Written by Gary
US major indexes trade in different directions, small caps up, large in the red (SPY -0.6%). US airline stocks tumble after Buffett sells whole stakes.
Here is the current market situation from CNN Money | |
 | North and South American markets are broadly lower today with shares in Brazil off the most. The Bovespa is down 6.09% while Mexico’s IPC is off 1.53% and U.S.’s S&P 500 is lower by 0.30%. |
Traders Corner – Health of the Market
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| J. Crew files for bankruptcy as preppy retailer succumbs to COVID-19 falloutJ. 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. |
| Ferrari slowed by coronavirus, but not driven off courseLuxury sports car maker Ferrari still expects to make more than $1 billion in core profit this year, providing a relative beacon of stability in an auto industry ravaged by the coronavirus crisis. |
| France rejects Amazon’s request for unemployment schemes at six sitesThe French government has rejected a request by Amazon to tap a state partial unemployment scheme for employees at its six warehouses in the country, a spokeswoman for the labor ministry said on Monday. |
| It’s okay to laugh again: Advertisers prepare for post-coronavirus economySad piano chords, somber shots of empty streets and close-ups of people staring out their windows. So prevalent were coronavirus-themed ads that followed a similar template just a few weeks ago, they were parodied in a YouTube compilation video: “Every COVID-19 Commercial is Exactly the Same.” |
| VW’s Skoda braces for second quarter hit after earnings dropCzech carmaker Skoda Auto, part of the Volkswagen Group , reported a 25% drop in first-quarter operating profit on Monday, but said the biggest hit from the coronavirus outbreak would come in the second quarter. |
| Wells Fargo receives ‘outstanding’ rating for community lendingWells Fargo & Co said on Monday it has received an “outstanding” rating on a U.S. regulatory test for community lending between 2012 and 2018. |
| S&P 500, Dow dip as Buffett dumps airlines, China tensions flareThe S&P 500 and Dow Jones dropped for the third session on Monday following a U.S.-China spat about the origins of the coronavirus outbreak, while major carriers slumped after billionaire Warren Buffett’s Berkshire Hathaway dumped its stakes in the sector. |
| Exclusive: Nissan to retrench further in new plan to focus on U.S., Japan, ChinaNissan Motor Co Ltd will pull back from Europe and elsewhere to focus on the United States, China and Japan under a plan that represents a new strategic direction for the embattled carmaker, people with direct knowledge of the plan told Reuters. |
| Crude prices mixed as lockdowns ease, U.S.-China tensions threaten demandOil prices were mixed on Monday as countries started to ease coronavirus lockdowns, though a fresh spat between the United States and China over the origin of the virus weighed on prices. |
| Coronavirus Defeated By Experimental Antibody That Targets Spike ProteinCoronavirus Defeated By Experimental Antibody That Targets Spike Protein An experimental antibody developed by researchers at Utrecht University in the Netherlands can defeat coronavirus in a laboratory setting, according to a new study published in Nature Communications Bloomberg, which notes that the antibody – known as 47D11 – neutralized the virus in cell cultures. |
| Morgan Stanley Braces For “Overdue” 10% Correction In StocksMorgan Stanley Braces For “Overdue” 10% Correction In Stocks Two weeks after Morgan Stanley’s former equity bear Michael Wilson, who led Wall Street strategists by first turning bullish in mid-March at the depths of the coronacrisis, turned “tactically” bearish warning that “stocks are now overbought”, Wilson is back with a repeat warning, expecting an overdue 10% correction which, however, is not the start of another crash, but rather a “necessary pause that refreshes.” But to make sure he isn’t accused of flip-flopping back to being a bear, Wilson explains that his “bullish view has not changed, nor has the narrative ” a severe recession acknowledged by all, the bottoming rate of change in economic data/earnings revisions, seemingly unlimited central bank support, unprecedented fiscal stimulus that we believe is likely to become structural in nature and that leads to rising inflation expectations sooner than the consensus expects.” And so, with Wilson’s bullish reputation safe and sound, here’s why the Morgan Stanley strategist sees some pain in the immediate future:
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| New York Urges Locals To Start Preparing “Now” For May 15 Reopening: Live UpdatesNew York Urges Locals To Start Preparing “Now” For May 15 Reopening: Live Updates Summary: Deaths decline for 5th day Japan extends state of emergency Spanish opposition threatens to torpedo vote to extend lockdown European clinical trial “Project Discovery” results to be released May 14 NY reports uptick in deaths, still lower than last week’s average 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’ *Â Â Â Â *Â Â Â Â * Update (1205ET): As expected, Andrew Cuomo said during his press briefing on Monday that areas of the state with few cases of the virus and even fewer deaths should start preparing “now” for what’s expected to be a May 15 reopening. CUOMO: URGES N.Y. REGIONS TO START PREPARING NOW FOR MAY 15 CUOMO: STARTING MAY 15 REGIONS CAN DO OWN REOPENING ANALYSIS This, as the NYT publishes “internal projections” from the CDC calling for average daily US deaths to accelerate to 3,000 a day by June 1. However, most of the hardest hit states are seeing cases and deaths decline, while some states are seeing a slight acceleration. Overall US mortality has plateaued. According to the CDC’s own coronavirus weekly summary, “nationally, levels of influenza-like illnes … |
| North Korean Defectors Apologize For Embarrassingly Wrong Kim Jong Un “Death” InfoNorth Korean Defectors Apologize For Embarrassingly Wrong Kim Jong Un “Death” Info Some prominent North Korean defectors and dissidents are in the hot seat after giving embarrassingly wrong information just days before Kim Jong Un’s much-awaited public appearance last Friday after an uncharacteristic 3-week absence which had unleashed a torrent of rumors and reports of this death or that he was in a vegetative state after supposedly undergoing heart surgery. One former North Korean dissident and diplomat apologized for loudly claiming that North Korea’s Kim was so ill that he couldn’t even stand up, awkwardly issued shortly ahead of the leader contradicting such claims in appearing publicly at a Sunchon Phosphatic Fertilizer Factory on Saturday, attended by hundreds of officials. |
| Coronavirus may push 1.3 bn Indians into the dark, quite literallyCoronavirus may push 1.3 bn Indians into the dark, quite literallyDiscos collections across country have reduced by an unprecedented 80%, threatening power blackouts in India. |
| Time to dump stocks? Let Buffett help youTime to dump stocks? Let Buffett help youBuffett’s speech, delivered online, made two-three prominent points. |
| Factories to reopen, but there are no workersFactories to reopen, but there are no workersAs India Inc prepares to restart ops, the question many are asking ” will there be enough workers? |
| Next Avenue: ‘Unimaginable:’ This is what it’s been like for funeral directors in New York CityA funeral director describes the overwhelming circumstances as people desperately seek a funeral home for loved ones. |
| Outside the Box: The cafeteria ” and other parts of office life ” will change dramatically after coronavirusNo more pressure to head to the office sick. |
| The Margin: ‘Twilight’ author announces new book, ‘Midnight Sun’ ” and Team Edward loses its mind on TwitterStephanie Meyer’s next book coming in August retells the œTwilight saga from vampire Edward’s POV. |
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