Stocks making the biggest moves after hours: United Airlines, Pfizer, KB Home and more
- Treasury Secretary Steven Mnuchin said Thursday that airlines should start hearing back Friday about their applications for government assistance amid the coronavirus pandemic.
- Other major airlines that said they applied for the bailout including Delta, JetBlue, American and Spirit, saw their stocks rise in extended trading as well.
- Dr. Mikael Dolsten, Pfizer's chief scientific officer, told CNBC Thursday that the company had identified a lead drug to treat the coronavirus.
- Dolsten said the potential treatment has shown positive signs in preclinical work and that the antiviral would be administered "early in the disease process." Pfizer initially aimed to enter clinical trials for a coronavirus drug by the end of 2020, but now hopes to start the trial "just a few months from today," according to Dolsten.
- Abbott Laboratories — Shares of the health products company, which offers a coronavirus test kit, were up 1% in extended trading.
JPMorgan now sees economy contracting by 40% in second quarter, and unemployment reaching 20%
- JPMorgan economists issued an even more dire forecast, now foreseeing a 40% decline in the nation's gross domestic product for the second quarter and a surge in April's unemployment rate to 20% with 25 million jobs lost.
- In general, economists have had a difficult time measuring the impact of the virus shutdowns and many have been revising their forecasts, with a number of firms now seeing hits of more than 30% in the second quarter, historical levels that have no modern precedent.
- The JPMorgan economists said they initially considered the impact on demand, looking at the type of spending cuts that would come as social distancing was expanded and increased in duration.
- They said they later looked at the supply side impact, as stay-at-home orders increased and limited the quality and effectiveness of labor as a factor of production.
Banks and health care companies will report earnings, but virus updates will matter most in week ahead
- The market will turn its focus to earnings in the coming week, but there are also some important economic reports, including March retail sales.
- Hogan said companies like JPMorgan may be able to reveal how the Fed's programs are working, both those for small business lending and others that were intended to help the credit markets.
- The market will also watch Johnson & Johnson and Abbott on Thursday, as they discuss not only their results but potential developments with coronavirus-related therapies or products.
- "As we go through the earnings season, what we're concerned about is what companies are going to cut their dividends," said Quincy Krosby, chief market strategist at Prudential Financial.
- Krosby said as the earnings season goes on, investors will be watching ways the economy could begin to return to normal.
Cashin: Fed gives stocks a 'breath of fresh air' but full market recovery may take some time yet
- Veteran Wall Street trader Art Cashin told CNBC that the Federal Reserve's big announcement Thursday is propelling stocks higher, but he warned that a full recovery from the coronavirus-driven sell-off will take some time.
- Before the stock market opened, the Fed unveiled details of its much-anticipated Main Street lending program and other initiatives, a total of $2.3 trillion in loans to help businesses and municipalities.
- Cashin said he does not expect a so-called V-shaped — quick down, quick up — recovery on Wall Street.
- The director of UBS floor operations at the NYSE gave his first public comments on the stock market's coronavirus-driven sell-off to CNBC's Bob Pisani earlier this week.
- Cashin, whose Wall Street career began nearly 60 years ago, said he looks forward to the reopening of the New York Stock Exchange floor.
- Traders are able to get a better feel for the market by being on the NYSE floor, Cashin said.
Fed fires an even bigger bazooka, expands its shopping list to include junk bonds
- The Federal Reserve dramatically expanded its efforts to save the economy, even adding junk bonds to the list of assets it can buy, as a wave of businesses are expected to have trouble surviving the recession.
- Stocks jumped, Treasury yields rose, and the dollar sagged after the Fed said it would would provide $2.3 trillion in programs that expand its operations to reach small and mid-sized businesses and U.S. cities and states.
- As part of its announcement, the Fed expanded its corporate lending programs to take it into an entirely new area, including ETFs of companies that are rated below investment grade.
- It had previously announced a program to buy investment grade corporate debt and ETFs. It also will now accept triple A rated commercial mortgage backed securities and collateralized loan obligations as part of its Term Asset Backed Securities Lending Facility, first created in the financial crisis.
Powell says the economic recovery can be 'robust' after the coronavirus is contained
- In the meantime, he said the central bank is committed to doing whatever it can to support the flow of cash to businesses and households both through a plethora of financing programs and by keeping interest rates anchored near zero.
- Powell spoke during a webinar for the Brookings Institution the same morning that the Fed announced a new $2.3 trillion financing initiative directed at small and larger businesses as well as households and state and local governments.
- The economy received more bad news Thursday morning as weekly jobless claims hit 6.6 million, just a shade below the previous week's record high.
- Nevertheless, Powell pointed out that the economy has been strong before prevention efforts aimed at halting the coronavirus spread put a large share of the U.S. productive capacity offline.
Stocks making the biggest moves in the premarket: Starbucks, Costco, Disney, Anthem & more
- Starbucks (SBUX) – Starbucks said its fiscal second-quarter profit would likely drop by 47% due to the coronavirus impact, and that it was abandoning its full-year forecast.
- The jump has been driven by global stay-at-home orders, as well as the introduction of the service in India where 8 million people have signed up.
- Anthem (ANTM) – The health insurer's stock was downgraded to "hold" from "buy" at Jefferies, which said a virus-induced recession will push more managed care organization members into the lower margin Medicaid category.
- Diageo (DEO) – The spirits maker pulled its 2020 sales and profit forecast, and also suspended its $5.6 billion stock buyback program.
- He also said the world's largest asset manager will give full-time pay to support staff even if they cannot come to work.
Stock market live updates: Futures dip, another ugly jobless claims number ahead
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OPEC and allies to decide on historic oil production cut as coronavirus ravages demand
- Some of the world's largest oil producers will hold an emergency meeting on Thursday to try to agree on historic output cuts, as the coronavirus pandemic continues to crush worldwide demand for crude.
- President Donald Trump has fueled hopes of a cut far larger than any deal OPEC+ has ever agreed on before, suggesting the energy alliance could take between 10 to 15 million barrels of crude off the market.
- A simmering feud between OPEC kingpin Saudi Arabia and non-OPEC leader Russia is thought to be one of many possible complications to an unprecedented production cut.
- The restrictions have created an unprecedented demand shock in energy markets, just as a price war broke out between powerhouse producers Saudi Arabia and Russia.
- Last month, Saudi Arabia recommended cutting production by 1.5 million barrels per day as the coronavirus outbreak curbed demand.
Treasury yields edge lower ahead of US jobless claims data
- U.S. government debt prices were slightly higher Thursday morning as investors await figures on the number of Americans filing for unemployment.
- U.S. unemployment figures for last week are due for publication at 8:30 a.m. ET and are expected to increase by 5 million, building on prior two readings of record-breaking 6.6 million and 3.3 million, as the economic toll of the coronavirus pandemic becomes more apparent.
- Market focus also remains attuned to hopes of a peak to the rate of infection, though New York state, America's epicenter, set another single-day record for deaths on Wednesday.
- More than 432,000 cases have been confirmed nationwide as of Thursday morning, resulting in more than 14,800 deaths.
- March PPI (producer price inflation) data is also due alongside the key initial jobless claims figure at 8:30 a.m. ET.
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