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Daily Market News: US oil prices turn negative for first time in history

Daily Market News: US oil prices turn negative for first time in history

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US oil prices turn negative

In the Dow Jones Industrial Average, which fell 2.4% yesterday, Boeing, Dow and Walt Disney were among the bottom five performers, along with Chevron and Exxon. Disney fell 4.1% as investors reacted to its decision to stop paying more than 100,000 workers during the shutdown while still planning to pay a $1.5bn dividend, while Boeing closed 6.7% lower after China Development Bank Financial Leasing canceled an order of 29 737 Max airliners.

  • S&P 500: -1.8% Monday, -12.6% YTD
  • Dow Jones Industrial Average: -2.4% Monday, -17.1% YTD
  • Nasdaq Composite: -1% Monday, -4.6% YTD

Airline stocks fall as bankruptcies start to hit sector

London-listed stocks were close to flat yesterday, with the FTSE 100 sinking to a substantial loss around lunchtime but recovering to a 0.5% gain by the close of play. On Monday it was announced that over 140,000 firms have applied to the government’s job retention scheme to help pay their wage bill, with Chancellor Rishi Sunak saying over a million people would benefit. Also on Monday, Bank of England deputy governor Ben Broadbent warned that economic recovery once the lockdown ends in the UK could be held back by consumer caution, pointing to subdued areas of consumption that remain in China.

The FTSE 100 was led by consumer goods giant Unilever, pest control firm Rentokil and industrial equipment rental company Ashtead Group, which posted gains of 4.6%, 4.5% and 4.1% respectively. At the tail end of the FTSE were some of the UK’s largest homebuilders, along with airline names. It was a dismal day of headlines for airlines, with four subsidiaries of Norwegian Air filing for bankruptcy, and Virgin Atlantic announcing that it will only survive the pandemic with a government bailout – while Virgin Australia also entered administration. British Airways parent International Consolidated Airlines Group (IAG) and easyJet closed Monday 3.3% and 4.2% lower respectively.

  • FTSE 100: +0.5% Monday, -22.9% YTD
  • FTSE 250: -0.2% Monday, -27.7% YTD

What to watch

Netflix: Some of America’s largest companies report earnings today, but Netflix will be among the most interesting to watch. The firm is arguably one of the biggest potential beneficiaries of people being stuck at home, but also faces the challenge of how to produce fresh content with social distancing requirements in place. Analysts will be watching the company’s post-market close earnings on Tuesday closely, specifically looking for data on subscriber numbers, and whether management anticipates that any recent step up in users will be permanent, or whether they are anticipating a drop-off once things return to normality. Analyst expectations for the firm’s Q1 performance have jumped from an earnings per share figure of $1.20 three months ago, to $1.64 now.

Coca Cola: Drink and snack giant Coca-Cola reports its Q1 2020 results first thing today; investors will get a look at how the shutdown of restaurants, travel and entertainment events have impacted the company’s sales. Coca-Cola stock fell by as much as 40% in the broader market sell-off, but has gained 23.9% over the past month and is now only down 15.9% year-to-date. Analysts will also be probing the firm for how China’s lockdowns impacted its sales, as the Chinese market is one of its largest. One potential positive outcome of the global lockdowns for the firm is consumer stockpiling, which may have provided some respite. Currently, 13 Wall Street analysts rate the stock a buy, three an overweight, and five a hold.

A selection of other significant US names reporting today: Lockheed Martin, Texas Instruments, Chipotle, Snap, Philip Morris, Northern Trust.

Claimant count change: Today UK unemployment claimant count figures for March will be released, which will provide insight into how the labour market has been hit by the pandemic. The figure is the equivalent of the US’s initial jobless claim numbers, which have shown more than 20 million people in the US have signed on for unemployment benefits over the last four weeks. Predictions for the number of new claimants in the UK for March are some 10 times higher than the February number, with a figure of close to 200,000 anticipated.

Crypto corner

Bitcoin’s month-long uptrend is noticeably running out of steam as the price consolidates ahead of the halving on 12th May. The price has been suppressed back below the psychologically important $7,000 level as miners who are soon to be unprofitable exit the space — until now, this had been outweighed by bulls pushing the price up from its mid-March trough. That said, bitcoin barely flinched as negative oil prices sent shockwaves through traditional markets and in relative terms has held up very well.

Elsewhere, the US Commodity Futures Trading Commission (CFTC) has approved Bitnomial as a venue to offer bitcoin futures and options. The main difference being that these derivatives will be settled with physical bitcoin, as opposed to the fiat equivalent that CME Group offers for example.


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This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.

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Microsoft Corporation (NASDAQ: MSFT) Issues a Status Report to Its Shareholders Before the Commencement of the Next Quarter

Microsoft Corporation (NASDAQ: MSFT) recently announced the disposing of its stock without the value of its upcoming dividend remittance. The company disposed…

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Microsoft Corporation (NASDAQ: MSFT) recently announced the disposing of its stock without the value of its upcoming dividend remittance. The company disposed of the stocks a day before its record date, which entails Microsoft deciding who is entitled to acquire a dividend. Microsoft initiated the ex-dividend day due to the traffic caused once it announced a stock trade. During the announcement, the platform disclosed that the purchase price of each share would be $2.48, thus accruing a dividend of $ 0.62 per share.

An organisation should ensure that it reviews its dividend remittance and ensure that it is renewable, thus ensuring that expanding it further and creating a source of income. Microsoft’s sales in the previous year indicated the amount of income that the company bears, thus increasing its number of shareholders.

The SAP Sapphire gathering was helpful after a long hiatus

The recent SAP Sapphire gathering was held physically following a three-year hiatus due to the restrictions issued in the pandemic.  The event took place in Orlando, Florida, and invited various organisations worldwide; thus, major tech platforms, including Microsoft, were present. The organisation disclosed its latest projects at the conference, including the RISE with SAP on the Microsoft Cloud. Microsoft’s cloud assists all types of institutions update and share their SAP solutions in the cloud.

Microsoft also disclosed a testimonial from TalkTalk, an organisation that offers solutions to connectivity issues in the UK. The avenue completely welcomed Microsoft’s Viva Suite as a method to aid its workers’ satisfaction.

The software is an employee satisfaction avenue that identifies factors that ensure proper workflow, including education, assets, and others.

Microsoft’s contributions to the recent consumer privacy concerns 

Various organisations insist on the placing of passwords on crucial software and accounts, including TikTok or emails. The passwords differ in the form of restrictions placed by the developer at the time of logging in.

However, Fast Identity Online Alliance recently developed a method that allows users to log in to their accounts without a password. The institution designed a method that allows consumers to store their security details on their phones, thus allowing them to sync and access their accounts. Organisations are attempting to obtain mechanisms to make this method permanent.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

The post Microsoft Corporation (NASDAQ: MSFT) Issues a Status Report to Its Shareholders Before the Commencement of the Next Quarter appeared first on Wall Street PR.

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Weekly investment update – Weaker economic outlook weighs on markets

Global equities have continued their sell-off over the last week. What is new is that markets are now reacting to risks of weaker economic data weighing…

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Global equities have continued their sell-off over the last week. What is new is that markets are now reacting to risks of weaker economic data weighing on earnings. Real bond yields, whose rise triggered the recent drop in equity markets, have fallen as investors price a higher probability of a recession.   

Yields of US Treasury bonds have slipped since reaching around 3.12% in early May (see Exhibit 1). The rally has been driven by fears of a global recession due to poor economic data, strong inflation numbers, aggressive talk from central bankers and concerns over the consequences of Covid in China.

Recent data that contributed to the bond market’s unease about the prospects for the US economy includes: 

  • The Richmond Federal Reserve Manufacturing survey, which fell to its lowest since 2020 at -9.
  • The monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York fell to -11.6, with the shipment measure falling at its fastest pace since the start of the pandemic two years ago.
  • The Federal Reserve Bank of Philadelphia’s May business index dropped 15 points to 2.6, with the six-month outlook falling to its lowest since December 2008 (though the underlying details were better than the headline number).
  • Existing and new home sales dropped for a third month, to its lowest since 2020, held back by lean inventory, rising prices and higher mortgage rates. 

Taken together, the various regional Federal Reserve surveys suggest that the ISM Report for Business may come in at around 53, above 50 so still clearly in expansion territory for the US economy, but down noticeably from the upper 50s/lows 60s readings to which markets have become accustomed.

US equities still weak

US equities have remained weak as the down move continues for its seventh week.

It has been apparent that, in contrast to the start of the year when rising real bond yields were undermining equity markets, it is now fears of falling earnings due to a weaker economy that are weighing on stocks.

The last week has seen, in accordance with the risk-off regime, more buying-the-dip and selling-the-rally. There has also been a rotation out of growth and cyclicals into value and defensives (healthcare, real estate, utilities and staples).

European markets under the cosh

Bearish sentiment is prevalent in Europe, too, with investors cutting exposures to European equities.

There was another outflow in the week to 18 May, taking the total to 14 weeks of outflows in a row. Cyclicals, in particular, saw strong outflows, led by the materials, financials and energy sectors.

Our multi-asset team are inclined to reduce exposure to equity markets given the deterioration in the outlook.

European economy resists

Economic activity indicators have fallen so far in May, but remain above 50. Activity edged up in the manufacturing sector despite the fallout from the Ukraine war and supply chain disruptions that have intensified with China’s coronavirus lockdowns.

Although factories continue to report widespread supply constraints and diminished demand for goods amid elevated price pressures, the eurozone economy is being boosted by pent-up demand for services as pandemic-related restrictions are wound down.

While purchasing manager indices are still pointing to growth, it may be that these surveys understate the shock to activity, while sentiment surveys likely overstate the shock. Markets are increasingly tilting towards anticipation of a contraction in the coming quarters.

Higher food prices

Restrictions on the export of Ukrainian cereals continue and risks increasing food insecurity as the UN World Food Programme has highlighted.

As much of Russian and Ukrainian wheat goes to poorer nations, hunger could be a critical risk, driving up political instability.

The risk of further rises in food prices will be a key driver of inflation, particularly in emerging markets, the worst-case scenario being that the situation worsens significantly.

Moreover, lower fertiliser supply will have a greater impact on the next few months’ harvests, while the pass-through of costlier logistics and input prices is likely to drive food prices even higher.

Coming up…

Minutes of the meeting of the US Federal Open Markets Committee on 3-4 May will be published later on Wednesday.

However, market conditions have soured appreciably since the Fed’s first 50bp rate rise, so some of the language in the minutes pertaining to financial risks and market conditions will be outdated.

Instead, the three major focus points for market participants will likely be: 

  • Policymakers’ views on the conditions which could lead to a shift down, back to a pace of raising rates by 25bp at each FOMC meeting;
  • Any hints as to how far and for how long policymakers intend to push policy rates into restrictive territory;
  • Guidance shaping expectations for the next Summary of Economic Projections — aka the dot plot — due to be released at the June meeting. 

Forthcoming economic data  

US personal income and spending data for April should give investors an insight into the US consumer’s behaviour: Are they tightening the purse strings? The report may also show the Fed’s preferred inflation gauge (core PCE deflator) starting to decelerate.

Perhaps equally important, the report should shed light on how consumers are responding to the current high inflation environment, indicating how wages are performing relative to inflation and how aggressively consumers are tapping into the USD 2.5 trillion of accumulated savings from the pandemic period.

Disclaimer

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Writen by Andrew Craig. The post Weekly investment update – Weaker economic outlook weighs on markets appeared first on Investors' Corner - The official blog of BNP Paribas Asset Management, the sustainable investor for a changing world.

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5 Top Consumer Stocks To Watch Right Now

Are these consumer stocks a buy amid the earnings season?
The post 5 Top Consumer Stocks To Watch Right Now appeared first on Stock Market News, Quotes,…

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5 Trending Consumer Stocks To Watch In The Stock Market Now         

As we tread through the earnings season, consumer stocks could be worth watching in the stock market this week. This would be the case since a number of big consumer names such as Costco (NASDAQ: COST) and Macy’s (NYSE: M) will be posting their financials for the quarter. As such, investors will be keeping an eye on these reports for clues on the strength of consumer spending amid this period of high inflation.

However, despite the soaring prices across the economy, it seems that consumers are surprisingly showing resilience. According to the Commerce Department, retail sales in April outpaced inflation for a fourth straight month. This could suggest that consumers as a whole were not only sustaining their spending, but spending more even after adjusting for inflation. Ultimately, it could be a reassuring sign that consumers are still supporting the economy and helping to diminish the narrative of an incoming recession. With that being said, here are five consumer stocks to check out in the stock market today.

Consumer Stocks To Buy [Or Sell] Right Now

Nordstrom

retail stocks (JWN stock)

Starting off our list of consumer stocks today is Nordstrom. For the most part, it is a fashion retailer of full-line luxury apparel, footwear, accessories, and cosmetics among others. The company operates through multiple retail channels, boutiques, and online as well. As it stands, Nordstrom operates around 100 stores in 32 states in the U.S. and three Canadian provinces.

Yesterday, the company reported its financials for the first quarter of 2022. Starting with revenue, Nordstrom pulled in net sales worth $3.47 million for the quarter. This marks an increase of 18.7% from the same quarter last year. Its Nordstrom banner saw net sales rise by 23.5% year-over-year, exceeding pre-pandemic levels. Next to that, its Nordstrom Rack banner saw a 10.3% increase in net sales from last year. Besides, net earnings were $20 million, with earnings per share of $0.13 for the quarter. Considering Nordstrom’s solid quarter, should you invest in JWN stock?

[Read More] Best Stocks To Invest In Right Now? 5 Value Stocks To Watch This Week

The Wendy’s Company

best consumer stocks (WEN stock)

Next up, we have The Wendy’s Company. For the most part, it is the holding company for the major fast-food chain, Wendy’s. Being one of the world’s largest hamburger fast-food chains, the company boasts over 6,500 restaurants in the U.S. and 29 other countries. The chain is known for its square hamburgers, sea salt fries, and the Frosty, a form of soft-serve ice cream mixed with starches. WEN stock is rising by over 8% on today’s opening bell.

According to an SEC filing, Wendy’s largest shareholder, Trian Partners, is looking into making a potential deal with the company. Trian said that it is considering a deal to “enhance shareholder value.” Also, the firm adds that this could lead to an acquisition or business combination. In response, Wendy’s stated that it is constantly reviewing strategic priorities and opportunities. It added that the company’s board will carefully review any proposal from Trian. Given this piece of news, will you be watching WEN stock?

[Read More] 4 Semiconductor Stocks To Watch In The Stock Market Today

Foot Locker

FL stock

Another stock investors could be watching is the shoes and apparel company, Foot Locker. In brief, the company uses its omnichannel capabilities to bridge the digital world and physical stores. As such, it provides buy online and pickup-in-store services, order-in-store, as well as the growing trend of e-commerce. Some of its most notable brands include Eastbay, Footaction, Foot Locker, Champs Sports, and Sidestep. Last week, the company reported its results for the first quarter of the year.

For starters, total sales came in at $2.175 billion, a slight uptick compared to sales of $2.153 billion in the year prior. Next to that, Foot Locker reported a net income of $133 million. Accordingly, adjusted earnings per share came in at $1.60, beating Wall Street’s expectations of $1.54. CEO Richard Johnson added, “Our progress in broadening and enriching our assortment continues to meet our customers’ demand for choice. These efforts helped drive our strong results in the first quarter, which will allow us to more fully participate in the robust growth of our category going forward.”  As such, is FL stock one to add to your watchlist? 

Tyson Foods 

TSN stock

Tyson Foods is a company that built its name on providing families with wholesome and great-tasting protein products. Its segments include Beef, Pork, Chicken, and Prepared Foods. With some of the fastest-growing portfolio of protein-centric brands, it should not be surprising that TSN stock often comes to mind when investors are looking for the best consumer stocks to buy. 

Earlier this month, Tyson Foods provided its fiscal second-quarter financial update. The company’s total sales for the quarter were $13.1 billion, representing an increase of 15.9% compared to the prior year’s quarter. Meanwhile, its GAAP earnings per share climbed to $2.28, up 75% year-over-year. According to Tyson, these financial figures are a reflection of the increasing consumer demand for its brands and products. To top it off, the company was also able to reduce its total debt by approximately $1 billion. Thus, does TSN stock have a spot on your watchlist?

[Read More] Stock Market Today: Dow Jones, S&P 500 Rise, Wendy’s Stock Gains On Potential Deal

DoorDash

food delivery stocks (DASH Stock)

DoorDash is a consumer company that operates an online food ordering and delivery platform. In fact, it is one of the largest delivery companies in the U.S. and enjoys a huge market share. The company connects hundreds of thousands of merchants to over 25 million consumers in the U.S., Canada, Australia, and Japan through its local logistics platform. Accordingly, its platform allows local businesses to thrive in today’s “convenience economy,” as the company puts it.

On May 5, the company reported its first-quarter financials for 2022. Diving in, it posted a revenue of $1.5 billion, growing by 35% year-over-year. This was driven by total orders that grew by 23% year-over-year to $404 million. Along with that, it reported a GAAP gross profit of $662 million, an increase of 34% year-over-year. The company said that it added more consumers than any quarter since Q1 2021, due in part to the growth of its DashPass members. The growth in Monthly Active Users and average order frequency has helped it gain share in the U.S. Food Delivery category this quarter as well. Given DoorDash’s performance for the quarter, should you watch DASH stock?

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