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.
Dow Jones to Plunge 50% Despite Bounce, Research Warns
- The Dow Jones and broader stock markets will fall by 50% as the coronavirus pandemic deepens, asset manager Unigestion has warned.
- The Dow Jones and worldwide stock markets will fall by as much as 50%, global asset manager Unigestion has warned.
- Despite recent bounces, Unigestion is predicting massive selloffs in the coming months as the coronavirus pandemic worsens.
- Volatility indexes, investor confidence levels, unemployment figures and coronavirus cases are all moving in the wrong direction.
- In a conference call Wednesday, Unigestion told investors it expects the coronavirus pandemic to result in a 2008-level recession.
- More disconcertingly for investors, Unigestion also warned that the Dow Jones and other international stock markets will take a pummelling.
- Global investment analysts TS Lombard also expect the coronavirus to bring huge stock market losses.
Stock market live updates: Futures dip, another ugly jobless claims number ahead
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Shocking drop in wholesale gas prices signals more refinery cutbacks and gasoline under $1
- Wholesale gasoline prices are collapsing, a sign that more refineries will cut back or shut down and prices at the pump could sink to under $1 a gallon in more parts of the country, analysts said.
- Prices of less than 20 cents a gallon were found in Colorado, Wisconsin, Iowa, Montana and the Dakotas, but in other parts of the country they are higher.
- Unleaded gasoline retail prices averaged $1.90 per gallon nationally Wednesday, but were lower in much of the country, according to AAA.
- As wholesale prices fell, the price of gasoline for May in the futures market was 70 cents per gallon Wednesday.
- In the New York area, Kloza said rack prices were 49 cents per gallon in Newark, N.J. Got a confidential news tip?
Five million more unemployment claims expected, but now layoffs are broader and could be more permanent
- Another 5.25 million workers are expected to have filed unemployment claims last week, reflecting a larger swath of the country now under shutdown orders.
- In the last two reports, a total 10 million workers had filed for state unemployment benefits.
- In the first monthly employment report since the shutdowns, there was a decline of 701,000 nonfarm payrolls in March, and 479,000 were in the leisure industry, which includes restaurants, hotels and other travel services or entertainment related businesses.
- Mall owner Simon Properties, for instance, said on March 31 that it was furloughing 30% of its workers as some shuttered retailers and restaurants were expected to hold off on April rent.
- Economists have been looking at state filing numbers and also anecdotal news of layoffs since the claims reports are unable to reflect the real number of people who would be seeking benefits.
Stocks making the biggest moves midday: Nordstrom, Pinterest, Boeing, United Airlines & more
- Pinterest — Shares of Pinterest surged more than 11% after the company issued early guidance for its fiscal first quarter that beat analysts' expectations.
- American Airlines, United Airlines, Southwest, Alaska Air Group — Airline stocks rose on Wednesday amid hope the U.S. could start to turn a corner on the coronavirus outbreak.
- Levi Strauss — The denim apparel company reported better-than-expected sales in Europe and the Americas and topped earnings forecasts for its first quarter, and its stock rose 10%.
- The company reported 40 cents in adjusted earnings per share for the quarter, above the 35 cents expected by analysts, according to FactSet. Nordstrom — Shares of the retail chain jumped 9% after saying in a securities filing that the current quarter and beyond would be "adversely impacted in an significant manner" due to the pandemic.
Treasury Secretary Mnuchin says the government won't run out of money for small businesses
- Treasury Secretary Steven Mnuchin told CNBC on Wednesday that small businesses throughout the U.S. should not worry about their odds of receiving relief funding from the federal government.
- Asked by CNBC's Jim Cramer about the White House's work with the Small Business Administration, Mnuchin said he's confident Congress will approve additional funding on top of the original $350 billion already being distributed.
- Congress passed the $350 billion in small business funding last month for the Paycheck Protection Program as part of an unprecedented $2 trillion package to try to ease the economic pullback caused by the novel coronavirus and efforts to stanch its spread.
- The funding is available through Small Business Administration-approved lenders and loan payments will be deferred for six months with the possibility of forgiveness on at least part of what they borrow.
Stock investors are hunting for positives, but many on Wall Street see a move back to the lows
- This week's reprieve from gut wrenching stock market losses has investors giving some companies and sectors a fresh look, but strategists still believe there could be another downdraft that tests the lows put in place two weeks ago.
- Consumer staples was among the worst performers Tuesday, off 1.2%, but the sector had among the shallowest losses of the past month, as consumers stocked up on canned goods, cleaning supplies and other household products.
- Materials stocks lost 11.9% over the past month on fears about economic slowing, but were up 2.4% Tuesday and 10% for the week.
- Dan Suzuki, strategist with Richard Bernstein Advisors, said investors are still too optimistic, and he's expecting a retest of lows.
- Investors are forgetting an important lesson from 2008, when the stock market rallied more than 20% off the bottom in fall of 2008, only to fall 30% to 40% by March, 2009 when it bottomed for real.