Year: 2020

Top news and what to watch in the markets on Thursday, April 2, 2020. …read more […]

If you’ve been paying attention to financial news, you’re likely aware of the recent trading halt. All trading on the New York Stock Exchange (NYSE) halted for 15 minutes.
This gave investors a chance to cool off and get their bearings. And it was one of several recent stock market trading halts. So, a trading halt may be a new concept for beginning investors.
Trading halts don’t happen often. And when they do, it’s usually not for a good reason. Here’s everything you need to know about a trading halt and what causes one to occur.

What Triggers a …read more […]

Enable Midstream Partners (ENBL) has announced significant measures to strengthen its financial position as it seeks to deal with challenging industry conditions. This includes halving dividends by 50% from $0.3305 to $0.16525/share – a move which the company says will save $290 million of cash on an annualized basis.“Due to the sharp decline in commodity prices and producer activity across our footprint and the future business uncertainty created by the coronavirus pandemic, we are taking decisive action to fortify our financial position, protect our balance sheet and ensure liquidity to navigate these unprecedented market conditions,” explained Rod Sailor, president and …read more […]

Asian refiners have called on Saudi Arabia to slash the official selling prices (OSP) of its crude 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. Last month, the world’s top exporter Saudi Arabia surprised everyone by slashing prices for April, after OPEC’s supply-cut pact with Russia fell apart, sparking a battle for market share and sending oil prices to 18-year lows. Markets globally are now flooded with cheap oil with storage spaces filling up fast, while refiners cut output or shut …read more […]

A filing has revealed that beleaguered airline American Airlines (AAL) has now accessed a total of $2.73 billion from three revolving credit facilities in order to cope with the coronavirus fallout. The company has now borrowed the full $450 million from an April 2016 facility, plus $750 million from a 2013 revolver and ~$1.53B from a 2014 revolving facility.At the same time, Stifel Nicolaus analyst Joseph DeNardi downgraded his rating on AAL stock from Hold to Sell. He has a $13 price target on the stock (22% upside potential). Shares have plunged 63% year-to-date, with a 31% drop in just …read more […]

Cloud-based commerce platform Shopify (SHOP) is suspending financial guidance, in light of the uncertainty related to Covid-19. However, Shopify did note that it anticipates Q1 revenue and adj. op. income in line or above guidance provided on February 12, thanks to strong sales momentum through January and February.“Shopify’s withdrawal of FY20 guidance suggests that near-term visibility is low, similar to other Internet stocks in our coverage” comments RBC Capital analyst Mark Mahaney.Nonetheless, he has retained his buy rating on the stock. “Long-term, however, we believe that Shopify will be a beneficiary as we expect this COVID disruption to lead to …read more […]

General Electric Co. (GE) has finalized the $21.4 billion sale of its biopharma business to Danaher Corp. (DHR).The sale to Danaher Corp gives GE net proceeds of $20 billion, after accounting for taxes, fees and factored receivable balances, GE said in a statement.“Completing the sale of BioPharma represents a critical milestone on our multi-year transformation, fortifying our considerable sources to de-risk our balance sheet and continue to solidify our financial position,” GE Chairman and CEO H. Lawrence Culp, Jr. commented.The shares dropped 11% to $7.04 at the close of trading in New York on Wednesday. GE stock has declined over …read more […]

(Bloomberg) — Oil futures rose more than 12% as China planned to start buying up cheap crude for its strategic reserves, adding to a growing risk appetite across financial markets that’s propelling prices higher. Futures extended gains as Beijing instructed government agencies to start filling state stockpiles to take advantage of crude’s 60% crash this year. China’s move comes as the physical crude market shows deepening signs of strain as supply explodes and demand collapses.Dated Brent, the benchmark for two-thirds of the world’s physical oil supply, was assessed at $15.135 on Wednesday, the lowest level since at least 1999. Across …read more […]

(Bloomberg) — China is moving forward with plans to buy up oil for its emergency reserves after an epic price crash, according to people with knowledge of the matter.The world’s biggest importer is taking advantage of a 60% plunge this year to snatch up cheaper barrels for its stockpiles, a source of considerable speculation in the oil market because of the government’s reluctance to release information about their formation, size or use.Beijing has asked government agencies to quickly coordinate filling tanks and using financial tools like options to lock in current low prices, the people said, asking not to be …read more […]