Trading Ideas

(Bloomberg) — Bearish bets have risen sharply on Singapore Airlines Ltd. shares, making it the most shorted stock in the city state as the carrier posted its biggest ever quarterly loss in the wake of the coronavirus pandemic.Investors have become increasingly pessimistic about holding the stock, with short interest as a percentage of carrier’s free-float shares more than quadrupling to 15.5% since mid-March, according to data from IHS Markit. The company’s stock price has dropped 40% this year, almost double the decline in the nation’s equity benchmark.The carrier recorded a net loss of S$732 million ($515 million) in the quarter …read more […]

(Bloomberg) — As it headed toward bankruptcy, Diamond Offshore Drilling Inc. took advantage of a little-noticed provision in the stimulus bill Congress passed in March to get a $9.7 million tax refund. Then, it asked a bankruptcy judge to authorize the same amount as bonuses to nine executives.The rig operator is one of dozens of oil companies and contractors now claiming hundreds of millions of dollars in tax rebates. They are employing a provision of the $2.2 trillion stimulus law, called the CARES act, that gives them more latitude to deduct recent losses.“This is a stealth bailout for the oil …read more […]

(Bloomberg) — European stocks jumped and U.S. equity futures eked out gains, trimming declines at the end of a week dogged by concern about a second wave of infections and simmering tension between America and China. Oil climbed and Treasuries edged higher.The Stoxx Europe 600 Index rallied led by mining and energy companies after missing a late rebound on Wall Street a day earlier. Futures contracts on the three main U.S. equity gauges pointed to more modest gains at the open, while Asian shares were mixed after data showed a rebound in Chinese industrial production but a deeper than expected …read more […]

(Bloomberg) — Hon Hai Precision Industry Co.’s profit plunged by the most on record after the coronavirus disrupted its China production and walloped global smartphone demand.Apple Inc.’s most important manufacturing partner recorded a 89% decline in net income to NT$2.1 billion ($70 million) in the first three months of 2020. Revenue slid almost 12% to NT$929.7 billion, according to Bloomberg News’ calculations based on previously reported monthly sales numbers.The earnings decline drove home to extent to which Covid-19 and the resultant global lockdown has chilled electronics demand and driven up costs for upstream producers like Hon Hai that had to …read more […]

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(Bloomberg) — One of China’s best-performing stocks so far in 2020 is a little-known server maker that last year abruptly joined the same U.S. blacklist that threatens Huawei Technologies Co.’s survival. Investors are betting that Beijing’s rapidly emerging plan to invest trillions in technology will outweigh the Trump administration’s curbs.Dawning Information Industry Co. has soared 60% since the start of the year, making it the third-best performer year to date on the benchmark CSI 300 index of Shanghai and Shenzhen stocks. It’s now trading at about 56 times its projected 2020 earnings, above its average over the past three years …read more […]

Oil prices rose on Friday, extending day-earlier gains, as data showed demand for crude picking up in China after the easing of curbs to stem the coronavirus outbreak, boosting hopes that the global supply overhang may start to fade. Brent crude was up 39 cents, or 1.3% at $31.52 a barrel by 0333 GMT, after rising nearly 7% on Thursday. West Texas Intermediate (WTI) oil was up 19 cents, or 0.7%, at $27.75 a barrel, having jumped 9% in the previous session. …read more […]

(Bloomberg) — An armada of tankers filled with Saudi crude heading to American shores is raising concern that tanks may fill again just as a U.S. glut shows signs of easing.Over 30 tankers laden are set to arrive in the U.S. Gulf Coast and West Coast during May and June, according to ship tracking data compiled by Bloomberg. The more-than 50 million barrels of Saudi crude on the water threaten to disrupt a positive supply development: U.S. crude stockpiles declined for the first time since January and inventories at the Cushing, Oklahoma storage hub contracted by the most in months.“The …read more […]

Negative rates would take interest, including on home loans, into an upside-down world. …read more […]

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(Bloomberg) — Oil is heading for a third weekly gain on signs the market is slowly rebalancing as major producers cut supply and consumption recovers after a historic collapse in demand due to the coronavirus.While futures in New York edged lower in early Asian trading, prices are still up about 11% this week after closing above $27 a barrel on Thursday for the first time in over a month. Saudi Arabia has slashed supply to the U.S., Europe and Asia as OPEC and its allies reduce daily output by almost 10 million barrels. The International Energy Agency said that the …read more […]

With all the controversial headlines surrounding CEO Elon Musk, it has almost been forgotten that Tesla (TSLA) has finally been turning a profit. The EV pioneer surprised many when it followed 4Q19’s swing into the green with another beat in its recent 1Q20 report.Following an investor relations meeting with Tesla, Deutsche Bank’s Emmanuel Rosner noted, “We found Tesla’s message to be positive, reiterating that order backlog for its vehicles continues to grow due to limited ability to produce vehicles currently, and that its pace of capacity expansion will be the main driver of volume growth over the next few years.”Model …read more […]

Stocks recovered earlier losses and pushed into positive territory Thursday afternoon.

Earlier in the session, the Dow had been off as many as 458 points after the Labor Department’s weekly report on new jobless claims showed another 2.981 million individuals filed for first-time unemployment benefits last week, or more than had been expected. The 30-stock index was up nearly 200 points around 1:30 p.m. ET and was on track to close higher for the first time in four sessions. …read more […]

When Wall Street bigwigs say the market is overvalued — it’s time to “follow the smart money”, says Matt Maley, chief market strategist at Miller Tabak.

On Wednesday billionaire investor David Tepper said this was the second most overvalued market he’d seen outside of the 1999 bubble. The day before, hedge fund manager Stan Druckenmiller sounded the alarm on stock valuations.

“In Wall Street, it’s smart to follow the smart money…when you have so many of them who’ve made their billions doing this, it makes be a little bit more cautious,” said Maley told Yahoo Finance’s The First Trade. …read more […]

“As we reopen stores, we see positive things happening,” CEO William Dillard said. …read more […]