SpaceX is a private aerospace company that was founded in 2002 by Elon Musk. Since its start, it has made many advancements in the space travel sector. Some of these include being the first private company to launch and recover a spacecraft, the first private company to launch an object into orbit, and more.

SpaceX has achieved a new accomplishment that is huge for the aerospace company. On May 30^th at 3:22 pm EST it launched Falcon 9. Falcon 9 is their first space mission with astronauts on board. The astronauts, Bob Behnken and Doug Hurley arrived at the International Space Station the next day, May 31^st. These astronauts will be at the ISS anywhere from one to four months.

[Read More] Hospitality Stocks On The Rise Right Now

Not only was this a huge accomplishment for the company, but it’s also the first time humans are flying to space in a very long time in the United States. In fact, this is the first time astronauts have been launched from US soil since 2011. The return plan is for the spacecraft to autonomously depart and land back in Florida where SpaceX’s Go Navigator recovery boat will bring the astronauts back to land.

The Impact Of SpaceX’s Flight

SpaceX is now the first private company to launch astronauts for NASA. The plan is for SpaceX to begin launching astronauts to the International Space Station for NASA and other space companies if everything goes smoothly with this mission. Things are looking very well for SpaceX right now. This company continues to make progress in the space travel world and it is exciting to watch.

Since Elon Musk leads both SpaceX and Tesla (TSLA Stock Report), when there’s good news for SpaceX, Tesla sometimes will rise. On Monday, June 1^st, shares of TSLA stock rose almost 6%. This is the highest this stock has been at since they reached their all-time highs back in February 2020. SpaceX has no direct investment or link to Tesla at all. The rise is thought to be solely due to Elon Musk’s personal stake in both companies. Musk owns a large stake in both of the companies so his status is essentially what effects it.

This means that people who want to invest in things relating to Elon Musk only can invest in TSLA stock. SpaceX is still a private company for now so there’s no option to invest there. This space mission resulted in TSLA stock rising from $827 a share to now being at $897 a share as of June 1^st.

So for now you can’t directly invest in SpaceX, but investors have resorted to putting their money into Tesla due to the association with Elon Musk. This doesn’t mean that SpaceX doesn’t have big investors though. Alphabet (GOOGL Stock Report) owns a $900 million stake in SpaceX that they purchased in 2015 and still hold to this day. In the next section their recent investor situation will be discussed.

More SpaceX News Impacting The Company

On May 26^th SpaceX did a filing with the Securities and Exchange Commission that showed the companies funding round has been very successful. They raised their offering to almost $350 million in common stock. In addition to this, they have gained some new investors as well. The SEC filing reported that $346.2 million was placed by 16 investors during this funding round.

SpaceX has very ambitious plans including colonizing Mars someday. That’s just one of many plans this space exploration company has in store. It will be interesting to see what they are going to do in the future and if they will end up going public on the stock market at some point. For now, SpaceX is a great company to watch expand and continue to break new barriers in space exploration.

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is It Time To Buy Hospitality Stocks?

Hospitality Stocks have been in a bit of trouble lately. Companies that focus on hospitality and rentals are in distress right now. The coronavirus pandemic that has taken the world by storm has affected this industry. Stay at home orders are affecting everyone’s lives at the moment. This greatly reduces or removes the demand for hospitality companies.

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Still, companies are pushing through and have high hopes for the future. A change in the current phase of quarantine can mean more people going back to normal again. Things are already reopening or announcing reopening dates which is going to allow the hospitality industry to go back to normal.

Rentals and hospitality services will see a return once everything is normal again. The market has been down recently, but is already starting to see a rise again. Some hospitality stocks are steadily rising once again. Let’s take a look at one stock to watch in this sector that has rallied up recently.

Hospitality Stock Soars Overnight

Target Hospitality Corp. (TH Stock Report) is one hospitality stock that has had a fast rise recently. Target Hospitality specializes in rental and hospitality services. One example of this is building, owning, and operating housing groups. This includes accommodations, food services, and hospitality solutions. They’ve grown to become a well known name in their sector.

Shares of Target Hospitality fell 77% when the coronavirus took over. It was trading at $5.50 a share but dropped to a low of $1.26 a share. But in the last month this hospitality stock has seen slight improvement in its share prices while still staying under $2 a share. That was until a press release came from the company on May 28^th.

This press release announced TH stock’s first quarter 2020 financial results. Their net income of 3.8 million ended March 31, 2020. In the first quarter of 2019 they had a net loss of $14 million. This is great news for this hospitality stock. CEO and President of TH Brad Archer said in a statement, “Despite a challenging macro environment exiting the first quarter, we produced solid results across our business and generated DCF of approximately $10 million.

However, the COVID-19 pandemic has significantly reduced global economic activity and exacerbated a rapid deterioration in commodity markets. These dual shocks to the global economy have created an unprecedented scenario, which will likely persist through much of 2020,”

Where Is TH Stock Now?

Target Hospitality stock rallied up after this financial press release. May 27^th, the stock was at $2.18 a share. When May 28^th, the day of the announcement, came around it soared to a high of $2.90 a share. This 33.02% increase is a great step in getting TH stock back to its former highs.

This hospitality stock has high hopes for the future as well. Brad Archer also stated, “As we navigate the current environment, including the COVID-19 pandemic, our first priority is the health and safety of our employees and customers, and we continue to take all appropriate precautions to ensure their health and well-being. We have taken decisive action to defend our business and cash flow…We have taken proactive measures to appropriately modify certain aspects of select commercial contracts to strengthen revenue visibility for the long-term benefit of Target.

[Read More] What Has Caused This Retail Stock To See Subtle Gains?

So as things look forward for Target Hospitality, this is a potential hospitality stock to watch if you’re looking to add some to your portfolio. As developments continue in regards to ending this virus we will see a return to form for the market. While this can take time, there will still be potential gains to make in the stock market during this very speculative time.

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We’ve got another week ahead and a short week at that. I hope everybody has enjoyed the Memorial Day holiday weekend. We’re set to kick-off what could be on another eventful week on Wall Street. Let’s take a look at some of the potential market-moving catalysts to watch this week in the stock market.

U.S. Markets Are Closed On Memorial Day 2020

That’s right, as you’ve probably figured out by now, the U.S. stock markets will remain closed on Monday. This is in observance of Memorial Day. Fixed income markets as well as us commodities markets will also be closed. However, they will be trading electronically. So if you’re looking for any type of trading activity on Monday it will likely be in gold and oil futures.

Coronavirus Newsfeeds Continue To Stay Active

With early efforts underway to restart business activity across nearly all 50 states, market sentiment could be swayed by news on the easing of coronavirus lockdowns across the country. Additionally if we get headlines regarding an actual spike in the number of new confirmed cases that could be cause for concern.

However, most importantly will be the impact Market sentiment sees from headlines regarding progress on the medical front. Concerns continue to be raised on the delivery of a COVID-19 vaccine. There’ve been more than 1.6 million confirmed cases in the United States with the death toll approaching 100,000. This is the highest number of any country in the world.

U.S. & China Still At Ods On Trade

U.S. / China tensions could become a bigger headwind for stock markets in the coming days. That’s after China announced new security measures for Hong Kong late last week. The main concern is that if either the US and/or China resort to tariffs, that could be hard on both economies. They have become more fragile as a result of the curve of the coronavirus. The trade war between the two economic superpowers has taken a turn for the worse recently. This could weigh more heavily on economic reports as the fed’s beige book is due on a Wednesday.

This is effectively a summary of economic activity over the past month. We’re also going to get April manufacturing data when durable goods are released on Thursday. April personal income and spending figures are due on Friday. However, most of the focus this week will be on consumer confidence figures. These are due out during the first half of the week. This is followed by Michigan consumer confidence on Friday. So those will be the main two numbers to watch.

More Earnings Due This Week

Earnings for retailers are once again among the companies reporting earnings in the week ahead. The first-quarter earnings season continues to wind down as the big names to report this week include Costco, Nordstrom, Abercrombie & Fitch, Burlington stores, and Ulta beauty. There are also other notable names reporting this week as well from the tech space including Salesforce, HP, Workday, and Autodesk. So, whether it is in terms of COVID-19 headlines, China trade, or earnings, there’s a lot to digest in this shortened week.

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Airline Stocks Continue To Trade Near Lows; Good Time To Buy Or Are You Selling?

The world is in a tricky spot right now, because people can’t travel which is affecting airline stocks at the moment. Most places are under stay at home orders that don’t seem to be going away any time soon. The uncertainty in the world is affecting everything we do including travel which impacts the way airline companies do business. People are traveling less due to the coronavirus to be at less risk of catching it. This has affected every single industry for those who need to travel. This includes businesses like hotels, airlines, taxis, airports, trains, and more.

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Not only airline stocks, but the airline industry as a whole has been extremely impacted by the coronavirus. The stories relating to people catching the virus had to do with people flying who had it. This caused a lot of negative feelings for consumers when it came to purchasing airline tickets. Then came the stay at home orders that kept everyone inside their homes. This caused a massive drop in the number of people traveling at all and airline ticket prices plummeted.

When it comes to airline stocks, they’ve been sitting low due to the effects of the coronavirus. But suddenly on May 18th, airline stocks started to take a turn for the better. Multiple airlines reported that they are seeing an improvement in flight demand so far during the month of May and for the month of June.

Airline Stocks To Watch: Delta Air Lines Inc. (DAL) 

This airline stock to watch, Delta Air Lines Inc. (DAL Stock Report) reported that they would restore many domestic and international routes. These flights previously were not being run due to the coronavirus pandemic. Continuing to restore more flights can cause DAL stock to gain more attention in the market. Restoring the flights gives people a sense of safety that aviation companies believe these routes are ok to fly during this time.

Cities are starting to reopen in America right now. As the world starts reopening again, people will start traveling more. Many people use airlines as a way to travel, for instance. DAL  stock is already seeing an increase in its share price due to the understanding that things may begin to return to a more normal state very soon.

How is DAL Stock Price Being Affected?

Delta, being an airline stock to watch, previously sat around $60 a share before the pandemic shocked the world. In mid-February of 2020, it dipped to an average of $45 a share. It dropped over the following month to a low of $21 a share. Over the course of the last month, it has generally stayed at that point with a slight rise to $26 a share at the end of April and then back down to $22 in May.

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On May 15th, share prices for DAL stock were steadily trading at $19. May 18th came around, off the open it jumped to $21 and has now increased to $22 a share. This is due to what was discussed above about these companies having a good feeling about the future. The potential vaccine, the hope for the future, and the rebuilding of our economy is all affecting the share prices of Delta stock, as well as other airline stocks.

Will we see the price of airline stocks rise? This will all depend on how soon we get the world back to a more normal state. It is generally expected for these stocks to make a comeback once that happens. We are living in a time where everything is uncertain and is depending on the pharmaceutical and biotech companies to come up with a solution. While we may not know when this is all coming to an end, we know that eventually, it will. Every day progress is being made as we get closer and closer to returning to our normal routines.

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WalMart Stock Rallies On eCommerce Growth

Stay at home orders are impacting nearly everybody’s lives at the moment including consumer and retail stocks. There is a lot of uncertainty in the world especially in the stock market today and what will happen next. The coronavirus is not showing signs of letting up, which is why stores remaining open are essential at this time. 

Businesses such as Amazon, Target, and supermarkets to name a few have all seen positive business effects in regards to remaining open. Walmart is another contender to this list of companies that have remained open. That’s right, none of these businesses have closed despite being in these tough times. These retail winners are seeing big increases in their customer base and their sales.

The coronavirus has caused consumers to start stockpiling goods. These include food, toilet paper, hand sanitizer, and other essential supplies. This is done to avoid needing to go into public and risking catching the virus. Needless to say, Walmart staying in business these last few months has had a very positive impact on the company.

Big-name retail stocks like Walmart (WMT Stock Report) has become a primary source for supplies. Not many stores have remained open during this pandemic. Walmart maintaining its operation has caused new and old customers to flock in to purchase all kinds of goods. As one of the nation’s largest retailers, it was no surprise that Walmart would be positively affected as a result of keeping the business running.

Is Walmart Going Up In Numbers?

Let’s talk about the financials of WMT stock. Online shopping for supplies has become very popular during these times. Walmart e-commerce has jumped by 74% alone. Same-store sales have surged by 10% as well due to people stocking up on supplies and groceries. It has also been reported that it has gained many new customers as well.

WMT stock share prices are also reaching new heights, literally. The all-time high for this retail stock to watch is $132.12 a share. Can you guess when this was reached? That’s right, during this pandemic on April 13th. Shares of the company are still actively trading around $127 which is up from the $115 it was floating at before this pandemic began.

The public really believes in this Walmart stock at the moment. It is interesting to see how the price has risen despite pulling its guidance for the year due to the coronavirus. In addition to pulling their guidance, they also spent $900 million in compensation for employees who remained at work. Yet, their revenue exceeded predictions by nearly a billion dollars.

How Has Walmart Been Helping People In A Time Of Need?

Walmart, being a larger retail stock to watch, has another useful service that has helped people during this time. Walmart offers Express Delivery in the United States. It allows customers to have items delivered in under two hours. In addition to this, they are using more stores to ship out items as well.

This virus season is going to have a lasting effect on this retail stock. More people have discovered the stores as they are of the few to remain open. This will gain a level of trust with consumers who are looking for goods in the future. This is believed to continue even after the stay at home orders have vanished. Think about it this way, if you shopped somewhere and have a good experience you’re bound to go back right?

This rise in customer base can cause WMT  stock to soar even higher in the future. It is clear that a smart move was made by keeping the retail giant open and will have positive effects on their business. We’re still living in a world where we don’t know what advancements are going to be made next right now and it can be worrying. As demand continues for stockpiling supplies, these retailers staying open will continue to take customers in with open arms to supply goods in this time of need.

The post What Has Caused This Retail Stock To See Subtle Gains? appeared first on Stock Price.

Futures contracts tied to the major U.S. stock indexes inched higher at the start of the overnight session Sunday evening as investors awaited comments on the state of the American economy from Federal Reserve Chairman Jerome Powell.

Dow Jones Industrial Average futures rose 37 points, implying an opening loss of about 50 points, or 0.2%. S&P 500 and Nasdaq futures were also slightly higher and pointed to declines of about 0.2% for Monday’s open.

The overnight moves Sunday evening followed a red week on Wall Street. The Nasdaq Composite and S&P 500 fell 1.1% and 2.2%, respectively, last week with the latter notching its worst week since March. The Dow industrials finished the week down 2.65% for its third negative week in four and its worst week since April 3.

But by the start of Sunday’s overnight trading, investors were awaiting the broadcast of CBS’ “60 Minutes” interview with Fed chief Powell.

Though the entire interview is set to broadcast starting at 7 p.m. ET, the show aired a segment of Powell’s remarks earlier Sunday. He said the U.S. economy will claw its way back from the current pullback, but that it may not fully recover until a Covid-19 vaccine is complete.

“In the long run and even in the medium run, you wouldn’t want to bet against the American economy. The American economy will recover,” Powell told “60 Minutes” in an excerpt aired Sunday morning on “Face the Nation.”

“Assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of the year,” the Fed chief added. Still, Powell cautioned that “for the economy to fully recover … that may have to await the arrival of a vaccine.”

Wall Street’s veteran investors say stocks could be in for choppy trading until it’s clear that state efforts to reopen their economies aren’t met with significant spikes in new cases of Covid-19.

A flurry of recent economic data, including record-setting unemployment figures and a 16.4% plunge in April retail sales, show just how abruptly state-imposed business closures impacted the broader U.S. economy.

Patrick Leary, chief market strategist at Incapital, told CNBC’s Patti Domm that financial markets are looking a little fatigued between abysmal economic data, recent state-by-state efforts to restart business and worries over renewed animosity between the U.S. and China.

“Market reactions to the data have been somewhat muted,” he said. He said stocks on Friday were reacting negatively to threats from China that U.S. companies could be targeted if the U.S. does not ease up on Huawei.

“The markets right now don’t need another reason to be pessimistic. It seems like both the bond market and stock market are getting a little tired. Both markets are looking for the next catalyst,” he added.

View original: https://www.cnbc.com/2020/05/17/stock-futures-up-after-powell-says-economy-could-recover-some-this-year.html

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On Wednesday, May 6th Twilio Inc. (TWLO Stock Report) came out with a report recording a massive increase in its revenue in the first quarter of 2020. The shares rose more than 30% in just a few hours and peaked at 35% on May 7th making it a tech stock to watch. You may be wondering, what is a technology stock?

Let’s break it down a little bit. The tech industry consists of companies creating products and services. Some examples of this could be cell phones, computers, and machinery. Like other stocks, how much revenue the company brings in based on how many people are using its products and services could impact the share price.

[Read More] Top 5 Things to Watch This Week

Twilio, a tech stock to watch, is a way for developers to implement communication into their sites using voice, video, messaging and more. The San Francisco based tech company was founded in 2008 by current CEO Jeff Lawson, Evan Cooke, and John Wolthuis. Many apps you may use every day implement Twilio.

For instance, when you use Lyft and you contact your driver and vice-versa, Twilio’s API is what allows this communication without actually showing each other’s phone numbers and private information. Another example is SMS verification for password resetting and creating new accounts for different services.

Tech Stocks To Buy Or Sell: Twilio (TWLO)

Now that we have a basic understanding about Twilio, let us discuss the financials of this tech stock to watch. Late market hours on Tuesday, May 5th, TWLO stock was trading at around $112 per share.

After this news, TWLO stock saw an increase of 35% trading around $172 a share as of May 7th. The report that was released included Twilio stating a loss of 68 cents a share on revenue of $364.9 million.

This is compared to Wall Street analyst estimates of a loss of 11 cents a share on revenue of $331 million. In a statement from Jeff Lawson, the CEO and co-founder of Twilio, he specified, “We delivered strong first quarter revenue growth of 57% year-over-year, as customers across industries turned to Twilio’s customer engagement platform to accelerate their digital transformation efforts.”

How The Coronavirus Made This Tech Stock More Relevant

Twilio is seeing this large increase in revenue due to more digital communication and mobile services being used. Services like Netflix and the e-commerce industry as a whole that use Twilio’s API’s are being used much more. Due to people making new accounts on new services, its SMS verification service is being used a lot as well.

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In another statement from Jeff Lawson, he said “Our platform provides three things the world needs right now. Digital engagement, software agility, and cloud scale.”

As services implementing Twilio continue to grow, so will Twilio itself. In the tech industry, the trend already seems positive for the company’s revenue estimates for the rest of 2020. This can’t be certain due to the unpredictable uncertainties caused by this virus and market volatility. For now, this could be one of the top tech stocks to watch right now. Could it continue to climb through the rest of the month?

The post What Are Top Tech Stocks To Watch Right Now? appeared first on Stock Price.

his week’s economic calendar is packed with data which will further demonstrate the extent to which the coronavirus pandemic has hit global growth. The U.S. is set to publish figures on retail sales and industrial production for April, while the UK and Germany are to release data on first quarter GDP. The data will fuel the debate on whether a rebound in the U.S. stock market is justified amid an unprecedented slowdown. Trade threats by U.S. President Donald Trump against China continue to be a source of worry for investors at a time when large swathes of the economy are at a near-standstill. Meanwhile, bitcoin is due to undergo the third halving in its 11-year history this week. Here’s what you need to know to start your week.

U.S. data to underline steep drop-off in economic activity
Data on U.S. retail sales and industrial production for April due on Friday will further highlight the effect of closures on sales and factory output. Economists are expecting retail sales to have tumbled 11.6%, surpassing the record drop of 8.4% in March. Industrial production, which slipped 5.4% in March, is forecast to fall 11.5%.

There will also be numbers related to consumer sentiment and inflation while Thursday’s weekly report on initial jobless claims will cover the eighth week since widespread lockdowns came into effect. Last Thursday’s report showed that claims topped 3 million for a seventh straight week, but were off the peaks of 6.8 million seen in the week ended March 28.

Investors will also be watching a speech on Wednesday by Federal Reserve Chairman Jerome Powell on current economic issues at a webinar organized by the Peterson Institute for International Economics.

Trump’s trade threats
U.S.- China trade tensions look set to continue to simmer after Trump told Fox News Channel on Friday that he was “very torn” about whether to end the Phase-1 trade deal with China.

Trump’s administration is weighing punitive actions against Beijing over its early handling of the coronavirus outbreak, including possible tariffs and shifting supply chains away from China.

Trump has said he would terminate the trade deal if China fails to meet its purchase commitments. He said on Wednesday that he would know within a week or two whether that was possible.

The deal, which calls for Beijing to boost its purchases of U.S. goods by $200 billion over two years, only took effect on Feb. 15 as the coronavirus pandemic was unfolding. Lockdowns aimed at stemming the spread of the virus dealt a sharp blow to the Chinese economy and it is just now starting to recover.

UK and German GDP to show initial virus impact
First quarter GDP numbers from the UK and Germany will give investors an initial sense of the economic fallout from the lockdowns which began in late March.

The UK economy is expected to contract 2.5%, but the full damage, taking in the second quarter, will be much worse. The Bank of England said last week it expects the UK economy to fall by 14% this year, its worst annual slump for more than 300 years, and the unemployment rate to reach 8% as the coronavirus crisis ravages the economy.

Meanwhile, the euro zone’s largest economy Germany is expected to shrink 2.1% in the three months to March and the government has said it expects an annual contraction of 6.3% this year, which would be the most since World War II.

Divide between U.S. stock market, economy to widen
Recent economic data pointing to historic drops in activity is concerning to investors who worry that unprecedented stimulus from the Federal Reserve and U.S. government have led markets to shrug off the economy’s massive slowdown.

The Labor Department reported Friday that the U.S. economy lost a staggering 20.5 million jobs that month, the steepest plunge since the Great Depression.

If economic data this week is worse than the already awful forecasts it could bolster the argument that the rally in stocks has gone too far. But it is too early to say whether it will derail a surge which saw stocks post their best monthly gain in three decades in April, despite weak economic data from the previous month.

Recent gains could fade if U.S. states need to unwind efforts to reopen their economies and unemployment fails to decline in coming months.

Bitcoin’s third ‘halving’
Investors are widely anticipating Tuesday’s bitcoin halving, the third in the digital currency’s 11-year history. The previous two bitcoin halvings propelled massive rallies in bitcoin’s market value, but there is a wildcard this time in the form of the coronavirus pandemic, some analysts said.

“From an efficient market perspective, any fundamental reaction to the halving should be heavily priced in at this point; after all, it’s hard to imagine a more predictable event than an unalterable supply reduction that has been scheduled for more than a decade in a liquid, heavily-traded … asset,” said Matt Weller, global head of market research at GAIN Capital.

Bitcoin’s technology was designed in such a way that it cuts the reward for miners in half every four years, a move meant to keep a lid on inflation.

In the run-up to this week’s halving, bitcoin had surged almost 40% since the beginning of the year and climbed more than 80% from its lows.

View original: https://www.investing.com/news/economy/economic-calendar–top-5-things-to-watch-this-week-2167203

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Why Are Biotech Stocks Important?

With most of the world on lockdown due to the coronavirus, people have been looking for biotech stocks to buy. The biotech industry consists of companies creating medicines and new technologies to help the pharmaceutical industry.

Some of these biotech stocks have seen a spike in their share price due to them developing things to help combat coronavirus. For example, these items consist of as face masks, vaccine trials, and other medical equipment. One biotech stock to watch, Pfizer Inc. (PFE Stock Report), has continued to rise in share price over the last month.

Biotech Stocks To Buy Or Sell: Pfizer Inc.

Pfizer Inc. is a company that is geared toward creating medicine and vaccines for various types of illnesses in the medical field. They were founded in 1849 and as of now is partially owned by GlaxoSmithKline (GSK Stock Report), one of the largest UK based pharmaceutical companies. In just 2019 alone, Pfizer reported that over 214,000 patients had received their treatments. Out of those patients, most of those prescriptions came at a significant discount or at zero cost.

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You may now be wondering how they are relevant, and we are going to get to that now. In just the last month, Pfizer Inc. has gone from trading around $33 to now trading above $38 per share. This is a total gain of almost 12% which is significant in the current trading climate.

Pfizer Has Become a Coronavirus Stock

On Tuesday, May 5^th, Pfizer came out with a report stating that it’s working on a tentative vaccine in an attempt to fight the coronavirus. This is a collaborative effort with BioNTech, a German pharmaceutical company that has a possible vaccination they’re calling BNT162. Currently, they have begun conducting tests on humans that have COVID-19.

Pfizer has also gone on record saying they want to make millions of vaccines in the remainder of 2020 to treat people who have been infected by this pandemic. The ultimate goal is to finish the vaccine and distribute it all over the world to those in need. With this report, Pfizer’s stock has risen $1 just on speculation overnight. With Pfizer as only one of eight companies to test vaccines on humans, they remain a promising biotech stock to watch for the future.

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Just like many other stocks, Pfizer has had its ups and downs in the market. However, as of now it has found a new footing inside of its niche because of the coronavirus. If these coronavirus tests are successful, this could result in Pfizer producing more revenue.

As the virus continues to impact the world, it’s only going to create more room for biotech companies to step up to the plate and take action. So when you think about investing in a company such as Pfizer, make sure you watch the news and financials, and do your research before investing.

The post Should You Invest In Biotech Stocks Like Pfizer? appeared first on Stock Price.

CEO gives $1.6M he made in stock market to his employees

You won’t hear that complaint from Larry Connor’s employees.

Connor, the owner of Miami Twp.-based real estate investment firm, The Connor Group and a major philanthropist in the Dayton region, last week made a companywide announcement that he’d made $1.6 million on the stock market in the span of eight days.

He then informed his employees that he’d be paying out every dime of it in bonuses to them, for their work and dedication throughout the coronavirus outbreak.

That was the expression of many of his employees as they watched Connor deliver the news in a Zoom company meeting. “These are challenging times,” Connor said to his employees. “But the way our people have responded has been nothing short of heroic. Our No. 1 core value is ‘Do the right thing.’ So when I think about how I made the money compared to what our associates do on every day, to me, (paying the bonuses) was the right thing to do.”

Bonuses are being paid to all non-highly-compensated associates who started with the company prior to March 1.

“Larry, Larry, thank you so much. Oh my God! It’s so appreciated,” said LaKeycha Montague, a regional service trainer with the company.

The Connor Group owns and operates luxury apartment communities in 14 markets around the U.S. and has roughly 400 associates. Bonuses ranged from $2,000 to $9,000.

“We believe in leading from the front,” Connor said. “And in trying times, that means more than just talking about the problem. It means taking action.”

Throughout the coronavirus outbreak, Connor Group apartment communities have remained open as an essential business – to serve their 23,000 current and potential residents – while adhering to social-distancing and cleaning guidelines.

In addition to the work at its properties, the company’s nonprofit arm, The Connor Group Kids & Community Partners, also has responded to the outbreak. Earlier this month it announced an initiative to provide more than $1 million in goods and services to Dayton-area students – supplying groceries and in-home WiFi to underserved families affected by the outbreak. Read original.

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On the heels of worse-than-anticipated first-quarter GDP data, investors got additional economic data Thursday to reflect the ongoing damage being done to the U.S. economy as a result of the COVID-19 pandemic.

The U.S. Labor Department released its weekly jobless claims figures Thursday morning, and another 3.839 million Americans filed for unemployment benefits during the week ending April 25. Economists were predicting 3.5 million claims for the week, and the prior week’s figure was revised higher to 4.44 million from 4.43 million. In just the previous six weeks, more than 30 million Americans have filed unemployment insurance claims.

Continuing claims, which lags initial jobless claims data by one week, totaled 17.99 million for the week ending April 18. The prior week’s record 15.98 million continuing claims was revised lower to 15.82 million.

Jobless Claims Slow; But Climb?

“This is the fourth consecutive slowing in the pace of new jobless claims, but it is still horrible and underlines the severe economic consequences of the Covid-19 containment measures,” ING economist James Knightley wrote in a note Thursday.

“The re-opening of some states, including Georgia, Tennessee, South Carolina and Florida, appear to have gone fairly slowly. Consumers remain reluctant to go shopping or visit a restaurant due to lingering COVID-19 fears, while the social distancing restrictions placed on the number of customers allowed in restaurants do not make it economically justifiable for some to open. Evidence so far suggests very little chance of a V-shaped recovery, meaning that unemployment is unlikely to come down anywhere near as quickly as it has been going up,” Knightley added.

Certain states got hit harder than others last week as massive backlogs continued to pile up, and states that implemented shelter-in-place orders later than others saw an increase in claims. For the week ending April 25, Florida saw the highest number of initial jobless claims at an estimated 432,000 on an unadjusted basis, from 507,000 in the prior week. California reported 328,000, down from 528,000 in the previous week. Georgia had an estimated 265,000 and Texas reported 254,000.

While consensus economists anticipate weekly jobless claims will be in the millions in the near term, a continued steady decline is largely expected going forward.

“We expect initial jobless claims to continue to decline on a weekly basis. Many workers affected by closures of nonessential businesses have likely already filed for benefits at this point,” Nomura economist Lewis Alexander wrote in a note April 27. “In addition, the strong demand for Paycheck Protection Program (PPP) loans, part of the CARES Act passed on 27 March, suggests some room for labor market stabilization.”

What About Future Jobless Claims?

However, Barclays warned that some recent data indicated that the decline in weekly claims could actually be slower than previously estimated.

“NYC 311 calls in the week ending April 24 were running about 30% higher than a week earlier and support our change in forecast,” Barclays economist Blerina Uruci wrote in a note Wednesday. “In particular, we find it concerning that after declining steadily in recent weeks, the number of calls related to unemployment rose again during the week ending April 24.”

The firm increased its estimate for weekly jobless claims to 4 million from the previously estimated 3.25 million for the week ending April 25. Bank of America also boosted its estimate for claims to 4.1 million from the previously forecast 3.5 million claims.

“Scanning through the local news, we were able to locate information about ten states + DC. We found that claims declined only 2.5% week-to-week NSA [not seasonally adjusted],” Bank of America said in a note Wednesday.

COVID-19 cases recently topped 3.2 million worldwide, according to Johns Hopkins University data. There were more than 1 million cases in the U.S. and 60,000 deaths, as of Thursday morning. Read original article: https://finance.yahoo.com/news/coronavirus-covid-weekly-initial-jobless-claims-april-25-184820691.html

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The coronavirus economic shock has left some questioning the stock market. But that might be based on not knowing where to look for opportunities. There’s no getting around the fact that COVID-19 has done a number on stocks. Now timing could be important. After such a massive pull-back, there could be some of the biggest opportunities in the stock market today. You just need to know where to look before “Main Street” makes its move.

The results were recently revealed from Gallup’s annual Economy and Finance survey, conducted April 1–14 among 1,017 U.S. adults. Along with stocks and mutual funds, other options in the survey included real estate, bonds, gold and savings accounts or CDs. Based on the results, real estate remains the most popular investment choice. Thirty-five percent of Americans say real estate is the most favored long-term investment, which has been the case since 2013.

Over one-third of Americans have named real estate as the top investment since 2016. But what if there was a way to take advantage of both the stock market and real estate markets? It won’t take long to figure out that there is a way and it’s got everything to do with real estate stocks. But which will be the best to watch this year after coronavirus has faded off into the land of Ebola, Zica, and the Spanish Flu?

What’s Next For The Real Estate Industry? A Bet On Residential

“I think that the desire for larger apartments will come back into style and many will be looking to size up — whether sizing up in square footage, light, outdoor space, view, or amenities,” says Ian Slater, a broker with Compass in Manhattan. “The concept of a ‘microapartment’ being enough in New York City likely will become a very challenged notion. New York may for a time, not be thought of as ’everyone’s living room’: buyers will want their own living room!”

While the pandemic has promoted some to wonder whether the trend toward urban living will ebb, most agents don’t think that will stop people from investing in real estate in large metropolitan areas.

As part of a trend that predates the Covid-19 crisis, and is now accelerating because of it, hospitals, private medical groups, banks and a wave of online retailers are snapping up dozens of vacant sites, obsolete offices and empty stores in commuter zones across the tri-state area for example.

Those businesses — all deemed essential under Gov. Andrew Cuomo’s March executive order — could spark a long-awaited transformation of the commercial real estate markets in swaths of Long Island, Westchester, New Jersey and Connecticut.

Similarly, local housing developers in the suburbs are betting on big shifts as urbanites warm to less-dense areas. With thousands of New Yorkers now sheltering outside the city, and a growing number looking to stick to more remote areas, the pandemic is spurring deep societal changes that could spark new opportunities for the suburban real estate markets.

Betting Against Malls

One of Wall Street’s most successful investors, billionaire Carl Icahn, warned in a recent interview with Bloomberg that some stocks are overvalued, and although there will be “good opportunities” to buy, certain sectors could feel more pain.

Since mid-2019, Icahn’s been betting against the CMBX.6, an index of commercial real estate mortgage-backed securities. That trade is often described as the “mall short,” because so many of the underlying loans are to retail centers like shopping malls.

Icahn’s favorite bet is evidently paying off during the coronavirus, as widespread business shutdowns and store closures have led big retailers like Neiman Marcus and J.C. Penny to explore bankruptcy. Since early March, several tranches of the CMBX 6 index have plunged up to 40%. “It’s ‘08 all over again,” Icahn said, comparing the current environment to the subprime mortgage debt collapse during the 2008 financial crisis. Where do you stand on real estate and real estate stocks?

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International Land Alliance (ILAL) Announces Affordable Option at Bajamar

SAN DIEGO, CALIFORNIA, April 27, 2020 (GLOBE NEWSWIRE) — International Land Alliance, Inc. (ILAL Stock Report) today announced that it has allocated 44 units at Plaza Bajamar with starting prices at $99,000. As previously announced, the Company entered into a joint venture to co-develop 150 homes at the Bajamar Ocean Front Golf Resort. The Bajamar Ocean Front Golf Resort is a master planned golf community located 45 minutes south of the San Diego-Tijuana Border along the scenic toll road to Ensenada.

Read Full PR – Click Here

It Comes Down To Timing!

When we look back at the history of the stock market in 10 years, 2020 is likely to be a key period. You have to ask yourself if you were looking at the right places and at the right time. While nobody can predict the future, one company could be positioning for uncapped potential!

Access Our Full Report – Click Here

Pursuant to an agreement between Midam Ventures LLC and International Land Alliance (ILAL), Midam is being paid $225,000 for a period from January 31, 2020, to May 18, 2020. We may buy or sell additional shares of International Land Alliance (ILAL) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about International Land Alliance (ILAL). PLEASE READ OUR FULL DISCLAIMER.

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SAN DIEGO, CALIFORNIA, April 27, 2020 (GLOBE NEWSWIRE) — International Land Alliance, Inc. (ILAL Stock Report) today announced that it has allocated 44 units at Plaza Bajamar with starting prices at $99,000.

[Read More] A True First Mover Advantage In An Industry Outpacing The Market; 1 Stock To Watch

As previously announced, the Company entered into a joint venture to co-develop 150 homes at the Bajamar Ocean Front Golf Resort. The Bajamar Ocean Front Golf Resort is a master planned golf community located 45 minutes south of the San Diego-Tijuana Border along the scenic toll road to Ensenada. This new project, branded “The Plaza at Bajamar”, offers 5 floor plans with up to three bedrooms and three-and-a-half baths and ranging in size from under 1,000 to approximately 1,800 square feet.

“With the interest we are seeing from both the local market in Baja California and just north in Southern California from new home buyers and retirees seeking affordable housing alternatives, we entered into this strategic partnership to increase our presence and investment at Bajamar and add to the 34-unit Costa Bajamar development we currently have under construction. Median homes prices in Southern California recently hit new highs ($628,000 in Los Angeles County; $732,000 in Orange County; and $575,000 in San Diego County). With close proximity to San Diego on the Pacific Ocean and luxury community amenities that include golf and vineyards, we believe we not only offer an exceptional product, but at a fraction of the cost for comparable homes just an hour north.” said Mauricio Bustamante, the Company’s Director of Sales.

For more information about the Plaza at Bajamar, including construction progress (groundbreaking March 1, 2020), please visit: https://ila. company/plaza-at-bajamar/

About International Land Alliance, Inc.:

International Land Alliance, Inc. (ILAL) is an international land investment and development firm based in San Diego, California. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company serves its shareholders by devoting considerable time and resources to seeking out the finest sites available and obtaining the necessary development permits to build a compelling portfolio of properties, which provide a diversity of investment and living options. Please visit: www.ila. company.

Safe Harbor Statement

The press release may include certain statements that are not descriptions of historical facts but are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking terminology such as “may,” “expects,” “believes,” “anticipates,” “intends,” “projects,” or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectation and actual results may vary (perhaps materially) from certain of the results anticipated herein.

CONTACT:

Mauricio Bustamante, Director of Sales at mauricio@ila. company or Toll Free: 877.661.4811

Click to view original: http://www.globenewswire.com/news-release/2020/04/27/2022382/0/en/International-Land-Alliance-Announces-Affordable-Option-at-Bajamar.html

Pursuant to an agreement between Midam Ventures LLC and International Land Alliance (ILAL), Midam is being paid $225,000 for a period from January 31, 2020, to May 18, 2020. We may buy or sell additional shares of International Land Alliance (ILAL) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about International Land Alliance (ILAL).

Click for full disclaimer

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The Congressional Budget Office said Friday that it expected the federal budget deficit to hit $3.7 trillion for the 2020 fiscal year, which would be its largest size as a share of the economy since World War II.

In a new round of forecasts that officials cautioned were highly uncertain amid the coronavirus pandemic, the budget office said it expected the economy to shrink by 5.6 percent over the course of this year, ending 2020 with an unemployment rate of nearly 12 percent.

The budget office said it expected a historic drop in economic activity to be recorded this spring, but that recovery will begin to set in as social distancing measures are relaxed but not eliminated at the end of June.

Still, it forecasted a slow climb back from the damage the virus caused the economy and the federal budget. It projected growth of 2.8 percent in 2021 — which would be nowhere close to the sharp rebound that some Trump administration officials have said they expect — and a budget deficit of more than $2.1 trillion for the 2021 fiscal year.

By the close of the 2020 fiscal year, which ends in September, the budget office now expects the size of the national debt to exceed the annual output of the economy, with debt to gross domestic product at 101 percent.

As they’re urged to reopen, movie theaters say it is too soon

Some Republican governors are urging movie theaters to reopen sooner rather than later, despite business and public health realities that make an abrupt relighting of marquees impractical, if not impossible.

To help restart Georgia’s economy, Gov. Brian Kemp wants theaters to reopen starting Monday. Tennessee, where Regal Cinemas is based, plans to allow most businesses to reopen at the end of next week. South Carolina and Ohio are also restarting their economies. Texas and Florida are itching to do the same.

But movie theaters are worried about opening up too early, Nicole Sperling and Brooks Barnes report.

They don’t want to be lumped in with meatpacking plants and senior centers as hot spots for the virus. Already struggling financially, theaters fear that a too-soon return could stigmatize them as dangerous places to congregate. And with new movies from Hollywood not set to debut until the middle of July — at the earliest — opening too soon would only make operators spend money before they could truly recoup costs from patrons.

“Hell no, we’re not opening on Monday,” Chris Escobar, who owns the 485-seat Plaza Theater in Atlanta, said by phone. “When we do, it will not be because of political pressure. It will be because leading public health experts say our lives are no longer at risk.”

The major theater chains, which operate independently but consult one another on best practices, are spending their time determining what protocols should be established. These potentially include separating seating in auditoriums and longer times between showings to allow for deeper cleaning of theaters.

Consumer sentiment saw a record plunge in April but may be leveling off.

Consumers have been battered by the pandemic. But is it possible they’re seeing light at the end of the tunnel?

A closely watched index of consumer sentiment from the University of Michigan plunged 19.4 percent in April, according to data released Friday. That’s the biggest one-month drop on record, and follows an 11.8 percent drop in March.

But sentiment stabilized, or even edged up slightly, from a preliminary reading earlier in April. Although consumers’ assessments of their current economic conditions is in a deep slump, their expectations for the future have fallen by far less, suggesting that many Americans expect a relatively rapid economic rebound.

That optimism could provide a badly needed economic jolt as businesses begin to reopen in coming weeks. But Richard Curtin, chief economist for the Michigan survey, noted that it also poses a risk: If states move too quickly to return to business as usual and there is a renewed outbreak, it could dash consumers’ hopes and send sentiment back into free fall.

“The necessity to reimpose restrictions could cause a deeper and more lasting pessimism across all consumers, even those in states that did not relax their restrictions,” he wrote Friday.

Some companies seeking bailouts spent piles of cash on stock buybacks and dividends.

Last month, big restaurant chains like KFC, Wendy’s and Papa John’s asked the federal government for $145 billion in coronavirus relief funds.

These companies had been highly profitable in recent years. So where had all their money gone? Like much of corporate America, the restaurant chains had spent a large chunk on buying back their own stock, a practice aimed at bolstering its price, Emily Flitter and Peter Eavis report.

The crisis has exposed the potential failings of the shareholder-focused strategy embraced by many big companies. Shareholders, wanting stock prices to go higher, pushed management to use cash on buybacks and dividends. And senior executives, paid largely in stock and on the basis of how the stock performed, were happy to oblige.

The result was that companies often didn’t have much spare cash, leaving them more exposed to economic downturns.

Read Original: https://www.nytimes.com/2020/04/24/business/stock-market-live-coronavirus.html

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The coronavirus pandemic’s impact has been rippling through the U.S. economy, and market participants got fresh data Thursday morning from the U.S. Labor Department reflecting the continued damage being done to the U.S. labor market.

For the week ending April 18, another 4.427 million Americans filed for unemployment benefits. Economists were expecting 4.5 million initial jobless claims to be filed for the week. The prior week’s figure was revised lower to 5.237 million from the previously reported 5.245 million. Over the past five weeks, more than 26 million Americans have filed unemployment insurance claims.

Continuing claims, which lag initial jobless claims data by one week, totaled a record 15.98 million in the week ending April 11 after 11.976 million in the prior week. Consensus expectations were for 16.74 million continuing claims for the week ending April 11.

“At this point it would take a miracle to keep this recession from turning into the Great Depression II,” MUFG economist Chris Rupkey said in an email. “It is going to take years not months to put these pandemic jobless workers back to work at the shops and malls and factories and restaurants across the country … jobless claims are warning that the worst isn’t over yet for the American economy with businesses and consumers alike being sucked down into the abyss of the pandemic recession.”

Expect The Unexpected

Even as the number of jobless claims was expected to stay in the millions in the near term, economists broadly expect the figure to steadily decline going forward.

“Another horrendous number, but at least the trajectory is clearly downwards,” Pantheon Macroeconomics economist said in an email. “We anticipate a further decline in claims next week, but the rate of fall of Google searches for “file for unemployment” has slowed, suggesting it will take several more weeks before claims drop below one million. Note that in the single worst week after the crash of 2008, claims rose 665K.”

“Claims have moved passed the peak more visibly now, but the cumulative number is still rising significantly,” Morgan Stanley economist Jan Kozak wrote in a note Wednesday. The rise in the cumulative number will be due to the massive backlog of claims that are waiting to be processed, according to Kozak.

Nomura economist Lewis Alexander echoed Kozak’s prediction. “While the labor market remains under severe strain, states that imposed lockdowns relatively early are seeing claims activity improve somewhat,” he wrote in a note to clients April 17.

Certain states got hit harder than others last week as massive backlogs continued to pile up, and states that implemented “shelter-in-place” orders later than others saw an increase in claims. For the week ending April 18, California saw the highest number of initial jobless claims at an estimated 533,000 on an unadjusted basis, down considerably from 655,000 the prior week. Florida had an estimated 505,000, Texas reported 280,000 and Georgia had 244,000.

View Original Article: https://finance.yahoo.com/news/coronavirus-covid-weekly-initial-jobless-claims-april-18-165759755.html

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One oil price went negative on Monday, signaling that there is no place to store all the crude the world is producing but not using.

Something bizarre happened in the oil markets on Monday: Prices fell so much that some traders paid buyers to take oil off their hands.

The price of the main U.S. oil benchmark fell more than $50 a barrel to end the day about $30 below zero, the first time oil prices have ever turned negative. Such an eye-popping slide is the result of a quirk in the oil market, but it underscores the industry’s disarray as the coronavirus pandemic decimates the world economy.

Demand for oil is collapsing, and despite a deal by Saudi Arabia, Russia and other nations to cut production, the world is running out of places to put all the oil the industry keeps pumping out — about 100 million barrels a day. At the start of the year, oil sold for over $60 a barrel but by Friday it hit about $20.

Prices went negative — meaning that anyone trying to sell a barrel would have to pay a buyer $30 — in part because of the way oil is traded. Futures contracts that require buyers to take possession of oil in May are expiring on Tuesday, and nobody wanted the oil because there was no place to store it. Contracts for June delivery were still trading for about $22 a barrel, down 16 percent for the day.

“If you are a producer, your market has disappeared and if you don’t have access to storage you are out of luck,” said Aaron Brady, vice president for energy oil market services at IHS Markit, a research and consulting firm. “The system is seizing up.”

Refineries are unwilling to turn oil into gasoline, diesel and other products because so few people are commuting or taking airplane flights, and international trade has slowed sharply. Oil is already being stored on barges and in any nook and cranny companies can find. One of the better parts of the oil business these days is owning storage tankers.

“Traders have sent prices up and down on speculation, hopes, tweets and wishful thinking,” said Louise Dickson, an oil markets analyst at Rystad Energy, a research and consulting firm. “But now reality is sinking in.”

The world has an estimated storage capacity for 6.8 billion barrels, and nearly 60 percent is filled, according to energy experts.

Some of the oil glut is evident in Cushing, Okla., a critical storage hub where the oil that trades on the U.S. futures market is delivered. With a capacity to hold 80 million barrels of oil, Cushing has only 21 million barrels of free storage left, according to Rystad Energy, or less than two days of American production. As recently as February, Cushing was not even up to 50 percent. Now, experts say it will be filled to the brim in May.

Storage is almost completely filled in the Caribbean and South Africa, and Angola, Brazil and Nigeria may run out of warehousing capacity within days.

In his news briefing on Monday, President Trump said the government was “looking to put as much as 75 million barrels” into the Strategic Petroleum Reserve, which is used as a buffer during crises and was created after the 1973-1974 oil embargo.

The reserve has about 635 million barrels of oil, and is equipped to store 75 million barrels more. But the reserve can take only about 500,000 barrels a day.

Congressional Democrats recently balked when the administration proposed spending $3 billion to fill the reserve as part of the stimulus package lawmakers passed last month. But on Monday Representative Lizzie Fletcher, a Houston Democrat, said she would introduce legislation appropriating funds for a reserve purchase.

But it will be hard to quickly fix the oil industry’s problems. The oil infrastructure is complicated and it’s not easy to turn off the taps. In addition, countries like Saudi Arabia and Russia, whose economies are reliant on oil, only reluctantly cut production.

Shutting down oil wells and then restarting them when demand returns can require expensive manpower and equipment. Fields do not always recover their former production. In addition, some oil companies keep pumping, even if they are losing money, in order to pay interest on their debts and stay alive.

The huge drop in prices on Monday was exaggerated by the way oil prices are set.

When traders sell oil they guarantee delivery at a future time. Normally the price differences between oil for next month and the following one are relatively minor. But on Monday oil to be delivered next month, or May, was essentially deemed worthless. Oil set for delivery in June also fell but not nearly as much — more reflective of the market’s view on the current value of crude.

Brent crude, the oil price benchmark outside the United States used by much of the world, whose May contract has already expired, fell about 5 percent to a little under $27 a barrel.

The disparities showed a market “undergoing extreme stress,” said Antoine Halff, a founding partner of Kayrros, a research firm. “It’s a sign of the very real imbalance between supply and demand.”

A little over a week ago, there was some optimism in the oil industry. The Organization of the Petroleum Exporting Countries, Russia and other producers said they would cut 9.7 million barrels a day of production, or about 10 percent of global oil output, the largest cut ever. It was a grim acknowledgment that global demand had collapsed.

But that record cut will not be nearly enough. Analysts expect daily oil consumption to fall by as much as 29 million barrels in April, about three times the cuts pledged by OPEC and its allies, and May isn’t expected to be much different.

“It’s relatively impressive in terms of the overall number, but it’s not enough to tighten the market between now and the fourth quarter of 2020,” David Fyfe, chief economist at Argus Media, a commodities pricing firm, said about the cut by OPEC and its partners.

U.S. oil producers are also reducing production, but not rapidly enough. At the current pace, American production will decline to less than 11 million barrels a day by the end of the year, from 13.3 million barrels a day at the end of 2019.

Many companies are already reporting substantial losses, and experts said businesses across the oil patch will have to seek bankruptcy protection in the coming months.

Halliburton, the giant provider of equipment, workers and services to oil companies, on Monday reported a $1 billion loss in the first quarter, in contrast to net income of $152 million in the same period a year earlier.

Gary Ross, chief executive of Black Gold investors, an oil trading firm, said demand was falling so fast that U.S. companies that recently were exporting oil are now cutting production.

“It doesn’t matter whether it is $15, $10 or $8, you are still going to” stop production, Mr. Ross said. ConocoPhillips, one of the largest U.S. oil companies, said last Thursday that it would temporarily curtail about 225,000 barrels a day of production.

Such cuts should help stabilize the markets, but it might take months. The U.S. contract for oil delivered in May 2021 was trading on Monday at about $35 a barrel, hinting at how long it might take for prices to reach levels they were at just a few weeks ago.

The oil industry’s plight is forcing policymakers to consider intervening more forcefully.

And on Tuesday, the Texas Railroad Commission, which regulates oil and gas drilling, will take up a proposal for a 20 percent statewide production cut on Tuesday. The commission used to regularly manage oil production but hasn’t done so since the early 1970s.

Exxon Mobil and other large companies have opposed mandated cuts but some smaller companies want the commission to act.

Scott Sheffield, chief executive of Pioneer Natural Resources, told the commission at a hearing last week that if the oil price stayed around $20 a barrel for a while, 80 percent of the hundreds of independent oil companies in the state would be forced into bankruptcy and 250,000 workers would lose their jobs.

At $30 a barrel, many companies would be “crippled,” Mr. Sheffield said. “But at least the industry will survive.”

View original article on The New York Times

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“Unemployment Rate Will Break Through 20%”

That’s what Joseph Brusuelas said this week. The Chief Economist at RSM US LLP explained that “The U.S. unemployment rate will break through 20% this spring and likely test the 1933 Depression-era high of 24.9% this year.”

With stimulus aid still not in everyone’s hands, the odds grow more in favor of further unemployment. Earlier this morning as the figures were released – just like in weeks prior – stocks actually jumped. Maybe the reason was that consecutive weeks of compounded unemployment numbers weren’t growing? Whatever the theory or justification behind that thought, the signs aren’t great for our current economic situation. As the International Monetary Fund puts it, the “Great Lockdown” could cause a ripple of problems still not unearthed.

The Great Lockdown

The International Monetary Fund predicted the “Great Lockdown” recession would be the steepest in almost a century. The group warned the world economy’s contraction and recovery would be worse than anticipated. That’s if the coronavirus lingers or returns.

It said output in both advanced and emerging markets would “understood” pre-virus trends through 2021. This would essentially destroy most lingering hopes of a V-shaped economic rebound. The cumulative loss in global GDP this year and next could be about $9 trillion. That’s bigger than the economies of Japan and Germany combined, IMF chief economist Gita Gopinath said.

“This is a crisis like no other, which means there is substantial uncertainty on the impact it will have on people’s lives and livelihoods.”

IMF chief economist Gita Gopinath

As each week passes without a clear path to reopening the economy, things get worse. While U.S. President Trump continues to refute any statements against the “strongest economy in the world,” health officials remain very cautious on the next steps. What could be the worst case is if the economy reopens and the virus strengthens. Would we shut down again or attempt to weather what could become a very bad storm?

Is The Curve Flattening?

It’s tough to say if the curve is flattening in the U.S. or not. Earlier on Thursday, NY Governor Cuomo made a shocking announcement. The 606 new deaths in New York was the lowest figure in 10 days, but the governor said more progress against the virus was needed before he would lift restrictions. The NY Governor said that he would extend New York State’s shutdown to May 15, in coordination with other states.

“What happens after then? I don’t know,” Mr. Cuomo said of the May 15 extension. “We will see depending on what the data shows.”

Is this cautious optimism or does the public not know something the government does. It’s clear that the President, given the chance, would open the economy “tomorrow”. But health officials and states’ governors alike have strongly pushed against a knee-jerk restart of 2020. While cautiously optimistic, I’m still sifting through the clutter myself to see what other countries have done. Data out of China remains unclear, while Italy appears to have started seeing some daylight.

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Dow jumps 559 points as investors cheer signs the coronavirus outlook is improving

US stocks rose on Tuesday as investors cheered signs the spread of the coronavirus pandemic may be easing. Earnings season also kicked off in earnest, with traders monitoring the virus’ impact on corporate profits.

JPMorgan, Johnson and Johnson, and Wells Fargo reported results before the opening bell. JPMorgan and Wells Fargo both reported large profit declines, sending their stocks down more than 2%.

Johnson and Johnson climbed roughly 5% after reporting a jump in profit as consumers flocked to their products during the coronavirus pandemic. Amazon rallied to an all-time high, while Tesla jumped as much as 14% on an upgrade from Credit Suisse.

Slowing Outbreak Breeds New Optimism

Investors are also looking for optimism around the coronavirus outbreak in the US. On Monday, President Donald Trump said he’d like to reopen the country “ahead of schedule,” without giving any further details. New York Gov. Andrew Cuomo also said on Monday that it appears the worst is over in what has become the epicenter of the US crisis.

“Caution and unease are set to engulf financial markets ahead of one of the most uncertain earnings seasons for years, as it is expected to offer a bitter appetizer of the painful blow the coronavirus outbreak has dealt to US corporations,” Lukman Otunuga, a senior research analyst at FXTM, told Business Insider.

He added: “Nevertheless, investors remain somewhat hopeful that the pandemic may be peaking, and this sentiment was reflected across Asian markets on Tuesday morning.”
The recent optimism stands in contrast to mounting data that shows the US and the world in economic distress. Nearly 17 million Americans have filed for unemployment benefits in just three weeks as coronavirus layoffs persist. Further, the International Monetary Fund said on Tuesday that the “great lockdown” global recession will be the worst since the Great Depression.

Meanwhile, West Texas Intermediate crude oil slumped 8% as lower demand from the coronavirus crisis outweighed historic production cuts by OPEC and its allies over the weekend. Gold traded mixed after reaching a seven-year high on Monday amid investor appetite for safe-haven assets.

view original source: https://markets.businessinsider.com/news/stocks/stock-market-news-today-index-reaction-coronavirus-pace-earnings-season-2020-4-1029091212

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Stocks Start Week With Declines; Crude Oil Rises: Markets Wrap

Global markets started the week cautiously as a new earnings season begins. Uncertainty on the corporate impact of COVID-19 weighs heavily on companies. Meanwhile, oil prices pared gains following the historic output cut deal over the weekend.

While futures dropped during early morning trade, treasuries steadied during trading in Asia. The US dollar fell after OPEC+ came to an agreement on cutting some 9.7 million barrels per day on crude oil output. The initial plan was to cut 10 million barrels a day.

What’s Next For COVID-19?

In other news, the yen advanced along with the euro to the highest level since early April. there are more than 60 new coronavirus vaccines in development across the world. Three are already being tested in Human Trials according to the World Health Organization.

With earnings season kicking off this week, investors will be hoping to get a sense of how bad the hit to global profits could be as the coronavirus upends the world’s economies. Without an effective therapy or a vaccine for the novel coronavirus, the U.S. economy could face 18 months of rolling shutdowns as the outbreak recedes and flares up again, Federal Reserve Bank of Minneapolis President Neel Kashkari said.

In focus this week:

U.S. banks and financial firms begin reporting first-quarter earnings, led by JPMorgan, Citigroup, Bank of America, BlackRock, Goldman Sachs and Wells Fargo. Bank Indonesia rate decision and briefing TuesdayBank of Canada has a rate decision WednesdayAlso Wednesday, U.S. retail sales are poised to fall in March by the most ever seenChina releases GDP, industrial production and retail sales and jobless figures Friday

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