Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
$RUT - Fibonacci Retracements working like a charm
H & S forming now
.
https://www.investopedia.com/ask/answers/05/fibonacciretracement.asp
Futures on the Dow Jones Industrial Average fell 384 points
https://www.cnbc.com/2020/06/17/stock-market-futures-open-to-close-news.html
Investors turned more cautious as increases in coronavirus cases cast doubt on a swift economic recovery. Several states in the U.S. are experiencing a resurgence of infections. Arizona reported a record high number of new confirmed cases, while Texas saw an 11% daily spike in hospitalizations for patients with Covid-19 on Wednesday.
“We believe the market is pricing in quite a bit of good news and the rally is likely to take a breather in coming months as the recovery evolves,” Scott Wren, Wells Fargo’s senior global market strategist, said in a note. “We expect volatility in the coming months as we gauge how the reopenings are going and how consumer spending is progressing.”
New jobless claims data is set to come out Thursday morning, offering an update on the pace of the labor market’s recovery from the pandemic. Economist polled by Dow Jones expected a total of 1.30 million new filings for the week ending June 13, a decline from 1.54 million from the week prior.
.
Russell 2k forming Head and Shoulder
Enphase Energy Short Seller Doubles Down On Fraud Allegations Following Third-Party Investigation
https://finance.yahoo.com/news/enphase-energy-short-seller-doubles-175047843.html
Enphase Energy Inc (NASDAQ: ENPH) shares plummeted 23.2% on Wednesday after short seller Prescience Point released a new report alleging fraudulent accounting practices and predicting Enphase will ultimately be delisted.
In the new report, Prescience Point claims Enphase has fabricated financial statements and SEC filings.
“Based on our research, we estimate that at least $205.3m of its reported US revenue in FY 2019 was fabricated. Based on statements provided by former employees and other solar industry participants, it appears that the Company inflated its international revenue significantly as well,” Prescience Point alleges.
In addition, the firm claims a significant portion of Enphase’s gross margin expansion from the second quarter of 2017 to the first quarter of 2020 is fraudulent.
Investigation Findings: Prescient Point called for regulators to investigate Enphase’s accounting practices and claimed a third-party investigation of Enphase’s India business revealed the following troubling findings:
Enphase is allegedly using an India-based team to carry out accounting fraud.
Nearly all of the former Enphase employees the investigator interviewed claimed the company was fabricating financial numbers.
At least one former Enphase distributor in India terminated its relationship with the company due to concerns over potentially fraudulently inflated invoices.
Employee turnover in Enphase’s Bangalore office is an extremely high 70%, which Prescient Point attributes in part to Enphase’s accounting practices.
Original Allegations: Prescient Point previously accused Enphase of using improper deferred revenue accounting back in 2018, but the market mostly ignored the allegations and the stock continued to rise.
Scientists hail dexamethasone as ‘major breakthrough’ in treating coronavirus
https://www.cnbc.com/2020/06/16/steroid-dexamethasone-reduces-deaths-from-severe-covid-19-trial.html
Dexamethasone, a cheap and widely used steroid, has become the first drug shown to be able to save lives among Covid-19 patients in what scientists hailed as a “major breakthrough”.
[Co-developed by Oxford University and AstraZeneca PLC (AZN)]
Results of trials announced on Tuesday showed dexamethasone, which is used to reduce inflammation in other diseases, reduced death rates by around a third among the most severely ill Covid-19 patients admitted to hospital.
The results suggest the drug should immediately become standard care in patients with severe cases of the pandemic disease, said the researchers who led the trials.
“This is a result that shows that if patients who have Covid-19 and are on ventilators or are on oxygen are given dexamethasone, it will save lives, and it will do so at a remarkably low cost,” said Martin Landray, an Oxford University professor co-leading the trial, known as the RECOVERY trial.
“It’s going to be very hard for any drug really to replace this, given that for less than 50 pounds ($63.26), you can treat eight patients and save a life,” he told reporters in an online briefing.
His co-lead investigator, Peter Horby, said dexamethasone was “the only drug that’s so far shown to reduce mortality - and it reduces it significantly.”
“It is a major breakthrough,” he said. “Dexamethasone is inexpensive, on the shelf, and can be used immediately to save lives worldwide.”
There are currently no approved treatments or vaccines for Covid-19, the disease caused by the new coronavirus which has killed more than 431,000 globally.
Saving ‘countless lives’
The RECOVERY trial compared outcomes of around 2,100 patients who were randomly assigned to get the steroid, with those of around 4,300 patients who did not get it.
The results suggest that one death would be prevented by treatment with dexamethasone among every eight ventilated Covid-19 patients, Landray said, and one death would be prevented among every 25 Covid-19 patients that received the drug and are on oxygen.
Among patients with Covid-19 who did not require respiratory support, there was no benefit from treatment with dexamethasone.
“The survival benefit is clear and large in those patients who are sick enough to require oxygen treatment, so dexamethasone should now become standard of care in these patients,” Horby said.
Nick Cammack, a expert on Covid-19 at the Wellcome Trust global health charity, said the findings would “transform the impact of the Covid-19 pandemic on lives and economies across the world”.
“Countless lives will be saved globally,” he said in a statement responding to the results.
The RECOVERY trial was launched in April as a randomised clinical trial to test a range of potential treatments for Covid-19, including low-dose dexamethasone and the malaria drug hydoxycholoroquine.
The hydroxychloroquine arm was halted earlier this month after Horby and Landray said results showed it was “useless” at treating Covid-19 patients.
Global cases of infection with the novel coronavirus have reached over 8 million, according to a Reuters tally, and more than 434,000 people have died after contracting the virus, the first case if which was reported in China in early January.
The Food and Drug Administration has revoked its emergency use authorization for the drugs hydroxychloroquine and chloroquine for the treatment of Covid-19.
https://www.cnn.com/2020/06/15/politics/fda-hydroxychloroquine-coronavirus/index.html
Hydroxychloroquine was frequently touted by President Donald Trump, and he has claimed to have used it himself.
After reviewing the current research available on the drugs, the FDA determined that the drugs do not meet "the statutory criteria" for emergency use authorization as they are unlikely to be effective in treating Covid-19 based on the latest scientific evidence, the agency noted on its website on Monday.
"FDA has concluded that, based on this new information and other information discussed in the attached memorandum, it is no longer reasonable to believe that oral formulations of HCQ and CQ may be effective in treating COVID-19, nor is it reasonable to believe that the known and potential benefits of these products outweigh their known and potential risks," FDA chief scientist Denise Hinton wrote in a letter to Gary Disbrow of the Biomedical Advanced Research and Development Authority (BARDA) on Monday. Hydroxychloroquine and chloroquine have been tied to serious cardiac events as well as other side effects among Covid-19 patients.
An inexpensive drug reduces virus deaths, scientists say.
https://www.nytimes.com/2020/06/16/world/coronavirus-live-updates.html?action=click&module=RelatedLinks&pgtype=Article
Scientists at the University of Oxford said on Tuesday that they have identified what they called the first drug proven to reduce coronavirus-related deaths, after a 6,000-patient trial of the drug in Britain showed that a low-cost steroid could reduce deaths significantly for hospitalized patients.
The steroid, dexamethasone, reduced deaths by a third in patients receiving ventilation, and by a fifth in patients receiving only oxygen treatment, the scientists said. They found no benefit from the drug in patients who did not need respiratory support.
Matt Hancock, Britain’s health secretary, said National Health Service doctors would begin treating patients with the drug on Tuesday afternoon.
The government started stockpiling dexamethasone several months ago because it was hopeful about the potential of the drug, Mr. Hancock said, and now has 200,000 doses on hand.
“Dexamethasone is the first drug to be shown to improve survival in Covid-19,” said Peter Horby, professor of emerging infectious diseases at the University of Oxford, and one of the chief investigators for the trial, said in a statement. “The survival benefit is clear and large in those patients who are sick enough to require oxygen treatment.”
Dow futures surge amid report that Trump is preparing $1 trillion infrastructure proposal
https://www.cnbc.com/2020/06/15/stock-market-futures-open-to-close-news.htmlhttps://www.cnbc.com/2020/06/15/stock-market-futures-open-to-close-news.html
Futures contracts tied to the major U.S. stock indexes rose early Tuesday morning as a Bloomberg report said President Donald Trump’s administration is preparing a $1 trillion infrastructure proposal.
Dow Jones Industrial Average futures rose 492 points, suggesting an open gain of more than 539 points when regular trading resumes on Tuesday. S&P 500 and Nasdaq-100 futures also implied a positive Tuesday start for the two indexes.
Citing people familiar with the plan, Bloomberg reported the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary version being prepared would set aside majority of the money for traditional infrastructure such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
The overnight moves Monday evening followed a striking rebound in U.S. equity markets during the regular session.
The Dow Jones Industrial Average closed 157.62 points higher on Monday after the blue-chip index fell more than 760 points earlier in the session. The S&P 500 gained 0.8% to end the day at 3,066.59 while the Nasdaq Composite advanced 1.4% to 9,726.02. The S&P 500 and Nasdaq had fallen as much as 2.5% and 1.9%, respectively, before erasing those losses.
Traders pointed to an announcement from the Federal Reserve during Monday’s session for an abrupt move higher around 1:50 p.m. ET.
The central bank said it would buy individual corporate bonds and signaled a broader approach to corporate bond buying that had remained a matter of speculation until Monday afternoon. The Fed indicated earlier in the spring that it would buy bonds on the primary market, but Monday’s announcement expanded its operations into the secondary market.
DocuSign to Enter Nasdaq 100, Replacing United Airlines
https://finance.yahoo.com/m/0e6bb8d1-37f7-3add-ac1c-61b7488473c0/docusign-to-enter-nasdaq-100-.html
Nasdaq said that as of June 22, the e-signature company DocuSign would join the Nasdaq 100 Index and replace United Airlines.
Huawei CFO's Lawyers Say She Is Falsely Accused by U.S.
June 15 2020 - 06:36PM
Dow Jones News Print
By Jacquie McNish
https://ih.advfn.com/stock-market/stock-news/82663876/huawei-cfos-lawyers-say-she-is-falsely-accused-by
Lawyers for Huawei Technologies Co. finance chief Meng Wanzhou told a Canadian court that the U.S. has wrongly accused her of lying to banks about the Chinese company's business ties to Iran.
A memo filed with the Supreme Court of British Columbia on Monday by Ms. Meng's lawyers said U.S. authorities made "reckless misstatements" about a presentation she made to HSBC in 2013 when Huawei was negotiating a line of credit.
The memo said her presentation to HSBC stated Huawei "conducts normal business activities in Iran" and worked with a partner, Skycom Tech, "in sales and service in Iran."
Ms. Meng's lawyers added that the alleged U.S. omission of her statements will be added to their claim that U.S. and Canadian officials have abused her legal rights when she was arrested at a Vancouver airport in December 2018.
A spokesman for the U.S. Justice Department wasn't immediately available to comment.
The U.S. is seeking to extradite Ms. Meng from Canada to the U.S. to face charges that she was part of a conspiracy to defraud financial institutions by claiming that Huawei wasn't tied to Skycom. HSBC and other banks cleared hundreds of millions of dollars in transactions that potentially violated international sanctions against Iran.
Ms. Meng, 48 years old, is the daughter of Huawei founder Ren Zhengfei. She is currently on bail and confined to the Vancouver area with an ankle monitor.
She lost an important legal battle last month when a British Columbia judge ruled the U.S. had met a key test to extradite her to the U.S.
The judge has agreed to other hearings in the coming months to consider Ms. Meng's claim that she was unlawfully searched and interrogated before her 2018 arrest at the airport. She also claims the extradition request is improperly based on political motivations at a time the U.S. is seeking the upper hand in prolonged trade and technology tensions with China.
Canada has a low legal threshold for allowing extraditions to the U.S., but cases can take years to resolve as a result of appeals and other legal motions allowed under Canadian law.
Meanwhile, Canada has been caught in the crossfire between the two superpowers. Two Canadians, Michael Kovrig and Michael Spavor, were arrested days after Ms. Meng's arrest and remain in jail in China. Canadian exports, including meat and canola have been blocked by China.
A dollar crash is virtually inevitable
https://www.cnbc.com/2020/06/15/dollar-crash-is-almost-inevitable-asia-expert-stephen-roach-warns.html
The stronger dollar era may be on borrowed time.
Stephen Roach, one of the world’s leading authorities on Asia, is worried a changing global landscape paired with a massive U.S. budget deficit will spark a dollar crash.
“The U.S. economy has been afflicted with some significant macro imbalances for a long time, namely a very low domestic savings rate and a chronic current account deficit,” the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation” on Monday. “The dollar is going to fall very, very sharply.”
His forecast calls for a 35% drop against other major currencies.
“These problems are going from bad to worse as we blow out the fiscal deficit in the years ahead,” said Roach, a Yale University senior fellow.
The U.S. Dollar Currency Index is up more than one percent over the past two weeks and is relatively flat so far this year. But Roach believes it’s no time to get complacent.
“The national savings rate is probably going to go deeper into negative territory than it has ever done for the United States or any leading economy in economic history,” he said.
Roach contends other forces are at play, too.
‘Lethal combination’
“At the same time, America is walking away from globalization and is focused on decoupling itself from the rest of the world,” said Roach. “That’s a lethal combination.”
The big question: Will it happen quickly or gradually?
His timeline is rough — over the next year or two, maybe more. However, Roach suggests a crash virtually inevitable, and it’s a risk investors shouldn’t ignore.
“Generally, it’s a negative implication for U.S. financial assets,” he added. “It points to the probability of higher inflation as we import more higher cost foreign goods from overseas, and that’s a negative for interest rates.”
He’s concerned a crash could spark a late 1970s-type stagflation crisis, when prices rose sharply while economic growth was muted.
According to Roach, not even a leadership change in Washington in November would be able to move the needle much — especially as lawmakers try to battle the economic impact from the coronavirus crisis with unprecedented stimulus measures.
“Policymakers to their credit have never had to deal with anything close to this disruption,” Roach said.
The stock market is tracing an important reversal pattern
Offsetting this pattern is the Federal Reserve’s unprecedented stimulus
https://www.marketwatch.com/story/the-stock-market-is-tracing-an-important-reversal-pattern-that-you-should-watch-2020-06-15?mod=home-page
follow the link below for an annotated chart:
https://thearorareport.com/chart-analysis-island-reversal-coronavirus-second-wave
Note the following:
• The chart shows that an island was formed by two gaps, one on the left and one on the right.
• The chart shows an Arora sentiment indicator was giving sell signals throughout the formation of the island. (This indicator reached an extreme positive zone during this period.) Sentiment at extremes is a contrary indicator. In plain English, when sentiment becomes extremely positive, it is a sell signal. It is important to note that some publicly available indicators work well, while others do not. In general, we have found that publicly available sentiment indicators do not work well, hence the need for proprietary indicators.
• The chart shows that on the last two days of the island, the smart money — professionals — was selling.
• The chart shows an inside day occurred the day after the island reversal. Further during this inside day, the candle is red. In plain English, this means that the close was below the open in the stock market.
• The chart shows that the stock market is opening up lower after the inside day.
• If the inside day did not occur, it could have nullified the negative implications.
• The chart shows that the volume was very high on the day when the gap was formed on the right side of the chart. This adds to negative potency of the pattern.
• The chart shows that RSI (relative strength index) reached 95 when the island was being formed. This was an extremely overbought level.
• The chart shows that while the island was being formed and prior to the stock market falling, RSI gave a sell signal when it crossed below the moving average shown on the chart.
• In a pane below the volume, the chart shows the S&P 500 ETF SPY, +0.93%, which tracks the benchmark S&P 500 Index. The pattern in the S&P 500 is the same as in the Dow Jones Industrial Average. It is important for investors to confirm the pattern by looking at different indices.
• The late stages of the rally have been characterized with strong up moves in travel-related stocks such as airline stocks and cruise-line stock.
• The chart shows American Airlines AAL, -0.23% stock tracing a less ominous pattern. The same is the case with other airlines such as United Airlines UAL, -1.66% and Spirit Airlines SAVE, +4.83%.
• The chart shows Carnival CCL, -2.70% is tracing a pattern that is less ominous. A similar pattern is being shown by Royal Caribbean RCL, -0.57% and Norwegian Cruise Line NCLH, -2.48%.
• Investors have been hiding in the five big tech stocks of Apple AAPL, +1.23%, Amazon AMZN, +1.08%, Microsoft MSFT, +0.63%, Alphabet GOOG, +0.47% GOOGL, +0.55% and Facebook FB, +1.71%. The patterns in these stocks are nowhere near as ominous as in the Dow Jones Industrial Average and S&P 500.
Putting it all together
Where many investors go wrong with technical analysis is that they do not put in the time and effort needed to learn it. It takes years to get good at it. In this case, it is not just the island reversal pattern, but also the following that are important:
• The size of the gaps.
• The location of the island — in this case after a very strong rally.
• The day after the island is formed and the subsequent day.
• RSI during the time the island is formed.
• Sentiment during the time the island is formed.
• The height of the island — tall islands give stronger signals than shallow islands.
• Volume.
• Duration of the island and many more factors.
Due to the Fed’s actions, more data points are needed before making any definitive conclusions.
The Dow Jones Industrial Average closed 157.62 points higher on Monday after the blue-chip index fell more than 760 points earlier in the session.
https://www.cnbc.com/2020/06/15/stock-market-futures-open-to-close-news.html
The central bank said it would buy individual corporate bonds and signaled a broader approach to corporate bond buying that had remained a matter of speculation until Monday afternoon. The Fed indicated earlier in the spring that it would buy bonds on the primary market, but Monday’s announcement expanded its operations into the secondary market.
Government’s cure for the coronavirus recession is worse for the global economy than the disease
https://www.marketwatch.com/story/governments-cure-for-the-coronavirus-recession-is-worse-for-the-global-economy-than-the-disease-2020-06-12?mod=home-page
A major legacy of the COVID-19 pandemic will be a significant increase in already high global debt levels. In the U.S., government debt is expected to rise to $27 trillion by September 2020 from $23 trillion a year ago — a debt-to-GDP ratio of 135%. In OECD countries, debt levels are expected to increase by $17 trillion, rising from 109% to more than 137% of GDP.
Public sector debt increases reflect higher healthcare spending, actions to alleviate the economic effects of the COVID-19 crisis, emergency loans and the loss of tax revenues. Households and businesses have also substantially increased borrowings to cover income shortfalls. If the recovery is slower than expected, then the rise in borrowings will be greater.
Reducing debt is in order now, and this can be done in five ways:
First, debt can be self-liquidating. Where invested in productive activities, the income generated can pay back interest and principal. The problem is that much of the debt incurred has financed consumption or is otherwise unproductive. Much of the current increase in debt is designed to supplement lost cash flow or facilitate business survival.
Moreover, governments are reluctant to raise revenues through higher taxes to decrease debt levels, fearing a drop in economic activity as well as for ideological reasons.
Second, strong economic growth can help reduce debt. In aggregate, it boosts GDP, decreasing debt as a percentage of the economy or business leverage. Strong growth augments government tax revenues and business income, which helps to pay off borrowings. Unfortunately, growth has been lackluster since 2008, being sustained artificially by low interest rates, liquidity infusions and fiscal deficits.
Growth and debt are now inextricably linked. Increasing amounts of debt are needed to generate growth. Globally, around $2-$3 of new debt are needed to produce each dollar of growth. This means debt is increasing at a faster rate than growth.
Third, high rates of inflation, especially if above the nominal interest rate, can help deleveraging. It increases revenues and reduces the economic purchasing power of the debt. In recent times, inflation levels have remained low due to a mixture of weak demand, overcapacity and changes in industrial structure. Central bank efforts to increase inflation through loose monetary policies have not been successful.
Fourth, nations can engineer currency devaluations to decrease the purchasing power of debt issued in its own currency. In a world where every nation is seeking to devalue to increase export competitiveness as well as reduce debt burdens, this option is difficult.
Fifth, debt can be decreased by default or restructuring, either by bankruptcy or negotiations between debtor and creditor. As debt and savings are two sides of the same coin, this would result in loss of wealth. If debts are written off, then savers are left without resources to meet future commitments. The result is lower consumption, which reduces economic activity.
Debt, then and now
In an environment of low growth and disinflation or deflation, high-debt levels are difficult to manage. The historical precedents are not encouraging.
Between 1914 and 1939, for example, World War I, post-war rebuilding and the Great Depression damaged public finances. Immediately after World War I, U.K. debt rose to 140% of GDP. Attempts to reduce debt through austerity failed. Debt rose to 170% of GDP as economic growth fell, with 1928 output below that of 1918.
Germany, bearing its war losses and reparations, experienced hyperinflation and the destruction of its currency, which reduced its debt burden by 129% of GDP. In the 1930s, countries making up nearly half of global GDP defaulted or entered debt restructuring. The social and economic costs were severe.
After World War II, some countries defaulted or experienced hyperinflation. Others used financial repression, such as negative real rates, controlled lending and deposit rates, capital controls and forcing institutions and households to finance the government at below-market rates, in order to manage debt. Real interest rates in advanced economies were negative roughly half the time between 1945 and 1980. These actions, along with strong growth driven by post-war reconstruction, helped reduce debt levels.
Nowadays, given the limited options, the current debt burden will be managed in the short run through financial repression. Zero- or negative interest rates will make borrowing bearable. Debt will be consolidated onto the government balance sheet. In the current crisis, governments globally have acted as lenders to businesses and individuals. Some loans will be of necessity converted into grants. Student loans or some delinquent mortgages may be assumed by government. In the absence of growth or inflation, default, either explicit or in the form of debasement of the currency to wipe out obligations, may be unavoidable.
Debt is analogous to the effect that ice has on an aircraft. Planes are designed to cope with modest icing on the wings. But large build-ups cause a loss of lift, resulting in erratic flight, loss of altitude — and ultimately a crash. Global debt levels resemble a large buildup of ice on the wings of the global economy and threaten a catastrophic final chapter.
The market’s comeback from coronavirus lows caused two Wall Street greats to change their minds
https://www.cnbc.com/2020/06/13/top-investors-cite-historic-policy-after-markets-return.html
Few traders have had careers as long and stellar as Stanley Druckenmiller and Paul Tudor Jones.
Rarer still, however, is for both of those investors in the same week to describe themselves as “humbled” by what they’re seeing in the stock market.
But both Druckenmiller and Jones said the S&P 500's robust rally since March left them perplexed and wondering how, amid a global pandemic and civil unrest, the index could have rebounded with such strength.
After all, even with Thursday’s steep losses, the index is up 37% since its March low.
They and others now say that a combination of unprecedented monetary and fiscal stimulus appears to have pacified the market in a way they’ve never seen before.
“Let me tell you, if there was a franchise for humble pie, oh my lord there’d be a mile long to own that because we’ve all had huge gulps of it — me included,” Jones told the New York Economic Club on Wednesday. “You just had unprecedented times in every way, shape or form.”
Druckenmiller, who joined CNBC’s “Squawk Box” on Monday, expressed a similar view.
“I’ve been humbled many times in my career, and I’m sure I’ll be many times in the future. And the last three weeks certainly fits that category,” he said.
For those unfamiliar with the two investors, Druckenmiller — who said as recently as mid-May that he thought the market was overvalued — and Jones aren’t the type to change their minds on a whim.
Jones, whose Wall Street fame can be tied back to his brazen and accurate prediction of the October 1987 crash known as “Black Monday,” has made much of his fortune by standing by his convictions.
Bets designed to pay off in times of market duress like Black Monday, when the stock market fell 22% in one day, or ahead of the Great Recession have solidified Jones’ prowess.
Fellow billionaire investor Druckenmiller also isn’t one afraid of taking a contrarian bet if he’s convinced of a good trade. His famous short bet against the British pound in 1992 netted George Soros’ Quantum Fund some $1 billion in profits.
So when Druckenmiller said Monday that he’s been humbled by the market’s rebound and has only returned 3% since the March bottom, others tend to pay attention.
The Fed: They’re ‘everywhere’
Explaining the S&P 500's climb since March is a tricky business with many possible answers, but Jones and Druckenmiller say the gains almost certainly have something to do with Washington.
Congress passed in March the $2.2 trillion CARES Act, a mammoth piece of emergency legislation that sought to inject the U.S. economy with a much-needed cash infusion. The law, unrivaled in American history for its scope and size, came as businesses closed and people sheltered at home to slow the spread of Covid-19.
It provided funding for hospitals and research labs, direct payments of $1,200 to individuals earning up to $75,000 and dramatically expanded jobless benefits for those the millions of Americans who’d find themselves without work in the weeks to come. It also established the Paycheck Protection Program (PPP) and sought to provide support to many of the smallest businesses in the U.S.
An additional piece of stimulus legislation, the $3.5 trillion HEROES Act passed by House Democrats last month, is stalled in the Senate, where Republicans thus far favor a wait-and-see approach to further fiscal stimulus.
But as helpful as the CARES Act was for individuals and commerce, investors have applauded perhaps even louder for the Federal Reserve. The Fed, led by Chairman Jerome Powell, announced throughout March and April a torrent of new lending powers designed to provide as much liquidity to the credit markets as possible.
This unparalleled response from the Fed has in effect drowned the market in cash and provided business owners with one of the most powerful safety nets in U.S. history, said Prudential Financial market strategist Quincy Krosby.
“Let me put it this way: The Fed’s balance sheet in December 2008 was approximately $880 billion. And then when they finished [with Great Recession stimulus] it was about $4.5 trillion,” she said in a phone interview on Tuesday. “Now this time around, in very, very short order, they’re above $7 trillion.”
But in addition to expanding its balance sheet and asset purchases, the central bank announced its own $2.3 trillion lending program that will extend credit to banks that issue PPP loans and purchase up to $600 billion in loans issued via the Main Street program to mid-sized businesses.
It also said it would expand plans to backstop lending to some of the country’s largest companies by supporting riskier bonds issued by firms that have lost their investment-grade status.
“Think about how fast they moved. And how quickly they moved into every nook and cranny in the market to stabilize financial conditions,” Krosby said of the central bank. “They’re everywhere, they’re everywhere. And they have made it clear they’re not going to stop.”
A 'no-fail situation' for oil CEOs
https://markets.businessinsider.com/commodities/news/power-line-shale-ceo-salaries-oil-price-bp-layoffs-2020-6-1029304777
WTI dropped below 10 in April, 2020
.
.
.
.
Remarkably, even as companies head towards bankruptcy, their top execs can get big payouts.
Days before Whiting Petroleum filed for Chapter 11, its board approved a $6.4 million cash bonus for its CEO.
In early May, Chesapeake Energy announced it would pre-pay $25 million of executive bonuses, days before Bloomberg News reported that the natural gas giant was preparing a bankruptcy filing.
Neither company responded to Business Insider's request for comment.
"If you're an oil CEO, you're kind of in a no-fail situation because you get compensated even if you don't make any money," Kelly Mitchell, senior analyst at Documented, told me.
It was a week of whiplash. On Tuesday morning, we reported on the recovering price per barrel. By the afternoon, we wrote that Goldman Sachs was expecting the price to fall — and then it did.
So what's what?
The rise: Oil gained value faster than most Wall Street analysts expected.
In May, US crude oil posted its sharpest monthly gains ever. Today, it's up more than 15% since mid-March.
OPEC+ extended its record supply cuts through July, but the recovery is mostly about rising demand for fuel. Apple data suggest people are driving a lot more.
Demand could fully recover by the end of 2021, Morgan Stanley analysts say.
Some US producers are taking shuttered oil wells back online as a result of the recovery.
The stall: The rally that sent prices surging has stalled as concerns of a second coronavirus outbreak mount.
Oil prices are on track to fall for the first week in about two months.
Good job, Goldman Sachs! The Wall Street bank predicted this earlier in the week.
Goldman analysts said fear of a second outbreak, an enormous oil surplus, and an uncertain future of demand would cause the price to fall in the "coming weeks."
The bank went as far as to call reversing well shut-ins "premature."
BP froze layoffs for 3 months. Now it plans to cut 10,000 workers.
It might have come as good news when BP announced a three-month layoff moratorium back in March, amid the oil market meltdown. But any assurance quickly dried up on Monday, when the London-based company announced that it would cut about 10,000 workers.
BP's chief said it costs about $22 billion a year to run BP, and more than one-third of that budget is allocated to personnel.
"The oil price has plunged well below the level we need to turn a profit," he said in a memo published on LinkedIn. "We are spending much, much more than we make — I am talking millions of dollars, every day."
https://www.etftrends.com/us-shale-oil-energy-sector-etfs-are-still-at-risk/
U.S. Shale Oil, Energy Sector ETFs Are Still at Risk
Exchange traded funds that track the U.S. shale-oil industry could continue to come under pressure from the depressed crude prices due to the ongoing coronavirus pandemic.
According to the Institute for Economics and Peace, the COVID-19 pandemic has dragged down the price of oil, which will affect political regimes in the Middle East, especially in Saudi Arabia, Iraq and Iran, and it may “result in the collapse of the shale-oil industry in the U.S. unless oil prices return to their prior levels,” MarketWatch reports.
While oil prices have quickly recovered after recently trading in the negative territory for the first time ever, Goldman Sachs warned that the rise in the oil price has been overdone and projects declines in Brent crude prices to $35 a barrel, from around $43 a barrel, in the weeks ahead.
Meanwhile, shale oil, which is produced through fracking or the controversial process of pumping high-pressure water and sand underground to fracture rock and release valuable new energy reserves known as shale, may be particularly affected due to the high cost of extracting oil through this method.
The IEP pointed out that warned that the combined weakness in commercial, travel and industrial activity contributed to the rapid price decline in global oil markets. “These markets were already affected by an oversupply, emanating from Russia and Saudi Arabia who could not agree on production curbs,” it added.
The race for a coronavirus cure is picking up speed.
https://ih.advfn.com/stock-market/stock-news/82654109/moderna-viacomcbs-goldman-sachs-stocks-that-def
This summer three experimental vaccines will enter Phase 3 trials, the final stage of testing meant to determine their safety and effectiveness, The Wall Street Journal reported on Wednesday.
Moderna's vaccine is set to be first, (MRNA)
followed by one co-developed by Oxford University and AstraZeneca PLC (AZN)
and one by Johnson & Johnson. (JNJ)
Moderna shares gained 3.2% Wednesday.
.
.
.
J&J exec: Our coronavirus vaccine is aiming for a 70% success rate in trials
https://finance.yahoo.com/news/jj-coronavirus-vaccine-aims-for-70-success-rate-125444337.html
Emergent (EBS) to Manufacture AstraZeneca's Coronavirus Vaccine
https://finance.yahoo.com/news/emergent-ebs-manufacture-astrazenecas-coronavirus-125112928.html
Small-cap Emergent BioSolutions (NYSE:EBS) has landed another contract to manufacture a possible COVID-19 vaccine, this time with European pharmaceutical giant AstraZeneca. Of course, the contract, said to be worth as much as $87 million, hinges on whether AstraZeneca's vaccine gets approved by the Food and Drug Administration for human use.
Emergent is a contract development and manufacturing organization that has relationships with many biotech and pharmaceutical companies (not to mention the federal government). Back in April, it inked a similar deal with Johnson & Johnson worth up to $135 million.
https://www.fool.com/investing/2020/06/11/emergent-biosolutions-will-manufacture-astrazeneca.aspx
Teva Wins Narcan Patent Battle — Sending Its Biotech Rivals Plunging
https://www.investors.com/news/technology/opioid-overdose-treatment-teva-wins-battle-copy-emergent-narcan/?src=A00220&yptr=yahoo
Emergent BioSolutions (EBS) and Opiant Pharmaceuticals (OPNT) stocks plunged Monday after Teva Pharmaceutical (TEVA) won the right to produce a knock-off their opioid overdose treatment, Narcan.
Kyle Bass Eyes 200-to-1 Leverage for New Bet on Hong Kong Crash
https://www.newsmax.com/finance/investinganalysis/kyle-bass-hong-kong-crash-currency/2020/06/10/id/971549/
The Dallas-based founder of Hayman Capital Management is starting a new fund that will make all-or-nothing wagers on a collapse in Hong Kong’s currency peg
Bass, best known for his prescient bet against subprime mortgages before the 2008 financial crisis, will use option contracts to leverage the new fund’s assets by 200 times, the people said, asking not to be identified discussing private information. While the strategy is designed to generate outsized gains if Hong Kong’s currency tumbles against the dollar, investors stand to lose all their money if the peg is still intact after 18 months.
The trade is audacious even for Bass, who profited handsomely during the subprime crisis but has since had less success with doomsday calls on everything from Japanese government bonds to the Chinese yuan. A vocal critic of China’s Communist Party, the 50-year-old investor wrote in a Newsweek op-ed last month that Hong Kong has become “ground zero for the ideological clash between democracy and heavy-handed Chinese communism.”
By taking aim at the city’s currency, Bass is betting he can time the demise of a dollar peg that has survived repeated speculative attacks since 1983 and wrongfooted big-name investors including George Soros.
EWH (HK), EWT(TW), EWY(KR), EWJ(JP), EWM(Malaysia)
.
.
East Asia ETF Breakdown: Hong Kong, Malaysia, And South Korea
https://seekingalpha.com/article/4208155-east-asia-etf-breakdown-hong-kong-malaysia-and-south-korea
This article is to initiate a comparative analysis on exchange-traded funds within the Emerging Market segment. Countries in discussion are Hong Kong, Malaysia, and South Korea. The Malaysia and Hong Kong ETFs are cost efficient options compared to the South Korea one.
Cramer noted Nvidia, AMD, Broadcom, Paypal, Nike, Apple and Facebook as good stocks to invest in.
https://markets.businessinsider.com/news/stocks/stock-market-warren-buffett-airlines-bruising-jim-cramer-2020-6-1029303528
Jim Cramer shakes up his Cramer Covid-19 Index
https://www.cnbc.com/2020/05/26/cramer-shakes-up-his-covid-19-index-wall-street-is-more-confident.html
.
.
.
.
.
Departing
Cramer dropped the following 10 stocks from the index, which span health care, real estate investment trust, exotics (miscellaneous), consumer packaged goods and home entertainment-oriented companies.
Becton Dickinson, -13% from April 24
Digital Realty, -7.79%
Freshpet, -6.73%
Inovio Pharmaceuticals, -0.89%
Inseego, -14.03%
Kimberly-Clark, -4%
NextEra Energy, -2.25%
Owens & Minor, 0.55%
Roku, -13.81%
Snap, 8.81%
“I am dropping 10 of the worst performers, replacing them with stocks that are better suited to this moment and more relevant,” Cramer said, adding that “some of these [former picks] are duplicative” of other stocks in the index.
Newcomers
DataDog, 69.82% from April 24
Splunk, 40.83%
Twilio, 78.63%
Etsy, 11.92%
Wix.com, 56.12%
Chegg, 57.33%
Target, 6.77%
S&P Global, 10%
Palo Alto Networks, 19.5%
Emergent BioSolutions, 14.61%
“With those 10 changes, I’m feeling pretty better about the Cramer Covid-19 Index,” Cramer said. “But — and this is a very big but — if the reopening goes smoothly and the economy comes roaring back, we’re going to need to abandon this whole index and swap into a totally different cohort of recovery stocks.”
“I don’t think we’re there yet, although I’m working on a separate recovery index so that we’ll be ready when it happens,” he said.
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.
5D15min__
5D15min__
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.
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.
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
MCS similar play to MGM but calls are cheaper.
MCS 7/17 $17.50C now $1.30. Should continue to climb as more things open up.
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.
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 ;
MCS 7/17 $17.50C now 0.95. Lots of room to move up still.
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.
‘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!
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.
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.
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.
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.
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.”
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
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.
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)
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.
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%.
ZM 7/17 $100P for $1.49. IMO Good risk reward play for Zoom to come back down to Earth from the moon.
GSX 10/16 $15P. If GSX goes the way of Luckin these will pay off.
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%.
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.
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
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.
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.
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.
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%.
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.
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)
#msg-168392100 EV Car | #msg-168069304 Chips | Earning Movers | #msg-168038398 Russia Stocks | NBA | #msg-167916330 Hot Stocks | #msg-167916330 Hot Social/EV Stocks | ||
i#msg-169116117 BioTech | #msg-166130658 Chips | China Amalyst | #msg-168163849 Chinese Stocks | #msg-166918252 Airlines, Cruises, Hotels, Entertainment and Dept. Stores | ||||
#msg-168038732 Solar Energy | #msg-168064215 Chips | Earnings Calendar | #msg-166997318 Chinese Stocks | Actual ER | #msg-162819256 High Short Stocks |
Currently Watching......Stocks with Unusually High Option Volume
Straddles and Strangles : ._. ._. ._. ._. Call Spread : ._. ._. Bear Spread : ._. ._. Calendar Spread : .Buffet-Bank. .China-Short. .HomeBuilder. ._. ._::DZZ:: dumbas Short List :: Gas : DTO
.....
OEX. ._. .n. .SSO. .SDS. .SRS. .SPY-$W::$INDU-$W::$INDU-GB::$INDU-Clay ::DJI Comp::QQQQ::Components::IV::QID::QLD. .2D::Chi_Gap::NASI::$CPCE::$VIX.:DDM-QLD-SSO. DTO .
SMH. .Top Comp.. .SMH: :USD: :SSG::MU. .SNDK::SGTL::GRMN::GOOG. .AAPL::BBH. . .Metal::DIA::Components::DXD::DDM::MZZ::DIA::$INDU-LL:::IWM Short on Fire
FXI. .FXP::CHU. .CHL::LFC. .PTR::BIDU. .ACH::EJ. .PCLN::BIDU::SSEC::BBH. .DNA::PPHM. .SRS::_. . .Metal::OIH. .Components::DIG. .DUG::DXO. ._::_.
SMN::_. ._: :VMW::SKF. .UYG::SKF::UWM. .TWM::IWM. ._::_.
How to Post a Chart or Pic
Technical Analysis: The Best 8 Profitable Chart Patterns
CNBC's Option Actions
Top Stock Movers
Options Trading Strategy Guide
1 Day Performance: http://www.finviz.com/fut_image.ashx?relative_d1.png&rev=634558894225290774
#msg-57129225 Options Trading Strategy depending on market conditions
Readings from Market Technician:
#msg-56388227 the OPTIONS HANDBOOK
#msg-35434610 An Introduction to Futures and Options (132 pages)
#msg-35434628 Options Complex (34 pages)
#msg-35434641 Trading In Futures-An Introduction (38 pages)
#msg-35434652 Options Strategies in a Bear Market (17 pages)
#msg-35434668 The Equity Options Strategy Guide (29 pages)
#msg-35434678 Understanding Equity Options (45 pages)
#msg-35434687 Technical and Fundamental Commodity Price Action (50 pages)
#msg-35434704 Strategy Options Guide (44 pages)
#msg-35946736 Trading with Parallel Trigger Lines
#msg-35606489 How Contango Affects Crude Oil ETF's and ETN's (USO, OIL, DBO)
#msg-35714738 How to Trade a PPT Day
!****************************************************************
#msg-59606684 Stikky Stock Charts
|| http://www.direxionshares.com/etfs || 3X Bull: BGU TNA ERX FAS || 3X Bear: BGZ TZA ERY FAZ || ETF Summary || 2X Commodity/Yen ETF || ETF Options ||
ETF | Large Cap | Small Cap | Energy | Financial | ||||
3x | BGU | BGZ | TNA | TZA | ERX | ERY | FAS | FAZ |
Top Holding | Top Holding | Top Holding | Top Holding | |||||
2x | DDM | DXD | UWM | TWM | DIG / DXO | DUG / DTO | UYG | SKF |
1x | IWB | DOG | IWM | RWM | XLE | DDG | XLF | SEF |
Options | Mar 35.0 call | Mar 30.0 call | Mar 40.0 call | Mar 10.0 call |
ETF | ||||||||
3x | SPXL | SPXS | TNA | TZA | ERX | ERY | FAS | FAZ |
Top Holding | Top Holding | Top Holding | Top Holding | |||||
2x | DDM | DXD | UWM | TWM | DIG / DXO | DUG / DTO | UYG | SKF |
1x | IWB | DOG | IWM | RWM | XLE | DDG | XLF | SEF |
Options | Mar 35.0 call | Mar 30.0 call | Mar 40.0 call | Mar 10.0 call |
Direxion 3X Russell Funds
|| http://www.direxionshares.com/etfs || 3X Bull: BGU TNA ERX FAS || 3X Bear: BGZ TZA ERY FAZ || ETF Summary || 2X Commodity/Yen ETF || ETF Options ||
ETF | Large Cap | Small Cap | Energy | Financial | ||||
3x | BGU | BGZ | TNA | TZA | ERX | ERY | FAS | FAZ |
Top Holding | Top Holding | Top Holding | Top Holding | |||||
2x | DDM | DXD | UWM | TWM | DIG / DXO | DUG / DTO | UYG | SKF |
1x | IWB | DOG | IWM | RWM | XLE | DDG | XLF | SEF |
Options | Mar 35.0 call | Mar 30.0 call | Mar 40.0 call | Mar 10.0 call |
ETF | ||||||||
3x | SPXL | SPXS | TNA | TZA | ERX | ERY | FAS | FAZ |
Top Holding | Top Holding | Top Holding | Top Holding | |||||
2x | DDM | DXD | UWM | TWM | DIG / DXO | DUG / DTO | UYG | SKF |
1x | IWB | DOG | IWM | RWM | XLE | DDG | XLF | SEF |
Options | Mar 35.0 call | Mar 30.0 call | Mar 40.0 call | Mar 10.0 call |
|| Large/Small Cap Comparison || Russell 1000 Index || ETF - Bios || 36 New Fund || 36 New Fund ||
. . . . . . . . . . . . . . . . . . . Russell 2000. . . . . TNA. . .
.. :.. :
. . . . . . . . . . . . . . . . . . . SMH 3x. . .
.. :.. :
. . . . . . . . . . . . . . . . . . . OIL 3x. . .
.. :
.. :
.. :
Gas
.. :
.. :
Solar
.. :
Bio
.. :
.. :
.. :
. . . . . . . . . . . . . Chinese Internet. . .BABA JD PDD TCEHY VIPS BIDU TME NTES TCOM BILI YY BEKE DADA DIDI
.. :.. :
. . . . . . . . . . . . . . . . . . . . .
.. :.. :
. . . . . . . . . . . . . . . . . . . Chinese EV/Solar stocks. . .
.. :.. :
. . . . . . . . . . . . . . . . . . . Chinese Education stocks. . . .
.. :.. :
. . .. . . . . . . . . . . . . . . . . . . Chinese Internet stocks. . . . .
.. :.. :
. . . . . . . . . . . . . . . . . . . HK 3x ETF . . .
.. :.. :
. . . . . . . . . . . . . . . . . . . Good ER. . .
.. :
.. :
.. :
. . . . . . . . . . . . . . . . . . . Bad ER. . . . . . . . . . . . . . . . . . . .
.. ::
.. :.. :
.. :
recent IPO
.. :
.. :
. . . . VIX. . .inverse VIX ETF (SVXY, ZIV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIX ETF (UVXY, TVIX)
..
ETF. . .EWH (HK), EWT(TW), EWY(KR), EWJ(JP), EWM(Malaysia)
ishares msci etf => https://www.ishares.com/us/products/etf-investments#!type=ishares&fr=43526&fc=43537%7C43769%7C43544%7C43568%7C43570%7C43571%7C43579%7C43582%7C43593%7C43606%7C43614%7C43617%7C43624%7C43628&usS=136&usS3=144%7C159%7C162%7C165%7C168%7C171%7C174&view=keyFacts
..
..
..
.
..
ProShares UltraProshares: https://www.proshares.com/funds/umdd.html
Leveraged 3X Long/Bull ETF List: https://etfdb.com/themes/leveraged-3x-long-bull-etfs/
Leveraged 3X Inverse/Short ETF List: https://etfdb.com/themes/leveraged-3x-inverse-short-etfs/
. . . . . . . . . . . . . . . . . . . . SPY. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . Tech . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Emerging Market . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . Developed Market . . .
http://www.velocitysharesetns.com/tvix
http://etfdb.com/index/nasdaq-biotechnology-index/
http://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=1&mn=9&dy=0&id=p14393644199
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |