04May2020 Market Close: Wall Street Closed Up Nicely For The Small Caps, NASDAQ Closed Up 1.2%, DOW Closed Up 26 Points, WTI Settled Higher At 23.60, Gold Steady At 1703, The US Treasury Is Seeking To Borrow $3 Trillion

Oil up 3% as countries ease lockdowns, production falls

Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold.

France deals blow to Amazon as warehouses remain shut

France has rejected a request from e-commerce giant Amazon to tap a state-funded scheme to subsidise furloughed employees at its six closed warehouses in the country.

Stocks fall as U.S.-China tensions threaten rally

Global stock markets fell on Monday on concerns U.S.-Chinese bickering over the origin of the coronavirus outbreak will ignite a new trade war, speculation that strengthened the dollar and drove gold prices higher.

S&P 500, Dow drop as Buffett ditches airlines, China tensions flare

The S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China dispute over the origins of the coronavirus outbreak and a move by billionaire Warren Buffett’s Berkshire Hathaway to dump stakes in major U.S. airlines.

Massive U.S. stock bounce stokes doubts, provokes bears

Investors are treating the U.S. equity market’s blistering rally with a dose of caution, socking away cash, staying on the sidelines or buying insurance against a reversal even as markets scream higher in the midst of the coronavirus pandemic.

J. Crew files for bankruptcy as preppy retailer succumbs to COVID-19 fallout

J. Crew Group Inc filed for bankruptcy protection on Monday with a plan to hand over control to lenders, adding to a list of brick-and-mortar retailers pushed to the brink by widespread store closures in response to the COVID-19 pandemic.

U.S. airline shares tumble as Buffett sell-off adds to worries

Shares of the top four U.S. airlines dropped on Monday after billionaire investor Warren Buffett said Berkshire Hathaway offloaded its entire stake in the carriers last month, adding to the sense of crisis around the industry.

Amazon plans to extend closure of French warehouses until May 8

Amazon plans to extend the closure of its French warehouses until May 8 included, the e-commerce giant said on Monday.

Coronavirus will constrain U.S. meat supply despite Trump order: Tyson Foods

The coronavirus crisis will continue to idle U.S. meat plants and slow production, Tyson Foods Inc said on Monday, signaling more disruptions to the U.S. food supply after U.S. President Donald Trump ordered facilities to stay open.

‘Investors’ Ignore Mumbling 90-Year-Old Omaha Man – BTFD As Buffett Sells

‘Investors’ Ignore Mumbling 90-Year-Old Omaha Man – BTFD As Buffett Sells

It’s not just airlines…

Here’s the real reason why billionaire investing ‘genius’ Warren Buffett didn’t spend one penny of his massive cash pile as stocks plunged at record pace… according to his favorite broad market indicator, US stocks have never been more expensive…

US Treasury To Borrow A Record $3 Trillion This Quarter

US Treasury To Borrow A Record $3 Trillion This Quarter

So much can change in three months.

Back on February 3, the Treasury in its quarterly announcement of marketable borrowing estimates was delighted to announce that “During the April ” June 2020 quarter, Treasury expects to pay down $56 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $400 billion.”

Well, oops.

Fast forward to today, when one global (still ongoing) coronavirus pandemic, and one global economic crisis later, the Treasury now expects to boost the net amount of marketable Treasury debt outstanding by an unprecedented $3 trillion in the April-to-June quarter in order to fund the trillions in stimulus and bailout payments.A

This is what the Treasury said about its latest borrowing needs:

During the April ” June 2020 quarter, Treasury expects to borrow $2,999 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $800 billion.A The borrowing estimate is $3,055 billion higher than announced in February 2020.A

According to the Treasury, the surge in borrowing needs is “driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April ” June until July, and an increase in the assumed end-of-June Treasury cash balance.”

But wait there’s more because looking at the next quarter (July though September) the Treas …

Muscle’d Out: Gold’s Gym Files For Chapter 11 Due To Government Lockdowns

Muscle’d Out: Gold’s Gym Files For Chapter 11 Due To Government Lockdowns

Gold’s GymA International Inc. filed for Chapter 11 on Monday (May 4) as a way to “facilitate the financial restructuring of the company” after nationwide lockdowns resulted in itsA inability to service debt payments, read a company press release.A

California Gov Says Some Retail Businesses Can Begin “Limited Reopening” Thursday: Live Updates

California Gov Says Some Retail Businesses Can Begin “Limited Reopening” Thursday: Live Updates

Summary:

Deaths decline for 5th day

Japan extends state of emergency

Spanish opposition threatens to torpedo vote to extend lockdown

Charlie Gasparino says NFL to announce schedule on Thursday

Cali gov says businesses can begin “limited” reopening as soon as Thursday

European clinical trial “Project Discovery” results to be released May 14

NY reports uptick in deaths, still lower than last week’s average

UK reports drop in new cases, deaths

Macron warns European borders may remain closed until September

Florida becomes latest state to reopen much of economy on Monday

Italy, Spain and other European and Asian economies are also reopening

Iran to allow Friday prayers

UK defense secretary says China owes the world ‘an explanation’

*A A A A *A A A A *

Update (1550ET): Fox Business reporter Charlie Gasparino just reported that the NFL is planning to announce its schedule for the 2020-2021 season on Thursday.

SCOOP-@NFL schedule likely to be announced Thursday night; fan attendance will likely be left up to states meaning Texas could have some fans at stadium more now @FoxBusiness …

What Modi govt should do after the Covid lockdown ends

What Modi govt should do after the Covid lockdown endsPost lockdown, the govt must focus on healthcare, municipal services including drinking water, sanitation.

Fiscal deficit, the other casualty of Covid-19

Fiscal deficit, the other casualty of Covid-19India’s budget gap for the year ended March 31 has touched 4.4% of gross domestic product, says sources.

RBI could be extending your loan holiday

RBI could be extending your loan holidayThe RBI is considering a proposal for extending the moratorium on bank loans by another three months.

The Margin: Meanwhile, in Texas: Park ranger pushed into lake for asking visitors to follow social-distancing guidelines

Give them an inch, and they push a park ranger in the lake.

Key Words: The wealthy face ‘one clear implication’ from the coronavirus, says man who led 2008 crisis restructuring efforts

Jim Millstein, co-chairman of Guggenheim Securities, talked to Bloomberg TV interview about why it is inevitable � the rich will be hit with greater taxes to pay for the debt pile that continues to Mount.

The Tell: Why the Dow industrials won’t get derailed by U.S.-China coronavirus tensions

Rising tensions between the U.S. and China over the handling of the COVID-19 pandemic are sending shivers through financial markets, but shouldn’t have a lasting effect on a stock market that’s in rebound mode, says Capital Economics.