Trading Ideas

(Bloomberg) — U.S. equity futures ticked higher while European stocks struggled for direction as investors counted down to more big earnings, a Federal Reserve policy decision and key American economic data. The dollar fell for a third day while oil rebounded in New York.Nasdaq 100 futures advanced after Alphabet Inc. posted better-than-estimated sales. That took some of the focus off Tuesday’s sell-off in megacap tech stocks including Amazon.com Inc. and Netflix Inc, and before Microsoft Corp. reports today. Gains in energy shares, carmakers and banks helped the Stoxx Europe 600 Index edge higher, but they were countered by a drop …read more […]

(Bloomberg) — Volkswagen AG joined other automakers around the globe in warning of the unprecedented fallout from the coronavirus pandemic.Supply and demand disruptions from government measures to slow the spread of the disease will cause operating profit to drop “severely” this year, the world’s largest automaker said on Wednesday. Efforts to rein in spending will allow the German company to remain profitable for the full year, despite an anticipated second-quarter loss.Volkswagen’s warning pales in comparison to the announcement from Ford Motor Co. last night. The U.S. carmaker forecast a second-quarter operating loss of more than $5 billion, devastating its efforts …read more […]

(Bloomberg) — Standard Chartered Plc put aside $956 million against potential losses as souring loans spike during the coronavirus pandemic, even as a trading boom lifted first-quarter revenue.The emerging markets-focused lender reported the biggest provisions since 2015 as clients across Asia, Africa and the Middle East got into difficulty because of lockdowns and travel restrictions. That reflects similar warnings from other global banks, which have allocated billions of dollars to deal with the crisis.“While pressure on credit quality has increased recently, we delivered good underlying income growth of 6% in the first quarter and maintained strong cost discipline,” Bill Winters, …read more […]

(Bloomberg) — Billionaire activist investor Christopher Hohn has called on Wirecard AG to remove Chief Executive Officer Markus Braun after an independent audit of past revenues criticized the German payments processor for internal “shortcomings.”The probe by KPMG was unable to obtain the data needed to verify revenues of 1 billion euros ($1.1 billion) in transactions with third parties. Wirecard hired the accounting firm in October to look into its third-party partner business as well as operations in India and Singapore following a series of reports by the Financial Times that accused the company of accounting fraud in several countries.Shares in …read more […]

(Bloomberg) — Saudi Arabia’s central bank depleted its net foreign assets in March at the fastest clip since at least 2000, showing the severity of the damage inflicted by the slump in oil prices even as the government is only starting to lean on the holdings to cover budget needs.The drop of more than 100 billion riyals ($27 billion), or over 5% from the previous month, brought the stockpile to $464 billion, the lowest since 2011, according to data compiled by Bloomberg. In the first quarter, the government ran a budget deficit of 34.1 billion riyals, which was mostly covered …read more […]

Strategic investors will inject 7 billion yuan ($989 million) into Nio China, a new entity controlled by Chinese electric vehicle maker Nio Inc, the firm said on Wednesday. The new investment will boost product development and research, Chief Executive William Li told a news conference, adding that the firm would consider expanding capacity in the eastern city of Hefei if sales demand grew. In a statement, the firm said Nio will inject its core businesses and assets in China, which are valued at 17.77 billion yuan, into Nio China and invest 4.16 billion yuan in it. …read more […]

Shares in Alphabet (GOOGL) spiked 8% in after-hours trading following the release of the tech giant’s first quarter earnings results. Revenue surged 13% year-over-year to $41.16B, easily beating the Street forecast of $40.2B, although Q1 Non-GAAP EPS of $9.87 missed the consensus forecast by $0.89.As expected, the fallout from the coronavirus pandemic saw YouTube advertising revenue drop 14% compared to the previous quarter, but on a year-over-year basis the figure was still up over 33%.“Our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% on a constant currency basis,” …read more […]

(Bloomberg) — Southwest Airlines Co. raised about $4 billion by selling shares and convertible notes, stepping up a push to add liquidity as the coronavirus pandemic all but erases demand for flights.The carrier sold 70 million shares at $28.50 apiece and $2 billion of convertible notes due in 2025, according to a statement. Southwest increased both the stock and bond portion of the sale from what it had previously targeted.Southwest is following United Airlines Holdings Inc. in offering equity amid the biggest crisis in the industry’s history, as carriers rush to raise funds even after receiving billions of dollars in …read more […]

The preparations reflect Boeing’s confidence that it can tap the capital markets to strengthen its finances, even as the largest U.S. planemaker weighs seeking government aid. Boeing has lined up investment banks to potentially market an offering to bond investors in the coming days, provided that market conditions are favorable, the sources said, cautioning that the exact timing and size of the offering had not been decided. Boeing declined to comment. …read more […]

(Bloomberg) — U.S. equity-index futures advanced, helped by a late rally in Alphabet Inc. and Asian stocks heading for bull-market territory, ahead of a policy decision by the Federal Reserve.Contracts on the S&P 500 Index climbed 1% as of 11:32 a.m. in Tokyo, while futures advanced 1.2% on the Nasdaq 100 Index and 0.8% on the Dow Jones Industrial Average. Alphabet shares surged in after-hours trading after the company reported first-quarter revenue that beat analyst expectations.The MSCI Asia Pacific Index rose 0.7%, pushing its rebound from a March 23 low to more than 20% and set to enter a bull …read more […]

(Bloomberg) — Chinese e-commerce giant JD.com Inc. has filed confidentially for a second listing in Hong Kong, according to people with knowledge of the matter, joining rival Alibaba in tapping the city’s stock market for funds.The offering could raise at least $2 billion, the people said, asking not to be identified because the information is private. The Beijing-based company, which currently trades on Nasdaq, has a market value of $64 billion.The deal comes after Alibaba Group Holding Ltd. raised $13 billion in a Hong Kong share sale last year. That much larger deal was hailed as a homecoming for Chinese …read more […]

(Bloomberg) — Chinese e-commerce giant JD.com Inc. has filed confidentially for a second listing in Hong Kong, according to people with knowledge of the matter, joining rival Alibaba in tapping the city’s stock market for funds.The offering could raise at least $2 billion, the people said, asking not to be identified because the information is private. The Beijing-based company, which currently trades on Nasdaq, has a market value of $64 billion.The deal comes after Alibaba Group Holding Ltd. raised $13 billion in a Hong Kong share sale last year. That much larger deal was hailed as a homecoming for Chinese …read more […]

(Bloomberg) — Before the accounting scandal and the stock crash and the defaulted loans, Luckin Coffee Ltd.’s billionaire founder Lu Zhengyao was an ideal customer for Credit Suisse Group AG.“I’ve had I don’t know how many dinners with him in Beijing and he’s absolutely the poster child for what we want to do,” Tidjane Thiam said at a conference last year when he was still head of the bank. He lauded Lu’s relationship with the firm that ranged from private banking to stock sales. “He’s a dream client.”Luckin’s dramatic fall from grace this month blindsided some of the top names …read more […]

(Bloomberg) — Alphabet Inc. shares surged after first-quarter results and upbeat executive comments showed the company’s cloud and YouTube businesses kept growing in the midst of the Covid-19 pandemic.Sales came in at $33.71 billion, up 14% from a year ago and ahead of Wall Street estimates. YouTube revenue jumped 33.5%, while Google Cloud’s top line soared 52%.“Results came out better than the market expected, with strong metrics in Google Cloud and YouTube,” Jason Bazinet, an analyst at Citigroup, wrote in a note to investors.The world’s largest internet company has been trying to diversify away from search advertising for years by …read more […]

What you’re about to see below will be shocking…
After all, most investors think that this $4 stock will soon be left for dead.
Bankrupt.
A true-life dumpster fire.
But… what if this company quickly becomes an explosive winner?
If you’re willing to take a small risk – for a potentially huge reward – then you don’t want to miss today’s newest Trade Talk Tuesdays.
See why I call it a “lotto scratcher” by clicking the play button below…

For full instructions on how to play picks like this, join me in The War Room!
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