friday press release.

“Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action.”

Hertz had already furloughed or laid off around 20,000 employees, replaced its CEO and, according to Reuters, discussed selling more than 30,000 of its 500,000 vehicles per month through the end of 2020 to try to raise about $5 billion. The team failed to find financial relief from creditors and the U.S. government.

Hertz Grabs Carl Icahn's Attention

This isn’t the first time the NYSE has threatened to remove Hertz from the public market. The company received a delisting notice in 2015 for failing to file its 2014 10-K form on time.

Even before the pandemic hit, Hertz had ceded enough market share to ride-sharing services to capture the attention of activist investor Carl Icahn, who claimed nearly 39% ownership when the pandemic started.

The company adopted a turnaround plan. Its efforts accrued about $19 billion in debt, but helped sustain 10 consecutive quarters of year-over-year revenue growth.

What’s Next For Hertz

A bankruptcy filing isn’t necessarily the end of Hertz’s efforts to stay afloat.

“Depending upon the length of the COVID-19 induced crisis and its impact on revenue, the company may seek access to additional cash, including through new borrowings, as the reorganization progresses,” the company's press release said.

The stock, which has been halted since early Tuesday morning, ended Friday's session down 7.49% at $2.84.

Why Avis Budget Group Popped 11% Tuesday

https://www.fool.com/investing/2020/05/26/why-avis-budget-group-popped-11-tuesday.aspx?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

Shares of Avis Budget Group (NASDAQ:CAR), one of the nation's largest vehicle rental companies, are jumping 11% higher Tuesday morning after a bear pulled its rating, investors digested a Hertz (NYSE:HTZ) bankruptcy, and the market cheered a potential vaccine for COVID-19.

So what
Broader markets are rising after data showed U.S. consumer confidence moved higher in May, suggesting the worst of the COVID-19 impacts could be behind us and a gradual economic recovery could be ahead. That's obviously great news for Avis Budget Group, whose business relies largely on consumers traveling.

There were also a number of positive developments regarding the battle against COVID-19. Merck announced a list of efforts it was taking in the fight, including agreements to work on a vaccine and antiviral treatment. Novavax also began human testing of its coronavirus vaccine candidate and could have preliminary data as soon as July.

[3xBuBu]

Travel, Hospitality Stocks Rise on Hopes for Reopening

https://ih.advfn.com/stock-market/NYSE/delta-air-lines-DAL/stock-news/82535452/travel-hospitality-stocks-rise-on-hopes-for-reope

Shares of travel-reliant businesses rose Tuesday amid optimism in the potential development of a coronavirus vaccine and economies reopening after a monthslong pause in operations due to the Covid-19 pandemic.

The Dow Jones U.S. Travel and Leisure Index rose about 3.6%.

Though spending on hotels, restaurants, airlines and other industries hurt by social distancing remain low, it appears to be picking up. Hotel occupancy rates in the U.S. have risen for five straight weeks, according to data tracker STR, offering a glimmer of hope that the start of the summer will foster a recovery. Shares of Marriott International Inc. rose about 4.9%, Hilton Worldwide Holdings Inc. about 5.8% and Hyatt Hotels Corp. about 7%.

Six Flags Entertainment Corp., whose shares were up about 9.2%, on Tuesday said it is reopening its Frontier City park in Oklahoma City starting June 5. Shares of other theme parks followed, with SeaWorld Entertainment Inc. up around 7.8% and Cedar Fair LP about 7.2%.

Airlines have taken off, too. The German government and Deutsche Lufthansa AG on Monday said they agreed on a EUR9 billion euro ($9.81 billion) bailout deal, one of the largest aid packages by a single country hatched so far in the air-travel sector. American depositary shares of Lufthansa rose 7.6%. Shares of United Airlines Holdings Inc., American Airlines Group Inc. and Delta Air Lines Inc. were up 13.5%, 11.9% and 9.9%, respectively.

UBS analysts raised the price target of Southwest Airlines Co. to $41 from $37 on hopes for domestic travel recovery. Shares rose 10%.

"We view LUV as the best way to play a recovery in the U.S. airlines given the absence of a bloated balance sheet coupled with network that lends itself to where the recovery will happen first (domestic and then leisure) and more flexibility in its fleet than almost any player given the 737MAX contractual claims with Boeing," the analysts said in a note to clients.

Shares of Carnival Corp., the world's largest cruise operator, rose 12%. It plans to resume eight cruises beginning Aug. 1. Norwegian Cruise Line Holdings Ltd., which suspended voyages through July 31 and is internally planning for third-quarter sailings, was up 13.8%, while Royal Caribbean Cruises Ltd. was up 12.8%.

[EquityMonster83]

ZM 7/17 $100P for $1.49. IMO Good risk reward play for Zoom to come back down to Earth from the moon.

[EquityMonster83]

GSX 10/16 $15P. If GSX goes the way of Luckin these will pay off.

[3xBuBu]

Asian ADRs Move Sharply Lower in Friday Trading
American depositary receipts of Asian stocks were trading lower Friday, with the BNY Mellon Asia 50 ADR Index down by 2.18%.

In North Asia, the gainers were led by consumer lending firm Hexindai Inc. (HX) , which was up by 6.4%, followed by automotive e-commerce platform TuanChe Limited (TC) at 4.4%, and mobile app developer Cheetah Mobile Inc. (CMCM), which rose 3.8%.

The decliners in North Asia were led by coffee shop chain Luckin Coffee Inc. (LK) , which fell another 24%. Brand e-commerce solutions company Baozun Inc. (BZUN) dropped 9.1%.

In South Asia, the gainers were led by pharmaceutical company Dr. Reddy's Laboratories Limited (RDY) , which rose 1.2%. IT company Infosys Limited (INFY) and telecommunications operator PLDT Inc. (PHI) , were up 1.2% and 0.8%, respectively.

ICICI Bank Limited (IBN) and automaker Tata Motors Limited (TTM) led the decliners in South Asia, falling 3.4% and 3.6% respectively. They were followed by business process services provider WNS Holdings (WNS) and mining company Vedanta Limited (VEDL) , which lost 3.4% and 2.5%.

[3xBuBu]

U.S. Airlines Show Signs of Life After April Travel Collapse

https://finance.yahoo.com/news/u-airlines-display-signs-life-160828994.html

(Bloomberg) -- U.S. airlines reported signs that travel demand is perking up, suggesting the beginnings of a rebound from an unprecedented collapse because of the coronavirus pandemic.

Bookings are again outpacing cancellations and June reservations are showing “modest improvement,” Southwest Airlines Co. said Tuesday. United Airlines Holdings Inc. is seeing reduced cancellation rates and “moderate” strengthening on U.S. and some international routes. Delta Air Lines Inc. has noticed a slight bounce in leisure bookings, and American Airlines Group Inc. said it’s filling a greater portion of seats on its planes.

The nascent signs of recovery bolstered the outlook for at least a tentative comeback after consumers all but stopped flying in April because of the virus outbreak and government travel restrictions. Carriers cautioned that the landscape remains uncertain for an industry that has already received $25 billion in government payroll aid during the worst crisis in airline history.

A Standard & Poor’s index of major U.S. airlines was little changed at the close in New York, a day after a 14% surge amid a broad rally spurred by positive news about an experimental coronavirus vaccine. Southwest gained 2.2% to $27.69 in the Tuesday session. The others fell, paced by American’s 2.3% drop to $9.64.

Filling Seats

Southwest said in a regulatory filing that operating revenue this month would likely decline no more than 90% from a year ago, slightly better than the previous forecast of a drop of as much as 95%.

The percentage of seats filled per plane in May should average between 25% and 30%, compared with about 8% in April. The Dallas-based carrier earlier projected the figure would be no more than 10% in May. The forecast for capacity remains down as much as 70% from last year’s level.

Southwest also issued its first outlook for June, forecasting that operating revenue would drop as much as 85% and that capacity would decline as much as 55%. With fewer planes flying, its number of seats filled was projected to be 35% to 45%.

The airline also is starting to get a grasp on spending, projecting it would burn $25 million a day on average this quarter, down from an earlier estimate approaching $35 million. With cash use in the low $20 million range, as it this month, Southwest said it would take about 20 months before its $13 billion in cash and short-term investments would be depleted.

[3xBuBu]

Congressional Budget Office projects GDP dropping 38% in the second quarter as 26 million Americans remain unemployed.

https://www.cnbc.com/2020/05/19/cbo-projects-38percent-drop-in-gdp-2point1-trillion-increase-in-the-deficit.html

The forecasts are roughly in line with Wall Street economists and slightly less dour than the most recent tracking number from the Atlanta Federal Reserve, which sees GDP falling about 42% in the April-to-June period.

The office also cautioned that, “The decline in economic activity has been so rapid and so recent that the depth of the downturn is still uncertain, and the data on spending are preliminary and incomplete.”

Stocks fall 390 (or 1.6%) after Fed and Treasury chiefs testify
https://www.cnn.com/business/live-news/stock-market-news-051820-duplicate-2/index.html

[3xBuBu]

DJIA surge 1000 after Moderna reports positive data on early-stage coronavirus vaccine trial, shares surge

https://www.cnbc.com/2020/05/18/moderna-reports-positive-data-on-early-stage-coronavirus-vaccine-trial.html

Powell says ‘no limit’

https://www.cnbc.com/2020/05/18/stock-market-today-live.html

7:27 am: Powell says ‘there’s a lot more’ the Fed can do to help
Even after the Federal Reserve has unloaded an unprecedented level of help for markets and the economy, Chairman Jerome Powell said there are still more weapons available.




Moderna’s closely watched early-stage human trial for a coronavirus vaccine produced Covid-19 antibodies in all 45 participants, the biotech company announced Monday, sending the company’s shares surging more than 26%.

The vaccine also produced neutralizing antibodies against Covid-19 in at least eight participants, the company said. Experts have said neutralizing antibodies appear to be important in acquiring protection.

Four participants were assigned to receive a 25 microgram dose, while the other four received 100 micrograms. Levels of neutralizing antibodies were at or above levels seen in blood samples, the company said. Data on neutralizing antibodies for the other participants were not yet available, Moderna said.

[3xBuBu]

SoftBank in Talks to Sell T-Mobile Shares to Deutsche Telekom
https://www.wsj.com/articles/softbank-in-talks-to-sell-t-mobile-shares-to-deutsche-telekom-11589775293?mod=djemalertNEWS


SoftBank 9984 +1.57% Group Corp. is in talks to sell a significant portion of its T-Mobile TMUS 2.54% US Inc. stake to controlling shareholder Deutsche Telekom AG DTEGY -0.13% as the Japanese technology conglomerate scrambles to raise funds.

The transaction, if completed, would boost Deutsche Telekom’s nearly-44% stake in T-Mobile TMUS 2.54% above 50%, according to people familiar with the matter. The German company already has voting control of the U.S. mobile-phone giant under a prior agreement with SoftBank, which recently held almost 25% of T-Mobile’s common stock, according to FactSet.

T-Mobile took its current form on April 1 after it absorbed Sprint Corp., a SoftBank-controlled business that struggled for years to defend its customer base against competition from rivals. By combining the third- and fourth-biggest players, the merger consolidated the U.S. wireless sector into a market dominated by three national networks.


https://finance.yahoo.com/news/tsmc-stops-huawei-orders-u-054105548.html
TSMC stops new Huawei orders after U.S. restrictions - Nikkei

Taiwan Semiconductor Manufacturing Co Ltd has stopped new orders from Huawei Technologies in response to Washington's move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported on Monday, citing multiple sources.

The orders which TSMC took before the new ban and those already in production are not impacted and could continue to proceed if those chips could be shipped before mid-September, according to the report.

[3xBuBu]

Delta Air to retire all of its 777 jets, in latest blow to Boeing

https://www.marketwatch.com/story/delta-air-to-retire-all-of-its-777-jets-in-latest-blow-to-boeing-2020-05-14?mod=mw_more_headlines

Delta Air Lines Inc. plans to retire its 777 jumbo jets made by Boeing Co. and replace them with Airbus SE aircraft in another hit for the beleaguered U.S. plane maker.

Delta’s 18 Boeing 777s will end service by the end of the year as a result of the coronavirus pandemic, the airline said Thursday.

“The retirement will accelerate the airline’s strategy to simplify and modernize its fleet, while continuing to operate newer, more cost-efficient aircraft,” Delta DAL, -0.98% said.

Delta will continue flying its fleet of long-haul, next-generation Airbus AIR, -1.05% A350-900s, which burn 21% less fuel per seat than the 777s they will replace, the airline said.

Boeing BA, -2.05% did not immediately respond to a request for comment.

The plane maker, still reeling from the worldwide grounding of its 737 Max aircraft, has struggled amid the pandemic as travel ground to a halt and its airline customers delay or forgo plane orders.

Boeing launched its 777 program in 1990, with the first deliveries being made in the mid-1990s.

[3xBuBu]

Canada Goose's stock falls after BofA Securities analyst turns bearish, slashed price target by 38%

https://www.marketwatch.com/story/canada-gooses-stock-falls-after-bofa-securities-analyst-turns-bearish-slashed-price-target-by-38-2020-05-15?siteid=yhoof2&yptr=yahoo

The U.S.-listed shares of Canada Goose Holdings Inc. GOOS, -7.15% dropped 7.1% toward a six-week low in midday trading Friday, after BofA Securities analyst Robert Ohmes turned bearish on the Canada-based outerwear company, citing risks to next fiscal year's earnings as the COVID-19 pandemic retrains international tourism. Ohmes cut his rating to underperform from neutral, and stock stock price target on the U.S. shares by 38%, to $15 from $24. "We estimate that ~50% of [Canada Goose's] N. America & Europe demand is driven by international tourism (mostly from China) which we expect to remain restrained through yearend given strict social distancing guidelines and fear of a potential "2nd wave" with current China tourists to the U.S./Canada tracking down ~90%/60%, respectively," Ohmes wrote in a note to clients. "Signs of a maturing N. America market may be further pressured by a tough wholesale environment given GOOS's mall-based footprint (Neiman Marcus, Nordstrom, Bloomingdales, etc.)." He added that he expects "traffic headwinds," given the company's small-store format, as social distancing guidelines are likely to limit occupancy. The stock has plunged 47% year to date, while the S&P 500 SPX, +0.39% has lost 12%.

[3xBuBu]

On Friday, Penney filed for chapter 11 bankruptcy protection in Texas, becoming the biggest in a parade of retailers to seek a court restructuring during the coronavirus pandemic. Neiman Marcus Group Inc., J.Crew Group Inc. and Stage Stores Inc. have all filed for bankruptcy this month.

The 118-year-old Penney is the latest American retailer to seek bankruptcy protection as the rise of fast-fashion, off-price chains like T.J. Maxx and e-commerce giants such as Amazon.com Inc. win over younger shoppers. Other chains like Gap Inc. and Nordstrom Inc. have recently raised billions in debt to ensure they have the cash to weather the crisis and reopen stores.

[3xBuBu]

Why Avis, Hertz, and AutoNation Stock Got Slammed Another 10%

https://www.fool.com/investing/2020/05/13/why-avis-hertz-and-autonation-stock-got-slammed-an.aspx?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

Shares of Avis Budget Group (NASDAQ:CAR) and Hertz Global Holdings (NYSE:HTZ), well-known vehicle rental companies, and the nation's largest auto retailer AutoNation (NYSE:AN) declined 10% early Wednesday after concerns that plunging used car prices could be exacerbated by a possible Hertz bankruptcy -- a development that would send ripple effects across the auto industry.



As you can see in the graph above, Avis and Hertz have been decimated by the COVID-19 coronavirus pandemic and the economic and travel restrictions it brought. In fact, Avis expects April and May to post a crippling 80% decline in revenues, which is one reason the company tapped the junk bond market for $500 million to help weather the COVID-19-driven economic downturn. Making matters worse for Hertz was a report that used car wholesale prices plunged 11.4% in April, and as the value of Hertz's fleet declines, the company is forced to make up the difference, with lenders that financed its fleet, in cash -- a scenario that has investors questioning if Hertz can make such a payment. In Hertz's first-quarter filing, management made it clear how dire the situation is: "As such, management has concluded that there is substantial doubt regarding the company's ability to continue as a going concern within one year from the issuance date of this quarterly report on form 10-Q,".

Hertz was given a lifeline by lenders and has until May 22, 2020 to develop a financing strategy appropriate for the current economic scenario, giving investors a moment to contemplate what a bankruptcy would do to the broader industry. It's a complicated situation for all involved. Carl Icahn holds a 39% equity stake in the company and could infuse the business with cash to stay afloat, but if the company doesn't recover and a bankruptcy takes place, equity holders' claims are behind creditors', making it a risky move for Icahn. A potential Hertz bankruptcy could also flood an already suffering used car market with several hundred thousand vehicles, which would send prices even lower and add supply that might take years to return to normal levels. That's a development that would hurt new car sales, which would negatively impact manufacturers as well as new-vehicle dealerships such as AutoNation, if consumers have a compelling and far cheaper used car substitute. It would be painful to used car dealerships as their transaction prices and inventory/asset values fall. Lower used car prices will send a ripple effect many didn't see coming.





..CarMax, Inc. (KMX)

AutoZone, Inc. (AZO)

Advance Auto Parts, Inc. (AAP)

Asbury Automotive Group, Inc. (ABG)

O'Reilly Automotive, Inc. (ORLY)

[3xBuBu]

Airline Stock Roundup: JBLU & SAVE Post Q1 Loss, CPA, SKYW, ALGT in Focus

https://finance.yahoo.com/news/airline-stock-roundup-jblu-save-162604381.html

In the past week, low-cost carriers, namely JetBlue Airways JBLU and Sprit Airlines SAVE reported losses in first-quarter 2020 results. With air-travel demand on the wane due to the coronavirus pandemic, the carriers have been persistently incurring losses for the current earnings season. Notably, the likes of United Airlines UAL and American Airlines AAL too suffered losses for the March quarter, which they confirmed while announcing respective first-quarter financial numbers in the previous week.

However, offering some relief, the likes of Allegiant Travel Company ALGT, Copa Holdings CPA and SkyWest SKYW managed to record earnings for the first quarter.

Wrap-Up on the Past Week’s Key Headlines

1. JetBlue’s first-quarter 2020 loss (excluding 55 cents from non-recurring items) of 42 cents per share, compared unfavorably with the Zacks Consensus Estimate of a loss of 41 cents. Results of this Zacks Rank #3 (Hold) carrier, were hurt by the coronavirus-induced weakness in air-travel demand. Moreover, operating revenues of $1,588 million decreased 15.1% year over year and also lagged the Zacks Consensus Estimate of $1,690 million. The year-over-year plunge was due to the 16.1% drop in passenger revenues.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. Spirit Airlines incurred a loss of 86 cents per share (excluding 45 cents from non-recurring items) in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 60 cents. In the year-ago quarter, the company reported earnings of 84 cents. First-quarter results reflect the impact of the coronavirus crisis on domestic and international air travel in March. Operating revenues of $771.1 million missed the Zacks Consensus Estimate of $848.8 million and also declined 9.9% year over year. Passenger revenues fell 10.1% year over year.

3. Copa Holdings’ first-quarter 2020 earnings of $1.75 per share beat the Zacks Consensus Estimate by 19 cents. However, the bottom line was down17.1% year over year, primarily due to lower revenues. Quarterly revenues also declined 11.4% to $595.5 million but beat the Zacks Consensus Estimate of $592.8 million. The year-over-year deterioration was caused by an 11.4% weakness in passenger revenues. Notably, passenger revenues contributed to 96.5% of the top line.

4. SkyWest’s first-quarter 2020 earnings of 59 cents per share missed the Zacks Consensus Estimate of 88 cents. Also, the bottom line slumped 55.64% on a year-over-year basis, primarily due to tepid air-travel demand in March, stemming from the COVID-19 outbreak. Quarterly revenues came in at $729.9 million, beating the Zacks Consensus Estimate of $690 million. The company exited the first quarter with cash and marketable securities of $578 million, up 11.2% sequentially

5. Allegiant’s first-quarter 2020 earnings (excluding $4.13 from non-recurring items) of $2.05 per share surpassed the Zacks Consensus Estimate of 58 cents. However, the bottom line tanked 48.5% year over year due to softness in revenues, emanating from sinking demand for air travel. Quarterly revenues of $409.2 million beat the Zacks Consensus Estimate of $408.3 million. However, the top line decreased 9.39% year over year due to a 9.8% descent in passenger revenues.

Air traffic (measured in revenue passenger miles or RPMs) for scheduled service fell 8.3% in the quarter under review. Capacity (measured in available seat miles or ASMs) increased 4.3% year over year. Load factor (percentage of seats filled by passengers) was 73.8%, down 10.1 percentage points year over year as capacity expanded while traffic declined.

Price Performance

The following table shows the price movement of major airline players over the past week and during the past six months.

[3xBuBu]

Powell says more policy help may be needed to pull the US out of economic downturn

https://www.cnbc.com/2020/05/13/feds-powell-says-more-policy-help-may-be-needed-to-pull-the-us-out-of-economic-downturn.html

his comments drive the market and finanical sector down

[3xBuBu]

Uber is seeking to acquire its food-delivery rival, GRUB, a potential all-stock deal with Grubhub reportedly seeking the equivalent of about $68 a share—a premium of about 45% to the stock’s value.

.

[3xBuBu]

SAP SE, Europe’s largest software maker, said several of its cloud-computing products do not meet the company’s cybersecurity standards.

https://finance.yahoo.com/news/were-hedge-funds-sap-se-195546116.html

The vulnerabilities affect 9% of SAP’s 440,000 customers, the Walldorf, Germany-based company said Monday in a statement. It plans to fix the problems in the second quarter to meet contractually agreed or statutory security standards. There are no known breaches or security incidents that have resulted from the shortcomings, which affect products from companies that SAP acquired, including SuccessFactors Inc., Concur Technologies Inc. and Callidus Software Inc.


Beyond Meat Stock Pops 19% on a Sizzling Earnings Beat
https://www.fool.com/investing/2020/05/06/beyond-meat-stock-pops-19-on-a-sizzling-earnings-b.aspx?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

Beyond Meat (NASDAQ:BYND), the leading maker of plant-based meat substitutes, reported strong first-quarter 2020 results after the market closed on Tuesday.

Shares of the widely followed stock, which became publicly traded in May 2019, are up a whopping 18.9% at 11:56 a.m. EDT on Wednesday.

We can attribute the stock's surge to revenue and earnings crushing Wall Street consensus estimates. Moreover, the company also posted a surprise profit, which surely delighted investors.

Here's how the quarter worked out for Beyond Meat and its investors.

Pinterest struggles to engage users during coronavirus
Shares of Pinterest fell 19% after the company released its lackluster earnings report.
https://finance.yahoo.com/video/pinterest-struggles-engage-users-during-155018357.html

But Wall Street wasn't happy with Pinterest's user growth, CNBC reported, which was up 6% year-over-year in the U.S., compared with 8% in the fourth quarter. Overall, Pinterest's growth of 26% was the same annualized growth rate it saw in the fourth quarter -- in other words, flat. This was unexpected, given Pinterest's claims of pandemic-related record usage in March and the gains other social platforms have seen, including Facebook and Snapchat.

Nutanix NTNX recently reported preliminary third-quarter fiscal 2020 results, ended Apr 30, reflecting the impacts of the coronavirus pandemic. The company anticipates third-quarter fiscal 2020 revenues to be $312-$317 million or grow 8-10% year over year. The Zacks Consensus Estimate for revenues in the fiscal third quarter stands at $308.8 million, indicating 7.37% year-over-year growth.
https://finance.yahoo.com/news/nutanix-ntnx-updates-q3-view-150803030.html

nvestors were clearly pleased that the company's performance had held up well in spite of the pandemic. But Nutanix nonetheless withdrew its guidance for the year and its business model targets for calendar 2020 due to the uncertainty around COVID-19's impact on customers and end markets. However, the company said it has thus far seen steady demand for its hybrid cloud solutions

https://www.fool.com/investing/2020/05/06/why-nutanix-stock-surged-today.aspx?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article&yptr=yahoo

Nio Analyst Says Improving Sales Trajectory, Easing Liquidity Concerns Support Bullish Stance

[3xBuBu]

United Airlines service workers’ union sues over schedule cuts after carrier got federal aid

https://www.cnbc.com/2020/05/05/united-airlines-service-workers-sue-over-schedule-cuts-after-airline-got-federal-coronavirus-aid.html

The labor union that represents more than 25,000 United Airlines aircraft and passenger service workers sought an injunction Tuesday against sharp schedule cuts, alleging the airline violated the terms of billions in federal coronavirus aid by cutting employee work schedules.

Airlines last month started receiving portions of $25 billion in grants and loans that were earmarked for the sector in the $2.2 trillion CARES Act, the third federal stimulus package and designed in part to help industries hardest hit by the pandemic. A condition of accepting that federal aid is that airlines do not lay off or cut the pay rates of workers through Sept. 30, though executives at major carriers including United and Delta admit they expect to become smaller airlines.

Last month, United said it reached an agreement with the Treasury Department for about $5 billion in payroll support under the CARES Act.

As air travel demand plunged more than 90% in the U.S., airlines have raced to cut costs, parking thousands of jetliners, slashing routes and urging thousands of employees to take unpaid or partially paid voluntary leaves. But several of them, including United, Delta and JetBlue, have announced or already implemented reduced worker schedules with fewer flights, meaning employee paychecks are smaller.

“Travel demand is essentially zero – you see that at our airports and on board our aircraft – and we don’t know when it’s going to come back,” United’s chief operations officer, Greg Hart, said last Friday in a staff note, seen by CNBC. “And importantly, even with a federal government grant that covers a portion of our payroll expense through September 30, we anticipate spending BILLIONS of dollars more than we take in for the next several months, while continuing to employ 100% of our workforce. That’s not sustainable for any company and that’s why we are making difficult decisions across our entire business.”

[3xBuBu]

Norwegian Cruise stock tumbles after 'going concern' language used, prior to proposed debt offering

https://www.marketwatch.com/story/norwegian-cruise-proposes-debt-sale-to-furlough-20-of-shoreside-staff-stock-tumbles-2020-05-05?siteid=yhoof2&yptr=yahoo

Norwegian Cruise Line Holdings Ltd. NCLH, -19.88% said Tuesday its NCL Corp. subsidiary (NCLC) is proposing to sell $650 million in exchangeable senior notes due 2024 in a private offering. The notes will be convertible to Series A preference shares of NCLC, which will be exchangeable into a number of Norwegian Cruise ordinary shares. NCLC is also proposing to sell $600 million in senior secured notes due 2024 in a private offering. The announcement comes after Norwegian Cruise said earlier that the fact plans to obtain additional financing had not been completed raised "substantial doubt about the company's ability to continue as a going concern," given the "significant financial and operational impacts" due to the COVID-19 pandemic. The stock tumbled 13% in morning trading. Among actions the company is taking Norwegian said it will furlough 20% of its shoreside employees through July 31, although that date could change, while shoreside employees not furloughed will have shortened work weeks with a commensurate 20% salary cut at least through June 22. The cruise operator also said it has identified about $515 million of capital expenditure reductions. As of March 31, the company said it was in compliance will all of its debt covenants. The stock has plunged 78.6% year to date, while the S&P 500 SPX, 1.33% has lost 10.9%.

[3xBuBu]

Wayfair stock soars nearly 28% after better-than-expected results

https://www.marketwatch.com/story/wayfair-stock-drops-after-losses-deepen-year-over-year-2020-05-05?siteid=yhoof2&yptr=yahoo



Wayfair is a Zacks Rank #1 (Strong Buy) that is a leading online seller of home good products, consisting of furniture and home décor. The company is well positioned in the current lockdown environment as consumers get tired of their homes and look to remodel. Since most retail stores are closed, Wayfair is seeing more traffic and more customers.

The COVID Effect

When investors panicked in March, Wayfairs stock plunged to $22, down 80% from it January high of $112. However, the stock has seen a massive rally since, seeing a 500% bounce off the lows.

How is this bounce possible?

In March, it was full panic mode and the selling was relentless. But when investors started realizing that some companies might benefit from the stay at home environment, Wayfair shot to the top of the list. With most retail competition closed for the short-term, Wayfair has thrived catering to people that have time to remodel homes.

The company announced in early April that they will meet or exceed their Q1 guidance due to revenue growth. Here is a statement from the company:

Wayfair continues to see strong demand across most home goods categories in both its US and International segments. After entering the month of March with gross revenue growing at slightly below 20% year-over-year, consistent with January and February growth rates, Wayfair saw this rate of growth more than double towards the end of March. This run-rate has continued into early April.

The stock had already bounced to $50 before this positive news. However, the guide for Q1 accelerated the move and the stock shot up to $60 that day and has doubled from there since.

The question going forward is if all the news is priced in and if there is more room higher.

https://finance.yahoo.com/news/wayfair-planet-fitness-fox-etsy-123312935.html

[3xBuBu]

US airline stocks tumble after Buffett sells whole stakes
https://www.cnbc.com/2020/05/04/us-airline-stocks-tumble-after-buffett-sells-whole-stakes.html

U.S. airline shares were down sharply again on Monday, this time after Warren Buffett said Berkshire Hathaway sold its entire stakes in the four largest U.S. carriers as coronavirus devastates travel demand.

Berkshire was among the largest investors in the four — American, Delta, Southwest and United. Buffett announced on Saturday that the firm dumped those shares. Berkshire posted a net loss of close to $50 billion in the first three months of the year.

American was down more than 9% in late morning trading. United and Delta were each down more than 8%, while Southwest fell more than 7% just after the open to a more than five-year low.

Buffett had long shunned airlines. In a 2007 shareholder letter, he said investors in those businesses “poured money into a bottomless pit, attracted by growth when they should have been repelled by it.”

But he returned in 2016 with a surprise bet on the four carriers as the industry was enjoying steady profits and the benefits of strong travel demand and lower fuel costs than in previous years.

The four last month posted their first quarterly losses in years and warned of a slow recovery in demand from prepandemic levels. Delta’s CEO said it could take two to three years.

[3xBuBu]

Will the stock market tumble back to its coronavirus lows in March? About 92 years of S&P 500 history says there’s a good chance

https://www.marketwatch.com/story/will-the-stock-market-tumble-back-to-its-coronavirus-lows-in-march-about-92-years-of-sp-500-history-says-theres-a-good-chance-2020-05-01


So far, the Dow Jones Industrial Average DJIA, -2.55%, the S&P 500 SPX, -2.80% and the Nasdaq Composite COMP, -3.20% indexes were struggling to start off trade in May, after an uptrend in April that produced the best monthly gains in years.

The Dow is up about 28% from its March 23 low at 18.591.93, the S&P 500 is up 27% from its low at 2,237.40 and Nasdaq is has returned 26% from its bear-market nadir at 6,850.67, according to FactSet data.

JPMorgan Chase & Co., analysts warned last month that investors should get ready for a “vicious spiral” that is twice as severe as the 2008 financial crisis, while MarketWatch’s Hulbert wrote a separate piece pointing to August as a possible last stand for the bears.

“In the first bear market of the Great Depression, the S&P fell 44.57% over 58 days and then rallied 20%+ to enter a new bull market,” the analysts at Bespoke wrote in a Friday report. “Unfortunately, the S&P went on to make a lower low 338 days later, and then kept going lower and lower for years,” the report continued.

Many investors believe that the monetary and fiscal stimulus could be a sufficient cocktail to help ward off a revisit to the depths of March, but economic reports that point at stark deterioration in economic activity compared with a few months ago may be enough to shake the nerve of even the most rock-solid bulls.


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[3xBuBu]

Trump told Saudis: Cut oil supply or lose U.S. military support - sources

https://www.reuters.com/article/us-global-oil-trump-saudi-specialreport/special-report-trump-told-saudis-cut-oil-supply-or-lose-u-s-military-support-sources-idUSKBN22C1V4

As the United States pressed Saudi Arabia to end its oil price war with Russia, President Donald Trump gave Saudi leaders an ultimatum.

In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.

The effort illustrated Trump’s strong desire to protect the U.S. oil industry from a historic price meltdown as governments shut down economies worldwide to fight the virus. It also reflected a telling reversal of Trump’s longstanding criticism of the oil cartel, which he has blasted for raising energy costs for Americans with supply cuts that usually lead to higher gasoline prices. Now, Trump was asking OPEC to slash output.

[3xBuBu]

Norwegian Cruise Line Reportedly Taps Goldman Sachs to Sell Stake

https://finance.yahoo.com/news/norwegian-cruise-line-reportedly-taps-164505526.html


Norwegian Cruise Line Holdings, the world’s third-largest cruise company, has reportedly hired investment bank Goldman Sachs to help shore up its finances as it deals with the cruise industry’s standstill amidst the coronavirus crisis.

As Reuters reported on Saturday, the troubled cruise line is considering selling a large stake of the company in what is known as as private investment in public equity (PIPE), among other options. Sources told Reuters no deal was yet certain, and that other financing options were also being explored. Neither Goldman Sachs or Norwegian Cruise Line immediately responded to a request for comment from Skift.

All three of the major cruise lines were left out of the U.S. government’s multi-trillion dollar bailout because none of them are U.S. companies. This has left them in the position of needing to raise cash — and quick — now that their revenue has come to a standstill.

The world’s largest cruise company Carnival Corp. sold an 8 percent stake to Saudi Arabia’s public investment fund and Royal Caribbean secured a $2.2 billion loan in March. All three companies instituted a voluntary suspension of cruises in mid-March. Earlier in April, the Centers for Disease Control and Prevention extended its No Sail order to last until late July — though the cruise lines seem to have other ideas about when they will sail again, if not a legal leg to stand on.

Norwegian, which has 28 docked vessels in its fleet, has seen its share price drop nearly 80 percent since the beginning of the year. It also was the subject of a damning report in March from the Miami New Times that the company instructed its customer service representatives to mislead customers about the risks of booking and embarking on a cruise during the coronavirus crisis. The report led to an investigation from Florida’s attorney general.


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https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=NCLH&time=7&startdate=1%2F4%2F1999&enddate=2%2F6%2F2012&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=3&maval=20&uf=4&lf=4&lf2=256&lf3=1024&type=4&style=330&size=3&x=46&y=14&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11

https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Fund&symb=SQQQ&time=3&startdate=1%2F4%2F1999&enddate=2%2F6%2F2012&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=3&maval=20&uf=4&lf=4&lf2=256&lf3=1024&type=4&style=330&size=2&x=47&y=10&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11

[3xBuBu]

Dow Jones, U.S. Stocks Rise As Countries Begin To Reopen Economies

https://www.investors.com/market-trend/stock-market-today/dow-jones-us-stocks-rise-as-countries-begin-to-reopen-economies/

As of around noon, the Dow Jones Industrial Average gained 366 points, or 1.5%. Meanwhile, the S&P 500 advanced 1.5% and the Nasdaq added 1.2%.

Investors turned bullish at the notion that stimulus measures and the easing of lockdown conditions worldwide will help boost economic activity. In the U.S. over the weekend, some states allowed retailers and salon-type businesses to reopen. In addition, countries including Italy and Spain signaled that they may loosen restrictions in the coming weeks.

New York Gov. Andrew Cuomo on Sunday said the state plans to reopen its economy in phases.

Finally, a flood of U.S. companies — including Dow giant Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Facebook (FB) — are slated to report their Q1 earnings in the coming days.

Over in the Dow Jones, roughly 24 out of the 30 blue-chip components rose on the stock market today, with 19 rising 1% or more. Stocks showing strength included financials like Goldman Sachs (GS) and JPMorgan Chase (JPM), as well as industrial giant 3M (MMM).

Apple (AAPL) fell 0.1% on the stock market today, due to a report that the company would be delaying production of new iPhones by about a month. Consumer demand for Apple products remains somewhat dented by the coronavirus pandemic. Apple reports Q1 earnings on Thursday.

The growth-focused Innovator IBD 50 ETF (FFTY), which gained 25.7% in 2019, rose 1.8% on Monday.

Stocks on the move include Zoom Video (ZM), Emergent BioSolutions (EBS) and Zynex (ZYXI).

Top coronavirus stock play Zoom Video traded nearly 5% higher, as the stock is now soaring nearly 30% above its 50-day line.

Among other top-performing stocks, Emergent BioSolutions rose over 6% Monday. The stock broke out past a 71.29 consolidation buy point last week and remains extended past its 5% buy zone. Emergent BioSolutions maintains a 96 Relative Strength Rating and its RS line is hitting all-time highs.
https://stockcharts.com/freecharts/candleglance.html?sdow,udow,sqqq,tqqq,spxs,spxl,tza,tna,ssg,smh,faz,fas|B|D20|

https://stockcharts.com/freecharts/candleglance.html?AAPL,AMZN,FB,NFLX,TSLA,WMT,EBS,ZM,ZYXI,M,TGT,XRT|B|D20|0

[3xBuBu]

Singapore did almost everything right.
https://www.nytimes.com/2020/04/20/world/asia/coronavirus-singapore.html


After recording its first coronavirus case on Jan. 23, the prosperous city-state meticulously traced the close contacts of every infected patient, while keeping a sense of normalcy on its streets. Borders were shut to populations likely to carry the contagion, although businesses stayed open. Ample testing and treatment were free for residents.

But over the past few days, Singapore’s coronavirus caseload has more than doubled, with more than 8,000 cases confirmed as of Monday, the highest in Southeast Asia. Most of the new infections are within crowded dormitories where migrant laborers live, unnoticed by many of the country’s richer residents and, it turns out, the government itself.

The spread of the coronavirus in this tidy city-state suggests that it might be difficult for the United States, Europe and the rest of the world to return to the way they were anytime soon, even when viral curves appear to have flattened. Although countries can closely track contacts to try to keep an outbreak at bay as Singapore did, the coronavirus is sickening, killing and spreading with each passing day, leaving scientists and political leaders racing to catch up with its relentless pace and new dangers.

[3xBuBu]

House passes $484 billion bill to boost small businesses and hospitals

https://www.cnbc.com/2020/04/23/coronavirus-updates-house-passes-bill-to-aid-small-business-hospitals.html

The House voted to pass a bill with $484 billion in funding for small business aid, hospital grants and coronavirus testing.
It added to the government’s unprecedented emergency spending to respond to the health and economic crisis created by the pandemic.
The measure likely will not be the last one Congress passes to respond to the outbreak.

The House passed a $484 billion package Thursday to bolster small businesses and hospitals ravaged by the coronavirus crisis and expand testing desperately needed to start the return to normal life.

Donning face coverings and voting in alphabetical sets to cut the risk of infection, representatives approved the bill easily by a 388-5-1 vote. One member, independent Rep. Justin Amash of Michigan, voted “present.” The House sends the proposal to President Donald Trump, who is set to sign it into law in the coming hours.

Before the chamber passed the plan to try to rescue a crumbling U.S. economy, it also approved a Democratic-majority select subcommittee to oversee the Trump administration’s use of a $500 billion pool of aid for corporations, states and municipalities. Congress approved those funds last month.

The bill passed Thursday includes:

$310 billion in new funds for the so-called Paycheck Protection Program, which gives small firms loans that could be forgiven if they use them on wages, benefits, rent and utilities. Within that pool, $60 billion will specifically go to small lenders, a priority Democrats pushed for after they blocked a $250 billion funding bill earlier this month.
$60 billion for Small Business Administration disaster assistance loans and grants.
$75 billion in grants to hospitals overwhelmed by a rush of Covid-19 patients.
$25 billion to bolster coronavirus testing, a core piece of any plan to restart the U.S. economy.
Four Republicans and one Democrat voted against the proposal. The lone Democrat who opposed it was Rep. Alexandria Ocasio-Cortez, who represents hard-hit areas of the Bronx and Queens. She argued the bill did not go far enough to help struggling individuals and governments.



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USO at 3.71

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[3xBuBu]

Oil Prices Climb as Traders Prepare for Wild Ride to Continue

https://ih.advfn.com/stock-market/stock-news/82296152/oil-prices-climb-as-traders-prepare-for-wild-ride

Crude-oil prices jumped Thursday, extending a string of wild moves that are ricocheting across financial markets and roiling the global energy industry.

While prices have clawed back ground over the past two sessions, oil now trades at a fraction of where it started the year and is well below levels that make it profitable for companies to produce. The longer most of the world practices social distancing due to the coronavirus, the bigger the global glut of crude grows.

Many analysts are skeptical that the large percentage rebound from the past few days will persist, noting that such big gains tend to cluster around long-term declines. Traders are bracing for more gyrations in the coming weeks.

U.S. crude-oil futures for delivery in June rose 20% to $16.50 a barrel Thursday. The benchmark started the year above $60 and is still near its lowest level in more than two decades. Brent crude futures, used to set prices for oil throughout global energy markets, rose 4.7% to $21.33 a barrel.

Helping prices regain some lost ground: signs of a recovery in demand for oil in China, which is emerging from coronavirus lockdowns, and tensions between the U.S. and Iran. The two nations engaged in a new round of antagonism Wednesday, when Tehran said it had launched its first military satellite into space.

Earlier in the day, President Trump threatened to destroy Iranian boats that harass the U.S. Navy, boosting oil prices. Such barbs can lift crude because traders are very sensitive to tensions in the region that could disrupt the movement of oil through the Strait of Hormuz, a vital shipping channel for tankers.

"When you look at China, road traffic and refinery operations are back up," said Norbert Rücker, head of economics at Swiss private bank Julius Baer. "Don't forget the geopolitical side, too."

Thursday's advance continues a period of outsize moves in oil that is rippling to stock, bond and currency markets. Investors are concerned that damped spending, bankruptcies and layoffs in the energy industry could make the economic damage from the coronavirus pandemic even more severe.

The price of the most actively traded U.S. crude futures contract has moved up or down about 10%, on average, on each trading day since the start of March. That compares with an average move in either direction of 1.5% in 2019 as a whole, according to FactSet data.

Many analysts are still reeling from Monday's chaos in oil. That day, a futures contract for delivery next month tumbled below $0 a barrel, a first in crude-market history. The plunge meant traders effectively had to pay buyers to take oil off their hands due to a lack of available storage for crude around the world.

That futures contract expired in positive territory on Tuesday, but analysts are wary of a repeat with supply overwhelming demand. Traders say investors unfamiliar with oil markets were likely stuck holding some of the May futures contracts near expiration, not realizing that they would either have to sell them or accept delivery of physical barrels that -- with storage full -- likely would have nowhere to go.

That allowed counterparties on the other side of the trades to send futures prices plunging well below $0.

"It was the perfect storm," said Donald Morton, a senior vice president at Herbert J. Sims & Co. who oversees an energy trading desk in Haverhill, Mass.

Global inventories also continue to climb, highlighting the growing glut collapsing the market. U.S. stockpiles rose 15 million barrels last week, Energy Information Administration data showed Wednesday, continuing a series of large increases. Many analysts project inventories to break through record levels in a matter of weeks and near capacity.

As a result, many investors expect more big oil-price swings ahead. One gauge of how volatile U.S. crude prices are expected to be over the next 30 days, the Cboe Crude Oil ETF Volatility Index, has risen roughly 730% this year to its highest level on record.

Like the better-known VIX gauge that tracks volatility in the stock market, the index uses options prices to calculate how far traders are expecting prices to move over the next month.

The oil-volatility options aren't tied to oil futures prices directly but instead to United States Oil Fund LP, an exchange-traded fund that aims to match U.S. crude prices. The fund recently accumulated a huge position in the futures market, thanks to a rush of cash from individual investors.

Analysts say some of those individual investors likely weren't aware how the fund works, adding to the chaos in recent weeks.

Some market watchers now expect the mounting losses and Monday's historic drop to dissuade investment in the sector.

"We're getting close to the point when people just stop trying to buy this," said Marwan Younes, chief investment officer at hedge fund Massar Capital Management.

Write to Joe Wallace at [e-mail], David Hodari at [e-mail] and Amrith Ramkumar at [e-mail]

[3xBuBu]

Real unemployment rate soars past 20%—and the U.S. has now lost 26.5 million jobs

https://fortune.com/2020/04/23/us-unemployment-rate-numbers-claims-this-week-total-job-losses-april-23-2020-benefits-claims/


Another 4.4 million Americans filed initial unemployment claims in the week ending April 18. That's down from 5.2 million the week prior, however it marks the fifth consecutive week over 3 million, according to the U.S. Department of Labor.

At the highest of levels of unemployment following the 2008 financial crisis, there were 15.3 million jobless Americans. But in the past five weeks a staggering 26.5 million workers have already filed jobless claims.

Prior to this five-week stretch of 26.5 million initial jobless claims, there were already 7.1 million unemployed Americans as of March 13, according to the U.S. Bureau of Labor Statistics. When the figures are combined, it would equal more than 33 million unemployed, or a real unemployment rate of 20.6%—which would be the highest level since 1934.

[3xBuBu]

China’s next coronavirus crisis: What happens after a country closes its economy

https://fortune.com/2020/04/20/coronavirus-reopening-the-economy-china-covid-19/

China has become the world’s pioneer on coronavirus response—a mantle assumed out of necessity. The first to encounter the COVID-19 virus in its industrial hub of Wuhan, China enacted mass lockdowns and managed to contain the outbreak. As the virus spreads across the globe, governments elsewhere are mimicking the tactic, forcing large swaths of the world’s population into inactivity, isolation, and even quarantine. But mandatory social distancing comes with a price, and Beijing’s response to the economic fallout is so far less instructional.

China’s economy endured a one-two punch under lockdown. With workers and consumers told to stay home, both consumption and production plummeted. The trade­off was a peak and steady drop-off of coronavirus cases; the vast majority of the 83,000 people infected have recovered, according to China’s count. But when data quantifying the economic fallout started rolling in, it was undeniably bleak.

“This is hands-down the absolute worst result we’ve ever recorded,” said ­Shehzad Qazi, managing director at China Beige Book (CBB). The consultancy surveys over 3,300 Chinese companies to gauge the strength of the world’s second-largest economy, and in the first three months of this year, all of its headline metrics—from revenue to profits—sank into contraction territory, a result never seen in its decade of tracking.