Margin Calls Hit Wall Street Like ‘30 LTCMs Out There’ at Once

Margin Calls Hit Wall Street Like ‘30 LTCMs Out There’ at Once

(Bloomberg) -- If you’re sensing market players are overcome with shoot-first-ask-questions-later palpitations, you’re not alone. Wall Street says margin calls are at work in this week’s market meltdown, and it’s stirring dark memories.Wells Fargo & Co. strategists join a growing chorus seeing “accelerating” broker demands for investors to post more collateral to cover losses in their leveraged accounts.That’s fueling disorderly trading conditions that at one point recalled the blow-up of one of the most infamous hedge funds in modern finance, according to the San Francisco-based bank.“One investor said it felt like ‘there were 30 LTCMs out there,’” a team led by Chris Harvey wrote in a Thursday note.Long-Term Capital Management, or LTCM, became the poster child for the dangers of leveraged investing more than two decades ago. As the Asia crisis of the late 1990s unfolded, its relative value bets in fixed-income markets imploded, prompting margin calls the firm couldn’t meet....

Is Nvidia Stock in the Buy Zone Now?

Even though the markets will likely remain volatile, I still think it's worth taking some positions in top tech companies, and NVIDIA (NASDAQ:NVDA) stock may be one of those names.Source: michelmond / Shutterstock.com Before the coronavirus from China pushed equities into bear territory, Nvidia was running on all cylinders. In its latest reported quarter, its revenues jumped 41% year-over-year to $3.11 billion and its earnings, excluding some items, came in at $1.89 per share, for a YOY gain of 136%.Granted, Nvidia does face some lingering risks. Perhaps its biggest risk is the competitive environment. Advanced Micro Devices (NASDAQ:AMD) has continued to make inroads in the lucrative datacenter market. Despite AMD's relatively small size, it has been able to push the boundaries of innovation.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIntel (NASDAQ:INTC) is another rival that is gaining traction. Of course, the company already is dominant in the datacenter market...

Cramer's Stocks Picks For During And After The Coronavirus Outbreak

Investors should keep their "eyes on the prize," but avoid large stock purchases at current levels because there is still plenty of room for "more ugly headlines," Jim Cramer said on Thursday.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Business Tools Investors should avoid any temptation to "buy sizably" with the market trading near multi-year lows, Cramer said on "Mad Money." The unfortunate reality is the coronavirus pandemic "may just be getting started" and investors should focus on companies that can thrive in the current environment.Businesses need to continue working and as it turns out many people are realizing that operating from home isn't all that bad. In fact, all the commuting to and from work and the associated carbon emissions has proven to be "unnecessary for millions of people."Two big winners from this trend include Cisco Systems,...

Nasdaq warns of market manipulation during coronavirus volatility

Financial firms should be on the lookout for potential market manipulation as the spike in volatility and volumes driven by coronavirus concerns could embolden traders with bad intentions looking to "hide amongst the noise," Nasdaq Inc said on Friday. The U.S. stock market is on course for its worst month in three decades as fears of the severity of the pandemic have led to a massive sell-off, with the S&P 500 losing nearly 30%, or more than $8 trillion, in value since hitting a record closing high on Feb. 19. As volumes spike, so do the number of trading surveillance alerts at financial firms, but surveillance analysts need to be vigilant and not assume that the rise is just a normal response to the increased market activity, two Nasdaq executives said in a post on the exchange operator's website....

3M Stock Is an Attractive Defensive Play

With its shares down more than 24% since January, is 3M (NYSE:MMM) stock a buy? The market maelstrom has made blue-chip names like this industrial conglomerate worth buying. A true "dividend aristocrat," the stock now sports a healthy 4.3% yield. But that's not all! Since the stock's valuation is reasonable, it gives investors a chance to own a high-quality stock at a fair price. Source: JPstock / Shutterstock.com The question is if the market has reached a bottom. Fear and uncertainty continue to plague investors. Even though markets may drop further, 3M is a defensive stock, so it could provide investors with a good opportunity.Let's dive in and see why MMM stock could be a buy at today's prices.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why Consider MMM Stock Today?It makes sense for investors to be skeptical of 3M stock. As InvestorPlace columnist Tom Taulli noted in his...