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Apr 03, 2020
The U.S. economy actually lost jobs on Friday, after a decade of gains, and the employment situation will likely only get bleaker as the nation remains closed for business to stem the spread of the deadly new coronavirus.
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Apr 03, 2020
A nationwide closure would be crushing for the company, crippling its distribution network amid a spike in demand for Amazon's delivery service.
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Apr 03, 2020
Stifel's Chief Economist Lindsey Piegza joins Yahoo Finance Live to take a closer look into the March jobs report, the state of the U.S. economy, and what this all means for small business owners in light of coronavirus.
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Apr 03, 2020
Top news and what to watch in the markets on Friday, April 3, 2020.
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Apr 03, 2020
(Bloomberg) -- President Donald Trump convened an extraordinary gathering of the oil industry's competing factions at the White House on Friday, as a global pandemic and oil-price war weigh on markets.Chief executives of the nation's biggest refiners and producers met to discuss possible relief efforts from the administration, including potential cuts in U.S. production to bring the price of crude back from a historic plunge, according to people familiar with the matter.But there are deep divisions among the various factions over what should be done, especially on the question of possible tariffs on Saudi Arabian oil, which may force Trump to make a difficult decision that could hurt some executives who are among his most ardent supporters."We'll get our energy back," Trump said during a portion of Friday's meeting that was open to reporters. "I'm with you 1,000%. It's a great business, it's a very vital business and honestly, you've been very fair. You've kept energy prices reasonable for a long period of time."Trump has sought to forge an agreement with Russia and Saudi Arabia to end their price war by cutting back on production, a move that could boost prices and help drillers and refiners located in states like Texas and Louisiana that are crucial to his re-election in the fall. Canada is also in talks with OPEC and the U.S. about the state of the global oil market.But it isn't clear whether Russia and Saudi Arabia would agree to cut output unless the U.S. also takes part -- a move that would be
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Apr 03, 2020
U.S. airlines must refund passengers when they cancel flights due to the coronavirus pandemic, the federal government said Friday, a blow to at least two carriers that have been making it difficult for customers to recover their money. The pro-consumer move is consistent with the U.S. Department of Transportation's usual policy, though there was some […]
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Apr 03, 2020
(Bloomberg) -- Altria Group Inc. pulled out of the e-cigarette market in the fall of 2018 because of a secret deal with rival Juul Labs Inc. -- not because of the public-health concerns it cited publicly at the time, according to U.S. antitrust officials.The Federal Trade Commission revealed the agreement between the two companies in an antitrust complaint made public Friday. The complaint cites new evidence about the negotiations between the two companies that resulted in Altria's $12.8 billion investment in Juul in December 2018.The complaint from the FTC, which sued on Wednesday to block the deal and ordered Altria and Juul to unwind the investment, states that Altria pulled its MarkTen product from the market as a condition of investing in Juul.Juul's "executives made clear their position that Altria could not remain a competitor in the relevant market if there was to be a deal," according to the complaint. During negotiations, Juul insisted, "and Altria recognized, that Altria's exit from the e-cigarette market was a non-negotiable condition for any deal."Altria had told the Food and Drug Administration in an Oct. 25, 2018, letter that it believed kids shouldn't use tobacco and it would remove its e-cigarette products MarkTen Elite and Apex by MarkTen from the market, and remove all flavors except for menthol and mint from its other, similar products. On Dec. 7 of that year, the maker of Marlboro cigarettes announced it was winding down the rest of the e-cigarette business. Less than two weeks later, A
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Apr 03, 2020
I'm not so much a bear as a realist and not buying into the notion that this is a temporary dip followed by a huge rebound. Voluminous job losses and bankruptcies could lead to permanent wealth deviation.
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Apr 03, 2020
Tech giant Google published statistics on whether or not the coronavirus lockdowns have been effective around the world. Yahoo Finance's Tech Editor Dan Howley weighs in.
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Apr 03, 2020
The coronavirus pandemic isn't done yet, bringing pressure to the stock market, pros say.
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Apr 03, 2020
Banks were supposed to start processing loan applications on Thursday at midnight from small businesses under the $349 billion Paycheck Protection Program, but they weren't prepared for the onslaught.
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Apr 03, 2020
Despite the economic shutdown in large parts of North America, all of the initial reads on the cannabis sector have surprisingly been positive. Due to the medical cannabis aspects of the sector, most retail stores have been deemed essential allowing for the stores to remain open.Consumers from the U.S. and Canada have flooded retail stores and online websites to buy up cannabis products due to fears of and economic shutdown and potential store closures. Oddly though, the stocks haven't generally rebounded despite positive sector trends as 2020 starts.Areas from California and Washington saw sales jump approximately double during the period from March 13 to March 17. Average store revenues were up roughly 100% at more than 1,300 stores using cannabis e-commerce platform Jane Technologies. Several other metrics saw massive product demand during mid-March.All of the news isn't bullish as Massachusetts closed recreational cannabis stores, Nevada stores are seeing declining sales due to a lack of tourists and Canopy Growth closed 23 stores in Canada. In addition, sales are already seeing a return to normal levels as customers pull back from aggressive buying once realizing the stores will remain open even during lockdown.Several cannabis companies have recently reported solid quarterly reports that should only benefit from increased sales during the coronavirus outbreak along with company specific catalysts in 2020.We've delved into these three companies with solid earnings and positive outlooks for a strong March quarter
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Apr 03, 2020
Webex and rival meeting platforms from Zoom and Microsoft Corp's Teams are being used worldwide to host everything from virtual classrooms and business meetings to church services, as people stay at home to restrict the spread of the pandemic. It was, however, not clear if the number was comparable with Cisco's due to the different ways the companies calculate meeting attendees.
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Apr 03, 2020
In the latest edition of Yahoo U, Yahoo Finance's Brian Cheung joins the On The Move to break down the difference between jobless claims and the unemployment rate.
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Apr 03, 2020
Stocks drop drastically after unemployment hits 4.4%. House Minority Leader (R) California Rep. Kevin McCarthy addresses the latest job cuts numbers during the COVID-19 outbreak.
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Apr 03, 2020
(Bloomberg) -- Russian President Vladimir Putin said his country is prepared to take part in deep cuts in oil production together with Saudi Arabia and other major producers to halt the slide in prices, echoing an announcement by his U.S. counterpart Donald Trump."We are ready to reach terms with partners within the framework of OPEC and are ready to cooperate with the United States on this issue," Putin said on Friday during a video conference with top government officials and oil executives. "I believe that it is necessary to combine efforts in order to balance the market and reduce output."Russia sees a reduction in global oil production of about 10 million barrels a day as possible, and is ready to participate in this "on a partnership" basis, Putin said.Putin gave Russias's first confirmation of its willingness to take part in cuts announced by Trump Thursday in a Tweet that drove Brent prices up as much as 47%.The Kremlin's reversal reflects alarm at the sudden collapse in demand sparked by the coronavirus pandemic, which threatens a worldwide recession this year. As recently as two weeks ago, Putin was resisting any concessions in the stand-off with Saudi Arabia since Moscow pulled out of a supply-limit agreement with the Organization of Petroleum Exporting Countries over demands for deeper cuts in output. That prompted Saudi Arabia to flood the market with oil, driving prices to an almost two-decade low amid a glut in supply because of a sharp fall-off in consumption.Putin, who spoke with Trump about t
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Apr 03, 2020
(Bloomberg) -- The market for mortgage-backed securities was in free fall, with fear running rampant and banks seizing collateral.So Tom Barrack, the chairman of real estate investment trust Colony Capital Inc., published an 1,800-word plea for the Federal Reserve to buy bonds backed by homes, cars and other assets and for banks to halt margin calls.That was last Saturday. In the week since, three top investors in the sector have engaged restructuring advisers, two others sold $7 billion of debt at a discount and publicly traded mortgage REITs in the U.S. lost more than $12 billion of market value, bringing total declines this year to at least $50 billion.The carnage shows no signs of abating. Prominent asset managers including Blackstone Group Inc., TPG and Apollo Global Management Inc. have been sucked into the vortex wrought by the coronavirus pandemic, with their associated mortgage REITs losing more than two-thirds of their value on average so far in 2020.The pandemic has crippled commerce across the U.S., putting almost 10 million people out of work in a matter of weeks and sparking fears that huge numbers of businesses and individuals will fail to make rent and mortgage payments. As a result, investors are fleeing from residential and commercial debt that isn't backstopped by the federal government.Read more: Nobody knows what will happen when the rent comes due on April 1"Nobody wants to buy those securities when the underlying contracts are not performing," especially when it remains unc
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Apr 03, 2020
'This surprisingly high level of bullishness supports our own view that we haven't yet seen investor capitulation, echoing what we've seen in other data sets,' writes RBC's head of U.S. equity strategy Lori Calvasina.
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Apr 03, 2020
The Department of Labor released its monthly jobs report on Friday, showing a loss of 701,000 jobs. KPMG Chief Economist Constance Hunter shares her take on the report with the On The Move panel.
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Apr 03, 2020
Executive Summary: Two weeks ago we predicted that the U.S. death toll from COVID-19 would reach 20,000 by April 15th. The following article explains why. Article: I am furious and frustrated. Once the greatest country on the face of this planet, the United States is going hat in hand to China, begging for a […]
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Apr 03, 2020
The Department of Labor released its monthly jobs report on Friday, showing a loss of 701,000 jobs. KPMG Chief Economist Constance Hunter shares her take on the report with the On The Move panel.
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Apr 03, 2020
Due to the COVID-19 pandemic, Disney is set to furlough non-union park employees beginning April 19. Yahoo Finance's Dan Robert joins On The Move to break down the latest developments.
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Apr 03, 2020
GoHealth Urgent Care CEO Todd Latz joins Yahoo Finance's On The Move panel to discuss how the urgent care facility is helping in the fight of the coronavirus pandemic.
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Apr 03, 2020
Yahoo Finance reporter Akiko Fujita sat down with Best Western CEO David Kong to discuss how the hotel industry is faring during the coronavirus outbreak.
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Apr 03, 2020
RSM Chief Economist Joe Brusuelas joins Yahoo Finance's On The Move to address the massive number of job cuts in March.
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Apr 03, 2020
The second quarter of 2020 started with a slide in the markets, as the glum mood came after President Trump acknowledged publicly that the first two weeks of April are likely to see a rise in deaths from COVID-19, as the epidemic intensifies.In one way, this is to be expected - the disease has an incubation period up to 14 days, and course of illness lasting up to 14 cases, in cases with notable symptoms. The majority of cases are reported as mild, but the disease, as we know can be deadly in more severe cases. The social distancing moves, imposed through lockdowns and quarantines, are pounding the economy - but also slowing the spread of COVID-19. But they were implemented some two to three weeks ago, so the natural course of the disease, in those exposed before the lockdown policies took hold, is reaching its peak now, The good news is, the success of social distancing policies is slowing the disease spread, allowing hospitals to cope.Downturns can present buying opportunities for contrarian-minded investors. Investment firm Needham has recently been thinking along these lines and came out with reports on stocks that should rally when the spread of COVID-19 will stabilize, or actually benefit from the current situation.We've taken three of Needham's top picks and looked them up in the TipRanks database. These are investments that TipRanks reveals as "Strong Buys" and, more importantly, all three offer robust upside potential. Let's take a closer look. EverQuote, Inc. (EVER)Everyt
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Apr 03, 2020
U.S. Chief Economist at S&P Global Beth Ann Bovino joins Yahoo Finance's Alexis Christoforous, Brian Sozzi and Heidi Chung to discuss what the latest jobs report reveals about the state of the economy.
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Apr 03, 2020
The People's Republic of China securities regulator said Friday that it will investigate Luckin Coffee Inc.'s (NASDAQ: LK) finances, as reported by Reuters.What Happened The China Securities Regulatory Commission "strongly condemns" financial misconduct by Luckin, the report said. The matter will be investigated and the agency said it will crack down on securities fraud, Reuters reported. In a filing with the United States Securities and Exchange Commission, Luckin withdrew its previous financial statements. The coffee chain company said that an internal investigation found that Chief Operating Officer Jian Liu had fabricated transactions over the past year.Luckin Coffee has been a major competitor to Starbucks Corporation (NASDAQ: SBUX) in China, and has surpassed the Seattle-based giant in terms of the number of outlets operating in the country.LK Price Action Luckin's shares closed 75.57% lower at $6.40 on Thursday. The stock was down another 1.95% at $6.28 at the time of publication Friday. Photo by N509FZ via Wikimedia. See more from Benzinga * Starbucks Invests 0M To Start First Asia Roastery In China By 2022 * China, Japan Stocks Edge Lower As Coronavirus Fears Continue, South Korea Recoups(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Apr 03, 2020
(Bloomberg) -- A federal program to issue rebates to consumers toward new vehicles could provide a much-needed jolt to the U.S. auto industry that's seen plants idled and showrooms emptied by the coronavirus, according to the Obama administration official who oversaw the program known as "cash for clunkers."Ray LaHood oversaw the program officially named Cars Allowance Rebate System as U.S. Transportation Secretary in 2009. In an interview, he backed a Ford Motor Co. executive's suggestion that a sequel to the program could be helpful if the industry, lawmakers and the Trump administration agree that auto demand needs a boost once the virus begins to abate."It was a lifeline to the car dealers whose showrooms were looking pretty bleak without any customers, and I think if you talk to anybody in the automobile industry it was the beginning of the lifeline for the automobile industry from the Obama administration," LaHood said Thursday. "If they can model something differently to suit the current-day situation, I'm for that."Carmakers, suppliers and dealers have grown increasingly nervous about their near-term prospects as the virus has ground the industry to a halt and spurred discussion about possible need for government support. New vehicles sold at the slowest pace in a decade in March as government directives closed broad swaths of the economy to thwart the spread of the virus. Nearly every U.S. auto factory has been idled and executives will be hard pressed to restart them until consumers begin to buy
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Apr 03, 2020
A price war between world oil producers has slashed Venezuela's revenue for its top export and exacerbated the country's financial crisis as it also faces the coronavirus pandemic, U.S. sanctions and sliding crude output. More than 90% of Venezuela's export revenue comes from oil. Three weeks ago President Nicolas Maduro called crashing oil market a "brutal blow" that dropped the price below the cost of production.
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Apr 03, 2020
The company also plans to tap debt markets to bolster its reserves as the pandemic compounds its own troubles, including integration issues with its TNT Express acquisition, higher costs related to launching Sunday home delivery and the loss of Amazon.com Inc as a customer. The company said its board had approved a 91% reduction in CEO Frederick Smith's base salary for the six-month period from April 1 to Sept. 30. FedEx and larger rival United Parcel Service have asked the U.S. Treasury to move quickly to release billions of dollars in government grants and loans to support the sector amid falling demand.
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Apr 03, 2020
(Bloomberg) -- Nonbank financial firms spent years lobbying against tougher regulation and stricter capital requirements, arguing that their emerging dominance in mortgage lending didn't pose a risk to the financial system.Now, many of those companies say they are in desperate need of a bailout to stave off bankruptcy and a potential collapse of the U.S. housing market.Any rescue might not come quickly, as regulators are holding off on providing additional help to see if policies already put in place ease the industry's expected cash crunch, according to people familiar with the matter. That could lead to anxious moments for Quicken Loans, Freedom Mortgage, Mr Cooper Group Inc. and other nonbank mortgage firms.Read More: U.S. Holds Off on Extending Virus Aid to Mortgage ServicersFederal mortgage watchdogs didn't predict a pandemic like coronavirus grinding the economy to halt, but many of them did see a potential nonbank liquidity crisis coming. Their efforts to impose more safeguards ran aground against mortgage-industry resistance and bureaucratic reticence to slow the fastest growing source of U.S. home loans, according to industry experts and former government officials.When government-owned Ginnie Mae tried to require stress tests and higher capital and liquidity requirements, some "nonbanks were violently opposed to the idea," said former Ginnie president Michael Bright. One small lender told Bright that if an event similar to the proposed stress scenario were to take place, he'd just hand Ginni
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Apr 03, 2020
Alicia Levine, BNY Mellon Chief Strategist, joins Yahoo Finance's Alexis Christoforous, Brian Sozzi and Jared Blikre to discuss the latest market action.
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Apr 03, 2020
(Bloomberg) -- Russia's oil industry is ready to agree to cuts in production together with Saudi Arabia and other major producers in a desperate bid to halt the slide in prices, according to five people familiar with the efforts.While the Kremlin hasn't confirmed a willingness to take part in reducing crude output by 10 million barrels, as announced by U.S. President Donald Trump Thursday in a Tweet that drove Brent oil prices up as much as 47%, Russian producers are ready for coordinated action, said the people, who spoke on condition of anonymity because the matter isn't yet public.President Vladimir Putin will meet oil executives and officials to discuss the situation on the world energy markets later on Friday, the Kremlin said.The Russian reversal reflects alarm at the sudden collapse in demand sparked by the coronavirus pandemic, which threatens a worldwide recession this year. As recently as two weeks ago, Putin was resisting any concessions in the stand-off with Saudi Arabia since Moscow pulled out of a supply-limit agreement with the Organization of Petroleum Exporting Countries over demands for deeper cuts in output. That prompted Saudi Arabia to flood the market with oil, driving prices to an almost two-decade low amid a glut in supply because of a sharp fall-off in consumption.Russia and Saudi Arabia could reach a deal to restrict output at an April 6 meeting of OPEC and other oil-producing nations aimed at increasing prices to $30, according to Andrey Kortunov, director of the Kremlin-founded Russian I
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Apr 03, 2020
Deep output cuts by OPEC and other oil producing nations will not prevent a huge build up of crude, the head of the IEA said on Friday, urging the world's richest economies to discuss broader ways to stabilise oil markets. Fatih Birol, executive director of the International Energy Agency, told Reuters that measures to contain the spread of the coronavirus had lead to an "unprecedented" demand loss that could reach as much as a quarter of global consumption. Birol spoke to Reuters after speaking to Saudi Arabian Energy Minister Prince Abdulaziz bin Salman ahead of a meeting of OPEC and its allies, known as OPEC , on Monday to discuss cutting output to reverse the collapse in oil prices.
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Apr 03, 2020
Investment bank Goldman Sachs has been analyzing the market performance, and has a mixed outlook for the year - not necessarily bad news for the long term, but an acknowledgement that we're not completely certain what the economic cycle has in store. David Kostin, Goldman Sachs' chief U.S. equity strategist, predicts that the market has not found its true bottom yet, and has to meet three conditions before it can. Kostin notes that the current peak-to-trough time, of just 23 trading days, is an order of magnitude faster than the median - which stands at 17 months. But there is hope on the horizon: Kostin also believes that the S&P can finish out the year at 3,000.The three conditions Kostin sees as essential to a true market bottom are: A slow in the viral spread in the US, allowing investors to understand the actual economic impact; evidence that policy actions by the Federal Reserve and Congress are showing success in limiting the damage; and a bottoming out in both investor sentiment and positioning.Once the bottom is reached, Kostin sees a quick rebound in the offing. With that in mind, Goldman's stock analysts remind investors that compelling opportunities can still be found. Using TipRanks database, we were able to pinpoint 3 stocks that are Buy-rated and backed by the analysts from Goldman Sachs as well as the rest of the Street. To top it all off, each stands to see over 35% gains in the next year. Columbia Property Trust (CXP)We'll start in commercial real estate, with an REIT focused on urba
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Apr 03, 2020
The ratio of Hackett's annual compensation to the median of the annual compensation of all employees was 157 to 1, Ford said. Executive Chairman William Ford received a total salary of $16.8 million in 2019, up from $13.8 million in 2018. Government orders for social distancing and businesses to shut in the face of the coronavirus pandemic has stalled demand across the auto industry and sent companies scrambling to cut costs and beef up liquidity.
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Apr 03, 2020
The European Medicines Agency (EMA) on Friday recommended Gilead Sciences Inc's investigational antiviral drug remdesivir should be used for treating COVID-19 in compassionate use programmes. Compassionate use is the use of an unauthorised medicine outside a clinical study in individual patients under strictly-controlled conditions. The EMA said https://bit.ly/2xPfFww remdesivir has been shown to be active against the new coronavirus that causes COVID-19 in laboratory studies, but added there were limited data on its effectiveness.
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Apr 03, 2020
(Bloomberg Opinion) -- Banks insist they're in much better shape than they were during the run-up to the 2008 financial crisis. This time, as the coronavirus lockdowns wreck output, lenders can be "doctors of the economy," in the words of one industry executive. True, banks have much larger capital buffers and better access to funding than was the case 12 years ago. How smart they've been at running their trading businesses remains to be seen.Some of Europe's biggest banks have gone into the worst economic contraction since the Second World War sitting on huge piles of complex, risky trades whose fair value is hard to determine. These are the so-called Level 2 and Level 3 assets, the types of instruments that blew up in 2008.Valuations of Level 2 assets — mainly over-the-counter derivatives and illiquid stocks — are derived from using observable external measures, such as the price of similar instruments traded in the market. Level 3 assets are the most illiquid instruments, whose prices depend on inputs that aren't observable to outsiders. Unlike Level 1 assets, which have easily viewed market prices, investors have to rely on banks' internal models, and own judgments, to get a handle on the Level 2 and Level 3 exposure. Fair values for the same instrument might easily differ from firm to firm.The absolute size of these risky asset pots — totaling several hundred billions of dollars at many of the largest banks — is eye-watering. They dwarf the lenders' capital by many multiples. Take Deutsche Bank AG: Its stock o
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Apr 03, 2020
Stock futures kicked off the overnight session roughly flat Thursday as market participants considered mounting signals of labor market devastation amid the still-escalating coronavirus pandemic.
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Apr 03, 2020
Unfortunately for some shareholders, the People's United Financial (NASDAQ:PBCT) share price has dived 31% in the last...
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Apr 03, 2020
(Bloomberg) -- With just one tweet, U.S. President Donald Trump conjured up the prospect of a global oil alliance to rescue the industry from the worst shock in history. The question is whether it evaporates just as quickly.After the president's social-media intervention on Thursday, oil traders are frantically assessing whether Saudi Arabia, Russia and possibly even the U.S. -- the world's three biggest producers -- are poised to strike a once-unthinkable grand bargain to cut daily supplies in unison by 10 million to 15 million barrels.It's unclear whether it's feasible -- or even legal -- for such a coalition to come together. Or indeed whether it would be enough to tame the tsunami of unwanted crude now bearing down on world markets, which could be two to three times bigger than the cut touted by Trump."It's too little, too late," said Ed Morse, head of commodities research at Citigroup Inc. "Cuts are required immediately, and unless they happen, the price is going to go down significantly and force them to happen."There's no doubt that the industry could benefit from some intervention. With global oil demand slashed roughly a third by the coronavirus pandemic, a gusher of surplus crude threatens to overwhelm the world's storage tanks in a matter of months. The meltdown is exacerbated by the dispute between Moscow and Riyadh, prompting the Gulf kingdom to push unprecedented volumes of crude at customers in a tussle for market share.Texas Two-StepTrump's claim that the two belligerents are ready to end their price
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Apr 03, 2020
The Department of Labor released the March 2020 jobs report at 8:30 a.m. ET.
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Apr 03, 2020
Jim Cramer said on CNBC's "Mad Money Lightning Round" AbbVie Inc (NYSE: ABBV) traded lower on COVID-19, but he likes its dividend yield and it remains a great stock. It's a big position for his charitable trust fund.Clarivate Analytics PLC (NYSE: CCC) is a research company, but Cramer hadn't thought of it as a COVID-19 play. He needs to do more research to see if it is worth buying on that.Cramer is a buyer of Domino's Pizza, Inc. (NYSE: DPZ). He believes the company has a great delivery, which makes it a terrific investment.There is too much supply in the oil and gas pipelines sector, thinks Cramer. He doesn't like pipelines and natural gas anymore and he doesn't like Kinder Morgan Inc (NYSE: KMI).See more from Benzinga * RNC Genter Capital CEO Likes Tech, Health Care, Financials In Volatile Market(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Apr 03, 2020
Shares plummet 80% for China's coffee giant Luckin Coffee after an investigation found that the company's COO fabricated sales. Yahoo Finance's On The Move panel discusses.
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Apr 03, 2020
The analysts covering CarMax, Inc. (NYSE:KMX) delivered a dose of negativity to shareholders today, by making a...
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Apr 03, 2020
Shares of Sysco Corporation (NYSE: SYY) were lower by around 13% Wednesday afternoon following a Tuesday New York Post report which suggested the food distributor giant temporarily stopped selling fresh meat and produce.Sysco's Memo To Customers Food wholesalers and distributors are scrambling to alter their business model to account for major losses at restaurants, hotels, schools and other large institutions, according to the Post.Sysco, the country's largest food distributor, told its non-supermarket customers in a memo that it will focus on frozen chicken, beef, seafood and vegetables "for the interim period."Sysco also said in its memo that it will no longer deliver products on Saturdays and no longer accept returns, the Post said.The company can no longer guarantee shipping dates, as it is looking to save on transportation costs by consolidating shipping routes, the report said. In addition, a company filing confirmed it fired and furloughed workers across sales, warehouse, transportation and functional support teams.'Less Pressure To Sell It Quickly'A Sysco customer told the Post it believes the food distributor is "afraid to bring in too much fresh food, because they don't know what the need will be."On the other hand, distributing frozen meats has its advantages, including cheaper costs compared to fresh, David Bishop, a partner at supermarket consultant Brick Meets Click, told the Post."There is also less pressure to sell it quickly and it protects Sysco and the customer from the product goi
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Apr 03, 2020
(Bloomberg Opinion) -- Banks insist they're in much better shape than they were during the run-up to the 2008 financial crisis. This time, as the coronavirus lockdowns wreck output, lenders can be "doctors of the economy," in the words of one industry executive. True, banks have much larger capital buffers and better access to funding than was the case 12 years ago. How smart they've been at running their trading businesses remains to be seen.Some of Europe's biggest banks have gone into the worst economic contraction since the Second World War sitting on huge piles of complex, risky trades whose fair value is hard to determine. These are the so-called Level 2 and Level 3 assets, the types of instruments that blew up in 2008.Valuations of Level 2 assets — mainly over-the-counter derivatives and illiquid stocks — are derived from using observable external measures, such as the price of similar instruments traded in the market. Level 3 assets are the most illiquid instruments, whose prices depend on inputs that aren't observable to outsiders. Unlike Level 1 assets, which have easily viewed market prices, investors have to rely on banks' internal models, and own judgments, to get a handle on the Level 2 and Level 3 exposure. Fair values for the same instrument might easily differ from firm to firm.The absolute size of these risky asset pots — totaling several hundred billions of dollars at many of the largest banks — is eye-watering. They dwarf the lenders' capital by many multiples. Take Deutsche Bank AG: Its stock o
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Apr 03, 2020
U.S. President Donald Trump will meet with oil company executives at the White House on Friday to discuss a historic oil-price slump threatening their businesses, brought on by the coronavirus outbreak and a Saudi-Russia price war. Trump said on Thursday Saudi Arabia and Russia had agreed to cut output by an unprecedented 10 million to 15 million barrels per day (bpd), representing 10% to 15% of global supply, after he discussed the issue with their leaders. Trump said in a press conference that he made no concessions to Saudi Arabia or Russia and did not agree to a U.S. production cut.
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Apr 03, 2020
Oil's collapse has become more of a demand issue, making a potential deal between Russia and Saudi Arabia less impactful, says oil analyst and editor of The Schork Report Stephen Schork.
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Apr 03, 2020
Trump said on Thursday he had brokered a deal between the two, but made no offer to reduce U.S. output, and benchmark Brent oil futures surged 21% in a record one-day rise. * "Although the discussions about possible cooperation between the oil-producing countries may be able to support the oil price at the moment, we believe that the reality on the oil market is much more gloomy." * Even cuts of 5 million bpd from levels in the first quarter of 2020 by core OPEC members and 2 million bpd from the U.S. lower-48 region and "accelerated declines elsewhere" would not change a likely global oil surplus of 9 million bpd this quarter.
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Apr 03, 2020
Campbell Soup Company (NYSE:CPB) stock is about to trade ex-dividend in 4 days time. If you purchase the stock on or...
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Apr 03, 2020
(Bloomberg) -- The OPEC coalition is pushing for other major oil producers to join it in a deep reduction of global crude output to stem the historic rout in prices.A global cut of 10 million barrels a day is a realistic goal, according to a delegate, who spoke on condition of anonymity. OPEC , an alliance led by Saudi Arabia and Russia, has already scheduled a virtual meeting on Monday and wants other nations to join talks as soon as possible.The 10 million figure was first touted by President Donald Trump on Thursday, who called for a coordinated production cut. He made no indication whether the U.S. would take part. For Saudi Arabia, it's essential that producers including the Americans join in.Trump is meeting oil executives later on Friday.There are enormous obstacles to any deal. Russia was quick to deny on Thursday that any agreement had been reached. Even if an accord can be struck, a cut of 10 million barrels would barely dent the glut of oil that has been created by the economic fallout of the coronavirus pandemic. Traders estimate the lost demand could be as high as 35 million barrels.Oil JumpsBrent crude, which jumped more than 40% on Thursday after Trump's announcement before paring gains, rose 11% on Friday. It's still down 50% this year as the virus fight grounds planes and shutters huge swaths of the global economy.In some corners of the market, physical prices have gone negative and some producers are expected to start suspending output as there's not enough space to store the ex
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Apr 03, 2020
U.S. immigration officials say they have a plan if detention centers get hit with coronavirus outbreaks: They will transfer detainees with serious symptoms to hospitals with "expertise in high risk care." Detention center outbreaks in such areas could quickly swamp local hospitals, threatening their ability to treat local residents along with detainees. About a third of the 43,000 immigrants in detention as of March 2 were housed at facilities that have only one hospital - or none - with intensive-care beds within 25 miles, according to a Reuters analysis of data from the American Hospital Directory and U.S. Immigration and Customs Enforcement (ICE).
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Apr 03, 2020
Top news and what to watch in the markets on Friday, April 3, 2020.
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Apr 03, 2020
(Bloomberg) -- The fallout from Luckin Coffee Inc.'s accounting scandal is spreading far beyond the high-flying Starbucks challenger, with renewed concerns about Chinese corporate governance dragging down stocks across industries and threatening to bring a halt to the country's overseas initial public offerings.The Xiamen-based company's announcement that its chief operating officer and some underlings may have fabricated billions of yuan in sales cast doubt on what was supposed to be one of China's fastest-growing companies. Luckin Coffee shares plunged as much as 81% in U.S. trading and CAR Inc., a rental company founded by Luckin Coffee's chairman, sank 54% in Hong Kong. Popular short-selling targets including Anta Sports Products Ltd. also slumped.Doubts over financial reporting have for years dogged Chinese stocks listed in the U.S. and Hong Kong, two exchanges frequently picked by company founders to raise new funds. And while China just recently changed regulation to punish instances of financial fraud onshore, the penalties remain negligible. Just last year, one of China's largest listed drug makers said it overstated cash holdings by more than $4.3 billion."After the Luckin incident, investors will be more careful when investing in Chinese companies that have a short founding history and rely on huge leverage to expand," said Jackson Wong, Hong Kong-based asset management director for Amber Hill Capital Ltd.Luckin's revelation is likely to put at least a temporary freeze on new U.S. listings by Chinese com
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Apr 03, 2020
Bitcoin looks to be on the brink of a major breakout as it coils up just beneath the crucial $7,000 level of resistance. The test of $7,000 comes after a volatile trading session that saw Bitcoin surge from $6,600 to $7,300 before being met with a substantial sell-off. Bearish pressure eventually pushed price back below $6,800, although a bounce this morning has lifted it back into a bullish posture. If Bitcoin can close Friday's daily candle and Sunday's weekly candle above $7,150 it would confirm a bullish breakout, which would pave the way towards continuation to the upside. Potential targets begin to emerge at both $7,400 and $7,850 if a breakout is to come into fruition, while a rejection from
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Apr 03, 2020
(Bloomberg) -- Tesla Inc.'s early-year deliveries fell less than expected from record levels reached late last year, winning support from investors who pushed the shares 14% higher ahead of Friday's open.Tesla handed over 88,400 vehicles worldwide in the first quarter, down 21% from the last three months of 2019. But the total beat analysts' average estimate for about 78,100. The carmaker's stock was priced at $516.21 in premarket trading, up from a close of $454.47 in New York."I'm shocked they did so well," Gene Munster, managing partner of venture capital firm Loup Ventures, said by phone. "I don't know how they did it. They had every excuse in the world to put out a bad number."Musk, 48, tried to salvage as much business as possible last month by introducing "touchless" deliveries at a time when authorities around the globe are urging would-be car buyers to shelter in place. While Tesla managed to deliver more vehicles than the year-ago quarter, the improvement was small considering the company added a new product -- the Model Y -- and opened an assembly plant in China.Tesla didn't give an update on whether it still expects to deliver at least 500,000 vehicles this year.Analysts anticipate Tesla will sustain a significant blow along with all other automakers from the spread of the viral illness known as Covid-19. With a global recession increasingly likely, consumers are expected to be less interested in making big-ticket purchases like new vehicles even once they're able to leave their h
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Apr 03, 2020
China's securities regulator said on Friday it would investigate claims of fraud at Luckin Coffee Inc and sources said some of the banks involved in the Chinese chain's successful U.S. IPO last year were reviewing their work in the listing. Shares of Luckin, which competes in China with Starbucks Corp , sank as much as 81% on Thursday in New York after it announced an internal investigation had shown its chief operating officer and other employees fabricated sales deals. The company said it had suspended COO Jian Liu and employees reporting to him following initial recommendations from a special committee that was appointed to investigate issues in its financial statements for the fiscal year ended Dec. 31, 2019.
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Apr 03, 2020
China's securities regulator said on Friday it would investigate claims of fraud at Luckin Coffee Inc, and sources said some of the banks involved in the Chinese chain's successful U.S. IPO last year were reviewing their work in the listing. Shares of Luckin, which competes in China with Starbucks Corp, sank as much as 81% on Thursday in New York after it announced an internal investigation had shown its chief operating officer and other employees fabricated sales deals. It said it has suspended COO Jian Liu and employees reporting to him following initial recommendations from a special committee that was appointed to investigate issues in its financial statements for the fiscal year ended Dec. 31, 2019.
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Apr 03, 2020
The generous U.S. unemployment benefits rolled out to blunt the economic harm caused by the coronavirus could have an unintended effect: it may actually be an incentive for companies to choose layoffs rather than keep staff on their books. The number of Americans filing for unemployment benefits last week shot up to more than 6 million, a record high, Labor Department data on Thursday showed. The CARES Act passed by Congress a week ago was designed to keep businesses and workers from economic freefall.
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Apr 03, 2020
(Bloomberg) -- In Saudi Arabia, there is one oil company, the state-run behemoth Saudi Aramco. This makes for a fairly simple process to set policy goals when the country negotiates output quotas with rivals.In the U.S., there are more than 6,000 oil drillers -- everything from tiny wildcatters in the shale patches of Texas and North Dakota to global giants like Exxon Mobil Corp.That would seem to make formulating a coherent U.S. negotiating stance next to impossible. And yet, President Donald Trump appears to be intent on seeking to broker a dramatic cut in output along with Saudi Arabia and Russia to prop up plunging prices.The president's triumphant tweet Thursday that Saudi Arabia and Russia are open to substantial production cuts quickly gave way to fears in some quarters that the U.S. and other non-OPEC producers would have to join them in slashing output to achieve the goal of giving severely depressed prices a boost.And Trump will likely face a bitterly divided oil industry when he meets with energy executives Friday to discuss the perilous state of world crude markets and the threat to U.S. shale fields.Oil soared as much as 35% after the presidential tweet, then pared gains after Saudi Arabia and Russia didn't confirm they had agreed to any cuts. The Saudis called for an urgent meeting of the OPEC alliance -- which includes Russia -- to reach a "fair deal" that would restore balance in the markets, state-run Saudi Press Agency reported.To satisfy Saudi Arabia's insistence that all share the
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Apr 03, 2020
(Bloomberg) -- U.S. stock index futures fell, erasing part of Thursday's rally, as global coronavirus infections continued to increase.S&P 500 Index futures expiring in June slid 0.9% as of 9:30 a.m. in London, after gaining 2.8% on Thursday. Contracts dropped 0.9% on the Nasdaq 100 Index and fell 1.1% on the Dow Jones Industrial Average. Global coronavirus infections surpassed 1 million, a milestone reached just four months after the first cases surfaced in China.In Europe, the Stoxx 600 Index was down 0.5%, weighed down by insurers and telecom shares. The euro-area economy is in a slump of unprecedented scale, with IHS Markit saying Friday its monthly measure of services and manufacturing points to an annualized economic contraction of about 10%."Sentiment in the market is still very fearful," said Dan Russo, chief market strategist at Chaikin Analytics. "The longer it takes to flatten the curve, the more prolonged the negative economic impact is likely to be, the longer it takes for businesses to get up and running again. Our base case remains that we are likely to retest the lows from last Monday."The underlying S&P 500 advanced 2.3% on Thursday, climbing for the first time in three days, with Chevron Corp and Exxon Mobil Corp. among the top gainers, after President Donald Trump said Russia and Saudi Arabia would cut production. Oil prices slid back below $25 a barrel after a record surge as doubts crept in about the deal.Consumer discretionary stocks weighed on the benchmark after jobl
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Apr 03, 2020
Yahoo Finance's Alexis Christoforous and Brian Sozzi discuss China's investigation into Luckin Coffee's alleged fake sales.
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Apr 03, 2020
Thousands of workers in General Electric Company's (NYSE: GE) aviation subsidiary are impacted as company furloughs half its aircraft engine manufacturing workforce.What Happened The ongoing coronavirus pandemic is hitting the aviation industry hard, as airlines ground planes and delay orders for new planes. The crisis is forcing GE aviation to furlough 50% of its staff for four weeks. This measure is in addition to the 10% cut in jobs announced last month.A GE Aviation spokesperson told CNBC, "Due to the unprecedented impact of COVID-19 on the commercial aviation industry, GE Aviation is implementing a temporary reduction in commercial engine assembly and some component manufacturing operations for up to four weeks." The spokesperson appreciated the commitment of GE Aviation's employees at "this difficult time," and said that the company regretted taking this action. Regarding the continuance of business, he said, "We will continue to deliver for our customers and preserve our capability to respond when the industry recovers."Why It Matters The aviation sector is grappling with the effects of the coronavirus pandemic. One of GE Aviation's customers, Boeing Co (NYSE: BA), announced earlier that it would offer voluntary layoffs to employees. Boeing employs 150,000 people globally. Airline workers, too, are facing a cut in working hours, with major carriers such as Delta Air Lines Inc. (NYSE: DAL), United Airlines Holdings Inc. (NASDAQ: UAL) reducing working hours.
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Apr 03, 2020
The latest analyst coverage could presage a bad day for Valero Energy Corporation (NYSE:VLO), with the analysts making...
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Apr 03, 2020
President Donald Trump criticized the mask maker 3M Co. (NYSE: MMM) in a tweet on Thursday.What Happened "We hit 3M hard today after seeing what they were doing with their [masks]," the president said, referring to the Defense Production Act imposed earlier in the day. "Big surprise to many in government as to what they were doing," he added. "[3M will] have a big price to pay!" Trump had imposed the act which gives the federal government rights over managing operations of the company during the novel coronavirus (COVID-19) pandemic. State governors and healthcare workers across the country have frequently called on the federal government to ramp up the supply of protective medical gear, including masks.Why It Matters The tweet came as the head of Florida's Division of Emergency Management Jared Moskowitz told Fox News that 3M was prioritizing selling to foreign governments at the expense of American healthcare workers. .@3M Hello again. Director of @FLSERT here. I have money, you have masks yet you won't sell them to me. Stop selling to foreign governments. @maddow @Forbes -- Jared Moskowitz (@JaredEMoskowitz) April 2, 2020"For the last several weeks, we have had a boiler room chasing down 3M authorized distributors [and] brokers representing that they sell the N95 masks, only get to warehouses that are completely empty," Moskowitz said. "[We are] being told that our shipments are on cargo planes and the flights don't even appear. We are chasing
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Apr 03, 2020
Ron Johnson, who is the former CEO of J.C. Penney and architect of Apple's retail stores, gives his take on the future of department stores during coronavirus.
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Apr 03, 2020
(Bloomberg) -- Vanishing demand and alternative grades at never-seen-before prices are fueling expectations that Saudi Aramco will need to price its crude at aggressively low levels this month to stay in the game.The world's biggest oil exporter is due to announce its official selling prices for May shipments this Sunday. It comes a month after the kingdom discounted April supplies by the most in at least 20 years as it embarked on a price war with Russia that sent oil markets into a tailspin.See also: Aramco Set to Price Oil at Deepest Discount in Decades: SurveyWhere to pitch prices will be a tricky balancing act for Saudi Arabia. Set them too high and customers will buy as little as their term contracts allow against a backdrop of weak demand and rapidly filling storage tanks. If they're too low, however, the self-inflicted pain of the price war could become intolerable.Asian refiners are being spoiled for choice due a flood of cheap crude from the U.S. and Russia. Varieties such as West Texas Intermediate, Mars and Urals are being offered and sold at sharp discounts, according to six officials and traders from processors across the region. The relative strength of Middle East's Dubai benchmark versus London's Brent isn't doing Gulf sellers any favors.For buyers in China, for example, Mars was sold at discounts of $8 a barrel or more against London's Brent futures on a delivered basis. That's likely to be lower than Saudi's Arab Light crude after the addition of freight and other costs, should Aramco reduce
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Apr 03, 2020
After the worst quarter for oil prices in history, some oil producers have begun to include protection in their contracts to avoid being forced to pay buyers for the oil they pump if prices slide below $0 a barrel. Crude prices in key physical markets - including the United States, Canada, Mexico and Europe - have fallen through $10 a barrel, far below comparable futures prices, as demand slumps and storage fills. Oil prices have been hammered by the collapse in demand after the coronavirus outbreak and the sudden end of an OPEC-led supply reduction pact.
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Apr 03, 2020
Lawmakers are calling for airlines to refund customers for coronavirus-related cancellations. Atmosphere Research Travel Industry Analyst and President Henry Harteveldt joins Yahoo Finance's Zack Guzman to discuss.
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Apr 03, 2020
Refi loan demand has been as voracious as the big cats on "Tiger King," a report shows.
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Apr 03, 2020
European stock markets sank on Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic while oil prices extended their previous day's gains on hopes of a global supply cut. With virus-fighting lockdowns raising the risk of a prolonged global downturn, investors continued to seek the safety of the U.S. dollar and government bonds, pushing U.S. Treasury yields near their lowest in three weeks. With over a million people infected worldwide, there were more signs the pandemic would take a massive toll on economic growth.
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Apr 03, 2020
Oil prices shed some of their massive gains on Friday taking stocks in Asia lower, as doubts grew over an oil price deal between Saudi Arabia and Russia that U.S. President Donald Trump said he had brokered. With the coronavirus pandemic raising the risk of a prolonged global downturn, investors continued to seek the safety of the U.S. dollar and government bonds, pushing U.S. Treasury yields near their lowest in three weeks. U.S. West Texas Intermediate (WTI) crude lost $1.18, or 4.7%, to $24.14 a barrel, having surged a record 24.7% on Thursday.
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Apr 03, 2020
Oil prices retreated on Friday after massive gains, while stocks in Asia edged down, as doubts grew over an oil price deal between Saudi Arabia and Russia that U.S. President Donald Trump said he had brokered. With the coronavirus pandemic raising the risk of a prolonged global downturn, investors continued to seek the safety of the U.S. dollar and government bonds, pushing U.S. Treasuries yield near their lowest in three weeks. U.S. West Texas Intermediate (WTI) crude lost $1.14, or 4.5% to $24.18 a barrel in early Asian trade after having surged a record 24.7% on Thursday.
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Apr 02, 2020
Loup Ventures Managing Partner Gene Munster on Thursday said Tesla Inc. (NASDAQ: TSLA) "is crushing the auto industry," generating significantly higher demand than its competitors.What Happened Tesla earlier in the day reported 88,400 deliveries and 102,672 total production in the first quarter this year, beating analyst estimates.Munster noted that Tesla's delivery numbers are up 40% year-on-year in the first quarter, at a time when the overall United States auto industry numbers are down 29%."Tesla is winning because they have a product that is measurably better than both gas and electric competitors," the former research analyst said.What's Next The electric vehicles maker didn't update its guidance for the deliveries for the entire financial year 2020, over the previous one of 500,000 deliveries. It also didn't give an estimate of its expectations for the second quarter.Loup Ventures would give their estimate for the second quarter when there's better clarity surrounding the novel coronavirus (COVID-19) pandemic.Munster reiterated his earlier stance that during the pandemic, Tesla's performance relative to other automakers matters more than its performance on absolute terms.According to him, Tesla will continue to beat other automaker delivery results by 15% to 25% in the rest of the three quarters this year, even as things get more difficult for the overall industry.If the pandemic's impact is eased by October, Tesla will see a "dramatic bounce back" in
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Apr 02, 2020
President Donald Trump slammed 3M Co in a tweet late on Thursday after earlier announcing he was invoking the Defense Production Act to get the company to produce face masks. At a White House briefing on the coronavirus pandemic earlier on Thursday, Trump announced he had signed a Defense Production Act order for 3M to produce face masks.
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Apr 02, 2020
(Bloomberg) -- Trading in shares of China's biggest car-rental company was suspended in Hong Kong after they tumbled as much as 72% amid concern over the firm's ties with Luckin Coffee Inc., which is facing an accounting probe.Car Inc. last traded at HK$1.96, a slump of 54%, before the halt at 10:14 a.m. local time. Volume was more than 70 times greater than the 30-day average with less than an hour of trading. The firm's dollar bond due 2021 plummeted 31 cents to 44.8 cents on the dollar, the most ever, according to Bloomberg-compiled pricing.The company was founded by Lu Zhengyao, the chairman of Luckin Coffee, which sank Thursday after saying its board is investigating reports that senior executives and employees fabricated transactions."Car Inc. investors are deeply concerned about the credibility of its financial reports," said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai Co. "Now that Luckin has such a big integrity issue, people are worried that chairman Lu may have planted similar culture in Car Inc. The selling of its shares is a vote of mistrust on management."Wang Tao, a Car Inc. spokesman, declined to comment.Luckin, a Chinese coffee chain, plunged as much as 81% in U.S. trading on Thursday. The company, a key competitor to Starbucks Corp. in China, said Chief Operating Officer Jian Liu and employees reporting to him engaged in misconduct. Liu and others have been suspended and investors shouldn't rely on previous financial statements for the nine months ended Sept. 30, t
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Apr 02, 2020
(Bloomberg) -- Oil slid back below $25 a barrel following a record surge as doubts crept in over U.S. President Donald Trump's claim he had brokered a deal that would see deep supply cuts from Saudi Arabia and Russia.Futures dropped as much as 7.1% after surging almost 25% in New York on Thursday after Trump tweeted that he expected the two leading producers to slash output by 10 million barrels or more. However, the Kremlin later said that President Vladimir Putin had not spoken to his Saudi counterpart and hasn't agreed to reduce production. Citigroup Inc. and Goldman Sachs Group Inc. said any supply deal would be too little, too late as demand craters.See also: Trump's Push for Huge Deal to Cut Oil Supply Draws DisbeliefWhile futures spiked, the outlook for the physical market remains bleak as discounts for some grades of physically delivered oil across the U.S. and Canada widened. Heavy Louisiana Sweet crude lost $1.75 a barrel relative to West Texas Intermediate to a record $10.50 discount.Oil has whipsawed this week after plunging to an 18-year low on Monday. While Trump tweeted that he had spoken to Saudi Crown Prince Mohammed bin Salman, who had in turn spoken with Russian president, a person familiar with the situation said the U.S. president's goal is purely aspirational and will ultimately hinge on whether Riyadh and Moscow can reach a deal.After Trump's request, Saudi Arabia said it had called a meeting of the OPEC alliance that includes Russia to discuss a "fair agreement," signaling it would
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Apr 02, 2020
I'm not so much a bear as a realist and not buying into the notion that this is a temporary dip followed by a huge rebound. Voluminous job losses and bankruptcies could lead to permanent wealth deviation.
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Apr 02, 2020
(Bloomberg) -- Boeing Co. expects several thousand workers to retire or accept a buyout offer as the planemaker races to shrink its operations amid a historic unraveling of global travel from the coronavirus pandemic, said a person familiar with the company's plans.The manufacturer will start by offering the exit package in the U.S., while selectively hiring for critical programs such as defense and space, said the person, who asked not to be named because the discussions are confidential. Boeing is also weighing a production cut for wide-body jets as demand falls, although no changes have been made as yet, the person said.Chief Executive Officer Dave Calhoun is walking a fine line by downsizing at a time when Boeing is considering whether to tap billions of dollars in federal aid to bolster cash reserves. Layoffs would give the planemaker more control over how it lowers the cost of its 161,000-strong workforce, but at the risk of stirring up a backlash from its critics in Washington."They need to cut costs with payroll, but they need to maximize leverage with headcount," aviation consultant Richard Aboulafia said of the tug-of-war between Boeing's cost-cutting news and its political interests. "My biggest concern is that when you have an announcement like this, it's often the experienced engineers and designers who leave."$60 Billion BailoutVoluntary buyouts keep the government-assistance option viable, should Calhoun ultimately choose to pursue it. He has blanched at the potential strings a
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Apr 02, 2020
Oil prices fell on Friday, coming off their biggest one-day gains in the previous session after U.S. President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce U.S. production. U.S. West Texas Intermediate (WTI) crude futures fell 5.2%, or $1.32, to $23.98 a barrel, after having surged 24.7% on Thursday. Trump told reporters at the White House late on Thursday he had made no offer to cut U.S. output.
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Apr 02, 2020
Loup Ventures Managing Partner Gene Munster on Thursday said Tesla Inc. (NASDAQ: TSLA) "is crushing the auto industry," generating significantly higher demand than its competitors.What Happened Tesla earlier in the day reported 88,400 deliveries and 102,672 total production in the first quarter this year, beating analyst estimates.Munster noted that Tesla's delivery numbers are up 40% year-on-year in the first quarter, at a time when the overall United States auto industry numbers are down 29%."Tesla is winning because they have a product that is measurably better than both gas and electric competitors," the former research analyst said.What's Next The electric vehicles maker didn't update its guidance for the deliveries for the entire financial year 2020, over the previous one of 500,000 deliveries. It also didn't give an estimate of its expectations for the second quarter.Loup Ventures would give their estimate for the second quarter when there's better clarity surrounding the novel coronavirus (COVID-19) pandemic.Munster reiterated his earlier stance that during the pandemic, Tesla's performance relative to other automakers matters more than its performance on absolute terms.According to him, Tesla will continue to beat other automaker delivery results by 15% to 25% in the rest of the three quarters this year, even as things get more difficult for the overall industry.If the pandemic's impact is eased by October, Tesla will see a "dramatic bounce back" in
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Apr 02, 2020
Volatility is king right now, as investors of security software specialist BlackBerry can attest (BB). The Canadian company has enjoyed a wild ride recently, although ostensibly in the wrong direction. The stock is down by 45% year-to-date.Over a third of that was actually shed in today's session. The stock is now firmly in penny stock territory, a far cry from the days when Blackberry phones were all the rage and the share price peaked at $147.55 - all the way back in June 2008. Since then the business has completely changed and BlackBerry now generates almost all its revenue from software and services sales.So, why the latest drop, you ask? Simple: BlackBerry disappointed with its latest quarterly statement. Having recently bounced off a new multi-year low, investors were hoping the F4Q20 results could seal a turnaround in fortunes, but it appears the print has had the opposite effect.So where is the problem? BlackBerry missed on the top line. Despite a year-over-year increase of 13.2%, the company reported revenue of $291 million, lower than the Street's call by $5.29 million.The company did beat on EPS, which came in at $0.09, ahead of the forecast for $0.04. BlackBerry also recorded higher than expected licensing revenue of $108 million, but there was further disappointment from the IoT business. With sales of $127 million, the section underperformed, primarily due to BTS (blackberry technology solutions). The segment has been hit hard by the slowdown in the auto industry supply chain due to the
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Apr 02, 2020
(Bloomberg) -- Oil slipped below $25 a barrel following a record surge as doubts crept in over U.S. President Donald Trump's claim he had brokered a deal that would see deep supply cuts from Saudi Arabia and Russia.Futures advanced almost 25% in New York on Thursday after Trump tweeted that he expected the two leading producers to slash output by 10 million barrels or more. However, the Kremlin later said that President Vladimir Putin had not spoken to his Saudi counterpart and hasn't agreed to reduce production. Citigroup Inc. said any deal was too little, too late.See also: Trump's Push for Huge Deal to Cut Oil Supply Draws DisbeliefWhile futures spiked, the outlook for the physical market remains bleak as discounts for some grades of physically delivered oil across the U.S. and Canada widened. Heavy Louisiana Sweet crude lost $1.75 a barrel relative to West Texas Intermediate to a record $10.50 discount.Oil has whipsawed this week after slumping to an 18-year low on Monday. While Trump tweeted that he had spoken to Saudi Crown Prince Mohammed bin Salman, who had in turn spoken with Russian president, a person familiar with the situation said the U.S. President's goal is purely aspirational and will ultimately hinge on whether Riyadh and Moscow can reach a deal.After Trump's request, Saudi Arabia said it had called a meeting of the OPEC alliance that includes Russia to discuss a "fair agreement," signaling it would only cut output if others do so. Even if producers do decide on a cut, global demand is co
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Apr 02, 2020
With a core online retail business encompassing grocery to consumer electronics and everything in between, and an exemplary logistics infrastructure with the ability to meet consumers' requirements for theses stay-at-home times, online giant Amazon (AMZN) is well set up to weather the COVID-19 storm. The market has reflected this notion, too, and amazon stock has held up relatively well, year-to-date in the green.But there is an additional growth driver not mentioned quite as often. Aegis Capital's Victor Anthony believes Amazon Web Services' (AWS) growth is the reason why the company "is one of the best investments for the next five years."The 5-star analyst maintains a Buy rating on Amazon shares along with a $2,525 price target, which implies nearly 30% upside from current levels. (To watch Anthony's track record, click here)The data speaks for itself, says Anthony. According to cloud costs managing company Vangal, AWS should see revenue grow between 37% and 39% in 1Q20 compared to 34% in 4Q19. Anthony notes how cloud companies are the beneficiaries of "increased in-home entertainment services, business communications, and more healthcare and government utilization." Amazon's "footprint and set of services" are what sets the company apart.Furthermore, Amazon has "three key competitive advantages," Anthony noted. "(1) the number of people trained and certified on AWS is more than GCP and Azure combined; (2) their product suite span a set of products that companies can use easil
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Apr 02, 2020
'[If] you are an entrepreneur, if you're a small business operator, you need to be cognizant and you need to apply ASAP,' Mark Cuban says.
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Apr 02, 2020
United Airlines is losing more than $100 million in revenue per day and making plans to reduce payroll expenses and permanently retire some older mainline and 50-seat regional aircraft if air travel demand does not return later this year, President Scott Kirby told employees Thursday in a town hall meeting. "While we all think that […]
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Apr 02, 2020
(Bloomberg Opinion) -- China's banks may be about to assume the mantle of the ultimate widows-and-orphans home for Hong Kong's small investors.For decades, HSBC Holdings Plc has held that status — a reliable provider of investor income that even carried on paying dividends through the global financial crisis in 2008-2009. Hong Kong's biggest bank hadn't missed a payout in Bloomberg-compiled data going back to 1986. That changed Wednesday when London-headquartered HSBC scrapped its interim dividend in response to a request from the Bank of England. The lender's stock plunged 9.5% in Hong Kong, the most in more than a decade.It's difficult to overstate the importance of HSBC to individual investors in the city where it was founded more than 150 years ago. The stock is unusually widely held. Institutions own just 61.5% of the shares, compared with 94% for Standard Chartered Plc, HSBC's London-based and Hong Kong-listed rival. Standard Chartered also cancelled its dividend along with other British banks after the BOE called on them to conserve cash amid the coronavirus pandemic.HSBC's dependable payouts have also been a lure for institutional investors. Shenzhen-based Ping An Insurance Group Co., the bank's second-largest shareholder, cited the dividend as an attraction for taking its 7% stake. Mainland Chinese investors will also be feeling the pain: As much as 8.2% of HSBC's Hong Kong-listed stock sits with investors who bought via trading pipes that connect the city's exchange with counterparts in Shanghai and Shenzhen. That's risen from a
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Apr 02, 2020
(Bloomberg) -- President Donald Trump is trying to get the world to cut oil production by 10 million barrels a day in an effort to end a market-share war that sent crude prices plunging to the lowest levels in two decades.Earlier on Thursday, Trump shocked markets by tweeting that he expected Russia and Saudi Arabia alone to cut about 10 million barrels -- or roughly a tenth of global petroleum, sending oil prices soaring. A person familiar with the discussion later said that Trump, after a call with Saudi Arabia Crown Prince Mohammed bin Salman, was hoping to get other oil market participants to contribute to that cut, too. A second person familiar with the situation said Trump's goal is purely aspirational and will ultimately hinge on whether Saudi Arabia and Russia can reach a deal.Any across-the-board reduction of this size will face serious challenges. Saudi Arabia hasn't voiced outright support for the move and instead called for an "urgent meeting" of the world's oil producers to discuss a "fair agreement." The response signals the country will only cut output if others do so and raises the question of whether the Trump administration is willing to cap America's own production to reach a global accord.Russia's response was arguably harsher. In his tweet, Trump said he had spoken to MBS, who had in turn spoken with Russian President Vladimir Putin. But a Kremlin spokesman, Dmitry Peskov, said the conversation hadn't happened and confirmed that no production cut had been agreed to with the Saudis.
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Apr 02, 2020
American Airlines Co said on Thursday it is cutting additional flights this summer as travel demand has drastically shrunk amid the coronavirus pandemic. Vasu Raja, American Airlines' senior vice president of Network Strategy, told Reuters that the airline is cutting between 70% and 75% of flights in April and about 80% of flights in May. For this month and May it is cutting nearly 90% of its international flights. Raja said domestic demand will remain weak into May, citing of the lack of bookings.
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Apr 02, 2020
Today, we're going to show you what the longer-term Adaptive Fibonacci Price Modeling system is suggesting for the S&P; and NASDAQ.
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Apr 02, 2020
(Bloomberg) -- Asian stocks looked poised to open higher following a volatile session in the U.S., with oil producers well supported after President Donald Trump said Russia and Saudi Arabia would cut production.The S&P 500 closed up 2.3% with energy shares the best performers, while consumer discretionary stocks lagged after jobless claims doubled from last week to 6.6 million. Futures in Japan and Australia climbed and U.S. contracts opened little changed in Asia. Treasuries retreated amid a slew of corporate supply. West Texas crude remained around $25 a barrel after surging 22% on Thursday, though the advance was pared as officials from both sides watered down expectations. The dollar pushed higher and yen and euro fell.With the coronavirus now infecting 1 million people and lockdowns for many economies around the world expected to go on for longer, economic data are showing the severity of the impact. Nearly 10 million people in the U.S. have lost their jobs in the past two weeks, more than were lost during the whole 2008-09 recession."We are not going to have the real recovery in the market until what we think is the peak in the amount of infections and deaths," Stephen Dover, head of equities at Franklin Templeton, said on Bloomberg TV. "We are going to continue to have very wide volatility until we can get over this uncertainty."These are the main moves in markets:StocksFutures on the S&P 500 were little changed as of 7:09 a.m. in Tokyo. The gauge ose 2.3% on Thursday.Futures on Japan's Ni
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Apr 02, 2020
Stock futures kicked off the overnight session roughly flat Thursday as market participants considered mounting signals of labor market devastation amid the still-escalating coronavirus pandemic.
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Apr 02, 2020
In the past five years, U.S. airlines have boosted profits by adding extra summer flights to Europe, capitalizing on consumers' near insatiable desire to travel abroad in June, July, and August. But on Thursday American Airlines admitted the great summer European cash grab will not return in 2020. American announced a slew of global cuts […]
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Apr 02, 2020
Rates have dropped this week and are giving homeowners new opportunities to save.
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Apr 02, 2020
Rates have dropped this week and are giving homeowners new opportunities to save.
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Apr 02, 2020
By breaking the oil war down with game theory, we can see that the rational opti
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Apr 02, 2020
The deadly and rapidly spreading COVID-19 outbreak has been wreaking havoc on companies around the world. Nevertheless, some companies — including online pet product retailer Chewy — have emerged as winners amid the chaos.
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Apr 02, 2020
Yahoo Finance's Rick Newman breaks down how bad the auto industry has been hit since the coronavirus outbreak.
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