Month: March 2020

(Bloomberg) — As the coronavirus prompts talk of an earnings recession for most Asian emerging stocks, there’s an industry that’s holding up: chipmaking.

The worldwide lockdowns due to the virus and the ensuing contractions in output have sparked indiscriminate selling across industries, and dismal earnings forecasts for this quarter and beyond — except for the tech industry.

Micron Technology Inc. last week reported adjusted earnings that beat Street estimates by 24{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} and predicted stronger-than-expected revenue, fueling optimism about other chipmakers’ prospects. With most of the population in major economies worldwide working or learning remotely, online and ecommerce services are booming,

(Bloomberg) — U.S. stock futures erased losses, as traders reacted to China’s rate cut on seven-day reverse repurchase agreements on Monday. As part of the stimulus, the People’s Bank of China injected 50 billion yuan ($7.1 billion) into the banking system.

Contacts on the S&P 500 expiring in June rose 0.1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} at 1:41 p.m. in Tokyo on Monday, erasing a drop that exceeded 3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} in early trading. China’s central bank cut the interest rate it charges on loans to banks by 20 basis points, the biggest amount since 2015 as authorities ramp up their response to cushion an economic slowdown.

When the oil markets go into a deadly tailspin as they have right now, sooner or later, everybody in the value chain starts to feel the heat keenly. 

Only three months into the year, oil and gas companies are trading at roughly half their valuations as the -49.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} YTD return by the Energy Select Sector Fund (XLE) portends, thanks to crude prices tanking to multi-decade lows.

It was only a matter of time before the shockwaves hit oil refineries, with the sector now sinking into the red.

Gasoline and jet fuel margins have plunged to their lowest levels in more

(Bloomberg) —

Lawmakers in Washington are making it easier for Americans struggling with the fallout from the coronavirus to draw on the trillions of dollars in their 401(k)s and other retirement accounts.

For a limited time, Americans will be able to withdraw money from tax-deferred accounts without penalties under a stimulus package signed into law Friday by President Trump. Rules on 401(k) loans will be relaxed, and some retirees can avoid so-called required minimum distribution, or RMD, rules that might have been onerous.

Read more: House faces urgency to act on Senate’s $2 trillion virus rescue bill

Some of the

(Bloomberg) — U.S. equity futures dropped after the first three-day rally in American equities since mid-February, while Asian shares advanced as investors take stock of strengthening stimulus efforts across the globe.

India’s bonds and stocks rose along with the rupee after the central bank slashed the benchmark rate by three quarters of a percentage point. S&P 500 futures dropped more than 1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} after the index surged more than 6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} Thursday. The dollar headed for its biggest weekly retreat since 2009, while Treasuries advanced. Australian stocks fell, while most other regional markets rallied.

The U.S. has now overtaken China for the

Metal Dynamics (STLD) kicks off an enormous week for metal inventory earnings after Monday’s shut. Nucor (NUE) earnings are due Thursday afternoon and Cleveland-Cliffs (CLF) experiences early Friday. File earnings are anticipated throughout the board. However the week began with a downer as Morgan Stanley slashed its worth goal for STLD, NUE and CLF shares, in addition to U.S. Metal (X).

X

Analyst Carlos De Alba says he expects investor worries that metal costs have peaked to weigh on metal shares, working towards any near-term rally. De Alba downgraded STLD inventory to equal weight from obese, chopping his worth goal