Written by Gary
US stock market makes moderate improvement as JP Morgan chase reports profit falls 69% (SPY +2.6%). It appears Saudi Arabia did not get the memo that cutting oil output was supposed to end the price war.
Here is the current market situation from CNN Money | |
 | North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 3.02% while U.S.’s S&P 500 is up 2.65% and Mexico’s IPC is up 0.20%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Wells Fargo profit decimated as coronavirus-led loan defaults loomWells Fargo & Co on Tuesday reported a plunge in first-quarter profit as the U.S. bank set aside nearly $4 billion to cover potential losses on loans to consumers and small businesses hurting due to the coronavirus outbreak. |
| JPMorgan profit dives as banks brace for coronavirus-led loan defaultsJPMorgan Chase & Co’s profit plunged by more than two-thirds in the first quarter as the largest U.S. bank put aside nearly $7 billion in reserves to protect it from a wave of potential loan defaults in the months ahead. |
| Wall Street jumps 2% on hopes of lockdown easing; JPMorgan kicks off earningsWall Street rose more than 2% on Tuesday on signs some economies would ease strict coronavirus-induced lockdowns, with investors also looking at quarterly earnings from JPMorgan and Johnson & Johnson for clues on the business hit from the outbreak. |
| U.S. import prices post biggest decline in over five years; more to comeU.S. import prices dropped by the most in more than five years in March amid declines in the costs of petroleum products and a range of other goods, pointing to import deflation that could deepen amid the coronavirus pandemic. |
| Coronavirus ‘Great Lockdown’ will shrink global economy by 3% in 2020: IMFThe global economy is expected to shrink by 3.0% during 2020 in a stunning coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression of the 1930s, the International Monetary Fund said on Tuesday. |
| G7 backs debt moratorium for poor countries if G20 creditors, Paris Club joinGroup of Seven (G7) finance officials on Tuesday vowed to continue to act as needed to combat the coronavirus pandemic and stabilize the global economy, and threw their support behind a push to provide temporary debt relief to the poorest countries. |
| Texas hearing on oil production curbs stirs hornet’s nestTexas energy regulators are scheduled on Tuesday to hear from dozens of energy executives on an initiative calling for the state to mandate an output cut to stem the sharpest oil price drop in decades. |
| Oil producers pin hopes for massive cuts on unprecedented stocks purchasesAn unprecedented deal by oil producers to curb supply to match demand hollowed out by the coronavirus pandemic is set to depend partly on purchases by consumer countries for their strategic stocks on a scale not before seen. |
| Pelosi rejects McConnell emergency coronavirus spending plan, urges Fed to widen loansU.S. House Speaker Nancy Pelosi on Tuesday rejected Senate Majority Leader Mitch McConnell’s proposed emergency spending plan to help small businesses cope with the coronavirus outbreak, saying it did not do enough to help hospitals or state and local governments. |
| Ron Paul Fears A ‘Healthcare’ PATRIOT ActRon Paul Fears A ‘Healthcare’ PATRIOT Act Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity, According to a story in Politico, the White House Coronavirus Task Force is considering creating a national surveillance system to track Americans’ health information. Supporters of this initiative claim it would enable the federal government to quickly identify areas in need of additional medical supplies and other assistance because the areas are coronavirus œhot spots. |
| North Korea Fires Barrage Of Suspected Cruise Missiles In “Major Show Of Force”North Korea Fires Barrage Of Suspected Cruise Missiles In “Major Show Of Force” On Tuesday North Korea fired multiple suspected cruise missiles from both the ground and air off the country’s east coast, South Korea’s military said. The missiles flew for over 93 miles (150km) at a low altitude according to South Korea’s Joint Chiefs of Staff said, coming days after Kim Jong Un’s visit to an airbase to observe defense drills involving attack aircraft over the weekend. The timing of the missile tests also comes on the eve of the celebration of the country’s late founder, Kim Il Sung – the current leader’s grandfather. The Associated Press described it as “a major show of force” on the occasion of the national holiday. |
| Italy Reports Fewest New COVID-19 Cases In More Than A Month As Europe’s Outbreak Slows: Live UpdatesItaly Reports Fewest New COVID-19 Cases In More Than A Month As Europe’s Outbreak Slows: Live Updates Summary: Trump and states battle over who decides on reopening European cases (Germany, Spain) continued to slide G7 calls for debt standstill for poor countries Russia reports another record jump in new cases Cuomo reports 778 new NY deaths Italy reports smallest jump in new cases in more than a month Cuomo says he would disobey Trump order to reopen economy if it endangered his state China reports another 89 new infections US Dept. of Ag prepares to unveil coronavirus farm bailout IMF calls for global economy to contract 3% in 2020 Florida surgeon general says social distancing should continue until a vaccine is released Cali pastors sue state to reopen churches Iran plans to divest 10% of Shasta as selloff of state assets begins Sweden deaths cross 1k UK department of health reports 778 new deaths NATO warns supply chains of important medical supplies should be moved out of ‘non-member’ states *Â Â Â Â *Â Â Â Â * Update (1200ET): Italy’s Civil Protection Service released the latest figures, and it appears that Italy’s new confirmed cases have slowed since yesterday, with only 2,972 over the last 24 hours, its lowest increase in more than a month. |
| Oil Tumbles As Saudis Quietly Launch New Price War With Record DiscountsOil Tumbles As Saudis Quietly Launch New Price War With Record Discounts This weekend’s 11th hour decision to cut OPEC oil output by 23% was supposed to end the oil price war between Saudi Arabia and the rest of OPEC+, but it appears Saudi Arabia did not get the memo. While oil production may (or may not) be cut by 9.7mmb/d on May 1, Riyadh remembered that to capture market share one can manipulate volumes, which are now set as per this weekend’s OPEC+ agreement or one can adjust price discounts, which are not. And as the kingdom faces stiff competition from rival suppliers for market share in the prized Asian market (or at least what’s left of it after India cut demand by 70%), the OPEC leader slashed its official selling prices to Asian customers for May by larger-than-expected margins this week, while keeping prices flat for Europe and raising them for the United States. On Monday, Saudi Arabia’s oil giant Aramco set the May price for its Arab light crude oil to Asia at a discount of $7.3 to the Oman/Dubai average, down $4.2 a barrel from April, according to a document seen by Reuters.Asian refiners had called on Saudi Arabia to slash its crude OSPs for a third straight month in May after Middle East benchmarks and refining margins dropped amid ample supplies and lower demand due to the coronavirus. Overnight, China’s customs bureau reported that overseas energy purchases weakened in March as demand from the top importer took a hit from the coronavirus pandemic. Crude oil imports fell to the equivalent of about 9.72 million barrels a day, the least since July. While Aramco cut Asian prices in hopes of beating Russia, Iran and othe … |
| 10 compelling reasons why India should get back to business10 compelling reasons why India should get back to businessWe are arguing that both government stands, on health and economy, need greater scrutiny. |
| Son’s recklessness just cost him $17 billionSon’s recklessness just cost him $17 billionSoftBank said it expects to record an investment loss of 1.8 tn yen at Vision Fund for the year ended March 31. |
| YES crisis: Users may say no to pvt banksYES crisis: Users may say no to pvt banksSome private banks, particularly, small institutions may lose deposits to PSBs in the aftermath of YES crisis. |
| Paul Brandus: Trump is odd man out as approval ratings soar for world leaders’ handling of the coronavirus pandemicHeads of state are getting strong support by their citizens. Trump, on the other hand, is being panned for his lack of leadership. |
| Trump Today: Trump accuses governors of ‘mutiny’ as tensions mount over reopeningPresident Donald Trump compared strain between himself and a group of governors to the film œMutiny on the Bounty, as tensions mounted over when and how to reopen economies amid the coronavirus pandemic. |
| The Technical Indicator: Charting the repair process, S&P 500 approaches next major testTechnically speaking, the process of repairing extensive damage to the major U.S. benchmarks remains underway, writes Michael Ashbaugh. |
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