If ever an example was needed of the old axiom “buy the rumor, sell the news,” then Gilead Sciences (GILD) could be used as its poster boy.Following a surge which saw the healthcare giant’s share price appreciate by 30% in 2020, the stock was sold off in Friday’s session, dropping nearly 4% following the release of the company’s earnings results. The sell off was triggered by a slew of downgrades from the Street.So, was Gilead’s Q1 earnings that bad? Nope, the company posted beats on both top and bottom line. Revenue of $5.55 billion indicated a 5.1% year-over-year increase and beat the Street’s estimate by $110 million. Q1 Non-GAAP EPS of $1.68 beat the forecasts by $0.12.But Friday was an action-packed day for Gilead investors on account of another more pressing matter. The reason for Gilead’s impressive share price gains in these pandemic driven times has been well documented, as its...
(Bloomberg) -- The Federal Reserve’s emergency rescue of the U.S. mortgage market should have set off celebration among lenders trying to keep up with demand from borrowers. Instead, executives at Quicken Loans got a hefty margin call.That was just a fraction of the pain the Fed unintentionally inflicted on lenders in mid-March when it announced plans to buy a massive amount of mortgage securities. The move, meant to steady the market, caught many lenders by surprise and tipped their routine hedges deep into the red.It’s added to strains throughout the industry that have left the gap between mortgage rates and benchmark Treasuries the widest since 2009. Back then, bank failures and concerns about the housing market kept home loans from becoming cheaper for borrowers. Now, it’s obscure parts of the financial world that are holding back efforts to shave thousands of dollars from many Americans’ biggest expenses -- their mortgages.“The Fed...
Last week, Boeing Co said it would cut 10% of its global workforce, or 16,000 jobs, as it has slowed some production rates, while supplier SpiritAero Systems Holdings said on Friday it is cutting another 1,450 jobs in Kansas. GE shares were down 4% on at $6.23. The GE Aviation job cuts are part of the $3 billion in cost and cash savings announced by the company last month and include previously announced cuts, including a 10% cut to its U.S. workforce announced in March....
(Bloomberg) -- President Donald Trump said some states “aren’t going fast enough” to reopen, even as he acknowledged that the nation’s death count would likely be higher than he had predicted. Trump accused Beijing of attempting a cover up and promised a conclusive report on the pandemic’s origins.The worst-hit countries in Europe moved to ease curbs as cases slowed. Italy began to reopen its economy after two months, but the premier was criticized for being too cautious, and Spain started to relax its lockdown regime after weeks of confinement.Goldman Sachs and Morgan Stanley economists said there is evidence the world economy is bottoming out. Factory output across Asia and Europe slumped and a recovery will probably be “frustratingly slow,” IHS Markit warned, while Hong Kong’s downturn is now the worst on record. J. Crew filed for bankruptcy and Tyson Foods warned supply disruptions would probably continue.Key DevelopmentsVirus Tracker: global cases pass...
