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Stock Markets Close Flat in View of Jobless Claims
The stock markets remained strong on Friday in view of the troubled world economy and slightly damped as news came trickling about a positive job scenario. As a result the markets closed on a flatter note.
The market experienced a climb as the U.S. government reported that jobless claims were decreasing. DJIA climbed as high as 83 points, putting aside all the widening trade deficits of the U.S., the downgrade of Spain and the unemployment issue that plague Greece. However, the rally faltered later in the noon and Dow Jones began dilly-dallying between paltry gains and modest losses. It saw the end of the day a little lower than it began. The situation was persistent even with the Nasdaq composite index. The Standard & Poor’s 500 however ended the day with a miniscule gain.
The traders seemed to be so accustomed to the ongoing woes that yesterday’s developments hardly had any effect on them. In fact, the deputy chief investment officer of the Wells Fargo Private Bank in San Francisco, Erik Davidson commented that there was nothing that could move the market yesterday. The analysts bickered on saying that the stocks are relatively cheaper. It seems most likely that the central banks are going to take some more steps to try and do something about the dwindling economy.
The Dow Jones Industrial Average closed slightly lower at 13,326.39 from 13,344.97. Standard & Poor’s 500 gained slightly at 1,432.84 from 1,432.56 and the NASDAQ fell to 3,049.41 from 3051.78.
Profits slowing down around the world
The U.S. Labour Department declared that the weekly unemployment aid applications had dropped and are the lowest since the February of 2008. The unemployment rate before the financial turmoil was at 4.9% as opposed to today’s 7.8%.
The report sure did show some positive signs but there is still a long way to go before recovering completely from the current financial crisis. The unemployment report was the only news that brought about a few cheers. The world economy on the other hand is slipped, registering lower profits.
Earlier this week Alcoa heralded a disappointing start to the Q3 earning season. Yesterday, Safeway added to the woes as the grocery store also reported a low profit margin. The Safeway shares fell since then by 3%.
Yesterday also saw a report from the U.S. Commerce Department, which had some more bad news. The report said that American-made vehicles and farm goods have seen a decline in demand in the foreign markets. Germany was also in the fray as separate economic studies predicted that German growth would further slow down. They also signalled that the composure was diminishing with regards to bailing out weaker European nations.
The situation in Greece, one among the European nations that are currently surviving on bailouts, met with some more troublesome news, with the unemployment percentage increasing to an astronomical 25 percent. Earlier the S&P 500 had downgraded Spain severely to the lowest level possible. Overall the situation in Europe is showing no signs of improvement at all and it is likely to continue in the same manner for quite a while.
The IMF and the World Bank held a meeting yesterday in Tokyo where Christine Lagarde, the IMF chief admitted that the global financial recovery is weaker than expected. She also stressed the urgent need to solve the debt problems plaguing Europe for some time now.
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In the midst of all the bad news, a few stocks managed to leap a few points as reports came in about new takeovers, purchases and potential owners. Reports came in yesterday that a Japanese cell phone company Softbank is likely to buy Sprint Nextel. Sprint Nextel then ended its day by rising more than 14% to $5.76. Oshkosh Corp. also soared about 7% to $28.90 after Carl Icahn offered to buy the truck company.
Binary options strategies for the day
Overall there was not much activity in the market yesterday. It was just one of those reasonable days where nothing special happens. Europe was slipping as always. There was nothing significant to report from the Asian market as well. The commodity market was abuzz with all the new regulations and swaps moving towards futures. The stocks however had a lazy day.
The stock market does not seem to come out of a bearish grip. The only thing that you could probably do is bank your binary options in favour of a bearish outcome. The stock market is only witnessing small waves; there are no big tides in favour of either a bullish or a bearish outcome. There are hardly any stocks that seem to be doing their own over a consistent period of time. Make sure you diversify your options so as to negate any losses due to small gains that were common yesterday.
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Stock Markets Close Flat in View of Jobless Claims
The government has introduced several temporary changes that could help people shore up their finances and manage their retirement accounts.
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up!
Get ready for some incredible price moves in the metals markets and congrats to all the Gold and Silver bugs out there. Our analysis says our patience and accumulation of physical metals will soon pay off in a big way.
Warren Buffett Dumps Delta Air Lines, Southwest Airlines As Coronavirus Pandemic Slams Industry
In a notable reversal, Warren Buffett’s Berkshire Hathaway has reduced its Delta Air Lines and Southwest Airlines stakes amid the coronavirus pandemic. Airline stocks sold off late Friday.
Luckin Coffee apologises for alleged fraud
Luckin Coffee on Sunday apologised and pledged to strengthen controls after an internal investigation found hundreds of millions of dollars of alleged fake sales last year, wiping about 75 per cent off the company’s market value. Lu Zhengyao, the company’s chairman, said on social media that he was “ashamed” and “accepted all questions and criticisms”, while promising to do his best to recover the losses. Mr Lu backed the start-up in 2020 as it aimed to take on Starbucks in China and remains one of its largest shareholders.
20 technology stocks with low debt to consider owning in a down market
Many tech stocks have held up relatively well during the coronavirus crisis. Mark Grant of B. Riley FBR says long-term investors can make money ‘with a little patience.’
He nailed the March coronavirus selloff — now he says there’s another 30% to go before the stock market hits bottom
Hedge-fund manager Dan Niles, in a note cited by Yahoo Finance this week, warned his clients way back in February that he was getting “increasingly worried” investors weren’t ready for the impact the spread of the coronavirus could have on the U.S. economy. He’s not any more optimistic now then he was back then.
Gilead Sciences’ Coronavirus Treatment Has Big-Time Potential
The coronavirus continues to sweep across the world. It’s hitting Europe and the U.S. hard after the outbreak began in China. Despite the hellish reality of Covid-19, we’re seeing individual companies step up, like Gilead Sciences (NASDAQ:GILD). As a result, GILD stock is up 16.3% year-to-date and 9% over the past month.Some investors may look at that and say, “so what?”But compare that to the SPDR S&P 500 ETF (NYSEARCA:SPY), which is down 22% and 15.3% in the same time frame and you can understand why Gilead has stood out. It’s also why it has the potential to shine even brighter in the coming weeks and months.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Gilead vs. Covid-19The virus is bringing out the best in many American companies. Ford (NYSE:F), General Motors (NYSE:GM) and Tesla (NASDAQ:TSLA) are producing ventilators. Gap (NYSE:GPS), Ralph Lauren (NYSE:RL) and others are producing scrubs, gowns and other supplies. Breweries are making hand sanitizer. We’re stepping up. And so is biotech. * 10 Stocks to Buy Whose Companies We Can’t Live Without Gilead is working on a Covid-19 treatment with a drug called remdesivir. On March 23, the FDA granted remdesivir “orphan status.” That designation would, among other things, give it exclusivity rights. However, just a few days later Gilead filed with the FDA to remove that status. Click to Enlarge Source: Chart courtesy of Statista, Source from WHO The company said it could maintain an “expedited timeline” without the status, and that the designation is meant to apply for infections impacting less than 200,000 Americans. With more than 215,000 confirmed coronavirus cases in the U.S. and growing rapidly, it’s clear the number will be far higher.Gilead CEO Daniel O’Day recently said that remdesivir is “a medicine we had been studying for many years as part of our extensive research in antivirals … Multiple studies are ongoing, and we are on track to have initial data in the coming weeks.”On April 1, the company initiated two Phase 3 trials for remdesivir for use in patients with moderate to severe Covid-19.This is all moving along very quickly. If Gilead sees promising results, not only is that huge for Gilead but it’s huge for the world. We need some sort of positive catalyst here. Not just for the stock market, but for humanity. People are growing tired of being on lockdown orders and anxiety is creeping higher for many out of work.If Gilead’s remdesivir works, it could be a game changer. Sizing Up GILD Stock Click to Enlarge Source: Chart courtesy of StockCharts.comA glance at the chart above highlights what life has been like for long-term investors in Gilead. Simply put, the stock has been a painful one to own. Shares embarked on a brutal decline from a high north of $100 in 2020 to a low near $57.50 in 2020. It has since been trying to carve out a bottom.Shares moved slowly but constructively higher in 2020, leading to a breakout in 2020. Of course, that’s on the back of the company’s remdesivir hopes, putting Gilead in a somewhat binary situation.Binary situations are generally unattractive from an investment perspective, particularly when they center around a treatment being accepted or rejected. As it stands though, investors may be safe buying a pullback into the $65 to $70 area. As long as GILD stays above $65, its technicals are in good shape.On the upside, look for a rally back up to resistance between $77.50 to $80. A breakout over $80 puts the recent highs near $86 on the table.While Gilead shares has been hammered over the years, its fundamentals have deteriorated a bit over that time as well. But — and this is a big but — Gilead Sciences is not your typical fly-by-night binary biotech play. It’s a low valuation, cash-rich healthcare titan.The company boasts $24.3 billion in cash — $19.4 billion including its recent acquisition of Forty Seven (NASDAQ:FTSV). Trailing free cash flow is north of $8.3 billion, with revenue and net income of $22.4 billion and $5.4 billion, respectively. Gilead may not be in its prime, but it’s a very profitable machine.Investors could do worse than pay 11.3 times this year’s earnings for a company like Gilead, with the upside kicker being remdesivir.Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker’s Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Gilead Sciencesa Coronavirus Treatment Has Big-Time Potential appeared first on InvestorPlace.
Investors Are Wondering: Where’s Warren Buffett?
WWWD? What Will Warren Do? Everyone knows legendary investor Warren Buffett of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) stock never lets a crisis go to waste. No one since J.P. Morgan has taken advantage of more crises than the 89-year-old Sage of Omaha.Source: Krista Kennell / Shutterstock.com We know he’s been getting ready. Berkshire Hathaway held $128 billion of cash at the end of 2020 . Most was locked in U.S. government bills and notes.With new bills now earning less than 1%, and 10% of the workforce suddenly unemployed, this would seem to be a perfect opportunity.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Nothing So Far for BRK.B StockThe only public move so far has been to raise even more cash. Specifically, Buffett has borrowed yen and euros. Because government paper there carries a negative interest rate, he can literally raise cash for nothing. * 7 Restaurant Stocks to Buy for a Big Rebound Berkshire’s 13F for the last quarter of 2020 shows it buying shares in Kroger (NYSE:KR) and Biogen (NASDAQ:BIIB). These companies are doing well. But Berkshire also bought shares in RH (NYSE:RH), the merchants formerly known as Restoration Hardware; General Motors (NYSE:GM); and Occidental Petroleum (NYSE:OXY), which have been hammered. To this you can also add losses in portfolio stocks, like Apple (NASDAQ:AAPL), American Airlines (NYSE:AAL), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and American Express (NYSE:AXP). Berkshire also owns a lot of Amazon.Com (NASDAQ:AMZN).There are rumors of Buffett circling all the hardest-hit sectors — the airlines, the hotels, the casinos. These businesses, for now, are virtually out of business. But he hasn’t yet struck.Instead he’s relaxing at his Omaha home, drinking Coca-Cola (NYSE:KO), which is down 20% this year. He is doing good works, like helping Goldman Sachs (NYSE:GS) get needed masks to Mt. Sinai Hospital in New York. Why Wait?One reason Buffett may continue to hold cash is that Berkshire Hathaway is mostly an insurance company.As its recent annual report shows Berkshire owns GEICO, as well as some of the biggest insurance and re-insurance operations in the world.It also owns utilities, railroads, and several industrial companies hit hard by the virus. Some of its businesses, like McLane Co., which distributes groceries, are essential. Others like Benjamin Moore and Shaw Industries, which make paint and carpets, aren’t. Taken together it’s a rough collection for these tough times. Berkshire stock is down by one-quarter for the year. It may need cash to keep its own units afloat. We Need WarrenLike many companies, Berkshire-Hathaway had to cancel its annual meeting. But the world is waiting to hear from Buffett anyway. Mostly it’s waiting to see him pull the trigger on a deal.Right now he has the cash to buy Tesla (NASDAQ:TSLA), Starbucks (NASDAQ:SBUX) or McDonald’s (NYSE:MCD). But that’s not how he does business in a panic.Instead, he waits for the panic to hit a peak, then takes premium assets at giveaway prices. That’s what he did in the Great Recession. He advised bailing out banks and later got about 10% of Bank of America at a fabulous discount.That’s what may be expected this time, a swoop into companies that might otherwise go out of business. Those deals, when they come, will mark the climax of the present bear market. The Bottom LineWarren Buffett turns 90 in August. His long-time business partner, Charlie Munger, is even older. His reported successors, insurance executive Ajit Jain and energy executive Greg Abel, are not investors. Ted Wechsler has the title of investment manager for Berkshire. Another potential CEO is Todd Combs, who now runs GEICO. Neither has a high public profile.While waiting to see how Buffett saves us this time, ask who will save us next time?Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, essays on technology available at the Amazon Kindle store. Write him at [email protected] or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in WFC, AAPL and AMZN. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker’s Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Investors Are Wondering: Whereas Warren Buffett? appeared first on InvestorPlace.
3 Coronavirus Stocks That Could Lead the Market to Recovery
Almost three months have passed since COVID-19 began its spread beyond China’s borders, and the market remains in free fall. Capping off another volatile week, stocks fell on Friday April 3 in response to disappointing U.S. economic data, offsetting gains posted in the previous session. Based on a new report from the Labor Department, the U.S. economy saw 701,000 jobs erased in March, much more than economists originally expected as the figure doesn’t even include the 10 million unemployment filings that occurred after March 14. In addition, New York Governor Andrew Cuomo announced on Friday that the state had experienced the biggest jump in COVID-19-related deaths the day before, sending the market plummeting even further. For those investors feeling hopeless right now, there’s a bright spot on the horizon. Several companies have stepped up to the plate, developing innovative solutions to fight off the deadly virus. According to some Wall Street pros, these new technologies represent a possible inflection point in the war against COVID-19, and could even help drive the stock market’s recovery. Taking all of this into consideration, we used TipRanks’ database to get more information on three stocks at the frontline of the COVID-19 battle. The investing platform revealed that all of these Buy-rated tickers have been flagged by some analysts for their technology’s huge potential. Let’s get started. Abbott Laboratories (ABT) In the fight against COVID-19, Abbott’s tests to identify the virus have helped healthcare providers make significant headway. Along with its molecular test that is already being used in labs throughout the U.S., the company revealed on April 3 that the FDA granted emergency use authorization (EUA) for a rapid coronavirus testing system. As the product can detect positive results in five minutes and negative results in 13 minutes, much faster than any other available COVID-19 tests, Wall Street focus has locked in on ABT. Weighing in for Barclays, analyst Kristen Stewart believes the test will be performed on the ID NOW platform, an isothermal nucleic acid amplification technology, and thus offers advantages that go beyond its speed. “The system is easy to use with minimal training. The tests are CLIA waived, which is an advantage and allows for the placement in physician offices and urgent care offices. We estimate there are at least 15,000 systems in the United States, placed throughout physician offices, urgent care offices, and other healthcare facilities,” Stewart explained. As for the total opportunity, Stewart doesn’t dispute that Abbott’s manufacturing capacity, which she thinks would be the rate limiting factor as there is significant demand for the test, remains unclear. “The pricing would likely be under the non-CDC pricing
$51 level, perhaps in the $35-$45 range. We hope Abbott would supply these details when it announces approval,” the analyst noted. That being said, 4 million of its molecular tests can be conducted each month on its m2000 systems, with ABT charging about $30 per test. As a result, Stewart kept an Overweight call and $98 price target on the stock. Should this target be met, a twelve-month gain of 23% could be in the cards. (To watch Stewart’s track record, click here) Turning now to other Wall Street analysts, the bulls have it. With 8 Buy ratings and 3 Holds assigned in the last three months, the consensus rating comes in as a Moderate Buy. The $97.89 average price target implies only slightly less upside potential than Stewart’s forecast. (See Abbott stock analysis on TipRanks)Johnson & Johnson (JNJ) Next up is a consumer goods and healthcare heavyweight, Johnson & Johnson, which is developing a vaccine against COVID-19. After the company identified a lead candidate, one analyst thinks JNJ is one of the names capable of fueling the stock market’s turnaround. With a lead experimental vaccine candidate selected, Kristen Stewart, who also covers ABT, points out that at the latest, JNJ can kick off Phase 1 human clinical studies by September 2020. According to management, the first doses of the vaccine could be available under Emergency Use Authorization (EUA) in early 2021. Adding to the good news, JNJ has significantly expanded its partnership with the Biomedical Advanced Research and Development Authority (BARDA), with both entities pledging more than $1 billion to co-fund the vaccine’s development and clinical testing. If that wasn’t enough, Stewart notes “BARDA and JNJ have provided additional funding to allow expansion of ongoing work to identify anti-viral treatments against COVID-19.” However, while JNJ has ramped up the scaling of manufacturing capacity and has a target of supplying more than 1 billion vaccine doses, there is a risk that the candidate won’t eventually receive approval. Having said that, Stewart argues the real goal is to develop an affordable vaccine “on a not-for-profit basis for emergency pandemic use.” She added, “Thus we would anticipate the cost it would charge for the vaccine would recoup the cost of development, cost of scaling up the manufacturing, and cost of production. Thus, we would not look at the vaccine as being a windfall or major positive from a financial perspective. We believe J&J is doing the right thing and adhering to the company’s long-running Credo.” Despite the fact that its medical device business could take a hit as elective procedures are delayed, its COVID-19 vaccine candidate, balanced portfolio, strong balance sheet and dividend, yielding 2.8% and paying out $3.80 per share annually, reaffirm Stewart’s confidence. Bearing this in mind, she maintained a Buy rating and $173 price target. This implies shares could surge 29% in the next year. What does the rest of the Street have to say? Out of 9 recent reviews, 8 were bullish, making the consensus rating a Strong Buy. In addition, the $157.22 average price target brings the upside potential to 17%. (See Johnson & Johnson stock analysis on TipRanks) Gilead Sciences (GILD) Biotech Gilead Sciences has grabbed headlines left and right thanks to its experimental COVID-19 treatment, remdesivir. With the company now stating it will donate 1.5 million doses of the drug, which could treat 140,000 patients, it’s no wonder some analysts are standing firmly behind GILD. Shares are up 20% year-to-date, but Jeffries’ Michael Yee believes its growth story is still heating up. Looking at the big picture, he argues, “GILD remains a defensive positioning stock particularly in this macro environment. We appreciate short-term trading has been mostly dictated around market volatility risk-on/off and expectations on remdesivir for COVID-19 data starting in April.” That being said, there’s more to this biotech’s “improving story”. The company has placed a significant focus on expansion, with its recent M&A activity including a $5 billion deal with immuno-oncology company Forty Seven. Additionally, its second quarter Phase 3 filgotinib UC data readout could send shares on an upward trajectory as well as improve sentiment surrounding the drug’s differentiation from AbbVie. Yee already thinks that the pbo-adjusted remission rates imply that filgotinib is “competitive with other UC drugs.” Expounding on this, he stated, “While we expect investors to make cross-trial comparisons, we caution comparing directly to other UC datasets is imprecise due to differing baseline characteristics such as proportion of biologic naive/experienced and slightly different endpoints of the Mayo score. However — recent commentary from GILD suggests positive confidence around results and good activity in both biologic naive and experienced.” With an August PDUFA date for filgotinib in RA, Yee does, however, acknowledge that a class label Black Box could be given as a result of uncertainty related to degree of bleeding difference between various JAK drugs. It’s also still unclear if filgotinib will be approved at the 200mg dose. Commenting on the second issue, Yee said, “In any case, it’s reasonable to approve 200mg particularly if the MANTA interim look is OK but FDA is a conservative bunch. Also, even if not, we point out ABBV was only approved at the low dose in RA as well so it would not be a totally critical issue.” To this end, Yee reiterated a Buy recommendation and $89 price target, indicating 14% upside potential. (To watch Yee’s track record, click here) Looking at the consensus breakdown, 10 Buys, 9 Holds and 2 Sells add up to a Moderate Buy consensus rating. At $76.88, the average price target puts the downside potential at 2%. (See Gilead stock analysis on TipRanks)To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Alibaba Stock Offers Investors a Beautiful Buying Opportunity
After a recent bounce, Alibaba (NYSE:BABA) is down almost 20% from its 52-week highs. That’s notably better than the S&P 500, which is down about 27% from its highs. Given all the circumstances at the momentum, it’s hard to determine if Alibaba stock is outperforming or underperforming expectations.Source: Kevin Chen Photography / Shutterstock.com While Alibaba is easily outperforming the S&P 500, it’s lagging what many would consider its peers. For instance, JD.com (NASDAQ:JD) is down just 6.5% from its highs, while Amazon (NASDAQ:AMZN) is down 11.3%.So while there are some positives with Alibaba’s performance, there are some questions as well.InvestorPlace – Stock Market News, Stock Advice & Trading Tips China Is BoomingBefore getting into Alibaba, something must be said about the bigger picture here. The company operates out of China, which surely every investor knows at this point. With a population of 1.38 billion, it has the most people of any country on earth. China’s middle class is booming and growing at a staggering rate. Click to Enlarge Source: Chart courtesy of Statista, Source from Sina.com.cn; Euromonitor For illustrative purposes, check out these two charts. The first shows the sheer size of China’s middle class. In 2002, the figure stood at just 80 million. This year, it’s projected to be 700 million people. That’s up almost 900% in less than two decades, and more than double the entire United States population. * 7 Restaurant Stocks to Buy for a Big Rebound The second chart, below, shows that in 2020, just 5% of China’s population was considered middle class. This year, that figure is expected to stand at 48%, highlighting just how much wealth has been created in the country.These are the people who are driving growth in China. The middle class is fueling consumption, online ordering and GDP growth in China. As the world’s second-largest economy and most populous country, China is set for steady and strong growth down a long runway. Click to Enlarge Source: Chart courtesy of Statista, Source from Sina.com.cn Admittedly, COVID-19 will deal a setback to the Chinese economy. But it will do that across the world — it’s not as if China will be singled out amid this nasty outbreak. In time, though, China and the world will recover. A Deeper Dive on Alibaba StockBecause of the secular growth in China’s wealth, consumption plays are an obvious choice. It’s why we like JD.com so much too. But not only is Alibaba a much bigger play in commerce than JD, it’s also more diverse.In 2020, 66% of Alibaba’s revenue came from China commerce revenue. That’s down notably from 79% in 2020, even though Alibaba saw a drastic increase in total China commerce revenue, (up more than 100% from 2020 to 2020). The reason that its share of revenue decreased, despite rising sales, is due to other growth segments making up a larger portion of the revenue pie.For instance, cloud-computing revenue was up almost four-fold from 2020 to 2020, now making up Alibaba’s largest non-commerce revenue stream. Digital entertainment, it’s second-largest revenue generator ex-commerce, climbed 63% from 2020 to 2020.The diversity is great, but the reality is Alibaba generates most of its revenue from commerce, for which it has a dominant position in China. Its Tmall platform represented more than 61% of total gross merchandise value (GMV) market share in Q4 2020. While shopping may take a hit in the short term, online shopping is a long-term secular growth story.COVID-19 is bad for everyone, but at the end of the day, consumers still need to buy things. They aren’t leaving their house to do it, which leaves e-commerce — and Alibaba — there to answer the call. BABA By the Numbers Click to Enlarge Source: Chart courtesy of Statista, Source from Alibaba Over the last four quarters, Alibaba has generated $24.7 billion in net income on $70.6 billion in sales. Profit of $9.48 per share values Alibaba stock at roughly 19.6 times earnings. That’s a pretty darn good price for a company with multiple secular growth drivers (cloud, commerce, etc.) in motion in a country with a booming middle class.A reasonable valuation for unreasonably solid growth is simply too good to pass up. Alibaba stock is a buy on dips, especially as it continues to outperform the broader market amid the coronavirus outbreak.Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker’s Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Alibaba Stock Offers Investors a Beautiful Buying Opportunity appeared first on InvestorPlace.
U.S Mortgage Rates Slide Again, with Purchase Applications also on the Slide
Mortgage rates slide, as risk aversion and a slide in applications weigh. A 3rd weekly decline could be on the cards as COVID-19 hits the labor market.
Bearish Bets: 2 Stocks You Should Think About Shorting This Week
Using recent actions and grades from TheStreet’s Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each week that look bearish. While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Zillow Group Inc. recently was downgraded to Sell with a D+ rating by TheStreet’s Quant Ratings.
REIT Investors Can Expect Dividends to Be Paid Mostly in Stock
REITs are required to pay out at least 90% of their taxable income to shareholders annually, and with some tenants unable to pay rent in a coming recession, there won’t be sufficient cash to pay dividends. REITs will then turn to their stock.
China’s Luckin Coffee says business will continue amid financial fraud probe
Luckin Coffee Inc said on Sunday it will maintain normal operations at its stores and apologised to the public, days after it announced an internal investigation had shown its chief operating officer and other employees fabricated sales deals. Shares of Luckin, which competes in China with Starbucks Corp, sank as much as 81% on Thursday in New York after it said the investigation had found that fabricated sales from the second quarter of 2020 to the fourth were about 2.2 billion yuan ($310 million). “Regarding the suspected financial fraud and the extremely bad impact it has caused, Luckin Coffee hereby sincerely apologizes to the public,” the company said in a post on its official Weibo account.
Barron’s Picks And Pans: Post-Pandemic Ideas, Safe Dividends And More
This weekend’s Barron’s examines the health of both the advertising industry and the internet.Other featured articles offer retail and biotech picks for after the pandemic, as well as relatively safe dividend aristocrats.Also, the prospects for a top telecom, the iPhone maker and more.”Google and Facebook Can’t Save the Advertising Industry This Time” by Eric J. Savitz points out that the advertising world is in crisis and there won’t be an industry bright spot like there was in 2008. See what that could mean for Facebook, Inc. (NASDAQ: FB) and many others.Savitz’s “Why You Don’t Have to Worry About the Internet’s Health” shows why the internet is doing just fine, even though Comcast Corporation (NASDAQ: CMCSA) says video streaming is up 38% and video chats and internet phone calls have soared 212%.In “Retail Winners and Losers for When We Can Spend Again,” Jack Hough suggests that now is the time to consider what post-pandemic retail will look like. How might Amazon.com, Inc. (NASDAQ: AMZN), Home Depot Inc (NYSE: HD) and many others fare?Can Johnson & Johnson (NYSE: JNJ) or Procter & Gamble Co (NYSE: PG) weather the coronavirus crisis with payouts intact, if not higher? See Lawrence C. Strauss’ “These 8 Aristocrats Have Safe Dividends. (Safe Being a Relative Term Right Now.)” In Lauren R. Rublin’s “7 Biotech Stocks to Buy for a Post-Pandemic World,” see why the life sciences sector will emerge as a winner from the current crisis and Chinese biotechs look appealing. How about Gilead Sciences, Inc. (NASDAQ: GILD)?See also: Tesla Is Still A ‘Maximum Short’ For Chanos”The Dividends of Large Banks Look Safe for Now” by Strauss shows why payouts from Bank of America Corp (NYSE: BAC) and Citigroup Inc (NYSE: C) and their peers look safe for a variety of reasons.See how several recession scenarios would affect business at AT&T Inc. (NYSE: T) and its ability to maintain its payout, according to an analyst featured in Nicholas Jasinski’s “What Would It Take to Cut AT&T’s Dividend?”In “Apple Earnings Estimates Keep Falling. The Debate Is Whether to Buy the Stock,” Savitz discusses why Wall Street analysts continue to ratchet down their financial forecasts and target prices for Apple Inc. (NASDAQ: AAPL).Also in this week’s Barron’s: * Barron’s Mutual Fund Quarterly * How New York’s war on coronavirus foreshadows what’s next for the rest of the country * Whether Wall Street is ready for the new financial crisis * How America’s hospital system is about to be tested * Why CEOs are looking beyond shareholders * Whether the bottom for stocks has been seenAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And More * Barron’s Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More * Notable Insider Buys In The Past Week: GM, Oracle And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Co-founder of George Soros’s legendary Quantum Fund warns of the ‘worst bear market of my lifetime’
Jim Rogers has been sounding the bear alarm for a while, and now that the market seems to be cooperating, the Rogers Holdings chairman is turning up the volume.
4 Top Stock Trades for Monday: AMD, BA, UBER, LVGO
A record jobless claims report on Thursday was followed up with a dismal jobs report on Friday. That said, let’s look at a few top stock trades for next week. Top Stock Trades for Monday No. 1: Advanced Micro Devices (AMD) Click to Enlarge Source: Chart courtesy of StockCharts.comAdvanced Micro Devices (NASDAQ:AMD) was trading great on the long side when the market was rebounding higher. In all, AMD stock has actually been trading pretty well amid the novel coronavirus pullback.In late February, AMD stock posted a wicked rebound off the $42 area, but just a few sessions later, it was harshly rejected by the 50-day moving average. The latest rally was cut short by the now-declining 50-day moving average once again. It shows that bulls can’t keep momentum on their side.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIf the $42 level fails to buoy AMD once again, look for a retest of the $38 area and the 200-day moving average. At least on the first test, I would expect this zone to act as support. If it does, a rebound back to $42 is in play. If it doesn’t, though, $34 to $35 could be in play. Top Stock Trades for Monday No. 2: Boeing (BA) Click to Enlarge Source: Chart courtesy of StockCharts.comThe volatility remains high in Boeing (NYSE:BA). Shares broke below $100 in mid-March, then doubled in a rapid rally up past $180. However, the 38.2% retracement from the February high to March low, along with the 20-day moving average acted as resistance.Now shares are clinging to the $120 area. Below that puts $100 back on the table. If $120 holds as support, see if Boeing can rally back up through $140. Over it puts the $160 mark and the 20-day moving average in play.Keep it simple with Boeing stock, and go level to level. Top Stock Trades for Monday No. 3: Uber (UBER) Click to Enlarge Source: Chart courtesy of StockCharts.comLike Boeing, Uber (NYSE:UBER) posted a robust rally off last month’s lows.However, after bubbling just below $28, Uber stock could not push through this mark, which now becomes upside resistance.The 20-day moving average failed to buoy the stock, as shares are now retreating. For bulls, they’ll want to see this stock hold up over $20, if not purely for psychological reasons. The 23.6% retracement is not the support level I’d go all-in at, but it’s the last bit of support between Uber’s current stock price and sub-$16.Below $20, and that $16 mark is in play. On a rally, see if Uber can reclaim its 20-day moving average, then retest $28. Top Stock Trades for Monday No. 4: Livongo Click to Enlarge Source: Chart courtesy of StockCharts.comRemember Livongo (NASDAQ:LVGO), a stock we flagged in late March as it had an ascending triangle setup?That’s a bullish technical development, where rising uptrend support (blue line) squeezes a share price against a static level of resistance. In this case, resistance came into play near $24.Well, it didn’t take long for LVGO stock to burst through this resistance mark, reclaiming its 50-day and 100-day moving averages in the process. With the breakout playing out, what should investors keep an eye on now?Traders may consider booking some or all of their profits in Livongo. After all, this is a tough tape — especially for swing traders. From here though, keep an eye on $30, which has been resistance for several quarters, and $24, the prior breakout level. The latter should now act as support, provided the bulls can remain in control.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long LVGO. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker’s Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 4 Top Stock Trades for Monday: AMD, BA, UBER, LVGO appeared first on InvestorPlace.
These 60 large U.S. companies are ‘susceptible to a dividend cut,’ according to Jefferies
Investors who rely on income are already seeing companies reduce or eliminate dividend payouts as the coronavirus spreads.
‘Fast Money’ Traders Weigh In On AT&T, Tesla And Twitter
On CNBC’s “Fast Money,” Guy Adami said he agrees with Goldman Sachs’ upgrade on Twitter Inc (NYSE: TWTR) as the stock should benefit from increased traffic during the crisis. He is concerned about the ad spending, but he thinks that traders who want to play the market can buy some at the current price level.Dan Nathan sees Twitter as a valuable utility for the users, but the company is not growing sales at a rate one might expect for a growth company valued this way. If it drops to high to mid teens, the stock would be amazingly cheap, said Nathan.See Also: Tesla Analysts Dissect ‘Surprisingly Strong’ Q1 Deliveries DataTim Seymour spoke about AT&T Inc. (NYSE: T). He thinks the stock traded lower Friday as investors listened to the downgrade from MoffettNathanson, which now has a $23 price target for the stock. Seymour explained the company wanted to become more cyclical, but it has done so in the recession and now, investors are concerned about its debt. He has a long position in the name and he added the company now has a lower financing costs.Steve Grasso would be a seller of Tesla Inc (NASDAQ: TSLA) because going forward delivery numbers are going to be disappointed. Nathan is concerned people won’t be able to afford Tesla’s cars during the recession. He thinks the stock should be trading lower.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Coronavirus prompts government to loosen rules on tapping retirement savings. Here’s how
The CARES Act has loosened up the rules for tapping retirement savings like 401(k)s or IRAs. Here’s what’s changed and what you need to consider.
What Would It Take to Cut AT&T’s Dividend? An Analyst Did a Stress Test.
MoffettNathanson analyst Craig Moffett ran through several recession scenarios, looking at how they would affect AT&T’s business and ability to maintain the payout.
Raytheon Technologies Debuts On The Dow As Rival GE Deepens Cuts
Raytheon Technologies debuted on the Dow Jones Industrial Average Friday after the closing of its massive merger.
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