Trading Ideas

(Bloomberg) — The Trump administration struck a deal with Senate Democrats and Republicans on an historic rescue package that tees up more than $2 trillion in spending and tax breaks to bolster the hobbled U.S. economy and fund a nationwide effort to stem the coronavirus.“At last we have a deal,” Senate Majority Leader Mitch McConnell said early Wednesday on the chamber’s floor. “I’m thrilled that we’re finally going to deliver to the country.”Senate Democratic leader Chuck Schumer called it an “outstanding agreement.”The legislation was still being drafted but McConnell said the Senate would vote on it Wednesday. It would still …read more […]

(Bloomberg) — As oil crashes, it’s easy to overlook an even more dismal reality for producers: the real prices they’re getting for their barrels are even worse.Having collapsed by about 60% this year, Brent and West Texas Intermediate crude have stabilized at around $25 a barrel, but the price rout is far deeper for actual cargoes, which are changing hands at large and widening discounts to the global benchmarks.“The physical market is in pain, and there is more pain to come,” said Torbjorn Tornqvist, the co-founder of Gunvor Group Ltd., a large trading house. “We will see the full weight …read more […]

Occidental Petroleum Corp will cut employee salaries by up to 30%, according to an internal memo reviewed by Reuters, as the debt-laden U.S. oil producer tries to save cash amid tumbling energy prices. Global oil prices have dropped 60% since January as fuel demand has plunged because of the coronavirus pandemic that threatens to cause a global recession and as Saudi Arabia and Russia plan to increase supply to grab market share. Occidental has pared spending on production, cut its shareholder dividend, dismissed staff and sold assets to avoid being overwhelmed by the debt taken on to …read more […]

Those pining for a bottom to the gut-wrenching stock market selloff may be disappointed to learn that mega one-day rallies like the historic one witnessed on Tuesday are typically not the start of a durable recovery. U.S. stocks, that recently entered a bear market – a fall of 20% or more from recent highs – rebounded strongly on Tuesday after U.S. lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism to a market grappling with its biggest selloff since the financial crisis. Of the twenty past …read more […]

(Bloomberg) — The best day for at least one U.S. stock gauge since the Great Depression has strategists mulling the chance of further gains.American shares haven’t enjoyed a two-day rally since Feb. 12, and the last three surges of more than 5% in the S&P 500 Index were immediately followed by equivalent losses. But with a record surge of stocks trading on an uptick at Tuesday’s open and activity heavily skewed toward winners, Sundial Capital Research Inc. is hopeful this time could be different.“The buying interest and close at the highs on Tuesday could be enough to finally change sentiment …read more […]

Spot gold was up 0.1% at $1,611.73 per ounce by 0230 GMT, after rising as much as 1.6% earlier in the day. U.S. gold futures climbed 0.8% to $1,673.60. Benchmark spot gold prices continued to trade below U.S. gold futures in a sign that the market is worried air travel restrictions and precious metal refinery closures will hamper shipments of bullion to the United States to meet contractual requirements. …read more […]

Boeing Co plans to restart 737 MAX production by May, ending a months-long halt triggered by a safety ban on its best-selling jet after fatal crashes, people familiar with the matter said on Tuesday. Boeing’s planning hinges on the scale of disruptions from the fast spreading coronavirus, and U.S. regulators clearing the 737 MAX to return to service, a milestone Boeing still expects to reach in mid-2020. One industry source said Boeing has asked some suppliers to be ready to ship 737 parts in April. …read more […]

Walmart and the nation’s largest grocery store chains, Kroger and Albertsons, announced they are installing “sneeze guards” to stores nationwide. …read more […]

Oil prices extended gains for a third session on Wednesday, rising alongside broader financial markets on hopes Washington will soon approve a massive aid package to stem the economic impact of the coronavirus pandemic. The U.S. Congress may vote on Wednesday on the $2 trillion stimulus package which boosted stock markets on Tuesday. …read more […]

(Bloomberg) — Google and other digital advertising companies are seeing revenue growth wither as marketers slash spending ahead of an expected recession triggered by the coronavirus.The global pandemic and the ensuing slump in economic activity is crushing several industries that have been big buyers of Google and Facebook Inc. ads, including online travel agents, automakers, restaurants and retail.“I’m hearing some big numbers, with ad spending down 30% to 50% across the board,” said Rob Griffin, founder of digital ad consulting firm G5 Futures. Some marketers will slash budgets by 80% or 90%, while others may stop for a while if …read more […]

(Bloomberg) — Stocks in Asia rallied after the best session for U.S. stocks in almost a dozen years, with investors rediscovering some appetite for risk as Congress negotiates an emergency-spending bill. U.S. equity futures declined, showing a reluctance to build on Tuesday’s gains.Japan equities opened about 3% higher, while Australian and South Korean shares bounced about 5%, with Asia-Pacific stocks heading for a second day of gains. S&P 500 futures retreated after the index soared more than 9% — the biggest one-day gain since October 2008. The dollar added to declines against developed and emerging currencies alike, in a tentative …read more […]

Investor focus Wednesday will surround coronavirus developments, durable goods orders and Micron earnings. …read more […]

Boeing Co plans to restart 737 MAX production by May, ending a months-long halt triggered by a safety ban on its best-selling jet after fatal crashes, people familiar with the matter said on Tuesday. Boeing’s planning hinges on the scale of disruptions from the fast spreading coronavirus, and U.S. regulators clearing the 737 MAX to return to service, a milestone Boeing still expects to reach in mid-2020. One industry source said Boeing has asked some suppliers to be ready to ship 737 parts in April. …read more […]

Three orders of business today…
First, some profit taking.
Back in the beginning of February, when the market began to turn lower, I mentioned two stocks you should own throughout this crisis…
Stock No. 1: Teladoc Health.

Stock No. 2: Zoom.

If you followed along and bought either stock, you’re up huge – all in the midst of the biggest market panic since the Great Depression.
Teladoc Health is up around 60% since February. Zoom is up around 70% since February.
If you played either of these names, take your profits now!
Yes, I will continue to love each stock going forward. But right now, cash is king. …read more […]

Investor portfolios are being brutalized by the coronavirus.
But I have an important message for you…
Do not beat yourself up over what has happened to your portfolio over the past several weeks.
You could not have seen this coming.
Nobody did.
That includes people who are much, much smarter than you or me.
Today, I want to accomplish two very specific things as we work through this crisis together. I believe that we can not only get through it, but also profit from it.
I’ve been on the front lines of two similar market collapses, and those experiences are proving invaluable to me right now. I …read more […]