27Apr2020 Pre-Market Commentary: Wall Street Futures Are Higher This Morning, DOW Up 225 Points, WTI Crude Slides To 17.18, US Dollar Falls Fractionally To 99.90, 3M, Apple And Amazon Earnings In Focus

Here is the current market situation from CNN Money

European markets are sharply higher today with shares in Germany leading the region. The DAX is up 2.81% while France’s CAC 40 is up 2.11% and London’s FTSE 100 is up 1.72%.

Oil prices resume slide on oversupply and storage concerns

Oil prices slumped again on Monday on concerns over scarce storage capacity, especially in the United States, and global economic doldrums from the coronavirus pandemic.

GM suspends dividend, share buybacks as coronavirus hits sales

General Motors Co said on Monday the automaker has suspended its quarterly cash dividend on its common stock and its share buybacks to save cash in the face of the coronavirus crisis that has severely hurt global automobile sales.

EasyJet’s battle with founder heads for May 22 showdown

EasyJet’s battle with its founder and biggest shareholder Stelios Haji-Ioannou will come to a head on May 22, when the results of an investor vote on the airline’s strategy to stick with a plan to buy more planes will be made public.

Futures gain as more states prepare to ease lockdown

U.S. stock index futures rose on Monday as more states looked set to lift coronavirus-induced curbs, and investors awaited earnings reports from marquee companies including Apple and Microsoft due this week.

Volkswagen re-starts Europe’s largest car factory after coronavirus shutdown

VW the world’s largest carmaker by sales, resumed work at its biggest factory in Wolfsburg, Germany, on Monday even as inventory levels across the industry continue to build up as the coronavirus pandemic saps demand.

Norway now in formal talks with Thyssenkrupp over new submarines

Norway has started formal talks with the shipbuilding division of Thyssenkrupp for the construction of new submarines and expects to conclude the negotiations this year, the Norwegian defence ministry said on Monday.

Shares jump as investors cheer lockdown easing, more stimulus

Stock markets rallied on Monday as investors cheered news more countries were easing lockdowns and the Bank of Japan expanded stimulus to cushion the impact of the coronavirus, though the oil price took another tumble with storage running out.

Investors bet on testing, treatments for restart of U.S. economy

Investors are pinning their hopes for the reopening of the U.S. economy on the potential for wider availability of testing for COVID-19 cases and on drug trials for treatments of the deadly disease but said, until there is concrete progress in these areas, further stock market gains may be limited.

GE’s coronavirus troubles likely to hit power business, not just aviation

Quarantines and lockdowns at large U.S. power plants are threatening to squeeze a multibillion-dollar slice of revenue that General Electric Co is counting on to help lift profits.

Apple Plans To Delay iPhone Production Ramp, Will Produce 20% Fewer Units

Apple Plans To Delay iPhone Production Ramp, Will Produce 20% Fewer Units

A little over a week ago, as global stocks were just beginning a rebound that would set the US market on track for its biggest one-month rally in almost nine years, we spotted a premarket Apple headline that seemed suspiciously crafted to bolster the Dow: According to Nikkei, which cited anonymous official sources at key Apple suppliers like Foxconn, the consumer-tech giant had boosted iPhone production 4% in March. A few days later, Apple unveiled its new iPhone SE, a new budget model priced at just $400.

Now, WSJ is adding even more fuel to Apple’s “green shoots” economic narrative. To wit, the paper reported on Monday that Apple is “forging ahead with plans to release four new iPhone models later this year, people familiar with its plans say. The phones, some with 5G connectivity, will vary in price and come in three sizes – 5.4 inches, two measuring 6.1 inches, and one at 6.7 inches, all featuring organic light-emitting diode, or OLED, screens, the people said.”

Right now, the company is planning to delay its traditional production ramp-up by about a month to account for supply chain disruptions caused by factory closures, and other factors. The positive news comes months after one influential Wedbush analyst decried a “doomsday drop” in shipments to China during the early days of the pandemic.

Futures Surge As BOJ Goes Full Brrr, States Reopen While Oil Craters

Futures Surge As BOJ Goes Full Brrr, States Reopen While Oil Craters

S&P futures climbed alongside stocks in Europe and Asia to start the week after the BOJ went full Brrr earlier when the central bank announced it would buy unlimited amount of bonds (even though nobody actually wants to sell to the BOJ) as more state and countries edged toward reopening, even as earnings season is shaping up to be an even greater disaster than expected (US EPS of -24% yoy is coming in some 9% lower than consensus expectations), while oil prices plunged again, with the June WTI contract plunging below $13.

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The End Of Lockdowns Looms – What Is The Biggest Danger?

The End Of Lockdowns Looms – What Is The Biggest Danger?

Authored by Bill Blain via MorningPorridge.com,

“The vicissitudes of fortune, which spares neither man nor the proudest of his works, which buries empires and cities in a common grave.”

It feels like the various market threads are now coming together. We’re getting close to a stage where we can make informed guesses on how markets and the global economy plays out in coming months.

Crucial Test Of Equity Sentiment As Monster Earnings Week Awaits

Crucial Test Of Equity Sentiment As Monster Earnings Week Awaits

By Peter Garnry, Head of Equity Strategy, Saxo Bank

Summary: We observe more signs of stabilization in equities with volatility markets normalizing and Italian government bonds coming back from the lows. But this week will be the ultimate test of sentiment with earnings from Apple, Amazon, Microsoft, Facebook and Alphabet (Google’s parent) and these stocks have helped the equity market bouncing back faster than expected. Equity valuations remain extremely elevated and thus good earnings and a positive outlook from these major companies are important for sentiment.

* * *

Last week was the first real test in weeks of sentiment in equities with Friday showing buyers are still controlling the game. Earnings have had a similar pattern of generally disappointing and the majority of companies skipping their outlooks as the economic environment is too uncertain. Technology stocks continue to be bid higher and volatility futures are close to be in contango for the first time in almost two months. Italian government bonds (BTPs) are also bid this morning as Italy is preparing to open its economy again. Many small positive signs although the oil market is still sending distressing price signals due to massive demand and supply imbalance.

India culls China’s test kits after paying a ‘bomb’ for them

India culls China’s test kits after paying a ‘bomb’ for themCentre cancels orders after it was found the kits from China were showing inaccurate results.

Ambani tests ambition by delivering grocery

Ambani tests ambition by delivering grocery ‹ ‹ JioMart, an e-commerce venture of Reliance Retail, is taking grocery orders on WhatsApp.

How to sell a car when there’s a lockdown

How to sell a car when there’s a lockdownA car can be purchased using digital tools that cover everything, from payment to services.

Dispatches from a Pandemic: Letter from New York, epicenter of coronavirus: ‘The streets are virtually empty, but the birds go on singing’

‘People here have longed for clarity on how to keep themselves, and everyone else safe.’

The Ratings Game: Neiman Marcus is likely just the start: Analysts expect 100,000 stores to close by 2025

UBS analysts think permanent store closures will jump as the coronavirus pandemic speeds e-commerce adoption.

Outside the Box: These policy options could help businesses avoid layoffs more effectively than those cumbersome SBA loans

Could a taxroll tax holiday encourage bosses to hold on to workers?