Written by Gary
Equity markets surged today as the BTFDers hunted for bargains (SPY +4.3%). Central banks said they stood ready to counter the economic impact from the coronavirus following last week’s steep sell-off.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Recording Academy fires first female CEO, alleging misconductThe organizers of the Grammy Awards said on Monday they fired the chief executive they had placed on administrative leave in January. |
| Apple to pay up to $500 million to settle U.S. lawsuit over slow iPhonesApple Inc has agreed to pay up to $500 million to settle litigation accusing it of quietly slowing down older iPhones as it launched new models, to induce owners to buy replacement phones or batteries. |
| Amtrak names new CEO to head money-losing passenger railroadAmtrak said Monday it had tapped Atlas Air’s chief executive to run the money-losing U.S. passenger railroad that has seen record traffic. |
| Amazon’s fight against $277 million EU tax order kicks off in court on ThursdayAmazon will on Thursday seek to overturn an EU order to repay about 250 million euros ($277 million) in back taxes to Luxembourg at Europe’s second-highest court, one of a series of high-profile cases marking the bloc’s crackdown on unfair tax deals. |
| Stocks rally after last week’s rout on central bank policy hopesEquity markets around the world rose on Monday as the prospect that central banks will cut interest rates to soften the economic blow of the coronavirus heartened investors and drove U.S. government debt yields to record lows. |
| Oil up over 4% as hopes of OPEC cut, stimulus counter virus gloomOil prices rose over 4% on Monday, reversing an early fall to multi-year lows as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak. |
| Wall Street buys the dip as investors bet on stimulusWall Street surged on Monday as investors hunted for bargains following reassurances by central banks that they stood ready to counter the economic impact from the coronavirus following last week’s steep sell-off. |
| U.S. manufacturing sector stalls as coronavirus hits supply chainsU.S. factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the fast-spreading coronavirus outbreak, which has revived financial market fears of a recession. |
| IMF, World Bank say ready to address economic challenges of coronavirusThe International Monetary Fund and the World Bank on Monday said they stood ready to help member countries address the human and economic challenges of the fast-spreading coronavirus outbreak, including through emergency funding. |
| US Death Toll Climbs To 6 As Experts Warn Hundreds Likely Already Infected In Washington: Live UpdatesUS Death Toll Climbs To 6 As Experts Warn Hundreds Likely Already Infected In Washington: Live Updates Summary: US death toll climbs to 6; all in WA, which has 18 cases 2 new cases confirmed in Tampa Bay 1st case reported in New Hampshire Santa Clara County confirms 2 more cases, bringing county total to 9 Gottlieb warns US cases likely in ‘low thousands’ Illinois announces 4th case Boris Johnson: “A very significant expansion” of the virus is “clearly in the cards” Italian death toll climbs 18 to 52 while total cases surpasses 2,000 BMW tells 150 to quarantine after Munich employee infected Algeria total hits 5 Senegal becomes 2nd sub-Saharan country to confirm virus WHO’s Tedros: Virus is “common enemy” of humanity so don’t focus on blame Jordan reports first two cases French death toll revised to 3, total cases climb to 191 Tunisia reports first case UK total climbs to 40 OECD warns global growth could fall by half Indonesia reports first cases “Progress is being made” toward a vaccine Cuomo says NY expects more cases India confirms 2 more cases ‘Official’ Iran death toll hits 66 EU confirms 38 deaths across 18 members First cases confirmed in Fla. 2 Amazon employees test positive in Milan Virus now in 8 US states: Washington, California, Illinois, Rhode Island, New York, Florida, Oregon and New Hampshire San Antonio virus patient re-hospitalized after testing positive China warns it could face ‘loc … |
| Panic-Buying Sends Dow To Best Point-Gain Ever On Hopes Of InterventionPanic-Buying Sends Dow To Best Point-Gain Ever On Hopes Of Intervention The BoJ bought a bucketload of ETFs overnight,and lifted Japanese stocks. The PBOC’s National Team performed miracles lifting Chinese stocks amid collapsing PMIs. The IMF/World Bank promised “help” and everyone is now anticipating the G7 – because they’ve always been so great at agreeing on a unifying action! And all of that (along with Jay Powell’s brief statement on Friday and Kudlow/Mnuchin’s calls for an emergency rate cut) was enough to lift US stocks, but a ton of worsening US virus headlines sparked some weakness as the day wore on, only to be rescued by Trump’s optimistic tone on vaccines and treatments… |
| SaxoBank: Equities Are In Rough & Unpredictable Seas, Central Banks Will Not Alleviate The PainSaxoBank: Equities Are In Rough & Unpredictable Seas, Central Banks Will Not Alleviate The Pain Authored by Peter Garnry via SaxoBank, Summary:Â Â
Equities are caught in the middle of what may become the first global flu pandemic since the Hong Kong flu in 1968. S&P 500 was down 11.5% last week but was down a whopping 14.2% at the low. In today’s session the S&P 500 futures have fluctuated wildly currently down 0.8% from Friday’s close. While initial green shoots earlier today was off a good Chinese session and anticipation of a coordinated central bank action. Our view is that the Fed could cut by 50 bps. this week to try to infuse some stability and confidence into the system as markets the week of policy panic. But the impact will be short lived as a pandemic drives actual consumer behaviour that can cause an entir … |
| Capital Market Freeze Goes Global – IPOs Delayed Over Market TurmoilCapital Market Freeze Goes Global – IPOs Delayed Over Market Turmoil Update (March 02): With economic activity crashing in China and capital markets dislocated across the world, credit markets ground to a halt last week. Fears are emerging that the Covid-19 outbreak could derail the global economic expansion cycle.  We documented some of the first warning signs of stress developing as high yield and investment-grade spreads surged last week. On top of that, capital markets in Europe froze, with more than $650 million in IPOs pulled.  |
| Coronavirus could bring more trouble for the economy in perilCoronavirus could bring more trouble for the economy in perilAccording to the latest OECD forecasts, India’s real GDP growth is expected at 5.1 per cent. |
| Why India’s real problem is not inflationWhy India’s real problem is not inflationThe real problem facing India and the world economy will be growth, not inflation. |
| Jack Welch: The chief who became superstarJack Welch: The chief who became superstarWelch transformed GE from a maker of appliances into an industrial and financial services powerhouse. |
| Five ways investors can cash in on coronavirus stock slump, UBS saysEmerging market equities, oversold U.S. sectors and stocks and digitally-focused œlong-term winners are among the five main œareas of opportunity for investors after the dramatic coronavirus stock rout, UBS said. |
| Tax Guy: 5 last-minute tips to save money before Tax DayThere’s still time to make some smart tax moves before April 15. |
| Coronavirus fatality rates vary dramatically depending on age, gender and country ” why some patients fare worse than othersA paper published in JAMA reviews a China-based sample of 72,000 COVID-19 cases, which suggests dramatic variations in the death rate of the illness. |
Summary of Economic Releases this Week
Earnings Summary for Today
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