Showing posts with label CNBC. Show all posts
Showing posts with label CNBC. Show all posts

Apr 28, 2020

US Market | Futures Indicator: Dow futures rise around 100 points as oil prices continue to fall

Maggie Fitzgerald

U.S. stock futures were higher on Tuesday, as oil prices continued to fall after plunging in the previous session.
At around 4:40 a.m. ET, Dow futures were up 117 points, indicating a positive open of more than 89 points. S&P 500 and Nasdaq futures both pointed to modest gains at Tuesday’s open.
The moves came as oil prices continued to sell-off. U.S. West Texas Intermediate crude for June delivery plunged almost 20% to $10.27 per barrel following a more than 24% decline on Monday. The international benchmark Brent crude futures contract also shed 4.4% to $19.07 per barrel.
Oil prices have come under pressure in recent weeks as concerns mount over declining storage capacity.
But a partial reopening of the economy — in Alaska, Georgia, South Carolina, Tennessee, Texas and others — had earlier boosted investor sentiment, with certain U.S. businesses poised to benefit from the first wave of consumers emerging from the coronavirus driven quarantine. 
On Monday, the Dow Jones Industrial Average rose more than 350 points, closing above 24,000 for the first time since April 17. The S&P 500 and Nasdaq Composite always registered a gain, advancing 1.5% and 1.1%, respectively. Monday’s gains put the S&P 500 on pace for its biggest one-month gain since 1987 with an 11.4% surge in April.
“The stock market is increasingly reflecting a restart in the economy as more and more states show a willingness to allow some economic activities to come back online,” Jim Paulsen, chief investment strategist at The Leuthold Group told CNBC. “Not only did the S&P 500 index post a healthy gain today but it was led by those segments of the marketplace which are most dependent on an economic restart including small caps, high beta stocks, and cyclical sectors like financials, materials and industrials.”
Stocks that would benefit the most from a reopening led the market higher on Monday. Retailers, one of the hardest hit industries by the coronavirus, helped than broader market with Kohl’s, PVH, Nordstrom, Gap and L Brands all surging more than 11%. Casino stocks and cruise lines also saw large gains. Disney was the biggest winner in the Dow, rising 4.8%.
Bank stocks also got a boost from rising bond yields, as investors fled safer assets and moved into equities. JPMorgan rose 4.3%, Citigroup surged 8% and Wells Fargo gained 5.5%. Bank f America and Goldman Sachs rose 5.8% and 3.7%, respectively. 
While many investors are bullish on the first wave of reopenings, DoubleLine CEO Jeffrey Gundlach said Monday the market could retest its March low as market participants could be underestimating the social disruptions from the coronavirus.
“I think a retest of the low is very plausible,” Gundlach said on CNBC’s “Halftime Report.” “People don’t understand the magnitude of ... the social unease at least that’s going to happen when ... 26 million plus people have lost their job,” the so-call bond king added.
Investors are also digesting the busiest week of earnings season, with 145 S&P 500 companies reporting between Monday and Friday. A quarter of the way through earnings season companies have proved the coronavirus is weighing heavy on corporate profits.
Alphabet, Ford and Starbucks all release quarterly earnings on Tuesday. PepsiCo, 3M, Caterpillar, Southwest Air, Merck & Co., Pfizer, UPS and Advanced Micro Devices are also slated to report.
Consumer confidence will be released at 10 am E.T. on Tuesday. Economist polled by Dow Jones are expecting a read of 92 in April, down from March’s read of 120. 

Apr 27, 2020

Europe Bank: Deutsche Bank warns coronavirus could impact its capital target as profit falls from a year ago

Silvia Amaro

GP: Christian Sewing, chief executive officer of Deutsche Bank AG
Christian Sewing, chief executive officer of Deutsche Bank AG, pauses as Germanys biggest bank announces full year earnings in Frankfurt, Germany, on Friday. Feb. 1, 2019. Deutsche Banks revenue contracted for an eighth straight quarter in the final months of last year, complicating Chief Executive Officer Christian Sewings plan to turn around the lender through cost cutting. Photographer: Krisztian Bocsi/Bloomberg via Getty Images
Krisztian Bocsi | Bloomberg | Getty Images

Deutsche Bank said it expects to report a fall in net income in the first quarter from a year ago, and will set aside a significant amount for potential loan losses when it reports full earnings Wednesday.
It also warned that it could miss its capital target in the future, as a result of Covid-19.
In a prerelease Sunday, the German bank said it expects to report net income of 66 million euros ($71.56 million) for the first quarter of 2020, compared with 201 million euros in the first quarter of 2019.
Revenues are expected to come in at 6.4 billion euros.
The bank also set aside 500 million euros in provisions for credit losses. It’s a figure that is being closely watched by investors this earnings season as banks prepare for the financial impact of the global coronavirus pandemic.
It will give full details of its results on Wednesday as scheduled.
Over the last decade, the embattled lender has faced restructuring, higher competition, litigation charges and lower market share. Deutsche Bank ended 2019 with a full-year net loss of 5.3 billion euros.
Deutsche Bank’s share price has fallen over 25% in the last 12 months.

Lower capital provisions

Deutsche Bank also said Sunday that its common equity tier 1 ratio — a metric of bank solvency — fell to 12.8% at the end of the first quarter, from 13.6% at the end of 2019.
“The decline in the CET1 ratio in the quarter included approximately a 30 basis points negative impact from the revised securitization framework and approximately 40 basis points of items precipitated by the Covid-19 pandemic,” the lender said in its statement.
Going forward, Deutsche Bank said it might present a lower CET1 ratio, below its target of 12.5%,
“The short-term implications of the COVID-19 pandemic make it difficult for the bank to accurately reflect the timing and the magnitude of changes to its original capital plan,” it said. However it added that it “remains committed to maintaining a significant buffer above its regulatory requirements at all times.”
The German bank also said that it is “unlikely” it will reach its 2020 fully-loaded leverage ratio target of 4.5%. This metric measures a bank’s financial health.

Apr 20, 2020

US Market | Futures Indicator Update: Dow futures drop more than 500 points to start the week as oil prices decline

Fred Imbert

U.S. stock futures traded lower early Monday morning as investors weighed the latest coronavirus news along with a sharp decline in U.S. crude prices. The market was coming off its first back-to-back weekly gains in more than two months.
Dow Jones Industrial Average futures fell 531 points, pointing to a Monday opening drop of around 500 points. S&P 500 futures dropped 1.8% while Nasdaq 100 futures lost 1.2%
Stock futures were following a decline in U.S. oil prices, which raise concerns about how deep the economic slowdown will be this quarter and also hit the prices of energy stocks.
The May contract for West Texas Intermediate, which expires on Tuesday, plunged more than 28% to $13.02 per barrel on weak demand outlook and storage capacity issues.
The negative impact on stock futures from oil likely would have been worse were it not for lesser declines in oil contracts expiring during future months. WTI’s June contract slid over 8% to $22.78 per barrel. July’s oil contract was down 5%. It was a strange phenomenon that analysts chalked up to the collapse in demand for oil contracts expiring this week. Refineries don’t need the oil and are near storage capacity with most of the country shut down.
“The moves in the oil market are really just unbelievable now that we are literally running out of storage space,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note. “I do believe that these type of moves is what bottoms are made of and in May and June when things start to reopen again it will go a long way in helping along with the production cuts.”
Stocks got a jolt after a report last week said patients with severe virus symptoms were quickly recovering after using remdesivir, a Gilead Sciences drug. The Dow, S&P 500 and Nasdaq all rose more than 2% last week.
Last week’s gains also put the S&P 500 and Dow more than 30% above their intraday lows set on March 23.
New York Gov. Andrew Cuomo said Sunday the state is “past the high point” of new cases, noting the infection rate has fallen along with coronavirus-related hospitalizations. Cuomo added New York will roll out antibody testing this week. In New Jersey, Gov. Phil Murphy said Saturday: “We’re flattening the curve.”
In Washington, Treasury Secretary Steven Mnuchin said the administration and Congress were close to striking a deal on a second round of loans for small businesses. A $349 billion rescue loan program ran out of money on Thursday.
“The equity markets and bond markets in the US are telling me that my relatively optimistic outlook for the global economy is also what the markets are starting to price in,” Stephen Jen, co-founder of SLJ Macro Partners, wrote in a note. “There is now light at end of the tunnel.”
“While nobody should be under the illusion that the virus will be eradicated soon, it is important to the equity markets that we have gone through most of the known ‘rolling apexes,’ through mitigation measures,” Jen said.
But while the market may be pricing in an improvement in the virus outbreak, recent economic data has been dismal. Over the past month, 22 million jobs have been lost, weekly unemployment claims numbers from the Labor Department showed.
The number of coronavirus related deaths have also risen to more than 165,000 globally, according to Johns Hopkins University. In the U.S., the death toll has risen to over 41,000.

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves in the premarket: Halliburton, Disney, PepsiCo, Walmart & more

Peter Schacknow

Take a look at some of the biggest movers in the premarket:

Halliburton (HAL) – The oilfield services company reported quarterly profit of 31 cents per share, 7 cents a share above estimates. Revenue also beat Wall Street forecasts. Halliburton warned North American activity will sharply decline during the current quarter, due to oversupply and a massive drop in oil demand.
M&T Bank (MTB) – The bank earned $1.95 per share for its latest quarter, well below the consensus estimate of $2.47 a share. M&T increased its provision for credit losses to $250 million from $22 million a year ago, and $54 million at the end of the prior quarter. The company said the impact of Covid-19 on its operations could be material.
Walt Disney (DIS) – Disney is suspending pay for more than 100,000 employees, according to a report in the Financial Times. The move would save the entertainment giant up to $500 million per month. Separately, UBS downgraded Disney to “neutral” from “buy,” saying the pandemic is hitting every Disney business, most especially the theme parks.
PepsiCo (PEP) – The beverage and snack company’s purchase of Rockstar Energy Beverages has won Federal Trade Commission approval, according to the New York Post. The nearly $3.9 billion deal was announced on March 11 and should close in the next few days.
Walmart (WMT) – Walmart sales jumped nearly 20% in March, according to documents reviewed by The Wall Street Journal, as consumers stockpiled household essentials amid the virus outbreak. The retail giant is also now requiring its workers to wear masks.
DuPont (DD) – The chemical company said it expected first-quarter profit of 82 cents to 84 cents per share, compared to a consensus estimate of 68 cents a share. DuPont is suspending full-year guidance due to uncertainty about the impact of the coronavirus outbreak and said it has suspended operations at several manufacturing facilities that serve the auto industry.
Shake Shack (SHAK) – Shake Shack returned a $10 million loan it had received from the U.S. government after the restaurant chain was able to raise additional capital on its own.
Novartis (NVS) – Novartis won Food and Drug Administration approval to conduct a trial using its malaria drug hydroxychloroquine to treat Covid-19. The Swiss drugmaker said trials will begin within a few weeks and that it will report the results as soon as possible.
Philips (PHG) – Philips pulled its 2020 outlook as the coronavirus outbreak takes an increasing toll on the Dutch health technology company’s bottom line. Demand for the company’s ventilators has increased worldwide, but Philips is also seeing a significant decline in demand for its personal health products.
Facebook (FB) – Facebook is planning to introduce a mobile gaming app today, it tries to compete with offerings from Amazon’s (AMZN) Twitch, Alphabet’s (GOOGL) YouTube, and Microsoft’s (MSFT) Mixer.
Wynn Resorts (WYNN) – Chief Executive Officer Matt Maddox is calling for a mid-to-late May reopening of the Las Vegas Strip, with extensive safety measures in place. Maddox’s call came in an opinion column published on the Nevada Independent news website.
Norwegian Cruise Line (NCLH) – Norwegian has hired Goldman Sachs to explore various financing alternatives including a possible stake sale, according to The Wall Street Journal. Norwegian is attempting to navigate the financial difficulties caused by the virus-induced industrywide shutdown.
Macy’s (M) – Macy’s is exploring a rescue financing package to boost its liquidity, according to a Bloomberg report. The retailer would reportedly sell bonds back by assets including some of its real estate.

Apr 16, 2020

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves in the premarket: Morgan Stanley, BlackRock, Abbott Labs & more

Peter Schacknow

Take a look at some of the biggest movers in the premarket:

Morgan Stanley (MS) – Morgan Stanley posted quarterly earnings of $1.01 per share, below the consensus estimate of $1.14 a share. Revenue also came in below estimates. CEO James Gorman said the company navigated the quarter well in the face of the Covid-19 pandemic, and that the balance sheet and liquidity remain strong.
BlackRock (BLK) – The asset management firm reported quarterly earnings of $6.60 per share, beating the consensus estimate of $6.36 a share. Revenue also came in above Wall Street forecasts. BlackRock saw $35 billion in net inflows despite what it calls “challenging times.” Profit fell 23% from the same quarter a year ago.
Abbott Laboratories (ABT) – The pharmaceutical company reported quarterly profit of 65 cents per share, 7 cents a share above estimates. Revenue also beat forecasts. Abbott withdrew its full-year guidance, citing uncertainties surrounding the coronavirus pandemic.
Bank of New York Mellon (BK) – The bank beat estimates by 17 cents a share, with quarterly earnings of $1.05 per share. Revenue topped estimates as well. Profits were up compared to a year ago, as market volatility boosted its fee revenue. The bank sharply boosted its provision for credit losses to $169 million compared to $7 million a year ago.
Square (SQ) – Raymond James downgraded the mobile payment company’s stock to “underperform” from “market perform,” saying there is a disconnect between the recent outperformance of the stock and the underlying fundamentals of the business.
Costco (COST) – Costco boosted its quarterly dividend by 7.7% to 70 cents per share, bucking the general trend in corporate America since the virus outbreak. The warehouse retailer has been benefiting from Americans stocking up on household staples.
Bed Bath & Beyond (BBBY) – Bed Bath & Beyond earned an adjusted 38 cents per share for its fiscal fourth quarter, beating the consensus estimate of 20 cents a share. Revenue also exceeding Wall Street forecasts, however same-store sales fell 5.6% for the quarter, just before the pandemic shut down large parts of the U.S. economy. The company said the outbreak would negatively impact its results for the rest of this year.
Hertz Global (HTZ) – Hertz is seeking help from the government to avoid bankruptcy, according to sources who spoke to the New York Post. The car rental giant is said to be facing a budget shortfall of up to $1.5 billion in the coming months.
Mylan (MYL) – Mylan named Chairman Robert Coury to the role of executive chairman, a job he had held at the drugmaker from 2012 to 2016. The company said Coury’s experience would help it deal with the significant impact of the Covid-19 pandemic.
United Airlines (UAL) – United cut its May flight schedule by 90%, saying travel demand had essentially shrunk to zero. The airline also warned of possible job cuts.
Lazard (LAZ) – Lazard added former Skadden Arps partner Chris Mallon as a senior adviser in its global restructuring unit. The investment bank is seeking new business from companies facing financial difficulties as a result of the virus outbreak.
Jack In The Box (JACK) – Jack In The Box pulled its 2020 guidance as a result of the Covid-19 pandemic. The company said same-restaurant sales fell 17% for the final five weeks of the quarter that ended on April 12. It is also taking steps to help its franchisees, postponing some rent and fee payments that had been due this month.
J.M. Smucker (SJM) – J.M. Smucker was upgraded to “neutral” from “underperform” at Credit Suisse, which expects food producers to benefit from increased at-home food consumption due to the virus outbreak.

Apr 7, 2020

Oil: A historic production cut from global oil powers this week 'won't necessarily help all that much'

Sam Meredith

Some of the world’s largest oil producers will meet to discuss a historic production cut later this week, with energy analysts split over the prospect of non-allied partners, including the U.S., signing up to a deal immediately thereafter.
An emergency meeting of OPEC and non-OPEC partners, sometimes referred to as OPEC+, will be held on Thursday, as the coronavirus pandemic continues to ravage global oil demand.
OPEC kingpin Saudi Arabia and non-OPEC leader Russia are seen as likely to agree to cut production in an effort to arrest an oversupplied market, but only on the condition that the U.S. joins a global pact, Reuters reported, citing unnamed sources.
President Donald Trump said Monday that OPEC hadn’t asked “that question” yet, but suggested U.S. oil production had already fallen anyway.
Crucially, G-20 energy ministers will convene for their own extraordinary meeting one day after OPEC+ producers sit down for talks.
International benchmark Brent crude traded at $33.87 a barrel Tuesday morning, up around 2.5%, while U.S. West Texas Intermediate (WTI) stood at $27.04, more than 3.7% higher.
Brent fell over 3% in the previous session, with WTI down more than 7% amid fading hopes of an unprecedented supply cut. Both benchmarks have fallen more than 50% from their January peak.
Martin Divisek | Bloomberg | Getty Images
Fatih Birol, executive director of the International Energy Agency, told CNBC’s “Street Signs” on Tuesday that he welcomed the prospect of G-20 oil producers meeting on Friday.
The G-20 meeting is “very important” for two reasons, Birol said. “One, even if this Saudi-Russia agreement would take place, and people talk about the 10 million barrels per day production cut, this will not be enough to address the big problem we are facing.”
The IEA chief warned that the energy agency expected stocks to build by about 15 million barrels per day this quarter, so a deal might put an “upbeat mood in the markets for a couple of days (or) couple of weeks, but people will realize there is still a huge amount of oil in the market.”
“The second (reason) I think the world needs a global political response,” Birol said, before urging all of the world’s oil producers to make a “positive contribution” this week.

Saudi Arabia could let weaker competitors ‘wither’

The coronavirus pandemic has meant countries around the world have effectively had to shut down, with many governments imposing draconian measures on the daily lives of billions of people.
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.
Russian Energy Minister Alexander Novak and Saudi Energy Minister Abdulaziz Bin Salman sign documents during a ceremony following a meeting of Russian President Vladimir Putin with Saudi Arabia’s King Salman in Riyadh, Saudi Arabia, on October 14, 2019.
Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email that he was not optimistic about a deal to cut production this week, and even if there was one, “it won’t necessarily help all that much.”
Saudi Arabia will most likely look to keep production running between 12 million barrels per day and 13 million barrels per day, Schieldrop said, “letting weaker competitors wither or die” in the current market trough.
But, if there is a deal, a widely-based agreement involving both OPEC and G-20 members would probably cut roughly 10 million barrels per day when compared to first-quarter 2020 production levels.
“That will still leave the oil market with a very substantial production surplus, and even that will be of a magnitude the oil market has hardly ever seen before,” Schieldrop said.

‘Long list’ of possible complications

Energy analysts at Eurasia Group said some form of output cut was likely, despite a “long list” of possible complications that could still lead to a breakdown in talks.
“The most significant obstacle to an OPEC++ deal remains around U.S. policy and lack of clarity over Trump’s priorities One of the key issues is reconciling Trump’s longstanding rejection of OPEC with his desire to stabilize the US oil industry.”
“The G-20 forum could provide space for a looser arrangement where explicit U.S. cuts are not necessarily required and market-led decreases in U.S. production can potentially be repackaged as a U.S. contribution,” Eurasia Group said.

Mar 31, 2020

World Economy: South Africa looks to structural reforms as it loses its last investment-grade credit rating

Elliot Smith

GP 200331: Tito Mboweni, South African finance minister
PRETORIA, SOUTH AFRICA - MARCH 16: Finance minister, Tito Mboweni briefs the media on the details of government interventions in various sectors of the departmental portfolios on COVID-19 at DIRCO Media Centre.
Phill Magakoe/Gallo Images via Getty Images

South Africa has lost its last remaining major investment-grade sovereign credit rating, as existing economic weakness is compounded by the potential impact of the global coronavirus pandemic.
South Africa has no investment-grade sovereign credit rating from any of the major ratings agencies for the first time since its return to global markets in 1994.
Moody’s announced on Friday that it had cut the country’s last investment-grade rating to “junk,” sending the Rand to an all-time low of below 18 to the dollar. Standard & Poors and Fitch both downgraded Africa’s most industrialized economy to sub-investment grade in 2017.
In its release, Moody’s cited structurally weak growth, limited capacity to stimulate the economy and an “inexorable rise” in government debt over the medium term as key reasons for the downgrade and maintenance of its “negative” outlook.
The situation has been exacerbated by the expected economic impact of the coronavirus pandemic. Confirmed cases in South Africa have now exceeded 1,300, though the government is hoping that drastic early lockdown measures will prevent the exponential spread seen in Europe and the U.S.
“Unreliable electricity supply, persistent weak business confidence and investment as well as long-standing structural labour market rigidities continue to constrain South Africa’s economic growth,” Moody’s said, adding that these factors mean South Africa is entering a period of much lower global growth in an “economically vulnerable position.”
Debt-to-GDP (gross domestic product) increased by 10 percentage points from 2014-18 and Moody’s expects this to rise by a further 22 percentage points between 2019 and 2023, with the deficit widening in 2020 to around 8.5% of GDP.
Fiscal strains from interest payments and support to state-owned enterprises will continue, the agency predicted. The government debt burden is expected to rise from 69% of GDP in 2019 to 91% by the end of 2023.

‘It is up to South Africa’

South Africa’s credit rating has deteriorated because of very low (and currently negative) economic growth, large fiscal deficits and sharply rising public debt, loss-making state-owned entities, and deep contestation of proposed social and economic policy reforms,” explained Jeff Gable, head of research at South Africa’s Absa Bank.
In a statement Monday, Gable suggested that whether South Africa will return to investment grade or slide further away relies on the country demonstrating “significant improvement” in its economic reforms.
“It is hard to argue that South Africa hasn’t witnessed a steep deterioration in fundamentals, in part by our own inability to act over the last decade and in part due to the new risks due to the global virus,” Gable said.
“And so it is the agencies’ duty to reflect that in their ratings. Similarly it is clear that it is up to South Africa, and not the credit rating agencies, as to which direction that country would like to take going forward.”

Bold structural reforms

On Sunday, Finance Minister Tito Mboweni and South African Reserve Bank (SARB) Governor Lesetja Kganyago held a media conference call, in which Mboweni said that he and President Cyril Ramaphosa had vowed to move “more boldly” on their structural reforms program.
Mboweni announced the creation of a unit within the finance ministry called “Vulindlela” – which means “lead the way” in isiZulu – that “will become the front soldiers of structural reforms in the South African economy,” according to a research note Monday from NKC African Economics.
President Cyril Ramaphosa during a pre-World Economic Forum breakfast briefing on January 18, 2018 in Johannesburg, South Africa.
Moeletsi Mabe| Sunday Times | Gallo Images | Getty Images
The finance minister also suggested in an interview with newspaper City Press over the weekend that the World Bank, and not the IMF (International Monetary Fund), would be the first port of call for loan financing.
“The World Bank, unlike the IMF, does not typically attach conditions to its loans. This is why it will be a more politically palatable action for the government in South Africa, where public opinion is generally suspicious of the IMF and the effects its policy prescriptions have had in poor countries,” NKC Senior Political Economist Francois Conradie said Monday.
However, Conradie suggested that the types of reforms which will address the issues that led to Moody’s downgrade, such as deep cuts to the public sector wage bill, privatizing state-owned enterprises (SOEs), or relaxing strict labor legislation, will be a hard political sell.
“Government has been good, in recent weeks, in communicating its response to the pandemic by explaining how the lockdown works, but now it will have to be clear in communicating its economic policy response as well,” he added.

Oil Pices: Oil prices are on track for their worst ever quarter as coronavirus slashes demand

Sam Meredith

GP: Pumpjacks in Tatarstan, Russia 200331 EU
A pumpjack near the Yamashinskoye rural settlement in the Almetyevsk District.
Yegor Aleyev | TASS via Getty Images

Oil prices are on pace to register their worst quarterly performance on record, as the coronavirus pandemic continues to crush global demand for crude.
A public health crisis has meant countries around the world have effectively had to shut down, with many governments imposing draconian measures on the daily lives of hundreds of millions of people.
The restrictions have created an unprecedented demand shock in energy markets, ramping up the pressure on companies and governments reliant on crude sales.
To date, more than 787,000 people have contracted COVID-19 worldwide, with 37,829 deaths, according to data compiled by Johns Hopkins University.
International benchmark Brent crude traded at $23.36 a barrel Tuesday morning, up more than 2.6%, while U.S. West Texas Intermediate (WTI) stood at $21.26, more than 5.8% higher.
Brent futures fell to their lowest level in 18 years on Monday and WTI ended the previous session below $20, before both benchmarks pared some of their losses on the final trading day of the first quarter.
To date, Brent futures have fallen more than 65% through the first three months of 2020, putting the benchmark on track to register its worst quarter through our history to 1990, according to data compiled by CNBC.
Brent is also on pace to record its worst-ever monthly performance, down over 54% in March alone.
Meanwhile, WTI futures slumped more than 67% for the first quarter, putting it on track for its worst-ever quarterly performance back to when the contract began trading in 1983.
WTI is also down over 55% month-to-date, on pace for its worst-ever monthly performance, too.

Storage capacity likely to ‘hit its limit by midyear’

Oil consumption has collapsed by at least 25% compared to 2019 levels of 100 million barrels per day (b/d), according to analysts at Eurasia Group, with severe restrictions on global movement and most retail in lockdown.
“With demand collapsing but supply rising after OPEC and non-affiliated Russia failed to reach a production cut agreement in early March, global inventories could reach their maximum capacity within weeks,” Eurasia Group analysts said in a research note published Monday.
“Even if OPEC and other producers start restricting their output again soon, the supply overhang from the global lockdown is so big that storage capacity will likely hit its limit by midyear,” they added.
Earlier this month, oil producer group OPEC and its allied partners, sometimes referred to as OPEC+, failed to agree on extending production cuts beyond March 31.
It has led to concerns of a supply surge from April 1, with Saudi Arabia and the United Arab Emirates both pledging to ramp up production.
Industry experts have warned that plans to ramp up production could prompt a wave of bankruptcies and investment cuts in the U.S. which, in turn, would have a noticeable impact on shale production.
On Monday, U.S. President Donald Trump and Russian President Vladimir Putin held talks to discuss Moscow’s ongoing oil price war with OPEC kingpin Saudi Arabia.
The Kremlin said Trump and Putin had agreed to have their top energy officials discuss stabilizing oil markets.
Trump had initially welcomed the declaration of a price war between Saudi Arabia and Russia, hailing lower oil prices as good news for U.S. consumers.

Mar 25, 2020

US Market | Futures Indicator: Stock futures turn negative even after White House, Senate reach deal on coronavirus stimulus bill

Fred Imbert, Yun Li, Eustance Huang

Stock futures turned negative in early Wednesday morning trading, following Tuesday’s historic rally, despite the White House and Senate reaching a deal on a coronavirus stimulus bill.
Around 7 a.m. ET, futures on the Dow Jones Industrial Average were down 127 points, or 0.6%. S&P 500 and Nasdaq 100 futures were down 0.9% and 0.8%, respectively. Dow futures were up more than 800 points at one point in the overnight session.
The moves came after the White House and Senate leaders agreed on a massive $2 trillion coronavirus stimulus bill.
“At last we have a deal,” Republican Senate Majority Leader Mitch McConnell said around 1:37 a.m. ET from the floor of the Senate. “In effect, this is a war-time level of investment into our nation.”
Democratic Senate Minority Leader Chuck Schumer said, “This is not a moment of celebration but one of necessity.”
Ahead of the news, Dow futures had pointed to an opening drop of about 200 points, while S&P 500 and Nasdaq-100 futures also pointed to losses at the Wednesday open.
The action in the futures market followed an epic comeback on Wall Street. The Dow soared more than 2,100 points, or over 11%, notching its biggest one-day percentage gain since 1933 and its best point increase ever. The S&P 500 rallied 9.4% for its best day since October 2008. 
Even with Tuesday’s massive rebound, some on Wall Street struggle to see the light at the end of the tunnel, especially without a clear sign that the coronavirus outbreak will be contained soon.
“This was a one-day bull market,” CNBC’s Jim Cramer said on “Closing Bell” on Tuesday. “You had stocks that moved so much they basically moved as if the second half of the year is going to be good. I struggle to find out why the second half of the year should be good ...I hate this kind of rally. This was a machine-driven rally, just like the sell-offs … I want to wait to see.”
Last week, the Cboe Volatility Index (VIX), also known as Wall Street’s fear gauge, eclipsed its financial crisis high and closed at 82.69. As of Wednesday morning, it was still hovering around a still-high 60 level.
Meanwhile, the coronavirus cases in the U.S. and globally still haven’t shown a sign of peaking. More than 400,000 cases have been confirmed worldwide, including over 50,000 in the U.S., according to Johns Hopkins University. So far, more than 600 deaths related to the coronavirus have been confirmed in the U.S. New York City reported nearly 15,000 cases Tuesday and 131 related deaths.
Some investors believed the stock market was overdue for a big bounce, having priced in a worst-case scenario regarding the economic damage being done by coronavirus-related shutdowns. They believe a bounce could occur here even as coronavirus cases continue to surge because the market was so oversold.
—CNBC’s Jesse Pound contributed reporting.

Mar 23, 2020

Oil & Gas: Shell cuts 2020 spending by $5 billion, suspends share buyback

3minutes - Source

GP: Royal Dutch Shell logo sky  - 105605338
Carl Court | AFP | Getty Images

Royal Dutch Shell will lower spending by $5 billion and suspended its vast $25 billion share buyback plan in an effort to weather the recent collapse in oil prices, it said on Monday.
The Anglo-Dutch oil major said it would reduce capital expenditure to $20 billion or below from a planned level of about $25 billion while seeking to reduce operating costs by an additional $3 billion to $4 billion over the next 12 months.
The cuts are expected to boost Shell’s cash generation by between $8 billion and $9 billion on a pretax basis.

Shell’s shares were down 3.5% in early London trading, against 3% for the broader European energy sector.

Oil prices have crashed by more than 60% since January, hit by global demand destruction because of the coronavirus pandemic and a price war between top producers Saudi Arabia and Russia after this month’s collapse of a supply pact
between the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The Shell cuts mirror moves by rivals such as Exxon Mobil, Chevron, BP and France’s Total, who have all announced plans for sharp reductions in spending.
Shell Chief Executive Ben van Beurden in January said that the company requires $20 billion of its capital spending to sustain operations at current output levels, with additional spending dedicated to growing its business, including $2 billion to $3 billion for building up its power and low-carbon energy business.
All of Shell’s business segments are reviewing spending to achieve the targeted cuts, a company spokeswoman said.
“The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past,” van Beurden said in a statement.
Even before the coronavirus outbreak, Shell faced weaker revenue because of slowing demand for petrochemicals, which led it to slow its $25 billion three-year share buyback program late last year.
Shell has so far purchased $15.5 billion of shares since the buyback program started in July 2018, it said.
“We will continue to review the dynamically evolving business environment and are prepared to take further strategic decisions and consider changes to the overall financial framework as necessary,” the company said.

Mar 19, 2020

Economy: Weekly jobless claims jump to 281,000 ahead of surge in coronavirus layoffs

Jeff Cox

Jobless claims rose to 281,000 last week, reflecting only the first indications of the impact the coronavirus will have on the U.S. employment picture.
That number reflected a significant rise from last week's 211,000, which was unrevised from the initial estimate, according to the Labor Department. It was the highest number since Sept. 2, 2017.
The four-week moving average rose to 232,250, up 16,500 from a week ago and the highest level since Jan. 27, 2018. The previous week saw an upward revision to 215,750 from 214,000.
Companies are just starting to announce coronavirus-related layoffs, so the real damage probably won't start showing through until next week's count, which will entail the period through this Saturday.
Ian Shepherdson from Pantheon Macroeconomics told CNBC earlier Thursday morning that next week's total could hit 2 million.
Much of the layoffs so far have come from the hospitality industry, which have been slammed by a national effort of social distancing to keep the coronavirus spread at bay.
Marriott International said it will be laying off tens of thousands of employees. Compass Coffee, which is based in Washington, D.C. and competes with Starbuck's, has laid off 150 workers, or 80% of its staff. Danny Meyer's Union Square Hospitality Group said it would furlough 3,000 workers, also 80% of its workforce.
Get the market reaction here.

Mar 5, 2020

US Markets | Futures Indicator Update: Dow is set to drop nearly 600 points at the open following a roller-coaster week for stocks

Eustance Huang

U.S. stock futures were sharply lower Thursday morning, following a massive rally in the previous session.
Dow Jones industrial average futures dropped about 450 points, indicating a loss of nearly 600 points at the open. S&P 500 and Nasdaq-100 futures were also both lower.
The premarket moves came amid a roller-coaster week for stocks on Wall Street, which saw the 30-stock Dow swinging 1,000 points or higher two times within three days. Following a surge on Wednesday, the three major averages stateside moved out of correction territory, meaning they are now less than 10% down from their 52-week highs.
A series of factors have been driving investor sentiment, ranging from developments around the coronavirus outbreak that continued to spread globally to former Vice President Joe Biden’s major wins during Super Tuesday.
Earlier in the week, the Federal Reserve also cut its benchmark interest rate unexpectedly by 50 basis points, citing that coronavirus which “poses evolving risks to economic activity.” It was the central bank’s first such emergency cut since the 2008 financial crisis.
You have to wonder why (the Fed’s) acting like this and you have to wonder especially why they’re using their very, very sparse ammunition up — a 50 basis point cut — very early in a crisis.
Richard Harris
Chief Executive, Port Shelter Investment Management
The move failed to assuage stock market concerns about the potential economic impact of the coronavirus outbreak while triggering sharp movements in the bond markets, with the yield on the benchmark 10-year Treasury note dropping below 1% for the first time ever.
“We’re nowhere near the sort of situation where the Fed should be acting like this,” Richard Harris, chief executive at Port Shelter Investment Management, told CNBC’s “Street Signs Asia” on Thursday morning.
“You have to wonder why (the Fed’s) acting like this and you have to wonder especially why they’re using their very, very sparse ammunition up — a 50 basis point cut — very early in a crisis,” Harris said.
—CNBC’s Fred Imbert contributed to this report.

Feb 25, 2020

Coronavirus: Italians on high alert as coronavirus spreads beyond the north of the country

Holly Ellyatt

Premium: Virus Screening Of Airline Passengers Arriving From Italy
A health worker screens the temperature of an airline passenger arriving from Italy at Debrecen International Airport in Debrecen, Hungary, on Monday, Feb. 24, 2020.

Italy is struggling to contain a rapid outbreak of the coronavirus, with new cases confirmed in the capitals of Tuscany and Sicily — the first case south of Rome.
As of Tuesday morning, 283 cases of coronavirus have been confirmed, Italian media reported, including in Florence, the capital of Tuscany, and Palermo, in Sicily. Seven people have died from the virus in the country. As with many victims elsewhere, those who have died in Italy were elderly or had preexisting health conditions.
The number of cases is rising rapidly: On Friday morning, Italy only had 3 confirmed cases before a sharp spike over the weekend. The outbreak was previously contained to the wealthy northern regions of the country but has now spread, with cases recorded in Emilia-Romagna, Piedmont and Lazio.
The outbreak has prompted a blame game between the northern region of Lombardy and the government in Rome.
Prime Minister Giuseppe Conte said the outbreak in Italy — the largest outside of Asia — had been caused by a hospital that had not followed proper protocol. He did not name the hospital but it was presumed to be in the north.
“There was a hotspot and it spread from there in part due to the management of a hospital that was not done entirely according to the prudent protocols that are recommended in these cases,” Conte said Monday, Italian news agency ANSA reported.
But an official in the region of Lombardy, where most of the cases (for now, over 200) are concentrated, hit back by calling the government “incapable” and saying Conte’s remarks were “groundless and unacceptable,” ANSA said.
Meanwhile, opposition politician Matteo Salvini, the leader of the anti-immigration Lega party, said Monday on Facebook that “someone will have to answer to the Italian people about what it was supposed to do and was not done.” He said that on Jan. 30, his party had started to request obligatory controls on anyone coming from virus-hit countries but had not been listened to.

‘Knocking at the door’

The World Health Organization sent a mission to Italy, saying Monday it was deeply worried about the sudden increase in cases in Italy, as well as in Iran and South Korea. On Tuesday, the WHO warned countries they must be ready for the fast-spreading coronavirus to be “literally knocking at the door.”
WHO spokesman Christian Lindmeier, speaking at a news briefing in Geneva, said officials from the organization were meeting in Rome to discuss “pretty strong” measures taken in Italy, Reuters reported.
Italy is trying to contain the spread of the virus in its prosperous northern regions of Lombardy and Veneto, which account for around 30% of the nation’s gross domestic product. Italy’s economy is already expected to grow only 0.5% in 2020, according to previous Bank of Italy forecasts, and the growth rate is now expected to take a hit.
Earlier Tuesday, the Italian government’s deputy economy minister said the European Union could give Italy some leeway on its budget commitments and borrowing given the crisis and its expected economic impact.
Almost a dozen towns in Lombardy and Veneto are under lockdown, public events have been canceled and schools, universities and bars closed; Venice’s annual carnival was also shut down early.
In Naples on Tuesday, religious authorities suggested that churchgoers refrain from exchanging the sign of peace, shaking hands or embracing during Mass.

Italian magistrates announced they were opening a probe into the costs of face masks and hand gel that had skyrocketed in the wake of the outbreak, Reuters reported.
With Venice and Milan popular destinations for tourists and business trips, countries around the world — from the Netherlands to Saudi Arabia — have warned against travel to the north or whole of Italy. The U.K. advised anyone returning from the affected areas to quarantine themselves for 14 days. The European Commission has advised its own staff not to travel to Lombardy, advocating the use of teleconferences instead.

Feb 20, 2020

Europe News: The EU's biggest post-Brexit fight is about to get real

Silvia Amaro

BRUSSELS — Where will the money come from? This is the contentious question that the EU needs to answer every seven years — and this time around, the issue is even more complicated.
The U.K., which has been one of the EU’s key contributors, left the bloc on January 31. Over the last few years its net contribution to the EU has been around £7.8 billion per year and, as such, the U.K.’s departure could leave the group with a shortfall of around £55 billion ($71.3 billion) over the next seven years.
The remaining 27 EU countries are now scratching their heads and trying to find ways to make up the difference. In an emergency meeting Thursday, the bloc’s leaders will seek to agree on its next budget, but there are expected to be long and arduous fights between those paying the highest amounts to the EU and those receiving the most money from it.
“The situation won’t get better over time ... We face between 60 and 75 billion (euro, $64.7-81 billion) gap because of Brexit, we are facing new challenges and new priorities ... and member states have a tight budgetary situation, so realism is needed,” an EU official, who did not want to be named due to being close to the negotiations, told reporters in Brussels Wednesday.
The EU’s budget is used to finance policies across the bloc, ranging from developing rural areas, security and the promotion of human rights. However, EU countries have a hard time figuring out how much money to allocate to the different policy aims.
There are 15 nations that do not want a smaller budget, including countries such as Portugal, Poland, Spain and Greece. This group has been dubbed the Friends of Cohesion, as it opposes cuts to the so-called Cohesion funds — which support members whose gross national income per inhabitant is less than 90% of the EU average.
On the other hand, the Frugal Four, a group made up of Austria, Denmark, Sweden and the Netherlands, believe the EU should cut its budget and allocate more funding to new policy areas, such as technology and climate change.
Speaking in the Portuguese Parliament Tuesday, Prime Minister Antonio Costa called the later group “stingy.”
In an exclusive interview with CNBC, Johannes Hahn, commissioner for the budget and administration, told CNBC that the EU is already “running late” with the process.
“It’s absolutely high time to get the deal. If there is any further significant delay it will have an impact on the start of the programs,” Hahn said in reference to the EU projects that are due to receive funding by the end of the year.
Furthermore, some analysts warned that mishandling the negotiations could boost anti-EU sentiment in various European capitals.
“This is a tragedy,” Friedrich Heinemann, a budget expert at the think tank EconPol Europe, told CNBC Thursday. He said that policymakers should be asking themselves what the region’s biggest challenges are, and that money should be allocated on that basis.
European leaders need a consensus in order to approve the next seven-year spending plan. Once that is achieved, the budget will still have to be green-lit by European lawmakers in a majority vote.
Jorge Nunez Ferrer, from the Brussels-based think tank CEPS, told CNBC that as it stands it will be difficult for the parliament to approve the current spending plans.

Trump ‘should be happy’

Ahead of the leaders’ meeting Thursday, a preliminary proposal seen by CNBC, suggested an increase to 7 billion euros from 0.6 billion euros in the amount allocated to the European Defense Fund — a program designed to increase national investment in defense research and cooperation between national armed forces.
President Donald Trump has often criticized European countries for not paying their fair share towards NATO. When asked if Trump would be upset with European countries for investing more in European defense programs rather than increasing their NATO contributions, Hahn said: “No, if he’s carefully analyzing this, he should be more than happy.”
Hahn explained that the EU wants to streamline different military systems and use those savings to make additional investments in defense.

Feb 11, 2020

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves in the premarket: Hasbro, Under Armour, Slack, Sprint & more

Peter Schacknow

Under Armour (UAA) – The athletic apparel maker reported an overall loss for the quarter, and warned of a negative sale impact from the coronavirus. The company also said it is assessing a possible 2020 restructuring.
AutoNation (AN) – The nation’s largest car retailer beat estimates on both the top and bottom lines for the fourth quarter, with results boosted by higher demand for pre-owned vehicles.
Hasbro (HAS) – The toymaker reported a quarterly profit of $1.24 per share, well above the consensus estimate of 91 cents a share. Sales fell short of Street forecasts, however, but Hasbro’s bottom line got a boost from toys related to Disney’s “Frozen 2” and “Star Wars” movies.
Hilton Worldwide (HLT) – The hotel operator earned $1.00 per share for the fourth quarter, 4 cents a share above estimates. Revenue also beat forecasts. Hilton’s 2020 earnings outlook was below analysts’ forecasts, however, and the company said the outlook does not include possible coronavirus impact.
T-Mobile US (TMUS), Sprint (S) – The mobile service providers are expected to win the approval of a federal judge for their $26 billion merger deal today, according to sources. That would end an effort by state attorneys general to block the combination of the third- and fourth-largest wireless carriers.
Slack Technologies (WORK) – Slack said in a Securities and Exchange Commission filing that IBM (IBM) had been the messaging platform’s largest customer for several years and had expanded its use of Slack over that time. The statement was issued in response to an earlier report that a new deal had been struck that made IBM Slack’s largest customer, which had sent the stock surging in the regular session Monday.
Callaway Golf (ELY) – Callaway lost 26 cents per share for its fourth quarter, wider than the 23 cents a share loss that analysts were expecting. The golf club maker reported better-than-expected revenue but said the coronavirus will have a negative impact in terms of both sales in Asia and on supplies.
ViacomCBS (VIACA) – ViacomCBS unit CBS Sports has struck a deal with sports betting company William Hill, allowing William Hill to seek new customers among the CBS Sports audience. William Hill would seek to get CBS Sports users to download its app and deposit money in betting accounts.
XPO Logistics (XPO) – XPO beat estimates by 10 cents a share, with adjusted quarterly earnings of $1.12 per share. The transportation and delivery company’s revenue came fall below analysts’ forecasts, however. XPO also announced the appointment of a new chief financial officer.
Boston Beer (SAM) – Boston Beer was upgraded to “outperform” from “neutral” at Credit Suisse, which points to the company’s increasing involvement in the hard seltzer market. Credit Suisse also increased its price target on the beer brewer’s stock to $525 per share from $400.

Feb 10, 2020

US Markets | Futures Indicator: US futures point to cautious open as investors monitor coronavirus

Elliot Smith

U.S. stock index futures were muted Monday morning as investors assess the impact of the coronavirus outbreak in China.
At around 3:00 a.m. ET, Dow futures were 20 points higher and indicated an implied positive open of more than 8 points, while futures on the S&P 500 and Nasdaq were also marginally higher.
As of Sunday night, China said a total of 40,171 cases of coronavirus had been confirmed and 908 people had died, while 14 Americans have tested positive for the virus aboard a cruise ship quarantined in Japan.
Stocks had fallen on Friday to snap a four-day winning streak as fears over the economic impact of the virus quashed upward momentum from strong U.S. jobs data, which saw 225,000 jobs added in January against an expected print of 158,000.
No major economic data is due Monday and a quieter day can also be expected on the corporate earnings front, with Allergan and Restaurant Brands Intl. set to report before the bell and no major reports expected after the close of trading.

Feb 5, 2020

US Markets | Futures Indicator: Stock rally expected to continue as Dow futures jump nearly 300 points

Elliot Smith

U.S. stock index futures pointed to a higher open on Wednesday as the market continues to bounce back from a steep sell-off that was sparked by worries over the coronavirus.
Around 6 a.m. ET, Dow futures indicated an implied open of more than 280 points, while futures in the S&P 500 and Nasdaq also pointed higher.
Stock futures turned higher in overnight trading after Reuters said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus. The news agency, citing traders, suggested this was a reason for the move higher in stocks.
CNBC has not verified the media reports.
Markets remain attuned to the coronavirus outbreak as confirmed cases in China near 25,000, claiming the lives of 490 people. U.S. President Donald Trump said during Tuesday’s State of the Union address that the U.S. is “working closely” with the Chinese government to contain the virus.
Stocks rallied on Tuesday as the market recovered from a huge sell-off on Friday, with the Dow closing 407.82 points higher. Corporate earnings remain in focus, with a number of companies weighing the impact of the coronavirus on forecasts.
Disney on Tuesday topped first-quarter earnings expectations on both the top and bottom lines, but warned of a $175 million hit to its theme parks as a result of the coronavirus outbreak.
Meanwhile, Ford shares slid on Tuesday after the carmaker posted a fourth-quarter loss and disappointing 2020 guidance, warning of virus-related manufacturing shutdowns.
Shares of Nike were also under pressure after the company said it has closed half of its stores in China, saying it will have a “material impact” on its operations across the country.
General Motors, GlaxoSmithKline, and Merck are among those reporting earnings before the opening bell on Wednesday, while Qualcomm and Fox Corp. are set to report after the close of trade.
On the data front, ADP private payrolls numbers for January are due at 8:15 a.m. ET, before December international trade numbers at 8:30 a.m. ET. Final January services PMI (Purchasing Managers’ Index) readings are expected at 9:45 a.m. ET, followed by ISM non-manufacturing data at 10 a.m.

Jan 30, 2020

US futures tumble as coronavirus death toll in China continues to rise

Elliot Smith

U.S. stock index futures fell sharply on Thursday morning.
Around 5:45 a.m. ET, Dow futures implied a negative open of more than 150 points, while futures on the S&P 500 and Nasdaq were also lower.
Market focus is largely attuned to the spread of the coronavirus outbreak, with China’s National Health Commission confirming on Thursday that the death toll has hit 170, with confirmed cases of the virus surpassing 7,700.
U.S. stocks closed little changed on Wednesday even as the Federal Reserve kept interest rates steady in the 1.5% to 1.75% range and struck an optimistic tone on the health of the U.S. economy.
Investors will have an eye on U.S. fourth-quarter GDP figures set for release at 8:30 a.m. ET, along with weekly jobless claims.
Corporate earnings remain in focus, with Facebook warning on Wednesday that growth could continue to slow as the business matured, and reporting a sharp rise in quarterly expenses associated with improving privacy.
Tesla enjoyed a second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this year, sending the stock surging.
Microsoft beat Wall Street expectations on fourth-quarter sales and profit on the back of strong cloud revenue, while Boeing posted its first annual loss since 1997 as the grounded 737 Max continued to weigh.
Altria, UPS, Verizon, and Coca-Cola are among those reporting earnings before the bell on Thursday, while Amazon, Visa, EA, Levi Strauss, and U.S. Steel are all due to report after the close of trading.

Jan 29, 2020

Market Insider | Biggest Moves Premarket:Stocks making the biggest moves premarket: Boeing, McDonald's, L Brands, AT&T, GE & more

Peter Schacknow

Check out the companies making headlines before the bell:

Boeing (BA) – Boeing lost $2.33 per share for the fourth quarter and reported an annual loss for 2019, its first since 1997. Boeing now estimates the total cost of the 737 Max grounding at $18.6 billion, and an increase in production costs for the 737 Max over the life of the program of $2.6 billion.
McDonald’s (MCD) – The restaurant chain reported quarterly profit of $1.97 per share, a penny a share above estimates. Revenue was in line with forecasts. Both global and US comparable-store sales came in above consensus.
L Brands (LB) – Leslie Wexner is in talks to step aside as CEO of L Brands, and is exploring strategic options for the Victoria’s Secret Brand, according to The Wall Street Journal.
AT&T (T) – AT&T beat estimates by 2 cents a share, with quarterly earnings of 89 cents per share. Revenue came in below Wall Street forecasts.
General Electric (GE) – General Electric’s quarterly profit of 21 cents per share beat consensus by 3 cents a share. Revenue was also above estimates, boosted by a strong aviation business.
Stanley Black & Decker (SWK) – The tool maker matched estimates with quarterly earnings of $2.18 per share, but revenue was below consensus. The company also gave a 2020 adjusted earnings forecast of $8.80 to $9.00 per share, largely below the consensus estimate of $9.00 a share.
Apple (AAPL) – Apple reported quarterly earnings of $4.99 per share, beating the consensus estimate of $4.55 a share. Revenue was also above estimates. Apple had better-than-expected sales of iPhones and wearables during the quarter, although services revenue was shy of Street forecasts. Apple also gave a better-than-expected revenue forecast for the current quarter.
Starbucks (SBUX) – Starbucks came in 3 cents a share ahead of estimates, with quarterly earnings of 79 cents per share. Revenue was essentially in line with forecasts, however the coffee chain also warned that the coronavirus outbreak in China would have a negative impact on its full-year results.
Alaska Air (ALK) – Alaska Air reported quarterly profit of $1.46 per share, 5 cents a share above estimates. The airline’s revenue came in slightly above consensus. Alaska Air also raised its quarterly dividend by 7% to 37 cents per share.
Advanced Micro Devices (AMD) – AMD beat estimates by a penny a share, with quarterly profit of 32 cents per share. The chipmaker’s revenue was slightly above forecast as well. AMD gave a current-quarter revenue forecast that was below estimates, however, with demand from videogame console makers slowing ahead of the launch of new systems.
EBay (EBAY) – EBay came in 5 cents a share ahead of consensus, with adjusted quarterly earnings of 81 cents per share. Revenue also exceeded forecasts by a small margin, however the e-commerce company gave a weaker-than-expected outlook and analysts have expressed concern that eBay is losing ground to new competitors.
Match Group (MTCH) – Match CEO Mandy Ginsberg is stepping down, with The Wall Street Journal reporting that Ginsberg is facing a variety of challenges in her personal life. The dating service will promote President Shar Dubey to take over as CEO.
Goldman Sachs (GS) – Goldman will hold its first-ever investor day today in New York. Analysts and investors have told Reuters they want to hear more about Goldman’s consumer banking business.
Beyond Meat (BYND) – Beyond Meat’s plant-based sandwiches have been removed from Tim Hortons restaurants in the Canadian provinces of Ontario and British Columbia, with the chain saying the products did not prove as popular as it had anticipated. Tim Hortons – owned by Restaurant Brands International (QSR) – had pulled the products from other Canadian locations in September.
JPMorgan Chase (JPM) – The bank is planning to cut hundreds of jobs in its consumer division, according to a Bloomberg report.

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