14Jul2020 Pre-Market Commentary: US Stock Futures Rise Despite Worries, DOW Flat, Up 24 Points, August Gold Down 0.3% At $1,802 An Ounce

Here is the current market situation from CNN Money

European markets are broadly lower today with shares in France off the most. The CAC 40 is down 1.51% while Germany’s DAX is off 1.30% and London’s FTSE 100 is lower by 0.20%.

Delta cuts summer flying as demand stalls due to coronavirus, posts $5.7 billion quarterly loss

Delta deepened its losses because of the coronavirus pandemic.

3M partners with MIT researchers to develop U.S.-backed rapid coronavirus antigen test

The device, which is in the early stages of development, would function much like a pregnancy test, said Cathy Tarnowski, senior technical manager at 3M.

Burger King is selling a burger made from cows on low-methane diet

Burger King is selling a Whopper patty made from cows on the low-methane diet at selection locations.

Ford unveils new Bronco as off-road, open-air Jeep rival for under $30,000

Ford is squarely positioning the new Bronco SUV against the Jeep Wrangler, which dominates off-road vehicle sales and supports a profitable accessory business for Fiat Chrysler.

Cashing in on coronavirus: Small biopharma company NanoViricides sees stock soar on treatment claims

As the coronavirus was spreading in China, a small biopharma company, NanoViricides, claimed it was close to clinical trials for a treatment. A CNBC investigation found the 15-year-old company has never tested a product in humans or made any revenue.

Immunity to the coronavirus may last only a few months, UK study finds

Antibody responses to the coronavirus can peak three weeks after onset of symptoms, but then begin to decline after as little as two months, researchers found.

Investors’ next high-yield bets should be on ocean sustainability, researchers say

As the world grapples with climate change and an economic downturn, new research from the World Resources Institute suggests that sustainable ocean-based investments will yield benefits at least five times greater than the costs.

Wells Fargo reports $2.4 billion loss for the quarter, slashes dividend to 10 cents

Wells Fargo posted its first quarterly loss since the financial crisis on rising provisions for defaults tied to the coronavirus pandemic.

Germany’s sex work deemed too risky for now as authorities fear contact-tracing problems

Germany’s sex workers have been protesting at not being allowed to return to work after the coronavirus epidemic, but the industry has thrown up particular concerns for the authorities.

5 things to know before the stock market opens Tuesday

U.S. stock futures traded higher as investors tried to regain their footing after a massive late-day turnaround in the previous session.

Coronavirus updates: Hong Kong grapples with new cluster; U.K. study says immunity may wane after two months

The coronavirus has infected more than 13.1 million people across the country as of Tuesday, killing at least 573,200 people.

UK could see up to 120,000 additional coronavirus deaths this winter, scientists warn

In a worst-case scenario, the experts said there could be 119,900 additional hospital deaths in the U.K. this winter.

Drugmakers will start coronavirus vaccine production by end of summer, Trump health officials say

The manufacturing process is already underway even though they aren’t sure which vaccine, if any, will work, a senior Trump administration official told reporters Monday. He said they are already buying equipment, securing the manufacturing sites and, in some cases, acquiring the raw materials.

Consumer Prices Soar By Most In 11 Years In June On Rebound In Fuel Costs

Consumer Prices Soar By Most In 11 Years In June On Rebound In Fuel Costs Tyler Durden Tue, 07/14/2020 – 08:37

After three months of ‘deflation’, consumer prices were expected to rebound strongly in June and it did, with headline CPI beating expectations (+0.6% MoM vs 0.5% exp). That is the biggest monthly jump since June 2019…

Tensions Soar As Trump Admin Could Scrap Audit Deal For US-Listed Chinese FirmsÂ

Tensions Soar As Trump Admin Could Scrap Audit Deal For US-Listed Chinese Firms Tyler Durden Tue, 07/14/2020 – 08:26

Global stocks slumped on Tuesday as a safety bid appears in the dollar as Sino-US tensions continue to worsen.Â

There were a couple of significant developments in the overnight session involving China and the US. First, Chinese Foreign Ministry spokesman Zhao Lijian said Beijing would sanction US defense contractor Lockheed Martin for its latest arms deal with Chinese-claimed Taiwan.

The second development is from Reuters, detailing how the Trump administration plans to abandon a 2013 agreement between the US and Chinese auditing authorities, a move that suggests a widespread crackdown on US-Listed Chinese firms sidestepping US disclosure rules is ahead.

Wells CEO Is “Extremely Disappointed” With First Quarterly Loss Since 2008; Massive Dividend Cut

Wells CEO Is “Extremely Disappointed” With First Quarterly Loss Since 2008; Massive Dividend Cut Tyler Durden Tue, 07/14/2020 – 08:18

While JPMorgan at least had a stellar trading quarter to offset another surge in loan loss reserves (i.e. balance sheet deterioration vs income statement improvement), Wells Fargo just had the ugly balance sheet to flaunt and boy was it ugly.

For the second quarter, Warren Buffett’s favorite bank reported a Q2 loss per share of 66 cents, down sharply from the $1.30 profit a year ago, and far worse than the 13 cent loss consensus estimate. More importantly, this was the first time Wells posted a quarterly loss since 2008, confirming that this is indeed the biggest crisis since Lehman.

Blain: Investors Are Making “Very Dangerous Assumptions”

Blain: Investors Are Making “Very Dangerous Assumptions” Tyler Durden Tue, 07/14/2020 – 08:09

Authored by Bill Blain via MorningPorridge.com,

œThere seems to be something wrong with out stock markets ¦

A few weeks ago I was sucked into the positive vibe of surprisingly strong economic numbers and a sense the virus was diminishing. I was expecting stocks to have hit new record levels in June. For a moment on Monday, it felt like they did as the S&P turned briefly positive on the year ¦ but then it faded. It felt like the last bloom of a fading rose ¦.Â

Markets feel tired ” I expect we’re in for long summer stuck in a rut. The economic data looks more sobering while the virus is still burning its way through the sunshine states, and threatens a southern hemisphere resurgency. Expectations aren’t quite what they once were ¦. For the meantime ¦

As Q2 Earnings season accelerates ¦ just how painful could it get?Â

Not at all if Governments have any say:

The US budget deficit has topped $3 trillion, 14% of GDP, the largest share since WW2. Â In June, US government spending touched $1.1 trillion, as tax revenues cra …

Coronavirus: UK ‘faces tax rises or spending cuts’

The government’s spending watchdog says without action the country will be on an “explosive” debt path.

UK economy rebounds more slowly than expected

The UK’s economy grew 1.8% in May as the lockdown began to ease, less than economists had predicted.

Huawei 5G kit must be removed from UK by 2027

The government is also banning telecoms firms from buying new Huawei 5G kit after 31 December.

Hiking fuel tax isn’t making Modi money, it’s hindering recovery

Hiking fuel tax isn’t making Modi money, it’s hindering recoveryProvisional fuel sales in June show that while India’s overall consumption of petroleum products was 8% lower than a year earlier, diesel and gasoline consumption were down 15% and 14%, respectively.

A Google cheque for Mukesh Ambani?

A Google cheque for Mukesh Ambani?Google has pledged $10 billion in India over the next five to seven years with the aim of consolidating its position in the digital ecosystem of the world’s fifth-largest economy that is emerging as a battleground for global internet giants.

SBI is ready for a coronavirus overhaul

SBI is ready for a coronavirus overhaulState Bank of India, India’s largest lender by assets and branch network, plans to save Rs 1,000 crore through such cost optimization, chairman Rajnish Kumar told shareholders at the bank’s 65th Annual General Meeting (AGM) which was held through video conferencing due to the pandemic.

Need to Know: This strategist says investors are in the ‘forest of make believe’ when it comes to growth stocks

Our call of the day, from Nordea’s Sebastien Galy, says the mad rush for tech stocks is going to end in pain for some investors.

The Tell: Value will trump highflying growth stocks if this bond-market indicator bounces back, says Bill Gross

Bill Gross says the dominance of Amazon, Microsoft and other technology giants throughout this year’s stock-market slump and recovery won’t last if inflation-adjusted bond yields rebound from their record low.

Market Snapshot: Dow futures up 150 points as big banks kick off earnings season

Stock-index futures point to a higher start Tuesday as second-quarter results begin to roll in from a trio of big banks, kicking off corporate earnings reporting season.