The coronavirus epidemic, and the economic and society lockdowns put in place to combat it, have body-slammed the financial world; the S&P 500 is still down 13% even after a 5 week rally, while oil prices are stuck in a doldrums, with Brent trading at just $30 and WTI at $25. Corporate earnings season has been grim, and some 120 S&P companies have rescinded their 2020 guidance while others have canceled dividend payments or stock buybacks.So, investors are confused; they aren’t seeing the usual signals that indicate what the market may do, and opinions are deeply divided on whether we’ll see a true rally or a long-term bear cycle. Writing from Wells Fargo, head of equity strategy Chris Harvey has come down on the bearish side, but with a caveat. “A near-term equity market pullback should not be unexpected – but we believe selloffs will be much shallower than those in...
(Bloomberg) -- Bitcoin appears to be running out of steam just before one of the most anticipated milestones among cryptocurrency enthusiasts.The largest digital token tumbled over the weekend, declining about 13% to around $8,675. It rebounded to about $8,840 as of 10 a.m. in New York trading on Monday. The decline took place ahead of a closely watched technical event known as its halving, when the rewards miners receive for processing transactions will be cut in half as soon as later today.“It’s likely that we’re going to see increased volatility through May, with the pandemic, ongoing stimulus measures and the halving,” Rich Rosenblum, co-head of trading at crypto market maker GSR, said in an email. “The record open interest for futures and options at multiple exchanges adds to this. The market is in a state of information and position overload, exacerbating the potential for volatile moves.”Still, Bitcoin’s up near 25% this...
St. Louis Fed President James Bullard joins Yahoo Finance’s Alexis Christofourous, Brian Sozzi and Brian Cheung to discuss why he believes negative interest rates are not a clear remedy for the coronavirus-induced economic crisis in the United States, despite market bets on below-zero rates next year. ...
Tesla Inc (NASDAQ: TSLA) is yet again relying on debt to keep its operations going in China, with the electric vehicle manufacturer negotiating a loan facility, according to an 8-K filing with the SEC.About Tesla's Loan Tesla has entered into a working capital loan contract with the Chinese commercial lender Industrial and Commercial Bank of China Ltd for an unsecured revolving facility of up to 4 billion yuan ($563,928,320).Tesla said it intends to use the loan proceeds for expenditures related to production at its Shanghai Gigafactory. This new facility will mature on the first anniversary of the first borrowing under the loan.The applicable interest rate will be equal to the market-quoted interest rate published by an authority designated by the People's Bank of China, minus 0.35% for yuan-denominated loans, or the sum of one-year LIBOR plus 0.8% for U.S. dollar-denominated loans.What It Means For Tesla It was only in December that...
(Bloomberg) -- In the equity market, fear of missing out seems to be overshadowing fear of all that’s wrong with the economy. Goldman Sachs Group Inc. says pessimism will soon get the upper hand and send the S&P 500 Index down almost 20% in the next three months.Fiscal and monetary support over the past few weeks of the coronavirus pandemic successfully warded off a financial crisis, but a return to economic normalcy is still a long ways away and investors have gotten ahead of themselves, the bank’s chief U.S. equity strategist, David Kostin, wrote in a report.Financial, economic and political risks darken the outlook for domestic equities, Goldman warns. The bank cites the lack of flattening in the U.S. infection curve outside of New York, what promises to be a lengthy re-start process, a 50% hit to buybacks in 2020 and the risk of higher corporate taxes and de facto consumption...
(Bloomberg) -- AMC Entertainment Holdings Inc. jumped as much as 56% on a media report that Amazon.com Inc. has discussed a potential takeover of the largest U.S. movie-theater owner.It’s unclear if the talks are active or will lead to a deal, the U.K.’s Mail on Sunday newspaper said, citing unidentified sources. AMC and Amazon didn’t immediately respond to requests for comment Monday.AMC shares rose as much as $2.31 to $6.41 in premarket trading, and were up 41% to $5.76 at 9:37 a.m. in New York. The stock was down 43% this year through Friday, battered along with the rest of the cinema industry by a worldwide shutdown for the coronavirus pandemic.The reported talks are unlikely to spark a price war for AMC, Bloomberg Intelligence media analyst Amine Bensaid said in a note. “Movie-going is unlikely to fully bounce back in a post-Covid-19 world and may create risks for an acquirer,” he...
